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Do I Really Need a 20% Down Payment to Buy a Home?

Friday, February 5, 2021
by Christie Cannon

Do I Really Need a 20% Down Payment to Buy a Home?

Do I Really Need a 20% Down Payment to Buy a Home? | MyKCM
 

Is the idea of saving for a down payment holding you back from buying a home right now? You may be eager to take advantage of today’s low mortgage rates, but the thought of needing a large down payment might make you want to pump the brakes. Today, there’s still a common myth that you have to come up with 20% of the total sale price for your down payment. This means people who could buy a home may be putting their plans on hold because they don’t have that much saved yet. The reality is, whether you’re looking for your first home or you’ve purchased one before, you most likely don’t need to put 20% down. Here’s why.

According to Freddie Mac:

“The most damaging down payment myth—since it stops the homebuying process before it can start—is the belief that 20% is necessary.”

If saving that much money sounds daunting, potential homebuyers might give up on the dream of homeownership before they even begin – but they don’t have to.

Data in the 2020 Profile of Home Buyers and Sellers from the National Association of Realtors (NAR) indicates that the median down payment actually hasn’t been over 20% since 2005, and even then, that was for repeat buyers, not first-time homebuyers. As the image below shows, today’s median down payment is clearly less than 20%.Do I Really Need a 20% Down Payment to Buy a Home? | MyKCM

What does this mean for potential homebuyers?

As we can see, the median down payment was lowest for first-time buyers with the 2020 percentage coming in at 7%. If you’re a first-time buyer and putting down 7% still seems high, understand that there are programs that allow qualified buyers to purchase a home with a down payment as low as 3.5%. There are even options like VA loans and USDA loans with no down payment requirements for qualified applicants.

It’s important for potential homebuyers (whether they’re repeat or first-time buyers) to know they likely don’t need to put down 20% of the purchase price, but they do need to do their homework to understand the options available. Be sure to work with trusted professionals from the start to learn what you may qualify for in the homebuying process.

Bottom Line

Don’t let down payment myths keep you from hitting your homeownership goals. If you’re hoping to buy a home this year, let’s connect to review your options.

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Want to Build Wealth? Buy a Home This Year.

Tuesday, February 2, 2021
by Christie Cannon

Want to Build Wealth? Buy a Home This Year.

Want to Build Wealth? Buy a Home This Year. | MyKCM
 

Every year, households across the country make the decision to rent for another year or take the leap into homeownership. They look at their earnings and savings and then decide what makes the most financial sense. That equation will most likely take into consideration monthly housing costs, tax advantages, and other incremental expenses. Using these measurements, recent studies show that it’s still more affordable to own than rent in most of the country.

There is, however, another financial advantage to owning a home that’s often forgotten in the analysis – the wealth built through equity when you own a home.

Odeta Kushi, Deputy Chief Economist for First American, discusses this point in a recent blog post. She explains:

“Once you include the equity benefit of price appreciation, owning made more financial sense than renting in 48 out of the 50 top markets, with the only exceptions being San Francisco and San Jose, Calif.”

What has this equity piece meant to homeowners in the past?

ATTOM Data Solutions, the curator of one of the nation’s premier property databases, just analyzed the typical home-price gain owners nationwide enjoyed when they sold their homes. Here’s a breakdown of their findings:Want to Build Wealth? Buy a Home This Year. | MyKCMThe typical gain in the sale of the home (equity) has increased significantly over the last five years.

CoreLogic, another property data curator, also weighed in on the subject. According to their latest Homeowner Equity Insights Report, the average homeowner gained $17,000 in equity in just the last year alone.

What does the future look like for homeowners when it comes to equity?

Here are the seven major home price appreciation forecasts for 2021:Want to Build Wealth? Buy a Home This Year. | MyKCMThe National Association of Realtors (NAR) just reported that today, the median-priced home in the country sells for $309,800. If homes appreciate by 5% this year (the average of the forecasts), the homeowner will increase their wealth by $15,490 in 2021 through increased equity.

Bottom Line

As you make your plans for the coming year, be sure to consider the equity benefits of home price appreciation as you weigh the financial advantages of buying over renting. When you do, you may find this is the perfect time to jump into homeownership.

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Should I Wait for Lower Mortgage Interest Rates?

Wednesday, January 20, 2021
by Christie Cannon

Should I Wait for Lower Mortgage Interest Rates?

Should I Wait for Lower Mortgage Interest Rates? | MyKCM
 

Historically low mortgage rates are a big motivator for homebuyers right now. In 2020 alone, rates hit new record-lows 16 times, and the trend continued into the early part of this year. Many hopeful homebuyers are now wondering if they should put their plans on hold and wait for the lowest rates imaginable. However, the reality is, acting sooner rather than later may be the actual win if you’re ready to buy a home.

According to Greg McBride, Chief Financial Analyst for Bankrate:

“As vaccines become more widely available and a return to normal starts to come into view, we’ll see mortgage rates bounce off the record lows.”

While only a slight increase in mortgage rates is projected for 2021, some experts believe they will start to rise. Over the past week, for example, the average mortgage rate ticked up slightly, reaching 2.79%. This is still incredibly low compared to the trends we’ve seen over time. According to Freddie Mac:

“Borrowers are smart to take advantage of these low rates now and will certainly benefit as a result.”

Here’s why.

As mortgage rates rise, the increase impacts the overall cost of purchasing a home. The higher the rate, the higher your monthly mortgage payment, especially as home prices rise too. Sam Khater, Chief Economist at Freddie Mac, says:

“The forces behind the drop in rates have been shifting over the last few months and rates are poised to rise modestly this year. The combination of rising mortgage rates and increasing home prices will accelerate the decline in affordability and further squeeze potential homebuyers during the spring home sales season.”

What does this mean for buyers?

Right now, the inventory of houses for sale is also at a historic low, making it more challenging than normal to find a home to buy in many areas. As more buyers hit the market in the typically busy spring buying season, it may become even harder to find a home in the coming months. With this in mind, Len Keifer, Deputy Chief Economist for Freddie Mac, recommends taking advantage of both low mortgage rates and the opportunity to buy:

“If you’ve found a home that fits your needs at a price you can afford, it might be better to act now rather than wait for future rate declines that may never come and a future that likely holds very tight inventory.”

Bottom Line

While today’s low mortgage rates provide great opportunities for homebuyers, we may not see them stick around forever. If you’re ready to buy a home, let’s connect so you can take advantage of what today’s market has to offer.

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Is This the Year to Sell My House?

Friday, January 8, 2021
by Christie Cannon

Is This the Year to Sell My House?

Is This the Year to Sell My House? | MyKCM
 

If one of the questions you’re asking yourself is, “Should I sell my house this year?” consumer sentiment about selling today should boost your confidence in the right direction. Even with the current health crisis that continues to challenge our nation, Americans still feel good about selling a house. Here’s why.

According to the latest Home Purchase Sentiment Index from Fannie Mae, 57% of consumer respondents to their survey indicate now is a good time to buy a home, while 59% feel it’s a good time to sell one:

“The percentage of respondents who say it is a good time to sell a home remained the same at 59%, while the percentage who say it’s a bad time to sell decreased from 35% to 33%. As a result, the net share of those who say it is a good time to sell increased 2 percentage points month over month.”

As you can see, many still believe that, despite everything going on in the world, it is still a good time to sell a house.

Why is now a good time to sell?

There simply are not enough homes available to meet today’s buyer demand, and they’re selling just as quickly as they’re coming to the market. According to the National Association of Realtors (NAR), unsold inventory available today sits at a 2.3-month supply at the current sales pace, which is down from a 2.5-month supply from the previous month. This record-low inventory is not even half of what we need for a normal or neutral housing market, which should have a 6.0-month supply of unsold inventory to balance out.

With so few homes available for buyers to choose from, we’re in a true sellers’ market. Homeowners ready to make a move right now have the opportunity to negotiate the best possible contracts with buyers who are feeling the pull of intense competition when it comes to finding their dream home. Lawrence Yun, Chief Economist for NAR, notes how quickly homes are selling right now, further confirming the benefits to sellers this season:

"The market is incredibly swift this winter with the listed homes going under contract on average at less than a month due to a backlog of buyers wanting to take advantage of record-low mortgage rates."

However, this sweet spot for sellers won’t last forever. As more homes are listed this year, this tip toward sellers may start to wane. According to Danielle Hale, Chief Economist at realtor.com, more choices for buyers are on the not-too-distant horizon:

“The bright spot for buyers is that more homes are likely to become available in the last six months of 2021. That should give folks more options to choose from and take away some of their urgency. With a larger selection, buyers may not be forced to make a decision in mere hours and will have more time to make up their minds.”

Bottom Line

If you’re ready to make a move, you can feel good about the current sentiment in the market and the advantageous conditions for today’s sellers. Let’s connect today to determine the best next step when it comes to selling your house this year.

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3 Must-Do’s When Selling Your House This Year

Monday, January 4, 2021
by Christie Cannon

3 Must-Do’s When Selling Your House This Year

3 Must-Do’s When Selling Your House This Year | MyKCM
 

It’s exciting to put a house on the market and to think about making new memories in new spaces. However, despite the anticipation of what’s to come, we can still have deep sentimental attachments to the home we’re leaving behind. Growing emotions can help or hinder a sale depending on how we manage them.

When it comes to the bottom line, homeowners need to know what it takes to avoid costly mistakes when it’s time to move. Being mindful and prepared for the process can help you stay on the right track when selling your house this year.

1. Price Your Home Right

When inventory is low, like it is in the current market, it’s common to think buyers will pay whatever we ask when setting a listing price. Believe it or not, that’s not always true. Don’t forget that the buyer’s bank will send an appraisal to determine the fair value for your house. The bank will not lend more than what the house is worth, so be aware that you might need to renegotiate the price after the appraisal. A real estate professional will help you set the true value of your home.

2. Keep Your Emotions in Check

Today, homeowners are living in their houses for a longer period of time. Since 1985, the average tenure, or the time a homeowner has owned their home, has increased from 5 to 10 years (as shown in the graph below):3 Must-Do’s When Selling Your House This Year | MyKCMThis is several years longer than what used to be the historical norm. The side effect, however, is when you stay in one place for so long, you may get even more emotionally attached to your space. If it’s the first home you bought or the house where your children grew up, it very likely means something extra special to you. Every room has memories, and it’s hard to detach from the sentimental value.

For some homeowners, that makes it even harder to negotiate and separate the emotional value of the house from the fair market price. That’s why you need a real estate professional to help you with the negotiations along the way.

3. Stage Your Home Properly

We’re generally quite proud of our décor and how we’ve customized our houses to make them our own unique homes, but not all buyers will feel the same way about your design. That’s why it’s so important to make sure you stage your house with the buyer in mind.

Buyers want to envision themselves in the space so it truly feels like it could be their own. They need to see themselves inside with their furniture and keepsakes – not your pictures and decorations. Stage and declutter so they can visualize their own dreams as they walk down the hall. A real estate professional can help you with tips to get your home ready to stage and sell.

Bottom Line

Today’s sellers’ market might be your best chance to make a move. If you’re considering selling your house, let’s connect so you have the help need to navigate through the process while prioritizing these must-do’s.a

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Why It’s Important to Price Your House Right Today

Monday, December 28, 2020
by Christie Cannon

Why It’s Important to Price Your House Right Today

Why It’s Important to Price Your House Right Today | MyKCM
 

Even in today’s sellers’ market, setting the right price for your house is one of the most valuable things you can do. According to the U.S. Economic Outlook by the National Association of Realtors (NAR), existing home prices nationwide are forecasted to increase by 4.5% in 2021. This means experts anticipate home values will continue climbing next year. Danielle Hale, Chief Economist for realtor.com, notes:

“We expect price gains to ease somewhat in 2021 and end 5.7% above 2020 levels, decelerating steadily through the spring and summer, and then gradually reaccelerating toward the end of the year.”

How to Price Your House

When it comes to setting the right price for your house, the goal is to increase visibility and drive more buyers your way. Instead of trying to win the negotiation with one buyer, you should price your house so that demand is maximized and more buyers want to take a look.

As a seller in today’s market, you might be thinking about pricing your house on the high end while so many of today’s buyers are searching harder than ever just to find a home to purchase. But here’s the thing – a high price tag does not mean you’re going to cash in big on the sale. It’s actually more likely to deter buyers.

Right now, even when there are so few houses for sale, your house is more likely to sit on the market longer or require a price drop that can send buyers running if it isn’t priced just right from the very beginning.Why It’s Important to Price Your House Right Today | MyKCMIt’s important to make sure your house is priced correctly by working with a trusted real estate professional throughout the process. When you price it competitively from the start, you won’t be negotiating with one buyer. Instead, you’ll likely have multiple buyers competing for the house, potentially increasing the final sale price.

The key is to make sure your house is priced to sell immediately. This way, it will be seen by the greatest number of buyers. More than one of them may be interested, and it will be more likely to sell at a competitive price.

Bottom Line

Let's connect to price your house correctly from the start so you can maximize your exposure and your return.

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Winning as a Buyer in a Sellers’ Market

Monday, December 14, 2020
by Christie Cannon

Winning as a Buyer in a Sellers’ Market 

Winning as a Buyer in a Sellers’ Market [INFOGRAPHIC] | MyKCM
 

Some Highlights

  • Buying a home in today’s sellers’ market doesn’t have to feel like an uphill battle.
  • Here are four ways to make sure you’re positioned for success when making a home purchase, even when the scale tips toward sellers.
  • Let's connect to make sure you're armed for victory in the housing market this season.
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10 BEST PLACES TO INVEST IN REAL ESTATE IN 2021

Tuesday, December 8, 2020
by Christie Cannon

With the US real estate market managing to thrive during the coronavirus pandemic, many investors are beginning to make plans to enter the market next year. If you want to ensure a high return on investment in the US housing market 2021, turn to our list of the best places to invest in real estate.

This list is based on the PwC’s Emerging Trends in Real Estate 2021: US and Canada report. The annual report put out by the PwC and the Urban Land Institute features key data, trends, and insights from over 1,600 real estate experts. In this year’s report, the effects of COVID-19 were analyzed among other market factors in order to rank US cities in the Markets to Watch list. Those listed below ranked in the top 10 for overall real estate prospects. Read the full report here. 

In addition to breaking down information from the report, we have included key real estate market statistics derived from Mashvisor’s database and other top resources.

The 10 Best Places to Invest in Real Estate in 2021

best places to invest in real estate 2021 infographic

  1. Raleigh/Durham, NC
  2. Austin, TX
  3. Nashville, TN
  4. Dallas/Fort Worth, TX
  5. Charlotte, NC
  6. Tampa/St. Petersburg, FL
  7. Salt Lake City, UT
  8. Washington, DC–Northern VA
  9. Boston, MA
  10.  Long Island, NY

#1. Raleigh/Durham, North Carolina

Last year and pre-COVID-19, the Raleigh/Durham real estate market came in #2 in the report for overall real estate prospects. Now, amid the pandemic, the location has managed to take the title of the best place to invest in real estate for 2021. 

The report labels Raleigh/Durham as a “Magnet City” – a place where both people and businesses have been migrating to during COVID-19. As an 18-hour city, the location’s culture, general way of life, and the local job opportunities continue to attract residents. 

Another factor that is attracting newcomers is the relative affordability of homes for sale in the market. At the same time, both the Durham and Raleigh real estate markets have a high price to rent ratio (see Mashvisor’s data below). This is one of the factors that make the location one of the best cities to buy a rental property for 2021. Residents still find it more affordable to rent than to buy a home. In Raleigh, the current renter population is around 51%. For Durham, the population sits at around 53%.

In terms of general economic health, the Raleigh/Durham housing market ranked #3 based on the expert opinions in the report. Although much of the US still suffers from high unemployment rates, the Raleigh-Durham-Cary metropolitan area had an unemployment rate of 6.2% at the end of September 2020. Compared to the national average of 7.9%, the area’s job market is slowly but surely recovering from the high unemployment rate witnessed in April of this year (10.7%). 

Raleigh Real Estate Market Statistics:
  • Median Property Price: $477,440
  • Price per Square Foot: $197
  • Price to Rent Ratio: 27
  • Traditional Rental Income: $1,485
  • Traditional Cash on Cash Return: 2.2%
  • Top Raleigh Neighborhood for Real Estate Investing: Northeast Raleigh
  • Seller’s Market
  • Forecasted Real Estate Appreciation for 2021: 7% 
Durham Real Estate Market Statistics:
  • Median Property Price: $377,133
  • Price per Square Foot: $209
  • Price to Rent Ratio: 22
  • Traditional Rental Income: $1,413
  • Traditional Cash on Cash Return: 2.5%
  • Top Durham Neighborhood for Real Estate Investing: Scarsdale Village
  • Seller’s Market
  • Forecasted Real Estate Appreciation for 2021: 6.9% 
Other Raleigh/Durham Housing Market Rankings for 2021:
  • #1 for Homebuilding Prospects
  • #6 for Real Estate Investor Demand
  • #1 for Development and Redevelopment Opportunities
  • #11 for Availability of Debt and Equity Capital
Raleigh/Durham Multifamily Market 2021 Outlook:

 

 

 

#2. Austin, Texas

One reason the Austin real estate market has managed to weather the coronavirus is its lack of major economic dependence on the leisure and hospitality industries. As these sectors were hit the hardest during the pandemic, economics wholly dependent on them continue to struggle. Fortunately, Austin enjoys a diverse economy – just one of the reasons it takes the second spot on the list for the best places to invest in real estate in 2021. Austin ranked #1 for its local economy, according to the experts interviewed. As of September 2020, the unemployment rate was 6.5%.

The report labels the Austin housing market as a “Boom Market.” These are locations where real estate is in high demand and property values continue to appreciate rapidly. At the same time, Austin homes for sale have managed to remain relatively affordable, driving in-migration from West Coast areas like the California housing market during COVID-19.

Still, the local renter population remains high – around 56%. So Austin rental property owners will continue to enjoy good occupancy rates and high rental income next year as in-migration drives rental demand higher.

Related: 50 Best Cities for Rental Income

Austin Real Estate Market Statistics:
  • Median Property Price: $631,959
  • Price per Square Foot: $326
  • Price to Rent Ratio: 26
  • Traditional Rental Income: $2,036
  • Traditional Cash on Cash Return: 1.6%
  • Top Austin Neighborhood for Real Estate Investing: West University
  • Seller’s Market
  • Forecasted Real Estate Appreciation for 2021: 7.7%
Other Austin Housing Market Rankings for 2021:
  • #2 for Homebuilding Prospects
  • #1 for Real Estate Investor Demand
  • #4 for Development and Redevelopment Opportunities
  • #1 for Availability of Debt and Equity Capital
Austin Multifamily Market 2021 Outlook:
  • 63% of experts recommend buying a multifamily property
  • 26% of experts recommend holding onto your multifamily property
  • 12% recommend selling

#3. Nashville, Tennessee

The Nashville real estate market is being hailed as a “New Boomtown” in the report and as a “strong housing market.” As such, it has managed to maintain its #3 spot on the annual list of the best places to invest in real estate.

Being an 18-hour city, it continued to attract new residents during COVID-19. However, it is one of the few major cities that has managed to draw in a large amount of “smart, young workers.” This has allowed Nashville to officially begin recovering from the pandemic-driven job losses witnessed earlier this year. The unemployment rate for the metro area dropped to 5.9% at the end of September. The city ranked #4 for the general health of its local economy.

If you are considering buying rental property in the Nashville real estate market in 2021, know that the renter population is around 48%. Based on Mashvisor’s statistics below, the rental demand drives a good monthly income and cash on cash return.

Nashville Real Estate Market Statistics:
  • Median Property Price: $481,706
  • Price to Rent Ratio: 25
  • Traditional Rental Income: $1,612
  • Traditional Cash on Cash Return: 2.6%
  • Top Nashville Neighborhood for Real Estate Investing: Trinity Hills
  • Seller’s Market
  • Forecasted Real Estate Appreciation for 2021: 7.2%
Other Nashville Housing Market Rankings for 2021:
  • #10 for Homebuilding Prospects
  • #3 for Real Estate Investor Demand
  • #8 for Development and Redevelopment Opportunities
  • #3 for Availability of Debt and Equity Capital
Nashville Multifamily Market 2021 Outlook:
  • 59% of experts recommend buying a multifamily property
  • 37% of experts recommend holding onto your multifamily property
  • 4% recommend selling

Related: The 7 Best Nashville Neighborhoods to Invest in Real Estate

#4. Dallas/Fort Worth, Texas

The Dallas/Fort Worth market has moved up the list from #6 in 2020 to #4 for 2021. 

Dallas is grouped with Nashville as a “New Boomtown.” However, the housing market also falls into another group: the Super Sun Belt Magnet Cities. Locations are labeled as such for their ability to offer an affordable environment for both residents and businesses. They also have thriving economies that are home to a diverse range of businesses. The location ranked #2 for its local economy. 

This points to a positive job outlook, with the report estimating that cities like Dallas/Fort Worth will see 28% new jobs from 2019 – 2025. Currently, however, the local unemployment rate remains high amid the pandemic compared to other cities on this list – 8.4% for September 2020.

A diverse economy and a growing job market definitely earn the Dallas/Fort Worth housing market a spot on the list of the best places to invest in real estate. And those looking to enter the residential market should know that the renter population is high in both locations: 59% for the Dallas real estate market and 44% for the Fort Worth real estate market.

Dallas Real Estate Market Statistics:
  • Median Property Price: $490,477
  • Price per Square Foot: $227
  • Price to Rent Ratio: 21
  • Traditional Rental Income: $1,966
  • Traditional Cash on Cash Return: 1.9%
  • Top Dallas Neighborhood for Real Estate Investing: Reunion District
  • Seller’s Market
  • Forecasted Real Estate Appreciation for 2021: 6.1%
Fort Worth Real Estate Market Statistics:
  • Median Property Price: $324,337
  • Price per Square Foot: $152
  • Price to Rent Ratio: 16
  • Traditional Rental Income: $1,655
  • Traditional Cash on Cash Return: 2.7%
  • Top Fort Worth Neighborhood for Real Estate Investing: Village Creek
  • Seller’s Market
  • Forecasted Real Estate Appreciation for 2021: 7.3%
Other Dallas/Fort Worth Housing Market Rankings for 2021:
  • #3 for Homebuilding Prospects
  • #2 for Real Estate Investor Demand
  • #9 for Development and Redevelopment Opportunities
  • #2 for Availability of Debt and Equity Capital

#5. Charlotte, North Carolina

Another entry for the state of North Carolina, the Charlotte real estate market takes the #5 spot. The city is another labeled as a “New Boomtown” as people continue to migrate to the location during the pandemic.

Looking at the local economy, experts interviewed ranked Charlotte in position #5. As of the end of September 2020, the unemployment rate was 8.1%. So if you’re considering a real estate investment in Charlotte in 2021, keep an eye on the developing situation with the job market.

Charlotte rental properties enjoy demand as the renter population is around 48%.

Charlotte Real Estate Market Statistics:
  • Median Property Price: $435,448
  • Price per Square Foot: $219
  • Price to Rent Ratio: 23
  • Traditional Rental Income: $1,561
  • Traditional Cash on Cash Return: 2.4%
  • Top Charlotte Neighborhood for Real Estate Investing: Lakewood
  • Seller’s Market
  • Forecasted Real Estate Appreciation for 2021: 7.7%
Other Charlotte Housing Market Rankings for 2021:
  • #11 for Homebuilding Prospects
  • #4 for Real Estate Investor Demand
  • #2 for Development and Redevelopment Opportunities
  • #5 for Availability of Debt and Equity Capital
Charlotte Multifamily Market 2021 Outlook:
  • 56% of experts recommend buying a multifamily property
  • 36% of experts recommend holding onto your multifamily property
  • 8% recommend selling

#6. Tampa/St. Petersburg, Florida

Tampa is one of the best places to invest in real estate 2021

 

The Tampa/St. Petersburg market did not make it onto last year’s list for the 10 best places to invest in real estate. For 2021, however, it has climbed up to position #6. 

As a “Boom Market,” the location has benefited from in-migration during COVID-19. Similarly to Dallas/Fort Worth, the Tampa/St. Petersburg real estate market is a “Super Sun Belt Magnet” city.

For local economic prospects, the market was ranked #11. The unemployment rate for the metro area has been generally dropping since highs reached in April 2020. As of the end of September, the rate is 6.9%.

Tampa is a good rental market with a high renter population. The population in the Tampa real estate market is about 54%. It’s lower in the St. Petersburg real estate market, around 43%.

Tampa Real Estate Market Statistics:
  • Median Property Price: $516,442
  • Price per Square Foot: $254
  • Price to Rent Ratio: 24
  • Traditional Rental Income: $1,768
  • Traditional Cash on Cash Return: 2.5%
  • Top Tampa Neighborhood for Real Estate Investing: Northeast
  • Seller’s Market
  • Forecasted Real Estate Appreciation for 2021: 8.0%
St. Petersburg Real Estate Market Statistics:
  • Median Property Price: $537,210
  • Price per Square Foot: $336
  • Price to Rent Ratio: 24
  • Traditional Rental Income: $1,902
  • Traditional Cash on Cash Return: 2.3%
  • Top St. Petersburg Neighborhood for Real Estate Investing: Bartlett Park
  • Seller’s Market
  • Forecasted Real Estate Appreciation for 2021: 8.6%
Other Tampa/St. Petersburg Housing Market Rankings for 2021:
  • #5 for Homebuilding Prospects
  • #22 for Real Estate Investor Demand
  • #10 for Development and Redevelopment Opportunities
  • #28 for Availability of Debt and Equity Capital
Tampa/St. Petersburg Multifamily Market 2021 Outlook:
  • 67% of experts recommend buying a multifamily property
  • 30% of experts recommend holding onto your multifamily property
  • 2% recommend selling

#7. Salt Lake City, Utah

This is the first time in a few years that Salt Lake City makes it onto the list of the 10 best places to invest in real estate in the US. 

The Salt Lake City real estate market has continually been a destination for those leaving California – before and during the coronavirus. As such, it is another 18-hour city to be called a “Magnet.”

The city’s economy ranked #13 in the report. At the same time, the city had the lowest unemployment rate of cities on this list by the end of September – 5.4%. And it is this improvement in employment opportunities during the pandemic that has kept in-migration high in the city.

A Salt Lake City real estate investment rented out long term would find demand from the general population as 53% currently live in rental properties.

Salt Lake City Real Estate Market Statistics:
  • Median Property Price: $562,222
  • Price per Square Foot: $288
  • Price to Rent Ratio: 33
  • Traditional Rental Income: $1,426
  • Traditional Cash on Cash Return: 1.6%
  • Top Salt Lake City Neighborhood for Real Estate Investing: Bonneville Hills
  • Seller’s Market
  • Forecasted Real Estate Appreciation for 2021: 7.3%
Other Salt Lake City Housing Market Rankings for 2021:
  • #18 for Homebuilding Prospects
  • #19 for Real Estate Investor Demand
  • #11 for Development and Redevelopment Opportunities
  • #25 for Availability of Debt and Equity Capital
Salt Lake City Multifamily Market 2021 Outlook:
  • 67% of experts recommend buying a multifamily property
  • 27% of experts recommend holding onto your multifamily property
  • 6% recommend selling

 

#8. Washington DC- Northern VA

It may be surprising to see Washington DC, an “out-migration market”, make it onto the list of the 10 best places to invest in real estate in 2021. However, keep in mind it is a suburban area of Washington DC that ranks in position #8. And despite the fact that the city has lost some of its popularity among the general population, most of the experts interviewed believe this COVID-19 trend is not a permanent one. It’s likely that the Washington DC real estate market will remain an influential center in the United States. 

In terms of market groupings, the Washington DC housing market is an “Establishment.” This is because the city is considered to be a major center in the US and has continued to offer real estate opportunities for years. Washington DC- Northern VA is subcategorized as “Suburbs Ascending,” as it has gained popularity due to the coronavirus, allowing it to break into the top 10 for 2021.

For economy rankings, Washington DC- Northern VA came in #6. Although the unemployment rate initially showed signs of improvement back in May, it has remained steady, near 8.8% for a few months now.

Not only is the renter population in the Washington DC real estate market high (61%), but there is another reason to buy a rental property in the city in 2021. Studies show that after an election year, the DC housing market typically gets a boost.

Washington DC Real Estate Market Statistics:
  • Median Property Price: $711,007
  • Price per Square Foot: $577
  • Price to Rent Ratio: 23
  • Traditional Rental Income: $2,596
  • Traditional Cash on Cash Return: 2.8%
  • Top Washington DC Neighborhood for Real Estate Investing: Garfield Heights
  • Seller’s Market
  • Forecasted Real Estate Appreciation for 2021: 6.3%
Other Washington DC Housing Market Rankings for 2021:
  • #19 for Homebuilding Prospects
  • #13 for Real Estate Investor Demand
  • #24 for Development and Redevelopment Opportunities
  • #8 for Availability of Debt and Equity Capital
Washington DC Multifamily Market 2021 Outlook:
  • 54% of experts recommend buying a multifamily property
  • 43% of experts recommend holding onto your multifamily property
  • 3% recommend selling

#9. Boston, Massachusetts

The Boston real estate market is another “Establishment” on the list of best cities for 2021. One that is also witnessing out-migration during COVID-19 but that is expected to quickly regain its footing as a popular city center in the future. It’s subcategorized as a “Multitalented Metro Area.” Not only is Boston’s economy diverse, but it is considered to be a leader in a few different sectors, including biotech, education, healthcare, and even finance. 

The Boston housing market is the only “Multitalented Metro Area” to be named one of the best places to invest in real estate in 2021, likely due to the specific industries it leads. Boston is also expected to experience growth, despite being an expensive market to do business or buy a home. Experts strongly believe that Boston will continue to attract residents in the future thanks to its leadership and the top universities in the area.

With all of that said, the local economy was ranked #9 in the report. The city still struggles with a high unemployment rate of 11% although it has been significantly improving over the last few months.

The Boston real estate market is clearly not the cheapest place to invest for 2021. Naturally, housing costs keep the renter population high – 67%. However, if you can afford to buy a Boston investment property for sale, you will find high demand and a low vacancy rate.

Boston Real Estate Market Statistics:
  • Median Property Price: $1,040,905
  • Price per Square Foot: $787
  • Price to Rent Ratio: 32
  • Traditional Rental Income: $2,714
  • Traditional Cash on Cash Return: 1.6%
  • Top Boston Neighborhood for Real Estate Investing: Mission Hill
  • Seller’s Market
  • Forecasted Real Estate Appreciation for 2021: 6.9%
Other Boston Housing Market Rankings for 2021:
  • #29 for Homebuilding Prospects
  • #5 for Real Estate Investor Demand
  • #23 for Development and Redevelopment Opportunities
  • #4 for Availability of Debt and Equity Capital
Boston Multifamily Market 2021 Outlook:
  • 60% of experts recommend buying a multifamily property
  • 32% of experts recommend holding onto your multifamily property
  • 9% recommend selling

#10. Long Island, New York

The Long Island market has been slowly growing for years now and as such, it’s not typical to see it named as one of the best places to invest in real estate. However, with the surge in demand for suburban homes, the location has quickly climbed the list and broke into the top 10 for 2021. It falls under the category of “Establishment” and the subcategory of “Suburbs Ascending” in the report.

Related: Suburban Real Estate Market Boom Due to COVID-19

The local economy placed #15 with the region’s unemployment continuing to drop, landing at 9.5% at the end of September.

Long Island Real Estate Market Statistics:
  • Median Property Price: $1,185,517
  • Price per Square Foot: $618
  • Price to Rent Ratio: 35
  • Traditional Rental Income: $2,789
  • Traditional Cash on Cash Return: 1.2%
  • Top Long Island Neighborhood for Real Estate Investing: Arverne
  • Seller’s Market
  • Forecasted Real Estate Appreciation for 2021: 5.6%
Other Long Island Housing Market Rankings for 2021:
  • #22 for Homebuilding Prospects
  • #9 for Real Estate Investor Demand
  • #14 for Development and Redevelopment Opportunities
  • #6 for Availability of Debt and Equity Capital
Long Island Multifamily Market 2021 Outlook:
  • 46% of experts recommend buying a multifamily property
  • 54% of experts recommend holding onto your multifamily property
  • 0% recommend selling

 

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Your Home May Be Worth More Than You Think

Thursday, December 3, 2020
by Christie Cannon

There is currently a shortage of homes for sale in North Texas.
Buyers are out there and their biggest complaint is a lack of inventory



The shortage of homes is creating stiff competition for buyers and resulting in homes receiving multiple offers. This feeding frenzy is driving up sales prices and reducing the number of time homes are on the market.

Most people have more equity in their home than they realize. Couple this with high buyer demand reduced inventory and record low-interest rates... there has never been a better time to list your home for sale!

Interested in selling but want to find a new home to purchase first? No sweat, we have several programs that will allow you to buy before you put your home on the market!

 

Let us know if you want some additional information on buying before you sell, or if we can send you over a CMA (comparative market analysis) to show you how much your home would list for in today's market.

 

Give us a call today!

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4 Reasons Why the Election Won’t Dampen the Housing Market

Monday, November 2, 2020
by Christie Cannon

4 Reasons Why the Election Won’t Dampen the Housing Market

4 Reasons Why the Election Won’t Dampen the Housing Market | MyKCM
 

Tomorrow, Americans will decide our President for the next four years. That decision will have a major impact on many aspects of life in this country, but the residential real estate market will not be one of them.

Analysts will try to measure the impact feasible changes in regulations might have on housing, the effect of a possible first-time buyer program, and any number of other situations based on who wins. The housing market, however, will remain strong for four reasons:

1. Demand Is Strong among Millennials

The nation's largest generation began entering the housing market last year as they reached the age to marry and have children - two key drivers of homeownership. As the Wall Street Journal recently reported:

“Millennials, long viewed as perennial home renters who were reluctant or unable to buy, are now emerging as a driving force in the U.S. housing market’s recent recovery.”

2. Mortgage Rates Are Historically Low

All-time low interest rates are also driving demand across all generations. Strong demand created by this rate drop has countered other economic disruptions (e.g., pandemic, recession, record unemployment).

In addition, Freddie Mac just forecasted mortgage rates to remain low through next year:

“One of the main drivers of the strong housing recovery is historically low mortgage interest rates…Given weakness in the broader economy, the Federal Reserve’s signal that its policy rate will remain low until inflation picks up, and no signs of inflation, we forecast mortgage rates to remain flat over the next year. From the third quarter of 2020 through the end of 2021, we forecast mortgage rates to remain unchanged at 3%.”

3. Prices Continue to Appreciate

The continued lack of supply of existing homes for sale coupled with the surge in buyer demand has experts forecasting strong price appreciation over the next twelve months.

4. History Says So

Though it’s true that the market slows slightly in November when it’s a Presidential election year, the pace returns quickly. Here’s an explanation as to why from the Homebuilding Industry Report by BTIG:

“This may indicate that potential homebuyers may become more cautious in the face of national election uncertainty. This caution is temporary, and ultimately results in deferred sales, as the economy, jobs, interest rates and consumer confidence all have far more meaningful roles in the home purchase decision than a Presidential election result in the months that follow.”

Ali Wolf, Chief Economist for Meyers Research, also notes:

“History suggests that the slowdown is largely concentrated in the month of November. In fact, the year after a presidential election is the best of the four-year cycle. This suggests that demand for new housing is not lost because of election uncertainty, rather it gets pushed out to the following year as long as the economy stays on track.”

Bottom Line

There’s no doubt this is one of the most contentious presidential elections in our nation’s history. The outcome will have a major impact on many sectors of the economy. However, as Matthew Speakman, an economist at Zillow, explained last week:

“While the path of the overall economy is likely to be most directly dictated by coronavirus-related and political developments in the coming months, recent trends suggest that the housing market – which has basically withstood every pandemic-related challenge to this point – will continue its strong momentum in the months to come.”

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Christie Cannon
Keller Williams Realty
5933 Preston Road #300
Frisco TX 75034
972-215-7747
Fax: 972-215-7748
Send an Email
Keller Williams Frisco - The Christie Cannon Team - http://www.christiecannon.com

 

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