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Why Right Now May Be the Time to Sell Your House

Thursday, January 14, 2021
by Christie Cannon

Why Right Now May Be the Time to Sell Your House

Why Right Now May Be the Time to Sell Your House | MyKCM
 

The housing market made an incredible recovery in 2020 and is now positioned for an even stronger year in 2021. Record-low mortgage interest rates are a driving factor in this continued momentum, with average rates hovering at historic all-time lows.

According to the latest Realtors Confidence Index Survey from the National Association of Realtors (NAR), buyer demand across the country is incredibly strong. That’s not the case, however, on the supply side. Seller traffic is simply not keeping up. Here’s a breakdown by state:Why Right Now May Be the Time to Sell Your House | MyKCMAs the maps show, buyer traffic is high, but seller traffic is low. With so few homes for sale right now, record-low inventory is creating a mismatch between supply and demand.

NAR also just reported that the actual number of homes currently for sale stands at 1.28 million, down 22% from one year ago (1.64 million). Additionally, inventory is at an all-time low with 2.3 months supply available at the current sales pace. In a normal market, that number would be 6.0 months of inventory – significantly higher than it is today.

What does this mean for buyers and sellers?

Buyers need to remain patient in the search process. At the same time, they must be ready to act immediately once they find the right home since bidding wars are more common when so few houses are available for sale.

Sellers may not want to wait until spring to put their houses on the market, though. With such high buyer demand and such a low supply, now is the perfect time to sell a house on optimal terms.

Bottom Line

The real estate market is entering the year like a lion. There’s no indication it will lose that roar, assuming inventory continues to come to market.

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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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The Difference a Year Makes for Homeownership

Tuesday, December 22, 2020
by Christie Cannon

The Difference a Year Makes for Homeownership

The Difference a Year Makes for Homeownership | MyKCM
 

Over the past year, mortgage rates have fallen more than a full percentage point, hitting a new historic low 15 times. This is a great driver for homeownership, as today’s low rates provide consumers with some significant benefits. Here’s a look at three of them.

1. Move-up or Downsize: One option is to consider moving into a new home, putting the equity you’ve likely gained in your current house toward a down payment on a new one that better meets your needs – something that’s truly a perfect fit, especially if your lifestyle has changed this year.

2. Become a First-Time Homebuyer: There are many financial and non-financial benefits to owning a home, and the most important thing is to first decide when the time is right for you. You have to determine that on your own, but know that now is a great time to buy if you’re considering it. Just take a look at the cost of renting vs. buying.

3. Refinance: If you already own a home, you may decide you’re going to refinance. It’s one way to lock in a lower monthly payment and save more over time. However, it also means paying upfront closing costs, too. If you want to take this route, you have to answer the question: Should I refinance my home?

Why 2020 Was a Great Year for Homeownership

Last year, the average mortgage rate was 3.93% (substantially higher than it is today). If you waited for a better time to make a move, market conditions have improved significantly. Today’s low mortgage rates are a huge perk for buyers, so it’s a great time to get more for your money and consider a new home.

The chart below shows how much you would save per month based on today’s rates compared to what you would have paid if you purchased a home exactly one year ago, depending on how much you finance:The Difference a Year Makes for Homeownership | MyKCM

Bottom Line

If you’ve been waiting since last year to make your move into homeownership or to find a house that better meets your needs, today’s low mortgage rates may be just what you need to get the process going. Let’s connect today to discuss how you may benefit from the current rates.

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Homeowner Equity Increases an Astonishing $1 Trillion

Thursday, December 17, 2020
by Christie Cannon

Homeowner Equity Increases an Astonishing $1 Trillion

Homeowner Equity Increases an Astonishing $1 Trillion | MyKCM
 

In a year that was financially devastating for many Americans, some good news for most homeowners is the dramatic gain in home equity over the last twelve months. Last week, CoreLogic released its 2020 3rd Quarter Homeowner Equity Insights report, which reveals four major findings:

  1. U.S. homeowners with mortgages have seen their equity increase by a total of $1 trillion since the third quarter of 2019.
  2. The average homeowner gained approximately $17,000 in equity over the past year.
  3. This is a 10.8% increase in equity over last year.
  4. The average household with a mortgage now has $194,000 in home equity.

This has given many homeowners the ability to redesign their homes to meet their changing needs. Frank Martell, President and CEO of CoreLogic, explains in the report:

“The housing market has remained a strong pillar in an otherwise tumultuous economic year. A sharp rise in demand, spurred by record-low interest rates, continues to bolster homeowner equity. And with many people now spending more time than ever before at home, some homeowners have tapped into their strengthening equity to fund renovations.”

This build-up in equity also gives more options to homeowners who have been financially impacted by the pandemic. Today, homeowners with substantial equity are in a much better position to work out a deal with their lender if they cannot pay their mortgage. Alternatively, they also have the power to sell and walk away with their equity in the form of cash or as a down payment toward a more affordable house. Frank Nothaft, Chief Economist for CoreLogic, addresses the issue in the report:

"Over the past year, strong home price growth has created a record level of home equity for homeowners…This provides an important buffer to protect families if they experience financial difficulties and is one reason for the generational-low in foreclosure rates reported."

Here’s a map showing equity gains by state:Homeowner Equity Increases an Astonishing $1 Trillion | MyKCMThis gain in home equity is a blessing for homeowners in these trying times, and it seems that the next two years will continue to reward those who own a home.

Last week, the National Association of Realtors (NAR) held their 2020 Real Estate Forecast Summit. At the summit, they shared the results of a recent survey of 23 economic and housing market experts. The median forecast among the experts called for home values to increase further by 8% in 2021 and 5.5% in 2022.

Bottom Line

In a year that has many of us reevaluating what “home” really means, those who own their homes have been rewarded with a financial windfall that averages $17,000 individually and totals $1 trillion nationally.

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3 Reasons to Be Optimistic about Real Estate in 2021

Wednesday, December 16, 2020
by Christie Cannon

3 Reasons to Be Optimistic about Real Estate in 2021

3 Reasons to Be Optimistic about Real Estate in 2021 | MyKCM
 

This year will be remembered for many reasons, and optimism is one thing that’s been in short supply since the spring. We’re experiencing a global pandemic, social unrest, an economic downturn, and natural disasters, just to name a few. The challenges brought on by the health crisis have also forced many homeowners to reevaluate their space and what they need in a home going into 2021. So, experts are forecasting that next year is one in which we can be optimistic about real estate for three key reasons.

1. The Economy Is Expected to Continue Improving

Tim Duy from the University of Oregon puts it this way:

“There is nothing fundamentally ‘broken’ in the economy that needs to heal…there was no obvious financial bubble driving excessive activity in any one economic sector when the pandemic hit…With Covid-19 cases surging again, it is understandably hard to look optimistically to the other side of this winter…Don’t let the near-term challenges distract from the economic stage being set for next four years.”

2. Interest Rates Are Projected to Stay Low

In the latest projections from Freddie Mac, interest rates for a 30-year fixed-rate mortgage are expected to remain at or near 3% next year. These low rates will continue to make homes more affordable, driving demand for housing in 2021.3 Reasons to Be Optimistic about Real Estate in 2021 | MyKCM

3. Future Home Sales Are Forecasted to Grow

While the economy improves and interest rates remain low, homes are also expected to continue appreciating as more people buy in the coming year. Danielle Hale, Chief Economist at realtor.com, says:

“We expect home sales in 2021 to come in 7.0% above 2020 levels, following a more normal seasonal trend and building momentum through the spring and sustaining the pace in the second half of the year.”

Bottom Line

Experts forecast that buyers and sellers are going to be active in 2021. If you’ve thought about buying or selling your home this year but have held off, now may be the time to take advantage of this market. Let’s connect to take the first step toward your new home today.

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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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Knowledge Is Power on the Path to Homeownership

Tuesday, December 1, 2020
by Christie Cannon

Knowledge Is Power on the Path to Homeownership

Knowledge Is Power on the Path to Homeownership | MyKCM
 

Homeownership is on the goal list for many young adults, but sometimes it’s hard to know exactly how to get there. From understanding the homebuying process to pre-approval and down payment assistance options, uncertainty along the way can ultimately hold some buyers back.

Today, there are over 75 million Millennials and 67 million Gen Z’ers in the U.S., making up a significant number of both current and soon-to-be homebuyers. According to a recent Fannie Mae survey of more than 2,000 of these individuals:

“88% said they are confident they will achieve homeownership someday.”

In addition, the survey also reveals that for younger generations, the motivation to own a home may be more emotional than financial compared to previous generations:

  • <50% say they want to use their home as an asset
  • 78% believe it’s the best way to live the way they want, without restrictions
  • 80% believe homeownership is the best way to make it on their own

Whether homeownership goals come from the heart or are driven by financial aspirations (or maybe both), the obstacles standing in the way don’t have to bring these dreams to a screeching halt. The same survey also reveals two key roadblocks for potential buyers. Thankfully, they’re both easily overcome with the power of knowledge and trusted advisors leading the way. Here’s a look at these two challenges potential homebuyers face today:

1. 73% of future homebuyers are unaware of low-down-payment mortgage options

For those who want to purchase a home, low-down-payment options are instrumental to affording one sooner rather than later, especially given the amount of debt many younger adults have accumulated. Fannie Mae also notes:

“Among the challenges they face is an unprecedented amount of debt, along with a lack of understanding of the mortgage process and their own purchasing power. Debt, in particular, creates many obstacles such as a limited ability to save and the fear of taking on more debt.”

Today, there are more than 2,340 down payment assistance programs available nationwide to help relieve this pressure. Understanding what’s out there and the options available may help many buyers become homeowners faster than they thought possible. In a year like this, with record-low mortgage rates making their mark in the history books, being able to take advantage of the opportunity buyers have right now is essential to long-term affordability.

2. 64% of buyers expect lenders and other real estate professionals to educate them about the mortgage process

While many people love to do a quick search online to find instant answers to their questions, it isn’t the only way younger generations want to consume information or build their knowledge base. As the survey mentions, having trusted professionals help them learn what it takes to achieve their dreams is definitely on their wish list too.

Bottom Line

If you’re aiming for homeownership someday, it may be in closer reach than you think. Let’s connect so you can learn about the process and get the guidance you need to make it happen.

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Photo of Christie Cannon Real Estate
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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