When most people buy a house, they think at least 5 years out.
That’s one of the reasons it’s a good idea to look that far ahead when you are considering purchasing or trading up to a bigger home.
The Home Expectations Survey, published quarterly by Pulsenomics, provides a quick summary of what a nationwide panel of 100+ economists, real estate experts and investment & market strategists expect housing values to do in the next 5 years.
The average projections of all the experts are summed up in a single percentage that defines where they think prices are headed.
Here’s What the Latest Survey Revealed
Home values will INCREASE by 4.1% in 2015 over 2014 values.
Home Values Will INCREASE by 18.1% (cumulative) by 2019.
That’s an average annual appreciation of 3.4% over the next 5 years. (3.4 x5=18.1).
Pessimists and Optimists
The most pessimistic experts taking the survey thought the cumulative appreciation would be at least 10.5% by 2019. While the quartile of experts with the most optimistic outlook expected home values to rise over 25% in the next 5 years, exceeding bubble-era peaks by February 2017. If the panelists’ projections hold true the median U.S. home value will break through the April 2007 pre-recession peak of $196,400 in December of 2017. (See Chart Above)
As I’ve said here before, sooner rather than later is the best time to buy a home. This survey further supports my conclusions. Values are expected to go up. Also, this month, the Fed may raise rates. Even if they wait — due to stock market volatility — it is only a matter of months (not years) before they do so. The bottom line: If you plan to buy or sell in the next 5 years, NOW is the optimum time. If you wait, you risk higher prices and interest rates eating away at your buying power.
Contact Us Today and We’ll Help You Find the Home of Your Dreams
Call me at 912-844-9000 or fill out this contact form and I’ll reach out to you. But hurry, you don’t want to wait too long and miss this optimum buying opportunity.
It’s been an extra hot summer, but it’s almost over (at least for kids going back to school). Home sales have also been hot this summer and that’s one of the reasons why now is the time to sell your home. Here’s a few more reasons why there’s “no time like the present” if you’re thinking of listing and selling your home.
1. Buyer Demand Is White Hot
One of the ways to measure buyer demand is to look at foot traffic. This refers to the number of people who are physically out browsing homes for sale. The most recent foot traffic data shows that more prospective buyers are looking at homes right now than at any point in the last two years.
Obviously, the best time to sell is when buyers are hungry to buy and this stat shows that there’s a huge number of buyers ready to find and buy a new home.
2. Inventory Levels Have Dropped
This means sellers face less competition than they used to. In fact, The National Association of Realtors recently found that housing supply (or inventory) has fallen to 5.0-month of supply across the nation. This is considered a sellers market — a normal (or balanced market) has 6 months of inventory. When a inventory levels reach seven months and beyond, the market is in the buyer’s favor.
Since there are fewer homes to choose from, your home has a better chance of being noticed and sold.
3. Demand is Pent Up
Many homeowners wanted to move years ago, but they had negative equity in their homes. Now that housing sales and values have increased, they’re in a better position to sell an old home and buy a new one.
As their equity grows, more will sale. That means you’ll have more competition in the future.
4. Home Prices Are Appreciating Again
In a recent report, RealtyTrac, noted that sellers (in 2015) have seen the biggest gains in home appreciation since 2007. In June, sellers also averaged a sell price above estimated market value for the first time in two years.
5. Prices Should Keep Going Up
If you plan to upsize (sell and buy a bigger, more expensive house) you will probably pay more in the future than you will right now. Some real estate experts expect prices to increase nearly 20% by 2019.
Interest rates also sit at historic lows, but many think that will end soon. Some lenders expect a 1 percentage point increase over the next year (from 4% to 5%). So if you sell and buy later, you’ll spend more because your buying power will have decreased.
List Your Home for Sell Today
Call us today at 912-844-9000 and we can evaluate the value of your home. In fact, we have some buyers just waiting for the right home to come on the market. Maybe it’s yours.
They come as visitors, discover it’s quirky, laid-back vibe, fall in love and eventually buy a home. Some buy and visit on the holidays and weekends. Others invest and rent their homes out to vacationers, before settling down as residents later in life. Still others become full-time residents of the quaint island community that has about 3,000 year-round locals.
Tybee is a quirky, small town
If you spend much time on Tybee, you’ll meet or at least see just about everyone. Whether your biking or golf-carting to the Post Office to get your mail, heading to the Tybee Market for some groceries or to one of the many great restaurants for a beer, pizza or some seafood.
Just keep in mind, you’re on Tybee time so don’t get worked up over little inconveniences. The long-timers and locals don’t.
Tybee is laid-back and casual — all the time
Most people dress casually all the time. So you really never know if you’re talking to a millionaire living in a mansion on the water or a local simply trying to earn enough to buy beer and go surfing as much as possible. And you’ll find folks in just about all areas in between. It’s okay to dress up, but you don’t have to — and most people you see won’t be wearing their best clothes.
Tybee offers a lot to see and do
If lying out on the beach for hours is not your thing you will still find plenty to do — on the water and off. Of course there is fishing, crabbing and boating. But you can also kayak around on the inlets and explore or even camp on Little Tybee, which has no homes on it.
You can also visit the marine science center. In fact, Tybee recently started a charter school focused on marine science.
Tybee also offers live music venues, a wine festival and has many planned parades and events throughout the year. It has its own St. Paddy’s Parade, Pirate Fest, Beach Bum Parade (keep your windows rolled up and stay off the streets if you don’t want to get soaked) and an Independence Day fireworks show, usually the day before Savannah’s.
You can also participate in the Tybee marathon and half marathon, watch professional beach volleyball, and maybe even get cast as an extra in one of the many movies that film on the island.
Tybee has great eats for every palate and price range
If you love to eat out, you’ll be amazed at how many excellent restaurants you’ll find on Tybee.
And they run the gamut, you can get a cheap slice of pizza and draft beer at Huca Poos, a mid-range meal at places like the The Tybee Island Social Club or a 5-Star Fine Dining experience at the Sundae Cafe (don’t be fooled by the fact it sits next to a convenience store. Many consider it the best place on the Island.)
There’s too many to list here so here’s a list if you want more ideas.
Where Should I Live On Tybee?
The north side of Tybee is less touristy and more residential than the Southside of Tybee, while the middle of the island (1st through 10th Streets) offers a mix of residential homes and vacation rentals, as well as smaller hotels and condos.
There are also some mostly residential neighborhoods off the main drag before you actually get to the beach in the Spanish Hammock and Horse Pen Hammock areas.
Want to Learn More About Tybee or Tour Some Homes?
Contact us today or next time you’re in Savannah and we can take you on a guided tour of the area, showing you the neighborhoods that match up best with your wants and needs. Call me at 912-844-9000 or fill out this short contact form.
It’s the end of “free money” according to Erik Davidson, chief investment officer for Wells Fargo & Co.’s private bank. He called this week’s Fed announcement a “major inflection point.” Now the question is how will this impact Savannah mortgage rates.
As expected Yellen and the Fed did not raise rates, this time, but almost everyone expects at least a 0.25 percentage point bump up when the Fed meets again in September.
Luxury developments all over the U.S., which used to rely on Golf Courses as the centerpiece of their selling strategies, are now adding enhanced amenities to draw buyers with new tastes. Fishing ponds, skate parks, orchards, horse parks, nature trails and even movie theaters and bowling alleys have become a part of the new “lifestyle” amenities.
Over the last few years, luxury developers have weathered the real state market meltdown, as well as dwindling interest in the game of golf.
In 2014, more golf courses closed than opened in the U.S. according to the National Golf Foundation. The decrease in golfers continued to fall too, but less than it had in previous years. There are currently about 25 million golfers in the U.S. That’s about 8.5% of the population. But 20% of homebuyers in master-planned development play the game.
Reaching Out to Families and Kids
Golf communities have started to provide more opportunities for families, particularly kids to develop more interest in golf. They are creating smaller family and kid-friendly courses and providing golf lessons and camps focused on getting younger people interested in the game.
Developments also offer other recreational activities for families and kids, including fitness centers with yoga and “boot camps,” as well as sports families can play together like flag football. Some communities even focus on horseback riding and luxury camping.
Master-planned communities also provide less expensive sports memberships, which give residents access to these types of activities, but not golf. Typically, they run about half the price of a golf membership and allow members to play some golf if they pay the greens fee.
Savannah’s Golf Course Communities
Locally, The Landings on Skidaway Island boasts 40 miles of trails that are frequented by walkers, runners, bikers, and golf carters. The development also includes many parks — one just for dogs. It also has two deep water marinas, five restaurants, 34 tennis courts, six pools (indoor and outdoor) and a fitness center to go with its six Championship Golf Courses.
The Ford Plantation in Richmond Hill has an equestrian center, fresh and salt water fishing areas, a deep water marina, day spa, 10 miles of horse, biking and hiking trails, and an organic garden in addition to a Championship Golf Course.
Southbridge in the West Chatham area of Savannah offers The Grand Lake Lodge and Spa, which has six acres of recreational amenities, including walking trails, beach volleyball, basketball, and state-of-the-art workout equipment. The Lodge also has a full-service spa, saunas and steam rooms. Southbridge also has a golf course and golf academy.
Savannah Quarters located in Pooler has a huge swim and fitness center, including a junior Olympic lap pool and another with a towering waterslide, as well as a golf course and tennis courts. The community also houses the 29,000 square foot Savannah Quarters Golf Club House, which includes the golf grille, wine room and main dining room.
— Ed Yannett
Interested in Discovering Savannah’s Amenity-Rich Luxury Communities?
Contact me today and I can give you a firsthand look at all the lifestyle amenities and beautiful homes these luxurious communities offer local homebuyers and those seeking a vacation or retirement home.