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Home Prices Falling or Softening??... What is the Difference?

9/27/2018

Related imageWe are beginning to see reports that more housing inventory is coming to the market and that buyer demand may not be increasing at the same pace it did earlier this year. The result will be many headlines written to address the impact that these two situations will have on home values.

Many of these headline writers will confuse “softening home prices” with “falling home prices,” but there is a major difference between the two.

The data will begin to show that home values are not appreciating at the same levels as they had over the last several years (softening prices). This does NOT mean that prices are depreciating (falling prices).

Here is an example: Over the last several years, national home values increased by more than 6% annually. If you had a home worth $300,000 at the beginning of the year, it would be worth $318,000 by year’s end. If the appreciation rate “falls” to 4%, that $300,000 house would be worth $312,000 at the end of next year – a $6,000 difference.

The price of the home did not fall. It just didn’t increase at the level it had the previous year.

Appreciation rates are projected to end this year at approximately 5%, and then drop to somewhere between 4-5% next year. This drop in appreciation rate will cause home price increases to soften.

Again, this does not mean that home prices will depreciate, but instead that they will appreciate more slowly.

Bottom Line

Be careful when reading headlines that discuss home values. Some headline writers will be legitimately confused and will use the word falling in place of softening. Others will realize that the headline “Home Prices are Falling!” will get more clicks than “Home Prices are Softening” and will intentionally write the more compelling headline. Read the article. If the word depreciation is not mentioned, home values are not falling.

 article by Keeping Current Matters

NAR Reports Show It's A Great Time to Sell!

9/11/2018

 

NAR Reports Show It’s A Great Time to Sell! | Keeping Current Matters

We all realize that the best time to sell anything is when the demand for that item is high and the supply of that item is limited. The last two major reports issued by the National Association of Realtors (NAR) revealed information that suggests that right now continues to be a great time to sell your house.

Let’s look at the data covered in the latest Pending Home Sales Report and Existing Home Sales Report.

THE PENDING HOME SALES REPORT

The report announced that pending home sales (homes going into contract) are down 2.3% from last year and have continued to fall on an annual basis for seven straight months.

Lawrence Yun, NAR’s Chief Economist, had this to say:

“The reason sales are falling off last year’s pace is that multiple years of inadequate supply in markets with strong job growth have finally driven up home prices to a point where an increasing number of prospective buyers are unable to afford it.”

Takeaway: Demand for housing is strong and will continue to grow in 2019. Without an influx of new listings for sale, pending home sales will continue to decline. Listing now means you will be able to take advantage of the demand currently in the market.

THE EXISTING HOME SALES REPORT

The most important data point revealed in the report was not sales-based, but was instead the inventory of homes for sale (supply). The report explained:

  • Total housing inventory decreased 0.7% to 5.34 million homes available for sale in July
  • This represents a 4.3-month supply at the current sales pace
  • Sales are now 1.5% below a year ago

There were two more interesting comments made by Yun in the report:

“Led by a notable decrease in closings in the Northeast, existing home sales trailed off again last month, sliding to their slowest pace since February 2016 at 5.21 million.”

In real estate, there is a guideline that often applies: When there is less than a 6-month supply of inventory available, we are in a seller’s market and we will see appreciation; between 6-7 months is a neutral market, where prices will increase at the rate of inflation; and more than a 7-month supply means we are in a buyer’s market and should expect depreciation in home values. As Yun notes, we are (and will remain) in a seller’s market and prices will continue to increase unless more listings come to the market.

“Listings continue to go under contract in under a month, which highlights the feedback from Realtors® that buyers are swiftly snatching up moderately-priced properties. Existing supply is still not at a healthy level, and new home construction is not keeping up to meet demand.”

Takeaway: Inventory of homes for sale is still well below the 6-month supply needed for a normal market. Prices will continue to rise if a sizable supply does not enter the market.

Bottom Line

If you are going to sell, now may be the time to take advantage of the ready, willing, and able buyers that are still out looking for your house.


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What's Happening at the lake?... Everything!

6/2/2018

Image result for lake of the ozarks fun

Memorial Weekend is the real kickoff to activity at the Lake of the Ozarks.  Every week can be a serene getaway or action packed... your choice!  The real challenge will be figuring out how to fit it all in!

For more information on activities at the lake and to view the calendar of events, visit www.FunLake.com.

10 TIPS TO SECURE THE BEST INTEREST RATE ON YOUR MORTGAGE

2/19/2018

Best Lake Towns in the U.S.

1/1/2018

Lake of the Ozarks remains on top!!

According to MSN.com, Lake of the Ozarks is ranked in the top 10 Best Lake Towns in the U.S.  The full article is available to view at MSN.com.

 

Best Recreational Lake

12/16/2017
Best Recreational Lake12/16/2017

Lake of the Ozarks Wins Best Recreational Lake

Big Bear Lake, West Okoboji Lake, Lake Cumberland and Lake Tahoe also winners

Lakes and reservoirs comprise 39.9 million acres in the United States. In honor of Lakes Appreciation Month in July, we set out to find the best recreational lakes in the nation.

  • LAKE OF THE OZARKS
    Missouri

It was a very close race between the winner and runner-up, but in the end it was Missouri's Lake of the Ozarks that won the most reader votes and the title of Best Recreational Lake. This large reservoir from the Osage River offers visitors more than 1,000 miles of shore. It belongs to Missouri’s biggest state park and is a sought-after vacation destination with a wide array of activities, from fishing to shopping to dining to spas.

The top 10 winners in the category Best Recreational Lake are as follows:

  1. Lake of the Ozarks
  2. Big Bear Lake
  3. West Okoboji Lake
  4. Lake Cumberland
  5. Lake Tahoe
  6. Lake Havasu
  7. Lake Michigan
  8. Lake Coeur d'Alene
  9. Flathead Lake
  10. Lake Po
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