I’ve had 4 listings hit the market ( Barrington , Bristol , East Side and Downtown PVD.
Two of which have closed already and 2 are pending.
Purchases. I’ve gone under contract on behalf of my buyers on four properties in Barrington , Pawtucket and West Warwick.
Rentals. I took on a new rental listing in East Providence and got one rented in Bristol . More listings ready to hit the market in the weeks to follow.
The market is strong. I’ve pivoted to facilitate listing success and sales success in a safe, proactive , “client first “ manner.
Have I been busy ? Yes with smiling eyes resonating behind the masked face. ??
Economists Forecast Recovery to Begin in the Second Half of 2020
With the U.S. economy on everyone’s minds right now, questions about the country’s financial outlook continue to come up daily. The one that seems to keep rising to the top is: when will the economy begin to recover? While no one knows exactly how a rebound will play out, expert economists around the country are becoming more aligned on when the recovery will begin.
According to the latest Wall Street Journal Economic Forecasting Survey, which polls more than 60 economists on a monthly basis, 85.3% believe a recovery will begin in the second half of 2020 (see graph below):There seems to be a growing consensus among these experts that the second half of this year will be the start of a turnaround in this country.
Chris Hyzy, Chief Investment Officer for Merrill notes:
“We fully expect the economy could begin to pick up in late June and July with a strong recovery in the fourth quarter.”
In addition, five of the major financial institutions are also forecasting positive GDP in the second half of the year. Today, four of the five expect a recovery to begin in the third quarter of 2020, and all five agree a recovery should start by the fourth quarter (see graph below):
Bottom Line
The vast majority of economists, analysts, and financial institutions are in unison, indicating an economic recovery should begin in the second half of 2020. Agreement among these leading experts is stronger than ever.
Buying or Selling a Home? You Need an Expert Kind of Guide
In a normal housing market, whether you’re buying or selling a home, you need an experienced guide to help you navigate through the process. You need someone you can turn to who will tell you how to price your home correctly right from the start. You need someone who can help you determine what to offer on your dream home without paying too much or offending the seller with a low-ball offer.
We are, however, in anything but a normal market right now. We are amid one of the greatest health crises our nation has ever seen. The pandemic has had a dramatic impact on the journey consumers take to purchase or sell a home. To successfully navigate the landscape today, you need more than an experienced guide. You need a ‘Real Estate Sherpa.’
According to Lexico, a Sherpa is a “member of a Himalayan people living on the borders of Nepal and Tibet, renowned for their skill in mountaineering.” Sherpas are skilled in leading their parties through the extreme altitudes of the peaks and passes in the region – some of the most treacherous trails in the world. They take pride in their hardiness, expertise, and experience at very high altitudes.
They are much more than just guides.
This is much more than a normal real estate market.
Today, the average guide just won’t do. You need a Sherpa. You need an expert who understands how COVID-19 is impacting the thoughts and actions of the consumer (ex: virtual showings, proper safety protocols, e-signing documents). You need someone who can simply and effectively explain the changes in today’s process to you and your family. You need an expert who will guarantee you make the right decision, especially in these challenging times.
Bottom Line
Hiring an agent who understands how the pandemic is reshaping the real estate processes is crucial right now. Let’s connect today to guarantee your journey is a safe and successful one.
6 Reasons Why Selling Your House on Your Own Is a Mistake
There are many benefits to working with a real estate professional when selling your house. During challenging times like the one we face today, it becomes even more important to have an expert help guide you through the process. If you’re considering selling on your own, known in the industry as a For Sale By Owner or FSBO, please consider the following:
1. Your Safety Is a Priority
During this pandemic, your family’s safety comes first. When you FSBO, it is incredibly difficult to control entry into your home. A real estate professional will have the proper protocols in place to protect not only your belongings, but your family’s health and well-being too. From regulating the number of people in your home at one time to ensuring proper sanitization during and after a showing, and even facilitating virtual tours for buyers, agents are equipped to follow the latest industry standards recommended by the National Association of Realtors (NAR) to help protect you and your family.
2. A Powerful Online Strategy Is a Must to Attract a Buyer
Recent studies have shown that, even before COVID-19, the first step 44% of all buyers took when looking for a home was to search online. Throughout the process, that number jumped to 93%. Today, those numbers have grown exponentially. Most real estate agents have developed a strong Internet and social media strategy to promote the sale of your house. Have you?
3. There Are Too Many Negotiations
Here are just a few of the people you’ll need to negotiate with if you decide to FSBO:
The buyer, who wants the best deal possible
The buyer’s agent, who solely represents the best interest of the buyer
The inspection companies, which work for the buyer and will almost always find challenges with the house
The appraiser, if there is a question of value
As part of their training, agents are taught how to negotiate every aspect of the real estate transaction and how to mediate the emotions felt by buyers looking to make what is probably the largest purchase of their lives.
4. You Won’t Know if Your Purchaser Is Qualified for a Mortgage
Having a buyer who wants to purchase your house is the first step. Making sure they can afford to buy it is just as important. As a FSBO, it’s almost impossible to be involved in the mortgage process of your buyer. A real estate professional is trained to ask the appropriate questions and, in most cases, will be intimately aware of the progress that’s being made toward a purchaser’s mortgage commitment.
Further complicating the situation is how the current mortgage market is rapidly evolving because of the number of families out of work and in mortgage forbearance. A loan program that was there yesterday could be gone tomorrow. You need someone who is working with lenders every day to guarantee your buyer makes it to the closing table.
5. FSBOing Has Become More Difficult from a Legal Standpoint
The documentation involved in the selling process has increased dramatically as more and more disclosures and regulations have become mandatory. In an increasingly litigious society, the agent acts as a third-party to help the seller avoid legal jeopardy. This is one of the major reasons why the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years.
6. You Net More Money When Using an Agent
Many homeowners believe they’ll save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission.
A study by Collateral Analytics revealed that FSBOs don’t actually save anything by forgoing the help of an agent. In some cases, the seller may even net less money from the sale. The study found the difference in price between a FSBO and an agent-listed home was an average of 6%. One of the main reasons for the price difference is effective exposure:
“Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.”
The more buyers that view a home, the greater the chance a bidding war will take place.
Bottom Line
Listing on your own leaves you to manage the entire transaction yourself. Why do that when you can hire an agent and still net the same amount of money? Before you decide to take on the challenge of selling your house alone, let’s connect to discuss your options.
Neighborhood that nurtures ….
Now more than ever we rely on those around us to serve as sources of support , camaraderie & comfort as we navigate the tumultuous and uncharted waters of this pandemic. In this time of isolation and trepidation we find ourselves seeking reassurance in the people around us and in the daily activities of those closest to us; our neighborhood.
In the past two months I’ve witnessed remarkable measures taken by those in my neighborhood to offer that support to each other. It can be as simply as the daily “hellos” and “how are you holding up “ shared from one yard to another or seeking levity by holding a Derby party in the cul de sac with wedding gowns worn , music played and glasses of champagne shared albeit 6 feet apart. It’s playing ping pong in your driveway and having neighbors humorously “chirp” while skateboarding by with their two young girls. It’s passing by a neighbor on your morning walk who invests as much into caring for her gorgeous gardens as she does for those around her and you immediately smile because she just has that affect on everyone.
It’s that same neighbor who back in 2003 when you moved back “home “ again , was the first one at your door with flowers from her garden and an open invitation to “come on over “ with your 6 month old red head “anytime “ because her “door is always open. “. It’s the open hearts of neighbors like this one and those described above that make me stronger , happier and more optimistic because i know we are truly “in it together. “. ??
Will Home Values Appreciate or Depreciate in 2020?
With the housing market staggered to some degree by the health crisis the country is currently facing, some potential purchasers are questioning whether home values will be impacted. The price of any item is determined by supply as well as the market’s demand for that item.
Each month the National Association of Realtors (NAR) surveys “over 50,000 real estate practitioners about their expectations for home sales, prices and market conditions” for the REALTORS Confidence Index.
Their latest edition sheds some light on the relationship between seller traffic (supply) and buyer traffic (demand) during this pandemic.
Buyer Demand
The map below was created after asking the question: “How would you rate buyer traffic in your area?”The darker the blue, the stronger the demand for homes is in that area. The survey shows that in 34 of the 50 U.S. states, buyer demand is now ‘strong’ and 16 of the 50 states have a ‘stable’ demand.
Seller Supply
The index also asks: “How would you rate seller traffic in your area?”As the map above indicates, 46 states and Washington, D.C. reported ‘weak’ seller traffic, 3 states reported ‘stable’ seller traffic, and 1 state reported ‘strong’ seller traffic. This means there are far fewer homes on the market than what is needed to satisfy the needs of buyers looking for homes right now.
With demand still stronger than supply, home values should not depreciate.
What are the experts saying?
Here are the thoughts of three industry experts on the subject:
“We note that inventory as a percent of households sits at the lowest level ever, something we believe will limit the overall degree of home price pressure through the year.”
“Two forces prevent a collapse in house prices. First, as we indicated in our earlier research report, U.S. housing markets face a large supply deficit. Second, population growth and pent up household formations provide a tailwind to housing demand.”
Bottom Line
Looking at these maps and listening to the experts, it seems that prices will remain stable throughout 2020. If you’re thinking about listing your home, let’s connect to discuss how you can capitalize on the somewhat surprising demand in the market now.
Why Home Equity Is a Bright Spark in the Housing Market
Given how we have seen more unemployment claims than ever before over the past several weeks, fear is spreading widely. Some good news, however, shows that more than 4 million initial unemployment filers have likely already found a new job, especially as industries such as health care, food and grocery stores, retail, delivery, and more increase their employment opportunities. Breaking down what unemployment means for homeownership, and understanding the significant equity Americans hold today, are important parts of seeing the picture clearly when sorting through this uncertainty.
One of the biggest questions right now is whether this historic unemployment rate will initiate a new surge of foreclosures in the market. It’s a very real fear. Despite the staggering number of claims, there are actually many reasons why we won’t see a significant number of foreclosures like we did during the housing crash twelve years ago. The amount of equity homeowners have today is a leading differentiator in the current market.
Today, according to John Burns Consulting, 58.7% of homes in the U.S. have at least 60% equity. That number is drastically different than it was in 2008 when the housing bubble burst. The last recession was painful, and when prices dipped, many found themselves owing more on their mortgage than what their homes were worth. Homeowners simply walked away at that point. Now, 42.1% of all homes in this country are mortgage-free, meaning they’re owned free and clear. Those homes are not at risk for foreclosure (see graph below): In addition, CoreLogic notes the average equity mortgaged homes have today is $177,000. That’s a significant amount that homeowners won’t be stepping away from, even in today’s economy (see chart below):In essence, the amount of equity homeowners have today positions them to be in a much better place than they were in 2008.
Bottom Line
The fear and uncertainty we feel right now are very real, and this is not going to be easy. We can, however, see strength in our current market through homeowner equity that has not been there in the past. That may be a bright spark to help us make it through.
Tomorrow, the unemployment rate for April 2020 will be released by the U.S. Bureau of Labor Statistics. It will hit a peak this country has never seen before, with data representing real families and lives affected by this economic slowdown. The numbers will alarm us. There will be headlines and doomsday scenarios in the media. There is hope, though, that as businesses reopen, most people will become employed again soon.
Last month’s report indicated we initially lost over 700,000 jobs in this country, and the unemployment rate quickly rose to 4.4%. With the release of the new data, that number will climb even higher. Experts forecast this report will show somewhere between a 15% – 20% national unemployment rate, and some anticipate that number to be even greater (see graph below):
What’s happened over the last several weeks?
Here’s a breakdown of this spring’s weekly unemployment filings:The good news shown here indicates the number of additional unemployment claims has decreased week over week since the beginning of April. Carlos Rodriguez, CEO of Automatic Data Processing (ADP) says based on what he’s seeing:
“It’s possible that companies are already anticipating some kind of normalization, opening in certain states and starting to post jobs.”
He goes on to say that this doesn’t mean all companies are hiring, but it could mean they are at the point where they’re not cutting jobs anymore. Let’s hope this trend continues.
What will the future bring?
Most experts predict that while unemployment is high right now, it won’t be that way for long. The length of unemployment during this crisis is projected to be significantly shorter than the duration seen in the Great Recession and the Great Depression.While forecasts may be high, the numbers are trending down and the length of time isn’t expected to last forever.
Bottom Line
Don’t let the headlines rattle you. There’s hope coming as we start to safely reopen businesses throughout the country. Unemployment affects our families, our businesses, and our country. Our job is to rally around those impacted and do our part to support them through this time.
I hope you and your family are doing well in these challenging times. With many of us staying home, I wanted to share some ideas to stay entertained while social distancing. You’ll also find tips for selling your home during this crisis and some home projects you can cross off your to-do list.
30+ Ideas to Stay Entertained While Social Distancing
With schools, offices, and other businesses closed, most of us are spending more time at home with our families. If you’ve been looking for ways to keep busy, look no further. These boredom busters are a great way to bring the family together while keeping the mind and body busy.
For Kids
Have a costume party.
Put on a fashion show.
Learn a TikTok dance.
Learn calligraphy or cursive writing.
Teach your pet a new trick (with adult supervision).
Customize your toys with model paint.
Call or video chat friends and family.
Cover the fridge with art.
Make your own ice cream.
Learn how to do a cartwheel or handstand.
Build a blanket fort.
For Adults
Learn a new craft: macramé, knitting, drawing
Find a new podcast.
Tidy up the yard.
Learn a new card game.
Create a photo album or scrapbook.
Wash the bedding and curtains.
Bake some cookies.
Try a new cocktail.
Learn latte art.
Try gardening.
Clean out your inbox.
Invent a board game.
Grill out.
For Everyone
Play charades.
Organize the shed or garage.
Learn a foreign language.
Turn a chore into a game.
Binge-watch a movie series.
Turn a meal into DIY charcuterie boards or a picnic.
Create a scavenger hunt.
Go on a nature walk.
Write a story.
Go camping in the backyard.
3 Tips for Selling a Home During the Coronavirus Crisis
Selling a home is always stressful, even more so with everything else going on in the world today. Many are choosing to wait until things return to normal to sell their homes, but other people don’t have a choice. If you need to access your home’s equity to get you through these times, if you recently inherited a home you don’t plan to keep, or if you need to downsize or upsize, you may find these tips for selling during the coronavirus crisis helpful.
Price to sell.
The coronavirus crisis is impacting home values across the country, but the effect is temporary. List your home to sell, but don’t set the asking price too far below what you would have listed it for before the crisis began.
Add a coronavirus contingency.
Buyers may have trouble coming out to view your home or finding inspectors and appraisers to assess the current condition of the house. Adding a coronavirus contingency clause to your contract that allows buyers to postpone the closing if coronavirus derails the process can make your listing more attractive.
Make the most of the listing photos.
Make sure your home puts its best foot forward by making basic repairs and taking time to do some basic staging. Simple repairs and upgrades like replacing torn window screens and adding a fresh coat of paint can make your listing more appealing. Likewise, tidying and decluttering your home before the listing photos are taken can make your home seem more spacious.
3 Home Projects to Tackle While Social Distancing
Are you running out of productive things to do at home? These five spring cleaning projects go beyond cleaning out the junk drawer!
Change up your living space.
Tired of the same wall color? Paint it! Want to look at something new? Try switching your wall decorations from a different room and use them in your main living space. Got a lot of unused wall space? Create a gallery of photos, drawings, images, and things that make you happy. Rearranging the furniture in your living space will also create a new atmosphere you can enjoy.
Deep clean the kitchen.
If you haven’t had the chance to deep clean the kitchen, now’s a good time to start. Take everything out of the cabinets so you can wipe them down inside and out. While everything is out, give your seldom-used dishes and appliances a good cleaning. Don’t forget to sanitize your knife block and clean out the microwave and oven!
Clean the baseboards.
Take some time to clean the baseboards in your home. Some soap and water or a magic eraser will do wonders. Once they’re clean, you can also freshen them up with a fresh coat of paint. You’ll be surprised at what a difference it will make.
As we make our way through these challenging times, know that I’m sending my best wishes to you and yours. Stay safe and feel free to reach out if there’s anything I can help with.
Despite COVID-19, sales prices are up 13% year-over-year. Buyers continue to reach out to me to look at properties with a sense of urgency and I continue to meet with sellers looking to sell now, during the pandemic, and those waiting until after.
My hope for you is that you continue to feel well and that you are making it through this incredibly challenging time as well as possible. Please reach out to me if I can be of any help whatsoever. Click on the link for the full RI real estate market report for March.
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The good news shown here indicates the number of additional unemployment claims has decreased week over week since the beginning of April. Carlos Rodriguez, CEO of Automatic Data Processing (ADP) says based on what he’s seeing:
While forecasts may be high, the numbers are trending down and the length of time isn’t expected to last forever.
