Uncategorized October 12, 2021

What Do Supply and Demand Tell Us About Today’s Housing Market?

What Do Supply and Demand Tell Us About Today’s Housing Market? | MyKCM

There’s a well-known economic theory – the law of supply and demand – that explains what’s happening with prices in the current real estate market. Put simply, when demand for an item is high, prices rise. When the supply of the item increases, prices fall. Of course, when demand is very high and supply is very low, prices can rise significantly.

Understanding the impact both supply and demand have can provide the answers to a few popular questions about today’s housing market:

  • Why are prices rising?
  • Where are prices headed?
  • What does this mean for homebuyers?

Why Are Prices Rising?

According to the latest Home Price Insights report from CoreLogic, home prices have risen 18.1% since this time last year. But what’s driving the increase?

Recent buyer and seller activity data from the National Association of Realtors (NAR) helps answer that question. When we take NAR’s buyer activity data and compare it to the seller traffic during the same timeframe, we can see buyer demand continues to outpace seller activity by a wide margin. In other words, the demand for homes is significantly greater than the current supply that’s available to buy (see maps below):What Do Supply and Demand Tell Us About Today’s Housing Market? | MyKCMThis combination of low supply and high demand is what’s driving home prices up. Bill McBride, author of the Calculated Risk blog, puts it best, saying:

“By some measures, house prices seem high, but the recent price increases make sense from a supply and demand perspective.

Where Are Prices Headed?

The supply of homes for sale will greatly affect where prices head over the coming months. Many experts forecast prices will continue to increase, but they’ll likely appreciate at a slower rate.

Buyers hoping to purchase the home of their dreams may see this as welcome news. In this case, perspective is important: a slight moderation of home prices does not mean prices will depreciate or fall. Price increases may occur at a slower pace, but experts still expect them to rise.

Five major entities that closely follow the real estate market forecast home prices will continue appreciating through 2022 (see graph below):What Do Supply and Demand Tell Us About Today’s Housing Market? | MyKCM

What Does This Mean for Homebuyers?

If you’re waiting to enter the market because you’re expecting prices to drop, you may end up paying more in the long run. Even if price increases occur at a slower rate next year, prices are still projected to rise. That means the home of your dreams will likely cost even more in 2022.

Bottom Line

The truth is, high demand and low supply are what’s driving up home prices in today’s housing market. And while prices may increase at a slower pace in the coming months, experts still expect them to rise. If you’re a potential homebuyer, let’s connect today to discuss what that could mean for you if you wait even longer to buy.

Uncategorized October 9, 2021

Thinking of visiting Providence, RI and wondering what to do?

Fall is the perfect time to come visit Providence, RI. 

Thinking of heading down to PVD? You are in for one great “ride!”

If you are coming down from the north, catching the foliage along 95 can be pretty amazing and as soon as you see the skyline of Providence pop up, I promise you, a smile will emerge. On crisp, fall days, Providence’s beauty is particularly compelling! 

So what should you do on a fall day in Providence, RI? Well, since I was born in PVD, attended college in PVD and work at our beautiful Waterplace Park office in PVD,  I can give you at least two dozen fun ideas but I’ll keep the list streamlined and salient to make it doable for you!

If gorgeous flowers and plants are your jam, I highly recommend that you stop in at the Botanical Center at Roger Williams Park, which is the largest public indoor display garden in New England! They have 2 greenhouses here; The Conservatory and the Mediterranean Room which have over 150 different kinds of plants including cacti, palms and aloes. 

If kids are in tow, then proceed directly to the adjacent Roger Willimas Park  Zoo! It’s one of the oldest zoos in the US and home to over 100 rare and amazing animals from habitats found in Africa, Australia, South America and the Tropics. If you are brave enough, come at dusk (Starting Sept 30 until October 31st) and walk through the nationally acclaimed Jack-O-Lantern Spectacular! This year’s theme is a musical one so prepare to be truly blown away by a display of thousands of intricately carved pumpkins while you bust a move to tunes from the 1860s to today!

Care to head to Downtown Providence, RI?

I highly recommend dining up on Federal Hill, now with “al fresco on the Hill” available. On Fridays and Saturdays from 5-11pm, they offer expanded outdoor seating into the street!  More than 20 delicious restaurants are taking part and reservations are suggested. Some of my faves on the Hill include: Angelos Civita Farnese Restaurant, Cassarinos, and  Il Massimo; all of whom are participating in the al fresco offering!

Since you are in the Ocean State why not set aside time for a kayak adventure on the Providence River! At Providence Kayak you can explore urban Providence one ” row” at a time as you paddle under the beautiful bridges and take in the stunning beauty along the river’s edge in hip, happening downtown Providence! Take a glance upward when you hit the Exchange Street bridge and see my office at the bottom of stunning Waterplace Park!

IF your travels have you in Providence on a Saturday be SURE to take in Waterfire. It is an absolutely amazing experience. Gondolas with torches traverse the river with music, lights and revelry filling the air. Waterfire Providence was created with the hope of revitalizing the urban experience by fostering community engagement and creatively transforming the city. It does so in one very enriching, meaningful way. Be sure to check the website https://www.waterfire.org for the latest lighting schedule.

 

Finally, I highly suggest some walkabout tours. They can be self-led and I would suggest doing so in areas such as Fox Point, Benefit St and then down by Blackstone Boulevard. Grab a slice of ‘Za at Felinis Pizza -( my all-time fave) as you stroll around the outskirts of my alma mater; Brown U. Grab a cone at “Like No Udder” in Fox Point as you admire the gorgeous historic homes tucked away off cobblestone alleys with a truly eclectic mix of architecture. Care for a brew? Head down to the Narragansett Brewery and check out all the water activity at India Point Park and while at Narragansett Brewery be sure to greet others with a “Hi, Neighbor.” Trust me – you’ll feel just like a Rhody local!

 

Uncategorized September 23, 2021

Two Reasons Why Waiting a Year To Buy Could Cost You

Two Reasons Why Waiting a Year To Buy Could Cost You | MyKCM

If you’re a renter with a desire to become a homeowner, or a homeowner who’s decided your current house no longer fits your needs, you may be hoping that waiting a year might mean better market conditions to purchase a home.

To determine if you should buy now or wait, you need to ask yourself two simple questions:

  1. What will home prices be like in 2022?
  2. Where will mortgage rates be by the end of 2022?

Let’s shed some light on the answers to both of these questions.

What will home prices be like in 2022?

Three major housing industry entities project continued home price appreciation for 2022. Here are their forecasts:

Using the average of the three projections (6.27%), a home that sells for $350,000 today would be valued at $371,945 by the end of next year. That means, if you delay, it could cost you more. As a prospective buyer, you could pay an additional $21,945 if you wait.

Where will mortgage rates be by the end of 2022?

Today, the 30-year fixed mortgage rate is hovering near historic lows. However, most experts believe rates will rise as the economy continues to recover. Here are the forecasts for the fourth quarter of 2022 by the three major entities mentioned above:

That averages out to 3.7% if you include all three forecasts, and it’s nearly a full percentage point higher than today’s rates. Any increase in mortgage rates will increase your cost.

What does it mean for you if both home values and mortgage rates rise?

You’ll pay more in mortgage payments each month if both variables increase. Let’s assume you purchase a $350,000 home this year with a 30-year fixed-rate loan at 2.86% after making a 10% down payment. According to the mortgage calculator from Smart Asset, your monthly mortgage payment (including principal and interest payments, and estimated home insurance, taxes in your area, and other fees) would be approximately $1,899.

That same home could cost $371,945 by the end of 2022, and the mortgage rate could be 3.7% (based on the industry forecasts mentioned above). Your monthly mortgage payment, after putting down 10%, would increase to $2,166.Two Reasons Why Waiting a Year To Buy Could Cost You | MyKCM

The difference in your monthly mortgage payment would be $267. That’s $3,204 more per year and $96,120 over the life of the loan.

If you consider that purchasing now will also let you take advantage of the equity you’ll build up over the next calendar year, which is approximately $22,000 for a house with a similar value, then the total net worth increase you could gain from buying this year is over $118,000.

Bottom Line

When asking if you should buy a home, you probably think of the non-financial benefits of owning a home as a driving motivator. When asking when to buy, the financial benefits make it clear that doing so now is much more advantageous than waiting until next year. This is especially true right now in RI where prices are moderating somewhat and the bidding war frenzy is subsiding. Buyer’s lately have faced less competition and an ever-increasing inventory to choose from.  Factor in current low rates and it’s a win-win-win for buyers!

Uncategorized September 21, 2021

Becoming a Local Leader via Parkbench has been the best decision I have made in a long time. Here is my interview!

Becoming a Local Leader in RI!

 

Click here to watch my interview!

 

Meet Sarah!

 

Sarah is a real estate professional with Mott & Chace Sotheby’s International Realty. She is the local market expert and community leader for the areas in and around Barrington Rhode Island. 

 

Sarah is also one of the authors in the new real estate business book, Becoming a Local LeaderⓇ, that features 22 top producing agents who are sharing their story and their strategies on how to grow one’s business through relationships and referrals. 

 

What’s really cool about the book is you get a glimpse of the mindset behind a local leader and a person who wants and who is and becomes a go-to local RealtorⓇ, someone who people go to for things. What’s the mindset of those people? 

 

The one thing I find ties all of these agents’ stories together is that they all give back to their community. They give value to the people who live and work in their community before they talk about business, before they ask a person if and when they’re selling. That really is a big principle that I see a lot of top agents have is that they give value first. They focus on being the leader of their community and the business kind of takes care of itself. 

 

That’s what we’re going to talk about with our guest, Sarah Huard. 

 

On a high level, let’s just talk to the agents and summarize the main message that you hope when people read your chapter they get and that they can apply to their business and their life.

 

For me, the main message in how I approach real estate has always been my clients first. It’s a rigorous profession. It’s challenging. I think if you keep your client’s best interests always first and foremost, then you’re going to maintain and sustain a love of the job. 

 

It’s not easy and it’s stressful, but at the end of the day you’re doing it for your clients. And for me, that’s the be all and end all. Providing value to them in every way possible always has you looking to grow and to get better and to fortify my client relationships through the greater knowledge base that I therefore can provide. For me, my whole business rests on the pillars of my strong relationships with my clients.

 

There are two things that you said that I agree with. Clients first and maintaining the love for the job, which shows it’s not just something that just happens. It is something that requires attention and effort. So, let’s talk about the clients first thing because I think a lot of agents would say that, but then we have seen a huge failure rate in the industry. It’s probably because they don’t do the right things. So, when you think about things that you do and that agents do that demonstrate that their clients are first, and things that you’ve noticed other agents do or don’t do that show that their client isn’t first and that has a negative effect in their business. Talk more about that principle.

 

I think it’s always going above and beyond what is expected. It’s about exceeding client expectations through a delivery of an unparalleled level of service. And if you hold the bar very high, as far as what you want to achieve with each client and work daily at connecting with your clients, seeing what they need then your practice truly is the definition of client-based and client- focused.  

 

I have clients who I text with and others with whom I direct message and those who prefer the phone. I curate my knowledge delivery based on  whatever means by which they prefer to interact and then I am steadfast and relentless with it. I’m a big fan of direct mail. I send letters to my sphere four times a year. I’ve done it since I started. They love it. I also  send custom emails out every month that take hours to create and are rich in market insights and items of interest for the different communities which I serve.. 

 

Offering valuable information on the macro level, what’s happening in our regional and national markets as well as the micro-level is critical. That has to be consistent because you have to stay top of mind with your clients. The goal is to get from “know” status via online presence to “like” via favorable branding and then ultimately to the “trust” level. How do they get to trust? They trust you when you’re sharing your knowledge and expertise with them on a consistent basis. Once they trust you, they’re going to seek you out, they’re going to refer you out. But that takes daily diligence. Every day I’m reaching out to as many of my clients as I can, as well as keeping up with every transaction. 

 

Right now, I have eight different transactions going. So, how does one maintain that level of communication? It’s being super organized, having spreadsheets with who’s where and what’s ahead for them. It’s constantly providing information so that each transaction is smooth, but also continually reaching out to those you’ve already served by providing them helpful information, such as sending them a CMA. Informing them about an updated valuation on their previous purchase is a means of staying top of mind by providing value.  Or proactively sending out a list of your trusted suppliers to all of your clients; just in case they made “need a guy.”  Anything you can do to provide value, for me, is what makes me love my job because in essence, I am proving to my clients that I care about them.

Yes, real estate is about a house. But it’s always about my people, and my people are my clients.

 

That was amazing. The one thing I find with so many agents’ systems, so you have systems and organizations so that you can be frequent, so you can be consistent, so you have these daily routines and habits. I think agents really need to look at their systems to see if that’s helping them be clients first. And the second thing that you really touched on is this mindset of, “I’m going to be proactive. I’m going to wake up every day and think to myself, how do I connect with my client? How can I give value to my client? What can I share with my client, with my database?” That is awesome advice. 

 

Now, the second thing you talked about was maintaining the love for the job. So, I would love it if we talk about some moments when you fell out of love for the job, and what are some of the things that you do to maintain the love for the job? Because it’s not something that people can just expect to happen. I think it’s something that people have to work at.

 

Right. Yeah. I think keeping your eye on the long term. I think where agents fail is they’re looking for a quick fix. They’re looking for, “I’m just going to buy leads.” “I’m just going to throw an ad out there, and then I’m going to get business.” And then, perhaps you do get business but it’s confined to that one period of time where you need to constantly feed your pipeline through nurturing leads so that you don’t hit the dry spells. 

 

The hardest times for me have been perhaps when I’ve tried something and it hasn’t worked. I think I’ve attempted one ad. And then, everything else for me has always been referral-based. But maintaining the love of the profession is hard when things kind of irrelevant to the clients tend to take precedence. 

 

It could be you’re dealing with a difficult co-broke. That happens. How do you handle that so that you don’t get weighed down by it and you keep your client’s interest top of mind? That’s what you focus on.. It’s unfortunate but it happens. Luckily, others find I’m easy to work with and I think a large reason for that is my approach to agency. I’m a true believer in getting to yes. So, for me, if someone wants to be alpha, that’s fine. I never back down as far as my clients are concerned, but I can be very flexible, easy to negotiate with. 

 

I think you have to keep that in mind because it’s a tough business. You need thick skin. In the beginning, I did not have thick skin. I took everything to heart. You’re going to get a client who says, “Please stop sending me your mailings.” Or maybe you get a negative comment on social media. If you get a lot of that, it can break you down a bit. Luckily, I haven’t. But those first few, it’s there. And so, it’s, “Okay. This is a business. I’m going to get that. Not everyone’s going to like you, which is fine. But let’s focus on those people that I am attracting and how can I serve them better?” 

 

I think that that keeps an even keel because it’s such an up and down industry that if you’re not level headed and just keep your eye on slow and steady wins the race type of approach, it can lead to failure, it can lead to burnout. I want to do this for as long as I can. And so, I approach each day kind of with that mindset.

 

Some of the things that you said that just remind me of some of the things I’ve been taught in my business was when you’re dealing with people, matching and mirroring is one way to build rapport, but also, pacing and leading, which is, whatever you give off, is likely going to be received by the other party, and they’re going to start mirroring you. So, if you want to have good dealings with other people, you need to lead and be that calm, confident, easygoing, down to earth, positive, friendly person. 

 

If you lead that way, you’ll end up having more conversations because we all know real estate has some big personalities. That can be a good thing but how do you deal with them in the business? The other thing that I’m reminded of is, when people lack action or lack motivation to do the work, I find there might be something to do with the vision. You talk about long term goals. Like, where am I going? Not what I’m going through. Where am I going? Why am I doing this? Remind yourself of that vision, of that long term, can allow you to kind of get through some of the tougher days. 

 

Well, we haven’t even really given people a background of who you are. So, why don’t we kind of step back for a sec? Help everyone get to know who Sarah is and how did you get into real estate and why do you love it?

 

Sure. I was born and raised in Rhode Island. I went all the way to Brown University, so I didn’t go far. I did leave Rhode Island. Many don’t. I did. I went to Boston. I got my masters in Cambridge. I was a teacher for a while in Brookline Mass. I’ve always been drawn to helping people. Even when I was a little kid, I had elderly neighbors and I used to go there after school and do puzzles and check in with them. I’ve always loved helping. Year after Brown, I did a year of community service where I just worked for a year in Providence, trying to support communities that deserved it. And that led to my teaching career. It’s that love of helping people. I had some, you know, serious health issues along the way starting when I was at Brown. And so, that kind of curtailed my teaching career. Brought me back home to Rhode Island because doctors in Boston thought I would need long term help. So, I volunteered while I was dealing with medical issues. I dove in big with Save A Lab Rescue. And then, I still battle chronic health issues but I was able to slide it to the backburner. 

 

I’ve always loved people. I love Rhode Island. I love real estate. So, a good friend stopped me one day on the road and she said, “You need to be a RealtorⓇ.” And I thought, “Oh, I don’t know. It can be so negative.” And she said, “That’s why you need to enter real estate.” And so, I took that as a challenge. I said, okay. So, I dove all in. I absolutely love it. I work all over Rhode Island. I do a lot in the East Bay Area of Rhode Island but because of my Brown connection, I do a lot in Providence. And then, because I’ve lived in all the beach areas, I do a lot in the coastal communities. For me, it’s like being a conduit of helping. I feel with real estate, you’re a daily conduit towards helping people. I know I’ll never not love it because I’m helping. I’ve made it through a bunch of very challenging health issues and I feel like the reason why I’ve made it through is so that I’m still here to help people. 

 

I just love Parkbench and real estate. Between those two, it fuels the fire daily. How can I help more people today? My favorite hashtag is from City Year’s #MakeBetterHappen. I try to do that daily. A lot of that innate gratitude comes from where I’ve been health-wise. I’m just grateful to still be here.

 

For those of you reading, you know those stories that make you realize that you’re sweating some small stuff and you need to get over it and be motivated and inspired by what other people have been able to do. That’s Sarah Huard’s story. You guys have to pick up her chapter to read more about what she’s gone through in her life and how she’s been able to maintain (1) such a positive demeanor, and (2) have success because of that positive, grateful appreciative demeanor. And we all have to as people tap into that because that’s what attracts people. People love to work with people who are positive and grateful and appreciative because it makes us more of that in our lives. I can guess why people like working with you. 

 

One thing that you talked on that I kind of want to tap into is your focus in your business. What are your recommendations to agents when they’re trying to think about, “Okay, I’m in real estate. Who’s my target clientele? Where should I focus? Should I work in my backyard or should I not?” And you talked about because of these connections that you’ve had, you’ve tapped into that for your career. Everyone’s different. I think every agent’s potential is that, “Hey, you were a teacher. You went to Brown. You’re from here.” Another agent got a totally different backstory. That doesn’t mean they should try to take business from you or try to go after the same stuff you’re going for. They should go after what works for them, what aligns with them. What advice do you have for agents who are trying to figure out their focus and their specialty and who they should go after?

 

I think niching is very important. And for some, they’re hyperlocal. That works for them. I truly go back to what is your authentic self? Who do you want to best serve? Usually, your spheres will come somewhat naturally. I automatically get leads or get people who reach out to me from my past networks, my past living scenarios. That comes naturally. The teacher in me loves to work where I can be of the best value to my clients. I’m not going to dip my toe in the water of an area that I don’t feel like I know frontwards, backwards, sideways. 

 

I’m lucky because in Rhode Island we are so small. I’ve lived all over the state that I do know most areas. But if someone says to me, “Hey, can you list my house at 123 Main Street in this zip code?” I’ll say I’m the first to refer it out and say I’m not your gal but here she is. I do that frequently. With that being said, I think some people go after a price point. I’ve never been that type of agent. I’ve created my business according to who I am and kind of branded myself as I feel most natural and that comes most naturally to me. I’ve been lucky that people are attracted to it. And alongside that I’m fortunate that I can tap into various regions in Rhode Island. 

 

To answer your question, I say go for what resonates most for you. Every agent is different. Some agents won’t leave a certain zip code. They’re rock stars. I never want to be defined by one area because I feel like I can serve people in so many different areas. It comes down to how are you going to best serve the client? Are you qualified for that area? If so, go for it. 

 

What have you tried in growing your business that’s not worked for you? Why do you think it didn’t?

 

I’ve tried ads a few times. They never worked for me. I wasn’t consistent with them. I tried Facebook ads a couple of times. I tried Zillow in the beginning when I was a new agent, I think for like a month. That didn’t work for me because it didn’t feel natural to me. I’m not a cold caller. I never tried cold calling. I’m not a door knocker. But I’d say, I’m lucky. I started out with an approach that felt good to me. This chapter too is what I like to call it of my life. I’m lucky to have it. How do I want to have real estate play out? I wasn’t going to do it any other way that I truly loved because I knew it was such a difficult industry. I didn’t know in the beginning if my approach would work, but I knew I’d be happy trying it and I was going to shoot for the stars to make it happen. 

 

My approach has always been building relationships. Direct mail is how I started. I would handwrite and hand stuff all those envelopes. I was dedicated to doing it and consistent. So, for me, it’s always been relationship-based, I get a lot of referrals. Other folks rocket on Zillow and Premier Agent. So, it’s kind of whatever feels best for you, I’d say go for it and try. Don’t quit. You have to be in front of someone’s face, at least seven to 12 times before they even think of reaching out to you. I think it’s the one hit wonders where one week you’re going to pay someone to help you on Instagram, the next week, you’re going to try YouTube, you’re going to be a master of YouTube. It’s kind of that scatterbrain approach. It’s just too difficult. Find your channel. Find your systems, and then just filter, tweak and be consistent about them.

 

One of the things that happened for people who are thinking about doing Parkbench in the area or who get started, they go, “Oh my goodness. I have to reach out to these people in the community. And they had these bad experiences of cold calling” because you’re like, I don’t like cold calling, yet you have no problem reaching out to people in your community to connect with them and do this neighborhood platform and community marketing.” What would you say to that person who sees it as cold calling? What’s your experience?

 

It doesn’t have to be cold calling. Again, I’m so relationship-based that immediately when I aligned with Parkbench I thought, “Okay. Which small businesses do I already have a relationship with? Which small businesses would I like to form a relationship with? And then, how can I have them trust me so that they’re willing to give this a shot?” 

 

Many of them knew me so that helped, but I’ve had some that I’ve approached. I’ve gone into the business place now that COVID restrictions are down. I’ll walk in because it happens to be a place that I frequent already. And as soon as they hear about Parkbench and that I’m here to support them, there’s no charge to them. They’re kind of incredulous. Like, “Wait. What?” And then I’ll explain it and I’ll say, “Check it out.” And as soon as they see it, I haven’t had anyone say no yet. I’ve had only pandemic issues related to people being short-staffed. It’s a struggle to find time even for 20 minutes which is fine. I just tell them, “When you have time, reach out to me.” 

 

I connect with some people on Instagram messenger, Facebook Messenger. Some will text. Some it’s old-fashioned email. Some prefer I call them. It doesn’t have to be cold calling. And truthfully, again, I would go to those spots that you have a connection with or whom you feel you can really give a leg up to. There’s a business in town. He’s got no social media presence whatsoever. And he was the first one on my list. It’s, “Okay. I’m going to give this guy a leg up.” And I can’t wait to interview him because he doesn’t have a website. He’s working on one. He’s got a phenomenal little restaurant that people will text me about and say, “Hey, what do you know about this spot?” Because once people see you as a local expert or someone who loves helping the community, they’re going to reach out to you. And now I have several businesses reaching out to me saying, “I love seeing your videos. How can I get interviewed?” The local Chamber of Commerce loves it because you’re supporting businesses that make our communities better. And who doesn’t want to live in a community that’s more engaged. It’s led to some great things. Our town is now going to do some first Thursdays, which we’ve never done before. But you know, by going around interviewing businesses, the wheel starts spinning. Okay, what else can our community do? This is kind of the ripple effect. It starts to create a very positive momentum. I love being a part of it. But I would say for sure, seek out the businesses that (a) you feel like you could really help or (b) you already frequent, you already know.

 

That’s great advice. The one thing you wrote in your chapter, which kind of speaks to people who have roadblocks around taking the action that will help them build relationships and do this community building. There are so many new agents out there who are just trying to get started in the business and are like, “Oh, my God. I have so much to learn.” And in your book, you wrote, “If I had to start my business over, I would change a few things to be sure. I wouldn’t worry so much about knowing everything and everything about real estate. I wouldn’t overanalyze my preparation. I would, as a famous brand of runner states, just do it.” What did you mean by that if you were speaking to some new agents out there?

 

I remember as soon as I got my license it was like I was preparing for a final exam. I’m old fashioned in that I had the good old college rule. I was writing down notes. I had a whole notebook filled with how I was going to approach real estate. Truthfully, it is a little bit of throwing spaghetti to the wall. Yes, you have to be prepared as far as knowing the numbers, knowing your market stats inside, outside, backwards, so that if someone stops you in the supermarket and says, “What’s the local listing price?” or whatever they asked, you know it. When someone invites you into their house, you already have a basis of pricing range because you’ve studied the market so hard. 

 

But when you first begin, you kind of just have to get out there and do it. You’re going to make mistakes. I would say, definitely find someone in your office you can ask questions to. I have an amazing manager. He’s a broker manager. And from day one, if I have a question, I know I can text him or call him. I’ve never been embarrassed. I’m like, this question is so bad. He’s always there to answer. I would say, prepare enough so that you feel comfortable and confident. But then, try not to sweat it. You’re not going to know everything. Just go out there and be your best self. Have someone you can turn to. Having a mentor, perhaps there’s an agent, a seasoned agent who’s willing to take you on, go with him or her to an open house. Go to a listing presentation because those are daunting in the beginning. Learn from them. And then, you’ll formulate your own way of doing things. But at least you’re opening your eyes to how it’s done through some different lenses. But yeah, it’s hard in the beginning. And yeah, my mistake was I spent way too much time feeling like I had to know everything about everything in real estate. And truthfully, you just need to go out there and get your first sale. And then, lean on people hard for support. With each one, it gets easier and easier.

 

Well, one thing that you mentioned is many RealtorsⓇ have seemingly lost the art of connection. I feel like this book is going to help people get back to that because it seems to me like that’s a key to success in real estate. If we were to summarize, if you were to say, “Hey, why should an agent read this book and read the stories of all these agents becoming a local leader, connecting with their community, and building a business on relationships and referrals?” Why do you think agents should give it a read?

 

I think agents should read it because we all learn from each other. I’m in a bunch of different networking groups. One is a ninja group monthly with Sotheby’s agents from all over. I’m on a gazillion Facebook groups. I’m active in those groups. Why am I active? Because none of us have time, but I’m learning. When I hear about someone going through an inspection that went horribly wrong and how she resolved the issues, I’m gaining that information. So, you know, God forbid, I have a similar situation. I at least have a foundation of knowledge to kind of learn from. We learn from each other. I feel like 99% of the time, your agents are going to want to learn from you just as they’re going to want to share information with you. 

 

We’re all professionals. No one is error-free. It’s a very helpful group. When someone sees you as not a threat but is someone who genuinely cares about them and is looking to them for their input because you respect them. All the time, I’ll communicate with agents of other brokerages and ask them about things and vice versa. The agents will call me if they’re struggling with pricing a house. They’re not from my firm but they know that I’m eager to share what I know with them. So, in this book, it comes down to learning from different agents. You’re going to pick up pieces from one agent that you love, and then perhaps incorporate that into your own business. That’s why I listen to podcasts every day. You pick up little pieces that you then thread into your own kind of fabric of how you want to practice real estate. 

 

I love the idea of the book because I thought if I can help people be better, then sign me up. Because we all need each other. It’s a very, very challenging profession. But there are so many good people who want to share their expertise with you. That’s what keeps you inspired and motivated and prevents burnout. So, definitely pick up the book and read about how everyone approaches the same industry through different lenses.

 

We are interviewing all the authors. And so, you’ll learn a lot. This is not even in the book. It’s from these interviews. And with Sarah’s chapter, yes, you’re going to get some strategies of things that you can do that she’s been doing that you can do in your market. But something that I really felt came out of your chapter was the mindset of a RealtorⓇ who builds a business on relationships and referrals, the mindset of a person who is a leader of their community. 

 

Business just like sports is more mental and spiritual than it is strategies and tactics. You need both but how you approach business and life is so important for your success. You’re definitely going to learn that with Sarah’s story. How can agents get in contact with you? If they want to get to know you more, they want to learn from you, they want to refer to your business, how can they reach out?

 

Websites — https://www.sarahhuard.com

https://www.facebook.com/SarahHuardRealEstate

https://www.parkbench.com/barrington-ri

 

Uncategorized September 16, 2021

5 Reasons Today’s Housing Market Is Anything but Normal

5 Reasons Today's Housing Market Is Anything but Normal | MyKCM

There are many headlines out there that claim we’re reverting to a more normal real estate market. That would indicate the housing market is returning to the pre-pandemic numbers we saw from 2015-2019. But that’s not happening. The market is still extremely vibrant as demand is still strong even while housing supply is slowly returning.

Here’s the definition of normal from the Merriam-Webster Dictionary:

“conforming to a type, standard, or regular pattern: characterized by that which is considered usual, typical, or routine.

Using this definition, here are five housing industry metrics that prove we’re nowhere near normal.

1. Mortgage Rates

If we look at the 30-year mortgage rate chronicled by Freddie Mac, we can see the average rates by decade:

  • 1970s: 8.86%
  • 1980s: 12.7%
  • 1990s: 8.12%
  • 2000s: 6.29%
  • 2010s: 4.09%

Today, the average mortgage rate stands at 2.87%, which is very close to the historic low.

Currently, mortgage rates are anything but usual, typical, or routine.

2. Home Price Appreciation

According to Black Knight, a housing data and analytics company, the average annual appreciation on residential real estate prices since 1995 has been 4.14%.

According to the latest forecast from the National Association of Realtors (NAR), home price appreciation will hit 14.1% this year, which will be greater than any year since Black Knight began collecting this data.

Currently, home price appreciation is anything but usual, typical, or routine.

3. Months’ Supply of Inventory (Homes for Sale)

According to NAR:

“Months’ supply refers to the number of months it would take for the current inventory of homes on the market to sell given the current sales pace. Historically, six months of supply is associated with moderate price appreciation, and a lower level of months’ supply tends to push prices up more rapidly.”

As of the latest Existing Homes Sales Report from NAR, the current months’ supply of inventory stands at 2.6. That’s less than half of a normal supply.

Currently, the supply of homes for sale is anything but usual, typical, or routine.

4. Days It Takes To Sell a Home

The days-on-market metric gives an indication of how hot a market is and how quickly homes are selling. In 2019, prior to the pandemic, the average days on market stood at 35, according to NAR. Today, that number is cut in half and is now at 17 days.

Currently, the days-on-market metric is anything but usual, typical, or routine.

5. Number of Offers per Listing

According to NAR, the number of offers per listing stood at 2.2 in 2019. Today, that number is double at 4.5.

Currently, the number of offers per listing is anything but usual, typical, or routine.

Bottom Line

When…

  1. Mortgage rates are near historic lows
  2. Price appreciation is at historic highs
  3. Housing inventory is less than half of the normal amount
  4. The time it takes to sell a home is cut in half, and
  5. There are twice as many offers on each house

…it’s hard to say we’re in a normal market.

Do you have questions about our RI and MA market? Wondering how current market conditions can affect a potential sale of your home? Reach out to me. I am here to help! Providing value to my clients via sharing my knowledge of the market and our local market conditions and how they pertain to your real estate desires is what I am here for.

Uncategorized September 9, 2021

Home Price Appreciation Is Skyrocketing in 2021. What About 2022?

Home Price Appreciation Is Skyrocketing in 2021. What About 2022? | MyKCM

If my recent seller activity here in RI and MA  is any indication of overall selling intentions, then I would say that the belief that appreciation will continue to benefit sellers is VERY strong. More and more sellers are lining up to list this fall, with the intention of maximizing on the incredible appreciation rate serving to fuel the drive! 

One of the major story lines over the last year is how well the residential real estate market performed. One key metric in the spotlight is home price appreciation. According to the latest indices, home prices are skyrocketing this year.

Here are the latest percentages showing the year-over-year increase in home price appreciation:

The dramatic increases are seen at every price point and in all regions of the country.

Increases Are Across Every Price Point

According to the latest Home Price Index from CoreLogic, each price range is seeing at least a 19% increase year-over-year:Home Price Appreciation Is Skyrocketing in 2021. What About 2022? | MyKCM

Increases Are Across Every Region in the Country

Every region in the country is experiencing at least a 14.9% increase in home price appreciation, according to the Federal Housing Finance Agency (FHFA):Home Price Appreciation Is Skyrocketing in 2021. What About 2022? | MyKCM

Increases Are Across Each of the Top 20 Metros in the Country

According to the U.S. National Home Price Index from S&P Case-Shiller, every major metro is seeing at least a 13.3% growth in prices (see graph below):Home Price Appreciation Is Skyrocketing in 2021. What About 2022? | MyKCM

What About Price Appreciation in 2022?

Prices are the result of the balance between supply and demand. The demand for single-family homes has been strong over the last 18 months. The supply of houses available for sale was near historic lows. However, there’s some good news on the supply side. Realtor.com reports:

“432,000 new listings hit the national housing market in August, an increase of 18,000 over last year.”

There will, however, still be a shortage of supply compared to demand in 2022. CoreLogic reveals:

“Given the widespread demand and considering the number of standalone homes built during the past decade, the single-family market is estimated to be undersupplied by 4.35 million units by 2022.”

Yet, most forecasts call for home price appreciation to moderate in 2022. The Home Price Expectation Survey, a survey of over 100 economists, investment strategists, and housing market analysts, calls for a 5.12% appreciation level next year. Here are the 2022 home appreciation forecasts from the four other major entities:

  1. The National Association of Realtors (NAR): 4.4%
  2. The Mortgage Bankers Association (MBA): 8.4%
  3. Fannie Mae: 5.1%
  4. Freddie Mac: 5.3%

Price appreciation is expected to slow in 2022 when compared to the record highs of 2021. However, it is still expected to be greater than the annual average of 4.1% over the last 25 years.

Bottom Line

If you owned a home over the past year, you’ve seen your household wealth grow substantially, and you’ll see another nice boost in 2022. If you’re thinking of buying, consider buying now as prices are forecast to continue increasing through at least next year. Here in RI and Ma, now is an ideal time to sell and a solid time to buy with interest rates still low and intense buyer activity decreasing slightly.  Need help and guidance with  your personal real estate intentions? Reach on out. I am here to help!

Uncategorized August 26, 2021

Out-of-State buyers are adding to the level of compete for local buyers in RI and beyond

The RI real estate market saw a huge jump in the number of buyers from outside the state in the 2nd quarter. This has been a consistent phenomenon since the onset of the pandemic. Purchases by out-of-state buyers from April to June increased a whopping 69% year-over-year. Where are they coming from? Massachusetts, Connecticut and New York are driving in the majority of buyers although we’ve also seen an increase in buyers from California and Florida. Clearly the seacoast vibe and associated lifestyle, the plethora of great restaurants and quaint seaside communities as well as our proximity to Boston and the PVD hip factor are facilitating this heightened love for Little Rhody!

Click on the link below for where the buyers are flocking to on a national level.

 

https://www.realtor.com/news/trends/priced-out-10-hot-spots-where-locals-are-least-likely-to-be-able-to-afford-a-home/

Uncategorized August 25, 2021

Why 2021 is Still the Year to Sell Your House

Home buying intentions are the strongest they have been in 20 years. 75% of sellers feel now is the ideal time to sell a home.  That’s quite a powerful dynamic!  Toss in a very low inventory of homes and escalated prices and one can understand why our current real estate market here in RI and elsewhere is one of very high velocity!

Let’s dive deeper into why it is still a GREAT time to list your home for sale.

 

If you’re trying to decide whether or not to sell your house, this is the time to think seriously about making a move. Fannie Mae’s recent Home Purchase Sentiment Index (HPSI) reveals the number of respondents who say it’s a good time to sell is higher now than it was over the past few summers (see graph below). Today, the majority of consumers, 75 percent, say it’s a good time to sell a house.Why 2021 Is Still the Year To Sell Your House | MyKCM

Why is sellers sentiment up year-over-year?

The higher good time to sell sentiment has to do with today’s market conditions, specifically low housing supply and high buyer demand. In the simplest terms, we don’t have enough houses available for sale to meet buyer demand.

According to the latest data from the National Association of Realtors (NAR), we’re still firmly in a sellers’ market because housing supply is well below a balanced norm (shown in the graph below). Why 2021 Is Still the Year To Sell Your House | MyKCMClearly, the scales are tipped in a seller’s favor today. But while housing supply is undeniably low, the right side of the graph shows how the inventory situation is improving little by little each month as more sellers list their homes for sale. I am seeing an uptick in listings daily across all of RI and the parts of Southern Ma in which I serve.

As a seller, that means each month, buyers have more options to pick from. By extension, that means your house may get less buyer attention with time. Danielle Hale, Chief Economist for realtor.com, explains it like this:

More homeowners continue to list homes for sale compared to a year ago… Notably, while new listings continue to lag behind a more ‘normal’ 2019 pace, the gap is shrinking. Even though homes continue to sell quickly thanks to high demand and limited supply, new listings are subtly shifting the balance of market conditions in favor of buyers.” 

So, what’s that mean for you?

If you’ve been waiting for the perfect time to sell, there may not be a better chance than right now. Inventory is gradually increasing each month, so selling sooner rather than later will help you maximize your home’s potential.

Bottom Line

If you’re planning to sell your house, 2021 is still the year to do it. The unique mix of low supply and high demand won’t last forever. The demand for housing here in RI is still at an all-time high. Since the onset of the pandemic we have been seeing an incredible amount of buyer traffic from Boston, Southeastern MA , CT and NY.  Add in all  the “lateral” moves many Rhode Islanders are doing within state due to changing lifestyle needs, remote work scenarios and/or the need for a stronger school system etc and that equates to a lot of buyer traffic!  All of that buyer demand has put a real strain on our meager supply which results in escalated sales prices for our RI sellers!

 

Let’s connect to discuss what you need to do now to sell your house and take advantage of this sellers’ market.

 

Uncategorized August 18, 2021

Real Estate: It’s Still a Lack of Supply, Not a Lack of Demand

I’ve been meeting with several homeowners lately throughout RI and in Southeastern, Ma to discuss the local market conditions as a means of determining if they should put their home on the market. Positioning oneself for the highest rate of success has always been my goal as a student, athlete, teacher and now Realtor AND it’s the lens through which I gaze when analyzing each client’s unique selling and buying scenario.

How can I position my clients in a way that maximizes their return on a sale or in value on  a purchase? How can I also infuse joy and reassurance during the transaction process? Those thoughts are ones that infiltrate the Agent Huard headspace starting early in the morning and remaining late into the evening.

Looking at the real estate market on the macro-level to gain an understanding of the current trends and conditions is paramount in obtaining a solid foundation upon which we can then place the micro markets. Real estate activity is far from instantaneous and thus it is essential to learn what’s happening now in order to ascertain a sense of what will happen with the market later. Gaining an understanding of buyer behavior is pivotal to gaining a more comprehensive understanding of this complex market.

Let’s focus on what is fueling the incredible year- over- year appreciation in home values both nationwide and here in RI and MA.

One of the major questions real estate experts are asking today is whether prospective homebuyers still believe purchasing a home makes sense. Some claim rapidly rising home prices are impacting demand and, by extension, leading to the recent slowdown in sales activity.

However, demand isn’t the real issue. Instead, it’s the lack of supply (homes available for sale). An article from the Wall Street Journal shows this is true for new home construction:

Home builders have sold more homes than they can build. Now they are limiting their sales in an effort to catch up.”

The article quotes David Auld, CEO of D.R. Horton Inc. (the largest homebuilder by volume in the United States since 2002), explaining how they don’t have enough homes for the number of buyers coming into their models:

“Through our history, to have somebody walk into our models and to tell them, ‘We don’t have a house for you to buy today’, is something that is foreign to us.”

Danielle Hale, Chief Economist for realtor.com, also explains that, in the existing home sale market, the slowdown in sales was a supply challenge, not a lack of demand. Responding to a recent uptick in listings coming to market, she notes:

“. . . if these changing inventory dynamics continue, we could see a wave of real estate activity heading into the latter part of the year.”

Again, the buyers are there. We just need houses to sell to them.

If the slowdown in sales was the result of demand waning, we would start to see home prices beginning to moderate – but this isn’t the case. As Mark Fleming, Chief Economist for First American, explains:

“There’s a lot of conversation around rising prices and falling quantity in the housing market, and there’s this concept, or this idea, that it’s a demand-side problem . . . . But, if demand were falling dramatically, we would actually see less price pressure, less home price growth.”

Instead, we’re seeing price appreciation accelerate throughout this year, as evidenced by the year-over-year percentage increases reported by CoreLogic:

  • January: 10%
  • February: 10.4%
  • March: 11.3%
  • April: 13%
  • May: 15.4%
  • June: 17.2%

(July numbers are not yet available)

There’s a shortage of listings, not buyers, and there are three very good reasons for purchasers to still be interested in buying a home this year.

1. Affordability isn’t the challenge some are claiming it to be.

Though home prices have risen dramatically over the last 18 months, mortgage rates remain near historic lows. Because of these near-record rates, monthly mortgage payments are affordable for most buyers.

While homes are less affordable than they were last year, when we adjust for inflation, we can see they’re also more affordable than they were in the 1970s, 1980s, 1990s, and much of the 2000s.

2. Owning is a better long-term decision than renting.

A recent study shows renting a home takes up a higher percentage of a household’s income than owning one. According to the analysis, here’s the percentage of income homebuyers and renters should expect to pay now versus at the end of the year.Real Estate: It’s Still a Lack of Supply, Not a Lack of Demand | MyKCMWhile the principal and interest of a monthly mortgage payment remain the same over the lifetime of the loan, rents increase almost every year.

3. Owners build their wealth. Renters build their landlord’s wealth.

Whether you’re a homeowner or an investor, real estate builds wealth through growing equity year-over-year. If you own, your household is gaining the benefit of that wealth accumulation. Fleming says:

The major financial advantage of homeownership is the accumulation of equity in the form of house price appreciation . . . . We have to take into account the fact that the shelter that you’re owning is an equity-generating or wealth-generating asset.”

Odeta Kushi, Deputy Chief Economist at First American, elaborates in a recent article:

“. . . once the home is purchased, appreciation helps build equity in the home, and becomes a benefit rather than a cost. When accounting for the appreciation benefit in our rent versus own analysis, it was cheaper to own in every one of the top 50 markets, including the two most expensive rental markets, San Francisco and San Jose, Calif.”

Today, that equity buildup is substantial. The National Association of Realtors (NAR) reports:

“The median sales price of single-family existing homes rose in 99% of measured metro areas in the second quarter of 2021 compared to one year ago, with double-digit price gains in 94% of markets.”

In 94% of markets, there was a greater than 10% increase in median price. That means if you bought a $400,000 home in one of those markets, your net worth increased by at least $40,000. If you rented, the landlord was the recipient of the wealth increase.

Bottom Line

For many reasons, housing demand is still extremely strong. The last four listings I have had in East Providence, Barrington and Seekonk have all gone under contract within a maximum of 4 days at significantly over asking prices AND I am receiving 6-15 offers on each listing.  Clearly here in RI and MA and nationwide, what we need is more supply (house listings) to meet that demand.

Real estate TipsReal Estate Trends August 13, 2021

Renovations 101

The Best Use of Time (and Money) When It Comes to Renovations

The Best Use of Time (and Money) When It Comes to Renovations | MyKCM

In the current sellers’ market, many homeowners wonder what, if anything, needs to be remodeled before they list their house. That’s where a trusted real estate professional like yours truly comes in. I  can help you think through today’s market conditions and how they impact what you should – and shouldn’t – renovate before selling.

Here are some considerations I will guide you through:

1. With current supply challenges, buyers may be willing to take on projects of their own.

A more balanced market typically sees a 6-month supply of homes for sale. Above that, and we’re in a buyers’ market. Below that, and we’re in a sellers’ market. According to a recent reportby the National Association of Realtors (NAR), our current supply of homes for sale, while rising, still remains solidly in sellers’ market territory:

Unsold inventory sits at a 2.6-month supply at the current sales pace, modestly up from May’s 2.5-month supply but down from 3.9 months in June 2020.” (Current inventory in Rhode Island is at a 1.7 month supply)

So, what does that mean for you? If you’re a seller trying to decide whether or not to renovate, this is especially important because it’s indicative of buyer behavior. When there aren’t enough homesfor sale, buyers may be more willing to purchase a home that doesn’t meet all their needs and renovate it themselves later.

2. Not all renovation projects are equal.

You don’t want to spend time and money on a project that isn’t worth the cost or is too niche design-wise for some homebuyers. According to an article by Renofi.com, basing home updates on what’s trendy right now can be a costly mistake:

The last thing you as a homeowner want to do is center your home design around a passing fad – even worse, one thats design quality won’t last a good while.”

Before making any decisions, reach out to me. I have insight into what other sellers are doing before listing their homes and how buyers are reacting to those upgrades. Don’t spend the time and money to be trendy – if your buyer wants to upgrade to the newest fad later, they can.

3. If you’ve already made upgrades this past year, your agent can help spotlight them.

If you have already completed some renovations on your house, you’re not alone. The pandemic kept people at home last year, and during that time, many homeowners completed some home improvement projects. HomeAdvisor’s 2021 State of Home Spending Report found:

“35% of households that completed an improvement project undertook some type of interior painting, while 31% completed a bathroom remodel and 26% installed new flooring.”

Let me know if you fall in this category. I can highlight any recent upgrades you’ve made in your house’s listing.

Bottom Line

When it comes to renovations, your return-on-investment should be top of mind. Let’s connect today to talk through any upgrades you’ve already made and to find out what you should prioritize before you sell to maximize your house’s potential. Getting your house ready for the market is also an essential process and one I love helping my clients engage in.  I’m passionate about what I do and the people I represent. My goal is to bring you success and happiness!