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 comes in. We 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 we will guide you through:
Many elements went into creating our current strong seller’s market, but things could shift towards buyers in the future. This year, high buyer demand coupled with low inventory elevated home prices and continues to cause stiff competition when new listings hit the market. Overall, new home construction hasn’t kept pace with demand for the past decade. It didn’t help that the lumber industry was severely affected by the pandemic, driving up home building costs. When you look at all the factors, we are likely to see a seller’s market remain so for much of 2021. But, there are certain aspects that could turn the tides and make it a more favorable time for buyers.
Moving to a new home is an exciting time, but it is also a monumental task that can leave you feeling overwhelmed. This is especially true when downsizing. What others may see as clutter is your life lived as you remember it. We’ve put together a few simple strategies to help you get moving, and take some memories along with you.
If you are in the market for any type of wood—from plywood or sheeting to standard 2x4s, be prepared for a massive sticker shock. U.S. lumber futures contracts for May 2021 delivery were priced at $1,645 per 1,000 board feet, about 60% higher than they were a month ago and 374% above the $347 contract price average in May 2020. This marks the fastest rise since the housing boom that followed World War II.
With a shortage of inventory of homes for sale in pretty much every U.S. market, the construction industry had risen. But with lumber prices soaring, starts are well below their previous highs.
While a public health crisis gripped the country for the last year, the housing market for some stayed red hot. Most areas of the country remain in a solid seller’s market. Homeowners have seen their home values appreciate and equity grow. Housing inventory was already down at the beginning of the pandemic, and remains low. However, demand remains high. Not everyone was hurt bad enough by the downturn in the economy to hold off buying a home. With historically low interest rates throughout the year, there have been plenty of buyers ready to snap up just about anything that appears on the market. At the same time, people that want to move, especially those looking for affordable housing, are having a difficult time, because there are just not enough homes for sale.
Part II of our series for home sellers continues with an inside look at what happens, from the time you sign a listing agreement, including how homeowners can maximize the potential of their home sale. A fun, no pressure way to become more informed and ask questions, especially in the unusual market we are in right now in West Central Minnesota. Karen Zell of Homes and Lakeshore / Keller Williams Realty Professionals is the upbeat presenter for this new online series to demystify both the selling and buying process. Includes free local Moving Guide with registration.
Most investors know the basic premise for success: “Buy Low and Sell High.” Seems simple, but in practice it is not. In real estate, we really don’t know the best time to buy until years past the purchase, when we see if purchase prices have gone up or down.
Savvy investors look at certain market indicators to help increase their investment success. However, we are in an extremely unusual market. Even though prices are high, it actually may be a good time to buy. Here’s why.