Real Estate Today 8-20-17

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Sunday, August 20th
01:17:07

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Real estate today. The number one realist each show on the radio. Welcome to real estate today. Backed by the professional experience of real tours from across America where your most trusted source on the radio for help today real estate information. Realistic today is the official radio program of the National Association of Realtors and it's real draw members in your neighborhood. Hi there I'm Stephen gas great and I'm delighted you could join us today for a show about the biggest story in real estate. Because today we're looking at inventory. To coin a phrase houses houses everywhere and not a one to bond. There just aren't enough homes for all the fires out there and the results competition. Bidding wars and rising prices today we'll talk to experts from all across America. About how you can still win in today's challenging real estate market. Inventory is straight ahead but first let's go to the realistic today newsroom with Phil Thompson I don't I Steven. The national association of homebuilders is endorsing an affordable housing bill now before the US senate. The NAHB says the affordable housing credit improvement act would promote the construction of sorely need and rental apartments and help alleviate the nation's affordable housing crisis. And AHB chairman Granger MacDonald testified before the Senate Finance Committee. Housing affordability has reached crisis proportions. The number of poorer households or should really cost burden we may have more than half of their monthly income on rent. Is it an all time high of eleven point four million people. This is one in four readership the first step to solving this crisis is passed senate bill 548. Among other things the bill would try to make more affordable housing available through a list of concessions to builders developers and property owners. Starting this fall Freddie Mac is going to impose tighter restrictions on load down payment mortgages. The company will begin requiring lenders to collect a minimum 3% down from buyers. A Freddie Mac and Fannie Mae both started offering 3% down payment mortgages and 2014. But some blunders and offered loans with the littlest 1% down by granting 2% of the down payment to the borrower to arrive with a 3% needed. That practice is what Freddie Mac will no longer permit. A lender could still make Kuester grants but only after the 3% threshold has been met. The homes on one swanky San Francisco street typically sell for several million dollars. But this street in front of all those multimillion dollar homes was recently sold by the city for back taxes the sale price. A mere 90000 dollars the buyer Michael Chang tells NBC Bay Area TV that. He and his partner considering what to do their investment. One option he says charging residents to park on the street churning now owns. Among wellness is try to street and that's not. Admitted the homeowners have now filed suit against the city saying officials failed to properly notify the streets previous owner. About those back taxes. Coming up and half an hour why your insurance company makes and the drone out to have a look at her house. Stephen McEnroe thanks bill. We have some great news for you today if your home owner for a home seller. Prices are up. The latest metro home price report from the national association of real tours. Shows that nationwide. Home prices rose more than 6%. In the second quarter of 2017. Compared to the same time period one year ago. That means more equity for homeowners and bigger profits at the closing table for home sellers but. For homebuyers. It means challenges remain. Joining us now to talk about the latest metro home price report is Lawrence June the chief economist at the national association. Of real tours. Lawrence welcome to realistic today. Hello Steven. Space for having me on the show. We're glad you're here so Lawrence in the second quarter of this year prices were up six point 2%. Compared to the same period a year ago. For homeowners and home sellers the equity they have is way up and that's gonna help a lot of people in America tell us about that. So the up prices are rising which means staffed or nation's homeowners and we are looking at about 63%. Of families. Across the country. They are experiencing. A presidential old crane. And he's 6% better than 6% rise it will be about three times as fast as the general inflation levels so this are real gains for homeowners. So I can only imagine Lawrence at the reason for this is there's not enough inventory there too few homes for sale for all the buyers out there. And supply and demand it's just pushing prices up. So one looks at the demand and then one can say that because the consistent job creation and about two million new jobs creation each year for the past five straight years this is cease social demand and that's jobs have been created endorsed or at least to some young adults who have been littered with their parents. To seek out their own house hopes at the same time some of the renters are asking the question on why MI pain this. Higher and higher rent. So improving economy as well as he's also formation and is leading to this increase in housing demand. Yet how can supply is not cashing out and therefore we are seeing shrinkage of inventory pretty much across to country. And that is why a home prices are rising much faster than general inflation rate. And as the latest report shows Lawrence. The vast majority of American markets are seeing price appreciation so how did we do around the country when it comes to the value of our real estate. Double Ali was the west region which saw the fastest price growth saying this is where the job growth is huge solid. And you combine that blew it. Black school buildings outside a California market they're just not building and out in California market emperor one of the fastest job creating area has yet these supplies is just not be hurt. To match up with the demand peaks and consequently wanna look at that. I mean you're double digit rate of price appreciation in places like Denver Salt Lake City. Seattle lobby north east region is seeing much model that price growth. Only 83% price increased from one year before X and this is a combination helps. Small were chopped wrote I mean he's not an economic recession and they're creating jobs. But is it slower pace of job creation and and in some of these note keystone State's New Jersey New York Connecticut. They still have all were hanged of distressed property that is yet to political mood in for close process. And bull story in the part of all and those inventories are hitting the market and thereby retaining the price group. Interest and Lawrence do you expect prices to continue to rise act this level. For years to come or some point they just sort of slow way down. Well upload the rest of the year got dinged up price growth will hold up at this level. For the simple reason that these new home construction console for a year to date. Has been disappointing. When there is this strong housing demand a builder should be. Ramping up production and yet they are not to insult and because of that I think the party tries to broad is pretty much forecasted for the remainder of the year which. But going into 2822090. Inevitably. Some market demands will be cut off from affordability challenges so we just cannot have a week. Number of consecutive years upon price of self policing people drink comps and national mortgage rates will be higher in 2018 and 2019. The Federal Reserve. Will be unwinding some of their mortgage backed security purchase says which they had done several years ago and they will release step onto the market without court into technicalities that just means that mortgage rates so will be modestly harder next year. Diocese so Lawrence. I do appreciate you coming on the show today and talking about the 6% plus. Increase in home values are over the last year thank you Lawrence. Lawrence June this chief economist at the national association of real torched. Coming up on realistic today. How can a biter win and a super competitive red hot market of San Francisco. There competing against people that have made 1020 offers on properties in the past that are willing to pay over the asking price in some instance. This is what you get when there's an imbalance in the market again. That's next on our special show. Inventory. Real estate today. Connecting you with the real estate professionals. Every week. Back again now where there special show inventory. And in depth look at the shortage of homes for sale and what that means to buyers sellers and homeowners all across the nation. And right now we're going to focus on what's considered the hottest market in the United States San Francisco. Joining us now is a true San Francisco. Real estate pro Vince Malta real tour and CEO of Malta and company a real estate brokerage firm in San Francisco. Vince is also the past president of the California association of real tours are spoke with Vince last week in an and they are meeting in Chicago and asked him. How's business in San Francisco. Business is good but the challenges inventory there's really not that much for sale. And so when you deal with buyers that have. A fair amount of cash. With no inventory it creates the imbalance that we can experiencing for the last four years so buyer comes to your. It says are gonna catch plenty of money no problem there. They still can't find a house they could be looking months they could be competing with multiple bidders on a home. And locked out so yup third there competing against people that have made 1020 offers on properties in the past. That are willing to pay over the asking price in some instance this is what you get on this an imbalance in the market again. Interest staying. So they always say cash is kink. But it many of the buyers are offering Karrie should no longer give Jude the advantage. Well the true. And I and I tell my clients that aren't working with cash that you have to be prepared in advance. So it's not just a willingness to buy a home it's convincing a cellar that you're able and ready to buy that home. And that you've gone through the process. That it's just a matter of getting a contract. Preliminary title search and your able to close property. It's a part of choir and I come to you. How would you help me put together a winning. Off. Turn so first of all. I wanna make sure that your confidence and wanting to move forward. So I wanna go over familiarity with the market making sure this is the right property for you except for a making sure that you were pre approved with a lender and advanced again pre qualified is not enough pre approved. That music you've submitted an application you've had credit checks done. And there is no reluctance for the lender to land so long as the property appraisers out. And you have clear title when you have those two things you're able to move forward. And we sit down and go to the offer page by page by page. What will you advise me to do to make sure. It's competitive as far. So we look at the number of contingencies so we look at what the seller has provided us the seller here she may have provided us. Property inspections and advanced structural termite inspections. Disclosures. And if these are typically professionals that we would have recommended to amongst the ones who recommended. Then I'm. More inclined to say. Let's contact these people and dance rather than do re inspections except for so we don't have that contingency. That we look at the time frames do you really need 35 days to close your pre approved. Probably not she wanna make sure that the time frames can match. What perhaps a cash buyer could have offered. So we were moved us at the only issue becomes hopefully price and not other contingencies. Not contingent upon the sale of another property etc. that is a really really difficult difficult think capital markets we have. I bet and so we find that house we wrecked that winning offer. Speed. Is of the essence. Speed. And demonstrating. Your willingness and ability to close again that is so so very important in that marketplace. So it seller wants to see that you're gonna go all the way to the finish line node detours no delays they want you to buy that house how you show that. Well one way that we showed Israel's forces shows that we can get it done as well. That we can work with the fired bring it over the finish line so we provide that confidence. Many real tours no other realtors sitting across table because we've had that situation where were represented the seller pick setter. So it's it's a matter sometimes the relationship. And knowing that you've got a winning combination. To close that deal. If we find the right house to have time to sleep on it. Many times now men and many times you're going through. A situation where you need to submit an offer right away because you might be a situation where they're allowing what's called a preemptive offer. And that we have to move very quickly. Others in and a hot marketplace what they do is they provide disclosures they provide a period of time. Maybe 710 days. Two to show the property didn't multiple buyers so that they can create what's called a bidding situation. So there are sometimes you'll have time. But if you need to act quickly you don't listen your professional then be ready so that you can act quickly if you have to. And I will I lose a couple of times before I win. It happens it happens but you don't wanna lose because you weren't prepared that is what is so very important. It's okay if you lose it you gave it your best shot you didn't make it but if you didn't give it your best shot by being prepared that the tragedy. This. Is this tight market where we can just come to expect. In the future is this the new normal. This may be the new normal in many markets they're not providing enough housing. New house is what's needed. And so this is what might be the new normal so all I need to say I can't say enough workers professional and be prepared. Vince Malta are real tour and CEO of Malta and company. A real estate brokerage firm in San Francisco. In the past president of the California association. Of real tours. Coming up unrealistic today. We'll take you to the shores of Lake Michigan and examine inventory in Chicago. If you get multiple offers there's this knee jerk reaction don't know the teller thing I've underpriced my home my left money on the table. And that's not necessarily the case. That's coming up on our special show. Inventory. But first it's time for a brand new segment unrealistic today. Heart or not. Home design elements come and go paint congress flooring counter tops. Even the types of rooms we governor homes. It can be difficult to stay ahead of the trends. That's what hotter or not is all about. Helping you know what's happening in the American home. And maybe your home to. Joining us now with hotter and art is Melissa dip in Tracy. Author of the national association of real towards popular startled staged and sold blog Melissa welcome to realistic today. Thank you event for having me I'm really excited that you looked at. We are so glad you're here so Melissa let's talk about elements in a house first of all. Carter knocked it granite counter tops not. This may come as a surprise after I'd been all about marketing the granite countertop in recent years. But courts even at becoming the clear crap and arcane. Overwhelming majority or remodel surveyed by and national kitchen and bath with the Asian. They they're you'd think court Albert granite and their kitchen remodeling project. Here's why quart can be more every does think that he can scratch and that's that's always a bonus in the kitchen. And they can resemble marble and it comes in several color variations you. Also worth noting that it really get the kitchen a nice clean polished mark. That is great to note okay Melissa let's move outside. The outdoor kitchen pot. Or not. Hi. So a lot of the regional preference of course. And I'm a national level the American Institute of Architects the recording group grilling demands were outdoor kitchens. Outdoor kitchen may include a built in grill in islands. I've created options include small refrigerators. And Connor talk and steel cabinets and even higher plane at an outdoor television. Some home buyers meet even pay a premium for your home icky you had an outdoor kitchen. Anybody real Turk dot com last year. Found that buyers are willing to pay a 26%. More of her home with an outdoor kitchen. Compared with similar home with out one in that scene that. When he pretended pretty significant spell there may even be paid back out with the outdoor kitchens and. Well Melissa I really appreciate you joining us on the show today and talking about today's market and what's hot. And what's not thank you thank you and I don't I. And Melissa will have many more segments about today's real estate market. And what's hot and what's not. In the weeks ahead. Right here on realistic today. Real estate today. Because knowledge is power. And we are back with our special show all about inventory. The shortage of homes for sale across America. It's a situation that's driving up prices and causing bidding wars in many markets from coast to coast. Coming up we'll continue our conversations with real towards across America to find out how their clients are managing to win. In a red hot real estate market. Inventory is coming right up but first let's check in with Phil talks in the realistically they newsroom I don't I Stephen. We've heard so much recently about the growing use of drones to help sell a house by taking dramatic aerial photography. But there are no longer just for selling a property reports the Wall Street Journal insurance companies are realizing their value to Russia's journal reporter medical treatment. Now if there's damage up on a roof rather than having to send somebody with a ladder to climb up on the roof and inspect the damage they're now sending out. Adjusters with drones and drones by app and take pictures above the roof and that person doesn't have death. Climb up then risk any of their safety and it can be faster as well. Friedman reports that in the future insurers also hope to expand the use of drones to include disaster situations such a hurricane. But ordinarily makes it hard for insurance adjusters to access properties. The head of Florida realtors is advising agents and her state to close before September 30 on homes for which buyers will need flood insurance. The National Flood Insurance Program or NF IP is going to expire at the end of September. And Florida realtors president Maria wells says it looks less likely now the congress will finalize a renewal bill in time. So wells advises realtors to quote take precautions if you have pending listings in September that a located in mandatory flood zones. Multi generational living is making a comeback across America. REALTOR.com reports that it's a trend fueled by both economic and cultural factors. As millennial move back in with mom and dad or aging parents move in with their adult children. According to the pew research shuttered nearly one in five Americans is now living in a multi generational household that's a level of hasn't been seen in the US since 1950. Factors at work here include soaring home prices child care expenses college debt longer life expectancies. And a resurgence of traditional multi generational living in ethnic communities. FaceBook has introduced its first ad product that's designed specifically for real estate brokers but call it dynamic ads for real estate. The company says it will allow agents to quote automatically promote your home listings on FaceBook. The ads will look brokers advertised listings to users who were previously searched for properties on that brokerages web site. FaceBook tells social pro daily. That real estate agents can use dynamic ads to reach people who were interested in properties based on neighborhood price size and other factors. Coming up on half an hour how traders drove just helping you make money with your home. Stephen thank you thanks bill. Continuing our guards in depth look at the shortage of homes for sale. In real estate markets all across America. They're just part enough houses for all the buyers out there and the results those buyers are competing for whatever homes do come on the market. Ent with supply down and demand up that's right prices are on the rise. Today we're taking you all across America as we talk with real tours in cities large and small and right now. Chicago. What's the inventory situation in the windy city let's ask a pro. Joining us now is Rebecca Thompson real Tor with act properties in Chicago. And the incoming president of the Chicago association. Of real tours Rebecca how is the Chicago real estate market. Nice and hot. It's a good balance market or not seen these crazy inflation we're seeing and I sound like coastal markets so it's been gradual appreciation very sustainable growth. Can a buyer find a good house here quickly or to be face crazy competition and rising prices. I think there's always competition at the home is priced well at this stage well it's like cream puff everybody else is looking at it in there is definitely going to be in competition. But there's opportunity we've seen development. Re emergence Chicago's market so there's now new home options that haven't been here for the past but in about seven years. That sounds good you have more inventory more choices for people part of the market will go in that direction and so the existing home market. Is more accessible. Absolutely the existing home market. Fires are still attracted to that turnkey home sellers are upping their game their making sure everything is painted staged. Ready to go but there are some opportunities. Some fellas don't have the time don't wanna put in their resources to do some of that work. And there's definitely a deal to be had. Speaking about sort for a moment if I have a house in Chicago. Gonna wanna solid. Do I have to put in the work. We're gonna just put up for sale sign out front and expect a great result. Every market different and neighborhood to neighborhood block to block you're going to see variation sellers need to do to get themselves. Ready to be on the market. My first piece of advice would be definitely consult your real -- to make sure you have an understanding of what market dynamics are in your area. That being said. Any seller should be looking at fixing some of the small things just when they're sitting in a room to they noticed something is practiced if something that can be fixed. Bringing an handyman to do some of that work up front because it's one less reason to fire. He's choosing not to buy their health interest banks what about the seller who says. Hey Rebecca. Let's push the envelope. Let's ask a price. Where the oboe market. Just to see if we can get it do you get back Larry Kendall a lot of but Collins Colorado talks about the pond and at at the top of the pond you have all the fires they're fishing they're looking for what's new what's exciting on the market which has come on the market they get snatched up excel. Then you have the homes and sinks to the middle of the ponds and usually need to make some kind of price change we need to do something with the staging of the property to reinvigorate that fire audience. The reason the pond analogy works so well as you have. The people that overpriced and I just testing the waters and they are looking to see if they get you fight the problem is. And the only thing looking at the bottom of the pond are bottom feeders. And so when you overshoot the market you're looking for someone who's most likely trying to get a deal or even worse case deal. When you overshoot the market. We see a number of price changes really impacting the overall home sales that's priced right from the beginning they have a better average sale price. Than those who've had price changes. Very interesting. And when you do priced correctly. And house is in great shape. We you have multiple offers on the house. New day. If you price it right from the beginning if you only get one offer. It was priced well it was priced right on target you get that one off are you go under contract to sell you get multiple offers. There's this knee jerk reaction Ohno the seller thinks I underpriced my home my left money on the table. And that's not necessarily the case in fact if you get multiple offers it drives up the price. To really have the highest amount the market will bear and even then you still have to get to the appraisal. So you working with the seller. The listing agent you know have a half a dozen offers on the kitchen table in your walking through with a seller. How do you evaluate an offer to make sure it's the right want. Of course at pre approval or proof of funds is extremely important I think that's that's step one. But every sellers needs are different and it doesn't always boiled down to just price. And so I talked with my clients about. What their needs are it's timing issue is it is it priced. It's a function of something else maybe they've really are in love with that patio furniture that one of those buyers is just bent on getting that patio furniture that. It's looking at first what makes them mad ants for them. Once we have that potential we can even go back to some of the buyers and say. You know number one is really the ideal closing date can you do that. If now we're comparing apples to apples and then we're having a pricing discussion and we got to look at financing terms we start to look at. Earnest money we start to look at. Homes at contingencies is it being sold as is things that may benefit us and create a lower risk for my cellar during the prompt us. This must be really exciting time for sellers in Chicago. Absolutely. But being the sun is out buyers are excited and sellers are feeling confident. Not just about their home value but for a lot of them what their options are to move into in the future. Or Rebecca. Thank you for joining us unrealistic today and talking about this red hot market in Chicago. My pleasure thank you. Rebecca Thompson real chore with our properties in Chicago. And the incoming president of the Chicago association. Of reports. Coming up unrealistic today. The modern day gold rush in Alaska. You've got to look nice home with dead no deferred maintenance. And Geoff price is right did multiple offer everyday yeah that's next on our special show. Inventory. This is real estate today. 100%. Real estate 100%. Of the time. Continuing now their special show inventories. And in depth examination. And have a shortage of homes for sale across America is impacting real estate transactions. All across the country. And now a special look at a very special place because the shortage of homes for sale is also affecting buyers and sellers. In the last frontier. Alaska. At a recent an arrogant or spoke with Vickie track real chore with Holmes unlimited in Anchorage. And the incoming president of the Anchorage association of real tours and my first question. How's business in Alaska. Well we're staying busy and dead market statistics show that houses are maintaining their value little short on inventory. And they oil prices said what's happened with Euro crisis has cost a lot of layoffs it's kind of made our marketplace a little audience certain demographics we have some issues going on. But a strong which is a work and. In many markets across the continental US. It's a seller's market there aren't enough homes for sale so the buyers are lining up in their competing in their bidding wars. Are you having that. We haven't in some areas and some of the price ranges yes it's just not enough it right first time home buyer houses are. On and gone in multiples because sad there's not enough about. You know everything about that we have an Alaskan ship in there and makes it average house 350000. Dollars it's tough to get back. Young couple. We got to both be working to even afford to get into a house and I don't know that there's any way we try with the condominiums and try to get to their housing prices down low but it's tough. To get it just expensive. So one of the biggest barriers to homeownership in your state is the cost of homes cost Toms yeah if we can somehow find a way that we had back. More affordable homes that 200000 dollar range we've got to replace family sent him. In your specific practice who is the typical fire in Anchorage Alaska. But we have a huge military presence because we have a monstrous military base. A weekend a lot of VA buyers. You sit at home mom mid range rank. Military we a lot of three years and they got at the apple to. Cell they you have to have enough appreciation of the market to be able to sell in three years. And move on to their next base and that's been tapped. We're in our Reynolds which where they had Al Reynolds we are Reynolds going. A lot. So that's gonna change our marketplace T could actually rent something in Anchorage right now she wanted to hear what's two years ago you would have found anything is that right yeah yeah it's quite amazing market. Are you seeing any multiple offers on properties or is that just not happening in Alaska know don't we CM especially I get our viewer interest aging a little bit so if you got a real nice home. With that no deferred maintenance. And Geoff price is right get multiple locked for everyday yeah it's death. How about the weather does that really play a factor in the changing seasons for instance is sure home buying season shorter. Or does it really go on all year long despite the harsh winners. Now we've definitely have peaks and valleys in the summertime. Very beginnings I'm everybody's got to go fishing in campaigning in recent serial Dropbox and then and then somewhere in them that you know adapt early Summers. Everybody says we got to get. We're about July we get get settled before schools are we yes huge boom in our marketplace. And then when he gets no way an awful and the roads are terrible in the October November our market drops off. Somewhere in December we have another kind of up peak. And that's because they they should have moved just a few months ago but they were too busy with that terrible weather is after so in the spring will be used to it now they're pretty good he can transactions. Vicki casts real chore with homes and limited in Anchorage Alaska. And the incoming president of the Anchorage assertion issue in a real tours. Coming up unrealistic today if you're not selling your home just a lack of inventory matter to you could. We'll talk about it next right here on realistic today. If you love listening to us talk about real estate join the conversation. I'm really see today radio on FaceBook. We can't wait to hear from you that's real estate today radio on these. This is a real estate today is location. Location. And information. Back now whether special show inventory. All about the shortage of homes for sale all across America and what it means to buyers sellers and view. If you own a home or if you're planning on selling your home you probably know low inventory is good news for you. The reason is with lots of demand for homes and not enough supply. Prices just keep going up. The national association of real tore says that in the past year loan. Median prices went up more than 6%. For homeowners that means the market value of your home is rising to. Even if you have no plans to sell the value of your house is getting higher every year in most markets. That means that your equity is rising and your LTV. Your loan to value ratio. Is dropping and that's a good thing. So in the eyes of lenders sure looking better and better because as your equity rises Europe better candidate for refinancing. A better candidate for a loan on a second home. A better candidate for any kind of home loan you might need and by the way that's just the market are you were talking about. Add to that the amount you pay down on your mortgage every year. And your equity will be growing on twin tracks and that's great also for investors big and small. Who see the same positive results. OK now if you're selling your home for you were talking about a more immediate benefit. Because when you go to sell your house you might be surprised at how much it's worth. That's a nice development that extra cash will be a big help no matter what your next move might be. But here's what the real estate pros are saying. Even though there aren't enough homes for sale in today's market and even though bar owners will lineup Richard door when you do put your house on the market. You still have to put in the work. Your house will still have to be white glove clean. Perfectly painted and perfectly maintained. If you wanna hit the ultimate goal of maximum profit in the minimum time. No one note just because it's a seller's market you can't just pick a price out of thin air. Work with your real torque to determine the right price asked to march. Other homes in the neighborhood will sell well yours might just sit there if it's a long enough you might end up reducing the price anyway. And when buyer seat out they might come in below so price it right from the start if you do that you might have a very successful transaction. So again if you own a home or if you're selling a home. Low inventory is in your favor but for buyers it's another situation altogether. Will look at very start of the settlement table including how some buyers are thriving. In the next hour right here on realistic today. If you'd like to hear more of realistic today's special show inventory either stay tuned. We're joined us online radio dark real tore. And from all of us here at realistic today thank you for listening. If you're realtor you can put the entire week was C today show on your website. Then that's really speaks out on the Radio One 100% free to any our members just go to our new web address. Radio dot realtor and click. How real. Real estate today. The number one real estate show on. Welcome back to real estate today. Backed by the professional experience of real tours from across America where your most trusted source on the radio for up to date real estate information. Real estate today is the official radio program of the national association of real tour. And Israel were members in your neighborhood. Again I'm Stephen gas quake and I'm delighted you can join us today for an in depth look at the biggest realistic story in America. Inventory. In markets all across the country there is a serious shortage of homes for sale. That's driving up prices creating bidding wars and prices are on the rise to the we'll talk to real estate professionals from all across America about how to win. In today's ultra competitive market. Inventory is coming right up but first let's go to the realistic today newsroom with Phil Thompson I don't Steven. You walk through a model home you're seeing one version of what that home could look like what if you could see a range of ideas on what it could look like. Told architecture is now testing virtual reality to help homebuyers see what their new home could look like customized for them. Company president John Gibson told CNBC. I model home represents one style so that's not your style we wanted to find a way to help our customers visualize. These other possibilities. There choice. Gibson says the virtual reality lets buyers test different floor rings covered tops even room sized. New Labor Department figures show that the high number of open construction jobs in America has been shrinking over the past year. That is seen as a sign that the ongoing construction labor shortage could be easing. But at the same time the national association of homebuilders is expressing nervousness over the proposal in Washington to limit legal immigration. The NHB says it will quote be at the table seeking effective reforms the can help revitalize the housing sector and the economy. The association says it favors a market based visa program to fill labor gaps and sure enough workers to meet its housing construction needs. If there is a severe economic downturn in the US Fannie Mae and Freddie Mac. Could require a taxpayer bailout of close to 100 billion dollars. That's the finding of a Dodd-Frank stress test released by the Federal Housing Finance Agency. The stress test measured how the two government sponsored enterprises would hold up in what's called a severely adverse scenario. Test found that together Fannie and Freddie would date between 35 and 100 billion dollars. Trader Joe's has not only good place to buy groceries it's also apparently good for your home value. Figures from Adam data solutions reveal that homes near a Trader Joe's have appreciated more over the past five years and similar homes near whole foods are all week. The typical home near a Trader Joe's has had an average five your home price appreciation. Of 67%. Compared to 52% for others near whole foods and 51%. For those near Albany. Coming up and half an hour how one couple is fighting back against the fraud scheme that cost them over a million dollars Stephen back to you. Thanks bill. We have brand new information for you now as we continue our special show about them lack of homes for sale across America. Richard. The US real estate market is currently experiencing. The worst inventory deficiency in twenty years and quote. That comes from Richard outcomes brand new housing shortage study. Which finds that the lack of homes for sale is caused by more than just a lack of new home construction. Let's talk about the housing shortage now with Danielle hail the chief economist at real true dot com. Danielle welcome to realistic today. Org ledger here and many of our listeners will know you from having been at NAR for years but now. Your REALTOR.com so let's begin with congratulations. For your new job. Thank you enact a sudden transition. What Danielle were happy you can still join us on the show. So the REALTOR.com housing shortage study says this is the worst shortage of homes for sale in twenty years. What's causing it. But even Gary and we have a shortage of armchair sailed. It because we have a lot of people moving into them target tricks thinking about homeownership we're looking for a place at that and called her own. And they're really it's not a lot of how do that on the market right now for elk. That's something that is pretty content and a matter of the data source the national association erupted amid radiation that throughout our common inventory data center back. Across the board are not acting in a part of the market. Logan section of one factor but this factor that we on the during their survey and that. Lot of rumors own homes and they're not interested in balloting so. The idea that. The murdered reaching that age is we're asking you about retiring may be moving or having community. Around something in common market that doesn't seem to be happening in fact 85% of boomers indicated that they are not adding other common an actual air. Oh that's big and looking through your studied in you know. I know that a lot of the boomers you surveyed said hey the house or how does just fine no need to leave. Yeah I think I let them out at editing irony of the survey axed the people are concerned that. Economic actors or a portability factors or. Other reasons are driving the decision at eight clients. First some people low interest rates are readers understand but the vast majority respondent to act 72% of baby boomers. Indicated their current home that they're neat that they just don't need her. SO Daniel when you take all these factors together. The fact that there's not enough building happening and the fact that so many baby boomers just wanna stay in the house therein and not put her on the market. This could look like go very long term problem but. Your study indicates that millennia heels might be able to come to the rescue tell us about. Even so money or else someone ill in order after the morning a group have been able to get into the housing market already tell. Millennial openly talk about group protect your screen of those aged eighteen to thirty or. And though the Marist thirty Maine and able to purchase the home already. They might about a mile home to get their foot in the door homeownership. And so now they might in a situation in their life where they're getting married or having children and our maybe adding a pat and expanding their family. And there are home I no longer fit their needs that they are actually looking to trade up a significant number of millennial expect interest but it. In making a move to harm that is the better sit there and rainy elks. That could open up and charter are mandatory or some of the younger colony. Of course. Adding new construction would go a long way toward helping Matt it action action have been on the entry level that's been a big challenge her daughter's. Yes Daniel builders always stated as the three l.s lending lots and labor and now this year. We're hearing about a fourth L lumber that they can't get the materials they need to build as well. So long term do you think the builders will ever ramp up to an acceptable level of building or do you think we again are just going to have to get used to this. I think that builder and are moving in that direction create new construction data this week but senate at that and at the last month but. On the whole the year you're trying to outbid. And particularly honored jingle Stanley eye which had good news it's our homeowners because angle mainly moms and that he built for our pocket and spread multifamily homes. That vast majority of agriculture archetypes. There's some light on the construction diet but adding to the multi year problem in the making. At Redding Connecticut a couple of years that really get to a point where. I think market is act in more normal balance between what's available for sale and the number people up there looking for home. Interesting in of course Danielle on top of that a lot of sellers are staying put because they're afraid if they sell their house quickly. They won't be able to find another house. They give dot com buyers well that'd been injecting cement and that seller's state. It -- about where they're quite dig out and then inventory its duration is not the same in every part of the country tell us your every locate a different area. Maggie Barry put your heart on the market. Market. Where a lot of money on what should be and you might find it relatively EDT a live Omar Al. Now where there's more on the market but every marketed the threat that you really want to make sure you seek out local expert information. To make a big decision that's great trio. Well Daniel we certainly do appreciate you coming on the show today and talking about. The new housing shortage study from real toward ark com thank you. Daniel hill the chief economist at real sore dot com. Coming up on realistic today. And in depth examination of inventory in the north star state. And more than Tony neighborhood says that 350 to 400000 dollar price values their. Or five fires every else. Minnesota is next right here on our special show inventory. Real estate today. Connecting you with the real estate professionals. Back now we're at our comprehensive look at inventory in America. They're just aren't enough homes for sale these days. And that's causing fires to compete to get a house under contract. And today we're talking to real tourists from all across America about how to win in today's ultra competitive market. And up next the Twin Cities of Minneapolis and Saint Paul, Minnesota. Joining us now is Johns may be real chore and broker with a Darnell realty in a diner Minnesota. John has a past president of the Minnesota association of real source. He's currently the 2018. President elect of the national association of real tours John welcome to realistic today. It's my out everywhere the of their dad loved the show thank you John it's very nice of you. Tell me how is business. I think it depends moment where your perspective wary eye around the country I would say to Minneapolis Saint Paul market business is booming. Well our pricing levels are above. 2005 levels. Not enough inventory I think I hear that all around the country everywhere bit around the country. Heard an interest in fact I talked this morning too high incoming president from mile Wyoming. And I Astor Jackson hall area gas sure prices work and she said they are now above the 2005 level that's great start. That's bigs. And that I'm thinking around the country out Florida's the same. So we're seeing some real leveling off and improvement prices all around the country when people talk about inventory it. A lot of times when they really drilled down it's about price point. Starter homes and just above that level. Virtually nothing out there but when you get up into the luxury area is usually quite a bit of inventory what are you finding. In Minneapolis Saint Paul market I would say our luxury Marco let's say that's over 700000. We were having hard time selling homes in that area. Maybe it's one point two million but it certainly slows down at about 7800000. So when people say there's no inventory out there really it's not the full story. The full story is a first time buyer market lets you mentioned. And more than Tony neighborhoods in that 350 to 400000 dollar price rise there. 45 buyers for every else. And when you work requires at a price point that is very competitive where there's not much inventory. How do you win. A number ones preparation. You have to have them prepared to act quickly they have to be qualified. They have to be prepared to pricing and be prepared to go for full price. Do you have to educate your fighters to absolutely and that's maybe a two or three week process upfront. As two or three face to face meetings that computer work a lot of home. Are on REALTOR.com ahead of time. And so they have some knowledge of the market but that only gives them really in today's market place. Our line is so very very small percentage of that market in that first and second home. Interest things going to the other side now sellers. If a seller. Finds 567. Offers on their house. How do you help them evaluate as to which one is really the best. A lot of it depends on your cell circumstances. And how quickly that they have to move. Where they're moving to continue to look down the line do they have to sell out all the get the cash. Four that. And see won't look back at those properties as much as you can do they history. Of sales activity. Of that fire. And that again it's an education process and when you have 67 on for some I also think the big thing to do was take the step back. Weren't a good position. Let's take our time let's do it any real workmanship. Professional manner but we don't have to gulp pulled out of the air make that real quick to six. If I sell my house in your market but we plan on buying another house in the same market. In my at risk of staying in hotel for a month or two guests that have been happy the FC wanna hear it depending on. Depending. And that's how bad ever bad strategy whether you like it or not today's real state world there are a lot of rental opportunities. For long term and short term that's not something real say people like to say a lot but. We've had people that if there will do it do that and it might be depending on how specific their names out. Could be it two weeks it could be a month that could be two months. So would you recommend Simone was doing and he buys out here would you recommend that they find it. The home they want first and try to wrap it out of this would be the stuff that's spreading around cash needs let's just say they need to sell the house in that situation. They need to sell the halls notified no I'll stick. So the first thing I would do. As I would take them into the marketplace we've just establish a price. And if we think that their house could sell in a reasonable time period lets say sixty days I'd go look at the market. To Wisconsin to see if what they want what they tell you that they want. His Alter. So if they're comfortable with that out and then you couldn't pull the trigger on their first talks to John real quick before we let you go. In a nutshell best advice to a buyer in today's Merck and find a good agent find a good loan officer. Do your homework and listen. Best advice for a seller in today's market take your time. Make good decisions. In your view they have don't hire a good girl took. Johns maybe a pleasure having you name it you very much it's my pleasure thank you do. Johns may be real tour and broker with a diner realty in Dinah Minnesota. The past president of the Minnesota association of real source. There and that 2018. President elect of the national association. Of real reports. Coming up on realistic today. Just outside the nation's capital where buyers have to be really fast to get a home. There are multiple offers on properties. In people have to do you know did and sometimes over bids again that offer except. That's coming up our special show inventory. But first it's time for real knowledge. A special segment on realistic today. In which we talked to a TARP real who economist journalist pork industry expert. About things you need to know about and today a special conversation about issues that can pull your property values up. Or push them down. How to real estate professionals know how with certain neighborhood feature might impact the price of their clients' properties. Well many of those pros direct those questions to the largest realistic library in the world. At the national association of real tours. And joining us now is Hathaway Hester librarian and archivist at any ours realistic library in Chicago. At a recent an error event are asked how the way how she prepares property value impact studies for realtors nationwide. Clay is always wanna know how community features are going to have an impact on their property values bloody hot but it will it be negative. So commonly it's something like a park or museum art golf course occasionally. We get the real hot dogs. Blake had impacted crematorium. I'm. Property values are serious serious lake crematorium so glad that we had add my personal favorite. Men know early again if you had cats up. Yeah as spoiler LA it was night as he. And so members call and ask questions like this how on earth can you come up with the inserts but that's the great part about working in the white just real estate librarian rounds a week. A print collection of books. Journals collection at. So we've got a ton of information at our fingertips to really present the most he ever reach into our clients in this case real tourist. And so you don't just say. Yes it has a negative impact you provide data you provide documentation to back conclusion. Absolutely so it's natter a simple yes or no answer typically when we get our collapsed we per byte packets of information and I'm Natalie include. Links to articles are the articles themselves. With six key information and that. Point it out well simple saying but I also say here's the really important acts are you wanna pay attention to how I highlight that. Monday they've aged thirty all right negative impact but in the next study might say I hope. He's 56 actually positive impact including the full picture in a lot of T says. It's my either positive or nag at that can text while. Pat we thank you so much but let you Steven. Hathaway Hester. Librarian and archivist at NAR's real estate library in Chicago. This is really easy today. All real estate all the time. And we're back where their special show inventory. In which we're talking to real tourists from all across America about how they shortage of homes. Is affecting their clients their sales and their businesses. Coming up realtors will explain how you can win in a red hot market. Inventory is straight ahead but first let's check in with Bill Thompson in the realistic today in his trip I don't. I Stephen. We've been reporting for several months out here on real estate today about a dangerous computer hacking scheme in which unsuspecting homebuyers have been defrauded by crooks who tricked him into sending their closing cost money to a fake email address. Last year the Federal Trade Commission the National Association of Realtors teamed up to Warren homebuyers of those Phishing attempts will melt. A Washington DC couple has filed a lawsuit. After thieves stole not just their closing costs but almost their entire purchase amounts on one point five million dollars. Larry Finkel berg is a senior mortgage banker with apex home loans he tells Washington's NBC for TV. What he's come predators will do is still basically. Jumping into an email chain. And it'll look like it's coming from the real sure the title company. And a couple days before they're closing they'll say. Well we need to have the wire the money wired to another account the DC couple claims their title company either was negligent in protecting its on the. And security. Or was complicit in the left. The company denies any wrongdoing the national association the real estate brokers is taking steps to reach its goal of creating two million new black homeowners in five years. And treason seventieth anniversary convention the association issued a call to black real estate industry professionals leaders are black churches. Financial services executives social civic organizations. To come together to increase black homeownership. In 2004. African Americans how to homeownership rate of almost 50%. Current black homeownership hovers nationally around 42 point 7% almost back to 1994. Levels. The best metro areas for aging in place. The real for dot com dated team has compiled numbers lots of numbers it turns out to produce a list of the best places to find your forever home. And spoiler alert Florida did not come out on top. Using criteria such as the number of homes already adapted to seniors percentage of resident told with a 65 cost of living number hospitals even the number of sunny days. Real for dot com says. Florence, South Carolina is your best bet. The rest of the top five include Macon Georgia which have a shoe city Arizona vero beach Florida and Texarkana Texas. So much attention has been spent on trying to figure out how to get millennial to buy homes and it turns out. Maybe all we had to do was get an a dog. A news survey conducted by Harris poll on behalf of suntrust mortgage. Finds that 13. Of recent millennial home buyers say the decision to purchase was based on the desire for a larger property with a yard further dog. 33% of the 412 millennial surveyed listed their pat as their top home buying motivation. Only 25% said marriage in 19% said it was the birth of the child. The only factors that millennial ranked higher than dogs as reasons to buy a home. Where the desire for more overall living space and the opportunity to build equity statement. Thanks bill. Continuing now with our special report on the biggest real estate story in America. Inventory. By some estimates were experiencing the worst shortage of homes for sale. In two decades in those homes that do come on the market are often snapped up within days and for way over list price. How can a biter win. Let's ask a pro joining us now is Cheryl Abrams real chore was re Max united real estate in Prince George's County Maryland. Part of the red hot Washington DC real estate market. Sheriffs are realistic pro who is currently serving as the incoming president at the Prince George's County association of real tours. Cheryl welcome to realistic today. Thank you Steve and I'm glad to be here to tell me how is business in Prince George's County Maryland Steven business is our serve our numbers are app. Our minimum housing pricing is apt. We are excited about our market right now however. The one thing that people let's consider is that we don't have a lot of inventory. Says there are multiple offers on properties. And people have you you know did and sometimes over bid to get that offer except. If I'm working with you. Again I wanna find out house. And I don't want brand new necessarily. But I'd like to buy a house that's priced right and in great condition. Will there be competition. They most likely will be competition but what you need to do is make sure that you have an agent like me and I understand the Marquette. And who can put together and stabbing offer that would make you win. What is a savvy offer while still protecting my interest as about it absolutely so really important that you. Octane financing from a good Atlanta Daryn. That will work for your situation. Everybody's situation is different. Some people will opt for you know a 100% financing some people can but it's 1% down some people in the closing help but some people don't. So it's just a matter of making sure that we structure that offer. That works to your benefit. When you're working with fire clients to behalf to try again and again and begin before the get a house or do they get it on the first shot. Some people get it on the first shots Steve and some people want to do you think fairway first. And they gave it. And then the next time we go out. It's a better situation for them now let's go to the other side of the closing table how about the sellers if you're representing a seller in Prince George's County. And all of a sudden there's twelve offers on the kitchen table. How do you help them work through them to understand which one really is best. Well Steven Reid definitely look at the price of course but aside from the price. It depends on the type of financing that that buyer hats that's gonna be beneficial to the seller in addition to and it got that buyer needs Clausen couch. In addition to what that closing date would be so those are most of the factors that sellers take into consideration. When there are electing an offer that works best for them. It must be really wonderful experience for sort of put their house on the market a line of people writing offers. Well back at work when a two way Steven eager to sell everything they can impressed at how tired I. All are they're sitting on a gold mine so you know you've got to get that one of two ways but at the end of the day as long as the sellers happy I'm happy. And ash as the year progresses do you think this lack of inventory. Will become just the way it is for a long long time. Steve and I didn't bring my crystal ball with me today. So unfortunately I cannot answer that question but what I can say is that they're real estate market is constantly changing and we can definitely count on that. Was sure I really appreciate you talking inventory with the civilian talking real estate. In Prince George's County Maryland thank you for joining us on realistic today thank you Stephen Freddie opportunity I appreciate it. Surely Abrams real chore with re Max united realistic in Prince George's County Maryland. And the incoming president at the prince George's carry association. Of reports. Coming up on realistic today in this college town buyers have to sprint to get out. So we can get in the air quickly probably rate offer the same date may be right after seeing the properties and competitive went back with your offer. Thank you have a better chance of getting something. That's next on our special show. The inventory. This isn't real estate today. Because your home nineteen. Your biggest investment. And we are back with our special coast to coast look. Had inventory. There just aren't enough homes for sale in today's market. And so fighters are scrambling to find a house they can call their own. Today we're talking to real tours from all across the country about the winning strategies they share with their clients about how to win. And now we're turning to America's heartland and the home of the University of Iowa Iowa City. Joining us now is Tracy Molina real chore with banking McKim the real estate company in Iowa City. Tracy is a realistic pro who is also serving as the 2018. President. Of them are Iowa City association of real tours. At a recent an error event I asked Tracy about the market in Iowa City. Business is great and I was city we have a booming real estate market. Where college town. And so the east eight insulated cram a lot of economic. It's his second of back to really speak and to be steep pretty content stand in the last few years we've seen a lot of growth. How about inventory are there enough homes for all the fires out. No. Have you don't usually like SES six months inventory perhaps help eat economy we're probably at the read up for a month inventory probably closer to three. And in our area that median home prices probably about two and a half. And any 200000 her last specially and the starter home is busier a lot that we call them that are more than town homes and condos. You're gonna get multiple offers especially in that spring to summer market. And it's a seller's market. So far the first time buyer and I want that starter home and around 200 day and I come to you too. What do you say just take a number we'll get back to you. No this is and that's a reason my you want to use their realtor you want to strip here first time home buyer that you're getting pre approved it that they. You're ready to go you know that you're able to buy that there's not going to be any financing problems. And you work with says realtors as we know when things are coming to the market. And when you're realtors says we need to look at something right away it's not a selling tactic it's the truth. The leaking get in the air quickly probably right offer the same day maybe right after seeing the property eat and competitive with that with your offer. That you have a better chance of getting something. So I'm working with you we find a house that's priced just right and it's in great condition. How quickly do we have to Iraq. Raid away. It probably at that space well writing a full price offer and I areas sometimes we see something a little bit about asking not usually at time. But if it's priced well people have to understand especially first time home buyers. That you're not gonna go in there and try to make a low ball offer it's not gonna work you're gonna be competing against others you always want to play your best abhorrent. Looking at the other side now what about sellers. Big put their house on the market and all of a sudden may have multiple offers. There had much spin with so much information coming out of how do you help us dollar figure it all out. Did question sometimes it doesn't come down to just price sometimes it turns and so we need to find that we talk about that ahead of time what's important to them. May move date because of the job back at the area's gonna require them to move at a certain time. That they don't want to have to admit quite anti look at everything in an offer to meet you counter back. Act in date they have the Howard you know and they go back and decide what to offer is best for that and kind of work went back to get the terms that are best for them. Too many sellers come to UNC Trace. It's a seller's market it's a red hot market for sellers I'm just gonna name my price way up in the sky let's sell it for that. Sometimes I'm glad it doesn't happen and that off then yes sensible and realistic. And I always tell people they should that if you start with a higher list praise and buyers think if I come in with a lower. Offer praise the you're gonna find somewhere in the middle to meet and that's not true. You want to price competitively. Friend Guinea don't want over price yourself because you will sit longer on the market and and in the long rang evil take lasts for the house it is not it it's got. We'll Tracy it's been so nice talking to you today and I hope you have a great 2017. And I hope all your buyers get a consequence. Beat you thanks Steven. Tracy million real tour with banking McKie who the real estate company in Iowa City. And the 2008 team president of the. Coming up on realistic today top strategies for buyers in today's red hot and competitive market. That's next right here on our special show. Inventory. If you're hungry for real estate information and follow real estate today on Twitter. Share segments listen to them again and be the first to know what's on next weeks ago. Just search real estate today on Twitter. Real estate today. Because you love real estate. And we are back for their special show inventory. Taking an in depth look at what it's like to buy sell and own real estate when there aren't enough homes for all the buyers out there. We're going to wrap up today's show with a look at how buyers can make it happen when there in a competitive situation. Now on today's show we've heard solid advice from real estate pros about how some buyers make it while others don't. So let's look at what they had to say. A boy and a get a real sore sure most part or start their house hunting online and it's great. But don't try to go it alone a real tour will have the local market experience. Knowledge and contacts. To help you get the best house at the best priced even in our red hot competitive market. Okay. Step two get preapproved for a mortgage not just pre qualified but pre approved. That means the mortgage lender has crunched the numbers and gone through all your paperwork and said. Yes we will give you a mortgage at this rate. That's huge when it comes to getting a house in a competitive situation. Because sellers wanna make sure you can do to deal and if you're preapproved. They know. If you're not. They don't. Now the only time we do not have to be preapproved. Is well step three. By all cash. I know most of us can't do that but if you can chances are you will win in a competitive situation. If it's not an option room okay but if it is it's a slam dunk in just about every market out there. Step four try to get the home inspected before you write an offer. You'll need permission from the seller's side of course but they'll probably be OK with that. If you do it in the house is good you can make your offer without any home inspection contingency. That could bring your offer to the top of the pile. Speaking of contingencies real towards we'll tell you it's a great idea to write a clean contract. That means make it simple. The right price the right closing date and very little else if you loaded up with contingencies. Things that allow you to walk away. You're contract might end up in the trash bin. Now obviously you wanna protect your interest so talk with your real tore about what's reasonable and what's not in today's competitive market. Step five stay flexible. If the seller wants a different settlement date ask yourself if it really matters. The more you say yes the better chance you have of getting the house you want. OK now let's end up with a reality check prices are going up there's no way around. A 300000. Dollar house might be worth 3151000. A year from now and that's situation is tough for buyers. But let's balance that out with this interest rates are still incredibly low. Low interest rates mean you can buy more house for the money if they go up you might be buying less house. Also in today's market plenty of good home loans are available with a 3%. Down payment good solid loans. So you won't have to save up forever. And plus more lenders are saying okay to lower credit scores that could be good for you also. So for buyers the competition and the rising prices are challenging for sure but you still have a lot in your favor so don't give up. Get in there sidebars are with your real sore. And go for it. Because when you get the best house for the best priced at some of the best interest rates ever. You can say yep that was a tough market but I won. Coming up next week unrealistic today first time investors. You've always thought about investing and realistic but perhaps you didn't know how. Next week will walk you through the process step by step premier first investment to your second and on and off. First time investors is next week right here on realistic today. And remember you can always listen online net radio got real sore. And from all of us here realistic today to thank you for listening. If your realtor you can have the entire reality TV show on your last night. The best real speech on the Radio One 100%. Free to any our members just go to our new web address. Radio dot realtor and click populate.
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