Listing Courtesy of KELLER WILLIAMS REALTY CENTRAL DELAWARE
Last week’s reporting showed the same kind of upward movement that’s become commonplace for Milford real estate investment news watchers. A standout: Corelogic’s finding that national home prices in May increased by 6.3%, marking the 39th consecutive monthly year-over-year increase.
Actually, to a lot of us, that looked stronger than expected: the steady increase in U.S. sale prices had seemed to have leveled off in the 5% range for the most part…Corelogic’s own Chief Economist had prognosticated, “We expect house prices in our national index to be up about 5 percent in the next 12 months” just 30 days ago.
Those who track U.S. real estate investment performance for its Milford implications, two other interesting observations were noteworthy. First, even including distressed sales, prices have now risen to within 8.4% of the April 2006 peak—what is generally considered an unsustainable “bubble.” Yet it’s impossible to find any expert who believes the current price levels are indicative of anything of the kind; nor that the expected continuing rises would expose those making residential real estate investments to equivalent risk levels. Except in a very few localities, there is scarcely any “bubble” speculation to be found—even as national price increases continue to outpace inflation.
Part of the reason is that supply continues to be tight; distressed property sales continue to decline; and overall U.S. economic conditions are perceived to be improving, however gradually. Corelogic also keeps track of sales and momentum for different price ranges, which perform differently, as real estate investment analysts know. The lowest-priced tier, which represents to most modestly priced 25% of homes, has now actually surpassed its pre-crisis peak…and the highest end of luxury residences (the top 25%) are within 5.7% of their peak.
The second point made in last week’s reporting was continuing good news for those whose real estate investment portfolios include rental properties. Apartment vacancy rates “are down to their lowest level since the 1980s” according to Economist Frank Nothaft. “Rents are up, and apartment building values are at or above their prior peaks.”
The robust performance wasn’t confined to multiple-unit housing, either. Following the housing crash—between 2006 and 2013—3,000,000 detached single family homes were added to the nation’s rental stock. They now make up 40% of the market. In terms of their real estate investment performance, the combination of rising rental rates and shrinking vacancy rates are exactly what investors hope to see. For regular homeowners, too—even those with no plans to sell anytime soon—those 39 straight months of steady price appreciation is comforting news. And if you are watching this summer’s Milford real estate listings for the investment opportunities they represent, I hope you’ll give me a Call/Text me Russell Stucki at (302) 228-7871, email me at firstname.lastname@example.org, visit more listings at www.beachrealestatemarket.com.
If you are among this August's consumers who are actively shopping for a home for sale in Sussex County, you have probably already taken a look at the Sussex County listings and most likely jotted down some addresses you’d like to examine in detail. Then, if you find yourself in the happy situation of finding more than one Sussex County home for sale that passes your first in-person tour visit, the tough question arises about how to pick between two or more quality homes. Should you depend upon your emotional leanings—even if a few practical details seem to point you in the opposite direction? Or should you simply let price be the determining factor? Or is there some other criterion the most experienced house hunters rely on?
Of all the factors that could go into that decision, truthfully, pointing out which are the most important is always a subjective exercise (all except for one I’ll bring up last). Here are some of the most useful ones:
o Compare the neighborhoods, and take a close look the adjacent streets. Drive by the properties at different times of the day and at least once on a weekend. See how the neighbors keep their homes. Neglected lawns (or bars on too many windows) are not signs you may want to ignore—just as uniformly well-kept landscaping should count on the positive side.
o Next visit to the candidates, do a consciously thorough walk-over. Pace the perimeter of the home and lot. Look for fencing issues you might need to address, or even how intrusive neighbors’ windows might be. Check for signs of water pooling anywhere on the lot with an eye to whether drainage problems could become an issue when the rains come.
o If there is another home for sale on the street, drive the immediate area looking for more. If there is more than one home for sale, check the web to see if there are too many—or enough that it indicates that values are in flux. If it appears there are many—but no reason other than chance—it could be a good sign that your offer will be very welcome!
What is that less subjective factor (the one I said I’d bring up last)? It’s one that calls for becoming more skeptical than you really are: one that has you pretending to be a member of the public at large who doesn’t feel particularly drawn to either of the homes for sale you are comparing.
Put yourself into that mindset—then judge which of the homes will be easier to sell in a future where you have decided to move on. Deep-six your idiosyncratic leanings, and concentrate on elements that the majority of people would agree are those that add or subtract resale value. Experienced house hunters have bought and sold often enough that they are keenly aware of how much easier it is to sell a home that has universal appeal—even over one that’s more personally attractive. Keeping aware of the personal factors that may make you comfortable but which could adversely affect resaleability will help you determine a property’s future value to others (and, many would argue, that is the real value!)…
This summer, we’re fortunate to have a market that offers many Sussex County homes for sale offering exceptional value. I hope you’ll give me a call to help find your family’s next home! Call/Text me Russell Stucki at (302) 228-7871, email me at email@example.com, visit more listings at www.beachrealestatemarket.com.