The Best Appliance Trends of the Year 

 

 

Written by Ashley Sutphin Posted On Wednesday, 29 March 2023 00:00

The last year-and-a-half has been focused on home design. The pandemic has led people to spend more time in their homes than maybe they ever envisioned, and that’s meant a lot of home renovation projects.

Many people are focused on really making their homes completely their own, and that includes when it comes to their kitchen appliances.

With that in mind, the following are some of the appliance trends that are popular right now and can quickly turn your kitchen into your favorite room.

Customizable Refrigerator Doors

Samsung recently debuted a beautiful appliance in their 4-Door Flex Refrigerator. The refrigerator has customizable door panels. You can choose between classic colors like black and unexpected options like pink glass and navy blue glass. There are a total of eight color options, and you can mix and match each of the front panels on the front of the refrigerator.

In addition to being a chic, statement-making appliance, the refrigerator also has five cooling zones, an auto-filled water pitcher, and a complete beverage zone.

There’s another way you can customize your appliances too with BlueStar By Design. BlueStar has a reputation for color-matching appliance finishes, but now you can work with the company to fully customize your refrigerator and range with any graphic.

Hidden Appliances

While some people prefer that their appliances make a statement right now, for other people, they want them hidden altogether. Appliances are increasingly being included in kitchen designs in an integrated, hidden way.

There are a number of appliances being developed that are panel-ready.

Even in kitchens where appliances aren’t fully hidden, a lot of people are opting to put them under their counters to give them more countertop space and make them less prominent.

Professional-Grade Ranges

Since 2020 and into 2021 has given people a lot more opportunities to cook at home, whether they wanted to or not, it makes sense that there’s a growing interest in professional-grade appliances and, in particular, ranges.

For example, Signature Kitchen Suite has a collection of new professional-grade ranges with modalities that include a steam oven, induction, and sous vide.

Decorative Range Hoods

There seems to be a general trend in home design that’s focused on self-expression and doing what feels right for you. With that comes the desire to include a decorative range hood in kitchen design. That might mean something sculptural or colorful, for example, rather than the typical stainless steel range hood.

These hoods can be custom-designed in terms of not only materials and façade but additional features like lighting and dimmer switches.

The Use of Steam

Steam isn’t just popular for ranges and cooking. Appliances are increasingly using vapor to clean. For example, LG has their new QuadWash dishwasher with a TrueSteam feature. This feature can loosen any food that is still on a dish and it can also help reduce water spots.

The SuperSteam built-in wall oven from Sharp heats up at high temperatures so you can grill food without smoke.

At-Home Bars

Whether it’s a coffee bar or a cocktail bar, you might be interested in bringing a bit of the outside world into your kitchen.

Some people are adding wine refrigerators and even wine dispensers. The Dacor company has an integrated wine dispenser that lets you store four open bottles for up to 60 days. Bartesian has cocktail makers that go onto your countertop and create the perfect libation.

As people return to entertaining, a lot of these appliance trends are likely to continue serving them well.

Baby Boomers Overtake Millennials as Largest Generation of Home Buyers (NAR)

 

Written by National Association of Realtors Posted On Tuesday, 28 March 2023 07:37

The share of baby boomers has surpassed millennials and now makes up the largest generation of home buyers, according to the latest study from the National Association of Realtors^®.

The 2023 Home Buyers and Sellers Generational Trends report, which examines the similarities and differences of recent home buyers and sellers across generations¹, found that the combined share of younger boomer (58 to 67 years old) and older boomer buyers (68 to 76 years old) rose to 39% in 2022, up from 29% the year prior. Younger millennials (24 to 32 years old) and older millennials (33 to 42 years old) have been the top group of buyers since 2014, but they saw their combined share fall from 43% in 2021 to 28% last year.

“Baby boomers have the upper hand in the homebuying market,” said Dr. Jessica Lautz, NAR deputy chief economist and vice president of research. “The majority of them are repeat buyers who have housing equity to propel them into their dream home – be it a place to enjoy retirement or a home near friends and family. They are living healthier and longer and making housing trades later in life.”

Twenty-six percent of all buyers were first-time buyers, the lowest since NAR began tracking the data and a decrease from 34% last year. Seventy percent of younger millennials and 46% of older millennials were first-time buyers. Behind these groups, only 21% of Generation X (43 to 57 years old) and 9% of younger boomers were first-time purchasers.

Generation Z – ages 18 to 23 – now makes up 4% of home buyers, a slight increase from 2% in 2021. Nearly one in three Gen Z buyers – 30% – moved directly from a family member’s home into homeownership. Finding a location convenient to friends and family was most important to this cohort of buyers.

“As the youngest generation of home buyers and sellers, it’s encouraging to see Gen Z entering the market,” Lautz said. “Their desire for homeownership is strong, and many are relying on family support systems to help make their first real estate purchase.”

Generation X made up 24% of total buyers. They had the highest median household income of any generation ($114,300), followed by older millennials ($102,900).

In addition to leading the way in home buying, baby boomers remained the largest home seller generation, jumping from 42% in 2021 to 52% in 2022. Among all generations, sellers typically remained in their home for 10 years before selling, up from nine years last year. On average, younger millennials stayed in their homes for four years, while older boomers sold their homes after 16 years.

All generations agreed that the most common reason to sell was to be closer to friends and family. Older generations were also more likely to sell due to retirement, while younger generations cited the desire for a larger home and job relocation as top reasons to sell their home.  

On average, people are moving farther distances. Overall, buyers moved a median of 50 miles when relocating, the highest ever recorded and up significantly from 15 miles last year. Younger generations moved shorter distances, with younger and older millennials each typically moving 15 miles away. Younger boomers moved the furthest (90 miles), followed by older boomers (60 miles) and the silent generation (50 miles).  

Overall, buyers expected to live in their homes for 15 years, up from 12 years in 2021. For younger millennials, the expected duration was only 10 years, compared to 20 years for younger and older boomers. Surprisingly, Generation Z expected to remain in their newly purchased home for 19 years.

Eighty-six percent of all buyers purchased their homes through a real estate agent. This number was highest among younger boomers (90%) and Generation X (88%). Buyers from all generations agreed about the top reasons for using an agent: they wanted help finding the right home to purchase (49%), negotiating the terms of sale (13%) and negotiating the price (11%). Younger (14%) and older (12%) millennials were most likely to want their agent to help with paperwork.

Eighty-eight percent of all buyers reported that they view a home purchase as a good investment. Seventy-four percent of younger millennials and 77% of older millennials viewed a home as better than or about as good a financial investment as stocks.

Seventy-six percent of buyers said that they would use their agent again or recommend their agent to others, a number that was consistent across all generations.

“Owning a home is more than just a financial investment. It’s a symbol of stability, independence and community that helps people build their lives and achieve their dreams,” said NAR President Kenny Parcell, a Realtor^® from Spanish Fork, Utah, and broker-owner of Equity Real Estate Utah. “Whether you’re a first-time home buyer or an experienced investor, Realtors^® have the expertise and knowledge needed to provide valuable advice and help you make informed decisions about your purchase.”

Methodology

NAR mailed a 129-question survey in July 2022 using a random sample weighted to be representative of sales on a geographic basis to 153,045 recent home buyers. Buyers had to have purchased a primary residence home between July 2021 and June 2022. A total of 4,854 responses were received from primary residence buyers. After accounting for undeliverable questionnaires, the survey had an adjusted response rate of 3.2%.

All information in this profile is characteristic of the 12-month period ending June 2022, with the exception of income data, which are reported for 2021. In some sections, comparisons are also given for results obtained in previous surveys. Not all results are directly comparable due to changes in questionnaire design and sample size.

 The National Association of Realtors^® is America’s largest trade association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industries. The term Realtor^® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of Realtors^® and subscribes to its strict Code of Ethics.

# # #

¹ Survey generational breakdowns: Generation Z: (ages 18-23); younger Generation Y/millennials (ages 24-32); older Generation Y/millennials (ages 33-42); Generation X (ages 43-57); younger boomers (ages 58-67); older boomers (ages 68-76); and the Silent Generation (ages 77-97).

 

 

How Do Mechanic’s Liens Work?

 

Written by Ashley Sutphin Posted On Monday, 27 March 2023 00:00

 

A mechanic’s lien has nothing to do with a mechanic, so the name can be a little misleading. Instead, these are legal claims that a contractor, subcontractor, or supplier can place against a property if they haven’t gotten paid for work they’ve done. If someone is working on remodeling or building a house, a mechanic’s lien is a form of recourse to protect themselves and ensure they get paid.

For a homeowner, unfortunately, a mechanic’s lien can be placed on their house even if they make all the necessary payments. If you, for example, have a general contractor who doesn’t pay their supplier or subcontractor, that person can put a lien against your house to get their money.

When you’re the homeowner, you can become responsible for the payments if anyone’s not paid.

You might have paid your general contractor for something, only to have them not pay a subcontractor or supplier the money you gave them. It doesn’t matter because typically, under the law, you can be responsible if something isn’t paid involving the property that was improved.

The Process of a Mechanic’s Lien

State law requires subcontractors or suppliers to take certain steps to get a mechanic’s lien. The claimant has to notify you if you’re the homeowner of what they’re contributing, usually within 20 to 30 days of the contribution being made. For example, if you’re remodeling your bathroom, maybe the supplier gives you notice that they’re providing the materials for a new shower.

Then, if the subcontractor or supplier doesn’t get paid, they file a claim for a mechanic’s lien in the county where your house is. From there, the subcontractor or supplier has two to six months, in most instances, to try to come up with a solution with you as the homeowner, or they can file a lawsuit.

Most states won’t let the subcontractor or supplier take further action if the lawsuit is not filed within a particular window. Even if there’s not a lawsuit, you still should clear the lien from your property through a court order because it can be hard to sell it later on if you don’t.

Isn’t This Unfair?

One of the biggest questions homeowners often have about mechanic’s liens is how they’re even allowed. It can seem incredibly unfair to have to pay more because you have a general contractor who doesn’t do what they’re supposed to and isn’t paying people.

Unfortunately, the legal theory is that you have the improved property, so the needs of paying the person who did the work to improve it are the priority.  

There’s also a presumption under the law that you can sue the general contractor if you face a situation like this.

While that holds in the long term, it might not benefit you in the short term. It does take time and money to file a lawsuit against a general contractor, and sometimes they don’t have sufficient assets to cover whatever your judgment might end up being.

Can You Avoid Mechanic’s Liens?

If you know the risks of having a mechanic’s lien against your home, you can proactively prevent it.

• You can write out checks jointly to your general contractor and specific suppliers or subcontractors, meaning they can only be cashed if both endorse them.
• You can get a lien waiver, which the contractor can put into your contract. This means you aren’t responsible for paying whoever the contractor should pay.
• You can directly pay subcontractors and suppliers and then deduct these payments from what you end up paying your general contractor. This isn’t the best option, though, because it puts you into an employer role, and you’d have to deal with withholding taxes.

 

Whenever you hire a contractor, keep up with all your contracts, paperwork, receipts, and notices of services or goods that go toward your project. You may need them if you’re going to follow up and make sure everyone got paid.

While it’s less common, a general contractor can also file a mechanic’s lien in most states, but they’ll have to follow the same processes as subcontractors or suppliers.

If you have a lien on your property, you could be prevented from taking out a loan on it or selling it. If you’re in a situation where you already have a mechanic’s lien against your property, you should likely talk to a real estate attorney. You could even consult a legal professional before hiring a contractor to do any work on your home to ensure you’re protected in the best ways possible.

 

Redfin Reports Spring Homebuying Season Kicks Off With Steady Demand, But Lack of Listings Holds Back Sales 

 

Written by Redfin Posted On Friday, 24 March 2023 09:08

This week’s news that the Fed is modestly hiking interest rates and may pause them sooner than anticipated brought mortgage rates down for the second week in a row, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

Overall, the Fed’s announcement doesn’t change Redfin’s overall housing-market outlook for this spring; mortgage rates are likely to temporarily decline but not plummet, and demand is likely to swing up and down based on fluctuations in rates and availability of homes on the market.

“We’re not seeing the typical spring seasonal increase in business,” said Boise Redfin agent Shauna Pendleton. “There’s no seasonality; homebuyers and sellers are hyper-focused on mortgage rates. If rates end the week down, all of a sudden buyers are out there making offers. If rates end the week high, buyers disappear.”

This week, demand ticked up as declining mortgage rates brought buyers some relief. Average daily rates dropped from 6.75% to 6.45% after the Fed’s announcement and the average weekly rate dipped to 6.42%, bringing the typical U.S. homebuyer’s monthly housing payment down from the peak it reached two weeks ago. Mortgage-purchase applications are up 17% from a month ago after increasing for the third straight week, and the number of homebuyers contacting Redfin agents for tours and other services rose this week.

But prospective buyers are struggling with tight supply, as sellers are typically slower to return than buyers. New listings of U.S. homes for sale fell 22% from a year earlier during the four weeks ending March 19, one of the biggest declines since the housing market nearly ground to a halt in the beginning of the pandemic (new listings fell slightly more in December 2022). Many would-be sellers are reluctant because they want to hang onto a low mortgage rate—nearly all homeowners have a rate under 6%—and because they’re also buyers struggling with low inventory.

Because there’s so little to choose from, homebuying speed is picking up even while rates stay high and demand remains low compared with last year. Nearly half of homes that went under contract had an accepted offer within two weeks of hitting the market, the highest share since June. That’s partly due to typical seasonality, as the market usually picks up speed as spring starts, but lack of inventory is causing homes to sell faster than expected when buyers are contending with 6%-plus rates.

Competition could pick up more as we enter spring if mortgage rates stay closer to 6% than 7%, which is more likely after the Fed’s announcement.

“The banking-industry chaos of the last few weeks likely prevented the Fed from making a big, inflation-fighting hike this week that could have sent mortgage rates soaring,” said Redfin Chief Economist Daryl Fairweather. “They kept the hike small partly because banking turmoil naturally combats inflation. As a result, the housing market is in a better place now than it was a few weeks ago.”

“Mortgage rates are unlikely to increase again unless the next inflation report is worse than expected,” Fairweather continued. “Sidelined buyers should be on high alert in the coming days and weeks, which could offer a window to lock in a rate closer to 6% than 7%.”

Leading indicators of homebuying activity:

• For the week ending March 23, average 30-year fixed mortgage rates dropped to 6.42%. The daily average was 6.44% on March 23.
• Mortgage-purchase applications during the week ending March 17 increased 2% from a week earlier, seasonally adjusted. Purchase applications were down 36% from a year earlier.
• Google searches for “homes for sale” were up about 48% from the trough they hit in December during the week ending March 18, but down about 13% from a year earlier.
• Touring activity as of March 18 was up about 18% from the start of the year, compared with a 23% increase at the same time last year, according to home tour technology company ShowingTime.
•  

• Key housing market takeaways for 400+ U.S. metro areas:

  Unless otherwise noted, this data covers the four-week period ending March 19. Redfin’s weekly housing market data goes back through 2015.

  • The median home sale price was $358,420, down 1.7% from a year earlier. That’s the fifth week in a row of prices declining annually after more than a decade of increases. The latter is according to Redfin’s monthly dataset, which goes back through 2012.
  • Median sale prices fell in 24 of the 50 most populous U.S. metros, with the biggest drops in northern California. San Jose, CA (-14.5% YoY) experienced the biggest decline, followed by San Francisco (-13.6%), Austin, TX (-12.7%), Oakland, CA (-11.3%) and Sacramento, CA (-10.7%). That’s the biggest sale-price drop since at least 2015 for San Francisco, Austin, Oakland and Sacramento.
  • Sale prices increased most in West Palm Beach, FL (12.7%), Milwaukee (11.3%), Fort Lauderdale, FL (10.6%), Virginia Beach, VA (7.3%) and Miami (6.7%).
  • The median asking price of newly listed homes was $388,948, up 1% year over year.
  • The monthly mortgage payment on the median-asking-price home was $2,518 at a 6.42% mortgage rate, the current weekly average. Monthly mortgage payments are down slightly from the peak they reached two weeks ago, but up 19% ($410) from a year ago.
  • Pending home sales were down 17% year over year, the biggest decline in nearly two months.
  • Pending home sales fell in all 50 of the most populous U.S. metros. They fell most in Las Vegas (-54.2% YoY), Sacramento (-49.6%), Seattle (-47.3%), Portland, OR (-46.5%) and Riverside, CA (-45.2%).
  • New listings of homes for sale fell 21.9% year over year, the biggest decline since the start of the pandemic with the exception of mid-December 2022.
  • New listings declined in all but one of the 50 most populous U.S. metros, with the biggest declines in Sacramento (-48.6%), Oakland (-45.3%), San Francisco (-43.2%), San Jose (-41.6%) and San Diego (-41.3%). They increased 1.3% in Nashville, TN.
  • Active listings (the number of homes listed for sale at any point during the period) were up 15.4% from a year earlier, the smallest increase in more than three months.
  • Months of supply—a measure of the balance between supply and demand, calculated by the number of months it would take for the current inventory to sell at the current sales pace—was 2.9 months, down from 3.7 months a month earlier and up from 1.9 months a year earlier.
  • 46% of homes that went under contract had an accepted offer within the first two weeks on the market, the highest level since June, but down from 54% a year earlier.
  • Homes that sold were on the market for a median of 43 days. That’s up from 26 days a year earlier and the record low of 18 days set in May.
  • 25% of homes sold above their final list price, the highest share in more than three months but down from 48% a year earlier.
  • On average, 4.8% of homes for sale each week had a price drop, up from 2.1% a year earlier.
  • The average sale-to-list price ratio, which measures how close homes are selling to their final asking prices, was 98.5%, the highest level in four months but down from 101.5% a year earlier.

  To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-new-listings-mortgage-rates-decline

 

Hot Outdoor Living Products for This Spring

 

Written by Connie Adair Posted On Wednesday, 22 March 2023 00:00

It’s never too early to start planning and shopping for products to create the outdoor living space of your dreams. Here are some anticipated hot trends for spring/summer 2021 shared by Lydia Thammavong, marketing specialist, styles and trends at Lowes Canada in Montreal.

You may want to consider incorporating these trends now before the products sell out as they did last year.

Fire pits: By the end of last summer, even before the cooler evenings of fall, backyard fire pits were sold out. People scooped them up because they wanted to extend the time they could spend outside. Buying a fire pit now will help you enjoy the backyard earlier this spring, as well as later into the fall.

Fire pits come in a variety of shapes and sizes, from more traditional round versions to long and low rectangles with a modern vibe. There are high and low profiles, and even some that look more like lanterns.

Outdoor kitchens: People want to do everything that they can do inside, outside, so outdoor kitchens are expected to be a big hit this season. For those who are handy, a DIY kitchen can be built for less than $2,000.

Barbecues and smokers: In addition to cabinetry, outfitting the outdoor kitchen includes barbecues, from charcoal to natural gas and everything in between. Go with traditional black, a vibrant colour or stainless steel, in a variety of shapes and sizes suited to any backyard. While you’re at it, check out the “connected barbecue”, which lets you control the temperature from your phone.

And expected to be popular this season is the pizza oven, which lets people bake their bread outdoors and to expand their culinary skills to pizza.

Pools: Above-ground pools sold out last summer, so pick one up for the kids now. For something more adult-friendly, there are smaller inground pools a little bigger than a whirlpool tub that are great for just sitting in to cool off.

Sheds: If you have a pool, you need to have a place to store related items, so check out sheds. Aluminum versions are fine for tools, but if you want a shed that can double as a summer-time office or cabana, check out wood sheds with double doors that allow the space to open to the outdoors.

Furniture: Consider the functionality of furniture, as well as the look, feel and design. For small spaces, look for pieces with concealed storage and sectionals that integrate tables as part of their design. Seating with wide arm rests are great places to rest a glass of wine or an iPad. One coffee table lifts up to a comfortable eating height so there’s no need for a dining table and chairs.

Many people watch television or movies under the stars, so ensure the furniture is extra comfy.

Pergolas: Sun shelters, big or small, offer protection from glaring rays.

Along with standard sizes, a new product, Tojagrid, lets people build their own custom-sized pergola. They can be compact and super functional for smaller spaces. Curtains provide some privacy and keep bugs at bay.

Privacy: Privacy screens and kits create products that are functional and attractive. Garden walls, the vertical trend in garden décor, trellises and metal grids with plants growing on them also create privacy. Going vertical with garden walls saves space, is decorative and creates privacy.

Plants: Plants, whether decorative or edible, were hugely popular last year during the pandemic and will continue to be so this year. Many stores have ordered ample seed packets and plants to accommodate the rush.

Greenhouses and rain barrels: As people continue to want to grow their own food, small greenhouses will grow in popularity. If you have extra space and want a larger harvest, you may want to go with a walk-in size. For more compact spaces, there are versions that consist of covered shelves. 

Water barrels are popular with eco-conscious people who use the rainwater for their gardens.

Water features: Fountains and waterfalls come in large stand-alone versions as well as small designs suited to tabletops. The sound of water drowns out unwanted noise and adds a Zen feeling to the space.

Lighting: In order to stay outside after sundown, and to create mood, there’s an assortment of outdoor lighting. Coloured LED lights, popular with teenagers for their bedrooms, are now available for use outdoors. They also come in more adult-friendly versions that can be used under the bar counter and in planters for ambiance. There are lights on strings, garden lights to laminate the path edges and an umbrella with integrated lighting.

For the birds: For those who want a little nature, bird baths and feeders are also expected to be popular.

Not to be forgotten: The front porch also adds more outdoor space. Dress it up with curtains on the sides for privacy and everything from single seating to sectionals. Thammavong says she likes the ball-shaped rattan chair on feet that offers a modern boho vibe.

Last but not least: Customize your space with style, colour and accessories, from placemats to dishware to planters and outdoor carpeting. Make it your own and enjoy.

 

Existing-Home Sales Surged 14.5% in February, Ending 12-Month Streak of Declines (NAR) 

 

Written by National Association of Realtors Posted On Tuesday, 21 March 2023 07:14

Existing-home sales reversed a 12-month slide in February, registering the largest monthly percentage increase since July 2020, according to the National Association of Realtors^®. Month-over-month sales rose in all four major U.S. regions. All regions posted year-over-year declines.

Total existing-home sales,^[i] https://www.nar.realtor/existing-home-sales – completed transactions that include single-family homes, townhomes, condominiums and co-ops – vaulted 14.5% from January to a seasonally adjusted annual rate of 4.58 million in February. Year-over-year, sales fell 22.6% (down from 5.92 million in February 2022).

“Conscious of changing mortgage rates, home buyers are taking advantage of any rate declines,” said NAR Chief Economist Lawrence Yun. “Moreover, we’re seeing stronger sales gains in areas where home prices are decreasing and the local economies are adding jobs.”

Total housing inventory^[ii] registered at the end of February was 980,000 units, identical to January and up 15.3% from one year ago (850,000). Unsold inventory sits at a 2.6-month supply at the current sales pace, down 10.3% from January but up from 1.7 months in February 2022.

“Inventory levels are still at historic lows,” Yun added. “Consequently, multiple offers are returning on a good number of properties.”

The median existing-home price^[iii] for all housing types in January was $363,000, a decline of 0.2% from February 2022 ($363,700), as prices climbed in the Midwest and South yet waned in the Northeast and West. This ends a streak of 131 consecutive months of year-over-year increases, the longest on record.

Properties typically remained on the market for 34 days in February, up from 33 days in January and 18 days in February 2022. Fifty-seven percent of homes sold in February were on the market for less than a month.

First-time buyers were responsible for 27% of sales in February, down from 31% in January and 29% in February 2022. NAR’s 2022 Profile of Home Buyers and Sellers – released in November 2022^[iv] – found that the annual share of first-time buyers was 26%, the lowest since NAR began tracking the data.

All-cash sales accounted for 28% of transactions in February, down from 29% in January but up from 25% in February 2022.

Individual investors or second-home buyers, who make up many cash sales, purchased 18% of homes in February, up from 16% in January but down from 19% in February 2022.

Distressed sales^[v] – foreclosures and short sales – represented 2% of sales in February, nearly identical to last month and one year ago.

According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.60% as of March 16. That’s down from 6.73% from the previous week but up from 4.16% one year ago.

Single-family and Condo/Co-op Sales

Single-family home sales soared to a seasonally adjusted annual rate of 4.14 million in February, up 15.3% from 3.59 million in January but down 21.4% from the previous year. The median existing single-family home price was $367,500 in February, down 0.7% from February 2022.

Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 440,000 units in February, up from 410,000 in January but down 32.3% from one year ago. The median existing condo price was $321,000 in February, an annual increase of 2.5%.

“Owning a home provides a path to long-term financial security and is a vehicle by which to transfer wealth to future generations,” said NAR President Kenny Parcell, a Realtor^® from Spanish Fork, Utah, and broker-owner of Equity Real Estate Utah. “Realtors^® deliver expert guidance, objectivity and professionalism to consumers during the complex process of purchasing a home.”

Regional Breakdown

Existing-home sales in the Northeast improved 4.0% from January to an annual rate of 520,000 in February, down 25.7% from February 2022. The median price in the Northeast was $366,100, down 4.5% from the previous year.

In the Midwest, existing-home sales grew 13.5% from the previous month to an annual rate of 1.09 million in February, declining 18.7% from one year ago. The median price in the Midwest was $261,200, up 5.0% from February 2022.

Existing-home sales in the South rebounded 15.9% in February from January to an annual rate of 2.11 million, a 21.3% decrease from the prior year. The median price in the South was $342,000, an increase of 2.7% from one year ago.

In the West, existing-home sales rocketed 19.4% in February from the prior month to an annual rate of 860,000, down 28.3% from the previous year. The median price in the West was $541,100, down 5.6% from February 2022.

The National Association of Realtors^® is America’s largest trade association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industries. The term Realtor^® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of Realtors^® and subscribes to its strict Code of Ethics.

 

^[i] Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings from Multiple Listing Services. Changes in sales trends outside of MLSs are not captured in the monthly series. NAR benchmarks home sales periodically using other sources to assess overall home sales trends, including sales not reported by MLSs.

Existing-home sales, based on closings, differ from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which account for more than 90% of total home sales, are based on a much larger data sample – about 40% of multiple listing service data each month – and typically are not subject to large prior-month revisions.

              The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.

              Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos.

^[ii] Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982 (prior to 1999, single-family sales accounted for more than 90% of transactions and condos were measured only on a quarterly basis).

^[iii] The median price is where half sold for more and half sold for less; medians are more typical of market conditions than average prices, which are skewed higher by a relatively small share of upper-end transactions. The only valid comparisons for median prices are with the same period a year earlier due to seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if additional data is received.

The national median condo/co-op price often is higher than the median single-family home price because condos are concentrated in higher-cost housing markets. However, in a given area, single-family homes typically sell for more than condos as seen in NAR’s quarterly metro area price reports.

^[iv] Survey results represent owner-occupants and differ from separately reported monthly findings from NAR’s Realtors^® Confidence Index, which include all types of buyers. The annual study only represents primary residence purchases, and does not include investor and vacation home buyers. Results include both new and existing homes.

^[v] Distressed sales (foreclosures and short sales), days on market, first-time buyers, all-cash transactions and investors are from a monthly survey for the NAR’s Realtors^® Confidence Index, posted at nar.realtor.

How Do You Make an Offer On a House? 

 WRITTEN BY ASHLEY SUTPHINPOSTED ONSUNDAY, 19 MARCH 2023 00:00 

 

 

  How Do You Make an Offer On a House? Deciding to buy a house is huge—it’s one of the most significant investments you’ll ever make, if not the biggest. You search for the perfect home, and when you think you’ve found it, the next step is to make an offer. What exactly does making an offer entail? Before You Make An Offer First, you should have a few things in place before you make an offer. One is a mortgage preapproval from a minimum of one lender. If you get preapproved, it helps you know how much house you can actually afford. The preapproval letter also shows sellers you’re serious. 

Then, you need to understand the local market to make sure your offer is competitive. Your real estate agent will be able to help you with this. 

The third thing to have in place before you make an offer is making sure that you have the down payment in the bank and ready. 

Once the three things above are ready to go, then you’ll start to determine your price, contingencies, and your timeline. If you’re buying in a competitive market, you should ask your agent how you can make your offer as competitive as possible. 

 Common contingencies that might be included in your written offer include:

   • Final loan approval—this means that your purchase of the home is contingent on your getting the mortgage within a certain amount of time.

   • Appraisal—A lender is typically going to require an appraisal to verify the value of a home. A lender doesn’t want to take on unnecessary risk by lending you more than what the home is worth. 

   • Inspection— You might include a contingency requiring that the home undergo an inspection, and you could outline how issues are dealt with if they’re discovered. 

   • Home sale—In this situation, if you have a home already and your purchase depends on you selling it first, then you might add this as a contingency. 

 To leave room to negotiate, it can be a good idea to make an initial offer below the maximum price you can pay. Contingencies can include things like appraisals and inspections. 

Submitting An Offer 

Once you’ve worked out the specifics of what you’re going to offer, your real estate agent will draft a purchase and sale agreement. You’ll look it over and sign it before it’s submitted.

If you’re making an offer that’s way off from the home's asking price, your real estate agent should include a letter highlighting why, such as the findings of a competitive market analysis. The agent for the seller is legally required to provide any offer to the seller. 

An offer letter will include not only the price you’re offering but the amount of earnest money and down payment you’ll pay if you’re preapproved for a mortgage and a breakdown of who’s responsible for paying what closing costs. 

The offer letter may also have information about the sale of your current home, if relevant, and the expiration date of your offer. 

In a competitive market, you might also include a handwritten note to the buyer letting them know why you hope to buy their house. 

Negotiating 

Once a seller gets your offer, they might accept it as-is, decline it or counter it, in which case you begin negotiating. 

 Along with negotiating on price, there are other ways that you can leave some room for negotiation. For example, going easy on contingencies is going to make your offer more competitive. If you can pay cash, that’s always going to get the attention of a buyer. 

Your agents should handle the negotiations. 

Once negotiations reach a conclusion, the deal is done when you and the seller sign the purchase offer agreement. From there, you move onto the complete mortgage application process.