Hot on the Market: 25+ Real Estate Trends
05/31/2017 04:30PM, Published by Style, Categories: In Print
Photo by Glenn Rose Photography.
No matter your real estate goals—buying, selling, investing, etc.—it’s key to know the state of the market. To help us nail down the trends taking the industry by storm, we asked area pros for their expertise. Read on for the findings.
Connie Barnes, RE/MAX Gold, 4359 Town Center Boulevard, Suite 311, El Dorado Hills, 916-541-9600, conniebarnes.com
Voted “Favorite Real Estate Agent” four years in a row in Style Magazine’s Readers’ Choice Awards, Connie Barnes’ philosophy has always been to “over-deliver” by providing professional photography, staging advice and commercial-quality video to attract buyers from across the country and help clients achieve their real estate objectives.
“The most significant trend I have noticed is the lack of available inventory. We have clients who want to sell and stay in the area but are concerned they won’t be able to find a home that they like.”
“Single-level homes are in demand by homebuyers seeking to downsize, and well-appointed, one-story homes sell quickly. The last three we had listed in El Dorado Hills sold in less than a week. In this region, single-level homes typically stay on the market, on average, for about 33 days, compared to 62 days it takes to sell multi-level homes.”
“Homes that are turn-key and move-in ready are preferred by busy professionals, since they don’t have time to paint, replace carpet etc. and are usually willing to pay to get the right house with the amenities they demand. Also, wood floors are in; carpet is out.”
“Aerial drone photography has literally taken off in real estate photography. The technology continues to advance, making it easy to capture stunning images or HD video of a property from the sky. The FAA has relaxed restrictions on commercial drone operators, but they do require pilots to pass an unmanned aircraft operators test.”
“The emergence of virtual reality (VR) technology, such as headsets, will likely affect real estate marketing in the future. Facebook has bet big on it—buying start-up Oculus, the maker of the Oculus Rift headset, for $2 billion. VR gives the user the feeling of being in the location; it’s only natural that someday homebuyers could visit a real estate broker’s office and tour a dozen homes using a VR headset.”
Ricky O’Neal, Keller Williams Realty, 2295 Iron Point Road, Suite 160, Folsom, 916-235-7045, martelloneal.com
As a project manager for a successful land use planning and development consulting firm, Ricky O’Neal has been heavily involved in numerous housing development projects all throughout El Dorado, Sacramento and Placer Counties with expertise along the Highway 50 Corridor. Additionally, he’s been a small business owner since 1996, allowing his diverse and vast personal network to expand—an experience that enables him to fulfill real estate needs with ease.
“Buyers should know what their purchasing power is and how interest can affect this. On average, every one percent the interest rate increases, a buyer’s purchasing power drops 10 percent. Interest rates are on the rise and expected to go up this summer. If you’re on the fence and see a home that fits your criteria, it wouldn’t hurt to get a pre-approval and get the process going or at least start to explore your options.”
“Understanding purchasing power also has a direct correlation with sellers. Inventory is still low in many areas. The value of your home today could be drastically different if the interest rates change and purchasing power drops 10 percent for buyers. Even though many homes may still be going up in value, the pool of buyers could shrink significantly, keeping homes on the market for longer.”
Jessica Horton, Better Homes and Gardens Real Estate, 925 Highland Pointe Drive, Suite 140, Roseville, 916-505-3545, jessicahortonrealestate.com
As a resident of Placer County and the surrounding region for over 15 years, Jessica Horton has become an area expert who’s passionate about her business and loves providing quality customer service. From buying to selling, and everything in between, she’s dedicated to providing clients with peace of mind and a seamless move into their dream home or investment property.
“There are fewer homes on the market, which means it’s a great time to sell. Homes are selling quickly because the ‘for sale’ inventory is very low.”
“Interest rates are going up. Rates have risen and will continue to rise, but they are still very low. Check with your preferred lender for the current rates, as they are always changing. You can lock your rate in now and start looking.”
“Multi-generational homes are in demand. Many buyers want their parents or family members to live with them so are looking for homes with guest houses or in-law quarters.”
“I see many families unloading their two-story homes for smaller, single-story ones. To fill the demand, homebuilders are producing more single-story homes.”
THE REALTOR ADVANTAGE
There probably aren’t too many activities more confusing than purchasing property. The combination of most purchase contracts, addendums, disclosures, lending paperwork, inspections, title and escrow documents would make a book the size of Gone with the Wind look like a pamphlet in comparison. Enter professional real estate agents, brokers and associate brokers. These experts keep up on the sales and prices for each neighborhood where they work. Many times, the latest information on homes that have sold and closed is not available to the public right away, and the “sold” price is the price you want to see before putting your home on the market or making an offer on a home. With so many variations for each purchase contract, it simply makes sense to talk with a real estate professional.
• Price offered/price accepted
• Amount of deposit/earnest money
• Which inspections does the buyer need to pay for?
• Which inspections does the seller need to pay for?
• Who pays for the repair work?
• Who pays the agent/broker/associate broker?
• What are the time periods for the inspections?
• When do financing arrangements need to begin?
• How do “contingencies” slow down the sale?
• How is the itemization of fees associated with the sale determined?
• What is an “arbitration clause for dispute resolution” and/or liquidated damages clause?
• What happens if an offer is “countered” or if you should “counter” an offer?
• When does the offer become legally binding?
• How can a real estate agent, associate broker or broker protect you when purchasing a home in a new home subdivision?
• What is the difference in purchasing a lot to build a custom home and purchasing a semi-custom home that is already complete?
• Are there different considerations when purchasing residential income property?
• How and when do I set up my 1031 exchange on my income property that I have on the market?
Reprinted with permission from the Placer County Association of Realtors’ (PCAOR) website.
Cheryl Jones, Cheryl Jones Real Estate and Loans, Rocklin, 916-626-2794, facebook.com/ahome4you2
Cheryl Jones—who’s been a real estate investor for over 12 years and a licensed realtor since 2014—is active in the community and believes “the client is king.” Business hours or not, she’s always available to assist, and loves being able to show properties and provide the funds needed to close a deal.
“Real estate investors will see opportunities in foreclosures and short sales. There are still over 2,500 homes in the area that fall into that category.”
“Investing in Downtown Sacramento is an excellent choice if you’re a business owner looking for retail space. The Golden 1 Center has raised its ‘golden wand’ all over the area, and its presence has forged a new beginning for the once-flailing downtown economy. If you’re fortunate enough to have the capital now, it’s a great place to see real estate values soar in the coming months—not years. Overall, Sacramento remains one of the hottest markets nationwide.”
“In the U.S., we remain attractive for foreign investors. This is especially true when it comes to real estate investing. The most prevalent countries inflowing their investment dollars are China, Canada, Norway and Singapore. In 2015, foreign purchases of U.S. real estate toppled at $87 billion, according to the Association of Foreign Investment in Real Estate (AFIRE). Changing policies, such as the Foreign Investment in Real Property Tax Act (FIRPTA)—which allows foreign investors to be treated similarly to their U.S. counterparts—will help fuel foreign real estate investment as well. Why are these statistics important? Many people, not just real estate investors, are somewhat concerned about the impact of foreign investors, and residential, commercial and construction will all be affected by the FIRPTA political overtures.”
“In a three-year average, appreciation in the Sacramento region boomed at 36.6 percent, compared to 17.8 percent for the rest of the country. Due to unemployment rates remaining low and housing affordability remaining high, new housing construction is on the rise. Construction on single-family residences has ballooned to 25.3 percent, compared to the national average of 10.6 percent.”
CalBRE# 01707451 and NMLS# 1545633
Amber Jaurequi, Envoy Mortgage, 2920 Cold Springs Road, Unit A, Placerville, 916-945-8480, ajaurequi-envoy.mortgagewebcenter.com
Throughout Amber Jaurequi’s 20-plus years in the mortgage industry, she’s helped thousands of homeowners purchase their dream houses and existing homeowners structure beneficial refinances. Building lasting relationships with clients is of utmost importance to her.
“I’m seeing more people seeking a slower-paced lifestyle and a more old-fashioned way of raising kids, thus wanting to ‘move to the country.’ This is happening so much that the market for country homes is flying off the multiple listing service (MLS) like hot cakes. With more and more employers offering telecommuting positions, this lifestyle has become much more feasible.”
“More mortgage companies and real estate professionals are offering support to home-buying veterans, thanks to an increasing number getting educated to specialize in helping them. El Dorado County has one of the highest VA populations in California, and with all this added knowledge and benefit, they’re finally getting the help they deserve—a trend that makes me very proud and excited to be a part of.”
HOW LONG DO THINGS LAST?
The general expectancy of properly installed products that are well maintained.
Dishwasher: 10-12 years
Note: Keep drains clear of debris by pre-rinsing dishes
Range: 19 years (gas); 17 years (electric)
Note: Keep area directly below range lined with foil
Garbage disposal: 6-15 years
Note: Avoid contact with hard objects; use cold water
Bathtub: 50 years (cast iron); 10-15 years (fiberglass)
Water heater: 14 years (electric); 11-13 years (gas)
Note: Drain 3-4 gallons from tank each year
Wood deck: 15 years
Note: Paint or treat with preservative every two years
Roof: 15-30 years (asphalt, wood shingles and shakes); 50-100 years (slate and tile); 5-15 years (rolled); 10-20 years (tar and gravel)
Siding: 50 years (vinyl); 20-50 years (aluminum); 10-100 years (wood—depending on moisture)
Sink: 8-10 years (enameled steel); 25-30 years (enameled cast iron or porcelain)
Countertop: 10-15 years (laminate); lifetime (ceramic tile)
Exterior door: 80-100 years (with protected overhang)
Garage door opener: 10 years
Copper wiring: 100 years
Sealer: 1-5 years (silicone and waxes)
Paint: 5-10 years (wall and trim); 7 years (exterior)
Ducts: 30 years (galvanized); 15 years (plastic)
Swimming pool: 18 years
Trash compactor: 8-15 years
Wallpaper: 7 years
Carpet: 11 years
Brick: 100 years (stone wall)
Gravel walk: 4 years
Concrete walk: 24 years
Drywall: 30-70 years
Microwave: 11 years
If the appliances and materials in your home exceed this time, it may be necessary to replace them. Your real estate agent can explain the best way to proceed.
Reprinted with permission from the Placer County Association of Realtors’ (PCAOR) website.
Debbie Newton, Coldwell Banker, 2200 Douglas Boulevard, SUITE B200, Roseville, 916-208-2577, realestateplacercounty.com
As president of the Placer County Association of Realtors (PCAR) and with extensive involvement in other professional organizations, Debbie Newton has abundant knowledge of the local market and real estate process. She’s dedicated to serving established residents and first-time homebuyers in any way she can.
“Millenials are purchasing homes later than any other generation before them. A number of factors have contributed to this shift in the homeownership paradigm including:
• Millenials are not getting married or having children as young as former generations.
• This generation has the highest rate of student loan debt.
• The desire to be mobile and save their disposable income for consumer goods and travel can all outweigh the benefits of homeownership to this age group.”
“Sellers are motivated to sell their properties because of lack of inventory. The sheer demand for properties has consistently outgrown the rate of growth for available properties in the region. Buyers, and in many instances, first-time buyers, are turning to new home developments in an effort to find available inventory within their budget.”
“We are seeing an increase in movement from the Bay Area to our region. While some are coming here because of job opportunities in our strengthening tech and education industries, others are moving here simply to improve the quality of life for their families, and are continuing to commute back to the Bay Area for work.”
“Current statistics show that home sales are strong, even though the number of homes available for sale has reduced. The median price in March of 2017 had increased by $35,000 over March of 2016. The average number of days on the market has remained almost identical to last year at an average of 45 days. The number of pending sales has increased over the same period last year. In other words, it’s a sellers’ market. The number of homes being sold is very strong, prices are up, properties are selling and closing escrow quickly, and buyers are facing a lot of competition in the marketplace. It’s clearly a great time to sell and move up and an exciting time to buy.”
Even before you put your home on the market, put a plan in place. Everyone likes to move on the weekend or a holiday, so make sure you have a moving company or rental truck lined up to move you out of your present home.
8 Weeks Before You Move
• If you’re using a professional mover, get estimates in writing from moving companies. Discuss costs, packing, loading, delivery and the claims procedure with your mover.
• If you’re moving yourself, get estimates from truck rental companies.
• Be sure you reserve in advance.
• Draw a floor plan of your new home and make notes of where you want your furniture placed.
• Use up food in your freezer.
• Remember you can’t move flammable household cleaning products, etc.
6 Weeks Before You Move
• Inventory all your possessions now. Determine what can be donated for a tax deduction, sold or given to a family member.
• Gather important records such as medical, lawyers, accountants, insurance, car/boat, camper registration, veterinarians, etc. to hand carry to your new home.
• Transfer your children’s school records.
• Make sure you understand the tax-deductible moving expenses (call your accountant), and set up record keeping for these expenses.
4 Weeks Before You Move
• Will you need short-term storage near your old or new residence? Make these arrangements now.
• Do you need to have a garage sale?
• If you’re moving yourself, figure out how many boxes you’ll need. Many of the moving companies have websites with calculators that can help you determine that number. Many truck rental companies have boxes for sale.
3 Weeks Before You Move
• Gather packing materials, including: furniture pads, newspapers, hand truck/dolly, scissors, utility knife, packing tape, bubble wrap, felt tip markers, and, of course, boxes.
• Begin packing things that you don’t need every day.
• Call the utilities in your new community to arrange a start date and the utility companies in your present location to arrange a stop date.
• Do you need to make travel/hotel reservations?
2 Weeks Before You Move
• Transfer your bank accounts to a branch in your new location and make sure that you transfer or cancel any direct deposits or automatic payment arrangements on your current bank accounts.
• Make arrangements for pets—ask the vet how to make them more comfortable before, during and after the move.
• Transfer all medical prescriptions to a pharmacy in your new location.
1 Week Before You Move
• Defrost your refrigerator and freezer.
• Arrange for cash, a certified check, or money order to pay the mover on delivery day.
• Pack valuables and legal documents to go with you, not on the truck.
• Pack clothes, toiletries, prescriptions, emergency numbers and family members’ phone numbers to be kept with you.
• Pack an emergency kit, including: coffee/tea maker and supplies, coffee cups, paper plates, plastic utensils, soft drinks, water, snacks, soap, bath towels, trash bags, scissors, utility knife, toilet paper, shelf liner, pencils and paper, masking tape, and a toiletries kit.
• Pack your pillows, bedding, etc. in the top dresser drawer so you know where the linens are and you don’t have to look through boxes.
• Make a list of every item loaded.
• Before you sign, read the bill of lading. Keep it in a safe place until you receive all your goods. You will need the bill of lading until after the charges are paid and any claims settled.
• Make sure to turn off all utilities.
• Make arrangements with your agent to leave the keys and garage door opener(s) inside the house.
• Lock all doors and windows.
• Vigilance is important at this point—check off all boxes and items as they come off the truck; examine everything.
• Install new locks.
• Make sure utilities are hooked up.
• Put out “comfort toys” for the children and pets.
Congratulations, your new life is just beginning!