#1 Reason to List Your House Today!

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If you are debating listing your house for sale this year or even early next year, here is the #1 reason not to wait!

Buyer Demand Continues to Outpace the Supply of Homes For Sale

According to the National Association of REALTORS’ (NAR) Foot Traffic report, there are more buyers out in the market right now than at any other time in the past three years.

The graph below shows the significant increase in foot traffic experienced this year compared to 2014.

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The latest Existing Home Sales report shows that there is currently a 5.2-month supply of homes for sale. This remains lower than the 6-month supply necessary for a normal market and well below August 2014 numbers.

The chart below details the year-over-year inventory shortages experienced so far in 2015:

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Bottom Line

Meet with a local real estate professional who can show you the supply conditions in your neighborhood and assist you in gaining access to the buyers who are ready, willing and able to buy today!

‘Tiny Condos’ Draw Millennials to Ownership

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Real estate developers are hoping to entice young professional renters into home ownership by wooing them with tiny, more affordable condos.

Downtown Washington, D.C. serves as one example of the tiny condo movement’s gain in momentum.

“They definitely notice it’s smaller, so it is an explanation; it takes a little bit of an adjustment,” says Chris Ballard, principal at McWilliams/Ballard, a marketing firm that works with the Peterson Cos., the developer of Ontario 17, a new condominium building in D.C.’s Adams Morgan neighborhood. The building’s tiny studios are just 380 square feet and cost $275,000 – which is about half the neighborhood’s median price. The building, which is not yet finished, is already about 70 percent sold.

“Things are getting smaller, and people are starting to understand,” says Laina Lee, one of the sales managers at Ontario 17. “About 80 percent of all our buyers, including our studios and our one-bedrooms, have all been first-time home buyers.”

Many young professionals are battling historically high rents that have made it difficult for them to save for a down payment to break into home ownership.

Ballard says it’s cheaper to buy at Ontario 17 than to rent in D.C.’s booming rental market.

“We’re definitely getting a consumer that’s priced out of the market,” Ballard says. “They look at older resales, and now they get to come and look at something that is brand new, and so that’s a great difference, when you’re comparing a 1970s build, older-type condominium with something that’s brand-new with all new fit and finish.”

At Ontario 17 in D.C., within 380 square feet, the studio units have a bed that pulls out of the wall, a dining table that pulls down from a hanging picture frame, a sofa that is built into the bottom of the bed, high-end kitchen appliances that are slightly smaller to fit the space, and in many cases a small terrace as well.

Source: “Wooing Millennials to Buy Condos: Really Tiny Condos,” CNBC (Sept. 29, 2015)

Don’t Wait To Buy Your Dream Home!

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As a seller, you will be most concerned about ‘short term price’ – where home values are headed over the next six months. As either a first-time or repeat buyer, you must not be concerned only about price but also about the ‘long term cost’ of the home.

Let us explain.

There are many factors that influence the ‘cost’ of a home. Two of the major ones are the home’s appreciation over time, and the interest rate at which a buyer can borrow the funds necessary to purchase their home. The rate at which these two factors can change is often referred to as “The Cost of Waiting”.

What will happen over the next 12 months?
According to CoreLogic’s latest Home Price Index, prices are expected to rise by 4.7% by this time next year.

Additionally, Freddie Mac’s most recent Economic Commentary & Projections Table predicts that the 30-year fixed mortgage rate will appreciate to 4.7% in that same time.

What Does This Mean to a Buyer?

Here is a simple demonstration of what impact these projected changes would have on the mortgage payment of a home selling for approximately $250,000 today:

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