No Comments

Key Terms in Today’s Housing Market – Emerald Coast Real Estate

Key Terms in Today's Housing Market

What are the key terms in today’s housing market?

  Whether you are new to the real estate market or have bought or sold before, understanding the key terms are important to the success of your real estate transactions.  Navigating the waters of the real estate market in Panama City Beach and the Emerald Coast can be intimidating.  No worries!  The good news is the Life’s A Beach Real Estate team is here to help!

Key Terms in Today’s Housing Market

Pop Quiz: Can You Define These Key Terms in Today’s Housing Market?

Pop Quiz: Can You Define These Key Terms in Today’s Housing Market? [INFOGRAPHIC] | MyKCM

Some Highlights

  • The language of buying and selling a home may sound scary at first, but knowing how key terms relate to today’s market can help you. For example, current low mortgage rates and higher wages positively impact affordability for buyers, while home price appreciation continues to grow home equity, which sellers can use to fuel a move up.
  • Terms like appraisal (what lenders rely on to validate a home’s value) and contingencies (which buyers can minimize to make their offer stand out) directly impact the transaction.
  • You don’t need to be fluent in the language of the market to buy or sell. Instead, let’s connect today so that we can translate the process together.

To learn more, reach out to our team.  With two office locations, Life’s A Beach Real Estate is located in Panama City Beach.  And Life’s A Beach Luxury Real Estate is located in Destin.  We are here to answer your questions and help you find your piece of paradise.

 

 

 

No Comments

Options Are Improving for Buyers – Emerald Coast Real Estate

Buyers Market

Is The Buyers Market Improving?

  We are starting to see an uptick in real estate inventory in the Panama City Beach real estate market and the Emerald Coast real estate market.  And, if historical trends continue, then we can expect increased inventory levels in the fall, as the vacation rental season starts to wind down.  This is good news for the buyers who have felt shut out in recent days.

Buyers Market Improving?

Experts Agree: Options Are Improving for Buyers

Experts Agree: Options Are Improving for Buyers [INFOGRAPHIC] | MyKCM

Some Highlights of the Buyers Market

  • Buyers hoping for more homes to choose from may be in luck as housing inventory begins to rise. Many experts agree – new sellers listing their homes is great news for buyers and the overall market.
  • Although the supply increases are modest, more homes mean more options for buyers. A rise in inventory may also help slow the price gains we’ve seen recently and could be a sign of good things to come.
  • If you’re searching for a home, rising inventory is welcome news. Let’s connect today to discuss new listings in our area. and learn more about the buyers market in Panama City Beach and along the Emerald Coast

 

To learn more, reach out to our team.  With two office locations, Life’s A Beach Real Estate is located in Panama City Beach.  And Life’s A Beach Luxury Real Estate is located in Destin.  We are here to answer your questions and help you find your piece of paradise.

 

 

 

No Comments

What To Expect as Appraisal Gaps Grow – Emerald Coast Real Estate

Appraisal Gaps

What To Expect as Appraisal Gaps Grow

  If you have had any recent experience with the Panama City Beach real estate market or the Emerald Coast real estate market, then you are aware that buyers more often than not are willing to pay more than the market data supports, causing an appraisal gap.

We Are Talking About What to Expect as Appraisal Gaps Grow

What causes an appraisal gap?  Well, in today’s real estate market, low inventory and high demand are driving up home prices. As a result, as many as 54% of homes are getting offers over the listing price, based on the latest Realtors Confidence Index from the National Association of Realtors (NAR). Shawn Telford, Chief Appraiser at CoreLogicelaborates:

“The frequency of buyers being willing to pay more than the market data supports is increasing.”

While this is great news for today’s sellers, it can be tricky to navigate if the price of your contract doesn’t match up with the appraisal for the house. It’s called an appraisal gap, and it’s happening more in today’s market than the norm.

According to recent data from CoreLogic19% of homes had their appraised value come in below the contract price in April of this year. That’s more than double the percentage in each of the two previous Aprils.

The chart below uses the latest insights from NAR’s Realtors Confidence Index to showcase how often an issue with an appraisal slowed or stalled the momentum of a house sale in May of this year compared to May of last year.

What To Expect as Appraisal Gaps Grow | MyKCM

If an appraisal comes in below the contract price, the buyer’s lender won’t loan them more than the house’s appraised value. That means there’s going to be a gap between the amount of loan the buyer can secure and the contract price on the house.

In this situation, both the buyer and seller have a vested interest in making sure the sale moves forward with little to no delay. The seller will want to make sure the deal closes, and the buyer won’t want to risk losing the home. That’s why it’s common for sellers to ask the buyer to make up the difference themselves in today’s competitive market.

Bottom Line

Whether you’re buying or selling, let’s connect, so you have an ally throughout the process to help you navigate the unexpected, including appraisal gaps.

To learn more, reach out to our team.  With two office locations, Life’s A Beach Real Estate located in Panama City Beach.  And Life’s A Beach Luxury Real Estate is located in Destin.  We are here to answer your questions and help you find your piece of paradise.

 

 

 

No Comments

Demand for Vacation Homes Is Still Strong – Emerald Coast Real Estate

Vacation Homes

Demand for Vacation Homes Is Still Strong.

  Living and working in a resort destination area we are seeing tremendous interest in vacation homes in Panama City Beach and throughout the Emerald Coast.  Throughout the last year, many people purchased second homes as a safe getaway from the challenges of the health crisis.  With many professionals working from home and many students taking classes remotely, it has made sense to see a migration away  from cities and into counties with more vacation destinations.  And Panama City Beach and the Emerald Coast along the Panhandle have seen the migration wave.

The Demand for Vacation Homes Is Still Strong In the Panama City Beach & Emerald Coast Real Estate Market.

The 2021 Vacation Home Counties Report from the National Association of Realtors (NAR) shows that this increase in vacation home sales continues in 2021. The report examines sales in counties like Bay County and Walton County where “vacant seasonal, occasional, or recreational use housing account for at least 20% of the housing stock” and compares that data to the overall residential market.

Their findings show:

  • Vacation home sales rose by 16.4% to 310,600 in 2020, outpacing the 5.6% growth in total existing-home sales.
  • Vacation home sales are up 57.2% year-over-year during January-April 2021 compared to the 20% year-over-year change in total existing-home sales.
  • Home prices rose more in vacation home counties – the median existing price rose by 14.2% in vacation home counties, compared to 10.1% in non-vacation home counties.

This coincides with data released by Zelman & Associates on the increase in sales of second homes throughout the country last year.

As the data above shows, there is still high demand for second getaway homes in 2021 even as the pandemic winds down. While we may see a rise in second-home sellers as life returns to normal, ongoing low supply and high demand will continue to provide those sellers with a good return on their investment.

Bottom Line

If you’re one of the many people who purchased a vacation home during the pandemic, you’re likely wondering what this means for you. If you’re considering selling that home as life returns to normal, you have options. There are still plenty of buyers in the market. If, on the other hand, you want to keep your second home, enjoy it! Current market conditions show that it’s a good ongoing investment.

Do you have further questions regarding making a winning offer?  To learn more, reach out to our team.  With two office locations, Life’s A Beach Real Estate located in Panama City Beach.  And Life’s A Beach Luxury Real Estate located in Destin.  We are here to answer your questions and help you find your piece of paradise.

 

 

 

No Comments

In Today’s Market Listing Prices Are Like an Auction’s Reserve Price – Emerald Coast Real Estate

Listing Prices

In Today’s Market, Listing Prices Are Like an Auction’s Reserve Price…

  If you are a buyer or a seller in today’s real estate market in Panama City Beach or along the Emerald Coast, we are in interesting times.  Trends that we are used to having changed.  It used to be listing prices for sellers holding a cushion amount to allow the buyer to negotiate down to the anticipated offer the seller would accept.  However, now in many situations, the listing price is the starting point of the negotiation process as the bidding wars ensue.   

In Today’s Market, Listing Prices Are Like an Auction’s Reserve Price

In Today’s Market, Listing Prices Are Like an Auction’s Reserve Price | MyKCM

For generations, the process of buying and selling a home never really changed. A homeowner would try to estimate the market value of their house, then tack on a little extra to give themselves some negotiating room. That figure would become the listing price. Buyers would then try to determine how much less than the full price they could offer and still get the home. As a result, the listing price was generally the ceiling of the negotiation. The actual sales price would almost always be somewhat lower than what was listed. It was unthinkable to pay more than what the seller was asking.

Today is different.

The record-low supply of homes for sale coupled with very strong buyer demand is leading to a rise in bidding wars on many homes. Because of this, homes today often sell for more than the list price. In some cases, they sell for a lot more.

According to Lawrence YunChief Economist at the National Association of Realtors (NAR):

“For every listing there are 5.1 offers. Half of the homes are being sold above list price.”

You may need to change the way you look at the asking price of a home.

In this market, you likely can’t shop for a home with the former approach of negotiating to a lower price.

Due to the low supply of houses for sale, many homes are now being offered in an auction-like atmosphere in which the highest bidder wins the home. In an actual auction, the seller of an item agrees to take the highest bid, and many sellers set a reserve price on the item they’re selling. A reserve price is the minimum amount a seller will accept as the winning bid.

When navigating a competitive housing market, think of the list price of the house as the reserve price at an auction. It’s the minimum the seller will accept in many cases. Today, the asking price is often becoming the floor of the negotiation rather than the ceiling. Therefore, if you really love a home, know that it may ultimately sell for more than the sellers are asking. So, as you’re navigating the homebuying process, make sure you know your budget, know what you can afford, and work with a trusted advisor who can help you make all the right moves as you buy a home.

Bottom Line

Someone who’s more familiar with the housing market of the past than that of today may think it’s foolish to offer more for a home than the listing price. However, frequent and competitive bidding wars are creating an auction-like atmosphere in many real estate transactions right now. Let’s connect today so you have a trusted real estate professional on your side to provide the best advice on how to make a competitive offer on a home.

 

Do you have further questions regarding making a winning offer?  To learn more, reach out to our team.  With two office locations, Life’s A Beach Real Estate located in Panama City Beach.  And Life’s A Beach Luxury Real Estate located in Destin.  We are here to answer your questions and help you find your piece of paradise.

 

 

 

No Comments

Sellers Are Ready to Enter the Housing Market – Emerald Coast Real Estate

housing market

Sellers Are Ready To Enter the Housing Market…

  If the expert’s forecast is correct, that is good news for buyers interested in real estate in Panama City Beach or along the Emerald Coast.  For those buyers that have lost out on multiple beach homes, the thought of more inventory gives them hope!

If you have been following our blog, we continue to talk about the seller’s market we are experiencing.  And if you are a seller and are wondering about waiting too long to put your beach house or beach condo on the market, it is worth considering that your house or condo may have more competition; and what impact that will have when you decide to sell.

Sellers Are Ready To Enter the Housing Market

One of the biggest questions in real estate today is, “When will sellers return to the housing market?” An ongoing shortage of home supply has created a hyper-competitive environment for hopeful buyers, leading to the ultimate sellers’ market. However, as the economy continues to improve and more people get vaccinated, more sellers may finally be in sight.

The Home Purchase Sentiment Index (HPSI) by Fannie Mae recently noted the percentage of consumer respondents who say it’s a good time to sell a home increased from 61% to 67%. Doug Duncan, Senior Vice President and Chief Economist at Fannie Maeindicates:

Consumer positivity regarding home-selling conditions nearly matched its all-time high.” (See graph below):

Sellers Are Ready To Enter the Housing Market | MyKCMFannie Mae isn’t the only expert group noticing a rise in the percentage of people thinking about selling. George Ratiu, Senior Economist at realtor.comshares:

“The results of a realtor.com survey . . . showed that one-in-ten homeowners plans to sell this year, with 63 percent of those, looking to list in the next 6 months. Just as encouragingly, close to two-thirds of sellers plan to sell their homes at prices under $350,000, which would offer a tremendous boost to affordable housing for first-time buyers.”

Bottom Line

If you’re considering selling your house, don’t wait for more competition to pop up in your neighborhood. Let’s connect today to explore the benefits of selling your house now before more homes come to the market.

 

Do you have further questions regarding making a winning offer?  To learn more, reach out to our team.  With two office locations, Life’s A Beach Real Estate located in Panama City Beach.  And Life’s A Beach Luxury Real Estate located in Destin.  We are here to answer your questions and help you find your piece of paradise.