Housing Price Trends Posts 3Q2023 Results

Housing Price Trends has updated the price charts with 3Q2023 Housing Price Index data. Of the top 148 cities, there were 20 SELL signals and no BUY signals; not a very big surprise. Of the remaining cities, there were 11 SELL signals and 1 BUY signal.

Let's take one city from the top 148 as an example, Cape Coral-Fort Myers, FL.

Here is the inflation-adjusted price change chart:

Using the Housing Price Trends system, you would have received a BUY signal in 4Q2020 and if you could have sold immediately when you received the SELL signal, you would have realized a 53.9% annual return. According to government data, during this period of 2.5 years, the dollar lost 16% of it's value. This only reinforces the fact that you need to invest in inflation resistant sectors, like real estate. And in the best cities and only during the best time periods: that is why the Housing Price Trends system was developed.

Housing Price Trends Posts 4Q2022 Results

Housing Price Trends has updated the price charts with 4Q2022 Housing Price Index data. Not surprisingly, for this quarter, there were only 2 BUY signals and 37 SELL signals. There were no BUY signals in the top 148 cities in which to invest. Remember the BUY signals that occur outside of the top 148 cities are not as meaningful, since those cities have prices that generally go up and down on much smaller amounts. Of the 37 SELL signals, 20 were in the top 148, with % annual inflation-adjusted appreciation for the past yer ranging between +2.4% and -1.8%.

Stay tuned for 1Q and 2Q data, which we expect to show further weakening in the housing market.

How To Create An Appealing Rental Property

How To Create An Appealing Rental Property

While buying selling at the right time is critical for your real estate success, having a good rental is important for cash flow. Whether you are looking to purchase a new rental property or you are a homeowner looking to rent out your property, then you need to do it just right. If you want to make the most profit then you need to set up your rental property to be as attractive as possible, and there are many ways to make that happen. Here at Housing Price Trends, we are experts on the housing market, so we have some great tips for how you can prepare your home to be the ultimate rental.

Create A Plan

Before you start marketing your home or making major renovations, you need to create a plan of action.

First, you will need to decide if you plan to be the landlord or if you want to hire a property manager to keep an eye on things.

If you want to run your rental more like a business then you should consider creating a limited liability corporation (LLC). Creating an LLC offers great benefits, including several tax advantages. Also, you need to consider the liability protection that may be afforded with an LLC.

Appeal to Most Tenants

Now that you have your business details covered, it is time to get to work on your rental and make adjustments that will make it desirable to as many tenants as possible. Start with good curb appeal. Everyone wants to return home from work to a gorgeous home where the grass is cut, shrubs are pruned, and the exterior of the home looks appealing. If your rental needs improvements in these areas, make them now.

On the inside, it is wise to not have any rooms painted in radical colors that may turn off potential renters. Instead, go for neutral colors like white and gray that will appeal to most people. Your rental agreement should be specific as to the rules you have if renters want to paint the walls a different color, such as requiring that they be returned to their original color when the renter moves out.

Focus On Kitchens and Bathrooms

Experts say that the kitchen is the heart of the home, and that will be the case for renters as well. This is where families gather to eat dinner and talk about their days. It is also where many people entertain their guests. Consider what repairs may be necessary, and consider installing new appliances if the appliances are old and unappealing.

Bathrooms are another big selling point for renters and homeowners in general. People will be immediately turned off by a dirty bathroom with faulty toilets and sinks. Make necessary repairs, add a fresh coat of paint, and make any bathroom upgrades that make economic sense.

Conclusion

As you can see, renting out a property will take some work up front, but attracting and keeping good tenants will be well worth it in the long run. Tenant turnover is expensive and time-consuming.

s2Member®

Housing Price Trends Posts 3Q2022 Buy-Sell Results

Not too surprised that there were NO buy or sell signals at the end of 3Q2022. All 404 cities went up in price (adjusted for inflation, as we always do) except for Odessa, TX (-2,24%) and Enid, OK (-0.97%).

The USA market as a whole tells the story, a pause and slight decline:

Many real estate dynamics are at play: inventory, new build coming on the market now and much more soon, interest rate changes....

Buy savvy real estate investors know that you need to focus on trends in a specific local market; that's where the investment fortunes are made. Let's take the "West Palm Beach-Boca Raton-Boynton Beach, FL (MSAD)" market, for example.

The inflation-adjusted appreciation in the last 4 quarters was 19.3%. There was a Buy signal in 3Q2013 at an HPI index of 188.85 and the current HPI index is 503.75. If you sold now, you would have achieved an annual inflation-adjusted appreciation of 63% (yes, per year).

Housing Price Trends Posts 2Q2022 Results

Housing Price Trends has updated the price charts with 2Q2022 Housing Price Index data. For this quarter, there was only 5 BUY signals and 1 SELL signal. Of the 5 BUY signals, there were 2 BUY signals in the top 148 cities in which to invest. Remember the BUY signals that occur outside of the top 148 cities are not as meaningful, since those cities have prices that generally go up and down on much smaller amounts. Compare these data to those from a year ago, 2Q2021, where there were 40 BUY signals, of which 11 were in the top 148 list.

Stay tuned for 3Q and 4Q data, which we expect to show further weakening in the housing market.

Housing Price Trends Posts 1Q2022 Results

Housing Price Trends has updated the price charts with 1Q2022 Housing Price Index data. For this quarter, there was only 4 BUY signals and 1 SELL signal. Of the 4 BUY signals, there was 1 BUY signals in the top 148 cities in which to invest. Remember the BUY signals that occur outside of the top 148 cities are not as meaningful, since those cities have prices that generally go up and down on much smaller amounts.

This is a major shift in BUY and SELL signals. Prices have continued to rise in many "hot" markets. There were 92 cities in the top 148 that had 10% or mare inflation-adjusted appreciation since a year ago. The "inflation" index for 1Q2021 was 271.7 and the index was 296.3 for 1Q2022. That was a 9.1% increase in the CPI. With inflation now much higher, it is even more important to evaluate your returns on a inflation-adjusted basis.

When researching a particular city be sure to check our annual "HPT Proficient Performance Report: Housing Price Index Percent Change, Year to Year" to investigate price changes by zip code.

 

Note: You may notice some city names have changed or seem to be run together. For example, "AR-Little RockNorth Little RockConway." The previous name was "AR-Little Rock-North Little Rock-Conway." For some reason the FHA decided to remove the hyphens, either intentionally or by omission.

Getting the Ball Rolling: What You Should Do Before Hiring an Agent

It’s easy to overlook the fact that buying or selling a home is hard work, and not just for the real estate agent. Ultimately, homeowners and prospective buyers have the biggest stake in the process, and should play a major role in whether a sale happens or not. There are some important tasks that need to be done before you connect with an agent.

Courtesy of Housing Price Trends, here are some important tips that can help you prepare to enter the market with an agent who’s empowered with all the information needed to make your dreams come true.

 

What can you afford

If you’re in the market to buy, there are several things you should find out before hiring an agent. Have a clear idea of what kind of home you want and where you want to live. Once you know what to look for, find out how much house you can afford.

 

Check your credit status. If all’s well, begin contacting lending institutions to find the best possible loan rate and how much they’re willing to give you. See if you qualify for loans that offer more comfortable terms to buyers, like VA loans and FHA loans. Real estate professionals Team Brannigan note that getting a loan pre-approval letter can come in handy once you start placing bids, because it lets the seller know you’re a serious buyer with sufficient financial backing. Along with your personal priorities this is the kind of information your agent will need to do an effective job on your behalf.

 

Your financial house

Sellers should double-check the status of their mortgage; specifically, how much you’ve paid and how much is still owed. Remember, an agent will need precise numbers even if you owe less than the current value of your home. Knowing your financial position will help an agent work within the framework of your exact situation, which will make the buying process go much more smoothly, not to mention quickly.

 

Don’t forget to make sure there are no liens, tax issues, or property disputes involving your home, which could complicate a deal with a prospective buyer. Also, check into the value of comparable homes in your area. Find out how the market’s performing in your area to help you get an idea of what your asking price should be. And bear in mind that the best time to sell is between March and June.

 

Clean it up

A clean house with plenty of flow and lack of clutter is an absolute must if you’re serious about selling. Make sure your home is in pristine condition for when the agent comes by to have a look, and be receptive to any advice that the agent has for you. In particular, get rid of all signs that you own pets. Buyers who see signs of a dog or cat, like a urine stain on the carpet, a couch that’s been scratched up, or balls of fur in the corners, will see it as a sign that yours is a dirty and damaged home that they’ll have to get fixed. Take down pictures of your pets and family, and don’t forget to remove pet photos from your Facebook page.

 

Keep in mind that your furniture can harbor smells from our pets that we have ultimately become nose blind to — meaning that while we’re accustomed to the smells, others may immediately notice them. Search “upholstery cleaners near me” online and look for pros who have received top scores from previous customers. When it comes to your furniture, you want someone you know you can trust with the job.

 

Do smart staging

The best presentation of your home goes beyond basic tidying, cleaning and depersonalizing. It’s important to show every space in a manner that will optimally appeal to house hunters. This means knowing how to use color, light, arrangement and display to show off your home in the best possible way. Ideally, your home will not reflect your own personal tastes, but will still be warm and inviting.

 

Buying or selling a home is a team effort, so anything you can do to pave the way will help your agent. Solicit their advice, and be responsive if you’re asked to do something. Remember, you’re the one who will reap the benefits in the long run.

This article was gratefully submitted by Jackie Waters of hyper-tidy.com