Sacramento #4 on list of hottest real estate markets for the coming year - once again.

We don’t have to look far for good news about the real estate market these days, but a recent report shines an even more positive light on forecasted home prices in Sacramento in the coming year.

According to Realtor.com’s annual report on the residential real estate markets they believe will be the hottest in the coming year, Sacramento distinguished itself, once again. In fact, Realtor.com Chief Economist Jonathan Smoke projects Sacramento to be the fourth hottest residential real estate market in the entire country in 2017, with anticipated appreciation rates of 7.2%. Additionally, the report by Realtor.com’s economic analysts predicts that sale volume will also be up 4.9% in 2017.

That follows up on a stellar year for real estate in Sacramento in 2016. Interestingly, a year ago, Sacramento was also ranked #4 in the nation for projected real estate price and sales growth in 2016, making Sacramento the only metropolitan statistical area to rank in the top five both years!

This year’s report also estimates the median home price to be $420,000, so an added 7.18% would bring the median to $450,156,000.

While Sacramento home prices have appreciated rapidly in past years, the region is still primed for growth. Sacramento is the most affordable major city in California, with home prices well less than half of those in San Francisco, San Jose and the Bay Area.

More and more businesses are coming to Sacramento, bringing good-paying jobs, and the new Golden 1 Arena and revitalization in midtown, downtown, the Railyards, East Sacramento, and West Sacramento are well underway. With an extremely tight supply of existing homes and too few new homes under construction, the housing shortage in Sacramento means the price of rent is skyrocketing, further invigorating the residential real estate market.

That’s a notable contrast from Smoke’s predictions for the entire U.S. real estate market, which he expects to slow down slightly, but not falter. According to Smoke and Realtor.com, the U.S. could see an average of 3.9% in home price appreciation and only 1.9% in sales volume growth in 2017.

The report also highlights the fact that many of the fastest-growing real estate markets are in metropolitan areas in the Western United States. In fact, Western cities account for 11 of the top 25 cities on the list for 2017, including 5 cities in California.

On average, the top 10 metropolitan markets on the list will see price gains of 5.8% with an increase in sales volume 6.3%

Here is the data on the top-20 real estate markets expected to grow the fastest according to Realtor.com:

1. Phoenix, AZ

Median Price: $300,000

Projected Price Growth in 2017: 5.94%

Projected Sales Growth in 2017: 7.24%

2. Los Angeles, CA

Median Price: $675,000

Projected Price Growth in 2017: 6.90%

Projected Sales Growth in 2017: 6.03%

3. Boston, MA

Median Price: $480,000

Projected Price Growth in 2017: 6.09%

Projected Sales Growth in 2017: 6.32%

4. Sacramento, CA

Median Price: $420,000

Projected Price Growth in 2017: 7.18%

Projected Sales Growth in 2017: 4.92%

5. Riverside, CA

Median Price: $350,000

Projected Price Growth in 2017: 4.98%

Projected Sales Growth in 2017: 6.88%

6. Jacksonville, FL

Median Price: $284,000

Projected Price Growth in 2017: 4.79%

Projected Sales Growth in 2017: 7.03%

7. Orlando, FL

Median Price: $272,000

Projected Price Growth in 2017: 5.69%

Projected Sales Growth in 2017: 6.10%

8. Raleigh, NC

Median Price: $312,000

Projected Price Growth in 2017: 4.16%

Projected Sales Growth in 2017: 7.55%

9. Tucson, AZ

Median Price: $237,000

Projected Price Growth in 2017: 6.10%

Projected Sales Growth in 2017: 5.47%

10. Portland, OR

Median Price: $420,000

Projected Price Growth in 2017: 6.55%

Projected Sales Growth in 2017: 5.02%

11. Durham, NC

Median Price: $320,000

Projected Price Growth in 2017: 2.55%

Projected Sales Growth in 2017: 8.95%

12. Colorado Springs, CO

Median Price: $335,000

Projected Price Growth in 2017: 4.77%

Projected Sales Growth in 2017: 6.71%

13. Jackson, MS

Median Price: $207,000

Projected Price Growth in 2017: 1.98%

Projected Sales Growth in 2017: 9.44%

14. Detroit, MI

Median Price: $195,000

Projected Price Growth in 2017: 5.17%

Projected Sales Growth in 2017: 6.22%

15. San Diego, CA

Median Price: $620,000

Projected Price Growth in 2017: 6.47%

Projected Sales Growth in 2017: 4.89%

16. Salt Lake City, UT

Median Price: $345,000

Projected Price Growth in 2017: 6.66%

Projected Sales Growth in 2017: 4.67%

17. Deltona, FL

Median Price: $260,000

Projected Price Growth in 2017: 3.10%

Projected Sales Growth in 2017: 8.23%

18. Provo, UT

Median Price: $334,000

Projected Price Growth in 2017: 5.16%

Projected Sales Growth in 2017: 5.84%

19. Austin, TX

Median Price: $385,000

Projected Price Growth in 2017: 3.50%

Projected Sales Growth in 2017: 7.40%

20. Seattle, WA

Median Price: $430,000

Projected Price Growth in 2017: 7.36%

Projected Sales Growth in 2017: 3.41%

The Anatomy of Today’s Homebuyer, Part 2

Who exactly is today’s homebuyer? In part one of this blog we outlined facts, statistics and data on today’s homebuyer demographics, as well as what they’re looking for and what’s motivating them.

From square footage (less) to relationship status (more single homebuyers, especially single women), what’s most important (quality of neighborhood above school system and affordability) and which amenities are hottest (walk-in closets, tech and green homes), by knowing what buyers are looking for and how they operate, we can market your home sale with maximum efficiency.

So what do today’s homebuyers really want – part two?

So what are some things that will send potential buyers running for the next listing?

56% of buyers say they’re turned off by bad or strange odors

70% of home shoppers are scared off by damp patches, stained walls and ceilings (as they should be!)

54% of potential homebuyers report that dull lighting or a lack of natural light is unattractive

25% found outdated bathrooms unappealing

15% don’t even want to walk in a cluttered room, and

14% dislike décor that is in bad taste or over the top

Agent-assisted home purchases are at an all-time high of 87 percent, while only 7 percent purchasing directly from the previous owner and 6 percent buying from the builder.

What are the pain points for homebuyers? Asked to rank the most difficult step in home buying, this is how today’s homebuyers responded:

51% Finding the right property

23% Paperwork

17% No difficult steps

14% Understanding the process

13% Getting a mortgage

13% Saving for the down payment

As we documented in part one of this blog, the vast majority of homebuyers start their search for a property online on websites or the MLS. Here are the features of real estate websites they found most valuable:

84% Found detailed information about properties

87% Found photos very useful

45% Found interactive maps very useful

42% Real estate contact information

42% virtual tours very useful

Homebuyers are increasingly concerned with the location of their neighborhood in proximity to where they work when faced with increasing commute times. According to surveys, how important is a reasonable time and cost of commute to work for today’s homebuyer?

32% Not important

30% Very important

38% Somewhat important

It seems like all single buyers want two things in a home these days: central air conditioning and a house that’s wired. But according to the sex of the homebuyer, their priorities may differ from there.

Single Men:

Stainless steel and granite countertops

Cathedral ceilings

New homes

Walk-in closets

Single Women:

New kitchen appliances

En-suite master bath

Single level homes

Do buyers want condos, single-family homes, or townhouses? Well that may depend on their age group, as their area significant differences by generation.

Gen Y

84% Detached single-family homes

7% Townhouses/PUD

3% Condos

Gen X

89% Detached single-family homes

5% Townhouses/PUD

2% Condos

Younger Baby Boomers

82% Detached single-family homes

9% Townhouses/PUD

3% Condos

Older Baby Boomers

81% Detached single-family homes

5% Townhouses/PUD

5% Condos

Silent Generation

71% Detached single-family homes

8% Townhouses/PUD

10% Condos

Multi-generational housing is growing rapidly:

13% of all homes are purchased by multigenerational households.

57 million people are living in multi-generational households, double the number in 1980.

1 in 5 Younger Boomers purchases a multi-generational home.

Why are multiple generations in the same family buying a home together? Here are the top reported reasons:

24% Cost savings

23% Adult children moving back in

18% Caretaking for aging parents

10% Spending more time with aging parents

First-time buyers are lagging:

The historical norm for first-time buyers is 40%.

However, the percentage for first-time buyers is now 32%, the lowest number since 30% in 1987.

Incomes among homebuyers are rising.

The median income for homebuyers is now:

Repeat buyers $98,700

All buyers $86,100

First-time buyers $69,400

How about luxury homebuyers?

70 percent of luxury and high-end buyers say the location of their home is the most important factor.

Homes near the beach or mountains are still popular, with great views and access to leisure activities paramount, but many younger buyers are purchasing property with acreage in the country or rural settings, too.

And 54% of luxury buyers still put top priority on a chef’s kitchen when they go looking for their next home.

60 percent of affluent customers want hi-tech and wired homes, fully automated so they can control features like lights, security systems, video cameras and intercoms, climate control, TVs and music, window shades, and door locks from an iPad, remotely via a mobile app, or even with voice activation.

In fact, almost 90 percent of this demographic of luxury homebuyer said they wouldn't even consider living in a home that isn't tech-friendly.

Buyers want green and environmentally friendly homes that are also energy efficient. Two thirds of high end buyers looked for Energy Star-rated windows and doors and insulated glass, and 18 percent of those surveyed reporting that they a home's Green-LED certification was very important.

Open floor plans are more important than ever according to 39 percent of high-end buyers.

Media rooms still are in vogue, with 60 percent of respondents looking for homes that contain one, and 19 percent looking for home theaters.

Home gyms and specialty exercise rooms were an important feature for 50 percent of buyers.

28 percent of luxury homebuyers want swimming pools.

Outdoor kitchens are still a red-hot trend, with nearly half of new luxury buyers on the hunt for homes with that feature. But aside from the typical wet bar (desired by 42 percent of respondents), they’re also looking for warming drawers, sinks, and climate controlled wine, beer, and beverage fridges. 

Buyers also are looking for outdoor fireplaces and fire pits in close proximity to the swimming pool and outdoor entertainment area.

Open rooftops are being utilized as spaces for entertainment, exercise, reflection, yoga, and sunset watching, and also to create stunning rooftop gardens and green areas.

Luxury homes appeal to car aficionados with subterranean parking, high-tech automated parking, and even glass ceilings or walls so the autos are on display as you walk through other areas of the house.

They want dedicated wine cellars with precise climate controls and also dining and tasting areas to host their friends for vineyard-quality events and parties.

Super purification systems are one of the biggest new attractions in the luxury market, with filtration systems that include UV lights, humidification systems, and energy-efficient fans run to keep the air purified.

5 More home selling science and psychology secrets that will make you big money! (Part 3)

When it comes to selling your home, everyone wants to walk away with the highest profit possible. Fortunately, there is a whole hidden science to selling a home, based on mountains of data, copious independent research, and the psychology of perceptions and human behavior. When you list your home for sale with The Alfano Group, you not only have hard work and great service at your disposal, but strategies and tactics developed over decades of successfully representing home sellers. 

We'll share more and more of these home selling tips so stay tuned, and of course contact us if you want to find out how to make the most money when you sell your home!

1. Your greatest marketers could be your neighbors!

Your neighbors are one of your best assets to help market and sell your home, yet rarely utilized. But it makes perfect sense to spread the word about your home hitting the market to those live around you, as they have a vested interest in choosing a great new neighbor. In fact, if you go knock on their door (or have us do it) and let them know the details of the sale and even provide them flyers or brochures, they’ll do a great job telling their friends and coworkers, providing a boost of serious and motivated buyers.

They’ll actually thank you for briefing them before the listing even officially hits the market, and will hustle to generate interest. In the same vein, you can also spread the word about your for sale home to neighborhood associations, local schools, and other community organizations.

2. Personalize your listing with a quick introduction video.

When buyers are in a competitive offer situation, Realtors often advise them to write a personal letter about how much they love the house and a little bit about themselves. In some cases, it can absolutely sway the sellers into accepting their offer, as the personal touch balances out all of the contracts and numbers inherent in a real estate transaction.

The same tactic can work for sellers if they put together a very short (maybe one minute or less) video about their family and their home. Talking candidly about how much they loved the house, the great memories they had there, how they loved the neighborhood and schools, their favorite local parks and restaurants, and giving a valid reason why they’re selling and moving can all be part of a seller’s video.

It’s not the information in the video per se that will make a difference to buyers, but psychology shows that it will humanize the listing, allowing it to stand out from the pack and establishing positive feelings of trust and familiarity. Ask us more about what would be appropriate for a great seller video and how we can use it on YouTube, Instagram, Facebook, etc. to help market your home.

3. Focus on low-cost home improvements in kitchens and bathrooms.

To fix up or not fix up, that is the question for many homeowners before they list their home. Research shows that it doesn’t pay to undertake huge and expensive home improvements before listing your home, unless they are essential or safety concerns, like leaking roofs or faulty electrical systems. But additions, adding a pool, remodeling every room, and other significant upgrades will probably only yield you 20-40 cents on the dollar once the home sells.

Instead, data shows that the wisest investment is to put resources into smaller, cosmetic improvements into your kitchen and bathrooms. Repainting the walls, replacing dated appliances with stainless steel, modernizing light fixtures and possible retiling floors in the kitchen all keep the budget under control but will be a huge selling point when buyers walk through. In fact, that will yield an ROI of 85% or higher, and buyers pay most attention to the kitchen and master bathroom when making a first impression of a home.

4. Impress buyers (and their agents) by having your inspections all done.

There is a lot of uncertainty in any real estate transaction, with inspections, appraisals, disclosures, and contingency periods all reason for a buyer to get cold feet – or choose to renegotiate. But one great way to relieve that uncertainty from the get-go is for sellers to get all of their inspections done before they even list the home. Potential buyers (and their agents, especially!) will love reading in your listing description that the house has a clear pest report, a roof certification, a completed home inspection with the appropriate fixes already done, and maybe even a current appraisal.

Not only will it eliminate any surprises during the transaction so it’s psychologically comfortable and safe, it signals that you are serious and ready to close. By having all of your inspections completed ahead of time, you’ll attract a better, more motivated breed of buyer that won’t waste your time or nickel and dime you on every fee and issue that comes up. This strategy works especially well for higher end and luxury listings, but for all sellers it ultimately saves a lot of time since the deal can now close as soon as their loan clears, saving days or weeks, and we all know that time is money when you’re selling your home!

5. Have your home professionally staged.

For any high end or luxury home, enlisting the services of a professional stager is a must. But is it really worth it? If you’re worried about the cost or inconvenience, consider these statistics from Realtor Magazine and The International Association of Home Staging Professionals:

95% of professionally staged homes sell faster than non-staged homes.

Homes that are staged stay on market only half as long as homes that aren’t.

Staged homes sell for an average 11% higher purchase price than non-staged homes.

Only 4% of homes in high price brackets are staged (which means two things: some real estate agents aren’t doing their jobs correctly, and your luxury home will stand out like a diamond in a pile of coal when you do stage it.)

The median dollar value for home staging services is only $675 (but higher based on more work and the nicer the home/higher the listing price),

But the great news is that surveys show that staging generates a Return On Investment of 8-10% when the home sells

With those benefits and financial returns, can you afford NOT to stage your home?

***

If you'd like to check out more home selling secrets from The Alfano Group, try these past blogs: 

http://thealfanogroup.blogspot.com/2016/04/home-selling-science-psychology-and.html

http://thealfanogroup.blogspot.com/2016/05/home-selling-science-psychology-and.html