My Blog

Market update

1/22/2019
Here are the latest market statistics. For Boone County, there are a total of 642 single family homes and condos on the market, of which 43 are between $0 and $99,999; 196 are between $100,000 and $199,999, etc. Looking at the months inventory on hand, closed shows how many homes closed in the past month, meaning they went under contract most likely over a month ago, while pending months inventory shows how many homes actually went under contract during the past month. Anything less than six months is considered a seller's market and more than six months supply is considered a buyer's market. So you can see that we have a bit of both, depending on the price. 



1/21/2019
Label All % 0-99999 100000-199999 200000-299999 300000-399999 400000-…
Total MLS listings 642   43 196 180 104 119
Pendings (30 days) 121 19% 10 50 37 15 9
Closed (30 days) 105 16% 16 42 31 11 5
New Listings (30 days) 122 19% 7 42 44 12 17
Expired/can/wdrawn (30 days) 89 14% 3 20 37 13 16
   
Months Inventory (Closed) 6.1     -   2.7 4.7 5.8 9.5 23.8
Months Inventory (Pending) 5.3      -   4.3 3.9 4.9 6.9 13.2

Have you ever thought about investing in real estate?

1/7/2019
If so, please join me to discuss the pros and cons, as well as an evaluation tool, for real estate investing. We will meet Thursday, January 24, from 6-7:30 PM in room 260 of the ReMax Boone Realty Bldg located at 33 E. Broadway, Columbia, MO  We will discuss some of the myths of real estate investing as well as explore the positives and minuses of single family homes, duplexes, triplexes, and more. Please rsvp to keith@superbolesteam.com

Interest rates

1/7/2019
Good news on the home buying and selling sides -- why both? The Fed has signaled that they are going to take a more cautious approach to increasing interest rates -- really meaning they are not going to increase them automatically over the next year. Why is this important? 
For buyers -- this means you can afford more home with the same income -- as less of your payment goes to paying interest on the mortgage. 
For sellers -- this means your home price will be more solid, in that flat interest rates will allow sales to be maintained. With sales remaining strong, there will be reduced pressure to reduce prices significantly, as would be the case with an increase in interest rates. 

Is the market shifting?

11/8/2018
At this time we have been in a real estate growth phase for at least 7 years. The normal real estate cycle is five years. So expectations are that the market is going to slow down. For right now, it  is difficult to tell, since our market slows down during this of year anyway. However, year over year sales for October experienced a decrease of 11%. Stayed tuned for the November figures, to see if any trend is in the works. One indicator, however, may be the fact that 122 houses went under contract during October 2018, while November of 2017 experienced 150 closings. 

The table below demonstrates the current market situation in different price ranges. As of November 7, there were a total of 838 single family homes and condominiums on the market in Boone County. Of these 261 were in the price range between $100,000 and $199,999. In the past 30 days, 79 of these went under contract. At this rate, if no new homes came on the market in this price range, all the current  homes would be sold out in 3.3 months (last row -- Months Inventory (Pending)). So there is still a shortage of homes in this price range, but for comparison, the figure was at 2 months in July. 


Label All % 0-99999 100000-199999 200000-299999 300000-399999 400000-…
Total MLS listings 838   48 261 252 144 131
Pendings (30 days) 155 18% 11 79 39 16 10
Closed (30 days) 149 18% 15 66 44 16 9
New Listings (30 days) 188 22% 15 72 54 26 21
Expired/can/wdrawn (30 days) 118 14% 7 32 33 28 19
   
Months Inventory (Closed) 5.6     -   3.2 4.0 5.7 9.0 14.6
Months Inventory (Pending) 5.4      -   4.4 3.3 6.5 9.0 13.1

Is my interest cost deduction going away?

11/29/2017

So what is all the fuss about? If you currently own a home, and are not moving soon, it will have no impact on you. However, if you move into a new home, with a purchase price of at least $500,000 you will be impacted. The change is a reduction from the previous price limit which was $1,000,000. So more people will be impacted, and especially in areas with higher home prices.  In addition, if you are on the lower end, doubling the standard deduction may result in a greater tax benefit than the mortgage interest deduction. I will see if I can come up with an illustration to show this a bit better.  In the meantime, to the extent that some people will be better off not itemizing, and taking the standard deduction, the tax process will be simpler and less costly, and may even put some tax accountants out of business.

Why should I list during the Holidays?

10/5/2017

If you are at all interested in selling, there are several reasons why the Holiday Season is a great time to sell! Are you ready?

1.  People who look for a home during the Holidays are more serious buyers!

2.  Serious buyers have fewer houses to choose from during the Holidays and less competition means more money for you.

3.  Since the supply of homes will dramatically increase in January, there will be less demand for your particular home! Less demand means less money for you!

4.  Houses show better when decorated for the Holidays!

5.  Buyers are more emotional during the Holidays. so they are more likely to pay your price.

6.  Buyers have more time to look for a home during the Holidays than they do during the working week.

7.  Some people must buy before the end of the year for tax purposes.

8.  January is traditionally the month for employees to begin new jobs. Since transferees cannot wait until Spring to buy, you must be in the market now to capture that market.

9.  You can still be on the market, but you have the option to restrict showings during the six or seven days during the Holidays!

10.  You can sell now for more money and we will provide for a delayed closing or extended occupancy until early next year.

11.  By selling now, you may have an opportunity to be a non-contingent buyer during the Spring, when many more houses are on the market for less money! This will allow you to sell high and buy low!

Is now a good time to buy or sell?

9/25/2017

In a nutshell -- yes!  The main reason for this answer is the low level of interest rates.  They have been low for an abnormally long time thanks to federal reserve policies and a weak economy.  And they will most likely start increasing early next year. The Federal Reserve has already given notice that they will be increasing interest rates next spring. That does not necessarily mean that mortgage rates will increase in lockstep, but the tendency will most definitely up.

so -- how do interest rates impact home sales?

Buyers -- on the buyer side, the price of homes that a buyer can qualify to purchase will decrease. Consider this, if an individual will qualify for a $200,000 home with a 30 year loan, and no down payment (to keep it simple), with an interest rate of 4.0%, the monthly payment will be $954.83, not counting insurance and taxes.

If interest rates go to 5%, to keep the payment the same, the buyer can only qualify to buy a home with a price tag of $177,865. 

Sellers -- since all buyers now qualify for lower priced homes, there is downward pressure on prices.

Page:  of 000  |