#HomePrices #MortgageRates Update

The monthly mortgage payment on a home is determined by two elements: the price of the house and the interest rate you pay on your mortgage. Recently released reports are revealing that the experts expect both elements to increase in 2016.

HOME PRICES

CoreLogic has projected a nationwide 5.2% home value appreciation for the next twelve months. Here is their breakdown by state:

MORTGAGE INTEREST RATES

All four of the entities that provide projections on mortgage interest rates agree: they’re going up in 2016. Here are the predictions over the next four quarters:

Bottom Line

With both home values and interest rates projected to increase over the next twelve months, buying (or moving-up), sooner rather than later, makes sense.

Unique #HomeBuyingTrends

Active military and veterans comprised 21 percent of all home buyers in 2015 ̶ a sizable subset worth exploring their purchasing preferences, according to NAR’s 2015 Profile of Home Buyers and Sellers report released in November 2015. Let’s take a quick look at the demographics for these two groups combined. The median age for this subgroup was 48, whereas active military was typically 34 years old and veterans were 61 years. The median price of a home they purchased was $223,000, which is consistent with all buyers. Twenty-eight percent were first-time home buyers and 81 percent bought previously owned homes. Active military and veterans were most likely to buy single-family homes at 86 percent. However, only 85 percent worked directly with an agent or broker, slightly down from 88 percent compared to all buyers.

Unique Facts about Active Military and Veterans:

• 18 percent bought multigenerational homes compared to 13 percent for all buyers
• 21 percent were relocated due to a job compared to only eight percent for all buyers
• Median income for active military and veterans is $79,500, which is lower than $86,100 for all buyers
• Median home size purchased was 2,100 square feet whereas the median for all buyers was 1,900
• 41 percent of this group used virtual tours to help them purchase their home, more than any other demographic group

#HomeStaging: Pro Tips for Appealing to the Senses

Staging a home for sale is all about inspiring your buyer, and their senses are the avenue by which you connect with them. French novelist Honoré de Balzac once wrote “love is the poetry of the senses,” and specifically touching on each sense when staging a home creates atmosphere that inspires just that kind of poetic love. No matter the size or style of the home, there are a whole range of small things you can do to make it more appealing to aspiring homeowners (and help you lock in a sale!) Here’s how to get started:

Sight is the sense most agents associate with staging. The placement of furniture, decor, plants and everything else is truly central to staging. What can get overlooked in the great production of staging is the most fundamental element to catching someone’s eye – light. Especially for homes whose layout prevents a lot of natural light from getting in, you will want to ensure that you have bright and vibrant light throughout the home you aim to sell. Dark homes can not only feel dreary, but they can also make it more difficult to show off some of the qualities that will help you sell the home from the flooring to any moulding touches and more. Light is also very important for getting good quality photographs, which in the era of online advertising is key to putting your best foot forward to sell homes. There’s a major difference in perception between houses with dark, grainy photographs and ones that look professionally shot when interpreting them in the digital space.

Smell is among the strongest and most personally connective senses we possess as humans. We associate different aromas with experience and memory to a degree where certain smells can make us comfortable and nostalgic or quite the opposite. People are consciously aware of smells that they like and dislike, and some argue that using fragrances or food smells to change buyer perspective is a big no-no. However, if you are choose natural, neutral aromas like lavender, sage, pine or other light woody fragrances, you can create a space that feels like home. Be aware of using fragrances that may cause people who are sensitive to aromas to be uncomfortable, and be smart about using things like incense and spray aerosols that can trigger asthma or allergies.

Taste is important because, frankly, everyone loves snacks. This is a simple fact of life. Food makes people feel more comfortable and welcome in a home, and can add a feeling of sophistication to your showing. While you can’t guarantee everyone will be interested in your hors d’oeuvres, a lot of people will appreciate some fresh fruit, mild cheeses, or even a glass or two of wine as they settle into what may be their new home. Avoid anything that is overly fragrant, like strong cheeses and cooked meats, but don’t be afraid to let the personality of the home inform the snack choice you make. For homes that are more down home and country cottage influenced, regional favorites can’t be beat, whereas if you’re catering to a higher society crowd your snacks should follow suit.

Hearing. Much like smell, music is deeply evocative for memory and affects the mood and comfort level of the listener. Playing music through a home you aim to sell does wonders for filling in the space, making it more comfortable for everyone walking through and giving a sense of personality to your staging. I would recommend something instrumental, preferably classical or piano to enhance without distracting from the surroundings. If you want to get more technical, music that is primarily structured around major chord progressions will energize listeners, whereas minor chords sound darker and can create a sense of melancholy (for an example, look what happens when you shift REM from minor to major. How happy it feels!). It’s also important to ensure your music isn’t too loud, as it can take away from your staging and make it more difficult for your buyers to converse about the home with one another and with you.

Touch. Chances are prospective buyers aren’t going to go around touching the walls and tiles to gauge their tactile appeal, but there is a strong likelihood they will have a seat at some point along the way (or be drawn towards touching a sofa, linens or the curtains). Touch is one of our key exploratory senses, used to judge a wide range of things from the temperature of an item to its softness or quality. Staging a home with comfortable, quality goods is one part of staging with touch. Another key element of touch: temperature. A home that is too hot or too cold will make buyers uncomfortable and distract them from the features you’re looking to showcase. An updated thermostat is not only a great selling point for the home, but helps you accurately and consistently set the temp for showings.

#HomebuyingTrend Purchasing Larger Homes

Home buyer demographics change slightly from year to year due to macroeconomic forces from the health of the economy to inflation to the global trade on oil prices. The National Association of REALTORS® recently released its 2015 Profile of Home Buyers and Sellers report and there are some interesting new trends emerging this year. One of the most fascinating is that in almost every region of the United States, we saw buyers trading up and buying bigger homes than last year. According to the new report, 42 percent of all buyers traded up in the size of their home, up from 40 percent in 2014. In the 2014 report, buyers reported that they were looking for homes similar in size at 31 percent compared to 29 percent in 2015. Regionally, the percentage of buyers looking for larger homes increased across the board.

One reason for this shift in purchasing power is that people finally have more equity from selling their previous homes in order to buy a bigger one. Since the housing downturn in 2010, many homes were worth less than their mortgages. Over the last several years, home prices have been rising. In 2014, 17 percent reported waiting or stalling to sell their home, which dropped to 13 percent in 2015. Sellers also reported that they sold their homes for a median of $40,000 more than they purchased it, up from $30,100 in 2014. The most common reason for selling a home in 2015 was that the home was too small at 16 percent.

The typical seller in 2015 was 54 years old (same as last year) and the median household income was $104,000, up from $96,700 in 2014. Buyers aged 35 to 44 years, or Generation X, was the second largest age group to purchase homes last year at 20 percent, behind Millennials 34 years or young where 28 percent purchased homes. We can speculate that Generation X-ers probably had a child in the last few years and wanted a bigger home to expand their family. Finally, we see the trend where repeat buyers have been able to sell their homes at a higher price in order to trade up and purchase larger homes.

Just Listed! Oregon Vineyard w/ Event Center & Tasting Room

Located in scenic Myrtle Creek, Oregon, this 27+ acre riverfront property features a ~19 acre vineyard, large event center, gorgeous tasting room with kitchen, single-family home, and large greenhouse. Vineyard with water rights boasts a variety of grapes including Tempranillo, Chardonnay, Cabernet Sauvignon Merlot and Sangiovese. Renovated barn and event center has light, open-beamed ceilings and expansive areas for serving food and beverages – ideal for weddings and formal events! Charming tasting room with bar, seating area and adjacent bathroom. Newer 300 square feet deck overlooks the South Umpqua River and provides panoramic river views, making this vineyard perfect for hosting large group events.

Offered at $1,900,000

Co-Listed with Leslie Beck & Ward Beck, Windermere Real Estate

For more information, go to http://www.jakeralston.com/listing/scenic-oregon-vineyard-w-event-center-tasting-room/

Falling For Your #DreamHome

Some Highlights:

• 24% of all recent home buyers were single at the time of purchase
• 47% of single men cite the desire to own a home of their own as the primary reason to buy
• 18% of first-time buyers were single women

#HappyThanksgiving

Why You Should Sell Now Before Winter Hits

People across the country are beginning to think about what their life will look like next year. It happens every Fall. We ponder whether we should relocate to a different part of the country to find better year-round weather or perhaps move across the state for better job opportunities.

Homeowners in this situation must consider whether they should sell their house now or wait. If you are one of these potential sellers, here are five important reasons to do it now versus the dead of winter.

Just Listed! Build Your Ocean View Dream Home in Hope Ranch!

Incredible opportunity to build your ocean view dream home in Hope Ranch, Santa Barbara! Never before on the market, this gently sloping 2.35 acre ocean view parcel includes a water meter and recently completed soils report. Hope Ranch offers an exclusive lifestyle with privacy, a sense of community, access to miles of pristine beaches, tennis courts and 22 miles of bridle trails. All of this is just minutes from vibrant downtown Santa Barbara.

Offered at $2,000,000