The Village Connection :: Old Village Real Estate :: Mount Pleasant, SC

Real Estate, events and happenings in the Old Village in Mount Pleasant, SC.

The Village Connection :: Old Village Real Estate :: Mount Pleasant, SC

WSJ Report: 2005 Housing Boom vs Today’s Market

Interesting article from The WSJ…

WSJ Report Contrasts 2 Housing Booms, Industry Broker Looks Back Then and Now

Article Examines the 2005 Housing Boom Versus Market Dynamics That Have Emerged From the 2020 Pandemic

Wall Street Journal report contrasting the 2005 housing boom with the record-breaking market that has emerged out of the 2020 coronavirus pandemic, made front-page news of its print publication this week, quoting industry broker Anthony Lamacchia, who talked about the vast differences between the market dynamics 15 years ago that led to the housing crisis and those of today, where buyers are in a much healthier place, financially.

In the WSJ article, Lamacchia, broker/owner of Boston-area-based Lamacchia Realty, recalls that not long after he entered the industry in 2004, homebuyers began trading up to bigger and more expensive homes, often with a low or no down payment. After the market collapsed, Lamacchia was helping those same buyers to dump their homes in 2009, according to the article.

Now, he says, the market is dynamically different. Housing demand in the Boston suburbs is stronger than he has ever seen, buyers have better credit scores and more money to put down on a home than in years past, he explained to the WSJ.

“On $1 million purchases, people are putting down $500,000,” he told the Journal. “You didn’t see that before.”

He expanded on that in a follow-up interview with RISMedia.

“We are seeing rapid price gains, particularly in single-family homes, and I expect to see them being even more substantial this year,” he says, adding, “[Buyers’] debt-to-income ratios are much lower and buyer demand is significant.”

The challenge of course is inventory. Lamacchia’s company, which reached $1 billion in sales last year for the first time, covers markets in Massachusetts, Connecticut, Rhode Island, New Hampshire and in Southern Florida, and, he says, he’s seeing these same trends in all these locations, especially with demand for single-family homes.

“We are seeing the lowest inventory that we have ever seen before,” he says. “Inventory of single-family homes is down 60% from where it was last winter prior to the pandemic, and it was low then.”

Condo sales across markets are starting to recover as well, he says. “Whereas last year, when the pandemic first started, in the first six months people were somewhat avoiding condos and running to single families. We do think this will help even out the market.”

As a result of the change for many to working from home because of the virus, he sees that trend of buyers wanting homes in suburban locations with access to more recreational activities continuing, at least for the next two years.

“I’m seeing a similarity with New Hampshire up in ski country in the Lakes Region and South Florida,” he says. “People either want the slopes or they want the shores, and we saw a race to those areas last year after the pandemic started.  We saw it let up a bit after the holidays when COVID-19 had a second wave, and we are seeing that happen all over again right now, particularly in Florida.”

As for the long-term outlook, he added, “There is no way that buyer demand could go down enough, and supply go up enough to tip the market into any sort of housing slump, at least in the next 24 months,” he says. “It’s hard to see beyond that.”

To read the Wall Street Journal’s piece interviewing Lamacchia and other industry perspectives from Zillow, Redfin, NAR, The Urban Institute and more, click here. The article also examines the upswing in the lending and new home construction sectors as well. Note: To read the full article requires a subscription.

Beth McGuire is RISMedia’s online managing editor. Email her your real estate news ideas at beth@rismedia.com.

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Seller Tips from the National Association Of Realtors

8 Tips for Adding Curb Appeal and Value to Your Home

By: Pat Curry

Here are eight ways to help your home put its best face forward.

Homes with high curb appeal command higher prices and take less time to sell. We’re not talking about replacing vinyl siding with redwood siding; we’re talking about maintenance and beautifying tasks you’d like to live with anyway.

The way your house looks from the street — attractively landscaped and well-maintained — can add thousands to its value and cut the time it takes to sell. But which projects pump up curb appeal most? Some spit and polish goes a long way, and so does a dose of color.

Related: Gorgeous Landscaping for Your House Means More Than Just Looks

Tip #1: Wash Your House’s Face

Before you scrape any paint or plant more azaleas, wash the dirt, mildew, and general grunge off the outside of your house. REALTORS® say washing a house can add $10,000 to $15,000 to the sale prices of some houses.

A bucket of soapy water and a long-handled, soft-bristled brush can remove the dust and dirt that have splashed onto your wood, vinyl, metal, stucco, brick, and fiber cement siding. Power washers (rental: $75 per day) can reveal the true color of your flagstone walkways.

Wash your windows inside and out, swipe cobwebs from eaves, and hose down downspouts. Don’t forget your garage door, which was once bright white. If you can’t spray off the dirt, scrub it off with a solution of 1/2 cup trisodium phosphate — TSP, available at grocery stores, hardware stores, and home improvement centers — dissolved in 1 gallon of water.

You and a friend can make your house sparkle in a few weekends. A professional cleaning crew will cost hundreds — depending on the size of the house and number of windows — but will finish in a couple of days.

Tip #2: Freshen the Paint Job

The most commonly offered curb appeal advice from real estate pros and appraisers is to give the exterior of your home a good paint job. Buyers will instantly notice it, and appraisers will value it.
 
Of course, painting is an expensive and time-consuming facelift. To paint a 3,000-square-foot home, figure on spending $375 to $600 on paint; $1,500 to $3,000 on labor.

Your best bet is to match the paint you already have: Scrape off a little and ask your local paint store to match it. Resist the urge to make a statement with color. An appraiser will mark down the value of a house that’s painted a wildly different color from its competition.

Tip #3: Regard the Roof

The condition of your roof is one of the first things buyers notice and appraisers assess. Missing, curled, or faded shingles add nothing to the look or value of your house. If your neighbors have maintained or replaced their roofs, yours will look especially shabby.

You can pay for roof repairs now, or pay for them later in a lower appraisal; appraisers will mark down the value by the cost of the repair. According to the “2015 Remodeling Impact Report” from the NATIONAL ASSOCIATION OF REALTORS®, the national median cost of a new asphalt shingle roof is about $7,600.

Some tired roofs look a lot better after you remove 25 years of dirt, moss, lichens, and algae. Don’t try cleaning your roof yourself: call a professional with the right tools and technique to clean it without damaging it. A 2,000-square-foot roof will take a day and $400 to $600 to clean professionally.

Tip #4: Neaten the Yard

A well-manicured lawn, fresh mulch, and pruned shrubs boost the curb appeal of any home.

Replace overgrown bushes with leafy plants and colorful annuals. Surround bushes and trees with dark or reddish-brown bark mulch, which gives a rich feel to the yard. Put a crisp edge on garden beds, pull weeds and invasive vines, and plant a few geraniums in pots.

Green up your grass with lawn food and water. Cover bare spots with seeds and sod, get rid of crab grass, and mow regularly.

Tip #5: Add a Color Splash

Even a little color attracts and pleases the eye of would-be buyers.

Plant a tulip border in the fall that will bloom in the spring. Dig a flowerbed by the mailbox and plant some pansies. Place a brightly colored bench or Adirondack chair on the front porch. Get a little daring, and paint the front door red or blue.

These colorful touches won’t add to the value of our house: Appraisers don’t give you extra points for a blue bench. But beautiful colors enhance curb appeal and help your house to sell faster.

Related: Colorful Plants with Curb Appeal

Tip #6: Glam Your Mailbox

An upscale mailbox, architectural house numbers, or address plaques can make your house stand out.

High-style die cast aluminum mailboxes range from $100 to $350. You can pick up a handsome, hand-painted mailbox for about $50. If you don’t buy new, at least give your old mailbox a facelift with paint and new house numbers.

These days, your local home improvement center or hardware stores has an impressive selection of decorative numbers. Architectural address plaques, which you tack to the house or plant in the yard, typically range from $80 to $200. Brass house numbers range from $3 to $11 each, depending on size and style.

Related: 11 Ways to Create a Welcoming Front Entrance for Under $100

Tip #7: Fence Yourself In

A picket fence with a garden gate to frame the yard is an asset. Not only does it add visual punch to your property, appraisers will give extra value to a fence in good condition, although it has more impact in a family-oriented neighborhood than an upscale retirement community.

Expect to pay $2,000 to $3,500 for a professionally installed gated picket fence 3 feet high and 100 feet long.

If you already have a fence, make sure it’s clean and in good condition. Replace broken gates and tighten loose latches.

Tip #8: Maintenance is a Must

Nothing looks worse from the curb — and sets off subconscious alarms — like hanging gutters, missing bricks from the front steps, or peeling paint. Not only can these deferred maintenance items damage your home, but they can decrease the value of your house by 10%.

Here are some maintenance chores that will dramatically help the look of your house:

  • Refasten sagging gutters.
  • Repoint bricks that have lost their mortar.
  • Reseal cracked asphalt.
  • Straighten shutters.
  • Replace cracked windows.

Experience Sells!

I am proud to announce that I now have $40 million+ in residential sales under my belt! Whoo Hooo! And better yet, I was recently award the prestigious Realtors Of Distinction Award (President’s Circle) which is presented by the Charleston Trident Association of Realtors to an elite group who have achieved the highest level of sales, adhered to CTAR’s Strict CODE OF ETHICS and completed additional education.