Blogs

The Impact of Tight Inventory on the Housing Market
 January 10, 2018    Cindi Parmenter

The housing crisis is finally in the rear-view mirror as the real estate market moves down the road to a complete recovery. Home values are up, home sales are up, and distressed sales (foreclosures and short sales) have fallen to their lowest points in years. It seems that the market will continue to strengthen in 2018. However, there is one thing that may cause the industry to tap the brakes: a lack of housing inventory. While buyer demand looks like it will remain strong throughout the winter, supply is not keeping up. Here are the thoughts of a few industry experts on the subject: National Association of Realtors “Total housing inventory at the end of November dropped 7.2 percent to 1.67 million existing homes available for sale, and is now 9.7 percent lower than a year ago (1.85 million) and has fallen year-over-year for 30 consecutive months. Unsold inventory is […]

712,000 Homes in the US Regained Equity in the Past 12 Months!
 January 9, 2018    Cindi Parmenter

CoreLogic’s latest Equity Report revealed that “over the past 12 months, 712,000 borrowers moved into positive equity.” This is great news, as the share of homeowners with negative equity (those who owe more than their home is worth), has dropped more than 20% since the peak in Q4 of 2009 (26%) to 4.9% today. The report also revealed: The average homeowner gained approximately $14,900 in equity during the past year. Compared to Q3 2016, negative equity decreased 22% from 3.2 million homes, or 6.3% of all mortgaged properties. U.S. homeowners with mortgages (roughly 63% of all homeowners) have seen their equity increase by a total of $870.6 billion since Q3 2016, an increase of 11.8%, year-over-year. The map below shows the percentage of homes by state with a mortgage and positive equity. (The states in gray have insufficient data to report.) Significant Equity Is on The Rise Frank Nothaft, Chief […]

4 Reasons to Sell This Winter [INFOGRAPHIC]
 January 6, 2018    Cindi Parmenter

Some Highlights: Buyer demand continues to outpace the supply of homes for sale which means that buyers are often competing with one another for the few listings that are available! Housing inventory is still under the 6-month supply needed to sustain a normal housing market. Perhaps the time has come for you and your family to move on and start living the life you desire. Powered by WPeMatico

Time on the Market Drops to New Low in 2017
 January 5, 2018    Cindi Parmenter

According to recently released data from the National Association of Realtors (NAR), the median amount of time a home spent on the market hit an all-time low of only three weeks in 2017. Strong buyer demand, a good economy, and a low inventory of new and existing homes for sale created the perfect storm to accelerate the time between listing and signing a contract. The time needed to sell a home has dropped substantially since its highest mark of 11 weeks in 2012. The chart below shows the median weeks on the market from 1987 to today. Bottom Line If you are a homeowner who is debating whether or not to list your home for sale, know that national market conditions are primed for a quick turnaround! Let’s get together to discuss exactly what’s going on in our area, today! Powered by WPeMatico

Baby Boy in yard, Nashville Real Estate with Parmenter & Company, LLC
The Benefits of Homeownership Go Beyond the Financial
 January 4, 2018    Cindi Parmenter

Homeownership is a major part of the American Dream. As evidence of that, 91% of Americans believe that owning a home is either essential (43%) or important (48%) to achieving that “dream.” In a market where some people may be unsure about the benefits and possibilities of buying a home, it is important that we remember this. Homeownership is NOT just about the money. In fact, some of the major benefits are non-financial. Here are a few of those benefits as per the National Association of Realtors: Consistent findings show that homeownership does make a significant positive impact on educational achievement. Several researchers have found that homeowners tend to be more involved in their communities than renters. Early studies of homeownership and health outcomes found that homeowners and children of homeowners are generally happier and healthier than non-owners, even after controlling for factors such as income and education levels that […]

Keys to Your Home, Nest in Nashvillle
How Rising Prices Will Help You Build Family Wealth in 2018
 January 3, 2018    Cindi Parmenter

Over the next five years, home prices are expected to appreciate on average by 3.35% per year and to grow by 24.34% cumulatively, according to Pulsenomics’ most recent Home Price Expectation Survey. So, what does this mean for homeowners and their equity position? As an example, let’s assume a young couple purchases and closes on a $250,000 home this month (January). If we only look at the projected increase in the price of that home, how much equity will they earn over the next 5 years? Since the experts predict that home prices will increase by 4.2% in 2018, the young homeowners will have gained $10,500 in equity in just one year. Over a five-year period, their equity will increase by nearly $45,000! This figure does not even take into account their monthly principal mortgage payments. In many cases, home equity is one of the largest portions of a family’s overall net worth. Bottom Line […]

Out with 2017 in with 2018
Here’s to a Wonderful 2018!
 January 2, 2018    Cindi Parmenter

We hope 2018 is a great year for you, both personally and professionally! Powered by WPeMatico

2018 Real Estate with Parmenter and Company, LLC
Buying or Selling in 2018? 5 Reasons to Resolve to Hire a Pro [INFOGRAPHIC]
 December 30, 2017    Cindi Parmenter

Some Highlights: As we usher in the new year, one thing is for certain… if you plan to buy or sell a house this year, you need a real estate professional on your team! There are many benefits to using a local professional! Pick a professional who knows your local market and can help you achieve your dreams! Powered by WPeMatico

Little Girl blowing bubbles
There’s More to a Bubble Than Rising Home Prices
 December 29, 2017    Cindi Parmenter

What truly causes a housing bubble and the inevitable crash? For the best explanation, let’s go to a person who correctly called the last housing bubble – a year before it happened. “A bubble requires both overvaluation based on fundamentals and speculation. It is natural to focus on an asset’s fundamental value, but the real key for detecting a bubble is speculation…Speculation tends to chase appreciating assets, and then speculation begets more speculation, until finally, for some reason that will become obvious to all in hindsight, the ‘bubble’ bursts. I have taken to calling the housing market a ‘bubble’.” – Bill McBride of Calculated Risk calling the bubble back in April 2005 Where do we stand today regarding speculation? There are two measurements that are used to determine the speculation in a housing market: The number of homes purchased by an investor and The number of homes being flipped (resold […]

Christmas Cheer by the Fireside
Top 4 REAL Reasons We Buy a Home
 December 28, 2017    Cindi Parmenter

We often talk about the financial reasons why buying a home makes sense. But, more often than not, the emotional reasons are the more powerful or compelling reasons. No matter what shape or size your living space is, the concept and feeling of home can mean different things to different people. Whether it’s a certain scent or a favorite chair, the emotional reasons why we choose to buy our own homes are typically more important to us than the financial ones. 1. Owning your home offers stability to start and raise a family From the best neighborhoods to the best school districts, even those without children at the time of purchase may have this in the back of their minds as a major reason for choosing the location of the home that they purchase. 2. There’s no place like home Owning your own home offers you not only safety and […]