Where Are Home Prices Headed Over the Next 5 Years?

 

Where Are Home Prices Headed Over the Next 5 Years? | Keeping Current Matters

Today, many real estate conversations center on housing prices and where they may be headed. That is why we like the Home Price Expectation Survey.

Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts, and investment & market strategists about where they believe prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.

The results of their latest survey:

Home values will appreciate by 4.5% over the course of 2016, 3.6% in 2017 and about 3.2% in the next two years, and finally 2.9% in 2020 (as shown below). That means the average annual appreciation will be 3.5% over the next 5 years.

Projected Appreciation | Keeping Current Matters

The prediction for cumulative appreciation increased over a full point from 17.5% to 18.7% by 2020. The experts making up the most bearish quartile of the survey are still projecting a cumulative appreciation of 11.1%.

Cumulative Price Appreciation | Keeping Current Matters

Bottom Line

Individual opinions make headlines. We believe the survey is a fairer depiction of future values.


By | August 24th, 2016|MARKET TRENDS & STATS|Comments Off on Where Are Home Prices Headed Over the Next 5 Years?

Four Stats That Show This Is Not 2005 All Over Again

 

4 Stats That PROVE This Is NOT 2005 All over Again | Keeping Current Matters

Recent research by the realtor.com examined certain red flags that caused the housing crisis in 2005, and then compared them to today’s real estate market. Today, we want to concentrate on four of those red flags.

  1. Price to Rent Ratio
  2. Price to Income Ratio
  3. Mortgage Transactions
  4. House Flipping

All four categories were outside historical norms in 2005. Home prices were way above normal ratios when compared to both rents and incomes at the time.

They explained that mortgage transactions as a percentage of all home sales were also at a higher percentage:

“Loose credit was one of the main culprits of the housing crisis. Mortgage lending expanded dramatically as unhealthy housing speculation reached its peak and was met by the highest level of credit availability as measured by the Mortgage Bankers Association. The index measures the overall mortgage credit condition by the share of home sales financed by mortgages. This metric does not capture credit quality, but it does set a view of the importance of financing in supporting the housing market.”

House flipping was rampant in 2005. As realtor.com’s research points out:

“Heightened flipping activity is a clear indication of speculation in the real estate market. A property is considered as a speculative flip if the property is sold twice within 12 months and with positive profit. Flipping is a normal part of a healthy housing market. In an inflated housing market, expectations about short-term profit from pure price appreciation are very high; therefore, the level of flipping activity would show evidence of being heightened.”

Here are the categories with percentages reflecting the unrealistic ratios & numbers of 2005 as compared to the current market. Remember, a negative percentage reflects a positive gain for the market.

4 Stats That PROVE This Is NOT 2005 All over Again | Keeping Current Matters

Bottom Line

They say hindsight is 20/20… Today, experts are keeping a close watch on the potential red flags that went unnoticed in 2005.

By | August 24th, 2016|MARKET TRENDS & STATS|Comments Off on Four Stats That Show This Is Not 2005 All Over Again

Homer Glen Real Estate: Market Update For July 2016

Click play to view the Homer Glen Real Estate Market Update for July 2016.

Looking to buy or sell real estate in Homer Glen or the Chicago suburbs? Judy Glockler is consistently one of the top producing agents in the Homer area. She and her team may be contacted via the contact form to the right.

By | August 9th, 2016|MARKET TRENDS & STATS|Comments Off on Homer Glen Real Estate: Market Update For July 2016

Orland Park Real Estate: Market Update For July 2016

Click play to view the Orland Park Real Estate Market Update for July 2016.

 

Looking to buy or sell real estate in Orland Park or the Chicago suburbs? Judy Glockler is consistently one of the top producing agents in the local market. She and her team may be contacted via the contact form on this site.

By | August 8th, 2016|MARKET TRENDS & STATS|Comments Off on Orland Park Real Estate: Market Update For July 2016

Orland Park Real Estate: Market Update For June 2016

Click play to view the Orland Park Real Estate Market Update for June 2016.

 

 

Looking to buy or sell real estate in Orland Park or the Chicago suburbs? Judy Glockler is consistently one of the top producing agents in the local market. She and her team may be contacted via the contact form on this site.

 

By | July 22nd, 2016|MARKET TRENDS & STATS|Comments Off on Orland Park Real Estate: Market Update For June 2016

New Lenox Real Estate: Market Update For May 2016

Click play to view the New Lenox Real Estate Market Update for May 2016.

Looking to buy or sell real estate in New Lenox or the Chicago suburbs? Judy Glockler is consistently one of the top producing agents in the area. She may be contacted via the contact form to the right.

By | June 9th, 2016|MARKET TRENDS & STATS|Comments Off on New Lenox Real Estate: Market Update For May 2016

Homer Glen Real Estate: Market Update For May 2016

Click play to view the Homer Glen Real Estate Market Update for May 2016.

Looking to buy or sell real estate in Homer Glen or the Chicago suburbs? Judy Glockler is consistently one of the top producing agents in the Homer area. She and her team may be contacted via the contact form to the right.

By | June 8th, 2016|MARKET TRENDS & STATS|Comments Off on Homer Glen Real Estate: Market Update For May 2016

Orland Park Real Estate: Market Update For May 2016

Click play to view the Orland Park Real Estate Market Update for May 2016.

Looking to buy or sell real estate in Orland Park or the Chicago suburbs? Judy Glockler is consistently one of the top producing agents in the local market. She and her team may be contacted via the contact form on this site.

By | June 8th, 2016|MARKET TRENDS & STATS|Comments Off on Orland Park Real Estate: Market Update For May 2016

Pet-Safe House Plants

TEN WAYS TOdecoratewith plants

Having plants in your home provides various benefits, including purifying the air and increasing oxygen levels. What everyone should know, however, is that many plants are toxic to pets. For a full list of what plants and flowers to not have around pets, please make sure to check out ASPCA’s list of toxic and non-toxic plants.

These are some plants that are safe for dogs and cats that I chose to have around and why…

  • Areca Palm – This plant is safe for dogs and cats and releases moisture into the air, while also helping to purify the air.
  • Money plants – They are safe for cats and dogs. Additionally, they help reduce various toxins from the air, purifying the air and increasing overall air quality.
  • Donkey’s Tail (or Burro’s Tail) Succulent – Not all succulents are safe for pets, however this one is. Succulents are great because they grow pretty fast and are easy to take of.

Boston Ferns are safe for dogs and cats. However, there are various types of ferns, not all are safe. I have not seen a Boston Fern at the garden center’s I have been to, they were all other types, so make sure to check.

The following are just some of the many plants and flowers that are unsafe/toxic/harmful for pets. For a full list, please click here:  Aloe vera, autumn crocus, bird-of-paradise, carnations, daffodils, gladiolas, hosts, ivy, lillies,  orchid, poinsettia, saga palm, tulips and more.

Please always make sure to do your own research before making any decisions regarding any pet-safe or toxic plants, food, etc.

 

By | June 4th, 2016|Uncategorized|Comments Off on Pet-Safe House Plants

Home Design Trends

What are some trends we have seen lately that buyers, designers and builders like?

Lighter kitchens – People are opting more for the fresh look of cabinets with a brighter feel, including lighter maple shades, white or antique white cabinets or even some gray. Most cabinets go with a great quality tile. Most home owners are opting to avoid hardwood in the kitchen for many reasons. When it is white and hardwood, like below, it looks better but homeowners are forgetting the hardwood for tile for more style and function and so it doesn’t all blend (when you try to match the floor with the cabinets) or clash (when the floors are a different color than the cabinets)…like it does more with hardwood.

kitchen-cabinets-traditional-antique-white-005a-s8103610-island-luxury

Neutral, neutral paint and decor – We went into a staged builder’s model a few years ago and we were all shocked at how the designer staged way. too. much. One room had basketball themed everything, the other room was pink, the other room was a different color. A different color in every room does not make the home flow or appealing to largest amount of buyers. Most new construction now is very neutral – a blank slate that buyers can work from. If you have rooms that don’t match and you are thinking of selling, consider neutralizing your home. You can never go wrong with a cream, beige, a light taupe or a light gray.

ivory-sofa-ivory-coffee-table-cream-marble-fireplace-surround-hearth

Coffered ceilings – seeing these more and more throughout the U.S. and in some new construction homes. They are classy, give the room dimension and create visual interest.

Barnstable Residence

 

These are just some of the various home design trends I’ve noticed and those that buyers take a liking to.

 

 

 

By | June 3rd, 2016|Interior Design and Decor|Comments Off on Home Design Trends