2020 Housing Forecast: Sunny Days for New Construction

"Home sellers will remain on the sidelines, but millenials are on the move."

I love this infographic. They say a picture says a thousand words and this one represents both a business plan and a marketing strategy for 2020.

Mortgage Rates by end of 2020 increase to 3.88%

(still crazy low)

Average Median Home Price up by 0.8% 

(median home prices predicted to increase 3.6% according to NAR's Forecast)

Homeownership Rate 64.6% 

(troubling: essentially no growth 2014-2019 resulting in less home equity wealth-building)

Source: NAR Real Estate Summit Forecast

Single Family Housing Starts up 6%

(new construction continues to position itself as a viable inventory shortage solution)

Existing Home Sales Down 1.8%

(existing homeowners are staying in place, plus purchases shifting to new construction)

Take Aways for 2020

• Low mortgage interest rates, minimal down-payment requirements, home equity wealth-building opportunity and the IRS mortgage interest tax deduction offer a winning scenario for Buyers in 2020.
• There will be more new-home inventory for Buyers to choose from, replacing the void created by the lack of existing-home inventory. New construction is the housing shortage solution for Buyers.
• For Sellers, the heyday of listing as-is and selling day-one with multiple offers is drawing to a close for this market cycle. New construction will continue to be the primary competition for existing-home sales into the foreseeable future. See Related Blog Post: Selling? Think Like a Buyer

Kim Novak is a CSP: Certified New Home Sales Professional and a CRS: Certified Residential Specialist. She can be reached at (801) 726-1443 or by email to kim@novakadvantage.com

50+ Not-So-Baby Boomers: Think Right-Size, Not Down-Size

Rightsize verb: to reduce to an optimal size

Marie Kondo taught me to organize what I have and then donate or gift, with intention, all that is left over.

Joshua Becker taught me to not buy the stuff in the first place.

The first step to a successful Rightsize is to Downsize-in-Place. Not only will this give you perspective on the size and space configuration that you envision for living perfectly in your new home, but you'll be simultaneously preparing your current home to sell for highest & best when it's time to put it on the market.

In my experience helping my 50+ clients Rightsize, I've learned that it is never really about moving to a smaller house. It's about moving to a home that is meant just for them. Not for the kids. Not for out-of-town family visitors. Not for the commute. Just.For.Them.

It's your time. You've worked for this. The She Shed in the backyard for your painting, pottery or writing your first novel. The third bay in the heated garage for your workshop, complete with cable TV and chaise lounge chair. Ready? Let's Make It Happen!

Kim Novak is an SRES: Seniors Real Estate Specialist and RENE: Real Estate Negotiating Expert, by experience and industry certification. She has made it her mission to help her clients Finding Home in Utah.

First-Time Homebuyers: New Construction as a Solution to Inventory Shortage Woes

Patience.

A little can go a long way for a first-time home buyer win in our ultra-competitive, seller's market. If you're in to month #4 of house hunting, your new home would be 1/2 way to completion by now ... at a set price that hasn't increased in tandem with our appreciating market, enjoying an experience that virtually eliminates multiple-offer bidding wars. New construction is an opportunity for you to win in today's real estate market - a brand new home with built-in equity.

Don't let anyone tell you that there aren't affordable options. Don't let anyone tell you they won't work with your agent. Don't let anyone tell you that you'll save money if you buy directly from the builder, without representation. And don't limit your options by going it alone.

Choosing the right REALTOR® as your guide is an important first step to success; a qualified and experienced professional who will be your advocate in navigating all of the new communities, price-points & floor plans, financing options & incentives, warranties & reputation, and translating new construction contracts & builder-ese.

It's All About the Benefits (to you). I offer my clients a comprehensive new home guidebook, which includes a new home communities tour and a builder-match featuring one-to-one meetings with the builders' sales reps. One of the most valuable benefits this affords my clients is that I often know about new home communities and "spec" homes that are almost at completion before they are even made public or listed in the MLS: Multiple Listing Service. Another win for you.

Let's go have fun with this!

Kim Novak is a CSP: Certified New Home Sales Professional and ABR: Accredited Buyer Representative. She has worked cooperatively with Utah Builders and their Sales Teams since 1995, professionally representing her Homebuyer Clients Finding Home in Utah.

New Listing! 3524 S 5050 W, West Haven, UT 84401 - $429,900 - MLS 1645335

What better holiday gift than to start the New Year in an amazing new home! Eight months of full builder warranty coverage remaining and a 2-5 year transferable extended warranty for the new homeowner. West facing rambler in the Meadow Green Estates community in West Haven (no HOA!). 3 bedrooms, 2 baths, 3872 sf, 4-car garage, .31 acres partly fenced with secondary water connection.

The kitchen features quartz countertops, a 5-burner gas range, stainless appliances, island with overhang for barstools and a corner pantry. Main level laundry room and bench, hooks and cubbies as you come in from the garage. The family room features a gas log fireplace and an extra outlet in the floor for table lamps. High-end laminate flooring throughout the main level with plush carpet in the bedrooms and tile in the bathrooms. The master bedroom accommodates a king-sized suite of furniture and features a huge walk-in with enough closet space for everyone. The master bathroom features a comfort-height vanity with quartz countertops and double sinks, private toilet and an oversized dual head shower with bench seat. Custom solar shades & blinds.

Make sure to check out the MATTERPORT virtual floor plan and walk through link along with the photo tour of this beautiful home!

MLS 1645335 $429,900