Happy Spring!   I have two very important and life changing words for you now…DON’T PLANT!  Walk away from those enticing green things you see at the nursery.  It will be nothing but a heartache!  As Spring snows continue, think of July and how we will gripe about the heat. Aw, such is life.   With that said, the market is rolling ahead but we are seeing some glimpses of a bit of a glitch.  As we price higher as things move faster, we are now approaching the “top” of the pricing.  How do I know?   Starting to see those $5k to $10K in the lower ranges now correct down because they were popped up because of the fast movement.  On the more expensive homes, we are seeing some major decreases in the tens of thousands.  Is it already over, it JUST BEGAN!  No, very ambitious pricing is now being corrected.  Not a nail biter but a cautionary tale.  In all markets, people want value and if they don’t see it, they will wait until something comes by that offers it.  This is old as time.

Speaking of time – new data:

Home in expensive places, ie Palo Alto and its ilk, are taking longer to “break even” on purchasing versus renting.  As values grow quickly, home equity also accumulates faster and helps to offset or recoup the large, upfront costs of buying a home.  As appreciation (time) slows, it takes longer to build this equity and recoup this upfront costs.  Overall, homes in the U.S. appreciated a 6.8% for 2016.  Another caveat is the amount of payment versus income some of these people bear.

Palo Alto – buyers spend 75.4% of their income on mortgage payments

Santa Monica – 66.1%

Boston – 35.9%

Washington DC – 29.9%

Denver – 25%

Phoenix – 16.8%

Orlando – 15.5%

Austin – 15.4%

Houston – 11.9%

Be careful in your early Summer travels and please remember, I love what I do so please consider referring me to anyone looking or selling properties.    Jill McFeron