Tune in to this week's Tuesday Morning Coffee to hear John talk about water in crawlspaces.
Murfreesboro Tennessee Real Estate
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There's a battle brewing between Real Tracs and Zillow/Trulia! Tune in to hear John's take on what the fuss is about!
Today on Tuesday Morning Coffee John discusses the current housing shortage.
JOHN: Hey, guys. John Jones, Tuesday Morning Coffee. Today, I’m going to talk to you about a housing crisis. I know you’re probably thinking this is a rerun from three or four years ago, but it’s not. It’s a different housing crisis. I read an article last week that I actually read in 2012 by Alex Charfen of the Charfen Institute. He has a real estate training company in Austin, Texas, very sharp guy.
He wrote this blog in The Huffington Post in 2012, and I thought he was nuts. Of course, I thought he was nuts in 2005 and 2006 when he was talking about these things called short sales are about to come to be a prominent source of business for real estate agents. Banks are going to have to use short sales as a way to deal with what is about to come down the pike.
He was 100% correct on that, I’m going to listen to the guy. In 2012, he wrote an article about another crisis looming, and that was called shortage, a housing shortage. What he based this on was in 1968 to 2008 in this country, we have produced an average of 1.5 million homes a year. In 2008, we produced 1.1 million, but 2009, 2010, 2011, 2012 we averaged about 647,000 units in this country, which is way down from what we had done since 1968. There have been studies from Harvard that show that we need to be producing between 1.3, 1.6 million homes every year just to keep up with demand, and we weren’t able to do that through the crisis, for obvious reasons.
What this is doing nationally, and I see it here in some price points, we are not able to keep up with the demand for housing, and we’re getting a shrinkage in inventory. What conclusion can we draw from this? Well, one conclusion is this. If you’re a home buyer and you’re sitting on the fence, I wouldn’t sit much longer. Rates are still low. Get out there and buy a house. Home investors, time is I think running out for you. Get out there. Keep buying investment properties. We are going to need housing for people as we move forward.
Every real estate market’s local, so I don’t mean to send people into a panic, but I can tell you around here, as of the rest of the country, a lot of builders went out of business. A lot of the bigger builders downsized, and a lot of developers quit developing. When you couple all those things together, right now we do have a shortage of homes available for people in a lot of price points, especially 250,000 and under. So if you’re thinking of buying, go buy. But also, keep your eyes on this and we’ll see how true this comes. So far, it looks pretty good.
During this episode of TMC John discusses July 2014 Rutherford County Housing Market Statistics.
JOHN: Hey, guys. John Jones here with July market stats 2014. Closings for this month were up 3% over closings for July of 2013. Pendings are up 1%. Average days on the market are down only one day from 64 days to 63 days. Inventory for the month was down 1% over July of last year. Year to date, we’re looking at closings are up right now. Homes sold in Rutherford County, 4% over last year. Listing inventory for the year is down 4.3%. Days on the market for the year is down from 73 to 68 days, about 4%.
What does this mean? It means that our market is steadily growing, getting a little better. Inventory’s shrinking. We’re starting to see a lot of new construction trying to make up for the inventory, but it’s a pretty steady little market right now. Most price ranges 250 and under I would consider it definitely a seller’s market. As you get higher over 250, it starts trending back to a buyer’s market. When you get up over 350, 400, it’s definitely a buyer’s market, so it’s kind of like I’ve said many times on this show, it’s the tale of two markets.
But we are better. We are selling more homes than we did last year. Prices are increasing. Are we back to our peak pricing? I would say in the smaller price ranges, we are probably back to ’06 numbers or ’07 pricing. As you go higher, we haven’t gotten there yet, and as you get higher and higher, 400, 500, 600, 700, we’re definitely still under what the peak was. So anyway, I hope that helps you out. If you have any real estate-related questions, please call us. I feel like we’re the best. Nobody’s sold more homes in this town than our team, the John Jones Real Estate Team, and nobody will be more honored to serve you than John Jones Real Estate Team. Thank you.
Don't miss this video!!! John discuss the nightmare about using online lender.
JOHN: Hey guys. John Jones here, Tuesday Morning Coffee. Today, we’re going to talk about online lenders, Internet lenders. Stay away from them. I know that any one that you see, they’re going to give you a better deal. I was looking at Quicken earlier. They’re going to defend your dollars. Guys, I’m telling you. I have more delayed closings, almost 100% ratio when we use an online lender. Let me tell you something. I’m not seeing the better deal. In fact, in most cases, local lenders can meet the same deal that they’re saying they’re going to give you.
The mortgage business is very hard sometimes to decipher because it can be a lot of smoke and mirrors. They can offer you a lower rate, but if you look over here, they’re charging you more for that rate. So sometimes it’s hard for the public to really understand. The best way to understand is to actually get an estimate from the company and compare it to a local lender. But I promise you this. If you use a local lender, your chances of having a delayed closing go way down, and we’ve got some great local lenders in this town. I just had one last week with Quicken Loans, and of course, it was delayed.
And when something gets delayed like that, of course, you don’t know it until about a day before. You’ve already set up your moving company. The people that were living in the house have set up their deal. Everybody has to close to move to the next house, and then one little delay. There’s no accountability when you use an online lender. They’re never going to see you again. Okay? You’re never going to run into them at your children’s school. You’re never going to run into them at Kroger. With a local lender, if there’s a problem or if there’s a document that they don’t have, you can hand deliver it. You can go look somebody in the eyeballs and say, “What is going on? Let’s get this fixed.” And things can run a lot smoother.
So you’re going to hear a lot of promises, that they’re going to save you a lot of money. I haven’t seen it. They’re a pain in the tail. So don’t be disappointed. Don’t fool with Internet lending. Go use a local lender. They do a great job. And another reason to use a local lender, if you’re not getting a big advantage from going online, why wouldn’t you try to keep the money in the local economy? You’re helping a local company. You’re helping a local mortgage rep that’s going to sink money back into Rutherford County. So that’s all I got today. I’m going to get off my soapbox, but stay local on lending. I promise you it will go smoother and you will get just as good a deal as anybody’s promising you online. Thank you.
Watch to find out who John draws as winner for the $500 gift card to the Parent Teacher Store!
Thank you to all the teachers who participated and we wish you all a fantastic year!
During this episode of TMC John discusses the reliability of search engines such as Zillow.
JOHN: Hey guys. Tuesday Morning Coffee here. Today, we’re going to talk about Zillow, Trulia search engines. This comes right on the heels of a big announcement where Zillow has purchased Trulia, which are two of the largest sites in the real estate search engine platform industry I guess you would call it. They purchased Trulia for 3 billion in stock. Neither company is making money by the way, which blows my mind, but somebody believes in them because they keep giving them money. But anyway, as I go on a lot of listing appointments now, a lot of information that I see that the seller has is coming from these sites.
And I want to tell you a little bit about that. A lot of their information is good information. They get into public records and do a pretty good job. Typically, the Zestimates that they have, the feature that tells you your home’s worth is usually off, but they’re doing the best they can. But where I really see the problem with Zillow and Trulia is their information is usually dated on homes for sale. A lot of homes that are on their site actively for sale are actually under contract. At John Jones Real Estate, we have partnered with BoomTown, and I think we have what I think is one of the most up-to-date search engines out there.
It’s right here on your screen: murfreesborohomesonline.com. And when homes in Rutherford county, maybe they don’t go pending in the MLS, so they still show active on Trulia or Zillow. This site, if there is a contract on it, maybe it’s an active with a financing contingency. So the bigger sites still think it’s available. This site that I’m showing you is going to have up to the minute to show you if that home is under contract so you’re not wasting your time looking at homes that aren’t necessarily for sale. Then of course, you’re calling your agent or calling an agent that has it listed trying to get information on it only to be disheartened when you hear that home is under contract.
So if you want the most current information out there, murfreesborohomesonline will get you that here in the Middle Tennessee area. Thank you so much, and we’ll talk to you soon.
John Jones Real Estate has a SUPER giveaway going on for teachers in our community right now! Watch to view details!
JOHN: John Jones, Tuesday Morning Coffee, back to school edition. We’ve got a real exciting giveaway that we want to tell all you guys about, but especially teachers. Teachers, on Facebook, if you will go the John Jones Real Estate page and like it, you will be eligible for a $500 gift certificate to the Parent Teacher Store by August 1. August 1 is the deadline. That’s the day we’ll draw the names. All teachers, as long as you teach kids in Rutherford County, whether it’s Rutherford County Schools, Murfreesboro City, private schools, you’re eligible. If you already liked our page on John Jones Real Estate, just send us a direct message that you’ve already like our page, and you’ll be eligible as well.
We’re doing this because we love teachers. One because I’m married to one, and I love her. Number two is I love teachers because they put up with me for a lot of years, 20 what? How many years? Sixteen years? I can’t remember. So I have a soft spot for teachers who had to put up with people like me. But anyway, this is our back to school, our way of saying thank you teachers for what you do and the hard work you put in. So come like our John Jones Facebook page.
Tune into today's Tuesday Morning Coffee to hear John's tips for selling your home in the summer!
JOHN: Hey, guys. Tuesday Morning Coffee coming at you. Got some good coffee this morning. Oh, it’s good coffee made by Ms. Janelle. Today, we’re going to talk about selling your home in the summer. Now contrary to popular belief, summer is not the best time to sell your home, especially in our area or region of the country. Actually, spring would be the best time, but sometimes you’ve got to sell in the summer, so how do you use summer to your advantage?
Well, first of all, there’s several reasons why the summer is not the best time. One is it’s extremely hot. It’s extremely humid in Middle Tennessee. People are on vacation. Kids are out of school. They require attention. People are out of their routine. There’s a lot of summer activities that distract, and did I mention, it’s very hot in Tennessee in the summer?
But if you do have to sell in the summer, here’s some things you can do, suggestions that I’m going to give you that can help you during the summer months to help use summer to your advantage. In Tennessee, most of our yards and our landscaping have the potential to look the best during the summer. So that’s one thing that you ought to use to your advantage. Make sure your grass is cut and trimmed, even if you have to cut it twice a week during the summer. Make sure it’s watered and cut and looks great. Make sure your landscaping is manicured and trimmed back, mulched up, everything looks great.
We have a lot of green in the summer that obviously can give your house quite a good accent or curb appeal. Decorate your home. Use the summer influence to decorate your home. Simple things. Think about what your summer colors are. White is a pure summer color. Vivid blues are a summer color. I would consider buying maybe some throw pillows and things like that for your bed. Replace some of those with some of these type of colors. Throw rugs, things of that nature that you can use with summer colors to kind of accent your house and get people in the mood of summer.
Another thing that I think is becoming more and more popular is even if you don’t maybe have it set up in your home now, move your home outside. If you have to go purchase some cheap type of outdoor furniture, think about creating some outdoor space on your patios and porches with some furniture and once again, maybe some bright colorful pillows and things like that to kind of give it that accent of summer.
Also, you’ve got to remember in the summer when you’re showing your home, go with the flow with the summer. You have Daylight Savings Time, so be prepared to show your home more in the evenings. Turn your lights on at dusk to kind of maybe accent your house in the evenings as people are driving around a little later in the summer and checking things out. My last I’m going to give you, and this is crucial, it’s very hot in Tennessee in the summer. Keep your air conditioning turned down for showings. When you leave the home that day, keep it a little lower than maybe you normally would.
The last thing you want is people coming to show your home and it’s 78 degrees in your home. It’s stuffy. They want to get outside as quick as they can to get back in the car to go to another home because it’s not comfortable. You want it to be extremely comfortable when people are looking at your home so they’ll stay longer and enjoy the home that you have.
These are my tips. Thank you. If you should need anything, call us at 867-3020.
Tune in to today's TMC where John discusses 2014 Rutherford County Housing Market Statistics.
JOHN: Hey, guys. John Jones here. Tuesday Morning Coffee. We’re going to talk about market statistics for June and also the half year mark. In Rutherford County, single-family homes, closed sales for June. This month, year over last June, year over year were up 1.6% in closed sales. Pendings were up about half a percent. Inventory’s down about 1% for the month. Year to date, since we’re at the half-year mark, closed sales for the year are 4.8% more home sales this year than we had last year. Inventory for the year has been down about 5%. All those factors translate into prices going up. We’ll talk about that more in a second.
Currently, days on the market is down from 75 days this time last year to 69 days this year, so we’re down about six days of days on the market. Currently, we have a 4.27-month supply, which is a pretty low supply of homes. Now once again, like I told you last week, under 250 the home month supply is way down there. We’re talking 2 to 3 months in most cases, in most price ranges. As you get higher, that number goes way up. Home prices, people ask me all the time, “John, have home prices gone up in Rutherford County?” Overall, they certainly have. I’m looking at about a 7% increase over this time last year. Now, in some price points, that could be a little higher. If it’s under a $150,000 house, that’s probably a little higher than that.
However, in some price points like over 350, that number’s going to be quite a bit lower. If you go up over 500, that number’s probably—that number probably hasn’t gone up a dime. In fact, it’s probably going down because in our upper price ranges, we do have a lot of inventory. But that kind of gives us a picture. Our market’s pretty much on the same pace it was last year, a little bit better, not a whole lot, about 5% better. And everything we’re hearing right now, rates are pretty low, but everything that I’m reading tells me that rates are going to creep up, and a lot of the experts anticipate probably by this time next year it’ll be about a 1% jump.
So if you are in the market to buy and you can buy, it’s probably not a bad time to do that because rates have such a—they probably go under the radar a little bit on how important they are as far as the home purchase is concerned. They make a huge difference. So anyway, if you need anything, call us, 867-3020. Thanks.