November Housing Market Stats for Middle Tennessee are in! Tune in to hear John's take on what this means for you as a buy or a seller!
Murfreesboro Tennessee Real Estate
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During this episode of TMC John discusses the October housing statistics.
JOHN: Hey, guys. Tuesday Morning Coffee. Mmm, that’s good coffee. Talking about market statistics for October. Another crazy month. Last month, if you recall, was a really big jump in our percentage rate of closed sales and pending sales. This month, same thing. We’re up 30% over last October. We’re up 21% in pendings, which means we’re probably going to have a big November as well compared to last November. Year to date, we’re up. We have sold 9.4% more homes than we have last year. I anticipate that to get to at least 10% by the end of the year.
Our average days on the market are down 61 days, 61 days in October of this year, 68 days last year. Our average closed price is up from 181,000 to 192,000, so $11,000 increase in average closed price. Things keep trending up. I’m not 100% sure why. I know these rates are still low. How long they’re going to stay low, who knows? I’ve been thinking they were going to come down for three years now, so what do I know when it comes to figuring out rates? I don’t know anything.
What are we seeing going forward? I think we’re going to stay pretty vibrant. I see that a lot of people back at work. Our foreclosures are way down over what they were. I think they’re kind of washing out. The one thing I think we’re going to have to pay attention to, the cost of construction coupled with the fact the cost of development has gone up for a lot of different reasons. Materials, regulations, water tap fees. For instance, in the county right now our water tap fee was $1,000. Instead of just raising it a few hundred bucks, gradually, they raised it to $2,800. Well that $1,800 somebody’s got to pay for it, and ultimately it’s the buyer of the home.
The electric company is charging where they used to go into subdivisions and supply the electricity, Middle Tennessee Electric did to have the customer base. Now they’re charging upwards of $900 per lot. That used to be zero, so I’ve just given you $2,700 right there and nothing’s been—you don’t really get anything else for it than what you were getting before the charges. So there’s a lot of things going up, and it’s going to make the cost of development, the cost of lots are going to be more expensive, which the market’s going to have to work it out for us. But bottom line is builders are going to have to really be smart and probably not be able to give you as much in the home if it’s the same square footage. And of course, gradually, the prices are going to go up.
Anyway, that’s what I have. Call me if you need anything real estate related, 867-3020. Thank you.
Tune in to hear about John's new No Stress Listing Agreement!
JOHN: Hey, guys. John Jones here, Tuesday Morning Coffee. Happy Veterans Day. I want to
thank all the veterans out there that have served this country and are currently serving this
country. Thank you so much from the bottom of my heart for protecting our freedoms of this
country, and just thank you. Thank you for your service and your sacrifice. Today, I want to talk
about our new plan we’re rolling out. It’s called the No Stress Listing Agreement or Marketing
Just about two weeks ago, I moved out of a property myself, and it let me remember and let
me have more compassion for the folks that we help every day on what a stressful thing moving
is. I hate it. I’d rather lay down and let you kick me for 30 minutes than have to move. With this
No Stress Marketing Agreement, let me tell you what it offers our clients. Number one, it gives
you free staging consultation. We have a stager on staff that can come in, help direct you on
the things you need to do to get top dollar for your home as far as decluttering, color changes,
anything like that. She’s awesome. She’s a professional.
The second thing, the free use of our moving truck is a part of this agreement. We have a
moving truck, a 15-foot box truck to help you move things and get things organized if you need
it. Another component of this agreement is there’s no time limit. You fire us anytime you want.
We’re not going to tie you into some big agreement. If you don’t feel like we’re doing the job
for you, you fire us. The fourth thing is if you find the buyer on your own and we had no
procuring costs to finding that buyer for you and you want us to step aside of the transaction,
you don’t owe us a dime.
It’s hopefully to take stress off of you, to help you, to make this as easy as it possibly and stress
free as it possibly can be. Thank you so much. I appreciate it, and if you need us, we’re at 867-
John changes Tuesday Morning Coffee up a bit this morning with a rare glimpse into his 22 year real estate career in the Middle Tennessee area.
Hometown Rivalries and Housing Statistics... Tune in to hear John discuss both!
Tune in to this week's Tuesday Morning Coffee to hear John talk about water in crawlspaces.
There's a battle brewing between Real Tracs and Zillow/Trulia! Tune in to hear John's take on what the fuss is about!
JOHN: Hey, guys. John Jones, Tuesday Morning Coffee. Thanks for tuning in. Big news in the
real estate industry, especially locally. Inman News, which is one of the real estate industry’s
largest news sources, has reported that RealTracs, which is our local MLS company, is going to
be one of the first companies in the United States to limit the amount of information they are
going to give the large search engines such as Zillow and Trulia. Whereas, before they basically
shared most of the MLS information with those companies, now they’re going to limit it to only
four pictures and 150 characters in description.
They’re also going to put a link back where the consumer can come back to the brokerage
site to get more information. There’s been a debate over this in the realtor community for
years. One of the debates is share all the information you can. It’s good. It’s get our properties
out there. It gives them exposure. It helps our sellers get more eyeballs on those properties.
Another debate is here we are giving all this information out to a third party that has their own
agenda such as they’re a technology company. They’re there to generate revenues. And in
turn, to generate revenues, they basically sell back to us leads that are coming in based on the
properties we’re giving them.
So there’s been a little debate on that. Ultimately, I try to come up with what’s the best thing
for our customer? What’s the best thing for our seller? And I don’t know that anybody has the
exact answer, but what I’ve found over the years is these companies have developed and added
more tools and added more things to their sites is it becomes kind of confusing to a buyer.
They add their own evaluation tool called Zestimate, which oftentimes is inaccurate, but the
buyer thinks it’s the gospel. Or the seller may think it’s the gospel because Zillow says this is
what the home’s worth.
And sometimes that may not benefit my seller if the Zestimate has it lower than what the
house actually is. I see the argument there. I’m not sure what the right answer is. We’ll keep
you updated. I think this change is going to go in place in the last month, but one of the things
that we’ve tried to do with our company is to provide our clients with the best, most accurate
information. We think there’s three or four things that a buyer wants when they search homes.
One is they want easy searchability. Another thing is they want accurate information. Another
thing that they want is they want current information.
So we have a site, MurfreesboroHomesOnline.com, where we have partnered with BoomTown,
and created a search platform that has all those things that we think are better than any of the
national sites because we know they’re a lot more accurate. We can see that the data we’re
giving them comes across to the consumer as more up to date than what we’ve seen at the
national sites. So Murfreesboro Homes Online. If you’re searching for homes. It’s right here on
the screen. Use that. I think you will find that it will be one of the best search engines that you
will find when looking for real estate.
If you have any questions about real estate, call us at 867-3020. Thank you.
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.