Tune into today's Tuesday Morning Coffee to hear John's tips for selling your home in the summer!
Murfreesboro Tennessee Real Estate
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Tune in to today's TMC where John discusses 2014 Rutherford County Housing Market Statistics.
During this episode of TMC John discusses absorption rates and the growth of the market.
JOHN: Hey, guys. John Jones coming at you. Tuesday Morning Coffee. Thanks for tuning in. Sorry I haven’t been with you the last couple of weeks. I’ve been at the beach getting some sun. But today, I’ve got a very interesting topic to speak with you about and that is absorption rate or how many months’ supply of homes we have on the market. It’s a key indicator, a key measurement in the growth of your real estate market and kind of gives you a truer picture of what’s really going on. We’re reading articles every day that the market is getting better, and in Rutherford County, that is the case in most price ranges.
But I think the numbers I’m about to give you will show you really what’s going on in every price range. Quick lesson. Zero to three months’ supply of homes on the market means you’re in an incredible seller’s market. It means prices are going up; there’s more buyers than there are sellers. It is rocking and rolling. Four to six months, it becomes a little more balanced. Doesn’t really favor either party too much. Homes are probably still going to go up just a hair, but it’s more of a balanced market. It doesn’t really favor the sellers or the buyers. Then over six months, it definitely becomes a buyer’s market. Then the higher you get up as far as in months of inventory, the more it favors a buyer and the worse it hurts a seller, obviously.
So real quick. Under 150,000 in Rutherford County right now—excuse my computer—under 150,000 in Rutherford County right now, we have a 2.1 supply of homes, so it’s definitely a seller’s market; 150 to 200, 2.77. Still very strong seller’s market. Home prices are going up; 200 to 250, 4.27. Getting a little more balanced; 250 to 300 in Rutherford County, 7.5. So now it’s kind of trending over to a buyer’s market in that price range. However, from 300 to 350, it pops down to 5.66. A little bit of that is there’s so much new construction in that 250 to 300. That’s why it’s slightly higher. When you go to 350 to 450, it goes up to 6.8. When you go 450 to 550, listen to this. It’s from 6.8 to 18 months’ supply from 450 to 550. That is definitely, definitely a buyer’s market at that kind of absorption rate; 550 to 650, it goes to 25 months’, which is a two-year supply of homes. And anything over 650 runs up to 27 months, which is obviously over a two-year supply as well.
So yeah, when people ask me, “Are home prices going up?” Yeah, generally speaking, under 350, definitely, definitely. But when you get over that, it gets a little tougher, and the higher you go in Rutherford County in home price, the tougher it gets for the seller, the better off it usually gets for the buyer. So anyway, I hope that report helps you, maybe brings you up to speed on what your house is doing, but I appreciate you tuning in. And if you need anything real estate related, remember John Jones Real Estate, 867-3020.
Tune in to today's TMC where John discusses how the buyer is the smartest person in the market.
JOHN: Hey, guys. This is John Jones. The title of this segment on Tuesday Morning Coffee is “The Buyer is the Smartest Person in the Market.” Now I would have a lot of sellers disagree with me on that, but the truth of the matter is the buyer is the smartest person in the market. You’ve heard the old adage, “A home is only worth what you can sell it for.” Well, who determines what you can sell it for? It’s the market. It’s the buyers in the market. Right now more than ever, we have a more sophisticated buyer than we’ve ever had. The reason being, the buyer has this computer, this smart phone, this tablet where they are engrossed in information every day.
Most of the buyers that we’re working with right now are going to one of the major sites every day, whether it be Trulia, Zillow, RealTracs. They’re also getting e-mail alerts to where when something hits their parameters, they know about it instantly. When you look at that information, like the buyers are in a small segment of a market, which most buyers have got it pinpointed to a certain price range, a certain area, those people, it’s amazing. They know that market inside and out. In fact, a lot of cases, when they tell me they’ve kind of been looking, “John, here’s what we’re looking for,” they’ve been on the Internet for months looking at this particular market.
I have to go back to the office and really regroup and learn that market just as well as they already know it. It’s amazing the things they can tell me, and this is all because of the information and technology. It makes things faster. It makes it very easy for a buyer to learn more about a home. So right now, buyers are the smartest person in the room. So with low inventory like we have and a lot of price ranges, I tell my sellers, “Look, in two weeks, in a lot of cases, maybe not the higher price ranges, I’m going to know whether we have priced this home correctly. Either we’re going to have an offer, which means we’re probably in the ballpark, or we’re not.
If we have ten people walk through this home in the first two or three weeks and I have no offers, that is telling me or the market is telling me they’re rejecting our price. We need to adjust it and adjust it quickly. The biggest mistake a seller could make is waiting two or three months to adjust the price. Now I would not have said this 10 years ago, 15 years ago, and the reason I wouldn’t have said it is information moves slower. It took me a little longer to figure out what the market was saying about particular property. Now guys, 250 and under, I’ll know in two or three weeks in the current climate of the market we’re in where there’s more buyers in that market than there are sellers.
They’re sitting on the fence, waiting to pounce. They’re looking at the computers every day, so we’ll know pretty daggum quick. So I say this a little tongue in cheek, but I’m being very serious. The buyer’s the smartest person in the market right now, so we must listen to them as sellers. We must understand them. We may not agree with them. We may not like the message they’re giving us, especially when it tells us maybe we’re not going to get as much as we want for the property as sellers. But I promise you this. They’re going to give you accurate information if you just listen to them. Thanks a lot. If we can help you in any way, please call us, 867-3020. Thank you.
During this episode of TMC John discusses April 2014 Rutherford County Housing Market Statistics.
JOHN: Hey, guys. Tuesday Morning Coffee. Thanks for tuning in. Today, we’re going to talk about April numbers 2014. Slight increase in April over April 2013 of 3.4% in closed sales, just a slight increase, which has pretty much been the trend so far this year. Year to date, we’re 2% up over this time last year, which basically marks the end of our first quarter. Also, pendings this month are—pendings for April were slightly down compared to pendings last year, about 6%. We’ll see how that plays out next month with closed sales. Our inventory is also down 4.6%. Now, I think the inventory is part of the reason maybe our sales aren’t quite as high as they could be. Because I think right now in a lot of price ranges, there’s buyers there, especially in the lower price ranges, but there’s no homes there for them to buy.
So that’s going to be an interesting thing as we move forward. Right now, days on the market is down from 78 days this time last year to 70 days now. Like I said, the year-to-date closed sales are down 2%. What I’m really interested in seeing is this. As we move into the second quarter and the second half of the year, our last year, the second half, we had some bumps along the way. Interest rates kind of took a little uptick on us, and also we had the government shutdown, so that caused some things to kind of slowdown that second half of the year. It’s going to be interesting to see how we compare as we move into that part of the year, which is going to be a few more months. But right now, everything’s pretty vibrant.
The biggest problem I see in the market right now is inventory under 250,000. If you’ve looked to sell your home or been thinking about it or maybe you backed off a couple years ago because you couldn’t get what you thought you should get, you might relook at that because prices have come back in a lot of cases almost to 2007, 2008 numbers. Give us a call, 300-7475.
Tune in to today's TMC where John discusses March 2014 Rutherford County Housing Market Statistics.
JOHN: Hey, guys. John Jones here with another edition of Tuesday Morning Coffee. Today, we’re going to talk about March numbers, March compared to last March. We were up slightly 2% over this time last year in closed sales for the Month of March. However, pendings were up 6.3% over March of last year. Our inventories are continuing to decrease. We’re down 6% in inventory of single-family homes. Average sales price is up to 176,000 in March of this year compared to 176,000 this year, 163,000 last year.
Days on the market is down eight days. It was at 79 days this time last year, and it’s at 71 days now. What does this mean? I think you’re going to continue to see a little rise as we keep going forward. The big issue we’re having right now in the market is purely inventory. In certain price ranges 250 and under, it is very, very hard to find a home, and if you do find one, it doesn’t last usually—if it is remotely priced in the ballpark, it doesn’t last more than a day or two in a lot of cases. The upper end range is still pretty tough. As you get over 400 and as you keep going up, it gets harder and harder. But we are seeing some of those homes starting to move a little bit.
So I’m optimistic that maybe that market will bust loose a little bit as well, but if you should need anything real estate related, please don’t hesitate to give us a call at John Jones Real Estate, 867-3020.
During this episode of TMC John discusses 5 things that will turn a buyer off.
JOHN: Hey, guys. John Jones here to tell you about my five biggest turnoffs to buyers when they’re looking at a home. These are the five biggest turnoffs, and I promise you they’re 100% accurate. Overpricing for the market is number one, and that’s number one by a long shot. If your home is overpriced, it’s a lot like crashing a country club without a membership. You will be found out and you will asked or escorted away. You will get some negative feedback, but the worst feedback you will get is total silence. You will get hardly any lookers and no offers. And the biggest problem with overpricing is the most qualified buyers out that for your home because it’s over the radar. They’re flying under the radar, and they’re missing your home completely.
Number two biggest thing that kills a home is smells, bad odors. Cat, animal smells, cat urine, all that stuff. Smoke. Even smokers are turned off by smoky houses these days. Whatever it takes to eliminate the bad odor, do it. Get people to be honest with you about it because obviously if it smells bad, you don’t know it smells bad or you would take care of it. You are used to the smell, so get people to be honest with you about that. Get rid of carpet if you have to, paint if you have to, ozone machines if you have to, whatever it takes. Get it because it will kill you. Bad odors will kill you.
Clutter is number three. Clutter in a house, if your home looks like the Cracker Barrel General Store, you’re going to have a problem. What it does, it confuses the eye, and it makes the rooms look smaller than they should. It gives a sense of uncleanliness in a way. It will really mess with a buyer if you have a lot of family portraits everywhere. The people that are buying are the potential buyers that are looking at your home do not want to see your family living there. They want to see their family living there, so you have to get rid of a lot of stuff and make things nice and neat.
Number four is deferred maintenance. That’s just a polite way of saying your home is falling apart. If your gutters are falling off, if you have wires coming out of something or things are in bad repair, you must get them fixed or you are going to penalized severely for it. Home ownership, there’s a responsibility with it, and that is to keep your home in good repair. Definitely get things picked up, cleaned up, fixed up. Make sure everything’s working the way it’s supposed to.
The last thing, dated décor. Avocado appliances, harvest gold tile, they’re out and people don’t want to see them. The reason a buyer is looking at your home and not looking at new construction is cost and location, but that doesn’t mean they want the dated things. They want modern things, semi-modern things in a house. If your home looks like it came from the Brady Bunch show, you definitely are going to have problems. Once again, you’re going to get penalized. If you have brown paneling, paint it. If you have harvest gold tile, there’s glazing companies out here that can do miracle work with older-looking tile. New appliances are a must. Anything like that, get it modernized. Hardware on doors is a real inexpensive thing to change. Light fixtures is not a real costly thing to change. Plumbing fixtures, once again, is something you need to do.
These are my five biggest turnoffs for buyers. I hope they make sense to you. If you have any questions about any of this, please give us a call. Thank you.
During this episode of TMC John discusses February 2014 Rutherford County housing markets statistics and the "tale of two markets."
JOHN: Hey, guys. John Jones here. Tuesday Morning Coffee. We’re going to talk about February numbers real quick. Not a big increase in February, 1.4% in closed sales over this time last year. We’re only up 2% in closed sales year to date. A big reason for that, I think those numbers should be a little better. I think you’re going to see them getting a little better going forward as the weather gets better. We’ve had one of the hardest winters that I can ever remember, and it has affected sales. Our pendings for this month are up 7.3% over this time last year for February.
But really, what I want to talk about is we have a couple of things going on in our market. We’ve got what I call couple different markets. Overall, we’re reading in the news and everything like that that home sales are really doing good; prices are coming up. And in Rutherford County, that is the case overall, but right now our total market absorption rate is 4.4 months, which is pretty good clip, but when you look inside the numbers, if you go to under 250,000, that number shrinks down to 3.4, which kind of tells you that that is definitely a seller’s market under 250 in Rutherford County.
When you go over 250, that number jumps to nine months’ supply, which definitely benefits the buyers. When you go over half a million in our marketplace, that number jumps to 24 months, which is definitely, definitely a buyer’s market. When you get to that point, prices are not going to be appreciating if there’s that much supply. They’re actually going to be depreciating. Under 250, they are appreciating, so when you talk about the market and if it’s good or bad, ti really depends on what price point you’re in in Rutherford County. If you’re a buyer over half a million, it’s a good market for you. If you’re a seller, it’s not so great. If you are a buyer under 250, prices are moving up on you, so it’s not a real beneficial market to you.
But if you’re a seller and been sitting in the sidelines and you live in a $180,000 house, it’s the best time to sell than it’s been in the last five years. Just depends on what price point you’re in. If you have any questions about your home or what to buy or what to sell or what your particular market looks like, please don’t hesitate to call us at 867-3020. Thank you.
Don't miss this episode of TMC where John gives the key to selling your home.
JOHN: John Jones here. Tuesday Morning Coffee. Thank you for tuning in. We’re going to talk about a subject today that is near and dear to my heart, a little bit of sarcasm there. Pricing a home. I talk about it every day. I read a great blog by Blanche Evans. I want to give her credit. She is a writer for a trade publication called Realty Times. She wrote a real kind of funny blog, and the gist of it is this: We get so hung up, and we’ve heard all our lives that it’s location, location, location to sell a home. Well, if that’s the case, a home in a bad location would never sell, correct? The truth of the matter is it’s location, condition, and price that sell a home. And I say price up here because price can trump these other two factors.
I can’t pick up the home and move it, but I can price it accordingly. I can adjust or lower the price accordingly. So what I mean by that is a good home in what we call a good location will sell at a fair price, but it can be the best location in the world, it can be on Malibu, but if it’s overpriced it’s overpriced. Location isn’t going to help you there. But it can sell at a fair price. A home in a terrible location, backed up to railroad tracks and whatever, it can sell at a fair price. Now it’s not going to sell as the same home would in a better location, but it can sell at a fair price. A home in good condition will sell at a fair price. A home in poor condition will sell at a fair price. It just won’t sell as much as home of the same comparable home in good condition.
We get caught up so much as sellers wanting to get a certain amount out of our home really for no other reason than that’s just what we want. It has nothing to do with what we want. It has everything to do with what will the market bear. So if you’ve got a home sitting out there on the market forever, your first inclination is to blame your agent. He’s not doing enough. She’s not doing enough. Well, the only reason you should blame their agent is if they weren’t upfront with you on the front end about your value of your home. If that’s the case, you can get mad at them, but I hear so many times is I’m the second guy on these listings after a home has been on the market for six months, I’ll say, “Tell me about your experience with your…” “They didn’t do anything. They didn’t market the home well enough.”
I’ll tell them, “Guys, I can come out here and stand in your yard on a Sunday afternoon naked, and I would draw a crowd to come look at your home. They’ll probably get sick, but I can draw a crowd. But that doesn’t mean they’re going to buy your home. They’re comparing your home, and now they’re comparing it on this Internet before they ever—we have to pass the Internet before we ever get a physical showing comparing you to other homes.” If your home is in bad condition and you don’t want to touch it, that’s fine. We’ve just got to price around it. If your home’s in a bad location—how many times have I heard this: “If this home was in Brentwood, I could get another 200,000.” I say, “I agree with you 100%. There’s one problem here. It’s not in Brentwood. There’s another thing you need to remember Mr. Seller. If it was in Brentwood, you would have paid 200 grand more for it.”
Has nothing to do with anything, so guys, if you want to sell your home, it’s about like selling anything else in this world whether it’s a Nissan Titan truck, which I just bought for my 16-year-old boy, a used truck. That’s an exercise in futility, trying to find a used truck. I figure out real quick in about 20 minutes what that truck is probably worth by looking at the market. I could tell by looking at the market on Craigslist or whatever type website I was on, I could look at the market and figure out which ones were overpriced. I didn’t even have to go look at those. I wrote those off because I could tell what the market was giving me as far as the value of that truck. So same with a home. If you want to sell your home, find the right price. Get a good realtor who will be honest with you and give you the good, sound advice on price.
Thank you. If we can help you, 867-3020.
Tune in to today's TMC where John gets on the white board to discuss January 2014 Rutherford County Housing Market Statistics.
JOHN: Hey, guys. John Jones here with Tuesday Morning Coffee. We’re going to talk about January numbers. First month of the year. It’s been a cold one, and I believe it’s affected our numbers a little bit. But let’s go ahead and look at them. We’ve got the whiteboard out today. Looking year over year, January last year we actually closed 242 single-family homes in Rutherford County. This year 244. So up, but just pretty much even up two units. Pendings down 6% from 352 to 330. Not real too worried about that. You’ve got to remember this January was a very cold month, and that slows down traffic quite a bit, so I’m not getting too concerned here.
Days on the market. This is interesting. Eighty days last January was the average home, 65 this January. So that number’s shrinking. I believe the reason that number’s shrinking goes to the next category. Inventory is shrinking. We’re going from 1,505 to 1,365. That’s down 9%, so our inventory is decreasing. Our average sales price has come up about 8% from 157 to 171, so the market is moving in a nice healthy manner. I believe it’s not going to do anything crazy this year. I believe it’s just going to be steady and healthy. I believe rates are going to start easing up a little bit. I was out driving around today.
There’s a lot of new construction, which is something that we obviously need if you look at our absorption rate numbers and look at our inventory numbers. So I’m optimistic about a great 2014. I think it’s going to be a pretty good market for buyers and a better market for sellers as well. If you need us for anything, we’re here, 867-3020. Thank you.