The State of the Nation's Housing

Despite the current slump, the long-term prospects for the housing industry are not bleak, according to "The State of the Nation's Housing 2009" report, released by Harvard University's Joint Center for Housing Studies (JCHS). The report details factors such as unemployment and the credit crisis leading to problems in the sector. Home equity is positively correlated with consumer spending, and plunging home values have pulled down consumer spending and economic growth in the last couple of years. Analyst say that the current recession provides a painful but much needed correction to the housing market.

So, what does the future hold? The so-called echo boomers, who are the children of the baby boomers, will be a big source of housing demand in the next year and beyond, according to the report. "Echo boomers are larger than the baby boomer population. Couple that with immigration and you have the seeds, the possibility of a housing recovery", said Nicolas Retsinas, director of JCHS. The report states that minorities will drive 73% of of household growth in 2010-2020, with Hispanics leading the way at 36%. Given the lower average incomes and wealth of minorities, the increase in minority households "could add significantly to the nations already widespread housing affordability challenges, according to the report.

What does this mean if you have a home to sell that is in the mid to upper price range, say $300k and up? Although the media reports may start to show an increase in home sales, the majority will still be lower priced homes. That means it will be more important than ever to have an "edge" when your home is competing for less buyers in the higher price brackets.

Using a Home Manager to stage and maintain your home in 'model home condition' will help your home show better and, statistically, these homes sell faster than homes with renters or vacant homes. They also tend to close for a higher price than their vacant competitors.

Vacant Home Issues

Did you know?

Up to 25% of Americans will move to a different home this year - many before their previous home is sold.

According to USA Today

"1 in 9 homes are vacant today" !

Consider some of the vacant home problems:

1. Insurance is more costly and may have limited coverage.

2. Vacant homes show poorly and can take much longer to sell, usually for less money.

3. Cities and HOA's may impose fines for unkempt yards and pools.

4. Green pools or standing water can attract mosquitoes, posing a potential health risk.

5. Vacant homes are prone to vandalism and theft.

6. There is frequently water damage and general deterioration.

These are just a few of the numerous issues associated with vacant homes today. In this current economy with rampant foreclosures, an inability to sell when needed because of lower home values, and an inability to get financing due to stringent new financing rules, more and more homeowners are being forced to leave their homes vacant.

What options does a homeowner have?

They may try to rent the property until they are able to sell it. Although the idea of getting some income from the home is tempting, this option can present a whole other set of problems for an inexperienced landlord!

1. Renters typically want a long-term lease which can interfere with a sale.

2. Landlord/tenant laws apply, often favoring the tenant.

3. Appointments to show the home must be made at least 24 hours in advance, even if you have a ready buyer in the car.

4. May have uncooperative tenants.

5. Closings can be delayed.

6. Home and yard may be messy or dirty.

7. No control over how the tenant furnishes or maintains the home.

Renting is not always the best solution for a homeowner who wants to sell the home.

There is another option!

In Arizona, there is a company called Arizona Vacant Home Solutions that has a perfect solution to the problem of vacant homes. They provide "Home Managers", who are independent contractors, that will stage the home with nice house furnishings that match the style of the home. They also keep the home tidy and in 'model home condition', ready for showings at any time. Utilities are on, yards and pools are maintained and small maintenance problems can usually be addressed before they become bigger or more expensive. Homes in this condition statistically sell faster and for more money. Insurance cost and other vacant home issues are reduced. Best of all, the service is provided to the homeowner at no cost!

It is important for all of us to do what we can to tackle the vacant home problem that is growing in the United States today. This is one solution that can help to prevent further decline of home prices and neighborhood deterioration.