According to the National Association of Realtors, pending home sales are up by 0.5% from the month of December. NAR gathered this information from their Pending Home Sales Index (PHS), which is an indicator for housing activity that tracks signed real estate contracts in order to measure housing contract and sales activity.

The data they gathered uses both seasonally adjusted, as well as not seasonally adjusted data, in order to allow for the most accurate results. Their PHS Overview Chart clearly identifies their results.

Due to this information, the National Association of Realtors has forecasted existing home sales and price growth to moderate within the 2018 fiscal year. This is due to the new tax laws that are expected to impact high-cost housing markets.

What does this mean for realtors? Sell while the market is still high! NAR chief economist Lawrence Yun speculates that the rise in home sales is due to the current healthy jobs market, as well as an overall increase in wages. While this is wonderful news for the time being, Yun also predicts that consistent inventory shortages and a rise in home prices will cause sales activity to slow and gradually decrease throughout the year.

Therefore, it is better to act while the market is still hot! Traditionally, real estate has always been known as a risky game and real estate professionals must know when to make the easy bets – now is the time. Clients are more likely to sell now more than ever, especially due to the extreme increase on return on investments that have recently been released.
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Lawrence Yun states that, at the moment, “jobs are plentiful, wages are finally climbing, and the prospect of higher mortgage rates are perhaps encouraging more aspiring buyers to begin their search now.” Now is the time to take charge!

Seritage Growth Properties (NYSE: SRG) is making progress on its anticipated late-summer completion of a major renovation that will welcome new shops and restaurants to the East Colonial Drive area.
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Last year's removal of the Sears location at Orlando Fashion Square was the first step toward installing a 60,000-square-foot Floor & Decor location and a more than 40,000-square-foot Orchard Supply Hardware store as mall anchors. The demolition was followed up by the leveling of the Sears Auto Center, which left even more space for additional tenants.

Fast foreward about 10 months: The post-demolition debris field is now replaced by a brand new building measuring more than 110,000 square feet as heavy machinery moves earth for parking lot renovations and infrastructure improvements. Meanwhile, a new 17,127-square-foot parcel, to be erected on the former site of the Sears Auto Center, will house an Olive Garden and LongHorn Steakhouse. See the photo gallery for a look at how things are shaping up.

New tenants will add jobs, as well as broaden the retail and restaurant choices for the neighboring Baldwin Park community and downtown Orlando.

The new construction may just be the beginning of major changes for the property as DeBartolo Development Co. — the company behind the $100 million Mills Park mixed-use project — is under contract to buy the 44-year-old Orlando Fashion Square mall. The sale and new high-profile tenants are a positive turn for the long-struggling mall, which has changed hands four times since 2004 and, according to Orange County records, has an assessed value of nearly $41 million.

​In 1897, the Italian economist and sociologist, Vilfredo Pareto, discovered a very intriguing correlation after studying the different economies of several nations. He noted approximately 80% of each country’s wealth was controlled by approximately 20% of its population. Pareto called this phenomenon “predictable Imbalance”. This phenomenon was applied to more than just the wealth of a nation. He noticed that 20% of the Pea pods in his garden held 80% of the seeds and 80% of the land in his area was owned by 20% of the people.
It was soon evident that things were never equal:

20% is Vital and 80% is Trivial

Twentieth century quality management expert Joseph Juran expanded upon Pareto's conclusion by creating a general rule which became known as Pareto's Principle; that small cause(s) produce larger effects. From the 1950s to the present day, the 80/20 rule has become a general management principle as people employ it to evaluate problems and solutions, risks and rewards, efforts and results, and other productivity ratios.

When selling Real Estate, the same rule applies.

After selling plenty of houses throughout the years, I realized many families decided on one or two aspects that were important to them and not on all the features of the house. Knowing this, my marketing and selling time was cut in half. I started saving a great deal more time and getting results very quickly. I stopped selling the entire home and instead started to focus on the most important 20% of the home’s features.

Focus on the vital features instead to grab attention:

Let us look at some real-life examples of how this rule works and what impact it can have on selling your home.

CASE #1

A buyer is in the market for a three bedroom/ two bathrooms house. His agent found five houses to preview. Each meet his general criteria and are all in an area he would like to be in. The buyer and his agent drive out to look at the five houses. They all have very similar features with comparable prices. Imagine four of the houses don’t have a pool and one does. The buyer doesn’t know this because the agent didn’t mention it.

The buyer then goes out to see the four houses that don’t have a pool. He isn’t particularly interested in any of them. Then on the last house he steps outside and notices the pool! Suddenly, he is ready to make an offer. He may even pay above asking price.

His offer isn’t based on the 80% of the features the pool home shared with the rest. Instead, his bid is based on one unique attribute: a pool. The 80/20 rule predicted the sale of this house.

Sadly, in this case, so much time was wasted finding the perfect house. If only the agent known to look for the 20% differences, this may have been their first stop. On the other side, as a seller, you can leverage this rule to work in your favor by draw attention to defining characteristics in your home.

CASE #2

A real estate agent had a client visit her from out of town. This buyer did not have a list of criteria, he just liked the area. She drove him from house to house. In each case, the buyer suggested offers that were 10-20% below the asking price. He would not budge and the whole day was looking like a huge waste of time. Before the day ended, they decided to stop at one last house. It did not have much curb appeal nor was it attractive looking from the outside. However, this house broke the tough negotiator down. He was suddenly willing to offer the full asking price. What happened? What set this house apart from others? Simple, the 80/20 rule kicked in again.

The agent and her client had spent the whole day looking at houses that shared 80% of the same features. He did not care about any of those details. A bedroom was a bedroom as far as he was concerned. This house stood apart and he fell in love with the one remarkable feature. This plain Jane had something truly special. As you walked into the great room, there was a large window overlooking a gorgeous lake, and to top it off, the sun was setting below the distant tree line. That view sold the buyer. The other 80% could be improved. The view caused this buyer to stop negotiating and offer full price on the spot. This is the power of 80/20 rule.

As seller, learn how to leverage a unique selling point. Buyers who fall in love do not haggle over pricing. They make good offers.

With this mind, it is essential you take time to uncover your home’s most attractive and unique features. Compare notes with other houses in the neighborhood to see what makes yours stand out.

Potential Unique features:

• View
• Location
• Patio
• Florida room over looking an open field frequented by wildlife
• Shady backyard
• Large fenced yard.
• Pool
• Privately laid out

You get the point…

Look for the 20% difference and find a way to market it. This is how you get results. You cannot just throw the information into a listing. You must take the right approach.

Happy Selling!

If you need more information about the 80/20 rule, do not hesitate to call our office.

Real estate markets ebb and flow just like the seasons. The spring market starts hopping when the sun comes out, flowers bloom and winter is over. Conversely, fall signals the beginning of a slower market, which could be good for buyers.
If you’re in the market for a home, here are some reasons why fall can be a great time to buy.

Leftover spring inventory may result in deals
Home sellers tend to go on the market for the first time in the spring. They often list their homes too high out of the gate, which could mean that a series of price reductions follow during the spring and the summer months.
These sellers have fewer chances to capture buyers after Labor Day. By October, buyers are likely to find desperate sellers and prices that may, in fact, be below a home’s true market value.

Fewer buyers are competing
Families who want to be in a new home by the beginning of the school season are no longer shopping at this point. These families have exited the market, which means less competition. That translates into more opportunities for buyers.
Taking out an entire segment of the housing market provides millennial, single, and baby boomer buyers some breathing room. You’ll likely notice fewer buyers at open houses, which could signal a great opportunity to make an offer.

Motivated sellers want to close by the end of the year
While a home is where an owner lives and makes memories, it is also an investment — and one with tax consequences. A home seller may want to take advantage of a gain or loss during this tax year.
Buyers might find homeowners looking to make deals so they can close before December 31st and get that tax benefit. Ask why the seller is selling, and look for listings that offer incentives to close before the end of the year.

Homes for sale near the holidays signal a motivated seller
As the holidays approach, the last thing a homeowner wants is for their sale to be dragging on and interrupting their parties and events.
If a home has not sold by November, and it’s still sitting on the market, that homeowner is likely motivated to be done with the disruptions caused by their home being listed for sale.

Many homes don’t show as well once the landscaping fades
The best time to do a property inspection is in the rain and snow, because the home will be truly exposed for buyers. The same holds true for fall, when flowers die, trees start to shed their leaves, and beautiful landscapes are no longer so lovely.
Scratching the surface of the pretty spring home season and fall reveals home flaws, making it a great time to see each home’s true colors. It’s better to see the home’s flaws before making the offer, instead of being surprised months after you close.

Home sellers are making bank in today's market, realizing an average profit of 24.1 percent, or $39,900, in 2016, according to a recent study.

Sellers on the West Coast—where home prices have skyrocketed since the recession—saw higher returns. Sellers in Oakland, California took home the highest profits at 78 percent, or $235,000.

Duration is key. The average seller turning a $39,900 profit, the analysis shows, held on to their home for seven years and five months. The average seller in Oakland hung on to their home for seven years and three months.

The top 10 markets:

Oakland, CA

Portland, OR

San Jose, CA

Denver, CO

Los Angeles, CA

Sacramento, CA

Seattle, WA

Philadelphia, PA

New Orleans, LA

Boston, MA

"The housing market can change a lot in 10 years, and you see that reflected in this top 10 list," says economist Dr. Svenja Gudell. "Buying a home is one of the biggest financial decisions people will make in their lifetime, and it really paid off for sellers in these cities. Every city on this list has been growing extremely fast over the past decade, with the majority passing peak home value hit during the housing bubble."

The ability to amass wealth over the long term makes real estate the No. 1 investment for most Americans, despite proven results from stocks and other vehicles.

"It's extremely difficult to time the market, but if you're a longtime homeowner in one of these cities, you could potentially see a great return on your investment," Gudell says.

It's anyone's guess just how much higher home prices will go—and if they'll ever slow down. Besides, if you could see the future, wouldn't you rather focus your energies on predicting the winning lottery numbers?

Nationally, the median existing-home price for single-family abodes zoomed up to $255,600 in the second quarter of the year, according to the new quarterly report from the National Association of Realtors®. (Existing homes are previously lived-in residences as opposed to newly built abodes.) That was up 10.1% from the first quarter of the year and represented a 6.2% rise from the second quarter of last year.

Prices are continuing their steady climb because there simply aren't enough homes on the market to go around. As the economy has improved, more people who held off on becoming homeowners or trading up to bigger, better abodes are getting into the market.

"Household incomes may be rising and giving consumers assurance that now is a good time to buy," NAR Chief Economist Lawrence Yun said in a statement. "But these severe inventory shortages will likely continue to be a drag on sales potential the second half of the year."

The cost of buying a single-family home increased in about 87% of the metros that NAR looked at. Prices dropped in just 23 markets.

That might explain why sales of all existing homes, which include both single-family residences and condos, fell 0.9% in the second quarter. They hit 5.57 million, according to the seasonally adjusted numbers in the report.
"With new supply not even coming close to keeping pace, price appreciation remained swift in most markets," Yun said. "An increasing share of would-be buyers are being priced out of the market and are unable to experience the wealth-building benefits of homeownership."

Even the median prices of lower-priced condos and co-ops shot up to $239,500. That's up nearly 9.5% from the first quarter of 2017 and represented a 5.4% rise from the second quarter of last year. Sorry, buyers.

The most expensive metros were, unsurprisingly, primarily in California. Silicon Valley's San Jose topped the list with a median price of$1,183,400 for a single-family, existing home, according to the report.

Silicon Valley buyers are "commonly very well-to-do people in their mid-20s to mid-40s. Most typically are working in high tech," says Realtor® Avi Urban of Keller Williams Palto Alto. "Many of them are making enormous amounts of money."

But prices fluctuate during the year depending on the season as well as the local job market, he says.
"As long as the Silicon Valley economy is doing well, I do not expect prices to go down," Urban says. "I expect prices to continue with more gradual, moderate appreciation."

San Jose was followed by its neighbor to the north, San Francisco, at $950,000; Anaheim, CA, at $788,000; Honolulu, at $760,600; and San Diego, at $605,000.

Meanwhile, the cheapest metros were Youngstown, OH, at $87,000; Cumberland, MD, at $98,200; Decatur, IL, at $107,400; Binghamton, NY, at $109,000; and Elmira, NY, at $111,600.

Realtor.com

There are inherent risks involved in an Adjustable Rate Mortgage (ARM) vs. the relative predictability of a Fixed Rate Mortgage. So why would a homebuyer consider an ARM? Here are three situations where a homebuyer should give an ARM a closer look:
1. Planning to Sell Quickly
The main risk of an ARM is at the end of an introductory period when the rate adjusts. However, if you plan on using those savings to fund home improvements and sell before the introductory period is up to upgrade to a better property, an ARM may be a good financial decision.
2. You Need to Move Again
There are many reasons why someone would need to suddenly relocate. Perhaps you expect to move soon for work, or maybe there's a need to be closer to family. If a homeowner sells their house before the first rate adjustment, they could save a great deal of money on interest over a Fixed Rate Mortgage.
3. Low Monthly Payments
This is the most popular reason to seek out an ARM. If you are confident that you will be making as much or even more money in the future, you should consider getting a monthly payment that you can afford now and begin building equity.
A Fixed Rate Mortgage is usually the best home-buying strategy because long-term planning benefits from stability and predictability. But there are situations where an ARM makes more financial sense. Contact a lender to find out which loan is best for you.

​The housing market has been steadily improving. Home prices are currently higher than they were prerecession. Housing demand is up, due in part to near-record-low mortgage rates. And existing-home sales are continuing to increase. But a severe lack of inventory is putting a strain on the market. For the past 25 months, housing inventory has fallen year over year. June was no exception; at the end of the month housing inventory fell to 1.96 million existing homes for sale, down 0.5 percent from a month earlier and 7.1 percent from a year earlier. At the current sales pace, there is a 4.3-month supply of homes on the market; a year ago, total unsold inventory was at a 4.6-month supply. After years of the housing market favoring buyers, conditions have shifted to create a seller's market.
No Relief from New Construction
An increase in residential construction could do much to alleviate the shortage. But housing starts have fallen 14 percent since the end of 2016. Builders are experiencing shortages of their own, in skilled labor and affordable land. Onerous land-use regulations are also preventing builders from developing land and building homes. According to Freddie Mac, housing starts are expected to remain low throughout 2017, closing out the year around 1.27 million. However, housing demand is expected to remain strong, due in part to low mortgage rates that should hover around 4 percent throughout 2017. The high demand and low supply will help fuel a rise in home prices, with house-price growth expected to climb above 6 percent by the end of the year.
A Good Time to Sell
In June, existing-home sales climbed higher year over year. However, the severe housing shortage caused a slight slump in month-over-month sales. According to Lawrence Yun, chief economist for the National Association of Realtors, "Closings were down in most of the country last month because interested buyers are being tripped up by supply that remains stuck at a meager level and price growth that's straining their budget." Affordable homes in particular are in high demand but low in supply. With housing starts expected to remain low, the only relief from the housing shortage may come from sellers looking to put their home on the market while conditions are so favorable for selling.
Regional Home Sales
Northeast - Existing-home sales annual rate of 760,000; a decrease of 2.6 percent from May but an increase of 1.3 percent from June 2016.
Midwest - Existing-home sales annual rate of 1.32 million; this is the only region that reported a month-over-month increase of 3.1 percent. Sales are unchanged from June 2016. 
South - Existing-home sales annual rate of 2.23 million; a decrease of 4.7 percent from May and unchanged from June 2016. 
West - Existing-home sales annual rate of 1.21 million; a slight decrease of 0.8 percent from May but an increase of 2.5 percent from June 2016.

Summertime is ending, and children are returning to school. Now, is an ideal time for quick and inexpensive DIY projects that make a big statement around the home.
The average American homeowner spent nearly $3,000 on home improvements in 2015, according to a Statista report. The following list of affordable projects can be achieved for a fraction of that cost.
Create Wood Accents
Use flooring to make headboards and accent walls. Retailers like Lumber Liquidators offer a variety of styles of flooring, such as laminate, engineered wood, vinyl, Click Ceramic Plank, and more, and these flooring materials can easily be incorporated into many accent features. The flooring material can be affixed to walls and other surfaces with a special acrylic flooring tape. Flooring comes in a variety of styles that can be cut into striking patterns, like chevron or herringbone.
Install Butcher Block Countertops
Butcher block is a warm and rustic countertop style that's affordable and increasingly popular. Made from strips of wood bonded together, it can be sliced and chopped on directly—a great option for the minimalist homeowner. Installation is DIY-friendly, making butcher block an ideal weekend project with a good step-by-step tutorial in hand.
Build a Trellis
Building a garden trellis is a great way to draw more attention to what your green thumb has created. Dedicate Friday to sizing the trellis and cutting and framing the pieces, Saturday to building the panels and assembling, and Sunday for digging the holes and setting the trellis into place. Tailor to what's best for your backyard by building out of wood, bamboo, or PVC pipe.
Repurposed Planters
When gardening outside isn't an option, bring the garden inside by making unique planter boxes. A DIY planter box is typically more affordable than store-bought ones, and the design possibilities are endless. Reuse vessels, like shipping crates, mason jars, and tin boxes. Personalize them with colors and patterns to match your interior and inject personality and life into your space.
Add Crown Molding
Crown molding adds distinguished curves and angles to a ceiling, instantly elevating a room to a polished and sophisticated look. DIY crown molding does require attention to detail when measuring and marking the wall and cutting pieces, so measure twice to cut once.
These are just a few of the weekend-ready projects homeowners can do to bring new life to spaces indoors and out. A weekend DIY project is a minimal time investment that not only creates a sense of accomplishment but also adds value to your home.