Where is Rehoboth Beach, DE Real Estate Headed? The 2020 Predictions
Now that we’re almost to Thanksgiving, we find ourselves at the traditional moment when real estate’s soothsayers dust off their crystal balls and get busy. In the coming weeks, they will go to press with their projections, informed guesses, and unbridled hunches about how real estate will fare in the coming year.
Everyone contemplating Rehoboth Beach, DE real estate transactions in 2020 will be affected to some degree by shifts in the national disposition, so it’s always worth keeping an ear open to the experts’ conversations—their projections do influence what actually comes to pass (even if they’re ultimately off-target).
Last Friday’s Forbes release led the pack this year with Senior Contributor Aly Yale’s roundup of six opinions from Forbes-selected mortgage, real estate, and housing experts. For Rehoboth Beach, DE readers hoping to gain fresh insights about the coming year, the consensus views were less than electrifying: if any big changes are hovering over the horizon, the experts are keeping them on the q.t.
Housing. Throughout 2019, housing inventories have remained limited, in large part because people are choosing longer stays in their current homes. One study found that the average duration was 8 years in 2010—but is now 13 years. Says O. Kushi, chief economist for First American title insurer, “you can’t buy what’s not for sale;” hence, the cap on housing sales. The prediction for 2020? More of the same.
Real Estate: With interest rates low and incomes climbing, the share of younger buyers has been growing. Even so, it has still been an uphill battle due to higher prices and a dearth of starter homes. For 2020? Expect more price pressure. One prediction is an average price appreciation of 5.6% by next September (versus this year’s 3.5% rise).
Mortgages: This year, Rehoboth Beach, DE home loan rates fooled most of the experts, falling in line with the national monthly average with a drop of about 1%. Next year, they’re expected to “stay low—or maybe go lower.” The Mortgage Bankers Association concurs, projecting average rates of 3.7% to 3.9%. Freddie Mace “actually predicts rates…even lower”—3.5%-3.6%.
- Written by Jimmie Bachand
High Offer? Best Offer? Are they always the Same?
It’s exactly what you were hoping for when you listed your Ocean View, DE house: multiple offers! They’ve just been submitted, and now you get to choose which offer is the best one. The highest dollar amount may look like the instant winner, but that first blush reaction should be put aside while all the included provisions are given thoughtful consideration.
If the top line amount offered is the only major difference, the decision can be an easy one—but that’s seldom the case. Your house sale’s net yield can be greatly affected by the offer details—considerations like these:
Timing–if the proposed closing date will arrive too soon OR too far in the future, accepting it may prove more costly than you’d think. It depends on the move-in date for your next home—especially if that’s up in the air. Gaps can be costly—especially if it winds up forcing you into a too-hasty (or too expensive) choice for your next home.
Cash or ??—“All-cash” offers sound appealing, but some cash offers aren’t as open-and-closed as the term implies—such as those funded by a loan that’s not contingent on the sale. If that offer is based on a line of credit, there might be less certainty than another based on cash in the bank. There is also something to be said for the hoops buyers have to jump through when a lender is enlisted—some of those protect the seller as well as the bank.
All those Contingencies—The standard contingencies (like inspection, financing, appraisal, or sale of the buyer’s property) most obviously stand to affect the net proceeds of the sale—or even whether the sale closes. That’s why, when they’re waived by a buyer in the multiple-offer situation, they’re intended to beat out competing offers.
The details of multiple offers are frequently dissimilar enough to make it extremely important that they be thoughtfully weighed—something made more demanding since they seldom lend themselves to an apples-to-apples analysis.
- Written by Jimmie Bachand
Varying Age Groups Register a Bathroom Preference Schism!
Luxurious bathrooms are getting to be a staple in nearly all the new homes being built today. For future sellers whose older North Bethany, DE homes come up short in that department, an upgrade may be warranted—giving rise to a relevant question about which features are most likely to attract future homebuyers.
Earlier this month, The National Association of Home Builders issued a press release that addresses the issue. It summarized the findings compiled in their What Home Buyers Really Want publication—an exhaustive breakdown of the findings in the NAHB’s national survey of prospective buyers. The survey documents significant deviations in the features different American generations value—particularly when it comes to bathroom features.
It is fairly unanimous that all age groups would value having both a stall shower and a tub—but three-quarters of Millennials list a double vanity as their second most sought-after feature. Preceding generations (broken down into GenXers, Boomers, and Seniors) find that less compelling.
The greatest bathroom preference disparities between young and old appeared in four areas—
· Dual toilets in the master bath
· His and Her baths
· Color vs. white toilet, tub, and sink
· Whirlpool tub
— with the youthful respondents showing markedly greater partiality for dual accommodations, splashes of color, and whirlpools.
As a practical matter, when sellers consider remodeling their existing bathrooms, space limitations render some upgrades impractical. But for North Bethany, DE homeowners who are contemplating a bathroom remodeling project anyway, as a growing number of younger buyers populate the buying public, their preferences may be worth considering.
- Written by Jimmie Bachand