The housing market is in unparalleled times, and though it is a seller's market, it is important to get the most you can out of your home! Simple interior and exterior home staging can make a world of different in attracting as many offers as possible. Most buyers need the help of a staged home to assist them with visualizing the potential of the house and drive them to making an offer. See below a list of simple things you can do as a seller to stage your house inside and outside and get yourself ahead of the game.
Did you know that Carl Johnson Real Estate works with some of the best staging companies in the business?
Click here to see some fantastic before and after pictures of our past listings.
Which 2021 trends will influence luxury real estate in 2022? Curating surveys from Coldwell Banker Global Luxury Property Specialists worldwide and data compiled by Wealth-X, the Institute for Luxury Home Marketing and other sources, Coldwell Banker Global Luxury’s The Report 2022 homes in on six market trends and opportunities to watch this year.
1. Supply and Demand Equilibrium
With about 73% of Coldwell Banker Global Luxury Property Specialists reporting that a lack of inventory remains a major challenge for 2022, the big question on everyone’s mind this year is: “Will supply and demand find an equilibrium after last year’s unprecedented imbalance of new-inventory-to-sales ratios?”
A few market factors could shift later in the year, putting supply and demand on more equal footing, including an increased number of listings hitting the market in the spring and an expected construction boom (Total housing starts for 2021 were up 15.6% by the end of 2021, according to NAHB). With luxury real estate prices so high, some insiders expect to see “real estate realism” set in certain markets, potentially pushing the number of buyers and sellers closer together. Time will be the ultimate test, of course.
2. Rising Price Thresholds
Luxury home prices rose faster in 2021 than in any one-year period in documented history. From January 2020 to December 2021, median luxury sold prices rose 20.3% for single-family homes and 16.6% for attached properties in the top 10% of 120 markets reviewed by the Institute for Luxury Home Marketing. The median 2021 sales price for single-family homes is now $1.55 million compared to $1.28 million in 2020 and for attached homes, it is $982,000 compared to $853,500.
The big question for 2022 is: Will these new luxury price thresholds become the new normal, even if supply and demand equalize? The answer lies in the “if.” While most Coldwell Banker Global Luxury Property Specialists contend that the current rate of price growth isn’t sustainable long term, the majority do not expect demand and supply to level out enough to bring prices down significantly in 2022. Even if construction does pick up later in the year, the effects on inventory won’t be felt for months, if not longer. And even if new construction brings new homes to market, it won’t necessarily lower prices.
3. A New Map for Luxury
Affluent buyers began making major life-changing geographical moves – often out of state – as they were freed up by work-from-home opportunities and searched communities that better fit with their lifestyle and values. In fact, 38% of Coldwell Banker Global Luxury Property Specialists surveyed for The Report said that most buyers were from out-of-state.
Among the beneficiaries of this paradigm shift were Sun Belt states like Arizona, Florida, Georgia, Nevada, North and South Carolina, Oklahoma, Tennessee and Texas. Four of these Sun Belt states – Florida, Texas, Tennessee and Nevada – have no income tax, which appealed to companies and top earners with financial considerations. Beyond financial and lifestyle motivations, affluent buyers have begun to factor other considerations into their relocation decisions, such as climate change. Concerns about natural disasters and extreme temperatures have filtered into the buyer consciousness, which goes back to the values of health and safety that became so essential after 2020.
Given the historic price increases and low inventory in many of these “hot” new markets, some folks may be wondering where are the places that may still have room to rise and houses to buy? This led the Coldwell Banker Global Luxury team to develop our first Opportunity Index for The Report, which measures year-over-year price increases against inventory levels. Among the markets with the highest buying potential for single-family properties in 2022: Staten Island, Delaware’s Sussex County Coastal, Cincinnati, Charlottesville and Napa County. Meanwhile, Cincinnati, Lake Norman, N.C., California’s Marin County, Greater Seattle and Coastal Pinellas County, Florida, may still have room to grow for attached homes.
4. Multiple Home Ownership and Rising Real Estate Footprints
Whether it is because of wealth creation, changing lifestyle preferences, climate change considerations, politics or economics, there has been a rapid rise in global consumers who own multiple homes. Nearly 70% of individuals with a net worth of $5 million+ now own two or more properties, per Coldwell Banker Global Luxury’s most recent “A Look at Wealth” report based on Wealth-X data.
Traditional lines between primary residences and secondary residences have also become blurred with many affluent choosing to spend more time in their secondary homes, or in some cases, deciding to add new homes to their real estate portfolios. All of this has led to an expanding global residential footprint among today’s high-net-worth (HNW) individuals. According to a new review by Wealth-X from 21 major cities outside the U.S., the top locations with the highest real estate footprint, which considers all properties owned by affluent individuals with a net worth of $5 million+ include: London, Paris, Singapore, Geneva and Beijing.
5. Sustainability Shift
The expectation for 2022 and beyond is that more homes will go “green” because of the shifting buyer preferences and the construction industry’s growing commitment toward a zero-carbon future. Sustainability and environmental considerations were already becoming increasingly important purchase criteria among wealthy homebuyers, but the movement could gain even more traction moving forward. Areas of interest for green design include net zero energy-efficient homes, LEED certification, locally sourced or recycled materials, solar-paneled roofs, smart home systems, geothermal heating and cooling, and energy-efficient appliances and lighting.
According to research from NAHB, homebuyers say that they are concerned about the environmental impact of new builds, and more than half are willing to pay for upgrades like solar panels and insulated windows. This number is only expected to grow as more millennial and younger buyers enter the real estate market, who are especially attracted to homes that incorporate personal and environmental wellness into the design, and are most likely to view eco-friendliness as a buying factor. Younger generations of affluent consumers are set to account for 70% of the luxury market by 2025 and contribute 130% of luxury market growth, according to Bain & Company.
6. Return of International Buyers
International investment may return to the U.S. real estate scene as travel restrictions loosen and overseas investors who have benefited from massive wealth creation look to the U.S. for their real estate investments. Approximately 83% of Coldwell Banker Global Luxury Property Specialists anticipate the return of international buyers to the U.S. market. Major metropolises like Los Angeles, New York and Miami remain favorites among international investors, but suburban cities may begin to see foreign investment as buyers seek single-family homes, larger spaces and increased privacy. Below, are the U.S. hotspots for international buyers by country.
Connecting the Dots
As buyers continue to move to new locations, agents must understand their client’s needs, be knowledgeable about their local community and be aware of the lifestyle offered within that community – from school waitlists to local philanthropies and membership clubs. They also need to be well-versed in what’s happening in other markets as well as macroeconomics, the flow of wealth and shifting affluent buyer preferences and concerns. “It used to be agents only had to know their market, but with so much movement happening in luxury, they need to be able to speak about other markets from a place of knowledge,” notes Liz Gehringer, President of Affiliate Business and COO of Coldwell Banker Real Estate.
Click here for information on 2022 design trends.
Who do you know that would benefit from the level of marketing that you have seen Carl do for his Real Estate company? We work by referral with this Marketing Agency and would appreciate your referral for a REALTOR® that works outside the state of N.C. or a Builder in the U.S. Simply call/text Carl 919-880-0904 with their name & number and he will take great care of them.
Did you know that Carl launched a Real Estate Marketing Agency for Real Estate Agents outside NC and Builders in the U.S., 4RE Marketing? This agency is the exclusive marketing agency for Carl Johnson Real Estate @ Coldwell Banker HPW. Don't worry, Carl is still 95% Real Estate all the time, as his staff is running this marketing agency. This new marketing agency is a product of Carl's staff that has been creating and executing his marketing since Carl started in Real Estate.
CONCIERGE STYLE MARKETING
Exclusive Full-service Marketing Agency for
Real Estate Agents outside N.C.
& Builders in the U.S.
4RE Marketing provides a turnkey marketing solution that reinforces the referral business model for Real Estate agents outside N.C. and Builders in the U.S. 4RE Marketing’s unique position, is our proven successful marketing model which focuses on five key concepts: connections, consistency, experience, social media and original content. Our skilled staff is trained in all five of these areas to create custom solutions that fit our clients business needs for success. We do this important but tedious work for our clients, so that our clients focus on what they enjoy, working with clients.
The Founder, Carl Johnson, recognized this pattern for success after his 35+ years of experience in the marketing world. Personal connection, when paired with consistent targeted social media and website usage, that is driven in a thought leadership way, will guide a business to success. Consistent marketing at this high level has proven successful to Carl’s own Real Estate business, which has doubled its sales year after year while implementing these practices.
The challenge for Real Estate agents is staying on track with so many time-consuming marketing tasks. This is where 4RE Marketing comes in. 4RE Marketing offers a wide variety of packages for our clients needs that assist with reaching our clients goals, from social media to original content. 4RE Marketing does the posting, designing, scheduling and organizing, while our clients go out and make the magic happen with their clients! 4RE is exclusive to only one Real Estate agent per region/coverage area outside the state of NC, giving our clients an edge above their competition.
Please note that builder packages are customized to the builders needs and are not exclusive to an area. Kindly reach out to one of our professionals and we will set up a meeting to discuss your builder marketing needs.
We would be honored by your referral. Kindly text/call 919-880-0904 with their name and number and we will take great care of them.
Click here to visit the 4RE Marketing website and see samples of our work.
Dr Lawrence Yun, Chief Economist of the National Association of REALTORS®, made the following comments regarding interest rates in this LinkedIn post:
"The Federal Reserve will raise its interest rate this week. It only directly controls the short-term fed funds rate that is not for you nor for me but for the banking system.
The Fed does not directly control mortgage rates. What to expect? The first rate hike in 3 years will not make much of dent to mortgage rate on the day of the announcement or even in the immediate weeks following. The mortgage rates already made an upward move several months ago in the anticipation of it."
Quote from Carl
"Please note that this is not a HUGE rate hike. Let's keep this in perspective. Rates are still low and there are lots of buyers looking and there is still a low inventory of homes on the market. This supply and demand issue is still affecting the market. The very minimal rate increase, from my perspective, is not affecting the number of buyers on the market."
In Chatham County, there was a 27.5% decrease in new listings in February. The number of closed sales decreased 4.9% between 2021 and 2022. Median sales prices also increased by 36.7 percent. In February, Chatham County median sales price was slightly higher than the median sales price for all MLS listings.
In Durham County, closed sales have decreased 0.4 percent year to date. Median sales price has increased 32.8 percent when compared to February last year, moving from $290,00 to $385,000. Average sales price increased by 23.9% year to date. In February, the Durham County median sales price was much higher compared to the median sales price of all MLS listings.
The number of listings in Orange County has decreased by 19.3 percent, from 311 new listings year to date last year to 251 new listings this year. There was a 0.4 percent increase in closed sales. Additionally, median sales price increased by 29.3 percent, from $327,550 to $423,500. In February, Orange County median sales price were below the median sales price for all MLS listings.
In Wake County, there was a decrease of 21.3 percent in the number of new listings year to date compared to last year. The number of closed sales decreased 12.8 percent. Median sales prices increased by 24.3 percent year to date, rising to $435,000. Compared to the median sales price for all MLS listings, Wake County median sales price were on par for February.
Click here to learn more about the luxury home market by reviewing this report for 2022.
Get in the Spring Spirit and get ready to freshen up your home! Sunshine and warmer weather means it is time to check off some projects for you home, especially the home's exterior after a long winter. From gutter maintenance to upgrading you deck, now is the time to review what type of home projects you would like to check off. A new coat of paint inside the home can give a fresh new feeling that may be just what you need going into the new season. See a list below with some great Spring Project suggestions to help you get started!
Getting ready to list your home? Click here for 10 Ways to Prep your Home for Sale!
Due to the COVID pandemic, everyone has spent more time indoors over the last two years. Whether working from home, home-schooling the kids, or simply isolating for safety, the home has taken on a whole new meaning. With a new appreciation for the comforts of home, design trends are changing our living spaces for 2022.
While the kitchen has always served as the hub of the home, that concept will be exemplified in 2022. Kitchens that focus on cooking, family gatherings, spacious layouts, and luxurious finishes will be in the spotlight. Expect to see a variety of quality kitchen appliances that simplify cooking, food storage, and cleaning chores. Open kitchen layouts that emphasize family gatherings and provide plenty of elbow room for guests will replace kitchens with small, closed-in spaces.
Multi-functional spaces that serve many purposes will take a back seat to dedicated spaces that address specific needs. In 2022, there will be a surge in spaces dedicated to work and relaxation.
Bold Colors and Patterns
Homeowners are stepping out of their comfort zones and taking risks with bold colors and patterns that boost their mood. Bold colors and patterns with intense hues and rich textures are topping the list. Bold paint colors in shades of teal blue, hunter green, and ochre, umber, and mustard are top sellers. Rich textures found in suede, velvet, mohair, and natural fibers are trending. Bold colors and patterns are showing up in rugs, upholstery, draperies, wallpapers, and accessories for the home.
Pearl Arnold., co-founder and principal designer of Triple Aught Design + Build, in the same Chapel Hill Magazine article talks about the Pantone Color of the Year, Very Peri. “Very Peri is nice and fresh! I think it would make a great accent color, and feel bright and clean."
Curves and Soft Edges
Curves and soft edges are replacing hard, straight lines in home furnishings and accessories. Architectural details like rounded ceiling soffits and walls, curved edges on kitchen cabinetry, and arched windows and doorways are trending in new home construction across the country. In existing homes, homeowners are incorporating this trend by buying sofas and chairs with softer, rounded corners, drum tables, round chandeliers, and oval or round area rugs.
Vintage and Antique Furnishings
Designers are noticing a renewed interest in vintage, antique, and handcrafted furnishings that lend the unique charm and character of the past. Homeowners are turning to old antique rugs, velvet draperies, vintage wallpapers, pleated and ruffled upholstery, and tasseled and fringed throw pillows to create a warm, inviting home. To prevent a stuffy atmosphere of days past, vintage and antique furnishings are being combined with decorative elements in bolder colors that feel more playful and less traditional.
In 2022, emotional wellness continues to be a major factor in home design trends. Homeowners are focused on ways to bring more natural light, ventilation, and healthy elements into their spaces. Design trends emphasize organic materials like wood, stone, and ceramic, relaxing features like fireplaces and waterfalls, and healthy air quality with more indoor plants. Homeowners want interior elements that promote a relaxing home atmosphere and a balanced mindset in uncertain times.
Another trend of 2022 is personal Journaling! Click here to learn more about Journaling and its health benefits!
The Institute for Luxury Home Marketing released their February 2022 Luxury Market Report. Click Here to download the full report which covers the luxury real estate market in North America. Below we highlight some key takeaways from the report that we feel are important to our clients!
Though things are not projected to slow down to what we used to call a normal market, "trends are showing that a price plateau is more than likely for at least the first quarter for 2022, as both single-family and attached property median prices have remained fairly consistent since October 2021. Inventory levels, which tend to fall in the last quarter of each year and not pick up until March of the following year are also following normal trends, although at a much lower level, as the number of luxury homes for sale has hit a 20-year low."
"It is also possible to predict that affluent buyers will continue to create a strong demand for luxury homes in 2022. The data for January 2022 already shows this strength of demand with single-family home sales increasing 29% and inventory decreasing 28% over January 2021. On the luxury attached side of the market, inventory is down 42% and sales are up 30%, year over year."
"While the demand for luxury real estate market is not turning over a new leaf, there is certainly an appreciation that a leaf has been turned when we look at the other ongoing trends; including a greater diversity in location choice, property types, ownership levels and what amenities have become major priorities for affluent homeowners."
"The claim that people are all leaving the city has been a little overblown, and there has been a substantial move back by those not ready to give up their metropolitan lifestyle. However, there has been a shift - with those returning to the city wanting much larger residences offering space as well more sophisticated amenities and technology that addresses their health and wellness requirements. "
See the Stats for Luxury Monthly Market Review for the Raleigh-Durham, NC Market!
Interested in Luxury living in the Triangle area? Click Here to read about Carl's Institute for Luxury Home Marketing Certification.
Thinking about starting a new home project? Is it a project you can do yourself or do you need to hire a professional? Follow the steps below to help walk you through the process of knowing when the right time is to DIY or not! When it comes to your home, it is important to have the right tools, safety measures in place, and legal paperwork done to make sure your project is safe. If you are willing to do research and the project isn't too complex, a fun DIY can save you time and money! Even hiring a professional doesn't have to be overly costly, find a budget and stick to it. See more cost saving ideas below.
Not sure if your renovation needs a permit? Click here to learn more.