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M R EP O RT | 15 COVER FEATURE floor plans, in move-in-ready condition, and a with a combination of good living, play (back- yards, pools), and work (home offices) spaces, are the ones that will go the fastest and fetch the best prices, experts said. "People want a house that's a blank slate— something that they can modify to their own style, rather than being pigeon-holed into a certain style," Koss said. The "blank slate" enables people to picture their own furniture, etc., in the space, unlike with an overly embellished property. Even though some people are starting to return to the office, homes with home offices or rooms that are easily convertible into home offices are also popular, according to Koss. Though some people are looking to move out of cities, there are still plenty of buyers who want to stay in a municipality. They pri- marily want to move into a home that offers a new and better lifestyle, said Brad Sivert, Head of Proptech and Marketing, Savant. "Lifestyle can mean more of a yard and other child- friendly home features," he added. Sivert cited a recent Zillow blog post that found the following: • Listing keywords indicating nearby parks, bonus space, and pools are some of the hot- test for attracting home-shopping families. • Families should expect to pay more for kid- friendly features, with listings that mention "treehouse" or "garage" associated with a 2.2% sale premium. • Child-friendly homes are also selling quicker than expected. Homes with a backyard mentioned in the listing description are selling more than five days faster. These outdoor features boost home sell- ing prices. The feature with the highest price premium is "treehouse," which contributed to a home selling for 2.2% more than expected. Other backyard features associated with selling for a premium include jacuzzi (1.6%), swing set (0.8%), and pool (0.5%). Beyond those features, Sivert agreed with others who pointed to the still growing popu- larity of a home office. Additionally, pools have changed from being a liability when selling a property to being an advantage. "About five years ago, having a pool in your backyard was deemed a luxury, but also a very expensive cost, and did not help your prop- erty value," Sivert said. "Having a pool did not dramatically help. Now, having a pool when you list a home increases the demand. It's the concept of having everything your family wants to do within one property." "The biggest challenge we see for homebuy- ers is actually knowing when to find the right house at the right time," Sivert said. "You need to look at the propensity to list model—the likelihood of a home or neighborhood having a home go for sale." There are a few different "propensity to sell" models with similar attributes, Sivert noted. CoreLogic's Realist offers a model showing a sell score, with ratings from 0-1,000 to predict the relative likelihood that a home will be sold in the next six months. By knowing a home is likely to be sold, a buyer can make an offer prior to any listing, and, therefore, stymie bidding competition that will drive up a property's price. Looking Ahead E xperts agree that, at some point, the run up in housing prices will have to level off. A decline—at least a slight one—at some point is inevitable. However, they also agree they don't know when that might happen. Clermont expects mortgage rates to stay low for at least the next year. Even if rates move up slightly, they will still remain historically low. Inventory of homes for sale, however, will continue to be an issue. Bopp pointed out that with the combina- tion of high lumber prices, carrying costs, and other expenses, builders see no profit in starter homes and are slowing down construction of other single-family houses until the prices for building supplies levels off. "A lot of people say that prices have to start coming down," Blevins said. "But they've been saying that for a year, and I'm not seeing it. As long as you have these wealthy buyers coming in and buying homes at about fair market value, that's increasing what the next person is going to have to pay. And we have a relatively strong local economy. So, people continue to put their money into housing. We may hit a bubble, but I'm not sure that it's 'just around the corner,' because there are still many things factoring into having a continued positive housing market." With rates expected to move up only slightly, if at all for the next year or so, and housing inventory expected to remain constrained, the seller's market for homes should continue for at least the next year, Adamo says. Sivert added, "Everyone says we're on the cusp of a bubble, but no one thinks the bubble is going to burst soon." PHIL BRITT started covering mortgages and other financial services matters for a suburban Chicago newspaper in the mid-1980s before joining Savings Institutions magazine in 1992. When the publication moved its offices to Washington, D.C., in 1993, he started his own editorial services room and continued to cover mortgages, other financial services subjects, and technology for a variety of websites and publications. Anywhere. Anytime. MReport Digital Bringing Today's Lending Headlines into Focus, MReport Digital Puts Mortgage Banking News at Your Fingertips Experts you trust. People you know. News you want. MReport is putting essential mortgage market news at your fingertips with our new digital edition, now available online via your smartphone, tablet, or computer. Enjoy the magazine at your desk, and tap into MReport Digital's easily accessible platform anywhere, anytime. Committed to giving originators, servicers, and all lending professionals access to smarter perspectives, MReport believes it's time to think differently about the mortgage industry. Because the American Dream is evolving . . . are you? Subscribe to MReport and MReport Digital now! Call 800.856.8060 or connect with us online at themreport.com to take advantage of our special introductory offer! digital.themreport.com powered by THEFIVESTARINSTITUTE