How to Freak Out About Millennials in a Statistically Responsible Manner

Source: The Atlantic   Is the meme about Millennials living in their parents' basements overblown? The Atlantic argues that it’s money and not basements that should worry the housing market because young people simply aren’t making enough money. There's just one economy, and it's slashed median incomes to historic lows. “More years of school + more student debt + lower starting salaries + a nervous housing market + stricter rules for new home-buyers = no new home buyers.” Read the full story

Tiny Houses Big With U.S. Owners Seeking Economic Freedom

Source: Bloomberg

Micro buildings and tiny homes are growing in popularity for many Americans who want to minimize expenses while achieving the dream of homeownership. Dramatic downsizing appears to be gaining interest among Americans based on increased sales of plans and ready-made homes and growing audiences for websites related to the niche. These tiny houses are typically 500 or fewer square feet. Read the full story

Consumers Increasingly Expect Higher Rents and Lower Home Prices

Source: Mortgage News Daily   According to Fannie Mae's National Housing Survey, there is slowly increasing confidence in the housing market and in the economy in general; however, the greatest change was in consumer expectations about interest rates. The number of respondents who think this is a good time to buy a house increased 2 percentage points from May to 70 percent, but those who think it is a good time to sell reversed a four-month climb to drop from 43 percent to 40 percent. Fifty-four percent of respondents expect rental prices to rise over the next 12 months compared to 51 percent in May. Read the full story

Investment plan to spur first-time home buyers

Source: HousingWire   The state of Virginia has enacted a new law that will allow first-time home buyers to invest up to $50,000 in financial institutions and declare them first-time home buyer savings plan. Proponents hope the policy will stimulate the housing market by allowing potential homeowners to put their tax-free earnings toward a down payment or closing costs. The law was championed by the Virginia Association of REALTORS®.  Read the full story

Market Matters

A city's 'walkability' drives real estate values Source: CNBC A new report from Smart Growth America ranks the walkability of the nation's 30 largest metropolitan areas, and there is a distinct correlation between walkability and real estate values. The author of the report, Chris Leinberger, commented, “Walkable, urban for-sale housing is by far the most expensive housing in the country. The range, depends on the market, between 40 percent and 200 percent greater than drivable, suburban housing. Twenty-five years ago that relationship didn't exist because walkable (cities back then) was not valued.” Read the full story

UCLA Anderson Forecast predicts 'normal' California housing market Source: LA Times   Construction jobs should continue to help drive job growth in Southern California over the next few years, according to the quarterly UCLA Anderson Forecast. The forecast predicts that the market will move toward more “normal territory” as foreclosures and other so-called distressed properties no longer flood the market, which will encourage builders to launch new construction. Read the full story

Obama’s housing nominee open to ending Fannie and Freddie Source: The Hill San Antonio Mayor Julián Castro, who President Obama nominated to be secretary for Housing and Urban Development (HUD), appeared before the Senate Banking Committee this week and expressed willingness to end the federal backstop established through Fannie Mae and Freddie Mac. Castro commented, “I absolutely believe that there are better alternatives than what we have in place with this duopoly and with the conservatorship.” Read the full story

An Update from Aracely!

Change is in the air!

 

I am also excited to announce that I am moving offices to TNG Real Estate in La Habra.  You will experience the same great service and professionalism in a great new location.  I look forward to serving all your real estate needs.