Wednesday, December 27, 2017
Wednesday, December 20, 2017
Income needed to afford an Orange County home now at $154,120 a year
Source: Orange County Register
Unless you have a huge bank account, you need to earn $154,120 a year to afford the median-priced Orange County house, the California Association of Realtors® reported Monday, May 15. Just 21 percent of Orange County households met that benchmark during the first quarter of 2017, the period covered in CAR’s latest affordability report. Home prices were slightly more affordable in Los Angeles County. Minimum annual earnings needed to afford the median-priced house there was $99,830 during the first quarter of the year – just shy of a six-figure income. The region’s most affordable housing remains in the Inland Empire. You need an annual income of $75,000 to afford the median-priced house in Riverside County and $52,790 for the median-priced house in San Bernardino County.
Unless you have a huge bank account, you need to earn $154,120 a year to afford the median-priced Orange County house, the California Association of Realtors® reported Monday, May 15. Just 21 percent of Orange County households met that benchmark during the first quarter of 2017, the period covered in CAR’s latest affordability report. Home prices were slightly more affordable in Los Angeles County. Minimum annual earnings needed to afford the median-priced house there was $99,830 during the first quarter of the year – just shy of a six-figure income. The region’s most affordable housing remains in the Inland Empire. You need an annual income of $75,000 to afford the median-priced house in Riverside County and $52,790 for the median-priced house in San Bernardino County.
Wednesday, December 13, 2017
Student debt prompts millennials to move back home
Source: USA Today
Twenty-six percent of millennial college students say they plan to move back home as soon as they earn their degree in order to pay off some of their student loans, according to TD Ameritrade's Young Money Survey of about 2,000 young adults. Thirty-two percent of millennials between the ages of 20 and 26 say they owe between $10,000 and $50,000 in student loans. The average student loan balance was $10,205. That is prompting more graduates to move back home with their parents to curb costs. Nearly half of the post-college millennials surveyed say they had "moved back to my parents' home after college." About one-fourth of those who are still in college say they expect to move back with their parents following graduation.
Twenty-six percent of millennial college students say they plan to move back home as soon as they earn their degree in order to pay off some of their student loans, according to TD Ameritrade's Young Money Survey of about 2,000 young adults. Thirty-two percent of millennials between the ages of 20 and 26 say they owe between $10,000 and $50,000 in student loans. The average student loan balance was $10,205. That is prompting more graduates to move back home with their parents to curb costs. Nearly half of the post-college millennials surveyed say they had "moved back to my parents' home after college." About one-fourth of those who are still in college say they expect to move back with their parents following graduation.
Wednesday, December 6, 2017
Real estate’s new normal: Homeowners staying put
Source: New York Times
The median amount of time homeowners live in their home rose to about eight and a half years in 2016, the longest tenure since Moody's Analytics and First American Financial Corporation began tracking such data in 2000. Mortgage rates may be the reason owners refuse to move, which is keeping inventory stubbornly low. And economists predict homeowners will continue to lengthen their stay in a home through the next decade. Many homeowners refinanced their mortgages in recent years when interest rates were at historic lows—around 3.25 percent for a 30-year fixed-rate mortgage. Now that interest rates have increased, mortgage payments would jump significantly for homeowners, even if they find a similar home for the same price. For example, a $500,000 30-year fixed-rate mortgage for $500,000 with an interest rate of 5.5 percent would increase a monthly payment from $700 to $3,600, including estimated taxes and fees.
The median amount of time homeowners live in their home rose to about eight and a half years in 2016, the longest tenure since Moody's Analytics and First American Financial Corporation began tracking such data in 2000. Mortgage rates may be the reason owners refuse to move, which is keeping inventory stubbornly low. And economists predict homeowners will continue to lengthen their stay in a home through the next decade. Many homeowners refinanced their mortgages in recent years when interest rates were at historic lows—around 3.25 percent for a 30-year fixed-rate mortgage. Now that interest rates have increased, mortgage payments would jump significantly for homeowners, even if they find a similar home for the same price. For example, a $500,000 30-year fixed-rate mortgage for $500,000 with an interest rate of 5.5 percent would increase a monthly payment from $700 to $3,600, including estimated taxes and fees.
Wednesday, November 29, 2017
Wednesday, November 22, 2017
The struggle is real for millennial home buyers
Source: CNN Money
After years of many experts lamenting how millennials weren't interested in becoming homeowners, it turns out many are actually diving in. But they're facing a lot of competition. Millennials are the largest group of homebuyers, according to Ellie Mae, a software company that analyzes mortgage data. In January, millennials represented around 45 percent of all purchase loans, up from 42 percent the same month in 2016. And many expect more millennial house hunters to jump into the market this spring buying season. But their path to homeownership won't be easy. New buyers this spring will also be up against buyers who started looking last year, but still haven't bought a home. A shortage of available homes has driven up prices -- particularly among starter homes that tend to fall within first-time buyers' budgets. There were 3 percent fewer homes on the market in February compared to a year ago, according to a recent report from Zillow, and home values are up nearly 7 percent.
After years of many experts lamenting how millennials weren't interested in becoming homeowners, it turns out many are actually diving in. But they're facing a lot of competition. Millennials are the largest group of homebuyers, according to Ellie Mae, a software company that analyzes mortgage data. In January, millennials represented around 45 percent of all purchase loans, up from 42 percent the same month in 2016. And many expect more millennial house hunters to jump into the market this spring buying season. But their path to homeownership won't be easy. New buyers this spring will also be up against buyers who started looking last year, but still haven't bought a home. A shortage of available homes has driven up prices -- particularly among starter homes that tend to fall within first-time buyers' budgets. There were 3 percent fewer homes on the market in February compared to a year ago, according to a recent report from Zillow, and home values are up nearly 7 percent.
Wednesday, November 15, 2017
Hispanic homeownership rate rises for second straight year
Source: RIS Media
Hispanics are an overriding force in homeownership, flouting national figures as they establish owner households at a rising rate for the second straight year. According to the National Association of Hispanic Real Estate Professionals’ (NAHREP) recently released 2016 State of Hispanic Homeownership Report, the Hispanic homeownership rate increased to 46 percent last year, leading an against-the-trend charge in spite of a decreasing national rate. The Hispanic homeownership rate was 45.6 percent in 2015 and 45.4 percent in 2014. In addition, more than 7.3 million Hispanic households owned their homes in 2016, with 330,000 new households added—38 percent of all households formed. What drivers are compelling Hispanics toward homeownership? Owning a home, for one, remains a hallmark of their American Dream. The majority of Hispanics view homeownership as a viable investment vehicle for wealth-building, as well as ideal for child-rearing.
Hispanics are an overriding force in homeownership, flouting national figures as they establish owner households at a rising rate for the second straight year. According to the National Association of Hispanic Real Estate Professionals’ (NAHREP) recently released 2016 State of Hispanic Homeownership Report, the Hispanic homeownership rate increased to 46 percent last year, leading an against-the-trend charge in spite of a decreasing national rate. The Hispanic homeownership rate was 45.6 percent in 2015 and 45.4 percent in 2014. In addition, more than 7.3 million Hispanic households owned their homes in 2016, with 330,000 new households added—38 percent of all households formed. What drivers are compelling Hispanics toward homeownership? Owning a home, for one, remains a hallmark of their American Dream. The majority of Hispanics view homeownership as a viable investment vehicle for wealth-building, as well as ideal for child-rearing.
Wednesday, November 8, 2017
8 Questions to ask yourself when deciding to rent or buy
Source: Credit.com
If you're at the age when your peers are making major life moves — getting married, having kids and buying homes – you might be feeling it's time to join them. Or you may simply just be at that stage all on your own. Either way, plenty of young adults are starting to get the home-buying itch. While there are a lot of appealing benefits to homeownership, taking on that kind of debt is not without risk. The decision to rent vs. buy is one you should make carefully. If you're trying to figure out your next move, consider asking yourself such questions as, "What is my top financial priority?" "Do I have enough for down payment and closing costs?" "And, how long do I plan to live here?"
If you're at the age when your peers are making major life moves — getting married, having kids and buying homes – you might be feeling it's time to join them. Or you may simply just be at that stage all on your own. Either way, plenty of young adults are starting to get the home-buying itch. While there are a lot of appealing benefits to homeownership, taking on that kind of debt is not without risk. The decision to rent vs. buy is one you should make carefully. If you're trying to figure out your next move, consider asking yourself such questions as, "What is my top financial priority?" "Do I have enough for down payment and closing costs?" "And, how long do I plan to live here?"
Wednesday, November 1, 2017
Wednesday, October 25, 2017
Here are the nation’s healthiest – and unhealthiest – housing markets
Source: CNBC
Housing remains in high demand in most of the nation, but the housing recovery looks increasingly uneven, depending on location. Whether buyers are shopping for their own homes or for investment properties that will throw off some cash, certain markets are becoming far more lucrative than anyone might have expected just a few years ago. Still, some of the hottest markets are falling from grace. A few of the recession's hardest-hit housing markets have suddenly some of the healthiest. Tampa, Fla., which lost thousands of homes to foreclosure in the past decade, now takes the title of the nation's healthiest housing market, at least according to TenX. It rated locations based on a number of key factors, including population and job growth, unemployment rate and wage growth, as well as industry-specific indicators like inventory and construction. Other healthiest housing markets include Dallas, Tex.; Columbus, Ohio; Las Vegas, and Jacksonville, Fla
Housing remains in high demand in most of the nation, but the housing recovery looks increasingly uneven, depending on location. Whether buyers are shopping for their own homes or for investment properties that will throw off some cash, certain markets are becoming far more lucrative than anyone might have expected just a few years ago. Still, some of the hottest markets are falling from grace. A few of the recession's hardest-hit housing markets have suddenly some of the healthiest. Tampa, Fla., which lost thousands of homes to foreclosure in the past decade, now takes the title of the nation's healthiest housing market, at least according to TenX. It rated locations based on a number of key factors, including population and job growth, unemployment rate and wage growth, as well as industry-specific indicators like inventory and construction. Other healthiest housing markets include Dallas, Tex.; Columbus, Ohio; Las Vegas, and Jacksonville, Fla
Wednesday, October 18, 2017
Why new homes are about to get pricier
Source: Builder
With the cost of building materials jumping 25 percent year over year, according to the National Association of Home Builders' NAHB/Wells Fargo Housing Market Index, builders are increasingly concerned about how this will affect home buyers in the new-construction market. In 2016, builders ranked the cost of building materials low on their list of concerns—but now it's one of their top five. The increased cost of lumber is a chief catalyst. "Negotiations on a new softwood lumber agreement between the United States and Canada ground to a halt at the end of 2016 and likely are stalled pending the results of an investigation into unfair import practices requested by the U.S. Lumber Coalition," the NAHB reports.
With the cost of building materials jumping 25 percent year over year, according to the National Association of Home Builders' NAHB/Wells Fargo Housing Market Index, builders are increasingly concerned about how this will affect home buyers in the new-construction market. In 2016, builders ranked the cost of building materials low on their list of concerns—but now it's one of their top five. The increased cost of lumber is a chief catalyst. "Negotiations on a new softwood lumber agreement between the United States and Canada ground to a halt at the end of 2016 and likely are stalled pending the results of an investigation into unfair import practices requested by the U.S. Lumber Coalition," the NAHB reports.
Wednesday, October 11, 2017
What home buyers wish they'd known
Source: NerdWallet
Nearly half of American homeowners recently surveyed said they would do something differently if they were to go through the homebuying process again, according to the NerdWallet’s Home Buyer Reality Report, which analyzed the steps more than 2,200 Americans took to homeownership. What are the top things consumers say they regretted?
Nearly half of American homeowners recently surveyed said they would do something differently if they were to go through the homebuying process again, according to the NerdWallet’s Home Buyer Reality Report, which analyzed the steps more than 2,200 Americans took to homeownership. What are the top things consumers say they regretted?
- 20 percent wished they had saved more money before buying a home
- 13 percent would do more research on the mortgage-lending process
- 14 percent would have shopped around more for a mortgage
- 13 percent would research the homebuying process more
Wednesday, October 4, 2017
Minorities increasingly priced out of housing market
Source: Marketplace
According to new report from real estate brokerage Redfin, it's getting harder and harder for middle-class families to afford housing in the U.S. In the nation’s 30 biggest metro areas, the number of home listings middle-class families can afford has dropped by 32 percent since 2012, and the shrinking pool of affordable housing is felt most acutely by minorities. According to the Redfin report, just 18 percent of new home listings were affordable for median-income Hispanic families, compared to 14 percent for median-income African-Americans. Both rates were down 11 percentage points from 2012. This is compared to 30 percent affordable for those earning the median income for white households.
According to new report from real estate brokerage Redfin, it's getting harder and harder for middle-class families to afford housing in the U.S. In the nation’s 30 biggest metro areas, the number of home listings middle-class families can afford has dropped by 32 percent since 2012, and the shrinking pool of affordable housing is felt most acutely by minorities. According to the Redfin report, just 18 percent of new home listings were affordable for median-income Hispanic families, compared to 14 percent for median-income African-Americans. Both rates were down 11 percentage points from 2012. This is compared to 30 percent affordable for those earning the median income for white households.
Wednesday, September 27, 2017
Wednesday, September 20, 2017
Millennials are saving for financial freedom—not retirement
Source: Yahoo Finance
Millennials often get a bad rap when it comes to financial responsibility. But it turns out those stereotypes may be off base. Millennials are saving more money than any other generation, according to a new study by Bank of America and Merrill Edge. But it’s what they’re saving for that really sets them apart from older generations. Saving for financial freedom is the No. 1 priority for millennials — 63 percent of millennials said they’re saving a set amount of money to enjoy their desired lifestyle. This is a stark contrast to older generations: the majority of the Gen X and baby boomer generations prioritize their savings specifically to leave the workforce and retire. This shift speaks to the bigger differences in the ways millennials and older generations view money, and what they prioritize in their lives. While it may not sound surprising that younger workers aren’t thinking about nest eggs as much as older generations, what’s a little different here is that they’re not thinking about retirement as a phase of life, let alone working to afford it. Millennials listed personal milestones as their top priorities: getting their dream job and traveling the world trumped more traditional goals like getting married and having children.
Read the full story
Millennials often get a bad rap when it comes to financial responsibility. But it turns out those stereotypes may be off base. Millennials are saving more money than any other generation, according to a new study by Bank of America and Merrill Edge. But it’s what they’re saving for that really sets them apart from older generations. Saving for financial freedom is the No. 1 priority for millennials — 63 percent of millennials said they’re saving a set amount of money to enjoy their desired lifestyle. This is a stark contrast to older generations: the majority of the Gen X and baby boomer generations prioritize their savings specifically to leave the workforce and retire. This shift speaks to the bigger differences in the ways millennials and older generations view money, and what they prioritize in their lives. While it may not sound surprising that younger workers aren’t thinking about nest eggs as much as older generations, what’s a little different here is that they’re not thinking about retirement as a phase of life, let alone working to afford it. Millennials listed personal milestones as their top priorities: getting their dream job and traveling the world trumped more traditional goals like getting married and having children.
Read the full story
Wednesday, September 13, 2017
With home prices out of reach, more buyers turning to parents for help
Source: KPCC Radio
In almost every metro area across the country, the number of people taking out new mortgages has fallen dramatically, but Southern California is a notable exception, according to a report by ATTOM Data Solutions. The report found that in the first quarter of 2017, U.S. new home loan originations fell 30 percent from last year and by 21 percent from the same period last year, to a three-year low. But in the Los Angeles metro area, mortgage originations were up by 4 percent, meaning more people have been taking out new home loans despite higher interest rates. More than 28 percent of loans in Southern California now have someone other than a spouse co-sign, such as a parent, compared with the national average of 22 percent. Among large U.S. cities, only Miami (40.2 percent), Seattle (37.4 percent) and San Diego (28.9 percent) have more co-borrowers.
Read the full story
In almost every metro area across the country, the number of people taking out new mortgages has fallen dramatically, but Southern California is a notable exception, according to a report by ATTOM Data Solutions. The report found that in the first quarter of 2017, U.S. new home loan originations fell 30 percent from last year and by 21 percent from the same period last year, to a three-year low. But in the Los Angeles metro area, mortgage originations were up by 4 percent, meaning more people have been taking out new home loans despite higher interest rates. More than 28 percent of loans in Southern California now have someone other than a spouse co-sign, such as a parent, compared with the national average of 22 percent. Among large U.S. cities, only Miami (40.2 percent), Seattle (37.4 percent) and San Diego (28.9 percent) have more co-borrowers.
Read the full story
Wednesday, September 6, 2017
Buying still beats renting
Source: CNBC
Home prices continue to rise at a fast clip, faster than incomes and faster than new employment, but it is still cheaper to own a home than to rent. So why are home sales falling? Because there are crazy few affordable homes for sale. The supply of listings in April fell 9 percent compared with a year ago, and, in turn, the number of days it took to sell the average home dropped to just 29, the lowest since the National Association of Realtors began tracking that in 2011. There was a big increase in the number of listings that came on the market this spring, but they were swept up so quickly that supplies were still lower. Unfortunately for buyers, the cheapest segment of the market is where supplies are lowest. Sales of homes priced below $100,000 fell 17 percent in April compared with 2016, and in the under-$250,000 segment they fell more than 6 percent. That is where the highest demand is from younger buyers.
Read the full story
Home prices continue to rise at a fast clip, faster than incomes and faster than new employment, but it is still cheaper to own a home than to rent. So why are home sales falling? Because there are crazy few affordable homes for sale. The supply of listings in April fell 9 percent compared with a year ago, and, in turn, the number of days it took to sell the average home dropped to just 29, the lowest since the National Association of Realtors began tracking that in 2011. There was a big increase in the number of listings that came on the market this spring, but they were swept up so quickly that supplies were still lower. Unfortunately for buyers, the cheapest segment of the market is where supplies are lowest. Sales of homes priced below $100,000 fell 17 percent in April compared with 2016, and in the under-$250,000 segment they fell more than 6 percent. That is where the highest demand is from younger buyers.
Read the full story
Wednesday, August 30, 2017
Homes have been getting bigger over the decades
Source: Realtor.com
From extra bedrooms and bathrooms to more overall square footage, homes have been growing over the years, according to the U.S. Census Bureau's 2016 Characteristics of New Housing report. In 1978, more than half of new single-family homes sold had three bedrooms and two bathrooms. By 2016, half of new home buyers closed on had four or more bedrooms. The largest share of homes sold, 40 percent, had three or more bathrooms while 31 percent had 2.5 baths. The overall square footage of homes has been rising as well.
Read the full story
From extra bedrooms and bathrooms to more overall square footage, homes have been growing over the years, according to the U.S. Census Bureau's 2016 Characteristics of New Housing report. In 1978, more than half of new single-family homes sold had three bedrooms and two bathrooms. By 2016, half of new home buyers closed on had four or more bedrooms. The largest share of homes sold, 40 percent, had three or more bathrooms while 31 percent had 2.5 baths. The overall square footage of homes has been rising as well.
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Wednesday, August 23, 2017
Wednesday, August 16, 2017
Solving the housing crisis with cheap ‘granny flats
Source: Business Insider
A startup out of Los Angeles wants to bring small, pre-fabricated living spaces ranging in size from 300 to 1,200 square feet into the backyards of the country's hottest real estate markets. Cover, is a technology company that plans, designs, and manufactures backyard studios, in-law units, home offices, and guest rooms — collectively known as accessory dwelling units (ADU) — using machine learning and methods borrowed from the aerospace and automotive industries. The company’s long-term goal is to increase the housing supply in cities where the cost of living has become prohibitive, in the hopes of driving market prices down. In January, legislation went into effect in California that makes it easier and cheaper for homeowners to build ADUs. The state hopes to see the housing stock climb as a result. If a homeowner is interested in putting an ADU on their property, they can fill out a survey of 50 to 100 questions, which covers everything from land type to cabinet finishes. For a one-time fee of $250, an algorithm gathers information on zoning and build codes in the area and returns multiple design options that meet the needs of the owner as well as city requirements.
A startup out of Los Angeles wants to bring small, pre-fabricated living spaces ranging in size from 300 to 1,200 square feet into the backyards of the country's hottest real estate markets. Cover, is a technology company that plans, designs, and manufactures backyard studios, in-law units, home offices, and guest rooms — collectively known as accessory dwelling units (ADU) — using machine learning and methods borrowed from the aerospace and automotive industries. The company’s long-term goal is to increase the housing supply in cities where the cost of living has become prohibitive, in the hopes of driving market prices down. In January, legislation went into effect in California that makes it easier and cheaper for homeowners to build ADUs. The state hopes to see the housing stock climb as a result. If a homeowner is interested in putting an ADU on their property, they can fill out a survey of 50 to 100 questions, which covers everything from land type to cabinet finishes. For a one-time fee of $250, an algorithm gathers information on zoning and build codes in the area and returns multiple design options that meet the needs of the owner as well as city requirements.
Wednesday, August 9, 2017
America’s declining mobility has millennials feeling stuck
Source: Curbed LA
According to the latest data from the U.S. Census Bureau, the percentage of Americans moving over a one-year period fell to an all-time low of 11.2 percent last year (domestic migration shrunk in half since 1965). The drop is particularly prevalent among millennials. New survey data from the Pew Research Center found that 25- to 35-year-olds are relocating at much lower rates than the previous generation. Last year, 20 percent of millennials moved sometime in the last year. When older generations were the same age as millennials now, they moved at higher rates: Gen X was at 26 percent, as was the generation between 1925 and 1942. According to data from Moody’s Analytics and First American Financial Corporation, median homeownership tenure—the average time someone stays in their home—just rose to 8.5 years, the highest they’ve seen since they began collecting data in 2008. And right now, especially in hot metro markets like San Francisco and New York, houses move at lightning speed. Redfin found that the average U.S. home went under contract in just 49 days in March, the fastest time on record since Redfin began keeping data in 2010.
Read the full story
According to the latest data from the U.S. Census Bureau, the percentage of Americans moving over a one-year period fell to an all-time low of 11.2 percent last year (domestic migration shrunk in half since 1965). The drop is particularly prevalent among millennials. New survey data from the Pew Research Center found that 25- to 35-year-olds are relocating at much lower rates than the previous generation. Last year, 20 percent of millennials moved sometime in the last year. When older generations were the same age as millennials now, they moved at higher rates: Gen X was at 26 percent, as was the generation between 1925 and 1942. According to data from Moody’s Analytics and First American Financial Corporation, median homeownership tenure—the average time someone stays in their home—just rose to 8.5 years, the highest they’ve seen since they began collecting data in 2008. And right now, especially in hot metro markets like San Francisco and New York, houses move at lightning speed. Redfin found that the average U.S. home went under contract in just 49 days in March, the fastest time on record since Redfin began keeping data in 2010.
Read the full story
Wednesday, August 2, 2017
CA among top three markets for foreign commercial buyers
Source: Dallas Morning News
Florida and Texas were the top markets on foreign real estate investors shopping lists in 2016. The National Association of REALTORS® said 20 percent of its commercial real estate members closed a sale last year involving foreign buyers. Florida, Texas and California were the most popular markets for offshore buyers acquiring small properties for either investment or use, the REALTORS® found in their annual commercial real estate survey. "Nearly half of REALTORS® reported that they experienced a greater number of international clients looking to buy commercial space over the past five years," NAR's top economist Lawrence Yun said in the report. "Economic expansion has slowly chugged along since the downturn, but in comparison to the rest of the world, the U.S. remains one of the most attractive and safest bets for investors. There's little evidence this will change anytime soon." NAR found that most of the foreign buyers making a play in the U.S. were from China. Chinese investors accounted for 17 percent of the commercial property sales handled by Realtors.
Read the full story
Florida and Texas were the top markets on foreign real estate investors shopping lists in 2016. The National Association of REALTORS® said 20 percent of its commercial real estate members closed a sale last year involving foreign buyers. Florida, Texas and California were the most popular markets for offshore buyers acquiring small properties for either investment or use, the REALTORS® found in their annual commercial real estate survey. "Nearly half of REALTORS® reported that they experienced a greater number of international clients looking to buy commercial space over the past five years," NAR's top economist Lawrence Yun said in the report. "Economic expansion has slowly chugged along since the downturn, but in comparison to the rest of the world, the U.S. remains one of the most attractive and safest bets for investors. There's little evidence this will change anytime soon." NAR found that most of the foreign buyers making a play in the U.S. were from China. Chinese investors accounted for 17 percent of the commercial property sales handled by Realtors.
Read the full story
Wednesday, July 26, 2017
Millennials are powering the housing market
Source: NBC News
Millennials were the largest group of home buyers (34 percent) for the fourth consecutive year, according to NAR's 2017 Home Buyer and Seller Generational Trends study. By comparison, baby boomers were 30 percent of buyers. "Millennials have been fairly slow to get into the market, but we are seeing an uptick in millennial buyers this year — which is a good sign, because as home values rise, we want a wider number of people to participate in this housing recovery," said Lawrence Yun, chief economist at the NAR. "There's a pent-up demand and as the economy continues to improve, we expect to see more people in their early thirties, adults who are still living with their parents — clearly not their idea of the American dream — begin to look for their own housing units." Research done by the National Association of Homebuilders found that more than 90 percent of millennials say they eventually want to buy a house.
Read the full story
Millennials were the largest group of home buyers (34 percent) for the fourth consecutive year, according to NAR's 2017 Home Buyer and Seller Generational Trends study. By comparison, baby boomers were 30 percent of buyers. "Millennials have been fairly slow to get into the market, but we are seeing an uptick in millennial buyers this year — which is a good sign, because as home values rise, we want a wider number of people to participate in this housing recovery," said Lawrence Yun, chief economist at the NAR. "There's a pent-up demand and as the economy continues to improve, we expect to see more people in their early thirties, adults who are still living with their parents — clearly not their idea of the American dream — begin to look for their own housing units." Research done by the National Association of Homebuilders found that more than 90 percent of millennials say they eventually want to buy a house.
Read the full story
Wednesday, July 19, 2017
Wednesday, July 12, 2017
Researchers Calculate Major Cost Savings of 3-D Printing Household Items
Source: Phys.org
Interested in making an investment that promises a 100 percent return on your money? Buy a low-cost, open-source 3-D printer, plug it in, and print household items. In a recent study, Michigan Technological University Associate Professor Joshua Pearce set out to determine how practical and cost effective at-home 3-D printing is for the average consumer. He found that consumers—even those who are technologically illiterate—can not only make their money back within six months, but can also earn an almost 1,000 percent return on their investment over a five-year period.
Interested in making an investment that promises a 100 percent return on your money? Buy a low-cost, open-source 3-D printer, plug it in, and print household items. In a recent study, Michigan Technological University Associate Professor Joshua Pearce set out to determine how practical and cost effective at-home 3-D printing is for the average consumer. He found that consumers—even those who are technologically illiterate—can not only make their money back within six months, but can also earn an almost 1,000 percent return on their investment over a five-year period.
Wednesday, July 5, 2017
In the Smart Home, Whoever Owns the Hub May Own Retail Too
Source: Forbes
Beyond the convenience of seeing who is knocking at your door, many of the potential uses of the smart home lead back to retail. Your refrigerator will tell you when you need more milk. Your smart lamp might predict or warn you when your light bulb is about to die. Your fitness tracker will make meal recommendations for how to change your diet to meet your fitness goals – meals it will undoubtedly want to help you plan and buy. And right now there are three main companies capable of carrying on a conversation with such smart devices: Apple, Google, and Amazon. If you’re using Amazon’s Alexa, where do you think it’s going to be easiest to buy that milk your refrigerator says you need? You might not even consciously approve the order – when milk gets this low, Alexa will order it, and Amazon Pantry will deliver.
Beyond the convenience of seeing who is knocking at your door, many of the potential uses of the smart home lead back to retail. Your refrigerator will tell you when you need more milk. Your smart lamp might predict or warn you when your light bulb is about to die. Your fitness tracker will make meal recommendations for how to change your diet to meet your fitness goals – meals it will undoubtedly want to help you plan and buy. And right now there are three main companies capable of carrying on a conversation with such smart devices: Apple, Google, and Amazon. If you’re using Amazon’s Alexa, where do you think it’s going to be easiest to buy that milk your refrigerator says you need? You might not even consciously approve the order – when milk gets this low, Alexa will order it, and Amazon Pantry will deliver.
Wednesday, June 28, 2017
Landlords Are Taking Over the U.S. Housing Market
Source: Bloomberg
As home prices rise, new home construction slows, and demographics shift, the U.S. is increasingly a country of renters—and landlords. Last year, 37 percent of homes sold were acquired by buyers who didn’t live in them, according to tax-assessment data compiled in a new report. That number may include second homes or properties acquired by investors who seek to fix up old homes and resell them at a profit. But it’s also a strong indication that landlords are playing a larger role in the U.S. housing market.
As home prices rise, new home construction slows, and demographics shift, the U.S. is increasingly a country of renters—and landlords. Last year, 37 percent of homes sold were acquired by buyers who didn’t live in them, according to tax-assessment data compiled in a new report. That number may include second homes or properties acquired by investors who seek to fix up old homes and resell them at a profit. But it’s also a strong indication that landlords are playing a larger role in the U.S. housing market.
Wednesday, June 21, 2017
Saturday, June 17, 2017
Wednesday, June 14, 2017
Saturday, June 10, 2017
Wednesday, June 7, 2017
Wednesday, May 31, 2017
Wednesday, May 24, 2017
Report Finds California Home Ownership Rates at Lowest Since 1940s
Source: KPBS
A draft report from California's Department of Housing and Community Development found home ownership rates in the state are at their lowest since the 1940s. The report, “California's Housing Future: Challenges and Opportunities,” also found that the state has more than its share of the country's homeless population — 22 percent of the country's homeless live in the state while the state makes up only 12 percent of the country's population. On Wednesday's Midday Edition, Los Angeles Times staff writer Liam Dillon discusses with KPBS Midday Edition Host Maureen Cavanaugh the report’s findings and recommendations.
A draft report from California's Department of Housing and Community Development found home ownership rates in the state are at their lowest since the 1940s. The report, “California's Housing Future: Challenges and Opportunities,” also found that the state has more than its share of the country's homeless population — 22 percent of the country's homeless live in the state while the state makes up only 12 percent of the country's population. On Wednesday's Midday Edition, Los Angeles Times staff writer Liam Dillon discusses with KPBS Midday Edition Host Maureen Cavanaugh the report’s findings and recommendations.
Wednesday, May 17, 2017
Using Sandbags to Protect Your Home from Flooding?
Source: The Mercury News
With major storms expected to pound much of California this weekend, homeowners should prepare and protect their homes from flooding with other storm-preparation tips. “The biggest problem we see is lack of preparation,” said Jon Hospitalier, assistant public works director for the city of Palo Alto. “Don’t call us in the middle of astorm, asking, ‘Where do I get sandbags?’”
With major storms expected to pound much of California this weekend, homeowners should prepare and protect their homes from flooding with other storm-preparation tips. “The biggest problem we see is lack of preparation,” said Jon Hospitalier, assistant public works director for the city of Palo Alto. “Don’t call us in the middle of astorm, asking, ‘Where do I get sandbags?’”
Wednesday, May 10, 2017
Housing Outlook 2017: Eight Predictions from the Experts
Source: Forbes
The 2016 housing market was an unprecedented, volatile and, for some, excruciating. At the year’s start, experts anticipated a pick-up in building activity, but builders are still not producing enough homes. Meanwhile, home prices appreciated beyond expectations and mortgage rates toyed with record lows before crossing 4 percent for the first time in two years. "If the expectation was that the market would transition smoothly from deep red hot recovery to normal--that certainly didn’t happen," said Svenja Gudell, chief economist at real estate data firm Zillow. Nevertheless, Gudell and others argue that, on balance, 2016 was a good year for housing. National prices finally crossed the previous 2006 peak, mortgage rates remained historically low, and there were some signs that millennials, a generation which some feared would never buy homes, are beginning to enter the market. Through it all, the election loomed large. In 2017, we'll see how profound the effects through these eight things housing experts expect to see this year.
The 2016 housing market was an unprecedented, volatile and, for some, excruciating. At the year’s start, experts anticipated a pick-up in building activity, but builders are still not producing enough homes. Meanwhile, home prices appreciated beyond expectations and mortgage rates toyed with record lows before crossing 4 percent for the first time in two years. "If the expectation was that the market would transition smoothly from deep red hot recovery to normal--that certainly didn’t happen," said Svenja Gudell, chief economist at real estate data firm Zillow. Nevertheless, Gudell and others argue that, on balance, 2016 was a good year for housing. National prices finally crossed the previous 2006 peak, mortgage rates remained historically low, and there were some signs that millennials, a generation which some feared would never buy homes, are beginning to enter the market. Through it all, the election loomed large. In 2017, we'll see how profound the effects through these eight things housing experts expect to see this year.
Wednesday, May 3, 2017
Freddie Mac: 30-year Mortgage Rate Falls
Source: HousingWire
The Freddie Mac Primary Mortgage Market Survey posted its first mortgage rate decrease since the election after a nine-week rise. Sean Becketti, chief economist with Freddie Mac, said this marks the first time since 2014 that mortgage rates opened the year above 4 percent. Bankrate.com Chief Financial Analyst Greg McBride noted at the time that the week’s increase in mortgage rates was dubbed the ‘Trump Tantrum,’ the biggest one-week increase since the ‘Taper Tantrum’ in June 2013. In the two weeks after the election, the 30-year mortgage rate jumped 40 basis points, surging to 3.94 percent. Now, looking at the latest Freddie Mac report, the 30-year fixed-rate mortgage sits at 4.20 percent for the week ending Jan. 5, 2017, down from last week when it averaged 4.32 percent. However, this is still significantly higher than a year ago at this time when the 30-year FRM averaged 3.97 percent. The 15-year FRM this week averaged 3.44 percent, falling from last week’s 3.55 percent. In the year-ago period, the 15-year FRM averaged 3.26 percent. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.33 percent this week, moving up from last week’s average of 3.30 percent. A year ago, the 5-year ARM averaged 3.09 percent.
The Freddie Mac Primary Mortgage Market Survey posted its first mortgage rate decrease since the election after a nine-week rise. Sean Becketti, chief economist with Freddie Mac, said this marks the first time since 2014 that mortgage rates opened the year above 4 percent. Bankrate.com Chief Financial Analyst Greg McBride noted at the time that the week’s increase in mortgage rates was dubbed the ‘Trump Tantrum,’ the biggest one-week increase since the ‘Taper Tantrum’ in June 2013. In the two weeks after the election, the 30-year mortgage rate jumped 40 basis points, surging to 3.94 percent. Now, looking at the latest Freddie Mac report, the 30-year fixed-rate mortgage sits at 4.20 percent for the week ending Jan. 5, 2017, down from last week when it averaged 4.32 percent. However, this is still significantly higher than a year ago at this time when the 30-year FRM averaged 3.97 percent. The 15-year FRM this week averaged 3.44 percent, falling from last week’s 3.55 percent. In the year-ago period, the 15-year FRM averaged 3.26 percent. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.33 percent this week, moving up from last week’s average of 3.30 percent. A year ago, the 5-year ARM averaged 3.09 percent.
Wednesday, April 26, 2017
Wednesday, April 19, 2017
Sunday, April 16, 2017
Wednesday, April 12, 2017
Listing your home in spring is great but listing in winter pays off, too
Source: Redfin
Certainly, the spring season is the best time to list a home. Home owners have a better chance of selling for more than the list price in the spring, and there's a greater likelihood for going under contract within 30 days. However, the spring season just barely budged out the winter as the best time to list, according to a new study by the real estate brokerage Redfin. Also, sellers will often find less competition in the winter, allowing their home to stand out more. Making sense of the story Indeed, 18.7 percent of spring listings received above the asking price while winter listings were close behind at 17.5 percent. What’s more, 48 percent of homes listed in the spring sold within 30 days; 46.2 percent of homes in the winter sold within that time frame. Redfin’s study found that for homes listed in spring, 18.7 percent sold above list price, in winter 17.5 percent sold above list price, in summer 15.1 percent sold above list price, and in fall 14.7 percent sold above list price. Autumn may very well be the trickiest time to sell. Forty-one percent of autumn listings sold in 30 days or less, and just 14.7 percent of homes sold above list price in the fall, the study showed. Listing at the start of the new year may work to a seller's advantage no matter where they live. Sellers are actually not dependent on living in a cold or warm weather climate when it comes to seasonal fluctuations in the real estate market, with winter and spring remaining the top selling seasons even across markets with colder weather, like Boston.
Certainly, the spring season is the best time to list a home. Home owners have a better chance of selling for more than the list price in the spring, and there's a greater likelihood for going under contract within 30 days. However, the spring season just barely budged out the winter as the best time to list, according to a new study by the real estate brokerage Redfin. Also, sellers will often find less competition in the winter, allowing their home to stand out more. Making sense of the story Indeed, 18.7 percent of spring listings received above the asking price while winter listings were close behind at 17.5 percent. What’s more, 48 percent of homes listed in the spring sold within 30 days; 46.2 percent of homes in the winter sold within that time frame. Redfin’s study found that for homes listed in spring, 18.7 percent sold above list price, in winter 17.5 percent sold above list price, in summer 15.1 percent sold above list price, and in fall 14.7 percent sold above list price. Autumn may very well be the trickiest time to sell. Forty-one percent of autumn listings sold in 30 days or less, and just 14.7 percent of homes sold above list price in the fall, the study showed. Listing at the start of the new year may work to a seller's advantage no matter where they live. Sellers are actually not dependent on living in a cold or warm weather climate when it comes to seasonal fluctuations in the real estate market, with winter and spring remaining the top selling seasons even across markets with colder weather, like Boston.
Wednesday, April 5, 2017
Downward construction spending expected to plateau
Source: Forbes
Bad news for your favorite HGTV home renovation show. Total construction spending, including renovations, on residential properties fell dramatically in 2016, according to U.S. Census Bureau data. Early indicators do not show significant reacceleration in residential construction for first half of 2017. The good news? They don’t suggest a major fall-off either; instead, data points to a general plateau.
Bad news for your favorite HGTV home renovation show. Total construction spending, including renovations, on residential properties fell dramatically in 2016, according to U.S. Census Bureau data. Early indicators do not show significant reacceleration in residential construction for first half of 2017. The good news? They don’t suggest a major fall-off either; instead, data points to a general plateau.
Wednesday, March 29, 2017
Early 2017 is time to trade up
Source: Fortune
Buyers looking to trade up are in the housing market’s sweet spot – and experts think the beginning of 2017 should be a particularly good time to strike. Over the five years between 2011 and 2016, the average price on a two-bedroom house climbed 59% nationwide, while four-bedroom houses rose a more modest 41%, according to an analysis by Attom Data Solutions. Inventory has also risen at the higher end of the market, climbing almost 8% for homes in the $500,000 to $750,000 range. If you’re in the reverse position - prepare yourself. Inventory has tumbled among less expensive homes. Small homes have seen much sharper price growth than larger ones, and urban areas have appreciated faster than metro outskirts. Both trends are expected to continue in 2017.
Buyers looking to trade up are in the housing market’s sweet spot – and experts think the beginning of 2017 should be a particularly good time to strike. Over the five years between 2011 and 2016, the average price on a two-bedroom house climbed 59% nationwide, while four-bedroom houses rose a more modest 41%, according to an analysis by Attom Data Solutions. Inventory has also risen at the higher end of the market, climbing almost 8% for homes in the $500,000 to $750,000 range. If you’re in the reverse position - prepare yourself. Inventory has tumbled among less expensive homes. Small homes have seen much sharper price growth than larger ones, and urban areas have appreciated faster than metro outskirts. Both trends are expected to continue in 2017.
Wednesday, March 22, 2017
Wednesday, March 15, 2017
Friday, March 10, 2017
Thursday, March 2, 2017
Technical Difficulties - Sorry!
There were some technical difficulties with my newsletter this month! Sorry for the duplicate email, I wanted to make sure you got the news you need.
Happy March!
As we head towards spring, let me know if you are thinking about buying or selling! Now is the perfect time to get started.
Wednesday, March 1, 2017
Wednesday, February 22, 2017
Return of house flipping eases housing crunch in some states
Wednesday, February 15, 2017
Before you buy that home, avoid utility bill shock
Wednesday, February 8, 2017
Housing demand picks up steam
Source: DS News
Demand for single-family housing reached its highest level since June 2013, having picked up momentum after Labor Day, according to Redfin’s Housing Demand Index for September 2016.
According to Redfin, buyer demand rose by 13.3 percent over-the-month in September up to a level of 105, its highest level in three-plus years, after nearly 32 percent more potential buyers toured homes and nearly 27 percent more potential buyers made offers.
A reading of higher than 100 for the Redfin Housing Demand Index indicates stronger or higher-than-expected demand, while a reading of lower than 100 indicates weak demand. For September 2015, the reading was 101. This data indicates that there is a healthy pool of buyers ready and willing to purchase a home as long as they find the right one, according to Redfin.
Read the full story
Wednesday, February 1, 2017
Wednesday, January 25, 2017
Wednesday, January 18, 2017
Market Matters
Joel Singer, the association’s longtime chief executive, spelled out two stark facts threatening the Golden State: California ranks 49th in the nation in homeownership rates. And 50th in affordability rates. “Where are our children going to live?” Singer asked.
For every home buyer coming into California, another three are selling their homes, packing up and moving out, according to data analysis firm CoreLogic.The trend of out-migration was also noted in a separate trio of reports released earlier this year by Beacon Economics. Beacon noted that 625,000 more U.S. residents left California between 2007 and 2014 than moved into the state. The vast majority ended up in Texas, Oregon, Nevada, Arizona and Washington.
The search for more affordable housing is sending low and middle-income workers out of the state, while higher-wage workers continue to move in, which argues against the theory that high taxes are driving people away. Home prices and rents have been rising steadily for more than four years.
Source: RISMediaRead the full storyA recent study by the Urban Institute explored homeownership as a viable path to a secure retirement, but many older homeowners missed the prime opportunity to leverage that equity before the recession. How much usable equity can older homeowners now expect in retirement, given the rebound in home values?
Homeowners aged 65 or older, according to the study’s findings, could have used their home’s equity to grow their retirement income by over 50 percent (up to $60,000) pre-recession, either by borrowing a home equity line of credit, selling their home at a profit, or taking a cash-out refinance or second mortgage. That percentage dropped to 40 percent (up to $49,000) by 2012, despite accumulating an average 10 percent more equity then than in 1998. Home values, still, grew 3 percent by 2014. Monetarily, the average older homeowner’s equity stake increased from $117,000 to $166,000 between 2000 and 2006, then decreased to $129,000 by 2012.
Wednesday, January 11, 2017
Wednesday, January 4, 2017
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