Bronx Property Management Archives

Generation Z May Become Homeowners Earlier

Generation Z â€“ which is defined as people born between the mid-1990s and early 2000s â€“ is quickly approaching adulthood and will soon face the decision of where to live and whether to rent or buy. But, according to a recent analysis, they may be facing challenges past generations didnâ€™t. For example, the results of one study show that they will spend less time renting but will pay more than young people have in the past. With current median rent at $1,418 per month and rising, generation Z is expected to spend $226,000 on rent in their lifetime. Thatâ€™s a lot. And itâ€™s more than baby boomers or millennials spent. But despite that, generation Z is expected to become homeowners earlier than millennials have. One reason is the cyclical nature of the economy. Another is the fact that more than half say they considered buying before renting their current place. Also, they are just as likely as older generations to say they consider owning a home as part of achieving the American Dream. In other words, if long-term economic trends hold up, the next generation of home buyers will have a better economy and job market to help fuel their dreams of homeownership. More here.

Changes Come To The Luxury Home Market

The high end of the real estate market has followed a different path since the financial crisis and housing crash. But while the luxury home market was able to avoid some of the ups-and-downs the rest of the market has endured, things are beginning to change. In fact, one recent analysis shows the number of homes for sale priced at or above $1 million dollars fell significantly during the first quarter of this year, as compared to the year before. And, if inventory continues to drop, the luxury home market could see some of the spiking prices and competition for available homes that buyers have found in more affordable price ranges. However, those this may be true, the effects have, so far, been far more muted than in the overall market. For example, the average luxury home was on the market for 82 days during the last quarter. Thatâ€™s faster than the same time last year but much longer than the overall average. For comparison, the National Association of Realtorsâ€™ most recent numbers show the typical existing home was on the market for just 30 days, with 50 percent of homes sold in less than a month. More here.

Mortgage Rates Little Changed From Week Before

According to the Mortgage Bankers Associationâ€™s Weekly Applications Survey, mortgage rates showed little movement last week and were virtually unchanged from the week before. Rates for 30-year fixed-rate mortgages with conforming loan balances and FHA loans fell slightly, while rates for 15-year loans were flat from the previous week. Jumbo loans saw an increase from one week earlier. But though rates were steady, demand for mortgage applications fell. In fact, both refinance and purchase activity were down from the week before. The week-over-week drop puts demand for loans to buy homes 4 percent higher than at the same time last year. But, despite the improvement, analysts say application demand should be much higher, as the number of interested home buyers has grown. One explanation is that, though there are many buyers active in the market, they are having a harder time finding homes to buy, which has depressed demand for loans. As more homes become available to buy, the numbers will begin to catch up with the current level of interest in buying a home. The MBAâ€™s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications.

How Builder Confidence Affects Home Prices

If you’re considering becoming a buyer in today’s housing market, you’re likely wondering what’s happening with home prices. Well, the primary factor driving values upward is a lack of available homes for sale. Simply put, there are more buyers than homes in many markets. This, of course, means home sellers can get a higher price for their house but it also means buyers can expect competition for the best available properties. So will this dynamic ever change? Well, one good indicator of where home prices are heading is new home construction. If new homes are being added to the stock of homes for sale, home prices will begin to moderate. That’s why the National Association of Home Builders tracks builder confidence each month. If builders are optimistic about the market for new homes, they will build more, which will help boost inventory. According to the most recent results of the NAHB’s Housing Market Index, there is reason for encouragement. That’s because, builder confidence rose in May and is now at 70 on a scale where any number above 50 indicates more builders view conditions as good than poor. In short, home builders are feeling positive about their prospects, which could mean a more balanced market. More here.

What Would You Give Up For A Down Payment?

Saving money is hard. It takes discipline and means sacrificing some things. Itâ€™s also kind of a requirement, if youâ€™re looking to buy a house any time soon. Thatâ€™s because, you need to have a down payment, if youâ€™re going to buy. So itâ€™s only natural that potential home buyers might fantasize about being able to trade something they already have for a chunk of money to put down on a house. And, according to a recent survey, you might be surprised by what theyâ€™d give up in exchange for some no-strings attached money. For example, nearly 50 percent of respondents said theyâ€™d give up their dream car for a 10 percent down payment. Another popular answer was giving up eating out or taking a vacation for the next five years. Some participants were even willing to give up their right to vote or their driverâ€™s license. Fortunately, or unfortunately, none of these things are really up for negotiation. Which means, if youâ€™re going to buy a house, youâ€™ll have to come up with your down payment the old fashioned way. More here.

Rising Incomes Help To Offset Affordability Challenges

After the financial crisis and housing crash, there were plenty of homes for sale but very few interested buyers. Americans were financially unstable and worried about keeping their jobs. And while they mayâ€™ve liked to buy a home, it wasnâ€™t the right time. Gradually, though, Americans became more secure in their jobs and more interested in buying a home. But, at the same time, the housing market also began bouncing back. And with prices higher and mortgage rates beginning to rise, Americans wanted to buy but began to worry about whether or not they could afford it. This year, with inventory low, prices rising, and mortgage rates creeping up, buyers face some challenges. Fortunately, though, new research shows incomes are also on the rise. The National Association of Home Buildersâ€™ Housing Opportunity Index, for example, shows Americans are making more money, which is helping to offset declining affordability. In fact, median family income is up from $68,000 last year to $71,900. And, at that income, 61.6 percent of recently sold homes were affordable. More here.

The Feature Millennials Are Most Willing To Go Without

Unless youâ€™re having a house built to your exact specifications, the house you end up buying will likely be a feature or two short of what youâ€™d been fantasizing about. Thatâ€™s because, youâ€™re going to be choosing only from the homes that are on the market during the time youâ€™re shopping. So the odds of finding each and every thing on your wish list in one home are pretty slim. In other words, youâ€™re going to have to compromise. But how willing you are to compromise may have something to do with your age. In fact, according to one new study, millennial home shoppers are more willing to compromise on home and neighborhood features than Gen X buyers or baby boomers. Among respondents, 89 percent of millennials said theyâ€™d be willing to give up a neighborhood feature for their ideal home and 84 percent said theyâ€™d be willing to sacrifice a home feature to live in their preferred neighborhood. So what is the feature young home buyers are most willing to forgo? Well, garages top the list, with 34 percent saying theyâ€™d be willing to give up having one to live in the right neighborhood. More here.

Homeowners Get A Better Grip On Home Values

The mortgage process is really just about verifying and documenting the various aspects of the homeâ€™s sale. Whether itâ€™s verifying the buyerâ€™s income and debts or that the house doesnâ€™t have a major problem with its foundation, there are a number of items that are typically among the checklist of things that need to be done before the deal is closed. The appraisal is one of them. In short, an appraisal provides a professional evaluation of the homeâ€™s worth. Based on the size of the home and lot, as well as the prices of similar homes sold in the area, an appraiser will determine whether or not the homeâ€™s price is fair. Sometimes, when a homeowner has an unrealistic idea of their homeâ€™s value, a lower-than-expected appraisal can be an issue. For that reason, a recent report tracking the difference between homeownersâ€™ perception of their homeâ€™s worth and its appraised value is encouraging. Thatâ€™s because, it found that homeownersâ€™ expectations and actual appraised value are more in line than they have been in more than three years. In fact, nationally, appraised values were just 0.33% off homeowner estimates in April. More here.

High-End Neighborhoods Make Most Popular List

When searching online listings for homes to buy, it is sometimes difficult not to wander outside of your price range for a look at houses youâ€™d love but canâ€™t afford. This is true no matter what your particular price range might be. There will always be a house just out of your reach thatâ€™ll catch your curiosity. And the internet has made it easier than ever to get a glance of the high-end homes youâ€™d previously only be able to see from the road. Proof of this can be found in a recent analysis of the countryâ€™s most popular neighborhoods based on page views. The top 20 features the nationâ€™s most desirable addresses in some of the most exclusive zip codes. The Oaks in Los Angeles was the top neighborhood, followed by places like Tuxedo Park in Atlanta, Presidio Heights in San Francisco, and New Yorkâ€™s Crestwood neighborhood. But, in this case, the number of views a particular house or neighborhood receives isnâ€™t likely to reflect an increase in the number of potential buyers. More likely, these neighborhoods reflect â€“ not where Americans are buying homes â€“ but where they dream of buying homes. More here.

What Is The Best Time To Sell Your Home?

If youâ€™ve ever sold a house or are currently thinking of selling, you know there are a lot of factors that play a role in deciding when itâ€™s the right time to list your home. Most of the decision-making process will rightly focus on your personal goals, finances, and plans for the future. But there is also the question of what time of year is the best for selling a house. Well, according to an analysis of nearly 15 million home sales that occurred between 2011 and 2017, ATTOM Data Solutions has narrowed the best time to sell down to, not just the month, but the exact date when itâ€™s best to sell a home. Their study shows that homeowners who sold during the month of May realized the biggest premiums over estimated market value. In fact, the average seller premium was 5.9 percent. But, if youâ€™re looking for the single best day to sell a house, the results says itâ€™s June 28. Sellers who sold on that date saw an average premium of 9.1 percent. More here.