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The Size Of American Homes Continues To Grow


It shouldn’t come as any surprise that American homes are generally getting bigger and adding more rooms. After all, who wouldn’t choose to have an extra bedroom or some additional storage space? Still, a look at the numbers, shows just how much our living spaces have changed over the years. For example, numbers from the U.S. Census Bureau’s 2016 Characteristics of New Housing show that the number of homes under 1,400 square feet has fallen 9 percent just since 2000. At the same time, the percentage of homes over 4,000-square feet has doubled. Sure, the majority of homes still fall somewhere between 1,800 and 2,400 square feet, but there is clearly a trend toward larger houses. Another way to look at it is the number of rooms. For example, 59 percent of homes now have three or more bathrooms. In 2000, it was closer to 20 percent. During the same time, most homes also upgraded from three bedrooms to four. Of course, along with the extra space, bedrooms, and bathrooms, the median sales price has also risen. Americans, however, clearly think the extra expense is worth the luxury of not having to schedule who gets the first shower in the morning. More here.

A modern building made of stacked shipping containers under a cloudy sky.

Survey Shows Homeownership’s Enduring Appeal


Buying a house, for many Americans, is seen as an achievement and evidence that they’ve reached a certain level of success. Put simply, there is no other symbol as closely association with the American Dream than owning a home. For Americans of all backgrounds and income levels, it has remained a shared aspiration. Because of this, there is a strong emotional pull toward buying a house that most Americans feel even today. Take a recent survey from the National Association of Home Builders as an example. The survey found that more than two-thirds of respondents said they believe owning a home is an essential part of achieving the American Dream. Granger MacDonald, NAHB’s chairman, says homeownership remains a priority for most of us. “Americans continue to place a high priority on homeownership and work hard to achieve this goal for their families,†MacDonald said. The survey’s results are consistent too. Over the years, and despite the ups-and-downs of the housing market, homeownership has consistently ranked high among Americans’ goals, whether it’s something they hope to achieve right now or a couple of years down the road. More here.

A charming two-story brick house with a well-kept lawn under a clear blue sky.

Why An Easy Commute Should Be On Your Wish List


If you’re thinking of buying a home and are spending all of your time dreaming of the type of kitchen you want or how big you’d like your master suite to be, there may be a thing or two to add to your wish list before you start your search. For example, have you considered the importance of having a short commute to work each day? Almost 11 million Americans drive an hour or more to work each way and the average commute has been getting longer over the past several years. So, if you’re lucky enough to have never sat in traffic after a long day at the office and don’t know just how draining it can be, here’s something to think about: A recent survey found a short commute or proximity to public transportation ranked second among factors people used when determining where to live. That means, only an area’s crime rate was deemed more important. In other words, having a long commute to-and-from work can negate some of the benefits of finding a great house. After all, what good is having the perfect kitchen, if you’re always on the road instead of at home enjoying it? More here.

Traffic jam on a cloudy day near a bridge with various vehicles.

What Pending Sales Numbers Mean For Buyers


The National Association of Realtors’ Pending Home Sales Index is a good indication of where home sales will be a month or two down the road. That’s because, it measures the number of signed contracts that occurred during the month, rather than the number of closings. And since there is typically about a month between having an offer accepted and closing the deal, the number of pending sales can be a pretty accurate predictor of future home sales numbers. According to the most recent release, pending sales were down 1.3 percent in April from the month before. Lawrence Yun, NAR’s chief economist, says there may be fewer contracts signed as the spring goes on because of a lack of available listings. “Much of the country, for the second straight month, saw a pullback in pending sales as the rate of new listings continues to lag the quicker pace of homes coming off the market,†Yun said. In other words, the number of homes for sale can’t keep up with the number of buyers interested in buying them. That means, home buyers should expect to find competition for the homes that are available for sale this summer. More here.

Close-up of a 'Sale Pending' sign in red and white.

Average Rates Remain Near This Year’s Low


According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were largely unchanged last week. Loans backed by the Federal Housing Administration and 15-year fixed-rate mortgages both saw slight declines, while 30-year fixed-rate mortgages with both conforming and jumbo balances were unmoved. This follows the previous week’s results which showed mortgage rates at their lowest point so far this year. However, despite favorable rates, demand for mortgage applications was down from the previous week. Michael Fratantoni, MBA’s chief economist, told CNBC the reason may be inventory. “Home sales remain constrained by a lack of inventory across the country, as evidenced by home price growth running almost three times the pace of overall inflation,†Fratantoni said. Still, though fewer homes for sale may be holding sales back, mortgage application demand remains 7 percent higher than at the same time last year, which indicates strong interest from buyers this spring. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Close-up of a bold percentage symbol on a warm background.

Renovations And The Cost Of Selling


It isn’t just the home’s buyer who has to settle up at the end of the closing process, sellers have costs too. In fact, according to one recent estimate, the average seller spends $15,000 before they hand over the keys to their home’s new owner. A big part of that is closing costs, agent commission, and any repairs required following the home’s inspection. But another chunk of that is renovations done before the sale. In fact, a large majority of homeowners fix up their homes before putting them on the market. Things like having the home painted, cleaned, and staged can add up for the 80 percent of homeowners who decide to spruce things up before showing their house. Nationally, the average cost of home improvements done before selling was $2,650, though that can vary greatly from region to region and is also dependent on the type of work that is done to get the house in shape. Of course, unlike buyers, home sellers have the sale of their home to help cover their costs but – assuming they’re going to buy another home – these expenses will obviously have an effect on how much money they have left over to put toward their next house. More here.

Close-up of a red Glidden interior paint can with a paintbrush beside it.

Today’s Typical Home Sells In Less Than A Month


Home buyers are out in large numbers this spring. Proof of that can be found in the most recent sales report from the National Association of Realtors. Their monthly tally of how many previously owned homes sold the month before found that the typical home for sale was on the market for just 29 days in April, down from 34 days the previous month. That’s a strong indication that buyer demand is outpacing the number of homes for sale this spring. And that’s saying something, especially since April saw a 7.2 percent increase in for-sale inventory by the end of the month. In other words, there are more homes coming on the market but still not enough to match the number of interested home buyers. Lawrence Yun, NAR’s chief economist, says affordable homes are going fastest. “Homes in the lower-and mid-market price range are hard to find in most markets, and when one is listed for sale, interest is immediate and multiple offers are nudging the eventual sales prices higher.†But despite the competition, buyers aren’t deterred. In fact, the number of first-time home buyers was up for the month and, a look at regional results, shows existing-home sales are above or even with last year’s results in the South, West, and Midwest. More here.

Close-up of a green "For Sale" sign with bold white letters.

Mortgage Rates At Lowest Point Since November


According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell to their lowest level since last November this past week. Rates fell across all loan categories, including 30-year fixed-rate mortgages with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. Naturally, lower rates spurred an increase in the number of current homeowners looking to refinance their loans. Lynn Fisher, vice president of research at the MBA, told CNBC homeowners were quick to take advantage of the drop. “Homeowners took advantage of the 6 basis-point drop in rates,†Fisher said. “Jumbo rates fell even more, sending the average refinance loan size up 5 percent as borrowers with larger loans, who are typically more sensitive to rate changes, moved to refinance.†But though the rate drop led to more refinance activity, demand for purchase loans was relatively flat from the week before. Still, compared to last year at this time, application demand for loans to buy homes is up 3 percent. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

A weathered yellow road sign with two large black arrows pointing left and right.

 

New Home Sales Fall After Reaching Recent Peak


Each month, the U.S. Census Bureau and the Department of Housing and Urban Development release an estimate of how many new homes were sold during the previous month. Because it’s an estimate, the month-to-month numbers can be volatile. For example, the most recent residential sales statistics show an 11.4 percent decline in the number of new homes sold in April compared to March. However, a closer look shows that – not only are sales coming off three consecutive months of gains – but March’s estimate was revised upward. In short, last month’s results, though down sharply, are coming off a nearly 10-year high and are about even with where they were at the same time last year. That means, though the numbers may make it look like there is housing trouble ahead, the market is relatively stable and will likely continue along its current path. In fact, economists told ABC News that they believe April’s decline represents a one-month correction and not a warning sign. Also in the report, the median sales price of new homes sold in April was $309,200; the average sales price was $368,300. More here.

Bright red house under a vivid blue sky.

Rents Are Increasing In The Suburbs Too


There are two groups commonly associated with renting. One is young people. The other is people living in urban centers. Conjure up an image of the typical renter and you’ll probably end up imagining someone in their 20s living in a downtown apartment building. The suburbs, on the other hand, have been traditionally thought of as the place you move to when you’re ready to settle down and buy a house. However, new numbers tell a different story. In fact, the latest data shows rental costs are actually rising faster in the suburbs than in cities. Why? There are a couple of reasons. First, rent has been rising rapidly in cities for quite a few years now, which is causing people to look outside city limits for a more affordable place to live. Another is a relative lack of rental properties in the surrounding suburbs. Where there are fewer options, potential renters are going to find rising prices. One option for discouraged renters is to compare the costs of homeownership in their area. In many markets, buying is actually a more affordable option or, at the very least, compares favorably. More here.

Colorful dollar signs symbolizing suburban rental costs.

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