Tag: Citadel Property Management

First-time home buyers get a lot of attention, and for good reason. Historically speaking, they make up around 40 percent of all home sales. And though the share has been lower in recent years, the trend among younger buyers is an important indicator for the real estate market and, therefore, gets a lot of press. But older Americans buy homes too, of course. For that reason, the National Association of Home Builders takes a quarterly measure of the market for new homes among buyers 55 and older. According to the most recent results, builders are optimistic about sales among older buyers, though there was a decline from the previous quarter. Robert Dietz, NAHB’s chief economist, says the dip was due to recent natural disasters rather than decreasing confidence. “The decline in the 55+ Single-Family Housing Market Index is consistent with slight softening of other measures of single-family construction seen recently, driven by the effect of the natural disasters on top of ongoing issues with the supply of labor, lots and some building materials.†Dietz said. “However, market conditions on balance remain favorable, and we expect gradual continued growth in the 55+ housing sector.†More here.

Ipsos, an independent market research company, recently gathered a panel of experts to weigh in on the future of housing. From climate concerns to home automation, the panel looked at what changes may be necessary in order for our homes to meet our needs in the future. One of the topics focused on the fact that Americans are growing older. In fact, by 2060, nearly 100 million Americans will be over the age of 65 and – if current numbers are any indication – the vast majority of them will prefer to stay in their own homes and communities as they age. According to Rodney Harrell, director of livable communities for AARP’s Public Policy Institute, the current housing stock may not be suited to the needs of an aging population. “The problem is you can’t create a new housing stock overnight, so we have to start working now,†Harrell said. “Nobody should be forced from their home because it doesn’t work for them.†How our homes adapt to our needs will depend, in part, on advancements in smart-home technology but also on how soon builders and home remodelers begin installing features that make it easier for the elderly to preserve their independence. More here.

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were up last week, with increases seen across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. The increase was driven by economic speculation and a stronger global economy, according to Joel Kan, an MBA economist. “Rates increased last week as speculation over the next Fed chair continued, and the European Central Bank announced plans to taper its asset purchase program, signaling increased confidence in the euro zone economies,†Kan told CNBC. In short, as economic confidence rises, so will interest rates. Still, despite higher rates, demand for home purchase loans remains 10 percent higher than it was at the same time last year – though it did fall from one week earlier. Refinance activity was also down from the week before. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

It’s no surprise that the most common type of home buyer is married couples. After all, taking on something as financially complex and long term as buying a home isn’t the type of thing you do with someone you just met. More surprising, though, is which demographic group comes in second to married couples among recent buyers. According to data from the National Association of Realtors’ 2017 Profile Of Home Buyers And Sellers, single women made up 18 percent of home buyers from mid-2016 through June of this year – the highest share since 2011. That more than doubles the number of single men buying homes, which actually falls below unmarried couples at just 7 percent. On top of that, single women tend to buy more expensive homes than single men, despite the fact that they earn less. So what’s behind the large number of single women becoming homeowners? Well, according to the NAR, “solid job prospects, higher incomes, and improving credit conditions†were among the factors driving a higher number of unmarried women toward homeownership.

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates moved up last week causing a decline in demand for mortgage applications. In fact, total mortgage application volume – which includes purchase and refinance applications – fell 4.6 percent, though the number of home buyers requesting applications for loans to buy homes remains 10 percent higher than last year at the same time. According to Joel Kan, an MBA economist, rates were responding to news about upcoming fiscal policy. “Rates increased late last week as the market responded to news of a Senate budget plan which may positively impact tax reform progress and more speculation around the future leadership of the Federal Reserve,†Kan told CNBC. Whatever the reason behind the increase, mortgage rates are now at their highest level since July – though they still remain well below what is considered historically normal. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.