condo management Archives

Green Homes Aren’t Necessarily More Expensive

Conventional wisdom has it that if you find a home equipped with the latest eco-friendly features itâ€™s going to cost you significantly more than one without. After all, energy-efficiency and green-home technologies have become more popular with prospective home buyers in recent years. But though thatâ€™s commonly thought, new research says itâ€™s not necessarily true. In fact, in some markets, homes with eco-friendly features such as solar panels, smart thermostats or bamboo floors donâ€™t sell for much more than the median home price. According to the National Association of Realtorsâ€™ consumer website, for example, green homes in the Dallas metro area sell for about four percent more than the median. But in Fort Collins, Colo., there is virtually no difference in home price. Among the reasons for this is the fact that green-home features are becoming more common in markets across the country. While theyâ€™re still more prevalent in the South and West, they are becoming increasingly incorporated into homes as buyers recognize the benefits of energy-efficient systems and smart-home technology. More here.

Boosted Mortgage Demand May Be A Sign Of Spring

According to the Mortgage Bankers Associationâ€™s Weekly Applications Survey, demand for loans to buy homes spiked 6 percent last week and is now 10 percent higher than at the same time last year. The increase was part of an overall gain in mortgage demand that may be a signal that the spring home buying season is ramping up. The improvement may have also been due to relatively flat mortgage rates from the previous week. In fact, average rates were virtually unmoved for 30-year fixed-rate loans with both conforming and jumbo balances, as well as 15-year mortgages. Joel Kan, an MBA economist, told CNBC competing economic factors kept rates steady. â€œRates were roughly flat compared to last week, as the downward pressure of geopolitical uncertainty offset the upward pressure of higher inflation and Fed minutes that signaled greater certainty of rate hikes this year,â€ Kan said. Regardless of the reason, steady mortgage rates and elevated demand are good signs for the housing market as it enters its busiest season. The MBAâ€™s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Homes Sell At Fastest Recorded Pace In 2017

Making big decisions quickly is not usually a recipe for success. However, in todayâ€™s housing market, thatâ€™s exactly what home buyers have to do. Thatâ€™s because homes are selling faster than ever these days. In fact, according to a recent analysis, the average home took 81 days to sell last year. And that includes closing, which usually takes four to six additional weeks. In other words, since many markets have more buyers than they do available homes, houses for sale are selling fast. So what should buyers do to prepare for possible competition? Well, for starters, adjust your expectations. A recent report from Zillow found the average buyer spends just over four months searching for a home and makes two offers before successfully buying a house. That means, expect a process. Outside of that, be prepared. Get prequalified, know what you want, what you want to spend, and what your dealbreakers are. The more prepared you are, the more likely youâ€™ll make good decisions, even if they have to be made quickly. More here.

New Home Builders Take An Optimistic View

Home builders are a good gauge of what is going on in the housing market. After all, their business depends on knowing whether or not Americans are interested in buying a house. And so, the National Association of Home Builders tracks builder confidence as a way of measuring how much demand there is for new homes today and over the next six months. In April, builder confidence dropped a point from the month before but remains high, due to expectations for the spring and summer season. â€œOngoing employment gains, rising wages, and favorable demographics should spur demand for single-family homes in the months ahead,â€ NAHB chief economist, Robert Dietz, says. â€œThe minor dip in builder confidence this month is likely due to winter weather effects, which may be slowing housing activity in some pockets of the country. As we head into the spring home buying season, we can expect the market to continue to make gains at a gradual pace.â€ In short, economic conditions are fueling Americansâ€™ desire to buy a home and, as the buying season begins, builders expect increasing interest.

What Buyers Should Know About Home Inspections

After finding a house to buy and making an offer, one of the next steps in the process is to get the home professionally inspected. This is done for a couple of reasons. One, it provides the homeâ€™s buyer with necessary information about the health and upkeep of the homeâ€™s various systems. But, additionally, it can be used to negotiate a fair price for the home. For example, if you made an offer on a house, then discovered during the inspection there were issues that might mean costly repairs, your offer could then be renegotiated to account for the previously unknown problem. In short, getting the house inspected is an important protection for buyers, who likely donâ€™t have the expertise to thoroughly evaluate things like the homeâ€™s plumbing and electrical systems. But more than just a checklist, the inspection is also a good opportunity for buyers to get to know the house theyâ€™re buying and learn more about the condition of the home and the steps theyâ€™ll need to take to maintain it. For that reason, itâ€™s a good idea, if possible, for buyers to be present during the inspection, so they can ask questions and get tips on properly caring for their new home. More here.

Americans Say Now Is The Time To Buy

Every month, Fannie Mae surveys Americans to better understand how they view the housing market, their personal finances, and the overall economy. Their Home Purchase Sentiment Index is a measure of how people around the country feel about buying or selling a home. And, according to the most recent results, they currently feel like itâ€™s time to buy. In fact, there was a 10 percent increase in the number of respondents who said they felt like it was the right time compared to Februaryâ€™s survey. Doug Duncan, Fannie Maeâ€™s senior vice president and chief economist, says sentiment has been volatile lately. â€œThe HPSIâ€™s recent run of volatility continued in March, as it recovered last monthâ€™s loss and remained within the five-point range of the past twelve months,â€ Duncan said. â€œThe primary driver of this monthâ€™s increase was the sizable rise in the net share of consumers who think itâ€™s a good time to buy a home, which returned the indicator to its year-ago level.â€ Boosted optimism about buying a house may be due to the spring buying season or perhaps a feeling among potential buyers that affordability conditions may worsen if they wait. More here.

How Mortgage Rate Increases Affect Home Buyers

Mortgage rates have been increasing lately and there is an expectation that they will move higher this year. But while home prices get a lot of attention, rising mortgage rates are a little more difficult for buyers to calculate in terms of what it will cost them. Hereâ€™s some help. According to one recent model, a less than one percent increase in mortgage rates over the next year would result in a $100 increase to the typical monthly mortgage payment. But since the costs of homeownership are influenced by many different factors, this projection has to make certain assumptions about things like the rate at which home prices will increase, for example. In other words, any increase to mortgage rates will cost home buyers but just how much is difficult to calculate precisely. So what should home buyers expect? Well, since a stronger economy and improved job market make it more likely that the Fed will raise interest rates further this year, buyers should expect that mortgage rates will remain low by historical standards but continue to edge higher, taking monthly mortgage payments higher along with them. More here.

Analysis Finds Property Tax On The Rise

When considering the costs of homeownership, itâ€™s sometimes easy to forget about property tax. Home buyers focus a lot of attention on their prospective mortgage payment and the potential cost of any remodels and renovations but often forget to think about how much taxes will run them each year. This is a mistake. Take, for example, new research from ATTOM Data Solutions. Their recent tax analysis found that the average property tax on a single family home last year was $3,399, a 3 percent increase from 2016. Thatâ€™s nearly $300 a month. But property taxes can differ from one place to the next. As evidence, states like Hawaii, Alabama, Colorado, Tennessee, and West Virginia were found to have lower than average effective property tax rates. They can also vary from city to city. Thatâ€™s why itâ€™s a good idea to look into how much homeowners pay in property taxes in the areas where youâ€™d most like to buy a home. It may not sway your decision on where you buy, but it will give you a more accurate assessment of how much itâ€™ll cost to buy a house in a particular city. More here.

Stock Market Volatility Slows Mortgage Demand

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were virtually unchanged last week, remaining at two-month lows. But despite favorable rates, demand for mortgage applications fell. Mike Fratantoni, MBA’s chief economist, told CNBC buyers may have been leery due to recent fluctuations in the stock market. “Potential home buyers may be a little rattled by the swings in the stock market the past few weeks, but the job market continues to strengthen, which should power demand through the spring season,” Fratantoni said. In other words, the temporary ups-and-downs of the stock market may have shaken up last week’s results but there is still a high level of buyer demand this spring. In fact, despite falling two percent from the week before, requests for loans to buy homes were still five percent higher than at the same time last year. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Market Trend Means Gains For Homeowners

Itâ€™s said that there are two sides to every story. Well, there are also two sides to the housing market. For example, since the end of the recession in 2009, home prices have risen 37 percent, according to Freddie Macâ€™s most recent monthly outlook. But while those price gains mean there arenâ€™t as many bargains on the market as there were eight years ago, it also means current homeowners have enjoyed a record rebound in home equity. Len Kiefer, Freddie Macâ€™s deputy chief economist, says the housing market is on the upswing. â€œOverall, U.S. housing markets have been on the upswing,â€ Kiefer said. â€œWhile housing market trends have been generally favorable, not everyone has shared equally in the gains. Existing homeowners have largely seen their properties increase in value, helping to build equity. In many parts of the country, home values have more than recovered from the Great Recession, reaching new peaks, and the share of underwater homeowners has dropped significantly.â€ More here.