New York City Real Estate Archives

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.

Most Counties More Affordable Than Historic Average

Pretty much anywhere you go there are parts of town that are more affordable than others. There are areas known for starter homes that attract young families and other parts where the homes come with higher price tags and significantly more square footage. Which part of town you end up buying a house in will be determined, in part, by what works for your lifestyle. But your budget and bottom line will ultimately have final say. Currently, with home prices and mortgage rates both trending upward, it may seem like there are fewer and fewer areas with affordable homes to choose from. This, however, is not entirely true. In fact, according to new numbers from ATTOM Data Solutionsâ€™ Q1 2018 U.S. Home Affordability Report, 59 percent of the 446 counties they analyzed were more affordable than their historic average. Furthermore, 27 percent of those counties actually posted a year-over-year increase in affordability â€“ meaning prices were more affordable this year than last. Counties where this was true included Cook County (Chicago), Illinois; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; Orange County, California; and Kings County (Brooklyn), New York. In short, though affordability conditions may have worsened generally, itâ€™s always smart to look into what prices are doing in the neighborhoods that most appeal to you. MoreÂ here.

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.

How Photography Can Help Sell Your House

Increasingly, people rely on technology to simplify tasks that were once difficult or time consuming. These days, everything from grocery shopping to running a business can be done with an assist from a smartphone app. So itâ€™s no surprise that home shoppers would also go to the internet to gather information on how, what, and where to buy a house. And itâ€™s for that reason that photography has become an important tool for homeowners who are looking to sell a house. For example, a recent National Association of Realtorsâ€™ study found 89 percent of buyers who searched listings on the internet said photos were the most useful feature. That makes sense. After all, the photos that accompany online listings can offer home shoppers an idea of what the home looks like inside and out. And while itâ€™s always best to see the house in person â€“ as photography can sometimes give an inaccurate impression of what shape a house is in â€“ good photos are clearly a must if youâ€™re selling a home today. More here.

What Style Of House Do You Prefer?

Most regions offer house hunters a variety of architectural styles to choose from. Whether you prefer bungalows to ranches or modern over contemporary, you can likely find something that fits your preference. But, according to one recent survey, what youâ€™re looking for might depend on your age. Thatâ€™s because the results show millennial home buyers are looking for a different kind of home than older buyers. For example, younger buyers expressed a preference for colonial and contemporary homes, when they had a preference at all. On the other hand, buyers over the age of 55 were much more interested in finding a ranch â€“ which is an architectural style favored by only 6 percent of millennials. Of course, some of this has to do with practicalities â€“ such as retirees in search of a one-story home because it eliminates any concern about future mobility and navigating stairs â€“ but itâ€™s also a question of personal taste and aesthetics. Ultimately, though, whatever type of house Americans say they prefer, they generally all say they want that house to have ample storage, a garage, and multiple bedrooms. More here.