New York City Real Estate Archives

The Winter Market May Be Good For Buyers

Typically, spring and summer are thought of as the prime times to buy or sell a home. There are a number of reasons for this, including weather and the end of the school year. But whatever the reason, there are usually more homes for sale and more active buyers during what is typically the busiest sales season. Fall and winter, on the other hand, are the time of the year when the housing market slows down. The approaching holidays and colder temperatures across much of the country mean fewer Americans are in the mood for a move. But that can mean opportunities for buyers who are. A recent analysis looked at the country’s largest metro areas and compared typical affordability levels, projected rent increases, and the share of listings with a price cut to determine where buyers might have the best chances in the coming months. The results showed conditions in hot markets like Orlando, Boston, Seattle, and Las Vegas are becoming more favorable as the end of the year approaches. That means, interested buyers may be in a better position this fall and winter than they will be next spring when things begin to heat back up. More here.

How Affordable Is The Typical New Home?

Generally speaking, there are two types of homes available to buyers. There are previously owned homes and there are new homes. Which one you choose comes down to a couple of factors. The first is personal preference. Some people prefer the quirks and character of an older home, while others like the comfort of knowing everything in their house is brand new. But though it’d be nice if it was, preference isn’t usually the deciding factor. Ultimately, your decision will come down to budget and affordability. New homes tend to be more expensive than existing homes. Which means, whether or not you consider buying new might be determined by your price range. So how affordable is the typical new home? Well, according to the most recent numbers from the U.S. Census Bureau and the Department of Housing and Urban Development, they’re becoming more affordable. In September, for example, the median sales price of new homes sold was $320,000, which is down from $331,500 last year at the same time. More here.

Pending Home Sales Increase In September

When an offer on a home has been accepted, that home’s sale is considered pending. It isn’t final until closing, which typically takes place a few weeks later. But, because most accepted offers result in completed sales, the National Association of Realtors tracks contract signings as an indicator of what sales should look like in the near future. In September, the NAR’s Pending Home Sales Index showed a slight increase from the month before, though it’s still below where it was at the same time last year. Lawrence Yun, NAR’s chief economist, says the month-over-month increase is a good sign. “This shows that buyers are out there on the sidelines, waiting to jump in once more inventory becomes available and the price is right,” Yun said. In other words, though tight inventory and the end of the summer season may lead to slowing sales in the near term, home buyer demand remains elevated. Additionally, Yun points out that compared to data going back to the year 2000, affordability levels are favorable and should help keep housing demand steady in the coming months.

Mortgage Demand Bounces Back After Holiday

According to the Mortgage Bankers Association’s Weekly Application Survey, demand for mortgage loans rose 4.9 percent last week from one week earlier. Refinance activity led the way, increasing 10 percent from the previous week. Demand for loans to buy homes was also higher, however, posting a 2 percent increase. But though demand was up, the rebound follows a holiday week that saw sharp declines. “Mortgage application activity rebounded the week following the Columbus Day holiday, but both purchase and refinance levels remained lower than where they were two weeks ago,” Joel Kan, MBA’s AVP of economic and industry forecasting, said. In other words, despite last week’s gains, activity overall has slowed. It may have something to do with climbing interest rates. Last week, average rates rose again. Rates were up across most loan types, including 30-year fixed-rate loans with both conforming and jumbo balances and loans backed by the Federal Housing Administration. Average rates for 15-year fixed-rate loans were unchanged from one week earlier. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications.

Most People Say They Have Good Neighbors

There are a lot of things you can tell about living in a particular a house from a quick visit or two. There are even some things you can tell just from driving through the surrounding neighborhood. But, while you can know how much available storage a house has or how new the windows are, you won’t have as easy a time knowing what your prospective neighbors are like and what it’ll be like living next to them. Fortunately, though, most Americans say they have good neighbors. In fact, according to the results of a new survey from the National Association of Realtors’ consumer website, three out of four people said they have good neighbors. That means, more likely than not, you’ll be able to get along with the people living around you. But what exactly makes a neighbor good? Well, respondents said being trustworthy and quiet were the most important qualities in a neighbor and being disrespectful of property was the worst trait a neighbor could have. But while everyone wants to have a good relationship with their neighbors, they don’t necessarily expect to become best friends. Very few participants said a close friendship was a must, with just 9 percent of women saying so and 20 percent of men. More here.

Fewer Home Buyers Making Offers Sight Unseen

No one wants to make big decisions hastily. It’s a great way to make mistakes and end up with regrets. Which is why, in an ideal situation, home buyers would have time to consider the pros and cons of multiple houses and choose the one that best fits their needs and wishlist. Unfortunately, in a competitive market, that’s not always possible. And so, buyers have to be prepared and ready to make an offer when they see a house they like. The good news is, now that inventory is beginning to rise and houses are staying on the market longer, home buyers have more time to weigh their decision. In fact, according to a recent survey, the number of buyers who made an offer on a house without seeing it first has fallen 15 percent since late last year. This is a good indication that buyers are feeling some relief and aren’t feeling pressured to move as quickly as they were when inventory was tighter. But though this is encouraging news for potential buyers, it doesn’t mean the market isn’t competitive. If you’re interested in purchasing a home any time soon, it’s still best to do your homework, be prepared, prequalified, and ready to make an offer when you find a house you like. More here.

Most Homeowners Say They Love Their House

Sometimes picking a house to buy can cause anxiety. After all, what if you choose the wrong one and aren’t happy living there? What if there are structural or mechanical issues that go undetected and will end up meaning costly renovations? It’s hard to imagine that you could possibly cover all the potential issues in just a few walkthroughs. And so, it’s natural to worry about buyer’s remorse. But, according to a new survey, you might be worrying yourself unnecessarily. That’s because, the results show an overwhelming majority of respondents said they love their current home. In fact, 83 percent of participants said they were happy in their house. To some degree, the responses fell along demographic lines, with people 55 years or older and retirees being the most likely groups to say they love their home and have no plans to move. Respondents between 18 and 34 were more likely to want to move. There were also regional differences. For example, residents in Boston and Detroit were more likely to say they like their current home and would rather renovate than move, while the survey found Los Angeles residents were the most likely to say they’d prefer a new house. More here.

Prices Cuts Rising But Only In Some Neighborhoods

Home prices have been increasing for awhile. But their consistent upward climb is starting to slow, according to new data. In fact, a recent analysis has found the number of home sellers who have reduced their listing price is up from where it was last year. The research shows 17.2 percent of homes for sale reduced their price in August, up from 16.7 percent last year at the same time. That’s encouraging news for hopeful home buyers who have been keeping an eye on affordability conditions. But, though price reductions are at their highest level since 2014, that doesn’t mean every neighborhood is part of the trend. For example, in this case, there are more reductions seen at the higher end of the housing market than in more affordable price brackets. That means, while you may be able to find a better deal in a pricier neighborhood, you may not have as much luck in the more affordable locations popular with entry-level and first-time buyers. That’s why potential home buyers should do some research on their preferred neighborhoods and get an idea of where they’ll be able to get the best deal. More here.

Loans To Buy Homes Up 2% From Last Year

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were up across all loan categories last week, 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. The increase follows an upward trend that has been driven by economic improvement and a stronger job market. “Rates moved higher last week, driven by strong data on the job market, indicating that the Fed will continue to raise rates,” Joel Kan, an MBA economist, told CNBC. But despite higher rates and a weekly drop in application demand, requests for loans to buy homes is still up over last year, when rates were lower. In fact, the MBA’s Purchase Index is now 2 percent higher than it was a year ago. The improvement, though slight, is a good indication that demand for homes remains strong, even while rates move higher. The MBA’s weekly survey covers 75 percent of all retail residential mortgage applications and has been conducted since 1990. More here.

Green Features Add Value To Homes

In order for a home to be considered truly green, there are six elements it needs to contain, according to the Appraisal Institute, a professional association of real estate appraisers. These include water efficiency, energy efficiency, indoor air quality, materials, and operations and maintenance. Put simply, to retrofit a home to meet those standards would require a lot of work. But that doesn’t mean you can’t improve your home’s performance through smaller measures. And Appraisal Institute president, James L. Murrett, says, if you do, you’ll not only be able to lower your bills but you may also be able to sell your house for more when the time comes. “The latest research shows that green and energy-efficient home improvements have the potential to pay dividends for buyers and sellers,” Murrett says. “However, it depends on the improvements made. Some green renovations, such as adding Energy Star appliances and extra insulation, are likely to pay the homeowner back in lowered utility bills relatively quickly.” Whether you’re searching for a home to buy or thinking about selling one, a home’s efficiency and performance is an important factor to consider. More here.