New York Archives

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.

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.

Mortgage Loan Demand Grows Despite Higher Rates

According to the Mortgage Bankers Associationâ€™s Weekly Applications Survey, average mortgage rates rose last week but the increase did nothing to dampen demand for loans. In fact, refinance activity was up 7 percent from the week before and requests for purchase loan applications increased 3 percent. Demand for loans to buy homes is now 8 percent higher than at the same time last year. What does this mean? Well, the fact that demand for mortgages rose during a week when average mortgage rates were also up indicates that Americans are not being dissuaded by higher interest rates. Though mortgage rates do affect affordability, they are still low by historical standards and, it appears, consumers either consider them favorable or may be concerned that waiting any longer to refinance or buy a home may mean rates rise even higher. The MBAâ€™s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Homeowners Say They’re Optimistic About Buying

Asking Americans whether or not they think this is a good time to buy a house can be an imprecise way of measuring interest in the housing market. Thatâ€™s because there are a number of personal factors that are weighed when deciding whether or not itâ€™s time to make a move. Which is why survey results can sometimes show one group of people who are pessimistic about their options, while another group expresses optimism. For example, a recent survey from the National Association of Realtors found optimism about buying a house is running high among current homeowners but not as much with renters. Thatâ€™s due to recent equity gains. In short, as home prices have increased, homeowners have benefited and now see an opportunity to turn their gains into a new house. Lawrence Yun, NARâ€™s chief economist, says this may be good for the overall market. â€œThereâ€™s no question that a majority of homeowners have amassed considerable equity gains since the downturn,â€ Yun said. â€œSupply conditions would improve measurably, and ultimately lead to more sales, if a growing number of homeowners finally decide that this spring is the time to list their home for sale.â€ More here.

The Top Sacrifices Millennial Buyers Say They’ll Make

Buying a house is a major financial transaction and, for most Americans, the largest one theyâ€™ll ever undertake. So pulling the necessary resources together to be able to afford the upfront costs, in addition to the ongoing obligations, maintenance, and upkeep can be difficult. Especially for first-time home buyers who donâ€™t have the benefit of being able to sell a home to help fund their down payment. For this reason, many millennials who aspire to homeownership have decided itâ€™s worth making a few sacrifices in order to help save money to buy a house. In fact, according to a recent survey from ValueInsured, there are some common sacrifices young Americans say they are willing to make in order to buy their first home. For example, nearly 60 percent of respondents said they would cut down or give up eating out â€“ which made giving up restaurants the most popular sacrifice among survey participants. Other common sacrifices included taking a second job, not going on vacations, moving back in with their parents, and giving up shopping for clothes. More here.

Contract Signings Fall In January

In January, there were more people looking to purchase homes but fewer people signing contracts to buy. The numbers, from the National Association of Realtors’ Pending Home Sales Index, show that pending home sales – which refer to contract signings, not closings – were down 4.7 percent from the previous month. But, rather than a drop in home buying interest, the data may reflect something else. According to NAR’s chief economist, Lawrence Yun, it shows that there are too few homes available for the number of interested buyers. “The economy is in great shape, most local job markets are very strong, and incomes are slowly rising, but there’s little doubt [January’s] retreat in contract signings occurred because of woefully low supply levels and the sudden increase in mortgage rates,” Yun said. But though low inventory is an ongoing issue for the housing market, Yun believes a potential slowing of rent increases could lead to investors putting more affordable single-family homes up for sale this year, which could add to the number of entry-level homes available for first-time buyers. More here.

Nearly 60% Of Homeowners Plan Home Improvements

If youâ€™re a homeowner, you know the to-do list is never ending. And, if youâ€™re a buyer, youâ€™ll know soon enough. Thatâ€™s because, owning a home means maintaining a home. Proof of that can be seen in the fifth annual LightStream Home Improvement Survey. According to the results, 58 percent of surveyed homeowners say theyâ€™re planning to spend money on home improvement projects in 2018. And the number who said they plan on spending $35,000 or more has doubled from last year. But though there are more homeowners planning projects this year, the list of projects hasnâ€™t changed all that much. Once again, outdoor upgrades remain the most popular, with decks, patios, and landscape projects topping the list. Kitchen and bathroom remodels, of course, also rank high, coming second and third on Americansâ€™ home improvement, to-do list. So how are these homeowners planning on paying for all these upgrades and renovations? Well, the vast majority said they were paying for their projects out of savings. However, another way homeowners are saving on their home improvement bills is by doing, at least, some of the work themselves. More here.