New York Archives

One Way New Homeowners Can Save Money

There are a lot of things you need to set money aside for when youâ€™re getting ready to buy a house. You have to have money for a down payment, closing costs, and moving expenses but you also need to consider how much youâ€™ll need for any future home maintenance. Buying a home means youâ€™re on the hook for any repairs and renovations you need along the way â€“ and you will inevitably run into issues at some point, whether itâ€™s a clogged toilet or a leaky faucet. When it happens, you can pay someone else to fix it or try doing it yourself. Naturally, though, these costs can add up, if you call in a contractor for every loose hinge or minor leak. So itâ€™s a good idea for homeowners to do as much of their own work as possible. And, these days, itâ€™s easier than ever to find how-to videos, tips, and information that can help you become handier around the house. Minor repairs can be surprisingly easy, once you have the right tools and some know-how. So, if youâ€™d like one less thing to save for, start by brushing up on your home improvement skills. More here.

Americans Say Now Is The Time To Sell A House

Depending on your plans, the fact that home prices have been increasing lately could be good or bad. After all, current homeowners who are looking to sell a house will feel much differently about higher prices than a first-time buyer who has to save for a down payment. This reality is reflected in the most recent Home Purchase Sentiment Index from Fannie Mae. The index – which measures Americans’ perception of the housing market and economy – reached a new all-time high in May, backed by spiking confidence among potential sellers. In fact, the number of participants who said now was a good time to sell a house is up 14 percentage points over the same time last year. But Doug Duncan, Fannie Mae’s senior vice president and chief economist, says that the optimism about selling has a flip side. “The HPSI edged up to another survey high in May, bolstered in part by a fresh record high in the net share of consumers who say it’s a good time to sell a home,” Duncan said. “However, the perception of high home prices that underlies this optimism cuts both ways, boosting not only the good-time-to-sell sentiment but also the view that it’s a bad time to buy, and presenting a potential dilemma for repeat buyers.” More here.

Mortgage Rates Drop To Lowest Level In Weeks

According to the Mortgage Bankers Associationâ€™s Weekly Applications Survey, average mortgage rates fell last week across all loan categories, bringing rates to their lowest level in six weeks. Rates were down for 30-year fixed-rate loans with conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate mortgages. The drop brings some relief to spring home buyers, who have been contending with higher prices and rising rates since the start of the season. Once again this week, rates were reacting to concerns about the global economy. â€œConcerns over Italyâ€™s political turmoil, and questions about possible imposition of trade tariffs by the U.S. on its major trade partners, pushed Treasury rates lower this week,â€ Joel Kan, an MBA economist, told CNBC. Whatever the reason for the drop, it was good news for both buyers and homeowners looking to refinance, with the total level of mortgage application demand up 4 percent over the previous week. The MBAâ€™s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Pending Home Sales Slow Slightly In April

Between the time an offer is accepted and the deal is closed, a homeâ€™s sale is typically referred to as pending. Thatâ€™s because, thereâ€™s a chance, during this period, that the sale wonâ€™t go through, as there are a number of hurdles yet to clear. The buyerâ€™s loan and financing have to be finalized and steps like the home inspection and appraisal can also alter the terms of the deal or end it altogether. In short, buying a home is a major transaction and thereâ€™s usually a few weeks between the contract signing and closing. For that reason, the National Association of Realtors tracks pending home sales each month, as they can be a good indicator of what future home sales will look like. According to their most recent report, pending sales fell 1.3 percent in April, with most regions flat from the month before. The slight decline was mostly due to a drop in the Midwest. Still, the report is an indication that inventory levels in much of the country are holding sales back. With a fewer-than-normal number of homes for sale, buyers are having more difficulty locating the right house and, as a result, the number of home sales has not matched the level of demand. More here.

How Much Does Your Neighborhood Matter?

When you buy a house, youâ€™re also buying the surrounding neighborhood. And, depending on your lifestyle and wishlist, the neighborhood may be even more important to you than the actual home youâ€™re buying. After all, most of your life happens outside your home. So your proximity to schools, shopping, healthcare, recreation, and nature will have a large effect on how much you enjoy living in a particular house. In short, finding your dream house in the wrong neighborhood could make it a nightmare. Unconvinced? Well, a recent survey of Americans found large majorities who said the feel of a neighborhood was important when deciding where to live. In fact, 80 percent said the surrounding neighborhood had to fit their personality and an almost equal amount said theyâ€™d consider moving if they found they didnâ€™t like their new neighborhood. In other words, when shopping for a new house, be sure to spend as much time considering the area around it as you do the areas inside it. It could even work out to be a better idea to find a smaller house in a great location than a big house somewhere you may grow to dislike. More here.

Average Mortgage Rates Down From Previous Week

Home buyers looking to buy a home this spring have their eye on two things: home prices and mortgage rates. Lately, both have been rising but the latest numbers from the Mortgage Bankers Associationâ€™s Weekly Applications Survey offers some potential relief. Thatâ€™s because the survey â€“ which has been conducted every week since 1990 and covers 75 percent of all retail residential mortgage applications â€“ found average mortgage rates were down last week across all loan categories, 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. Joel Kan, MBAâ€™s associate vice president of economic and industry forecasting, told CNBC rates fell slightly last week due to concerns about the global economy. â€œRates slipped slightly over the week as concerns over U.S. trade policy and global growth sent some investors back to safer U.S. Treasurys,â€ Kan said. In short, the decline may be a temporary break, as long-term trends remain in place. Still, lower rates, regardless of the reason, are good news for buyers. More here.

The Latest On Where Home Prices Are Headed

Home prices are a top concern for both home buyers and sellers. After all, a lot of the calculus that goes into determining whether or not itâ€™s a good time to sell or buy a house is based on where home values are and where they are expected to be in the future. For that reason, itâ€™s good to follow the S&P Case-Shiller Home Price Indices, as they are considered the leading measure of U.S. home prices. According to the latest data, prices have continued to rise at around the same pace theyâ€™ve been increasing, with both month-over-month and year-over-year data showing little change. In short, prices are going up but no faster than they have been. David M. Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices, says things arenâ€™t expected to change any time soon. â€œUnless inventories increase faster than sales, or the economy slows significantly, home prices are likely to continue rising,â€ Blitzer says. But despite rising prices, Blitzer notes that the market is calmer today than it was during the last price boom in the early 2000s. More here.

Housing Outlook Sees Gradual Gains Ahead

The housing market has been in a bit of a holding pattern lately. While there is a high level of home buyer demand, there are a lower-than-normal number of homes for sale. That means, though sales should be booming right now, they are only making modest gains. But things can change. And, if more houses become available for sale, it could begin to reverse home price trends, making it easier for interested buyers to find and buy homes. So what is likely to happen in the coming months? Well, according to Fannie Maeâ€™s most recent Economic and Housing Outlook, things will grind forward, but we shouldnâ€™t expect major changes in market fundamentals anytime soon. â€œHousingâ€™s upward grind should continue, despite a lackluster first quarter,â€ Fannie Maeâ€™s chief economist, Doug Duncan, says. â€œWe expect home sales to post modest gains both this year and next, as prices rise and affordability declines amid low for-sale inventory.â€ For buyers and sellers who may be waiting for conditions to change before making a move, this means the market isnâ€™t likely to be significantly different in the coming months. More here.

Generation Z May Become Homeowners Earlier

Generation Z â€“ which is defined as people born between the mid-1990s and early 2000s â€“ is quickly approaching adulthood and will soon face the decision of where to live and whether to rent or buy. But, according to a recent analysis, they may be facing challenges past generations didnâ€™t. For example, the results of one study show that they will spend less time renting but will pay more than young people have in the past. With current median rent at $1,418 per month and rising, generation Z is expected to spend $226,000 on rent in their lifetime. Thatâ€™s a lot. And itâ€™s more than baby boomers or millennials spent. But despite that, generation Z is expected to become homeowners earlier than millennials have. One reason is the cyclical nature of the economy. Another is the fact that more than half say they considered buying before renting their current place. Also, they are just as likely as older generations to say they consider owning a home as part of achieving the American Dream. In other words, if long-term economic trends hold up, the next generation of home buyers will have a better economy and job market to help fuel their dreams of homeownership. More here.

Changes Come To The Luxury Home Market

The high end of the real estate market has followed a different path since the financial crisis and housing crash. But while the luxury home market was able to avoid some of the ups-and-downs the rest of the market has endured, things are beginning to change. In fact, one recent analysis shows the number of homes for sale priced at or above $1 million dollars fell significantly during the first quarter of this year, as compared to the year before. And, if inventory continues to drop, the luxury home market could see some of the spiking prices and competition for available homes that buyers have found in more affordable price ranges. However, those this may be true, the effects have, so far, been far more muted than in the overall market. For example, the average luxury home was on the market for 82 days during the last quarter. Thatâ€™s faster than the same time last year but much longer than the overall average. For comparison, the National Association of Realtorsâ€™ most recent numbers show the typical existing home was on the market for just 30 days, with 50 percent of homes sold in less than a month. More here.