property management Archives

Single Home Buyers Face Added Challenges

Without the benefit of two incomes, single home buyers face some added challenges when looking to buy a house. For one, it takes longer to save for a down payment. In fact, according to a new analysis, married or partnered couples can save a 20 percent down payment on the typical home in less than five years. For single home buyers, it takes closer to 11 years. Add to that, single home buyers are more likely to be looking for a smaller, affordable home – which is precisely the type of house that is currently in highest demand. Zillow senior economist, Aaron Terrazas, says two incomes helps with savings but also with increasing the number of homes available to buy. “Single buyers typically have more limited budgets, which means they are likely competing for lower-priced homes that are in high demand,” Terrazas said. “Having two incomes allows buyers to compete in higher priced tiers where competition is not as stiff.” Of course, your individual financial situation and local market conditions will ultimately determine how much you’ll need to save and how much competition you’ll face for available homes. But single, married, or otherwise, it’s best to be as prepared as possible before heading out to look for a house to buy. More here.

Home Sellers Realize Highest Return Since 2007

Naturally, as home prices have increased, so too has the amount of profit homeowners see when they sell their home. Now, according to new numbers from ATTOM Data Solutions, homeowner profits have reached their highest point in more than 10 years. In fact, according to their Q4 2017 U.S. Home Sales Report, the average home seller profit has reached 29.7 percent return on investment compared to the original purchase point. Daren Blomquist, senior vice president at ATTOM, says now is the most profitable time to sell in years but homeowners aren’t moving as often as they used to. “It’s the most profitable time to sell a home in more than 10 years yet homeowners are staying put longer than we’ve ever seen,” Blomquist said. “While home sellers on the West Coast are realizing the biggest profits, rapid home price appreciation in red state markets is rivaling that of the high-flying coastal markets and producing sizable profits for home sellers in those middle-American markets as well.” More here.

Home Price Climb Means Buyers Need To Prepare

It isn’t news that home prices have been headed upward for awhile now. And, according to the latest S&P Case-Shiller Home Price Indices, they are continuing to climb at around the same pace as they have been in recent months. Which is to say, the price increases haven’t yet slowed. Of course, how quickly prices are increasing depends on where you’re looking to buy. Large metropolitan areas – and especially those in the West – are seeing the sharpest increases, while the price gains are more muted in the Midwest. But, no matter where you are, the best way to prepare for higher prices is to know what you want, what you can afford, and where your limits are. In competitive and higher priced markets, having a firm idea of what you can spend and where you’ll compromise will make it less likely that you’ll end up going over budget because of a bidding war or buying more house than you can comfortably afford. Making sure you’re prepared before heading out to look at homes also means securing financing in advance, so you’ll be ready to make an offer when you find a home you love. More here.

Improvement In New Home Market Is Good For Buyers

The number of new homes being built and sold has become an important indicator for the housing market in recent years. That’s because, a shortage of homes for sale has caused prices to steadily increase. And, since the quickest way to add inventory to any particular market is to build new homes, there has been a lot of focus lately on the new home market and how it impacts home buyers and sellers. According to the latest numbers, last year saw an 8.3 percent increase in new home sales over the year before. That’s good news for real estate, as an increasing number of sales should lead to an increasing number of new homes being built. And, to that end, there were 295,000 new homes for sale at the end of December, which is the highest level since April 2009. In short, if builders continue to build more homes, the increased inventory should help moderate price increases which will make affordability conditions more favorable for the rising number of Americans who say they’re interested in buying a home. More here.

Eager Home Buyers Get Jump On Spring Season

Home buyers may be getting an early start on the spring buying season this year, according to new numbers from the Mortgage Bankers Association. In fact, demand for purchase loan applications was up 6 percent last week from one week earlier and at its highest level since April 2010. And the increase comes at a time when mortgage rates are higher than they’ve been since March of last year. So what explains the high level of buyer interest? Lynn Fisher, MBA’s vice president of research and economics, told CNBC she thinks buyers may be trying to get a jump on the competition. “A combination of being left on the sideline last summer due to a lack of inventory for sale and the prospect of slowly rising interest rates over the near term appears to have buyers in a hurry to start the spring buying season,” Fisher said. Whatever the case, the number of potential home buyers requesting loan applications to buy homes last week was 7 percent higher than during the same week last year. More here.

Young Adults Hold Key To This Year’s Market

First-time home buyers are an important demographic when tracking the health of the housing market. That’s because, they typically make up nearly half of all home sales. In recent years, however, young Americans have been buying fewer homes than in the past. In fact, Freddie Mac’s most recent monthly outlook says 15 percent of young adults between the ages of 25 and 35 are living in their parents’ home – a five percent increase from 2000. However, it isn’t because they’re not interested in homeownership. Largely, the economy and a lack of affordable starter homes have been to blame for a lower-than-normal number of first-time home buyers. But with an improved economy and job market, will more young adults become buyers this year? Len Kiefer, Freddie Mac’s deputy chief economist, says there’s reason for optimism. “Starting off the year, things are looking pretty good for the U.S. economy and housing markets,” Kiefer says. “Mortgage rates are low, economic growth has accelerated in recent quarters, and housing is coming off its best year in a decade.” More here.

Showings Up As Home Buyer Interest Remains High

If you had any doubt that there’s been a high level of home buyer interest lately, new data on the number of showings across the country should convince you. That’s because, according to the ShowingTime Showing Index – which tracks the average number of appointments an active listing receives – showings were up 8.5 percent last year. In other words, homes on the market last year received a lot of interest from potential buyers. Daniil Cherkasskiy, ShowingTime’s chief analytics officer, says last year’s numbers may be an indication that 2018’s housing market will feature a high level of home buyer demand. “While, unsurprisingly, December is always the slowest month for showings, activity in December 2017 was substantially higher than the previous year due to lack of inventory,” Cherkasskiy said. “This points toward higher demand in early 2018 because of new buyers and those coming back to the market from last year.” More here.

Builders Confident 2018 Will Be A Good Year

If anybody knows the new home market, it’s builders. After all, they are the ones supplying the homes and, if there’s no demand, they likely wouldn’t bother doing the work. So, when it comes to assessing the health of the market for newly built single-family homes, asking a builder is a pretty good place to start. For that reason, the National Association of Home Builders has been doing exactly that each month for the past 30 years. And, according to their most recent Housing Market Index – which measures builder confidence – builders are feeling excited about the year ahead. Randy Noel, NAHB’s chairman, says builders are particularly optimistic about the economy and the growing demand for new homes. “Builders are confident that changes to the tax code will promote the small business sector and boost broader economic growth,” Noel said. “Our members are excited about the year ahead, even as they continue to face building material price increases and shortages of labor and lots.” So what does this mean for home buyers? Well, it means more new homes will be built, which increases choices and also dampens price spikes. In other words, optimistic builders are a good sign for home buyers in 2018.

Mortgage Rates Rise, So Does Application Demand

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased last week, reaching their highest level since March of last year. Rates were up across all loan categories – including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. But, despite the rise, borrowers drove demand for mortgage applications higher than the week before. In fact, total mortgage application demand was up 4.1 percent from one week earlier. So what’s going on? Well, one theory, is that buyers are motivated because they feel conditions may be as good as they’re going to get. Joel Kan, an MBA economist, told CNBC borrowers are looking to take advantage of conditions while they’re good. “Despite the increase in rates, applications increased for both purchase and refinance,” Kan said. “These increases were partly due to an upswing following the holiday season lull and potentially more borrowers trying to refinance before mortgage rates increase further.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

What To Know About Real Estate Disclosures

If you’re thinking about buying or selling a home any time soon, you should probably know something about disclosure requirements in your state. In short, disclosure requirements are put in place to make sure homeowners selling a house let potential buyers know of any and all issues there are with the house that might not be otherwise obvious. Things like defective appliances or systems, roof leaks and age, foundation problems, existence of radon or asbestos, water damage, neighborhood issues, termites, etc., are the types of things that a homeowner must let a buyer know about before the sale. This is to protect both the buyer and the home seller, as it also safeguards against any possible litigation after the home’s sold. As a home seller, you won’t be liable for anything you didn’t know about but disclosure requirements are meant to ensure that a home buyer has as much knowledge about a property as reasonably possible before signing any papers. That means, you should always err on the side of too much information, rather than too little. To learn more about your state’s requirements, click here.