property management Archives

How You Compare To The Typical Home Seller

The National Association of Realtors’ Profile of Home Buyers and Sellers takes an annual look at the who, what, where, and how of the year’s typical real-estate transaction. Based on a survey sent out across the country, the results reveal things like how much the average home seller made on the sale of their home, how buyers came up with their downpayment, and what types of homes sold, who sold them, and for how much. For example, last year’s typical seller was 54 years old, had been living in their home for 10 years, and had a median income of $100,700. The most commonly cited reason for selling a home was to find something bigger, which was named by 18 percent of respondents. Other common reasons for selling a home included wanting to live closer to friends and family and because of a new job. The majority of sellers didn’t have to offer any incentives in order to attract a buyer for their home and nearly 9 in 10 used a real-estate agent to help sell their house. The typical home seller was able to sell their home for $43,100 more than they purchased it for and got 98 percent of their final listing price. More here.

Housing Outlook Sees Strong Year Ahead

Though there is some uncertainty about how changing economic policies might affect the economy and housing market in the months to come, Fannie Mae’s most recent Economic and Housing Outlook from their Economic & Strategic Research Group sees continued improvement ahead. In short, improved consumer spending, a healthy labor market, and rising wages should continue to support economic growth. But what does this mean for the housing market and real estate this year? Well, according to Doug Duncan, Fannie Mae’s chief economist, the housing market should remain strong and build on last year’s performance. “We expect housing to remain resilient and continue its recovery in 2017, with affordability standing out as the industry’s greatest obstacle, particularly for first-time homeowners,” Duncan said. “Demographic factors, however, are positive. Our research shows that older Millennials have begun to buy homes and close the homeownership attainment gap with their predecessors.” An increasing number of younger buyers is good news for the market, as is the expected bump in new home construction. If the supply of homes for sale can keep up with buyer demand, a better balanced market may help alleviate affordability concerns and lead to favorable housing conditions in 2017. More here.

Mortgage Rates Hit Lowest Level In A Month

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell again last week – marking the third consecutive weekly decline. The drop brought rates to their lowest level in a month, with decreases seen across all loan categories including 30-year fixed-rate mortgages with both jumbo and conforming balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. Despite the drop, however, demand for mortgage loan applications stayed relatively flat from one week earlier. The refinance index – which is generally more affected by rate changes – rose 7 percent, while the seasonally adjusted purchase index fell 5 percent. Michael Fratantoni, told CNBC that demand is down from where it was at the end of last year. “Refi volume is still down sharply from the end of last year, remaining 13 percent below the level from four weeks ago,” Fratantoni said. On the other hand, the number of prospective home buyers applying for loans to purchase homes is just 1 percent below where it was 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.

The Top Buyer Fears And How To Fight Them

For a lot of people, buying a home is both exciting and a little bit intimidating. On the one hand, it’s seen as a vital part of achieving the American dream and, on the other, it’s a major financial undertaking that comes with some real risks. So what are some of the top fears of potential home buyers? Well, according to one recent article, the biggest fear is that their new house will fall in value. Considering recent history, this isn’t a surprising concern, but it is one that can be addressed. With the help of a knowledgable real-estate agent, you can pinpoint the dangers of a particular property and weigh them against potential positives like good schools and nearby amenities. Sure, you can’t be 100 percent sure about what the future holds, but you can protect yourself by buying in a good neighborhood with a history of holding its value. The costs of homeownership are another big concern among prospective buyers. Not only do buyers worry about being able to handle their mortgage payment but they also worry about potential maintenance costs. One way to protect yourself is to make sure you know what you’re getting. Look for a property that has had some of its major features – such as the roof or furnace – recently upgraded or replaced. Another fear is buyer’s remorse. This is natural. The best way to handle it is to be sure you know what you’re looking for, what you will compromise on, and what you won’t consider. Also, lean on the experienced professionals you’ve hired to help you along the way. The best insurance against any future regrets is doing your homework and heeding the advice of your agent and mortgage lender. More here.

Home Size Shrinks For First Time Since 2009

For many years now, the average size of a newly built home has been going up. In fact, by 2015, the typical new home was 2,689 square feet – by comparison, the average was 1,660 square feet in 1974. That longtime trend took a step back last year, however. In 2016, the average new home fell 55 square feet. And, though that doesn’t sound like much, it is the first time in eight years new homes were smaller than the year before, according to Rose Quint, the National Association of Home Builders assistant vice president for survey research. “The data on new home characteristics show a pattern,” Quint said. “2016 marked the end of an era that began in 2009 when homes got bigger and bigger with more amenities. I expect the size of homes to continue to decline as demand increases from first-time buyers.” But though Quint believes home size will continue to fall as more first-time buyers enter the market, she doesn’t expect added features and amenities to become less popular. In fact, Quint says a majority of home buyers would prefer amenities and features over square footage. “More than two-thirds are willing to trade size for high quality products and features,” Quint said. Among the most coveted home features, a separate laundry room, energy-efficient windows and appliances, outdoor living space, exterior lighting, and a full bath on the main floor rank high. More here.

Market Movement Sends Mortgage Rates Down

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell 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. The drop marks the second-straight week-over-week decline and follows a period, after the election, when mortgage rates rose for several consecutive weeks. Lynn Fisher, MBA’s vice president of research and economics, says markets are still adjusting. “Ten-year Treasury yields fell the week following New Year’s Day as markets continue to adjust their expectations about the incoming administration and Federal Reserve policy,” Fisher told CNBC. Typically, mortgage rates follow the yield on the U.S. 10-year Treasury. Despite the recent volatility, though, mortgage rates are still just slightly higher than they were at the same time last year. Also in the report, as a result of mortgage rates moving lower, both refinance and purchase activity was up from one week earlier – with the Purchase Index up 6 percent from the previous week. The MBA’s weekly applications survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Survey Finds Americans In The Mood To Buy

There are an endless number of reasons you might decide to buy a home at any particular time in your life. Whether you just got a new job on the other side of town or are looking for a place closer to family, the motivation behind a move is usually very personal. But there are economic factors at play, as well. Your financial situation, optimism about the future, and perception of the market can also influence a decision to stay where you are or pack your belongings. Fannie Mae’s monthly Home Purchase Sentiment Index looks at how Americans are feeling about buying a home, the real estate market, and their personal economic outlook. In December, the overall index fell slightly from the month before, though the number of Americans who said they thought it was a good time to buy a house was up from November. Doug Duncan, Fannie Mae’s senior vice president and chief economist, says there’s been an increase in economic optimism recently but whether it carries through the rest of the year is uncertain. “A spike in economic optimism in the immediate aftermath of an election is typical,” Duncan said. “Whether consumers will sustain this level of optimism into 2017 remains unclear … If this optimism comes to fruition, it should translate into stronger income growth and increased job security for consumers – the two HPSI components that could help support housing sentiment this year.” More here.

The Top Spots For Buying A Second Home

Buying a second home is a common dream. Whether you want a place at your favorite vacation spot or a getaway close to home, it’s fun to imagine the possibilities. And, according to recent estimates from the National Association of Home Builders, millions of Americans are doing more than imagining them. There are 7.5 million houses that are being used as second homes across the country. That’s 5.6 percent of the nation’s housing stock. But where are the most popular locations for people looking to buy a second home? Well, not surprisingly, the counties that contain the largest share of second homes are mostly rural and scenic with low populations. Hamilton County, NY topped the list with 79.3 percent of homes classified as second residences. Forest County, PA, Rich County, UT, Alpine County, CA, and Daggett County, UT rounded out the five counties with the highest share of second homes. However, when you break down the data based on the number of second homes in any given county – rather than the percentage – the top 10 follows a less rugged path. In fact, warm weather counties near metro areas lead the list, which includes Maricopa County, AZ, Palm Beach County, FL, Lee County, FL, Los Angeles County, CA, Broward County, FL, and Riverside County, CA among the top 10. More here.

Pending Home Sales Down In November

When an offer is accepted on a house, the closing process begins. During this time, the sale of that home is considered pending because it is under contract but not yet sold. The National Association of Realtors’ Pending Home Sales Index tracks these transactions because they are a good indicator of future sales of existing homes. In November, the index fell 2.5 percent from the month before. Lawrence Yun, NAR’s chief economist, says low inventory and higher rates affected sales during the month. “The budget of many prospective buyers last month was dealt an abrupt hit by the quick ascension of rates immediately after the election,” Yun said. “Already faced with climbing home prices and minimal listings in the affordable price range, fewer home shoppers in most of the country were successfully able to sign a contract.” So what does this mean for affordability conditions in 2017? Well, according to Yun, the effects of increasing mortgage rates should be subdued a bit by growing wages and a healthy job market. The more Americans feel secure with their jobs and income, the more likely they’ll be to enter the market regardless of interest rate increases. More new home construction could also help relieve affordability pressure by adding for-sale inventory to markets where there are more buyers than available homes, which would help slow price increases. More here.

Home Price Increases Show Signs Of Slowing

Among the many different indexes tracking home prices across the country, the S&P Case-Shiller U.S. National Home Price Indices is considered the leading measure. Its nearly three decades of historical data make it a trusted source for gauging home price trends. According to the most recent release, the national index – which covers all nine U.S. census divisions – found home prices up 5.6 percent from where they were last year at the same time. But despite the annual gains, month-over-month results show values relatively flat from one month earlier. In fact, compared to the month before, national home prices rose less than 1 percent in October. That suggests home price increases are beginning to slow, which could be good news for buyers who are concerned about the recent upswing in mortgage rates. But, though prices may be showing signs of slowing, David M. Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices, says they’re still rising faster than incomes. “Home prices and the economy are both enjoying robust numbers,” Blitzer says. “However, mortgage interest rates rose in November and are expected to rise further as home prices continue to outpace gains in wages and personal incomes.” More here.