property management Archives

One Way New Homeowners Can Save Money

There are a lot of things you need to set money aside for when you’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 you’ll need for any future home maintenance. Buying a home means you’re on the hook for any repairs and renovations you need along the way – and you will inevitably run into issues at some point, whether it’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 it’s a good idea for homeowners to do as much of their own work as possible. And, these days, it’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 you’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 Association’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. “Concerns over Italy’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,” 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 MBA’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 home’s sale is typically referred to as pending. That’s because, there’s a chance, during this period, that the sale won’t go through, as there are a number of hurdles yet to clear. The buyer’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 there’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, you’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 you’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 they’d consider moving if they found they didn’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.

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 it’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, it’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 they’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 aren’t expected to change any time soon. “Unless inventories increase faster than sales, or the economy slows significantly, home prices are likely to continue rising,” 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.

Economic Data Drives Mortgage Rates Upward

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased last week across all loan categories. Rates were up for 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. Joel Kan, an MBA economist, told CNBC higher rates are the result of improved economic data. “Treasury rates increased 10 basis points last week, driven largely by favorable news on retail sales data and industrial production in April, which more than offset data showing still-slow new residential construction,” Kan said. In short, the more the economy improves, the more likely it is that mortgage rates will continue to climb. But though mortgage rates were higher last week, demand for loans to buy homes still edged above last year’s level, with the purchase index 3 percent higher than the same week last year. The refinance, index, on the other hand, fell 4 percent and is now at its lowest level since 2000. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

What Is The Most Prosperous City In The US?

Prosperous is defined as “successful in material terms; flourishing financially.” And, while money isn’t everything, it’s safe to say we all want to be successful and wouldn’t mind flourishing financially. So where in the country is the best place to live if you want some prosperity? Well, the answer might surprise you. That’s because a new study – looking at factors such as population, median income, home values, share of inhabitants holding higher education degrees, poverty rate, and unemployment – determined that Odessa, Texas was the the top city for prosperity, beating out heavy hitters like Washington DC, New York, Los Angeles, Atlanta, and Charleston. So what about Odessa makes it the most prosperous city in America? Well, from 2000 to 2016, the city experienced a 38 percent spike in income growth, home values rose 91 percent, and the poverty rate dropped by 36 percent. Those are some impressive numbers but the story behind the story is that Odessa benefited from a surge in crude oil production, which boosted the city’s fortunes and lifted it to the top spot on the list. 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 Mae’s most recent Economic and Housing Outlook, things will grind forward, but we shouldn’t expect major changes in market fundamentals anytime soon. “Housing’s upward grind should continue, despite a lackluster first quarter,” Fannie Mae’s chief economist, Doug Duncan, says. “We expect home sales to post modest gains both this year and next, as prices rise and affordability declines amid low for-sale inventory.” For buyers and sellers who may be waiting for conditions to change before making a move, this means the market isn’t likely to be significantly different in the coming months. More here.

Generation Z May Become Homeowners Earlier

Generation Z – which is defined as people born between the mid-1990s and early 2000s – 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 didn’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. That’s a lot. And it’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.