It is commonly assumed that homeownership isn’t as popular among younger Americans as it was among previous generations, but recent data seems to tell a different story. For example, according to the most recent homeownership numbers from the U.S. Census Bureau, Americans under the age of 35 have the fastest growing homeownership rate of any age bracket. In fact, the data shows that – while Americans over the age of 65 still have the highest rate of homeownership – younger Americans saw their rate increase from 35.4 percent to 36.4 percent during the second quarter of this year. By comparison, homeownership among adults 35-to-44 and those older than 65 both fell. That means, millennial homebuyers may be the most active buyers in the market right now. This isn’t a big surprise, given that first-time homebuyers have historically accounted for a large amount of home sales. Since millennials are now at, or quickly approaching the age of the typical first-time buyer, it makes sense that more of them are shopping for and buying homes. More here.
It’s said that real estate is all about location. However, it isn’t the only thing that influences which way prices are headed or how quickly. Price range also makes a difference; for example, a recent Redfin analysis of current home prices found that homes in affordable price ranges were seeing annual increases much larger than that of more expensive homes. In fact, the least expensive third of homes sold in June saw year-over-year increases of 8.7 percent, while the most expensive third of homes only saw prices grow by 1.1 percent. That’s no small difference, but it is understandable. Supply and demand are more balanced on the high end of the housing market. On the other hand, the market for affordable homes currently has more buyers than available homes, which causes prices to rise. Despite this, there is reason for encouragement. Some metro areas actually had a decrease in price for homes on the low end of the market. If the rest of the country follows suit, the gap between the high and low end of the market will narrow. More here.
According to realtor.com, a professional home inspection can cost up to 500 dollars but the peace of mind they will give you is well worth it. They check on various things such as electrical hazards, the HVAC system, septic system problems, and the foundation. Issues with these are better fixed sooner rather so make sure you get your house inspected when buying. How much does a home inspection cost? According to the U.S. Department of Housing and Urban Development, a typical home inspection costs $300 to $500. In most cases, it’s well worth it for buyers to hire a home inspector. Home inspections, for you first-time home buyers out there, are a way to vet a home before you buy it. Let’s face it: Buying a home is a huge investment—and you can’t exactly read Amazon reviews to get a sense of any problems that might crop up after you’ve plunked down your money for the purchase price. Home inspections are an important step in the home-buying process. As a buyer, your lender may not require you to get a third-party inspection in order to qualify for a loan. But most real estate agents recommend you get an inspection, for your own protection. You may be […]
Buying a home with a mature AC unit? Learn how long most HVAC systems tend to last and how you can maintain it better. Chronological age isn’t the only factor to consider when it comes to determining how long your HVAC system should last. Your furnace should last longer than your air conditioner, but you can extend the life of your entire HVAC system with regular maintenance and timely repairs. Your System’s Lifespan The average lifespan of a furnace today is about 15 to 20 years. A heat pump should last about 16 years, and an AC unit should last 10 to 20 years. Regular HVAC maintenance can help you identify potential problems before they become serious enough to shorten the life of your system. You can do some maintenance tasks, such as changing your HVAC filter, yourself. If you have pets, or if someone in your home has allergies, change it every month. Otherwise, change it every three to six months. Other tasks, such as a yearly furnace and AC tune-up, are best left to the professionals. An HVAC contractor can clean the condenser and evaporator coils on your AC unit and examine it for signs of damage. If […]
Some home features are necessities and others are luxuries. For example, kitchens are a must. You’re not going to find many homes for sale that don’t have a kitchen. On the other hand, not all homes come with a garage. While they might not be an absolute must, garages, depending on where you live, may be a luxury buyers are willing to pay more for. Just how much do homebuyers value garages? According to one recent analysis by Redfin, homes with garages sell for about $23,000 more than homes without. This is an approximately 12 percent premium. However, where you live is a big factor in determining how valuable a garage might be. For example, homes with garages sell for 38 percent more than homes without them in Chicago, where the winters can be harsh and snowy. In warmer areas like Los Angeles or Miami, garages aren’t as desirable. In fact, in some cities, only around half the homes sold last year had a garage. This is quite a difference from Midwestern cities like Cleveland, where over 90 percent of homes had one.
According to the Mortgage Bankers Association’s Weekly Applications Survey, demand for home purchase loans is now 10 percent higher than the same week one year ago. The improvement comes after a 1 percent increase week-over-week. Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting, says purchase applications have been gradually increasing since the beginning of the year. “Purchase applications picked up slightly last week, as conventional and government activity were each up around 1 percent. Furthermore, in continuation of the gradual growth trend seen throughout the first half of 2019, purchase activity was almost 10 percent higher than a year ago,” Kan said. “A still-strong job market, improving affordability, and lower mortgage rates continue to support growth.” Also in the report, average mortgage rates were mostly flat last week, showing little change across all loan categories. The 30-year fixed-rate was up slightly but remains just above lows last seen in 2016. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.
Selling a house can seem daunting. Not only do you have to get your home ready for viewings, but you also have to worry about getting a good price and selling it within a time frame that works for you. Shopping for a new place at the same time can be a recipe for stress. One recent survey by Zillow shows how homeowners deal with selling a home. According to the results, 36 percent of recent home sellers said they cried during the process and, among them, 20 percent cried more than once. Overall, younger sellers were more likely to say they cried, which makes sense since they’re also more likely to be going through it for the first time. Whatever the case the evidence is clear, selling a house can be a stressful experience; it doesn’t have to be, though. Having a good team of experienced professionals to guide you through the process is key. What’s also important is listing at the right time, having appealing photographs to post online, and staying flexible and ready for anything. It can be overwhelming, but with a good team and appropriate expectations, it will be much more manageable. More here.
For many Fannie Mae’s Economic and Strategic Research Group releases a monthly forecast detailing what lies ahead for the economy and housing market. Though their most recent release says the overall economy will slow this year, their outlook for the housing market is encouraging for potential home buyers and sellers. That’s because they see stability ahead. Doug Duncan, Fannie Mae’s chief economist, says there are a number of factors that should make market conditions more favorable this year. On housing, the recent dip in mortgage rates to their lowest level in over a year, combined with wage gains and home price deceleration, supports our contention that home sales will stabilize in 2019, Duncan said. The greatest impediment to both sales and affordability continues to be on the supply side, as new inventory, particularly among existing homes, is being met quickly by strong demand as evidenced by the already thin months’ supply hitting a new one-year low. In other words, conditions will be less volatile than they were last year but ultimately depend on how many homes are available for sale. If new home construction and listings can keep up with demand, it’ll help keep prices steady. http://fanniemae.com/portal/media/corporate-news/2019/economic-housing-outlook-041819-6859.html?utm_source=AKZO+Media+Subscribers&utm_campaign=4c297931ff-EMAIL_CAMPAIGN_2019_04_18_06_48&utm_medium=email&utm_term=0_134f701abc-4c297931ff-276542805
As home prices have recovered over the past several years, prospective home buyers have become increasingly concerned about affordability conditions. After all, buying a home is a major financial commitment and getting less house for your money isn’t ideal. However, things may be changing. A recent survey by realtor.com, of active home shoppers found that a majority think prices may have hit their peak. According to the results, 56 percent of respondents said they don’t expect prices to climb any further. That’s good news for home buyers, as slowing prices and steadier mortgage rates would help improve affordability conditions. Though home shoppers were confident that prices wouldn’t go much higher, they also expressed concern that a recession was on its way, with 30 percent of participants expecting it to begin sometime next year. Danielle Hale, the chief economist for realtor.com, says home shoppers may be expecting a recession, but it hasn’t made them pessimistic about the housing market. When the U.S. enters its next recession, it is unlikely that the housing market will see a sharp nationwide downturn, Hale said. The same record low inventory levels that have made buying a home so difficult recently, will likely protect home prices in the next recession. […]
Homebuyers are out and about in the spring season. Homes are much more attractive, and the warm weather makes it much easier to tour houses, and move into them, if the deal closes. If you’re looking to sell your house and possibly move into a new one, this article shows how this spring is the perfect time to put your house on the market. https://realestate.usnews.com/real-estate/articles/why-spring-is-the-perfect-time-to-sell-your-home