While spring and summer are the most popular homebuying seasons, it’s not necessarily a bad idea to sell during the fall. This articles suggests ways to make it especially appealing in the autumn months. Try to make it look warm and inviting with decor and scents, but don’t overdo it. Read More
First-time homebuyers are essential to the health of the housing market. They make up a large chunk of total home sales. But who is the typical first-time homebuyer, what do they buy, and how expensive is it? A recent study from Harvard’s Joint Center for Housing Studies took a look at buyers over the past few years and broke down the profile of the average first-time homebuyer. According to the study, the typical first-time homebuyer is under the age of 35, is married, and has children. Not surprisingly, the house they buy tends to be smaller and less expensive than those purchased by repeat buyers. According to the report, “43 percent of first-time buyers in 2017 purchased homes with less than 1,500 square feet of living space, compared with 27 percent of repeat buyers.” They generally buy a detached single-family home and pay less than $200,000 for it – only 12 percent pay $400,000 or more for their house. The report also points out the challenges ahead for younger buyers, specifically the lower-than-normal number of available homes in their price range and the need for more affordable housing options. Read More
The size of the house you can buy has a lot to do with where you’re buying. A 1,500-square-foot home will have a much different price tag in New York than it would in St. Louis. Though this is obvious to most potential homebuyers, we don’t always have a choice in where we live. Whether it’s a job or family and friends, we’re often tied to the places we call home for reasons that go beyond affordability. For those of us who can leave town, where are the most popular cities to go? According to one recent analysis by Redfin, some cities have a higher rate of interest from out-of-town buyers than others. Places like Tampa, Las Vegas, Atlanta, Phoenix, Sacramento, Miami, and Boston are pulling in a larger share of the 25 percent of buyers who are looking to move to a new metro. After all, the number of people who are willing and able to move far from home is relatively small. Whatever their reasons, buyers who look at neighborhoods and locations outside their immediate search area – even if just a few miles away – can often find more affordable options that suit their needs and lifestyle. […]
If you’re thinking about buying a house sometime soon, you should be prepared to act fast. New numbers from the National Association of Realtors® (NAR) show that the typical property was on the market for just 29 days in July. While that’s up from the month before, and higher than last year at the same time, it still means that homes are selling quickly. In fact, 51 percent of homes sold in July were on the market for less than a month. Lawrence Yun, NAR’s chief economist, says the market is suffering from a lack of lower-priced homes for sale. “Clearly, the inventory of moderately-priced homes is inadequate and more home building is needed”, Yun said. “Some new apartments could be converted into condominiums thereby helping with the supply.” Despite low inventory, home sales rose in July, climbing 2.5 percent over the month before. Regionally, sales fell in the Northeast, but improved in the Midwest and South. In the West, home sales jumped up 8.3 percent from the month before. More here.
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.
When selling a house, there are a number of things you can do to make your listing more attractive to prospective homebuyers. Some obvious examples include an open house and professional photos, but the number one thing you can do to get a good response from buyers is to price it right. A perfectly staged house with professional photos isn’t going to sell quickly if it’s priced too high. According to a recent analysis by Redfin, lowering the price after your home’s been on the market awhile isn’t as effective as setting the price correctly the first time. In fact, when comparing the number of online views a home gets the day it’s listed as opposed to the day of a price drop, the initial listing gets almost three and a half times the number of views. In other words, you’ll never get another chance to make a first impression. The longer your home has been listed without selling, the more likely buyers will assume there is a reason no one has bought it yet. There is an easy way to avoid falling into this trap. Simply follow the guidance of the pros you have hired to help sell your […]
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.
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. […]