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. […]
There are many ways to gauge the housing market. You can follow home prices, mortgage rates, home buyer traffic and sales, new home construction, or access to credit. If you’re a potential home buyer or seller, inventory is perhaps the best indicator of the housing market. That’s because it’s an easy way to determine if the market favors home buyers or sellers. When there are too few homes for sale, home buyers have to compete for available homes, which leads to higher home prices. When there are too many homes for sale, the pressure is on the sellers, who have to make sure their home is attractively priced. Typically, inventory is measured by how long it would take to sell the homes currently for sale. A six-month supply is considered a balanced market. In the last few years, inventory has been low. However, new data from Pro Teck Valuation Services shows a dramatic improvement in inventory. The number of metropolitan areas with less than three months of available inventory has fallen to 3.1 percent from 12.6 percent last year. It also found that two-thirds of metros now have between four and eight months of remaining inventory, which is considered healthy. […]
If you’re a prospective home seller, you’re probably thinking about upgrades, renovations, and remodeling projects. Making your home appealing to home buyers is important when it’s time to sell. You’re probably wondering which projects are smartest for your money. Even if you don’t plan on selling your home anytime soon, you might want to consider what projects will help out when you do decide to move. According to a recent analysis by Zillow, there are some easy answers. For example, though kitchens are one of the more important rooms in the house, they aren’t necessarily the best place to start upgrading. Because they’re so central to the way we live, they also involve a lot of individual preferences. Potential home buyers may not agree with your choices. Since it’s an expensive job that may not help lure home buyers, it doesn’t offer much bang for your buck. You might love a kitchen with new granite countertops and top-notch appliances, but a prospective homebuyer who doesn’t cook much might not be swayed by such features. A better route is to go with exterior projects like landscaping or new paint. Since they’re on the outside, they make a good first impression. They’re […]
Home builders are on the frontline of the housing market. Their business depends on knowing what buyers want and when they want it. That’s why the National Association of Home Builders (NAHB) tracks builder confidence in the market for newly built homes. When builders are optimistic about buyer demand they build more homes, which helps balance the market and makes conditions better for all homebuyers. The results of the NAHB’s most recent survey shows builders are confident in the market and reporting solid demand. On a scale where any number above 50 indicates more builders view conditions as good than poor, April’s Housing Market Index scored a 63. Despite the strong showing, Robert Dietz, NAHB’s Chief Economist, says a shortage of construction workers and buildable lots is causing housing costs to rise. Ongoing job growth, favorable demographics, and a low-interest rate environment will help to modestly spark sales growth in the near term, Dietz said. However, supply-side headwinds that are putting upward pressure on housing costs will limit more robust growth in the housing market. More here.
Spring is typically the season when housing market activity picks up. After a slow fall and winter that had mortgage rates rising and affordability concerns increasing, the spring sales forecast had been a question mark. Will homebuyers stay on the sidelines, convinced that there are better conditions ahead? Or will they see declining rates and an increasing number of homes for sale as a sign that it’s a good time to buy? According to Fannie Mae’s most recent Home Purchase Sentiment Index (HPSI), Americans are feeling more optimistic – just in time for the market to heat up. Results show a 7 percent increase in the number of respondents who said it was a good time to buy a home and a 13 percent increase in the number who think it’s a good time to sell. Doug Duncan, Fannie Mae’s Senior Vice President and Chief Economist, says that things are trending in the right direction. A brighter housing market outlook drove this month’s increase in the HPSI, a welcome sign from consumers as we enter the spring and summer home buying seasons, Duncan said. The results further corroborate the positive effect of falling mortgage rates on affordability, which we expect […]