First-time home buyers are important to the health of the housing market, since they typically account for around 40 percent of the homes sold. Although that number has fallen in recent years, a stronger economy and job market has led to increasing demand from younger home buyers. According to one recent survey, an overwhelming majority of Americans between the ages of 18 and 34 say they want to own a home, if they don’t already. The youngest respondents were among the most enthusiastic. Generation Z – which includes Americans between the ages of 18 and 24 – were more than twice as likely to have started, or plan to start, saving for a home before the age of 25 than previous generations. Also, two in five Gen-Z participants said they hope to become homeowners by that age. This shows that members of Generation Z are saving up for down payments as well as building credit to be eligible for mortgage loans in the near future. While they want to become homeowners, they don’t necessarily have the same motivations as previous generations. Fewer of them said they wanted to become homeowners “to live the American Dream” or because they think […]
Sometimes picking a house to buy can cause anxiety. After all, what if you choose the wrong one and aren’t happy living there? What if there are structural or mechanical issues that go undetected and will end up meaning costly renovations? It’s hard to imagine that you could possibly cover all the potential issues in just a few walkthroughs. And so, it’s natural to worry about buyer’s remorse. But, according to a new survey, you might be worrying yourself unnecessarily. The results show an overwhelming majority of respondents said they love their current home. In fact, 83 percent of participants said they were happy in their house. To some degree, the responses fell along demographic lines, with people 55 years or older and retirees being the most likely groups to say they love their home and have no plans to move. Respondents between 18 and 34 were more likely to want to move. There were also regional differences. For example, residents in Boston and Detroit were more likely to say they like their current home and would rather renovate than move, while the survey found Los Angeles residents were the most likely to say they’d prefer a new house. […]
When builders feel confident that there are a lot of home buyers looking for new homes, they build more homes. It’s simple, really. It’s also good for the housing market, as more new homes help provide choices and keep prices from spiking. That’s why the National Association of Home Builders tracks builder confidence each month. In October, their survey found that builders are optimistic about the market for newly-built homes, and are confident that home buyer demand will remain high. “Builders are motivated by solid housing demand, fueled by a growing economy and a generational low for unemployment,” Randy Noel, NAHB’s chairman, said. “Builders are also relieved that lumber prices have declined for three straight months from elevated levels earlier this summer, but they need to manage supply-side costs to keep home prices affordable.” Among the survey’s three components – scored on a scale where any number above 50 indicates more builders view conditions as good than poor – current sales conditions rose a point to 74 and expectations for the next six months increased to 75. The results are an encouraging sign that new home inventory will improve and help bring more balance to the market, which is […]
A “blind” or “sight-unseen” offer on a home is when a home buyer makes an offer before they have even seen the house in person. Why would anyone want to buy a house they haven’t even visited yet? In a competitive market, homes are being sold quickly and home buyers might not have the time to visit the house before it gets swept up, especially if it’s far away. While blind offers have been common in the last few years, recent data shows it’s becoming less common. According to a recent survey, the number of home buyers who made an offer on a house without seeing it first has fallen 15 percent since late last year. This is a good indication that home buyers are feeling some relief and aren’t feeling pressured to move as quickly as they were when inventory was tighter. While this is encouraging news for potential home buyers, it doesn’t mean the market isn’t competitive. If you’re interested in purchasing a home any time soon, it’s still best to do your homework, be prepared, prequalified, and ready to make an offer when you find a house you like. More here.
The housing market is competitive, but just because homes are being swept up quickly doesn’t mean you shouldn’t do your homework. Make sure you’re paying attention during a house tour. Don’t forget to look out for things like leaks and mold. This article will tell you how to get the most out of a tour: https://realestate.usnews.com/real-estate/articles/how-buyers-can-make-the-most-of-a-house-tour
Property listings give you plenty information about the house itself, like the number of bedrooms and bathrooms, when the house was built, etc. But it’s much harder to find out what your neighbors are like. Just one visit won’t determine if you’ll get along with them or not. Fortunately, though, most Americans say they have good neighbors. In fact, according to the results of a new survey from the National Association of Realtors’ consumer website, three out of four people said they have good neighbors. That means that you’ll likely get along with the people living around you. But what exactly makes a neighbor good? Well, respondents said being trustworthy and quiet were the most important qualities in a neighbor and being disrespectful of property was the worst trait a neighbor could have. But while everyone wants to have a good relationship with their neighbors, they don’t necessarily expect to become best friends. Very few participants said a close friendship was a must, with just 9 percent of women saying so and 20 percent of men. https://www.prnewswire.com/news-releases/three-out-of-four-people-believe-they-have-good-neighbors-300733475.html?utm_source=AKZO+Media+Subscribers&utm_campaign=579a41f907-EMAIL_CAMPAIGN_2018_10_18_08_07&utm_medium=email&utm_term=0_134f701abc-579a41f907-276542805
A home’s price isn’t the only factor to consider when calculating the cost of a home. Things like mortgage rates, potential maintenance and upkeep, property taxes, and insurance are all part of the equation. However, the listed price is still the main factor, and it’s the easiest to measure. Because of this, prospective homebuyers are always thinking about where home prices are headed. New numbers from ATTOM Data Solutions offer homebuyers some good news. According to their Q3 2018 U.S. Home Sales Report, home prices only rose 1 percent in the third quarter and are now up 4.8 percent from last year. That’s the slowest price appreciation since 2016. The report found that price increases slowed in 74 of the 150 metro areas analyzed, including Chicago, Los Angeles, Dallas-Fort Worth, Houston, and Miami. Despite the encouraging news, however, not all housing markets are cooling down. In fact, some metros continue to see double-digit gains year-over-year, while others are seeing as little as 3% or lower price gains. Housing markets differ vastly from metro to metro, so it’s best to research the area. More here.
During the spring and summer, homes were selling fast. So fast that the typical home was on the market less than a month. And while home buyers should still expect desirable homes to go quickly, there may be some relief in sight. New numbers from the National Association of Realtors show that the majority of homes are now on the market a little more than a month. Properties typically sold in 32 days in September, an improvement from August when homes moved in just 29 days. Lawrence Yun, NAR’s chief economist, says a trend may be developing. “There is a clear shift in the market with another month of rising housing inventory on a year over year basis, though seasonal factors are leading to a third straight month of declining inventory,” Yun said. “Homes will take a bit longer to sell compared to the super-heated fast pace seen earlier this year.” At the current sales pace, there is a 4.4-month supply of available homes for sale. A 6-month supply is generally considered a healthy market. More here.
Affordability is always a top concern for people thinking about buying a house. Of course, there are other factors that are important when deciding to move or not. But what you can or can’t afford is the biggest. After all, if you don’t have enough for a down payment or couldn’t keep up with the mortgage on a new place, it doesn’t really matter how close to the office it is or in what school district. And affordability is always changing. A new report from the National Association of Realtors’ consumer website is good news for prospective home buyers. The report shows that the number of homes for sale saw its largest year-over-year gain in five years. This is important because in today’s market, home price increases are being driven by the low inventory of for-sale homes. In other words, since there are more home buyers than homes, sellers can demand a higher price. As more homes become available, home buyers will have more choices and price increases will begin to slow. The fact that inventory is up 8 percent over the year before and is showing signs of additional gains means there may be relief on the way for […]
Naturally, potential home buyers become more concerned about affordability conditions as prices rise. And since the past few years have seen that happen, there’s been increasing concern about whether or not now is a good time to buy a house. That’s not to say there hasn’t been demand for homes. In fact, there are plenty of interested home buyers and not enough homes to accommodate them, which is why prices have been rising in the first place. But recently, there’s been more data suggesting that home prices are beginning to soften. In fact, one recent report shows that 26.6 percent of homes listed for sale in September dropped their price, which is a nearly 5 percent increase from the same time last year. That’s good news for home buyers, as is the fact that price drops have been showing year-over-year improvement since the end of March. Affordability may, once again, be moving in a more balanced direction and one that benefits home buyers. More here.