Real Estate

5 Surprising Stats About Buyers

NAR Daily News Magazine - March 14, 2018 - 12:00am

Data from NAR’s 2018 Home Buyer and Seller Generational Trends Report challenges some of the common assumptions about home shoppers’...

Categories: Real Estate

NAR to Congress: Make Debt Cancellation Relief Permanent

NAR Daily News Magazine - March 14, 2018 - 12:00am

In testimony before the powerful House Ways & Means Committee Wednesday, one REALTOR® called for a commonsense solution to help families...

Categories: Real Estate

What to Consider When Selling Your Home in a Rising Rate Environment

RisMedia Buying 101 - March 13, 2018 - 4:23pm

There are many economic variables to consider when selling your home when interest rates are rising. If that’s the only changing economic variable, you’re generally going to see a negative impact on both home sales and home prices. This means as interest rates rise, the buyer pool for your home is going to shrink.

In 2008, the Federal Reserve set rates at 0.25 percent because of the recession and the lack of buyer confidence or demand. Since then, buyer confidence and buyer demand have risen. In December 2015, rates climbed to 0.5 percent and continued to rise to where they are today at 1.5 percent. The Fed has noted rates will rise to 2 percent in 2018 and then 3 percent by 2020.

What Happens to the Ability to Sell Your Home With These Rises in Interest Rates?
If interest rates rise 1 percent and all other economic factors remain the same, purchasing power for homebuyers will decrease by just over 11 percent; therefore, every quarter-percent (0.25 percent) rise of interest rates reduces homebuyer purchasing power by 3 percent.

That means for a home purchase of $300,000, a 1 percent interest rate rise reduces buying power to just under $267,000. So, someone who potentially may have been able to purchase your home may no longer have the buying power to do so. This creates a smaller buyer pool and less demand for your home. It’s also likely to increase supply as fewer people are able to purchase homes.

If mortgage rates rise, it becomes more probable for indecisive buyers to rush into the market, and the short term will likely see a decent boost; however, it could add extra pressure if rates continue to rise without leveling out.

While interest rates play a role in the housing market, there are a variety of personal and economic factors to consider, as well.

What Other Economic Factors Play a Role?
Supply and demand play crucial roles in determining the movement of home prices. If supply goes up, home prices go down. If supply goes down, home prices will probably go up. If demand increases, home prices mostly likely will as well; however, if fewer people are looking to buy homes, then prices will most likely decrease. As a seller, these are important factors to consider when putting your home on the market.

The sale of new homes is another factor to consider alongside rising interest rates because supply and demand will always play a factor in the home-buying process. Supply increases when new homes are created. Assuming that interest rates don’t rise too rapidly, paying attention to new-home inventory levels will give you an indication of what to expect as a seller.

Monthly income, as it relates to monthly mortgage payments, is a more important variable to gauge than interest rates alone. Your debt-to-income ratio plays a larger factor in your ability to qualify for a mortgage than interest rates alone. When monthly income rises, your ability to absorb higher interest rates does, as well. This means that as long as people are making more money, they’ll also be able to pay off any increase in debts.

When the real estate market crashed in 2007-2008, monthly payments of principal and interest were nearing 25 percent of the U.S. median family monthly income. Even with a rise in interest rates, Americans are currently seeing the highest monthly median income in the last 35 years. Because of this, the percentage of monthly income going toward monthly payments is still well below levels that analysts consider dangerous.

Overall, we seem much more hesitant to take out mortgages than we have been in the past.

One of the largest surprises is the percentage of all-cash transactions for home purchases. Even with interest rates at historic lows, the percentage of all-cash transactions is higher than normal because we’re more cautious about taking on debt than we have been in recent decades.

High stock market valuations allow people to diversify their percentage of assets, cash out and reinvest in real estate to keep their portfolio balanced.

The number of distressed properties is a result of a strong job environment. This allows folks to pay their mortgages without defaulting, while also helping to keep prices up even with a rise in interest rates.

While interest rates play a large factor in selling your home for top dollar, they’re in no way the only deciding factor. All of the factors mentioned above should be taken into consideration before you rush into selling your home because of high interest rates.

Ryan Fitzgerald is the founder of Raleigh Realty, a local real estate firm in Raleigh, N.C., that specializes in helping people find great homes for sale online.

This appeared first on ZING! by Quicken Loans. For more information, please visit realestate.quickenloans.com/.

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The post What to Consider When Selling Your Home in a Rising Rate Environment appeared first on RISMedia.

Categories: Real Estate

The Most Craved Perk in Offices

NAR Daily News Magazine - March 13, 2018 - 12:00am

A new survey reveals what employees want in office space, the biggest drain on productivity, and the most annoying personality types they interact...

Categories: Real Estate

Celebrities Bolster Teen Real Estate Program

NAR Daily News Magazine - March 13, 2018 - 12:00am

A new program that sets out to spark an early interest in real estate among inner-city teens is getting some star power from Alex Rodriquez and...

Categories: Real Estate

The Most Common Contract Contingencies

NAR Daily News Magazine - March 13, 2018 - 12:00am

Find out what your fellow real estate professionals are seeing most often in contracts and what’s most likely to delay settlements.

Categories: Real Estate

NAR: Banking Reform May Boost Real Estate

NAR Daily News Magazine - March 13, 2018 - 12:00am

The association says the bill Congress is debating could open up more lending to households aspiring to become homeowners. 

Categories: Real Estate

Ad Shows Children’s Connection to Homes

NAR Daily News Magazine - March 13, 2018 - 12:00am

Moving can be stressful, especially for children. A new advertisement from Coldwell Banker is a heartfelt depiction of the joy that can...

Categories: Real Estate

Why Are Some Owners Stuck in Place?

NAR Daily News Magazine - March 12, 2018 - 12:00am

Some economists are pointing to homeowners who are staying put as a reason for the lack of inventory in many markets. Find out why they aren't...

Categories: Real Estate

Where the Nation’s Happiest Residents Live

NAR Daily News Magazine - March 12, 2018 - 12:00am

Want to find your happy place? A new analysis shows where you should look. 

Categories: Real Estate

3-D Printed Homes Are Becoming a Reality

NAR Daily News Magazine - March 12, 2018 - 12:00am

A 350-square-foot home in Austin, Texas, was produced by a 3-D printer. Could this be a model to follow for the housing industry?

Categories: Real Estate

Markets With the Most Rapid Home Sales

NAR Daily News Magazine - March 12, 2018 - 12:00am

Some metros have houses selling at record speeds—sellers aren’t having to wait long for a Sold sign to go up. 

Categories: Real Estate

5 Great Cities for Millennial Homebuyers

RisMedia Consumer News - March 11, 2018 - 1:02pm

(TNS)—For millennials who are ready to become homeowners, finding an affordable house in a great community can be challenging. With housing inventory historically low, real estate in major metro areas is at a premium. It’s no surprise, then, that young buyers are moving to the suburbs, according to the 2017 Home Buyer and Seller Generational Trends Report by the National Association of REALTORS®.

Among millennials surveyed, 57 percent bought a house in the suburbs, spending an average of $205,000. Meanwhile, only 12 percent bought in an urban or central city. Affordability, convenience to work and neighborhood quality were among the top requirements for these buyers.

Using this information, we identified five cities that offer some combination of affordable housing, economic growth, job opportunities, proximity to major metro areas and recreational activities.

Great cities for millennial homebuyers:

  • Lancaster, Pa.
  • Columbus, Ohio
  • Garner, N.C.
  • St. Petersburg, Fla.
  • West Des Moines, Iowa.

Lancaster, Pa.
Population: 59,218
Median value of housing: $109,300

One of the oldest inland cities in the country, Lancaster boasts unique features, such as the country’s oldest continuously running farmers market. It’s also home to an established arts community and a network of independently owned businesses.

There are a number of homes available in Lancaster, including new construction. There were 200 new housing units built in Lancaster in 2017. This year, the city is on track to add 125 more, according to Marshall Snively, president of Lancaster City Alliance.

“In the last 10 years, we’ve had more than $1.5 billion in public and private investment, including residential development, and more is on the table,” Snively says.

Nestled between Harrisburg and Philadelphia, Lancaster is a good option for people who want to work in one of these larger cities but own in a more affordable location. Residents can take a train to Harrisburg in less than 35 minutes, and trains into New York City take about two-and-a-half hours.

Local businesses abound, so many residents don’t have to look beyond the city for jobs. Medical center Lancaster General Health has a network of 300 physicians and more than 3,600 employees. Fulton Bank, one of the region’s most prominent financial institutions, is headquartered in Lancaster.

The city has a strong arts culture, which supports a variety of vintage and antique stores, as well as outdoor markets and performing arts. Gallery Row downtown consists of three blocks of galleries, restaurants and retail.

Columbus, Ohio
Population: 860,090
Median value of housing: $131,800

You can own a home in Columbus without breaking the bank. Even in some of the more expensive neighborhoods, like Harrison West, you can find three-bedroom, two-bath homes for under $250,000.

Columbus supports many industries, including healthcare, education, finance, manufacturing, retail and technology. Columbus’ largest employer, the Ohio State University, has more than 30,000 full-time workers. Nationwide Insurance is also headquartered here, with about 13,000 full-time employees.

Columbus offers amenities for just about everyone. Kayakers can enjoy Columbus’ waterways, like Big Darby Creek, Griggs Reservoir and the Scioto River. There are also miles of bike trails and thousands of acres of parkland to hike.

Nightlife includes comedy clubs and live music venues, as well as hundreds of restaurants. Additionally, there are many large-scale attractions, like the Center of Science and Industry as well as the Columbus Zoo and Aquarium.

Garner, N.C.
Population: 28,776
Median value of housing: $164,800

This small town is about six miles south of Raleigh and is also near the Research Triangle, which includes Duke University, North Carolina State University and the University of North Carolina at Chapel Hill.

For people who work in any of these areas, Garner offers more affordable housing than some of the other nearby communities.

Garner’s business landscape is a mixture of information, utilities, retail and public administration. Companies like Butterball and Direct Distributors are headquartered in Garner. The median household income in Garner is $59,812, above the national median of $57,617, according to Census data.

Outdoor enthusiasts will appreciate Garner’s 1,200 acres of parkland and open space. White Deer Park offers bikers, runners and walkers two miles of paved trails, playgrounds, an arboretum and a 2,500-square-foot nature center.

Garner also has a mix of chain stores, shopping plazas and locally owned businesses. Local watering holes, like The Beerded Lady, offer a place for residents to see live music.

St. Petersburg, Fla.
Population: 260,999
Median value of housing: $154,800

St. Petersburg has rejuvenated its downtown, which is home to a mixture of business offices, residential property, restaurants and entertainment.

The Gulf Coast city boasts more than a dozen companies that employ over 1,000 people, including HSN, Raymond James Financial and Jabil Circuit, in addition to many other mid- and small-sized companies.

Mayor Rick Kriseman, who was just recently awarded the 2018 Small Business Advocate award by the U.S. Conference of Mayors for his commitment to small businesses, said that creating opportunities for young people is a top priority for St. Petersburg. The city’s Grow Smarter initiative developed by the city and the Chamber of Commerce to assess, develop and create programs to grow the local economy is an example of that focus.

“We are working hard to ensure we are an inclusive and welcoming city where people of all ages can grow and thrive,” Kriseman says. “We are specifically aiming to bolster and support our population of young professionals, as their skills and interest align well with our Grow Smarter economic development strategy.”

St. Petersburg is home to world-class museums, such as the Salvador Dali Museum and the Fine Arts Museum, as well as chefs honored with James Beard awards, including Lauren Macellaro of The Reading Room.

The city hosts events like the Firestone Grand Prix and is home to the Tampa Bay Rays baseball team.

West Des Moines, Iowa
Population: 64,560
Median value of housing: $195,500

West Des Moines borders Des Moines to the west, about eight miles from Des Moines International Airport. This small city reaps the benefits of the booming financial and publishing industries in Des Moines while retaining a grass-roots community.

“What we’re seeing is that a lot of young people are buying in our older neighborhoods,” says Clyde Evans, director of Economic Development for West Des Moines. “They’re fixing up houses from the ’60s, ’70s and ’80s. It’s affordable for them to do that here.”

Finance and insurance companies, including Wells Fargo, Farm Bureau and Athene, are located in West Des Moines. Small businesses also make up a large part of West Des Moines’ economy, adding to the 2,800 businesses in the city, according to the West Des Moines Chamber of Commerce. West Des Moines is only 11 miles east of Waukee, the future home of Apple’s $1.375 billion data center announced last year.

West Des Moines has a variety of restaurants and shopping destinations, including Jordan Creek Town Center and Valley West Mall. There are also microbreweries for beer connoisseurs, like locally owned Twisted Vine.

The 632-acre Raccoon River State Park offers an array of activities like fishing, boating and even swimming along the 500-foot beach, which is part of Blue Heron Lake. There’s also an extensive network of almost 50 miles of greenway trails, park trails and side paths.

©2018 Bankrate.com
Distributed by Tribune Content Agency, LLC

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The post 5 Great Cities for Millennial Homebuyers appeared first on RISMedia.

Categories: Real Estate

Why Buyers May Lose If They Don’t Act Now

NAR Daily News Magazine - March 11, 2018 - 1:00am

“Every time the interest rates go up, you eliminate a group of people who can no longer afford to buy a house,” says one mortgage...

Categories: Real Estate

‘Greenwashing’ Raises Questions About Sustainable Homes

NAR Daily News Magazine - March 11, 2018 - 1:00am

Some homes may be marketed as energy-efficient when, in reality, they have few such features. Prepare your environmentally conscious clients to do...

Categories: Real Estate

Renovations Homeowners Are Eyeing This Year

NAR Daily News Magazine - March 11, 2018 - 1:00am

Fifty-eight percent of homeowners plan to spend money on home improvement projects this year, according to a new survey. These are the remodels...

Categories: Real Estate

Most Markets Near Peak; No Signs of Bubble

NAR Daily News Magazine - March 11, 2018 - 1:00am

Throughout the country, home prices have been rising steadily since 2012, and there are signs the runup may be starting to slow. But a repeat...

Categories: Real Estate

3 Smart Strategies for Investors

NAR Daily News Magazine - March 11, 2018 - 1:00am

Investors can see big returns on real estate, but the most successful tend to have a strong understanding of how to evaluate their options before...

Categories: Real Estate

Senior Housing Development Exceeds Demand

NAR Daily News Magazine - March 11, 2018 - 1:00am

Developers have built thousands of units in many markets, but low demand is causing the sector to slow, CoStar Group reports.

Categories: Real Estate

Agent Collects Commission in Cryptocurrency

NAR Daily News Magazine - March 9, 2018 - 1:00am

Real estate brokerage Culture Estate in Scotch Plains, N.J., wants to take digital transactions one step further with its commission checks.

Categories: Real Estate

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