Closing Timelines Get Even Shorter

Daily Real Estate News | Monday, April 24, 2017

The average time to close on all home loan types dropped to 43 days in March—the quickest pace since February 2015, according to Ellie Mae’s Origination Insight Report. A year ago, the average closing time was 46 days. Broken out, loans to purchase a home took 43 days to close, and refinance loans took 43 days in March, down from 45 and 47 days, respectively, in February.

The share of purchase loans last month rose to 63 percent of total originations, up from 57 percent in February, according to Ellie Mae’s report. That marks their highest share since July 2016. “The purchase market continued to heat up in March,” says Ellie Mae president and CEO Jonathan Corr. He also attributed the drop in closing times to Ellie Mae lenders who are automating more mortgage processes “to improve efficiency, quality, and compliance.”

More borrowers are opting for adjustable-rate mortgages as well, according to Ellie Mae’s report. ARMs increased from 5.3 percent to 5.6 percent in March, which is the highest percentage in three years.

Source: “Lenders Speed Up Loan Processing: Ellie Mae,” Mortgage News Daily (April 21, 2017)

“Copyright National Association of REALTORS®. Reprinted with permission.”

 

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Home Sales Zoom to Highest Pace in Decade

Daily Real Estate News | Friday, April 21, 2017

This spring’s housing mantra: Going, going, gone! “Severe” housing shortages are prompting existing homes to sell significantly faster this year, propelling home sales to the highest pace in more than a decade, the National Association of REALTORS® reported Friday.

Strong sales gains in the Northeast and Midwest were behind most of the nationwide 4.4 percent month-over-month increase in existing-home sales in March. The West was the only major region of the U.S. to see a modest decline in sales activity last month.

Regional Breakdown 

The following is a closer look at how existing-home sales performed across the country in March:

Source: National Association of REALTORS®

  • Northeast: Existing-home sales jumped 10.1 percent in the region, reaching an annual rate of 760,000. Sales are now 4.1 percent above a year ago. Median price: $260,800, which is 2.8 percent higher than a year ago.
  • Midwest: Existing-home sales rose 9.2 percent to an annual rate of 1.31 million in March, and are 3.1 percent above a year ago. Median price: $183,000, up 6.2 percent from a year ago.
  • South: Existing-home sales increased 3.4 percent to an annual rate of 2.42 million, and are 8.5 percent above March 2016. Median price: $210,600, up 8.6 percent from a year ago.
  • West: Existing-home sales in the West dropped 1.6 percent to an annual rate of 1.22 million in March, but remain 5.2 percent above a year ago. Median price: $347,500, up 8 percent from March 2016.

“The early returns so far this spring buying season look very promising as a rising number of households dipped their toes into the market and were successfully able to close on a home last month,” says Lawrence Yun, NAR’s chief economist. “Although finding available properties to buy continues to be a strenuous task for many buyers, there was enough of a monthly increase in listings in March for sales to muster a strong gain. Sales will go up as long as inventory does.”

Total existing-home sales—which include completed transactions for single-family homes, townhomes, condos, and co-ops—reached a seasonally adjusted annual rate of 5.71 million in March. The sales pace is 5.9 percent above a year ago. Further, existing-home sales are now the strongest month of sales since February 2007 (5.79 million).

Here’s a closer look at some of the key indicators from NAR’s latest housing report, reflecting March housing numbers:

Home prices: The median existing-home price for all housing types was $236,400, up 6.8 percent from a year ago when it averaged $221,400.

Days on the market: Properties stayed on the market for an average of 34 days in March, down significantly from 47 days a year ago. Short sales took the longest to sell at a median of 90 days in March; foreclosures sold in 52 days; and non-distressed homes took a median of 32 days—which is the shortest length of time since NAR began tracking such data in May 2011. Forty-eight percent of homes sold in March were on the market for less than a month.

All-cash sales: All-cash transactions comprised 23 percent of sales in March, down from 25 percent a year ago. Individual investors make up the biggest bulk of cash sales. They purchased 15 percent of homes in March, up from 14 percent a year ago.

Distressed sales: Foreclosures and short sales made up 6 percent of existing-home sales in March, down from 8 percent a year ago. Broken out, 5 percent of sales in March were foreclosures and 1 percent were short sales. On average, foreclosures sold for a discount of 16 percent below market value; short sales were discounted an average of 14 percent.

Inventories: Housing inventory at the end of March rose 5.8 percent to 1.83 million existing homes available for sale. Inventory is 6.6 percent lower than a year ago (1.96 million). Unsold inventory is now at a 3.8-month supply at the current sales pace.

“Bolstered by strong consumer confidence and underlying demand, home sales are up convincingly from a year ago nationally and in all four major regions despite the fact that buying a home has gotten more expensive over the past year,” Yun says.

“Copyright National Association of REALTORS®. Reprinted with permission.”

 

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Fewer New Homes in Pipeline Pushes Up Prices

Daily Real Estate News | Wednesday, April 19, 2017

Nationwide housing starts dropped in March, despite continued high buyer demand, which is adding pressure to overall home prices.

Housing starts for single-family and multifamily homes dropped 6.8 percent in March to a seasonally adjusted annual rate of 1.22 million units, the Commerce Department reported Tuesday. Broken out, single-family production plunged 6.2 percent to an annual rate of 821,000 units in March month over month, following a strong February reading. Multifamily starts dropped 7.9 percent to an annual pace of 394,000.

The constraint in new-home construction is proving a big challenge for the overall housing market, says Lawrence Yun, the chief economist for the National Association of REALTORS®.

“A major housing shortage exists in this country,” Yun said in a statement. “It is therefore disappointing to witness in March the continued lackluster performance in new-home building, which was the second lowest activity over the past six months. Home prices have risen by 41 percent and rents have climbed 17 percent over the past five years at a time when the typical worker wage has grown by only 11 percent. To relieve housing costs, there simply needs to be more homes built.”

Across the country, single- and multifamily housing production fluctuated in March. In the Northeast, housing production rose 12.9 percent in March month over month, but dropped in other regions, posting a 16.2 percent decrease in the Midwest, a 16 percent drop in the West, and a 2.9 percent drop in the South, the Commerce Department reported.

Despite March’s nationwide drop, the National Association of Home Builders notes that overall housing production for single-family homes in the first quarter of this year is still 8.1 percent above the pace in 2016.

“The three-month moving average for single-family starts has reached a post-recession high, which shows that this sector is continuing to firm,” says NAHB Chief Economist Robert Dietz. “We can expect further gains in single-family production throughout the year, while multifamily starts should level off.”

Housing permits—a gauge of future production—is holding promise for a turnaround. Permit issuance in March rose 3.6 percent to a seasonally adjusted annual rate of 1.26 million units, but that was all buoyed by a pickup in multifamily permits. Multifamily permits increased 13.8 percent to 437,000 units while single-family permits in March were down 1.1 percent to 823,000.

By Melissa Dittmann Tracey, REALTOR® Magazine’s Daily News

“Copyright National Association of REALTORS®. Reprinted with permission.”

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5 Ways to Make Listing Photos Pop

Daily Real Estate News | Friday, April 14, 2017

Photos of your listing are crucial when selling a home and presenting it online to potential suitors. The New York Times recently featured several suggestions from professional stagers and interior photographers on how to achieve a picture-perfect home, including:

Trim the belongings. “Instead of having lots of little things along a countertop or table, have one bold vessel or large plant, or a trio of objects that read as one whole,” says Laure Joliet, a photographer based in Los Angeles. “This helps anchor the photo and keeps the space feeling serene.” Keep plants and knick-knacks away from windowsills and off the piano top or coffee tables. In the kitchen, clear away all the refrigerator magnets, paper towels, and majority of small appliances. Before taking a photo in the bathroom, open the shower curtain, close the toilet lid, and remove all toiletries from counters. Keep everything clutter-free.

Harness the light. Wash the windows and open the curtains or pull up the blinds, suggests photographers in The New York Times’ article. “Natural light allows for depth in the shadows and highlights in the window, which makes a room look the way it feels,” Joliet says. “It can make your real estate photos look that much more high-end and designed.”

Add in some pops of color. Accents like colorful flowers or a throw pillow can help enhance the photos. “Instead of a fussy bouquet, a vase filled with one type of flower, or greens is best,” Joliet says. She recommends eucalyptus branches. To drape a throw: Grab the middle of the blanket and hold it up so that it cascades evenly down. Place it diagonally at the foot of the bed “with the point up toward the long side of the bed and the fringes hanging slightly off the front,” says Donna M. Dazzo, president of Designed to Appeal, a home-staging firm. To drape it over an armchair, tuck the bottom behind a throw pillow or allow the throw to cascade off the arm, she says.

Hang artwork lower. “We tend to place our art a little bit lower than maybe somebody would in personal use, because in a photo, if you place it too high, the ceiling looks very low,” David C. Salvatore, creative director for Edge Mid-Century Designs in Clifton, N.J., told The New York Times. “Everyone loves high ceilings—and certainly, if you have the ceilings, you need to put in a huge vertical piece” to make sure you show the height.”

Focus on curb appeal: Prune overgrown trees, particularly those that are obscuring the view of the house in any way, Alberto Lau, a real estate photographer in San Diego, told The New York Times. “Take the cover off the barbecue grill unless it is hopelessly rusty, in which case it’s better to move it [out of] the frame of the photo,” he says. Keep any cars away from the front of the house or driveway (place cones or signs, if necessary, to keep others away from parking in the front the day you shoot). Make sure the leaves are raked and trash bins are hidden from view.

“Copyright National Association of REALTORS®. Reprinted with permission.”

 

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Mortgage Rates Set a New 2017 Low This Week

Daily Real Estate News | Friday, April 14, 2017

The 30-year fixed-rate mortgage continues to drop this week, setting a new low for 2017, Freddie Mac reports in its weekly mortgage market survey. This marks the fourth consecutive week that 30-year rates have fallen.

“Following a weak March jobs report, the 10-year Treasury yield dropped about 5 basis points,” explains Sean Becketti, Freddie Mac’s chief economist. “The 30-year mortgage rate fell 2 basis points to 4.08 percent.”

Freddie Mac reports the following national averages with mortgage rates for the week ending April 13, 2017:

  • 30-year fixed-rate mortgages averaged 4.08 percent, with an average 0.5 point, falling from last week’s 4.10 percent average. A year ago, 30-year rates averaged 3.58 percent.
  • 15-year fixed-rate mortgages averaged 3.34 percent, with an average 0.5 point, falling slightly from last week’s 3.36 percent average. Last year at this time, 15-year rates averaged 2.86 percent.
  • 5-year hybrid adjustable-rate mortgages averaged 3.18 percent, with an average 0.4 point, falling from last week’s 3.19 percent average. A year ago, 5-year ARMs averaged 2.84 percent.

Source: Freddie Mac

“Copyright National Association of REALTORS®. Reprinted with permission.”

 

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Watch for These Open House Red Flags

Daily Real Estate News | Wednesday, April 12, 2017

How fast can you pick out signs of deferred maintenance in a listing? Realtor.com® recently spotlighted several red flags to watch for at an open house.

Intense scents. The stronger the air freshener, the more likely the seller is trying to mask an offensive odor, warns Denise Supplee, a real estate professional with Long and Foster Real Estate in Doylestown, Pa. “When there’s too much going on in the scent department—plug-ins, wax warmers, and candles, for example—I wonder what that overkill is hiding,” she says. Your nose should alert your eyes to look for signs of mildew, smoke, or pet accidents.

Uneven flooring. Examine the tile in kitchens and bathrooms closely. “If the gaps or tiles are slightly uneven, it may indicate a DIY job, which will make me think twice—especially if I know this house was flipped,” says real estate investor Eugene Gamble, owner of WeFundYourFlips in Tampa, Fla.

Foundation issues. It’s not uncommon—or particularly alarming—to see hairline cracks in a foundation, but beware of any large gaps, Gamble says. Other potential signs of a foundation issue are sticking doors or windows, visible cracks around window frames, and uneven floors.

Chores undone. “When I walk through a home, I look for signs that the owner might have neglected routine home maintenance,” says real estate pro Malcolm Lawson with Keller Williams Select REALTORS® in Annapolis, Md. This might be anything from burned-out lightbulbs to uncut grass outside to leaky faucets.

Mold. Real estate broker Frank Kirschner in Fort Lauderdale, Fla., suggests opening bathroom and sink cabinets to check around water pipes or drains. Also, check caulking around faucets and tubs for black spots. Look for any patches on the ceiling as well.

Source: “Open House Red Flags: 10 Things to Look for When Buying a Home,” realtor.com® (April 11, 2017)

“Copyright National Association of REALTORS®. Reprinted with permission.”

 

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Court: Fair Housing Protects LGBT People

Daily Real Estate News | Monday, April 10, 2017

For the first time, a federal judge has ruled that provisions in the Fair Housing Act protect against LGBT discrimination. The law states that it is illegal to refuse to rent or sell property to anyone based on race, color, religion, sex, familial status, or national origin. But questions have been raised as to whether fair housing and other anti-discrimination laws also encompasses sexual orientation and gender identity when they are not explicitly named as protected classes.

U.S. District Judge Raymond P. Moore’s ruling in Denver federal court came in a case involving a married couple, Rachel Smith, a transgender woman, and Tonya Smith. The couple says a landlord in Boulder, Colo., denied them and their two children a three-bedroom rental townhome in April 2015 because of their sexual orientation. The family had met with the landlord to see the property, but the couple later received an email from the landlord saying “they were not welcome to rent the townhouse” because a neighboring family was concerned about the children and “noise.”

“I was fairly certain what she [the landlord] was implying,” Tonya Smith told The Washington Post. “But I asked for clarification. She said because it was a small town and everybody gossips, our unique relationship and our status would be the talk of the town, and she wouldn’t be able to keep a low profile anymore.”

Moore said in his ruling: “Discrimination against women [like Rachel and Tonya Smith] for failure to conform to stereotype norms concerning to or with whom a woman should be attracted, should marry, and/or should have children is discrimination on the basis of sex under the FHA. … Such stereotypical norms are no different from other stereotypes associated with women, such as the way she should dress or act (e.g., that a woman should not be overly aggressive, or should not act macho), and are products of sex stereotyping.”

Omar Gonzalez-Pagan, a lawyer representing the couple, says Moore’s ruling is the first in the nation to state that “sex” in the context of the fair housing law includes sexual orientation and gender identity. “It’s an important ruling,” Gonzalez-Pagan says.

“Copyright National Association of REALTORS®. Reprinted with permission.”

 

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Mortgage Rates Surprise By Nearing 2017 Low

Daily Real Estate News | Friday, April 07, 2017

The 30-year fixed-rate mortgage dropped lower for the third consecutive week and neared its low for 2017, Freddie Mac reports in its weekly mortgage market survey.

“The 10-year Treasury yield was relatively unchanged this week, while the 30-year mortgage rate fell 4 basis points to 4.1 percent,” says Sean Becketti, Freddie Mac’s chief economist. “After three straight weeks of declines, the 30-year mortgage rate is now barely above the 2017 low. Next week’s survey rate may be determined by Friday’s employment report and whether or not it can sustain the strength from earlier this year.”

Freddie Mac reported the following national averages with mortgage rates for the week ending April 6:

  • 30-year fixed-rate mortgages: averaged 4.10 percent, with an average 0.5 point, falling from last week’s 4.14 percent average. Last year at this time, 30-year rates averaged 3.59 percent.
  • 15-year fixed-rate mortgages: averaged 3.36 percent, with an average 0.5 point, dropping from last week’s 3.39 percent average. A year ago, 15-year rates averaged 2.88 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.19 percent, with an average 0.4 point, rising from last week’s 3.18 percent average. A year ago, 5-year ARMs averaged 2.82 percent.

Source: Freddie Mac

“Copyright National Association of REALTORS®. Reprinted with permission.”

 

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4 Genius Yard Upgrades Even a Klutz Can Crush

No DIY skills necessary for these outdoor projects. Did we mention they’re really, really easy?

You don’t need to be the host of an extreme home makeover show to build an amazing backyard. In fact, the transformative projects below are easy enough for even the klutziest home improvement newbie to complete.

Just don’t be shocked when the Johnsons appear at your door with hot dog buns in hand, begging to throw a cookout at your place.

#1 No-Blow Outdoor Curtains

When Cara Daniel of “The Project Addict” blog spied a neighbor’s unruly outdoor curtains, she hacked some for her porch that could withstand a gusty Tornado Alley afternoon without upending a glass of lemonade or ensnaring an unsuspecting guest.

She found the sweet spot by slipping conduit pipes through the curtain tabs up top and a hem at the bottom, and securing the pipes with wires (taut, but not too tight).

Daniel did all the hard work of dreaming up the curtains, so a DIY newbie can definitely recreate the project, which uses easy-to-find materials like washers and camping stakes.

Upkeep has been equally simple thanks to her sturdy choice of fabric. “The marine fabric is better than outdoor fabric that I bought,” says Daniel. The easy-to-wash choice has kept the curtains looking picturesque after five years of use.

No fence? No problem! Daune Pitman of the “Cottage in the Oaks” blog MacGyvered an attractive privacy feature from a friend’s pile of discarded shutters.

The $0 price wasn’t the only thing that made the material desirable for an outdoor nook’s privacy screen, though. “They were tall,” says Pitman, “could easily be attached to posts, had the vents — which allows air to flow through — and didn’t weigh too much.”

After nailing the shutters to four-by-fours cemented into the ground (an easy task with a store-bought bag of pre-mixed cement), the nook-facing side got a charming French-blue facelift and the back a coating of foliage-matching bark brown paint.

It’s a kind of self-explanatory project because all you need is:

  • Shutters
  • Posts
  • Cement
  • Hinges (plus screws) for the shutters
  • Paint

What could be easier?

#3 PVC Pipe Pergola

Suburbanite Monica Mangin of the site “East Coast Creative” jumped at the chance to rehab a client’s neglected urban patio.

The showstopper was a clever PVC pergola decked with industrial-style lights. She was inspired by traditional wood pergolas, but wanted an easier material.

“A lot of mason jar light fixtures were trending,” says Mangin.”I liked the look of that but wanted to turn it a little more industrial.”

PVC pipe — with rebar inside as an anchor — won out for its ease on the DIYer and wallet. Could it get any easier?

A simple coat of hammered metallic outdoor spray paint gave the pipe a pricier look, and industrial-strength zip ties kept the string of dimmable, Edison bulb-style lights in place.

Although the project doesn’t take much time or skill, Mangin recommends recruiting two friends to help. Have one hold each end of the pergola while the third secures the lights with zip ties. Overall, it’s a dinner party-friendly cinch that’s surpassed the one-year mark.

4. Solar Light Hose Guards

A solar light stands in dirtImage: Lynda Makara

Topping the list of Sad Gardening Ironies is when the hose you’ve lugged out to help your landscaping stay lush mows over a bed of delicate flowers you just planted. Sigh.

Lynda Makara of the blog “Home of Happy Art” figured out a pretty and pragmatic solution using affordable solar lights.

The DIY part entailed trashing their original plastic stakes (they weren’t strong enough to hold a hose in place), hammering 24-inch pieces of rebar into the ground, and slipping a light over each piece.

Those sturdy posts could handle even the bulkiest hose, protecting Makara’s plantings during waterings then casting a lovely spotlight on them post-dusk.

“The rebar is maintenance free,” says Makara. “I have had to replace some of the batteries in the solar lights, but I think that’s pretty normal.”

It doesn’t get much easier than hammering a stake into the ground. Although Makara suggests straightening the rebar with a level, that’s about as technical as it gets to create a more functional, flowering garden.

“Visit HouseLogic.com for more articles like this.  Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®.”

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