5-25-15 Weekly Real Estate Statistics

05-25-15 Weekly Real Estate Statistics

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Thank You!

Have a safe and wonderful Memorial Weekend!Publication1

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Existing-Home Sales on the Rebound Despite Some Affordability Concerns

WASHINGTON (May 14, 2015) – Existing-home sales are expected to finish the year at their highest pace since 2006, but accelerating price growth and rising mortgage rates have the potential to slow sales, according to an economic forecast forum here at the 2015 Realtors® Legislative Meetings & Trade Expo.

Lawrence Yun, chief economist of the National Association of Realtors®, who presented his midyear economic and housing forecast, was joined onstage by Robert Dietz, vice president of tax and market analysis at the National Association of Home Builders. Dietz shared the building industry’s perspective on the housing market and the issues affecting housing supply.

Yun said existing-home sales are measurably higher than a year ago, and strengthened in March as more buyers entered the market as the spring buying season got underway.

“Sustained job growth and interest rates below 4 percent have been the catalyst behind the improvement in sales,” said Yun. “The demand for buying is especially strong in parts of the country where jobs gains and economic activity have outpaced the rest of the nation – particularly in states like Utah and Florida and cities such as Denver.”

After falling slightly below a pace of 5 million in 2014, Yun expects home sales to rebound and steadily improve, ending up at a pace around 5.30 million (the highest since 2006) this year and 5.5 million in 2016. Yun expects the national median existing-home price to rise to around 6 percent this year (5.7 percent in 2014) before moderating to 4 percent in 2016.

On the topic of home prices, Yun said increasing demand in recent months, without meaningful gains of new and existing-homes available for sale, is starting to negatively impact affordability and is pushing price growth to unhealthier levels.

“The exception is the Northeast, where outside of Boston, contract activity and price appreciation have stagnated since late last year because of slower economic growth and weaker local job markets,” he said.

A large portion of Yun and Dietz’s remarks this morning centered on the topic of housing supply. According to Yun, new home construction continues to underperform and is hampering overall sales from being higher.

“Housing supply needs to increase measurably to meet the pent-up demand for buying,” said Yun. “To put it in perspective, there were 37 million more people in the U.S. last year compared to 2000, yet existing-home sales that year were higher (5.2 million) than last year (4.9 million).”

Dietz added that unlike the existing-home market, demand for single-family new home construction remains weak, and the homebuilding industry is acting accordingly by focusing on multifamily rental housing. “According to our data, new home construction for first-time buyers is about half of the long-term average and the reason is simple: the decline in homeownership and marriage rates among young adults,” he said.

Yun and Dietz both also pointed to several factors hurting homebuilders, including increasing costs for building materials and builders’ inability to obtain financing – especially from smaller community lenders.

Looking ahead in the building market, Dietz said activity is not expected to return to normal levels until at least 2017. He also pointed to NAHB’s data on townhome construction as an indicator to closely follow. “A gradual uptick in the building of townhomes would lead me to believe that young buyer demand is finally on the rise,” Dietz said.

Yun is forecasting housing starts to come in around 1.1 million this year and reach 1.4 million in 2016, which he said is still below the 1.5 million needed each year to keep up with the underlying demand. New-home sales are likely to total 570,000 this year, and increase to 720,000 next year.

Referring to NAR’s recent study looking at wealth inequality, Yun said rising home prices in many metro areas have helped homeowners build housing wealth in recent years, but the continued decline in homeownership means the gains are going to fewer people and leading to worsening inequality. “Household net worth is at an all-time high, but the gains are mostly going to wealthier households, who in turn have helped propel vacation home sales to record levels,” he said.

Yun added, “Although there are metro areas that are the exception – such as Austin, Texas – homeownership is declining in most parts of the country, and the inability for renter households to become homeowners is leaving them behind financially.”

Moving forward, Yun does anticipate the homeownership rate to slightly decline for a couple more years before gradually rising as more renters eventually transition to homeownership.

After zero growth in the first quarter, Yun anticipates Gross Domestic Product to pick up in the months ahead, likely closing at 2.3 percent this year before increasing to 3.0 percent in 2016.

Yun expects the U.S to start entering a rising interest rate environment, with the Federal Reserve increasing short-term rates in September and mortgage interest rates gradually moving upward over the next year, hovering around 4 percent in 2015 and edging-up past 5 percent in 2016.

“The impact of rising rates on affordability will greatly depend on two things: housing supply keeping up with demand and the strong pace of job creation eventually leading to meaningful wage gains,” he added.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

NOTE:  Existing-home sales for April will be reported May 21, and the next Pending Home Sales Index will be May 28; release times are 10:00 a.m. EDT.

Reprinted from http://www.realtor.org/news-releases/2015/05/existing-home-sales-on-the-rebound-despite-some-affordability-concerns , May 14th, 2015 with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2014. All rights reserved. 

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05-18-15 Distinctive Real Estate Statistics

05-18-15 Weekly Real Estate Statistics

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Will Student Loan Debt Derail Your Children’s Homeownership Dreams?

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As the mother of a high school junior, I twitch a little bit every time she talks to me about where she might like to attend college. Far too many of her choices have a sticker price of $60,000 a year once you add up room, board, books, tuition, and pizza.

So I’m not surprised when I hear news reports about the rising number of Americans with student loan debt and how that might influence their ability to buy a home. We know, for instance, from the NATIONAL ASSOCIATION OF REALTORS® “2013 Profile of Homebuyers and Sellers” that of the 12% of buyers who said saving for a downpayment was difficult, 43% cited student loan debt as a reason.

But I was surprised to find out the driving force behind rising student debt levels isn’t rising tuition — it’s falling family wealth.

Perfect Storm of Debt

Outstanding student loan debt has doubled since 2007, and in that time “millions of American households experienced severe economic shocks, including large declines in home value, unemployment, and big drops in retirement account values,” said Rohit Chopra, Consumer Financial Protection Bureau (CFPB) assistant director and student loan ombudsman, in a speech at the Federal Reserve Bank of St. Louis.

Essentially, it’s not just that schools cost more, but parents’ savings took a hit, so more kids are taking out loans. Then young adults leave college behind the financial eight ball.

As of 2010, 40% of households headed by an American under 35 were on the hook for a student loan. Meanwhile, the real wages of young college graduates declined by 5.4% between 2000 and 2011. Not only are students paying more when they have to borrow to pay for college, the wages that a college degree nets them are falling.

How Much Do Students Owe?

The College Board estimates the average student with a loan owes $26,500. If she’s paying 3.4% interest and repays the loan over 10 years, she’s got a monthly payment of about $260.

That $260 won’t stop her from qualifying for a mortgage any more or less than a similar payment for an auto loan or credit card. (What some people may not realize it that lenders don’t treat student loan debt differently from other debt.) But if that graduate is earning $30,000 a year and also has a $400-a-month car payment or uses charge cards to live beyond her means, buying her first home may indeed be a challenge.

Why Do Homeowners Need to Care?

Because college graduates are the ones who’ll be buying entry-level homes in the years ahead.

  • When young people can’t afford to repay student loans and default, their credit scores drop and they can have trouble qualifying for a mortgage.
  • When they’re forced to spend too much of their income on student loans, they may not have enough money left at the end of the month to save for a downpayment.

What About Americans Who Don’t Go to College?

Recently, they’ve been more likely to buy homes than their college-educated counterparts. “In 2012, for the first time in at least 10 years, 30-year-olds with no history of student loans were more likely to have mortgage debt than those with student debt,” Chopra said.

Historically, a college education has been a ticket to eventual homeownership because you’re more likely to be employed and have a higher income than non-graduates.

It’s possible that rising student loan debt could change that trend and, if it does, that’s bad news for anyone who needs to sell an entry-level home.

What This All Means for You

If you do borrow, be wary of the deal you’re offered. The CFPB has made it clear it’s going to take on the private student loan industry, but until then you might be better off using a home equity loan to pay for college. You have consumer rights when you use a home equity line or loan that you won’t get with a private student loan, plus the equity loan interest may be deductible.

Related: When to Use Home Equity and When Not To

 

Read more: http://www.houselogic.com/blog/home-loans-mortgages/student-debt-ability-to-buy-home/#ixzz3aFQT0Ag9
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Distinctive Real Estate Statistics for 5-4-15

05-04-15 Weekly Real Estate Statistics

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7 Ideas to Help You Use Your Outdoor Space More

These ideas will transform your outdoor space into an oasis you may never want to leave.

When your mom told you to turn off the TV and play outdoors already, she knew what she was talking about. Hanging outside is good for our mental and physical well-being.

As adults, having an outdoor retreat adds an economic component: Upwards of 80% of homebuyers said patios and front porches are “essential” or “desirable,” according to the “What Buyers Really Want” survey from the National Association of Home Builders (NAHB).

So how come when we move into our dream home, we hardly ever use our decks, porches, and patios?

An anthropological UCLA study, described in the book “Life at Home in the Twenty-First Century,” blames our fascination with digital devices — tablets, computers, televisions, games — for keeping us cooped up. The UCLA research participants spent less than half an hour each week in their outdoor space. And these were Californians.

So this summer let’s make a pledge to pay more than lip service to outdoor living so we can be happier, create lasting memories, and generally take advantage of what home has to offer.

1.  Go Overboard on Comfy

When you step into your outdoor space, your first sensation should be ‘ahhhh’. If you’re not feeling it, then your space is likely lacking the comfy factor. Comfy is easy to achieve and can be as low cost as you want. Start simple with a cushion or two or even a throw. Some other simple strategies:

  • Make sure your outdoor seating is as cushy as your indoor furniture. Today’s outdoor cushions aren’t the plastic-y, sweat-inducing pillows of the past. Plus, they can handle a downpour and spring back once they dry.
  • Lay down outdoor rugs so you’re just as comfortable barefoot as you are inside.
  • Give yourself some privacy. Create natural screens with shrubs, bushes, or even bamboo reeds. Or install prefab screens from your local home improvement store.

2.  Create a Broadband Paradise

Our devices and electronics have conspired to keep us on lock down. Since we’re not about to chuck our digital toys, boot up your outdoor space so you can keep texting, posting to Instagram, and watching cat videos.

  • Wireless outdoor Wi-Fi antennas provide an extra boost so you can stay connected.
  • A solar USB charging station keeps your gizmos powered.
  • Wireless speakers make it easy to bring your music outdoors, and mask a noisy neighborhood.
  • An all-weather outdoor TV lets you stay outside for the big game.

3.  Blur the Line Between Indoors and Out

Creating a seamless transition between your home’s interior and exterior isn’t as simple or low cost as adding comfort, but it’s the most dramatic and effective way to enhance your enjoyment of the space. Plus, it can increase your home’s value.

  • The most straightforward, cost-effective solution: Replace a standard door opening with sliding or glass French doors.
  • Use the same weatherproof flooring, such as stone tile or scored concrete, outside as well as in the room leading to your backyard oasis.

4.  Light the Way

When the sun goes down, don’t be left groping for your wine glass. Outdoor lighting dresses up your home’s marketability and appeal (exterior lighting is buyers’ most wanted outdoor feature, according to the NAHB study), makes it safer, and lets you spend more time outside.

  • Use uplighting to highlight trees, architectural details, or other focal points.
  • Add sconces or pendant lights to make evening entertaining, grilling, and reading easier.
  • Illuminate walkways, rails, and steps with landscape solar lights.
  • Hang fairy or string lights to set an enchanting tone.

5.  Make Your Mark

Let your style dominate your backyard space.

  • Create a path made with colored glass, brick, or other interesting found materials.
  • Craft a one-of-kind outdoor chandelier.
  • Build a pizza oven, custom seating, or other feature you crave.
  • Add personal décor that makes you happy.

In fact, make your outdoor retreat an ongoing project where you can hone your DIY skills.

6.  Don’t Give Anyone an Excuse to Stay Inside

Your outdoor space will magnetically draw family and friends if it has features they find appealing.

  • A fire pit is a proven winner. Food and fire have brought humans together since the dawn of time.
  • Give wee ones the gift of magical thinking with an outdoor playhouse.
  • Add whimsy with a chalkboard fence that both kids and fun-loving adults will enjoy.
  • Add a doggie window in your fence to entertain Spot. Installing a dog run may even boost your home’s value. FYI: It’s been said that pets are one of the top reasons why people buy houses.

Related: Outdoor Projects You Can Do with the Kids

7.  Rebuff the Elements

Hot sun, rain, wind gusts, and bugs are the archenemy of good times. Here are tips and strategies to help you throw shade on Mother Nature:

  • Install an awning, canopy, or pergola. It’ll make it easier to read your Kindle or iPad and keep you dry during a summer shower. Look for products with polycarbonate panels, which block UV rays, too.
  • Rig glass fence windscreens to the keep your BBQ fires burning.
  • Screen in your porch or deck against bugs. But screening will be for naught if you forget the slats between wood planks. Cover the floor with outdoor carpet or staple screening to the underside of floorboards.

Read more: http://www.houselogic.com/home-advice/decks/outdoor-living-ideas/#ixzz3ZD1XndKL
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04-27-15 Weekly Real Estate Statistics

04-27-15 Weekly Real Estate Statistics

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Choosing Light Bulbs Based on Your Fixtures

Light bulb shopping used to be as simple as turning on a light switch. Today, it means weighing priorities for cost, energy efficiency, and aesthetics. Since you’re probably replacing bulbs one fixture at a time, here are some best-bet picks for each type.

Table and Floor Lamps: Halogen Incandescent

  • Light shines in all directions, providing a warm glow.
  • Dimmable.
  • Looks most similar to the traditional incandescent.
  • Uses 25% to 30% less energy than the incandescent.

Table and floor lamps look best with omnidirectional light. “You probably don’t want a big bright spot in the middle of your lampshade,” says Jeff Harris of the nonprofit think tank Alliance to Save Energy. “You’re looking for a nice, warm glow.”

Halogen incandescents provide that, and are good with dimmers. You may be able to find a dimmable CFL, but it’s common to experience humming or flickering at low light levels.

For non-dimming lamps, CFLs are great if you can find a color temperature you like.

  • Color temperature is measured on a warmness (candlelight) and coolness (blue sky) scale. LEDs, CFLs, and halogen incandescents all come in a wide range of color temperatures.
  • Buy covered globes or A-lamps — bulbs shaped like old-fashioned incandescents — rather than spirals if you can see the bulb and aren’t a fan of the spiral look.
  • Otherwise, just go with halogen incandescents and don’t sweat the fact that CFLs are more energy-efficient than halogens. Your still saving over a traditional incandescent and the glow is pretty.

So why not LEDs? LEDs point light in a single direction, although new LED-containing A-lamps are designed to compensate for that by using prisms or special coatings. But all that extra technology makes them expensive — probably not worth it for your bedside lamp, which isn’t a big energy hog anyway.

Recessed Ceiling Lights (Kitchens, Family Rooms): LEDs

  • Energy efficiency is key in high-use areas.
  • 80% energy savings over incandescents.
  • Bulb life (up to 50,000 hours) much longer than CFLs.
  • Shine light a single direction — rather than glowing.
  • Brighter than halogens or CFLs.

Overhead recessed lighting in the kitchen or family room gets lots of use, so energy efficiency is a big consideration; plus, you need bulbs that point light in a single direction so the light actually escapes the can or fixture.

LED reflector lamps, the flat-topped bulbs typically used as floodlights or spotlights, are designed to shine light in a single direction. And that means you’ll get a brighter look with less energy output than CFLs or halogens.

New conversion kits let you put LEDs into your old can fixtures designed for screw-in bulbs.

A word of caution: LEDs don’t dim well unless they’re connected to a wall dimming switch specifically designed for them. You can get LED-compatible dimmers at big-box stores starting at around $30. Same goes for CFLs.

If you do decide on CFLs or halogen incandescents for a warmer quality of light:

  • Buy reflector-lamp style bulbs, not A-lamps or globes, so the light isn’t trapped inside the can.
  • If you have multiple cans, you can probably get away with a lower-wattage halogen incandescent reflector bulb and save energy while still having plenty of light.

Bathroom Vanity Fixture: Halogen Incandescents

  • Better for showing color and texture than CFLs or LEDs.

Lighting over the bathroom vanity is a highly personal lighting choice, especially when there are women in the house. If the light isn’t flattering to your skin tone or makes it hard to apply makeup, you’ll be dissatisfied.

That’s why halogen incandescents, with their pleasing light, are a good bet.

However, if the bathroom where you primp is a high-traffic area and you’re concerned about energy use, experiment with CFLs in a warm color temperature and get a separate lighted mirror for your beauty routine.

Stairwell Light: LEDs

  • Inconvenient fixtures are a good place to use long-lasting LEDs.

How many times are you willing to drag out a ladder and change the bulb in a tough-to-reach fixture? Take advantage of LEDs’ long life by putting them in spots you don’t want to revisit often:

  • Fixtures hanging in stairwells
  • Track lighting suspended from a cathedral ceiling
  • Cabinets
  • Ledges
  • Tray ceilings
  • Recessed areas

Outdoor Floodlight: Halogen Incandescent

  • For security and efficiency, use fixtures with daylight/occupancy sensors.
  • Since outdoor lights aren’t used often, not worth investing in LEDs.
  • CFLs don’t come on easily in cold weather.
  • CFLs don’t last as long as advertised when turned on and off frequently.

If you don’t want to get new fixtures with sensors, you can buy a sensor attachment that screws into each socket.

Rarely Used Fixtures: Low-Cost Bulbs

  • Opt for what’s easy on your wallet.
  • Use the most energy-efficient bulbs, such as LEDs, in most-used fixtures.

If the total yearly hours for the fixtures in your closets, dining room chandeliers, and the naked bulb in your attic are low, go cheap.

Related:

Want to know more about picking light bulbs for aesthetics?

A strategic plan for buying pricey LEDs

What to know about CFLs

Read more: http://www.houselogic.com/home-advice/lighting/buying-light-bulbs/#ixzz3XtBSnSbg
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