Category: Real Estate

The Hottest Paint Colors of 2019

The paint companies have released their color forecasts for the new year. Here are the hot hues expected to make waves in 2019. Which one is your favorite?

Living Coral / Photo Credit: Furniture Choice

Living Coral: Paint company Pantone announced “Living Coral” as its 2019 Color of the Year. The orange shade with golden undertones embodies “warmth and comfort,” Pantone says. “Living Coral easily delivers a graphic pop to a space,” says Rebecca Snowden, an interior style adviser at Furniture Choice. “Introducing it through small elements will brighten up a room, creating a sense of coziness that’s also fresh and chic.” For example, the energetic tone can liven up cushions, throws, and rugs in a living room. In a dining area, color blocked plates and coasters in the peachy hue may add some spark to a table arrangement, she says. Read Furniture Choice’s guide to weaving in more Living Coral into your home design.

Blueprint / Photo credit: Behr

Blueprint: Behr has gone blue with its top color choice for the new year. Blueprint is a mid-tone blue that is described as warmer than denim but softer than navy. Behr is embracing a full range of blue, teal, and grays as key color choices in 2019. “Layer light and dark blues on walls, cabinets, furniture, and decor for impactful results,” Behr says.

Cavern Clay / Photo Credit: Sherwin-Williams

Cavern Clay: Sherwin-Williams has picked a warm terra-cotta color called Cavern Clay as its 2019 Color of the Year. The color embodies an American Southwest, modern desert aesthetic. “This warm, earthy hue is both casual and refined,” Sherwin-Williams says. “It can be the backdrop of a playful, welcoming dining room or kitchen when paired with bright tiles, warm stone, and sculptural greenery.” It also compliments materials like leather and woodgrains.

Metropolitan Gray / Photo Credit: Benjamin Moore

Metropolitan Gray: Benjamin Moore expects the gray trend to continue in the new year, which is shown through its neutral pick with Metropolitan Gray. “It’s a color in the neutral spectrum that references a contemplative state of mind and design,” says Ellen O’Neill, Benjamin Moore’s director of strategic design intelligence. “Not arresting nor aggressive, this understated yet glamorous gray creates a soothing, impactful common ground.”

The Trending Kitchen Styles in Remodels | Realtor Magazine

© Margaret Wright Photography / Houzz

 

Farmhouse design continues to gain popularity in kitchen remodels, according to the 2019 Houzz Kitchen Trends Study, a survey of more than 1,300 homeowners who are planning or in the midst of a kitchen project.

Eighty-two percent of renovating homeowners this year who are changing the style of their kitchen says they’re making it farmhouse. Farmhouse now nearly ties contemporary in popularity (14 percent versus 15 percent, respectively). Transition—a mix of tradition and modern—still remains the most popular in kitchen design at 21 percent.

 

© Kimberley_Bryan / Houzz

 

“This year’s study illuminates a number of prominent trends in today’s kitchen,” says Nino Sitchinava, Houzz principal economist. “Engineered materials are clearly taking over natural stone in countertops and flooring. Thanks in part to the versatility of these materials, white continues to dominate the kitchen, from cabinets to countertops and walls. Finally, rapid advances in wireless and voice technology are transforming some kitchens into ‘air traffic control’ centers of the home.”

Kitchens aren’t cheap to redo and are about 10 percent more expensive this year, according to the study. The median kitchen renovation cost $11,000, while a major renovation to a large kitchen (more than 200 feet) cost $33,000.

Here are some more kitchen trends that emerged from the Houzz report:

Gray cabinets: White cabinets remain the most common (43 percent), but gray cabinets are winning over more fans. About one in ten homeowners—or 11 percent—chose gray cabinets for their kitchen. Gray cabinets are then often paired with brushed or satin nickel door hardware.

 

© Rikki Snyder / Houzz

 

White and quartz countertops: Granite continues to decline in popularity, while engineered quartz is surpassing all of the natural stone materials combined among kitchen remodelers who updated their countertops. White counters are gaining steam, making up nearly one in every three upgraded countertops.

Mixed finishes: More than half of homeowners—54 percent—say they’ve mixed metal finishes across their fixtures and hardware. For those who mix and match, nickel is popular, but many then opt for oil-rubbed bronze or brushed or satin black finish for door hardware and lighting fixtures.

Engineered flooring: Only a quarter of remodelers who updated their flooring chose natural hardwood, marking a significant decline from recent years. Engineered flooring—such as engineered wood, vinyl, and laminate—have become nearly twice as popular in the meantime.

Appliance finish: Stainless steel may still rule, but black stainless is growing more popular as an appliance finish. It is now in one of every 10 upgraded kitchens. Read The New Kitchen Finish: Black Stainless

High-tech add-ons: More than half of upgraded faucets are high-tech, including water efficiency, no-fingerprint coating, and touch-free activation. Other high-tech features in the kitchen include wireless controls in upgraded appliances and home assistants.

Non-Owners Dream of Ownership, But… | Realtor Magazine

About 75 percent of non-homeowners believe homeownership is still part of their American dream, according to a new analysis released by the National Association of REALTORS®. However, the biggest barrier for non-owners is that they are currently unable to afford a mortgage, according to the fourth-quarter 2018 Homeownership Opportunities and Market Experience (HOME) survey, based on more than 8,000 consumer responses.

During the last quarter of 2018, 43 percent of non-owners said they did not own a home because they were not in a position to purchase one, which is down from 49 percent who said the same in the third quarter. Thirty-three percent said they do not own because current life circumstances are not suitable for ownership, and 16 percent said they currently need the flexibility of renting.

So what could encourage them to buy? Thirty-one percent of non-owners said an improvement in their financial situation would be the biggest motivator to encourage them to buy a home. Thirty-percent also said a change in their lifestyle, such as getting married, starting a family, or retiring, would also be a big motivator to buy.

“The lack of affordable and moderately priced homes has forced non-homeowners to delay achieving that part of the American dream,” says Lawrence Yun, NAR’s chief economist. “However, as the survey confirms, significant lifestyle changes like marriage or starting a family often spur non-owners to pursue homeownership.”

Will Lower Mortgage Rates Escalate Sales Gains? | Realtor Magazine

 

 

The real estate industry will soon see what kind of impact weeks of declining mortgage rates have had on home sales. Will it provide the boost some experts are predicting?

Since early November, the 30-year fixed-rate mortgage has fallen nearly half a percentage point, from 4.94 percent to 4.45 percent, where it stood at the end of this week. This could provide an important incentive for potential home buyers to make a move. The 30-year rate, which didn’t budge in the latest week of reporting, was on a downward trend for six consecutive weeks prior. Existing-home sales in November were already bouncing back from unusually low volume in the summer months, gaining 1.9 percent month over month, due largely to stability in the overall economy, according to data from the National Association of REALTORS®. But when NAR’s data for December existing-home sales is released Tuesday, it may reveal whether lower mortgage rates have escalated sales gains.

NAR Chief Economist Lawrence Yun told Yahoo! Finance on Thursday that he expects recent declines in mortgage rates to keep home sales on an upward track—possibly leading to an additional 200,000 transactions this year. “Buyers will want to take advantage of the lower rates,” Yun says. “This additional demand will help absorb inventory. Both home prices and home sales will be lifted.”

Though rates were flat in the latest week, due largely to weaker manufacturing data and a prediction that the Federal Reserve will leave its benchmark interest rate alone for now, other industry experts echo Yun’s positive outlook. “Interest rate-sensitive sectors of the economy—such as consumer mortgage demand and homebuilder construction sentiment—are on the mend, which indicates that lower interest rates are beginning to have a positive impact on some segments of the economy,” says Sam Khater, Freddie Mac’s chief economist.

Freddie Mac reports the following national averages with mortgage rates for the week ending Jan. 17:

• 30-year fixed-rate mortgages: averaged 4.45 percent, with an average 0.4 point, unchanged from last week’s average. Last year at this time, 30-year rates averaged 4.04 percent.
• 15-year fixed-rate mortgages: averaged 3.88 percent, with an average 0.4 point, dropping from last week’s 3.89 percent average. A year ago, 15-year rates averaged 3.49 percent.
• 5-year hybrid adjustable-rate mortgages (ARMs): averaged 3.87 percent, with an average 0.3 point, rising slightly from last week’s 3.83 percent average. A year ago, 5-year ARMs averaged 3.46 percent.

Top 5 Landscaping Trends for 2019 | Realtor Magazine

Pergolas, metals, and pinks will be the leading landscape cravings of 2019, according to the National Association of Landscape Professionals. The NALP surveyed 1 million of its landscaping professionals to predict the hot trends that will influence the design and maintenance of backyards across the country.

“Homeowners yearn for beautiful outdoor spaces without the hassle of upkeep,” says Missy Henriksen, the NALP’s vice president of public affairs. “This year’s trends reflect current lifestyle preferences as well as innovations happening in the industry that are transforming landscapes across the country.”

NALP predicts the following trends will have the biggest influence on outdoor spaces in the new year:

1. Two-in-one landscape design. “Functional elements are no longer a perk, but rather a necessity in today’s landscapes, as consumers desire stunning outdoor features that have been cleverly designed to serve a dual tactical purpose,” according to the NALP. This might include an edible vertical garden on a trellis that also doubles as a privacy fence; a retaining wall that also includes built-in seating for entertaining, or a colorful garden bed that divides properties.

2. Automated lawn and landscape maintenance. “The latest technology and equipment allow tasks to be more streamlined and environmentally efficient than ever before,” the NALP says. For example, robotic lawn mowers are rising in popularity, and programmable irrigation systems and advanced electrical systems are proving to be extensions of smart homes.

3. Pergolas. Pergolas constructed of wood or composite material are getting major upgrades, such as roll-down windows, space heaters, lighting, and sound systems. “When paired with a luxury kitchen, seating area or fire feature, pergolas can become the iconic structure for outdoor sanctuaries,” according to the NALP.

4. Pink hues. Pops of coral and blush are predicted to be added to more landscapes this year. Pantone’s pick of Living Coral as its 2019 Color of the Year has more landscape professionals predicting the rich shade of pink will pop up outdoors, especially through fresh blooms of roses, petunias, zinnias, and hibiscus in flower beds. Lighter blush tones will also become “the new neutral” in landscaping, the NALP predicts.

5. Metals. “Whether homeowners want a bold statement or whimsical touch, incorporating metals can bring new dimensions to landscape design,” according to the NALP. Metals may be incorporated in decorative art and water features or through outdoor furniture and accessories.

7 Signs of a Market Cooldown | Realtor Magazine

Your buyers may be in luck. As markets are beginning to cool throughout the country, shoppers are beginning to see more houses become available. Sellers may also benefit when their agents are strategic about how they market their home, says Dana Bull, a Boston-area real estate professional who specializes in millennial and first-time buyer clients.

For agents also working with this group of clientele, here are seven signs from Bull that your market is cooling down and how to shift accordingly on behalf of your clients:

Read More:

Let Clients Know Time is Money

1. Increased days on the market

The buying market is becoming less competitive as demand decreases and homes sit on the market a little longer. Help your sellers price their properties correctly by using the MLS to track how days on market correlates with price points in your area.

2. Price cuts

Sellers who aren’t able to get their original price are beginning to make price reductions, another telltale sign of a slowing market, Bull says. This may benefit buyers who have previously been priced out of certain areas.

3. Lower absorption rates

When supply is exceeding demand, it’s a good time for you and your buyers to start looking for price reductions, Bull says. To quickly calculate the absorption rate in your area, divide the number of homes sold in a given month by the total number of homes available during that month.  

4. Decreased home value growth

This is a statistic you should be constantly watching on behalf of your clients. Tracking average price changes is one way you can quickly spot overall trends in your market for your buyers and sellers, Bull says. In many areas, home values are beginning to slow.

5. Higher inventory levels

A seller’s market is giving way to a buyer’s market with an increase in homes for sale. An increase in inventory means the market is slowing, Bull says, which also means home shopping will be less competitive for your buyers.

6. New construction

New builds increase inventory and are a sign that the market is opening up for buyers. Increases in new construction can provide new opportunities for buyers, Bull says.

7. Slowed investor activity

New investors gained confidence when the market was hot and seasoned investors were finding opportunities to sell. Bull says a slowdown in investor buying and selling activity is indicative of a waning market, but it may pose new opportunities for seasoned buyers.

The Home Remodeling Projects Owners Most Regret | Realtor Magazine

Home remodeling isn’t as easy as it looks on TV. And for nearly two-thirds of homeowners who’ve attempted a do-it-yourself house project, they say they regret not calling in an expert on at least one of their projects, according to a new survey from ImproveNet of about 2,000 Americans.

Read more from NAR’s Study: Homeowners Aren’t Shy When It Comes to DIY

But the motivation to save some money is a big driver for their attempts. On average, homeowners said they hoped to save at least 60 percent in costs by bypassing a professional and trying to do it themselves, the survey shows. A separate study by the National Association of REALTORS® shows a bigger attraction to DIY home projects, particularly among younger generations. 

On average, homeowners surveyed by ImproveNet reported attempting eight house projects themselves. But about a third admit to having later to hire a professional to redo the job.

 

kitsune – Morguefile

 

“We’ve seen people take on a lot more than they could deal with,” Joanne Theunissen, the remodeling chair of the National Association of Home Builders, told realtor.com®. “Be cautious. If it looks easy on TV, understand it’s not.”

The project that homeowners say they regret the most attempting themselves is installing floor tiles, particularly in the master bath, according to the survey. Getting ceramic tile level and grouted correctly can be very tricky and require many thorough steps, Theunissen says.

Fifty-five percent of DIYers say their projects took longer to complete than they expected, and more than half said their project was physically more difficult than they anticipated as well. Fifty-five percent of respondents also said their finished project didn’t look as good as they had hoped. About 8 percent of respondents said their homes were damaged because of their DIY attempts.

The top 10 most regretted DIY home improvement projects, according to ImproveNet, are:

1. Installing floor tiles
2. Replacing a ceiling
3. Refinishing hardwood floors
4. Installing carpets
5. Finishing the basement
6. Installing hardwood floors
7. Refinishing cabinetry
8. Installing sprinklers
9. Installing showers and baths
10. Painting home interiors

Would Buyers Benefit If Fed Pauses Rate Hikes? | Realtor Magazine

Following a series of interest rate hikes, the Federal Reserve may be ready to hit the pause button—which could be welcome news for mortgage borrowers. Notes from the Fed’s latest meeting show a consensus among board members not to raise the benchmark interest rate at the body’s January meeting or its next meeting in mid-March. However, Fed officials did say they expect economic growth to remain strong enough to still support a rate increase sometime in 2019. The Fed’s benchmark interest rate does not directly impact mortgage rates, but it usually influences the direction mortgage rates go.

 

© Andrei Barmashov – iStock/Getty Images Plus

 

At a December news conference, Fed Chairman Jerome H. Powell said the economy remained strong, and the Fed expected to continue to raise rates in 2019. But upset investors had driven down asset prices and prompted a market slump. The Fed has since lightened its tone and has emphasized that it’s taking note of investors’ concerns.

According to the Fed’s meeting notes: “Participants expressed that recent developments, including the volatility in financial markets and the increased concerns about global growth, made the appropriate extent and timing of future policy firming less clear than earlier.” The Fed’s tone still remained upbeat about low unemployment and consumer spending. Charles Evans, president of the Federal Reserve Bank of Chicago, predicts “another good year in 2019” for the economy.

However, a government shutdown and tensions between the U.S. and China are igniting some concerns. “If the pessimism evident in financial markets eventually shows through to economic outcomes, there would be less need (and perhaps no need) for further increases in interest rates,” says Eric Rosengren, president of the Federal Reserve Bank of Boston. “However, my current expectation is that the more optimistic view will prevail.”

3 Signs a Neighborhood May Be in Trouble | Realtor Magazine

How can buyers determine if a community is a good fit for them? Sure, they should walk the neighborhood and make visits at various times of the day. Realtor.com® recently interviewed housing experts to identify signs that a neighborhood could be on the brink of a decline. Here are some of those possible indicators:

 

© Stockbyte/Getty Images

 

Several houses are on the market.

Two or three homes for sale in close proximity is OK, but more than that could be an indication that something is wrong. “This points to illiquidity in the market and pricing pressure, which is a risk for buyers,” Alison Bernstein, founder of the Suburban Jungle, a real estate strategy firm, told realtor.com®. That said, a neighborhood could be seeing more For Sale signs because it’s rapidly gentrifying and longtime residents are finally looking to move on. But if there are several For Sale signs up on a block, home shoppers may want to do some digging to find out why.

School enrollment is falling.

In healthy communities, schools often see steady enrollment. “Shrinking class sizes are a red flag,” Bernstein told realtor.com®. If enrollment in local schools is trending lower, it might be wise to investigate. Is it because parents are fleeing to charter or private schools? Are residents staying put longer as their children grow up?

Nearby storefronts are empty or leaning industrial.

“Be mindful of any kind of commercial influence on the block, such as close gas stations or anything that could be undesirable health-wise,” says Ralph DiBugnara, vice president at Residential Home Funding. Also pay attention to the amount of vacant retail space. “Empty storefronts can tell you a lot,” Bernstein says. “They point to less disposable income of residents than clearly there once was.”

Mortgage Rates Fall to 9-Month Lows | Realtor Magazine

© REALTOR® Magazine

 

Mortgage rates posted more drops this week, lowering the borrowing costs of potential home shoppers and refinancers. Rates are now at a nine-month low, which helped boost mortgage applications more than 20 percent this week.

“Lower mortgage rates combined with continued income growth and lower energy prices are all positive indicators for consumers that should lead to a firming of home sales,” says Sam Khater, Freddie Mac’s chief economist.

Freddie Mac reports the following national averages with mortgage rates for the week ending Jan. 10:

• 30-year fixed-rate mortgages: averaged 4.45 percent, with an average 0.5 point, falling from last week’s 4.51 percent average. Last year at this time, 30-year rates averaged 3.99 percent.
• 15-year fixed-rate mortgages: averaged 3.89 percent, with an average 0.4 point, dropping from last week’s 3.99 percent average. A year ago, 15-year rates averaged 3.44 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 3.83 percent, with an average 0.3 point, dropping from last week’s 3.98 percent average. A year ago, 5-year ARMs averaged 3.46 percent.