Category: Real Estate

5 Home Design Trends to Watch in 2019 | Realtor Magazine

National homebuilder Taylor Morrison has its eye on pastels, unique finishes, and floral touches in the upcoming new year. The builder says it will be incorporating some of the freshly spotted hottest home design trends into its model homes that are set to debut in 2019.

Some of those home design trends that it expects to make a splash with home buyers in the new year are:

 

© Taylor Morrison

1. Pastels and jewel tones: Baby blues, mint greens, and blushing pinks will gain popularity in 2019, according to the homebuilder. “We’re calling these the ‘ice cream cone’ colors,” says Lee Crowder, design gallery and model home branding manager for Taylor Morrison and Darling Homes in Houston and Dallas. “But if pastels aren’t for you, bold jewel tones like emerald and sapphire are another popular option for the new year.”

2. Monochromatic schemes: The builder also picks high-contrast, monochromatic designs as a go-to trend for 2019, particularly in the kitchen. “Pairing dark finishes with stark white or gray cabinets will be a very popular look in the new year,” says Brittany Wightman, a Taylor Morrison design consultant in Charlotte, N.C.

3. Florals: “We’re seeing tons of floral patterns inspired by [fashion] runway looks,” Crowder says. “Florals are a top trend in the fashion world right now, so it makes sense that floral wallpaper is making a comeback.”

© Taylor Morrison

4. New finishes: Hardware finishes like black, rose gold, and brass are gaining popularity, according to the builder. “Black is a really important color for 2019, and you’ll be seeing it pop up everywhere—from countertops to hardware and faucets,” Crowder says.

5. Healthy homes: Healthy lifestyles that are also reflected throughout the home’s design is also trending, Crowder says. “While there are a lot of different ways to achieve this look, one must-have is an abundance of plants,” Crowder says. “Bringing touches from the outdoors inside is not only an aesthetic choice, but real plants also provide the benefit of filtering the harmful chemicals out of your home.” Crowder also suggests swapping out hardwood for dust-collecting carpet and switching out high-gloss paint for flat finishes (since there are fewer chemicals in them).

 

California Passes Solar Panel Requirement on New Homes | Realtor Magazine

Starting in 2020, all new homes constructed in California will be required to have between 2 kilowatts and 3 kilowatts of electricity sourced directly from solar panels. State legislators, whom have been considering such a measure for some time, officially voted recently to amend state building codes. Other states are watching how the change plays out and may want to follow suit, California officials have said. “These provisions really are historic and will be a beacon of light for the rest of the country,” says Kent Sasaki, chair of the California Building Standards Commission. “It’s the beginning of substantial improvement in how we produce energy and reduce consumption of fossil fuels.”

The new mandate, however, won’t be cheap to homeowners. The upfront costs of installing typical solar panels ranges from $8,000 to $12,000. The timing of the move also worries residents who lost their homes in recent wildfires in California because the mandate will add to their rebuilding costs. “With median home prices in California already more than double the national average, this decision will make it even more difficult for the average Californian to afford a home,” California Assemblyman James Gallagher wrote in a recent letter to the Building Standards Commission.

But the commission says the extra costs, which will be applied to a homeowner’s mortgage, should be minimal over the life of the loan. In the case of a 30-year fixed rate mortgage, the additional cost amounts to an extra $40 per month—but the savings in monthly utility charges could be around $80 per month. The commission also says homeowners can lease solar panels instead of buying them up front.

How Homeowners Are Funding Home Renovations | Realtor Magazine

Secured financing is the key to how many homeowners are paying for home upgrades, according to a new survey from home remodeling website Houzz and Bank of America. Owners who used secured financing were able to fund much larger home improvement projects, too, at nearly three times the median spending of those who paid for renovations with cash only ($32,000 versus $13,000), the study showed.

 

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More homeowners are turning to the equity they’ve accumulated in their homes. Those with mortgages have seen their home equity more than double since 2011. HELOCs—home equity line of credit—are the most common form of secured financing. HELOC originations totaled $157 billion in 2017, which is more than 60 percent of consumer real estate–secured financing, according to the study. Consumers surveyed said the top motivations for using a HELOC were ease of use (39 percent), low cost (38 percent), quick access to funds (30 percent), and tax deductions (29 percent).

“Recent record gains in home equity give homeowners greater confidence to invest in their home, spurring growth in the more than $300 billion home improvement market,” says Nino Sitchinava, Houzz’s principal economist. “Our study confirms that a meaningful share of homeowners are tapping into it to fund large-scale renovations, such as kitchen and bathroom remodels. Secured loan originations will likely continue to grow in the near term as homeowners increasingly find it advantageous to stay put and renovate rather than trade up to a nicer home in an environment of tight housing inventories and higher interest rates, among other factors.”

Generation Xers are the most likely to finance renovations with a secured loan compared with any other generation. They represent 40 percent of renovating homeowners. Gen Xers also spend the most on renovations, reaching a median of $38,000 in 2017. Millennials and baby boomers each spent a median of $30,000 in 2017 on their home renovations.

“Homeowners, and Gen Xers in particular, are comfortable using their home’s equity to make renovations that can have a significant impact on their lives, increasing their home’s value and improving their comfort,” says David Doyle, senior vice president at Bank of America. “Using responsible financing options … homeowners are updating aging housing stock and improving their home lifestyle while still balancing other financial obligations.”

The study also found that most borrowers intend to pay off their secured loans within five years. However, one-third of surveyed consumers said they preferred six years or longer for their payment plans.

 

Weekday Mornings Are Hot for House Hunting | Realtor Magazine

House hunters like to search for homes online during their workday, a new survey shows. The peak times for consumers to search for home listings are between 9 a.m. to 5 p.m. on the weekdays. The most popular time is Friday at 10 a.m., according to a new analysis from real estate brokerage Redfin.

 

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“Searching for a new home is like a job. Maybe that’s why people most often do it while they work,” Redfin notes in its analysis.

Nearly 64 percent more consumers are on Redfin’s website at 10 a.m. on Fridays than any other time, according to the study. Following closely behind, the next most popular window is 11 a.m. on Mondays.

On the flip side, researchers found that weekday evenings are unpopular times to search for homes. Weekends also failed to come close to the weekday mid-morning rush of browsers, researchers note.

“One possible explanation is the popularity of weekends for hitting the pavement and touring homes in person rather than through a computer or smartphone screen,” Redfin notes. “Another reason could be the rise in real estate technology tools,” such as notifications that are sent when new homes meeting the person’s preferences hit the market or there’s a price change. The temptation to take a peek at the new listings may be too great when a consumer receives a notification while they’re sitting at work in front of their computer or phone at work.

 

Mortgage Rates Sink to Three-Month Lows | Realtor Magazine

Home shoppers and refinancers saw some relief in mortgage borrowing costs this week. The 30-year fixed-rate mortgage moved to its lowest average since mid-September, Freddie Mac reports.

“Mortgage rates have either fallen or remained flat for five consecutive weeks and purchase applicants are responding with an uptick in demand given these lower rates,” says Sam Khater, Freddie Mac’s chief economist. “While the housing market softened in response to higher rates through most of this year, the combination of a low unemployment and recent downdraft in rates should support home sales heading into the early winter months.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Dec. 13:

·       30-year fixed-rate mortgages: averaged 4.63 percent, with an average 0.5 point, falling from last week’s 4.75 percent average. Last year at this time, 30-year rates averaged 3.93 percent.

·       15-year fixed-rate mortgages: averaged 4.07 percent, with an average 0.5 point, falling from last week’s 4.21 percent average. A year ago, 15-year rates averaged 3.36 percent.

·       5-year hybrid adjustable-rate mortgages: averaged 4.04 percent, with an average 0.3 point, falling from last week’s 4.07 percent average. A year ago, 5-year ARMs averaged 3.36 percent.

 

Why You Shouldn’t Put a Home Search on Hold in December | Realtor Magazine

December is typically the slowest month in the housing market, but it can be a great month for home buyers who have been sidelined to finally make their move. This month may be busier than previous December’s for that reason, too, economists say. Some buyers may be looking to take advantage of steadier mortgage rates—which are still averaging below 5 percent—and home prices that are easing somewhat.

“I see more people buying right now because they’re afraid rates will be higher in 2019,” Lynn Fairfield, a real estate professional with RE/MAX Suburban in Chicago, told CNBC.

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Mortgage rates are still nearly a percentage higher than they were a year ago, but they are still under 5 percent. Freddie Mac reported last week that the 30-year fixed-rate mortgage averaged 4.75 percent. Rates are largely predicted to move higher in 2019.

Housing affordability has become a mounting issue in the housing market, but home prices are showing signs of easing. Home prices usually are lower in the winter months, and housing reports are showing more properties are seeing price cuts. Nearly 29 percent of listings in major markets during the month ending Oct. 14 saw price reductions, according to the real estate brokerage Redfin.

But house hunters in search of a deal may also find lower inventories of homes for sale during this time of year.

“Though the holiday season is not going to give you plenty of options to choose from, there are reasons why you should not put your home search on hold for the holidays,” says Danielle Hale, realtor.com®’s chief economist. “Chief among them, December is the best time of year if you want to avoid competitions.”

According to realtor.com®, views per property are 21 percent lower in December than the rest of the year.

Motivation can be high for buyers to make a move before the end of the year. “Either they have a lease expiring Jan. 1 or they have saved enough money for their down payment, so they are motivated to buy,” Fairfield told CNBC. “A lot of people are motivated price-wise from the selling standpoint too, because they too want to get to their next location.”

 

Buyers Aren’t Giving Up, But Their House Hunts Are Lasting Longer | Realtor Magazine

Buyers are spending significant time trying to find the perfect home. Fifty-four percent of active buyers say they’ve been trying to find the right home for three months or longer, according to the National Association of Home Builders’ Housing Trends Report poll.

Buyers say the biggest delays that are stretching out their home search is they can’t find a home at an affordable price (49%), followed by not being able to find a home with the desired features they want (40%) or in their ideal neighborhood (38%).

 

© National Association of Home Builders

But most of the prospective buyers surveyed say they refuse to give up and will keep looking until they find the right home. The NAHB survey found that buyers who are unable to find a home over the next few months plan to do the following:

·       61% will continue looking until the “right” home opens up in a preferred location

·       37% will expand their search area

·       23% will accept a smaller/older home than originally intended

·       18% will give up trying to find a home until next year or later

·       16% will buy a more expensive home than they originally intended.

 

Where First-Time Buyers Need the Most Guidance | Realtor Magazine

Home buyers who are navigating a purchase for the first time face several points in the transaction process that are unfamiliar to them and can leave them with regrets if they don’t receive proper guidance, says real estate mogul Barbara Corcoran. “The faster you buy your first home, in my opinion, the better,” Corcoran told CNBC’s “Making It.” The process can be difficult, confusing, and expensive, she notes. Corcoran says these are some of the biggest mistakes she sees from first-time home buyers.

 

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Failing to factor in closing costs. “The biggest mistake that first-time home buyers make is they forget that they need closing costs—not just the down payment of, say, 10 or 20 percent,” Corcoran told CNBC. Closing costs can add up—typically an extra 2 percent to 5 percent of the total cost of the home. On a median-priced home, that could be more than $13,000.

Focusing on the house at the expense of the neighborhood. Too often, first-time buyers fall in love with a home and don’t pay enough attention to the block, Corcoran says. The surrounding area plays a large role in determining a property’s value. “It’s going to be 85 percent determined by the block in the town you’re living in,” Corcoran says. “So you’re much better off falling in love with a rickety old house on a good block than a lovely, pretty house on the wrong block.”

Not getting pre-approved for a mortgage. The most important thing to do before shopping for a home is to get qualified from a lender for a mortgage, Corcoran says. Pre-qualification is an estimate of how much you can borrow from your lender, but pre-approval is the extra step. Lenders analyze your creditworthiness to determine whether you qualify for financing and for exactly how much. Those who are pre-approved can essentially “walk in and say, ‘My bid is an all-cash bid,’” Corcoran says. “What ‘all-cash’ really means is your bid’s not contingent on you getting financing from a bank. You’ve already cleared that with the bank, so you’ve got all cash to close on the property.”

 

8 Easy Ways to Save Money and Reduce Energy | Realtor Magazine

A typical American household spends $2,060 a year on electricity, according to the U.S. Department of Energy. Unfortunately, if a home isn’t efficient, a lot of that energy goes to waste—possibly as much as three-quarters of it, according to Renewable Nation, a Washington, D.C.-based non-profit focusing on affordable and clean energy. If your clients are contemplating money and energy-saving updates to a house they’re planning to buy or sell, offer them these suggestions from Renewable Nation’s app for homeowners.

 

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1. Start by getting a home energy audit. Whether through the Building Performance Institute or the Residential Energy Services Network, certified professionals can conduct a home or building assessment that will help shed light on where energy is being lost and which systems are operating below par. The findings can be used to identify cost-effective improvements to make the property more comfortable and efficient.

2. Seal air leaks. Homebuyers are willing to pay a $7,095 more for a home that will reduce energy costs by $1,000 a year, according to the National Association of Home Builders. Sealing leaky windows, doors, and electrical outlets with caulk, expandable sealant, and weather stripping will help. Hiring a professional to insulate and seal ductwork in forced-air heating and cooling systems can also help lower energy bills by as much as $400 a year, Renewable Nation says.

3. Consider water usage and the water heater. Heating water is typically the second-largest energy use in a home, and can alone cost $600 or more a year, according to Renewable Nation. A homeowner can cut those costs in half by switching to a hybrid water heater that combines a standard water heater with a heat pump. If that’s not an ideal option, simply washing clothes in cold water can save $63 a year in energy costs.

4. Get a smart thermostat. Heating the overall space of a home or property is the largest energy expense, accounting for about 45 percent of residential energy bills, according to the U.S. Department of Energy. An owner can save 10 percent each year on heating bills by turning down the thermostat 7 to 10 degrees (Fahrenheit) for eight hours a day. A programmable thermostat can help accomplish that.

5. Avoid the “phantom” menace of energy drains. Electricity used by electronics when they are turned off or in standby mode are a major source of energy waste. Smart power strips can help eliminate the problem of phantom loads by shutting off the power to electronics when they are not in use.

6. Upgrade the fridge. If a refrigerator or freezer is more than 15 years old, it may be so inefficient that a new one would pay for itself in energy savings in just a few years. The American Council for an Energy-Efficient Economy says modern refrigerators and freezers consume 20 to 25 percent less energy than older models.

7. Flip the switch on smart lights. Replacing your home’s five most frequently used light fixtures or bulbs with Energy Star models could save $75 per year.

8. Look for the Energy Star label. If your clients are considering appliance upgrades, remind them that using products with the Energy Star label can help save up to 30 percent on related electricity bills.

Mortgage Rates Are Easing | Realtor Magazine

 

© REALTOR® Magazine

Home buyers may be finding a window of opportunity to lock in lower rates. Mortgage rates fell this week, after several weeks of moderating, Freddie Mac reports.

“Mortgage rates declined this week amid a steep sell-off in U.S. stocks,” says Sam Khater, Freddie Mac’s chief economist. “This week’s rate reaction to the volatile stock market is a welcome relief to prospective home buyers who have recently experienced rising rates and rising home prices.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Dec. 6:

·       30-year fixed-rate mortgages: averaged 4.75 percent, with an average 0.5 point, down from last week’s 4.81 percent average. Last year at his time, 30-year rates averaged 3.94 percent.

·       15-year fixed-rate mortgages: averaged 4.21 percent, with an average 0.4 point, falling from last week’s 4.25 percent average. A year ago, 15-year rates averaged 3.36 percent.

·       5-year hybrid adjustable-rate mortgages: averaged 4.07 percent, with an average 0.3 point, a decrease from last week’s 4.12 percent average. A year ago, 5-year ARMs averaged 3.36 percent.