Category: Real Estate

Homeowners Have Record Amounts of Unused Equity | Realtor Magazine

Home prices are rising and making homeowners richer. But the number of home equity lines of credit are barely budging.

The overall equity that was tapped in the first quarter of this year was 1.17 percent, the lowest amount in four years, according to Black Knight, a mortgage software and analytics firm.

Many homeowners may not realize how rich in equity they really are. “I think the typical American doesn’t have that level of awareness; they’re not probably studying the numbers,” Ben Graboske, executive vice president of Black Knight’s Data & Analytics division, told CNBC.

The amount of tappable equity rose by 7 percent in the first quarter of this year compared to the previous quarter, according to a new report from Black Knight. That marks the largest single quarter increase since Black Knight began tracking such data in 2005. Collective equity is up 16.5 percent compared to a year ago. Black Knight computes the collective amount of tappable equity by taking the appraised value of a home minus the 20 percent most lenders require borrowers to keep as a safety net.

Homeowners have a collective $5.8 trillion in tappable equity, which is 16 percent higher than the last home price peak in 2006, according to Black Knight. The average homeowner with a mortgage has seen an increase of $14,700 in tappable equity over the past year and has $113,900 available to draw, according to the report.

HELOCs have variable interest rates, and that may be one thing spooking homeowners from drawing from their equity. For owners who do take equity out, they’re more likely to use cash-out refinances and not HELOCs. Those tend to carry higher interest rates but they don’t have a variable rate of HELOCs.

“Who wants uncertainty when it comes to monthly finances,” Graboske said to CNBC. “I think a lot of Americans look at, what are my payments? What is my income coming in and what are my payments going out? They want certainty that they can cover their costs and not worry about it.”

4 Common Regrets of Buyers With Kids | Realtor Magazine

Home buyers with children are scouring properties looking for high-level items on their checklists, such as good schools and a room for a nursery. But some parents may later regret overlooking other factors in choosing the right home for their family. Realtor.com® recently featured an article for parent clients looking to buy and those overlooked factors they’d likely want to consider, including:

Bedroom placement

Parents may size up rooms but could fail to carefully consider the layout of the home and how it will work for them. Realtor.com®’s Cathie Ericson notes her regret from purchasing a home where the master suite was on the main floor and the nursery was upstairs. “While parents know to find a house with ample bedrooms for their kids, what they sometimes fail to factor in is where those bedrooms are,” writes Ericson. “Many parents prefer a layout where their kids’ bedrooms are fairly close to their own, since it keeps their kids within earshot at night. However, bedrooms on separate floors can work for parents who prefer a bit more privacy.”

The neighbors

It’s important to check out the neighbors who will be living next door and make sure the surrounding area is appropriate for a family. Ericson suggests checking The National Sex Offender Public Website to determine if any sex offenders are in the neighborhood.

View of the backyard

Parents may want to assess how well the line of sight is from the backyard to the inside of the home. Can they cook or clean while looking out at their children playing outside? While parents work from the study, can they see where their kids are playing? If parents don’t want to go outside with their kids each time, this may be important to emphasize, too.

Outside safety

Some parents will avoid homes on busy streets, but another outdoor factor that parents may overlook when home shopping is sidewalks, says Billy Rose of The Agency in Beverly Hills, Calif. “Sidewalks invite you to go for a family walk,” says Ali Wenzke, author of the book The Art of Happy Moving. “That’s the perfect place to set up a lemonade stand, and they make an ideal canvas to show off your mad art skills with sidewalk chalk.”

Study: Homes With Farmhouse Design Fetch Premium | Realtor Magazine

Homes decorated in the farmhouse style—think industrial-sized sinks, cabinetry fronted in chicken wire, and sliding barn doors—are quickly gaining favor with potential buyers and selling for significantly more than properties in other styles. Listings with descriptors such as “barn doors,” “exposed beams,” and “free-standing tubs” tend to fetch prices up to 30 percent higher than other homes, according to research from RealEstate.com. A listing that boasts a “farmhouse sink” in the entry-level and luxury price points could see a 26 percent and 16 percent premium, respectively.

Chip and Joanna Gaines, former hosts of the HGTV show “Fixer Upper,” are widely credited for making farmhouse decor mainstream. The Wall Street Journal dubs the trend “farmhouse fever.” “‘Urban farmhouse’ is a safe choice that appeals to a wide audience,” Lisa Gabrielson, an interior designer in Johns Creek, Ga., told the Journal. She says 90 percent of her new projects have a farmhouse style.

Homebuilders also are jumping on the trend. Construction company Pulte Group says many of its model homes now reflect a farmhouse look, including one of its Las Vegas-area developments, which offers properties with board-and-batten siding, wood beams, and barn lighting. Imagine Homes, another builder, features shiplap, stone walls, and a desk that looks like a butcher block in its model homes in San Antonio. Toll Brothers has introduced modern farmhouse exteriors in several of its communities in Virginia, as well as an “urban farmhouse”-styled home in a new development just outside Washington, D.C.

However, some designers are concerned that the farmhouse style’s popularity may fade quickly. “I do worry about market saturation. … It’s starting to be commonplace,” Gabrielson says. She predicts that the next big decor trend will be “California cool,” which tends to feature bleached floors and warm, light brown accents.

June’s Hottest Housing Markets Offer Some Surprises | Realtor Magazine

Californian cities no longer dominate realtor.com®’s top-performing housing markets list as they have for the past six years. Instead, higher home prices may be prompting more home buyers to look elsewhere.

Overall, home prices nationwide continued to escalate in June, with the median listing price nationwide at $299,000, a 9 percent year-over-year increase, according to realtor.com®. The higher home prices are prompting more buyers to face affordability issues, says Javier Vivas, director of economic research at realtor.com®.

“We’re seeing interest and money shift away from the overheated markets into less expensive secondary markets,” he says.

The top metro in realtor.com®’s hottest housing market list for June was Midland, Texas. Realtor.com® researchers rank cities each month based on which metros are garnering the most visitors online at listings and where homes are selling the fastest.

© National Association of REALTORS®

 

The hottest housing markets in June, according to realtor.com®, were:

1. Midland, Texas
2. Columbus, Ohio
3. Boston
4. Fort Wayne, Ind.
5. Boise City, Idaho
6. San Francisco
7. Vallejo, Calif.
8. Buffalo, N.Y.
9. Colorado Springs, Colo.
10. Detroit
11. Racine, Wis.
12. Grand Rapids, Mich.
13. Sacramento, Calif.
14. Rochester, N.Y.
15. Kennewick, Wash.
16. Stockton, Calif.
17. Dallas
18. Worcester, Mass.
19. Spokane, Wash.
20. Santa Cruz, Calif.

Mortgage Rates Fall to 3-Month Low | Realtor Magazine

 

 

Mortgage rates were back down across the board again this week, offering some temporary relief to home buyers. Rates posted a rapid increase throughout most of the spring but have recently reversed course, declining in five of the past six weeks. The 30-year fixed-rate mortgage is now at its lowest average since April.

“The run-up in mortgage rates earlier this year represented not just a rise in risk-free borrowing costs, but for investors, the mortgage spread also rose back to more normal levels by about 20 basis points,” says Sam Khater, Freddie Mac’s chief economist. “What that means for buyers is good news. Mortgage rates may have a little more room to decline over the very short term.”

Freddie Mac reports the following national averages with mortgage rates for the week ending July 5:

• 30-year fixed-rate mortgages: averaged 4.52 percent, with an average 0.5 point, dropping from last week’s 4.55 percent average. Last year at this time, 30-year rates averaged 3.96 percent.
• 15-year fixed-rate mortgages: averaged 3.99 percent, with an average 0.4 point, falling from last week’s 4.04 percent average. A year ago, 15-year rates averaged 3.22 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 3.74 percent, with an average 0.3 point, falling from last week’s 3.87 percent average. A year ago, 5-year ARMs averaged 3.21 percent.

When and How Much Should You Water Your Lawn? | Realtor Magazine

For green, vibrant grass, it is essential for homeowners to learn about aerating, seeding, and watering their lawns to keep the curb appeal intact, according to realtor.com®’s Lawn Lover’s Guide.

“When you don’t give your lawn enough water, it grows with shallow roots,” says Don Botts, the president of Quality All-Care Services in Bonner Springs, Kan. “This can stunt the growth of your grass and make it harder for your lawn to survive severe temperatures or disease.”

So when is the ideal time to water a lawn? Many may assume it’s at night, but experts say that’s wrong. Instead, the best time to water a lawn is in the morning, between 4 a.m. and 10 a.m., Botts says.

“There are a lot of people who are surprised to find out that watering your lawn at the wrong time of day can have such an impact,” Botts told realtor.com®. “Watering at night often means that water will sit on your grass overnight, which can lead to disease.”

Also, lawn experts say it’s important not to water during the hottest part of the day. The heat will cause the water to evaporate quickly before the water has a chance to penetrate the roots of the grass.

It’s important to make sure grass gets enough water, but not too much either. For homeowners who have underground sprinklers, Chris Bartells, owner of Green Mountain Turf Sprinkler Repair in Lakewood, Colo., recommends placing empty cans near sprinkler heads and checking to see how much water the sprinklers emit in a span of 15 to 20 minutes.

“Then measure how many inches of water is in each can, using a ruler,” Bartells suggests. “Average that by the amount of time you ran your system, and you should end up with a pretty good estimate of how long your lawn needs to be watered to get the full inch or two of water that it needs [per week].”

Millennials Take Extreme Measures to Afford a Home | Realtor Magazine

Young adults express such a strong desire to own a home that they are willing to take on extra work or make another major sacrifice in order to afford one. Thirty-six percent of millennial home buyers say they’ve taken a second job to save for a down payment, according to a new Redfin survey of about 500 respondents between the ages of 24 and 38 who plan to buy their first home in the coming year.

The top concern among these first-time home buyers is having enough money for a down payment; 50 percent cited it as their number one barrier to homeownership, followed by affording a home in their preferred location (45 percent) and rising home prices (41 percent). Millennials are finding other ways to save for a down payment aside from working multiple jobs. Thirteen percent say they have taken early distributions from their retirement funds, 24 percent say they received a cash gift from family members, and 12 percent say they’ve added inheritance money to their savings.

Ten percent of millennials say they’ve even sold cryptocurrency to make more money to apply toward a home purchase, according to the survey. Millennial households earning more than $100,000 were three times more likely to have sold cryptocurrency than those earning less. “For millennials who have launched their careers while working to pay off student loans in the last decade, having enough to set aside toward a down payment would have been a significant accomplishment,” says Redfin Senior Economist Sheharyar Bokhari. “These results reveal some of the inequalities that have been exacerbated in the years following the recession, with the well-off having more flexibility and, thereby, ability to become homeowners and build more wealth through advantages like financial support from family and the opportunity to invest in the stock market.”

The survey revealed that millennials plan to take some of the following actions to build financial stability in order to buy their first home.

• 32 percent plan to pursue additional employment.
• 19 percent intend to rent out a room to someone they know.
• 15 percent say they will drive for a ride-sharing service.
• 14 percent plan to split ownership of a home with friends or roommates.

4 Renovation Myths Reality TV Shows Propagate | Realtor Magazine

Home improvement reality television shows have long misguided consumers about the renovation process. You likely have some clients who are obsessed with channels such as HGTV, and they may have developed some common misunderstandings about the real time and effort it takes to undergo remodeling a home. Fox News recently highlighted several myths these shows tend to generate.

The answer to creating more space is always to knock down walls. Designers on television often make major changes to floor plans to increase the dramatic effect. But the truth is large undertakings such as removing walls aren’t always necessary—or wise. “When someone buys a 1990s-era home—which [usually were] built quickly and on the cheap—we can’t rip out walls,” Teris Pantazes, a Baltimore contractor, told Fox News. “It’s important for a home to have good bones. I have been in this business for a long time, but I’m not an engineer. I still have customers question me, and I see them waste tons of money to verify what I already told them.”

A well-done remodeling project can be completed in a day. Viewers may forget that fitting an entire narrative into a 30- or 60-minute show requires editing out some—or most—of the actual renovation process. Your clients may falsely believe real-life work can be done as quickly as it appears on TV. “The number one problem with real estate television shows is that they significantly shorten the amount of time that almost anything takes for the purpose of advancing the narrative,” says Kevin Deselms, a sales associate with RE/MAX Alliance in Golden, Colo. That can mislead viewers to expect instant results.

The permit process is a simple, insignificant part of the equation. Remodeling, especially when it involves additions to the home, often requires securing building permits from the local government—which can significantly slow the timeline of a project. “HGTV shows sometimes discuss the need for permits, but they don’t often show how this process can slow the entire project,” says Jeffrey A. Hensel of North Coast Financial Inc. Waiting for permit approval can increase time and budget by 50 percent, he says.

For higher ROI, go bigger with renovations. “HGTV shows like to feature flips with full kitchen and bath remodels because the before-and-after shots make for more compelling viewing,” Bobby Montagne, CEO of Walnut Street Finance, told Fox News. “In fact, aspiring fix-and-flippers are often better off doing small-scale renovations that just need carpet, paint, and some freshening up—especially for their first projects.”

Patio Stones | Paving Stones for Patios | HouseLogic

Brick. Flagstone. Concrete. Even rubber!

You’ve got choices when it comes to pavers. And that means anything but boring. Mix and match a couple or more to create your own backyard masterpiece.

Here’s some info on each type, plus some tips on installing them. Happy paving!

Brick

Brick’s got character. No denying it. You can explore your creative chops by setting them in intricate patterns. Thinner than typical “builder bricks” used on home siding, they’re made to hold up under heavy foot traffic.

Brick pavers come in a variety of shapes, sizes, colors, and finishes, and can look old or new. Because they’re smaller than other pavers, they take a while to put in place, and installation costs can be higher.

You can do the job yourself for $3 to $5 per square foot. You’ll need to rent a brick saw — a heavy table-mounted saw that makes cutting masonry a snap. Cost: $60 to $95 per day. Don’t forget: You’ll need to figure out a way to get the brick saw to your house.

For a pro-installed brick patio, you’ll pay $12 to $18 per square foot, professionally installed.

Redfin Survey: Homebuyers Face Rising Mortgage Rates Head On – @Redfin

As expected, mortgage rates have crept up from below 4 percent in late 2017 to greater than 4.5 percent in June for an average 30-year fixed-rate mortgage. But few homebuyers are halting their searches.

In May, Redfin commissioned a survey of more than 4,000 people who had bought or sold a home in the last year, attempted to do so, or planned to do so soon.

Among the more than 1,300 respondents who planned to buy a home in the coming year, just 5 percent said they’d call off their search if rates rose above 5 percent. Twenty-four percent of buyers said such an increase would have no impact on their search. These results are consistent with those from similar surveys Redfin commissioned in May and November of 2017.

“Homebuyers are well aware that higher mortgage rates means higher monthly payments, but mortgage rates remain very low, historically, and buyers will make compromises,” said Taylor Marr, senior economist at Redfin. “Most of the pressure buyers are feeling is from competition for a very limited number of homes for sale. The fact that such a small share of buyers will scrap their plans to buy a home if rates surpass 5 percent reflects their determination to be a part of the housing market.”

More willing to adjust criteria, slightly less urgency:

Here’s how buyers said they would react if mortgage rates were to rise above 5 percent:

• 32% would slow down their search and wait to see if they came back down again, up from 27% in November and 29% in May 2017.
• 21% said a 5% mortgage rate would cause them to look in other areas or buy a smaller home, unchanged from November and up from 18% a year ago.
• 19% would increase their urgency to buy before rates went up further, down from 21% in November and from 23% a year ago.

Methodology

Redfin contracted SurveyGizmo to field a study between May 1 and 18, 2018 of 4,264 people from the general population who indicated they had bought or sold a home in the past year, tried to buy or sell a home in the past year or plan to do so this year. This report focused on responses from the 1,315 people who indicated they plan on trying to buy a home in the next 12 months. The survey targeted 14 major metro areas (Austin, Baltimore, Boston, Chicago, Dallas-Fort Worth, Denver, Los Angeles, Phoenix, Portland, Sacramento, San Diego, San Francisco, Seattle and Washington, D.C.).