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How Will Homes Change As Americans Grow Older?

Ipsos, an independent market research company, recently gathered a panel of experts to weigh in on the future of housing. From climate concerns to home automation, the panel looked at what changes may be necessary in order for our homes to meet our needs in the future. One of the topics focused on the fact that Americans are growing older. In fact, by 2060, nearly 100 million Americans will be over the age of 65 and – if current numbers are any indication – the vast majority of them will prefer to stay in their own homes and communities as they age. According to Rodney Harrell, director of livable communities for AARP’s Public Policy Institute, the current housing stock may not be suited to the needs of an aging population. “The problem is you can’t create a new housing stock overnight, so we have to start working now,” Harrell said. “Nobody should be forced from their home because it doesn’t work for them.” How our homes adapt to our needs will depend, in part, on advancements in smart-home technology but also on how soon builders and home remodelers begin installing features that make it easier for the elderly to preserve their independence. More here.

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Which U.S. Metros Have Changed Most Over 10 Years?

Choosing a place to live involves many different factors. From the type of kitchen you want to the school district and the commute to work, there are a lot things to take into consideration. But there are also things that you can’t possibly know, like what your prospective neighborhood will look like in 10 years. A lot can change in a decade. For that reason, LendingTree recently analyzed a number of metropolitan areas in an effort to narrow down which are changing fastest in terms of home prices, crime rates, building permits, commute times, income, rent, etc. On a scale from 1 to 100, cities were ranked in terms of how much change they underwent in particular categories between 2006 and 2016. According to the results, the most rapidly changing U.S. cities are in Texas, with Austin, Dallas, and Houston filling the top three positions on the list. Home prices were the big mover in all three cases, with each city ranking in the top five among 50 cities. The least changed cities overall included Birmingham, Ala., Milwaukee, and New Orleans. Also among the results, the top five cities for percent of residents who moved into their homes since 2010 were Las Vegas, Phoenix, Austin, Orlando, and Denver. More here.

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September Home Sales Improve Slightly

After consecutive months of decline, sales of existing homes – including single-family homes, townhomes, condominiums, and co-ops – rose 0.7 percent in September, according to the National Association of Realtors. The improvement may have been even greater if not for lack of inventory in some markets and the effects of recent hurricanes in Texas and Florida. Lawrence Yun, NAR’s chief economist, says the fact that there are too few homes for sale has been holding the housing market back, as there has been no shortage of interested home buyers this year. “Realtors this fall continue to say the primary impediments stifling sales growth are the same as they have been all year: not enough listings – especially at the lower end of the market – and fast-rising prices that are straining the budgets of prospective buyers.” But while inventory has been an issue this year, recent data shows listings have been on the rise lately. In fact, they were up another 1.6 percent in September. And, following the busy summer sales season, competition for available homes usually begins to cool, meaning there may be good opportunities for potential home buyers who want to take advantage of improved conditions this fall. More here.

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Vast Majority Of Renters Say They Want To Buy

Recent data from Fannie Mae shows a large majority of current renters intend to one day buy a house. In fact, just 18 percent of surveyed renters said they plan to remain renters forever. So what are some of the obstacles renters face when thinking about whether or not they should begin taking steps toward homeownership? Well, the upfront costs of buying a home were the top answer, with 45 percent of respondents citing coming up with money for a down payment and closing costs as the obstacle that keeps them from buying. However, an almost equal amount said they were most concerned about their credit. Other answers included insufficient income, too much debt, confusion about the buying process, and job security. In short, current renters want to buy but are worried they aren’t financially secure enough to become homeowners. And, though that is a legitimate concern, Fannie Mae also points out that their pervious research has shown many potential home buyers overestimate the size of the down payment they’ll need and are unaware of many of the programs available to help first-time home buyers reach their goal of becoming homeowners. More here.

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Homeowners Often Overestimate Their Home’s Value

American homeowners may be overestimating their home’s worth, according to new data. The research shows appraisals in August were 1.35 percent lower than homeowners expected. There are a couple of reasons this could be happening. First, there has been a lot of attention paid recently to how far prices have risen over the past few years. But, while this is true, it is not necessarily true in every neighborhood, in every city, across the country. So, homeowners who have been hearing that prices are going up, may have a misperception of just how much their home’s value has risen. As evidence of this, data shows homeowners in the West thought their homes would appraise for less than what they eventually did, while homeowners in the Midwest were disappointed to find their appraisals didn’t meet their expectations. Another possible reason for the misperception is that homeowners are generally attached to their homes. And, if you’ve invested time, money, and maintenance into a property, when it comes time to sell or refinance, you’re naturally going to – not only hope for the best possible outcome – but expect that everyone else who looks at your house will see it the way you do and value you it just as much. Unfortunately, though, that may not always be the case. More here.

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U.S. Homeowners See Big Returns From Selling

The real estate market is hard to time. That’s why you should buy a house because you want to become a homeowner and stay somewhere for awhile, not because you hope to make money off the eventual sale of your house. However, new data shows that recent home sellers who’ve lived in their homes for around 7 years have been seeing big returns. In fact, nationally home sellers sold their homes for 24 percent more than what they originally paid. And, in some markets, that percentage is far higher. For example, Oakland’s typical seller sold for 78 percent more than what they paid and, in Portland, sellers saw a 65 percent gain after living somewhere for 9 years. Most of the largest returns were seen in markets in the West, though Philadelphia, New Orleans, and Boston also made the list. It should be noted, however, that though these numbers may make it seem easy to cash in on your house, prospective home buyers should know that the housing market tends to move up-and-down over the years. Homeowners who are selling a home they bought 7 years ago were buying at a time when home prices had recently plummeted, which makes their gains more understandable and less likely to repeat. More here.