First-time home buyers are an important demographic when tracking the health of the housing market. That’s because, they typically make up nearly half of all home sales. In recent years, however, young Americans have been buying fewer homes than in the past. In fact, Freddie Mac’s most recent monthly outlook says 15 percent of young adults between the ages of 25 and 35 are living in their parents’ home – a five percent increase from 2000. However, it isn’t because they’re not interested in homeownership. Largely, the economy and a lack of affordable starter homes have been to blame for a lower-than-normal number of first-time home buyers. But with an improved economy and job market, will more young adults become buyers this year? Len Kiefer, Freddie Mac’s deputy chief economist, says there’s reason for optimism. “Starting off the year, things are looking pretty good for the U.S. economy and housing markets,” Kiefer says. “Mortgage rates are low, economic growth has accelerated in recent quarters, and housing is coming off its best year in a decade.” More here.
The One Thing Home Buyers Won’t Compromise On
Buying a home means making a lot of choices. You’re going to have to make decisions on everything from how far you’re willing to drive to work and how much storage space you’ll need for all your stuff. The best way to handle the long list of choices you’re going to have to sort through is by breaking into things you can live without and things you have to have. Deciding in advance where you will and won’t compromise will make the buying process easier once you’re fully submerged. So what are the things home buyers are least willing to give up on? Well, according to one recent survey, most buyers say they want a house that doesn’t require a lot of renovations or upgrades. In fact, nearly one third of respondents said this was non-negotiable. And that makes sense. After all, who wants to go through the ups-and-downs of the home buying process only to move into a house that requires months worth of work before you can enjoy it? Other things buyers said they wouldn’t compromise on included a bigger home, outdoor space, a great neighborhood, and a shorter commute. More here.
The Gig Economy And Homeownership
Smartphones and the internet have given rise to a number of on-demand services that offer Americans the ability to supplement their income by providing work as independent contractors. Whether delivering groceries or ride sharing, many Americans are now working in what is known as the “gig economy.” In fact, as part of their third quarter National Housing Survey, Fannie Mae found nearly one-fifth of adults have worked in the gig economy. Generally speaking, these Americans have other full-time work, though younger respondents were more likely to rely on these types of jobs for income. Overall, however, participants in this type of work were more positive about their household income and financial outlook. But how does this type of job impact prospects for buying and owning a home? Well, that remains to be seen. Though gig-economy workers are generally more confident in their income, they also express concern about being able to qualify for a mortgage and save for a down payment. Particularly, among current renters, gig-economy workers were less likely to say they’d buy a home the next time they move. Also, there is some question about how underwriting standards handle what is becoming an increasingly popular way for Americans to make some money on the side. More here.
Are Home Price Increases Beginning To Slow?
Home prices have been increasing for some time now. Largely this is because, in many markets, there are more interested buyers than there are homes available for sale. Inventory shortages can cause more competition for the homes that are for sale, which leads to spiking prices and decreasing affordability conditions. This, of course, has been a concern for potential home buyers. But, according to new research, there may be reason to believe that the rate at which home prices have been increasing is beginning to slow. For example, the most recent Home Price Index from Black Knight Financial shows the rate of monthly price appreciation declined one third from the month before in September. That was the sixth consecutive month of slowing growth. Also, half of the nation’s 20 largest states and 17 of the biggest metro areas saw home prices fall last month. If this trend continues, it could be encouraging news for home buyers hoping to buy a house this winter or those looking toward a spring home purchase. More here.
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These Savannah Spots Have the Most Festive Decor
There’s something magical about Savannah during the holiday season! Dazzling lights, festive décor and Christmas cheer fill the city from top to bottom. If you can’t get enough of Christmas-themed décor, events and spirit, you’ve got to check out these jolly Savannah spots.
City Market
Savannah’s spirit becomes even more exquisite during the holiday season, and City Market is no exception. Stroll beneath holiday lights, taste sweet treats in City Market shops and find the perfect gifts for your loved ones, all while being serenaded by Christmas carolers.
There are also plenty of events to look forward to during City Market’s holiday season. Children will have the chance to make ornaments, decorate cookies and get Grinched (a tradition of Grinch-inspired hair and makeup!). Kids of all ages can also meet Father Christmas and take a Cinderella carriage tour. All this plus face painting, choir music and more add up to a day of fun the whole family can truly enjoy. Look at City Market’s calendar to learn more.
The Forsyth Park Fountain is certainly beautiful year-round, but it’s even more dazzling at Christmastime. Festive wreaths, bright bows and garland frame the already picturesque fountain. During the holiday season, the Forsyth Park fountain often becomes the location for family Christmas cards and engagement photos. It’s a Christmas lover’s dream come true!
Broughton Street
At Christmastime, the shops, boutiques and restaurants along Broughton Street decorate inside and out. Bright, sparkling lights are streamed from building to building all along Broughton Street creating a picture-perfect backdrop for holiday shoppers.
The festive season, called “Holidays on Broughton,” also offers seasonal events for all ages and interests. From the return of a beloved children’s toy store in a pop-up experience to photos with Santa and musical performances, eventgoers can count on an experience that will prove magical year after year.
Throughout the whimsical holiday event, many of the unique and eclectic shops along Broughton Street will offer extended hours of operation and holiday shopping incentives. It’s surely the most wonderful time of the year on Broughton Street!
By:Larissa Allen
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Mortgage Misconceptions May Keep Buyers Away
Potential home buyers often describe the home buying process as being complicated. And, most likely, a lot of their confusion stems from the financing side of the transaction. A lack of knowledge about what is required and how to proceed can cause otherwise qualified borrowers to become intimidated and even delay their dreams of homeownership. For example, prospective buyers often have misconceptions about down payment requirements, believing they are required to put down much more than is actually necessary. And, though calculating the size of your down payment depends on a number of factors, believing that you can’t buy a house with less than a 20 percent down payment can be enough to convince a potential home buyer that they aren’t yet ready to buy. That’s why it’s important to contact your lender to explore your options before you talk yourself out of buying. Though there is plenty of information available online – and recent research shows the internet is the primary source of information about mortgages – you can’t get an accurate appraisal of your options and price range without the help of a qualified professional. Don’t allow misconceptions to hold you back from buying the home of your dreams. More here.
Contract Signings Improve In October
Among the many indicators used to track the health of the housing market, the National Association of Realtors’ Pending Home Sales Index is unique. That’s because, rather than count the number of homes that sold in any given month, it counts the number of signed contracts to buy homes. So what’s the difference? Well, contracts are typically signed about a month before the actual closing date. Which means, pending sales offer a glimpse of where future sales might be. And, according to the most recent report, sales might soon see a lift. That’s because the number of contracts signed in October was up 3.5 percent and marked the first increase in three months. Lawrence Yun, NAR’s chief economist, said the improvement was encouraging but challenges still remain. “Home shoppers had better luck finding a home to buy in October, but slim pickings and consistently fast price gains continue to frustrate and prevent too many would-be buyers from reaching the market.” In short, buyer demand still outweighs the number of homes available to buy but recent news offers some reason to believe improvements are on the horizon. More here.
