When debating whether to rent or buy your next place, the argument in favor of renting usually includes the fact that it’ll be cheaper – especially since you don’t have to pay for closing costs or save for a down payment. However, renting a place isn’t all that cheap these days and, depending on what you’re looking for, prices may be rising even faster than expected. According to recently released data, rental rates are increasing and particularly among two and three-bedroom homes. In fact, rental homes, generally, are climbing in price faster than apartments. Nationally, a typical two-bedroom now costs $1,310 per month and the cost for a typical three-bedroom is up to $1,445. And, depending on your local market, it could be even higher. So why is rent rising faster for homes than it is for apartments? Well, for some of the same reasons home prices are climbing. For one, new, and smaller, apartments are the focus of most rental unit construction, while the supply of single-family homes to rent is mostly fixed. More here.
Generation Z May Become Homeowners Earlier
Generation Z – which is defined as people born between the mid-1990s and early 2000s – is quickly approaching adulthood and will soon face the decision of where to live and whether to rent or buy. But, according to a recent analysis, they may be facing challenges past generations didn’t. For example, the results of one study show that they will spend less time renting but will pay more than young people have in the past. With current median rent at $1,418 per month and rising, generation Z is expected to spend $226,000 on rent in their lifetime. That’s a lot. And it’s more than baby boomers or millennials spent. But despite that, generation Z is expected to become homeowners earlier than millennials have. One reason is the cyclical nature of the economy. Another is the fact that more than half say they considered buying before renting their current place. Also, they are just as likely as older generations to say they consider owning a home to be part of achieving the American Dream. In other words, if long-term economic trends hold up, the next generation of home buyers will have a better economy and job market to help fuel their dreams of homeownership. More here.
Where Are The Fastest Growing Luxury Markets?
When shopping for a house to buy, it’s hard not to fantasize about the homes just out of your price range. Regardless of what you plan to spend, it’s fun to imagine buying a house even bigger, nicer, and more feature filled than the ones within your reach. And, with the Internet, it’s easier than ever to steal a glance inside the nicest homes in the area. In fact, you can shop real estate in any area. But, while we’re all familiar with famous luxury markets such as Beverly Hills or Aspen, Colo., what are the nation’s lesser-known, up-and-coming luxury markets? Well, according to a new index from the National Association of Realtors’ consumer website, East Coast house hunters looking for a warm weather getaway have propelled Sarasota and Collier counties in Florida to two of the top five spots on the list of fastest growing luxury markets. Other areas that made the list include counties containing Castle Rock, Colo., San Jose, Calif., Queens N.Y., Seattle, Jersey City, and Redwood City, Calif. But, if you’re planning a move to one of these hot spots, you have to move fast as they all have seen 10 to 20 percent price increases over the past year. More here.
Household Cleaning Hacks For The Soon-To-Be Mover
Americans Say Now Is The Time To Buy
Every month, Fannie Mae surveys Americans to better understand how they view the housing market, their personal finances, and the overall economy. Their Home Purchase Sentiment Index is a measure of how people around the country feel about buying or selling a home. And, according to the most recent results, they currently feel like it’s time to buy. In fact, there was a 10 percent increase in the number of respondents who said they felt like it was the right time compared to February’s survey. Doug Duncan, Fannie Mae’s senior vice president and chief economist, says sentiment has been volatile lately. “The HPSI’s recent run of volatility continued in March, as it recovered last month’s loss and remained within the five-point range of the past twelve months,” Duncan said. “The primary driver of this month’s increase was the sizable rise in the net share of consumers who think it’s a good time to buy a home, which returned the indicator to its year-ago level.” Boosted optimism about buying a house may be due to the spring buying season or perhaps a feeling among potential buyers that affordability conditions may worsen if they wait. More here.
Rising Incomes Help To Offset Affordability Challenges
After the financial crisis and housing crash, there were plenty of homes for sale but very few interested buyers. Americans were financially unstable and worried about keeping their jobs. And while they may’ve liked to buy a home, it wasn’t the right time. Gradually, though, Americans became more secure in their jobs and more interested in buying a home. But, at the same time, the housing market also began bouncing back. And with prices higher and mortgage rates beginning to rise, Americans wanted to buy but began to worry about whether or not they could afford it. This year, with inventory low, prices rising, and mortgage rates creeping up, buyers face some challenges. Fortunately, though, new research shows incomes are also on the rise. The National Association of Home Builders’ Housing Opportunity Index, for example, shows Americans are making more money, which is helping to offset declining affordability. In fact, median family income is up from $68,000 last year to $71,900. And, at that income, 61.6 percent of recently sold homes were affordable. More here.
Take A Seat
Compromise Isn’t Just For Home Buyers
With buyer demand high and the number of houses for sale low, today’s market is favorable for homeowners who want to sell. But though they’re likely to find interested buyers, homeowners shouldn’t expect that everything will always go their way. In fact, a home’s sale almost always involves a negotiation and home sellers, just like buyers, should expect to have to compromise here and there. For example, 76 percent of sellers said they had to make at least one concession when selling their home, according to one recent survey. That means, even in markets that favor sellers, homeowners should have some flexibility when it comes to working out the details of the final sale. Home sellers should also be prepared to make some pre-sale improvements to their house, as the vast majority of recent home sellers also said they had to fix up their home before listing it. In short, regardless of how hot your local market is, you still have to get your house in shape and work with your home’s buyer to ensure the sale is a success on both ends. More here.
Small House Vs. Big House
Prices Below Peak In Nearly Half Of All Markets
If you’ve been at all interested in shopping for a home, you’ve likely heard news about rising home prices. Since the housing crash, home values have rebounded and, in some areas, the climb has been quick. However, news about increasing prices should be measured against how far they fell. In other words, though prices have rebounded, they are still below their previous peaks in many markets. In fact, according to recent numbers from ATTOM Data Solutions, median home prices are still below their pre-recession peaks in 46 percent of the 105 metro areas analyzed – including cities like Chicago, Baltimore, Tucson, Las Vegas, and New York-Newark-Jersey City. That’s why it’s always a good idea to look into where prices are in the specific neighborhoods where you’d most be interested in buying. Price increases will vary from one city to the next. So there may still be opportunities for buyers in the areas you’d like to live, despite home prices’ overall upward trend. More here.
