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Are Fewer Young Americans Buying Homes?

A newly released study from researchers at the University of Southern California looks at homeownership rates among young adults between the ages of 25 and 44. The study’s results show, among that age group, there’s been a 10 percent drop in the homeownership rate over the past 10 years.

But does that necessarily mean young Americans are no longer interested in owning their own home? Well, no. The researchers point to a number of factors that have contributed to the decline in homeownership among people of typical prime home-buying age. Among them, the foreclosure crisis looms large. Because the past 10 years includes the years following the housing crash and economic crisis, some of that decline is better explained by the day's economic conditions rather than a lack of desire to buy a house. And, in the years since, the recovery's slow pace and weakened job market have made buying a home a struggle for many young Americans.

More recently, home buyer demand has rebounded – as have home prices and the labor market. And, according to this particular study, so will the homeownership rate among young Americans, particularly if there's a continued rise in education and income levels. More here.

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Landscaping is Key to Curb Appeal

Good landscape design can help you get a better price when it's time to move but will also help beautify your neighborhood and please your neighbors in the meantime. If you aren’t that handy in the garden, start with your lawn. A recent article from Freddie Mac lays out a number of tips to help you get started. Among them, good to first identify what type of grass you have. This will help you know what seed to buy if you need to fill any dead spots. You should also be careful not to cut your lawn too short or give it too much water. Grass needs a little length to help it absorb sunlight and maintain healthy roots. Too much watering can also damage roots and will cause more weeds to grow. Another tip is to be careful with fertilizers and pesticides. Break fertilizer applications up throughout the season rather than doing it all at once. And be careful with pesticides, as they may be more trouble than they're worth. According to the article, lawn issues are more likely going to be the result of water, weather and lawn mower damage than pests. Following these simple rules should help you achieve a greener and more luscious lawn. More here.

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Tracking The Habits Of First-Time Home Buyers

First-time home buyers have always been an important demographic when tracking the housing market’s health. Whether or not younger Americans were buying homes, where they were buying, and in what numbers has been used to gauge trends and patterns that affect, not only first-time buyers, but everyone active in the real-estate market. Because of that, a new report from Genworth Financial analyzing first-time home buyer records back to 1994 is an important look at the who, what, where, and how of Americans buying their first home. Some of the highlights include the fact that first-time buyers bought more single-family homes during the first quarter of 2017 than during any other first quarter since 2005 and drove 85 percent of the housing market’s expansion from 2014 through 2016. In other words, the report found that there is currently a high level of demand among younger Americans. But it also found that many potential buyers have been unable to buy or have stayed out of the market due to misconceptions about what was required. Tian Liu, Genworth’s chief economist, says one of the main issues is the mistaken belief that a 20 percent down payment is required to buy. “By studying this group more closely, we hope to bring a better understanding about the many low down payment options available to help first-time home buyers reach homeownership sooner.” More here.

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Homes May Be More Affordable Than You Think

Rising home prices have gotten a lot of attention over the past couple of years. In some places, they’ve even been said to have fully recovered from the housing crash. But a closer look at the numbers reveals a different story. Because many gauges of national home prices use averages to measure how much prices have gained or fallen, higher-priced homes have more weight and can skew the results. For a more accurate look, a recent study from Trulia compared a home’s current market value to its pre-recession peak instead. Their method found that just 34.2 percent of homes nationally have recovered their value. That means, though prices have definitely been rising, there are still a lot of homes that haven’t yet climbed all the way back. That’s good news for buyers but it also means there are many homeowners who are still waiting for their homes to regain value before they sell – which is why there are many markets where there are fewer homes available for sale than usual. Also, it should be noted that, as with anything real estate, where you are has a lot to do with the conditions you’ll find. For example, markets in the West and South have generally seen home prices increase faster than those in the Midwest and Northeast. More here.

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The Real Reason There Are Fewer Homes For Sale

These days, many markets are suffering from a lack of homes for sale. And where there are fewer homes to buy, there are higher prices and more competition among buyers. But what’s behind the shortage?

What’s behind the housing shortage?

Well, a new survey reveals the real reason homeowners have decided to stay put and it’s probably not what you’d expect. The survey found simple demographics may be the biggest factor. A closer look at the numbers reveals that younger homeowners have plans to sell in the near future but the vast majority of baby boomers don’t. In fact, 85 percent of older homeowners said they had no plans to sell in the next year. This, however, isn’t that odd. Older Americans have always been less likely to move.

The difference these days is that the overall population has grown older. The share of Americans between the ages of 55 and 74 has risen 30 percent in the past 30 years. That means, there are more older homeowners who aren’t that likely to put their homes up for sale. The good news, though, is that 60 percent of owners who said they were hoping to sell within the next year are millennials, which means there could soon be more affordable homes on the market for interested first-time buyers.
More here.

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Number Of Showings Up 10% Over Last Year

If you had any doubt that home buyers are active this summer and looking to buy, some new numbers should help put that notion to rest.
Research Indicates It’s A Good Time To Sell!
New research shows that the number of showings – which refers to a professionally arranged tour of a home for sale – are up 10.3 percent nationally over the same timelast year. Regionally speaking, the Northeast saw the largest jump, with a 15.2 percent increase as of June. However, the Midwest and South also saw double-digit improvements. In fact, only the West saw a slight year-over-year decline. The numbers are a good indication of how much interest there is this summer from potential home buyers.
That's good news for homeowners who are looking to sell their house, as it adds to the growing evidence that, in many markets, there are more buyers than homes for sale. Of course, that also means home buyers that are looking to buy this season should be prepared to move quickly, as good homes aren't going to stay on the market very long. More here.

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Today’s Homeowner Stays Longer, Sells For More

If you’re someone who is currently debating whether or not it’s a good time to sell your house, there are some new numbers from ATTOM Data Solutions that are worth taking a look at. The results of ATTOM’s Q2 2017 U.S. Home Sales Report shows that homeowners who sold their house during the second quarter of this year saw an average price gain of $51,000 over what they bought it for. That’s a 26 percent average return and the highest return since the third quarter of 2007. Daren Blomquist, ATTOM’s senior vice president, says homeowners are facing a tough choice in today’s market. “Potential home sellers in today’s market are caught in a Catch-22,” Blomquist said. “While it’s the most profitable time to sell in a decade, it’s also extremely difficult to find another home to purchase, which is helping to keep homeowners in their homes longer before selling.” That’s true. The report shows that homeowners who sold during the second quarter had owned their homes an average of 8.05 years, which is the longest homeownership tenure since the first quarter of 2000. More here.

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Millennials Say Having A Dog Is A Top Reason To Buy

Millennials Say Having A Dog Is A Top Reason To Buy

There are a handful of common answers that come up time and time again when Americans are surveyed about their reasons for buying a home. For example, a desire for more space is always at or near the top of any list documenting prospective buyers’ main motivations.

If you’ve run out of space where you are<!–more–>

After all, if you’ve run out of space where you are – whether it’s because you’ve started a family or because you’ve got a lot of stuff – you’re probably going to be eager to move somewhere bigger. But though survey after survey finds we all share some common wants and needs when it comes to our homes, a new survey of young Americans who have never owned a home found a surprising reason behind their desire to become homeowners.

So, what was it? Well, 42 percent of respondents said their dog, or desire to have one, was a key factor in wanting to one day buy a home of their own. And, though that may seem unusual to those of us who don’t have pets, those that do, more often than not, consider them a part of their family. So, for a renter who may have trouble finding a landlord that will allow pets at all or one that won’t charge them extra for having one, buying a home can provide a less stressful environment for both the homeowner and their beloved pet. More here.

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Homeownership Rate Rises Unexpectedly

For several years following its 2004 peak, the homeownership rate was falling. Fewer Americans were buying homes and, instead, more were choosing to rent. The reasons behind this were fairly obvious.

The housing crash and financial crisis made buying a home difficult for younger Americans who were struggling to get on their feet and kept hesitant homeowners from putting their homes on the market due to lost value. The combined effect was that fewer Americans were in a position to buy and the very idea of homeownership as a wise financial decision was called into question.

Since then, though, home prices have largely bounced back and a stronger job market has led to rising buyer demand. Because of this, the homeownership has now begun to inch back up.

Homeownership Has Now Begun to Inch Back Up

For example, the latest report from the U.S. Census Bureau shows the homeownership rate improved during the second quarter of this year and is nearly one percent higher than at the same time last year. Still, at 63.7 percent, the rate is comparatively low. At its peak, it was near 70 percent. More here.

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New Home Builders Say Buyer Interest Is Strong

Buyer demand for new homes remains strong, according to the most recent Housing Market Index from the National Association of Home Builders.

The Index – which measures builders’ confidence in the new home market on a scale where any number above 50 indicates more builders view conditions as good than poor – was at 64 in July.


Additionally, individual components measuring current sales conditions and expectations over the next six months both scored 70 or above. Robert Dietz, NAHB’s chief economist, says buyer demand is strong but there are other factors slowing the rate of new home construction. “The HMI measures of currents sales conditions has been at 70 or higher for eight straight months, indicating strong demand for new homes,” Dietz said. “However, builders will need to manage some increasing supply-side costs to keep home prices competitive.” Specifically, builders have expressed concern over the cost of lumber. Naturally, higher lumber prices effect the overall cost of new homes and the number of buyers that can afford them. In other words, the reason more new homes aren’t being built isn’t because of a lack of demand and, in many cases, has more to do with higher material prices and a fewer available lots to build on. More