Author Archives: bayequity

December 5th, 2017

Millennials heading for the ‘burbs

Posted by at 10:26 am

Decades ago, city dwellers had to weigh the high cost of “moving to the country” – a.k.a. pulling up roots to head for rural communities that required long, often inconvenient commutes. As cities pushed outward, and the automobile dominated American transit, the script flipped. Suburban development drew the working population to the country en masse. In the developing suburbs, larger homes on larger lots brought the promise of better living, and made the longer commutes worthwhile. Downtowns either languished or were transformed into trendy havens for the wealthy. A decade ago, many analysts wondered if the Millennial generation –  born roughly from 1985 to 2000 – was bringing the downtown-dwelling notion back into vogue. This generation seemed satisfied to rent high-cost apartment and condos just to be close to the action – and their jobs. But now, Millennials are growing...
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Homeownership’s value overrides divisiveness

Posted by at 1:06 pm

With some pretty big issues on the table for Congress in 2018, America may seem more politically divided than ever these days. But one shared value stretches across the nation—homeownership. There may be difference of opinion on things like healthcare, immigration and tax reform, but a strong majority of Americans agree home ownership is a financially sound decision –  an instrument for gaining long-term wealth while raising a family and making ties within the community. According to real estate website Zillow, 68.7 percent of Republicans and 65.1 percent of Democrats see homeownership as a crucial part of living the American Dream. Homeownership builds equity over time, providing financial security for families and individuals. With stable monthly payments, it’s easier for cash-conscious consumers to plan and budget. Potential tax savings can also offset homeownership costs. But the real “value” comes in...
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Seniors no longer a niche market

Posted by at 1:17 pm

Fueled by the baby-boomer generation, the population of Americans 65 and older is growing exponentially, and will become a major part of the housing and mortgage industries over the next several decades. According to the latest report from the Harvard Joint Center for Housing Studies, one out of three U.S. households in 2035 will be headed by someone over 65. That’s an estimated 79 million people! Real estate agents and mortgage lenders who plan sales strategies with an eye on the aging will doubtlessly see more success. One unexpected backlash of the exodus to the suburbs over the last 40 years is the growing number of retirees realizing their neighborhoods no longer fit their needs. In a recent survey from Freddie Mac, seniors said they need major renovations in order to stay in their current homes as they age –...
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November 13th, 2017

Unused garages causing parking issues

Posted by at 10:15 am

Almost as long as there have been cars, there have been garages, and by the late 1950s, the attached garage had almost completely replaced the outbuilding model. At first, garages were actually reserved for cars, keeping the car dry and warm and protecting the paint job with no need for morning defrosts in cold weather. But somewhere around 1980 – no one is exactly sure –  garages turned another corner. They pretty much stopped being for cars. People had always stored a few items in garages, but over time they had become full-fledged storage rooms (sometimes full of junk). Slowly, the car got pushed out. According to a 2001 UCLA study, only about 25 percent of American homeowners still parked their cars inside. In the meantime, homes with three or more vehicles shot up 872% between 1969 and 2001. With...
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October 26th, 2017

2018 Housing market: A New Frontier?

Posted by at 12:06 pm

Heading into the back stretch of 2017, analysts predict more of the same for the 2018 housing market – moderate economic growth, solid job gains and low mortgage interest rates. Same old, same old – or is it? Could new construction rev up the housing market wrapping up the second decade of the 21st Century? Economists say low supply is driving high prices right now, but homes are selling fast; continuing to average 30 or fewer days on the market. Some potential buyers have acceded to  the sticker shock, but in most markets, they’ve shown a willingness to spend more. Builders report first-time buyers are skipping the traditional starter home and jumping straight to that new, move-up home instead. Waiting longer to buy a first home has increased the median age of a first-time homebuyer, and many are already higher...
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October 19th, 2017

Parks Enhance Urban Framework

Posted by at 9:59 am

Parks play increasingly important roles in the modern urban landscape. As America upgrades and expands its roads, sewers, and utilities, it needs also to improve green infrastructure; the ecological framework needed for environmental and economic sustainability. By planning and managing urban parks in concert with other development, cities can reduce flood control and storm water management costs, protect biological diversity, provide recreation and increase civic engagement. Appealing to humans’ intuitive love of nature and open space, a well-designed park improves the public health and brings together people of all ages and cultures. Best of all, it’s free to visit anytime. New homebuyers regularly rate access to parks among the Top 10 most important considerations in their decision-making process. Mostly funded by property taxes, parks generally do well in local bond and levy elections. In the old days, green space simply had...
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October 17th, 2017

Hit the savings ceiling

Posted by at 1:25 pm

There’s a looming retirement savings crisis affecting the country! Or is there? The perception is certainly real. According to a survey by the Insured Retirement Institute (IRI), only 22 percent of 2017 Baby Boomers feel adequately prepared for retirement, Mathematically speaking, saving the highest possible amount from the earliest point in your life increases your savings potential through the value of compound interest. But no matter what your age, a holistic financial plan – putting money aside consistently and automatically – can restore confidence and build savings for those post-working years. It’s no time to panic. It’s time to change your thinking about savings. Start with the simplest things: One of the hardest things about saving money is getting started. Record your expenses to help break down where you might be able to bank extra money. Focus on using your...
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Mismatched marketplace

Posted by at 11:26 am

The record-low supply of homes for sale continues to be a nationwide trend, due mostly to a mismatch with buyer demand. Sales inventory tumbled 8.9 percent nationally between 2016 and 2017, and as of Q2 2017, had fallen for  nine consecutive quarters. Bidding wars are to be expected with most offers, especially in larger metropolitan areas and their suburbs. However, the competition is mostly born out of a lack of homes at the low end of the market, where there is most demand. After the housing crisis, investors bought up a huge percentage of the existing starting home inventory, perhaps thinking of “flipping” the homes when prices recovered. But today, those investors are collecting high rents on those homes, leaving little incentive to sell. The remaining starter homes are in huge demand. New construction isn’t filling the void. While homes priced between $200,000 and $250,000...
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A flood of insurance

Posted by at 10:28 am

Following the record damages from hurricanes Irma and Harvey, insurers are sounding the alarm bells – development across the country has turned many areas into potential flood zones.   It’s not entirely surprising. While areas like Coastal Florida require all homeowners to have flood insurance because of the high risk, most U.S. homeowners don’t live in areas prone to heavy flooding – or so they thought. Residential development eats up absorbent grasslands in and around cities, and also leads to the addition of more non-porous structures like roads and foundations, which can block the natural flow of stormwater runoff. Unless you live on a hilltop, insurers recommend at least some flood insurance. Administered by the federal National Flood Insurance Program and available through many insurances agencies, a flood policy costs about $500 a year for $250,000 of coverage. For a lot of families, an extra $500...
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Exploding home values mean refis, remodels

Posted by at 11:25 am

The low supply of houses on the market in the home stretch of 2017 continues to ramp up demand, jolting home prices “through the roof.” Most current homeowners can count on rising values for the foreseeable future! Cash-out refinances and other home equity loans are ways to pay for repairs or remodels that can push home values even higher. Updates and improvements can be used to enhance personal comfort, maintain property value – or even increase the chance of getting top dollar when an owner does decide to sell! Many of today’s first-time home buyers go smaller or older by necessity – just to get a foot in the door. They can build their dreams with the help of home equity! For homes built before 1940, updates to roofing, gutters and HVAC trend high on the list, along with abatement of toxic...
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