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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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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September 8th, 2017

Virtually impossible to stop tech revolution

Posted by at 2:27 pm

The Tech Revolution continues to pick up speed   –  and the array of new gadgetry to help real estate industry pros is no exception! In the 1990s and 2000s, cellphones and smartphones freed agents from their office chairs (and chained them to their cars). Who knew that was just the beginning? Now drones soar high overhead, offering professional-quality listing photos from unprecedented perspectives. How about the virtual real estate broker? The concept has been around since at least 1987, when the movie “RoboCop” showed a home tour guided by an agent who popped up on screens as shoppers moved from room to room. With instant messaging apps like Skype and FaceTime, buyers can take home tours without actually being present. One company offers a robot that tours homes for you with a camera, broadcasting videos that can be streamed online. Some...
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Buyers explore longer commutes

Posted by at 12:50 pm

  Stopping short of saying it’s a “major” trend, extreme commuting – or at least extended commuting – is becoming an established feature of the American workplace. About 21 percent of workers commute more than 60 minutes each way to their jobs. More than half of these drive the whole distance alone. Extreme commuters – defined as people who spend 90 minutes or longer getting to work each way – are still rare, making up only about 3 percent of the work force. But the numbers are rising. By coincidence, many companies today are bringing telecommuting workers back to the office, demanding more collaboration and contact with customers. U.S. workers who performed all or some of their work at home fell from 24 to 22 percent between 2015 and 2016. With soaring prices, many commuters say they are willing to sacrifice...
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Millennial concerns constrain home ownership

Posted by at 11:59 am

If you’re 35 or younger and you own your own home in America, you are somewhat of a rarity – a lot of your peers haven’t gotten there yet. Only about 35 percent of young adults in the U.S. are homeowners, an all-time low. In fact, a recent U.S. Census report found that a full third of America’s young adults still live at home with one or both parents – more than the amount who cohabitate with a partner or live alone. There are many reasons America’s young adults are struggling. Along with facing the highest home prices in history, Millennials are shouldering some serious student loans – borrowers who graduated in 2016 will pay back an average of $37,000. Many took out those loans at the height of the crisis – at some pretty high interest rates. Terms as...
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August 10th, 2017

Odds are there is no housing bubble

Posted by at 4:04 pm

In the post-crisis era, it can be hard to believe there’s no negative outcome lurking behind today’s soaring housing prices. But new analysis of data from 14 developed countries shows there’s minimal risk of a dramatic decline in home prices any time soon, despite current fears of a “bubble-bursting” correction. The research comes as housing prices set new records nationwide, surpassing their 2006 peaks in almost all areas of the country. The median house price jumped 6.5 percent in June to an all-time high of $263,800 – the 64th straight month of year-over-year price increases. But the study showed sustained increases in real house prices have been the norm since 1950, rather than the exception. While there is always a chance of a correction, odds are it won’t happen. Simple models put the chance of a 20 percent (or more)...
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July 13th, 2017

Spec construction poised for comeback?

Posted by at 10:10 am

With the rising price of existing starter homes, one segment of the new construction marketplace may be poised to take off at a pace not seen since the days following World War II. By the end of the 1940s, America had essentially ceased building homes – diverting usable materials to support the war effort. The demand for affordable homes created by the returning soldiers fueled the new “spec” home industry. “Spec” is another name for “speculative” construction, building new homes for sale with no particular buyer in mind. In the 1950s and 1960s, many builders turned out thousands of simple, mass-produced homes at an affordable cost. Most sold and the builders turned a tidy profit. Insert Millennials into the equation in place of GIs. Today, there are at least 30 million potential buyers younger than 36 looking to settle down. And it’s not...
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Report: Sacramento is hot!

Posted by at 12:08 pm

Sacramento, home of one of the newest branches of Bay Equity Home Loans, was lauded as one of California’s hottest housing markets in the May 25, 2017 issue of The Wall Street Journal. Though it’s the state capital, Sacramento had taken a bit longer to emerge from the Housing Crisis slump while the rest of the state surged. Led by an aggressive downtown renewal plan, many of Sacramento’s most desirable neighborhoods are cropping up in the urban core – a shift from its past developments featuring gated suburban communities. Among the standout downtown projects are Downtown Commons, a vacant mall converted into a two-level outdoor mixed-use entertainment and shopping complex. Condominiums with city and river views, as well as room service and concierge, are breaking new ground in luxury living. Other features include new artist lofts, warehouses renovated for unique retail and office...
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