Single Women Make Up Second Largest Home Buying Group

Single Women Make Up Second Largest Home Buying Group

According to the National Association of Realtors’ (NAR) 2015 Profile of Home Buyers and Sellers, single women made up 18% of all first-time homebuyers last year, second only to married couples who made up 54% of total buyers.

Whether they are young, single and no longer want to rent, or newly divorced, the amount of single women becoming homeowners greatly outnumbers single males (11%). A survey of recent home buyers revealed some interesting trends about this rapidly growing group:

  • Average Age: 32 years old
  • Average Income: $49,400
  • Single women are more likely to become preapproved for a mortgage in order to know their budget at the beginning of the home buying process and to be able to make a move if they find their dream home.
  • Many female homebuyers think long-term when considering buying a home, often considering what amenities they may need in the near future.

“So what do women like best about homeownership? They believe that they are investing in their future by building equity and financial security. They are also very happy to no longer be paying their landlord’s mortgage payment. Being independent and having control over their environment is a key factor.”

It appears that it is not marriage before mortgage any longer, for either gender. As we reportedyesterday, unmarried couples make up 13% of buyers, while single males account for 11%.

Bottom Line

If owning a home of your own has always been your dream, let’s get together to determine if your dream could become a reality sooner than you think.

Now Is Not The Time To Rent

Now Is Not The Time To Rent

People often ask whether or not now is a good time to buy a home. No one ever asks when a good time to rent is. However, we want to make certain that everyone understands that today is NOT a good time to rent.

The Census Bureau recently released their first quarter median rent numbers. Here is a graph showing rent increases from 1988 until today:

When Is It A Good Time To Rent? Definitely NOT NOW! | Simplifying The Market

A recent Wall Street Journal article reports that rents rose “faster last year than at any time since 2007, a boon for landlords but one that has stoked concerns about housing affordability for renters.”

The article also cited results from a recent Reis Inc. report which revealed that average effective rents rose 4.6% in 2015, the biggest gain since before the recession. Over the past 15 years, rents have risen at a rate of 2.7% annually. 

Where are rents headed?

Jonathan Smoke, Chief Economist at realtor.com recently warned that:

“Low rental vacancies and a lack of new rental construction are pushing up rents, and we expect that they’ll outpace home price appreciation in the year ahead.”  

Bottom Line

NAR’s Chief Economist, Lawrence Yun had this to say in the latest Existing Home Sales Report:

 “With rents steadily rising and average fixed rates well below 4 percent, qualified first-time buyers should be more active participants than what they are right now.”

One way to protect yourself from rising rents is to lock in your housing expense by buying a home. If you are ready and willing to buy, let’s meet up to determine if you are able to today!

The Presidential Election and Its Impact on Housing

The Presidential Election and Its Impact on Housing

Every four years people question what effect the Presidential election might have on the national housing market. Let’s take a look at what is currently taking place. The New York Times ran an article earlier this week where they explained:

“A growing body of research shows that during presidential election years — particularly ones like this when there is such uncertainty about the nation’s future — industry becomes almost paralyzed. A look at the last several dozen election cycles shows that during the final year of a presidential term, big corporate investments are routinely postponed, and big deals are put on the back burner.

The research is even more persuasive on the final year of an eight-year presidential term, when a new candidate inevitably will become president.”

We are seeing this take form in the latest economic numbers. However, will this lead to a slowdown in the housing market? Not according to Fannie Mae, Freddie Mac or the National Association of Realtors.

The Impact on Housing Throughout 2016

Let’s look at what has happened and what is projected to happen by these three major entities.

National Association of Realtors

“In spite of deficient supply levels, stock market volatility and the paltry economic growth seen so far this year, the housing market did show resilience and had its best first quarter of existing-sales since 2007.”

Freddie Mac

“Recent data darkened the growth outlook for the first quarter of 2016. However, despite the disappointing economic reports, we still forecast housing to maintain its momentum in 2016.”

Fannie Mae

“Consumers and businesses showed caution at the end of the first quarter…(but) Home sales are expected to pick up heading into the spring season amid the backdrop of declining mortgage rates, rising pending home sales and purchase mortgage applications, and continued easing of lending standards on residential mortgage loans.”

Bottom Line

Even during this election year, the desire to achieve the American Dream is greater than the fear of uncertainty of the next presidency.

2016 Home Sales Doing Just Fine

2016 Home Sales Doing Just Fine

Some of the housing headlines are causing concern for some consumers who are in the process of either buying or selling a home. Pundits are concerned over the lack of new construction or the month-over-month sales numbers. Let’s set the record straight; 2015 was a good year for residential real estate in the United States and 2016 home sales are starting out stronger. 

Here is a graph of total homes sold (new construction and existing homes) in the first two months in 2016 compared to last year:

2016 Home Sales Doing Just Fine!! | Simplifying The Market

Will this momentum continue?

If we look at foot traffic (the number of purchasers currently out looking at homes), we can see that the spring buying market has started early and all indicators point to the fact that we may have the best spring in over a decade.

2016 Home Sales Doing Just Fine!! | Simplifying The Market

Bottom Line

The 2016 housing market started out well and looks to be gaining steam. If you are thinking of buying or selling a home, now may be a great time.

Past, Present, and Future Home Values

Past, Present, and Future Home Values

Home Values

In CoreLogic’s latest Home Price Index, they revealed home appreciation in three categories: percentage appreciation over the last year, over the last month, and projected appreciation over the next twelve months.

Here are state maps for each category:

The Past – home appreciation over the last 12 months

Past, Present & Future Home Values | Simplifying The Market

The Present – home appreciation over the last month

Past, Present & Future Home Values | Simplifying The Market

The Future – home appreciation projected over the next 12 months

Past, Present & Future Home Values | Simplifying The Market

Bottom Line

Homes across the country are appreciating at different rates. As I have mentioned before, the rate of home price appreciation across the country is due to a strong housing market reacting to supply and demand, and not a new housing bubble.

If you plan on relocating to another state, and are waiting for your home to appreciate more, you need to know that the home you will buy in another state may be appreciating even faster.

Let’s meet up so I can guide you through your next steps and help you decide what’s right for you.

Previewing Homes For Clients

Previewing Homes For Clients

Previewing Homes For Clients

Busy busy weekend folks, even with the big storm coming in. What I have here is not an award-winning video by any stretch of the imagination. It is just a quick update. This was me this morning running around to a few houses for some clients of mine to proxy view homes for them that just came on the market. That was before I had to show homes to other clients coming in to town, and after having written an offer on another home before that. Oh, and it was my first daughter’s birthday!

It is absolutely clear to me that we need to be able to operate quickly in this real estate market. I looked at three places for them and we wrote on one this evening! Always happy to go the extra mile for my clients.