Monthly Archives: August 2017

Is homeownership on the rebound?

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For the second quarter of 2017, homeownership saw an increase year-to-year, rising from 62.9 percent to 63.7 percent.

According to the U.S. Census Bureau’s Residential Vacancies and Homeownership report for the second quarter of 2017, homeownership also rose .1 percent quarter-to-quarter, increasing from 63.6 percent to 63.7 percent. Homeownership was the highest in Midwest, at 68 percent, followed by the South at 65.5 percent, the Northwest at 60.4 percent and the West at 58.9 percent. The Northeast saw an increase in homeownership in both quarter-to-quarter and year-to-year.

What generation is leading homeownership? Not surprisingly, those 65 and older for this past quarter, with 78.2 percent being homeowners, compared to only 35.3 percent of those under 35, though the millennials did increase 1.2 percent year-to-year. As residents age, so does their likelihood of homeownership, 58.8 percent of those aged 35 to 44 own a home, while 69.3 percent of those aged 45 to 54 are homeowners, and 75.4 of those 55 to 64 years old own their home.

Across demographics, non-Hispanic whites had the highest rate of homeownership at 72.2 percent, followed by Asian, Native Hawaiian and Pacific Islander household owners at 56.5 percent, and black homeownership hit 42.3 percent.

Around 87.1 percent of homes in the U.S. were occupied, leaving 12.9 percent empty.

Meanwhile, the number of rental vacancies rose from 6.7 percent to 7.3 percent year-to-year, yet the median rent continued to increase. The median asking rent for vacancies was $910, a new peak. Rental vacancies in the Northeast was the lowest in the country, at just 5.2 percent, compared to 9 percent in the South, the highest.

More and more Americans are feeling positive about the housing market, according to Fannie Mae. This latest report from the U.S. Census Bureau shows that they are starting to do something about it.

Millennial men more poised for homeownership, but women aren’t far behind

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Millennial men may be leading their female counterparts, but the playing field may soon level out.

According to a recent report from Lending Tree, 55 percent of millennial men are homeowners, compared to 44 percent of female millennials. However, LendingTree found that women are twice as likely to be living with friends or family, usually rent-free, hence the gap in homeownership rates.

Despite higher rates of homeownership, millennial men have less total debt, with an average of $53,017, while millennial women owe an average of $68,834. Of their total debt, both owe back student loans, men have an average of $8,500 in student loan debt, while women have an average of $14,758 in student loan debt.

Yet, millennial women have better credit scores on average. More than one-third (36 percent) have a credit score of 700 or higher, while only 30 percent of men fall in that category. However, more men in this age group, 82 percent, know their credit score, while only 76 percent of women do.

Not surprisingly, the gender pay gap is also prevalent among millennials. While 57.3 percent of millennial males make at least $50,000 a year, only 42.1 percent of millennial females do as well.

Men in this age group said their top financial priority is increasing their income, followed by putting more money into savings and paying off credit card debt. Women said putting more money into savings, followed by paying off their credit card debt and then increasing their income are their top financial priorities. Men are also more convinced than their female counterparts that they can pay down debt, and are also more satisfied with their current financial situation. Women feel more frustrated with their debt, 22.7 percent of women reported feeling this way, compared to 17.24 percent of men.

Despite men having the lead in homeownership and salaries, along with less debt, the report said women’s higher credit scores and dedication to savings and increasing income may have them catching up to their male peers sooner rather than later.

Avoiding anti-trust discussions

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The new “Instant Offer” feature touted on some online listing sites has caused many real estate agents to reconsider their use of these sites. Some Realtors® have suggested their organizations take a position on these features.

“We’ve seen many Realtors® speak out on social media about this issue and many have called for boycotts,” said Hank Lerner, PAR’s director of law and policy. “While individual brokers and agents can certainly make independent business decisions about distributing their own listing content, we want to caution members against starting or promoting group boycotts of Zillow. It’s unlawful for associations to encourage members to withhold listings or business from any company, or to adopt rules that would prevent them from doing so.”

The National Association of Realtors® encourages Realtors® to show their value to homebuyers and sellers.

Realtors® know and understand their local markets far better than a website can. Realtors® work with home sellers to prepare their home for the sale and market their home to a large audience. As a real estate professional, Realtors® negotiate the best deal for their clients.

“In the meantime, it’s best to avoid conversations that could be a violation of anti-trust laws,” Lerner added.

Sellers seeing highest price gain in a decade

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Putting a home on the market now is paying off for most homeowners.

ATTOM Data Solutions found in their Q2 2017 U.S. Home Sales Report that homesellers who sold in the second quarter of 2017 averaged a price gain of $51,000 since their purchase, which is the highest price gain since the second quarter of 2007, when it was $57,000. The average return, 26, percent, also was the highest in nearly a decade, second only to the third quarter of 2007, when it was 27 percent.

However, homeowners are hanging on to their homes just a bit longer. The average homeowner who sold last quarter owned their home for an average of 8.05 years, an increase from 7.85 years the first quarter. This is the longest homeowners have stayed since the report started in the beginning of 2000.

“Potential home sellers in today’s market are caught in a Catch-22. 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,” said Daren Blomquist, senior vice president at ATTOM Data Solutions. “And the market is becoming even more competitive, with the share of cash buyers in the second quarter increasing annually for the first time in four years.”

All-cash purchases saw a slight decrease for the second quarter, making up 28.9 percent of single-family and condo sales, a decrease of 2.4 percent from the first quarter. Investors purchased 2.1 percent of properties, an increase of 0.3 percent from the first quarter, but down 0.5 percent year-to-year.

Specific to Pennsylvania, Philadelphia homeowners actually lived in their homes less than the national average before selling, while Pittsburgh saw a 31 percent increase in distressed sales.

Delaware REALTORS® Use REALTOR® Party Mobile Alerts to Save Itemized Deductions

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But with the recent loss of GM and Dupont jobs, and casino profits dwindling, the deficit on the state of Delaware’s $4 billion budget this past fiscal year was close to $400 million. Something had to be done to help fill the gap.  The Delaware Association of REALTORS® had managed to dissuade the legislature from pursuing a statewide property tax, and had received a strong indication from the Joint Finance Committee that it would not be looking to eliminate itemized deductions from the state tax code.  But then it did.  And the REALTORS® responded in force.

Maria Evans, Government Affairs Director of the 3,800-member association, explains that the bill, which threatened both mortgage interest and property tax deductions, was introduced just under the wire, and the association issued a Call for Action in short order. This was the first time that Evans, a veteran GAD, had used REALTOR® Party Mobile Alerts.  It couldn't have been simpler, she says.  "It was easy for me to set up, and easy for our members to take action.  I drafted the text message to our members, and a basic form letter that could accommodate additional personal comments.  The REALTOR® Party team talked me through the set-up; I was working on this fairly late-night, and they were right there with me. We had to get it out ASAP.  With just a few clicks, constituents were voicing their opposition to the bill."  The fact that the system is address-based means that legislators are only hearing from their own constituents, which has a much stronger impact on the receiving end, she notes.

What really amazed Evans is that the REALTOR® Party followed up with a finely targeted text message alert to those who had not yet responded, and then another, after a calculated amount of time.  Before the dust had cleared, more than 1,100 REALTORS® had taken action: a remarkable response rate of 31%, the highest, by far, for Delaware.  The click-through rate, according to the National Association of REALTORS, was an astonishing 87%—a national record, and far above the average state CFA click-through rate of about 15%.  The REALTORS® also reached out to the general public through the Consumer Advocacy Outreach Program, which generated a modest but helpful response.

"The volume of emails from our REALTOR® members was amazing!" says Evans. "We had a caucus across the aisle, and needed just one more vote, and we got it.  The emails to legislators also allowed us to hold on to the votes we had.  There is no doubt in my mind that it was our initiative, with the help of the REALTOR® Party, that carried the vote."  The Speaker of the House had no doubts either, as Evans and the President and General Counsel of the Delaware REALTORS® learned when he called them in to his office.  "He was livid that the state had been forced into an unprecedented extraordinary session, and placed the blame squarely on the REALTORS®.  For my part," reports Evans, "I was happy to accept that credit!"

The REALTORS®' success in defending the mortgage interest and property tax deductions came at a cost, however: in the three-day extraordinary session, the legislators hiked the transfer tax by 1%, a whopping 33% increase. Evans got right to work, and is hopeful that in January, it will be amended to exempt first-time home buyers and possibly primary dwellings, as well.  "We need to make sure the legislators understand that not all prospective buyers are investing in beach houses," she says.  "This is going to hurt kids living in their parents' basements, and working people scraping their pennies together for a first home."

To learn more about how the Delaware REALTORS® are using REALTOR® Party tools to protect property rights by engaging members in the legislative process, contact Government Affairs Director Maria Evans at 302-734-4444.

Miami REALTORS® Kick off Year of Advocacy with Community Engagement Projects

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Miami Association of REALTORS®, with more than 46,000 primary members, has to think BIG to deliver the most impact with the REALTOR® Party programs, explains Senior Vice President of Housing & Government Affairs Danielle Blake.  In order to use REALTOR® Party resources efficiently, the Miami Association, through member engagement and feedback, developed a list of projects designed to bring significant improvements to nearly every corner of greater Miami.

To build the bundle of projects, the Miami Association invited its membership to a brainstorming session; more than 200 members, many of them members of the NAR’s Young Professionals Network (YPN), attended and submitted ideas with gusto: "REALTORS® work and live in all our communities," says Blake, "and they know what the needs are."  Each final project was led by the REALTOR® who proposed it, and supported by a team of fellow REALTOR® volunteers and a REALTOR® Partner, typically an elected official.  The group came up with the following projects, among others:

  • In Miami Gardens, an incorporated city home to the Hard Rock Stadium where the Miami Dolphins play, REALTORS® kicked off the US-441 beautification project in anticipation of Super Bowl LIV in 2020: the mayor, city commissioners, residents and several REALTOR® members re-painted the façade of a prominent corner commercial building.
  • The REALTORS® have partnered with the Ludlam Trail, a former railroad track that is now a recreational path, in sponsoring community events from car shows to yoga classes to movie nights, all branded with the REALTOR® name and logo.
  • The REALTORS® are supporting the Underline, a large-scale project capitalizing on the unused space beneath the 10-mile elevated Metrorail between Miami and Coral Gables.  More than 100 members participated in a kick-off bike ride sponsored by a portion of the bundled grant.
  • Making use of both Housing Opportunity and Diversity Grants, the REALTORS® partnered with the local National Association of Hispanic Real Estate Professionals (NAHREP) chapter in hosting a condo-financing conference attended by 350 real estate professionals and members of the public.  A white paper produced by the Miami Association of REALTORS®’ task force had influenced an FHA policy change, resulting in a significant increase of insurance compliances for condominium buildings.
  • Inspired by the REALTOR® Village, a shipping-container community in the Philippines, built in cooperation with NAR, the Miami REALTORS® are tackling the housing affordability crisis by developing a container house prototype in the City of South Miami.  The REALTORS® have navigated complex city zoning and setback requirements, partnered with the county to donate the land, and identified a local architect and contractor with container-home experience. With the enthusiastic support of an enlightened mayor, the tiny house is becoming a model reality.
  • Miami REALTORS® are passionate about giving back to people of all backgrounds and abilities.  With support from a grant, more than 40 Miami REALTORS® dressed up to serve dinner to more than 500 individuals in need at Chapman Partnership, a non-profit committed to empowering the homeless in Miami. The association is working to make the event an ongoing volunteer opportunity, and a number of REALTORS® who participated are working on future corporate events with Chapman Partnership. 

The REALTOR® Party grants have also helped to create a dog park, and sponsor multiple Better Block projects that have spurred citizens and elected officials to make lasting improvements. 

The great thing about the effort, says Blake, is that it succeeds on so many levels:  "We were finally able to use these wonderful REALTOR® Party programs on a substantial level.  We're interacting with elected officials, who, in turn, are recognizing the input and expertise of the REALTORS®.  We're engaging our membership, and our YPN, in particular.  We're helping our communities, and we're crafting housing policy!  None of these projects, nor any of this positive effect, would have happened," she concludes, "without the support of the National Association of REALTORS®." 

To learn more about how the Miami REALTORS® are using REALTOR® Party resources to improve their communities on multiple levels, contact Danielle Blake, Senior Vice President of Housing & Government Affairs, at 305-468-7015.

Pacific Southwest REALTORS® Advocate for Transit-oriented Smart Growth

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Housing affordability is the top priority for California’s governor.  It's the principal challenge for the mayor and the San Diego City Council.  And it's of utmost concern to the Pacific Southwest Association of REALTORS® (PSAR), with 2,000 members in the trenches of the local real estate industry, where rents have skyrocketed in the past decade, and would-be first-time homebuyers are struggling.  PSAR recently used a REALTOR® Party Smart Growth Action Grant to co-sponsor a report that convinced the city to adopt a handful of policy measures to help ease the crisis.

The grant was used to support the work of Circulate San Diego, the region's leading nonprofit concerned with transportation and sustainable land use issues, as it developed recommendations for transit-oriented development. A prime focus of the plan was updating the city's existing Density Bonus program, along with other incentives making it easier for in-fill development to move forward.

Tracy Morgan Hollingworth, Government Affairs Director at PSAR, served on the technical advisory board of Circulate San Diego's Transit-Oriented Development report.  Its goals were to:

  • Reduce costs for new affordable and market-rate mixed-use developments near transit
  • Generate more economic development from region’s transit investments
  • Create better links between homes and jobs through transit
  • Reduce vehicle miles traveled and greenhouse gas emissions by accommodating future growth near transit

Shortly after receiving Circulate San Diego's report, the City Council unanimously voted to adopt five new incentives based on its recommendations.  Rather than increasing density rates, the new ordinances make it faster and simpler to build housing units that are already allowed.  The incentives include: an increase in the existing Density Bonus Program, which rewards developers for including a certain number of low-income units in their building projects; reducing the parking space minimum for units built close to transit stations; and allowing low-income units to be built up to a mile away from market-rate units, within a single development project, for construction efficiency.

Hollingworth notes that the beauty of the new ordinances is that they simply remove obstacles that have discouraged building where increased density has already been approved.  "It's about maximizing density to the allowed limits, not increasing the density rates.  This will add desperately needed housing units where there's existing infrastructure, and give developers and builders a fair degree of flexibility. And because it covers the entire city, it takes some of the pressure off individual neighborhoods struggling to update their community plans, which can be a lengthy and tortured process."

Rafael Perez, a PSAR member active in city politics, attended many Circulate San Diego meetings and provided testimony for the City Council.  He notes that the coalition of organizations supporting Circulate San Diego in this complex effort was highly unusual in its diversity. "You'd expect to see environmentally-focused groups getting behind transit-oriented development," he says, "but the presence of the REALTORS® and other business groups brought valuable angles of expertise, and a critical balance, to the process.  And for the City Council to have found the recommendations acceptable on both sides of the aisle, tells you how universally beneficial they'll be.  For REALTORS®," he adds, "our involvement also demonstrates our vested interest in the region, and helps to disprove the all-too-common notion that we're only interested in sales."

To learn more about how the Pacific Southwest REALTORS® are working to help San Diego maximize housing density and implement transit oriented development initiatives, contact Government Affairs Director Tracy Morgan Hollingworth at 619-222-8155.

National Curb Appeal Month: How your clients can spruce up the exterior of their home

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August is National Curb Appeal Month, and as Realtors®, you know the first thing homebuyers see is typically the exterior of the home. What can sellers do to make sure their house looks as great on the outside as it does on the inside?

Meticulous detail to maintenance is a must-do, said Interiors by Anastasia designer and owner Anastasia Laudermilch

“Whether you live in the smallest home on the block, or the largest, a well-maintained property stands out among the rest. It’s rather simple, and not a big designer thing,” said Laudermilch. “You can enhance the exterior, once you have that down.”

Laudermilch also said shrubbery is important. She recommends putting evergreens in, as deciduous trees and shrubs lose their leaves in the fall and winter, lessening their curb appeal.

Doors, the front and garage namely, are also features that impact a home’s curb appeal. “Make sure the front door is fresh, new and updated,” she said. “A metal awning is relatively easy to add if a garage door is plain. People are going to see the garage doors, if you don’t want to replace them or add an awning, give them the look of a carriage house doors,” she suggested.

Grouping in threes is also a style tip Laudermilch recommends. “Get a big pot and put an evergreen shrub, and then do a smaller pot with flowers and greenery, and add a lantern or some sort of cement sculpture,” she said, to give the house some flair.

“Lighting is critical,” she added. “A home should feel warm and welcoming. Lighting is the jewelry of the space you have. Make sure the light is substantial and proportional to the home to make a statement, and set a tone.”

While adding color to the home can make change the look, Laudermilch said she generally recommends people stick with neutrals. “You want your house to stand out, but not so far that it is peculiar.”

Finally, don’t forget about the mailbox. “Keep the mailbox looking fresh,” she said.

ZipForm® Plus update coming Aug. 9

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For current users of the zipForm® platform, you will see a redesign of the software this Wednesday, Aug. 9.

Your initial login will bring you to a new zipTMS™ agent dashboard, which features interactive widgets and an overall snapshot of your business portfolio. At a glance, you will be able to see an overview of a number of statistics for your business such as pending transactions, a projected sales volume and a task list, among other things.

The new structure is meant to create a streamlined workflow for the user, as well as provide a more modern, icon-based look. A navigation bar at the top of the dashboard will have tabs to help you navigate through major categories of information. You will be able to access your transactions, templates, tasks, contacts and zipLogix partners with a click of the mouse.

You will add forms to your transaction from the PAR forms library almost exactly the same way you do now. Forms are listed under “txn tools” (transaction tools) under the “transactions” tab. Adding a form to a transaction will bring up an alphabetical list of the forms in the PAR library on the right side of the screen, as always. All of the functions for filling out forms are still available, including e-Sign.

ZipLogix is allowing users to toggle back and forth between the new and the classic platforms for 90 days after its launch, until Nov. 7, in order to give you time to become familiar with the new icons and features. The company has also provided instructional videos on its YouTube channel and will host training webinars at various times and dates. If you have questions about the new platform, your account representative will be able to assist you.

Homeownership? It’s for the dogs

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Who knew adding a dog to the mix would lead more millennials to homeownership?

According to a recent survey from SunTrust Mortgage, one-third of millennials in the U.S. said they purchased their first home to have better space or more yard for a dog. Pups led to homeownership for millennials more so than marriage or a baby. Forty-two percent of millennials who have yet to purchase a home said their dog, or their desire to have one, will be a reason they buy a home.

“Millennials have strong bonds with their dogs, so it makes sense that their furry family members are driving home-buying decisions,” said Dorinda Smith, SunTrust Mortgage president and CEO. “For those with dogs, renting can be more expensive and a hassle; homeownership takes some of the stress off by providing a better living situation.”

In addition to Fido, the largest percentage of millennials (66 percent) want more living space, which led them to purchase their first home, while 36 percent cited a desire to build equity. One-quarter of millennials said marriage was the key factor that led to purchasing their first home, while 19 percent said the birth of a child made them take the leap.

“Millennials are trending toward homeownership,” Smith added. “Demand among millennial-aged, first-time homebuyers is robust, and we expect them to continue adding strength to the housing market.”

Earlier, this year, NAR found that 61 percent of households either own a pet, or are planning to get one, while nearly one-third of pet owners have not put an offer on the house because it was less than ideal for their animal.