Category Archives: Industry News

Is homeownership on the rebound?

Posted on by

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

Posted on by

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.

Sellers seeing highest price gain in a decade

Posted on by

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.

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

Posted on by

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

Posted on by

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

Posted on by

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.

What do seniors want in homes?

Posted on by

While it seems like everyone wants to know when millennials are going to buy and what they are looking for, there is another large generation who needs housing.

Older Americans and senior citizens are still buying, and interestingly enough, they are looking for similar features that millennials crave. According to a recent report from A Place for Mom, seniors prefer walkability and closeness to urban areas. More than half of adults who live in a senior apartment prefer to be able to walk places, followed by 38 percent of those who live independently and 26 percent who live in assisted living facilities.

Seniors also seek out low crime areas, again due to the ability to safely walk places. Additionally, most aspire to be close to their families, as well as medical care.

“The findings from this study are significant to not just seniors and their families, but to a broad audience who has the potential to shape future developments of senior living communities, neighborhoods and cities,” says Charlie Severn, head of marketing at A Place for Mom. “The data can help inform local politicians and relevant stakeholders before making choices around zoning and the allocation of resources for public services.”

Good public transit is somewhat important to a majority of seniors, as is its closeness. A previous A Place for Mom survey found that 80 percent of seniors want to stay in their own homes or a home environment for as long as possible.

“It’s time to abandon the idea that only millennials and Generation X care about walkability and the services available in dense urban neighborhoods,” said Severn. “These results show a growing set of senior housing consumers also find these neighborhoods desirable. It’s a trend that should be top of mind among developers.”

 

Should homebuyers get approved for a mortgage before home shopping?

Posted on by

Do you typically encourage your homebuyers to get a mortgage approval before home shopping?

According to Carrie Niess, business analyst at American Financing, most homebuyers are doing it in reverse, finding their dream home and then hoping to get approved for a mortgage to afford that home. “The best thing to do is get an approval 30 to 60 days prior to shopping.  That way any potential issues can be addressed before going under contract, you can determine an appropriate price range for your search, and you’ll have access to a pre-approval letter acknowledging what you’re financially approved for, so your offer can strongly compete against others,” said Niess.

Niess also said it’s imperative for homebuyers to have a “trustworthy” home inspector. “The cost of a detailed home inspection is easily justifiable when considering the cost of defective major structural or mechanical issues. A home is an asset. You should never intentionally owe more than it is worth. Even in aggressive home markets, buyers should not pay over the home’s appraised value. It’s not financially beneficial to be underwater on a home starting day one,” she added.

“We’re not seeing homes on the market for very long, no matter what market you live in. High buyer demand and low home inventory equates to higher pricing , which is great for the seller and economy, but can be discouraging for the buyer. First-time homebuyers can feel particularly overwhelmed having never been through the process before. The good news? Taking the time to get pre-approved with a mortgage lender before talking terms can make even the most inexperienced buyer more attractive to a seller looking to move.”

Niess said homebuyers should make an offer as soon as they find a home they like. She doesn’t believe mortgage rates will be moving too much in the near future.

Across Pennsylvania, millennials are buying, she said. Data from Ellie Mae’s Millennial Tracker shows the majority of young Pennsylvania homebuyers were single and 29, as of the first half of 2017. Most chose conventional loans over alternative products such as FHA loans to fund home purchases. On average, they spent $157,000 to get a home and waited 47 days to close the deal, she stated.

Commercial Realtors® reporting more businesses opening in their areas

Posted on by

More than half of commercial Realtors® reported that more businesses opened in their area in March, according to NAR’s Business Creation Index for March.

This was an increase of 15 percent from November. While 34 percent of commercial agents reported that they had not seen an increase in new businesses launching in March, this is the lowest percent since the survey began.

Retail businesses were the most common addition of new businesses, according to the survey. Fifty-nine percent of Realtors® said they saw retail stores opening, followed by food and beverage at 56 percent and health, medical or dental with 38 percent. Area-wise, the East South Central saw the most new businesses open, according to 63 percent of agents, followed by the Middle Atlantic, which includes Pennsylvania, at 57 percent and the South Atlantic and West North Atlantic, both at 56 percent.

More than one-half (52 percent) of agents said they saw more businesses opening than closing, a decrease of 3 percent from February, but an increase year-to-year. Twenty-nine percent reported that the ratio of businesses opening and closing is the same, an increase of 3 percent from February.

On the other end of the spectrum, 65 percent of agents said they had not noticed more businesses closing, a decrease of 8 percent from December. Nearly one-quarter reported that more businesses closed in March, an increase of 7 percent since December.

Retail shops were the most likely to close, according to the report. Thirty percent of agents reported that retail shops were the ones that closed, followed by 21 percent who said food or beverage and both office and real estate, said 8 percent.

The Mountain region was the most likely to report businesses closing (29 percent), followed by the Middle Atlantic, the East North Central and New England, who all hit 25 percent.

 

New home sales continue to increase in 2017

Posted on by

Sales of new homes saw an additional increase in February, according to a recent press release from the National Association of Home Builders.

Newly-built single-family home sales increased 6.1 percent in February to a seasonally-adjusted annual rate of 592,000 units. In January, new home sales increased 3.7 percent.  The inventory of new homes for sale hit 266,000 in February, a 5.4 month supply if the sales pace stays the same. This is an increase of 12.8 percent from February 2016, according to Quicken Loans. The median sale price of new homes sold in February was $296,200, down from $312,900 in January, but 2.8 percent higher than last February’s level.

“February’s increase in new home sales is consistent with builders’ growing confidence in the housing market,” said Granger MacDonald, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Kerrville, Texas. “Builders are encouraged by heightened consumer activity and by the expectation that regulatory costs will decline in the year ahead.”

“The uptick in mortgage interest rates is having a minimal effect on new home sales thus far,” said NAHB Chief Economist Robert Dietz. “Ongoing job creation, rising household formations and affordable home prices should keep the market on an upward trajectory in 2017.”

However, sales in regions across the nation differed greatly. In the Northeast, sales decreased 21.4 percent. Yet, in the Midwest, sales rose 30.9 percent, the West saw a 7.5 increase in sales and the South’s sales grew 3.6 percent.