Redefy Housing News 10-3-16
This week in Redefy Real Estate‘s roundup of housing news you can use, student debt delays home buying, fall won’t cool the hot summer market, improving markets attract more flippers, repeat buyers disappear and a German house makes visitors flip.
Student debt’s effect on the housing market
Millennials have become the largest generation in the United States, according to Pew Research. With billions in potential home buying power, there’s a lot at stake for the housing market. A recent report — a joint venture between American Student Assistance and the National Association of REALTORS© — says that 70 percent of the roughly 54 million millennials in the US have student loan debt.
The average student loan balance is well into the five figures, reported the Boston Globe. Nearly 1 in 5 surveyed said they postponed marriage because of student loans; more than half said this debt has delayed their decision to buy a home by about five years.
Fall won’t cool summer’s hot housing market
The National Association of REALTORS© latest numbers showed September home sales were four percent faster than last year and the median home price rose nine percent year over year to $250,000. HousingWire reported that this hot market is expected to continue into the fall:
“House hunters who were shut out this summer because of fierce competition could fare better this fall, with more opportunities to buy and mortgage rates still near all-time lows,” realtor.com Chief Economist Jonathan Smoke stated. “But don’t expect bargains—prices haven’t come down from this summer’s record highs.”
Selling this fall? Read Autumn Blaze: 10 ways to prep your house for a fast fall sale
“Overall, the fundamental trends we have been seeing all year remain solidly in place as we enter the traditionally slower sales season, and pent-up demand remains substantial as buyers seek to get a home under contract while rates remain so low,” said Smoke.
2016’s Best Cities for Flippers
HGTV’s Flip or Flop has glamorized the profits of flippers. While there is money to be made, success depends on market know-how, loads of cash and inexpensive properties in a rebounding market. The upturn in distressed areas has led to an increase in home flips, according to real estate data company RealtyTrac. What housing markets are the best for flippers? Click on the map to view city names and details.
Where did all the (repeat) buyers go?
A recent report from the Housing Finance Policy Center of the Urban Institute, said that there were half the repeat buyers in 2015 as there were in 2001. Repeat buyers were defined as second-, third- and fourth-time buyers. In 2001 there were 1.8 million repeat buyers but in 2015 there were only 931,000.
Those who purchased prior to the downturn of 2007 said they simply didn’t have the equity to get out from under their current mortgage and have money for a down payment. Others found that qualifying for a loan under the new stricter guidelines is far more difficult. Those who lost their homes to foreclosure in the past seven years also have to wait. Add to that the increase in home prices and the decrease in inventory.
So where did all the buyers go? Nowhere. They’ve stayed in their current homes but are anticipating the possibility of purchasing another home as their credit and home values improve.
NOTE: The study only included Fannie Mae, Freddie Mac and FHA loans; private and bank loans were not included in the study.
Topsy turvy home will flip you out
Perspective is everything. And in this house, it’s a real struggle to know which way is up. The Toppel Haus is an upside-down house in Wertheim, Germany that has become a popular tourist destination.
Run by the Toppels Roadside Café, visitors can explore the house for about $5 US. All the furniture, appliances and décor are carefully bolted and glued down for a really mind-blowing experience. There’s even a car hanging upside-down in the upper-level carport.
Flippers and home owners alike save thousands with #flatfeefullservice from Redefy Real Estate. Because you’ve got more important things to spend your equity on — like down payments and trips to Germany!