Redefy housing news 10-24-16
This week in housing news, #millennials buy big, construction goes up, values keep rising, affordable housing goes micro and one agent makes haunted status a priority.
More first-time buyers jumping into housing
Our friends the #millennials (you have to say it with a hashtag) are in the news again. Credit-reporting agency TransUnion said its recent study showd that about 17 million will enter the real estate market over the next 5 years. Almost 3 million are expected to buy homes in 2017.
“From a consumer perspective, it’s important for wealth building and housing stability,” TransUnion VP Joel Mellman said. “For communities, it stimulates economic activity. The first domino in the housing chain is the first-time homebuyer.”
Guess who’s coming to dinner?
That’s right, #millennials again! As they poise to take over the real estate market, you might be surprised to see that they entered the market at a higher age than most buyers in previous eras. Source: Bloomberg.
Higher rates won’t kill housing
Rates will probably go up. Will that kill the housing market? No, says Jonathan Gray, global head of real estate at Blackstone. There’s too much of a focus on rates, he told CNBC: “There’s a [false] sense that owning real estate is the same as owning a bond. Real estate, like stocks, can see earnings growth,” he argued. “And that’s what we’re seeing today because of favorable fundamentals.”
Building and permits go up
September’s numbers are in and the U.S. Commerce Dept. reports that construction of single-family homes went up. Starts jumped 8.1 percent to 783,000 units, the highest amount since February. Reuters reports that, “Overall home building activity is likely to rebound in the coming months, as permits for future construction surged 6.3 percent in September to their highest level since last November. Single-family permits rose 0.4 percent last month.”
Going small could have big results
Across the country, large cities have few affordable housing units. It’s grown into a large problem. There may be a (tiny) solution for high-rent cities: micro housing. They’ve been around a while in ridiculously-expensive New York City. Now the itty bitty units for one or maybe two (skinny) occupants are going up in Los Angeles, Denver, Seattle, and more. In Providence, Rhode Island the nation’s oldest mall now houses 48 units. Despite past failures around the world, urban planners are banking on the love of tiny homes with innovative spaces conveniently set in city centers.
Speaking of haunted… read Monster mash: 25 ways to party on Halloween
Contrary to what you might have heard…
No, this house wasn’t for sale on Halloween and it’s not in Salem, Mass. It’s actually in St. John, New Brunswick, Canada. Agent Jake Palmer had to re-list the house when it fell out of contract and wanted to allay buyers’ fears that something might be wrong with it in a less-than-traditional way.
So his first sign addition was “Indoor Plumbing” which got a few laughs but no bites. The next was “Love Shack, Baby” (well, it is tiny) but again no bites. Finally, he came up with the attention-grabbing “Not Haunted” which went viral and eventually got a sale. Not bad, eh?
Looking for a not haunted house this Halloween week? Redefy Real Estate can help! We’re a full service brokerage.
Need to sell first? No, we won’t hang weird stuff off your sign. We will save you thousands with flat fee listings for more important things — like pumpkins, costumes and Halloween parties.