This week in housing news, lots of graphs tell the housing market story, open-house goers show their cards, mortgage rates inch up, and a homeowner builds an igloo rental.
Fannie Mae’s monthly US Home Purchase Sentiment Index™ (HPSI) increased 1.6 points from the previous month and 1 point from the previous year to 85.3 in May. That’s an all-time high for the survey of homeowners and renters. Continue reading Homebuyer confidence at an all-time high
Real estate prices are rising across the country. Finding that home to turn into a rental property may have you looking outside your city. RentRange®, a single-family rental market data company, released a study identifying the top 25 cities in America to invest in rental homes.
The study analyzed the average rental rate increase and average gross yield (income return from an investment prior to operating costs) for single-family homes for the first quarter of 2016 (compared to Q1 of 2015). Data was collected on approximately 250,000 homes; sources include multiple listing services, property managers, landlords and listing web sites.
As Millenials “grow up”, the appeal of the suburbs is also growing.
The Pew Research Center, a think tank organization, defines “adult Millennials” as those who are 20 to 35 years old (born 1981–1996). A recent National Association of Realtors® (NAR) survey showed that just 17 percent purchased a home in an urban or city center area.
A whopping 48 percent of Millennials surveyed cited the desire to own a home as a reason for looking in the suburbs. Rising rents and home prices are pushing these young professionals farther from the city. Low inventory and fewer building projects of affordable housing in urban corridors has also contributed to the exodus, says CNBC’s Realty Check.
Millennials may start out renting in trendy urban areas, but the suburbs have an appeal they can’t deny. “Even if an urban setting is where they’d like to buy their first home, the need for more space at an affordable price is for the most part pushing their search further out,” said NAR chief economist Lawrence Yun.
While Baby Boomers and Gen X’ers complained of credit card debt preventing down-payment savings, younger Millennials report high student loan debt as the cause. Edvisors reported that 2015 grads will be in debt a little over $35,000. Add to that their low median incomes (entry-level) ranging from $18,000 to $43,000 (by state), according to Business Insider.
This debt and student loan combo is resulting in an average of 6 years to save for a down payment. The average home purchase age is 30, with an median income of $77,400 (and still servicing student loan debt). Millennials with families cite the same reasons previous generations chose the suburbs: larger homes, land (bring on the chickens!), good schools and amenities.
Looking for an affordable home? The experts at Redefy can help! Need to sell a condo or house first? Sell for just $2,500 and save thousands!
*Buyer co-op may apply
Join the conversation; use our hashtags when you share: #flatfeerealestate #redefyRE #flatfeefullservice. Stay up-to-date on the latest real estate trends, tips and news, follow RedefyRE on Facebook, @RedefyRE on Twitter and Redefy on Pinterest.
The real estate market can be lucrative, but the way traditional brokerages operate, it may take a new agent years to make consistent income and build a decent book of business.
The Redefy Real Estate flat fee, full service model is gaining popularity with agents because we set up agents to succeed from the start. Could you benefit from being a Redefy Agent?
We asked our agents what they like about working with Redefy. Here’s what they said: