The Kallhoff Team

Monday, September 23, 2013

Younger Buyers to Dominate Luxury Market

DAILY REAL ESTATE NEWS | MONDAY, SEPTEMBER 23, 2013

A new survey by Coldwell Banker Previews International and the Luxury Institute finds that wealthy younger buyers are driving the luxury real estate market, and they are willing to pay more than similar wealthy buyers age 55 and older.

The survey looked at Americans age 21 or older with a minimum gross annual household income of $250,000. It found that 43 percent of younger wealthy consumers are considering purchasing residential property in the next 12 months, compared to 21 percent of those age 55 and older. These younger, wealthy buyers spent an average of $2.1 million on their most recent purchase of residential property, approximately twice the average amount spent by older and similarly wealthy buyers.

“Luxury homes are for more than successful and retired empty nesters,” says Milton Pedraza, CEO of the Luxury Institute. “Today’s luxury buyer is both dynamic and diverse, and it’s reflected in the homes and products they’re buying.”

So what are these younger buyers looking for? The survey found they are significantly more likely than wealthy buyers age 55 and older to want homes with amenities such as a pool, outdoor kitchen, home gym, home theater, wine cellar, and four or more garages. They are also more than twice as likely to value green or LEED-certified properties.

“This trend toward younger luxury buyers is leading a change in desired home amenities,” says Betty Graham, president of Coldwell Banker Previews International NRT. “Whether these younger buyers have young families or are single without children, they are looking for homes that fit their active and unique lifestyle.”

For most luxury buyers, location is the most important factor when considering the purchase of residential property. And though they may travel internationally, only 6 percent of wealthy homeowners surveyed own residential property located outside the U.S.

Source: Coldwell Banker Previews International Wealthy Consumer Survey.

http://realtormag.realtor.org/daily-news/2013/09/23/younger-buyers-dominate-luxury-market

http://www.rebeccasellsaz.com/

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Friday, September 20, 2013

Mortgage Rates Move Lower as Fed Delays Taper

DAILY REAL ESTATE NEWS | FRIDAY, SEPTEMBER 20, 2013

Mortgage rates inched lower this week, following the Federal Reserve’s recent announcement that it would delay tapering its bond buying program. Mortgage rates have climbed more than one percentage point since May when speculation began that the Fed would start winding down its $85 billion per month bond buying program, which had helped keep mortgage rates low.

"Mortgage rates drifted downwards this week amid signs of a weakening economic recovery,” says Frank Nothaft, Freddie Mac’s chief economist. "This, in part, was why the Federal Reserve chose to maintain its MBS and bond-buying program. [The Fed] also cited the tightening of financial conditions observed in recent months, which in the case of the housing market means the rise in mortgage rates since May."

Freddie Mac reports the following national averages with mortgage rates for the week ending Sept. 19:

30-year fixed-rate mortgages: averaged 4.50 percent, with an average 0.7 point, dropping from last week’s 4.57 percent average. Last year at this time, 30-year fixed-rate mortgage averaged 3.49 percent.
15-year fixed-rate mortgages: averaged 3.54 percent, with an average 0.7 point, dropping from last week’s 3.59 percent average. Last year at this time, 15-year rates averaged 2.77 percent.
5-year adjustable-rate mortgages: averaged 3.11 percent, with an average 0.5 point, dropping from last week’s 3.22 percent average. A year ago, 5-year ARMs averaged 2.76 percent.
1-year ARMs: averaged 2.65 percent, with an average 0.4 point, dropping from last week’s 2.67 percent average. A year ago, 1-year ARMs averaged 2.61 percent.

Source: Freddie Mac

http://realtormag.realtor.org/daily-news/2013/09/20/mortgage-rates-move-lower-fed-delays-taper

http://www.rebeccasellsaz.com/

Thursday, September 19, 2013

Recovery in New-Home Market Excelerates

DAILY REAL ESTATE NEWS | THURSDAY, SEPTEMBER 19, 2013

The recovery of the new-home market picked up speed in August, with builders beginning construction on more single-family homes and building permits soaring to a five-year high, the Commerce Department reported Wednesday.

Construction starts on single-family homes rose 7 percent in August, reaching its highest point in six months, according to the Commerce Department.

“Home building seems to be holding up decently in the higher mortgage rate environment, probably due to the support of strong underlying fundamentals: thin inventories and steady household formation,” says economist Guy Berger.

Single-family housing starts rose across the country, with the West seeing the biggest gain: 17.5 percent. They increased by 9.6 percent in the Northeast, 7.1 percent in the Midwest, and 2.3 percent in the South.

"This is the kind of signal we've been looking for, with single-family starts and permits up or holding steady across every region in the nation," says David Crowe, chief economist for the National Association of Home Builders. "Today's report is reflective of gradual improvement in buyer confidence in the overall market and our recent surveys that indicate a solid outlook for single-family production. On the multifamily side, we are catching up with underlying rental demand. We expect to see additional multifamily starts in the future, but not as rapid a pace of growth as we've seen in the past."

In August, starts within the multi-family market — which includes the volatile apartment and condo sector — dropped 11.1 percent. Higher mortgage rates could be making developers in the multifamily sector more cautious about starting new projects, Reuters reports.

Meanwhile, the gains are expected to continue for the single-family housing market. Building permits for single-family homes, a gauge for future construction, rose 3 percent in August to its highest level since May 2008. Building permits for multifamily homes plummeted 15.7 percent in August.

Source: National Association of Home Builders and “Home Construction Rises, as Do Building Permits,” Reuters (Sept. 18, 2013)

http://realtormag.realtor.org/daily-news/2013/09/19/recovery-in-new-home-market-excelerates

http://www.rebeccasellsaz.com/

Wednesday, September 18, 2013

Mortgage Applications Rebound From 5-Year Lows

DAILY REAL ESTATE NEWS | WEDNESDAY, SEPTEMBER 18, 2013

Loan demand rose last week, surging 11.2 percent, as interest rates eased slightly from their yearly highs, according to the Mortgage Bankers Association’s latest index of mortgage application activity for the week ending Sept. 13.

The MBA’s mortgage index reflects applications for home purchases and refinancings. Broken out, the refinance index soared nearly 18 percent last week while the purchase index, a gauge for future home buying, rose 3 percent.

The rebound in mortgage applications follows a recent drop in applications the previous week that had taken loan demand to its lowest point since November 2008. Mortgage applications had fallen 13.5 percent the previous week, as rising interest rates had prompted refinancers and home buyers to take a pause.

Last week, mortgage rates dropped slightly from their yearly highs. The 30-year fixed-rate mortgage dropped 5 basis points to 4.75 percent, falling from the previous week’s yearly high of 4.8 percent, the MBA reports.

Source: “U.S. mortgage applications rise as rates ease - MBA,” Reuters (Sept. 18, 2013)

http://realtormag.realtor.org/daily-news/2013/09/18/mortgage-applications-rebound-from-5-year-lows

http://www.rebeccasellsaz.com/

Tuesday, September 17, 2013

Solar Panels Becoming Standard for New Homes

DAILY REAL ESTATE NEWS | TUESDAY, SEPTEMBER 17, 2013

Solar panels are soaring in popularity, almost becoming a standard for new homes in several markets, Bloomberg reports. Six of the 10 largest U.S. homebuilders say they now include solar panels in new construction, and consumer demand for them is expected to soar 56 percent nationwide this year, according to the Solar Energy Industries Association.

“In the next six months, homebuilders in California and the expensive-energy states will be going solar as a standard and just incorporating it into the cost of the house like any other feature,” Jim Petersen, CEO of solar contractor PetersenDean Inc., told Bloomberg.

Installing solar panels during the home-construction phase is about 20 percent cheaper than doing so after the house is built. Solar panels can cost between $10,000 to $20,000, but they can drastically reduce electricity bills.

Builder KB Home has been offering solar panels as an option in several of its communities in California, Nevada, Texas, and Colorado. It will soon do so in Arizona. It’s developing 22 communities in California that include panels as a standard home feature.

In California, the biggest solar state, as many as one in five homes built this year will have solar panels, according to some industry estimates.

Source: “Solar Panel Is Next Granite Countertop for Homebuilders,” Bloomberg (Sept. 11, 2013)

http://realtormag.realtor.org/daily-news/2013/09/17/solar-panels-becoming-standard-for-new-homes

http://www.rebeccasellsaz.com/

The Kallhoff Team

Monday, September 23, 2013

Younger Buyers to Dominate Luxury Market

Friday, September 20, 2013

Mortgage Rates Move Lower as Fed Delays Taper

Thursday, September 19, 2013

Recovery in New-Home Market Excelerates

Wednesday, September 18, 2013

Mortgage Applications Rebound From 5-Year Lows

Tuesday, September 17, 2013

Solar Panels Becoming Standard for New Homes

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