Low Mortgage Rates Are Lingering

DAILY REAL ESTATE NEWS | FRIDAY, SEPTEMBER 12, 2014

The average percentage rates for fixed-rate mortgages inched up slightly this week, but continue to hover near yearly lows.

Mortgage Rates' Impact:

• These Analysts Are Still Bullish on Housing
• Economists Grow More Optimistic About Housing's Outlook
• Understanding and Combatting the Rate Lock-in Threat

Freddie Mac reports the following national averages with mortgage rates for the week ending Sept. 11:

• 30-year fixed-rate mortgages: averaged 4.12 percent, with an average 0.5 point, up slightly from last week’s 4.10 percent average. Last year at this time, 30-year fixed-rate mortgages averaged 4.57 percent.
• 15-year fixed-rate mortgages: averaged 3.26 percent, with an average 0.5, rising from last week’s 3.24 percent average. A year ago, 15-year fixed-rate mortgages averaged 3.59 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 2.99 percent, with an average 0.5 point, rising from last week’s 2.97 percent average. Last year at this time, 5-year ARMs averaged 3.22 percent.
• 1-year ARMs: averaged 2.45 percent, with an average 0.4 point, rising from last week’s 2.40 percent average. A year ago, 1-year ARMs averaged 2.67 percent.

Source: Freddie Mac

http://realtormag.realtor.org/daily-news/2014/09/12/low-mortgage-rates-are-lingering

www.RebeccaSellsAZ.com

Priced to Sell at $30M? Apparently, Yes!

DAILY REAL ESTATE NEWS | FRIDAY, SEPTEMBER 12, 2014

Luxury homes are selling faster than last year, and the homes fetching some of the heftiest price tags are spending less time lingering on the market, according to new data from realtor.com®. An uptick in the stock market and improving economy may be helping to boost the luxury market in recent months.

The High-End Market isBooming:

• Luxury Sales Heat Up Across the Country
• Speculative Building Returns to Luxury Market
• Luxury Home Sales Soar Above Historical Average
• Silicon Valley Dominates Top Luxury Market List

For homes listed less than $1 million, the median age of listings ranged from 80 days to a median of 180 days for homes just under $30 million, according to realtor.com®. But for homes above $30 million, the median time to market dropped to 139 days.

Jonathan Smoke, realtor.com®’s chief economist, says the faster times are often because these high-ticketed homes are marketed quietly before hitting the open market. This market segment is attracting a more engaged group of buyers lately, he says.

For example, in Vail, Colo., homes above $15 million used to sit on the market for more than two years, but now are selling in “months, not years, and sometimes in weeks,” Tye Stockton, a real estate professional with Ascent Sotheby’s International Realty, told The Wall Street Journal. In Greenwich, Conn., Tamar Lurie with Coldwell Banker told The Wall Street Journal that she is expecting about 20 sales above $10 million this year – double the number sold last year.

A $2 million listing in the Hancock Park area of Los Angeles sat on the market last year before it was removed after never hooking a buyer. But this month, the owners put the home back on the market and sold above the asking price in just one day, says Billy Rose, co-founder of the Agency, a real estate brokerage in Beverly Hills, Calif.

Source: “Luxury Homes: Priced to Sell at $30 Million,” The Wall Street Journal (Sept. 10, 2014)

http://realtormag.realtor.org/daily-news/2014/09/12/priced-sell-30m-apparently-yes

www.RebeccaSellsAZ.com

More Singles Than Ever: How It Affects Real Estate

DAILY REAL ESTATE NEWS | THURSDAY, SEPTEMBER 11, 2014

In the age of "selfies," the majority of adults are sticking to themselves. Single Americans now make up more than half of the adult population, the first time the number of singles has passed the 50 percent mark since the government began tracking such data in 1976.

A Force to Be Reckoned With

• Bella DePaulo: Singles Really Want...
• Singles: Why We're Buying Now
• 7 Best Cities for Wealthy Singles

About 124.6 million Americans indicated they were single in August; 50.2 percent were age 16 or older, according to new data from the Bureau of Labor Statistics. The percentage has been gradually trending upward since the beginning of 2013.

The rise of single households has "implications for our economy, society, and politics," writes Edward Yardeni, president of Yardeni Research Inc., in a report called "Selfies." He called the proportion of singles today "remarkable."

What are the implications for real estate? Singles, particularly younger professionals, are more likely to rent than own a home. They are less likely to have children, and the growth in single households likely will exaggerate income inequality, Yardeni notes.

"While they have less household earnings than married people, they also have fewer expenses, especially if there are no children in their households," Yardeni writes in his report.

The number of never-married adult Americans has been on the rise, too, increasing to 30.4 percent from 22.1 percent in 1976. The number of divorced, separated, or widowed adults also has risen up to 19.8 percent from 15.3 percent.

Some real estate analysts are expecting an increase in singles heading into home ownership in the coming years. For example, single women make up the second largest segment of home purchases, with one out of every five homes purchased by a single woman, according to National Association of REALTORS® data. More than 25 million single women over the age of 45 — who may be either divorced, widowed, or never married — are also making up a growing number of home owners, real estate professionals report.

Some builders are even catering to this growing segment, reportedly adding two master bedrooms to appeal to the 40 percent of single women who choose to have non-romantic roommates, according to AARP surveys. 

Source: “Is Everybody Single? More Than Half the U.S. Now, Up From 37% in ’76,” Bloomberg News (Sept. 8, 2014) and REALTOR® Magazine Daily News

http://realtormag.realtor.org/daily-news/2014/09/11/more-singles-ever-how-it-affects-real-estate

www.RebeccaSellsAZ.com

Mortgage Rates Stay Near Yearly Lows

DAILY REAL ESTATE NEWS | FRIDAY, SEPTEMBER 05, 2014

For the third consecutive week, the 30-year fixed-rate mortgage held steady, with borrowing costs for home buyers and refinancers remaining near its lows for the year.

Freddie Mac reports the following national averages with mortgage rates for the week ending Sept. 4:

• 30-year fixed-rate mortgages: averaged 4.10 percent, with an average 0.5 point, holding the same as last week. Last year at this time, 30-year rates averaged 4.57 percent.
• 15-year fixed-rate mortgages: averaged 3.24 percent, with an average 0.5 point, dropping from last week's 3.25 percent average. A year ago, 15-year rates averaged 3.59 percent.
•  5-year hybrid adjustable-rate mortgages: averaged 2.97 percent, with an average 0.5 point, holding the same average from last week. Last year at this time, 5-year ARMs averaged 3.28 percent.
• 1-year ARMs: averaged 2.40 percent, with an average 0.4 point, rising from last week's 2.39 percent average. A year ago, 1-year ARMs averaged 2.71 percent.

Source: Freddie Mac

http://realtormag.realtor.org/daily-news/2014/09/05/mortgage-rates-stay-near-yearly-lows

www.RebeccaSellsAZ.com

Where Homes Are Most Affordable

DAILY REAL ESTATE NEWS | FRIDAY, SEPTEMBER 05, 2014

Home affordability varies greatly depending on where a buyer lives, as well as other factors. Using RealtyTrac's income-to-price affordability ratios from more than 2,000 counties, 24/7 Wall St. pinpointed where home affordability is highest. In fact, in some markets, home owners may need to use only about 3 percent of their income to afford a median-priced home.

The Affordability Crisis

• Spring Sees Dive in Housing Affordability
• Brown, Castro Discuss Housing Affordability and Access
• 'Affordability Issues Are Real, Major Hurdle'

Unsurprisingly, San Francisco County in California had the least number of affordable homes in the nation. In San Francisco, the median selling price for houses and condos recently reached the million-dollar mark. 

But on the opposite end of the spectrum, the following seven markets are considered some of the most affordable in the nation. (The affordability rate is the percentage of the county's estimated median household income needed to make monthly payments — including mortgage, property taxes, and homeowners insurance — on a median-priced residential property.)

1. Chattooga County, Ga.
   Affordability rate: 3.75%
   Household median income: $41,864
2. Lake County, Tenn.
   Affordability rate: 5.75%
   Household median income: $33,512
3. Edgecombe County, N.C.
   Affordability rate: 6.17%
   Household median income: $40,726
4. Upson County, Ga.
   Affordability rate: 6.31%
   Household median income: $37,601
5. Barnwell County, S.C.
   Affordability rate: 6.81%
   Household median income: $35,219
6. Obion County, Tenn.
   Affordability rate: 6.88%
   Household median income: $45,919
7. Lamar County, Ga.
   Affordability rate: 6.92%
   Household median income: $33,661

Source: “The 10 Most Affordable Markets in America,” 24/7 Wall St. (Sept. 4, 2014)

http://realtormag.realtor.org/daily-news/2014/09/05/where-homes-are-most-affordable

www.RebeccaSellsAZ.com

Where Autumn is Hot for House Hunting

DAILY REAL ESTATE NEWS | THURSDAY, SEPTEMBER 04, 2014

Home searches often slow down in the autumn season, but not everywhere.

A new study by Trulia shows that of the 500 largest U.S. metros, some markets see house-hunting pick up in the fall — particularly markets in New England, the San Francisco Bay area, and New York state.

A fall home-sale surge? Find out why this brokerage is predicting one.

In analyzing home searches on its site, Trulia found the following metros often have the highest numbers in autumn:

1. Peabody, Mass.
2. Worcester, Mass.
3. San Francisco
4. Oakland, Calif.
5. Seattle
6. San Jose, Calif.
7. Albany, N.Y.
8. Long Island, N.Y.
9. Buffalo, N.Y.
10. Gary, Ind.

Some smaller markets also find autumn to be their prime house-hunting season, particularly counties in vacation spots near mountain or forest attractions and ski resorts. Some of the smaller markets to see a boost in the autumn are Lincoln, N.M.; Teton, Wyo.; and Watauga, N.C.

Meanwhile, the housing markets that often see search activity drop the most in the autumn tend to be in college towns, such as College Station-Bryan, Texas; Columbia, Mo.; and Iowa City, Iowa. Also, search activity often slows in Florida vacation spots in autumn, such as Key West, Punta Gorda, and Naples-Marco Island, according to the analysis.

Source: “House Hunters Head for the Hills After Labor Day,” Trulia Trends (Sept. 2, 2014)

http://realtormag.realtor.org/daily-news/2014/09/04/where-autumn-hot-for-house-hunting

www.RebeccaSellsAZ.com

Student Debt Burden Holding First-Time Buyers Back

DAILY REAL ESTATE NEWS | WEDNESDAY, SEPTEMBER 03, 2014

Carrying student loan debt is making it more difficult for many young professionals to qualify for a mortgage. Recent college graduates with student loan debt who want to own a home will need to earn about one-third more annually — or $8,969 more — than those who are debt-free, according to new research by the real estate data firm RealtyTrac.

The Student Loan Debt Crisis

Student Loans Causing Housing Shift, CFPB Says

Study: Student Debt Holds Buyers Back, But Doesn't Need To

5 States with the Highest Levels of Student Debt

The Plight of First-Time Buyers

“To overcome the additional debt from student loans, indebted college graduates need to make more income than college graduates without student loans to be able to afford a home,” says Daren Blomquist, a vice president at RealtyTrac. For its analysis, RealtyTrac factored in the median home price for each state and county and calculated the minimum amount of income needed to qualify for a loan to purchase a home at that price.

RealtyTrac found that graduates with student loans who are earning the median U.S. household income can afford to make the monthly payments on a median-priced home in 96 percent of the 494 county markets it analyzed.

But many graduates with student loans are saddled with high debts and are struggling to break ahead.

The average graduate in 2014 carried $33,000 in debt, an amount that has tripled over the last 20 years, according to Edvisors.com, a network of websites about planning and paying for college. The average starting salary for an employee holding a bachelor’s degree is around $45,000.

“The average student loan debt varies from state to state, and somewhat counterintuitively, some of the most expensive states for housing also have the lowest average student loan debt,” Blomquist says. For example, while California has one of the lowest levels of student loan debt, it boasts some of the highest home prices in the nation.

In some cases, college grads with student loan debts are having to earn a lot more money than their debt-free counterparts if they want to buy a home. According to RealtyTrac’s analysis, the following states are where recent graduates with student loans need to make even more income to match the purchasing power of students without loans:

• Connecticut: 58%
• Rhode Island: 56%
• Michigan: 55%
• Ohio: 52%
• Pennsylvania: 49%

Student loan debt is a pressing hurdle for graduates not only in purchasing a home but also in building wealth over the long term. For example, households headed by young, college-educated adult without any student debt have about seven times the typical net worth ($64,700) than households headed by young, college-educated adults with student debt ($8,700), according to data from the Pew Research Center. About a quarter of households headed by an adult under 40 has student debt, a record high, according to Pew.

Source: “College Grads Face High Hurdles to Buying First Homes,” MarketWatch/The Wall Street Journal (Aug. 28, 2014)

http://realtormag.realtor.org/daily-news/2014/09/03/student-debt-burden-holding-first-time-buyers-back

www.RebeccaSellsAZ.com