interesting report on trends for people moving westward! from Denver Business Journal...
When it comes to people moving into states, Colorado ranks in the nation's top 10.
According to U-Haul, Colorado ranked No. 9 nationally for inbound migration. In 2016, the state ranked No. 11 and a year earlier, it ranked No. 22.
Arriving trucks accounted for 50.3 percent of all one-way U-Haul traffic in Colorado, U-Haul said, adding that its growth state calculations are "calculated by the net gain of one-way U-Haul truck rentals entering a state versus leaving a state during a calendar year."
"Texas was the No. 1 Growth State for the second year in a row. Florida, Arkansas, South Carolina and Tennessee rounded out the top five," U-Haul said.
"I've been in this area four-plus years and the growth I've seen is amazing. You used to drive down the Interstate 25 corridor and see open spaces everywhere. Now you hardly pass a dirt lot. There are no gaps. Colorado is bursting at the seams. Denver is overflowing so much that folks are moving to the outskirts and into Westminster and Thornton," said Mike Blau, U-Haul Company of Northwest Colorado president, in a statement.
U-Haul's figures jibe with similar figures released last week by United Van Lines.
That company also ranked Colorado as the No. 9 inbound migration state in the country.
Thursday, January 25, 2018
Denver metro area for-sale housing stock at an all time low, part of nationwide pinch, analysts say
Looking to sell? Still a great time time to sell....reports from Denver Post.com
Denver metro area for-sale housing stock at an all time low, part of nationwide pinch, analysts say
Americans are buying RVs, boats and personal aircraft at an unprecedented clip, data shows. Racehorse purchases have ticked up to prerecession levels.
Those are a few unconventional signs of the country’s booming economy and strong consumer confidence, economist Elliot Eisenberg shared at the Denver Metro Association of Realtors 2018 economic summit Thursday.
One problem is sucking the wind from the country’s economic sales, Eisenberg said, and it’s one the Denver area is all too familiar with: A chronic shortage of for-sale housing, particularly the affordable kind.
“We built 850,000 single-family homes last year,” the economist said during his presentation. “That’s a recessionary low level. This is nuts.”
According to Eisenberg, homebuilders came up about 300,000 homes short of the national need in 2017. He expects new construction to fall 250,000 rooftops short of need in 2018, compounding a national shortage already of more than 4 million houses.
Statistics he shared from the National Association of Realtors showed that national housing inventory has fallen for 30 consecutive months, declining 6.4 percent in 2017.
In a conundrum that certainly resonates in Colorado, home prices are outpacing wage increases 2-to-1. When developers do build single-family homes, they’re building higher-end products to maximize profit in the face of rising regulations and labor costs.
“You can build million-dollar homes. It’s good for the economy, but it’s not as good as building five $200,000 homes, because folks can’t get in,” Eisenberg said.
Eisenberg provided the macro view of a problem the Denver metro area has been experiencing in micro for years.
“Inventory is one of our biggest concerns we have going today,” Steve Danyliw, chairman of the association of Realtors’ market trends committee, said Thursday, pointing to a year-end stock of 3,854 properties on the market, the lowest level since record-keeping began in 1985. “Pretty much for the last four years, we have been in a substantial deficit in terms of inventory.”
Danyliw, owner/broker with Littleton-based Danyliw & Associates, highlighted association statistics that showed that if no new single-family homes were added to the market in January, the metro area would sell out of housing stock by the first week of February. The problem is worse for cheaper properties. The stock of homes selling for $200,000 to $300,000 would sell out in around 10 days.
Analysts say it’s no bubble in Denver either. Credit is hard to come by and job growth is strong even if wages aren’t keeping up, data shows. A major drag on the ability to meet the demand — nationally and locally — is a worker shortage in the construction industry. A recent survey of industry professionals shows 56 percent of Colorado firms in the construction industry view finding enough workers as their biggest concern in 2018.
Despite the grim outlook for meeting demand, Danyliw did highlight one positive trend for would-be homebuyers: Median home prices in metro Denver — while at an all-time high of more than $434,000 and rising — grew more slowly last year than in 2015 or 2016. After rising by 13.3 percent in January 2015, the pace of price growth dropped to 8.3 percent in December 2017, with signs it will continue to drop to more sustainable levels this year.
“This is not necessarily saying that there is a bubble that is about to burst, but what it does say is the rapid rate is growth is starting to slow,” he said.
Denver metro area for-sale housing stock at an all time low, part of nationwide pinch, analysts say
Americans are buying RVs, boats and personal aircraft at an unprecedented clip, data shows. Racehorse purchases have ticked up to prerecession levels.
Those are a few unconventional signs of the country’s booming economy and strong consumer confidence, economist Elliot Eisenberg shared at the Denver Metro Association of Realtors 2018 economic summit Thursday.
One problem is sucking the wind from the country’s economic sales, Eisenberg said, and it’s one the Denver area is all too familiar with: A chronic shortage of for-sale housing, particularly the affordable kind.
“We built 850,000 single-family homes last year,” the economist said during his presentation. “That’s a recessionary low level. This is nuts.”
According to Eisenberg, homebuilders came up about 300,000 homes short of the national need in 2017. He expects new construction to fall 250,000 rooftops short of need in 2018, compounding a national shortage already of more than 4 million houses.
Statistics he shared from the National Association of Realtors showed that national housing inventory has fallen for 30 consecutive months, declining 6.4 percent in 2017.
In a conundrum that certainly resonates in Colorado, home prices are outpacing wage increases 2-to-1. When developers do build single-family homes, they’re building higher-end products to maximize profit in the face of rising regulations and labor costs.
“You can build million-dollar homes. It’s good for the economy, but it’s not as good as building five $200,000 homes, because folks can’t get in,” Eisenberg said.
Eisenberg provided the macro view of a problem the Denver metro area has been experiencing in micro for years.
“Inventory is one of our biggest concerns we have going today,” Steve Danyliw, chairman of the association of Realtors’ market trends committee, said Thursday, pointing to a year-end stock of 3,854 properties on the market, the lowest level since record-keeping began in 1985. “Pretty much for the last four years, we have been in a substantial deficit in terms of inventory.”
Danyliw, owner/broker with Littleton-based Danyliw & Associates, highlighted association statistics that showed that if no new single-family homes were added to the market in January, the metro area would sell out of housing stock by the first week of February. The problem is worse for cheaper properties. The stock of homes selling for $200,000 to $300,000 would sell out in around 10 days.
Analysts say it’s no bubble in Denver either. Credit is hard to come by and job growth is strong even if wages aren’t keeping up, data shows. A major drag on the ability to meet the demand — nationally and locally — is a worker shortage in the construction industry. A recent survey of industry professionals shows 56 percent of Colorado firms in the construction industry view finding enough workers as their biggest concern in 2018.
Despite the grim outlook for meeting demand, Danyliw did highlight one positive trend for would-be homebuyers: Median home prices in metro Denver — while at an all-time high of more than $434,000 and rising — grew more slowly last year than in 2015 or 2016. After rising by 13.3 percent in January 2015, the pace of price growth dropped to 8.3 percent in December 2017, with signs it will continue to drop to more sustainable levels this year.
“This is not necessarily saying that there is a bubble that is about to burst, but what it does say is the rapid rate is growth is starting to slow,” he said.
Thursday, January 4, 2018
Metro Denver home sales and prices hit new high in 2017; inventory at record low
good summary on 2017 Metro Denver market from Denver Post....
Average home sale price was nearly half a million dollars in 2017
Home sales and prices in metro Denver once again hit record highs in 2017, but the pace of price gains slowed as the market reached a higher altitude, according to the latest Denver Metro Real Estate Market Trends Report.
A record 57,788 single-family homes and condos sold across metro Denver last year, an increase of 2.93 percent form 2016, and ahead of the 2015 record of 56,062.
The average price of a single-family home sold last year reached $480,140, an increase of 8.7 percent from 2016. The median sold price, the point where half the homes sell for more and half for less, was $410,000, an increase of 7.9 percent.
Condo prices rose even more on a year-to-date basis, hitting an average sales price of $318,904 last year, up 10 percent from 2016, and a median sales price of $270,000, up 12.15 percent from 2016.
The uptick in the number of sales combined with higher prices pushed the total sales volume over $25 billion, up from $22.2 billion in 2016, $20.3 billion in 2015 and $17.6 billion in 2014.
In a sign of how far the market has come, the homes sales volume back in 2011 was around $9.9 billion, according to the report from the Denver Metro Association of Realtors. The report is based primarily on resales of existing homes but includes a small number of new homes.
Inventory shortages continue to drive price gains. As the year ended, there were only 3,854 homes on the market, a record low and slim pickings in a metro area of 3 million residents. Between 1985 and 2016, buyers had on average 13,702 homes available at the end of December.
“The lack of active listings should concern us all,” said Steve Danyliw, chairman of the DMAR’s Market Trends Committee, in comments included with the report. “Only time will tell if more sellers will choose to stay in their current homes, afraid that they won’t be able to find a replacement.”
Danyliw predicted that double-digit price increases, which occurred in 2015 and 2016, are a thing of the past as higher prices push more potential buyers out of the market. But any kind of slowing would work in the favor of buyers.
Average home sale price was nearly half a million dollars in 2017
Home sales and prices in metro Denver once again hit record highs in 2017, but the pace of price gains slowed as the market reached a higher altitude, according to the latest Denver Metro Real Estate Market Trends Report.
A record 57,788 single-family homes and condos sold across metro Denver last year, an increase of 2.93 percent form 2016, and ahead of the 2015 record of 56,062.
The average price of a single-family home sold last year reached $480,140, an increase of 8.7 percent from 2016. The median sold price, the point where half the homes sell for more and half for less, was $410,000, an increase of 7.9 percent.
Condo prices rose even more on a year-to-date basis, hitting an average sales price of $318,904 last year, up 10 percent from 2016, and a median sales price of $270,000, up 12.15 percent from 2016.
The uptick in the number of sales combined with higher prices pushed the total sales volume over $25 billion, up from $22.2 billion in 2016, $20.3 billion in 2015 and $17.6 billion in 2014.
In a sign of how far the market has come, the homes sales volume back in 2011 was around $9.9 billion, according to the report from the Denver Metro Association of Realtors. The report is based primarily on resales of existing homes but includes a small number of new homes.
Inventory shortages continue to drive price gains. As the year ended, there were only 3,854 homes on the market, a record low and slim pickings in a metro area of 3 million residents. Between 1985 and 2016, buyers had on average 13,702 homes available at the end of December.
“The lack of active listings should concern us all,” said Steve Danyliw, chairman of the DMAR’s Market Trends Committee, in comments included with the report. “Only time will tell if more sellers will choose to stay in their current homes, afraid that they won’t be able to find a replacement.”
Danyliw predicted that double-digit price increases, which occurred in 2015 and 2016, are a thing of the past as higher prices push more potential buyers out of the market. But any kind of slowing would work in the favor of buyers.
Tuesday, December 19, 2017
Is it possible to buy/own land in Antarctica?
interesting article on one part of the world not owned by anyone specifically...from goodnature.nathab.com
Antarctica: How Long Can It Remain “Unowned”?
Antarctica is the Earth’s only continent without a native human population, and no one country can claim to own it. Unique in the world, it is a land dedicated to science and all nations.
However, that could soon change. With the 2048 renewal date for the Madrid Protocol fast approaching, there are already signs that countries may be vying for possession of territory there. Complicating this issue is that as the climate continues to rapidly warm, oil and gas deposits that Antarctica may have—first hinted at in the 1970s—might finally be able to be extracted.
The energy needs of the world are increasing. Is thinking that a whole continent can remain dedicated solely to science now unrealistic?
The Antarctic Treaty
Antarctica—although the Argentine, Chilean and British claims partially overlapped. In the 1957-1958 International Geophysical Year, Belgium, Japan, South Africa, the U.S.S.R. (now Russia), the United States and the original claimants met. On December 1, 1959, these 12 countries signed the Antarctic Treaty. In part, the treaty stipulated that:
Antarctica is to be used for peaceful purposes only; no military measures are permitted (the treaty does allow, however, some commercial activity: fishing is permitted in certain areas of the Southern Ocean and tourists can visit Antarctica, as long as their expeditions are approved by their national Antarctic programs).
Nuclear explosions or dumping of radioactive wastes are banned.
There is complete freedom of scientific investigation and cooperation.
Claims are “frozen”; no new or enlarged claims are permitted (15 percent of Antarctica is still unclaimed). It does get tricky here: while the original claimants are the only nations allowed to have claims, they can’t assert them. So if, for example, Sweden wants to build a base, it can go to the treaty nations as a whole to present a proposal.
A decision-making role is held only by nations carrying out substantive scientific research activity.
Today, more than 45 nations are signatories.
Penguins and ice shelves
In 1991, the Protocol on Environmental Protection to the Antarctic Treaty (also known as the Environmental Protocol or Madrid Protocol) was adopted. It entered into force in 1998, and it is the main instrument concerning conservation and management of biodiversity in Antarctica. Notably, it prohibits mining. If requested, however, in 50 years time a review conference could decide to modify the mining prohibition, provided that “at least three-quarters of the current consultative parties to the Antarctic Treaty agree, a legal regime for controlling mining is in force and the sovereign interests of parties are safeguarded.” That 50-year term expires in 2048.
Unfortunately, disagreements between countries about commercial rights to the continent are bound to increase in the future. A study first published online in 2012 in the sixth edition of the Nature Geoscience journal identified central West Antarctica as one of the fastest-warming regions on Earth. The researchers presented a complete temperature record from Antarctica’s Byrd Station and stated that it “reveals a linear increase in annual temperature between 1958 and 2010 by 2.4 plus or minus 1.2 degrees centigrade.”
Back in 2007, the United Kingdom made a submission to the United Nations for sovereignty of 386,000 square miles of seabed off Antarctica, some say in defiance of the spirit of the Antarctic Treaty. While it is too difficult to extract any useful minerals from that area at the moment, technological innovations and environmental changes due to climate change in the Southern Ocean could make drilling an economically viable activity within a few decades.
Recent events such as these have given rise to the fear that countries are subtly working to position themselves for that moment in 2048, when the consultative parties may revise the Madrid Protocol. They point to China, which has already built four Antarctic research stations and has scouted the construction site for its fifth. And the United Kingdom and Argentina continue to have diplomatic tensions over the Falkland Islands.
Who owns Antarctica? Right now, it could be said, that the penguins and the ice shelves do. But that might soon change.
Antarctica: How Long Can It Remain “Unowned”?
Antarctica is the Earth’s only continent without a native human population, and no one country can claim to own it. Unique in the world, it is a land dedicated to science and all nations.
However, that could soon change. With the 2048 renewal date for the Madrid Protocol fast approaching, there are already signs that countries may be vying for possession of territory there. Complicating this issue is that as the climate continues to rapidly warm, oil and gas deposits that Antarctica may have—first hinted at in the 1970s—might finally be able to be extracted.
The energy needs of the world are increasing. Is thinking that a whole continent can remain dedicated solely to science now unrealistic?
The Antarctic Treaty
Antarctica—although the Argentine, Chilean and British claims partially overlapped. In the 1957-1958 International Geophysical Year, Belgium, Japan, South Africa, the U.S.S.R. (now Russia), the United States and the original claimants met. On December 1, 1959, these 12 countries signed the Antarctic Treaty. In part, the treaty stipulated that:
Antarctica is to be used for peaceful purposes only; no military measures are permitted (the treaty does allow, however, some commercial activity: fishing is permitted in certain areas of the Southern Ocean and tourists can visit Antarctica, as long as their expeditions are approved by their national Antarctic programs).
Nuclear explosions or dumping of radioactive wastes are banned.
There is complete freedom of scientific investigation and cooperation.
Claims are “frozen”; no new or enlarged claims are permitted (15 percent of Antarctica is still unclaimed). It does get tricky here: while the original claimants are the only nations allowed to have claims, they can’t assert them. So if, for example, Sweden wants to build a base, it can go to the treaty nations as a whole to present a proposal.
A decision-making role is held only by nations carrying out substantive scientific research activity.
Today, more than 45 nations are signatories.
Penguins and ice shelves
In 1991, the Protocol on Environmental Protection to the Antarctic Treaty (also known as the Environmental Protocol or Madrid Protocol) was adopted. It entered into force in 1998, and it is the main instrument concerning conservation and management of biodiversity in Antarctica. Notably, it prohibits mining. If requested, however, in 50 years time a review conference could decide to modify the mining prohibition, provided that “at least three-quarters of the current consultative parties to the Antarctic Treaty agree, a legal regime for controlling mining is in force and the sovereign interests of parties are safeguarded.” That 50-year term expires in 2048.
Unfortunately, disagreements between countries about commercial rights to the continent are bound to increase in the future. A study first published online in 2012 in the sixth edition of the Nature Geoscience journal identified central West Antarctica as one of the fastest-warming regions on Earth. The researchers presented a complete temperature record from Antarctica’s Byrd Station and stated that it “reveals a linear increase in annual temperature between 1958 and 2010 by 2.4 plus or minus 1.2 degrees centigrade.”
Back in 2007, the United Kingdom made a submission to the United Nations for sovereignty of 386,000 square miles of seabed off Antarctica, some say in defiance of the spirit of the Antarctic Treaty. While it is too difficult to extract any useful minerals from that area at the moment, technological innovations and environmental changes due to climate change in the Southern Ocean could make drilling an economically viable activity within a few decades.
Recent events such as these have given rise to the fear that countries are subtly working to position themselves for that moment in 2048, when the consultative parties may revise the Madrid Protocol. They point to China, which has already built four Antarctic research stations and has scouted the construction site for its fifth. And the United Kingdom and Argentina continue to have diplomatic tensions over the Falkland Islands.
Who owns Antarctica? Right now, it could be said, that the penguins and the ice shelves do. But that might soon change.
Monday, December 18, 2017
12 Things That Trip Up Homebuyers
Looking to buy in 2018...here's some points to take under consideration...from usnews.com
Buying a house is supposed to be the American dream, but it can turn into a nightmare for buyers who go into the process with unrealistic expectations and insufficient information.
"The process of buying a home [can be] excruciating," says Craig Evans, an Ally Bank mortgage executive with more than 30 years of experience in the industry. There are some things that seem to trip up homebuyers again and again. Here are the mistakes real estate experts say people make when buying a home:
1. Failing to get pre-approved. Before they even start looking at homes, buyers should get pre-approved for a mortgage. Not only does this ensure they are visiting houses they can afford, it also avoids the heartbreak that can come from missing out on a hot property when multiple people are placing offers. "There's nothing worse than having a buyer find the home of their dreams, and they are not pre-approved and need to place an offer in 12 hours," says Tim Savoy, a sales associate with Coldwell Banker Residential Brokerage in the District of Columbia.
2. Neglecting to factor in all the costs. One reason for the housing market collapse a decade ago was the number of homebuyers who purchased properties with costs beyond their means. "Lenders own a lot of the problems that happened in the past," Evans says. "We put [people] in homes they really couldn't afford." Regulatory changes were enacted to help avoid a repeat of that situation, but buyers still bear responsibility for ensuring they can afford all the costs of homeownership. Those include property taxes, insurance, closing costs and association dues.
3. Not shopping for the best mortgage product. Evans says there are more than 6,000 places to get a mortgage in the United States, and some companies may offer only a limited number of products. For the best deal, homebuyers should check with at least two or three lenders for their rates and terms.
What's more, buyers should be sure to read the fine print and take into consideration all their closing costs. For example, points are fees paid by consumers in exchange for a lower interest rate. "Some lenders might promise a buyer a great rate, but don't disclose how many points need to be bought at the table," Savoy says.
4. Opting out of the digital mortgage process. While not every lender offers a digital option for income and asset verification, consumers should consider opting in when it's available. "It's startling if you have to go through the manual process," says Laura Williamson, senior vice president of client services for mortgage solutions firm Digital Risk. Lenders who can electronically verify information may be able to close in as little as 10 days, compared to 45 days for those going through manual verification. It also eliminates a headache for borrowers who otherwise have to dig out months of bank statements and pay stubs to prove they can afford the mortgage.
5. Thinking your mortgage company will remain the same. The mortgage company that approves the loan might not be the one receiving subsequent payments. "Consumers should know it is very customary for loans to be sold after closing," Williamson says. Homebuyers should watch for a notice of a mortgage sale to ensure their payments are routed correctly and late fees are avoided.
6. Seeing paperwork for the first time at closing. Sitting down to a closing with a stack of papers to sign can feel like a high-stakes experience. Homebuyers have brought their money to the table and are planning to walk away with the keys to a new property. "All these things create pressure to just sign," says Lionel Urban, vice president of product management for mortgage provider PCLender. However, that paperwork could include provisions, such as releases of liability, that aren't favorable to buyers. "The right thing to do is get copies of the documents days in advance," Urban says. That way buyers have plenty of time to review the paperwork or have someone they trust look it over prior to signing.
7. Not understanding property restrictions. Not every mistake homebuyers make is financial in nature. Some people fail to realize the property they've selected comes with a laundry list of restrictions. "If it's a co-op, as are most apartments in New York, there are a lot of rules," says Phillip Salem, a professional real estate salesperson for Triplemint in New York City. Those rules may restrict everything from what improvements an owner can make to when trash can be taken out. Homeowners associations can also make similar restrictions, and both associations and co-ops can charge residents substantial monthly or annual fees.
8. Using the wrong agent. A lot of mistakes can be avoided by having the right agent or broker helping with the buying process. "A first-time homebuyer needs someone who's going to spend a whole lot of time with them," Evans says. Meanwhile, a repeat buyer who is investing in real estate might not need much assistance with the selection process, but could use someone who is savvy about financing options.
9. Visiting the property only once. A single showing will only tell you so much about a property. At 12 p.m. on a weekday, the neighbors might all be gone and the traffic minimal. "I always make sure my clients see an apartment a few times at different times of the day," Salem says. That avoids situations in which someone moves in only to realize that the walls are paper thin or the street gridlocks during rush hour.
10. Forgetting to consider uses of nearby properties. When viewing a home, people should consider how nearby properties can affect their quality of life. Living near a school, for instance, may be convenient, but will traffic and noise from Friday night football games be a nuisance?
While no one can predict the future, homebuyers should also remember that neighboring properties can change over time. "You might have this amazing view, but come to find out there is a 70-story high-rise going up in front of [you]," Salem says. Likewise, fields can become subdivisions and vacant lots can turn into businesses. Check with local zoning administrators to find out what's allowed in your area and whether any potential projects are already in the works.
11. Skipping a home inspection. In a seller's market, waiving a home inspection may be one way to make an offer more attractive. However, that tactic could backfire if a buyer later discovers serious problems with the property. Along with getting the inspection, be realistic about how its findings affect the affordability of a home. "If you're really tight on your finances and getting into a home that needs repairs, can you afford those repairs?" Urban asks.
12. Buying when you should be renting. The biggest mistake can be simply buying a house in the first place. "It's not cheap to buy a house," Evans says. He estimates there could be as much as $10,000 in transaction costs associated with the purchase of a $300,000 house. That's in addition to moving expenses and other incidental costs. While buying a house can be a wise investment for those ready to settle down long term, the cost may not make sense for those planning to move in two or three years. In those instances, renting may be more cost-effective.
Buying a home can be an exciting time in a person's life, and by avoiding these pitfalls, it can be a positive experience as well.
Buying a house is supposed to be the American dream, but it can turn into a nightmare for buyers who go into the process with unrealistic expectations and insufficient information.
"The process of buying a home [can be] excruciating," says Craig Evans, an Ally Bank mortgage executive with more than 30 years of experience in the industry. There are some things that seem to trip up homebuyers again and again. Here are the mistakes real estate experts say people make when buying a home:
1. Failing to get pre-approved. Before they even start looking at homes, buyers should get pre-approved for a mortgage. Not only does this ensure they are visiting houses they can afford, it also avoids the heartbreak that can come from missing out on a hot property when multiple people are placing offers. "There's nothing worse than having a buyer find the home of their dreams, and they are not pre-approved and need to place an offer in 12 hours," says Tim Savoy, a sales associate with Coldwell Banker Residential Brokerage in the District of Columbia.
2. Neglecting to factor in all the costs. One reason for the housing market collapse a decade ago was the number of homebuyers who purchased properties with costs beyond their means. "Lenders own a lot of the problems that happened in the past," Evans says. "We put [people] in homes they really couldn't afford." Regulatory changes were enacted to help avoid a repeat of that situation, but buyers still bear responsibility for ensuring they can afford all the costs of homeownership. Those include property taxes, insurance, closing costs and association dues.
3. Not shopping for the best mortgage product. Evans says there are more than 6,000 places to get a mortgage in the United States, and some companies may offer only a limited number of products. For the best deal, homebuyers should check with at least two or three lenders for their rates and terms.
What's more, buyers should be sure to read the fine print and take into consideration all their closing costs. For example, points are fees paid by consumers in exchange for a lower interest rate. "Some lenders might promise a buyer a great rate, but don't disclose how many points need to be bought at the table," Savoy says.
4. Opting out of the digital mortgage process. While not every lender offers a digital option for income and asset verification, consumers should consider opting in when it's available. "It's startling if you have to go through the manual process," says Laura Williamson, senior vice president of client services for mortgage solutions firm Digital Risk. Lenders who can electronically verify information may be able to close in as little as 10 days, compared to 45 days for those going through manual verification. It also eliminates a headache for borrowers who otherwise have to dig out months of bank statements and pay stubs to prove they can afford the mortgage.
5. Thinking your mortgage company will remain the same. The mortgage company that approves the loan might not be the one receiving subsequent payments. "Consumers should know it is very customary for loans to be sold after closing," Williamson says. Homebuyers should watch for a notice of a mortgage sale to ensure their payments are routed correctly and late fees are avoided.
6. Seeing paperwork for the first time at closing. Sitting down to a closing with a stack of papers to sign can feel like a high-stakes experience. Homebuyers have brought their money to the table and are planning to walk away with the keys to a new property. "All these things create pressure to just sign," says Lionel Urban, vice president of product management for mortgage provider PCLender. However, that paperwork could include provisions, such as releases of liability, that aren't favorable to buyers. "The right thing to do is get copies of the documents days in advance," Urban says. That way buyers have plenty of time to review the paperwork or have someone they trust look it over prior to signing.
7. Not understanding property restrictions. Not every mistake homebuyers make is financial in nature. Some people fail to realize the property they've selected comes with a laundry list of restrictions. "If it's a co-op, as are most apartments in New York, there are a lot of rules," says Phillip Salem, a professional real estate salesperson for Triplemint in New York City. Those rules may restrict everything from what improvements an owner can make to when trash can be taken out. Homeowners associations can also make similar restrictions, and both associations and co-ops can charge residents substantial monthly or annual fees.
8. Using the wrong agent. A lot of mistakes can be avoided by having the right agent or broker helping with the buying process. "A first-time homebuyer needs someone who's going to spend a whole lot of time with them," Evans says. Meanwhile, a repeat buyer who is investing in real estate might not need much assistance with the selection process, but could use someone who is savvy about financing options.
9. Visiting the property only once. A single showing will only tell you so much about a property. At 12 p.m. on a weekday, the neighbors might all be gone and the traffic minimal. "I always make sure my clients see an apartment a few times at different times of the day," Salem says. That avoids situations in which someone moves in only to realize that the walls are paper thin or the street gridlocks during rush hour.
10. Forgetting to consider uses of nearby properties. When viewing a home, people should consider how nearby properties can affect their quality of life. Living near a school, for instance, may be convenient, but will traffic and noise from Friday night football games be a nuisance?
While no one can predict the future, homebuyers should also remember that neighboring properties can change over time. "You might have this amazing view, but come to find out there is a 70-story high-rise going up in front of [you]," Salem says. Likewise, fields can become subdivisions and vacant lots can turn into businesses. Check with local zoning administrators to find out what's allowed in your area and whether any potential projects are already in the works.
11. Skipping a home inspection. In a seller's market, waiving a home inspection may be one way to make an offer more attractive. However, that tactic could backfire if a buyer later discovers serious problems with the property. Along with getting the inspection, be realistic about how its findings affect the affordability of a home. "If you're really tight on your finances and getting into a home that needs repairs, can you afford those repairs?" Urban asks.
12. Buying when you should be renting. The biggest mistake can be simply buying a house in the first place. "It's not cheap to buy a house," Evans says. He estimates there could be as much as $10,000 in transaction costs associated with the purchase of a $300,000 house. That's in addition to moving expenses and other incidental costs. While buying a house can be a wise investment for those ready to settle down long term, the cost may not make sense for those planning to move in two or three years. In those instances, renting may be more cost-effective.
Buying a home can be an exciting time in a person's life, and by avoiding these pitfalls, it can be a positive experience as well.
Zillow’s 6 predictions for the 2018 housing market
here's some interesting consideration for 2018 from Zillow and inman news...
Slower home price growth, continued inventory issues and evolving design trends are ahead
If only we could stare into a crystal ball to see exactly what 2018 holds for the housing market. More inventory? Yes! Slower home price growth? Absolutely! Oprah giving everyone a free house? That would be a dream come true.
For now we have forecasts from top economists and housing experts. And Zillow chief economist Svenja Gudell offered hers on behalf of Zillow.
“We’re on the other side of the housing recovery, and the real estate market looks quite different than it did 15 or even five years ago,” Gudell said in a statement. “We have a huge generation entering the market. They really want to be homeowners, and they’re faced with an inventory crisis that leaves them with few options.”
“Builders won’t ignore this hungry market, and we’ll start to see a rise in new construction at the more affordable end, instead of all the luxury buildings we’ve seen lately,” she added.
“However, builders are also facing high costs, so instead of adding density in cities where zoning laws and land costs often preclude affordable building, we’ll see the suburbs grow and expand outward.”
Here are the six things Gudell expects to happen in 2018:
1. Inventory shortages will drive the housing market. Gudell says low inventory will continue to push up home prices and serve as a barrier for first-time homebuyers who struggle to save for a down payment.
Furthermore, this demographic of buyers will struggle to compete against more seasoned buyers who have profited from a home sale and know how to negotiate their way to the top.
Lastly, Gudell says there are 12 percent fewer homes to choose from nationwide than there were a year ago, and 51 percent of for-sale properties are in the top one-third of home values, which are out of reach for first-time buyers.
2. Builders will turn their focus to entry-level homes. Economists have said over and over again that increased residential housing starts, especially at the starter home level, are the key to bringing home prices down.
Housing starts have been well below the 50-year average of 1.2 million, but Gudell expects builders to finally hearken to the call of first-time and lower- to middle-income buyers yearning for more affordable options.
3. Millennials will move to the suburbs. It’s no secret that the majority of millennials would rather live in urban centers with access to a plethora of entertainment and shopping options and robust tech-centered job opportunities. But most millennials, especially those without help from parents, can’t afford to live in these areas.
Gudell says 25- to 34-year-olds will begin moving to the ‘burbs in search of more affordable home prices.
4. Many homeowners will remodel rather than sell. In addition to higher housing starts, experts have said more homeowners selling their homes would help alleviate low inventory issues. Well, homeowners, despite having high confidence about being in a seller’s market, will continue to stay still, says Gudell.
Instead of buying a new home, homeowners will invest in remodeling efforts to make their current homes feel and look brand new.
5. Baby boomers and millennials will drive home design. Baby boomers and millennials are driving the housing market, so it’s no surprise that Gudell says they’ll be driving home design trends in 2018, too.
New starts and renovated homes will feature designs that appeal to both millennials and baby boomers, such as wide hallways that can accommodate both strollers (for young families) and/or wheelchairs (for aging boomers).
Furthermore, homes will also be built using frameworks that make it easy to add elements later, including extra support beams behind shower walls to which grab bars can be added as older generations age in place.
6. Homes prices will continue to grow, but at a slower pace. 2017 has been full of record-breaking home price growth, with economists calling it nearly “unstoppable.”
Gudell says home prices are expected to climb 4.1 percent in 2018 — 1.1 percentage points higher than the “normal” annual appreciation closer of 3 percent, but slower than the current annual pace of 6.9 percent.
Slower home price growth, continued inventory issues and evolving design trends are ahead
If only we could stare into a crystal ball to see exactly what 2018 holds for the housing market. More inventory? Yes! Slower home price growth? Absolutely! Oprah giving everyone a free house? That would be a dream come true.
For now we have forecasts from top economists and housing experts. And Zillow chief economist Svenja Gudell offered hers on behalf of Zillow.
“We’re on the other side of the housing recovery, and the real estate market looks quite different than it did 15 or even five years ago,” Gudell said in a statement. “We have a huge generation entering the market. They really want to be homeowners, and they’re faced with an inventory crisis that leaves them with few options.”
“Builders won’t ignore this hungry market, and we’ll start to see a rise in new construction at the more affordable end, instead of all the luxury buildings we’ve seen lately,” she added.
“However, builders are also facing high costs, so instead of adding density in cities where zoning laws and land costs often preclude affordable building, we’ll see the suburbs grow and expand outward.”
Here are the six things Gudell expects to happen in 2018:
1. Inventory shortages will drive the housing market. Gudell says low inventory will continue to push up home prices and serve as a barrier for first-time homebuyers who struggle to save for a down payment.
Furthermore, this demographic of buyers will struggle to compete against more seasoned buyers who have profited from a home sale and know how to negotiate their way to the top.
Lastly, Gudell says there are 12 percent fewer homes to choose from nationwide than there were a year ago, and 51 percent of for-sale properties are in the top one-third of home values, which are out of reach for first-time buyers.
2. Builders will turn their focus to entry-level homes. Economists have said over and over again that increased residential housing starts, especially at the starter home level, are the key to bringing home prices down.
Housing starts have been well below the 50-year average of 1.2 million, but Gudell expects builders to finally hearken to the call of first-time and lower- to middle-income buyers yearning for more affordable options.
3. Millennials will move to the suburbs. It’s no secret that the majority of millennials would rather live in urban centers with access to a plethora of entertainment and shopping options and robust tech-centered job opportunities. But most millennials, especially those without help from parents, can’t afford to live in these areas.
Gudell says 25- to 34-year-olds will begin moving to the ‘burbs in search of more affordable home prices.
4. Many homeowners will remodel rather than sell. In addition to higher housing starts, experts have said more homeowners selling their homes would help alleviate low inventory issues. Well, homeowners, despite having high confidence about being in a seller’s market, will continue to stay still, says Gudell.
Instead of buying a new home, homeowners will invest in remodeling efforts to make their current homes feel and look brand new.
5. Baby boomers and millennials will drive home design. Baby boomers and millennials are driving the housing market, so it’s no surprise that Gudell says they’ll be driving home design trends in 2018, too.
New starts and renovated homes will feature designs that appeal to both millennials and baby boomers, such as wide hallways that can accommodate both strollers (for young families) and/or wheelchairs (for aging boomers).
Furthermore, homes will also be built using frameworks that make it easy to add elements later, including extra support beams behind shower walls to which grab bars can be added as older generations age in place.
6. Homes prices will continue to grow, but at a slower pace. 2017 has been full of record-breaking home price growth, with economists calling it nearly “unstoppable.”
Gudell says home prices are expected to climb 4.1 percent in 2018 — 1.1 percentage points higher than the “normal” annual appreciation closer of 3 percent, but slower than the current annual pace of 6.9 percent.
Homeowners: Here's what's in the tax bill for you
at least this is the latest proposal and how it could affect you....from ccnmoney.com 12/17/2017
Republicans on Friday unveiled the final version of their tax bill, and it has new restrictions for some homeowners.
Senate and House Republicans have reconciled their versions of tax legislation and the final plan shrinks some popular deductions. Lawmakers aim to vote on the bill next week and then send it to President Trump's desk.
Here's a look at what the changes could mean for future and current homeowners:
Downsized mortgage interest deduction
New homebuyers would now only be able to deduct interest on the first $750,000 of mortgage debt on a newly-purchased home.
That's down from the current $1 million threshold, but higher than the $500,000 limit the House proposed in its tax overhaul in November.
Current homeowners would not be affected by the lower cap.
The deduction has helped make home buying more affordable for some homeowners. While the median home price nationwide is currently $254,000, buyers in some cities face much higher price tags.
The lower limit could make it harder for house hunters in expensive cities. For instance, in New York City, nearly 64% of mortgages on homes sold this year were over $750,000, according to data from ATTOM Data Solutions. And in San Francisco, 58% of home loans exceeded the new cap.
Some experts worry the increased threshold could keep people from selling their homes, which could squeeze the already short supply of housing.
"The mortgage interest deduction change will put downward pressure on prices as well as sales," said Joe Kirchner, senior economist at Realtor.com.
Current homeowners might hesitate to trade up to a more expensive house if the price tag is too high to take full advantage of the deduction.
The new cap would also apply to mortgages on second homes. The original House bill wanted to eliminate the deduction on second homes.
Less reason to itemize
Homeowners must itemize their taxes if they want to claim the mortgage interest deduction. But since the final bill calls for nearly doubling the standard deduction, far fewer Americans are expected to itemize come April.
"In my generation, before we had a home we took the standard deduction, but as soon as we bought a home we started itemizing because that mortgage interest deduction was so significant," said Kirchner. "Now with the higher standard deduction very few people will itemize. It will virtually eliminate the deduction on a practical level."
The final tax bill also eliminates the deduction for interest on home equity loans. Currently that's allowed on loans up to $100,000.
Limit on property tax deduction
Taxpayers will no longer be able to fully deduct state and local property taxes plus income or sales taxes.
Instead, the legislation allows individuals to deduct up to $10,000 in state and local income and property taxes or state and local property and sales taxes.
That means homeowners living in high-tax states like New York, California and New Jersey could see an increase in what they owe Uncle Sam in April.
Nationwide, 4.1 million Americans pay more than $10,000 in property taxes, according to data from ATTOM Data Solutions.
Tax break stays for home sellers
Both the House and Senate bills originally wanted to scale back a tax break for homeowners when they sell their home for a gain.
Taxpayers will still be able to exclude up to $500,000 (or $250,000 for single filers) from capital gains when they sell their primary home, as long as they've lived there for two of the past five years.
Earlier tax reform proposals would have increased the live-in requirement to five out of the last eight years.
Republicans on Friday unveiled the final version of their tax bill, and it has new restrictions for some homeowners.
Senate and House Republicans have reconciled their versions of tax legislation and the final plan shrinks some popular deductions. Lawmakers aim to vote on the bill next week and then send it to President Trump's desk.
Here's a look at what the changes could mean for future and current homeowners:
Downsized mortgage interest deduction
New homebuyers would now only be able to deduct interest on the first $750,000 of mortgage debt on a newly-purchased home.
That's down from the current $1 million threshold, but higher than the $500,000 limit the House proposed in its tax overhaul in November.
Current homeowners would not be affected by the lower cap.
The deduction has helped make home buying more affordable for some homeowners. While the median home price nationwide is currently $254,000, buyers in some cities face much higher price tags.
The lower limit could make it harder for house hunters in expensive cities. For instance, in New York City, nearly 64% of mortgages on homes sold this year were over $750,000, according to data from ATTOM Data Solutions. And in San Francisco, 58% of home loans exceeded the new cap.
Some experts worry the increased threshold could keep people from selling their homes, which could squeeze the already short supply of housing.
"The mortgage interest deduction change will put downward pressure on prices as well as sales," said Joe Kirchner, senior economist at Realtor.com.
Current homeowners might hesitate to trade up to a more expensive house if the price tag is too high to take full advantage of the deduction.
The new cap would also apply to mortgages on second homes. The original House bill wanted to eliminate the deduction on second homes.
Less reason to itemize
Homeowners must itemize their taxes if they want to claim the mortgage interest deduction. But since the final bill calls for nearly doubling the standard deduction, far fewer Americans are expected to itemize come April.
"In my generation, before we had a home we took the standard deduction, but as soon as we bought a home we started itemizing because that mortgage interest deduction was so significant," said Kirchner. "Now with the higher standard deduction very few people will itemize. It will virtually eliminate the deduction on a practical level."
The final tax bill also eliminates the deduction for interest on home equity loans. Currently that's allowed on loans up to $100,000.
Limit on property tax deduction
Taxpayers will no longer be able to fully deduct state and local property taxes plus income or sales taxes.
Instead, the legislation allows individuals to deduct up to $10,000 in state and local income and property taxes or state and local property and sales taxes.
That means homeowners living in high-tax states like New York, California and New Jersey could see an increase in what they owe Uncle Sam in April.
Nationwide, 4.1 million Americans pay more than $10,000 in property taxes, according to data from ATTOM Data Solutions.
Tax break stays for home sellers
Both the House and Senate bills originally wanted to scale back a tax break for homeowners when they sell their home for a gain.
Taxpayers will still be able to exclude up to $500,000 (or $250,000 for single filers) from capital gains when they sell their primary home, as long as they've lived there for two of the past five years.
Earlier tax reform proposals would have increased the live-in requirement to five out of the last eight years.
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