Home Ownership Linked to Happiness

Home Ownership Linked to Happiness. Image courtesy of iosphere / FreeDigitalPhotos.net

Home ownership can lead to higher levels of well-being, according to data from the OECD Better Life Index, which gauges the quality of life worldwide by factoring in such things like housing, jobs, civic engagement, health and safety.

The heightened sense of happiness that comes from home ownership may be more than just getting a new home but more closely tied to the basic need for shelter, says Aida Caldera Sanchez and Caroline Tassot, authors of an analysis about the index. Also, home ownership can lead to status and independence – qualities that often are linked to happiness, their analysis shows.

On the well-being index, housing outperformed all the all other indicators monitored – like education, safety, and environment – by the highest amount in the Midwest, with 75 percent of the states ranking housing as most important to happiness. In the South, housing tops all other indicators in 70.6 percent of the states, and in the West housing was tops in only 15 percent of the states compared to the other indicators.

View how housing stacks up in your area at the OCED Regional Well-being website.

Source: OCED Regional Well-being and “Homeownership Linked to Happiness,” RISMedia (May 7, 2015)

Housing Flips Slip to Lowest Level in Years

Housing Flips Slip to Lowest Level in Years. Image courtesy of stockimages / FreeDigitalPhotos.net

Four percent of all U.S. single-family home sales in the first quarter were flips, sold for a second time within a 12-month period, according to RealtyTrac’s first quarter 2015 U.S. Home Flipping Report. It marked the lowest number of homes flipped since the second quarter of 2011, when just 3.4 percent of all single-family home sales were considered flips.

In the first quarter, the average gross profit – the difference between the purchase price and the flipped price – for completed flips was $72,450, according to RealtyTrac’s report. That represents an increase from $65,290 in the previous quarter and is the highest level since the first quarter of 2011.

“The strong returns for home flippers in the first quarter demonstrates that there is still a need in this recovering real estate market for move-in ready homes rehabbed to more modern tastes, particularly given the dearth of new homes being built,” says Daren Blomquist, vice president at RealtyTrac. “The challenge for flippers in 2015 will be finding inventory to flip. Flippers ideally want to buy distressed homes that provide them with an opportunity to add value in markets where there is good affordability and ample demand from buyers for the finished flip product — whether those buyers are millennials becoming first-time homebuyers, baby boomers purchasing their present or future retirement home, or buy-and-hold real estate investors looking for turnkey rental properties that cash flow.”

According to RealtyTrac’s report, investors saw some of the largest returns on housing flips in the first quarter in Baltimore; Deltona-Daytona Beach-Ormond Beach, Fla.; Ocala, Fla.; Lakeland, Fla.; Detroit; Tampa; Pittsburgh; Memphis, Tenn.; and Chicago.

Meanwhile, the following markets are where flips accounted for the highest percentage of all home sales in the first quarter:

• Memphis, Tenn.: 10.6%
• Ocala, Fla.: 8%
• Miami: 7.9%
• Tampa, Fla.: 7.4%
• Sarasota, Fla.: 7.2%
• Los Angeles: 6.6%
• Detroit: 6.5%
• Las Vegas: 6.3%
• San Diego: 6.1%
• Virginia Beach, Va.: 5.9%
• Jacksonville, Fla.: 5.9%

Source: RealtyTrac

Sharp Rise in Rates Doesn’t Deter Buyers

Sharp Rise in Rates Doesn’t Deter Buyers. Image courtesy of renjith krishnan / FreeDigitalPhotos.net

Mortgage applications for home purchases – viewed as a gauge of future home buying activity – posted only a slight gain at 1 percent last week, but applications are at the highest level since June 2013, the Mortgage Bankers Association reports. In a broader look, mortgage applications for home purchases are 12 percent higher now than a year ago.

However, refinancing applications fell 8.3 percent week-to-week, reaching its lowest level since January. This caused MBA’s seasonally adjusted index reflecting total mortgage applications – for both refinancing and home purchases – to plunge 4.6 percent last week compared to the previous week as interest rates ticked up.

MBA reports the 30-year fixed-rate mortgage averaged 3.93 percent last week, up from 3.85 percent the prior week.

“While rates do eventually create downward pressure on purchase demand, it’s not nearly as immediate or pronounced as the effect on refinance activity,” Matthew Graham of Mortgage News Daily told CNBC. “Additionally, rate spikes tend to motivate fence-sitters, or other prospective buyers, who otherwise might have taken more time shopping around.”

What’s more, a lot of the sales activity lately appears to be centered on the higher end of the housing market, which tends to be less rate sensitive, housing analysts say.

Case in point, “the average loan amount for a purchase application reached a record high, a sign that the mix of purchase activity is still skewed toward higher priced homes,” says Mike Fratantoni, MBA’s chief economist.

Source: “Weekly Mortgage Applications Drop 4.6% on Higher Rates,” CNBC (May 6, 2015)

Your Home’s History

If you want to learn the historical journey of a home, get details about its architecture, or find out how the dynamics of the neighborhood have changed throughout the years, there are many resources available. But where to start?

Where to Start

To begin the journey, Jessica Leigh Hester from CityLab suggests looking up building and property records, including permits. This information can easily be found by searching county archives, visiting your local courthouse or your local historical society. For a list of state-by-state historical societies, visit this site. Local historical societies offer many resources, including maps, old photos, real estate listings from the past that can show the change to the neighborhood throughout the years.

Dig Deeper

The next step in finding out the history of your property is starting with the recent past, Hester adds. This involves visiting your local library to find newspaper archives. Home history search is actually one of the most common requests for librarians. Many libraries also keep building permits on file, which is basically the birth certificate for your house, and is considered “the one most important piece of paper you can locate,” says Jerry McCoy, Special Collections Librarian at the DC Public Library. Librarians can help you access old city directories, which can help you find out more about the people who previously lived in the home, but some city directories are actually available online.

To discover the evolution of your neighborhood,  Sanborn Maps are a valuable resource. These maps are large-scale plans for the city, and are online for those with Pro-Quest access, and available at your local library for free.

More Resources

You can visit the Public Records Online Directory to find your local public records website.

This short video from REALTOR® Magazine will help create a dynamic listing about your home’s historical journey when it’s time for you’re ready to sell.

Source: “It’s Easier Than Ever to Discover Your Home’s History,” CityLab (April 28, 2015) and  “Detailing Your Listing’s History,” REALTOR® Magazine (July, 2014)

Renters Are in Financial Trouble

Renters Are in Financial Trouble. Image courtesy of hyena reality / FreeDigitalPhotos.net

More than one in four renters use at least half of their household income to cover housing and utility costs, according to a new analysis of Census data by Enterprise Community Partners. The number of renters who are constrained financially from growing household expenses has surged 26 percent since 2007, now at 11.25 million.

“It means making really difficult trade-offs,” says Angela Boyd, a vice president at Enterprise Community Partners. “There are daily financial dilemmas about making their rent or buying groceries.”

Household incomes have not kept pace with rental increases. A recent analysis by the National Association of REALTORS® showed a widening gap between rental costs and household incomes that is widening to unsustainable levels across the country. NAR’s analysis showed that over the last five years a typical rent increased 15 percent, while the income of renters grew by only 11 percent.

In some parts of the country, renters are facing even greater hardships from escalating rental costs. In California, Florida, New Jersey, and New York, more than 30 percent of renters are devoting at least half their incomes to housing and utility expenses, according to the Enterprise Community Partners analysis. At least 20 percent of renters in every state in the U.S. – except for Alaska, South Dakota, and Wyoming – are facing similar high costs relative to income, the analysis found.

Other recent studies are showing the hardships renters now face too from escalating costs. The U.S. Department of Housing and Urban Development estimated that 12 million renters and home owners spend at least 50 percent of their income on housing.

Source: “1 in 4 Renters Use Half Their Pay for Housing Costs,” The Associated Press (May 3, 2015)

15 Hottest Housing Markets Right Now

15 Hottest Housing Markets Right Now. Image courtesy of Idea go / FreeDigitalPhotos.net

The housing market has been gaining strength this spring, according to realtor.com®’s latest housing report. Median list prices rose to $225,000 in April – up 9 percent year-over-year. As prices rise, homes are staying on the market for less time too. The median number of days on the market was 73 in April, down 12 percent over last year. Inventory supplies also ticked up 5 percent in April over March, offering more choices for buyers. Still, inventories remain down over last year’s numbers.

Realtor.com®’s Chief Economist Jonathan Smoke says 15 markets in particular are proving to be the “hottest” medium-to-large-sized markets for buyers and sellers alike.

“As the market shows strong signs of health and improvement during the start of spring home-buying season, these 15 markets are the best in the country from both a supply and demand perspective,” Smoke says. “Sellers are seeing listings move between 29 and 49 days more quickly than in the rest of the country and at an accelerating pace from just last month – an average of five days faster. Meanwhile, these markets are especially attractive to buyers, as listings are viewed two-to-three times more often than the national average.”

The hottest markets nationwide, according to realtor.com®, are:

1. Dallas-Fort Worth-Arlington, Texas
2. Santa Rosa, Calif.
3. Vallejo-Fairfield, Calif.
4. Denver-Aurora-Lakewood, Colo.
5. Boston-Cambridge-Newton, Mass./N.H.
6. San Diego-Carlsbad, Calif.
7. Nashville-Davidson-Murfreesboro-Franklin, Tenn.
8. Ann Arbor, Mich.
9. Detroit-Warren-Dearborn, Mich.
10. San Francisco-Oakland-Hayward, Calif.
11. Boulder, Colo.
12. Santa Cruz-Watsonville, Calif.
13. San Luis Obispo-Paso Robles-Arroyo Grande, Calif.
14. Oxnard-Thousand Oaks-Ventura, Calif.
15. Sacramento-Roseville-Arden-Arcade, Calif.

Source: realtor.com®