Yajnesh Rai

Rising Rates Cause Loan Demand to Teeter | Realtor Magazine

Mortgage rates were on the rise for the second consecutive week, causing some borrowers to show reluctance. Total mortgage application activity—which reflects both refinancing and home purchase demand—dropped 2.6 percent last week, the Mortgage Bankers Association reported Wednesday. Nevertheless, mortgage volume remains 6.6 percent higher than the same week a year ago.

“Rates moved higher last week driven by concerns over a weaker U.S. dollar, signs of more robust growth and rising rates abroad, and moderately strong fourth-quarter domestic growth,” says MBA economist Joel Kan.

Broken out, applications to refinance a home loan dropped 3 percent during the week, but are still 3 percent higher than a year ago. Refinancing applications tend to be more sensitive to rate changes than home buying applications. Applications to buy a home also dropped 3 percent last week, but remain 10 percent higher than a year ago.

The MBA reported that the average 30-year fixed-rate mortgage rate was 4.41 percent last week, the highest level since March. The 15-year fixed rate and the FHA rate were at their highest levels since 2011 and 2013, respectively.

KW: We’re Biggest Real Estate Franchise in U.S. | Realtor Magazine

Keller Williams Realty is calling itself the largest real estate franchise in the U.S. by sales volume and units sold, as well as the world’s largest franchise by agent count. The company reported the findings in its latest quarterly release, which included research into SEC filings, company websites, and industry reports to gauge its placement in the marketplace.

Keller Williams reported record agent production, owner profit, and profit shares in the fourth quarter of 2017, topping its own previous record set in 2016. KW agents closed 250,815 transactions and $73.2 billion in sales volume in the U.S., up 9 percent and 13 percent year over year, respectively. Profits for KW franchise owners in the fourth quarter were up 7 percent year over year to $39.9 million, and profit share reached $34.9 million.

Keller Williams has more than 156,500 associates in the U.S., up nearly 13 percent year over year. “We’re certainly excited for our people and their incredible increases in agent production and market share,” says Keller Williams CEO John Davis. “And we’re just getting started. We’re committed to continuing to raise the bar and providing even more value for agents and their clients.”

So far, 2018 looks like it could be another record-breaking year for the company. Its U.S. associates have taken 140,013 new listings in the first quarter of this year and have written 257,750 contracts. Keller Williams’ contract volume in the first quarter of 2018 reached $75 billion.

Housing Market Starts 2018 on Positive Note | Realtor Magazine

Contract signings on home sales rose slightly in December, reaching their highest level since last March, the National Association of REALTORS® reported Wednesday. NAR’s Pending Home Sales Index, a forward-looking indicator based on contract signings, moved 0.5 percent higher to a reading of 110.1 last month, 0.5 percent higher than a year ago.

“Another month of modest increases in contract activity is evidence that the housing market has a small trace of momentum at the start of 2018,” says Lawrence Yun, NAR’s chief economist. “Jobs are plentiful, wages are finally climbing, and the prospect of higher mortgage rates are perhaps encouraging more aspiring buyers to begin their search.”

But Yun cautions that these positive indicators won’t necessarily equate to a stronger sales pace in the long run: “Buyers throughout the country continue to be hamstrung by record-low supply levels that are pushing up prices—especially at the lower end of the market.” 

The imbalance in supply and demand in housing throughout the country prompted home prices to appreciate 5.8 percent in 2017, which marks the sixth consecutive year of gains at or above 5 percent, NAR reports. Yun does expect price growth to subside in 2018, with some states possibly experiencing a decline due to the changes in the impact of the mortgage interest deduction and state and local deductions under the new tax law. 

“In the short term, the larger paychecks most households will see from the tax cuts may give prospective buyers the ability to save for a larger down payment this year, and the healthy labor economy and job market will continue to boost demand,” Yun says. “However, there’s no doubt the nation’s most expensive markets with high property taxes are going to be adversely impacted by the tax law. Just how severe is still uncertain, but with homeownership now less incentivized in the tax code, sellers in the upper end of the market may have to adjust their price expectations if they want to trade down or move to less expensive areas. This could in turn lead to both a decrease in sales and home values.” 

Crucial Turning Point in Homeownership Rate | Realtor Magazine

For the first time in 13 years, the U.S. homeownership rate ticked up, and millennials are behind the long-awaited boost. The U.S. Census Bureau reported Tuesday that the rate increased to 64.2 percent in the fourth quarter of 2017, up from 63.7 percent a year prior.

The lion’s share of the boost came from younger Americans. The homeownership rate among households headed by someone under the age of 35 increased to 36 percent in the fourth quarter, up from 34.7 percent a year prior. It was the largest increase of any age group during that period. Millennials—projected to be the largest homebuying generation since the baby boomers—are entering the housing market after years on the sidelines and saddled with low wages, tight credit, and high student debt. The Census Bureau reported yesterday that the country added about 1.5 million new households over the past year and that renter households fell by 76,000—the second consecutive quarter of such declines.

The Wall Street Journal called the increase a “crucial turning point” and credited the federal government for loosening policies formed in the wake of the housing crash. The homeownership rate peaked at more than 69 percent in the mid-2000s, boosted by easy credit widely available during that time. But the housing crisis left many of those mortgages in default, ultimately costing banks billions in bad mortgages. That prompted banks to tighten credit and down payment requirements that made it more difficult for young people with thin credit histories and large student debt burdens to get a mortgage. By the second quarter of 2016, the homeownership rate had sunk to a 50-year low of 62.9 percent.

While the homeownership rate still remains below its long-term average of 65 percent, housing economists overall are upbeat. However, economists do caution that inventory shortages and rising home prices may jeopardize larger jumps in the homeownership rate.

Keller Williams Reigns as No. 1 Real Estate Franchise in the U.S.

n one of the most stunning David and Goliath stories in real estate history, Keller Williams has surged past industry giants like RE/MAX, Coldwell Banker, and Berkshire Hathaway HomeServices to become the number one real estate franchise in agent count, closed units, and closed sales volume in the United States*. In 2017, the company’s 155,000 U.S. agents closed more than 1 million units, generating more than $300 billion in sales revenue.

Continue reading Keller Williams Reigns as No. 1 Real Estate Franchise in the U.S. | #ProudToBePartOfKW #SiliconValleyAgent #YajneshRai

2018’s Housing Market Looks Good | Multi-Year Solid Predictions |

The nation’s housing market for 2018 continues to look good, according to two recently released reports. But first-time millennial buyers will continue to struggle with affordability, especially in high-priced areas like Los Angeles, San Francisco, Boston, New York and Washington DC.

Listen to Ralph G. DeFranco, Ph.D, global chief economist, Mortgage Services, Arch Capital Services Inc.: “With interest rates and home prices both on the rise, first-time homebuyers – largely millennials – may want to consider making the jump from renting to owning sooner rather than late.”

Median price for homes currently listed in Boston is $735,000, according to Zillow.com. (Shutterstock)

DeFranco further said: “Our research shows few signs of a housing bubble because the typical warning signs aren’t present. Overall, the shortage of housing paired with a robust job market should keep the housing market strong and growing, short of an unexpected event and despite the contrary pressures that may be created by the tax bill.”

 

Arch Mortgage Insurance Co. (Arch MI) recently released its winter 2018 edition of The Housing and Mortgage Market Review® (HaMMRSM), authored by DeFranco. The chart below looks at a 6.2% increase in home prices in 2017 compared with the year before.

ARCH Mortgage Capital Services

 

 

The HaMMRSM also makes market predictions to 2020. Among them: Home prices will continue to increase around the country in most markets. Look to annual increases of 2-6%, with most housing markets currently at low risk for a downturn.

Mortgage rates will rise, causing people to move less often. According to the report, “rising rates give existing borrowers with fixed-rate mortgages a financial incentive to stay put.” In addition, “homeowners will have more incentive to seek second liens or home improvement loans rather than move to a new home or refinance.” Makes sense since a new mortgage would likely be a higher rate cutting into the key affordability factor.

Realtor.com also released its “State of the Housing Union,” “which shows the strong U.S. economy and unprecedented housing shortage pressuring potential home buyers striving to attain the American Dream.” Realtor.com’s analysis pointed to the fundamentals. “Strong buyer demand, constrained inventory, and ready-to-buy first timers are the key underlying dynamics driving today’s housing market. The macro-factors that have defined real estate in recent years – strong demand and weak supply – continue to set the tone for the industry,” said Joe Kirchner, senior economist for realtor.com.

Boston, a city millennials love continues to have inventory and affordability issues. According to Zillow, the median price for homes currently listed in Boston is $735,000.

“I pay attention to numbers and we don’t have enough good property on the market. There is big demand in Boston with companies moving to here either from outside of the city or from other states,” observes David Bates, broker associate at William Ravis Real Estate

“I would be surprised to see a slowdown. I see increasing demand and very good appreciation,” adds Bates who is also known for writing about the Greater Boston real estate market for Banker and Tradesman, Boston Magazine, The Boston Globe, Boston Herald and Boston.Curbed.com.

Clearly, getting your foot in the proverbial front door of your first house remains the key to achieving the American dream.

Mortgage Rates Continue to Inch Upwards | Realtor Magazine

Fixed-rate mortgages increased again this week, the third consecutive week to see a rise.

“Rates keep climbing,” says Len Kiefer, Freddie Mac’s chief economist. “The 10-year Treasury yield reached its highest point since 2014 reflecting expectations of broad-based economic growth. Mortgage rates, in turn, followed the surge in Treasury yields. The 30-year fixed rate mortgage jumped 11 basis points to 4.15 percent, its highest level since March of last year.”

Home buyer affordability will be a challenge, with mortgage rates moving higher and robust house price gains across the country, Kiefer adds.

Freddie Mac reports the following national averages with mortgage rates for the week ending Jan. 25:

• 30-year fixed-rate mortgages: averaged 4.15 percent, with an average 0.5 point, increasing from last week’s 4.04 percent average. Last year at this time, 30-year rates averaged 4.19 percent.
• 15-year fixed-rate mortgages: averaged 3.62 percent, with an average 0.5 point, increasing from last week’s 3.49 percent average. A year ago, 15-year rates averaged 3.40 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 3.52 percent, with an average 0.4 point, increasing over last week’s 3.46 percent average. A year ago, 5-year ARMs averaged 3.20 percent.

 

Money Saving Tips | DIY Money Saving Ideas | HouseLogic

ou’re going to save money with DIY home improvement projects. Sure, everybody knows that.

But did you know how much? Cut professionals out of the equation and you can save half the cost of a project — or more. 

What’s more, you get a great return on your investment. Meaning, the financial value you get out of a DIY project is much more than what you put in.

Here’s a rundown of some top money-saving projects, using cost and recovered costs data from the “Remodeling Impact Report” from the NATIONAL ASSOCIATION OF REALTORS®.

#1 New Steel Front Door

Few replacement projects have as much upside as a new steel entry door. Not only will you recover about 75% of the cost of having an entry door professionally installed, but you’ll spruce up your curb appeal big time. Want proof? Ninety-six percent of homeowners responding to the “Remodeling Impact Report” say they are happy or satisfied with their new front door.  

Of course, you’ll save even more if you tackle this project yourself. Know your door parts (jambs, threshold, stops) before digging in. You’ll be putting in a pre-hung door that includes jambs, so the old stuff has to come out. If you can, preserve the old casing (trim) that goes around the door. Otherwise, plan to buy new casing.

If You Hire		If You DIY
Cost	$2,000	Cost	$250
Recoup at sale	$1,500	Recoup at sale	$1,500
% recoup	75%	% recoup	600%

This is a good one to have a friend or spouse lend a hand. It’ll take six to eight hours if it’s your first time. Remember the three-legged mantra of door installation: Plumb, level, square.

#2 New Garage Door

Tired of looking at that big blank billboard every time you pull into your driveway? Change out your old garage door for a spiffy new steel model and the whole neighborhood will thank you. Save some cash by keeping the same motorized opener.

If You Hire		If You DIY
Cost	$2,300	Cost	$850
Recoup at sale	$2,000	Recoup at sale	$2,000
% recoup	87%	% recoup	235%

A steel garage door comes in four panels that are relatively lightweight but awkward — get a friend to lend a hand and you’ll have this project done in a day. Then stand back and admire along with 95% of homeowners in the “Remodeling Impact Report” who said they were happy or satisfied with their new garage door. 

#3 New Vinyl Windows

If you want to replace four or more windows, or a second-story window, then hire the work out. Being up on a ladder with an object as bulky as a window is no place for a non-professional. Pros bring scaffolding, which takes time to set up but ultimately makes the work faster and safer.

Replacing one, two, or maybe three first-story windows is a good DIY job. Anything more and the pros will get the job done with better efficiency in terms of time and hassle.

If You Hire		If You DIY
Cost (per window)	$556	Cost (per window)	$250
Recoup at sale	$444	Recoup at sale	$444
% recoup	80%	% recoup	178%

If you’ve measured your rough opening correctly and bought the right window, then one window should take you three to four hours. You’ll get faster with subsequent windows.

#4 New Wood Flooring

Few projects are as satisfying, while recovering such a high percentage of your investment, as new wood flooring. According to the “Remodeling Impact Report,” 96% of homeowners were happy or satisfied with their professionally installed hardwood floors. Combine that with a 91% return on your investment, and you’ll likely be a very happy homeowner.

For the DIYer, installing hardwood flooring is a bit labor intensive, but the techniques are fairly easy to master. Once you get the hang of it, installing prefinished hardwood flooring should go smoothly.

If You Hire		If You DIY
Cost	$5,500	Cost	$1,770
Recoup at sale	$5,000	Recoup at sale	$5,000
% recoup	91%	% recoup	282%

 

#5 Insulation Upgrade

OK, maybe it’s not the sexiest project. After all, it’s tucked out of sight in your attic. But you can feel it with increased comfort, and see the savings on your energy bill. Those are big pluses. 

Upgrading an under-insulated attic space can save you up to 50% per year in energy costs. With a pro cost of $2,100, it’ll take at least a couple of years to pay off your investment with savings. Do it yourself, however, and you’ll only spend about $700 for enough 10-inch-thick fiberglass batt insulation to cover a 20-foot-by-40-foot attic space. You’ll pocket the savings much sooner. 

It’s also an awkward project, it can be messy, and you’ll need to bundle up behind protective clothing. However, insulating your attic is a low-skill project that most DIYers can pull off. Just be sure not to stick your foot through the drywall under the attic floor joists!

If You Hire		If You DIY
Cost	$2,100	Cost	$700
Recoup at sale	$1,600	Recoup at sale	$1,600
% recoup	76%	% recoup	229%

New City, New Salary: 5 Best Destinations For Tech Transplants

Would you move to a new city for a tech job? Doing so might be financially rewarding–but a large part of that depends on where exactly you’re headed when you pack up the U-Haul (and where you’re coming from).

Of course, if you’re going to uproot your life and bid farewell to family and friends, you want it to be worth your while. Start your job hunt in these five cities, which, according to a Paysa study, offer the highest average salary increases for migrating tech professionals.

1. San Francisco, CA

Anyone in the tech world won’t be shocked that San Fran takes the top spot. After all, it’s home to the famous Silicon Valley, where many big companies and startups offer generous packages to tech talent.

If you’re coming from Chicago, you’re going to like it here: Windy City transplants top the list with average salary increases of over $120,000 after moving. And San Diego residents might be able to double their salary just by moving eight hours north–thanks to the $114,000 salary increase the average tech migrant can enjoy without even leaving the state. In third place are New Yorkers, who tend to add about $110,000 to their salaries after a move.

 

2. Seattle, WA

The Pacific Northwest (and Seattle in particular) is emerging as another major tech hub, and companies here are making it worth candidates’ whiles to invest in a good raincoat and stay for a while.

If San Diego tech professionals are willing to travel even further north than San Francisco, they can tack on a few extra tens of thousands to their offers: on average, those who make this move increase their salaries by over $139,000. Close behind is the average for movers from our nation’s capital–transplants from Washington D.C. enjoy average increases of $134,000+. And Texans moving from Austin might be willing to give up their warm climate for a $131,000 pay bump.

 

3. New York, NY

lifeofpix.com

Best cities to relocate to for a salary increase

Not all the good jobs are in the west. Tech professionals who want to stay on the East Coast should set their jobs board searches to NYC.

As it turns out, the tech workers most likely to benefit from moving to the city already live in New York. If you’re moving there from Fulton, you’ll add an average of $63,000 to your salary. Buffalo transplants command increases of nearly $59,000. The third-highest increases are for movers from Chicago, who increase their pay by roughly $53,000.

Lower down the list, movers from Los Angeles usually add to their salaries by $11,500–but if you’re coming from San Francisco or Seattle, you’ll be losing between $1,000-$15,000.

4. Boston, MA

If you like coding and snow, head northeast to Boston–another fast-growing tech hub with a mix of startups and established companies.

And if you’re from Chicago, this should be near the top of your list when you’re job hunting–if you want to tack on an extra $110,000 to your yearly gross, that is. Southerners who migrate from Atlanta, GA come in second here; they’ll make $105,500 more after a move. And Texans take the third spot, with Austin transplants pulling in an extra $78,700 when they switch jobs.

5. Washington, D.C.

The last city on the list also hails from the east–and while many consider D.C. to be more a hub of politics and history, it’s actually a big player in the tech world as well. The city is third in the nation for tech jobs, and even San Francisco tech transplants enjoy rewards for moving here.

The study shows that it’s most lucrative for those moving from Charlotte, NC: they’ll add to their yearly salaries by nearly $68,000. West-coasters from Los Angeles enjoy $47,000 increases, and Chicagoans command $44,500 higher offers.

So: have tech skills, will travel? Maybe you’ll be the next transplant to call one of these cities home.

Laurence Bradford is a product manager at Teachable, an EdTech enthusiast, and the creator of Learn to Code With Me, a blog and podcast helping self-taught coders get ahead in their lives + careers.

January’s 20 Hottest Markets | Realtor Magazine

California housing markets are still among the top performers in the country, according to realtor.com®’s monthly rankings of the hottest housing markets. Realtor.com® ranks metros based on the most online listing views and the markets where homes are selling the fastest.

Overall, the median home list price nationwide was $269,000 in January, 8 percent higher than a year ago. Still, list price increases have subdued somewhat in recent weeks after the double-digit increases in mid-2017 and a price peak reached $275,000 in the summer of 2017.

“A strong stock market run, new tax laws, and a government shutdown have given buyers and sellers plenty to digest as they come to terms with the new economic landscape and their personal situation,” says Javier Vivas, director of economic research at realtor.com®. “While the national picture remains largely unchanged, real estate remains more local than ever, and supply-and-demand dynamics are rapidly shifting across the country as the dust begins to settle.”

 

The hottest housing markets in January, according to realtor.com®, are:

1. San Francisco
2. San Jose, Calif.
3. Vallejo, Calif.
4. Colorado Springs, Colo.
5. Midland, Texas
6. San Diego
7. Santa Rosa, Calif.
8. Sacramento, Calif.
9. Denver
10. Stockton, Calif.
11. Modesto, Calif.
12. Dallas
13. Fresno, Calif.
14. Los Angeles
15. Columbus, Ohio
16. Chico, Calif.
17. Oxnard, Calif.
18. Santa Cruz, Calif.
19. Detroit
20. Boise, Idaho