Yajnesh Rai

10 Cities With the Highest Rents | Realtor Magazine

San Francisco, New York, and San Jose, Calif., have the highest rents in the nation, according to the Zumper National Rent Report. The report analyzes data from more than 1 million active listings nationwide and calculates the median asking rents for the top 100 metro areas by population.

The following are the 10 priciest cities for apartments (listed with the median rent of a one-bedroom rental):

1. San Francisco: $3,510
2. New York: $3,190
3. San Jose, Calif.: $2,280
4. Oakland, Calif.: $2,270
5. Boston: $2,230
6. Washington, D.C.: $2,190
7. Los Angeles: $1,960
8. Miami: $1,900
9. Honolulu: $1,840
10. Seattle: $1,740

States Where Homes Sell in Less Than a Month | Realtor Magazine

n some locales, at least half of the properties sold between March and May were on the market for 30 days or less, according to the latest REALTORS® Confidence Index Survey Report. Properties sold the fastest in 12 states: California, Colorado, District of Columbia, Idaho, Iowa, Kansas, Massachusetts, Minnesota, Nebraska, Oregon, Texas, Utah, and Washington, the report shows.

Properties are selling faster nationwide, too. In May, homes across the country were typically on the market for 32 days on average (compared to 39 days a year ago). Short sales tended to stay on the market the longest amount of time, at 103 days on average, while foreclosed properties were on the market for 51 days. Non-distressed properties stayed on the market for an average of 30 days, according to the National Association of REALTORS®.

Nearly 50 percent of sold properties nationally were on the market for less than a month, according to NAR. Only about 11 percent of properties sold in May were on the market for longer than six months.

 

Source: “In What States Did Properties Sell Quickly in March-May 2016?” National Association of REALTORS® Economists’ Outlook Blog (June 28, 2016)

Do Ultra-Clean Homes Appraise Higher? | Realtor Magazine

Some home owners are beginning to see value in spick-and-span listings. But are appraisers on board? 

Jennifer Chateauvert of San Jose, Calif., insists that two weeks of deep cleaning is what helped her home appraise higher than she’d predicted. However, appraisers say—while they appreciate clean properties—this work won’t result in higher valuations.

“Appraisers are normal people. When they see something that looks nice and looks clean and presents well, they’ll have a better impression of the property. But that won’t affect the appraisal value,” Donald Boucher, president of the appraisal firm Boucher & Boucher in Washington, D.C., tells realtor.com®.

Still, some real estate professionals say they believe cleanliness has made an impact on some of their listings.

“Having your house clean does make a difference, even though in theory it should not,” says Mark Ferguson, a real estate professional and property investor in Greeley, Colo. “Appraisers are people, and they are swayed by smells and how a house feels, even if they aren’t conscious of it.”

Real estate professionals offer some of the following tips to prepare for an appraisal:

• Make a list of all the upgrades and features in the home to provide to the appraiser.
• Whether you hire cleaners or do-it-yourself, making sure to scrub walls clean and touch up paint will make the home sparkle.
• Print out a list of comparable homes in the neighborhood to provide to the appraiser. Boucher notes that sometimes when users search the MLS, not all comps appear, so this step can be helpful for appraisers.
• Refreshments can be a welcome courtesy. Boucher notes that honest appraisers aren’t actually swayed by extras, but see it as “just a nice gesture.”

3 Secrets to Holding a Painless Open House – Zillow Porchlight

Hosting an open house can be a weird process. You invite in complete strangers who will look around, open your closets and make judgments — sometimes out loud.

There is a psychological element to literally “letting people in.” It’s intrusive. You may feel exposed. Particularly for sellers who have owned for many years, it will be a tough experience. Here are some ways to make the best of opening the floodgates for an open house.

Prepare yourself emotionally

A home sale has huge emotional implications. If you understand this well in advance and come to terms with the change or the “loss,” the actual sale and open house process will be easier.

If, after 20 years in a home, you decide to sell overnight, you’d better believe that the process will be a roller coaster. Don’t do it under the gun —otherwise you will make knee-jerk decisions and react emotionally.

Depersonalize the house

The open house won’t seem so odd if you’ve made the effort to put many of your personal items away. As a part of prepping the home for sale, declutter, take down family photos and start to see your home as an object. Consider it a product — like something on the shelf at your local Walmart, it’s for sale on the open market.

Buyers don’t want to feel like they are walking into someone else’s home. They want to see a place as neutral. That’s what pulls them in.

Sellers who do best with open houses are those who move out of the home or even do some serious staging. That way they can emotionally detach from the house, and remove their presence so buyers can imagine themselves living in the home.

Think safety

If you still live in the home, you need to take stock of what you have and think of your safety and security. You hope for genuine and trustworthy shoppers, but you never know.

Remove from public view any small and expensive items. Put jewelry, watches and cash deep in closets, or even inside a safe.

People may go through drawers when nobody is looking. Make sure there is nothing of value in them.

Open houses are the fabric of the real estate industry and the real estate market. Buyers will continue to see homes on Sunday as a way to learn the market and get inside the inventory. For some sellers, they are a necessary evil.

Plan ahead and be certain that you are ready to sell before you open your doors. Because once you open the doors, the buyers will come, and there is no turning back.

Money Matters: Financial tips for obtaining a mortgage loan | Project Economy – WMUR Home

 

Maybe you have dreamed about buying a home and have decided you are finally ready to make the large financial commitment it takes to be a homeowner. Part of the commitment you make could be in the form of a mortgage loan. To achieve the best possible result when obtaining a loan, here are a few suggestions to follow:

Review your credit report

As a good credit report is the key to a lender’s underwriting process, make sure to review yours. Is it in good shape? Make sure the report is accurate and any errors are corrected. If need be, take steps to improve your credit, the most important is paying your monthly bills on time.

Know your debt-to-income ratio

Many lenders require borrowers to have a certain debt-to-income ratio. This refers to the percentage of monthly gross income you have to spend on debt payments. The percent usually given is 36% to 43%. Debt payments can include things like student loans, credit cards, and car payments. If your ratio is too high, try making a plan to reduce your debt. Perhaps you can cut back on discretionary spending and apply the money to your loan payments. Another alternative is to increase your income. A second job might be needed for awhile.

Decide on a down payment

It might be possible for you to obtain a mortgage with little down , for example, the Federal Housing Administration will allow a down payment of as little as 3.5 percent of the home’s purchase price. Keep in mind that making a larger a down payment may translate into a more attractive mortgage loan. If you are making a minimal down payment, you might want to consider holding off purchasing a home until you are able to increase the down payment.

Seek pre-approval

It is a good idea to pre-approve your loan when you are close to starting the buying process. Meet with a mortgage loan officer (or several), and be prepared to have crucial documents available, your tax return for example. Pre-approval will give you an indication of how much home you can buy. Sellers will know you are steps closer to the ability to make an actual purchase, which is a negotiating plus for you.

Shop lenders

Not all lenders are created equal, so shop, compare, and negotiate with one that fits your situation. Do your homework.

Research loan types

Just as all lenders aren’t created equal, neither are loans. If you are planning to stay in the home for a long time period, then a fixed rate mortgage might suit your needs. However, if you are planning to reside in the home for a short time frame, an adjustable rate mortgage might be the better option. Understand the loan offers before choosing.

Remember it isn’t only the mortgage

While the monthly mortgage payment is probably your main concern, there are other things to consider. You will need to have money to pay the closing costs of the purchase. These include things like appraisals, title searches, and surveys. Along with the monthly mortgage payment, there are going to be costs to maintain the home. You will need to consider homeowner’s insurance and real estate taxes at a minimum. An emergency reserve is a must for those unexpected repairs.

Buying a home is an exciting experience and with a little planning, you can be prepared for the financial aspects as well.

5 Tips to Help Buyers Save for a Down Payment | Realtor Magazine

Saving for a down payment can pose one of the biggest challenges for potential home buyers. 

Indeed, “a down payment is often the largest single payment a consumer makes in their lifetime and saving for it isn’t easy,” says Corey Carlisle, executive director of the American Bankers Association Foundation. “However, with a few changes, consumers can put themselves on track to make their home ownership dream a reality.”

In honor of American Housing Month, the American Bankers Association Foundation recently featured several tips to help consumers cut their household costs and start saving for a down payment.

Determine how much you need. Find out how much you’ll need for a down payment. From there, create a budget by figuring how much you can realistically set aside each month. Then, you can set a timeline. 

Create a separate savings account. Separate a savings account that is just for the down payment. Make monthly contributions automatic. 

Find ways to reduce your monthly bills. Check your car insurance, renter’s insurance, health insurance, cable and Internet plan rates. See if there are any promotions that could help you save money by revisiting your contracts. 

Investigate state and local home-buying programs. Several state, counties, and local governments offer first-time home buyer programs that offer down payment assistance. Find out if you’re eligible for one. 

Celebrate. Set smaller savings goals as you work up to the larger goal. For example, if you need to save $30,000, celebrate — such as with a nice meal — every time you hit the $5,000 saving milestone. “This will help you stay motivated throughout the process,” ABA notes. 

Yellen: Rate Hike May Soon Be Appropriate – Market Update – ZING Blog by Quicken Loans | ZING Blog by Quicken Loans

Headline News

New Home Sales: New home sales projections were up 89,000 or 16.6%, to a seasonally adjusted annual rate of 619,000 in April. This is the highest new home sales projection since January 2008. There was also an upward revision of 39,000 for February and March. Prices of new homes were also up 7.8% for the month to $321,100. This is 9.7% on the year. The surge in sales did have a big effect on the number of homes available in the market as supply fell to 4.7 months from 5.5 months. Turning to regional data, there was a more than 50% increase in sales in the Northeast, which is the nation’s smallest housing region. There also are very few sales in the Midwest overall, but they’re down 4.8% for April. In contrast, sales were up 15.8% in the South and 23.6% in the West.

MBA Mortgage Applications: Purchase applications were up 5.0% and refinances were up 0.4% despite rates that were a little bit higher. The average rate for a 30-year-conforming mortgage was up three basis points to 3.85%.

International Trade in Goods: The trade deficit rose $1.9 billion in April to $57.5 billion when looking at goods. However, demand for goods across the globe was also up as exports rose 1.8%, not quite keeping pace with a 2.3% rise in imports. Exports of industrial supplies were up 5.1% due to higher prices for oil. Exports of cars and trucks were also up 4.5%. Exports of consumer goods were up 1% and foods were up 4.4%. Capital goods were a little weak, up only 0.3%. On the imports side, capital goods were up 4.3%. Industrial supplies jumped 4% due to higher gas prices. Imports of automobiles were up 1.9%, while consumer goods were up 0.9%.

FHFA House Price Index: Home prices were up 0.7% in March and they’re up 6.1% for the year. The Pacific and Mountain regions continue to lead the way in terms of year-on-year price appreciation, in the high single digits. Meanwhile, growth is much slower in New England and the Mid-Atlantic, which bring up the rear.

Durable Goods Orders: New orders were up 3.4% in the month of April. This is an outsized gain over consensus expectations. The big reason for this was a 2.9% gain in orders for vehicles. That’s where a little bit of the air comes out of this balloon. If you take out transportation, orders were only up 0.4% on the month and are down 1.4% for the year. Core capital goods orders were also down 0.8% in April and they’re down 5.0% for the year. This points to weakness in business investment. Still, overall orders are up 1.9% on the year, so we’ll see where this goes.

Jobless Claims: New claims are down 10,000 this week to 268,000. The four-week average rose, up 2,750 to 278,500. Continuing claims, on the other hand, were up 10,000, coming in at 2.163 million. The four-week average was up 8,000 at 2.151 million.

Pending Home Sales Index: Pending home sales were up 5.1% to 116.3 in April. This is a good sign that more homes are under contract. The West was up 11.4% on the strength of existing home sales. In the South, pending sales are up 5.1%.

GDP: In their second revision, GDP numbers for the first quarter came in at 0.8%. This is up 0.3% from the initial estimate, but still failed to meet consensus expectations. There were positive provisions for both residential investment and exports. In a negative, there was an upward revision to inventories. Non-residential investment is still showing only weak gains. Personal consumption was only up 1.9%. Final demand only came in 0.1% higher to 1.2%. Inflation metrics were down 0.1% to 0.6% quarter to quarter.

Consumer Sentiment: Consumer sentiment came in down 1.1 points to 94.7 in its final reading of May. This is still up five points over April and the best since last year. The expectations, however, are up 7.3 point from April, landing at 84.9. This is due to a strong jobs outlook. Current conditions rose 3.2 points from April to 109.9. One-year inflation expectations are down despite higher gas prices, falling 0.1% to 2.4%. Five-year expectations are also down 0.1% at 2.5%, unchanged from April.

Mortgage News

Mortgage rates saw hikes across the board last week.

Thirty-year fixed-rate mortgages (FRMs) averaged 3.64% with an average 0.5 point for the week ending May 26, 2016, up from last week when they averaged 3.58%. A year ago at this time, 30-year FRMs averaged 3.87%.

Fifteen-year FRMs this week averaged 2.89% with an average 0.5 point, up from last week when they averaged 2.81%. A year ago at this time, 15-year FRMs averaged 3.11%.

Five-year Treasury-indexed hybrid adjustable rate mortgage (ARMs) averaged 2.87% this week with an average 0.5 point, up from last week when they averaged 2.80%. A year ago, 5-year ARMs averaged 2.90%.

Stock Market

Markets really like certainty and a sense of direction. Therefore, when Federal Reserve chairwoman Janet Yellen speaks and says an interest rate hike might be appropriate in the coming months, they’re actually pretty happy. It gives them guidance as to what to expect. These were the market conditions heading into the long weekend. All the stock indexes showed major gains.

The Dow Jones Industrial Average was up 44.93 points on Friday and 2.13% for the week, reaching 17,873.22. Meanwhile, the S&P 500 rose 8.96 points to finish at 2,099.06. This was a 2.28% weekly gain. The NASDAQ was up exactly 25 points to 4,926, a 3.44% gain since last Friday.

The Week Ahead

Tuesday, May 31

Personal Income and Outlays (8:30 a.m. ET) – This measures all possible income sources as well as expenditures of the public.

S&P Case-Shiller HPI (9:00 a.m. ET) – The S&P Case-Shiller home pricing index tracks monthly changes in the value of residential real estate in 20 metropolitan regions across the U.S.

Consumer Confidence (10:00 a.m. ET) – The Conference Board compiles a survey of consumer attitudes on the economy. The headline Consumer Confidence Index is based on consumer perceptions of current business and employment conditions, as well as their expectations when considering business conditions, employment and income.

Wednesday, June 1

MBA Mortgage Applications (7:00 a.m. ET) – The mortgage applications index measures applications to mortgage lenders. This is a leading indicator for single-family home sales and housing construction.

ISM Manufacturing Index (10:00 a.m.) – This index measures the general direction of manufacturing within the U.S. The qualitative survey of purchasing managers looks at production, new orders, order backlogs, inventories and supplier deliveries, among other factors.

Thursday, June 2

Jobless Claims (8:30 a.m. ET) – New unemployment claims are compiled weekly to show the number of individuals who filed for unemployment insurance for the first time. An increasing trend suggests a deteriorating labor market. The four-week moving average of new claims smooths out weekly volatility.

Friday, June 3

Employment Situation (8:30 a.m. ET) – The employment situation report measures unemployment in the labor force as well as the sentiments of workers about the job market.

International Trade (8:30 a.m. ET) – International trade is composed of merchandise (tangible goods) and services. It’s available by export, import and trade balance for six principal end-use commodity categories and for more than 100 principal Standard International Trade Classification system commodity groupings.

The employment situation report always has the potential to make the bond markets move one way or the other, so if you see a rate you like this week, now would be a good time to lock it in just in case rates go up.

So we know the important data that’s coming next week, but before you think we’re all mortgages and economics, we’ve got enough home, money and life content to keep you going all week long. Subscribe to the Zing Blog below and never miss another post.

Quicken Quietly Offers 1% Down Loans | Realtor Magazine

Quicken Loans has been fairly hush about its latest offering of a super low down payment mortgage, even as rival bank giants like Bank of America, Wells Fargo, and JPMorgan Chase all tout their new 3 percent down mortgage products. But late last year, Quicken Loans quietly began offering 1 percent down payment mortgages. 

The program emerged from a partnership between Quicken and Freddie Mac in October 2015 and was structured to be part of Freddie Mac’s Home Possible Advantage program, which requires a 3 percent down payment.

However, Quicken Loans offers its customers a 1 percent down because it grants the extra money to the borrower, Bill Banfield, Quicken Loans’ vice president of capital markets, told HousingWire in an exclusive interview. 

“We require 1 percent from consumer and we give the consumer a 2 percent grant, so the client has 3 percent equity immediately,” Banfield told HousingWire.

The 1 percent down-payment loans are available only for those purchasing a home and can only be used on a single-family home or condo (second home and investment properties or co-ops are not included). Borrowers also must have a FICO score of 680 or above and must earn less than the median income for their county. Their debt-to-income ratio must be 45 percent or less. 

“We want to try to help people and do it in a smart way,” Banfield told HousingWire. “For us, it was really a question of if you want to provide access to credit, how do you do it responsibly? How can you help people? If first-time buyers are struggling, are there smart ways to help them while still balancing access to credit? … We wanted to have a conventional option to get people into more homes.”

Brexit could affect mortgage rates | The Columbus Dispatch

Brexit happened. And one of the biggest, and most immediate, effects on everyday Americans is how it will change mortgage interest rates.

Greg McBride, chief financial analyst at Bankrate, said rates could sink to record lows in the coming weeks. “If you’re a borrower, don’t wait to lock your rate,” he said, “as this opportunity may not last long.”

They’ve already hit rock bottom this year. In the past month alone, 30-year fixed-rate mortgages have hovered around 3.7 percent, nearly a three-year low.

Britain’s vote to leave the European Union is expected to drive rates even lower.

Lawrence Yun, chief economist at the National Association of Realtors, said the low interest rates indicate low confidence in Americans’ ability to handle higher rates, due to a slew of factors both domestic and foreign. Rates have been about 17 percent lower than the median of this decade.

However, McBride said his long-term outlook does not change with the Brexit vote. He still estimates a rebound from ultra-low rates by year’s end.

Mortgage Bankers Association chief economist Michael Fratantoni forecasted a rate of 4.8 percent by December 2017. That would be the highest rate since 2009, and a 30 percent boost from current levels.

By the end of 2016, Fratantoni expects rates to reach four percent. He noted that he’s turned his estimates more conservative in recent months, but predicts an increase nevertheless.

That could change with the Brexit referendum passing, however. He noted that Treasury rates had already dropped about 20 basis points by Friday morning.

“At this point, it is unclear whether this will just be a short term disruption, or whether it will have a longer term impact,” Fratantoni said. “Our best guess at this point is that the impact on the mortgage market will be to keep mortgage rates lower for longer, likely leading to another pickup in refinance activity.”

International concerns, particularly slowing growth in China and Brexit, have played a major role in driving down mortgage rates. Until recently, Fratantoni said these global concerns typically did not affect domestic mortgage interest rates.

“Compared to 10, 20, 30 years ago, our rates are much more impacted by global circumstances than what used to be the case,” Fratantoni said. “We used to be much more of an island.”

International and domestic investors alike drive mortgage interest rates through the mortgage-backed security market. Because these securities are considered relatively stable, they attract buyers when economies and markets elsewhere flounder. Mortgage rates are also heavily influenced by the yield on 10-year Treasury notes, and investors have flocked to them to escape turbulence in foreign markets. Together, they have driven down mortgage rates for Americans.

Beware of These Home Inspection Red Flags | Realtor Magazine

A home inspection not only allows buyers to learn more about their home, it also helps them uncover any potential problems.

Curbed.com recently featured a 14-point checklist to help home buyers during a home inspection. Here are a few items they suggest to investigate further during a home inspection that will give your buyers more confidence in moving forward. 

HVAC system. Home inspectors will make sure the home’s heating, ventilation, and air-conditioning system is working, and they should also be able to estimate how long the home air conditioning condenser (the outside unit) should last too. They just need to check the serial number, says Nigel Turner with Total Home Inspection Services in West Milford, N.J. Many condensers last 12 to 15 years before needing replacement. 

Water drainage. “The biggest issue of any home is always going to be water disbursement,” Turner told Curbed.com. “There’s the potential for damage to the foundation. If water is found to be in the vicinity of the house, you want the water to flow away from the house, not towards it.” Home inspectors who use an infrared camera may be able to uncover potential water damage that lurks beneath the surface of a home too.

Roof. Learn how old it is and any potential issues, particularly if anything that you may have to one day bring up to code. Roof problems are responsible for 39 percent of home owners insurance claims, according to data from Trulia. 

Oil tank. Even if the house is heated with gas, it’s still important to check and see if there’s an oil tank on the property in case it once was heated by oil. A tank may still be present. Certain areas require the oil tank to be removed. Others may have just been filled with sand and gravel. Make sure you find out and to ensure it hasn’t leaked into the ground. “Make sure we sweep the whole property,” Elice Shikama of RE/MAX in Franklin Lakes, N.J., told Curbed.com. “Because sometimes sellers think they only have one. They could have multiple underground tanks.”

Chimney. “Chimneys can be a very costly enterprise, if there’s damage to the chimney lining on the inside, if the masonry around the chimney is faulty, corroded, or whatever it might be,” Turner says.