Yajnesh Rai

Mortgage Rates Settle Into the 6% Range

Borrowing costs have been moderating over the past six weeks, declining significantly after breaking 7% last month.

Mortgage rates have been moderating over the past six weeks, declining significantly after hitting a 7.08% high last month. The 30-year fixed-rate mortgage is settling into the 6% range, averaging 6.27% this week, Freddie Mac reports.

Homeownership has become nearly 10% more affordable in this time as rates have eased. The average monthly mortgage payment for a median-priced home has fallen to $2,140, Nadia Evangelou, senior economist and director of forecasting for the National Association of REALTORS®, writes on the association’s blog. “Unless inflation surprises with an upswing, mortgage rates will move closer to 6% at the beginning of the next year, bringing more buyers back to the market,” Evangelou notes.

But will buyers find enough homes on the market? For now, potential sellers appear hesitant to list their homes, adds Sam Khater, Freddie Mac’s chief economist. “Many of those homeowners are carefully weighing their options, as more than two-thirds of current homeowners have a fixed mortgage rate below 4%,” Khater says.

Mortgage rates are about double what they were a year ago. As such, home sales activity is declining. Still, yearly activity is only 4% lower than the historical average, Evangelou says. Freddie Mac reports the following national averages with mortgage rates for the week ending Dec. 22:

• 30-year fixed-rate mortgages: averaged 6.27%, down from last week’s 6.31% average. Last year at this time, 30-year rates averaged 3.05%.
• 15-year fixed-rate mortgages: averaged 5.69%, rising from last week’s 5.54% average. A year ago, 15-year rates averaged 2.30%.

Modern Smart Home Must-Haves in the Multifamily Space

Smart home tech isn’t just for the single-family home. These systems and devices can improve property management, reduce cost and emissions and enhance the tenant experience.

©andresr / Getty

Smart home tech in multifamily communities is quickly becoming a must-have for today’s discerning renter, and with good reason. The right technology can play a significant role in improving residents’ experiences and enhancing the ease of operations for onsite staff. But where to start? As apartment owners and operators consider which amenities to include—either for new builds or when retrofitting existing structures—they must consider what is going to enhance a resident’s experience the most and offer the most ROI.

Many of today’s easy-to-use tools improve the efficiency of property management. These modern conveniences also lend to a positive experience for tenants, providing them with more comfort and control. Smart home technology not only provides improvements that residents crave, but many tech solutions also come with the added benefit of reducing costs for the building owner and property manager.

Smart Access

Smart access begins with smart locks, which can be used in many ways and are appealing to owners, on-site staff and residents alike. These smart features provide a wealth of benefits for all:

Smart Locks Save Property Owners Money

Owners don’t have to worry about paying a locksmith to change out locks or keys between residents. Leasing agents no longer have the frustration that comes with finding the right key or fumbling with a pesky lockbox. And, in addition to saving significant time and money on key tracking systems that cost thousands of dollars, this eliminates physical keys getting lost, being replaced and keeping track of them as residents move in and out. Another benefit is that maintenance teams can work more efficiently and respond to maintenance requests faster.

Smart Locks Save On-Site Staff Time

At one point or another, on-site staff has had to help a resident who is locked out after hours. Smart locks eliminate this issue because residents can simply use their smartphones or enter their access code to unlock their units. For important safety tasks like annual fire inspections smart locks allow on-site to quickly access units with one-time codes. Management can also allow vendors like painters or carpet layers access to vacant units with these temporary codes, which is more secure.

Smart locks are also what make self-guided tours possible, freeing on-site staff to work smarter, not harder. Prospective renters can tour the unit whenever it’s convenient for them and property managers don’t have to plan their day around tours. Renters simply sign up, provide a copy of their IDs, then select the units they want to visit. Before the scheduled viewing, the prospect receives a unique access code to tour the property.

Smart Locks Provide Enhanced Security

Residents love how easy it is to use a smart lock and they have the added benefit of increased security. They can set their own passcodes and typically have access to their homes right from their smart phone. They no longer have to worry about whether they remembered to lock the door, because they can make sure they did—or lock their home—right from an app on their phones.

Many folks often need to share access with others when they are away such as dog walkers and house cleaners. The right smart lock can provide a special guest code for a secure way of offering resident unit access. Only persons with the right credentials get access to the unit.

Smart Locks are in-demand, which means renters will pay more for this amenity, making your property more competitive in the market. The increased retention rates and NOI drive up the value of your assets.

5 Reasons This Isn’t a Repeat of the 2008 Housing Crash

NAR Chief Economist Lawrence Yun draws the distinctions between today’s real estate market and that of more than a decade ago.

Many homeowners are still haunted by the 2008 housing crash when property values collapsed and foreclosures spiked. The memory of sudden catastrophe at a time when the real estate market had been riding high may help explain why 41% of Americans say they now fear a housing crash in the next year, according to a new survey from LendingTree.

Are their fears well-founded?

“It’s a valid question,” Lawrence Yun, chief economist for the National Association of REALTORS®, said Tuesday at NAR’s Real Estate Forecast Summit. “People are remembering the crushing and painful foreclosure crisis. So, it has become a key question: Will home prices crash after the strong run-up in prices across the country over recent years?”

At the virtual conference, where leading housing economists offered their 2023 forecast for the real estate market, Yun offered assurance that current dynamics are nothing like during the Great Recession. He pointed to several key indicators of how this market differs.

• The labor market remains strong. In the last major housing downturn, there were 8 million job losses in a single year. Now there are virtually none. Though layoffs in the technology and mortgage industries are occurring, they haven’t accumulated enough to form a net job loss, Yun noted. A strong job market bodes well for housing’s future.
• Less risky loans. Yun also noted the subprime loans that were prevalent during the 2008 housing bust are basically nonexistent today.
• Underbuilding and inventory shortages. New-home construction prior to the 2008 crash was amounting to 7.65 million units annually. Today, it’s 4.6 million. Yun points to “a massive housing shortage” from a decade of underproduction in the housing market.
• Delinquency lows. About 10% of all mortgage borrowers were delinquent on their loans in the previous housing bust. The mortgage delinquency rate is now at 3.6%, holding at historical lows, Yun said.
• Ultra-low foreclosure rates. Homes in foreclosure reached a rate of 4.6% during the last housing crash as homeowners who saw their property values plunge walked away from their loans. Today, the percentage of homes in foreclosure is 0.6%—also at historical lows, Yun said. He predicted foreclosures to remain at historical lows in 2023.

Overall, the fundamentals don’t point to a housing market that is operating similarly to the 2008 cycle, Yun said. While home sales are slowing, prices remain up nearly 6% as of October sales numbers compared to a year ago. Also, inventory remains low, which will keep home prices elevated, Yun said. “The chance of a price crash is very small due to the lack of supply.”

2023 Real Estate Forecast: Market to Regain Normalcy

But even though mortgage rates and home prices are expected to moderate, home sales may still sag under persistent inventory shortages, housing economists predict.

While 2022 may be remembered as a year of housing volatility, 2023 likely will become a year of long-lost normalcy returning to the market, economists predicted Tuesday during the National Association of REALTORS®’ annual Real Estate Forecast Summit. Next year, mortgage rates are expected to stabilize while home sales and prices moderate after recent highs, according to NAR’s forecast. However, the details could be different from region to region.

Some housing markets may see an uptick in homebuying activity at the beginning of the year, especially if mortgage rates continue receding from a recent high of 7%. Housing inventory is expected to remain tight in 2023, with housing starts below historical averages and fewer homeowners willing to sell, said NAR Chief Economist Lawrence Yun. The ongoing housing supply challenges will prevent home prices from falling, though price appreciation will slow, he added. “I see many hopeful signs for early next year,” Yun said.

But first, the market has to close out 2022, a year when inflation soared to a 40-year high and rapidly rising mortgage rates put the brakes on what had been a pandemic-era homebuying frenzy. Existing-home sales are expected to end the year 16% down from the same time period in 2021, marking their lowest level since 2014, Yun said. Annual new-home sales likely will be down 17% for 2022, returning to pre-pandemic levels.

Yun predicts home sales to fall by 6.8% in 2023 compared to 2022, with the brunt of the slowdown to occur in the first quarter of the new year. Some of the softening can be attributed to homeowners who are unwilling to trade in a higher mortgage rate, as well as economic uncertainty. Meanwhile, home prices in 2023 are forecast to reach $385,800, an increase of 0.3% compared to 2022.

“After a big boom over the past two years, there will essentially be no change nationally” in home prices in 2023, Yun said. “Half of the country may experience small price gains, while the other half may see slight price declines.” He pointed to markets in California, like San Francisco, that may be the exception. The Bay Area could register double-digit price drops of 10% to 15% next year, Yun added.

“Mortgage rates are the lifeblood that drive home sales,” Yun said. For the last four weeks, rates have been dropping after reaching 7.08% in November. On Tuesday, the Consumer Price Index offered hope that inflation is further cooling, prompting the Federal Reserve to start slowing the hikes to its benchmark interest rate.

Yun said he believes mortgage rates may have already peaked. He points to an “abnormally high spread” between 30-year fixed-rate mortgages and the Treasury, which historically are more closely tied together. “As the mortgage market normalizes, it will be an opportunity for rates to decline even further,” Yun said, adding that he expects mortgage rates to settle at 5.7% by the end of next year.

Still, mortgage rates are more than double what they were a year ago, ramping up rapidly this fall and walloping housing affordability. But if inflation continues to slow and rates stabilize, that could bring more buyers back to the market and boost demand for housing, Yun said.

Other leading housing economists also gave their take during NAR’s Real Estate Forecast Summit about what’s in store for the real estate market in 2023.

A Holiday Gift to Home Buyers: Lower Mortgage Rates

Over the last four weeks, borrowing costs have posted their largest decline since 2008.

 

The 30-year fixed-rate mortgage averaged 6.33% this week, according to Freddie Mac, dropping for the fourth consecutive week after hitting a high of 7.08%. Mortgage rates are falling due to increasing concerns about lackluster economic growth, says Freddie Mac Chief Economist Sam Khater. “Over the last four weeks, mortgage rates have declined three-quarters of a point—the largest decline since 2008,” he says. “While the decline in the rate has been large, homebuyer sentiment remains low, with no major positive reaction in purchase demand to these lower rates.”

Mortgage rates are still about double what they were a year ago. But as home buyers adjust to higher borrowing costs, they may start shopping again. After all, falling rates are helping on the affordability front.

Housing affordability has increased about 8% over the last four week as mortgage rates move closer to 6%. “If inflation continues to slow down, mortgage rates may stabilize near 6% in 2023,” Nadia Evangelou, senior economist and director of forecasting at the National Association of REALTORS®, notes on the Economists’ Outlook blog. “With a 6% mortgage rate, housing will become more affordable for many buyers.” Indeed, the typical family will earn about $1,000 more than the income needed to purchase a mid-priced home if rates stay within the 6% range, Evangelou says.

Freddie Mac reports the following national averages with mortgage rates for the week ending Dec. 8:

• 30-year fixed-rate mortgages: averaged 6.33%, continuing their fall from last week’s 6.49% average. Last year at this time, 30-year rates averaged 3.10%.
• 15-year fixed-rate mortgages: averaged 5.67%, dropping from last week’s 5.76% average. A year ago, 15-year rates averaged 2.38%.

Perform a ‘Home Inspection’ While Hanging Holiday Lights

© VICUSCHKA – Moment / Getty Images

Holiday decorating is in full swing, and as homeowners deck their halls, they may want to also use the festivities as an excuse to inspect several out-of-sight ares of their home.

Groundworks(link is external), a basement and foundations firm, offers up tips to spot needed repairs in the home while also hanging your holiday decor. Here are the top seven home issues they suggest looking for:

Electrical outlets

Is a plug no longer working? Outdoor outlets are exposed to the elements and can become damaged. A ground fault circuit interrupter may have been tripped. Take precautions if you find any loose connections or exposed wiring.

Circuit breakers

While installing an outdoor light display, homeowners may discover problems with the home’s electrical system or circuit breaker box. “Some homeowners may only check out their electrical panel if they accidentally throw a breaker,” GroundWorks says. “However, proactive homeowners may want to look at their breaker box before installing holiday lights. You may discover that you need a diagram of which circuits are connected to which outlets or appliances. This can help you avoid overloading a single circuit.” LED Christmas lights tend to use less electricity and may help avoid blown fuses.

Overgrown shrubs

Plants should be about two feet from your house to protect your foundation. Tend to any overgrown plants while hanging holiday lights, or make a note on your calendar to do so in March or April. “If you have overgrown evergreens, you can also give them a light trim around the holidays and use that greenery for home decorations,” Groundworks says.

The roof or gutters

If you’re on a ladder to hang Christmas lights, be sure to take a look at the roof and gutters. Are the gutters clogged? Is rainwater pooling right next to the foundation? Are any shingles missing on your roof? Spot existing damage and avoid creating more problems by using light clips on the edge of your gutter while hanging Christmas lights, GroundWorks suggests.

Chimney

Take a close look at the chimney. Does it look like it’s tilting or starting to separate from the house? This could be a sign of foundation issues. To test it, Groundworks suggests, hold a string with a small weight from the top edge of the house. The string will always fall straight down. Compare that to the structure to determine whether there is a tilt to any portion of the home, including the chimney. A tilting chimney may show a visible gap where it is pulling away from the remainder of the house, Groundworks says. A foundation expert may need to identify the problems and explore the best ways to fix them.

Pest damage

You may also spot damage from pests. “Along the eaves, you could find woodpecker holes or wasp nests,” Groundworks says. “Where the house meets the ground, you could find signs of termites(link is external) or ants.”

Siding damage or wood rot

Look for any signs of deterioration, damage, or wood rot on your siding or window frames. If you find any, your home could be vulnerable to water damage. “In the warmer months, your home could be unprotected from heavy rains, resulting in flooding or moisture in your basement or crawl space,” Groundworks warns. “As the weather turns cold, the damaged siding could allow water inside the walls, cracking the concrete when it freezes.”

The Broken Promise of the iBuyer

Tech firms offering instant cash to home sellers touted simpler, quicker transactions. But the model is floundering in the housing downturn.

 

When iBuyers emerged a few years ago, they made bold promises to revolutionize the homebuying and selling process with instant cash offers and a pick-your-closing-date transaction model. But many of these iBuyers are facing setbacks amid a slowing housing market; some are pulling back and pivoting their business—or even shutting down.

Redfin shuttered its iBuying arm, RedfinNow, in November, while Opendoor, the largest iBuyer, announced $1 billion in losses in the third quarter and FlyHomes reduced its workforce by nearly 40%. Zillow Offers, which was another giant in the iBuyer space, closed in 2021. Redfin CEO Glenn Kelman says his company’s move was a “strategic decision” to refocus on its core real estate business.

The iBuyers that remain in the market reportedly are taking on significantly fewer purchases and making less-enticing offers to sellers. “The iBuyer model remains unproven,” says Kurt Carlton, president and co-founder of New Western, a company that buys and sells properties for home flippers and investors. “It may return with some real utility, but I don’t think the recent overabundance of cash in the venture capital markets was a healthy dynamic for these models. They certainly didn’t seem to provide the urgency and do-or-die grit that often drives real innovation. Now the capital markets have shifted to a ‘profits over promises’ expectation, and many of the iBuyers have found themselves running out of time.”

“The purest iBuyers are essentially pivoting to become more like listing agents,” Carlton says, “showing just how challenging it is to disrupt the current industry standard.”

An Instant Reaction?

Despite promises to disrupt the industry, iBuyers have accounted for a small number of transactions: 1% of sellers sold their home through an iBuyer in the past year, according to National Association of REALTORS® data. Some markets saw more activity than others, such as Phoenix, where iBuying accounted for nearly 10% of sales, according to data from Parcl Labs, a company that tracks iBuyer activity.

Parcl’s research shows iBuyers in the Phoenix area currently hold about $1 billion in housing inventory, says Jason Lewris, co-founder of Parcl Labs. As the market slows, iBuyers are slashing prices by more than 2% every two weeks to unload properties quickly. “As more pressure builds for iBuyers to exit their positions, they will likely become more aggressive in their pricing,” Lewris says. “This will continue a downward spiral until prices reach a point where demand enters to stabilize it.”

Many iBuyers also are reducing their purchases. Opendoor reportedly scaled back its homebuying activity by 45% in the third quarter compared to a year earlier and shut down its mortgage business. The company announced layoffs of 18% of its workforce this fall, and CEO and co-founder Eric Wu said this month that he plans to step down.

Offerpad, another iBuyer, said it slowed the pace of its purchases by 33% in the third quarter compared to a year prior. Nevertheless, “despite the current market volatility, I firmly believe technology-enabled solutions that simplify the homeownership experience will define the future of real estate,” Offerpad CEO and chairman Brian Bair said in a statement.

Refocus, Restrategize

Still, some iBuyers are expanding into other areas while slowing or halting home purchases. Offerpad is beta testing its “My Way” program, which enables home buyers to renovate prior to moving in and roll the costs into their mortgage.

Opendoor is investing in a new program, Opendoor Exclusives, a marketplace for buyers to view off-market homes on a first-come, first-served basis. (Opendoor skirts MLS rules for off-market listings because the company owns its listings.) Homeowners who sell with Opendoor can either request an instant offer or list on Opendoor Exclusives for 14 days to generate buyer interest. Opendoor aims for 30% of its total business to come through the Exclusives marketplace by the end of 2023.

“This is a big shift in their model,” says Mike DelPrete, a real estate technology strategist who authored The 2022 iBuyer Report(link is external). “The proposition of iBuying has always been about speed, certainty and simplicity.” But speed is at risk with Opendoor Exclusives, DelPrete notes, because it doesn’t use the instant offer model. “And it’s less simple. It’s more complex to explain and understand than just pressing a ‘sell’ button.”

Will other iBuyers choose to innovate or retreat from the market? Tech startups like New Western are focusing on niche markets, like managing fix-and-flip properties. “When others are retreating, we’re advancing,” Carlton says, adding that there are 15 million vacant homes in the U.S. that could be rehabbed and returned to the marketplace to help address inventory shortages.

“I’m hoping this more challenging funding environment will drive real innovation to improve the homebuying and selling experience,” Carlton says. “The current market is challenging, and I think the old saying holds true that ‘necessity is the mother of invention.’ It’s hard to tell if iBuying will fade into a niche alternative or evolve into a different approach that proves viable.”

October 2022 Pending Home Sales Decline as Qualifying for a Home Becomes More Difficult

NAR released a summary of pending home sales data showing that October’s pending home sales pace weakened by 4.6% last month and fell 37.0% from a year ago.

Pending sales represent homes that have a signed contract to purchase on them but have yet to close. They tend to lead existing-home sales data by 1 to 2 months.

All of the four regions showed double-digit declines from a year ago. The West had the largest dip of 46.2%, followed by the South with a drop in contract signings of 38.2%. The Midwest fell 32.1%, followed by the Northeast, with the smallest decline of 29.5%.

From last month, all four regions showed reductions in contract signings. The West had the largest dip of 11.3%, followed by the South with a decrease of 6.4%. The Northeast had a drop of 4.3%, followed by the Midwest had the smallest decline of 3.3%.

The U.S. pending home sales index level for the month of October was 77.1. September’s pending sales figures were revised to 80.8.

October’s contract signings bring the pending index below the 100-level mark for the seventh consecutive month.

The 100 level is based on a 2001 benchmark and is consistent with existing-home sales above the 5 million mark.

The Many Benefits of Smart Locks

Safety and security is a given with a door locks, but aesthetics, ease of use and the many features available make the smart lock a smart home must-have.

©Dowell/Getty

Any listing agent or home building will tell you that a home’s curb appeal is important. When the prospective buyer pulls up in front of the house, that first impression can make or break a sale. But what about when the prospect leaves the car and walks up to the front door?

Your next chance to extend that first impression is just above the welcome mat. The front door is where style, security and convenience may all come together through smart locks, which play an increasingly significant role in home sales.

Smart home devices in general are fast becoming an expected part of a new home purchase. According to a recent study by Security.org, seven in 10 home buyers are looking for a smart home, and 78% are willing to pay more for a home with smart devices. This same survey found that “security and safety” was at the top of the list of smart device categories. In a 2022 Z-Wave “State of the Ecosystem” report, smart locks were listed among the top three most popular smart home products, along with smart lightbulbs and Wi-Fi cameras.

An Entrance Set Apart From the Rest

Buyers want to live in a beautiful home with a beautiful entry point. Design innovation has always been a key element in differentiating, positioning and selling any home-based technology, and smart electronic locks are no exception.

Smart locks are often a homeowner’s first step into smart home technology. The devices allow them to introduce their own personal style right at the front door, whether through the color and carpentry of the door itself or the hardware.

To stay competitive, today’s smart lock manufacturers have to offer ever-expanding design options to complement everyone’s taste. For example, Kwikset offers push-button smart locks like the new Home Connect 620, which features maximum control and interoperability and is available in a range of finishes like polished chrome and bronze. Sleek, style-forward smart locks like Obsidian and the SmartCode 916 give a contemporary aesthetic with touch screen pads.

Many manufacturers also pair their smart lock offerings with matching handle sets—pairing color, finish and style to give the home’s entrance a cohesive look.

A Welcome and Appealing Connection

With connected smart locks, sales agents no longer need to find a key or fumble with a lock box. Real estate professionals use a personalized key code to open the door, highlighting the benefits and ease of a smart lock at the very start of the home tour.

Smart locks are the safest way to show who has access to a client’s home. Key codes can be created in advance, or if a homeowner knows someone is coming to their house, codes can be created on-demand and then removed when no longer needed. Homeowners can schedule codes for everyone from the plumber scheduled at 11 a.m. to the home healthcare worker coming to check in on an elderly parent.

Smart locks provide a degree of security and peace of mind that most home-automation devices simply do not. Other technological advantages of smart locks that can be demonstrated at the front door, or at least be part of a sales pitch, include:

• Re-key technology allows homeowners to re-key their own locks quickly and easily, without removing the locks from the door.
• Features like Kwikset’s SmartKey SC1 technology mean added convenience. With the SC1, any Kwikset lock using SmartKey can be keyed to an additional lock so that a single key can open both. Now all the doors in a home can share one key.
• Users can also remotely communicate with and control the lock using their smart phone, tablet or laptop.
• Smart locks can be part of a smart security ecosystem. This can include any combination of smart locks, smart doorbells, indoor/outdoor cameras, door-window and motion sensors, alarm systems, control hubs and more. These home automation products not only improve the lives of homeowners but also protect them and keep the home and family safe.
• Connected smart locks not only connect with and control all the security devices, but they can also control the other devices in the home.

Bringing the Appeal Inside

With a central hub and a home automation protocol like Zigbee or Z-Wave, smart locks can wirelessly communicate with and control the network of devices that make up a home automation system – everything from thermostats to lighting to entertainment systems.

With home automation control conveniently located at the front door, homeowners (and home sellers) can set up the home with customized smart-home scenarios that will take effect just before they step inside. Here’s an example: A homeowner can program the lock so that every time they unlock the door, the foyer light turns on, automated shades go up, and the smart thermostat sets their desired temperature. This kind of customization is a perfect differentiating detail during a showing.

Smart locks and their capabilities aren’t just for front doors, either. Homes with built-in wine cellars, bar areas, libraries, or home offices have the option of extra security and convenience when smart locks are added to them.

Smart Opportunity Knocks

Builders focus on building homes people want to live in for the right price. For home sellers, competitive advantage is the key. When price and location are similar, most builders and sellers welcome any differentiating factor that won’t break the bank. This is one reason home automation devices, and smart locks, are becoming part of a growing percentage of new home builds.

For security dealers, the trend of attracting homebuyers with new technology is a major new business opportunity.  Many builders need a partner who can educate them and deliver this advanced technology, not to mention service it. Ultimately, dealers need to reinvent themselves as technology providers rather than just security providers. In doing so, the dealer becomes a valuable partner to the builder who passes that value onto the homeowner.

Smart locks add value for everyone from the listing agent to the homebuyer and the builder to the tech company. They aren’t just a sound investment from a safety perspective. They add a level of convenience and aesthetic rarely achieved by other smart devices. They’re relatively easy to install and have a reasonable starting price, making them accessible as well. Starting with a smart lock is an easy way to boost value, add security and jump into the smart home realm.

4 Surprising Things That May Increase How Much Your Home Is Worth

Does your home offer any of the perks some buyers will pay more for?

To understand how much your home is worth, you have to know what affects its value. The Zestimate home value is Zillow’s tool for extrapolating the real market value of your home, based on existing home-related data and actual sales prices in your area.

Thousands of data points correlate with home values and sale prices — some of which are obvious (like the condition of the home) and some that aren’t.

Here are several surprising things that can affect either the existing value of your home or the price someone is willing to pay for it, all based on data.

1. Proximity to a Starbucks

How far do you have to drive to get a Frappuccino? If the answer is “not that far,” you’re in luck.

A 2015 Zillow report found that, between 1997 and 2014, homes within a quarter-mile of a Starbucks increased in value by 96 percent, on average, compared to 65 percent for all U.S. homes, based on a comparison of Zillow Home Value Index data with a database of Starbucks locations.

To evaluate if this effect is isolated to Starbucks, the research team looked at another coffee hot spot (one with particular pull on the East Coast): Dunkin’ Donuts.

The data showed that homes near Dunkin’ Donuts locations appreciated 80 percent, on average, during the same 17-year period — not quite as high as homes near a Starbucks, but still significantly above the 65 percent increase in value for all U.S. homes.

2. Blue kitchens and blue bathrooms

Beyond America’s obsession with curb appeal, what’s inside your house counts a lot too — especially the colors you paint the rooms (particularly the kitchen).

According to Zillow’s 2017 Paint Color Analysis, which examined more than 32,000 photos from sold homes around the country, homes with blue kitchens sold for a $1,809 premium, compared to similar homes with white kitchens.

Blue is also a popular bathroom shade. The same analysis found that homes with pale blue to soft periwinkle-blue bathrooms sold for $5,440 more.

Walls painted in cool neutrals, like blue or gray, can signal that the home is well cared for or has other desirable features.

3. Trendy features

Joanna Gaines’ aesthetic is permeating more than just your YouTube search history. Zillow listings mentioning the shiplap queen’s favorite features — like barn doors and farmhouse sinks — sell faster and for a premium, according to a 2016 Zillow analysis of descriptions of more than 2 million homes sold nationwide.

Listings with “barn door” in the description sold for 13.4 percent more than expected — and 57 days faster than comparable homes without the keyword. Meanwhile, listings touting “farmhouse sink” led to a nearly 8 percent sales premium.

Sellers can use the listing descriptions to highlight trendy details and features that might not be noticeable in the photos.

4. How close you are to a city

If you own a home in a major American metropolitan area, you’re most likely sitting on a significant (and rapidly appreciating) financial asset. Case in point: Home values in the New York, NY, metro area are worth $2.6 trillion, per a recent Zillow analysis.

The average urban home is now worth 35 percent more than the average suburban home. Since 2012, the median home value in urban areas has increased by 54 percent, while the median home value in suburban areas is up just 38 percent.