Fifty-six percent of consumers in the United States and United Kingdom admit to being jealous of other people’s homes, according to a survey of more than 1,000 conducted by bathroom retailer QS Supplies. Millennials are the generation greenest with envy at 60.8% compared to 53.8% of Gen Xers and 37.9% of baby boomers. “More likely, millennials are moved to envy by the proliferation of social media,” researchers say.
Overall, home size evoked the most consumer envy, with 26% of survey respondents citing such. The second-most envied home feature was the kitchen. “A good-looking kitchen is one of the key features to help sell a home, encouraging buyers to put their money where their envy is, so it’s no surprise that this room was mentioned often by our respondents,” the researchers note.
Jealousy has prompted some homeowners to take on home improvement projects. Thirty-five percent of survey respondents say they did a home improvement project after feeling jealous about someone else’s home. The most common upgrades were interior design, furnishings, interior paint, cleaning, or kitchen updates.
Most consumers’ feelings of jealousy stem from a friend (43.8%), the survey finds. Other common reasons for jealousy include:
The influence of a friend: 43.8%
The influence of an immediate family member: 28.7%
A social media influencer: 27.5%
A colleague: 21.7%
An ex-partner: 9.2%
Watching TV also prompted envious feelings among 67% of respondents. The top American show to cause home envy is HGTV’s “House Hunters,” according to the survey. On social media, Instagram was the main culprit for sparking house jealousy. Thirty-two percent of survey respondents say they experienced home envy while using their Instagram account
Borrowing costs inched down for the second consecutive week. The 30-year fixed-rate mortgage averaged 3.33%, Freddie Mac reports.
“Mortgage rates have drifted down for two weeks in a row and that drop reflects improvements in market liquidity and sentiment,” says Sam Khater, Freddie Mac’s chief economist. “While the market has stabilized relative to prior weeks, home buyer demand has declined in response to current economic conditions. The good news is that the pending economic stimulus is on the way and will provide support for both consumers and businesses.”
Freddie Mac reports the following national averages with mortgage rates for the week ending April 2:
30-year fixed-rate mortgages: averaged 3.33%, with an average 0.7 point, falling from last week’s 3.5% average. Last year at this time, 30-year rates averaged 4.08%.
15-year fixed-rate mortgages: averaged 2.82%, with an average 0.6 point, dropping from last week’s 2.92% average. A year ago, 15-year rates averaged 3.56%.
5-year hybrid adjustable-rate mortgages: averaged 3.4%, with an average 0.3 point, rising from last week’s 3.34% average. A year ago, 5-year ARMs averaged 3.66%.
As everyone settles into their homes to ride out the COVID-19 pandemic, their energy bills will jump, perhaps even skyrocket. But there are some simple things that homeowners can do to curb their costs, particularly as electronics and lights are used .
Sense, a company that offers home energy monitoring solutions, offers up the following five ways to save money on energy costs at home during this time.
1. Turn off electronics when not in use.
Keeping gadgets on constantly will add to your electricity bill. Consumer electronics and common devices can account for 23% of the average electricity bill—or about $322 annually, according to Sense. Turn off devices that aren’t in use. Place printers, PCs, laptops, home entertainment equipment, and gaming systems on power strips. Turn them off when not in use.
2. Swap out every incandescent light bulb.
Incandescent bulbs can use up to 70% more energy than LEDs. They can be all over your home—inside your fridge and your oven and outdoors such as porch lights. Swap them out to help save on your energy bills.
3. Turn off extra appliances.
Consider consolidating food into a single refrigerator. Particularly older fridge or freezer models can be energy hogs. For example, Sense says that a 10-year-old refrigerator alone could add $53 annually to your energy costs. Refrigerators that should be maintained to keep them working most efficiently: Vacuum the condenser coils, inspect and clean the door gaskets for a proper seal, and check the temperature setting (at or below 40 degrees for fridge and 0 for the freezer), Sense recommends.
4. Clean the dryer vent.
Lint collects in the dryer vent and can make your dryer less efficient. Blocked vents can also become a fire hazard. Clean out the dryer duct and vent, but be sure to follow safe practices. If you’re looking for more savings, consider hanging your clothes outside to dry on a warm day or set the dryer on a delicate cycle to use less energy.
5. Turn off your coffee maker.
Coffee makers may have a warming mode to allow them to stay on for a prolonged time. That could add up to $60 annually on your electricity bill, Sense says. Turn off the coffeemaker warmer and use your microwave to reheat to save on costs.
Federal guidance from the Department of Homeland Security has included real estate in a list of essential services that are deemed critical to public health and safety, as well as economic and national security.. State and local officials, however, have been issuing guidelines that could prevent normal business operations for real estate professionals in some areas. Those local mandates should take precedence over federal guidance, experts advise.
Where real estate services are continuing—albeit in modified forms—brokerages are cautioning their agents to act responsibly and to practice safe social distancing in light of the coronavirus outbreak.
Under the issued Homeland Security guidance, “residential and commercial real services” are included on a 15-page list of essential services. These cover settlement services and government offices that conduct title searches, notaries, and mortgage and recording services, as well as construction. The advisory letter was created by the Homeland Security’s Cybersecurity & Infrastructure Security Agency.
“This list is advisory in nature,” the guidance notes. “It is not, nor should it be considered, a federal directive or standard.”
Indeed, REALTORS® should follow the guidelines set forth by their city, county, and state governments, urges Katie Johnson, general counsel and chief member experience officer for the National Association of REALTORS®. “It is imperative you adhere to the order” of your local jurisdiction, Johnson says.
“Being deemed an essential service means that you have a special responsibility and opportunity to continue operations if you choose to but not if you don’t. It means you have the special responsibility and mandate to adhere to your state’s executive order regarding ‘essential services.’ ”
REALTORS® also have a responsibility to abide by all necessary health and safety precautions mandated by your state’s executive orders that would apply to business activities such as in-person property showings or other face-to-face gatherings. “We all have a special responsibility to lead by example, to do what we think is best for our communities and ourselves, and to do what we think best for the reputation of the industry,” Johnson says.
The COVID-19 outbreak will undoubtedly have a long-lasting influence on Americans and the housing market moving forward. Housing analysts are already weighing in on what those changes could be.
In a new report, Apartment List highlights a few of the long-term changes they foresee coming from the COVID-19 pandemic:
Mobility will initially be low before spiking.
“Geographic mobility generally declines during downturns, when a lack of job opportunities catalyze fewer long-distance moves across market or housing upgrades,” the report notes. Evictions and foreclosure moratoriums will also help slow mobility. But housing analysts are predicting a spike in moves once the COVID-19 outbreak eases. “Many upgrade and downgrade moves will be postponed rather than canceled, creating a reshuffling of households throughout the recovery,” researchers note. The future wave will include those relocating for jobs, moves to be closer to family, and young adults forming their own households. Also, those who still hurt financially even after the pandemic lessens likely will need to move too.
Affordable housing is likely to become even more difficult to find.
Affordable rentals and homes for sale were already in short supply prior to the pandemic. “Fewer people moving means fewer homes available,” the report notes. “With both pandemic and policy keeping people in place, affordable units will become even more rare through the 2020 peak season.” Luxury apartment inventory, on the other hand, may be abundant.
Housing inequality could increase.
Higher earners will likely take advantage of low borrowing costs for refinancing to lower their payments as well as have more choices with the growing luxury rental inventory. On the other hand, lower-income households will likely struggle due to a sluggish economy and face increased competition for limited affordable housing. “As shelter-in-place orders cover a growing share of the nation, those who are able to work remotely are at a distinct economic advantage,” the report notes. “Unfortunately, a correlation between income and the ability to work from home reveals that the lowest earners will be hit hardest by these measures. Fifty-two percent of full-time workers who earn more than $100,000 annually say they can work from home. But only 15% of workers who earn less than $25,000 are able to work from home.”
Sight-unseen housing is likely to accelerate.
Some households may need to make a move sight unseen into their new home or apartment. “Many apartment communities are already enabling virtual tours in response to the pandemic, and many renters and owners alike may soon be evaluating their next home through a tablet screen,” the report notes. “Mainstream adoption of sight-unseen moves will bring both opportunities and challenges for the housing market.” In the rental market, sight-unseen transactions may prompt elevated levels of rental fraud, Apartment List notes.
How is Home Buying and Selling during Shelter In Place
It is in best interest of everyone to follow the instructions and guidelines from the authorities about Shelter in Place. Therefore, as good citizens all buyers, sellers and all real estate professionals are advised to follow best practices. Housing has been categorized as essential business activity. Extreme care should be taken during conducting business.
Need to Sell: Given personal circumstances, some seller HAVE to sell. Therefore those homes have to come on market. If they had the chance, ideally they would wait for market activities to pick up so they would benefit the most. If they can’t wait, then have to put the home on market.
Vacant vs Occupied Homes: If the home is not occupied, it becomes much easier during these times. It is much easier to get essential services to prepare the home for sale. It would be easier to avoid coming in close proximity of other people. It gives the agent an opportunity to create Virtual Tours with sophisticated technology available today. Instead of having the buyers visit the properties, it would be best to view the virtual tour and shortlist homes for writing offers. It is harder to sell homes that are occupied in that respect. It is extremely difficult to get other professionals in and out of homes, while we know that the sellers have to live in the home. It is quite risky. Extreme sanitizing measures have to be taken in these situations. Other steps would be the same but the time taken would extend.
Subject to Viewing offers: The offers can be written “subject to inspection/viewing”. This clause allows the buyers to get in contract and then at a more suitable and low risk opportunity, view the home and then decide if they want to proceed further or back out. Sufficient time should be given for each contingency as applicable and also close of escrow. The contingencies and hence the closing are all dependent on various professionals therefore, there is likelihood of delays.
Time Factor: Since most activities in a transaction are dependent on other professionals, appropriate time has to be factored. Following are the possible professional dependencies (not limited to). Not all professionals are willing to go out and work and therefore, even being an essential activities, there will be delays.
– Inspectors
– Appraisers
– Loan Originators
– Loan Processors
– Underwriters
– Title/Escrow professionals
– Government officials (Taxes, Assessors etc).
Real Estate sales are happening. Properties are coming in market and getting in contract during these times as well. Real Estate professionals are educating the clients and navigating them thru the processes with everyone’s health and safety in mind.
For questions or discuss your situations please call Yajnesh or Sangeeta.
Mortgage giants Fannie Mae and Freddie Mac unveiled a payment deferral option for homeowners struggling to make their mortgage payments, regardless of whether the reason is related to COVID-19. Homeowners could be eligible to defer two months of their mortgage payments until the end of their mortgage, depending on their circumstance.
The GSEs had intended to announce a payment deferral program later this year, but the agencies decided to roll out the program now due to the coronavirus outbreak. The payment deferral program is available to borrowers who have faced a short-term hardship that has caused them to miss one or two months of mortgage payments.
If borrowers resolve that hardship within those two months, they will be eligible to defer the two months of missed payments to the end of their loan, without having to modify their loan.
“This innovative relief solution addresses a unique hardship situation—homeowners who have resolved a short-term hardship,” Freddie Mac said in a statement about the new program. “It aims to serve those homeowners with a more affordable workout that’s between a repayment plan and a modification. This is a broad offering that is aligned with Fannie Mae … to assist more struggling homeowners.”
In recent days, the Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, also has announced forbearance options for up to 12 months and mortgage relief to those facing a hardship due to the coronavirus national emergency. The FHFA has also suspended all foreclosures and evictions for at least 60 days. The aid applies to homeowners who have a loan backed by Fannie or Freddie.
Scam artists are reportedly using multiple methods, including spoofing tactics, to try to trick struggling homeowners with offers of financial aid. Freddie Mac warned this week that it learned of a scam where borrowers were receiving fraudulent calls impersonating the mortgage financing giant in offering low interest rates and other false promises.
Freddie Mac says it will never reach out to consumers over the phone with a refinancing opportunity or a new loan.
As some homeowners struggle from the economic toll of the COVID-19 outbreak, scammers are looking to take advantage of those looking for help. They may call owners offering immediate relief from foreclosure or relief from making mortgage payments.
Freddie Mac, Fannie Mae, and many lenders are offering programs to help homeowners at this time, but those calls need to be initiated by the owner.
“Spoofing is when a caller deliberately falsifies the information transmitted to your caller ID in an effort to disguise their identity while pretending to be someone else,” Freddie Mac warns in a statement about the growing scam.
“During times of distress, it is important to be on your guard against fraud schemes,” Freddie Mac says in a post.
Here are some tips from Freddie Mac to help homeowners avoid being scammed:
If a call comes from an unknown number, let it go to voicemail. If it’s important, the caller will leave a message.
If you answer and receive a robocall, don’t press any numbers. Hang up.
Never give out any personal, financial, or other sensitive information unless you’ve verified the caller is a legitimate source.
Be cautious of numbers on your caller ID since scammers can make any name or number appear.
Scam artists are reportedly using multiple methods, including spoofing tactics, to try to trick struggling homeowners with offers of financial aid. Freddie Mac warned this week that it learned of a scam where borrowers were receiving fraudulent calls impersonating the mortgage financing giant in offering low interest rates and other false promises.
Freddie Mac says it will never reach out to consumers over the phone with a refinancing opportunity or a new loan.
As some homeowners struggle from the economic toll of the COVID-19 outbreak, scammers are looking to take advantage of those looking for help. They may call owners offering immediate relief from foreclosure or relief from making mortgage payments.
Freddie Mac, Fannie Mae, and many lenders are offering programs to help homeowners at this time, but those calls need to be initiated by the owner.
“Spoofing is when a caller deliberately falsifies the information transmitted to your caller ID in an effort to disguise their identity while pretending to be someone else,” Freddie Mac warns in a statement about the growing scam.
“During times of distress, it is important to be on your guard against fraud schemes,” Freddie Mac says in a post.
Here are some tips from Freddie Mac to help homeowners avoid being scammed:
If a call comes from an unknown number, let it go to voicemail. If it’s important, the caller will leave a message.
If you answer and receive a robocall, don’t press any numbers. Hang up.
Never give out any personal, financial, or other sensitive information unless you’ve verified the caller is a legitimate source.
Be cautious of numbers on your caller ID since scammers can make any name or number appear.
The National Association of REALTORS® has sent a letter to Congress urging lawmakers to include policy in coronavirus response legislation that would pave the way for remote notarizations nationally and make it easier to complete transactions entirely digitally as the coronavirus crisis deepens. The Securing and Enabling Commerce Using Remote and Electronic Notarization Act of 2020, also known as the SECURE Notarization Act, was introduced last Wednesday by a bipartisan coalition of senators and has already garnered broad support across the real estate industry.
Twenty-three states have remote online notarization policies, which permit a notary and signer in different physical locations to safely execute electronic documents. But borrowers in more than half of the states remain unable to close a real estate transaction without an in-person notary. “As the nation and world grapple with some of the most difficult and uncertain circumstances of our lives, NAR continues working with the federal government to secure policy to promote public safety and protect this critical driver of our nation’s economy,” NAR President Vince Malta said in a statement.
To address fraud and security concerns, the SECURE Notarization Act requires multifactor authentication, use of tamper-evident technology, and use of two-way, real-time audiovisual technology to enable the signer and notary to see and hear each other simultaneously.
The reliability and validity of notarized public records is central to the real estate market and provides a foundation for all parties when mortgaging, purchasing, and selling real property, NAR says. An electronic notarization takes place when the notarial seal, signature, or certificate is created, placed, and stored electronically. Beyond real estate transactions, the SECURE Notarization Act would allow Americans to execute legal, healthcare, financial, and other vital documents from the safety of their own homes.
Addressing concerns that the legislation will prohibit states from promulgating their own notary training policies, NAR clarified that the bill sets the floor—not the ceiling—for use of remote online notarization and doesn’t prevent states from passing their own laws or setting their own regulations. States that have already enabled the use of RON would have to meet the proposed minimum national standards under the SECURE Notarization Act. Minimum regulations set forth in the act aim to ensure consumers are adequately protected when using RON. In addition to the 23 states that have already passed RON legislation, 13 other states are considering following suit.
