Yajnesh Rai

Architectural Elements Best Left Untouched in a Remodel | Realtor Magazine

Some items in older homes should not be touched in a remodel, designers warn.

Homeowners should hold off on removing certain architectural details because they could be removing some selling points in the process.

“Architectural features that give homes distinct character should be left intact,” Patrick Garrett, a broker and owner at H&H Realty in Trussville, Ala., told realtor.com®. “There are home buyers looking for homes with unique features and older homes with character and charm.”

Realtor.com® highlighted several qualities in older homes that shouldn’t be touched, and molding was at the top of the list.

“On the inside of the home, the first things we salvage are the staircase, window trim, and crown molding,” Thomas Kenny, co-founder of Scott Simpson Design + Build in Northbrook, Ill., told realtor.com®. “The original molding, in particular, gives the home character and is usually crafted from high-quality materials that will stand the test of time.”

Stained glass is another feature that experts recommend keeping, and it can make a home more valuable. “Once you come across [stained-glass windows], you will remember them for a lifetime,” Anastasios Gliatis, CEO at Anastasios Interiors in New York City, told realtor.com®. “They also provide a spiritual, peaceful feeling, since they are identified with churches.”

Exposed brick walls are nothing to put a sledgehammer too either. Instead, make it the focal point of the room, says Laurie DiGiacomo, principal designer at Laurie DiGiacomo Interiors in Ho-Ho-Kus, N.J. “You should not remove exposed brick, because it lends a unique architectural element that brings texture and a rustic vibe to a space,” she told realtor.com®.

Don’t touch those doors either, designers add. Solid core and paneled doors don’t compare to todays’ big-box styles. “Old solid-core doors, and often their metal elements like doorplates, are real gems,” Jonathan Self, a real estate professional at Center Coast Realty in Chicago, told realtor.com®. “You can’t buy these with any amount of money, because the craftsmanship it takes to make them doesn’t exist anymore.” Gliatis adds that preserving paneled doors that include brass knobs and hinges is particularly a smart move because they are expensive and difficult to find nowadays.

Contract Signings Surge, But They Could Be Even Higher | Realtor Magazine

Real estate pros are having a busy winter, and with buyer demand high, it could be even busier if it wasn’t for a lack of inventory continuing to plague many markets. Pending home sales rebounded in January, rising 5.2% month over month, the National Association of REALTORS® reported Thursday. Contract signings are up 5.7% over year-ago levels.

“This month’s solid activity—the second-highest monthly figure in over two years—is due to the good economic backdrop and exceptionally low mortgage rates,” says Lawrence Yun, NAR’s chief economist. “We are still lacking in inventory. Inventory availability will be the key to consistent future gains.”

The higher sales numbers are emerging despite combined inventory levels in December and January falling to the lowest levels since 1999, NAR reports.

NAR’s Pending Home Sales Index is a forward-looking indicator based on contract signings. Contract signings in January were up month over month in every region of the U.S., except the West, which saw a minor drop in activity. Sales, however, posted annual gains in every region of the U.S.

Lack of housing inventory continues to weigh on the housing market. But that hasn’t chipped away at buyer demand, even in the colder months when business typically slows.

“With housing starts hovering at 1.6 million in December and January, along with the favorable mortgage rates, among other factors, 2020 has so far presented a very positive sales climate,” Yun says. “Moreover, the latest stock market correction could provide exceptional, even lower mortgage rates for a few weeks, and that would help bring about a noticeable upturn in the coming months.”

 

@ National Association of REALTORS®

 

 

Freddie: Mortgage Rates Are ‘Deal of the Century’ | Realtor Magazine

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Borrowing costs continue to head lower, enticing home shoppers and refinancers to lock-in.

“Given the recent volatility of the ten-year Treasury yield, it’s not surprising that mortgage rates again have dropped,” says Sam Khater, Freddie Mac’s chief economist. “These low rates combined with high consumer confidence continue to drive home sales upward, a trend that is likely to endure as we enter spring.”

Freddie Mac reported the following national averages with mortgage rates for the week ending Feb. 27:

• 30-year fixed-rate mortgages: averaged 3.45%, with an average 0.7 point, falling from last week’s 3.49% average. Last year at this time, 30-year rates averaged 4.35%.
• 15-year fixed-rate mortgages: averaged 2.95%, with an average 0.8 point, falling from last week’s 2.99% average. A year ago, 15-year rates averaged 3.77%.
• 5-year hybrid adjustable-rate mortgages: averaged 3.20%, with an average 0.2 point, falling from last week’s 3.25% average. A year ago, 5-year ARMs averaged 3.84%.

Mortgage rates fluctuate, and over the last 50 years they’ve changed significantly, Freddie Mac notes in a recent blog post. Consider, in the 1970s, the average rate was 8.86% compared to today’s 3.45%. Freddie Mac compiled the following chart to show how much mortgage rates have changed over the last five decades.

 

© Freddie Mac

 

 

The Share of Single Homeowners Is at Record High | Realtor Magazine

Even as home prices rise, more Americans are heading into homeownership alone. The share of U.S. homeowners who are single reached a record 38.4% in 2018, the latest data available from the U.S. Census Bureau. A separate report says 48.5% of singles aged 18 to 34 owned a home in 2018, the highest level since 2009.

The numbers are higher because more Americans are single, analysts say. Also, an improving economy and strong job market is fueling more Americans to step out on their own in homeownership, even as home prices escalate, USA Today reports.

The share of 18- to 34-year-old Americans who are single reached a record in 2018 at 72.3%. “People are getting married later in life,” Ralph McLaughlin, chief economist for Haus, a company that partners with individuals to buy homes to reduce their costs, told USA Today. Women are increasingly entering the workforce and are rising to higher-level positions, delaying marriage and having children, he says. Older millennials who were delayed by the Great Recession in 2007 through 2009 also may have delayed marriage to put their careers first.

Also adding singles to the housing market: the rising number of Americans who have divorced later in life. In 2018, a record 16.1% of people 55 and older were divorced, up from 5% in 1980. A divorce can produce two single homeowners, McLaughlin notes.

But being single isn’t curbing appetite for homeownership. “Owning a home is a better deal than renting” in the majority of the country, McLaughlin told USA Today. Homeowners—no matter single or married—are realizing that and taking the plunge.

Builders are starting to gradually respond by ramping up entry-level homes. From 2015 to 2018, the share of homes less than 2,400 square feet increased to 51% from 47%, according to an analysis from the National Association of Home Builders.

But buying a home solo can pose challenges. The national median home price has increased 54% since 2012. However, the growth in average wages in that time has increased only by 20%, according to data from the National Association of REALTORS®.

Single homeowners tend to be more common in markets that are less expensive. For example, Des Moines, Iowa, tops the nation with nearly a quarter of all young adults who are single homeowners. On the other hand, less than 10% of young people are single homeowners in pricier markets like New York or San Francisco.

Investors Find Pet-Friendly Properties More Profitable | Realtor Magazine

Today, American households are more likely to include pets than children under the age of 18, according to the U.S. Census Bureau’s American Housing Survey. The share of households with kids stands at 27%, while the share of households with pets is at 68%. As a result, investors in residential real estate are targeting this large demographic of pet owners by making their rental properties more appealing and pet-friendly.

Pet-friendly rentals can also increase investors’ profits, suggests a study conducted by FIREPAW Inc., an animal welfare nonprofit research firm. Also, vacancy rates for rentals that allow pets tend to be lower than those that don’t allow pets. Furthermore, landlords spent less than half as much money on advertising their pet-friendly units, and were able to increase their profit by charging separate pet deposits.

This has made more investors want to make their properties appeal to pet-owning tenants. So, they’re taking on a variety of upgrades, such as swapping out carpet for ceramic tile, using pet-safe lawn products, and adding features like cat and dog doors or adjustable shower heads to bathe pets.

Pets also appear to be heavily on the minds of home shoppers. A survey by realtor.com® showed that 87% of home buyers with pets say they take their pets’ needs into account when searching for a home.

“To target the pet parents themselves, investors can provide information about local services such as pet sitters and dog walkers, plus leave pet-centric gifts such as toys and treats upon move-in,” Christopher Long, founder and chief executive at Radius Realty, wrote in a column for Forbes.com.

Certainly, damage to a property from pets is a chief concern among landlords. The FIREPAW study, however, found that tenants with pets tended to cause less damage than tenants with children. Further, even the worst of damages caused by pets tended to be “far less than the average rent or the average pet deposit,” the report notes.

Improve a Home’s Lighting Without an Electrician | Realtor Magazine

Lighting can set the right mood in a home and make it feel more welcoming, and achieving that doesn’t always require an electrician. Curbed.com asked three designers to provide their best tips for improving the lighting in a home. Here are a few of their suggestions.

Match the lightbulbs. Change the mismatched types of lightbulbs, particularly old compact fluorescent bulbs, Jenny Guggenheim, owner of Guggenheim Architecture and Design Studio in Portland, Ore., told Curbed. Replace them with one type of LED bulb. “In old homes, there are sometimes three or four different types of lightbulbs—each with its own color temperature,” says Guggenheim. “This easy fix can go a long way towards elevating your lighting.” Try using 2,500K to 2,700K warmth LED bulbs. “That range mimics daylight, but a little on the warmer side,” Guggenheim told Curbed.

Layer the light. By layering the light in your space, you can create a more welcoming atmosphere. Have at least two layers of light, designers say. The first layer will likely be an overhead, brighter light. For the second layer, use a light on a table or a floor lamp. Make sure to offset the brighter light with a layer of more diffused lighting. “You’ll immediately recognize how expansive the light is—it’s softer, warmer, and more flattering,” she says. Diffusion can take many forms, including the opaque glass of a bulb and the fabric, glass, or paper of the shade,” Alex Kalita, founder of Common Bond Design in Brooklyn, N.Y., told Curbed.

Watch the scale. Avoid using too small a light source for the space it’s in, Guggenheim suggests. For example, don’t use a tiny table lamp in a large entryway.

Place lamps throughout. “I love putting lamps on shelves mixed in with books or on the open shelving in the kitchen,” Megan Pflug, designer and owner of the Woodhouse Lodge in Greenville, N.Y., told Curbed. “You can even put one on top of the fridge.”

6 Design Trends Already Shaping 2020 | Realtor Magazine

From bold, bright colors to statement wall art, several design trends are heating up in 2020. “Look for daring color statements and unexpected uses of natural elements to accessorize and help transform home designs,” says Angela Nuessle, national vice president of interior design at PulteGroup. The PulteGroup design team is calling out these six home design trends for 2020.

• Curvilinear forms. Arched lines with smooth transitions can help soften the look of a home, designers say. “From couches and chairs to tables and ottomans, curves add a retro vibe that spans from midcentury to high glam,” design forecasters from PulteGroup note.
• Natural texture. More home elements are taking their raw form. “From household accessories to furnishings and textiles to home decor, natural texture will add visual significance, intensity, and depth to interiors,” the designers say.
• Unique adornments. For example, leather accents and belts are being added to chairs and beds. Gilded hardware is popping up on cabinets and furniture. Ornamentation is creating more unique spaces, designers say.
• Different wall art. “This year will move beyond traditional design to focus on wall applications that incorporate mixed-media and abstract elements with natural elements, including yarn, wood, woven fibers, and stone,” the designers say. “The key is to achieve texture, depth, and intensity with unique pieces that will make a lasting impression.”
• Bold patterns. Large graphic florals and botanicals continue to be popular in home design. “Embracing the wild side comes with color palettes reminiscent of camouflage and a pronounced focus on alluring moments in nature coming into play with design,” the PulteGroup designers note.
• Color statements. The trend goes beyond just one accent wall. “More distinct elements, such as upholstery, case pieces, and large statement art, will embrace this impressive trend,” PulteGroup designers say. “They key is to strike balance between incorporating bold color statement pieces with subtle, layered neutrals.”

Cobuying Gains Traction Among Young Adults | Realtor Magazine

Faced with rising home prices and student loan debt, some cash-strapped millennials who don’t have family support are teaming up with friends to carve out a path toward homeownership. About 4% of first-time buyers purchased homes with housemates from July 2018 through June 2019, according to data from the National Association of REALTORS®. That is double the percentage from a year ago.

“There’s a lot of people who are looking at homes today and saying, ‘I can’t afford this by myself. I’m [on a] single income. How can I get into a house?’” Jessica Lautz, NAR’s vice president of research, told realtor.com®. “Finding someone who’s renting currently and matches your ideal [co-buyer profile] sounds like a great idea. Why not have a stable home and gain equity at the same time?”

For example, Kelsey Perkins, a single mother of two, told realtor.com® she was able to purchase a $470,000 five-bedroom home last year in the Denver area by purchasing with two friends. They live in the house together, and each person pays just under $900 a month to cover the mortgage. Additional expenses are split. “What we could do collectively was much more than we could do individually,” Perkins told realtor.com®.

The cobuying trend is likely to expand beyond urban centers, Lautz predicts. The trend will likely gain momentum as more millennial buyers move to small towns in search of affordability, she adds.

But as these arrangements grow, real estate pros caution that negotiating the living arrangement can be tricky. Michael Soon Lee, a broker-associate with Realty One Group in San Ramon, Calif., says there are many issues to consider when buying a home with housemates, such as whose names go on the title, who’s responsible for collecting and making mortgage payments, and who will oversee maintenance and repairs. Cobuyers will need to have a comprehensive legal agreement to determine each person’s responsibilities and plan an exit strategy in case one or more parties want to end the arrangement, he says. “[Cobuying] is a business transaction, even if it is done among friends,” he told realtor.com®. “Compromise is the ultimate word. You’re looking for people who are flexible and have the greater good in mind. Those are the people who make this work the best.”

Mortgage Rates Inch Up Slightly This Week | Realtor Magazine

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The 30-year fixed-rate mortgage averaged 3.49% this week, Freddie Mac reports. “The low mortgage rate environment continues to spur homebuying activity, with applications to purchase a home up 15% from a year ago,” says Sam Khater, Freddie Mac’s chief economist. “We’ve seen new residential construction surge over the last few months, on pace to reach the highest level in more than a decade. This is a good sign for the inventory-starved housing market and is a promising indication for the spring homebuying season.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Feb. 20:

• 30-year fixed-rate mortgages: averaged 3.49%, with an average 0.7 point, up slightly from last week’s 3.47% average. Last year at this time, 30-year rates averaged 4.35%.
• 15-year fixed-rate mortgages: averaged 2.99%, with an average 0.8 point, up slightly from last week’s 2.97% average. A year ago, 15-year rates averaged 3.78%.
• 5-year hybrid adjustable-rate mortgages: averaged 3.25%, with an average 0.2 point, falling from last week’s 3.28% average. A year ago, 5-year ARMs averaged 3.84%.

Housing Permits Surge to 13-Year High | Realtor Magazine

Total housing starts fell 3.6% in January, but that’s not what housing economists were focused on with the latest data release from the Commerce Department on Wednesday. Instead, it was the gauge on future home building—housing permits—that had them upbeat about what could be coming. Housing permits last month climbed to the highest level since March 2007.

Still, it wasn’t all great news to the industry: Housing starts dipped to a seasonally adjusted annual rate of 1.57 million units in January, the Commerce Department reported Wednesday.

But “the latest month’s decline in housing starts is nothing to be concerned about,” says Lawrence Yun, chief economist at the National Association of REALTORS®. “The housing data is quite jumpy. What is important is the trend line, which is clearly on an upward path. Higher housing permit issuances are also a positive indicator for even greater production in the months ahead.”

Housing markets across the country have been facing ongoing inventory challenges, which some economists predict will only worsen in the months ahead. They have long been calling on builders to ramp up new-home construction to meet demand.

“More construction will mean more housing inventory for consumers in the later months of the year,” Yun says. “Spring months could still be quite tough for buyers, since it takes time to convert housing starts into actual housing completions. As trade-up buyers move into these new completed homes in the near future, their existing homes will be released onto the market.”

Housing permits—including both single-family and multifamily—rose 9.2% in January to an annualized pace of 1.55 million units. Broken out, single-family permits rose 6.4% to a 987,000 rate, while multifamily permits increased 14.6% to a 564,000 pace.

Regionally, housing permits posted the largest increase in the Northeast, surging 34.6% in January month-over-month. The other regions of the U.S. also posted increases, including an 8.2% uptick in the Midwest; 8% higher in the South; and 3.1% higher in the West.