Yajnesh Rai

Top 5 Landscaping Trends for 2019 | Realtor Magazine

Pergolas, metals, and pinks will be the leading landscape cravings of 2019, according to the National Association of Landscape Professionals. The NALP surveyed 1 million of its landscaping professionals to predict the hot trends that will influence the design and maintenance of backyards across the country.

“Homeowners yearn for beautiful outdoor spaces without the hassle of upkeep,” says Missy Henriksen, the NALP’s vice president of public affairs. “This year’s trends reflect current lifestyle preferences as well as innovations happening in the industry that are transforming landscapes across the country.”

NALP predicts the following trends will have the biggest influence on outdoor spaces in the new year:

1. Two-in-one landscape design. “Functional elements are no longer a perk, but rather a necessity in today’s landscapes, as consumers desire stunning outdoor features that have been cleverly designed to serve a dual tactical purpose,” according to the NALP. This might include an edible vertical garden on a trellis that also doubles as a privacy fence; a retaining wall that also includes built-in seating for entertaining, or a colorful garden bed that divides properties.

2. Automated lawn and landscape maintenance. “The latest technology and equipment allow tasks to be more streamlined and environmentally efficient than ever before,” the NALP says. For example, robotic lawn mowers are rising in popularity, and programmable irrigation systems and advanced electrical systems are proving to be extensions of smart homes.

3. Pergolas. Pergolas constructed of wood or composite material are getting major upgrades, such as roll-down windows, space heaters, lighting, and sound systems. “When paired with a luxury kitchen, seating area or fire feature, pergolas can become the iconic structure for outdoor sanctuaries,” according to the NALP.

4. Pink hues. Pops of coral and blush are predicted to be added to more landscapes this year. Pantone’s pick of Living Coral as its 2019 Color of the Year has more landscape professionals predicting the rich shade of pink will pop up outdoors, especially through fresh blooms of roses, petunias, zinnias, and hibiscus in flower beds. Lighter blush tones will also become “the new neutral” in landscaping, the NALP predicts.

5. Metals. “Whether homeowners want a bold statement or whimsical touch, incorporating metals can bring new dimensions to landscape design,” according to the NALP. Metals may be incorporated in decorative art and water features or through outdoor furniture and accessories.

7 Signs of a Market Cooldown | Realtor Magazine

Your buyers may be in luck. As markets are beginning to cool throughout the country, shoppers are beginning to see more houses become available. Sellers may also benefit when their agents are strategic about how they market their home, says Dana Bull, a Boston-area real estate professional who specializes in millennial and first-time buyer clients.

For agents also working with this group of clientele, here are seven signs from Bull that your market is cooling down and how to shift accordingly on behalf of your clients:

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Let Clients Know Time is Money

1. Increased days on the market

The buying market is becoming less competitive as demand decreases and homes sit on the market a little longer. Help your sellers price their properties correctly by using the MLS to track how days on market correlates with price points in your area.

2. Price cuts

Sellers who aren’t able to get their original price are beginning to make price reductions, another telltale sign of a slowing market, Bull says. This may benefit buyers who have previously been priced out of certain areas.

3. Lower absorption rates

When supply is exceeding demand, it’s a good time for you and your buyers to start looking for price reductions, Bull says. To quickly calculate the absorption rate in your area, divide the number of homes sold in a given month by the total number of homes available during that month.  

4. Decreased home value growth

This is a statistic you should be constantly watching on behalf of your clients. Tracking average price changes is one way you can quickly spot overall trends in your market for your buyers and sellers, Bull says. In many areas, home values are beginning to slow.

5. Higher inventory levels

A seller’s market is giving way to a buyer’s market with an increase in homes for sale. An increase in inventory means the market is slowing, Bull says, which also means home shopping will be less competitive for your buyers.

6. New construction

New builds increase inventory and are a sign that the market is opening up for buyers. Increases in new construction can provide new opportunities for buyers, Bull says.

7. Slowed investor activity

New investors gained confidence when the market was hot and seasoned investors were finding opportunities to sell. Bull says a slowdown in investor buying and selling activity is indicative of a waning market, but it may pose new opportunities for seasoned buyers.

The Home Remodeling Projects Owners Most Regret | Realtor Magazine

Home remodeling isn’t as easy as it looks on TV. And for nearly two-thirds of homeowners who’ve attempted a do-it-yourself house project, they say they regret not calling in an expert on at least one of their projects, according to a new survey from ImproveNet of about 2,000 Americans.

Read more from NAR’s Study: Homeowners Aren’t Shy When It Comes to DIY

But the motivation to save some money is a big driver for their attempts. On average, homeowners said they hoped to save at least 60 percent in costs by bypassing a professional and trying to do it themselves, the survey shows. A separate study by the National Association of REALTORS® shows a bigger attraction to DIY home projects, particularly among younger generations. 

On average, homeowners surveyed by ImproveNet reported attempting eight house projects themselves. But about a third admit to having later to hire a professional to redo the job.

 

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“We’ve seen people take on a lot more than they could deal with,” Joanne Theunissen, the remodeling chair of the National Association of Home Builders, told realtor.com®. “Be cautious. If it looks easy on TV, understand it’s not.”

The project that homeowners say they regret the most attempting themselves is installing floor tiles, particularly in the master bath, according to the survey. Getting ceramic tile level and grouted correctly can be very tricky and require many thorough steps, Theunissen says.

Fifty-five percent of DIYers say their projects took longer to complete than they expected, and more than half said their project was physically more difficult than they anticipated as well. Fifty-five percent of respondents also said their finished project didn’t look as good as they had hoped. About 8 percent of respondents said their homes were damaged because of their DIY attempts.

The top 10 most regretted DIY home improvement projects, according to ImproveNet, are:

1. Installing floor tiles
2. Replacing a ceiling
3. Refinishing hardwood floors
4. Installing carpets
5. Finishing the basement
6. Installing hardwood floors
7. Refinishing cabinetry
8. Installing sprinklers
9. Installing showers and baths
10. Painting home interiors

Would Buyers Benefit If Fed Pauses Rate Hikes? | Realtor Magazine

Following a series of interest rate hikes, the Federal Reserve may be ready to hit the pause button—which could be welcome news for mortgage borrowers. Notes from the Fed’s latest meeting show a consensus among board members not to raise the benchmark interest rate at the body’s January meeting or its next meeting in mid-March. However, Fed officials did say they expect economic growth to remain strong enough to still support a rate increase sometime in 2019. The Fed’s benchmark interest rate does not directly impact mortgage rates, but it usually influences the direction mortgage rates go.

 

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At a December news conference, Fed Chairman Jerome H. Powell said the economy remained strong, and the Fed expected to continue to raise rates in 2019. But upset investors had driven down asset prices and prompted a market slump. The Fed has since lightened its tone and has emphasized that it’s taking note of investors’ concerns.

According to the Fed’s meeting notes: “Participants expressed that recent developments, including the volatility in financial markets and the increased concerns about global growth, made the appropriate extent and timing of future policy firming less clear than earlier.” The Fed’s tone still remained upbeat about low unemployment and consumer spending. Charles Evans, president of the Federal Reserve Bank of Chicago, predicts “another good year in 2019” for the economy.

However, a government shutdown and tensions between the U.S. and China are igniting some concerns. “If the pessimism evident in financial markets eventually shows through to economic outcomes, there would be less need (and perhaps no need) for further increases in interest rates,” says Eric Rosengren, president of the Federal Reserve Bank of Boston. “However, my current expectation is that the more optimistic view will prevail.”

3 Signs a Neighborhood May Be in Trouble | Realtor Magazine

How can buyers determine if a community is a good fit for them? Sure, they should walk the neighborhood and make visits at various times of the day. Realtor.com® recently interviewed housing experts to identify signs that a neighborhood could be on the brink of a decline. Here are some of those possible indicators:

 

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Several houses are on the market.

Two or three homes for sale in close proximity is OK, but more than that could be an indication that something is wrong. “This points to illiquidity in the market and pricing pressure, which is a risk for buyers,” Alison Bernstein, founder of the Suburban Jungle, a real estate strategy firm, told realtor.com®. That said, a neighborhood could be seeing more For Sale signs because it’s rapidly gentrifying and longtime residents are finally looking to move on. But if there are several For Sale signs up on a block, home shoppers may want to do some digging to find out why.

School enrollment is falling.

In healthy communities, schools often see steady enrollment. “Shrinking class sizes are a red flag,” Bernstein told realtor.com®. If enrollment in local schools is trending lower, it might be wise to investigate. Is it because parents are fleeing to charter or private schools? Are residents staying put longer as their children grow up?

Nearby storefronts are empty or leaning industrial.

“Be mindful of any kind of commercial influence on the block, such as close gas stations or anything that could be undesirable health-wise,” says Ralph DiBugnara, vice president at Residential Home Funding. Also pay attention to the amount of vacant retail space. “Empty storefronts can tell you a lot,” Bernstein says. “They point to less disposable income of residents than clearly there once was.”

Mortgage Rates Fall to 9-Month Lows | Realtor Magazine

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Mortgage rates posted more drops this week, lowering the borrowing costs of potential home shoppers and refinancers. Rates are now at a nine-month low, which helped boost mortgage applications more than 20 percent this week.

“Lower mortgage rates combined with continued income growth and lower energy prices are all positive indicators for consumers that should lead to a firming of home sales,” says Sam Khater, Freddie Mac’s chief economist.

Freddie Mac reports the following national averages with mortgage rates for the week ending Jan. 10:

• 30-year fixed-rate mortgages: averaged 4.45 percent, with an average 0.5 point, falling from last week’s 4.51 percent average. Last year at this time, 30-year rates averaged 3.99 percent.
• 15-year fixed-rate mortgages: averaged 3.89 percent, with an average 0.4 point, dropping from last week’s 3.99 percent average. A year ago, 15-year rates averaged 3.44 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 3.83 percent, with an average 0.3 point, dropping from last week’s 3.98 percent average. A year ago, 5-year ARMs averaged 3.46 percent.

5 Ways to Future-proof Your Kitchen | Realtor Magazine

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Revamping a kitchen can be a costly undertaking, with the median price of a remodeling job coming in at $60,000. So, how do you make sure the changes you make won’t look dated in a few years?

HouseLogic, a home improvement website by the National Association of REALTORS®, offers ideas to future-proof your kitchen, including:

Stick with white

White has remained the top choice of the National Kitchen and Bath Association’s annual survey for years. “It’s a bright color that reflects light and makes even small kitchens feel larger,” notes HouseLogic, adding that white appears to be the “most marketable color” in the kitchen.

Put in hardwood flooring

Not having hardwood floors apparently comes with later regrets. More than half of home shoppers who purchased a home without hardwood floors say they would have paid an extra $2,080 for them, according to the National Association of REALTORS®’ Home Features Survey. Overall, 80 percent of buyers say hardwood flooring is “somewhat” or “very important.” Hardwood flooring can pair well with any kitchen style too, from traditional to the most contemporary styles, designers say.

Choose Shaker-style cabinets

These frame-and-panel design cabinets have a look that stand the test of time. “In a kitchen with a timeless look, you want the cabinets to be part of the backdrop,” says Alan Zielinski, a former president of the National Kitchen and Bath Association. “You don’t want to be overpowered. You’re looking for plain, simple, clean lines.”

Go with Carrara marble countertops

This classic surface material has lacy graining and subtle white colors that pair well with any kitchen. It’s also readily available and less expensive than higher-end alternatives, like quartz, HouseLogic notes.

Choose subway tile backsplashes

Classic subway tiles are white, 3-by-6-inch rectangles. They’ve grown popular in kitchens and baths. A neutral or white-colored subway tile used as a backsplash in the kitchen not only “looks classy” but also guards against moisture damage and is easy to clean, HouseLogic notes. “A subway tile backsplash and a marble countertop make a dashing couple that will stand the test of time,” HouseLogic notes.

Study: 1M Buyers Priced Out if Rates Rise Over 5% | Realtor Magazine

Mortgage rates have been decreasing in recent weeks, but if they reverse course and start to rise again, more potential home buyers may get “priced out,” a new study from the National Association of Home Builders shows. About 1 million households would likely no longer be able to afford buying a median-priced new home if mortgage rates rise from 4.85 percent to 5.1 percent. Last week, the 30-year fixed-rate mortgage averaged 4.51 percent, according to Freddie Mac.

 

© National Association of Home Builders

 

Many Americans shopping for a new home may be in danger of being priced out if prices rise by just $1,000, the analysis showed. Based on incomes, 127,560 households would not be able to qualify for a mortgage to purchase a new home if prices rose by $1,000, either due to a jump in mortgage costs or the new home price, researchers found.

Not surprisingly, the number of “priced out” households varies across states and metro areas. The NAHB found that Texas saw the largest “priced out” effects from a $1,000 home price increase; that could cause 11,152 households to have to leave the market. California followed at 9,897 and then Ohio at 7,341.

Mortgage Relief May Give Housing a Winter Boost | Realtor Magazine

Mortgage rates have fallen to their lowest averages in eight months, and as word gets out, more potential home buyers may come off the sidelines, real estate pros say.

 

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“The problem is that volatility is the obstacle,” Sam Khater, Freddie Mac’s chief economist, told The Wall Street Journal about expectations of fluctuations in mortgage rates over the next few months.

The 30-year fixed-rate mortgage fell to a 4.51 percent average last week, which matches the lowest average since last spring, according to Freddie Mac’s weekly mortgage market survey. Mortgage rates are still higher than a year ago—when they were 3.95 percent—but rates have steadily fallen from nearly 5 percent this fall.

Higher mortgage rates in 2018 were blamed on dampening home sales and prompting affordability concerns among would-be buyers. Stock market swings and higher home prices also took the blame.

But as mortgage rates fall, some real estate professionals say they’re seeing buyers step back into the housing market to take advantage of the savings. Tami Pardee, founder of Halton Pardee & Partners in Los Angeles, told WSJ that her firm had seven homes go into escrow just one week before Christmas, which is typically one of the slowest times of year. “I think people are worried that rates are going to go really high,” she says.

Brian Benjamin, president of Two River Mortgage in Red Bank, N.J., told WSJ that after his buyers, who had been sitting on the sidelines, saw how much they could save with the lower mortgage rates, they actively resumed their search.

“Hopefully as the news gets out that mortgage rates have fallen, it will get those on the fence to accelerate their looking,” Benjamin says.

3 Home Repairs That Can Save a Sale | Realtor Magazine

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Sellers whose homes aren’t in tip-top shape may need to spend extra money or put in a little elbow grease to get their properties in market-ready condition. But what are the most important repair or maintenance tasks that support a higher asking price? “Smaller and less expensive updates in combination with good staging will have a great return,” Susanna Haynie, GRI, a sales associate with Colorado Real Estate Group in Colorado Springs, told HouseLogic. The National Association of REALTORS®’ consumer-facing news service highlighted some of the most important items to address before putting a home up for sale.

1. Fix flooring flaws. “Scratched-up wood flooring, ratty, outdated carpeting, and tired linoleum make your home feel sad,” the HouseLogic article notes. “Buyers might take one step inside and scratch the property from their list.” Most buyers don’t want the hassle of replacing carpet and may not accept a credit to cover the cost after the sale, Haynie says. When refinishing hardwood floors, for example, homeowners can expect to spend an average of $3,000 but recoup 100 percent of that cost at resale, according to NAR’s 2017 Remodeling Impact Report.

2. Repair water stains. The home’s plumbing issues may have long been resolved, but leftover water stains will mislead buyers into thinking the problems still exist. First, double-check that the problem truly is fixed, and then make any needed repairs to the walls or floors. Water-stained ceilings can cost about $670, on average, to fix. Drywall costs about $1.50 per square foot to repair.

3. Touch up the grout. Yellow or cracked grout can be a turnoff to buyers. New grout can make old floors look revived. “The best return-on-investment projects before selling a home involve making a home look like new,” Shelton Wilder, a sales associate at Berkshire Hathaway HomeServices in Los Angeles, told HouseLogic. Bathroom re-grouting costs an average of $1 to $2 per square foot, increasing to $10 for more complex jobs.