As the temperatures cool, homeowners have a lot of chores to do with their lawn to make sure it weathers well into the spring.
jppi – Morguefile
Perfect timing is essential for fall yard care, says Missy Henriksen, vice president of public affairs for the National Association of Landscape Professionals. “For example, for many parts of the country, this fall has been warmer and wetter than usual, which has required that lawns are mowed later into the season, and may postpone pruning of ornamentals and fertilizing for some,” Henriksen says.
To keep lawns healthy, the NALP recommends homeowners take these steps in the fall:
Seed: Seeding and overseeding will help inject new life into thinning grass, help fill in bare areas, and introduce grass varieties.
Fertilize: Fall fertilizing helps lawns maintain future health and appearance. Be sure to factor in the types of grass in the lawn and the climate before fertilizing. Cool-season grasses should generally be fertilized from September through November; warm-season grasses should be fertilized slightly earlier.
Cut perennials: As temperatures begin to cool, it’s important to cut most perennials after the first frost. Depending on the plant, fall is often the best time to prune because plants do not actively grow as the dormant season approaches.
Rake leaves: Removing leaves helps prevent turfgrass damage and protects water quality by lessening the amount of organic material, such as leaves and dead grass, that can release phosphate and nitrates into waterways.
Give plants deep watering: Fall is the ideal time to give trees and shrubs a final deep watering. By doing so, root systems will have time to absorb moisture from the soil before freezing temperatures set in.
Keep mowing: Through the fall, grass should be cut at 2 to 2 ½ inches tall. This helps prevent matting, which could lead to winter lawn diseases.
Shut off and store yard equipment: To prevent future home damage, shutting off water lines to the outside and clearing automatic irrigation systems of water become critical elements of fall maintenance. After a season’s final mow, homeowners should review the owner’s manual to properly clean and store yard equipment for the winter.
Check out this infographic from the National Association of Landscape Professionals that breaks down all these chores and when they should done by region.
Borrowers were faced with rising mortgage rates again this week, after a slight pause from increases the week before.
“Despite volatility in the stock market, the 30-year fixed-rate mortgage inched forward just 1 basis point to 4.86 percent this week,” says Sam Khater, Freddie Mac’s chief economist. “We expect rates to continue to rise, which will put downward pressure on homebuying activity. While higher borrowing costs will keep some people out of the market, buyers with more flexibility could take advantage of the decreased competition.”
Freddie Mac reports the following national averages with mortgage rates for the week ending Oct. 25, 2018:
30-year fixed-rate mortgages: averaged 4.86 percent, with an average 0.5 point, rising slightly from last week’s 4.85 percent average. Last year at this time, 30-year rates averaged 3.94 percent.
15-year fixed-rate mortgages: averaged 4.29 percent, with an average 0.4 point, rising from last week’s 4.26 percent average. A year ago, 15-year rates averaged 3.25 percent.
5-year hybrid adjustable-rate mortgages: averaged 4.14 percent, with an average 0.3 point, climbing from last week’s 4.10 percent average. A year ago, 5-year ARMs averaged 3.21 percent.
“Every piece of furniture you own might not have a perfect spot in your house, but it does have a best spot,” Myquillyn Smith, author of The Nesting Place: It Doesn’t Have to Be Perfect to Be Beautiful, told realtor.com®. Smith sees several common furniture placement mistakes that homeowners make when arranging their living rooms. Here are a few don’ts to share with clients who are getting ready to sell:
1. Neglecting your focal wall.
The focal wall is the first thing a person sees when they enter the room, often featuring a fireplace, a picture window, or even a mounted TV. “The goal is to set up your room so that the majority of the seating is facing or angled toward the focal wall,” Smith says.
2. Cramming in too much furniture.
Most agents recognize how easy it is to make a space feel smaller by trying to squeeze in too much furniture or items that are too big for the space, but homeowners might need a reminder. Smith suggests focusing the room around a couch. “The sofa is usually the biggest, most important piece in the room,” Smith says. “So it gets priority.” Place the sofa in the space first and then reintroduce smaller pieces one by one to see if they work with the sofa. If not, move them out.
3. Pushing the couch up against a wall.
Smith says one of the most common mistakes she sees is homeowners who push their sofa or other seating up against the wall. “About the only time a sofa looks right when it’s placed against the wall is when it’s a corner section and it’s in a corner,” Smith says. She suggests pulling the sofa out from the wall at least 12 inches to create white space and to help make the room feel larger.
While there have been signs recently that the market may be shifting toward the favor of home buyers, prices are still on the rise in many areas around the country. The median sales price in July was $230,411, up 5.8 percent year over year.
But if your buyer clients are hoping to wait it out, you might want to remind them that mortgage rates are also increasing. The typical mortgage payment jumped 13.1 percent over that same one-year period, due to a nearly 0.6 percentage point increase in mortgage rates, according to new data from CoreLogic, a real estate research firm.
Mortgage rates are expected to keep rising, too. CoreLogic researchers predict a nearly 10 percent increase in buyers’ mortgage payments by next July, twice the rate expected for home prices. Rates are expected to increase by about 0.43 percentage points between July 2018 and July 2019. Housing forecasters predict median home sale prices to continue to rise by 1.8 percent in real terms over that same period.
Based on these projections, CoreLogic researchers predict the inflation-adjusted typical monthly mortgage payment to rise from $937 in July 2018 to $1,003 by July 2019. Furthermore, real disposable income is expected to increase by only around 2.5 percent over the next year. That means “home buyers would see a larger chunk of their incomes devoted to mortgage payments,” CoreLogic researchers note.
To calculate the typical mortgage payment, CoreLogic researchers use Freddie Mac’s average rate on a 30-year fixed-rate mortgage with a 20 percent down payment (not factoring in taxes or insurance). The typical mortgage payment standard is used to help judge affordability since it shows the monthly amount a borrower would have to qualify for to get a mortgage to purchase a median-priced U.S. home.
Nevertheless, while mortgage payments are on the rise, they’re still low by historical standards, CoreLogic researchers note. In July 2018, the typical inflation-adjusted mortgage payment still remained 26.8 percent below the all-time peak of $1,280 in July 2006. The average mortgage rate in June 2006 was 6.7 percent compared to 4.5 percent in July 2018.
Once your clients have put in the elbow grease to make their home spotless, what can they do to keep it that way for a longer period of time? HouseLogic, a home improvement resource, recently highlighted some unusual ways to keep a home clean and gleaming.
Apply a car product to keep shower doors free from scum. Soap buildup could be eliminated by covering a glass shower door in the rain-repellant product that is used for car windshields (only advised for glass doors). The product creates an invisible barrier, causing water and soap to roll off.
Use protectants on furniture and carpets. Protective furniture sprays and carpet sealants, such as Scotchguard and Ultra-Guard, can help protect flooring against stains from spills. Use them once a year. They can cause liquids to remain on the surface instead of being absorbed into the flooring; they may also prevent some fabrics from fading and keep them resistant to mold and mildew.
Use a wet pumice stone to clean the oven. You might want to bypass traditional oven cleaners, which tend to give off strong fumes. Instead, use a wet pumice stone to scrape off any dirt and grease. It’s toxin-free. To wipe up an oven range, heat up a clean, damp sponge or cloth in a microwave for 30 seconds, and then wipe with—or without—a cleaning product.
When you’re scouring your MLS for properties that match your clients’ criteria, don’t automatically click past listings with no photos. Billy Domineau, a former real estate professional in Brooklyn, N.Y., who writes for real estate blog Apartment Therapy, says such listings are often legitimate but are disregarded as trash or scams.
The absence of listing photos could indicate the home is in disrepair, but it also could be a great catch for buyers who are struggling to break into homeownership, Domineau writes. “Occasionally, such ads lead you to the Holy Grail: A landlord who is great at business,” Domineau notes. “Someone who isn’t savvy enough to know that they need pictures in their ad is probably also clueless about how much money they can get for their unit. And, when you do find these diamonds in the rough, you’re likely to have less competition since so many other apartment hunters dismissed the ad almost immediately.”
Domineau once found an apartment in the Brooklyn neighborhood of Boerum Hill that was listed with no photos and a $3,250-per-month price tag. It ended up being a steal: She writes that the unit was easily worth $4,500 a month, but the owner was not well-versed in the market. Pictureless listings, she writes, tend to come from owners who accept below-market-rate prices because they either don’t know any better or want to get the unit sold or rented quickly with little hassle.
A shift is occurring in many housing markets. Affordability may be prompting more potential buyers to pause due to rising mortgage rates over the last few weeks, and home sellers are now facing more competition. Homeowners may no longer be able to expect the quick sale they’ve seen their neighbors get in the past.
The number of For Sale signs is starting to increase across the country. Unsold inventory is at a 4.4-month supply at the current sales pace. Inventories were at 1.88 million in September, up slightly from 1.86 million a year ago, according to the National Association of REALTORS®’ latest housing report, released Friday.
“There is a clear shift in the market with another month of rising inventory on a year-over-year basis, though seasonal factors are leading to a third straight month of declining inventory,” says Lawrence Yun, NAR’s chief economist. “Homes will take a bit longer to sell compared to the super-heated fast pace that we saw earlier this year.”
Existing-home sales declined in September, with all four major regions of the country seeing no gains in sales activity last month, according to NAR’s report. Total existing home sales—completed transactions for single-family homes, townhomes, condos, and co-ops—dropped 3.4 percent in September compared to August, and are now at a seasonally adjusted annual rate of 5.15 million. Sales are down 4.1 percent from a year ago.
“This is the lowest existing home sale level since November 2015,” says Yun. “Decades-high mortgage rates are preventing consumers from making quick decisions on home purchases. All the while, affordable home listings remain low, continuing to spur underperforming sales activity across the country.”
The 30-year fixed-rate mortgage has jumped from an average of 3.99 percent in 2017 to an average of 4.63 percent in September. Freddie Mac reported this week that rates are averaging 4.85 percent.
“Rising interest rates coupled with increasing home prices are keeping first-time buyers out of the market, but consistent job gains could allow more Americans to enter the market with a steady and measurable rise in inventory,” Yun says.
Here’s a closer look at some key housing indicators from NAR’s latest report:
Home prices: The median existing-home price for all housing types was $258,100 in September, a 4.2 percent increase compared to a year ago.
Days on the market: Forty-seven percent of homes sold in September were on the market for less than a month. Properties stayed on the market an average of 32 days in September, down from 34 days a year ago.
All-cash sales: All-cash transactions comprised 21 percent of real estate sales in September, up from 20 percent a year ago. Individual investors tend to make up the biggest bulk of cash sales. They purchased 13 percent of homes in September, down from 15 percent a year ago.
Distressed sales: Foreclosures and short sales made up 3 percent of sales in September, which is the lowest since NAR began tracking such data in October 2008. Broken out, 2 percent of sales in September were foreclosures and 1 percent were short sales.
Following weeks of gradual increases, the 30-year fixed-rate mortgage dipped slightly this week, possibly offering a slight window of opportunity at lower borrowing costs to some would-be buyers.
“The modest decline in mortgage rates is a welcome respite from the rapid increase in rates the last few weeks,” says Sam Khater, Freddie Mac’s chief economist. “While the housing market has clearly softened in reaction to the rise in mortgage rates, the economy and consumer sentiment remains very robust and that will sustain purchase demand, particularly in affordable markets and neighborhoods.”
Freddie Mac reports the following national averages in mortgage rates for the week ending Oct. 18:
30-year fixed-rate mortgages: averaged 4.85 percent, with an average 0.5 point, dropping from last week’s 4.90 percent average. Last year at this time, 30-year rates averaged 3.88 percent.
15-year fixed-rate mortgages: averaged 4.26 percent, with an average 0.4 point, falling from last week’s 4.29 percent average. A year ago, 15-year rates averaged 3.19 percent.
5-year hybrid adjustable-rate mortgages: averaged 4.10 percent, with an average 0.3 point, rising from last week’s 4.07 percent average. A year ago, 5-year ARMs averaged 3.17 percent.
In the Bay Area, homes are taking longer to sell and aren’t getting as much money as they did just a few months ago. After years on the up, the red-hot housing market appears to be cooling off.
“This is a more normal market and I hope it stays like this,” said Gustavo Gonzalez, president-elect of the Santa Clara County Association of Realtors. “People are still coming to this area and they’re still working here and they’re making good money and they want homes, so there’s a limited supply (and) lots of demand.”
The California Association of Realtors recently shared a somber forecast for the state housing market in 2019. Officials expect rising interest rates and a lack of affordable housing to stall some of the record-setting prices the Bay Area has seen in recent years.
“There’s more inventory online today than there was a year ago, and that’s partially because as home prices get more expensive, it’s harder and harder for buyers to scrape together that down payment,” said Zillow economist Sarah Mikhitarian.
Bucking the trend, Anna Machado-Wang sold her Almaden Valley home three days after it went on the market. She has no plans to leave the area anytime soon.
“My husband is an engineer and this is where the jobs are,” Machado-Wang said. “I mean, we could go to Austin, Texas, but why? We like California.”
In Sunnyvale, luxury property specialist Sherdin Betbabasi just lowered the price of a home on Windsor Terrace by about $250,000. However, it isn’t necessarily a bad thing for the seller. In fact, Betbabasi thinks it will help him generate some buzz.
“Look at the quality of what you buy, not just the price. If you’re looking at a nice home to buy, in the right school district, with a good commute that you want to have, then go for it, understanding that the market will fluctuate,” Betbabasi said.
The California Association of Realtors expects home prices to go up by about 3 percent next year, but total sales are expected to go down. Because of our strong economy, experts say those who are looking for a home should buy as soon as they feel comfortable to do so.
Homeowners in the majority of housing markets across the country should expect to see home prices continue to appreciate by about 4.5 percent over the next 12 months, and, in a handful of western markets, owners likely will see their prices soar well past that, according to a new report from Veros, a valuation and analytics firm.
Pellinni – Morguefile
Western states hold the top 10 spots in forecasts of appreciation, with home price predictions ranging from 9 to 12 percent over the next 12 months, according to Veros. But other metros outside of the West will see appreciation too. For example, metros within South and North Carolina as well as within some Midwestern state like Michigan and Indiana are expected to perform strong in housing appreciation over the next year. For example, Indianapolis-Carmel, Ind., metro area property values are projected to appreciate at 8.5 percent over the next 12 months.
Veros predicts the following housing markets will appreciate the most through August 2019:
Bremerton-Silverdale, Wash.: 11.7%
Boise-Nampa, Idaho: 11.2%
Las Vegas-Paradise, Nev.: 10.8%
Bellingham, Wash.: 10.6%
Olympia, Wash.: 10.3%
Carson City, Nev.: 10.1%
Reno-Sparks, Nev.: 10%
San Francisco-Oakland-Fremont, Calif.: 9.6%
Denver-Aurora-Broomfield, Colo.: 9.5%
Seattle-Tacoma-Bellevue, Wash.: 9.3%
Rising average interest rates that are nearing 5 percent, however, remain a chief concern for housing affordability and could start to cool some markets. Eric Fox, vice president of statistical and economic modeling at Veros, says that for many of the markets interest rates do appear to be “softening the third quarter’s forecasts by one to two percent over what would have been in a flat interest rate environment of the past several years continued.”
In some markets, home buyers may get relief from the higher home prices. Markets like Farmington, N.M.; Vineland-Milville-Bridgeton, N.J.; and Danville, Ill., are expected to see home prices ease by 1 to 2 percent over the next 12 months, according to the report.
“Housing supply is a key discriminator between the forecasted top- and bottom-performing markets,” Fox says. “Where the housing supply is very low, as in our top markets, prices are expected to increase significantly. In contrast, for many of the bottom markets, which are in very slow growth metros, housing supply is projected to remain high.”
