Home Purchases, Mortgage Applications on The Rise
During the last week of April, the average interest rate for 30-year fixed-rate conforming loans increased to 6.55% from 6.43%.
However, loan applications rose 5% during the same week. The recent softening in house prices may be helping homebuyers swallow higher mortgage rates, especially in the more expensive metro markets. Seven states — California, Washington, Montana, Idaho, Nevada, Utah and Oregon — as well as the District of Columbia, all reported lower prices in February 2023 compared with February 2022.1
How To Add Property Management to Your Skills
If you're new to the business, or in an area where home sales are slow, you may want to consider property management as an additional source of income. (Shadowing an active manager can help you decide.) Here are some of the steps you'll need to complete before you hang out your shingle.
Complete your state's requirements. While some states will accept your real estate license, every state has its own set of regulations.
Take property management courses. Most RE education providers offer these. You'll learn how to process lease applications, collect rent, schedule maintenance and repairs, and manage vendors. You will also need to know your state's rental safety regulations.
Set up shop. Depending on your state, you may need to register your business, complete any contracts/forms, and set up a specialized trust account. You may need to purchase added license and insurance coverage. An attorney or CPA can assist you – so can your bank.2
Location, Location, Location
Here are three real-estate related facts to share with fellow agents or check out during your next coffee or matcha break:
North Carolina couple thinks different. When Apple was building a facility in Maiden, North Carolina in 2010, they purchased an acre of land from a middle-aged couple for $1.7 million. The couple's initial investment: $6,000. The sellers replaced their modest, one-story home with a 4,200 square-foot home on a 49-acre property.
A man's home can be his castle for a long time...especially if he hates commuting. Investing legend Warren Buffett still calls his 1958 house purchase home. He paid $31,500 for it. The 6,570 square-foot house is a five-minute drive from Berkshire Hathaway's corporate headquarters in Omaha, Nebraska. Current value: just over $1 million.
Living in this Orlando, Florida neighborhood can be a blast. The Pinecastle neighborhood's residents got an unwanted surprise in 1998 when they discovered that many homes - and a school - were built on or near a former WW II bombing range. While the Army Corps of Engineers conducted cleanups in 2008 and 2013, residents are still unsure if they missed anything.3
Nature, Quiet and Wi-Fi Drive Relocations
While the COVID pandemic was a catalyst for thousands of relocations, the trend is continuing – but the destinations have changed.
A recent NAR survey found that last year's homebuyers moved further away from their earlier locations, choosing smaller towns and rural properties in sunnier climates. Ocala and Tallahassee, Florida, Charlotte, North Carolina and Savannah, Georgia are especially popular.
Northern states are also seeing shifts from cities to rural locations. Prime selling points include affordability, close proximity to other family members, and more space. Being close to the office is less important than being close to outdoor activities like hiking, cycling and even birdwatching. Many are telling their agents they need more nature and less noise.
The work-from-home lifestyle is also driving buyer preferences. Towns and smaller cities that offer strong internet broadband are attracting buyers to Texas, Colorado, Ohio, Georgia and Tennessee.4
It's a Family Affair: Multi-generational Households Sources: 1cnbc.com,
2theclose.com,
3retipster.com,
4nar.realtor,
5nar.realtor
Homes built to house more than one generation are becoming more popular. Multi-generational homes initially became popular as a response to the COVID pandemic, quickly rising to 15% of all residential properties purchased in 2020. During 2021, the rate sank to 11%, but as of mid-2022, multi-generational home purchases were up to 14%.
Reasons for this trend include rising property and rent prices, combined with cultural factors. More family members are opting to care for elderly parents in-house instead of moving them into unfamiliar assisted living or skilled care facilities.
Developers of multi-generational communities recommend that these residences should always offer the features described below.
Access features for the home itself and the surrounding community need to be considered. Ideally, the community should feature disabled access, plus close proximity to public transit for non-driving residents.
Adaptability is important as younger generations depart and older ones pass on. An example of a versatile property: a main family dwelling, plus a private wing for elderly residents. A garage unit or ADU can serve as a rental unit or temporary home for boomerang kids.
Affordability is perhaps the most difficult element. Seniors may have limited fixed incomes, while adult children may not be able to work full-time if they're caring for one or more parents.5
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