Are Affordable Homes Just Around the Corner?
Two new studies found that affordability is improving for home buyers while suggesting that 2025 may be a better year all around.
Recent data from First American Economic Data found that annual affordability improved 4.4% for buyers during August 2024. This is the first time this has happened since 2021. In addition, household income increased by 3.1%.
While home price appreciation continued to climb, it was at a slower rate and not enough to offset buyers' advantages of higher income and lower rates, said Mark Fleming, chief economist at First American. Fleming is also expecting affordability to keep improving through the end of the year and into 2025.
A September report from Redfin included more positive numbers. Currently, homebuyers need to earn $76,995 a year to afford a median-priced starter home priced at $250,000. While it's a small, 0.4% change, it's the first annual decline since August 2020. Cities where affordability saw the biggest improvements include Tampa, Florida; Denver, Colorado and Portland, Oregon.1
Rental Scam Warnings for Property Managers
You're already aware of scammers attempting to divert your buyers' closing funds or forge their property titles. Unfortunately, they're also busy in the rental sector. If you're a part- or full-time rental property manager, watch out for these and other scams.
Fraudsters create convincing rental listings for properties they don't own, and post them online at sites like Zillow, Craigslist, or even Airbnb. When potential renters inquire, the scammer convinces them to send a deposit, promising to meet the renter in a few days for a personal showing (that doesn't happen). Even though owners and property managers affected by this scam aren't held liable, you may want to periodically check local rental listings and report attempted scams that involve properties you manage.
A tenant may pay you an initial month's rent and deposit by check but stop future payments. (These scammers may also overpay, then demand you refund the difference.) This eventually forces you into launching lengthy eviction proceedings while the tenant lives rent-free. Even if you call the tenant's bank to confirm that the check is valid, it may be stolen or stopped. These scammers are generally in a hurry to rent, so beware of any rental applicant who pressures you or offers additional funds to expedite their application.
Tenants who want to bypass a "no pets" policy may present you with a fake ESA letter that states that their pet is an emotional support animal. Since ESA laws vary by state, your first step should be to check your state's laws by locating them on this map. You'll also want to verify the ESA letter's legitimacy by contacting a representative of the Americans with Disabilities Act (ADA).2
Slow Years...And Really Slow Years
While we're aware that 2024 has not been a record-breaking year as far as home sales are concerned, you may be surprised to learn that home sales were the lowest in 30 years...maybe more.
During the first eight months of this year, only 2.5% of homes changed hands, which is the lowest rate in decades. The rate of home sales and home listings are both down at least 30% from 2019. California metro areas are at the top of the list of areas with the lowest property turnover, while the Sun Belt and New York's commuter metro areas posted the highest numbers.
There were 37.5% fewer homes sold this year than during the middle of the pandemic buying frenzy in 2021 (40 of every 1,000) and 31% fewer homes sold than during the last pre-pandemic year in 2019 (36 of every 1,000).
While this year's higher interest rates, rising property prices and lack of inventory contributed to the low turnover numbers, many buyers and sellers are waiting for the results of the national election in early November, as the candidates are promoting contrasting housing policies.3
How To Add Links to Instagram Stories
Instagram has changed quite a bit from its first days, when users were required to have at least 10,000 followers before they could add a link to an Instagram Story. Now you can add links quickly with a link sticker by following these steps.
- Open the Instagram app on your phone and tap the plus icon in the bottom center.
- Next, select 'Story' from the menu and then take or upload a photo or video to create new content.
- Here's where you'll add your link:
- Tap the sticker icon at the top of the composer (the sticky note symbol).
- Choose 'Link' from all the options.
- Add your URL and, optionally, change the text that will appear on the sticker. If you choose not to, your URL will appear on the story.
- When you're happy, tap 'Done.'
NAHB Shares Window "Gotta Haves"
Recently, the National Association of Home Builders (NAHB) released their latest What Home Buyers Really Want study. One takeaway: energy-saving features are no less popular than in previous years.
Since the right windows can bump up a home's eco-friendly features while helping to lower utility bills, they're the most popular with buyers.
ENERGY STAR rated windows were rated essential or desirable by 83% of home buyers, with triple-pane insulating glass (77%) and low e-insulating glass (67%) coming in second and third place. In addition, ENERGY STAR windows were ranked the third most wanted feature out of the 200+ options discussed within the survey.5
Sources: 1blog.firstam.com, 2autohost.ai, 3redfin.com, 4buffer.com, 5eyeonhousing.org
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