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06/25/2021

Will iBuyers Fuel Real Estate’s Future?

Will iBuyers Fuel Real Estate’s Future?

Photo by Andrea Piacquadio from Pexels
The growth of eCommerce has become an indispensable part of the global retail framework. Like the pharmaceutical, finance, entertainment, and many other industries, the retail landscape has undergone a substantial transformation following the advent of the internet. Due to the ongoing digitalization of modern life, eCommerce now plays a vital role in our daily lives. It is redefining people’s commercial activities around the world.   more...

06/25/2021

Lawmakers introduce short-term extension of COVID-19 eviction moratorium

Lawmakers introduce short-term extension of COVID-19 eviction moratorium

California lawmakers unveiled legislation today that would extend the state’s COVID-19 eviction moratorium through September 30th, 2021. One day after U.S. Centers for Disease Control and Prevention extended the nationwide moratorium through July.
AB 832 would keep California’s eviction moratorium in effect for two months beyond the federal eviction ban. Tenant activists had pushed for an extension of the state moratorium through the end of 2021. At present, the moratorium (SB 91) is scheduled to lapse Wednesday, June 30th. The Legislature could vote on the bill as early as Monday, June 28th.   more...

06/25/2021

Homeowners cashed in on Pandemic-driven demand for homes this year

Homeowners cashed in on Pandemic-driven demand for homes this year

Photo by Kindel Media from Pexels
American homeowners have gotten nearly $2 trillion richer as real estate prices continue to climb. According to CoreLogic data released Thursday, during the first three months of 2021, mortgage holders – representing roughly 65% of U.S. homes – saw their equity surge by 19.6%. That depicts about $33,400 per borrower, the highest average gain in at least a decade.   more...

06/25/2021

The Importance of Outcomes Associated with Homeownership

The Importance of Outcomes Associated with Homeownership

Homeownership promotes wealth building by acting as a forced savings mechanism and through home value appreciation. Wealth building hinges on the homeowners’ ability to build home equity, which is statistically challenging for lower- and moderate-income households. A few vital factors to building home equity for and moderate-income homes are refinancing loans at a lower interest, sustaining homeownership with the means to weather home value fluctuations, and, most importantly, providing affordable financing. Improving affordable homeownership leads to numerous outcomes that extend beyond the house​​​​​. In the U.S., these include higher economic stability, access to quality education, increased civic and social engagement, better health, and a reduced environmental footprint. Recent findings provided by Habitat for Humanity identify the impact that affordable housing has on individuals and families at home and beyond. The brief provides an overview of how families can prosper with greater access to decent, affordable housing. The full brief is available for download here: download the full brief. Research highlights Wealth and financial stability U.S. homeowners have an average net wealth 400% higher than renters with similar demographics and earnings, and home equity represents the highest proportion of wealth (34.5%) for U.S. households. Research has shown a correlation between homeownership and increased wealth, with each year of homeownership tending to be associated with an additional $9,500 in net wealth, on average. In 2019, net wealth was lower for lower-income ($9,300), Black ($24,100) and Hispanic/Latinx households ($36,050) than for higher-income ($1,589,300) and white households ($189,100). Home equity represented a larger share of net wealth for low-income, Black, and Hispanic/Latinx households.​​ Civic and social engagement Homeowners are more likely to vote in local elections than renters in comparable neighborhoods, and this likelihood increases with the degree of neighborhood disadvantage in low-income urban areas.​​​​​​ Regardless of the length of time owning a home, homeowners are 1.3 times more likely to become involved in a neighborhood group — and join a civic association than renters. The increased participation in neighborhood groups reflects in low-income neighborhoods as well. Environment For older single-family homes, weatherization reduces low-income households’ total energy costs by 12.4% within the first year. That is substantial given that low-income homes have higher energy burdens. Totaling three times the share of their annual income (7.2%) on energy costs compared with other households (2.3%). Education Children of low-income homeowners are 11% more likely to graduate from high school and are 4.5% more likely to complete post-secondary education than children of low-income renters. Homeowners can leverage their housing wealth to finance post-secondary education for their children, notably lower- and moderate-income households. For lower- and moderate-income homes, a $10,000 increase in housing wealth raises the probability of college attendance by 14%. Health Decreasing housing costs for cost-burdened households (those spending more than half of their household expenditures on housing) releases resources to spend on nutritious food and health care and limits overcrowding to minimize the spread of respiratory infectious diseases.   more...

05/28/2021

4 Big Incentives for Homeowners to Sell Now

4 Big Incentives for Homeowners to Sell Now

The housing market keeps sailing along. The only headwind that could take it off course is the lack of inventory for sale. The National Association of Realtors (NAR) reports 410,000 fewer single-family homes for sale this March than March 2020. The key to continued success in the residential housing market is for more listings to come on the market. However, many homeowners are concerned that selling their homes could be challenging for several reasons.
Recently, Homes.com released the findings of a survey that identified these concerns, as well as what it will take for homeowners to feel comfortable selling their houses. Here are the four major homeowner concerns and a quick explanation of what’s happening in the housing market today.   more...

05/28/2021

Facts About Selling a Home to Your Family

Facts About Selling a Home to Your Family

It’s not uncommon to wish to sell a home to a family member, but it can become a tricky situation. You have to be mindful of not only the personal elements that can come with doing this type of transaction with a relative, but the IRS may also scrutinize the transaction if you don’t avoid certain red flags. It’s perfectly legal to sell a home to a family member as long as you’re not just doing it to avoid taxes. If you’re selling the property at a steeply discounted rate, you might have to pay an estate and gift tax, but beyond that, it’s just like any other real estate transaction.
Owner-Financed: One option if you’re selling your home to your child, for example, is to select an owner-financed sale. Then, your family member would make payments to you instead of a bank. However, you’ll need to legally arrange it so that if your relative defaults, the home goes back to you automatically, enabling you to sell it.   more...

05/28/2021

Reopening the economy is stabilizing the Bay Area rental market, but to what extent?

Reopening the economy is stabilizing the Bay Area rental market, but to what extent?

It’s no secret that rent prices were dropping quickly during the pandemic – especially in major Bay Area cities. But according to a recent analysis, there are signs the pandemic-weary rental market is edging up just a bit.
After months of decline essentially due to the pandemic, the Bay Area rental market appears to be stabilizing, although there is still a lot of uncertainty as the economy reopens. Even as home prices are red hot, the median rent for a one-bedroom apartment has dropped as much as a quarter in many Bay Area cities, but rents have begun to edge up just a bit.   more...

05/28/2021

Spring Real Estate Trends to Lookout For

Spring Real Estate Trends to Lookout For

Spring is always an interesting and exciting time in real estate, so what are analysts expecting we can see this year?
Increasing Mortgage Rates Depending on how the economic recovery comes along, that mortgage rates could continue to increase. Rates have been on the rise for weeks, while earlier in the year, rates held under 3%. Analysts believe that it would be a good time for borrowers to try and lock in low rates now, with the anticipation they’ll tick upward through the year.   more...

05/12/2021

Housing Interest Continues to Fall as Mortgage Rates Drop to a Two-Month Low!

Housing Interest Continues to Fall as Mortgage Rates Drop to a Two-Month Low!

Lower mortgage rates are not prompting homeowners or potential homebuyers to contact their lenders, as other obstacles stand in their way. According to the Mortgage Bankers Association’s seasonally adjusted index, the total mortgage application volume fell 2.5% last week from the previous week.
The decline came even though the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) decreased to 3.17% from 3.20%, with points decreasing to 0.30 from 0.36 (including the origination fee) for loans with a 20% down payment. That is the lowest rate since the end of February.   more...

05/11/2021

Millennials are making their presence felt in the real estate market

Millennials are making their presence felt in the real estate market

Photo by Kindel Media from Pexels
Over the last several years, millennials have rented to stay nimble and keep work opportunities open. Now, they're ready to buy.   more...