Should Boomers Worry About Millennials' Housing Shift?

Daily Real Estate News | Monday, June 17, 2013

The Millennial generation is showing different housing preferences than previous generations, and some analysts say that Baby Boomers may be growing concerned that they will have a tough time selling their suburban, larger homes due to the Millennials’ differing tastes.
The Millennial generation has been called a key to the housing recovery, and housing experts are taking careful note of how the younger group's housing preferences differ from previous generations.
A new survey by the Urban Land Institute’s Terwilliger Center for Housing shows that about 60 percent of the millennial genreation say they prefer a mix of housing choices and prefer to be near shops, restaurants, offices, and transit. Seventy-five percent of Millennials say they value walkability. Of the 63 percent of Millennials who say they plan to move within the next five years, about 40 percent say they expect to move to multifamily housing.
“I do think their preferences are going to result in sustained change,” says Lynn Ross, the executive director of the ULI Terwilliger Center for Housing. “This group is so different from previous generations.”
One of the biggest obstacles facing this generation is student loan debt. Fifty-four percent of those aged 22 to 32 said that debt is their biggest financial concern. Forty-two percent referred to their debt as “overwhelming.”
“This generation has been through an incredibly difficult time, and I think it is ultimately going to operate very similarly to the generation that went through the Great Depression,” Ross says.
Source: “Home Loans for Millennials,” The New York Times (June 13, 2013)

RENTED - 336 Peckham St Fall River, MA - 2 BR Apartment for Rent - David M. Ferreira

Located at 336 Peckham St in Fall River is this 2 Bedroom Double Parlor totally modern apartment for rent for $700. Convenient to commute to Boston, Taunton, Fall River or Providence – Right Off Plymouth Avenue and Route 24/ I 195

Check out the video tour at the link below:




As you can see in the video, this is a move in ready unit.

What About?	336 Peckham St Apt 3 Fall River, MA 02724
Rent	$700
Layout?	3rd Floor, 2 Bedrooms, Double Parlor, 1 Bathroom
Any utilities included?	Hot Water
Move In?	First month's rent, Security Deposit, Tenancy At Will (Total Deposit $1400)
Updates?	CENTRAL AIR! Modern Kitchen and Bathroom, Newer Heating System
Pets?	NONE - Non-Negotiable
Heating System?	Gas, Forced Hot Air
Laundry?	Coin-Op In Basement
Square Feet?	Almost 1000
Deleaded?	Yes
Smoking?	No Smokers
How Many Stairwells?	1 Stairwell in front and Fire Escape in Rear
Flooring?	Carpet
Parking?	On Street Only

All of this, and more… for only $700 a month.

 

First month’s rent and Security Deposit ($700) are required to move in ($1400 total deposit). There is a $50 Application fee which will be applied towards your deposit if you are accepted for the apartment. If you are not accepted, that fee may be refunded. We conduct a comprehensive character/reference check on all potential tenants. Final decision rests with the landlord(s).

Call me at (508) 762-4777 to schedule your tour.

6 Ways a Home May Turn Off Buyers

DAILY REAL ESTATE NEWS | TUESDAY, JUNE 11, 2013

Bankrate.com recently featured a list of the top ways buyers back away from a home listed for sale. Its list includes these items, among others: 

1. Dirt: "The No. 1 biggest mistake is not getting the home in the best possible condition. That's huge," says Chad Goldwasser of Goldwasser Real Estate in Austin, Texas. "I won't even represent sellers at this point unless they are fully aware of how important it is to get their home in the absolute best condition that they've ever had it in." Goldwasser suggests also steam-cleaning tile and grout and carpets and replacing carpets if necessary. 

2. Odors: "Odors are a big one, especially kitchen odors," says Julie Dana, co-author of The Complete Idiot's Guide to Staging Your Home to Sell. "I advise my clients not to cook fried food, fish, or greasy food while the house is on the market. ... Interestingly, next to the kitchen, the smelliest room in the house is actually the living room. That's typically the room that has the most fabric, so that is where odors get absorbed." She recommends having curtains and upholstery cleaned, particularly if someone in the home is a smoker, and taking steps to eliminate any pet odors. 

3. Old fixtures: "You need to change out old fixtures in your house," Goldwasser says, adding outdated ceiling fans and light fixtures should be replaced prior to listing a home. "New cabinet hardware and doorknobs will probably cost all of $400 or $500, but it makes a huge difference."

4. Wallpaper: When buyers see wallpaper, they think of another thing to add to their to-do list, says Dana.  "Wallpaper is extremely personalized. You've spent hours looking over books to pick out the wallpaper you want," she says. "What are the odds that the person walking in the door will also like that wallpaper that you picked out?"

5. Popcorn acoustic ceilings: These ceiling were popular in the 1960s and 1970s but now can date a home. Still, it can be a mess and costly to remove, so real estate professionals say sellers may need to be prepared to credit a buyer in certain markets if they decide to keep the popcorn ceiling when selling a home. 

6. Too many personal items: Cluttered homes make it difficult for buyers to see past the home owner’s belongings and start envisioning themselves there. "Anything that makes your house scream 'you' is what you don't want," Dana says. "I tell all my clients that how we decorate to live and how we decorate to sell are different, and right now, we're decorating to sell."

Source: “10 Ways to Turn Off a Would-Be Homebuyer,” Bankrate.com (June 10, 2013)

Why Some Buyers Are Feeling Like They Missed Out

DAILY REAL ESTATE NEWS | TUESDAY, JUNE 11, 2013

Mortgage rates and home prices are on the rise, and some home buyers who were waiting around for the housing market to reach bottom are realizing now they may have missed the boat. 

Mortgage rates are inching up, with the 30-year fixed-rate mortgage averaging 3.91 percent last week -- up from 3.3 percent in early May, according to mortgage giant Freddie Mac. 

"It's unlikely that rates will ever be that low again," says Doug Duncan, Fannie Mae's chief economist. 

The Fed has been keeping interest rates at record lows by buying up to $85 billion a month in Treasury bonds and mortgage-backed securities, which has helped bolster the housing market. 

"Up until recently, expectations were that the Fed would begin to taper purchases of mortgage-backed securities and Treasury bonds late in 2013, but that time frame appears to have moved to September, possibly sooner," says Keith Gumbinger, vice president of HSH.com, a mortgage information company. 

As the economy continues to gain traction, interest rates are expected to continue to increase, Gumbinger says, since low rates often are associated with a distressed economy. 

But even if mortgage rates move up a percentage point or two, housing experts note that mortgage rates will still be low by historical standards.

"The 30-year [mortgage rate] hit a 37-year low in 2003 at 5.23 percent," Gumbinger says. "That was the previous low-watermark prior to this financial crisis, and it's likely we will move closer to that mark as we grind forward."

Source: “Why You Missed the Boat On Record-Low Mortgage Rates,” CNNMoney (June 6, 2013)

Why Builders Don't Fear Housing Bubble

Daily Real Estate News | Monday, June 10, 2013

Home prices are rising rapidly in many markets, but Pacific Coast Builders Confidence attendees name two main factors that should quell fears of a new bubble.
“The ultimate reality check is affordability,” Ara Hovnanian, chief executive of homebuilding giant K. Hovnanian Enterprises, told The Wall Street Journal.
Home prices soared during the housing boom, making homes less affordable for families earning the median income. The National Association of REALTORS®’ affordability index fell to 107.6 in 2006—often considered the height of the housing bubble. But following the housing crash, housing affordability rose (the higher the index, the greater the affordability). In 2008, the index climbed to 137.8, and reached a high of 193.2 in 2012, according to NAR.
Based on median income figures and median prices, the average American family earns “nearly twice as much as it needs to afford a reasonable home and not break the bank on monthly payments,” The Wall Street Journal reports.
“If mortgage rates went up 270 basis points [or 2.7 percentage points], affordability would fall to about 138—one of the highest affordability rates of all time,” Hovnanian says.
Another reason why many builders say they aren’t concerned the market is heading for another housing bubble: Home construction is still near record lows. Home building is only about half of what is considered healthy for the sector.
“We’re coming from such depressed levels that we’re not even back to what’s normal,” says Jonathan Jaffe, chief operating officer of Lennar Corp., the third largest homebuilder in the U.S. “We’ve got a long way to go before I think you can talk about excess, or about a bubble, or before rising interest rates will affect that fundamental demand.”
Source: “Builders Sniff at the ‘Bubble’ Talk,” The Wall Street Journal (June 7, 2013)

More Sellers Jump Into Favorable Market

Daily Real Estate News | Monday, June 10, 2013

Inventories of for-sale homes are increasing as more owners see rising home prices and faster sales as a reason to try to sell now, according to industry reports.
In April, the number of listings was higher than the level of homes that were under contract in that month, according to a study by the real estate brokerage ZipRealty, which measured listings in 24 major metro markets.
“It’s less of an indication of buyer momentum flagging and more of seller momentum picking up, finally,” says Lanny Baker, the company’s chief executive.
The reports find that homes are selling faster—on average, within 32 days of being listed. In April 2012, that average stood at 48 days for homes to sell.
“A market in which the sale prices are happening very close to the list prices, a market in which the list prices seem to be moving sequentially higher, and a market in which any of those houses are selling speedily is one that is bringing sellers back,” Baker says. “That makes it feel to a seller that this isn’t going to be a long passive despair that I tried three years ago.”
Source: “Why More Sellers Could Test the Market,” The Wall Street Journal (June 10, 2013)

Most Renters Plan to Buy, But Fear Lending Standards

Daily Real Estate News | Friday, June 07, 2013 

Ninety percent of renters say they expect to buy a home in the future, but the majority are fearful of their ability to qualify for a mortgage at today’s stringent underwriting standards, according to a new survey conducted by Fannie Mae. In fact, 42 percent of those who intend to buy a home one day say they don’t think they’ll be able to do so for at least five years. 

"Younger renters who prefer to own are much more likely than their older counterparts to say that they are renting mainly to make themselves financially ready to own," according to the survey. 
The majority of renters surveyed said that if they had trouble qualifying for a mortgage, they would take steps to improve their credit score or financial situation, or consider buying a less expensive home. Only a quarter of renters said that if they were denied a mortgage, they would stop pursuing a mortgage altogether.
The survey showed that renters believe home ownership is better than renting in terms of privacy, security, and for raising a family. Fifty-one percent of renters say that owning makes more sense than renting when comparing both the financial and lifestyle benefits, according to the survey. 
"The strength of the economy, particularly job creation and real income growth, as well as the favorability of credit conditions should play significant roles in determining if and when many of these renters will see the fruit of their efforts to become home owners," says Sarah Shahdad, analyst of Economic & Strategic Research at Fannie Mae.
Source: “Renters pursue the American Dream of homeownership,” HousingWire (June 6, 2013)

RENTED- 1159 Bedford St Fall River MA - Apartment for Rent $650 - David M. Ferreira

Located at 1159 Bedford St in Fall River is this 2 Bedroom Double Parlor recently updated apartment for rent for $650. Convenient to commute to Boston, Taunton, Fall River or Providence – Right Near Eastern Avenue and Route 24/ I 195

Check out the video tour at the link below!




As you can see in the video, this is a move in ready unit.

What About?	1159 Bedford St Apt 3 Fall River, MA
Rent	$650
Layout?	3rd Floor, 2 Bedrooms, Double Parlor, 1 Bathroom
Any utilities included?	Just Water
Move In?	First month's rent, Last month's rent, 1 year lease
Updates?	Modern Kitchen and Bathroom, Newer Heating System
Pets?	NONE - Non-Negotiable
Heating System?	Gas, Forced Hot Air
Laundry?	Coin-Op In Basement
Square Feet?	Almost 1000
Deleaded?	Yes
Smoking?	No Smokers
How Many Stairwells?	1 Stairwell in front and Fire Escape in Rear
Flooring?	Carpet
Parking?	On Street Only

All of this, and more… for only $650 a month.

First and last month’s rent are required to move in ($1300 total deposit). There is a $50 Application fee which will be applied towards your deposit if you are accepted for the apartment. If you are not accepted, that fee may be refunded. We conduct a comprehensive character/reference check on all potential tenants. Final decision rests with the landlord(s).

Call me at (508) 762-4777 to schedule your tour.

Bookmark My Website: 508 Real Estate Home Page for all my video tours and MORE APARTMENTS & HOUSES