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Understanding Home Value Assessment by Cash Home Buyers in Seattle

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The value of your home is a significant issue to take into account when selling it. However, figuring out how much your house is worth can be difficult and perplexing.

This is especially true when dealing with Houston cash house buyers who might evaluate your home’s value differently than conventional real estate brokers.
We’ll give you a thorough explanation of how cash home buyers in Houston determine the worth of your house in this post.

The Importance of Accurate Home Value Assessment

When it comes to your home, getting an accurate assessment of its value is key. Doing so can help you set the perfect asking price to net the most profit and minimize how long your home will be on the market. Plus, it can help you avoid potential disputes and negotiations with buyers. Last but not least, it helps you decide which repairs and renovations are worth it, increasing your home’s overall value and drawing in more potential buyers.

Getting an appraisal from a professional can give you the most accurate idea of your home’s current market value. The appraiser will consider factors like comparable sales, the assessment ratio for your area, and any external obsolescence that may impact value. With this information in hand, you can confidently list your home at a competitive price, knowing what buyers are willing to pay.

Factors That Affect Home Value

When it comes to determining the value of your home, there are several key factors that cash home buyers in Houston will consider. These include:

  • Location: The location of your home is one of the most significant factors affecting its value. Properties in desirable areas, such as those close to amenities and good schools, tend to have higher values than those in less desirable locations.
  • Size: The size of your home, including the number of rooms, square footage, and overall layout, can also impact its value. Larger homes tend to have higher values than smaller homes, while unique or well-designed layouts can increase the value of your home.
  • Condition: The condition of your home, including any necessary repairs or renovations, can also affect its value. Properties in good condition tend to have higher values than those in need of repairs.
  • Market conditions: The current state of the real estate market can also impact the value of your home. During a seller’s market, home values tend to be higher, while in a buyer’s market, they tend to be lower.

The Process of Home Value Assessment by Cash Home Buyers in Seattle

Cash home buyers in Seattle typically assess the value of your home by conducting a thorough inspection of the property and taking into account the factors mentioned above. They may also consider the recent sales prices of similar homes in your area, known as comparable sales, to determine your home’s value.

It is important to note that cash home buyers in Seattle may have a different approach to home value assessment than traditional real estate agents. They may place a greater emphasis on the condition of your home and the cost of any necessary repairs, while also considering market conditions and the speed at which they can close the sale.

Maximizing the Value of Your Home

Ensuring you receive the best value for your home is achievable! Make sure to take the necessary steps to maximize its value, such as executing necessary repairs, improving its curb appeal, and updating the interior and exterior.

Additionally, it is important to work with an experienced and reliable cash home buyer in Houston to provide an accurate assessment of your home’s value. Following these steps can help you get the best return on your investment and accomplish your goals when selling your home.

Conclusion

Selling your home can be a complex and confusing process, but understanding how cash home buyers in Houston assess the value of your home can help you make informed decisions and achieve your goals. By considering the factors that affect home value, taking steps to maximize your home’s

Investing in Digital Real Estate is it worth it? 2023

The past couple years have been a tumultuous one, to say the least. A global pandemic has upended our lives and decimated economies around the world. And yet, in spite of all the chaos, there are still opportunities to be had—especially in the world of digital real estate.

If you’re thinking of investing in digital real estate, now is the time to do your research and get started. In this blog post, we’ll explore what digital real estate is, why it’s a good investment, and some tips for getting started. With the rise of the metaverse, ntfs and crypto, virtual real estate has become one of the hottest commodities around. Now is the time to get in on the action and invest in digital real estate before it’s too late.

What is Digital Real Estate?

Digital real estate is simply any type of property that exists online. This can include websites, social media accounts, apps, and even email lists. If you can own it or control it, it’s considered digital real estate.

Why Invest in Digital Real Estate?

There are a few key reasons why you should consider investing in digital real estate:

It’s Immune to Economic Downturns: One of the biggest advantages of digital real estate is that it’s not affected by economic downturns like traditional investments like stocks and bonds. In fact, during times of economic hardship, people often turn to the internet for entertainment and escape—which means that demand for digital assets actually increases.

It’s More Affordable Than Traditional Real Estate: Another advantage of digital real estate is that it’s more affordable than traditional investments like houses and commercial buildings. You can get started with a much smaller budget, which makes it more accessible for new investors.

It Has the Potential to Generate Passive Income: Unlike stocks or bonds, which only generate income when you sell them, digital real estate can generate passive income. This means you can earn money while you sleep! If you have a website or app that generates advertising revenue, for example, you can continue to earn money even after you’ve made your initial investment.

So now that we know a little bit more about digital real estate and why it’s such a great investment opportunity, let’s take a look at some tips for getting started.

Getting Started with Digital Real Estate Investments

It’s important to do your research. As with any type of investment, it’s important to do your research before putting your money into anything. Make sure you understand what you’re getting into and don’t rush into anything without thinking it through first.

Benefits of investing in virtual real estate?

Some people and organizations have bought into virtual real estate because it could be more beneficial in the future. The metaverse is still young, so these investors are banking on its growth to make their earlier purchases worth more eventually.

Some investors believe that digital real estate will have the same value as physical properties. They may provide rental income or become more valuable over time, like real assets.

But exactly how the metaverse will evolve is still highly uncertain, and investing in virtual real estate should be considered speculative and risky. If you can’t afford to lose your entire investment, virtual real estate is likely not the best option for you. The best long-term investments tend to have more stable businesses and lower risk, relative to virtual real estate.

How does one buy digital real estate?

Many ask, what is digital real estate? It is an opportunity. It is a blank space to build whatever you want. And importantly, it is a real investment. To better understand, let’s take a step back. In the transfer of regular real estate, dollars are exchanged for the property itself and various other aspects such as banks, finance companies, lawyers, and title companies are involved in the process. Similarly, virtual real estate is transferred when people exchange it for virtual currency–which often takes Non-Fungible Token (NFT) form.

Non-Fungible Tokens (NFTs) are digital assets that are unique and limited in supply. They can be bought, sold, or traded on a blockchain – a digital ledger that is duplicated and distributed across a network of computers. With an NFT, you get a password that allows you to develop your virtual land as you see fit.

Dollar bills are limited in supply, which contributes to their value. These virtual currencies have a restricted quantity of coins. The blockchain technology that supports these cryptocurrency has been developing as well, ensuring that the tokens have recognizable worth as part of this progression of virtual currencies. Just as the volume of tokens is limited (and monitored by the entire blockchain) the number of parcels of virtual land in these metaverses is also limited. 

For years now, Linden Lab has had a similar offering in Second Life. To achieve uniqueness in their virtual representation, people within this game would use USD to buy “Linden Bucks” with which they could buy items in their virtual world. (In fact, the Second Life platform was sold last July.) With some minor changes, this seems to be the foundation of the current business model in newer virtual worlds, such as Decentraland, The Sandbox, Cryptovoxels, Somnium Space, and Axie Infinity, to name a few.

Digital real estate is a very risky investment. However, we have seen big institutions enter the cryptocurrency market lately. “Institutions are here,” Grayscale, one of the leading managers of crypto investment products, wrote in its Q4 2020 report. According to The Wall Street Journal , institutions accounted for 93% of all capital inflow s during the fourth quarter, totaling roughly $3 billion.

The fluctuating nature of cryptocurrency makes it all the more intriguing for investors. On one hand, you have the potential to make large gains in a short amount of time. However, there is also always the possibility that the market could crash just as quickly. Right now, global trends appear to be moving in favor of cryptos, so investing in digital real estate could be a way to cash in on those profits.

Investing in Land Pros and Cons

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Buying land and building a home can be a rewarding and fun experience, providing you with a unique and custom living space. However, it’s not without its challenges and limitations. In this article, we will explore the pros and cons of buying land and building a home, so you can make an informed decision. Investing in land has its pros and cons as well. Some of the pros of investing in land include the potential for the land to appreciate in value over time, giving you an asset that could grow your net worth. Land can also give you more control over what gets built on it in the future. Some of the cons are that land doesn’t produce income while you own it, so it could be less profitable than other investments in the short term. There are also costs like property taxes and maintenance that need to be factored in. Carefully weighing the pros and cons of investing in land is important to decide if it aligns with your investment goals and risk tolerance.

Land is a tangible asset that you can see and touch and perhaps (depending on its size, type, and location) use for recreation, storage, or some other purpose while you wait for a run up in its price. It’s also fairly permanent. Land may be damaged or lost through natural disaster or government action, but those are rare events.

On the other hand, land is a very illiquid asset. It’s hard to value, and it can be difficult and expensive to buy or sell. And while the price of land may go up over time, it doesn’t always do so. In fact, in some markets, the price of land may go up over time, it doesn’t always do so. In fact, in some markets, the price of land has been falling for years.

So, what are the pros and cons of investing in land? Let’s take a closer look.

Pros

  1. Customization: Building your own home gives you the opportunity to create a space that is tailored to your specific needs and preferences. You can choose the layout, finishes, and features that you want, ensuring that your home meets your specific requirements.
  2. Land Appreciation: Owning land is often considered a wise investment, as it typically increases in value over time. This can provide you with a solid return on your investment and a valuable asset for your future.
  3. Energy Efficiency: When you build your own home, you have the opportunity to include energy-efficient features and technologies, such as solar panels, insulation, and efficient heating and cooling systems. This can help you save money on your energy bills and reduce your carbon footprint.

Cons

  1. Cost: Building a home can be more expensive than purchasing a pre-existing one. In addition to the cost of the land, there are also building costs, design costs, and permit fees to consider.
  2. Time: Building a home can take several months, or even a year or more, depending on the size and complexity of the project. This means you will need to plan ahead and be prepared to wait for your dream home to be completed.
  3. Responsibility: When you build your own home, you are responsible for all aspects of the construction process, including design, building permits, and construction. This can be overwhelming and stressful, especially for those who are new to the process.

One of the biggest advantages of investing in land is that it’s a finite resource. There’s only so much land on the planet, and as the world population grows, the demand for land will increase. This should lead to increases in the price of land over time.

Another advantage of investing in land is that it can be a hedge against inflation. As the cost of living goes up, the value of land generally goes up as well. This makes sense, since it takes more money to buy the same amount of land as time goes on.

One disadvantage of investing in land is that it can be a risky investment. The price of land can go down as well as up, and there’s no guaranteed return on your investment. You could end up losing money if you invest in land and the price plummet.

Land & Alternatives

The ability to develop and use outlying parcels for what officials consider less than optimal uses is being restricted by zoning boards and other agencies, not made easier, due the increasing value of the land. In other words, sprawl is a negative term.A year ago, close-in city living was more appealing than it is now because of the COVID crisis. However, worsening commute times and job opportunities in cities could make outlying areas less valuable just as quickly as COVID made them more so.

Vacant property is generally difficult to finance; it’s far more challenging than a house or commercial building or working farm already built on it. Lenders are well aware of the expenses and dangers involved in vacant land, and they don’t want to risk taking possession of it as collateral for a loan. When they do take that chance, they make certain to charge a rate of interest that reimburses them for their investment.

Land doesn’t only have unstable prices, it also has many carrying costs that eat into any return on investment. These include taxes and insurance premiums, which both go up as the property becomes more valuable.

Land is a bad investment if you’re looking to convert it to cash quickly, as there is no active market for land like there is for stocks, bonds, and shares. Land is also not easily divisible – you can’t sell just a portion of most properties – so building your land holdings through small investments is difficult.

It might be tough to sell and purchase land. Real estate agent commissions, surveys, title insurance premiums, transaction taxes, and other expenses all take away from your earnings.

Raw land is mostly speculative; you won’t receive any cash dividends from it. Moreover, it has little utility until developed, and comes with annual costs for liability insurance and property taxes. Usually, land that’s sold at a large profit was held for an extensive amount of time or was situated in an area that had sudden growth.

The fact that this last characteristic is increasingly difficult to achieve is due, in part, to the fact that the real estate market in most regions is “efficient.” There are a lot of bargain hunters looking for homes of all kinds in every region; properties for sale are simple to advertise and find; and properties for sale are simple to research, making it difficult to locate one for less than its genuine value. And properties that seem on the surface appear to be inexpensive may have a hidden price tag. A property that hasn’t sold in quite a while, despite being marketed well, is most likely not an excellent deal and may not even be priced “fairly.” There’s probably something the market knows about this particular property that some potential buyers are unaware of yet. All properties aren’t build-able due to local regulations–some have environmental impairments or murky titles. Furthermore, others might experience flooding issues, suffer from arguments over access easements, or face hidden contamination concerns, etc.

This isn’t to say that vacant property is never a fantastic purchase, or that the only assets you should invest in are paper investments such as equities, bonds, mutual funds, and CDs. Just be aware of all costs and dangers before going into any potential land acquisition.

3 Things to Know Before Selling Your Home: A blog about essential things you need to know before selling your home.

Selling your home is one of the most important financial transactions you’ll ever make. Knowing what to expect can help you avoid the pitfalls that could cost you money or jeopardize your deal. Here are three important things to keep in mind when preparing for this big step:

Give yourself enough time to sell.

It’s important to make sure that you have enough time to sell your home. You need the right amount of time so that the buyer can get financing, do an inspection and make an offer. If you’re selling on your own, this process could take anywhere from a few weeks to six months. If you’ve got a real estate agent helping out, it’ll likely take them only about six weeks or so before they find a buyer for your home.

However much time it takes for someone else to purchase your property, remember that there’s still another side of this equation: finding somewhere else to live while yours is being sold or rented out until closing day (if at all). Ideally, if everything goes smoothly with selling yours outright instead of renting out part or all of it first (which may reduce costs), then moving into somewhere temporary right away shouldn’t be too big of an issue—as long as it’s close enough by so we don’t waste any precious days getting settled into our new abode!

Make repairs and cosmetic changes before selling your home.

  • Make sure your home is in good shape, both inside and out.
  • Clean up, organize and put away anything that might be lying around.
  • Decorate the home with fresh paint, new flooring or other enhancements to make it more attractive to buyers.
  • Repair any damage so it looks like the home has been well-maintained and cared for over the years you’ve lived there.
  • Make sure there’s plenty of natural light streaming into each room during the day; artificial lighting should be used only when necessary (for example, if you sell an evening gown online).

Find a realtor who is knowledgeable about your area.

Finding a realtor who is knowledgeable about your area.

Before you even think about putting your home on the market, make sure you have a great realtor. You want to find someone who is familiar with the local schools and has sold properties in your neighborhood or one similar to it. There are several things you can do to help ensure that the realtor you hire knows their stuff:

  • Ask for recommendations from family members and friends who have bought or sold homes recently (and ask them why they chose that specific agent).
  • Search online for agents in your town/city/county, etc., and read reviews from others who worked with them before hiring one yourself. If possible, talk directly with people who’ve used each agent’s services before deciding which ones might be right for you!

Have you considered these three things before selling your home?

Have you considered these three things before selling your home?

  • Have you given yourself enough time to sell?
  • Are the necessary repairs and cosmetic changes completed so that your house will look its best?
  • Do you have a realtor that is knowledgeable about your area, who can help you find someone who is interested in buying your home at its current market value.

Conclusion

If you are planning on selling your home, it is important to be aware of these three things before undertaking the process. Selling your home can be a stressful endeavor, especially if you do not have experience with the process. By doing your research and finding an experienced realtor to work with, you will help ensure that this transition goes smoothly from start to finish!

The Seattle metro ranks among top markets for commercial real estate

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The Seattle-Tacoma area now ranks 5th overall in CrowdStreet’s national list of top commercial real estate markets in which to invest. It has jumped from 14th on the commercial real estate investment platform’s list in 2021.

 

The markets ahead of Seattle-Tacoma were Austin, Texas, followed by Raleigh-Durham, North Carolina; Nashville, Tennessee; and Orlando, Florida. All very fast growing markets.

 

In the Puget Sound region, multifamily continues to be a “superstar,” with a ranking of fourth overall, Ian Formigle, chief investment officer for CrowdStreet, told Business Journal.

 

Though King County’s population decreased by 20,000 in 2021, homes prices and rents continued to increase.

 

“The Seattle-Tacoma MSA (metropolitan statistical area) is about two years behind in housing production,” he said. “There is strong job growth coupled with a housing shortage and rising home prices forcing people to rent, so multifamily rent rates are back to pre-pandemic levels and rising, making the Seattle-Tacoma MSA a great area for investors to consider multifamily investments.”

 

The report also ranks the Puget Sound area as the third-best place to invest in industrial real estate, behind Los Angeles and Orange County.

 

“Seattle has had a 9% year-over-year increase in port volumes,” Formigle said. “This increase has fueled industrial demand and led to a 4% vacancy rate in its industrial market. Adding more fuel to Seattle’s already blistering industrial market, where a $367 per square foot average sales price for industrial properties makes the MSA the nation’s most expensive, is the fact that a substantial number of industrial leases are expiring this year and were inked before the massive surge in e-commerce instigated by the pandemic. Prices to lease these industrial properties are up an average of 25% over the rates of the five-year contracts that are expiring.”

 

Industrial rents in coastal markets, such as a the Puget Sound, are expected to rise 40% over the next two years, according to the report.

 

The Puget Sound area also grabbed the report’s third-ranked spot on the best places to invest in retail.

 

“While the pandemic decimated retail in many MSAs, Seattle’s robust employment growth, high-income levels (the second-highest in salary level and third-highest in growth when compared to other major U.S. tech markets) and anticipated population growth of almost 50,000 residents this year, point to a healthy increase in retail deal volume in the MSA for 2022,” Formigle said.

 

In the report, Seattle-Tacoma did not rank among top markets for office, life sciences or hospitality real estate.

Will Seattle Housing Surpass the Eastside?

Let’s face is it, any real estate around the Seattle area has been soaring for the last decade. With high paying tech jobs and huge number of fortune 500 companies, Seattle’s economic powers only continue to grow. There has been major changes across the US, as cities are being transformed both good & bad.

How expensive is the Eastside?

For those who aren’t familiar with Seattle, the Eastide would probably be considering anything along the I-405 freeway. This includes cities such as Kirkland, Redmond & Bellevue. It is notoriously known for having a high amount of tech related jobs with many fortune 500 companies such as Expedia, Nintendo and of course, Microsoft’s Headquarters in Redmond. Also many prominent companies have setup offices in the area including Google, SpaceX & Salesforce. The Eastside is no stranger to tech, but with these high paying careers and a fast population growth, one might wonder how the cost of living is doing.

Graph of rents across the Eastside of Washington

Medina, Mercer Island, and West Bellevue (9804) rank as the most expensive zip codes in Washington state. Medina, of course is home to Bill Gates & Jeff Bezos whom are the two wealthiest people in the world. The Eastside is considered more of a suburban area and there for has a lot more single family homes. To give you an idea of the cost of living, the average rent in Bellevue is currently just over $2,500/mo. That is 138% more than the national average where as the average home is at about $825,000.

How expensive is Seattle?

Let’s be clear that just like any other metropolitan city, Seattle is composed of many neighborhoods, zip codes and regions. For the sake of this research we focused on the areas that have been getting the most growth and with the highest employment rate, the majority of these neighborhoods are in the north side of Seattle.

source: rentcafe

The average rent for an apartment in Seattle is $2,122, a 3% increase compared to the previous year. However, there is good new as the city of Seattle has been on a building spree the last few years. Rental prices obviously vary through neighborhood. Downtown Seattle has the most expensive rents in Seattle and the Puget Sound area. The Seattle area seems to be building many apartments in the area and thus has cooled off demand, at least, for now. There were three Seattle neighborhoods that made it , including the neighborhoods of Belltown, Lower and East Queen Anne, and South Lake Union. Average rents ranged from between roughly $2,520 to $2,835 each month.

Since early 2018, the West Coast inventory has been on the rise. In Seattle, there were 12,267 units for sale compared to 8,011 in San Francisco. There has been more than a 40 percent throughout the past couple of years. There was an overall increase in listings in Bellevue, and a more than 30 percent increase in Kirkland. However, while rent increases have leveled out in Bellevue and Seattle, South King County cities like Renton, Kent and Federal Way all saw increases in 2019.

Result?

As it stands right now, Bellevue is still the more expensive region in Washington. The 98004 zip code has the most expensive rents in Washington and Oregon. Considering that both Seattle & the Eastside’s rents and home values are growing at the same rate. It’s tough to say whether the massive Seattle growth will surpass housing costs on the Eastside. Ever since the growth of Amazon and many tech companies such as Google, Apple and Salesforce, which are all placing huge offices in Seattle, it seems that this growth is also correlated with housing costs and rents on the Eastside. What is your prediction? Will Seattle housing surpass those on the Eastside? Which region do you prefer to live in?

The US Cities That Could See Largest Pricing Shifts

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A recent study by Natixas emphasized that the majority of homeowners may not have so positive thoughts after purchasing a home.

Huge housing markets such as New York City and Los Angeles over the next couple of years are expected to slow down. Whereas more affordable metro areas such as Miami and San Antonio could start to heat up, according to an analysis by research firm Natixis

Most firms that try and predict home prices rely on recent trends. This Natixis study looked at the supply-and-demand forces that drive prices. For example, if population growth is surpassing housing construction, the amount of home inventory is becoming more scarce, which should push prices higher, Natixis says. However, if the opposite is at work, homes are becoming more abundant, which should lead to more stable price increases or even declines.

Before any of this affects the housing prices, it’s estimated that there is a two-year gap between the growth and housing development, says Natixis economist Troy Ludtka, who conducted the study. Population growth, he says, is generally tied to an area’s economic gains.

Now that prices have climbed about 60% since bottoming in 2012, the national housing market has softened over the past year Zillow expects average U.S. home prices to rise to 2.8% over the next year, a slowdown from a 4.8% increase the prior 12 months.

“Despite this, some cities seem to be pointing upward,” says Ludtka.

Even though cities like Miami and New York could see a shift in momentum, recent trends should continue in other areas. For example, in some markets that have low housing supplies relative to population growth, that gap is widening, likely pushing prices higher, the study found. Those include Dallas-Fort Worth, San Antonio, Houston and Washington D.C.

Other areas where lots of homes have been built relative to population gains — such as Cleveland; Tucson, Arizona; and Kansas City, Missouri – the divide is widening, likely tempering price increases.

As a result of the COVID-19 pandemic, many have sought out a new place to call home. The notion of work from home has only increased and top tech talents like Silicon Valley are starting to see an exodus of people. Many tech workers are switching jobs all-together and with more and more companies moving, the trend keeps increasing. Small businesses as well are changing the way they work. Remote work seems to be more open now by small businesses and is likely to impact housing markets.

Here is a brief overview a some housing markets in the US:

Natixis-data-squarerise

What housing markets could get pricey?

Take a look at the five top metro areas where housing is becoming scarcer and home prices could be headed higher:

San Antonio, Texas

San Antonio-squarerise-ap

San Antonio (Photo: Eric Gay, AP)

It’s among the nation’s fastest-growing economies and the housing stock isn’t keeping up, Ludtka says. The population climbed 0.31% faster than home supplies over the past year.

Tampa, Florida

This sunset overlooks the Sheraton Riverwalk and downtown Squarerise

This sunset overlooks the Sheraton Riverwalk and downtown Tampa. Tampa is the 15th most popular Spring Break destination, according to Expedia.com. (Photo: Visit Tampa Bay)

Among the most vibrant economies in the southeast, Tampa is home to a variety of service and defense-related companies. The population is growing 0.25% faster than new housing, according to Natixis.

Miami

Downtown Miami - Squarerise

Downtown Miami (Photo: Getty Images)

The center for entertainment and commerce has seen prices moderate, rising 0.8% the past year, according to Zillow. But the Natixis study suggests that could shift, with home construction trailing population gains by 0.24%.

Oklahoma City

Oklahoma City

Oklahoma City (Photo: Nate Billings/The Oklahoman via AP)

Aerospace, agriculture and energy underpin a healthy economy. The population is growing 0.22% faster than new housing.

Washington, D.C.

The facade of the Capitol building in Washington, D.C.

 (Photo: Getty Images)

The technology and government center is getting a further boost with the arrival of Amazon’s second U.S. headquarters in northern Virginia. But regulations have limited new home construction, leaving housing gains trailing population growth by 0.2%.

What housing markets could get cheaper?

Here are the top five markets where housing is becoming more available and home prices could rise more slowly or fall:

Cleveland

Cleveland downtown waterfront skyline with the Rock and Roll Hall of Fame museum and the Great Lakes Science Center.

Cleveland downtown waterfront skyline with the Rock and Roll Hall of Fame museum and the Great Lakes Science Center. (Photo: Getty Images)

The former manufacturing stronghold has transformed itself into a biomedical hub but, like other older northern cities, has lost population. There were 0.54% more housing units than people added to the area the past year (including the effects of a drop in population).

Detroit

Downtown Detroit

Downtown Detroit (Photo: ROMAIN BLANQUART)

Motor City is in a similar situation, and its population has declined for decades. The drop in population puts it 0.5% behind the rise in new home supplies.

El Paso, Texas

Defenders of the historic Union Plaza neighborhood of downtown El Paso, Texas have begun using art and history to show the city that their homes should not be razed to make way for a sports arena.

Defenders of the historic Union Plaza neighborhood of downtown El Paso, Texas have begun using art and history to show the city that their homes should not be razed to make way for a sports arena. (Photo: Mark Lambie, USA TODAY Network)

The gateway from Mexico to the U.S. is ranked second among metro areas where housing is scarce but that’s changing as housing construction catches up to population gains. Housing growth is outpacing the change in population by 0.42%.

Chicago

6. Chicago: The Windy City’s towering skyline, eclectic neighborhoods and urban Lake Michigan beaches make it a young and vibrant destination that draws hordes as soon as it warms up each summer. Chicago’s museums and culinary scene make it worthwhile in the winter, too, but music, comedy, sports, and food festivals from spring through fall are all comfortably accessible by foot or public transit. Pedestrian trails along the river and the lake offer some of the city’s best waterfront views.

Most walkable neighborhoods: Near North Side, West Loop, and East Ukrainian Village.

Chicago: The Windy City’s towering skyline, eclectic neighborhoods and urban Lake Michigan beaches make it a young and vibrant destination that draws hordes as soon as it warms up each summer. Chicago’s museums and culinary scene make it worthwhile in the winter, too, but music, comedy, sports, and food festivals from spring through fall are all comfortably accessible by foot or public transit. Pedestrian trails along the river and the lake offer some of the city’s best waterfront views. Most walkable neighborhoods: Near North Side, West Loop, and East Ukrainian Village. (Photo: Getty Images)

Although it has one of the world’s largest economies, its population has been shrinking and trails housing gains by 0.36%. within the last decade.

Memphis

Beale Street in downtown Memphis, Tennessee.

The city has suffered in comparison to Nashville, its vibrant, in-state rival, and its population has declined, putting it 0.34% behind the increase in the housing stock.

You hear about home prices all the time. Just watch your local news, and you’ll hear how much the “average” home prices in your community are up or down.

Home Prices Have Reached Record Highs—Despite the Housing Slowdown

The recent housing slowdown has given opportunities to buyers that may not be so financially well off. It has even began to give sellers anxiety. However, the price of home listing are not coming down, on the contrary they’re reaching new all time highs as of Spring 2019.

For the first time in March, the median sales price reached $300K. Even though annual price growth has seen a slow down, it’s only in a few parts of the country. Overall the US list price increased 7.2% YoY in March. Comparing it to inflation which went up a mere 1.3%.

Danielle Hale, chief economist of realtor stated that, “Prices are continuing to rise and they’re going to get higher. The same property today that’s for sale is more expensive, and we’re seeing more higher-end homes for sale.”

You’re probably wondering why prices are rising if the market is supposed to be cooling?

“In a slowing market, it’s not uncommon to have a gap between list prices and sale prices. It can take sellers a little bit of time to catch up to the reality,” Hale says.

The market cooling started last summer when the intense home prices began to slow down. This was simply due to supply and demand. Many homeowners saw that home prices were at record high and they tried to capitalize on the opportunity. Ironically, all this did was flood the market with inventory that essentially lowered the prices and slowed down the market. Another factor was the rise of interest rates that got too high for some buyers. These factors ultimately led to price cuts, especially on more expensive homes and the prices didn’t climb as high as the previous year.

In total, there was a 4% increase in the amount of home sale prices for March. However, homes with prices below $200,000 were down 9%. This is making it more difficult for first time home buyers and those with less cash.

The majority of the housing increase came from the luxury market. When it came to homes priced over $750,000, there was an 11% YoY increase in the month of March.

For those that may not have that financial capabilities, there is good news. Mortgage rates have fallen to 4.06% which is giving buyers some relief. It’s the lowest it’s been since January 2018 and well below the 5% in November. This means that if you’re to buy a property for $300,000 you’ll save an average of $100/mo or more in mortgage payments, which can add up in the long-run.

Where are prices rising and falling?

Infographic of us citiea data - Squarerise

So where are prices going down, rather than up? In the nation’s most expensive market—Silicon Valley’s San Jose, CA, metropolitan area—prices plummeted 12% in March compared with the previous year. But don’t get too excited—homes still cost a median $1.1 million as of March 1, according to realtor.com data.

(The report included only the 50 largest metros, which include the main city and the surrounding suburbs and urban areas.)

“It’s a reflection of the huge influx of homes sitting on the market [in that area],” says Hale. The San Jose–area listings were up 114% in March over the previous year. “There’s more choices for buyers and more competition among sellers.”

Prices were also down 3% in San Francisco, Dallas, Houston, and Jacksonville, FL; 2% in Nashville, TN, and Austin, TX; and 1% in Miami and Orlando, FL.

On the other end of the spectrum, Milwaukee saw the biggest jump as median home prices were up 16% year over year in March. That’s likely due to the shortage of properties for sale as listings were down 8% annually. Median prices were $270,000 as of March 1.

“There has been this chronic shortage of homes on the market,” says Milwaukee-based real estate broker Betsy Head of Milwaukee Executive Realty. “People are finally getting to the point where they’ve tried to buy a home a few times and they may have failed because they wanted to negotiate on price. They are figuring out … they have to go in close to asking prices—or over it.”

But the median home price in the Milwaukee area is still reasonable when you look at many other parts of the county.

Milwaukee was followed by Rochester, NY, near the Canadian border, at 14%. Memphis; Kansas City, MO; Indianapolis; and Birmingham, AL, all experienced 13% rises. The other metros seeing double-digit rises were Seattle, at 11%, and Tucson, AZ, at 10%.

    Millennials are set to overtake Baby Boomers to become the largest living adult generation

    • Millennials are projected to overtake Baby Boomers as the largest living adult generation.
    • As older generations age and look to sell properties, growth in the rental market could outpace homeownership over the next decade.
    • Americans have already begun to lean toward rentals, as softer construction activity and housing shortages price potential buyers out of the market.

     

    Over the next decade there could be higher growth in the rental market as opposed to home ownership. Older generations are also likely to start looking to sell their homes. Over the next 10 years, home supply is set to jump by more than two-thirds, stated by Morgan Stanley in a new research note. But those born between 1981 and 2012 (Gen Y & Z) seems to edge only 7% over that period.

     

    Millennials are predicted to surpass Baby Boomers as the largest living adult generation this year, according to population projections from the US Census Bureau. With new generations it could cause an increase supply in the rental market. This is especially the case in metropolitan areas, “Gen Z + Y are more likely to rent than own, and the bulge in supply when the Baby Boomers sell looks to dampen net single-family demand,” the analysts said. “This drives a surge in rentership while ownership is challenged.”

    Screen Shot 2019 04 01 at 2.24.02 PM

    Some rental markets could see a bigger increase as some areas are more in demand than others. Currently, New England and Rust Belt have the largest group of baby boomers than other generations. However, the result is the exact opposite in the Pacific and the West South Central. As the housing market has been surging and construction, along with development, has been slim, it has led Americans to lean towards rentals. The fact that mortgage rates are lower could help increase home sales. However the new recent tax laws have reduced the incentives for people to buy homes. “Home sales are set to tread water over the next couple of years, which is good news for the rental sector,” Capital Economics economists Matthew Pointon and Andrew Burrell said in a research note. “If Americans aren’t buying homes, many will look to rent one instead.”

     

    In the end, over the next decade that demand for homes may hold up for the younger generations. In 2018 Millennial still contributed to the most of the home buying growth “I believe millennials will be the most important generational source of demand in the housing market, as well as the general economy, for a number of years to come,” he said.

     



      Current-home sales jump 11.8 percent in February (US)

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      U.S. home sales increased at roughly 11.8 percent in February, caused by accelerating wages and falling mortgage rates that are making homes more affordable.

      The National Association of Realtors mentioned Friday that current homes sold at an adjusted annual rate of 5.51 million last month, an effective sharp rebound from a pace of 4.94 million in January.

      The burst in sales points to the housing market regaining the momentum that it lost in the middle of 2018, after a spike in rates for home loans caused sales to slow. The February sales figures point toward growth in sales of homes priced between $250,000 and $500,000, a range that is generally affordable to middle-class families.

      “This was fueled principally by an improvement in affordability resulting from a combination of slower house price gains, lower mortgage rates and more rapid wage growth,” stated David Berson, chief economist at Nationwide Mutual Insurance.

      Still, existing-home sales are down 1.8 percent from a year ago because of the intensity of the slow down last year. But 30-year mortgage rates have since tumbled after peaking in early November at roughly 5 percent, helping sales to recover as that average has fallen to 4.28 percent this week, according to mortgage buyer Freddie Mac.

      Mortgage rates will most likely fall further. The Federal Reserve expressed this week that it anticipates no further interest rate increases this year — a message that has sent the yield on the 10-year Treasury note plunging. Rates on long-term mortgages closely track the 10-year yield.

      The median sales price in January was $247,500, which was a slight increase of 3.6 percent from 2018. Home price growth has been converging with average hourly wage gains in recent months.

      However, February’s sales bust caused the months’ supply of homes on the market to tumble to 3.5 months from 4.4 months in September.

      Sales climbed in the Midwest, South as well as here in the West during February but were unchanged in the Northeast.