Court College Grads: Here’s Why

Court College Grads: Here’s Why

Americans with an education level of bachelor’s degree or higher are more likely to own a home by age 30, according to a new study from the Federal Reserve Bank of New York. That’s regardless of their student debt situation too, the study finds.

Researchers who tracked college attendance and home ownership rate by age for those born between 1980 and 1986 concluded that college graduation is associated with higher home ownership rates. By age 33, the home ownership rate for those who did not attend college trails about two years behind those who did attend college with debt but did not graduate, the study showed.

“Past research has not been able to disentangle how different types of educational attainment and student debt interact to impact the likelihood of owning a home,” according to a blog post at Liberty Street Economics. “Because we observe not only whether an individual owes student debt and has attended college but also graduation status, level of degree obtained, and home ownership status, we are able to further disentangle the relationship between different education levels and home ownership.”

Yet, the amount of student debt a person has is related to homeownership rates, the study concluded. Americans carrying more than $25,000 of debt are less likely to own a home than those with smaller debt numbers.

Source: “Those With Bachelor’s Degree More Likely to Own Home, Study Says,” RISMedia (April 16, 2017) and “Diplomas to Doorsteps: Education, Student Debt, and Homeownership,” Liberty Street Economics (April 3, 2017)

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Forget Millennials: Gen X Is Driving the Market

Forget Millennials: Gen X Is Driving the Market

Millennials may often get all the attention, but members of Generation X are really the ones who have been driving the housing market lately. Gen Xers, who are between the ages of 37 and 51, make up the second largest share of home buyers, comprising 28 percent in 2016, according to data from the National Association of REALTORS®. They also are buying the largest, most expensive homes compared to any other generation.

The median price of homes purchased by Gen X buyers is $261,000, and the median size of the homes is 2,100 square feet, according to NAR. Further, Gen Xers boast a median household income of $106,600, higher than any other generation.

Some Gen Xers are drawn to previously owned homes for their charm and character, while others prefer new homes in order to customize design features, NAR data shows. Gen X buyers are also the most likely to purchase a home in neighborhoods that are convenient to schools. But they’re willing to compromise: 21 percent of Gen Xers indicate a willingness to make concessions on the condition of a home, more than any other generation.

The largest share of sellers are also members of Gen X at 29 percent, according to NAR. They are selling homes at a median price of $240,000. One in five Gen X sellers say they wanted to sell earlier but couldn’t because their home had been worth less than their mortgage. On average, Gen X sellers purchased their home 10 years ago.

Other findings about Gen X home buyers include:

• They tend to have the largest families: 62 percent have at least one child under the age of 18 years old living at home; 30 percent have two children.
• Sixty-eight percent are married couples, more than any other generation.
• The primary reasons they purchase a home are the desire for a larger home, job-related relocation, or a change in family situation.
• The median age of this group is 43 years old.
• They have the largest number of single-family home purchasers at 87 percent.
• They are the most racially and ethnically diverse group of home buyers (21 percent identify their race as other than white/Caucasian) and have the highest percentage of non-English speakers.

Source: “Generation X: Buying the Biggest Homes and Biggest Home Sellers,” National Association of REALTORS® Economists’ Outlook blog (April 14, 2017)

5 Ways to Make Listing Photos Pop

5 Ways to Make Listing Photos Pop

Photos of your listing are crucial when selling a home and presenting it online to potential suitors. The New York Times recently featured several suggestions from professional stagers and interior photographers on how to achieve a picture-perfect home, including:

Trim the belongings. “Instead of having lots of little things along a countertop or table, have one bold vessel or large plant, or a trio of objects that read as one whole,” says Laure Joliet, a photographer based in Los Angeles. “This helps anchor the photo and keeps the space feeling serene.” Keep plants and knick-knacks away from windowsills and off the piano top or coffee tables. In the kitchen, clear away all the refrigerator magnets, paper towels, and majority of small appliances. Before taking a photo in the bathroom, open the shower curtain, close the toilet lid, and remove all toiletries from counters. Keep everything clutter-free.

Harness the light. Wash the windows and open the curtains or pull up the blinds, suggests photographers in The New York Times’ article. “Natural light allows for depth in the shadows and highlights in the window, which makes a room look the way it feels,” Joliet says. “It can make your real estate photos look that much more high-end and designed.”

Add in some pops of color. Accents like colorful flowers or a throw pillow can help enhance the photos. “Instead of a fussy bouquet, a vase filled with one type of flower, or greens is best,” Joliet says. She recommends eucalyptus branches. To drape a throw: Grab the middle of the blanket and hold it up so that it cascades evenly down. Place it diagonally at the foot of the bed “with the point up toward the long side of the bed and the fringes hanging slightly off the front,” says Donna M. Dazzo, president of Designed to Appeal, a home-staging firm. To drape it over an armchair, tuck the bottom behind a throw pillow or allow the throw to cascade off the arm, she says.

Hang artwork lower. “We tend to place our art a little bit lower than maybe somebody would in personal use, because in a photo, if you place it too high, the ceiling looks very low,” David C. Salvatore, creative director for Edge Mid-Century Designs in Clifton, N.J., told The New York Times. “Everyone loves high ceilings—and certainly, if you have the ceilings, you need to put in a huge vertical piece” to make sure you show the height.”

Focus on curb appeal: Prune overgrown trees, particularly those that are obscuring the view of the house in any way, Alberto Lau, a real estate photographer in San Diego, told The New York Times. “Take the cover off the barbecue grill unless it is hopelessly rusty, in which case it’s better to move it [out of] the frame of the photo,” he says. Keep any cars away from the front of the house or driveway (place cones or signs, if necessary, to keep others away from parking in the front the day you shoot). Make sure the leaves are raked and trash bins are hidden from view. Read more tips: How to Amp Up Curb Appeal

Source: “9 Ways to Make Your Home More Photogenic,” The New York Times (April 14, 2017)

What’s on Home Shoppers’ Wish Lists

What’s on Home Shoppers’ Wish Lists

A new realtor.com® survey reveals the top desires of home buyers today: Ranch-style homes, big backyards, and updated kitchens.

More than half of home buyers say they’re on the hunt for a three-bedroom home, and 75 percent want a two-bathroom home as well, according to realtor.com®’s home buyer survey. The survey also showed a strong demand for townhouses and row homes among younger home shoppers, as 40 percent said they are looking for a townhome or row home to purchase. However, as home buyers age, single-family homes clearly are the top preference.

“The insights from our most recent consumer survey provide a glimpse into what buyers are looking at today,” says Sarah Staley, housing expert for realtor.com®. “While we often think of dream homes as being big and bold, that’s not what we’re hearing from potential buyers today. These insights can help guide potential sellers in deciding which rooms or features to invest in before listing their homes.”

Here’s an overview of some of the top features that emerged on buyers’ wish-lists, according to the survey:

The most-searched attributes at realtor.com®: Large backyards, garages, and updated kitchens

These three attributes were popular across all age groups. That said, younger home buyers with young children showed the most desire for finding a large yard and the greatest interest in living near a good school district.

The least-searched features among buyers: a guesthouse, mother-in-law suite, solar panels, and a “man cave.”

The most desired home style: Ranch homes

Forty-two percent of home shoppers say they’re looking for a ranch home, the clear leader. The second most common home style was a contemporary home at 28 percent, followed by Craftsman and Colonial styles.

The favorite room in the home: Kitchens

Eighty percent of home buyers ranked the kitchen as one of their three favorite rooms in a home, followed by master bedroom (49 percent) and living room (42 percent). (However, shoppers over 55 years old preferred garages over living rooms.)

The top goal when searching for a home: Privacy

The majority of home buyers said privacy and having a space that was solely their own was a top goal when in house-hunting mode. Buyers between the ages of 45 and 64 years old tended to value privacy the most, with privacy in the home topping other preferences like stability, family needs, and financial investment among this age group.

What motivates millennial home buyers the most: Family needs

Most millennials surveyed cited life events like an increase in family size, getting married, or moving in with a partner, as what primarily motivated them to find a new home. Home purchasers age 35 to 44 also cited family needs as the top motivation to buy. The majority of this age group also said they wanted to find a better school districts or that changing family circumstances was their motivation to buy. Home buyers over the age of 45, on the other hand, cited a chief motive to move as they were looking to downsize as they plan ahead for retirement.

Source: realtor.com®

Renters Are Starting to Feel Richer, But…

Renters Are Starting to Feel Richer, But…

Trying to convert renters to homeowners? Your job may be getting tougher. A new survey from Freddie Mac finds more renters are optimistic about their financial situations, but they’re less likely to move even if their rents increase.

“It would appear from our new survey that renters today feel better about their finances, like where they are living, and view renting favorably,” says David Brickman, executive vice president of Freddie Mac Multifamily. “This is consistent with findings from earlier surveys that show a steadily growing number of renters have a positive view of renting.”

A declining number of renters say they are working toward homeownership, expect to buy a home, or plan to move within the next few years, the survey shows. Fifty-nine percent of the nearly 1,300 renters surveyed say they plan to rent their next home, an increase from 55 percent since Freddie Mac’s last renter survey in September 2016.

Consumers’ favor for renting comes at a time when they’re getting a better handle on their finances. Forty-one percent of renters surveyed say they now have enough money to last beyond each payday, up from 34 percent in September. All age groups surveyed expressed an increase in financial confidence from the last survey, but it was most pronounced among baby boomers, growing from 38 percent in September to 48 percent now.

They don’t plan to switch apartments either. The number of renters who say they plan to move during the next two years dropped from 38 percent to 33 percent. Further, 55 percent of all respondents—and 60 percent of 35- to 49-year olds—say they like where they currently live and don’t plan to move, even if their rents increase.

Meanwhile, the percentage of renters who say they expect to own dropped to 41 percent from 45 percent in September.

Source: “Profile of Today’s Renter/Multifamily Renter Research,” Freddie Mac (March 2017)

Watch for These Open House Red Flags

Watch for These Open House Red Flags

How fast can you pick out signs of deferred maintenance in a listing? Realtor.com® recently spotlighted several red flags to watch for at an open house.

Intense scents.

The stronger the air freshener, the more likely the seller is trying to mask an offensive odor, warns Denise Supplee, a real estate professional with Long and Foster Real Estate in Doylestown, Pa. “When there’s too much going on in the scent department—plug-ins, wax warmers, and candles, for example—I wonder what that overkill is hiding,” she says. Your nose should alert your eyes to look for signs of mildew, smoke, or pet accidents.

Uneven flooring.

Examine the tile in kitchens and bathrooms closely. “If the gaps or tiles are slightly uneven, it may indicate a DIY job, which will make me think twice, especially if I know this house was flipped,” says real estate investor Eugene Gamble, owner of WeFundYourFlips in Tampa, Fla.

Foundation issues.

It’s not uncommon—or particularly alarming—to see hairline cracks in a foundation, but beware of any large gaps, Gamble says. Other potential signs of a foundation issue are sticking doors or windows, visible cracks around window frames, and uneven floors.

Chores undone.

“When I walk through a home, I look for signs that the owner might have neglected routine home maintenance,” says real estate pro Malcolm Lawson with Keller Williams Select REALTORS® in Annapolis, Md. This might be anything from burned-out lightbulbs to uncut grass outside to leaky faucets.

Mold.

Real estate broker Frank Kirschner in Fort Lauderdale, Fla. suggests opening bathroom and sink cabinets to check around water pipes or drains. Also, check caulking around faucets and tubs for black spots. Look for any patches on the ceiling as well.

Source: “Open House Red Flags: 10 Things to Look for When Buying a Home,” realtor.com® (April 11, 2017)