Check How Mobile-Friendly Your Website Is

Check How Mobile-Friendly Your Website Is. Image courtesy of patrisyu / FreeDigitalPhotos.net

Google will soon be labeling websites “mobile-friendly” if they meet certain web-accessibility standards. The purpose of the new label is to help prevent frustration among mobile searchers, who are growing tired of visiting sites with too-small text, difficult-to-tap links, or sites that have to be scrolled sideways to view all the content.

Google started adding the “mobile-friendly” label to its mobile search results last week. To earn the label, Google says a site must meet the following criteria:

• Software that is not easily viewed on mobile devices (such as Flash) is avoided.
• The text is readable without the visitor having to zoom in.
• The site automatically sizes the content to fit the screen, so that visitors don’t have to scroll across or zoom to view the page’s contents.
• Links are far enough apart so visitors can tap them with ease.

To find out how mobile-friendly your site is, Google offers a Mobile-Friendly Test. You can plug in your URL and you’ll receive a report on how mobile-friendly the page is. This criteria could later be used to determine where your site falls in search results.

“We see these labels as a first step in helping mobile users to have a better mobile web experience,” Google writes in a statement announcing the new labels. “We are also experimenting with using the mobile-friendly criteria as a ranking signal.”

Source: Google

A More Efficient Home This Thanksgiving

A More Efficient Home This Thanksgiving. Image courtesy of Danilo Rizzuti / FreeDigitalPhotos.net

Consumer home ownership site HouseLogic has a whole list of ways you and your clients can avoid gobbling up more energy than necessary this Thanksgiving. They’ve mapped out ways to save on energy before Turkey day as well as during the cooking and cleanup processes. Keep these tips in mind, and consider sending them to homeowners and clients who are concerned about the high energy costs of entertaining.

Before:

• Install a dimmer switches. Every time you dim a bulb’s brightness by 10 percent, you’ll double its lifespan.
• Plan side dishes that can cook simultaneously with the turkey. If you cook dishes at the same temperature at the same time, you’ll reduce the amount of time the oven has to be running.

During cook-time:

• The oven will keep your home cozy, so you can lower your house thermostat a few degrees.
• If you use your oven’s convection feature, you’ll reduce the required temperature and cooking time and cut your energy use by about 20 percent.
• Use microwaves and slow cookers whenever possible, as they both use less energy than ovens overall.

After the meal:

• Scrape plates instead of rinsing. Then, use your dishwasher (on the air-dry setting) on whatever dishes you can, as it saves both energy and water.
• Compost your non-meat food waste.

HouseLogic doesn’t just dole out energy tips; they also have a separate piece all about how to clean up after Thanksgiving in half the time. Cheers!

Source: “9 Ways to Avoid Gobbling Up Energy on Thanksgiving,” HouseLogic (Nov. 12, 2012)

Smaller Homes Mean More First-Time Buyers

Smaller Homes Mean More First-Time Buyers. Image courtesy of Ambro / FreeDigitalPhotos.net

The size of the typical home is shrinking, which may be a sign that a wider array of buyers, including first-timers, are returning to the market. The median size of a single-family home has decreased for the past two consecutive quarters, and it will likely continue to go down as more first-time buyers look to purchase, according to the National Association of Home Builders.

The median size of a single-family home dropped 2.3 percent in the third quarter over the previous quarter, falling from 2,472 square feet to 2,414. That marks the smallest size since the fourth quarter of 2012.

Home sizes were on the rise coming out of the recession, mostly due to a surge in the luxury market, NAHB notes.

“Typical home size falls prior to and during a recession as some home buyers cut back, and then sizes rise as high-end home buyers — who face fewer credit constraints — return to the housing market in relatively greater proportions,” NAHB notes on its blog, Eye on Housing. “This pattern has been exacerbated in the last two years due to market weakness among first-time home buyers.”

But the decline in square footage now indicates that entry-level buyers are on their way back.

The latest drop in the median home size “doesn’t reflect changes in preferences, necessarily. It reflects who’s buying new single-family homes,” Robert Dietz, an economist with NAHB, told The Wall Street Journal.

Indeed, building giant D.R. Horton Inc. posted a 38 percent surge in sales orders in the fourth quarter, attributing most of those gains to its new Express brand homes that are priced at $200,000 or less.

“I do know that bigger houses are not as in-demand as smaller houses unless you’re in a community where you’ve tapped into a niche,” notes Brian Johnston, COO of Mattamy Homes, a Canadian builder that operates in four U.S. states. “We would definitely be seeing more affordable product as the trend line.”

Source: “Single-Family Home Size Leveling Off as Market Recovers,” National Association of Home Builders’ Eye on Housing Blog (Nov. 19, 2014) and “Could the Decline in Median New-Home Size Herald Return of Entry-Level Buyers?” The Wall Street Journal (Nov. 19, 2014)

Mom, Dad Are Moving in …

Mom, Dad Are Moving in … Image courtesy of stockimages / FreeDigitalPhotos.net

Many reports have centered on the upswing in adult millennial children moving in with their parents. But as these young professionals finally move out and form their own households, they may find that their baby boomer parents may soon coming knocking with moving bags in hand.

The American Institute of Architects found that dedicated guest rooms, including in-law suites, have been surging in popularity over the last few years. In 2014, 39 percent of the AIA’s more than 500 residential architects surveyed said they were seeing more demand for in-law suites, which might include a second master bedroom suite with a bathroom or an attached apartment-like structure. By comparison, in 2012, the percentage stood at only 10 percent.

“As many households become caretakers for aging relatives, separate living suites have become popular options for accommodations,” says Kermit Baker, chief economist for the AIA.

The AIA also says that home features accommodating multiple generations and age-in-place features are growing in demand.

Six percent of U.S.-born seniors live with relatives, and the trend is even more popular among immigrants. Twenty-five percent of foreign-born seniors live with relatives, according to a survey conducted by the real estate site Trulia.

Source: “More Parents Move in with Their Kids,” MarketWatch (Nov. 18, 2014)

5 Real Estate Predictions for 2015

5 Real Estate Predictions for 2015. Image courtesy of Stuart Miles / FreeDigitalPhotos.net

Expect the home-purchase market to strengthen along with the economy in 2015, according to Freddie Mac’s U.S. Economic and Housing Market Outlook for November.

“The good news for 2015 is that the U.S. economy appears well-poised to sustain about a 3 percent growth rate in 2015 — only the second year in the past decade with growth at that pace or better,” says Frank Nothaft, Freddie Mac’s chief economist. “Governmental fiscal drag has turned into fiscal stimulus; lower energy costs support consumer spending and business investment; further easing of credit conditions for business and real estate lending support commerce and development; and consumers are more upbeat and businesses are more confident, all of which portend faster economic growth in 2015. And with that, the economy will produce more and better-paying jobs, providing the financial wherewithal to support household formations and housing activity.”

Freddie Mac economists have made the following projections in housing for the new year:

1. Mortgage rates: Interest rates will likely be on the rise next year. In recent weeks, the 30-year fixed-rate mortgage has dipped below 4 percent. But by next year, Freddie projects mortgage rates to average 4.6 percent and inch up to 5 percent by the end of the year.
2. Home prices: By the time 2014 wraps up, home appreciation will likely have slowed to 4.5 percent this year from 9.3 percent last year. Appreciation is expected to drop further to an average 3 percent in 2015. “Continued house-price appreciation and rising mortgage rates will dampen affordability for home buyers,” according to Freddie economists. “Historically speaking, that’s moving from ‘very high’ levels of affordability to ‘high’ levels of affordability.”
3. Housing starts: Homebuilding is expected to ramp up in the new year, projected to rise by 20 percent from this year. That will likely help total home sales to climb by about 5 percent, reaching the best sales pace in eight years.
4. Single-family originations: Mortgage originations of single-family homes will likely slip by an additional 8 percent, which can be attributed to a steep drop in refinancing volume. Refinancings are expected to make up only 23 percent of originations in 2015; they had been making up more than half in recent years.
5. Multi-family mortgage originations: Mortgage originations for the multi-family sector have surged about 60 percent between 2011 and 2014. Increases are expected to continue in 2015, projected to rise about 14 percent.

Source: Freddie Mac

Credit Unions Step in to Fill Lending Void

Credit Unions Step in to Fill Lending Void. Image courtesy of Stuart Miles / FreeDigitalPhotos.net

The number of mortgage originations issued from credit unions in the first half of 2014 has climbed 10 percent year-over-year. This has elevated credit unions to having more than 8 percent share of the home loan market—about triple their share prior to the recession—making them a growing option for home buyers looking for financing, according to data from the Credit Union National Association.

In June, the nation’s 6,557 credit unions surpassed 100 million members (you still have to be a member of one to get a loan, but many credit unions are tied to employment, trades, religious groups, or specific communities). Nearly two-thirds of credit unions offer mortgages.

“We’ve seen a very strong increase in originations over the course of the last several years,” Mike Schenk, vice president of economics and research at CUNA, told the Los Angeles Times.

Mortgages comprise about 41 percent of all credit union loans compared to 25 percent in 2000. The average loan amount at a credit union is $130,000, and 70 percent of the loans offered are for 30-year fixed-rate mortgages. But many credit unions do offer different financing options for members. For example, Pentagon Federal, with 1.3 million members nationwide, introduced a 15/15 adjustable mortgage, where rates reset only once at the midterm mark to reflect the current market rate. Also, the National Institutes of Health Federal CU offers the five-year fixed-rate mortgage, dubbed the “see ya” loan, which allows home owners to refinance and coordinate it to a time of a special event, such as retirement or when the children go to college, in order to end their mortgage payments by that time.

Credit unions don’t typically charge cheaper interest rates, but they “tend not to tack on a bunch of superfluous fees that other lenders seem to love,” the Los Angeles Times notes in a recent article. “And because they are local and member-controlled, they are more likely to consider applicants with a story to tell than some underwriter five states over who is forced to stick to standard guidelines.”

Source: “Shopping for a Loan? Credit Unions Can be Consumer-Friendly Option,” Los Angeles Times (Nov. 9, 2014)

Mortgage Rates Still Near Yearly Lows

Mortgage Rates Still Near Yearly Lows. Image courtesy of cooldesign / FreeDigitalPhotos.net

The 30-year fixed-rate mortgage is hovering around 4 percent. This has been keeping borrowing costs low for refinances and home buyers for the last few weeks, Freddie Mac reports in its weekly mortgage market survey.

Freddie Mac reported the following national averages for mortgage rates for the week ending Nov. 13:

• 30-year fixed-rate mortgages averaged 4.01 percent, with an average 0.5 point, dropping from last week’s 4.02 percent. A year ago, 30-year rates averaged 4.35 percent.
• 15-year fixed-rate mortgages averaged 3.2 percent, with an average 0.5 point, dropping from last week’s 3.21 percent average. Last year at this time, 15-year rates averaged 3.35 percent.
• 5-year hybrid adjustable-rate mortgages averaged 3.02 percent, with an average 0.5. point, rising from last week’s 2.97 percent average. A year ago, 5-year ARMs averaged 3.01 percent.
• 1-year ARMs averaged 2.43 percent, with an average 0.4 point, dropping from last week’s 2.45 percent average. Last year at this time, 1-year ARMs averaged 2.61 percent.

Source: Freddie Mac

Home Remodeling Activity Falls as Rents Rise

Home Remodeling Activity Falls as Rents Rise. Image courtesy of chokphoto / FreeDigitalPhotos.net

Markets where rents are rising rapidly are seeing less home-improvement activity, translating to rental properties that aren’t being upgraded or properly maintained, suggests a new study.

In many ZIP codes where rents have climbed by some of the highest amounts, remodeling and other home-improvement activity are at their lowest, according to a new study by BuildZoom, which analyzed housing-cost and building-permit data.

The study found that from 2011 to 2013, a 10 percent increase in rents in a ZIP code was accompanied by an average 9.7 percent decrease in the number of homes undergoing permitted improvement, says Issi Romem, chief economist for BuildZoom.

Romem speculates that with rents rising, particularly in high-dollar places like San Francisco, landlords likely are facing fewer vacancy periods, which may leave them less time to make home improvements. Also, “when eager renters are lining up at the door, landlords have less incentive to renovate,” Romem says. “If one can make top dollar renting a place out as-is — why not?”

On the flip side, remodeling and home improvement activity tended to rise more in ZIP codes with greater increases in home values as opposed to rents, Romem found.

“From 2004 to 2013, we estimate that, on average, a 10 percent increase in home values was associated with a 4.3 percent increase in the number of homes undergoing improvement,” he says.

Source: “Rising Rents Correlate with Less Home Improvement Spending,” HousingWire (Nov. 12, 2014)

Stage for Home Buyers’ Return

Stage for Home Buyers’ Return. Image courtesy of jannoon028 / FreeDigitalPhotos.net

Home buyers are reportedly returning to the market after nearly a year, as mortgage rates mostly stabilize and federal regulators offer up rules that promise to make it easier to get a loan, Reuters reports.

Home building giants D.R. Horton Inc. and Toll Brothers Inc. reported this week a sharp rise in new orders that hasn’t been matched since last year. Builders are welcoming the rise, after a reportedly disappointing spring selling season.

In October, mortgage rates plummeted to the lowest levels since June 2013 – below 4 percent – and near record lows. The dip was welcome news to buyers after a steady rise in rates for the past year. What’s more, government regulators have recently proposed new rules to allow buyers to purchase homes with down payments as low as 3 percent, more welcome news for many buyers who have been sidelined by strict underwriting in recent years.

“We’re definitely seeing a lot more purchase business than we have in the past,” Matt Hackett, underwriting manager at Equity Now, a New York–based mortgage lender, told Reuters.

Still, for the recovery to take full root, one important buyer segment needs to reemerge: first-time buyers. The National Association of REALTORS®’ research released earlier this month showed the number of first-time buyers this year dropped 5 percentage points from a year prior to 33 percent — the lowest share since 1987, in which it was 30 percent.

“First-time home buyers are the ones missing from the marketplace (and) part of the reason we’ve had a relatively slow recovery in housing,” says David Crowe, chief economist at the National Association of Home Builders. “Some relaxation in the overly restrictive lending standards will bring the first-time home buyer back.”

Source: “Easier Mortgage Rules, Stable Rates Bring Back U.S. Home Buyers,” Reuters (Nov. 11, 2014)