Top 3 Reasons Why Americans Want to Own

Top 3 Reasons Why Americans Want to Own. Image courtesy of digitalart / FreeDigitalPhotos.net

The top reasons Americans say they want to own a home: The opportunity to build equity, the desire for a stable and safe environment, and the freedom to choose their neighborhood. That’s according to the National Association of REALTORS®’ 2015 National Housing Pulse Survey, a poll of 1,000 adults nationwide in the 50 largest metro areas.

More than eight in 10 Americans say that purchasing a home is a good financial decision, and 68 percent say now is a good time to buy a home, according to the survey. What’s more, 71 percent of those surveyed also believe they could sell their house for what they paid for it –up 16 percentage points from 2013.

“Home ownership is part of the American Dream, and this survey proves that dream is alive and thriving in our communities,” says NAR President Chris Polychron.

But some obstacles remain. Seventy-eight percent of respondents say college debt and student loans are the main barriers to them in making a home purchase affordable. Seventy-six percent of those surveyed say they have a full-time job but still do not make enough money to purchase a home, and 74 percent say they do not have enough money for a down payment and closing costs. A growing number of respondents are also concerned about climbing housing costs: 41 percent call the lack of affordable homes a “very big” or “fairly big” problem in their area – an increase of 9 percent points from 2013.

Source: National Association of REALTORS®

Real Estate’s Hot New Sector: Storage Units

Real Estate’s Hot New Sector: Storage Units. Image courtesy of Stuart Miles / FreeDigitalPhotos.net

It’s a good time to be in the storage unit business: Rents are rising, vacancies are limited, and competition has been muted due to limited new construction, The Wall Street Journal reports.

Storage unit companies are finding business is booming at a time when other commercial real estate sectors are still mostly flat. Investors are buying up shares in storage unit companies too; Extra Space Storage Inc. saw its stock rise 33 percent in the past year. The Salt Lake City-based company reports that 94.5 percent of its space was occupied at the end of the second quarter, up from 92.1 percent one year prior. Public Storage, which is the largest publicly-traded storage firm, reported a 7 percent increase in rental income year-over-year.

Seeing opportunity, some investment firms are rushing to complete new projects, although storage facilities tend to take years to build. For example, Carlyle Group LP is spending $80 million to build new facilities in Southern California, the Pacific Northwest, and elsewhere.

The industry’s stability may be thanks to the fact that storage space is in demand in good times and bad. Some in the industry use the 4Ds—death, divorce, downsizing and dislocation—as reasons consumers might utilize their services. Because these events aren’t necessarily tied to the economic cycle, the industry “isn’t recession-proof, but it is recession-resistant,” says Ryan Burke, an analyst at real-estate research firm Green Street Advisors.

Source: “Need to Store That? Booming Self-Storage Industry Says No Problem,” The Wall Street Journal (Oct. 13, 2015)

5 Common Buyer’s Remorse Culprits

5 Common Buyer’s Remorse Culprits. Image courtesy of cooldesign. / FreeDigitalPhotos.net

Some home buyers suffer from post-purchase regret. Realtor.com® recently spoke to real estate industry experts to find out what home features tend to spark the biggest regrets among buyers. Topping the list:

1. Buying too big of a home. Buyers may think at the time having a big home is what they want, but after moving in, they may later regret the expense and upkeep of maintaining a big home. Cooling and heating bills can be much higher and just cleaning the place can become a much bigger chore. Also if the room size is big, buyers may find their furniture a mismatch and too small. Urge buyers to bring a tape measure to verify their furniture would work in the space and also to consider the utility bills.

2. Awkward layouts. The kitchen island is often a desirable amenity among home buyers – it can add prep space, after all. But “kitchen islands can be a mistake if you don’t take your ‘work triangle’ into account,” Baumbusch says. She urges buyers to walk around the kitchen and consider their usual prepping and cooking patterns.

3. Not considering what’s missing. Architects and remodelers sometimes will remove something from a room to give it a more modern, cleaner feel. For example, “there is a trend to eliminate the bathtub in favor of just a shower,” Baumbusch says. “Some home owners regret that decision because sometimes they find themselves wishing for a nice long soak after a tough day.”

4. Pools. For some home buyers, the pool can become a selling-point that later turns into a source of regret. Pools can be costly and some buyers may fail to consider the all of the additional costs. For example, there’s regularly monthly maintenance and cleaning as well as pools in seasonal areas often are opened and closed by a professional. “It can cost upward of $600 just to open a pool and prepare it for swimmers,” Baumbusch says.

5. Falling for fads. “Today’s popular ice-white appliances, steel countertops, and Edison bulb light fixtures are yesterday’s saloon doors, linoleum, and brass hardware,” realtor.com® notes. “If you buy a house just for its trendy look, you may end up regretting it when the styles change, especially if you have to sell the outdated design.” Baumbusch recommends buyers look for timeless features – classic, well-designed homes.

Source: “Skip the Pain: 7 Things That Will Fill You With Buyer’s Remorse,” realtor.com® (Oct. 12, 2015)

Savings Have Dried Up for Most Americans

Savings Have Dried Up for Most Americans. Image courtesy of fantasista / FreeDigitalPhotos.net

Here’s why saving for a down payment on a home purchase is a growing challenge for many Americans: About 62 percent of Americans have less than $1,000 in their savings accounts, and 21 percent don’t even have a savings account, according to a new survey of more than 5,000 adults conducted by Google Consumer Survey for GOBankingRates.com.

“It’s worrisome that such a large percentage of Americans have so little set aside in a savings account,” says Cameron Huddleston, a personal financial analyst for GOBankingRates.com. “They likely don’t have cash reserves to cover an emergency and will have to rely on credit, friends and family, or even their retirement accounts to cover unexpected expenses.”

Echoing these findings, a similar survey by Bankrate.com earlier this year of 1,000 adults found that 62 percent of Americans have no emergency savings for things such as a $1,000 emergency room visit or a $500 car repair. If they needed money, the Americans surveyed say they would raise the money by reducing spending elsewhere (26%), borrowing from family and friends (16%), or using credit cards (12%).

Among those who did have savings prior to 2008, 57 percent said they used up some or all of their savings in the Great Recession, according to a U.S. Federal Reserve survey of more than 4,000 adults in 2014.

The age group with the least amount of savings? Generation X, who are ages 35 to 54. About 31 percent from this age group surveyed reported a savings account balance of zero – the highest number of any other age group, according to the GOBankingRates.com survey. In comparison, about 29 percent of millennials – aged 18 to 34 – and 28 percent of baby boomers –age 55 to 64 – say they have no money in their savings account.

For those who do have savings, the most common savings balance is $10,000 or more (14%), followed by 5 percent of adults who have saved between $5,000 and $10,000.

Source: “Most Americans Have Less Than $1,000 in Savings,” MarketWatch (Oct. 10, 2015)

When Not to Press ‘Send’ on That E-mail

When Not to Press ‘Send’ on That E-mail. Image courtesy of patrisyu / FreeDigitalPhotos.net

There’s a time to e-mail, and a time to call. Sometimes in the rush to be responsive you’ll instantly send an e-mail, but doing so may backfire.

When should you e-mail and when should you maybe wait to respond until you can call or even talk in-person? Forbes.com recently highlighted times when you absolutely should not send that e-mail. Some of their biggest e-mail no-no’s:

Sending a long response.

“If you could write what you’re thinking in one sentence and your e-mail is still three paragraphs long, you’re in trouble,” the article notes. For example, maybe you’re correcting a client’s confusion over a transaction. You may end up dedicating one section of your e-mail to how you understand why the person might be confused and then another section to what you think should be done, and a third section honing in on how your plan is really the better route to go. The longer the e-mail, though, the more lines the other person could potentially misread.

Instead, be succinct with your message. If you disagree with someone, just write “I’m not sure we’re on the same page” or “I had a different read on it” – is more efficient – and nicer than going on and on, the article notes.

Too much punctuation.

If your e-mail has too much emphasis, you may want to second-guess sending it. For example, if you’ve made every other word italicized, bold, or in all caps and punctuated everywhere – the other person will perceive you as being extreme. “If your sentiments aren’t positive, the other person could easily think you’re trying to convey anger – as opposed to say, simple confusion,” the article notes. Limit yourself to one punctuation mark and no italics.

Your response is confusing.

You’ve had a long, busy day and you keep re-reading the e-mail you’re crafting over and over again to make sure it makes sense. You may be better off waiting to press send until you’re more alert. If it’s absolutely urgent, send a response with a short message that promises to send more details later. That way you’ve confirmed you received the other person’s message and have let her know you’ll be in touch with more information soon. This provides you more time to compose your response and more time to focus on making it succinct.

Source: “4 Times You Should Absolutely Not Send That E-mail,” Forbes.com (Oct. 7, 2015)

‘Zombie’ Homes Spook Fewer Neighborhoods

‘Zombie’ Homes Spook Fewer Neighborhoods. Image courtesy of Simon Howden / FreeDigitalPhotos.net

Vacant foreclosures – known as “zombies” – plunged 43 percent in the third quarter compared to a year ago, according to RealtyTrac’s latest U.S. Zombie Foreclosure and Vacant Property Report. As of the end of the third quarter, about 20,050 residential properties were in the foreclosure process and vacant, but had not yet been repossessed by the foreclosing lender.

“The overall inventory of homes in the foreclosure process has dropped 36 percent over the past year so it’s not too surprising to see a similarly dramatic drop in vacant zombie foreclosures,” says Daren Blomquist, vice president at RealtyTrac. “What is surprising is there are so many vacant homes where the home owners do not appear to be in financial distress — with only 3 percent in foreclosure or bank owned, and only 6 percent that are underwater. More than 63 percent of these vacant homes are not even encumbered by a loan, owned free and clear by the owner. The fact that the home owners are not selling given the recovering real estate market in most areas indicates that many of these properties are in poor condition and in neighborhoods that have been left behind by the housing recovery.”

The following states are still haunted with the most vacant “zombie” foreclosures, according to RealtyTrac’s report:

• New Jersey: 3,997
• Florida: 3,512
• New York: 3,365
• Illinois: 1,187
• Ohio: 1,028

The following states have the highest share of vacant “zombie” foreclosures as a percentage of total vacant properties:

• New Jersey: 9.4%
• New York: 8.2%
• Nevada: 2.7%
• Massachusetts: 2.5%
• Illinois: 2.1%

On a metro level, the following areas had the highest share of vacant “zombie” foreclosures as percentage of all vacant properties:

• Rochester, N.Y.: 14.3%
• Trenton, N.J.: 10.5%
• New York: 10%
• Albany, N.Y.: 7.9%
• Allentown, Pa.: 5.2%

Source: RealtyTrac