Tag Archives: Chappaqua Real Estate for Sale

Millennials are buying homes | Chappaqua Real Estate

Low housing inventory continues to increase competition among homebuyers, but that isn’t deterring Millennials, according to the latest Ellie Mae Millennial Tracker report.

Even in some of the most expensive markets, purchase loans among Millennials continued to increase in April. Purchase loans increased to 89% of the market share in April, up from 88% the month before.

And as purchase loans increased, refinances continued to drop. Closed refinance loans fell to 10% of all loans, down from 11% the previous month.

Millennials even accounted for the majority of closed loans in several metropolitan statistical areas including Bardstown, Kentucky, where Millennials made up 73% of closed loans, Hobbs, New Mexico, with 71%, Dalton, Georgia, with 65%, Victoria, Texas, with 63% and Appleton, Wisconsin, with 63%.

Millennials tend to gravitate toward affordable housing markets in the Midwest and Southeast, however, they are also showing a strong presence in some expensive big cities. Over the past three years, the number of Millennials who closed loans increased in New York City, Chicago, Los Angeles and San Francisco.

“This new generation of homebuyers is making its presence felt across the country,” said Joe Tyrrell, Ellie Mae executive vice president of corporate strategy. “Since the beginning of 2016, the percentage of Millennials purchasing homes in the Bay Area has actually increased from 16% to 20%.”

The New York area saw an increase from 19% in 2015 to 24% in 2017. The growth is even higher in areas such as Chicago and Dallas, which increased from 22% to 31% and 21% to 31% for the same time period respectively.

“In this purchase centric market, we anticipate a continued rise in more creative lending products to help increase Millennials’ access to credit and continue to counter concerns that rising interest rates will stifle volume,” Tyrrell said.

 

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https://www.housingwire.com/articles/40374-millennials-undaunted-by-competitive-housing-market?eid=311691494&bid=1780366

NAR: Existing home sales will see best year since 2006 | Chappaqua Real Estate

Single-family existing home sales are set to see their best year since 2006, driven by robust job gains and improving household confidence, according to the forecast from the National Association of Realtors.

While existing home sales are increasing, low levels of supply and rising affordability concerns are creating headwinds for sales and threatening the low homeownership rate.

The first quarter came in with the best sales pace for existing homes in a decade; NAR Chief Economist Lawrence Yun expects that pace to continue, finishing off 2017 with 5.62 million sales, the best pace since 2006. This would represent an increase of 3.5% from 2016.

And home sales aren’t the only thing predicted to rise. NAR also forecasts an increase of 5% in existing home prices in 2017.

However, starter home shortage continue to plague the housing market and discourage would-be first time homebuyers.

“We have been under the 50-year average of single-family housing starts for 10 years now,” Yun said. “Limited lots, labor shortages, tight construction lending and higher lumber costs are impeding the building industry’s ability to produce more single-family homes.”

“There’s little doubt first-time buyer participation would improve and the homeownership rate would rise if there was simply more inventory,” he said.

Yun predicted new home starts will rise 8.4% to 1.27 million in 2017. While an increase from the current pace, this is still 1.5 million homes below the amount needed to make up for insufficient building in recent years. New home sales are also expected to rise 8.4% from last year to 620,000 sales.

Jonathan Spader, Joint Center for Housing Studies senior research associate at Harvard University, joined Yun at the 2017 Realtors Legislative Meetings and Trade Expo to discuss the 2017 forecast. He explained the homeownership rate will hover between 61% and 65.1% as it faces headwinds such as an aging population, changes in family type and increasing diversity by race and ethnicity.

“Stagnant household incomes, rising rental costs, student loan debt and limited supply have all contributed to slower purchasing activity,” Spader said. “When the homeownership rate stabilizes, there will be an increase in homeowner households. Young and minority households’ ability to reach the market will play a big role in how much the actual rate can rise in coming years.”

But while home sales continue to rise to decade highs, economic growth is at its slowest since World War II. Mark Calabria, chief economist and assistant to Vice President Mike Pence, explained at the conference the housing market cannot be strong without a solid economic foundation.

“A strong labor market will drive a strong housing market, but you can’t have a strong housing market without a strong economic foundation,” Calabria said. “The recovery has been uneven with roughly 70 counties making up roughly half of all job growth.”

And while the first quarter gross domestic product did come in at a disappointing 0.7% growth, the second quarter will see an increase to about 2.2%, Yun said.

Yun predicts two more rate hikes this year to bring mortgage rates to an average 4.3% by the end of 2017, and climbing towards 5% in 2018.

“There was a lot of uncertainty at the start of the year, but a very strong first quarter sets the stage for a modest sales increase compared to last year,” Yun said. “However, prices are still rising too fast in many areas and are outpacing incomes.”

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http://www.housingwire.com/articles/40160-nar-existing-home-sales-will-see-best-year-since-2006?eid=311691494&bid=1759920

Top empty nester cities | Chappaqua Real Estate

Zillow, an online marketplace, conducted a study to show the top 10 housing markets for empty nesters in the U.S.

As it turns out, the pricey markets and places with weak labor markets have the highest concentrations of empty nests, the report, which is based on the most recent U.S. Census Bureau data from 2015, shows.

And the lowest densities of empty nesters are found in booming cities with strong job markets, retirement communities and new family-oriented areas.

In other words, this study by Ellie Mae which shows where Millennials flock will be the last places you might find empty nesters. And you can count metros in Florida and California off the list as well.

Empty nests are homes where the heads of the household are 55 years or older, own the home and have lived in it 10 or more years; there are no children of any age living in the home. These homes are gaining ground as the Baby Boomers age, rising to 15.5% of all households in 2015.

Here are the top 10 metros with the highest percentage of empty nesters:

10. Baltimore, Maryland – 17%

Baltimore city

9. Louisville, Kentucky – 17.2%

8. Virginia Beach, Virginia – 17.4%

7. Detroit, Michigan – 17.9%

skyline

6. Philadelphia, Pennsylvania – 18.2%

5. Birmingham, Alabama – 18.3%

Alabama

4. Richmond, Virginia – 18.6%

3. Cleveland, Ohio – 19.4%

Ohio

2. Buffalo, New York – 20.1%

1. Pittsburgh, Pennsylvania – 20.2%

skyline

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http://www.housingwire.com/articles/40071-here-are-the-top-10-metros-for-empty-nesters?eid=311691494&bid=1748890

Age of Housing Stock by State | Chappaqua Real Estate

According to the latest data from the 2015 American Community Survey (ACS), the median age of owner-occupied homes is 37 years. The age of housing stock is not evenly distributed across the United States. Among the states, New York has the oldest homes with a median age of 57 years old, followed by Massachusetts at 53 years. The median age of homes in the District of Columbia, which is entirely urban, is 75 years. The newest homes are in the West. The median age of homes in Nevada is only 20 years, followed by Arizona where half of all owner-occupied homes were built in the last 24 years ago.

The geographic distribution of the age of the owner-occupied housing stock is strongly correlated with population changes from 2000 to 2015. The population changes, including both natural growth and net migration, signal the rising demand for housing. States with faster population growth tend to have newer housing stock.

The age of the housing stock is an important remodeling market indicator. Older houses are less energy-efficient than new construction and ultimately will require remodeling and renovation in the future.

 

 

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http://eyeonhousing.org/2017/01/age-of-housing-stock-by-state/

Facebook CEO smart house | Chappaqua Real Estate

Facebook CEO Mark Zuckerberg gave users a unique look into his home, as part of an explanation of his custom-made artificially intelligent assistant.

Building on Facebook’s internal technology for Messenger app building, Zuckerberg made an iPhone app, Jarvis, to connect the smart devices and phones around his home, similar to Amazon’s Echo. In explaining his progress in the app, Zuckerberg somewhat jokingly revealed some of the quirks of his lifestyle with his wife, Priscilla Chan.

For instance, Jarvis wakes Zuckerberg’s daughter, Max, up to a Mandarin lesson, thanks to Facebook’s visual face detection which determines when the infant is awake. This same technology helps Zuckerberg recognize who’s ringing his doorbell, he said.

We also know Zuckerberg has a pretty extensive set of Spotify playlists and someone in the family may be an Adele fan.

Zuckerberg also showed an interface to request a clean gray T-shirt — his signature look — from what he called a rigged-up ” T-shirt cannon.” He has also ginned up a special 1950’s-era toaster “that will let you push the bread down while it’s powered off so you can automatically start toasting when the power goes on.”

Creating the assistant was one of Zuckerberg’s yearly resolutions, which have also included running a mile a day, reading a new book every other week and learning Chinese.

This year’s challenge was aimed to help him learn how powerful AI can be with 100 hours of work, he wrote. For instance, Zuckerberg said that he realized texting Jarvis — especially if he was away from his home or in the middle of a task — was often more valuable than voice commands alone. That, Zuckerberg said, falls in line with trends he’s seen on Messenger and WhatsApp, where texting is growing more quickly than voice calls.

However, Zuckerberg said, with the voice bot, he learned to consider it a presence that responded more quickly and empathetically.

“It can interact with Max and I want those interactions to be entertaining for her, but part of it is that it now feels like it’s present with us,” Zuckerberg wrote. “I’ve taught it fun little games like Priscilla or I can ask it who we should tickle and it will randomly tell our family to all go tickle one of us, Max or Beast. I’ve also had fun adding classic lines like ‘I’m sorry, Priscilla. I’m afraid I can’t do that.'”

Zuckerberg said he found little bugs that showed how far AI systems are from being generalized for a wide variety of requests.

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http://www.cnbc.com/2016/12/19/how-the-other-half-lives-mark-zuckerbergs-life-inside-his-bespoke-smart-house.html?__source=newsletter%7Ceveningbrief

Housing starts down in November, permits up | Chappaqua Real Estate

Single-family housing starts dipped to a seasonally adjusted annual rate of 828,000 in November, according to new residential construction data released by the Commerce Department Friday morning. This month’s result marks a -4.1% decrease from October’s downwardly revised rate of 869,000 and represents a 5.3% gain compared to November 2015, when the estimate was 786,000.


The Midwest was the only region to experience a month-over-month increase in 1-unit housing starts, rising 19.8% from October levels to a rate of 145,000. All other regions decreased from October levels, most significantly the West, where single-family starts dropped -15.3% to a still-healthy rate of 183,000. On a year-over-year basis, the Midwest and South reported gains in the single-family category. Gains were most significant in the Midwest, where this month’s levels surpassed October 2015 levels by 33.0%

Total housing permits, the leading indicator for future starts, fell -4.7% in November, primarily due to a big dip in the multifamily sector, especially permits for 5-unit or more structures, which fell -15.8% month-over-month. Single-family permits rose 0.5%, indicating that next month’s report could be mediocre. Permits issued for 1-unit structures increased 7.0% in the Midwest, and 2.7% in the West, while the Northeast and South experienced single-digit losses month-over-month.

Total privately-owned housing completions increased 15.4% in November to a seasonally adjusted annual rate of 1,216,000. Completions of both single-family and multi-family housing increased in November following October’s strong report, by 3.3% and 44.5%, respectively.

 

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http://www.builderonline.com/money/economics/starts-down-in-november-permits-up_o?utm_source=newsletter&utm_content=Brief&utm_medium=email&utm_campaign=BP_121616%20(1)&he=bd1fdc24fd8e2adb3989dffba484790dcdb46483

High-end house flipping | Chappaqua Real Estate

Last June, Dana Rice, a real estate agent and house flipper, was deep in the throes of a massive remodeling project.

She had bought a 1938 home in an upscale neighborhood of Bethesda, Maryland, for $600,000 and intended to flip it for a hefty profit. Four months and $400,000 in construction costs later, Rice put the home on the market last weekend for $1,469,000. A million dollars of her money is at stake.

“Getting into the project is a risk because of the amount of money that you’re putting in, but overall at the end of the day, the ratio is the same,” Rice said as she put out candles and fliers for the first open house.

Rice added significant square footage, along with high-end finishes throughout. The so-called industrial cottage-style home is now 2,650 square feet with five bedrooms and three bathrooms. There is a small back patio, but the yard was sacrificed to make the home larger.

Rice says it is the opposite of the McMansion trend — not a tiny home for sure, but a ‘not-so-big’ home with top-of-the-line appliances, lighting, flooring, fixtures and systems.

“There is always a market for high-end because you’re differentiating your product from, let’s say, the masses,” said Rice. “In this particular area, for this particular house, I’m very confident because I feel as though the product we delivered — we really sweated the details on it, and I’m already getting great response from people who are looking at fixtures, textures colors, and it’s not what they see in the general renovation flip.”

Not only is house flipping on the rise in today’s increasingly competitive market, but average gross profits are now the highest since 2000, or since ATTOM Data Solutions, a real estate sales and analytics firm, began tracking flips.

House flippers in the second quarter of this year saw an average gross profit of $62,000, up from $57,900 in the second quarter of 2015. That gross profit represented an average 48.8 percent return on the original purchase price, up from a 47.5 percent a year ago.

“Home flipping is becoming more accessible for smaller operators thanks to an increasingly competitive lending environment with more loan options for real estate investors, who are also benefiting from the historically low mortgage interest rates,” said Daren Blomquist, senior vice president at ATTOM Data Solutions. “That favorable lending environment for flippers has helped to fuel the recent flipping frenzy we’ve seen over the past five quarters.”

A total of 51,434 sales of single family homes and condos were completed flips in the second quarter, up 14 percent from the previous quarter and up 3 percent from a year ago to the highest level in six years. [ATTOM defines a flip as a property sold in an arms-length sale for the second time within a 12-month period based on publicly recorded sales deed data.]

“It’s so fast and it’s so hot, you really have to be careful about who’s doing the work, because you’re going to pay that premium just to get that flip, but you need to look behind the curtain to see how they did it,” Rice cautioned.

Close to 40,000 investors, both individuals and institutions, completed at least one home flip in the second quarter of this year, the highest number in nine years. Home flipping peaked about 10 years ago, during the height of the housing boom, when mortgages were easier to pick up than a quart of milk. That is not the case today.

“While an increasing number of flippers are financing their purchases, more than two-thirds are still using cash to purchase compared to about one-third using cash to purchase back in 2006,” said Blomquist.

With so many new flippers in the market, the concern is in the craft. Rice actually spent more than a year remodeling her house, her fourth flip. That is longer than usual, but at her price, the house had to match the high-end market.

“The market is pretty strong for fixtures, finishes — everybody watches the TV shows. They have an expectation, and we want to meet it,” said Rice.

There were also a few bumps along the way.

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http://finance.yahoo.com/news/1-million-bet-anatomy-high-123425218.html

NAR says home sales to continue to increase next year | Chappaqua Real Estate

Predictions from the National Association of Realtors, the Mortgage Bankers Association,Fannie Mae and Freddie Mac show that home sales are going to heat up in 2017, according to a blog by NAR.

NAR predicted existing home sales will reach 6 million in 2017, an increase from this year’s forecast of 5.8 million, according to the blog. MBA predicted home sales will reach 5.75 million and Fannie and Freddie forecast home sales will come in at 6.2 million.

From the blog:

A huge wave of Generation Yers, who have delayed home buying, are emerging into their key buying years. They are predicted to keep home sales and condo sales strong well into 2020, according to economists.

Meanwhile, new-home construction starts likely will tick up to about 1.5 million per year to 2024, predicts Forisk Research.

Home builders likely will continue to be more subdued, despite calls for more inventory.

As for the rest of this year, the summer housing market saw high demand next to rising home prices, but don’t expect Fall to bring any relief. In fact, it could bring the hottest fallin a decade, new data from realtor.com shows.

 

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http://www.housingwire.com/articles/38205-nar-forecasts-heated-housing-market-in-2017?eid=311691494&bid=1549805

Low Mortgage Rates Sustain Improving Housing Markets | Chappaqua Real Estate

Freddie Mac released its Multi-Indicator Market Index® (MiMi®), showing two additional metro areas — Indianapolis, Indiana, and Columbus, Ohio — entering their historic benchmark levels of housing activity.

The national MiMi value stands at 85.1, largely unchanged from last month, indicating a housing market that’s on the outer range of its historic benchmark level of housing activity with a +0.14 percent improvement from June to July and a three-month improvement of +1.24 percent. On a year-over-year basis, the national MiMi value improved +4.70 percent. Since its all-time low in October 2010, the national MiMi has rebounded 43 percent, but remains significantly off its high of 121.7.

News Facts:

  • Thirty-eight of the 50 states plus the District of Columbia have MiMi values within range of their benchmark averages, with Utah (97.5), Hawaii (96.6), Montana (96.5), Colorado (96) and Oregon (95.8) ranking in the top five with scores closest to their historical benchmark index levels of 100.
  • Seventy-nine of the 100 metro areas have MiMi values within range, with Los Angeles, CA (99.5), Salt Lake City, UT (100.6), Provo, UT (98.9), Honolulu, HI (98.7) and Nashville, TN (101.6) ranking in the top five with scores closest to their historical benchmark index levels of 100.
  • The most improving states month over month were Illinois (+1.72%), Nevada (+1.36%), Florida (+1.20%), Alabama (+1.14%) and South Carolina (+1.00%). On a year-over-year basis, the most improving states were Florida (+10.03%), Oregon (+9.49%), Colorado (+9.09%), New Jersey (+8.64%) and Tennessee (+8.54%).
  • The most improving metro areas month over month were Lakeland, FL (+2.13%), Youngstown, OH (+1.92%), Chicago, IL (+1.73%), Orlando, FL (+1.63%) and Las Vegas, NV (+1.61%). On a year-over-year basis, the most improving metro areas were Orlando, FL (+16.20%), Tampa, FL (+13.03%), Lakeland, FL (+13.02%), Chattanooga, TN (+12.89%) and Palm Bay, FL (+12.47).
  • In July, 32 of the 50 states and 75 of the top 100 metros were showing an improving three-month trend. The same time last year, all 50 states and the top 100 metro areas were showing an improving three-month trend.

Quote attributable to Freddie Mac Deputy Chief Economist Len Kiefer:

“Nationally, MiMi in July was largely unchanged for the third consecutive month at 85.1, yet marking a 4.7 percent year-over-year increase. Despite rising house prices, the majority of housing markets have sustained their momentum due in large part to low mortgage rates. For example, purchase applications, as measured by MiMi, were up more than 17 percent year over year in July and remaining at their highest level since December 2007.”

The 2016 MiMi release calendar is available online.

MiMi monitors and measures the stability of the nation’s housing market, as well as the housing markets of all 50 states, the District of Columbia, and the top 100 metro markets. MiMi combines proprietary Freddie Mac data with current local market data to assess where each single-family housing market is relative to its own long-term stable range by looking at home purchase applications, payment-to-income ratios (changes in home purchasing power based on house prices, mortgage rates and household income), proportion of on-time mortgage payments in each market, and the local employment picture. The four indicators are combined to create a composite MiMi value for each market. Monthly, MiMi uses this data to show, at a glance, where each market stands relative to its own stable range of housing activity. MiMi also indicates how each market is trending, whether it is moving closer to, or further away from, its stable range. A market can fall outside its stable range by being too weak to generate enough demand for a well-balanced housing market or by overheating to an unsustainable level of activity.

Builder Confidence Surges in September | Chappaqua Real Estate

Builder confidence in the market for newly built, single-family homes in September jumped six points to 65 from a downwardly revised August reading of 59 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). This marks the highest HMI level since October 2015.

With the inventory of new and existing homes remaining tight, builders are confident of positive market conditions for new construction. Solid job creation and low interest rates are also fueling demand, while builders continue to be hampered by supply-side constraints that include shortages of labor and building lots.

hmi-sept

As household incomes rise, builders in many markets across the nation are reporting they are seeing more serious buyers, a positive sign that the housing market continues to move forward. The single-family market continues to make gradual gains and we expect this upward momentum will build throughout the remainder of the year and into 2017.

Derived from a monthly survey that NAHB has been conducting for 30 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

 

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http://eyeonhousing.org/2016/09/builder-confidence-surges-in-september/