Oct 4, 2019 | Real Estate
If climate change is foremost in your mind, you may be interested in reducing your new home’s carbon footprint. Choosing green materials is one way to promote sustainability and ensure you’re doing your part to help the planet.
Green Flooring
Flooring takes up all the square feet throughout your home. If you can opt for green flooring that will do a lot to reduce your new home’s carbon footprint. Bamboo is a sustainable flooring option to consider. Bamboo grows at a rate that far outpaces any hardwood. For that reason, it’s become a popular choice for homeowners looking for green material options. Bamboo flooring now comes in a wide variety of colors, textures and styles. You’re sure to find something that matches with your style and décor.
Green Insulation
It’s now easier than ever to find green insulation options at just about any hardware stores. Green insulation is frequently made up of recycled fabric. The benefit above being sustainable is that there is no fiberglass to worry about getting into your skin or lungs. Green insulation is available in the same forms as some other kinds of insulation, including as a rolled up “blanket” that can be trimmed to match your insulation spaces.
Green Countertops
Countertops are often made of stone and granite, which may be considered green materials. However, the processing of such materials and the energy needed to transport them from the source to your home may not be so green. Consider investing in concrete countertops for your kitchen and bathroom. Concrete is a renewable and sustainable green material. Concrete countertops can be created in the same general location as your new home. They are mold and pest-resistant, fire resistant and offer a permanent countertop solution for those who are eco-conscious.
Green Roofing
Green roofing is harder to find, but in most areas, eco-conscious homeowners still have plenty of options. One such option is to have a copper or metal roof. While copper and other metals do require a labor-intensive process to extract from the earth, they last far longer than traditional roofing materials. Your copper or metal roof could last for a lifetime or more, whereas traditional roofs typically only last a maximum of 20 years.
These green material ideas for your new home will ensure that your home is leaving as small a carbon footprint as possible. For more green material ideas, contact your local contractor.
If you are in the market for a new home or interested in listing your current property, be sure to contact your trusted real estate professional.
Oct 3, 2019 | Real Estate
Many people are looking to buy homes, not across the street, not somewhere else in town, but in other parts of the country. The motivator for this is that there are significant differences in the median prices for home sales in different parts of America. This is not a result of the places being undesirable.
Many of the places with excellent values in home prices are very desirable. In these nice cities, the lower prices are more about the local economy, the cost of living, and the availability of homes for sale.
Popular Cities For Relocation
A study done by REALTOR® identified the most popular cities that people search for when looking for a new home in another area that is different from where they currently live.
The median home price in America is $226,800.
Areavibes ranks American cities based on a livability score that considers many factors, which include the cost of living, crime, school, employment, and amenities. The livability score is a scale that goes up to 100.
Here are the top choices in the order of their popularity for searches and median home prices along with their livability score:
- Charleston, South Carolina – Median home price is $269,400. Livability score is 77.
- Boise, Idaho – Median home price is $191,000. Livability score is 80.
- Honolulu, Hawaii – Median home price is $601,500. Livability score is 73.
- Columbia, South Carolina – Median home price is $164,200. Livability score is 63.
- Fort Myers, Florida – Median home price is $160,800. Livability score is 70.
- Portland, Maine – Median home price is $248,000. Livability score is 66.
- Sarasota, Florida – Median home price is $109,500. Livability score is 74.
- Greenville, South Carolina – Median home price is $237,800. Livability score is 73.
- Tucson, Arizona – Median home price is $135,200. Livability score is 65.
- Las Vegas, Nevada – Median home price is $184,900. Livability score is 71.
Cost Of Living
The cost of living is a big factor that impacts the quality of life for the average person. The cost of living includes the cost of housing, groceries, transportation, health care, utilities, and other goods and services. The national standard for America’s cost of living is set at 100.
The cost of living index in each city is a number that is higher or lower than 100. Higher figures than 100 represent a percentage higher than the national average. Lower numbers than 100 are cities that cost less than other cities in America.
Here is the cost of living index for these popular cities:
- Charleston, South Carolina – 115
- Boise, Idaho – 96
- Honolulu, Hawaii – 182
- Columbia, South Carolina – 101
- Fort Myers, Florida – 94
- Portland, Maine – 114
- Sarasota, Florida – 108
- Greenville, South Carolina – 106
- Tucson, Arizona – 92
- Las Vegas, Nevada – 100
Conclusion
The lowest median price for a home is found in Sarasota, Florida. The city with the highest livability score is Boise, Idaho. The lowest cost of living is in Tucson, Arizona. These are all great cities to live in. For those who have the option to relocate, to get a better price when buying a home, they should all be considered as decent choices.
If you are in the market for a new home or interested in listing your current property, be sure to contact your trusted real estate professional.
Oct 2, 2019 | Mortgage
Opportunity Zones were created by the 2017 Tax Cuts and Jobs Act to encourage investors with capital gains on other investments to invest that money in low-income and undercapitalized communities. They get a reward of deferring capital gains tax. They avoid a portion of it altogether if they keep the investment for five years or longer.
What started with a trickle of a few Opportunity Zones scattered around the country is now a deluge with over 3,000 approved Opportunity Zones approved in just about every part of America. 4,700 more areas may also qualify.
Opportunity Zones Expanded Dramatically
The very generous definition of Opportunity Zones not only includes poorer areas but it also includes wealthy areas within larger poor areas. Some are wealthier areas adjacent to poor areas. For example, there are Opportunity Zones in Manhattan, which is an area not typically thought of as low-income or undercapitalized.
Opportunities In Opportunity Zones
The tax incentives along with the current easy financing from real estate lenders are stimulating development projects in Opportunity Zones. Investors may increase returns on real-estate investments by up to 50% for projects in these areas.
The highest returns, based on the tax savings, are for those that invest before the end of 2019 and hold the investment for seven years until 2026. They get a capital gains step-up of 15%. After that, the tax benefits go down to a capital gains step-up of 10%.
Homes In Opportunity Zones
Another attractive characteristic is that the price of single-family homes in many Opportunity Zones is a bargain. The median price of homes in almost half of the Opportunity Zones is less than $150,000. This compares favorably to the national median home price of $266,000.
Moreover, homes in many Opportunity Zones are less than half the price of an adjacent area. The median rents in the Opportunity Zones are not as depressed as the home prices.
For real estate investors looking for cash-flow positive rental properties to acquire for a portfolio, these homes may rent for enough to pay the carrying costs.
For home buyers, these bargain prices may mean it pays to buy a home on the edge of an Opportunity Zone. If the home is adjacent to a nicer neighborhood, the upside potential for appreciation in home value may be enhanced.
Opportunities for low-cost homes exist in the Midwest, which has 73% of its Opportunity Zones with homes that cost below $150,000. The portion in the South is 57% and in the North East, it is 53%. Florida has over 300 Opportunity Zones. Pennsylvania has over 150. Tennessee has about 140. Those are states worth considering.
Summary
Looking for home-buying opportunities in newly-designated Opportunity Zones is attractive for real estate investors building up a portfolio of rental properties and for homebuyers who are looking for a bargained-price home.
If you are in the market for a new home or investment opportunity, be sure to consult with your trusted real estate professional.
Oct 1, 2019 | Real Estate
Telecommuting has significantly changed the housing market. More people than ever before are working from home. Younger people are especially likely to do this and become part of what is called the “gig” economy. Many are working as freelancers or starting online businesses.
Advantages Of Working From Home
There are many advantages to working at home. It is less stressful. There is no commute. This saves money and is better for the environment. There may be lower income taxes because currently, the IRS allows a tax deduction of the expense of a home office.
Homeworkers find clients online. They also can work from anywhere that has an Internet connection. There may be an opportunity to have a working vacation and keep their online presence going. They can maintain business efforts, perhaps at a reduced level, when also taking some time to enjoy themselves.
Staging A Home With An Office
Staging a home for sale is a useful technique used by real estate agents and homeowners. Staging beautifies the home to make it ready for viewing. This may improve the sale price when selling a home.
Staging may also help sell the home quickly by making it attractive to more potential buyers. Staging includes cleaning the home to make it spotless and strategically decorating the rooms to make them look nice.
One way to increase the attractiveness of a home is to have a room that is set up as a home office. If possible, choose a room with a view. It should be bright and comfortable, to entice buyers who want to work from home.
Buying A Home With An Office
When looking at homes for sale consider buying one that has an extra room or space that can easily convert to a home office. Think about the home design if you will live and work there. The office room needs to be in a quiet part of the home that creates a working environment where there are fewer chances for disturbances.
It is important to be serious when working at home. It is best to have a routine that encourages proper work habits in the home office space. Also, be able to leave the home office at the end of the workday. Avoid the temptation to overwork and set time limits for working hours.
If you plan to have business guests or clients come to your home, you may need to get commercial insurance. Talk this over with your insurance agent.
Summary
A home with an office is highly desirable. Consider retrofitting your home with an office when staging it for sale. For buyers, think about the possibilities of having a room for a home office when viewing homes for sale.
If you are in the market for a new home or interested in listing your current property, be sure to contact your trusted real estate professional.
Sep 30, 2019 | Financial Reports
Last week’s economic reports included readings from Case-Shiller on home prices along with data on new and pending home sales. Weekly readings on mortgage rates and initial jobless claims were also released.
Case-Shiller: Home Price Gains Slow to Lowest Pace in 7 Years
Case-Shiller Home Price Indices reported slower home price growth in July with 3.20 percent growth year-over-year. There was no change in July’s reading for the 20-City Home Price Index as compared to June after seasonal adjustments.
The top-three cities in Case-Shiller’s 20-City Home Price Index were Phoenix, Arizona with 5.80 percent home price growth year-over-year. Las Vegas, Nevada reported 4.70 percent growth and Charlotte, North Carolina home prices rose by 4.60 percent.
West coast cities that dominated home price growth in recent years have given way to more affordable markets. Seattle, Washington reported a negative reading of -0.60 percent year-over-year. Low mortgage rates have compelled buyers to enter the market; this could drive up demand again and boost home prices at a higher pace than they are rising now.
New and Pending Home Sales Increase in August
New home sales rose to 713,000 year-over-year in August as compared to July’s reading of 686.000 sales and expectations of 660,000 new homes sold in August. Pending sales rose 1.60 percent in August after posting a negative reading of -2.50 percent in July.
Pending sales are transactions with signed purchase contracts, but that have not closed. Home sales typically taper off in fall after the peak selling season in spring and summer; rising sales during fall suggest stronger housing markets.
Mortgage Rates Fall, New Jobless Claims Rise
Freddie Mac reported lower mortgage rates last week; rates for 30-year fixed rate mortgages averaged 3.64 percent and were nine basis points lower than in the prior week. The average rate for 15-year fixed rate mortgages was five basis points lower at 3.16 percent and rates for 5/1 adjustable rate mortgages fell 11 basis points to an average of 3.38 percent. Discount points averaged 0.50 percent for fixed rate mortgages and 0.40 percent for 5/1 adjustable rate mortgages.
First-time jobless claims rose to 213,000 claims filed from 210,000 new claims filed the prior week. Analysts said the GM auto worker strike caused the increase in new claims.
What’s Ahead
This week’s scheduled economic news includes readings on construction spending and labor sector reports on public and private sector jobs and the national unemployment rate. Weekly readings on mortgage rates and new jobless claims will also be released.
