carmichael dream homes Archives - Carmichael CA Realtor| Davis CA Realtor| Craig Diez

Investors Are Buying More of the U.S. Housing Market Than Ever Before

July 7, 2019 by cdiez Leave a Comment

Laura Kusisto writing for the Wall Street Journal gives us a housing investor update. It seems that there is always a way to capitalize on real estate.

The share of investor purchases of U.S. homes have climbed to an all-time high, a sign that rising home prices have done little to dampen demand for flipping homes or turning them into single-family rentals.

Big private-equity firms, real-estate speculators and others that buy properties comprised more than 11% of U.S. home purchasers in 2018, according to data released on Thursday by CoreLogic Inc.

The investor purchases are the highest on record and nearly twice the levels before the 2008 housing crash. The investor interest poses a challenge for millennials and other first-time buyers who are increasingly looking to buy starter homes and are forced to compete with deep-pocketed cash buyers.

Big commercial property owners like Blackstone Group LP and Starwood Capital Group began buying thousands of homes out of foreclosure during the housing bust. Many economists credit investors with helping to stabilize the housing market in 2011 and 2012 by buying with cash when prices were low and mortgage credit froze.

But analysts expected those purchases to slow, as the market rebounded and properties could no longer be had for fire-sale prices.

Instead, demand for properties has intensified. While these purchases dipped slightly when the market started to recover in 2015 and 2016, they have rebounded to surpass the previous peak of six years ago.

Strong rental demand, technology that facilitates buying homes online and low interest rates that make other investments less appealing have fueled investor appetite.

Investors are an especially powerful force at the bottom of the market, where they often pay all cash. Investors purchased one in five homes in the bottom third price range in 2018, according to the CoreLogic analysis, up 5 percentage points from the 20-year average of less than 15%.

“These are the homes that first-time home buyers would logically be buying,” said Ralph McLaughlin, deputy chief economist at CoreLogic.

Shane Parker, a real-estate agent in metropolitan Detroit, said first-time buyers he works with are struggling to win bidding wars against out-of-state buyers. The locals he works with are becoming more aggressive, putting in escalation clauses and agreeing to pay the difference if properties don’t appraise.

One of his clients, Michael Burnett, a tech writer in Detroit, and his wife are looking for their first home so they can have a treehouse for their young girls. They have visited 25 properties and bid on half a dozen but keep losing out to cash buyers.

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See How 1 Kitchen Style Works With 5 Types of Wood

June 5, 2019 by cdiez Leave a Comment

Barbara Milner, a Houzz contributor, shows us just how good a kitchen can look.

If you’re considering the contemporary style for your kitchen, one challenge you may face is how to make it cozy. Choosing wood cabinets is one wonderful way to add warmth.

These five kitchens are contemporary, a design style characterized by clean lines, a lack of adornment and, often, a neutral color scheme. It’s the second most popular style for remodeled kitchens, according to Houzz research. Each kitchen shows a different type of wood cabinetry. Which material would you choose for your kitchen?

1. Flat-Cut Red Oak on Island and Upper Wall Cabinets

Red oak is a popular hardwood in North America and a dominant species in U.S. forests. It has a distinctive grain and gets its name from the tree’s leaf color in the fall (which explains why, despite the name, this wood is not always red in color). It’s considered a timeless classic and used in furniture, flooring, cabinetry and architectural millwork.

“Flat cut” refers to the way the wood in this kitchen was cut. This method creates a cathedral pattern, sometimes called peaks, on the face of the board.

How it’s used. Designer Lisa Lev used flat-cut red oak on the kitchen island, upper wall cabinets and tall pantry cabinet. The gables — or sides of the cabinets — are also red oak and nicely frame the white cabinets. The island’s matching red oak toe kick creates a floating effect and a soft transition to the engineered hickory flooring. Lev’s clients did not want island stools, so she created built-in shelving for kids’ books instead.

Supporting elements. Lev used white to balance the striking red oak with engineered quartz countertops (Organic White by Caesarstone). They have a clean, modern aesthetic that doesn’t compete with the wood.

Flat-front white cabinets and a classic white hexagon tile backsplash keep the spotlight on the wood’s grain pattern. A slim three-quarter-inch countertop profile helps keep costs down, while simple stainless steel cabinet pulls quietly support the design. Vintage teak chairs (see the previous photo) add more wood warmth, while yellow pendant lights introduce a cheery note.

Why it works. The red oak’s beautiful flat-cut grain brings an abundance of natural texture to this contemporary space, creating an atmosphere that’s at once modern and organic.

Durability. Red oak is strong and resilient. Its rating on the Janka scale — a measure of wood’s hardness — is 1,290, which is considered medium. Red oak is a readily available species and the benchmark against which all other wood species are compared.

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2019’s Housing Market Is Likely to Be Stronger Than We Thought

May 10, 2019 by cdiez Leave a Comment

Clare Trepasso writing for Realtor.com has insight on what will be a great housing market for the rest of 2019.

Despite a real estate slowdown gripping the nation, this year’s housing market is expected to be busier than realtor.com® economists originally predicted late last year. That means more home sales—and higher prices—are on the way.

The anticipated uptick in activity is due to lower mortgage rates, which make homes more affordable for buyers. The economic team expected rates to climb to 5.5% in 2019, but instead, they have hovered around 4%. (They were 4.17% on 30-year, fixed-rate mortgages as of April 18, according to Freddie Mac data.) Economists say rates are now likely to rise a little to 4.5%, still well below what buyers were dreading.

However, it’ll be nothing like the feeding frenzy of recent years.

“It’s still going to be a lukewarm year for the housing market,” says Chief Economist Danielle Hale of realtor.com. “We’re going to see higher prices and slightly higher home sales than we expected. But home sales are still going to decline slightly as a result of the housing slowdown. There’s a gap between what sellers are looking for and buyers are hoping to pay.”

The downside for buyers—and upside for sellers—is that prices are expected to rise more than Hale’s team originally forecast, going up 2.9% in 2019 instead of 2.2%. That’s because the swelling ranks of buyers motivated by those lower mortgage rates will increase demand—and therefore prices.

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The Property Brothers Reveal One Question Home Buyers Rarely Ask, but Should

April 27, 2019 by cdiez Leave a Comment

Lisa Johnson Mandell writing for Realtor.com gets some good home advice from the property brothers.

“Property Brothers” stars Jonathan and Drew Scott have met a lot of interesting clients, but a hunky firefighter who starred as Mr. February on a “Red Hot Firefighters” calendar? That may be a first!

“It was for charity,” Matt says with a laugh in the episode titled “Growing Boys, Grander House.”

Matt and his wife, Nicole, have three young boys—two of whom are twins—and suddenly the 1,200-square-foot starter home in Canada they bought six years ago feels more than a little cramped. Especially since it has three bedrooms and only one small bathroom.

Jonathan thinks he can rip the dated ’50s home apart and build it back up again for $70,000. If he can swing it, Drew estimates that their home can be sold for close to $800,000, rather than about $650,000 as is.

Meanwhile, the burning question for Drew is whether or not he can find them a new home with more bathrooms in a neighborhood that’s not too far from friends and family, on their budget of $925,000. It seems like a big ask, but if the Scott twins couldn’t stand the heat, they wouldn’t be in the kitchen.

Along the way, they come up with some smart advice for the buyer and seller in all of us. Take a look!

Give your kitchen island or peninsula an overhang for seating

When Jonathan and Drew walk into the family’s kitchen, they find a peninsula. But there isn’t really room to pull up a chair, because of the shelves below. Drew immediately resolves the situation by kicking out the shelves—now there’s plenty of space for his knees.

Color the kitchen

“I don’t want to do just a white kitchen,” Jonathan tells Nicole as he officially starts the renovation. “Now we’re seeing a lot more color trending.”

He advises using soft, subtle green undertones. But Nicole is not good with that—she prefers all white and neutral.

“Trust me,” he says. “We’re seeing greens and blues—that’s what’s trending.”

He promises her he’ll come up with something buyers will love, and he does—deeply dark blue lower cabinets with white, marbled quartz countertops. It is divine!

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Save Money on Spring Cleaning This Year

April 17, 2019 by cdiez Leave a Comment

Jaymi Naciri writing for Realty Times passes on some tips to help reduce the cost of spring cleaning.

It’s spring cleaning time, but this year you don’t have to stock up on all those expensive potions and cleaners. The stuff you already have in your house might be even better at getting—and keeping—it clean.

Here are a few of our double-duty (or triple or more!) products:

Mr. Clean Magic Erasers

Dirty baseboards. Scuff marks on sneakers. Crayon or pen on painted walls. Shower scum. What do they all have in common? They can be cleaned with a Mr. Clean Magic Eraser. They’re good in a pinch and also as a regular addition to your cleaning regime, so do like we do and buy them in bulk!

Dryer Sheets

The sheet that keeps static cling away from your clothes while they’re drying can also be useful in a few other areas of your home. Have company coming over and just realized you’re out of Swiffer Dusters? Run that Bounce over your surfaces, instead. The bonus: If you have scented dryer sheets, they’ll leave a fresh smell behind. You can also use them to wipe window casings, baseboards, and doors that tend to collect dust and dirt in the grooves.

Sponges and Dishwashing Gloves

Forget those pots and pans. Sponges and dishwashing gloves can also help clean dog hair off of upholstered surfaces. This tip could come in very handy for a last-minute cleanup when you don’t have time to vacuum. For regular cleaning of dog hair on a stubborn surface like a low-pile rug, try a dog brush. The short, stuff bristles make it easy to gather the hair.

White Vinegar

It’s not just for salad dressing! Vinegar is a multi-purpose cleaning agent, and one you can feel good about if you’re looking to stay away from harsh chemicals and commercial cleaners.

“If you could invent a green-cleaning ‘wonder’ product, it would probably end up being a lot like white vinegar,” said The Spruce. “Safe, readily available, and really cheap, there are perhaps hundreds of uses for vinegar. There are at least two great uses for vinegar in your automatic dishwasher. First, it can be used as a cheap, effective rinsing agent to get your glasses, plates, and other dishes sparkling clean. Second, it can help to clean the dishwasher itself: Once a year or so (more if you have hard water), pour a cup of white vinegar into an empty dishwasher, then run it for a short cycle to get rid of the lime and soap build-up that can prevent your dishwasher from working at peak efficiency.”

White vinegar is also great for cleaning tile and caulk, “windows, hardwood floors, carpet stains, fireplace bricks and irons, CDs and DVDs, shower curtains, upholstery, mattresses, wood furniture (when combined with olive oil), and glassware. If it’s in your house, you can probably clean it with vinegar.”

Lemon

Pick up a few extra lemons at the market because you’ll get more use out of them than just as a squeeze in your water. “High in citric acid, lemon juice is one of the best natural cleaners due to its low pH and antibacterial properties,” said Networx.

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First Time Homebuyers are Doing Alright!

April 9, 2019 by cdiez Leave a Comment

Andrea Riquier from Real Estate News gives us a fresh update on first-time homebuyers.

How many first-time homebuyers are there in the housing market?

That’s an important question. A smaller share of first-timers suggests that the market may be too competitive or too expensive – and ultimately not very inclusive. A bigger share suggests market conditions may be a bit easier, and that more Americans are getting a shot at attaining upward mobility.

But it is surprisingly difficult to pin down exactly how many home purchases go to first-timers, and a new set of research reports from the New York Fed attempts to correct that.

The National Association of Realtors, the trade group that’s responsible for what may be the best-known measurements of the issue, publishes an annual survey of characteristics of home buyers and sellers. NAR conducts that survey on a monthly basis and those results are tracked in their existing-home sales release.

Another measure comes from the mortgage industry. Within the mounds of paperwork any borrower must fill out, there’s one form known as the Uniform Residential Loan Application. It asks whether the borrower has had “an ownership interest in a property in the last three years.”

The inclusion of that question in the application process dates back to 1992 when Congress passed legislation known as the Federal Housing Enterprises Financial Safety and Soundness Act. The legislation established a new regulator for Fannie Mae and Freddie Mac, and also set out targets for the two mortgage giants to ensure they were serving all would-be home buyers equally and fairly.

Many analysts who focus on the role of Fannie and Freddie in contributing to the housing bubble of the last decade point to the affordable housing goals of the 1992 legislation as the beginning of that slippery slope. Other analysts, of course, focus more on the role of lenders or believe that there’s blame to go around.

Putting that thorny question to the side for a moment, the historic accident of the URLA’s treatment of a “first-time buyer” as someone who hasn’t owned property within the past three years is still with us.

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