4 Key Home Buying Trends to Watch in 2019

As we look ahead to coming trends in 2019 real estate, home buyers and sellers nationwide will face changes in the marketplace, according to the economic research team at realtor.com. From housing inventory to generational shifts, here are four top trends to look for in 2019.

1. Inventory will grow, especially for luxury homes

Inventory has been tight nationwide, hitting its lowest level in recorded history in the winter of 2017, says realtor.com. Supply finally began catching up with demand in 2018. That inventory growth will continue in 2019, but at rate of less than 7 percent. While sellers will have more competition, it will still be a good market.

“More inventory for sellers means it’s not going to be as easy as it has been in past years—it means they will have to think about the competition,” says Danielle Hale, realtor.com chief economist.

“It’s still going to be a very good market for sellers, but if they’ve had their expectations set by listening to stories of how quickly their neighbor’s home sold in 2017 or in 2018, they may have to adjust their expectations,” she adds.

In markets with strong economies and high-paying jobs, most of the expected inventory growth will come from listings of luxury homes.

2. Affording a home will be challenging

Interest rates and home prices are expected to continue to increase. Hale says homebuyers will continue to feel a “pinch” from affordability, as costs will still be a pain point. She predicts mortgage rates will reach around 5.5 percent by the end of 2019, which translates into the typical mortgage payment increasing by about 8 percent. Incomes are growing about 3 percent on average. These factors are hardest on first-time home buyers, who tend to borrow most heavily.

3. Millennials will dominate

Millennials are now the biggest generation of home buyers. Some are first-time home buyers, while others are moving up from starter homes. The millennial group accounts for 45 percent of mortgages compared with baby boomers and Gen Xers at 17 and 37 percent respectively, reports realtor.com. And many millennials still have student debt, which adds to the challenge of affording a home.

4. The new tax law’s effect is still unknown

For many tax filers, the effect of the new tax law won’t be known until their April tax filing results in a bigger tax bill or a bigger refund.

Renters are likely to have lower tax bills, but the new increased standard deduction reduces the appeal of the homeowner’s mortgage-interest deduction. The new tax law may dissuade people from taking out large mortgages which will affect higher cost homes. Add these factors to the challenge of affording a home and homeownership for some may be harder to achieve or less appealing.

The net effect of the coming 2019 trends is that even with these challenges, sellers are in a good position and homeowners will continue to enjoy positive financial gains from their home.

For more information, read the full report at https://www.realtor.com/news/trends/real-estate-trends-expect-2019/

 

Originally posted here by Tom Kalinski Founder RE/MAX of Boulder on Thursday, January 10th, 2019 at 10:05am.

Posted on January 10, 2019 at 11:51 pm
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Exterior Renovations Deliver Best ROI

A beautiful new kitchen is often the renovation homeowners dream of. But if getting a high return on investment (ROI) is at the top of your checklist, you may want to consider doing exterior work instead.

Seven out of the ten highest payback projects are exterior renovations, according to Remodeling Magazine Cost vs. Value Report 2018. Except for a minor kitchen remodel, work done on the exterior of the house generated higher returns than did interior renovations.

Here are the five renovations that give the highest return, according to Remodeling Magazine.

Garage door replacement

A new garage door can give your home instant curb appeal. Expect to spend about $3,500 to install a new 16×7-foot windowed garage door with lifetime warranty and new heavy-duty galvanized steel tracks. Average ROI is 98.3 percent nationwide and 96.7 percent in the mountain region.

Remodeling Magazine’s mountain region includes Colorado, New Mexico, Idaho, Nevada, Utah, Arizona, Wyoming and Montana.

Manufactured stone veneer

Stone is a popular siding, particularly in Colorado. Adding stone to your home’s exterior gives it character and gives high payback when you sell. At a cost of $8,221, ROI in the mountain region is 93.8 percent and 97.1 percent nationwide.

Wood deck addition

Speaking of trends, inviting outdoor living areas are hot, so wood deck additions add desirability to your home. Estimated cost is $10,950. Average payback in the mountains is higher than across the nation—84 percent compared to 82.

Minor kitchen remodel

At last, we can talk about redoing the kitchen. Expect to spend $21,198 to replace some of the components in your kitchen such as fronts of existing cabinet boxes and drawers, new hardware, new energy-efficient cooktop/oven range combination and refrigerator, laminate counter tops, and flooring. Average mountain region payback is just under 84 percent, and 81 percent nationwide.

Siding replacement

A $15,072 investment to replace old warped or cracked siding with new can help sell your home. You will get around 65 percent of that back here in Colorado and almost 77 percent nationwide.

Here are the top ten renovations with the highest payback.

For the full report, visit http://www.remodeling.hw.net/cost-vs-value/2018/key-trends-in-the-2018-cost-vs-value-report

 

Originally posted here by Tom Kalinski Founder RE/MAX of Boulder on Wednesday, November 7th, 2018 at 2:02pm.

Posted on November 9, 2018 at 10:26 pm
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Boulder Rent Prices Decline

The usual story of ever-rising Boulder rents took a new turn this month. Data for August 2018 shows Boulder rents fell slightly by 0.1 percent last month and by 0.1 percent year-over-year, according to the latest report from rental site Apartment List.

That translates into median apartment rent of $1,150 for a one-bedroom and $1,410 for two-bedrooms. But even with the minor dip, Boulder’s median two-bedroom rent is above the national average of $1,180.

Nationwide rental rates went up about 1.5 percent, which the report found is down from a high of 3.6 percent in 2015.

Compared to the state and nation, Boulder’s rental price growth is below average. The city lags the state average of 0.4 percent rent growth year-over-year.

Rent also decreased in Colorado’s City of Aurora with a reduction of 0.8 percent year-over-year. A two-bedroom apartment in Aurora rents for $1,560.

But statewide, rental prices continue to trend upward. Colorado’s rental prices rose 0.4 percent over the past year. Eight of Colorado’s ten largest cities show rising rents.

Loveland, Thornton, and Westminster all have year-over-year growth above the state average with rent increases of 2.8 percent, 2.6 percent, and 1.9 percent, respectively.

Thornton is the most expensive of all Colorado’s major cities with a median two-bedroom rent of $1,860.

Many cities nationwide saw increases, including Phoenix, Atlanta, and San Francisco, rising 2.5, 1.5 and 1.1 percent, respectively.

Orlando has the fastest rent growth in the nation with an increase of 5.3 percent over last year. Second in the nation is Riverside, CA with 4.1 percent year-over-year growth, followed in third place by Anaheim at 3.6 percent.

The state of Nevada leads the country for the fastest rent growth at 3 percent, followed by Arizona at 2.2 percent.

Apartment List determines rent standings using reliable median rent statistics from the Census Bureau and extrapolates forward to the current month using a growth rate calculated from Apartment List listing data.

You can read the full report at https://www.apartmentlist.com/co/boulder#rent-report, see the national rental statistics at https://www.apartmentlist.com/rentonomics/national-rent-data/. If you want to know where rents are growing fastest, visit https://www.apartmentlist.com/rentonomics/rents-growing-fastest/.

 

Originally posted here by Tom Kalinski Founder RE/MAX of Boulder on Monday, September 17th, 2018 at 2:39pm.

Posted on September 24, 2018 at 7:50 pm
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