Home Flipping Slowdown Could Be Temporary, Report Says

Fewer homes were flipped in 2018, but investors are still on the hunt and have not shied away from quick resales, according to a new report from ATTOM Data Solutions, a real estate data firm. Home Flip Characteristics for 2018 Average time: Homes flipped in 2018 took an average of 180 days to complete, down from 181 days in 2017. Single-family homes and condos that were flipped fell 4 percent in 2018, reaching 207,957 homes, according to ATTOM’s 2018 U.S. Home Flipping Report, released this week. Home flips comprised 5.6 percent of all single-family home and condo sales last year, the same as the year before. ATTOM Data Solutions defines a home flip as an arms-length transaction that occurs in the year where a previous arms-length sale on the same property occurred within the last 12 months. Completed home flips returns in 2018 fell to a four-year low. “People are staying in their home longer,” says Todd Teta, chief product officer at ATTOM Data Solutions. However, this isn’t to say home flipping is going away. Some markets saw notable increases in flipping rates in the fourth quarter of last year. The largest increases in home flipping were in Boston (up 33.3 percent), Tucson, Ariz. (up 27.3 percent), Raleigh, N.C. (up 24.5 percent), and Columbus, Ohio (13.1 percent), according to the report.

Millennials have officially entered the housing market

Millennials are buying houses. Lots of them. By the end of 2018, Millennials represented 45% of all new mortgages, compared to 36% for Generation X, and 17% for Baby Boomers. What's new is that Millennials also finally surpassed older generations in the total dollar amount of those mortgages. According to the data, Millennials now represent the largest dollar volume by age group as well. "In November 2018, Millennials finally overtook Generation X as having the largest share of new loans by dollar volume, with a share of 42% in December, compared to a share of 40% for Generation X and 17% for Baby Boomers. "The stereotype that Millennials primarily choose to buy homes and live in large metro areas isn't the reality," Vivas said. “Within the last year, Millennials have moved to affordable areas with strong job markets where they have more buying power,” the company writes. “At the end of 2018, the median price of a mortgaged home purchased by Millennials was $238,000, $26,000 less than the median price of a home mortgaged by Baby Boomers and $51,000 than Generation X.” Realtor.com notes in addition to increasing their buying power and taking on larger mortgages, data reveals Millennials have consistently made lower down payments than other generation since 2015. “This is likely a driver of their activity in more affordable markets, where their money goes further.” NOTE: Realtor.com’s report is based on an analysis of a sample of residential mortgage originations from Optimal Blue.

Recession Watch: Will Another Downturn Rock the Housing Market?

Sure, we've had nearly a decade of booming home sales and prices. That's because the financial factors that helped cause last decade's crash don't exist this time around. It hiked rates four times last year, when the economy was hurtling along, but this year it may do it only once, if at all. Will a recession lower home prices? "There are just more expensive homes [than affordable ones] for sale, and so the luxury market is likely to be more vulnerable to price corrections in the event of a recession," says Hale. Only about 875,00 single-family homes were built last year, according to the National Association of Home Builders. If another downturn hits, builders will likely construct even fewer homes, says Rob Dietz, chief economist of the NAHB. The pace of single-family home construction growth is already slowing down, from 9% in 2017 to about 3% in 2018. Meanwhile, inflation results in higher land, materials, and construction labor costs. “For builders, it means that demands will fall back in some markets and they will pull back," says Dietz.
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Affordable Housing Project Aims to Revitalize Jacobsville Neighborhood on 44 News

Our affordable housing collaboration officially launched in Evansville, Indiana with Mayor Lloyd Winnecke and Evansville Promise Zone. We are thrilled to have such amazing coverage by 44News on how we are making an impact on families quality...

Great Tenant, Bad Credit: What Are A Landlord’s Options?

In any case, it's important to know your options when it comes to dealing with a good tenant with bad credit. While you don't want to ask those references what caused the poor credit — that's a question for your tenant applicant — you can ask them about the tenant's responsibility and behavior in the past. On the other hand, a tenant who was frequently late or who didn't pay their rent every month might not be a smart risk. • Did the tenant take good care of the property? Were they a good neighbor, or were there frequent complaints about them? If a tenant left the property in great shape when they moved out, they were likely responsible with the property in other ways. Offer Options For Bad Credit If you're considering renting to a tenant who has a bad credit score, you may want to have options available that will make you more comfortable and confident with your choice. When you have a tenant with poor credit, you might want to charge them more in rent. If you're worried about a poor credit score, consider what milestones you'd like them to meet in order to prove that they are a responsible renter and that you'll get the funds you need on time each month. Good credit can indicate a tenant who is in a better position to make sure that their rent is paid on time every month, which will make it easier for you to manage your finances.

Millionaire To Millennials: Don’t Get Stuck Renting A Home… Buy One!

In a CNBC article, self-made millionaire David Bach explained that: “The biggest mistake millennials are making is not buying their first home.” He goes on to say that, “If you want to build real financial security, real wealth for your lifetime, then you need to buy a home.” Bach went on to explain: “Homeowners are worth 40 times more than renters. You might literally have to buy a small studio apartment, but that’s how you get started.” Then he explains the secret to buying that home! Well, one, you pay the mortgage off 15-years sooner, that means you’ll be able to retire in your fifties. Number two, you’ll save a fortune (on potentially hundreds of thousands of dollars in interest payments).” What will it cost to pay your mortgage in fifteen years? He explains further: “For fifteen years, you got to brownbag your lunch. This millionaire gave simple advice – if you don’t yet live in your own home, go buy one. Bach is a self-made millionaire who has written nine consecutive New York Times bestsellers. He is one of the only business authors in history to have four books simultaneously on the New York Times, Wall Street Journal, BusinessWeek and USA Today bestseller lists. He has been a contributor to NBC’s Today Show, appearing more than 100 times, as well as a regular on ABC, CBS, Fox, CNBC, CNN, Yahoo, The View, and PBS. Members: Sign in now to set up your Personalized Posts & start sharing today!

Here’s Affordable Options For First Time Buyers

Here’s where first-time buyers can afford to buy a home around the country. Lending Tree recently released research on the top cities that still offer first-time buyer affordability. The best cities for first-time homeowners include Pittsburgh, Cleveland, and Oklahoma City. Lending Tree crunched the numbers by ranking the country’s 50 largest metros looking at down payment amounts, down payments as a percentage of purchase price, share of affordable homes to median income families and the percent of buyers with credit scores below 680. “The first-time buyer has fewer financial resources than the move-up buyer who can use equity towards their down payment,” notes Lending Tree's chief economist Tendayi Kapfidze. According to Lending Tree’s research, Oklahoma City, Cleveland, and Memphis have the lowest down payments, averaging $32,000. That’s lower than the average down payment in the 50 top metros, Lending Tree looked at. After renting a one-bedroom apartment for a few years the couple wanted more space, but rental prices were rising. In Pittsburgh, according to Lending Tree’s findings, an average down payment is $34,049. In Oklahoma City, where the average down payment is $30,234 and 13% as a percentage of the purchase price, there are good affordable choices.

Why Homeownership Matters Now More Than Ever

Study after study shows that no matter what generation Americans belong to, the vast majority believe that homeownership is an important part of their American Dream. For Americans approaching retirement age, one of the greatest benefits to homeownership is the added net worth they have been able to achieve simply by paying their mortgage! The Joint Center for Housing Studies at Harvard University focused on homeowners and renters over the age of 65. Their study revealed that the difference in net worth between homeowners and renters at this age group was actually 47.5 times greater, with nearly half their net worth coming from home equity! Homeowners over the age of 65 are much more financially prepared for retirement and often own their homes outright if they were fortunate enough to purchase their homes before the age of 36. Their 30 years of mortgage payments have paid off as they gained equity through their monthly payments and as home values appreciated. Bottom Line Your monthly mortgage payment is a form of ‘forced savings’ building your net worth with every payment! Members: Sign in now to set up your Personalized Posts & start sharing today! Not a Member Yet? Click Here to learn more about KCM’s newest feature, Personalized Posts.

5 Things Every First-Time Home Buyer Needs to Know

Whether it's getting a mortgage, choosing a real estate agent, shopping for a home, or making a down payment, we lay out the must-knows of buying for the first time below. This means the bank will assess your credit history, credit score, and other factors, then tell you whether you qualify for a loan, and how much you qualify for. Mortgage pre-approval also puts home sellers at ease, since they know you have the cash for a loan to back up your offer. Pick the right real estate agent You buy most things yourself—at most, sifting through a few online reviews before hitting the Buy button and making a payment. But a home? (You know, a down payment, loan, etc.) Make sure to find an agent familiar with the area where you're planning on purchasing; to her credit, the agent will have a better idea of proper expectations and realistic prices, says Mark Moffatt, an agent with McEnearney Associates in McLean, VA. "Finding a Realtor is not hard, but finding one that is best suited for you and your purchase is a challenge," he adds. Finding a home is a lot like dating: "Perfect" can be the enemy of "good," or even "great." If they believe you'll have trouble making a payment, a mortgage lender will not approve your loan. Some states and municipalities may offer mortgage credit certification, which allows first-time home buyers to claim a tax credit for some of the mortgage interest paid.

The Non-Financial Benefit of Homeownership

We are a nation of homeowners. Tax benefits and government encouragement have always driven American homebuying in a way unfamiliar to most other first world nations. And in recent years, the fluctuations in value around that investment have become a cause for both deeper interest and greater concern amongst homeowners. It could only go up in value and make the owner money. The recession demonstrated the inaccuracy of that belief. And lending standards, excessively rigorous in the wake of the passage of the Dodd-Frank bill, now seem to be relaxing again, maybe even more than they should. The Manhattan/Brooklyn real estate market in New York City enjoyed a quick and precipitous recovery from the ravages of the recession. While economists at the National Association of Realtors were still touting the seller’s market, our local market in New York, already overbuilt and with new inventory flooding in every day, began to decline and offer opportunity for buyers. Even through the booming 1980s, owning a home was still more about the home than the money. Did the buyers love it?

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A First For Manhattan: $30M Real Estate Property Tokenized With Blockchain

He and the developer are turning to tokenization as a new method of financing, which could serve as a better alternative for the project and investors. “The market in New York is always strong, but it can take some time to sell for the right price in a new construction building. Tokenization is paving the way for a new forefront in real estate development,” Serhant told me. Tokenization is the process of representing the ownership of real world assets digitally on a blockchain. This new method of financing is the result of the partnership between Propellr and Fluidity, two companies who have joined forces to offer compliant products and services for the creation, distribution, and transfer of digital securities. Propellr will use its financial and capital markets experience to offer and sell traditional and tokenized securities under what is known as Reg D rule 506(c). Fluidity, the team behind AirSwap, provides technology services to registered broker-dealers, issuers and financial institutions for tokenized securities. AirSwap technology will be incorporated into the offering process, including “tokenizing” the securities and allowing for a compliant secondary market to emerge. This makes them available for trade on a global marketplace—directly among buyers and sellers. With the right partners and an optimized structure, we are bringing a major real world asset online.