Living in a Project Home

According to the latest “Cool Thing” by CAR, 1 in 5 new home owners renovated their home last year. Of those, 70% were likely to have remodeled their kitchen! 

Almost half, chose to put on an addition.  My question is, does this include the overwhelming number of investors coming into South Napa County who completely gutted and then renovated, and then flipped or rented out the home?

What about you? Have you ever moved into a home and just went to town?  What’s your favorite remodeling project that you have done on your home?

 

Are Millennials Ready to Buy?

According to the latest infograph from CAR, the answer is a resounding…YES!

But I think that it’s fair to say it’s a qualified yes. At a broader level, the graphic shows that 31% of Gen Y think that a home is a good investment. Dig a little bit deeper, and there are some big deterrents that may be keeping so-called Millenials on the side-line: tight lending restrictions, massive student debt, unaffordable homes…Note, however, that lack of inventory is not on of the reasons to sit on the sidelines.  Nor is an increase in the mortgage rate since those are still historically low (remember the 80’s when they were in the teens??!).

The biggest issue for the Gen Y crowd will be lending restrictions as they relate to student loan debt.  Generally, to receive an FHA loan, the debt-to-income (DTI) ration must be at or below 43%.  Assume that it takes 5 years to graduate (not unheard of these days) and the student has to borrow money for tuition (not including room & board, etc.); by the time the student graduates s/he will owe $27,360 before interest (Based on the 2013-14 tuition for a CSU school).  That’s already 37% of the $73,600 median income.  Throw in a couple of credit cards and everything else, it’s pretty easy to get to 43% DTI.  There are still more than a few kinks in the system to be worked out.

 

 

 

 

What Would You Choose? School or Pool?

The latest infographic presented by CAR show’s what’s more important to buyers (statistically speaking), a strong school or having a pool in their backyard.  It doesn’t look like they gave the option of “both”:

9% of respondents say that they would pay 11-20% above asking price to be close to the “right” school.  Would you?

 

Young Optimism?

According to the latest “cool thing” from CAR, young renters are overwhelmingly optimistic about owning their own house someday. 

The One the Got Away

This week’s “One Cool Thing” by CAR is what men and women find attractive…about a home! We all have deal breakers for a home.  Mine? Must have enough room for an office that isn’t in a garage.  And I’d love to have a large area to grow vegetables.

What’s your “must have”?

Where’s your dream property?

Once again, brought to you by the California Association of Realtors, One Cool Thing – here’s a nifty graphic about a breakdown of where people want to have their luxury properties.  Where do you fit in?  It brings to mind my dad’s ever-present question growing up, “What’s better, the mountains or the beach?”

Selling Fast

Gone are the days where almost every home lingered on the market.  Last year, half of all homes sold within 6 weeks! It feels even faster this year.

Sales above list price

How often have houses been selling above the list price over the last few years? Take a look at this infograph from CAR.

 

Tight inventory is continuing to encourage multiple offers on properties, creating biding wars.

Another Cool Thing!

From the California Association of Realtors’ One Cool Thing archive…Multiple Offers.

 

California Median Home Prices

Neat infographic from C.A.R. California Median Home Prices broken down by county…