Realtors drive donations for major hurricane response

As Florida braces for Hurricane Milton, the second major storm in a week to put the Sunshine State in its crosshairs, communities across six states are still recovering from Hurricane Helene. Real estate professionals have rushed to help storm victims by organizing donation drives, helping displaced residents salvage their belongings and even taking part in helicopter rescue missions.

Donations for the victims have poured in nationwide: The REALTORS® Relief Foundation has raised $526,000 as of Wednesday morning for housing-related assistance for those impacted by Hurricane Helene.

Real estate professionals are “deeply connected to the communities they serve,” says Tennessee REALTORS® President Regina Hubbard. Communities in East Tennessee were among those ravaged by massive flooding and storm damage. “For many of our members, this devastation and damage is in their own backyards—the neighborhoods they grew up in, the churches they attend, the roadways they travel on. These are their communities that need help,” Hubbard says. “As REALTORS®, we see our communities, and especially other REALTORS®, as family. So, helping out and giving back is something we’re very passionate about, and I’m proud to see the overwhelming support from throughout our state.”

Storm Damage Mounting

Hurricane Helene ranks as one of the deadliest hurricanes to ever make landfall in the U.S., with at least 227 deaths and many still missing. The damage to homes, buildings and infrastructure has been massive, with total losses estimates between $30.5 billion and $47.5 billion, according to CoreLogic’s latest figures. (Original estimates were about $5 billion.) The real estate data firm notes the damage to residential and commercial properties from wind, storm surge and inland flooding was extensive and stretched across several states.

“When intense storm surge and flooding events, like Hurricane Helene, reach regions that are infrequently affected by natural hazards, we can expect to see damage to homes without flood insurance coverage,” says Jon Schneyer, director of catastrophe response at CoreLogic. “The fact that so much damage was concentrated outside the Special Flood Hazard Areas makes it challenging to realize the full extent of impact to uninsured homeowners.”

Property damaged by Hurricane Helene
© Courtesy of Lisa Askew
An older couple had just finished building their new home three months ago when Hurricane Helene struck. Many inland homeowners affected by flooding do not have flood insurance. 

Real Estate Pros Rush In

Lisa Askew, GRI, a real estate professional with Askew Realty Group in Newport, Tenn., was quick to show up for her community in East Tennessee, which faced extensive flooding damage from Helene’s wrath. Her Facebook page became a triage of sorts as she coordinated donations and offered to help victims.

Askew has been juggling many hats for her community, delivering warm food to displaced residents while coordinating supply donation drives and cleanup efforts; families can apply for assistance from the REALTORS® Relief Foundation by going either to her brokerage or her website.

“We are a tight REALTOR® family,” Askew posted on her Facebook page. “We are here for one another, and I could never repay them enough for having our backs during this tragedy. …  We have seen so much devastation in several communities, but we also see smiles. We see people helping one another, we see tears, we have heard stories you just can’t comprehend.”

Mortgage Rates Continue their Downward Trend

After several weeks of declines, mortgage rates reversed course this week, inching up slightly. Still, with the 30-year fixed-rate mortgage averaging 6.12%, according to Freddie Mac, borrowing costs remain well below a year ago, when rates surged above 7%. Prospective home buyers may want to stop holding out for lower rates, experts say.

“The decline in mortgage rates has stalled due to a mix of escalating geopolitical tensions and a rebound in short-term rates that indicate the market’s enthusiasm on rate cuts was premature,” says Sam Khater, Freddie Mac’s chief economist. “Zooming out to the bigger picture, mortgage rates have declined one-and-a-half percentage points over the last 12 months, home price growth is slowing, inventory is increasing, and incomes continue to rise. As a result, the backdrop for home buyers this fall is improving and should continue through the rest of the year.”

Applications for a mortgage to purchase a home rose 1% this week despite the slight increase in mortgage rates, the Mortgage Bankers Association reports. Mortgage applications—a gauge for future homebuying activity—are now 9% higher than the same week a year ago.

“Inventories of both new and existing homes have been increasing over the course of 2024, meaning that potential buyers have properties to look at and now have somewhat lower mortgage rates, leading to better affordability,” says Mike Fratantoni, chief economist at the MBA. Indeed, prospective buyers are finding more choices: The number of listings has jumped more than 20% compared to a year ago, the National Association of REALTORS® reports.

Freddie Mac reports the following national averages for mortgage rates for the week ending Oct. 3:

  • 30-year fixed-rate mortgages: averaged 6.12%, rising from last week’s 6.08% average. Last year at this time, 30-year rates averaged 7.49%.
  • 15-year fixed-rate mortgages: averaged 5.25%, increasing from last week’s average of 5.16%. A year ago, 15-year rates averaged 6.78%

4 Ways to Make a Home Show-Ready

When a home hits the market, it needs to be show-ready. That doesn’t usually require spending a fortune on a remodel, however. Just targeting a few key areas in the home can go a long way.

The New York Times recently highlighted a few tips from real estate pros on preparing a home for sale, including:

Add three points of light. “Every room should have at least three points of light,” Alison Draper, a real estate professional with Halstead Property, told The New York Times. The three points could include a table lamp, floor lamp, and a task light. Or, it may include an overhead fixture and two table lamps.

Shine the floors. You likely can still salvage a worn floor with some polish or professional cleaning. “Unless your floors are severely damaged, it doesn’t make sense to have them refinished,” Pat Christodoulou, a home stager in Connecticut and New York, told The New York Times. She suggests hiring a handyman with a floor buffer, which might cost about $300 to wax and polish the floor of a small living room.

Tidy up the bathroom. The key: Make it sparkle. Re-caulk necessary areas. Investigate small upgrades that can have a big impact on brightening the space, such as swapping out an old faucet or even adding a new shower curtain, bath mat, and fresh towels. For a bathtub in need of some TLC, a professional refinisher can reglaze it, repairing any dents, rub out rust spots, and recoat it for about $500 for a standard-size bathtub, according to Homeadvisor.com.

Deep clean. The key: Make the home sparkle. Wash the windows, inside and out. Vacuum the dust in exhaust fans. “Deep cleaning is so important because while an apartment can show very neatly, it’s the details that people pick up on,” says Heather McMaster, an associate broker at the Corcoran Group. Get more deep-cleaning tips.

Source: “Preparing a Home for Sale,” The New York Times (Sept. 16, 2016)

Rent vs. Buy: Either Way You’re Paying A Mortgage

Rent vs. Buy: Either Way You're Paying A Mortgage | Keeping Current Matters

There are some people that have not purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent free, you are paying a mortgage – either your mortgage or your landlord’s.

As The Joint Center for Housing Studies at Harvard University explains:

“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return.  

That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”

Christina Boyle, a Senior Vice President, Head of Single-Family Sales & Relationship Management at Freddie Mac, explains another benefit of securing a mortgage vs. paying rent:

“With a 30-year fixed rate mortgage, you’ll have the certainty & stability of knowing what your mortgage payment will be for the next 30 years – unlike rents which will continue to rise over the next three decades.”

As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.

The graph below shows the widening gap in net worth between a homeowner and a renter:

Increasing Gap in Family Wealth | Keeping Current Matters

Bottom Line

Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, owning might make more sense than renting with home values and interest rates projected to climb.

 

The “Upside” of “Downsizing”

Masion entrywayThe Upside of Downsizing Your Home

By Anne Miller

You worked so hard to own your home, it’s hard to imagine moving on—much less to a smaller abode. But while downsizing your home may involve major lifestyle changes, there are a lot of advantages to moving into a smaller space.

Downsizing remains one of the most effective ways to lower housing and energy costs.

These are just a few of the advantages:

  • Lower mortgage payments
  • Lower utility bills
  • Less to clean
  • Easier to maintain
  • Less yard maintenance

While the size of the average American home remains fairly large, there are signs that downsizing may increase in the future.

Home Downsizing Trend: No More McMansions

The average American home has grown from under 1,900 square feet some 20 years ago to more than 2,400 square feet, according to 2013 U.S. Census data.

Families who bought five, ten, or even 15 years ago or more might find many rooms unused as their children have grown and moved out. While the baby boomers continue to hold on to many of those larger homes, according to recent reports, experts predict an uptick in downsizing as the oldest boomers enter their mid-70s.

 “We continue to move away from the McMansion chapter of residential design, with more demand for practicality throughout the home,” writes Kermit Baker, chief economist at the American Institute of Architects. “There has been a drop-off in the popularity of upscale property enhancements such as formal landscaping, decorative water features, tennis courts and gazebos.”

Large foyers are becoming a thing of the past. The formal living room is being replaced by a more flexible open plan, such as a large family room/breakfast nook/kitchen combination.

Downsizing Your Budget

For some homeowners, of course, downsizing is not a matter of choice, but of necessity. Many families are still digging out of the recession, which had an impact on home values, employment and retirement nest eggs invested in the stock market. A couple finding itself with a diminished income may simply be unable to keep up with mortgage payments and maintenance costs on a 2,800-square-foot home on a half-acre lot.

Still, the very idea of downsizing takes some getting used to—much less carrying out a downsizing plan. If you feel stuck, a home downsizing consultant can help you formulate a plan of action, appraise and sell belongings, and estimate how much money you stand to save.

Learning to Live With Less

Downsizing your home means a change in lifestyle and attitude. You may have to learn to live without a garage, that extra bathroom, and the basement storage where you tossed years’ worth of home goods, equipment and mementos. A smaller home can mean less room for guests and less opportunity for privacy.

As you consider downsizing, ask yourself these questions:

  • Do you feel ready to live more simply?
  • Are you prepared to divest yourself of resources?
  • How many of the things you’ve accumulated over the years do you truly treasure?

Home downsizing is really about making do with less. But some people would say that less is more. Rather than devoting your time and energy to supporting and maintaining your home, you may find yourself devoting more of your time and energy to enjoying it.

Based on an earlier version by Ben Garson.

Home ownership is the Best Way to Build Wealth

moneyNew York Times: Homeownership is Best Way To Build Wealth

Posted: 15 Dec 2014 04:00 AM PST

The New York Times recently published an editorial entitled, “Homeownership and Wealth Creation.” The housing market has made a strong recovery, not only in sales and prices, but also in the confidence of consumers and experts as an investment. The article explains:

“Homeownership long has been central to Americans’ ability to amass wealth; even with the substantial decline in wealth after the housing bust, the net worth of homeowners over time has significantly outpaced that of renters, who tend as a group to accumulate little if any wealth.”

Many of the points that were made in the article are on track with the research that the Federal Reserve has also conducted in their Survey of Consumer Finances. The study found that the average net worth of a homeowner ($194,500) is 36x greater than that of a renter ($5,400). One reason for this large discrepancy in net worth is the concept of ‘forced savings’ created by having a mortgage payment and was explained by the Times:

“Homeownership requires potential buyers to save for a down payment, and forces them to continue to save by paying down a portion of the mortgage principal each month.” “Even in instances where renters have excess cash, saving a substantial amount is difficult without a near-term goal, like a down payment. It is also difficult to systematically invest each month in stocks, bonds or other assets without being compelled to do so.”

Bottom Line

“As a means to building wealth, there is no practical substitute for homeownership.” If you are a renter who is considering making a purchase, sit with a local real estate professional who can explain the benefits of signing a contract to purchase over renewing your lease!

The top 5 benefits to using a professional when buying a home

Every year the National Association of REALTORS releases their profile of home buyers and sellers in which they reveal the results of a yearlong survey of buyers and sellers. The latest profile revealed what actual buyers saw as the benefits of using an agent during the home buying process.

Here are the Top 5 reasons cited for using a REALTOR: http://goo.gl/FnHczP

Testimonial

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