Rental Properties, Loan Sizes and a Full HouseApril 17, 2017
Housing News 4.17.2017
Full House producer Jeff Franklin in front of the Tanner home in San Francisco. Image: Instagram
This week in housing news you can use, know where to buy a rental property, how mortgage applications have changed, where buying is cheaper than renting, how builders feel about home construction and what’s happening to the Full House home.
Top 25 places to buy a rental property
A new ranking of counties and metro U.S. areas showed where it’s still a good idea to buy a single-family rental, and where it’s not. You might be surprised by the results in ATTOM Data Solutions’ Top 25 places to buy.
“While good returns on single family rentals are hard to come by in high-priced coastal markets and in some other housing hot spots such as Denver and parts of Dallas, Austin and Nashville, solid returns on single family rentals will continue to be available in many parts of the Southeast, Rust Belt and Midwest for investors purchasing in 2017,” said Daren Blomquist, senior vice president at ATTOM Data Solutions.
Size of mortgage applications grows
Conventional mortgage applications are seeing small growth overall, but the average loan size is increasing. The survey by the Mortgage Bankers Association showed a new high at $318,700 for its weekly survey ending April 7. Refinance applications dropped off sharply, down 42.6 percent. FHA and VA loans also saw single-digit losses in applications.
Where is buying a home cheaper than renting?
Real estate platform Trulia’s research shows that buying is still cheaper than renting for most. The national numbers show that overall buying is 37.7% cheaper than renting for households who move every seven years and put down 20 percent. For 2016, this came from purchasing a home at the average of $280,103 at 3.7% (30 years fixed) vs. rent for the same property at $1,769. Because this is just a national average, it’s a good idea to look at specific metro areas. Here are the top 25:
Where Buying a Home Beats Renting
|U.S. Metro||Median Home Value, Fall 2016||Median Rent, Fall 2016||Cost of Buying vs. Renting (%), Fall 2016|
|2||West Palm Beach, FL||$241,509||$1,950||-53.2%|
|4||Fort Lauderdale, FL||$217,342||$1,800||-52.9%|
|6||Baton Rouge, LA||$158,405||$1,350||-51.7%|
|7||New Orleans, LA||$171,302||$1,450||-51.2%|
|Note: Negative numbers mean that buying costs less than renting. Data for all metros and all scenarios presented in this report can be downloaded here.|
Builder confidence stays solid
The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) shows builder confidence is continuing to hold. Despite a 3-point decrease to 68 points from March to April, builders remain positive about new home construction.
Have Mercy! You could stay in the Full House home
When the famous San Francisco row house from the long-running family TV series Full House went on sale last May, it had a very sentimental buyer. The show’s producer Jeff Franklin purchased the 1880s Victorian for $4.15 million and immediately restored the front façade to match the Tanner home.
“There are probably 250 fans per day that show up and take a picture in front of it. It will be a lot more fun for the fans because now the house will look like the Tanners really live there. It’s a gift to the fans, but it’s also fun for me to own it,” Franklin told the Hollywood Reporter.
Franklin is bringing the home up to seismic code and restoring the interiors to Full House fashion. Visitors to 1709 Broderick Street won’t see the famous red door until construction is complete (Franklin doesn’t want it to be damaged). He hopes to use the house for filming and rent it out so the public can enjoy more than just the exterior (and be a Tanner for a little while). No date has been set for completion.
Looking for a Full House of your own? Redefy‘s local experts know where to look. Plus, our tech platform sends you real-time available properties that fit your wants.