Rising Rates, Landlords and Scary HousesMarch 7, 2017
Redefy housing news 3.6.2017
This week in housing news you can use, landlords increase, construction promises to go up, hot markets get hotter, and one scary house gets a hilarious listing.
Landlords taking over the market
In 2016, 37 percent of homes were acquired by investors, according to a new report by ATTOM Data Solutions and Clear Capital. What’s interesting to note is that 79 percent of those buyers were individuals with only 1 or 2 rental properties. This is part of the reason why home prices have reached near all-time highs across the country, but home ownership (buyers who live in the home purchased) is near the 50-year low.
Click on the ATTOM heat map to see the concentration of investor-owned homes
Cold housing starts to warm up in spring
New home construction fell 2.6 percent in January, according to the US Department of Commerce. But permits went up enough to signal an increase in building projects in the next few months.
13 US markets most affected by rising interest rates
A Zillow Research study showed that most home buyers will still purchase a home in spite of rising rates. Zillow estimated, “for the typical homebuyer shopping for the median US home, valued at $195,300, an increase in mortgage rates from 4% to 4.25% would increase their monthly mortgage payment by approximately $23.”
The markets that would see the highest increase in monthly payments, based on a rise from 4 percent to 5 percent, are already hot markets. Home prices listed are based on Zillow’s Home Value Index (HVI); mortgage payments based on 80/20 LTV.
|1. San Jose, CA||$970,000||$3,705||$4,166||$461|
|2. San Francisco, CA||$833,000||$3,184||$3,580||$396|
|3. LA-Long Beach-Anaheim, CA||$595,700||$2,275||$2,558||$283|
|4. San Diego, CA||$530,900||$2,028||$2,280||$252|
|5. Boston, MA||$413,900||$1,581||$1,778||$197|
|6. Seattle, WA||$413,900||$1,581||$1,778||$197|
|7. New York City, NY||$404,800||$1,546||$1,738||$192|
|8. Washington, DC||$380,900||$1,455||$1,636||$181|
|9. Denver, CO||$356,900||$1,363||$1,532||$169|
|10. Portland, OR||$357,000||$1,363||$1,533||$170|
|11. Sacramento, CA||$355,000||$1,356||$1,525||$169|
|12. Riverside, CA||$321,200||$1,227||$1,380||$153|
|13. Austin, TX||$263,400||$1,006||$1,131||$125|
A house so scary it’s funny
A Couer D’Alene, Idaho agent got a less-than-stellar listing: a derelict 1910 home that’s gone 10 years without a buyer. Jeff Mason decided that this scrape-and-build listing needed creativity in order to stir up interest in the pricey property ($289,000). He decided to “tell it like it is” with a nod to the porch that’s barely holding itself up, the bathroom without a bath, and the plethora of wildlife living in the basement. To top it off, the sign out front assures would-be buyers that this scary fixer is “Not Haunted”. Here’s the listing:
“Stunning rancher located close to all the [sic] Coeur d’Alene has to offer! Sprawling front porch that can barely hold itself up, 3 bedrooms, 1 bath without a bath, kitchen has been fully removed for your convenience as there are enough restaurants downtown. Plenty of ventilation in the roof and attic for those hot summer nights. Spacious basement featuring a diverse ecosystem with plenty of wildlife for target practice; any north Idaho homeowners dream! 2 car detached garage is an entomologists or structural engineers’ paradise. You will be hard pressed to find a home in this condition at this price!” (Zillow)