02_19_2018
Photo Source: Instagram via @homebunch

With demand for less expensive, entry level, starter homes steadily increasing, owners of these homes have seen their equity rise at almost double the pace than that of the most valuable, luxury homes. At an average annual rate, starter homes have seen an increase of 8.5% in value while the most expansive homes have seen only a 3.6% gain. Stretched over the past five years, the analysis showed a 44% equity gain for owners of starter homes compared to only 27% for owners of high-end homes.

Last week the Housing Starts and Permits report for January was released, showcasing quite a gain for both, starts and permits. However, while some experts might argue single-family is lagging and multi-family drove the increase—this is true—they failed to highlight how multi-family homes can be a cornerstone to entry level homes for first-time homebuyers, millennials, and singles. It’s a good thing to see so many multi-family Housing Starts and Permits driving the report.

Compared with historical norms, the overall cost of the U.S. housing market is still affordable. Mortgage rates and home prices are rising—with very small odds of home value declines this year in most of the major metros—but with the new tax changes, many first-time homebuyers and millennials will likely see lower tax rates and have more after-tax income, helping them save more for a future home. Further, several markets are considered undervalued—great opportunity to get in on a home investment.

Hall Financial (NMLS #1467435) was formed in early 2016, founded on a common mission: to be the most client focused mortgage company in the industry’s history. We were going to stop the trend of treating homeowners and homebuyers as transactions and instead, welcome them as family. We were going to treat them like the queen of England. Here, we bring you up to speed and keep you in the know with the latest housing news, home trends, and more!

0 comments on “Real Good Housing.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: