Existing Home Sales for April were down 2.5 percent and first-time homebuyers increased to 33 percent of sales. Demand is there and it’s the same old tune with low inventory as the root cause for this drop in sales. The slight rise in mortgage rates we have seen over the last few months isn’t holding buyers back. New Home Sales were also down in April, 1.5 percent. Expectations were of a much larger fall so this minor drop was good news.
It’s all about the outdoors as homeowners find outside remodeling projects paying off, for less stress and literally speaking. Standard lawn care service produces the most substantial financial payout at resale, recovering 267 percent of the project cost. Why? Curb appeal is the first impression a buyer gets of a home, but don’t count out the homeowner. Coming home to a well-manicured lawn also grants satisfaction and enjoyment. Looking for more of a project? Think a fire feature or irrigation system.
Folks want to own a home and they’re willing to make sacrifices to do so…and let it affect their love life even. Forty-four percent of a recent survey said they would give up their dream car and 38 percent would give up 5 years of vacations. Here’s the really interesting tidbit: 60 percent of potential homeowners said they would be more likely to date or marry a homeowner. Question is, is this because they want to own a home that badly (seems a reach) or because it represents a sense of adulting and responsibility that’s attractive?
We know many potential homeowners quote downpayment as an obstacle but they might be coming around to the realization that 20 percent is no longer the norm, with most respondents believing $7K will be enough for them to buy a home in the next couple years. True story: there’s plenty of opportunities available with 3 percent down options. Eighty-four percent thought they could save for a downpayment within four years.
Earlier this week the Federal Reserve released their minutes, confirming that most members want two or more rake hikes this year, possibly three.