How Generational Differences Are Drive Housing Preferences

I find this information very interesting, the difference between generations when buying their home – enjoy this article I found.

Generational Differences Drive Housing Preferences?

Younger home buyers tend to view their home as a strong investment, more so than older buyers who tend to view their homes as a match to their lifestyle, according to the 2014 NAR Home Buyer and Seller Generational Trends study, based on a survey of more than 8,700 responses from buyers and sellers.

The survey provided an in-depth look at the generational differences of recent home buyers and sellers.

The largest group of recent buyers is millennials, those under the age of 34, who comprised 31 percent of recent home purchases, according to the NAR survey. Generation X buyers, born between 1965 and 1979, accounted for 30 percent of recent purchases, and younger boomers, born between 1955 and 1964, accounted for 16 percent.

“Given that millennials are the largest generation in history after the baby boomers, it means there is a potential for strong underlying demand,” says Lawrence Yun, NAR’s chief economist. “Moreover, their aspiration and the long-term investment aspect to owning a home remain solid among young people. However, the challenges of tight credit, limited inventory, eroding affordability, and high debt loads have limited the capacity of young people to own.”

The median age of millennial home buyers is 29 and the median income is $73,600, according to the NAR study. They typically purchased an 1,800-square-foot home costing about $180,000.

In comparison, gen X buyers’ median age is 40 and median income is $98,200, and they tend to purchase a 2,130-square-foot home costing $250,000.

Among some of the study’s other findings:

  • 87 percent of buyers age 33 and younger consider their home purchase a good financial investment compared to 74 percent of buyers 68 and older.
  • Millennials were more likely to buy in an urban or central city area than older boomers.
  • Younger buyers tended to place higher importance on commuting costs than older generations. Older generations tended to place more emphasis on energy efficiency, landscaping, and community features.
  • Millennials plan to stay in the home for 10 years while the baby boom generation plan to stay for 20 years.
  • Younger buyers tend to move to larger, higher-priced homes, but “there is a clear trend of downsizing to smaller homes among both younger and older baby boomers and the Silent Generation (those born between 1925 and 1945),” according to the study.

Source: National Association of REALTORS®

What are your thoughts on the future of home buying?  I know – the price of homes listed on this article is the national average – NOT the San Francisco Peninsula where nothing is priced that low.  But I did find this article interesting – especially the differences between Generation X and the Millennials. 

I read this article at:  http://realtormag.realtor.org/daily-news/2014/03/12/generational-differences-drive-housing-preferences?om_rid=AACmlZ&om_mid=_BTII85B84y54x2&om_ntype=RMODaily

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Thanks for reading – Sabrina

The Caton Team – Susan & Sabrina – A Family of Realtors

Sabrina BRE# 01413526 / Susan BRE #01238225 / Team BRE#70000218/ Office BRE# 01499008

7 Signs of An Up-and-Coming Neighborhood

I truly enjoyed this article – had to share…

7 Signs of An Up-and-Coming Neighborhood

Live in a town large enough for a time long enough, and you’ll undoubtedly be made privy to a story of the one that got away. The neighborhood that got away, that is – the neighborhood that all the locals saw as down for the count, pshawing away little sprouts of area upturn, until one day the formerly downtrodden district was teeming with new businesses, new residents, new life – and newly high property values, to the advantage of those few brave souls who decided to go all in before the place actually arrived.

Maybe you’re a first-time buyer trying to squeeze every iota of value out of your precious house hunting dollars, or you just love the prospect of being an early settler in your city’s Next Big Neighborhood. In any event, it can be daunting and even scary to try to figure out whether a neighborhood is up-and-coming or down-and-out. Home value increases are an obvious indicator, but by the time values are up it’s often too late to get in on the early advantage of buying in a neighborhood before it’s potential has been realized.

If you’re ready, willing and able to take on the challenge of buying in a diamond-in-the-rough type neighborhood, here are some signs to look for before property values shoot through the roof.

1. On-trend businesses are moving in. In my neck of the woods, when a co-working space, a Whole Foods or a Blue Bottle coffee moves into the neighborhood, it’s a sign that the nature of things might be changing. This is just as true for small, local businesses that attract people with disposable income as it is for businesses that sell the basics with flair. In fact, most larger businesses do a fair amount of economic research and projections on the neighborhood before moving in. Watching big industry and business moves can be a great way to spot emerging areas with strong fundamentals way before you might otherwise be able to see them yourself.

2. Uber-convenient location in a land-impacted metro. If you live in a densely populated metro area – especially one that is coastal – or an urban setting with intense governmental restrictions on building, demand for homes will continue to grow as the population does, but the supply will remain somewhat limited. In many of these situations, neighborhoods that have been downtrodden but have very convenient proximity to employment centers, public transportation, freeways and bridges tend to be prime for whole-neighborhood remodeling in times of population growth or rapid real estate price rises in already-prime areas.

3. Downsides have an expiration date. If there’s one major issue that has caused an area to be less desirable for decades, and that issue is being eliminated or ameliorated, it could set the neighborhood up for a turnaround. For example, striking crime decreases or a major employer moving into the area where none were before can spark a serious real estate renaissance in an area which has some of the other desirable features on this list.

Also, keep in mind that a new generation of home buyers has a new set of values, and might simply not be concerned or deterred by things their parents might have viewed as turn-offs. Living above a commercial unit might have been a deal-killer for my parents, but my son thinks it’s cool – even desirable, depending on the business on the ground floor. Similarly, gritty and urban might not be the descriptors of your dream home, but some twenty-something first-time buyers in major metros are seeking exactly that feel.

4. Architectural themes with a following. Many up-and-coming neighborhoods find themselves pulled by aficionados of the particular type of architecture that characterizes the neighborhood. Often, down-at-the-heels neighborhoods that are riddled with Tudors, Victorians, Spanish-style homes or even Mid-Century Moderns will see a surge of revitalization when a fresh generation of frugal home buyers falls in love with the style and realizes the deals that can be had there vs. other, already prime areas in town.

5. At least one major economic development is brewing. Never underestimate the power of a major economic development to overhaul a neighborhood’s fate. From Google and Microsoft building cloud storage data centers in Des Moines to a new light rail station going live in Denver, one large-scale employer or infrastructure development can be a very early, very strong sign that an area will see it’s real estate fortunes rise. (That said, areas dependent on one near-obsolete employer or industry can see their fates decline rapidly. Look for industry-wide investment in an area, vs. a single company’s investment.)

6. Fixing is in the air. When you see that an area long known for its rundown homes has a number of homes being renovated and rehabbed from the inside out, this can be a sign of fledgling neighborhood turnaround. If you spot these sorts of projects visually, it might be worth taking a trip down to the City Building Permit counter to see whether the staff has seen the same uptick in individual owners’ investment in the area, and if so, what they think the story of the neighborhood might be – or might become. City staffers often have a wealth of information at the ready, everything from pending commercial development applications that could change the whole landscape of an area to projects the city itself has funded or will prioritize due to its own development initiatives.

7. Slow but steady decrease in DOM. Ten years ago, I listed a charming, pristine home on a not-so-charming, less-than pristine street – the location was its fatal flaw, and the place just lagged on the market as a result. Now, Millennials buying their first homes are salivating over that precise location, for its mix of urban feel; new trendy restaurants and yoga studios; and complete convenience to both the subway and the Bay Bridge. In between now and then, though, those who were watching carefully would have noticed how homes that once took 90 days to sell gradually were selling in 45, then in a couple of weeks – and would have noticed that this decline in the number of days an average listing stayed on the market (DOM) occurred way before the home prices themselves increased. A slow, steady decrease in DOM is a smart, early sign that a neighborhood might be poised on the precipice of up-and-coming status. Ask your agent to help clue you in as to where precisely those areas might be, in your town.

BUYERS: Are you looking to move into an up-and-coming neighborhood? If so, what’s your motivation?

SELLERS: Was your neighborhood an up-and-coming one? Share your experience!

I truly enjoy sharing these articles – hope you did too – would love to hear your input!

 

I read this article at: http://tips.truliablog.com/2014/01/7-signs-of-an-up-and-coming-neighborhood/?ecampaign=cnews201401D&eurl=tips.truliablog.com%2F2014%2F01%2F7-signs-of-an-up-and-coming-neighborhood%2F

Remember to follow our Blog at: https://therealestatebeat.wordpress.com/

Got Questions? – The Caton Team is here to help.  

Email Sabrina & Susan at:  Info@TheCatonTeam.com

Call us at: 650-568-5522  Office:  650-365-9200

Want Real Estate Info on the Go?  Download our FREE Real Estate App:  http://thecatonteam.com/mobileapp

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Connect with us professionally at LinkedIn:  http://www.linkedin.com/profile/view?id=6588013&trk=tab_pro

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

The Caton Team – Susan & Sabrina – A Family of Realtors

Sabrina BRE# 01413526 / Susan BRE #01238225 / Team BRE#70000218/ 01499008

 

Keep Your Home Purchase on Track

Keep Your Home Purchase on Track

I love finding great articles to share – I’ve added my 2 cents in itatlics – enjoy – Sabrina

You’ve found your dream home. Make sure missteps don’t prevent a successful closing.

1. Be truthful on your mortgage application

You may think fudging your income a little or omitting debts when applying for a mortgage will go unnoticed. Not true. Lenders have become more diligent in verifying information on mortgage applications. If you fib, expect to be found out and denied the loan you need to fund your home purchase. Plus, intentionally lying on a mortgage application is a crime.

You might get away with your fib when you apply for your loan, but once you find a home and have an accepted offer.  Your lenders underwriter will comb through every bit of your financial life.  One fib will open a huge can of worms and you could find yourself in hot water.  Because not only have you harmed your chances at getting a loan – you’ve held up a seller who is working in good faith with you and has pulled their home off market waiting for you to remove your contingencies and close escrow.  DON’T LIE!

2. Hold off on big purchases

Lenders double-check buyers’ credit right before the closing to be sure their financial condition hasn’t weakened. If you’ve opened new credit cards, significantly increased the balance on existing cards, taken out new loans, or depleted your savings, your credit score may have dropped enough to make your lender change its mind on funding your home loan. 

Although it’s tempting to purchase new furniture and other items for your new home, or even a new car, wait until after the closing.

The only thing you should be doing is saving your pennies until you close escrow on your new home.  People of lost their dream home because they spent money before closing.  Not my clients though – I remind them constantly about the big picture!

3. Keep your job

The lender may refuse to fund your loan if you quit or change jobs before you close the purchase. The time to take either step is after a home closing, not before.

Amen – well said!

4. Meet contingencies

If your contract requires you to do something before the sale, do it. If you’re required to secure financing, promptly provide all the information the lender requires. If you must deposit additional funds into escrow, don’t stall. If you have 10 days to get a home inspection, call the inspector immediately.

There is a clause IN the Real Estate Purchase Contract (in California) that states – Time is of The Essence!  We are not kidding.  Time is contractual – do what you said you would do.  Your mother will be proud! 

5. Consider deadlines immovable

Get your funds together a week or so before the closing, so you don’t have to ask for a delay. If you’ll need to bring a certified check to closing, get it from the bank the day before, not the day of, your closing. Treat deadlines as sacrosanct.

We take each deadline deadly serious.  Could there be delays?  Yes of course, so much of the real estate purchase process is beyond your Realtors control – so make sure you’re doing what you should be doing when you should be doing it – it will streamline an already difficult transaction. 

By: G. M. Filisko

Got questions – I am here to help – call or click – info@theCatonteam.com

I read this article at: http://members.houselogic.com/articles/keep-your-home-purchase-track/preview/

Got Questions? – The Caton Team is here to help.

Email Sabrina & Susan at:  Info@TheCatonTeam.com

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Please enjoy my personal journey through homeownership at:

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Thanks for reading – Sabrina

A Cinderella Story – Michael and Two Condos

A Cinderella Story – Michael and Two Condos

With 25+ years of combined Real Estate experience, The Caton Team is blessed with working with our clients one home after the other.

When Michael bought his first condo with Susan years ago – it was only natural for him to call her again now that he was ready to buy his next home.  By now Susan & I had teamed up and I had the joy of working with Michael as well.

Such a professional and patient gentlemen, we started our journey early in 2013.  Faced with limited inventory and competition we took our time to find choice properties and enjoyed finding the right condo complexes that would fit his lifestyle.

Finally on a sunny Tuesday we found a great 2-bedroom 2-bath condo in San Mateo.  It was a short sale but we were up for the task.  Offer in, up against three other offers – we were so happy to let him know his offer was accepted.

Then the wait begins.  For a short sale, the seller has a long to-do list.  Great clients do what they need to do to get a short sale approved.  Other types of people brush their responsibility off.   We knew short sales take time to get approved.  We knew short sales are a LOT of work. Each week we checked in with the seller’s agent and received short and useless updates.  We grew suspicious and Susan hit the Internet to do some investigating.  Much to our surprise, the unit was set for foreclosure auction the following day!  Quickly The Caton Team reached out to the seller’s agent to implore the urgency of a true update.  Sadly, not all Realtors are created equal and this particular agent brushed us off again.  We did all we could do as the buyer’s Realtor and the following day, with baited breath, we watched the auction site to see if it would be postponed.  Right before our eyes the unit was sold at auction.  When we called the sellers agent to get a handle on this situation – she kindly hung up the phone.

Without missing a beat Susan called Michael and we hit the ground running looking for a new home.  It didn’t take long, another unit, very similar to the one we just lost, was for sale – but they were taking offers the following day!

Michael is a trooper; he met Susan at the home the next morning, saw it, wrote the offer and submitted by the deadline.  By that evening we had the joy of telling him is offer was accepted!  Within less than 24 hours we went from bad news to fantastic news.

It ain’t over till it’s over though – that is a fact.  As the escrow proceeded we had a hiccup – the unit did not appraise for our offer price….which was less than the last sale of an identical unit.   When interest rates went up – the market had turned from a sellers market early in the year to a different market in a matter of weeks.  The appraiser was cautious – and we can’t blame him for being prudent.  No one wants another bust!  Thankfully both the listing agent and the sellers understood the situation and we were able to re-negotiate a win/win deal that evening.

The best feeling in the world is handing over the keys.  Though it was a long and bumpy ride, The Caton Team was able to get our client a better home and in the end Michael is happy – and that makes everything worthwhile.

How can The Caton Team help you?

Got Questions? – The Caton Team is here to help.

Email Sabrina & Susan at:  Info@TheCatonTeam.com

Call The Caton Team at 650-568-5522

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Please enjoy my personal journey through homeownership at:

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Thanks for reading – Sabrina

Home Prices Rebound According to CNN Money – enjoy this shared article…

Home prices rebound

By Chris Isidore CNNMoney

NEW YORK (CNNMoney) — In another sign of a turnaround in the long-battered real estate market, average home prices rebounded in July to the same level as they were nine years ago.

According to the closely watched S&P/Case-Shiller national home price index, which covers more than 80% of the housing market in the United States, the typical home price in July rose 1.6% compared to the previous month.

It marked the third straight month that prices in all 20 major markets followed by the index improved, and it would have been the fourth straight month of improvement across the full spectrum if not for a slight decline in Detroit in April.

The index was up 1.2% compared to a year earlier, an improvement from the year-over-year change reported for June. While home prices have been showing a sequential change in recent months, it wasn’t until June that prices were higher than a year earlier.

The July reading matched levels last seen in summer 2003, when the market was marching toward its peak in 2006. The collapse of the market after that led to the financial crisis of 2008.

“The news on home prices in this report confirm recent good news about housing,” said David Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices. “Single-family housing starts are well ahead of last year’s pace, existing home sales are up, the inventory of homes for sale is down and foreclosure activity is slowing.”

Record low mortgage rates and a tighter supply of homes available for sale have helped to lift home prices. Lower unemployment also has helped with home prices, although job growth in recent months has been slower than hoped.

Earlier this month, the Federal Reserve announced it would buy $40 billion in mortgage bonds a month for the foreseeable future. This third round of asset purchases by the central bank, popularly known as QE3, is its effort to jump start the economy through even lower home loan rates.

Related: Best home deals in Best Places

Mike Larson, real estate analyst with Weiss Research, said part of the improvement in the housing market is due to investors using the low mortgage rates to buy up homes that are in foreclosure and renting them in a strong rental market.

But he said that he doesn’t think there’s much chance of housing prices forming any kind of new bubble in the foreseeable future.

“Clearly the worst is behind us for this market., but this is not a market that is going to take off again,” he said. “While you have a firming up, you still have tight lending standards and people who have been burned are reluctant or unable to get back in the market.” He predicts it will take several more years before housing prices can gain more than 1% to 2% a year.

Related: Buy or rent? 10 major cities

But that is good news for a housing market that was plagued by plunging home values and high foreclosure rates for much of the last six years. And the good news has the potential to build on itself, said Joseph LaVorgna, chief U.S. economist for Deutsche Bank.

“Housing remains a rare bright spot in an economy that is otherwise muddling through,” he wrote in a note to clients Tuesday. “The price trend for housing is significant, because it provides economic stimulus via stronger household balance sheets.”

Correction: An earlier version of this article incorrectly reported that home prices had reached a 9-year high. In fact, they rebounded to the level last seen in summer 2003, before their peak several years later.

Curious about the local real estate market on the San Francisco Peninsula?  Email me! 

I read this article at: http://money.cnn.com/2012/09/25/real_estate/home-prices/index.html?source=linkedin

Got Questions? – The Caton Team is here to help.

Email Sabrina & Susan at:  Info@TheCatonTeam.com

Visit our Website at:   http://thecatonteam.com/

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Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina