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Old Homes

shaun@amstampa.com (Shaun Mathena) — Wed, 14 Feb 2024 15:27:41 GMT

Owner Occupied Housing.

The median age of owner-occupied homes is 40 years old, according to the latest data from the 2022 American Community Survey [1] . The U.S. owner-occupied housing stock is aging rapidly especially after the Great Recession, as the residential construction continues to fall behind in the number of new homes built. New home construction faces headwinds such as rising material costs, labor shortage, and elevated interest rates nowadays.

With a lack of sufficient supply of new construction, the aging housing stock signals a growing remodeling market, as old structures need to add new amenities or repair/replace old components. Rising home prices also encourage homeowners to spend more on home improvement. Over the long run, the aging of the housing stock implies that remodeling may grow faster than new construction.

New construction added nearly 1.7 million units to the national stock from 2020 to 2022, accounting for only 2% of owner-occupied housing stock in 2022. Relatively newer owner-occupied homes built between 2010 and 2019 took up around 9%. Owner-occupied homes constructed between 2000 and 2009 make up 15% of the housing stock. The majority, or around 60%, of the owner-occupied homes were built before 1980, with around 35% built before 1970.

Due to modest supply of housing construction, the share of new construction built within the past 12 years declined greatly, from 17% in 2012 to only 11% in 2022. Meanwhile, the share of housing stock that is at least 53 years old experienced a significant increase over the 10 years ago. The share in 2022 was 35% compared to 29% in 2012.

[1] : Census Bureau did not release the standard 2020 1-year American Community Survey (ACS) due to the data collection disruptions experienced during the COVID-19 pandemic. The data quality issues for some topics remain in the experimental estimates of the 2020 data. To be cautious, the 2020 experimental data is not included in the analysis.

Why Conventional Mortgages are the Preferred Choice for Homebuyers

Wed, 25 Jan 2023 18:52:41 GMT

Local ordinances are subject to change at any time.

When it comes to buying a home, one of the most important decisions that homebuyers have to make is choosing the right type of mortgage. With so many options available, it can be overwhelming to understand the differences between them and decide which one is best for your specific situation. This can lead to confusion and mistakes that could cost you thousands of dollars in the long run. In this article, we will take a closer look at conventional mortgages and compare them to other types of mortgages such as adjustable-rate mortgages (ARMs) and non-qualified mortgages (Non-QM) to help homebuyers make an informed decision when it comes to financing their dream home.

Conventional Mortgages

A conventional mortgage is a type of home loan that is not insured or guaranteed by the government. It is a popular choice among homebuyers because it typically offers lower interest rates and more flexible terms compared to other types of mortgages.

Advantages of Conventional Mortgages

One of the main advantages of a conventional mortgage is that it requires a lower down payment than government-insured loans such as FHA or VA loans. Depending on the lender and the type of loan, the minimum down payment can be as low as 3% of the purchase price. This means that homebuyers can get into a home with less money out of pocket.

Another advantage of a conventional mortgage is that it usually has lower closing costs. These are the fees that are charged by the lender, the title company, and other parties involved in the transaction. Because conventional mortgages are not insured by the government, there are no additional fees for mortgage insurance, which can add thousands of dollars to the cost of a loan.

Disadvantages of Non-traditional Mortgages

On the other hand, non-traditional mortgages such as adjustable-rate mortgages (ARMs) and non-qualified mortgages (Non-QM) have some disadvantages.

Adjustable-rate Mortgages (ARMs)

An adjustable-rate mortgage (ARM) is a type of loan in which the interest rate can change during the term of the loan. The interest rate is typically fixed for a certain period of time, such as five years, and then it can change annually based on market conditions. The main disadvantage of an ARM is that the interest rate can increase over time, which can lead to higher monthly payments. This can make it difficult for borrowers to budget and plan for the future.

Non-qualified Mortgages (Non-QM)

Non-qualified mortgages (Non-QM) are loans that do not meet the standard guidelines established by the Consumer Financial Protection Bureau (CFPB). This means that they may have higher interest rates, more restrictive terms, or require additional documentation. Non-QM loans are also not eligible for purchase by government-sponsored entities such as Fannie Mae and Freddie Mac. Therefore, borrowers may have a harder time finding a lender who is willing to make a non-QM loan.

Conventional mortgages are a great option for homebuyers looking to purchase a home with a low down payment, low closing costs and flexible terms. However, it's important to consider the potential disadvantages of non-traditional mortgages such as ARMs and Non-QM before making a decision. It's always a good idea to consult with a licensed professional and legal advisor before making any major financial decisions.

If you're looking for a mortgage broker who can help you navigate the home buying process and find the best mortgage option for your specific situation, look no further than Shaun Mathena of Mathena Mortgages. With years of experience and a deep understanding of the housing market, Shaun is an expert in conventional mortgages and can help you make an informed decision when it comes to financing your dream home.

Don't let the confusion and complexity of the mortgage process hold you back from reaching your goal of homeownership. Contact Shaun Mathena today at (727) 504-8628. With Shaun's help, you can be one step closer to owning your own home.

If you are refinancing, buying a home, or thinking about buying in the next 5 years. Subscribe to our blog and stay up to date about changes in the market that effect buyers. Or contact us to learn more about applying for a mortgage.

Local Short Term Rental Restrictions and/or City Contacts

Wed, 16 Feb 2022 13:32:57 GMT

Local ordinances are subject to change at any time.

The information from Pinellas Realtor Organization is not authoritative and only represents a snapshot of what the codes were at the time they were collected or brought to our attention.

This page is built on an ongoing basis; new cities can and will be added, and information is edited periodically.

For the latest municipal rules on short term rentals, please reach out to their respective contacts.

Millennials Are Losing the Bidding War

webeducationservices@gmail.com (Justin Babcock) — Sun, 13 Feb 2022 14:53:52 GMT

Millennials struggle to compete with boomers for homes.

Young people make up a smaller share of recent homebuyers than in previous years most likely due to the increased market activity of baby boomers, a new Zillow report published on Thursday found.

Original Source: housingwire.com

It’s hardly breaking news that the demand for housing has drastically increased over the past 18 months, but the report suggests that this has more to do with demographic trends than the pandemic. Overall, however, individuals aged 30 and older, across all age groups, were buyers at higher rate than those in the same age group a decade ago,

In the past decade, as more and more millennials have aged into their peak home-buying years, Americans aged 60 and over have been more active in the housing market than those of the same age 10 years prior.

From 2009 to 2019, the share of recent buyers who are 60 years and old grew 47% , while the share of recent buyers ages 18-39 fell by 13%. In addition, the median age of a homebuyer who completed their purchase within the past year rose from 40 in 2009 to 44 in 2019.

Over the same time period, home values grew 31.2%. In the past two years, prices have grown an additional 22%, which should come as no surprise, as more than half of homes sold this past July went for above list price and there appears to be no end in sight, as Goldman Sachs predicts that home prices will rise another 16% in 2022.

These drastic increases in price, mean that longtime homeowners have seen massive equity gains, giving them more cash to use toward a potential new home, giving them an advantage in a bidding war against younger buyers who may be trying to purchase their first home. All cash offers are more common among repeat buyers than first time buyers and a survey of Zillow Premier Agent partners found that all-cash offers are the top strategy for winning a competitive bid.

“Whether downsizing or moving to a new town, baby boomers being more active means competition that previous generations did not have when buying their first home,” Jeff Tucker, a senior economist at Zillow said in a statement. “And older buyers have the advantage of a lifetime’s worth of savings and home equity to leverage in a competitive offer.”

In addition to struggling with rapidly rising home prices, over half of non-homeowning millennials (60%) report that student debt is making it harder for them to purchase a home.

Compounding these generational struggles is the construction slowdown that came out of the Great Recession. The resulting housing shortage has only worsened over the course of the pandemic as homebuilders have faced supply and labor shortages.

Together, all of these factors suggest a likely reason why the share of buyers who were buying their first home has dropped from 46%in 2018 to 37% in 2021.

“Even before the pandemic, the largest-ever generation entering their 30s and the hangover from more than a decade of underbuilding were on a collision course set to define the U.S. housing market,” Tucker said in a statement. “The pandemic supercharged demand for housing, bringing the shortage into relief sooner than we expected, as millennials sought bigger homes with Zoom rooms, and older Americans accelerated retirement plans, spurring moving decisions.”

However, there was some positive news in the housing market report, as it found that younger buyers are seeing more luck in less expensive markets such as Buffalo and Salt Lake City where buyers aged 18-39, made up 57% and 56% of all recent buyers, respectively. A notable exception is tech mecca San Jose, where 54% of 2019 buyers were aged 18-39.

2022 Forecast, Home Price Appreciation Will Cool

webeducationservices@gmail.com (Justin Babcock) — Sun, 13 Feb 2022 14:52:53 GMT

Corelogic forecasts that price gains will slow to 3.5% by December 2022

Consumer desire for homeownership paired with a low supply of for-sale homes were the main contributors to a red-hot housing market in 2021.

However, the data vendor said that the market is beginning shift. Mainly, that home price gains, which are predicted to start 2022 above 10%, will slow to 3.5% by December 2022.

Original Source: housingwire.com

In other words, the market and home price appreciation will start to normalize.

“As we move further into 2022, economic factors – such as new home building and a rise in mortgage rates – are in motion to help relieve some of this pressure and steadily temper the rapid home price acceleration seen in 2021,” said Frank Nothaft, chief economist at CoreLogic.

Mortgage rates have already started to climb upwards, w ith Freddie Mac‘s PPMS Mortgage Survey clocking the average 30-year fixed rate mortgage at 3.55% during the week ending Jan. 27.

The perfect storm of supply and demand pressures in 2021 pushed price appreciation to an average of 15% for the full year, up from the 2020 full year average of 6%. The reason for supply pressures in 2021 in part stemmed from supply-chain delays and the skyrocketing of lumber costs, delaying the building of new houses.

A report published by Redfin this week found that overall inventory dropped to a record low in December, with just 1.8 months of supply.

Meanwhile, last month, Naples, Florida, logged the highest year-over-year home price increases at 37.6%, while in Punta Gorda, Florida, home prices grew by 35.7%, CoreLogic’s report found.

On a state-by-state basis, the Southern, Southwest and Mountain West regions dominated the top three spots for national home price growth last year, with Arizona ranking first place at 28.4%.

Florida ranked second with 27.1% home price growth and Utah came in third at 25.2%, the report said.

Refinancing Your Mortgage | PROs, Cons, Impacts, and Choice

webeducationservices@gmail.com (Justin Babcock) — Sun, 13 Feb 2022 14:37:21 GMT

If you haven’t refinanced yet, is it still worth it?

Mortgage rates vary. Take the pandemic, for example. Interest rates were at an all-time low last year, which is why the housing market saw such a spike. Consumers took advantage of those low rates. Some purchased a new home and others refinanced their mortgage.

Original Source: housingwire.com

According to Freddie Mac, borrowers saved thousands in 2021 by refinancing. But as the world slowly gets back to normal, mortgage rates have slowly been rising. In recent weeks, however, Delta variant fears have been fueling a dip in rates. Is there still time to take advantage of low rates and refinance your home? Keep reading to find out.

Pros and cons of refinancing

Refinancing means taking out a new mortgage loan and replacing it with your current one. One of the reasons why people refinance is to obtain a lower interest rate. With a lower interest rate, homeowners pay less in interest and can even shorten the length of their loan.

While refinancing can be a good way to build equity and manage debt, it can cost money – anywhere between 3% to 6% of the amount of debt you still owe on your current loan. So while you might eventually save money from refinancing, you’ll also spend money on closing costs. For example, to refinance a mortgage you’ll have to pay an application fee, appraisal fee and maybe even attorney fees depending on where you live. There’s also a chance your lender will require another title search and title insurance, which would add to your costs.

Not to mention, If you’re planning on moving, you probably shouldn’t refinance. You also want to make sure the long-term costs won’t be more expensive than potential savings.

Impact of covid variant s

With worry surrounding the highly contagious variants, some states are mandating masks again. In fact, some countries are even shutting down their borders in an attempt to slow down the spread. While it’s too early to know the impact this variant will have, if it’s similar to the impact of the COVID-19 pandemic, the housing market might see another surge. And interest rates could take a deep dive again.

Should you refinance?

Even though experts believe mortgage rates will rise in 2022, rates are still historically low. If you’re locked in a higher rate, it may be worth talking with your lender.