By Clark Kendus
Apartment rents have risen nationally for 23 straight quarters and are 15.2% higher than they were at the end of the recession in 2009. The figures suggest the five-year squeeze on renters shows little sign of easing. Renting is becoming increasingly more expensive across the country, evidenced by this infographic from Zillow:
The National Association Of Realtors (NAR) conducts an annual survey of home buyers and sellers evaluating the demographics, preferences, motivations, plans and experiences of recent home buyers and sellers. The 2014 Profile Of Home Buyers And Sellers survey was conducted with recent buyers and sellers who bought or sold a home between July 2013 and June 2014. NAR sent out over 72,000 questionnaires in order to compile the data in the survey
Some highlights from the recent 2014 NAR report.
– 33% of recent home buyers were 1st time buyers, trending down from the historical norm of 40%
– First time home buyers averaged 31 years of age – repeat buyers were 53 years old on average
– Median income of buyers was $84,500. The median was $68,300 for 1st time home buyers, and $95,000 for repeat buyers
– 65% of recent home buyers were married
– The typical buyer searched for 10 weeks for a new home, and viewed 10 homes
– Homes purchased averaged 12 miles from past residences, with 50% being located in the suburbs and 16% in urban areas
– 88% of buyers financed their recent home purchase with an average of 10% down
– 12% of al buyers cited saving for a down payment as the most difficult task in the purchasing process
– New homes accounted for 16% of purchases
– The typical home purchased was 1,870 square feet in size, built in 1993, had 3 bedrooms and 2 baths
– 79% of the homes purchased were detached single family homes
– Buyers expect to live in their home for 12 years after buying
– 79% of buyers believe their home is a good financial investment
– 40% of sellers traded up to a larger size, 47% bought a higher priced home, and 53% purchased a new home
– The typical seller lived in their home for 10 years. In 2007 the typical tenure was only 6 years
– Sellers typically sold their home for 97% of the listing price, and 45% reduced their price at least once
– 17% of sellers delayed selling their home because the value of their home was lees than the mortgage owed
– 36% of sellers offered incentives to buyers, such as seller assists and home warranties
– 9% of home sellers were For Sale By Owners (FSBOs) – on average they sold their homes for 13% less than an agent assisted home sale
Wallingford PA Real Estate – Wallingford, PA 19086
Mortgage professionals attending the New England Mortgage Banking Conference last week heard some encouraging news from Freddie Mac’s Chief Economist Frank Nothaft, who predicted that the housing market will pick up in 2015. In fact, Nothaft feels that 2015 will likely be the best year for home sales since 2007.
This sunny forecast is based on strong buyer affordability in many areas, as well as the expectation of rising home prices that will cause more sellers to put their homes on the market. In addition, it is anticipated that the overall economy will strengthen, leading to increased consumer confidence and more household formation – both of which typically result in an improved housing market.
While confident in his belief that housing will strengthen, Nothaft also noted several challenges real estate and home financing professionals will face in the coming year. First is that mortgage rates will continue to slowly rise, hitting 5 percent by the end of 2015. This is still historically low, meaning the greatest impact of rising rates would be on the refinancing market. In addition, it is possible that student debt will continue to impact the ability for Millennials to be approved for a mortgage. As a result, this group, which still desires to own homes, may have to wait slightly longer to get into the market.
Wallingford PA Real Estate – Wallingford, PA 19086
Among Pennsylvania’s 67 counties Delaware County has the 3rd smallest middle class at 50.9%. This ranks behind only Philadelphia at 43.1% and Centre County at 50.1%. In addition Delaware County has lost more than 20% of it’s middle class since the late 1970’s.
The study from the Keystone Research Center also reveals that the striking surge in income among the state’s top earners. The top 1% captured more than 10% of all income in 61 of 67 counties statewide – in 1978 the top 1% of the state’s earner’s did not exceed 10% in any county statewide. Real income growth for 99% of the state was exceeded by the top 1% in all counties statewide. The study has the top 1% registering a 184.9% in income as opposed to the bottom 99% realizing a 25.2% growth in income.
Wallingford PA Real Estate – Wallingford, PA 19086
Home Prices Are Highest For Homes In The WES Attendance Zone
During the 1st half of the 2014 there were 114 homes sold in Nether Providence Township – of which 64 were in the Nether Providence Elementary (NPE) attendance zone, 37 in the Wallingford Elementary School (WES) attendance zone, and 13 in the Swarthmore Rutledge School (SRS) zone. Based upon this sales data from there is a significant variation in home values and characteristics associated with homes in each of the 3 elementary school attendance zones.
The NPE zone has the highest concentration of condos and townhomes, with 9 condos and 16 townhomes accounting for 39% of the homes sold through the end of June 2014 which contributes to the lower average sale price in that zone.
Calculating the price per square foot average, NPE homes sold for an average of $126/sq ft, SRS homes brought an average of $159/sq ft, and WES homes came in selling at an average of $165/sq ft. (Note – 3 new construction homes sold in the 1st half of the year did not have square footage data available and thus were omitted from square footage and tax computations).
Sales show homes in the WES attendance zone are the largest, pay the highest tax bills, and represent the oldest housing stock in Nether Providence Township. They also have the distinction of being the quickest sellers during the 1st half of 2014, with the average Days On Market for a WES home being 65 days, as opposed to 89 for a SRS home, and 105 days for a NPE home.
|
SCHOOL |
SQ FEET |
TAXES |
AVG AGE |
|
NPE |
1,727 |
$6,422 |
53 |
|
SRS |
1,992 |
$8,540 |
57 |
|
WES |
2,282 |
$9,191 |
98 |
Wallingford PA Real Estate – Wallingford, PA 19086
