Millennials Are Skipping Starter Homes

Millennials are leading a new trend that has begun to emerge. Home prices skyrocketing for starter homes. Many first-time homebuyers are skipping the starter home and moving right into their dream home.

What’s a Starter Home?

According to the National Association of Realtors (NAR), a starter home is a one or two-bedroom home. Prices vary widely by market. Starters on average cost $150,000 to $250,000 while trade-up and premium homes cost upwards of $300,000.

Finding Their Forever Homes Now

A recent CNBC article revealed that there are many factors that delayed older millennials (ages 25-35) from buying a home earlier in their lives. The Great Recession and larger education costs forced many to remain living in their parent’s homes or to rent.

With the economy continuing to improve, many millennials have been able to break into better-paying jobs which has helped spur down payment savings. So, as the dream of homeownership comes closer to reality, many millennials are saving for their forever homes.

According to the latest statistics from NAR, 30% of millennials bought homes for $300,000 or more this year (up from 14% in 2013). Diane Swonk, Chief Economist at Grant Thornton weighed in saying, “They rented for longer. Now they’re going to where they want to stay.”

More and more millennials are settling down, getting married, and starting families, which is a huge factor driving them to look for larger homes.

Increased competition in the starter home market has also been a driving force in waiting to afford their dream homes. Inventory in the starter home market is down 14.2% from last year, according to researchfrom Trulia. This has driven prices up and has led to bidding wars.

Many first-time buyers who were originally looking for starter homes are realizing that for just a little bit more of an investment, they could afford trade-up or premium homes instead.

Bottom Line

Therefore, if you plan on purchasing your first home this year, contact the Indigo Skye Group and we will get together to determine how much house you can afford and learn about your options. You may be pleasantly surprised.

Related Article:  Renters Under 50 Want to Buy a Home.

Thanks for stopping by the Indigo Skye Group blog! Be sure to check the blog weekly for more informational and educational articles about real estate.

This Month in Real Estate: May 2018

Real Estate News for May 2018

The Indigo Skye Group is happy to bring you the Real Estate News update for May 2018. Each month we share on our blog and social media networks  the latest information and market insights we have available. In this update you get a birds-eye view of home sales, home prices, inventory and the most popular mortgage types and rates.

Real estate market insights update for may 2018

Home Prices

The median home price increased to $250,400 in March, which was up 3.9 percent from February and up 5.8 percent from March of last year. The median home price has increased by approximately $13,800 in the past year alone.

Home Sales

The National Association of REALTORS® reported home sales at a seasonally adjusted annual rate of approximately 5.6 million homes during the month of March. This was an increase of 1.1 percent from February and a decrease of 1.2 percent from March of last year.

Home Inventory – Months Supply

There was a 3.6-month supply of housing inventory in March, which was an increase of 5.9 percent from February. The total number of available homes for sale has decreased by 5.3 percent compared to March of last year.

Mortgage Rates

 

Related article Selling Your House on Your Own Could Cost You.

Thanks for stopping by the Indigo Skye Group blog! Be sure to check the blog weekly for more informational and educational articles about real estate.

Beat the Heat at One of Texas Great Lakes

Texas has 170 lakes. We’ve narrowed that list to 10, choosing beautiful lakes within a short enough drive from Dallas that they qualify as weekend retreats. Yes, there are closer lakes we didn’t include. But who wants to escape Preston Hollow for, say, Lake Grapevine? Most of the lakes we chose are not owned by the U.S. Army Corps of Engineers, which prevents property owners from building docks or boathouses.

lake texoma north texas

The nature of people who are coming to the lake, no matter what their background, is they want to relax a little.

With summer temperatures setting in, many Texans are looking for ways to cool off. For Dallas-Fort Worth residents, the region offers a number of lakes for swimming, fishing and getting away from the hustle and bustle of everyday life.

According to Lake Homes Realty, Texas is “by far the largest lake market” featured in its Spring 2018 Lake Market Report, boasting more than $3.31 billion in lakeside homes and land.

lake front property north texas lake front property north texas

Three North Texas lakes are among the state’s biggest markets, including Cedar Creek Lake, which ranks fifth in Texas with $160.26 million in lakeside real estate and 4.8 percent of the state’s lakeside market share. Possum Kingdom Lake follows at No. 6 with $150.51 million in real estate and a 4.5 percent market share, and Lake Texoma is 10th with $74.5 million in real estate and a 2.2 percent market share.

Cedar Creek and Possum Kingdom lakes also have among the largest lakeside home markets in Texas, valued at $113.12 million and $109.35 million, respectively.

And their land markets are tops, too, at $42.14 million and $37.91 million, respectively. Lake Texoma has a land market with with $30.4 million in real estate, followed by Lewisville Lake, with $27.1 million.

With those large markets has come strong demand for lakeside retreats in the region.

lake front property north texas

“North Texas lakes have very good demand that seems to be increasing,” said Stephanie Mueller, a real estate agent for Lake Homes Realty in the Cedar Creek Lake area. “Many agents are saying they had their best year ever.”

Lewisville and Possum Kingdom lakes are located on the west side of DFW.

Buyers seeking lake properties in North Texas tend to be a mixture of weekend and full-time residents, though those looking for weekend and holiday retreats tend to be more common, Mueller said.

Lake Homes Realty, which compiled a list of lake homes for the Dallas Business Journal, is preparing for a busy season as buyers begin to look for summertime getaway properties.

If you’re looking for a lakeside retreat, but want something further north, take a 2-hour drive and check out properties at Lake Texoma.

lake texoma north texas

Source: Article originally published by www. DMagazine.com and www.BizJournals.com

Selling Your House on Your Own Could Cost You

In this extremely hot real estate market, some homeowners might consider selling their homes on their own which is known as a For Sale by Owner (FSBO). They rationalize that they don’t need a real estate agent and believe that they can save the fee for the services a real estate agent offers.

However, a study by Collateral Analytics reveals that FSBOs don’t actually save anything, and in some cases may be costing more when they are selling it themselves and not listing with an agent.

In the study, they analyzed home sales in a variety of markets. The data showed that:

“FSBOs tend to sell for lower prices than comparable home sales, and in many cases below the average differential represented by the prevailing commission rate.” (emphasis added)

Why would FSBOs net less money than if they had used an agent WHEN SELLING THEIR HOME?

The study makes several suggestions:

  • “There could be systematic bias on the buyer side as well. FSBO sales might attract more strategic buyers than MLS sales, particularly buyers who rationalize lower-priced bids with the logic that the seller is “saving” a traditional commission. Such buyers might specifically search for and target sellers who are not getting representational assistance from agents.” In other words, ‘bargain lookers’ might shop FSBOs more often.
  • “Experienced agents are experts at ‘staging’ homes for sale” which could bring more money for the home.
  • “Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.” If more buyers see a home, the greater the chances are that there could be a bidding war for the property.

Conclusions from the study:

  1. FSBOs achieve prices significantly lower than those from similar properties sold by Realtors using the MLS.
  2. The data suggests the average price was near 6% lower for FSBO sales of similar properties.

Bottom Line

As Dave Ramsey, America’s trusted voice on money, explains:

“Research has shown that, between mistakes, lack of negotiating skills, pricing errors and general exposure on the market, you’ll cost yourself more than the real estate commission…You’ll come out slightly better and with a lot less hassle if you use a top-shelf agent.”

 

If you are thinking about selling your home, contact The Indigo Skye Group to know your options and to find out the true value of your home. To help prepare you, download our FREE printable guide  “2o Tips for Preparing Your House for Sale.”

Renters Under 50 Want to Buy a Home!

 

Every year, the New York Federal Reserve publishes the results of their Survey of Consumer Expectations (SCE). Each survey covers a wide range of topics including inflation, labor market, household finance, credit access and housing.

One of the many questions asked in the housing section of the survey was:

Assuming you had the financial resources to do so, would you like to OWN instead of RENT your primary residence?

Over three-quarters of respondents under the age of 50 said that they would prefer to own their home, rather than rent. While only 52.6% of those over 50 would prefer to own. The full breakdown can be found in the chart below.

Renters Under 50 Want to Buy a Home! | MyKCM

When renters were asked what the average probability of owning a primary residence at some point in their future was, 66.4% of those under 50 believed that they would eventually own their home, while only 23% of those over 50 did.

Renters Under 50 Want to Buy a Home! | MyKCM

Bottom Line

Many had wondered if young Americans had lost their desire to own a home, but for those renting now, that dream is still alive.

If you are a first-time homebuyer, or if you are a long-term renter wanting to get back into homeownership, contact the Indigo Skye Group to learn more about mortgage and real estate options that are available.

Make owning your own home a reality! [Infographic]

Click here to download and print the infographic.

Make owning your own home a reality!

Some Highlights:

  • Setting up an automatic savings plan that saves a small amount of every check is one of the best ways to save without thinking much about it.
  • Living within a budget right now will help you save money for down payments while also paying down other debts that might be holding you back.
  • What are you willing to cut back on to make your dreams of homeownership a reality?

 

JUST LISTED: 707 Brookstone Drive in Irving

JUST LISTED! 707 Brookstone Drive In desirable Irving

Smart meets stylish charm as you drive up to this 1-story Huntington. Full of special finds – the home is light and bright the moment you enter. Hardwood floors, customized chandeliers and high-end finishes throughout. The kitchen is loaded with SS Appliances, gas stovetop and pot filler, double oven, built-in refrigerator and beautiful marble countertops. The tech savvy will enjoy the Cat6 wiring; Nest Thermostat; Internet security system; pre-wiring for master bedroom, living and back patio speakers; and pre-wiring for security cameras. This low maintenance home is perfect for executives or people on the go. An incredible find in gated guarded Lakes of Los Colinas. Minutes walk to Toyota Music Factory and a quick drive to DFW Airport or downtown Dallas.

Offered at $575,000.

707 Brookstone Property Details

  • 2,246 SF
  • Year Built: 2013
  • Bedrooms: 3
  • Total Baths: 3
  • Living Areas: 1
  • Dining Areas: 2
  • Fireplaces: 1
  • Garage Spaces: 2
  • Security System: Yes
  • Pool: No
  • HOA: CMA Management & LCA/$1,854 Annually
  • Irving ISD:
  • Elementary: Farine
  • Middle School: Travis
  • HS: MacArthur
  • Living Room: 17 x 16/1
  • Dining Room: 10 x 15/1
  • Breakfast: 7 x 16/1
  • Kitchen: 13 x 16/1
  • Office: 14 x 13/1
  • Utility Room: 9 x 10/1
  • Master Bed: 20 x 22/1
  • Bedroom: 11 x 12/1
  • Bedroom: 10 x 12/1

FEATURED HOME : 4804 Sea Pines in Bent Tree North

JUST LISTED: 4804 Sea Pines in Bent Tree North

Welcome to this one-story home in one of the best neighborhoods in North Dallas, desirable Bent Tree North. Ready for your finishing touches and sitting on a large lot, this home features big open living areas, extensive hardwood floors, four fireplaces, a library- study, and huge master bedroom suite. A light and bright eat-in kitchen opens to the breakfast area and big bay windows. The unique split bedroom and den are perfect as a mother-in-law suite, multi-generational living, or game room hang-out. With a laundry room to envy, there are built-ins, extra closets, and storage thru-out. Revel in the French doors all across the back and views to the large, covered slate patio, deck, sparkling pool and spa, low-maintenance landscaping, and grassy side yard. Exemplary West Plano Schools, Trinity Christian, and nearby private schools. Prime location—Minutes to Tollway-190-121, Toyota HQ, Shops at Legacy, entertainment and dining.

Offered at $630,000.

4804 Sea Pines Property Details

  • 3,553 SF
  • Year Built: 1984
  • Bedrooms: 4
  • Total Baths: 3
  • Living Areas: 2
  • Dining Areas: 2
  • Fireplaces: 4
  • Garage Spaces: 3
  • Garage: 20 x 30
  • Security System: Yes
  • Pool: Yes
  • HOA: Bent Tree North HOA/$400 Annually
  • Plano ISD:
  • Elementary: Mitchell
  • Middle School: Frankford
  • HS: Shepton
  • Sr. High School: Plano West
  • Living Room: 19 x 15/1
  • Living Room 2: 19 x 15/1
  • Dining Room: 13 x 13/1
  • Breakfast: 12 x 12/1
  • Kitchen: 13 x 12/1
  • Library/Study: 15 x 15/1
  • Utility Room: 15 x 11/1
  • Master Bed: 18 x 18/1
  • Bedroom: 13 x 12/1
  • Bedroom: 11 x 11/1
  • Bedroom: 12 x 12/1