There are some people who have not purchased homes because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize, however, that unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.
“While renting on a temporary basis isn’t terrible, you should most certainly own the roof over your head if you’re serious about your finances. It won’t make you rich overnight, but by renting, you’re paying someone else’s mortgage. In effect, you’re making someone else rich.”
With home prices rising, many renters are concerned about their house-buying power. Mark Fleming, Chief Economist at First American, explained:
“Over the last three years, renter house-buying power has increased fast enough to keep pace with house price appreciation, so the share of homes that a renter can afford to buy has remained the same since 2015.
Although mortgage rates are expected to rise, they are still low by historic standards, and real household incomes are the highest they have ever been. Assuming this trend continues, our measure of affordability, which takes into account income, interest rates, and house prices, indicates that homeownership is still within reach for renters.”
As an owner, your mortgage payment is a form of ‘forced savings’ which allows you to build equity in your home that you can tap into later in life. As a renter, you guarantee the landlord is the person building that equity.
Interest rates are still at historic lows, making it one of the best times to secure a mortgage and make a move into your dream home. Freddie Mac’s latest report shows that rates across the country were at 4.51% last week.
Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, now may be the time to buy.
“Navy is the hottest colour this season, old fashioned pinks are back and, hello gold carpet!”
It’s that time of year where the shiny new Design Trends for autumn and winter appear, so we’ve compiled our top 10 for you to peruse before the temperature starts to drop.
Rich tones, colour blocks, a touch of black and big flouncy florals are what’s to come this autumn and winter. Below we show you how to create these exciting design trends in your home this coming season.
1 – Oversized Florals
This is a really lovely trend – who doesn’t love flower prints and on a large scale? Look out for big blousy designs that have a pre-Raphaelite style and you’ll find them on cushions, bedding and as murals (shown here). Keep the rest of the look simple, so the florals become the star and pick out key colours to accessorise with.
2 – Modern Neutruals
This is a combination of different elements that creates a beautiful and simple look with the emphasis on natural-looking furniture. As Kate Butler, head of design at Habitat, explains: ‘Here there’s been a focus on stripped timbers, wood grain and a return to simple, natural patinas and materials within furniture.’ Team this with gently patterned crockery, soft grey chairs and a neutral block coloured textured rug to complete this calming trend. One of our favorite design trends perfect for family life!
3 – Gold
Although we had gold as a trend back in spring/summer, it’s still very much here and you’re going to see even more of it this season! So how about using it in a different form instead of as an accessory? Yes, that’s right – GOLD carpet, and isn’t it fabulous, especially with this Mid-Century modern furniture?
4 – Jet Black
Design trends, no matter what season, seems to always favor black and white. Fans of monochrome will adore this trend. It’s all about the accessories – and they need to be black. But if you’re not a massive fan of large amounts of black you can make this trend work by using small blocks here and there. Like this beautiful beaded pendant, console and shelving unit. Combine this look with tactile pieces and white to balance it out.
5 – All the Pinks
Dusty, old fashioned pinks are all the rage for autumn which is a perfect antidote to the usual rusty tones we see, and as it’s such an easy-on-the-eye colour it’s simple to apply to our homes. We asked Karen Thomas, head of design at Home at Marks & Spencer to explain this trend: ‘Adding warmth and colour to your home, these tones will work especially well alongside metallic, contemporary greys and the new wave of darker neutrals. If you’re feeling bold, go for statement upholstery in vibrant pink velvet or for a more understated look try painterly florals and layer textures and fabrics to add interest.’
6 – Tactile Kitchens
Kitchens are undergoing a change, no longer are they simply all about one style of units, a worktop and a complementary splashback. This seasons design trends are all about mixing it up – different textures sat next to each other, contrasting in both colour and touch. ‘A sleek quartz work surface with an integrated solid wood chopping board or dark cabinetry against a clean marbled splashback, makes for an eye-catching space, and one that is full of character,’ says Daniela Condo, designer at Life Kitchens.
7 – Bright Shapes
Playful and full of colour, this trend is certainly a happy one. Look out for bold shades in different shapes – stripes, geometrical, spots and blocks and you can’t go wrong. Pop it all together and you’ll have this trend spot on. Lois Vincent, home designer at House of Fraser, says: ‘Its design DNA lies in its mix and match of graphic geos, bold colours and clean lines. Running through it all is a confidence to clash not match. The only rule? Make it modern.’
8 – Scandi Goes Vintage
Think Scandi combined with nostalgic designs from Sainsbury’s packaging archives and this is the eye-catching result, as Andrew Tanner, design manager at Sainsbury’s Home explainsL ‘This new dining range evokes 1950’s nostalgia with a modern Scandinavian edge, and embodies the excitement and post-war boom of the era. Updated with a yellow and deep aqua blue colour palette, this collection is a must-have to bring a vibrant pop of colour to the dining table, designed to be mixed and matched for informal, vintage style.’ Team it with pale blond wood furniture so the design sings out and keep the styling simple.
9 – True Blue
Navy is the BIG colour for these coming seasons, gentle on the eye yet moody enough to be perfect for the winter months – you’re going to see it everywhere. Here, it’s been teamed with gold and this wallpaper is inspired by sashiko, a form of functional embroidery from Japan that uses geometric stitching to mend areas of worn clothes. Keep accessories simple and let this dazzling wallpaper be the focal point of your room.
10 – Artisian Folk
With all of us spending more and more time on social media, there’s a move towards more conscious and folk-inspired handcrafted homewares. Having pieces that feel great will be key; tufted rugs, decorative quilts and rattan lampshades, as shown here, will all be popular. There’s a need for textures that create interest visually whilst retaining a cosy feel to help us through those darker months.
Many have written about the millennial generation and whether or not they, as a whole, believe in homeownership as a part of attaining their American Dream.
Comparatively speaking, millennials have taken longer to obtain traditional milestones (like getting married, having kids and buying a home) than generations before them, but that does not mean that they do not aspire to still achieve those things.
For older millennials (aged 25-34) who have established themselves in their career and are starting to build their families, homeownership is the next logical choice.
According to the Urban Institute’s State of Millennial Housing, the probability of a millennial becoming a homeowner increases by 17.9% if they are married, and by an additional 6.2% if they have children.
Last year, according to the US Census Bureau, the average age at first marriage was 30 for men and 27 for women, while the National Association of Realtors (NAR) reports that the average first-time homebuyer was 32 years old.
With most of this generation having yet to age into the ‘Responsibility Zone’ (the time in their lives when their responsibilities start to dictate their behaviors), there will be a steady wave of buyers for years to come!
Those who are currently out in the market searching for a home are being met with a strong, highly competitive seller’s market. NAR’s Chief Economist Lawrence Yun recently commented,
“Realtors® throughout the country continue to stress that there’s considerable pent-up demand for buying a home among the millennial households in their market.
Unfortunately, they’re just not making meaningful ground, and continue to be held back by too few choices in their price range, and thereby missing out on homeownership and wealth gains.”
If you are currently renting and thinking about jumping into the real estate market this year, let’s get together to help you navigate our market.
The Indigo Skye Group is happy to bring you the Real Estate News update for July 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.
Here are just a few of the national real estate numbers we’re tracking for you right now. Click to the image below to watch the video.
The median home price increased to $264,800 in May, which was up 2.7 percent from April and up 4.9 percent from May of last year. The median home price has increased by approximately $12,300 in the past year alone.
The National Association of REALTORS® reported home sales at a seasonally adjusted annual rate of approximately 5.43 million homes during the month of May. This was a decrease of 0.4 percent from April and a decrease of 3.0 percent from May of last year.
There was a 4.0-month supply of housing inventory in May, which was flat from April. The total number of available homes for sale has decreased by 4.8 percent compared to May of last year.