Are Homes Under $250,000 Nearing Extinction?

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NEW YORK – According to a recent report by economic research consultancy Capital Economics, the number of vacant single-family homes on the market priced under $250,000 has halved since 2012.

There were only 550,000 vacant homes on the market nationwide priced under $250,000 at the start of the third quarter of 2019.

Capital Economics attributes this to two things: a lower overall housing inventory and a shortage of cheaper homes in particular. It also notes that the number of vacant single-family homes for sale dropped 25% since 2012, and while the homeowner vacancy rate rose slightly in the third quarter, it was up from a 40-year low in the second quarter.

A lack of affordable homes could hamper the home buying prospects of the younger generations. Capital Economics expects that rental vacancy rates will stay fairly low, preventing a sharp fall in rental growth as the economy slows. However, the report also notes that household formation rates are strong, as 2.9 million new households were formed in the last two years, up from 1.9 million households formed in the two years to the third quarter of 2017.

Household formation could lead to more people being ready to buy a home, but the report warns that new households will find it increasingly difficult to find an affordable home. The report also notes that tight credit conditions will make it more difficult for potential home buyers to stretch their budgets until home builders ramp up production of cheaper properties.

Source: HousingWire (11/06/19) Smith, Maleesa

Home prices continue to rise, albeit at a slower pace: FHFA

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Prices were up 0.2% month-over-month in August and 4.6% year-over-year, according to data released Wednesday

Single-family home prices climbed 0.2 percent month-over-month in August and were up 4.6 percent year-over-year, according to the latest data from the Federal Housing Finance Agency (FHFA). Despite the increases, price appreciation is actually slowing across the country.

Prices increased annually in all nine census divisions that FHFA tracks, with the Pacific division reporting the highest increase at 6.5 percent and the Middle Atlantic reporting the smallest increase at 3.9 percent.

Information courtesy of Inman.com

 

 

No Closets…No Problem

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It does not matter how much closet space you have in your home, there is never enough. I am seeing more and more people utilize the clothing racks like we find in stores and they are common in homes. If you watch the Real Housewives of New York, it seems like all the ladies have these racks in their bedrooms (except Bethenny). To clarify, I bought one for my house and I am certain we are going to see more of these in the future. It’s an easy solution to a difficult problem. One note…keep them color coordinated like this couple.