Don’t have time to stay on top of the real estate market? Stay informed with this week’s top five real estate articles!
Americans are expected to spend $316 Billion in home remodeling this year. What is causing the trend?
– A shortage of affordable housing is forcing some families to stay put. The inventory of available homes is equal to home inventory in 1994…yet the American population has grown by 63 million people.
– Rising home prices are increasing consumer confidence. Homeowners feel secure pouring money into larger projects such as kitchen and bathroom remodels. On average, homeowners are spending 57% more on renovations than last year.
A third of millennials stated needing more space for a dog as a main motivator for buying a home. This beat our marriage and children as one of the top three factors. Historically, young adults were motivated to buy their first home due to an upcoming marriage or birth.
Of the top three factors that motivate millennials to buy their first homes, 66 percent listed more living space as the top reason. Building equity came in second place at 36 percent.
Prices are rising too quickly for appraisers to keep up. Since appraisers use historic sales, their appraisals can lag behind the market when it starts to heat up. To prevent deals from not moving forward, sellers may select the cash offer rather than the higher financed offer. Cash buyers do not need an appraiser to move forward whereas a financed deal may appraise too low preventing the deal from closing.
Crelow is a new start-up marketing itself as the “matchmaker” for commercial real estate. Commercial agents usually favor large commercial deals with higher commissions, leaving small business owners with limited options. Crelow provides an anonymous platform for tenants and landlords to find the smaller office spaces they need. This will help small business owners find and rent office space easier.
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