Homebuyers Willing to Sacrifice ‘Must-Haves’ in Favor of Good School Districts

Homebuyers Willing to Sacrifice ‘Must-Haves’ in Favor of Good School Districts | Simplifying The Market

It should come as no surprise that buying a home in a good school district is important to homebuyers. According to a report from Realtor.com, 86% of 18-34 year-olds and 84% of those aged 35-54 indicated that their home search areas were defined by school district boundaries.

What is surprising, however, is that 78% of recent homebuyers sacrificed features from their “must-have” lists in order to find homes within their dream school districts.

The top feature sacrificed was a garage at 19%, followed closely by a large backyard, an updated kitchen, the desired number of bedrooms, and an outdoor living area. The full results are shown in the graph below.

Homebuyers Willing to Sacrifice ‘Must-Haves’ in Favor of Good School Districts | Simplifying The Market

Buyers are attracted to schools with high test scores, accelerated academic programs, art and music programs, diversity, and before and after-school programs.

With a limited number of homes available to buy in today’s real estate market, competition is fierce for homes in good school districts. Danielle Hale, Chief Economist for Realtor.com, explained further,

“Most buyers understand that they may not be able to find a home that covers every single item on their wish list, but our survey shows that school districts are an area where many buyers aren’t willing to compromise.

For many buyers and not just buyers with children, ‘location, location, location,’ means ‘schools, schools, schools.’” (emphasis added)

Bottom Line

For buyers across the country, the quality of their children’s (or future children’s) education ranks highest on their must-have lists. Before you start the search for your next home, let’s get together to discuss the market conditions in our area.

MESSAGE JOHN

Source: Michigan Real Estate Updates

Americans Rank Real Estate Best Investment for 5 Years Running! [INFOGRAPHIC]

Americans Rank Real Estate Best Investment for 5 Years Running! [INFOGRAPHIC]

Americans Rank Real Estate Best Investment for 5 Years Running! [INFOGRAPHIC] | Simplifying The Market 

Some Highlights:

  • Real estate has outranked stocks/mutual funds, gold, savings accounts/CDs, and bonds as the best long-term investment among Americans for the last 5 years!
  • The generations agree! Real estate is the best investment!
  • Generation X leads the way with 37% believing in real estate as the top investment.

Source: Michigan Real Estate Updates

New Listing – 704 W Orange, Greenville, MI

Incredible opportunity to own this cute ranch with new roof and high efficiency furnace, tremendous back yard, 2 stall garage all on a tree-lined street with sidewalks. Walking distance to excellent pizza, the Flat River, Franklin Street Park, Fred Meijer Trail and easy access to everyday amenities such as shopping, gas and groceries. Come see this one today!

Details: 704 W Orange

Open Sunday 12-2PM Private Thornapple River Frontage – Forest Hills

Property Description

Experience the best waterfront living in Grand Rapids. This gorgeous contemporary has been masterfully remodeled down to the studs to showcase majestic views of Thornapple River, unparalleled by any other stretch of the river. Located in the award winning Forest Hills Schools, this 4 bedroom, 4.5 bath home features all of the latest luxuries you desire in your new home. Custom gourmet kitchen with open floor plan and views into the dining area, large kitchen bar, living room with fireplace, large deck, and beyond over the water. This home is built to enjoy and entertain, featuring surround sound throughout, multiple built-in wet-bars, 3 private suites, and a 4th lower level bedroom and full bath combination.

Tour this home in 3D now:

For Details Visit: 6577 Burger Dr SE

 

New Listing 40 Knapp St NE, Grand Rapids MI

OPEN SUNDAY 4-6PM

Incredible opportunity to own in one of the hottest areas of Grand Rapids; right around the corner from Riverside Park and only a few blocks from Briggs Park. Located on a tree-lined street with sidewalks, this 3 bedroom 2 story features an amazing backyard, over-sized 1.5 stall garage, main floor laundry, updated kitchen, ample storage space, 3 season porch, large deck, and a location that is just minutes from downtown Grand Rapids. Home Warranty included. Come see this one today! Open Sunday 7-29-18 4-6PM. Offers will be reviewed Monday 7-30-18 at 5PM.

Details: 40 Knapp St NE

What You Need to Know About the Mortgage Process [INFOGRAPHIC]

 

What You Need to Know About the Mortgage Process [INFOGRAPHIC]

What You Need to Know About the Mortgage Process [INFOGRAPHIC] | Simplifying The Market

What You Need to Know About the Mortgage Process [INFOGRAPHIC] | Simplifying The Market

Some Highlights:

  • Many buyers are purchasing a home with a down payment as little as 3%.
  • You may already qualify for a loan, even if you don’t have perfect credit.
  • Take advantage of the knowledge of your local professionals who are there to help you determine how much you can afford.

Reach out and we would be happy to talk to you further about the best approach to achieving your real estate goals.

 

MESSAGE JOHN

Source: Michigan Real Estate Updates

House-Buying Power at Near-Historic Levels

We keep hearing that home affordability is approaching crisis levels. While this may be true in a few metros across the country, housing affordability is not a challenge in the clear majority of the country. In their most recent Real House Price Index, First American reported that consumer “house-buying power” is at “near-historic levels.”

Their index is based on three components:

  1. Median Household Income
  2. Mortgage Interest Rates
  3. Home Prices

The report explains:

“Changing incomes and interest rates either increase or decrease consumer house-buying power or affordability. When incomes rise and/or mortgage rates fall, consumer house-buying power increases.”

Combining these three crucial pieces of the home purchasing process, First American created an index delineating the actual home-buying power that consumers have had dating back to 1991.

Here is a graph comparing First American’s consumer house-buying power (blue area) to the actual median home price that year from the National Association of Realtors (yellow line).

House-Buying Power at Near-Historic Levels | Simplifying The Market

Consumer house-buyer power has been greater than the actual price of a home since 1991. And, the spread is larger over the last decade.

Bottom Line

Even though home prices are increasing rapidly and are now close to the values last seen a decade ago, the actual affordability of a home is much better now. As Chief Economist Mark Fleming explains in the report:

“Though unadjusted house prices have risen to record highs, consumer house-buying power stands at near-historic levels, as well, signaling that real house prices are not even close to their historical peak.”

Source: Michigan Real Estate Updates

How Long Do Most Families Live in a House?

 

How Long Do Most Families Live in a House?

How Long Do Most Families Live in a House? | Simplifying The Market

The National Association of Realtors (NAR) keeps historical data on many aspects of homeownership. One of their data points, which has changed dramatically, is the median tenure of a family in a home, meaning how long a family stays in a home prior to moving.

As the graph below shows, over the last twenty years (1985-2008), the median tenure averaged exactly six years. However, since 2014, that average is almost ten years – an increase of almost 50%.

How Long Do Most Families Live in a House? | Simplifying The Market

Why the dramatic increase?

The reasons for this change are plentiful!

The fall in home prices during the housing crisis left many homeowners in a negative equity situation (where their home was worth less than the mortgage on the property). Also, the uncertainty of the economy made some homeowners much more fiscally conservative about making a move.

With home prices rising dramatically over the last several years, 95.3% of homes with a mortgage are now in a positive equity situationaccording to CoreLogic.

With the economy coming back and wages starting to increase, many homeowners are in a much better financial situation than they were just a few short years ago.

One other reason for the increase was brought to light by NAR in their 2018 Home Buyer and Seller Generational Trends Report. According to the report,

“Sellers 37 years and younger stayed in their home for six years…”

These homeowners, who are either looking for more space to accommodate their growing families or for better school districts to do the same, are likely to move more often (compared to typical sellers who stayed in their homes for 10 years). The homeownership rate among young families, however, has still not caught up to previous generations, resulting in the jump we have seen in median tenure!

What does this mean for housing?

Many believe that a large portion of homeowners are not in a house that is best for their current family circumstance; they could be baby boomers living in an empty, four-bedroom colonial, or a millennial couple living in a one-bedroom condo planning to start a family.

These homeowners are ready to make a move, and since a lack of housing inventory is still a major challenge in the current housing market, this could be great news.

What is the next best step for you? Message us and let’s discuss

Message John

Source: Michigan Real Estate Updates

Grandville Schools – New Listing 2634 Pine Dunes

OPEN SUNDAY 4-6PM

Grandville Schools: Welcome home. This custom built ranch maximizes main floor living with spacious bedrooms, main floor master suite w walk-in closet, large living room with fireplace, eating area open to kitchen, main floor laundry and more. The 5 bedroom 3.5 bath home features quality throughout with cathedral ceilings in the open living room and eating area, 8 feet of sliders allowing an abundance of natural light, finished daylight lower level with wet bar open game room area – perfect for entertaining. There’s ample room for storage with an unfinished workshop room, outside over sized 2 stall garage and additional 10′ x 12′ storage shed. Around the corner from everything you need: Kent Trails, shopping, dining, entertainment, schools, golf, easy commuting highway access and more.

2634 PINE DUNES DETAILS

 

Cost Across Time [INFOGRAPHIC]

Cost Across Time [INFOGRAPHIC]

 

Cost Across Time [INFOGRAPHIC] | Simplifying The Market

Some Highlights:

  • With interest rates still around 4.5%, now is a great time to look back at where rates have been over the last 40 years.
  • Rates are projected to climb to 5.1% by this time next year according to Freddie Mac.
  • The impact your interest rate makes on your monthly mortgage cost is significant!
  • Lock in a low rate now while you can!

Source: Michigan Real Estate Updates