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HAPPY NEW YEAR!

by Lakeshore Realty

Rentals Feeling First Signs of Millennials' Impact

by Lakeshore Realty
Like their baby-boomer parents before them the millennial generation appears to be starting to drive parts of the housing market.  While their delay in forming households and buying homes has been the subject of much comment and research, RealtyTrac says they now appear to be impacting rentals. 

The California company recently released an analysis of fair market rents and median home prices in over 500 U.S. counties.  The study found that, while buying is still more affordable than renting in many parts of the country, in those markets where the millennial population has increased the most rentals are a bigger bargain. 

While the definition of millennial is at rather squishy at best, RealtyTrac used a different one than most studies which peg the birthdates of that generation as occurring between the early 1980s and the first few years of this century.  RealtyTrac used the years 1977 to 1992.

The company looked at 2015 fair market data from the Department of Housing and Urban Development (HUD) for both rentals and home prices in 543 counties with population over 100,000.  In 473 of those counties renting a three bedroom apartment requires an average of 27 percent of the median household income in the local area while buying a median priced home of that same size requires 25 percent.  The company said that buying was more affordable than renting in 68 percent of the counties analyzed, representing 57 percent of the total population in those counties.

In the 25 counties where the millennial population had increased the most between 2007 and 2013 renting that three bedroom apartment in 2015 will require 30 percent of the median income but buying will consume an average of 36 percent.   

 

 

"First-time buyers and potential boomerang homebuyers are stuck between a rock and a hard place in today's housing market: many of the markets with the jobs and amenities they want have hard-to-afford rents and even harder-to-afford home prices; while the more affordable markets have fewer well-paying jobs and tend to be off the beaten path," said Daren Blomquist, vice president at RealtyTrac. "Those emerging markets with the combination of good jobs, good affordability and a growing population of new renters and potential first-time homebuyers represent the best opportunities for buy-and-hold real estate investors to buy low and benefit from rising rents in the years to come."

The three counties with the largest increases in their millennial population - over 50 percent in each case - were Washington, DC, San Francisco and Denver.  Other large increases were noted in New York, Nashville, Portland, St. Louis, Seattle, Minneapolis and Charlotte.  In these and the other cities in the top 25 millennial magnets the fair market rent averaged $1,459.  This was 19 percent higher than the average for all counties analyzed. 

Rents had increased an average of 3 percent in these 25 counties with the largest increases (over 20 percent) in Denver County and Midland County, Texas.  At the same time rents increased by 9 percent in counties popular with the younger generation compared to 6 percent in the nation as a whole.

These counties did have a slightly lower unemployment rate but only by a small amount.  The 25 counties averaged 5.2 percent compared to 5.5 percent for all counties analyzed.

Aside from the issue of the millennials' impact the top counties in terms of increasing rents were Williamsport, Pennsylvania, Elizabethtown, Kentucky, and Midland.  In each case fair market rents increased at least 24 percent compared to the previous year.  Both Williamsport and Midland are part of the energy boom while there is a military installation in Elizabethtown.  Other markets among the top 25 for increasing rents included counties in Denver, Asheville, North Carolina, Chicago and Santa Barbara.

Average fair market rent in the top 25 counties was $1,327, 8 percent above the average for the total 543 counties analyzed, and would require 25 percent of median household income.  Buying a median priced home in the 25 counties would require an average of 27 percent. Median home prices have increased 6 percent over the last year both in the 25 counties and in the entire study universe. . 

The average unemployment rate among these counties was 4.9 percent compared to that 5.5 percent overall average.

At the other end of the scale rents have decreased at least 13 percent over the past year in Sumter, South Carolina; Las Cruces, New Mexico; and Longview, Texas.  Other counties with decreases included several college towns, Bloomington and Champaign-Urbana, both in Illinois, College Station Texas; and Terre Haute, Indiana along with Las Vegas.

The average 2015 fair market rent in the 25 counties with large rental drops is $1,023, 16 percent below the national average, and requiring 29 percent of median income.  Buying a median-priced home would require 23 percent. Home prices have increased in these 25 counties by 4 percent on average. The average unemployment rate among these counties was 6.7 percent.

The least affordable counties were in New York, Baltimore, Philadelphia, Miami, Virginia Beach, San Francisco, Eureka, Calif., and Los Angeles. Fair market rents averaged $1,686, 38 percent above the national average and, in the top ten, required at least 42 percent of median household income while buying requires 44 percent. Home prices have increased an average of 3 percent in the least affordable counties over the last year and the unemployment rate is a full percentage point above the national average.

 

The top counties where fair market rents were most affordable were in Columbus, Ohio, Indianapolis and Nashville.  Also on the list were counties in Atlanta, Cincinnati, Milwaukee, and Houston. Fair market rents averaged $1,019, 17 percent higher than the national average and require 26 percent of median household income on average (but in some areas required less than 15 percent) while buying a median-priced home requires 12 percent of household income on average.

Median home prices in these affordable markets were flat compared to a year ago and the unemployment rate averaged 5.8 percent.

SOURCE: www.mortgagenewsdaily.com

Lakeshore Realty wishes you a Merry Christmas!

by Lakeshore Realty


 

Lakeshore Realty is wishing you peace, joy, and all the best the holiday has to offer.

May this incredible time of giving and spending time with family bring you joy that lasts throughout the year.
 

So You Think You Want to Live in a Houseboat?

by Lakeshore Realty

If you’ve been looking for a change of scenery and are comfortable around water, you may be interested in moving into a houseboat. Houseboats have been used for recreation and residency in the U.S. for more than 100 years and there are many places across the globe where people make a permanent home out of floating real estate.

However, making the switch from land to water isn’t as simple as moving down the street. If you think the watery life is for you, there are a few things to consider.

Cities with Houseboat Neighborhoods

If your heart is set on a floating home, you may have to consider moving to one of the cities that is known for having beautiful houseboat neighborhoods along the waterfront. Seattle, Washington is one of the most well known places for houseboat living, specifically the famous Lake Union neighborhood with its unique floating homes. Other cities in the U.S. that are popular for houseboat dwellers include Tampa, Florida and Sausalito, California. Lake Tahoe is another popular spot for recreational and residential houseboating, as well as beautiful traditional lakefront homes and communities, so you can have the best of both worlds.

Houseboating is also a global way of living and neighborhoods can be found all over the world. If you’re more interested in international waters, you may want to consider the beautiful waterfront of Vancouver, B.C. or the world-renown houseboat villages in Amsterdam.

Types of Houseboats

According to The Independent, a houseboat is technically a structure sitting atop pontoons, what you’d usually think of for a houseboat, but there are different types of floating dwellings. It is common to convert commercial vessels into small or large homes for single people or families.These range from small homes, like a “narrowboat” which is usually about seven feet wide and up to 70 feet long, or a “barge,” which is a converted boat up to 12 feet wide and 50 feet long. The Independent also lists a “cruiser” as a large converted ferry or fishing ship that can be turned into a residence. Whether you go with a traditional houseboat or a converted boat, the options are endless for unique floating homes.

Costs and Fees

Just as with a traditional home, there are certain costs and regulations you need to consider. There are “mooring” costs which will run about $200 to $600 monthly. This will cover homeowner fees like docking, sewer and general maintenance. In some places, property taxes still have to be paid for houseboat ownership, just as with land-based homes. There may also be specific regulations, fees or licences depending on where you live with you houseboat and if you have other boats or water vessels. For example, according to BOATERexam.com, in Nevada, which has lakes popular for houseboat dwellers, you must have a boating license to to operate motorized watercraft more than 15 horsepower.

Maintenance Needs

Another important factor to consider when moving to the water from solid land is the differences in maintenance and upkeep. Rust and saltwater damage are common issues with floating homes. IdealHomeGarden.com suggests maintenance often depends on the material of your houseboat. Fiberglass and Aluminum are popular materials for hulls and will generally have low-maintenance costs. Steel and wood are also often used and look better, but will have higher costs. Other common maintenance requirements will be bilge pump upkeep, battery replacement and water leak repairs. Maintenance is a large part of becoming a houseboat owner and should be seriously considered when deciding if floating real estate is right for you.

The 5 Worst Winter Staging Mistakes

by Lakeshore Realty

When a winter listing comes in it usually means the clients are driven by serious urgency. Unfortunately that urgency doesn’t always translate into the best staging decisions. Here are five all-too-common winter staging decisions that can crush a late-year sale and a few suggestions for cutting them off at the pass:

 

1. Over-Holidaying

Yes, we’ve reached one of the jolliest seasons of them all and that comes with the urge to get in the spirit. For sellers there is a dangerous line between spirited and off-putting holiday decor. Remember that you can never know the preferences of prospective buyers. So, gently guide sellers to decorate in a way that won’t deter anyone and make sure the tinsel doesn’t outshine the home.

2. De-Heating

Remember a showing is about both look and feel. If your sellers are the habit of having the heat off when they’re not home, make sure you call or text to remind them to heat it up before home tours. Prospects won’t hang around an unheated home long and this little distraction could cause them to miss a listing’s best features.

3. Pet Pandering

It’s cold outside and that means cats, pups, and other family friends are more likely to be inside with their belongings and “gifts.” When working with winter sellers, come up with a plan early on for what happens to pets during a showing and special checklist to make sure the toys, hair, and other accessories are stored in a way that doesn’t ruin the showing.

4. The Missing Doormat

It seems simple, but this can be big. Whether your clients go all out or not on staging, the doormat is essential for the winter season. They don’t want to return home to traces of their prospects in every room or end up with a showing stain they can’t overcome.

5. Under-Renovating

Winter repairs take more effort than in any other season in most areas. Make sure the cold or changing weather doesn’t deter your prospects from securing a sale. Just as only serious sellers list during the winter, only serious buyers are on the market. Those buyers have plenty of choices and your staging and listing have to be enough to move them off of a very cold fence.

How to Raise the Money You Need for a Down Payment on a Home

by Lakeshore Realty

How to Raise the Money You Need for a Down Payment on a Home

More than one person out of five finds coming up with a down payment the biggest challenge of the homebuying process, according to a 2013 HSH survey. Almost 23 percent of 786 respondents identified the down payment as their biggest hurdle, representing the second most common obstacle cited, behind home price at 23.5 percent. It's not easy, but you can come up with the money you need to buy a house. We've highlighted some of the best strategies below.

Estimate Your Down Payment

In December 2013, the median price for existing homes was $198,000, according to the National Association of Realtors. Under traditional lending guidelines, this equates to a 20 percent down payment of $39,600. Government and private mortgage insurance enables some low down payment mortgage options—as low as 3 to 5 percent down, as this FCIC online guide explains.

Make sure you compare multiple lenders to help identify a payment plan within your means. To keep payments manageable, test your repayment capacity by projecting a monthly savings amount equivalent to the difference between your current rent and projected mortgage.

Create a Savings Plan

Use a tool such as TimeValue's online calculator to determine how much you need to set aside per month to achieve a savings goal within a given time frame. For instance, to save up a $40,000 down payment for a $200,000 house within three years, starting with a $1,000 deposit into a 0.87 percent APY savings account, you would need to set aside $1,068.92 a month, or $246 weekly. For comparison, a 5 percent down payment of $10,000 on the same house would only require $246 per month.

Your plan should include a strategy for making your financial profile attractive to prospective lenders. Lenders consider factors such as the ratio of your down payment to your home's value, your debt-to-income ratio and your credit rating. Lenders will view you as less of a loan risk if you improve your credit score. You can do this by making monthly payments on time and keeping your balance low, ideally within 10 to 20 percent of your limit.

If you have high debt balances, look for ways to pay them down or off, thereby increasing your credit score. If you receive periodic payments from an annuity or structured settlement, you may be able to raise a lump sum of cash now by selling your future payments to a company like J.G. Wentworth. You could put this money toward reducing your balance or raising your down payment.

Start Saving

A good way to start is setting up a dedicated savings account. NerdWallet's John Gower reviews the best savings account rates available as of summer 2014.

Some homebuyers use retirement savings to raise their down payment, an option with various pros and cons. One strategy is reducing your retirement contribution temporarily, just long enough to raise your down payment. Some 401(k) plans have borrowing and hardship distribution provisions. First-time home buyers can withdraw $10,000 from an IRA without incurring a penalty, although if you have a traditional IRA, this is subject to tax.

November 2014 Incline Village Real Estate Office Rankings

by Lakeshore Realty

Lakeshore Realty is still the leader in Real Estate sales in the Incline Village and Crystal Bay real estate market. So far this year our office was involved in the sale of 143 properties around the North Shore of Lake Tahoe. 


 

9 More States hit New Price Peaks

by Lakeshore Realty

9 More States hit New Price Peaks -CoreLogic

Nine states established new price peaks in August CoreLogic said today.  The company's August Home Price Index which includes distressed sales was up 0.3 percent nationally during the month and was 6.4 percent higher than in August 2013, the 30th month in which year-over-year home prices have increased.  Along with the national increase Alaska, Colorado, Iowa, Louisiana, Nebraska, North Dakota, Oklahoma, Texas and Wyoming all had HPI numbers above their pre-crash peak and all for at least the second time.

Including distressed sales, the five states with the highest home price appreciation were: Michigan (+11.1 percent), California (+9.2 percent), Nevada (+9.2 percent), Maine (+9 percent) and West Virginia (+8.7 percent).

Excluding distressed sales, home prices nationally increased 5.9 percent in August 2014 compared to August 2013 and 0.3 percent on a month-over-month basis.  Mississippi was the only state which did not post an annual increase; its HPI was down 1.7 percent from a year earlier.  Distressed sales include short sales and real estate owned (REO) transactions.

When distressed sales were excluded the greatest appreciation on an annual basis was in Massachusetts (+9.4 percent), Maine (+9.3 percent), West Virginia (+8.9 percent), Hawaii (+8.7 percent) and South Carolina (+8.1 percent).

"The pace of year-over-year appreciation continues to slow down as real estate markets find more balance. Home price appreciation reached a peak of almost 12 percent year-over-year in October 2013 and has since subsided to the current pace of 6 percent," said Mark Fleming, chief economist at CoreLogic. "Continued moderation of home price appreciation is a welcomed sign of more balanced real estate markets and less pressure on affordability for potential home buyers in the near future."

"Home prices continue to rise, albeit more slowly, across most of the U.S.," said Anand Nallathambi, president and CEO of CoreLogic. "Major metropolitan areas such as Riverside and Los Angeles, California, and Houston continue to lead the way with strong price gains buoyed by tight supplies and a gradual rebound in economic activity."

While increasing numbers of states are establishing new price peaks the national HPI including distressed sales is still 12.1 percent below its peak in April 2006 while the HPI excluding distressed transactions 8.6 percent.

CoreLogic is forecasting that home prices, including distressed sales, will increase 0.2 percent from August to September and the annual price growth from August 2014 to August 2014 will be 5.2 percent.  With distressed sales excluded those gains will be 0.2 percent and 4.7 percent respectively.  The CoreLogic HPI Forecast is a monthly projection of home prices built using the CoreLogic HPI and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state.

  

  • Sold Properties by Lakeshore Realty Agents and Sold Lakeshore Realty Listings in November 2014

Below we have a list of properties that were sold in November 2014 by Lakeshore Realty Real Estate Agents and properties that were listed by Lakeshore Realty agents and were sold on the North Lake Tahoe, Incline Village and Crystal Bay real estate market.

1025 Apollo Way

Bed: 3
Bath: 2
Year Built: 1978
Sq. Ft.: 1530

Days on Market: 68
Sold Date: 11/14/2014
Sold Price: $510,000

Listing Agent:
Dianne Brown

 

931 Jennifer St.

Bed: 4
Bath: 2
Year Built: 1984
Sq. Ft.: 2352

Days on Market: 197
Sold Date: 11/25/2014
Sold Price: $550,000

Selling Agent:
Tyler O'Neal 

 

567 Bronco Ct. 

Bed: 3
Bath: 2
Year Built: 1983
Sq. Ft.: 2100

Days on Market: 134
Sold Date: 11/14/2014
Sold Price: $583,500

 Listing Agent:
Jamie & Kristi

 

546 Lucille

Bed: 4
Bath: 4
Year Built: 1964
Sq. Ft.: 3860

Days on Market: 111
Sold Date: 11/14/2014
Sold Price: $1,455,000

Selling Agent:
Wade Holiday 

 

To access all the Incline Village and Lakeshore Realty listings please click here. You can also contact us by email or call us at 775-831-7000. If you are in Incline Village, please visit us at 954 Lakeshore Blvd. Incline Village, NV 89451.

 

North Lake Tahoe November 2014 Real Estate Sales Comparison

by Lakeshore Realty
  • North Lake Tahoe November 2014 Real Estate Sales Comparison

The charts bellow reflect Incline Village real estate sales for the month of November in the past 5 years. These reports we're created individually for Residential Home sales and Condominium Sales.

  • Residential Home Sales Report


Click here for larger image

- Please note that the report above was created using data extracted from the MLXChange System and reflects Residential Home sales.

  • Condominium Sales Report

Click here for larger image

- Please note that the report above was created using data extracted from the MLXChange System and reflects Condominium sales.

To access all the Incline Village and Lakeshore Realty listings please click here. You can also contact us by email or call us at 775-831-7000. If you are in Incline Village, please visit us at 954 Lakeshore Blvd. Incline Village, NV 89451.

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LakeshoreRealty.com
Lakeshore Realty
954 Lakeshore Blvd.
Incline Village NV 89451
775-831-7000
800-954-9554
Fax: 775-831-6777

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