17
Jan 19

Last Chance! Homes are a Bargain Compared to Historic Norms

A loaf of bread used to be a nickel. A movie ticket was a dime.  Not anymore. Houses were also much less expensive than they are now. Inflation raised the price of all three of those items, along with the price of almost every other item we purchase.

The reason we can still afford to consume is that our wages have also risen over time. The better measure of whether an item is more expensive than it was before is what percentage of our income it takes to purchase that item today compared to earlier. Let’s look at purchasing a home.

The COST of a home is determined by three major components: price, mortgage interest rate, and wages. The big question? Are we paying a greater percentage of our income toward our monthly mortgage payment today than previous generations? Surprisingly, the answer is no.

Historically, Americans have paid just over 21% of their income toward their monthly mortgage payment.

Though home prices are higher than before, wages have risen as well. And, the most important component in the cost equation – the mortgage rate – is dramatically lower than it was in the 1970s, 1980s, 1990s, and 2000s.

Today, according to the latest Home Affordability Index just released by the National Association of Realtors, Americans are paying 17.4% of their income toward their mortgage payment. That is much lower than the 21% average previous generations have paid.

Last Chance! Homes are a Bargain Compared to Historic Norms | Simplifying The Market

Bottom Line

The cost of purchasing a home today is a bargain compared to previous generations when we look at it from a percentage of income basis. However, with mortgage rates expected to increase and home prices continuing to appreciate, that will not always be the case. Whether you are buying your first home or looking to move-up to a more expensive home, purchasing sooner rather than later probably makes sense.

Powered by WPeMatico


17
Jan 19

10 Affordable & Easy Ways to Add Lighting to a Closet Without Wiring

I’ve always preferred living in pre-1940s buildings for all their historical and architectural charm (so far, six different places and counting, ranging from 1907 through 1931). But my affinity for the old doesn’t always align with my modern day needs, most notably the absence of overhead lighting inside closets.

READ MORE »

Powered by WPeMatico


16
Jan 19

Selling Your Home? Make Sure the Price is Right!

Selling Your Home? Make Sure the Price is Right! | Simplifying The Market

If you’ve ever watched “The Price is Right,” you know that the only way to win is to be the one to correctly guess the price of the item you want without going over! That means your guess must be just slightly under the retail price.

In today’s shifting real estate market, where more inventory is coming to market and home values are projected to appreciate at lower rates, homeowners will not be able to price their homes as aggressively as they were able to just last year.

They will have to employ the same strategy: be the closest without going over!

As we have explained before, pricing your home at or slightly below market value actually increases the number of buyers who will see your home in their search!

Over the last six months, more inventory has come to market while the months’ supply of inventory available has dropped. This means that the demand for homes to buy is still very strong throughout the country!

Homeowners who make the mistake of overpricing their homes will eventually have to drop the price. This leaves buyers wondering if the price drop was caused by something wrong with the homes when in reality nothing was wrong, the price was just too high!

Bottom Line

If you are thinking about listing your home for sale this year, let’s get together to properly price your home from the start!

Powered by WPeMatico


16
Jan 19

'Extreme Makeover: Home Edition' Is Heading to HGTV

Get ready to “move that bus”… all the way to HGTV.

READ MORE »

Powered by WPeMatico


16
Jan 19

Your Best Sleep Ever: We Snooze-Tested Amazon's Top 5 Best-Selling Pillows…And Discovered the Perfect Pillow for All Types of Sleepers

We’ve all had those moments where we lie awake in bed, finding it impossible to find any semblance of comfort. Every glance at the clock that’s quickly approaching the dreaded hour you’re supposed to be waking up leads to a count down. “If I fall asleep right now, I can get 5 hours…4 hours…3 hours…” ::cue sounding : If you find yourself in this tortuous predicament often, it might be time to rethink your sleep strategy…or at the very least, your pillow.

READ MORE »

Powered by WPeMatico


16
Jan 19

Netflix Announced a Price Increase, and The Internet Isn't Happy About It

Netflix is prepping to increase its price tag, and not everyone’s thrilled about it.

READ MORE »

Powered by WPeMatico


16
Jan 19

Join the Apartment Therapy Home Team Panel!

At Apartment Therapy and our sister site The Kitchn, we walk inside real homes all across the world every single day. Seeing how people live—and how their spaces reflect who they are—is at the core of what we do. Now, we’ve invented a new way to understand how our readers live at home, with the Apartment Therapy Home Team Panel.

READ MORE »

Powered by WPeMatico


16
Jan 19

Before and After: This House Feels Bigger After a Decor and Floor Plan Refresh — House Tour

Name: Maggie Smoller and family
Location: Pittsburgh, Pennsylvania
Size: 1,600 square feet
Years Lived In: 4 years, owned

Since the day we closed on this house four and a half years ago, we’ve been putting our stamp on it room by room. As self-proclaimed homebodies, there’s nothing we love more than staying in and getting cozy, and it was so important to create a home that we loved being in and living in.

READ MORE »

Powered by WPeMatico


15
Jan 19

Buying a Home Young is the Key to Building Wealth

Homeowners who purchase their homes before the age of 35 are better prepared for retirement at age 60, according to a new Urban Institute study. The organization surveyed adults who turned 60 or 61 between 2003 and 2015 for their data set.

“Today’s older adults became homeowners at a younger age than today’s young adults. Half the older adults in our sample bought their first house when they were between 25 and 34 years old, and 27 percent bought their first home before age 25.”

The full breakdown is in the chart below:

Buying a Home Young is the Key to Building Wealth | Simplifying The Market

The study goes on to show the impact of purchasing a home at an early age. Those who purchased their first homes when they were younger than 25 had an average of $10,000 left on their mortgage at age 60. The 50% of buyers who purchased in their mid-twenties and early-30s had close to $50,000 left, but traditionally had purchased more expensive homes.

Buying a Home Young is the Key to Building Wealth | Simplifying The Market

Many housing experts are concerned that the homeownership rate amongst millennials, those 18-34, is much lower than previous generations in the same age range. The study results gave a great reason why this generation should consider buying instead of signing a renewal on their lease:

“As people age into retirement, they rely more heavily on their wealth rather than their income to support their lifestyles. Today’s young adults are failing to build housing wealth, the largest single source of wealth, at the same rate as previous generations.

While people make the choice to own or rent that suits them at a given point, maybe more young adults should take into account the long-term consequences of renting when homeownership is an option.”

Bottom Line

If you are one of the many young people debating whether buying a home this year is right for you, let’s get together to discuss your options!

Powered by WPeMatico


15
Jan 19

JetBlue Wants To Send You On A Free Trip to Puerto Rico To See ‘Hamilton’

Have the past three years been filled with everyone around you raving about the life-changing effect “Hamilton” has had on their existence? Meanwhile, you’re entering the lottery on a daily basis, just hoping that one day you’ll be the chosen one take ownership of a beautiful $10 ticket. Well, let JetBlue enhance that experience by shipping you off to Puerto Rico to see the newly debuted “Hamilton” tour cast—but entirely for free.

READ MORE »

Powered by WPeMatico