31
May 18

Will Home Prices Fall as Mortgage Rates Rise?

Will Home Prices Fall as Mortgage Rates Rise? | Simplifying The Market

Mortgage interest rates have increased by more than half of a point since the beginning of the year. They are projected to increase by an additional half of a point by year’s end. Because of this increase in rates, some are guessing that home prices will depreciate.

However, some prominent experts in the housing industry doubt that home values will be negatively impacted by the rise in rates.

Mark Fleming, First American’s Chief Economist:

“Understanding the resiliency of the housing market in a rising mortgage rate environment puts the likely rise in mortgage rates into perspective – they are unlikely to materially impact the housing market…

The driving force behind the increase are healthy economic conditions…The healthy economy encourages more homeownership demand and spurs household income growth, which increases consumer house-buying power. Mortgage rates are on the rise because of a stronger economy and our housing market is well positioned to adapt.”

Terry Loebs, Founder of Pulsenomics:

“Constrained home supply, persistent demand, very low unemployment, and steady economic growth have given a jolt to the near-term outlook for U.S. home prices. These conditions are overshadowing concerns that mortgage rate increases expected this year might quash the appetite of prospective home buyers.”

Laurie Goodman, Codirector of the Housing Finance Policy Center at the Urban Institute:

“Higher interest rates are generally positive for home prices, despite decreasing affordability…There were only three periods of prolonged higher rates in 1994, 2000, and the ‘taper tantrum’ in 2013. In each period, home price appreciation was robust.”

Industry reports are also calling for substantial home price appreciation this year. Here are three examples:

Bottom Line

As Freddie Mac reported earlier this year in their Insights Report, “Nowhere to go but up? How increasing mortgage rates could affect housing,”

“As mortgage rates increase, the demand for home purchases will likely remain strong relative to the constrained supply and continue to put upward pressure on home prices.”

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31
May 18

Does Stockholm Have the Most Instagrammable Train Stations in the World?

While Sweden might not have the most extensive public transit system, it certainly might have the prettiest—which some people are actually calling the longest art gallery in the world. Nearly 90% of Stockholm’s train stations feature an art installation of some kind, and if these subway stops were part of our commute one thing is for sure: We’d only ever be late to work from gawking and trying to get the perfect shot of each and every one.

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31
May 18

Get the Look: Little Women's Classic Americana Style Made Modern

There’s a scene in the new PBS adaptation of Little Women that takes place at the Walden Pond Boathouse. The girls are having a picnic outing with friends. They’re running through a lush forest, down to the bank of the pond and jumping into wooden canoes. Beth sits on a blanket on the shore, with a cute boy and a picnic basket. The colors are bright and vibrant, like the girls’ moods. This is my ideal type of summer outing… just subtract the petticoats and add a bikini and rosé. #summergoals

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31
May 18

Floral Print Trends Through the Decades

You can’t really go wrong with a floral accent or two in a room. Of course, they sometimes feel a little too saccharine, plus there’s crazy granny potential there, too. And you definitely don’t want to go overboard, unless you’re trying to live in a Liberty of London or Laura Ashley ad.

But generally speaking, a flower patterned pillow, chair, dish, piece of art—heck, wall covering or even carpet—can be a classic item that will have tons of decorative bang for your buck and staying power to boot. And around this time of year, there’s nothing better than bringing a little bit of floral whimsy into your home.

But floral motifs have actually evolved quite a bit over the years, and we thought it would be fun to travel down decorative memory lane a bit to see where florals have been, are now, and may be going in the design future.

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31
May 18

This Los Angeles Home's French Doors Will Floor You — House Tour

Name: Tracy Bunkoczy
Location: Koreatown — Los Angeles, California
Size: 1,170 square feet
Years lived in: 1 year, owned

A massive leak in her last home—a beautiful Silver Lake rental apartment— forced design executive Tracy Bunkoczy to move a year ago. She had to find a new place to live in a hurry, so when she found this gem—a condo in a gorgeous refurbished French Normandy style building in Koreatown—she decided go all in and buy rather than commit to a new lease. It’s a move that meant she had to decorate her new home without spending a ton of money. “If I had unlimited resources I would definitely make some different choices, but I had to create this environment on a budget,” Tracy explains.

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31
May 18

How to Fit a Nursery in a Small Space

From sleepless nights spent caring for your crying baby to being on bottle and diaper duty 24/7, parenthood is one of the most challenging milestones you may ever experience—and the last thing a new parent should worry about is setting up the nursery.

In a perfect world, you’d have an expansive wing for your bundle of joy to crawl, coo, and play in. But in reality? You’re probably working with a crammed room (if you’re lucky enough to have a dedicated room at all). If square footage is at a premium, check out these space-saving tips.

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30
May 18

Millennials Are Skipping Starter Homes for Their Dream Homes

Millennials Are Skipping Starter Homes for Their Dream Homes | Simplifying The Market

A new trend has begun to emerge. With home prices skyrocketing in the starter home category, many first-time homebuyers are skipping the traditional starter homes and moving right into their dream homes.

What’s a Starter Home?

According to the National Association of Realtors (NAR), simply put, a starter home is a one or two-bedroom home (sometimes even a small, three bedroom).Prices vary widely by market but starters on average cost $150,000 to $250,000 while trade-up and premium homes cost upwards of $300,000.”

Finding Their Forever Homes Now

A recent CNBC article revealed that there are many factors that delayed older millennials (ages 25-35) from buying a home earlier in their lives. The aftereffects of the Great Recession teaming up with larger education costs forced many to either remain living in their parent’s homes or to rent.

With the economy continuing to improve, many millennials have been able to break into better-paying jobs which has helped spur down payment savings. As the dream of homeownership comes closer to reality, many millennials are saving for their forever homes.

According to the latest statistics from NAR, 30% of millennials bought homes for $300,000 or more this year (up from 14% in 2013). Diane Swonk, Chief Economist at Grant Thornton weighed in saying, “They rented for longer. Now they’re going to where they want to stay.”

More and more millennials are settling down, getting married, and starting families, which is a huge factor driving them to look for larger homes.

Increased competition in the starter home market has also been a driving force in waiting to afford their dream homes. Inventory in the starter home market is down 14.2% from last year, according to research from Trulia. This has driven prices up and has led to bidding wars.

Many first-time buyers who were originally looking for starter homes are realizing that for just a little bit more of an investment, they could afford trade-up or premium homes instead.

Bottom Line

If you plan on purchasing your first home this year, let’s get together to determine how much house you can afford. You may be pleasantly surprised.

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30
May 18

The Dirtiest Place In the Airport Apparently Is Not the Bathroom

Have you ever gotten sick after traveling? There is a pretty high chance you’re going to answer that question yes. Airplanes, airports, cabs, and buses are always full of germs. On top of that, when you fly, it opens up your sinuses and that is like inviting a cold to take home!

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30
May 18

A Converted Commercial Loading Dock Turned Modern Home — House Tour

Name: Jasmine Waheed and cat Barney
Location: Garment District — Montreal
Size: 1,500 square feet
Years lived in: 2 years, 8 months, owned

After traveling across—and falling in love with—Canada, Jasmine Waheed decided to move from London to Montreal 15 years ago. Her background is in graphic design, but upon arriving in Montreal, she decided to make the switch to photography. “When I moved to Montreal I discovered that the way design agencies work here was very different to how it worked in London,” she reveals. “The design circuit here is much smaller and not as specialized as it is in London. I was fortunate enough not to have had to work for the first few years that I moved here, so I decided to diversify my photography, maintaining the music event photography that I enjoy, but moving into photographing food more than portraiture in recent years. I still do some design work but really only for the underground electronic music scene that I am involved in.”

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30
May 18

The Pros and Cons of Exposed Bulbs

Exposed bulbs are often a polarizing source of debate when it comes to lighting. Naysayers teeter-totter between a bare bulb’s inability to produce enough light and its tendency to be too harsh, while fans of exposed bulbs are blinded by their luminescent je ne sais quois. Whether or not this look is for you, we got the skinny from those living with bare bulbs, as well as a few options to make them work in your home.

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