REAL ESTATE NEWS
I have the deets just for you! Below are four selected articles to keep you in the loop. Not only to keep you inform, but to give you tips to stay proactive facing the changing market.
1. Home Valuations are rising faster than income. Here’s why that could hurt homeowners’ wallets
Home prices have been rising faster than incomes, putting a strain on homeowners. As home values increase, property taxes and home insurance are also increasing. More than 1 in 4 homeowners with mortgages are considered "cost-burdened," meaning they spend over 30% of their income on housing costs.
Achlab Thoughts
The data provided in the article is very insightful. It best to take a proactive approach in understanding all the ownership costs upfront, and not overextend your budget. In order to better manage the financial risks of rising home prices.Here are few recommendations tips to mitigate the risk
For Homebuyers:
Lean on your realtor to get a full history of costs associated with owning the home, including property taxes, insurance, utilities, some cases local fire tax.
Ask if the state has any laws restricting property tax increases.
Don't max out your budget - leave room for potential surprises and rising costs. Go a little lower than the maximum mortgage you qualify for.
For Current Homeowners:
Reach out to the Department of Housing and Urban Development to see if you qualify for any assistance programs.
Contact your mortgage servicer to possible opportunity they can work out a repayment plan or provide a loan modification.
Shop around, compare quotes and interview multiple insurance companies to find the best rates.
2.Pending Home Sales Post Surprise Jump in June Due To Rising Number of Home Listings –MarketWatch
The National Association of REALTORS® (NAR) reported that pending home sales, which indicate future existing-home sales, rose unexpectedly by 4.8% in June. This was attributed to an increase in housing inventory, leading to less intense multiple offers and more favorable conditions for buyers. The report suggests the housing market may be starting to shift, with more balanced supply and demand. This could provide relief for buyers who have faced intense competition and limited options in recent years.
Achlab Thoughts
The report provides an optimistic outlook, Which suggests home sales may increase in the coming months with more homes being listed. The housing market may be starting to stabilize after a period of low inventory and high competition among buyers.
For Homebuyers:
Remain patient, as inventory levels are expected to improve in the coming months.
Be prepared to act quickly, but avoid getting caught up in intense bidding wars as the market may be shifting.
For Real Estate Agents:
Prepare for a potential influx of new listings, requiring updated marketing and negotiation tactics.
Educate buyers on purchasing their dream home, helping them navigate the process effectively.
3.PRESS ROOM: National Park Service awards $10.6 million to preserve America’s historically Black colleges and universities
The National Park Service has awarded $10.6 million in grants to 15 projects across 8 states to preserve historic structures on the campuses of Historically Black Colleges and Universities in (HBCUs). The grants will fund critical rehabilitation work aim to preserve the vibrant histories of America's HBCUs.
Achlab Thoughts
This is exciting news for the selected HBCUs and as time passes for future HBCUs. Preserving not only the building structures it also helps protect the legacy and culture richness.
For HBCU Grant Seekers:
Identify historic buildings on your campus that are eligible for the HBCU preservation grants
Develop detailed plans for the rehabilitation and restoration of these structures
Highlight the architectural, cultural, and historical importance of the buildings
For Investors:
Consider investing in or supporting the preservation efforts of historic HBCU buildings and campuses
4.County rent cap could have low impact
A proposed rent cap in Prince George's County could have a limited impact in College Park, as up to 65% of apartment buildings were constructed after 2000 and would be exempt from the 3% yearly cap.
Achlab Thoughts
If used effectively rent caps can be benefital but also tricky. Rent cap aims to protect tenants from steep rent increases, however landlord groups oppose rent control, market conditions does not reflect unexpected cost for property maintenance, without the increases it could lead to neglecting building maintenance, and discourage investors to the area.
For Renters:
Research if your apartment building is exempt from the 3% rent cap due to being constructed after 2000. This will determine if you are protected by the new policy.
If your building is covered by the rent cap, be aware of the maximum allowable increase each year (3% plus inflation, up to 6%) and monitor your landlord's proposed rent
For Landlords:
Stay informed on the details of the rent cap legislation
Review your property profiling to determine which properties are exempt and the allowable increase parameters.
Avoid the temptation to automatically raise rents to the maximum cap limit each year, even if permitted, as this could alienate long-term tenants.
OVERALL
We are seeing movement in mortgages rates more reports supporting rates cuts. My predictions this will be slow downward trend until cuts takes place. While homes are increasing in maintenance cost, property taxes, insurance for homeowners. This could lead to homeowner on fence to become renters. Grants for HBCUs’ historical rehabilitation resulting in legacy preserved with richness. As the market conditions fluctuate renters will feel more pressure if rent caps are no longer available.
All in all, have a great week everybody
-Achlab
