Apache is functioning normally
Fannie Mae says home prices could drop as inventory builds and if borrowing rates stay higher for longer. (iStock)
Fannie Mae says home prices could drop as inventory builds and if borrowing rates stay higher for longer. (iStock)
There’s no relief in sight for high borrowing costs as interest rate cuts are pushed further into the distance. Still, a surge in housing inventory could give buyers more options, Fannie Mae said in a report.
Mortgage rates have ticked above 7% in recent weeks and that, combined with high home prices, has rendered housing unaffordable for many. Fannie Mae is still forecasting for mortgage rates to decrease later this year to 6.6%, but borrowing costs will only drop meaningfully once the Fed dials back interest rates. That won’t come until the central bank is confident that inflation will reach a 2% target rate.
The inflation data registered this year has been higher than the Fed expected. The latest reading of the personal consumption expenditures (PCE) price index, excluding food and energy prices—a key metric the Federal Reserve tracks to measure inflation—increased by 3.7% after rising to 2% in the fourth quarter, raising concerns that inflation may be headed in the wrong direction. Fannie Mae has readjusted its expectations on inflation and now expects the Consumer Price Index to end 2024 at a 3.1% annual rate, compared to the previously projected 2.5%.
“While we still expect economic growth and inflation to moderate going forward – and, thus, for mortgage rates to drift downward – interest rates existing in a ‘higher for longer’ state seems to be an increasingly real possibility in the eyes of market participants, as well as some homebuyers and sellers,” Fannie Mae Vice President, Economic and Strategic Research Hamilton Fout said. “While we’ve recently seen evidence that some potential home sellers are becoming more acclimated to the higher mortgage rate environment and putting their homes on the market, the recent move upward in rates is yet another headwind to the recovery of home sales, and it intensifies long-standing affordability challenges for consumers.”
The silver lining for the housing market is that supply is expected to build as home sales lag, which “should help gradually thaw housing inventory and contribute to decelerating home price growth,” Fannie Mae said.
Homebuyers can find the best mortgage rate by shopping around and comparing your options. You can visit an online marketplace like Credible to compare rates, choose your loan term and get preapproved with multiple lenders at once.
SOCIAL SECURITY: COLA INCREASING BUT MEDICARE COSTS RISING TOO IN 2024
Fannie Mae has readjusted its home price projection and forecasts upwards, but there are signs that gains are slowing. Home prices are forecasted to increase 4.8% annually in 2024 and 1.5% in 2025.
Home prices are now 6.4% above their level this time last year, up from the 6% increase registered in January, according to the latest S&P CoreLogic Case-Shiller national home price index report. Across the nation, home prices increased 0.6% month-over-month after dipping the previous month. This annual and monthly growth in home prices comes as homebuyers struggle with affordability issues caused by high mortgage rates and a lack of housing supply.
“Home price growth pivoted in February, as the impact of the January 2023 Home Price Index bottom finally faded,” CoreLogic Chief Economist Selma Hepp said in a statement. “As a result, the U.S. should begin to see slowing annual home price gains moving forward.”
If you’re looking to become a homeowner, you could still find the best mortgage rates by shopping around. Visit Credible to compare your options without affecting your credit score.
MILLENNIALS ARE DESPERATE TO BUY A HOME, MOST WILLING TO PAY A MORTGAGE RATE ABOVE 7%: SURVEY
Homebuyers need to earn more today to afford a home. Based on the current interest rate of 7.22% over a 30-year mortgage, buyers today would need to earn an annual income of roughly $120,000, plus a 10% down payment, to afford a home, according to the Clever Real Estate report. However, the average American household earns about $45,000 less than that, and most first-time buyers can’t afford a 10% down payment.
Based on the median annual salary and a 10% down payment, most first-time buyers can afford a home priced at about $207,529 — 38% less than the current median-priced home. Increasing the down payment to 20% lowers the salary threshold to $98,202, but saving that amount could take years, the Clever report said.
Moreover, higher mortgage rates and home prices mean that 20% of Americans spend roughly 30% of their paychecks on monthly home loan payments, and 10% spend more than half of their pay, according to a recent NewHomesMates.com survey. Homeownership is considered affordable if households spend at most 28% of their monthly income on housing costs. The survey said those ready to take the plunge have had to sink a larger portion of their paychecks into mortgage payments and make significant cuts to everyday spending.
If you’re considering becoming a homeowner, it could help to shop around to find the best mortgage rate. Visit Credible to compare options from different lenders and choose the one with the best rate for you.
THIS IS THE #1 CITY FOR FIRST-TIME HOMEBUYERS, AND OTHER HOT US HOUSING MARKETS
Have a finance-related question, but don’t know who to ask? Email The Credible Money Expert at [email protected] and your question might be answered by Credible in our Money Expert column.
Source: foxbusiness.com
I spoke to a friend the other day who is selling their home and moving up to a bigger one.
Crazy I know! What with home prices where they are the mortgage rates more than double their early 2022 levels.
Despite this, they needed more space (and wanted a new locale) and were ready to move on from their old home.
Sure, it might not be the best time to buy a home, but it’s not always about the financials.
And even so, they’ve got a plan to offset the big jump in interest expense.
First some background on the deal. They purchased their existing home around 2012, which was basically the housing market bottom post-GFC.
This was one of the very best times to purchase a home in recent memory. Aside from seeing their home nearly triple in value, they also snagged a crazy low mortgage rate.
A 30-year fixed at 2.75%. Pretty hard to beat. The purchase price of the home was around $400,000, and is expected to sell for around $1 million today. Also pretty hard to beat!
Problem is, mortgage rates are now closer to 7% and home prices on replacement homes are comparatively high as well.
In short, if you sell today you take on a much higher mortgage rate and sales price. This means a significantly higher payment.
They can actually absorb the higher payment, but they know swapping a 2.75% mortgage for a 7.25% mortgage isn’t a great trade-off.
So here’s the plan to offset that much higher interest expense.
Now this might not be for everyone, but many home sellers today are flush with home equity.
They purchased their homes either decades ago and have no mortgage, or they purchased in the early 2010s and have seen property values skyrocket.
If we consider my friend’s $400,000 home purchase in 2012 with a 20% down payment and 2.75% mortgage rate, the loan balance would be around $222,000 today.
Assuming a sales price of $1 million, they might walk with $650,000 or more. They have elected to use some of those proceeds to put a dent in the new mortgage.
Not all of it mind you, to save for an emergency fund. But a good chunk of it.
Once their old home sells, they’ll apply a large lump sum payment to the new loan. Let’s pretend the new home was $1.2 million and they put 20% down again.
The loan amount is $960,000 and the monthly payment at 7.25% is about $6,550. Obviously, a huge jump from their old payment of about $1,300.
But they’re able to make the higher monthly payment, perhaps due to higher wages. Or maybe because they could always afford more.
Regardless, they don’t need a lower payment to make it work. And their plan is to knock down that loan balance in short order.
| $960k loan amount |
No extra payment |
$300k lump sum payment |
| Interest Rate | 7.25% | 7.25% |
| Monthly Payment | $6,548.89 | $6,548.89 |
| Loan Term | 30 years | 13 years |
| Interest Savings | n/a | $1,018,498 |
Now let’s imagine that once their old home sells, they apply $300,000 in sales proceeds to the new mortgage.
That knocks down the balance to around $657,000 just a few months into their new loan term.
Importantly, this extra mortgage payment does not lower their future mortgage payments, since that’s not how mortgages work.
They’d still have to continue making that payment of about $6,550 unless they asked the lender for a loan recast.
However, and this is a biggie, they’d save about $1 million in interest if they kept the loan to maturity.
And speaking of maturity, their loan would be paid off in about 13 years instead of 30 years.
This would effectively turn their 7.25% mortgage rate into something comparable to their original interest rate. All thanks to sending those sales proceeds toward the new mortgage.
In the meantime, they can also keep an eye on mortgage rates and if they fall enough, a rate and term refinance could be an option as well.
So they’re not necessarily stuck with the new 7.25% rate. And if rates do come down, they’ll have a much smaller outstanding loan balance.
This means their loan-to-value ratio (LTV) will be much lower, which equates to fewer pricing adjustments.
For example, their LTV might be closer to 50% instead of 80% when it comes time to refinance. Generally speaking, this means a lower mortgage rate too.
Aside from a refinance, a loan recast is also typically an option, assuming they want a lower payment.
This won’t save them as much money, nor will the mortgage be paid off early, but it brings monthly payments down by re-amortizing the loan based on the smaller balance.
But if you’re more interested in paying less interest, perhaps because you were used to holding a 2-3% mortgage, this is one way to do it. Assuming you can afford the higher monthly payment.
And it’s one way an existing homeowner with mortgage rate lock-in can free themselves without feeling bad about losing their old, cheap home loan.
Source: thetruthaboutmortgage.com
Despite persistently high interest rates, big four title firm Fidelity National Financial recorded a much stronger start to 2024 than it did a year ago.
In first-quarter 2024, Fidelity reported total revenue of $3.299 billion, up from $2.474 billion a year ago. Its net earnings were $248 million, compared to a $59 million net loss in Q1 2023. The firm attributed its stronger results to better performance from both its F&G segment and its title insurance segment.
The firm’s title segment reported $1.7 billion in revenue, up 7% year over year, and pretax earnings of $218 million, up from $157 million a year ago. These improvements came as the number of direct title orders opened in the quarter jumped from 308,000 in Q1 2023 to 315,000 in Q1 2024.
These increases came despite a 2% annual decline in the number of refinance orders opened per day and flat growth in the number of commercial orders opened per day. The number of purchase orders opened per day was up 5% on a yearly basis.
“In the first quarter, we saw normal seasonality in purchase opened orders with sequential improvement coming off the fourth quarter,” Fidelity CEO Mike Nolan told investors and analysts during the firm’s Q1 2024 earnings call on Thursday.
“In April, purchase open orders per day were up 4% over last year, but higher mortgage rates may temper purchase volumes going forward. Refis are holding steady at roughly 1,000 per day at the current floor. Commercial volumes continue to be resilient and consistent.”
Looking ahead, while Nolan believes that the housing market will rebound, he noted that the timing is “uncertain and largely dependent on lower mortgage rates.”
“In the scenario where more inventory comes into the market and rates come down, we are well positioned to capture upside to last year’s performance,” Nolan added. “Overall, higher volumes above current trough levels would help to drive stronger incremental margins and showcase the scale and efficiencies that our diversified national footprint provides, much like what we saw in 2019 through 2021.”
Faced with these challenges, Nolan said the firm remains focused on monitoring its headcount and footprint, as it looks to manage expenses.
In addition to sharing his thoughts on the housing market and macroeconomic landscape, Nolan also had some things to say about the recent title insurance proposals announced by the federal government. These include the use of attorney opinion letters in place of title insurance, changes to who pays for a lender’s title policy and waivers for title insurance on certain transactions, such as refinances.
Nolan noted that he and Fidelity “strongly support” the overall goal of making homeownership more affordable. But he added that the recent announcements and comments from the Federal Housing Finance Agency (FHFA) and the Consumer Financial Protection Bureau (CFPB) are “misguided and display a misunderstanding of the vital role in value that title insurance provides consumers and the broader economy, and the critical role it plays in helping to make the American dream of homeownership a reality.
“The title industry not only protects consumers’ property ownership rights but also the critical integrity of land records,” Nolan added. ” In addition, we are our first line of defense in helping protect buyers and sellers from real estate and wire fraud. Title insurance also insures a duty to defend them in the event of a covered claim, and title insurers have state-mandated reserves standing behind their policies, unlike attorney opinion letters or a GSE waiver.
“We welcome the opportunity to continue conversations with the FHFA and CFPB, and we’ll continue to actively engage with all stakeholders in discussing the fundamental value that title insurance and settlement services deliver to America’s homebuyers and sellers, lenders and other participants, in what for many is their most important real estate transaction.”
Source: housingwire.com
When you take out a mortgage, you can deduct the amount of money you pay on mortgage interest from your taxable income. But is home equity line of credit (HELOC) interest tax deductible, too? Put simply, it depends on when you took out the HELOC and how much mortgage debt you have.
Here’s what you need to know about HELOC tax deductions, including the requirements and limitations on HELOC tax-deductible expenses, plus how to calculate your deduction.
Whether to cover renovation costs or consolidate debt, homeowners can borrow against the value of their home to secure the necessary funding. There are two main types of home equity loans: a conventional home equity loan and a home equity line of credit, also known as a HELOC. A HELOC functions as a revolving line of credit that uses home equity — the home’s value minus the amount you still owe on the primary mortgage — as collateral.
How much you can borrow typically ranges from 75% to 85% of your home equity. Generally, lenders require a minimum of 15% to 20% equity in your home to be eligible for a HELOC.
When comparing a HELOC vs a home equity loan, a key difference is that a HELOC allows you to draw funds as you need them, up to a maximum limit, over a draw period (often 10 years). By contrast, home equity loans disburse funds all at once.
With HELOC loans, you pay interest only on the amount you withdraw. Once the draw period ends, any remaining borrowed funds and interest are repaid over a repayment period, which can vary but typically spans 10 years.
Dive deeper: What Is a Home Equity Line of Credit?
The interest paid on a HELOC could qualify as a tax deduction to lower your taxable income. If you own a home and are planning to claim a HELOC tax deduction, there are some requirements and limitations to keep in mind.
To answer “is interest on a HELOC tax deductible,” it’s essential to check that you meet certain requirements set by the Internal Revenue Service (IRS).
Since the Tax Cuts and Jobs Act of 2017, there are stricter requirements for how funds are spent to be eligible for a HELOC tax deduction. Specifically, funds from a HELOC must be used to buy, build, or improve a qualifying home — either a primary or second home. Eligible expenses can range from rewiring a house to replacing a roof or remodeling a kitchen. Note that funds must be spent on the same property used to secure the HELOC.
It’s also required that you have positive equity in the home used to secure the HELOC. If you have an underwater mortgage, meaning you owe more on the home than its value, you are not eligible for a HELOC tax deduction.
These requirements are in place for tax years 2018 through 2025. Prior to the rule change, a HELOC tax deduction could be made for interest paid on debt used for any type of personal expenses, not just home improvements.
Recommended: Cash Refinance vs. Home Equity
HELOC tax deductions are not unlimited. So, up to what amount are HELOC loans tax deductible?
The IRS allows you to deduct interest on a maximum of $750,000 in residential loan debt (or $375,000 if married filing separately), including the primary mortgage and a HELOC. For instance, if you had $700,000 left on a home mortgage loan and $150,000 in HELOC debt, you could only deduct interest on the first $750,000 of debt.
If your primary mortgage or HELOC was approved before the 2018 tax year, you may be eligible to claim interest up to the previous limit of $1 million (or $500,000 if married filing separately). Borrowers who took out a HELOC in 2017 or earlier should note that the rule change did away with the $100,000 limit (or $50,000 if married filing separately) on home equity debt for tax deductions.
The tax deduction limits on primary mortgages are based on when the mortgage loan was taken out.
If you took out a mortgage before October 13th, 1987, there is no cap on mortgage interest tax deductions. Homebuyers who got a mortgage between October 13, 1987 and December 16, 2017, can deduct interest on up to $1 million in total mortgage debt for married couples filing jointly and single filers. The limit is $500,000 for married couples filing separately.
If you took your mortgage out after December 16, 2017, you can deduct up to $750,000 (or $375,000 if married filing separately).
These limits applied to all combined mortgage debt, including first homes, second homes, and HELOC loans.
The tax deduction rules for home equity loan interest is the same as a home equity line of credit. As long as you’re using funds to buy, build, or improve a home, you can claim a tax deduction on mortgage debt up to $750,000.
Recommended: What Is a Home Equity Loan?
Prior to filing taxes, you should receive IRS Form 1098 from your HELOC and mortgage lenders. This form indicates the interest you paid on your HELOC, primary mortgage, or home equity loan in the previous year.
If you used any HELOC funding for ineligible uses, such as personal expenses or debt consolidation, you’ll need to subtract that portion to get the deductible interest.
Besides the interest you paid on your primary mortgage and HELOC loan, total up other deductions like property taxes, mortgage points, and student loan interest. Since you can only deduct mortgage and HELOC interest payments with an itemized deduction, it’s important to check that the total of your deductions exceeds the standard deduction amount.
Here are the standard deduction amounts for tax year 2024:
• Single or Married Filing Separately: $14,600.
• Married Filing Jointly or Qualifying Surviving Spouse: $29,200.
• Head of Household: $21,900.
If the mortgage and HELOC interest, plus other tax deductions you’re eligible for, exceed the above amounts, then it’s worth considering itemizing.
Recommended: Personal Line of Credit vs. HELOC
To deduct home equity loan interest, you’ll need to gather any receipts or invoices documenting how the money was spent. Be sure to keep records of transactions for eligible home renovations and improvements to verify your deductions in case you are audited by the IRS.
Once you’ve compiled all the necessary documentation, you’ll itemize your deductions using Schedule A of IRS Form 1040.
While the amount you take out through a HELOC won’t affect your property taxes, the improvements you make to your home could potentially increase the value of your home. If your renovation is substantial and involves a permit, it could be more likely to change the appraised value and potentially increase your property taxes.
You can deduct the interest paid on your HELOC if the funds are used to buy, build, or improve your home. HELOC tax deductions must be itemized, and they are only allowable for the first $750,000 in mortgage debt on qualifying primary and secondary residences.
SoFi now offers flexible HELOCs. Our HELOC options allow you to access up to 95% of your home’s value, or $500,000, at competitively low rates. And the application process is quick and convenient.
Unlock your home’s value with a home equity line of credit brokered by SoFi.
You report your HELOC interest on your taxes if you’re claiming an itemized deduction and you used your HELOC to build or improve your home.
No, a HELOC appraisal will not raise your taxes. Property taxes are based on the appraised value of your home by your local government.
No, a HELOC does not affect capital gains tax on a home sale.
Photo credit: iStock/damircudic
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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
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To obtain a home equity loan, SoFi Bank (NMLS #696891) may assist you obtaining a loan from Spring EQ (NMLS #1464945).
All loan terms, fees, and rates may vary based upon individual financial and personal circumstances and state.
You may discuss with your loan officer whether a SoFi Mortgage or a home equity loan from Spring EQ is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit brokered through SoFi. Terms and conditions will apply. Before you apply for a SoFi Mortgage, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and loan amount. Minimum loan amount is $75,000. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria.
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In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.
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Source: sofi.com
Yes, MDIs are open to anyone, even if you aren’t part of the minority demographic the bank or credit union focuses on. Keep in mind that credit unions sometimes have restrictions that could affect your ability to apply for membership. For example, you might need to live in a certain area, work for a certain employer or be related to a current credit union member.
Source: nerdwallet.com
As NAR implements changes in commission practices, mortgage professionals anticipate impacts on their roles. Mike Rankin from Clearpath Mortgage Solutions and Jennifer Gormer of Integrity Home Lending weighed in.https://t.co/s7Ln0YgVrr#mortgageindustry #mortgagebroker — Mortgage Professional America Magazine (@MPAMagazineUS) May 3, 2024 For scores of Americans, the shift to remote work has been a positive and seamless switch. … [Read more…]
U.S. homebuyers took out 90,772 mortgages for second homes in 2023, down 40% from a year earlier and down 65% from the height of the pandemic housing boom in 2021.
For the sake of comparison, mortgages for primary homes fell at half that rate; they were down 20% year over year in 2023 and down 35% from 2021.
This is according to a Redfin analysis of Home Mortgage Disclosure Act (HMDA) data covering purchases of second homes, primary homes and investment properties from 2018 to 2023. The term “vacation home” is used interchangeably with “second home” in this report.
Home purchases fell across the board last year due to low inventory, high mortgage rates, and high home prices; 2023 was the least affordable year on record. Affordability hasn’t improved in 2024; monthly housing costs are at an all-time high. Mortgages for second homes dropped more than mortgages for primary homes for several reasons:
“Soaring prices pushed down demand for vacation homes last year, both for cash buyers and those getting a mortgage–but the latter pulled back even more because high rates exacerbated high prices,” said Phoenix Redfin Premier agent Heather Mahmood-Corley. “There has been a small uptick in interest in second homes this year, mostly from cash buyers who plan to eventually move in full time. People who would need a mortgage are still sitting on the sidelines, waiting for rates to come down–especially because rates are typically even higher for second homes than primary homes.”
The share of total mortgages that went to second-home buyers also dropped last year: 2.8% of all mortgage originations in 2023 were for second homes, down from 3.6% in 2022 and 5.1% in 2021.
The vast majority of mortgages go to buyers of primary homes: They took out nearly nine in 10 (88.6%) mortgages in 2023, 87.2% in 2022 and 89.2% in 2020. The remainder go to those buying investment properties, with 8.6% of all mortgages taken out in 2023 used for investment properties, compared with 9.2% in 2022 and 5.9% in 2020.
An early look at this year’s data shows that demand for second homes hasn’t picked up in 2024. Mortgage-rate locks for second homes have been sitting near their eight-year low since the beginning of this year, according to a separate Redfin analysis of data from Optimal Blue. They declined 7.3% from a year earlier in April. By comparison, mortgage-rate locks for primary homes declined 1.6%.
Please note that Optimal Blue data is different from the HMDA data used in the rest of this report. Optimal Blue data is a leading indicator because it measures mortgage-rate locks (an agreement between a buyer and a lender that locks in a rate for a period of time; roughly 80% result in home purchases) as opposed to mortgage originations, and it includes a sample of U.S. mortgages rather than all U.S. mortgages.
So, who did buy vacation homes in 2023? We broke the data down by income level, race and age:
High earners: The vast majority of people who took out mortgages for vacation homes in 2023 were–unsurprisingly–high earners. Nearly nine in 10 (86%) second-home mortgages issued last year went to high-income buyers. Just under 3% went to low-income buyers. (The nationwide median household income of home purchasers in the HMDA data is $178,000 for high-income buyers and $65,000 for low-income buyers.)
White people: Nearly four in five (79%) vacation-home mortgages went to white homebuyers in 2023. Asian and Hispanic homebuyers come next, with 6.4% and 6.2% of new vacation-home mortgages, respectively. Buyers who identify as more than one race took out 5.4% of second-home mortgages, and Black buyers took out 2.7%.
Gen Xers: 29.5% of vacation-home mortgages went to 55-64 year olds in 2023, and another 28.6% went to 45-54 year olds (Gen Xers were 43-58 in 2023). Next come 35-44 year olds (21%), 65-74 year olds (11.4%) and people under 35 (6.9%).
Mortgage originations for second homes fell in all major U.S. metros last year. They fell most in Austin, TX, with a 62.5% year-over-year drop in 2023. Austin’s housing market slowed substantially across the board last year as the pandemic migration boom waned and housing costs climbed too high for many locals. The next-biggest declines for second-home mortgages were mostly in expensive coastal cities: San Francisco (-57.6%), New York (-53.9%), Seattle (-53%) and Nashville, TN (-51.3%).
The smallest declines in second-home mortgages were in relatively affordable metros in the middle of the country and on the East Coast: St. Louis (-25.2% year over year), Kansas City, MO (-31.1%), Providence, RI (-31.1%), Montgomery County, PA (-32.1%) and Warren, MI (-32.1%).
Second-home mortgages made up the largest share of all mortgage originations in West Palm Beach, FL, a popular destination for snowbirds and vacationers, in 2023. Just under 7% of all mortgage originations in the West Palm Beach metro last year were for second homes. Next come Orlando, FL (4.1%), Riverside, CA (4%), New Brunswick, NJ (3.9%) and Tampa, FL (3.6%). Even though the share of second-home mortgages was largest in those places of all the major U.S. metros, they were still down at least 37% year over year.
On the other end of the spectrum, second-home mortgages made up a miniscule share (about 0.5%) of total mortgages in Detroit, Montgomery County, PA, Oakland, CA, Cleveland and Dallas.
| Metro-level summary: Mortgages for second homes, 2023
50 most populous U.S. metros |
||||
| U.S. metro area | Second-home mortgage originations | Second-home mortgage originations, YoY change | Share of total mortgage originations that were for second homes | Median value of second homes |
| Anaheim, CA | 444 | -36.7% | 2.9% | $1,335,000 |
| Atlanta, GA | 734 | -45.2% | 1.0% | $435,000 |
| Austin, TX | 388 | -62.5% | 1.1% | $495,000 |
| Baltimore, MD | 222 | -45.6% | 0.8% | $515,000 |
| Boston, MA | 428 | -43.9% | 1.2% | $805,000 |
| Charlotte, NC | 454 | -42.5% | 1.2% | $445,000 |
| Chicago, IL | 448 | -48.4% | 0.7% | $365,000 |
| Cincinnati, OH | 181 | -41.8% | 0.7% | $325,000 |
| Cleveland, OH | 119 | -39.3% | 0.6% | $225,000 |
| Columbus, OH | 212 | -41.3% | 0.9% | $420,000 |
| Dallas, TX | 447 | -45.9% | 0.6% | $485,000 |
| Denver, CO | 514 | -36.2% | 1.3% | $675,000 |
| Detroit, MI | 73 | -32.4% | 0.5% | $245,000 |
| Fort Lauderdale, FL | 679 | -47.0% | 3.5% | $445,000 |
| Fort Worth, TX | 215 | -45.6% | 0.7% | $435,000 |
| Houston, TX | 1114 | -47.5% | 1.4% | $405,000 |
| Indianapolis, IN | 254 | -32.4% | 0.9% | $325,000 |
| Jacksonville, FL | 680 | -43.7% | 2.7% | $475,000 |
| Kansas City, MO | 206 | -31.1% | 0.8% | $335,000 |
| Las Vegas, NV | 877 | -49.6% | 3.1% | $455,000 |
| Los Angeles, CA | 512 | -51.1% | 1.3% | $1,305,000 |
| Miami, FL | 602 | -46.2% | 3.1% | $715,000 |
| Milwaukee, WI | 145 | -45.7% | 1.0% | $355,000 |
| Minneapolis, MN | 393 | -38.1% | 0.9% | $420,000 |
| Montgomery County, PA | 91 | -32.1% | 0.5% | $510,000 |
| Nashville, TN | 394 | -51.3% | 1.4% | $510,000 |
| Nassau County, NY | 600 | -43.6% | 2.8% | $1,725,000 |
| New Brunswick, NJ | 858 | -45.4% | 3.9% | $885,000 |
| New York, NY | 865 | -53.9% | 1.8% | $985,000 |
| Newark, NJ | 280 | -37.5% | 1.6% | $375,000 |
| Oakland, CA | 99 | -50.5% | 0.5% | $995,000 |
| Orlando, FL | 1483 | -36.9% | 4.1% | $445,000 |
| Philadelphia, PA | 124 | -50.2% | 0.7% | $355,000 |
| Phoenix, AZ | 2001 | -46.5% | 3.2% | $535,000 |
| Pittsburgh, PA | 181 | -38.2% | 0.9% | $285,000 |
| Portland, OR | 258 | -50.0% | 1.1% | $605,000 |
| Providence, RI | 363 | -31.1% | 2.7% | $775,000 |
| Riverside, CA | 1566 | -47.1% | 4.0% | $655,000 |
| Sacramento, CA | 455 | -48.8% | 2.1% | $805,000 |
| San Antonio, TX | 438 | -51.1% | 1.3% | $335,000 |
| San Diego, CA | 411 | -45.4% | 2.1% | $1,115,000 |
| San Francisco, CA | 112 | -57.6% | 1.6% | $1,355,000 |
| San Jose, CA | 69 | -35.5% | 0.7% | $1,300,000 |
| Seattle, WA | 239 | -53.0% | 0.8% | $795,000 |
| St. Louis, MO | 303 | -25.2% | 0.9% | $315,000 |
| Tampa, FL | 1618 | -41.5% | 3.6% | $425,000 |
| Virginia Beach, VA | 415 | -47.5% | 1.8% | $525,000 |
| Warren, MI | 281 | -32.1% | 1.0% | $325,000 |
| Washington, DC | 436 | -46.1% | 0.9% | $655,000 |
| West Palm Beach, FL | 1081 | -37.0% | 6.6% | $635,000 |
The 2023 data in this report is from a Redfin analysis of Home Mortgage Disclosure Act (HMDA) data covering purchases of second homes, primary homes and investment properties from 2018-2023. The term “vacation home” is used interchangeably with “second home” in this report. For this report, the median “worth” or “value” of second homes is the median property value from HMDA data itself, which is reported by the mortgage loan originator as either the home’s appraised value or sale price.
The 2024 data in this report is from a Redfin analysis of mortgage-rate lock data from real estate analytics firm Optimal Blue. Redfin created a seasonally adjusted index of Optimal Blue’s data to adjust for typical seasonal patterns and allow for simple comparisons of second-home demand before, during and after the pandemic. We define “pre-pandemic” as January and February 2020 and set the index for that period to 100. This data is subject to revision. A mortgage-rate lock is an agreement between a homebuyer and a lender that allows the homebuyer to lock in an interest rate on a mortgage for a certain period of time, offering protection against future interest-rate hikes. Homebuyers must specify whether they are applying to secure a mortgage rate for a primary home, a second home or an investment property. Roughly 80% of mortgage-rate locks result in actual home purchases.
Source: redfin.com
The client’s request seemed straightforward at first: Transform a bland guest bedroom into an elegant home office. But Barbara Elliot and Jennifer Ward-Woods, partners in the Atlanta-based design firm The Sisters and Company—part of Decorating Den Interiors, a collective of individually owned and operated design firms across the U.S.—soon saw there was a fine line to walk. The homeowner wanted the office to be distinctly masculine—a “casual gentleman’s space,” as the designers describe it. But because the room is situated just off the foyer and visible immediately upon walking in the front door, the decor still had to be cohesive with the rest of the home.
What’s more, though the office would serve as a retreat with an air of privacy, it had to simultaneously function as a somewhat public space, since its attached bath doubles as the home’s guest bathroom. What they needed to achieve here, they realized, was a paradox: a sanctuary that visitors nevertheless would feel welcome to enter.
Elliot and Ward-Woods solved the puzzle with a clever design that encompasses a fully functional workspace, yet looks like a luxurious (if mini) living room. Here are the guiding principles behind their transformation.
The pair immediately dismissed the idea of a traditional, imposing executive desk—they wanted the room to feel open and inviting, not blocked off by a behemoth chunk of wood. Instead, they commissioned a wall of custom cabinetry that could accommodate the owner’s dual monitors (creating a space truly made to work in) as well as provide storage, leaving them free to select a desk for appealing aesthetics rather than pure practicality. Without weighty stacks of drawers on the sides, the wood-and-lacquer model they chose “floats” off the floor on slim legs, and its rounded-off corners and slim shape call to mind a high-design table rather a mere place for paperwork.
Similarly, while the bolster-back chairs—“our showstoppers for the space,” Elliot says—face the desk, at the ready for meetings, their eye-catching pattern and delicate hammered-metal frames feel just as suited to giving party guests a place to perch. To further that “come right in” vibe, Elliot and Ward-Woods placed a pedestal cocktail table nearby—a subtle signal that this room is not all work and no play.
The chair fabric, with its mix of black and earth tones, was also the jumping-off point for the room’s color palette, which the designers anchored with bold black paint for the walls and cabinetry. “I think it has a moody, casual, elegant feel to it,” Ward-Woods says. “It definitely screams ‘masculinity.’”
Style shelves to be seen
Another of the designers’ techniques for making the room both private and welcoming was to confine office supplies and other utilitarian items to closed storage. This allowed them to devote the open shelves to beautiful decoration—not just a place to put stuff, but an artfully curated display. Wallpaper threaded with quartz shimmers on the backs of the shelves, reflecting the colors in the room and achieving a textural effect that’s an ideal backdrop for the stone and ceramic art pieces and accents. The end result is a space that, from the vantage point of the guest chairs, telegraphs that it’s an office only via the two monitors.
Deliver a little dazzle
The client wanted the office’s bathroom—also the guest bathroom—to “feel like you were in a swanky nightclub,” Ward-Woods says. Achievement unlocked: The black-and-white color scheme, floor-to-ceiling dimensional tile, and dramatic crystal teardrop pendants are clearly meant to be seen and appreciated, and no one entering this splashy space could feel as though they’re intruding on someone’s personal turf. Especially not when the grand, backlit mirror and beckoning under-vanity lights turn on automatically when someone enters—one more ingenious detail that makes this home office as much about pleasure as business.
Source: elledecor.com
Welcome to the charming city of Binghamton, NY. With its rich industrial heritage, vibrant arts scene, and stunning natural landscapes, Binghamton offers a unique blend of urban amenities and small-town charm. So whether you’re searching for the perfect apartment in downtown Binghamton or eyeing a cozy farmhouse in the surrounding area, you’ve come to the right place.
In this Apartment Guide article, we’ll cut to the chase, breaking down the pros and cons of moving to Binghamton. Let’s get started and see what awaits in this picturesque city nestled in the heart of upstate New York.
Binghamton offers a relatively affordable cost of living compared to other cities in New York state. The average rent in spring 2024 is only around $1,000 for an apartment. Housing costs, including home buying prices, are reasonable, allowing residents to enjoy a comfortable lifestyle without breaking the bank. This makes Binghamton an attractive option for anyone looking to stretch their budget while still enjoying the amenities of a city.
Binghamton has limited public transit coverage compared to larger cities. There is bus service within the city but it is not extensive. Busses are also available to travel between Binghamton and other cities in the area such as Albany, Buffalo, and New York City. However, the lack of robust public transport within Binghamton itself can pose challenges for residents who rely on public transportation for their daily commutes.
Binghamton boasts a rich cultural heritage, with a strong emphasis on the arts and history. The city is home to several museums, art galleries, and cultural institutions that showcase the region’s diverse heritage. The Bundy Museum, Phelps Mansion and Roberson Museum and Science Center are especially beloved. Residents can immerse themselves in local art, music, and theater, as well as explore the city’s historical landmarks and architecture, providing a deep sense of cultural appreciation and community pride.
Binghamton experiences harsh winters with heavy snowfall and cold temperatures, which can be challenging for residents who are not accustomed to extreme weather conditions. Snow removal and road maintenance become significant concerns during the winter months, impacting daily routines and travel logistics.
Surrounded by natural beauty, Binghamton offers abundant outdoor recreational opportunities. The Ganondagan Hiking Trails are a highlight. They allow hikers to learn about the history of the area on three different themed hiking trails. Residents also enjoy trekking, biking, and picnicking in the nearby state parks and nature reserves. Confluence Park, at the intersection of the Susquehanna and Chanango Rivers, is a well-loved location for a stroll on nice days. The city’s proximity to the Finger Lakes region also provides access to water-based activities such as boating, fishing, and swimming, making it an ideal location for nature enthusiasts and outdoor adventurers.
Access to specialized healthcare services and medical facilities may be limited in Binghamton, requiring residents to travel to neighboring cities for certain medical treatments and healthcare needs. This can create logistical challenges and impact the overall accessibility of healthcare resources within the local community.
Binghamton’s diverse dining scene offers a wide range of culinary experiences, from cozy cafes and family-owned eateries to upscale restaurants and international cuisine. Food enthusiasts can savor a variety of flavors and dishes, including farm-to-table fare, ethnic delicacies, and innovative gastronomic creations, making the city a haven for foodies and those who appreciate culinary diversity. Residents love The Grove for casual eats and live music. For special occasions, Remlik’s serves gorgeous meals in a historic home.
While Binghamton offers a lower cost of living, the city also has limited job opportunities compared to larger metropolitan areas. Employment options may be more restricted, especially in certain industries, requiring residents to carefully consider their career prospects and potential for professional growth within the local job market. Major employers in the area include Lockheed Martin and Binghamton University.
Binghamton fosters a strong sense of community, with residents actively engaging in local events, volunteer opportunities, and neighborhood initiatives. The city’s close-knit neighborhoods and friendly atmosphere create a supportive and inclusive environment, where individuals can form meaningful connections and contribute to the overall well-being of the community.
Binghamton experiences distinct seasonal fluctuations, with hot and humid summers followed by cold and snowy winters. These weather extremes can pose challenges for residents, impacting outdoor activities, energy costs, and overall comfort levels throughout the year.
Binghamton provides residents with access to quality higher education institutions. Binghamton University and SUNY Broome Community College are both located in the city. Students and lifelong learners can take advantage of academic and cultural resources, as well as attend lectures, performances, and events that enrich the intellectual and social fabric of the city.
Binghamton experiences urban sprawl and traffic congestion in certain areas, particularly during peak commuting hours. The city’s infrastructure and roadways may become congested, leading to longer travel times and potential frustrations for residents navigating through busy urban corridors.
Binghamton offers convenient transportation options within the city such as bike lanes, and pedestrian-friendly pathways. The city’s accessibility allows residents to navigate the urban landscape and connect with neighboring communities, enhancing overall mobility and connectivity.
Have you been asking yourself, “Should I move to Chattanooga?” Located along the Tennessee River and surrounded by picturesque mountains, Chattanooga offers a blend of natural beauty, thriving cultural scene, and Southern charm. But is it the right fit for you? Before you start packing boxes, let’s take a closer look. In this article, we’ll dive into the pros and cons of living in this city to help you decide if the Scenic City should be your next home. Let’s jump in.
Walk Score: 29 | Bike Score: 35 | Transit Score: 18
Median Sale Price: $316,000 | Average Rent for 1-Bedroom Apartment: $1,400
Chattanooga neighborhoods | Houses for rent in Chattanooga | Apartments for rent in Chattanooga | Homes for sale in Chattanooga
Chattanooga is renowned for its breathtaking natural scenery. The city is surrounded by mountains and waterways, offering endless outdoor activities. From hiking on Lookout Mountain to kayaking on the Tennessee River, residents have ample opportunities to enjoy nature. The iconic Walnut Street Bridge, one of the world’s longest pedestrian bridges, provides stunning views and a unique walking experience.
With a Transit Score of 18, the city’s public transportation system is not as developed as in larger metropolitan areas. While there are buses and a free electric shuttle in the downtown area, options are limited, especially outside the city center. This can make it challenging for those without personal vehicles to navigate the city efficiently.
Chattanooga offers an affordable cost of living that’s 9% lower than the national average. Additionally, housing prices are relatively low with a median sale price about $100,000 less than the national average. This allows many locals to afford a comfortable lifestyle without the financial strain experienced in larger urban centers. This affordability extends to groceries, utilities, and entertainment, making it an attractive place to live for many.
Despite its moderate size, Chattanooga faces traffic congestion, especially during rush hours. Although the city’s infrastructure tries to keep up with the growing population, major roads and intersections often see heavy traffic. This is particularly evident on the I-24 corridor, which is notorious for traffic jams.
Chattanooga is known as the “Gig City” for its ultra-fast internet. The city was one of the first in the U.S. to offer 1 Gbps internet speeds citywide. This makes it an attractive location for tech companies and remote workers seeking reliable and fast internet connectivity, fostering a growing tech community.
In the past, Chattanooga has faced challenges with air quality. Industrial activity and vehicle emissions contributed to pollution, which was exacerbated by the city’s geographical location in a valley. Today, pollution and wildfire smoke can lead to smoggy conditions, particularly in the summer months. This is something to consider for those with respiratory conditions or any one concerned with air quality levels.
Chattanooga is often praised for its strong sense of community and the friendliness of its locals. Neighborhoods host regular events, fostering a sense of belonging and togetherness. One specific example is the annual Riverbend Festival, a multi-day event that brings people from across the city together to enjoy live music, food vendors, and fun activities. This welcoming atmosphere makes it easy for newcomers to integrate and form lasting connections, enhancing the overall quality of life.
Chattanooga experiences a wide range of weather conditions, from hot, humid summers to occasionally cold winters. The summer heat can be intense, making outdoor activities uncomfortable during peak daytime hours. Winter brings its own challenges, with sporadic snowfall and ice that the city is often unprepared for.
The city has a rich historical heritage, from its critical role in the Civil War to the famous Chattanooga Choo Choo. There are plenty of museums, historical sites, and monuments scattered throughout the city offering residents and visitors the opportunity to take a deep dive into the past. This historical richness adds a unique layer to the city’s cultural fabric.
For those seeking a bustling nightlife, Chattanooga might fall short. While there are bars, live music venues, and restaurants, the options are more limited compared to larger cities. The nightlife scene tends to be quieter and more subdued, which might not meet the expectations of all residents.
The city boasts a vibrant arts scene that caters to a variety of tastes. The Hunter Museum of American Art displays a remarkable collection, while the Chattanooga Symphony and Opera provide high-quality musical performances. The Bluff View Art District offers galleries, shops, and cafes in a picturesque setting, making art accessible to everyone.
Source: rent.com