From Southern hospitality and rich history to BBQ cuisine and seaside towns, Alabama is one of the many great places to reside along the Gulf Coast. With magnificent waves and sandy coves, boating and kayaking, fishing and sightseeing, these scenic Alabama beach towns are some of the best you’ll find. Whether you’re looking to relocate to Alabama or one of the many Alabamians looking for a beachside property, you have lots of options to choose from.
But if you’re not sure what beach towns in Alabama to check out, we’ve got you covered. To help you find the right coastal area, Redfin has put together a list of 5 beach towns in Alabama from Daphne to Gulf Shores. Let’s explore some of the state’s top beaches, listed in alphabetical order, and you might just be tempted to move there.
#1: Daphne
Median home price: $302,670 Average rent for a one-bedroom apartment: $1,260 Daphne, AL homes for sale Daphne, AL apartments for rent
Home to roughly 28,800 people, Daphne is the first on our list. If you’re considering moving to this beach town make sure to explore Village Point Park Preserve, spend the day at Bayfront Park, and check out the downtown area.
#2: Dauphin Island
Median home price: $485,000 Dauphin Island, AL homes for sale Dauphin Island, AL apartments for rent
Another one of Alabama’s great coastal towns to consider buying a home in is Dauphin Island, where there are just about 1,800 residents. There are plenty of beaches to visit like Bienville Beach, Dauphin Beach, East End Public Beach, Hernando Beach, and West End Public Beach. You can also check out Indian Shell Mound Park, stroll through downtown, and visit Fort Gaines.
#3: Fairhope
Median home price: $470,000 Fairhope, AL homes for sale Fairhope, AL apartments for rent
With about 23,100 residents living in Fairhope, there are lots of beaches to explore on a sunny Alabama day. For example, you can check out Orange Street Pier Beach, North Beach Park, and South Beach. If you find yourself moving to Fairhope, make sure to stroll through the Fairhope Pier, check out the shops and restaurants downtown, and explore the Montrose Historic District.
#4: Gulf Shores
Median home price: $487,500 Gulf Shores, AL homes for sale Gulf Shores, AL apartments for rent
Home to beautiful beaches like Gulf Shores Beach, Gulf State Park, and Lake Shelby, there are countless places to spend a beach day in the town of Gulf Shores. About 15,700 people live in Gulf Shores, where you can also visit Gulf State Park and check out Shelby Lakes, grab a meal along Portage Creek, and explore the shops by Gulf Shores Beach.
#5: Orange Beach
Median home price: $733,750 Orange Beach, AL homes for sale Orange Beach, AL apartments for rent
The quaint coastal town of Orange Beach has about 8,300 residents, making it a great place to consider moving to. You’ll find stunning beaches such as Orange Beach. Living in Orange Beach, you can explore The Wharf and see a show at The Wharf Amphitheater, spend the day at Adventure Island, and hang out along the FloraBama border.
Note, this list is not comprehensive of all the beach towns in Alabama. Median home sale price data from the Redfin Data Center during June 2023. Average rental data from Rent.com June 2023. Population data sourced from the United States Census Bureau.
An eye-popping structure in Glastonbury, CT, that appears to be floating among the trees is this week’s most popular home on Realtor.com®.
The Cedar Bridge House was designed by architect Wilfred Armster and appears to hover some 50 feet above the wooded lot, anchored to a steel support structure above the garage.
Other offerings you clicked on this week include an affordable tiny home in Colorado, a retro residence in Vermont, and the former home of the Galveston Wedding Chapel in Texas.
For a full look at this week’s 10 most popular homes, keep on scrolling.
Price: $829,000 Why it’s here: This Normandy-style Tudor features many period details: casement, boxed-out windows; stone parapet walls; exposed-beam ceilings; preserved hardwood flooring; and even a window seat.
Offering five bedrooms, this petite castle was built in the 1930s. The living room comes with a stone fireplace and built-in seating.
On the market for just 11 days, the home is already pending sale.
———
Price: $210,000 Why it’s here: This adorable and affordable tiny home boasts a modern interior.
Built in 2021, this two-bedroom abode is part of a small-home community. Offering just 670 square feet of living space, the home is bright and airy and features many modern amenities. A floor-to-ceiling electric fireplace can be found in the combined living-dining area.
The first-floor primary bedroom has direct access to a patio. A spiral staircase leads to a second bedroom/loft area. The property is pending sale.
———
Price: $149,000 Why it’s here: What a deal! This modestly priced farmhouse needs some TLC, but there’s a lot of charm and character.
The three-bedroom home was built in 1878. Period details include wide-plank floors and arched ceilings. Recent updates include a new metal roof and a modernized kitchen with lots of cabinet space.
The 2.6-acre lot comes with a detached barn with a workshop. The property is pending sale.
———
Price: $499,000 Why it’s here: The bland exterior of this home hides a surprising log cabin interior.
The three-bedroom home was custom-built in 2015 on a 10-acre wooded parcel. The two-story living room features a floor-to-ceiling stone fireplace, and the large windows let in plenty of natural light. Out back, there’s a hot tub.
The home is pending sale.
———
Price: $4,900,000 Why it’s here: This enormous, seven-bedroom estate comes with a brick-walled wine cellar, cozy bar, spa with indoor lap pool, fitness center, and home theater.
The 10,159-square-foot floor plan boasts custom millwork and six fireplaces. The wood-paneled library has a coffered ceiling, built-in bookshelves, and a fireplace with an ornate mantelpiece.
The 16-acre lot also features six garages, a carriage house with two apartments, and a tennis court.
———
Price: $625,000 Why it’s here: Inspired by midcentury modern style, this home was designed by architect Charles Marks.
The home was built in 1974 on a 14-acre parcel in the Green Mountain State. The bright living room is lined with windows and built-ins, and features a fireplace. The 3,000 square feet of living space includes a dining area with a raised ceiling and sliders that open to a bluestone terrace with an in-ground pool.
The primary suite has a fireplace, built-in bed, and bathroom with cedar walls. The property is pending sale.
———
Price: $510,000 Why it’s here: This large, log cabin comes with a matching, four-car garage.
The three-bedroom home features vaulted ceilings and hardwood floors. The great room boasts a floor-to-ceiling stone fireplace, and the spacious kitchen comes with a curved island with seating. Two en suite bedrooms are upstairs, and the third is located on the lower level.
The 1.4-acre lot is private and wooded.
———
Price: $799,900 Why it’s here: This fabulous farmhouse on 6 waterfront acres overlooks the Clinch River. The spot is ideal for launching a boat, kayaking, or fishing.
The three-bedroom, 1,857-square-foot home boasts a two-story family room with a stone fireplace and a kitchen with custom cabinets. Two bedrooms are located on the main level, and the primary suite with a private balcony can be found upstairs.
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Price: $799,500 Why it’s here: Here comes the chance to live at the former site of the Galveston Wedding Chapel!
While the wedding business itself is not for sale, all of the furnishings of the turnkey place are negotiable, according to the listing.
The waterfront property offers Gulf views from the top floors. The chapel is on the main level, and two bedrooms are upstairs.
The 2,211-square-foot interior also includes a formal parlor for cocktails, an elevated area for ceremonies, and an outdoor gazebo for photos.
There are also multiple terraces and patios to take in the views.
———
Price: $497,000 Why it’s here: The innovative Cedar Bridge House, designed by architect Wilfred Armster, appears to float among the trees.
Built in 1983, the two-bedroom residence has been on and off the market over the past three years, with an original list price of $530,000. As several calls to the listing agent have gone unreturned, we (and social media) are left wondering why this modern marvel hasn’t sold.
The unconventional, bridge-like design features 2,118 square feet of living space filled with skylights and windows. The stylish kitchen has granite counters, a wine cooler, and high-end stainless-steel appliances, according to the listing. The minimalist living room offers a sleek fireplace.
The primary bedroom includes access to one of two decks. A third deck boasts a hot tub and views of the 3-acre lot.
Everyone agrees that the COVID-19 outbreak is set to have a long lasting impact on the U.S. economy, and the housing market is no exception.
In a new report this week, Apartment List has outlined some of the long-term changes it thinks will affect real estate.
1.
Reduced mobility
The
report notes that people’s mobility will be much lower than it was
previously, before spiking.
“Geographic
mobility generally declines during downturns, when a lack of job
opportunities catalyze fewer long-distance moves across market or
housing upgrades,” the report said.
A
moratorium on evictions and foreclosures will also help to reduce
mobility, but analysts say they predict a spike in people moving home
once the outbreak ends.
“Many
upgrade and downgrade moves will be postponed rather than canceled,
creating a reshuffling of households throughout the recovery,” the
researchers note.
There
will also likely be a future wave of movement as people relocate
following the outbreak in search of jobs, or to be closer to their
family. Young people are also likely to want to flee the next to form
their own households.
2.
Less affordable homes on the market
Experts
say affordable rentals and homes for sale are likely to be impacted.
Both were in short supply even before the pandemic, and the situation
will get worse, they say.
“Fewer
people moving means fewer homes available,” the report noted. “With
both pandemic and policy keeping people in place, affordable units
will become even more rare through the 2020 peak season.”
Luxury
apartment inventory, on the other hand, may be abundant.
3.
Housing inequality will increase
Those in the higher-earner wage bracket will likely take advantage of lower borrowing costs and refinance in order to reduce their mortgage payments. But lower-income households will struggle with the sluggish economic and rising competition for the remaining low-cost homes available.
“As
shelter-in-place orders cover a growing share of the nation, those
who are able to work remotely are at a distinct economic advantage,”
the report said. “Unfortunately, a correlation between income and
the ability to work from home reveals that the lowest earners will be
hit hardest by these measures. Fifty-two percent of full-time workers
who earn more than $100,000 annually say they can work from home. But
only 15% of workers who earn less than $25,000 are able to work from
home.”
4. Sight-unseen purchases will grow
Experts
say they’re also expecting an increase in the number of people who
buy a new home sight-unseen.
“Many
apartment communities are already enabling virtual tours in response
to the pandemic, and many renters and owners alike may soon be
evaluating their next home through a tablet screen,” the report
found. “Mainstream adoption of sight-unseen moves will bring both
opportunities and challenges for the housing market.”
Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at [email protected]
With most Americans continuing to stay at home to try and prevent the spread of the coronavirus, real estate agents are increasingly relying on video or virtual home tours to show clients their listings.
Many agents feel that these video tours can help make up for the lack of an in-person viewing, but they still need to be prepared.
Redfin this week provided a list of tips for agents to help guide them through the process of giving a video tour, based on some of the common questions buyers are likely to ask them.
For starters, Redfin advises agents to prepare a floor plan of the property prior to the call. This will help clients to get a better sense of the home, its size and its layout as the agent walks them through it.
As you’re walking clients through the home, it’s a good idea to comment on the condition of various features. Buyers may ask if any surfaces or features are worn or damaged, as it’s not always possible to tell when viewing them remotely. Agents can help by zooming in on certain details. Also, it’s a good idea to inform clients of any other features, such as creaky floorboards.
Location is important too. Clients often like to drive around the area prior to, or after viewing a home, but they can’t do this if they’re not physically in the area. Agents can make up for it though by talking about the surrounding area. For example, how noisy is it inside and outside the home? Is the street outside busy with traffic, or is there some other source of noise. And how close are the neighboring houses? How much privacy does the home afford?
Be sure to check out the view as well. Clients will likely want to know what they can see when looking out from inside the home. Agents can help by showing off the landscape, especially if it’s attractive.
Be ready to respond to what direction the natural light is coming in from. That can help a buyer get a better sense of how much light they’d get in certain rooms during the day.
Take note of any smells or odors. Your buyers won’t be able to get a sense of this from video so comment on whether you notice any lingering odors inside or outside of the home.
Point out any differences from the listing photos. Is there anything that looks different in person versus the listing photos? This is important as buyers try to judge a home from afar. Are the photos an accurate portrayal of the home?
Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at [email protected]
Two of members of the GEM, Aaron Block and Elie Finegold at MetaProp, are looking to hire a Venture Capital Principal for the firm, a Senior Family Office Salesperson, and a Senior Institutional Investor Salesperson.
About the Positions:
NYC/Remote based full-time work
Base + Commission (sales roles)+ Carry
Principal: Opportunity to help lead MetaProp’s early-stage venture capital investment program from lead deal flow through execution. Provides portfolio support and community engagement when necessary as a representative of MetaProp. The ideal candidate has 5-10 years of venture capital or other relevant experience.
Senior Family Office Salesperson: Will have the opportunity to help build out the Family Office partnerships via relationship sourcing and management across the globe, with a focus on registered investment advisors (RIAs), single-family offices, multi-family offices, and ultra-high-net-worth individuals in the United States. The ideal candidate has 3-8 years of experience at investment management or wealth management firm in a client-facing capacity with a willingness to travel extensively if required.
Senior Institutional Investor Salesperson: Will be responsible for investment relationships with clients around the globe, with a focus on endowments and foundations in the United States. This hire will assist with mapping the addressable investor market, developing new business opportunities, territory management, and ongoing client service to hit individual sales targets. The ideal candidate has 3-8 years of experience at a buy-side investment firm, an institutional consulting firm, or placement agent in a client-facing capacity with a willingness to travel extensively if required.
Interested? Check out the MetaProp.vc/careers for more information.
Have a real estate tech job opportunity you’re hiring for at your company? Join the community, and receive the ability to post one career opportunity per quarter.
A 20-year battle over the fate of a rugged, verdant hillside in Los Angeles is barreling toward an epic conclusion as developers move forward with plans to construct a luxury housing project in the Verdugo Mountains, above the Sunland-Tujunga neighborhood.
The Canyon Hills development project, approved by the Los Angeles City Council in 2005, is awaiting one final rubber stamp before crews can begin clearing hundreds of acres to make way for 221 homes.
Nevada-based developer Whitebird Inc. says it is within its rights to proceed with the project, which was granted a 20-year window of completion when it was initially approved nearly two decades ago.
But community members, neighborhood officials and other opponents say a lot has changed since then, and insist the development will harm wildlife in the area and put residents in the path of worsening wildfires. They’re calling for the project to be halted — or at least delayed — until a new environmental impact report can be conducted.
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“I just think 20 years is a long time in terms of climate conversations and environmental concerns,” said Emma Kemp, a Tujunga resident and co-founder of the group No Canyon Hills, which began a campaign opposing the project. A petition it started in February has more than 165,000 signatures.
“Before you start chopping down this mountain based on a report that was conducted in 2003, can we just reassess so we can make sure that we are taking really responsible precautions?” she asked. “You know, once you cut it up, you can’t go back.”
The project site runs north of the 210 Freeway and offers sweeping vistas of Los Angeles. On a recent hike around the area, the landscape was alive and buzzing with insects and green vegetation fueled by this year’s wet winter.
Adam Gelbart and Devon Christian, two amateur naturalists who regularly comb the hills there, have spotted a number of plants and critters they say would be threatened by the project, including live oak trees, rare bumble bees and lizards, and the critically imperiled Davidson’s bush mallow plant, which grows only along the Central Coast and in the hills around Tujunga.
“These are the last crumbs of a much larger ecosystem,” Christian said as he swished through chaparral and knee-high brush. “These ecosystems support a myriad of life — not only insects but also birds, larger carnivores. It’s all tied together, and if you see it within the larger context of biodiversity loss across the planet, we really need to fight to protect any last scrap of biodiversity that’s out there.”
Residents have also spotted mountain lions in the area, which alone should be enough to warrant a new environmental impact report, opponents say. Southern California’s mountain lions have reached a critical threshold in recent years as human development squeezes the landscape and leaves lions in the path of speeding cars.
The environmental impact report, finalized in 2004, found no evidence of mountain lions or bobcats at the time. And while the city’s development agreement acknowledges that “significant and unavoidable impacts will result from implementation of the project,” it concludes that “the benefits outweigh and override” such impacts.
Cited benefits include providing a substantial amount of high-quality housing to accommodate population growth in the area, as well as the creation of hundreds of construction jobs. The agreement also states that the project will replace old oak trees with new plantings that will benefit the habitat, and will decrease fire risk in the area by introducing fuel modification zones.
But in the nearly two decades since that agreement was approved, at least three wildfires have seared the area, including the La Tuna fire of 2017, which burned about 7,200 acres and destroyed five homes. The remnants of charred trees and structures can still be seen in the hills today.
The community was also threatened by the Station fire of 2009 and the Sand fire of 2016, both of which prompted the evacuations of thousands of people. Sunland-Tujunga Neighborhood Council President Lydia Grant said she fears the project will leave more residents in harm’s way.
“Our community is a high fire danger area, and we do everything we can to keep the building off the hillsides because it’s just not safe,” she said. The Los Angeles Fire Department ranks the area as a very high fire hazard severity zone.
Grant said adding more homes and people to the wildland-urban interface could also put pressure on the community during an evacuation. The two major arteries in the area, Foothill Boulevard and La Tuna Canyon Road, have both been “road-dieted” from two lanes to one in recent years, she said.
“Now you’re adding that onto one lane in a high fire danger area. … This is just adding gasoline to a fire,” Grant said.
Such conditions are not unlike those that spurred a judge to pause a luxury development project in Lake County last year until further assessments of wildfire evacuation routes could be completed. Judges in recent years have also halted developments in a fire-prone part of San Diego County and the Tehachapi Mountains in Los Angeles County due to fire risk.
Grant said she has not heard from any community members in favor of the development. Los Angeles City Councilwoman Monica Rodriguez, who represents the area, declined to speak with The Times about the project.
Jack Rubens, an attorney for the developer, rejected the claims about fire danger, saying the project will in fact reduce the wildfire risk for existing residents to the north and east of the site by providing a new southern evacuation route to La Tuna Canyon Road and the freeway.
The project will also include a new million-gallon water tank close to the existing neighborhoods, which can be used by firefighters “who will have far superior access to the hillside after the project’s road system is constructed,” Rubens said. He added that future residents of the development will also be protected by a 200-foot-wide fuel modification zone that includes about 100 acres of land.
Rubens said concerns about mountain lions are similarly unfounded and noted that the original environmental impact report determined that the project would not interfere with local or regional movement of the animal. Should such movement occur, it would be outside of the development area, he said.
He added that in the wake of the initial approval, Whitebird and developer Rick Percell agreed to eliminate a portion of the project site south of the 210 Freeway, donating about 600 acres of land to an affiliate of the Santa Monica Mountains Conservancy for permanent preservation, so “the public has therefore already received an enormous public benefit,” he said.
Paul Edelman, deputy director of the Santa Monica Mountains Conservancy, said developing the remaining acres would still amount to a considerable ecological loss.
“As a mountain range, [the Verdugos] are big enough to sustain subpopulations of all the animals we’re concerned about, and that is the key, because they’re just big enough to do that,” he said.
“As you start to take big chunks out of it, it degrades the whole system — you don’t have enough critical mass for one or two mountain lions or a healthy bobcat population,” he said. “It’s already so small that taking a big chunk out of it hurts a lot more than, say, if the equivalent-sized development happened in the Santa Monica Mountains.”
He and other opponents of the project acknowledged that the city’s hands are probably tied by the agreement, especially in this eleventh hour.
Whitebird recently pulled a grading permit that would allow it to begin leveling the pads for properties as soon as it’s approved. City officials could face a lawsuit from the developer should they try to intervene.
Under the agreement, additional environmental clearance could be required under the California Environmental Quality Act if there are substantial changes in the project, including new information showing that the project will have “new or more severe significant effects” than those described in the original environmental impact report.
Rubens said that’s a moot point. A second report cannot be lawfully required as the project is “fully entitled and doesn’t require any further discretionary approval simply because its development has been delayed,” he said.
“The project was approved after a five-year administrative process with significant community involvement and, by the way, those approvals were not challenged in court,” he added.
Dean Wallraff, an attorney who has been fighting the development for decades, said the city probably will agree. But it’s possible some elements of the grading permit could contain enough modifications to trigger a new report.
“Twenty years ago, they approved this project that has now all kinds of extra environmental effects, and it’s in this kind of sensitive area in the middle of the city, and if this goes forward now without anybody looking at it again — that doesn’t make sense,” said Wallraff, executive director of Advocates for the Environment.
The Verdugo Mountains and surrounding areas were originally home to the Chumash, Gabrielino/Tongva and Fernandeño Tataviam tribes, and some members have spoken against the project.
“We believe in protecting the last remaining open spaces of L.A. County,” said Nathan Nuñez, Gabrielino Indigenous cultural keeper. “These places are important to our people, but they’re also important to the broader community. We have to do the work that we can do now to protect these places before they get lost to development.”
He worried about the potential presence of archaeological artifacts in the area because the hills and nearby areas once served as transportation corridors, campsites and places for gathering, hunting and ceremonies for the tribe.
His father, cultural bearer Kevin Nuñez, said he understands that the situation is complicated, but hoped politicians and decision makers would “pump the brakes.”
“I think there are options, but it takes some diligence, it takes some intestinal fortitude, to step up and say hold on, we’re going to vet this well,” he said.
Kemp, of the No Canyon Hills group, said the average lot size for the planned homes is about 17,000 square feet, with some as large as 100,000 square feet. It’s an equity issue as much as it is an environmental one, she said.
“Tujunga is one of the more affordable neighborhoods in and around urban L.A., and it is more rural and it’s definitely more working class … so how can you justify putting in a gated community of luxury mansions in this area?” she said. “What is the benefit to our community?”
However, she said she does not see the group expressing NIMBYism, an anti-development stance that stands for “not in my backyard.”
“I do understand that this developer has his project approved, and he wants to proceed with his plan. I do understand that,” she said. “It just feels that we have this very slim opportunity to do better by the environment, by current community members, by plants, animals and other species, and just to ensure that this is a viable and responsible and worthy project.
“And if things need to change about it,” she added, “then we can make those changes and find a position that works for everyone.”
Hiking through the brush, Gelbart and Christian, the naturalists, said California’s climate conditions are changing so rapidly that it’s difficult for even ecological experts to keep up — much less developers. The pair recently found a massive hollyleaf cherry tree growing in the hills that they hadn’t seen before.
“The land has value beyond what humans use it for,” Gelbart said as he surveyed the view. “And once this is gone, you can never put it back together.”
So, you find the lazy way to invest very appealing: You like the simplicity and the long-term results. But you don’t want to bother with building your own lazy portfolio of index funds and adjusting it as you get older (same as creating your own target-date fund). At this point in your life, you just want a set-it-and-forget-it solution, at least until you feel more comfortable building your own investment portfolio. Target-date funds seem perfect for the job, but which one is right for you? Let’s walk through choosing a target date fund.
Related >> Investing 101: An Introduction to Index Funds and Passive Investing
Choosing the Fund Family
The first step is to choose the fund family (Fidelity, Vanguard, etc.). This decision cannot be overlooked since each company manages its funds differently; a 2040 target-date fund from T. Rowe Price will be different from a 2040 target-date fund at Fidelity. Each company has its own philosophy and methodology. Let’s compare the three biggest players in this market: Fidelity Freedom Funds, T Rowe Price Retirement Funds, and Vanguard Target Retirement Funds.
Related >> a href=”https://www.getrichslowly.org/the-lazy-way-to-investment-success/”>The Passive Way to Investment Success
The first criteria you can use to compare the fund families is cost, specifically the expense ratio (the total annual cost for things like advertising and managing the fund). As an example, let’s look at the 2040 funds:
Fund Family
Expense Ratio
Fidelity
0.79%
T Rowe Price
0.79%
Vanguard
0.20%
Amazingly, Vanguard’s expenses are roughly a quarter of the other two. This is largely due to the use of actively-managed mutual funds by Fidelity and T Rowe Price; Vanguard only uses low-cost index funds in their target-date funds. If you think 0.59% a year is a pretty small difference, remember that the rough rule-of-thumb for withdrawing money in retirement is only 4% a year. That “small” difference in expense ratios is almost 15% of your potential retirement income!
Another important criteria to consider is the asset allocation used by the target-date fund — how much is invested in stocks, and how much is invested in bonds and other instruments. In particular, you want to look at how that allocation is expected to change as you get older. Investing geeks like me call that the “glide path.”
Choosing Your Target Date
Once you select the fund family, you need to decide on the specific fund to buy. Target-date funds are labeled by retirement year, generally assumed to be when you turn 65. So the 2040 fund is designed for the “typical” person who’s currently 35 and is expected to retire in 2040.
Obviously, no one is forcing you to buy the fund that corresponds to the year you turn 65. There are at least two very good reasons to adjust your target date:
If you plan on retiring much earlier or later than 65, you should consider adjusting your target date. Let’s say you’re 35 and want to retire at 55. Should you buy the target-date fund for 2030, since that’s when you’d retire? Not necessarily. Although the 2030 fund fits your retirement plans, it also assumes people retire around age 65, so your life expectancy is probably much longer than the target audience for the fund. A good compromise might be the 2035 fund, which respects both your early retirement plans and your longer life expectancy relative to others you retire with.
Even if you expect to retire at 65, the amount of risk you want to take is probably not “typical”. An easy way to reduce risk is by selecting a fund with a target date that is five to ten years before when you turn 65. (So, if you plan to retire near 2040, you might choose a 2030 target-date fund.) This lowers the level of risk by holding less in stocks while still considering your investment horizon. And if you want more risk, you can select a target date that is five to ten years past when you turn 65. (If you plan to retire around 2030, you could increase risk by choosing a 2040 target-date fund.)
Even though they’ve received some bad press lately due to their poor performance during the recent stock market crash, target-date funds are still useful investments for many people. They’re certainly better than other strategies commonly used by beginning investors: equal-weighting all funds within a 401(k) plan, picking stocks, or just leaving everything in a money market fund.
If you already use target-date funds, which funds do you own and how did you choose?
Zillow, the company that operates several businesses serving the real estate transaction, is shuttering its closing services unit, the company confirmed. The move was revealed by a memo shared by a LinkedIn poster and was first reported by HousingWire.
“Integrating the real estate transaction to make buying and selling simpler for customers remains our core strategy and we believe offering title and escrow is a critical component,” a Zillow spokesperson said in a statement. “However, we determined our current offering through Zillow Closing Services isn’t the integrated product we believe customers and partners need, so we are sunsetting our current Zillow Closing Services operations while we explore more tech-forward solutions.”
This statement echoes the memo sent to Zillow Closing Services customers.
“Zillow’s mission is to integrate the real estate transaction to make buying and selling simpler for customers and our partners,” according to the memo. “As a matter of practice, we continually evaluate our current products and solutions, and have determined our current closing offering provided through Zillow Closing Services isn’t the tech-forward and integrated we believe customers and partners need.”
In prior statements about its businesses, Zillow has said that it is willing to build or buy. Its Zillow Home Loans unit is an example of that philosophy. To create that business, it bought what was once called Mortgage Lenders of America, in 2018.
Meanwhile, Zillow Offers, the property flipping business that was ironically the catalyst for the mortgage buy but shut in November 2021, shows where the company decided to exit an unsuccessful line that was taking a toll on its financials.
Approximately 80 positions will be affected by the unit’s shut down. Affected employees will receive eight weeks of pay plus one additional week for each year of service at Zillow Group. In addition, the company is paying for three months of COBRA as a lump sum payment in consideration for their next equity vest, and outplacement services.
In October, Zillow laid off 300 workers across several business units, including Premier Agent.
Zillow Closing Services had limited reach and little traction, operating primarily in areas the parent company considered enhanced markets, such as Denver; the Raleigh-Durham area of North Carolina; Phoenix; Atlanta; and Charlotte, North Carolina. It also had a smaller presence in other areas.
It stopped taking title orders on June 27. But all existing orders and closings will be processed before the shutdown.
Stocks fell Thursday as Russian troops launched a full-scale attack in Ukraine, and at least in the short-term, the turmoil could lower mortgage rates in the U.S.
During large-scale disruptions, investors often flee to safer options, such as U.S. Treasury notes, bonds and mortgage-backed securities. All things being equal, that dynamic tends to put downward pressure on mortgage rates.
“While mortgage rates trended upward in 2022, one unintended side effect of global uncertainty is that it often results in downward pressure on mortgage rates,” said Odeta Kushi, deputy chief economist of title insurance firm First American. “The 10-year Treasury yield is down today, likely in response to the worsening Russia-Ukraine conflict, and mortgage rates may follow suit.”
Kushi also drew a parallel to the weeks following the ‘Brexit’ vote in 2016, when a declining bond yield led to a decline in mortgage rates.
But the Federal Reserve was already balancing efforts to slow inflation without cooling the economy too much. Experts expect inflation will be exacerbated by the conflict, especially in light of sanctions on Russia, an oil-producing nation.
“The two forces are at odds with each other at the moment,” said Melissa Cohn, regional vice president at William Raveis Mortgage. “Inflation will be made worse by war, not better.”
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Inflation is rising, but expectations that it will rise have not yet spun out of control, said Mark Zandi, chief economist at Moody’s Analytics.
“Inflation expectations remain anchored, but that’s the risk,” said Zandi. “Because it’s been high going on a year, if you throw Russia into the mix, with higher oil prices and higher inflation, we could hit an inflection point where those expectations become unanchored.”
How the Federal Reserve thinks about the conflict in Ukraine — how long it may last, the likelihood it will expand beyond the borders of Ukraine, and its impact on the economy — will determine how mortgage rates move in the long term. The Fed will meet again from March 15 to 16, and is expected to raise rates from 0 to 0.25%.
“If the Fed thinks the biggest impact of this disruption will be more upward inflationary pressure, then they will presumably stay the course they laid out, perhaps even accelerate it a bit,” said Jim Parrott, a non-resident fellow at the Urban Institute who was a senior economic advisor in the Obama administration. “If instead they decide that the larger impact will be to cool the economy, they might decide to move more cautiously.”
Joel Kan, an economist at the Mortgage Bankers Association, said Thursday that the trade group expects the Federal Reserve to increase rates four times this year.
“With this morning’s news on Russia, I don’t really think that that’s going to slow [The Fed] down for now,” he said. “They acknowledge that that’s a risk. But given the inflation picture, we’re going to see at least a couple of rate hikes.”
Mortgage rates fell slightly to 3.89% this week, down three basis points from the prior week, according to Freddie Mac’s weekly survey of the primary mortgage market.
The Federal Open Markets Committee said in January they expected it would “soon” be appropriate to raise the target range for the federal funds rate. It decided to keep the target range for the federal funds rate at 0 to 0.25%, but is expected to raise rates in early March.
Starting in January Fed has also tapered its monthly asset purchases. That tapering is set to conclude in March, rather than mid-year, as initially planned.
The conflict in Ukraine may have other impacts on the housing market besides potential short-term downward pressure on mortgage rates and long term inflation. Homebuilders are affected by the uncertainties brought by higher oil prices.
Stock market declines could temper homebuyer appetite for more expensive or second homes, and reduce the amount they have to make purchases.
“There are a lot more down days ahead, but it does feel like there’s no good that comes out of this from the perspective of the economy,” said Zandi. “It’s all downside. It just remains to be seen how much.”
Looking for the most up-to-date mortgage rates to empower your purchasing or refinancing decisions? We’ve got you covered.
Here, you can view today’s mortgage interest rates, updated daily according to data from Bankrate, so you can have the most current data when purchasing or refinancing your home.
30-year fixed rate mortgages
The average mortgage interest rate for a standard 30-year fixed mortgage is 6.99%, a decrease of 0.05 percentage points from last week’s 7.04%.
Thirty-year fixed mortgages are the most commonly sought out loan term. A 30-year fixed rate mortgage has a lower monthly payment than a 15-year one, but usually has a higher interest rate.
15-year fixed rate mortgages
The average mortgage interest rate for a standard 15-year fixed mortgage is 6.43%, a decrease of 0.03 percentage points from last week’s 6.46%.
Fifteen-year fixed rate mortgages come with a higher monthly payment compared to its 30-year counterpart. However, usually interest rates are lower and you will pay less total interest because you are paying off your loan at a faster rate.
5/1 adjustable rate mortgages
The average rate on a 5/1 adjustable rate mortgage (ARM) is 6.07%, a decrease of 0.02 percentage points from last week’s 6.09%. With an ARM, you will most often get a lower interest rate than a fixed mortgage for say, the first five years.
But you could end up paying more or less after that time depending on your loan terms and how that rate follows the market.
What is the best term for a loan?
When picking a mortgage, it is important to pick out a loan term or payment schedule. Usually you will be offered a 15 or 30-year loan term, but it is not uncommon to see 10, 20, or 40-year mortgages, according to CNET.
Mortgages can be fixed-rate or adjustable-rate. Interest rates in fixed-rate mortgages are set in stone for the duration of the loan.
Adjustable-rate mortgages only have interest rates set for a certain period of time before the rate adjusts annually based on the market.
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