Mortgage rates jumped higher this week, further dashing homebuyers’ hopes for an affordable spring home-shopping season.
Rates for a 30-year fixed-rate mortgage averaged 6.57% for the week ending May 25, according to Freddie Mac. That’s a hefty hike upward from last week’s 6.39%. As if that weren’t worrisome enough, Mortgage News Daily (which tabulates rates daily rather than weekly) pinned the average 30-year fixed rate even higher, at 7.12% on Thursday afternoon.
These numbers are a cruel twist given they arrive just as home prices seem to be drifting back down to earth.
“Recent momentum has home prices on a trend to dip below year-ago levels in a matter of weeks,” Realtor.com® Chief Economist Danielle Hale noted in her most recent analysis of housing data for the week ending May 20. “But while many homebuyers will certainly welcome a lower price tag, higher mortgage rates may minimize or erase any potential savings.”
When will buyers catch a break? When will homeowners decide to take the plunge and become sellers? Here’s what the latest real estate statistics seem to be saying in this edition of “How’s the Housing Market This Week?”
Home price gains keep grinding lower
In April, the median price of homes for sale came in at $430,000. Yet for the week ending May 20, listing prices were up just 0.7% compared with a year ago.
Home price gains keep shrinking, and Hale isn’t the only one expecting them to fall below year-ago levels soon. The economics team at Freddie Mac is forecasting a 2.9% decrease in national home prices over the course of 2023.
Of course, as Hale points out, all real estate is local; no one buys a “national” home.
Prices in the Midwest and Northeast remain more affordable, but they are gaining by double digits as these markets heat up. Meanwhile, prices in the West and South, which grew exponentially during the COVID-19 pandemic, are moderating or even falling now.
Why home sellers aren’t listing
The entire housing market would benefit if more homeowners decided to list their homes for sale, but few seem willing to volunteer.
For the week ending May 20, the number of new listings was down 26% versus the same time last year. There have been fewer listings compared WITH 2022 for almost an entire year now, thanks largely to the spike in mortgage rates.
“With roughly two-thirds of existing homeowners holding onto a mortgage more than 2 percentage points below current mortgage rates,” Hale said, “it’s easy to see why new listings lag behind.”
The slowing pace of home sales
Granted, overall inventory (comprising both new listings and older ones that have been lingering ) is up by 20% over last year. But the fact that many of those listings are stale suggests that buyers have already picked over these clunkers and passed.
And the slowing pace of sales suggests that home-shopping enthusiasm is on the wane.
In April, homes lingered on the market for a median of 49 days. And for the week ending May 20, listings spent an extra 15 days on the market compared with this same week last year.
Just how high might mortgage rates go?
Will homebuyers get rate relief anytime soon? Most signs point to not likely.
Just a month or so earlier, some economists predicted mortgage rates would dip lower later this year. But now, the Freddie economists aren’t so sure. They now forecast a scenario in which “long-term interest rates move largely sideways, staying in a range similar to where rates are today, perhaps moving up or down by around half a percentage point.”
Yet despite the gloomy outlook, determined buyers are finding ways to navigate today’s dismal market. Some are sifting through stale listings and lowballing. Others are exploring a whole new possibility they might not have considered before: new-construction homes.
“Even though existing home sales have waned in recent months, new-home sales have ticked up,” said Hale. “Buyers grappling with low inventory look to new construction as a relief valve.”
Given builders can sometimes offer discounted mortgage rates through preferred lenders, new construction might even cost less than pre-existing homes in certain areas today. This should give all homebuyers hope that the right house is out there, provided they keep looking and leave no stone unturned.
Added NAHB’s chief economist, Robert Dietz: “April saw an increase in new home sales as buyers sought new construction even as builders struggle to keep up with demand because of a shortage of distribution transformers and skilled construction workers,” he said. “Sales for 2023 thus far are still down 9.7% on a year-to-date basis due … [Read more…]
The Golden State is known for its sunny and sandy beaches, historic cities like San Francisco and Los Angeles, picturesque national parks like Yosemite and Joshua Tree, and array of outdoor activities – hiking, skiing, surfing, and running trails. It’s no wonder that 39 million people live in California. There are many draws to the state, no matter what city you’re living in. So, if you’re looking to buy a home in California this year, you might be wondering what kind of classic California style homes you’re likely to find.
Look no further, Redfin is here to guide you. We’ve gathered 8 quintessential California style homes you might want to consider buying whether you’re looking for a home in Sacramento or rental property in Irvine. While home styles vary across the state, here are some of the most common home styles in California you’re likely to find. Let’s jump in.
1) Cape Cod
Cape Cod homes are a well-known and loved house style across the US. They’re most recognizable for their symmetrical design, steep roof with pitched triangular areas, and large chimney. These homes often have two-to-three bedrooms and an open floor plan. They’re typically single-story, but you can often find Cape Cod style homes with more floors. Cape Cod style homes have lots of windows to let in natural light, adding to the charm. You’ll find these homes have cedar shingles, brick, stucco, or stone exteriors.
2) Contemporary
If you’re looking for a home that’s got modern and chic elements consider a contemporary style house. These homes are common in many cities up and down the state, from Malibu to Vacaville. Contemporary homes typically have sleek and streamlined designs, with plenty of natural light and an emphasis on functionality, perfect for the sunny California days. Expect to see a mix of materials and textures, such as wood, metal, and glass to complete the home.
3) Craftsman
Craftsman style homes in California are known for their unique blend of traditional and modern elements. These homes have low-pitched roofs with exposed rafters, wide front porches, and a mix of materials like stone, wood, and brick. Inside, expect to see plenty of natural light and an open floor plan, with built-in cabinetry and detailed woodwork adding to the charm. Whether you’re looking for a cozy bungalow or a larger, more spacious home, you’ll find options with the Craftsman style.
4) Mediterranean
Mediterranean-style homes are a popular architectural choice in California, drawing inspiration from the historic buildings found in Spain and Italy. These homes often feature stucco exteriors, red roof tiles, and metalwork accents, creating a warm and inviting ambiance. Many Mediterranean homes also incorporate exposed wooden beams, adding to their rustic charm.
One of the defining features of these homes is their seamless blend of indoor-outdoor living, making them ideal for California’s mild climate. Whether you’re looking for a seaside villa or a cozy retreat in the hills, you’re sure to find the perfect Mediterranean-style home in California.
5) Mid-century modern
A home style that gained popularity during the 1940s through 1960s, mid-century modern homes are still very loved today, including in California. These homes have clean lines, functional design, and natural elements. Mid-century modern homes in California are typically single-story or split-level with floor-to-ceiling windows, sliding doors, and an emphasis on indoor-outdoor living. Additionally, mid-century modern homes showcase neutral colors and natural wood finishes throughout the home, creating a minimalist and sleek look.
6) New construction
New construction homes in California typically feature modern and sleek designs with an emphasis on indoor-outdoor living. They often incorporate sustainable materials and energy-efficient features to help reduce their carbon footprint. Many homes offer open-concept living spaces, large windows, and high ceilings to maximize natural light and create a sense of spaciousness. Smart home technology is also common, allowing you to control everything from lighting to temperature.
7) Ranch
California ranch homes are typically a single-story design with a low-pitched roof and wide eaves. These homes often have a simple, open floor plan, with a living room, dining room, and kitchen all connected. You may find large sliding glass doors leading to outdoor living spaces, like patios or decks, to take advantage of California’s mild climate. Many ranch homes in California also feature mid-century modern design elements, such as floor-to-ceiling windows, exposed beams, and natural details.
8) Victorian
You can find variations of Victorian homes throughout the state, but, by far, the most well-known Victorian homes are in San Francisco. The “Painted Ladies” are recognized by their ornate and colorful facades. They feature bold hues and intricate details such as gingerbread trim, stained glass windows, and decorative brackets. The Victorian style homes in California were primarily built in the late 1800s and early 1900s. The main architectural styles are Gothic Revival, Queen Anne, and Italianate.
When most people talk about money management, they discuss tactics. Occasionally, you’ll encounter someone who elevates the discussion to strategy, rather than simply scattershot tactics.
But what’s missing from both conversations — both tactics and strategy — is a wider-lens look at how to become a better thinker; how to become a crisp, clear decision-maker.
How to think from first principles. How to better your brain. How to cultivate the wisdom to know the next move.
This series is an attempt to bring first principles thinking into the conversation around money. Welcome to the inaugural post.
Rethinking the FIRE Construct
I’ve been thinking about FIRE in new terms:
Financial psychology
Investing
Real estate
Entrepreneurship
Together, these four concepts encompass everything we need for mastery over our financial life. And the letters are ordered perfectly: start with mindset and master the basics, then shift focus to “the IRE of FIRE” — high-growth activities such as making investments, buying real estate, and starting a side hustle or business.
So I’m trying something new.
With every post in this First Principles series, I’ll share insights into these four domains, with the goal being to fill each post with original and unusual insights.
My commitment to you is to write a series with nuance. Too much personal finance content lives in an echo chamber, rehashing the same tired lines and prescriptive, one-size-fits-all advice. You won’t find that here. This series is built to make you smarter. Together, we’ll uncover mental models, examine frameworks, rethink perspectives, peer at our cognitive biases and emotional triggers, and engage in the deep work of thinking about how to think.
This is a series about how to think from first principles, how to be a better, smarter, wiser decision-maker, told through the lens of money.
Let’s begin — and in today’s introductory post, we’ll kickoff with a deeper look at each of these four concepts.
Financial Psychology
If you say “personal finance 101,” most people immediately think of tactics: building automations, setting up cash reserves, hiding money from yourself. They think of bulk cooking, buying used cars, and the low-hanging-fruit of frugality.
Those tactics are great. But starting there is a mistake.
Bigger, more sustained improvements come from understanding why we spend, why we behave irrationally with money, why there’s a behavior gap between what we pledge and what we do.
The key to finding your financial footing is understanding the psychology of money.
Want to stop spending so much on the weekends? Start by understanding the impulse behind the purchase. We don’t buy items, we buy feelings. Figure out what feelings you’re trying to purchase — and the triggers and root causes behind that — and your spending will adjust naturally.
Want to get (and stay) out of consumer debt? Start with the psychology of debt — both the factors that led you into debt, and the mindset that the debt burden creates.
Most of us know what to do (spend less than you earn, invest the difference), but translating awareness into action is tough. Tactics are necessary, but not sufficient.
Understanding the psychology of money is at the core of mastering our financial mental game. And until we master the mindset, then we’ll never follow through with the tactics.
Investing
Most discussion around investments fall into two categories:
1: The fundamentals. These are the articles that teach basics around how the system works: “the 401k, 403b, and IRA are examples of retirement accounts,” or “stocks and bonds are examples of assets.”
2: The horserace. These are the articles that track what the market is doing today, or this week — market moves, winners and losers.
You can either read evergreen articles on long-term investing, or you can track today’s stock performance; there’s not much information outside of those two domains.
But there are three important elements missing from this conversation:
1: The strategy. Investing decisions need to be made in the context of your life (or as my buddy Joe says on the podcast, “start with the end in mind.”) These strategic discussions around “what’s the end goal?” and “how do I reverse engineer?” often get overlooked, which is why so many investors experience FOMO, the fear of missing out. If there’s no clarity of purpose, then the only goal is “more.” And when the only goal is “more,” then the Next Hot Stock Tip seems too tempting to pass up.
2: The psychology. The greatest investors are the ones who have a strong awareness of investor psychology: fear and greed, FOMO, loss aversion, recall bias, the availability heuristic, our tendency to overvalue what we already own, and other cognitive biases.
3: The new frontier. Cryptocurrencies for conservative, thoughtful, diversified investors. We live in a world with SPACs and NFTs, acronyms that the average investor didn’t know a few years ago. And at the moment, millions of people are learning about these next-frontier innovations primarily from Twitter and TikTok.
I’ll be writing about investments with a focus on these three elements.
SPOTLIGHT ON…
One of the most fascinating trends of today is the decoupling of skills from diplomas.
The established order used to demand that we dig ourselves into debt for a formal education in order to be considered skilled, useful job candidates. The advent of specific skills-based online learning has transformed this, making it possible to land a six-figure career with only a few months of training.
For a deeper discussion around this decoupling — and how it affects anyone who wants a higher-paying job — watch this video conversation that I had with Jonathan Mendonsa, co-host of the Choose FI podcast.
Real Estate
Real estate is one of the few asset classes that’s a hybrid between an investment and an entrepreneurial venture, so it’s perfect that the “R” in “FIRE” fits in-between the “I” of investing and the “E” of entrepreneurship.
Housing prices have soared in 2021, and the psychological response has been fascinating. When macro events happen, our brains grasp for an explanation.
Many people have reflexively reached for the simplistic, reductive explanation that home prices are high because buyers are irrationally exuberant, and that what goes up must come down. Many people have a fear of heights: the soaring new highs of the market must *necessarily* mean that there will come a crash … right?
After all, that’s what happened in 2008 … so isn’t this history repeating itself?
Yet it takes more than new highs to cause a crash. And there are major differences between the market peaks of 2021 and the peaks of 2006-07.
In 2006-07, we faced a housing surplus. Builders were over-developing, speculating that demand would be able to keep up with the huge spike in supply.
In 2021, we face a housing shortage. New construction permits and renovation permits are low. Lumber prices are high. Labor is scarce. New household formation is high. The supply can’t keep pace with demand.
To be clear, this isn’t a prediction of the future. I’m opposed to making predictions (though I’m an advocate of probabilistic thinking).
It’s simply an observation that the factors influencing each run-up are different — so it’s unwise to assume we know what the future holds.
Entrepreneurship
The word “entrepreneurship” is overused, so let’s pause to look at the different concepts and styles of work that fall under this umbrella category.
First, there’s *gig economy* work, like driving for DoorDash or Uber Eats. It’ll get cash in your pocket immediately, but because there are low barriers to entry and few ways to distinguish yourself, the upside is limited.
Next, there are *scalable* side hustles, like building an online business of your own: freelancing, consulting, producing a product or service that carries your own branding. This allows you to distinguish yourself and offers the benefit of a limited startup cost, but it could take months before it turns profitable.
Once you convert side hustles into full-time work, there are two iterations.
There’s self-employment, in which you’re a solo service provider (potentially with a few 1099 contractors).
And then there’s full-blown entrepreneurship, in which you’re running a company with W2 employees, health benefits, vacation policies and a 401k plan.
The confusing thing about the catch-all term “entrepreneurship” is that people online use this to apply to all four of the above-listed situations, and as a result, most information that you’ll find about this topic is muddled.
In this First Principles series, I’ll be clear about which of these four situations I’m referencing, as I write about how to think and act like a successful entrepreneur.
Hope you enjoyed AND learned from this inaugural post in the First Principles series.
Click here if you want future posts like this straight to your inbox with more thoughts, ideas and insights on a new take on FIRE.
Perhaps unsurprisingly, it didn’t take long for a castle in Georgia to find a buyer. The fanciful space is currently pending sale.
In fact, the first person who saw the Oakhurst Castle in Decatur, GA, put in an offer on the 116-year-old property. The home—a real standout in its suburban Atlanta neighborhood—is listed for $1,335,000
“It’s in an area that’s full of 1920s bungalows interspersed with new construction, and then you’ve got this castle-looking building on a corner lot that just doesn’t look like anything else,” says listing agent Kathleen Sickeler, with Coldwell Banker Realty. “It’s in an amazing school district and at that price point, we knew we would get offers right away.”
Turret
(Madelyn Livingston)
The current owners bought the place in 2012 for $575,000 and, as Sickeler says, did all of the necessary but “unsexy stuff” to the property—updating the electrical, replacing the plumbing, adding insulation, and other essential upkeep.
And all of their work seems to have helped attract a buyer.
“It was very turnkey—nothing needed to be done,” Sickeler says. “The potential buyer really didn’t have to do anything except just walk into this updated, modernized home that is filled with all the integrity and character of a bygone era.”
Entry
(Madelyn Livingston)
Kitchen
(Madelyn Livingston)
Mural
(Madelyn Livingston)
The castle was built in 1907 and, according to lore, the original owner had an affinity for English castles; so he built one for his family on a piece of property and added a courtyard and many other special touches, Sickeler notes
“His brother is said to have owned a stained-glass factory in California, hence why there’s a lot of stained glass in the property and a lot of original glass windows,” she says, adding that the large stained-glass window in the stairway has mysterious origins. “It was hanging in the home when the sellers purchased it. They made it a permanent fixture and put it in a window. Nobody knows if it came from the brother’s factory. You hear these stories that can’t be validated but seem to have been passed along generation to generation.”
Interior
(Madelyn Livingston)
Bathroom
(Madelyn Livingston)
There are four bedrooms and three bathrooms in the 3,318-square-foot house. The turret connects to one of the bedrooms, creating a a cozy spot.
“It’s just a beautiful, round reading nook, and everywhere you look, you see a beautiful view,” Sickeler says.
The ground floor of the turret is an open patio-seating area.
Another of the home’s unique features is the overhead painting in the kitchen. The design features a nod to the iconic “The Joy of Cooking” cookbook.
“In the skylight, you’ve got this huge hand-painted mural,” Sickeler says. “It was painted in 1992 for the previous owners, and you’ll never find anything like that in another house.”
Garage
(Madelyn Livingston)
Garage bonus room
(Madelyn Livingston)
The home also offers a detached garage with a bonus area that Sickeler calls a great hangout space.
The home’s interiors are surprisingly modern but still seem to fit with the character of a castle.
In fact, the listing agent and sellers had discussions about how to emphasize the light and bright interiors to potential buyers, who might have imagined an old castle would be dark and dusty inside.
Sickeler emphasizes that the house definitely speaks for itself.
“Once you walk in, you’ve got a beautiful amount of light coming through that stained-glass window,” she observes. “It’s such a grand foyer. It just opens up and with high ceilings. It’s just beautiful. You walk in you just feel, ahhh.”
From the Mile High City to the majestic Rocky Mountains, Colorado offers a variety of gorgeous landscapes and outdoor activities. There are countless reasons why you might be considering moving to the state or even buying a home in Colorado this year. If that sounds like you, then you may also be wondering what home styles you’ll find as you begin the homebuying process. Whether you’re looking for a modern new construction home or a cozy mountain bungalow, Colorado has plenty of home styles to choose from.
At Redfin, we’ve compiled a list of 11 Colorado home styles you’re likely to find, whether you’re looking to buy a home in Denver or a sprawling property in Colorado Springs. Let’s explore some of the classic Colorado-style homes.
1) Mountain rustic
Colorado homes are well-known for blending natural elements like stone, wood, and metal. Mountain rustic style homes typically have low-pitched roofs to help withstand heavy snowfall, and large windows that showcase the stunning mountain views. Interiors often have vaulted ceilings with exposed timber beams, stone fireplaces, and warm finishes to create a cozy and welcoming atmosphere.
2) Bungalow
Colorado is well-known for its abundance of bungalow style homes. These houses were influenced by Craftsman-style homes, and they’re characterized by their single-story layout. Homes have an open concept living space, two-to-three bedrooms, and some bungalows may have an attic space, depending on the steepness of the gabled roof. Other common features of bungalow homes include raised foundations and covered front porches.
3) Colonial
Colonial homes are some of the oldest home styles found in the US, dating back to the early 1600s. For that reason, there are countless architectural variations of Colonial homes. However, these houses have some common elements like their two-story design, steep gable or gambrel roof, centrally-located fireplace or two fireplaces on either side of the home. You’ll also find the exteriors are often stone, wood, or brick, with symmetrical windows on each level. Colonial style houses often have formal living and dining rooms on the main floor with bedrooms located on the second floor.
4) Contemporary
Contemporary homes are perfect for those who value simplicity and elegance in Colorado. These homes feature a minimalist design, with clean lines and a focus on functionality. Expect to see plenty of natural light, open spaces, and a mix of materials like metal and glass throughout these homes.
5) Craftsman
Craftsman style homes in Colorado offer a unique blend of simplicity and elegance. These homes have a low-pitched roof, large front porch, and exposed wooden elements such as rafters and brackets. Inside, expect to see built-in cabinetry, natural materials such as wood and stone, and an open floor plan that connects the kitchen, dining, and living areas. Craftsman homes are a great option for those who appreciate the beauty of natural materials and the simplicity of functional design.
6) Farmhouse
For Coloradans, farmhouse homes have a rich history rooted in the agricultural landscape. However, you can find these homes in many cities, from countryside towns to suburban areas. Farmhouses typically feature a minimalist style with ample living space, an open kitchen, and outdoor areas. The exterior usually has a classic front porch, wooden siding, and charming dormer windows. Meanwhile, the interior offers plenty of storage and showcases classic wood accents, perfect for those who love rustic yet modern living.
7) New construction
New construction homes feature modern and innovative designs with an emphasis on energy efficiency and sustainability. These homes often incorporate large windows and open floor plans to take advantage of the state’s beautiful natural scenery. Commonly used materials include wood, metal, and stone, and you’ll find a mix of contemporary and traditional architectural styles. Many new homes in Colorado also come equipped with smart home systems and energy-efficient appliances.
8) Prairie
Prairie-style homes are known for their horizontal lines, flat roofs, and open floor plans. They typically feature low-pitched roofs with wide eaves, which provide protection from the sunny Colorado summers. Prairie-style homes often have large windows, highlighting natural light and the views of the surrounding landscape. They’re often built with natural materials such as stone, wood, and brick, which blend into Colorado’s landscape.
9) Ranch
Ranch homes, also known as ranchers or ramblers, are a popular architectural style in Colorado. These homes are typically one-story and feature low-pitched roofs, large windows, and an open floor plan. They have a simple and functional design incorporating natural elements, such as stone or wood, into the exterior. Ranch homes also include a porch or patio to take advantage of the state’s beautiful mountain views. Many of the ranch homes in Colorado have energy efficient features like higher-quality insulation.
10) Mid-century modern
Mid-century modern homes, a popular style that emerged in the 1940-1960s, can be found throughout Colorado. They are known for their emphasis on natural elements, clean and functional aesthetics, and angular features. These homes are typically single-story or split-level. They feature floor-to-ceiling windows that allow for plenty of natural light and an indoor-outdoor living experience. You’ll also notice neutral-colored details and sliding doors that lead to outdoor spaces.
11) Victorian
Victorian homes are not as popular in Colorado as they are in other areas like California or across the East Coast. However, you can still find some Victorian homes in Colorado, particularly in historic neighborhoods in cities such as Denver and Colorado Springs. These homes often feature ornate details such as turrets, bay windows, and intricate woodwork. They may also have steep roofs with decorative shingles, colorful exterior paint schemes, and wrap around porches. Victorian homes in Colorado tend to be smaller than those found in other regions, but still have the distinctive character and charm of the style.
The nation’s fastest-growing cities are nearly all in the South.
For the second year in a row, Georgetown, TX, a suburb about 30 miles north of Austin, experienced the most growth. Its population ballooned by about 14.4%, according to a recent U.S. Census Bureau report. The bureau looked at population growth between July 1, 2021, and July 1, 2022, in cities with at least 50,000 residents to come up with its list.
The median home list price in Georgetown was $525,000 in April, according to Realtor.com® data. That’s about $175,000 less than the $700,000 price tag in Austin. Plus, there are homes available in Georgetown. More than half of the homes in the suburb listed on Realtor.com are new construction.
The city is known as the “Red Poppy” capital of Texas for the flowers planted all over the city and hosts a red poppy festival every April to celebrate its nickname. It is also home to Southwestern University.
“Austin got so much more expensive that people flocked to the suburbs because they were somewhat less expensive,” says Gary Maler, executive director of the Texas Real Estate Research Center at Texas A&M University in College Station, TX. “There is just a lot of construction. … We haven’t been able to build it fast enough.”
Eight of the 10 fastest-growing cities were in the South: four in Texas (three suburbs of Austin and one outside of Dallas), three cities in Florida, and one in Arizona about 45 minutes east of Phoenix. All of the cities, except Santa Cruz, CA, boast significant numbers of newly constructed homes. That additional housing is likely to have helped many of these places attract new residents.
“Jobs in Texas outpace many other states. There’s a pro-business attitude in Texas. There’s a variety of cultures and sceneries in Texas. We have relatively lower costs than other states, although we’re starting to lose that,” says Maler.
However, the fastest-growing cities weren’t the largest. New York City with its 8.3 million residents, Los Angeles with nearly 4 million residents, and Chicago with about 2.7 million residents were the largest cities in the nation,
The 10 fastest-growing cities
Georgetown, TX Median home list price: $525,000
Santa Cruz, CA Median home list price: $1,924,000
Kyle, TX Median home list price: $400,000
Leander, TX Median home list price: $550,000
Little Elm, TX Median home list price: $505,000
Westfield, IN Median home list price: $570,000
Queen Creek, AZ Median home list price: $682,500
North Port, FL Median home list price: $399,000
Cape Coral, FL Median home list price: $515,000
Port St. Lucie, FL Median home list price: $450,000
Connecticut is known for its charming mix of coastal towns, rolling countryside, and historic landmarks. From the lively city of Hartford to the quaint village of Mystic, Connecticut has a variety of places to call home – and many home styles to consider. So if you’re looking to buy a home in Connecticut, there are plenty of styles representative of the region.
At Redfin, we’ve compiled a list of the 12 most popular Connecticut home styles, whether you’re looking to buy a home in New Haven or a vacation property by the beach. Let’s explore some quintessential Connecticut-style homes.
1) Saltbox
Saltbox homes are a historic and unique style located in various East Coast cities. These houses have a flat, front façade that faces the street, clapboard siding, with five or nine rectangular windows, depending on the style. Inside, saltbox homes have lots of natural light, high ceilings, and an attic space. Saltboxes are typically historic and preserved over the years, meaning you probably won’t find a new construction version.
2) Cape Cod
Cape Cod homes are a beloved and familiar house style in the US housing market, particularly along the East Coast and in states like Connecticut. Known for their symmetrical design, steep pitched roof, and large chimney, these are a popular home style for many. These single-story homes usually feature two to three bedrooms, an open floor plan, and plenty of windows to allow natural light to flood in. While most Cape Cod homes are single-story, you can find some multi-story homes. The exterior of these homes is typically made of cedar shingles, brick, stucco, or stone.
3) Colonial
With a history dating back to the early 1600s, Colonial homes are some of the oldest home styles found in the US. And it’s no surprise they’re a common Connecticut style home due to their East Coast origin. Despite variations in architectural styles, these homes share common features.
You’ll typically find a two-story design, steep gable or gambrel roof, and centrally-located fireplace or two fireplaces on the sides of the home. Homes have a variety of exterior designs whether in stone, wood, or brick. You’ll find symmetrical windows on the façade while the interior has formal living and dining rooms on the main floor, with bedrooms on the second level.
4) Contemporary
Contemporary homes offer a unique and modern look, with an emphasis on simplicity and functionality. These homes feature clean lines and a minimalist design, with a focus on natural light and open space. Expect to see a mix of materials like metal, glass, and concrete, for a look that’s both elegant and sophisticated.
5) Cottage
Cottages are a delightful home style that can be found all over Connecticut. They typically feature steeply-pitched gable roofs, with shingles, stone, or brick accents on the exterior, as well as an arched front door and porch. The floor plan of many cottages is asymmetrical, meaning that the layout is different on each side of the home. Interiors often have one or two bedrooms and bathrooms, as well as an open floor plan. Throughout the home, you’ll discover cozy details like fireplaces, exposed brick walls, and wood beams.
6) Craftsman
Craftsman homes in Connecticut offer a unique blend of natural materials and artistic design. These homes are known for their handcrafted details such as exposed beams, built-in cabinetry, and intricate woodwork. You’ll find an open floor plan with plenty of natural light, high ceilings, and large windows that frame the picturesque Connecticut landscape. The exterior typically includes a front porch with tapered columns, shingles or clapboard siding, and low-pitched rooflines.
7) Farmhouse
Farmhouses are a traditional home style that has stood the test of time, and you’ll find many beautiful examples throughout Connecticut. These homes were originally built on farms, but today they’re found in a variety of settings. Farmhouses typically feature a spacious layout with large kitchens and open living areas perfect for entertaining. Exteriors often have classic wood siding, a gabled roof, and a welcoming front porch. Inside, you’ll find plenty of storage space and charming wood accents that give the home a warm and inviting feel.
8) Greek Revival
Greek Revival homes in Connecticut are often found in historic districts and represent a significant part of the state’s architectural heritage. These houses typically feature grand, symmetrical facades with prominent columns or pilasters. The exteriors are often made of brick or painted wood, with a gabled roof and tall windows that provide ample natural light. The interiors are characterized by high ceilings, elaborate molding, and ornate fireplaces.
9) New construction
New construction homes often have a traditional New England architectural style. They feature modern amenities and energy-efficient designs. Many new homes are built with an open floor plan, high ceilings, large windows, and spacious living areas. New construction homes may include features such as smart home technology, gourmet kitchens, and designer finishes.
10) Ranch
Ranch homes, also known as ramblers, are not as common in Connecticut, but are still available in the state. Connecticut style ramblers typically feature a long, low-slung design with a simple, modern aesthetic. Many are built with brick or stone exteriors and large windows to take advantage of natural light. You’ll also find open floor plans and modern amenities.
11) Tudor
Tudor-style houses are a beautiful and unique option for those seeking a home with a bit of historical flair. These brick-exterior homes with white stucco and half-timbering details draw inspiration from England’s Tudor period and feature a romantic, slightly medieval design. Inside, you’ll often find exposed beams, rounded doors, and a mix of window styles, including oriel, diamond-shaped panes, and tall, narrow windows. Whether you’re looking for a spacious home in Connecticut or a cozy retreat, Tudor-style houses offer plenty of charm and character.
12) Victorian
Connecticut has a rich history of Victorian architecture, with many homes built in the late 1800s and early 1900s. One popular style is the Queen Anne Victorian, which has ornate details like turrets, towers, and wrap-around porches. Another popular style is the Second Empire Victorian, known for its mansard roof and dormer windows.
Gothic Revival Victorians are also common in Connecticut, with steeply-pitched roofs, pointed arches, and intricate woodwork. Lastly, Italianate Victorian homes, with their distinctive tall, narrow windows and decorative brackets are also a popular architectural style in Connecticut.
Real estate is a popular investment for several reasons, including the ability to generate online cash flow through rental income and the possibility for appreciation to increase the value of the investment over the long run.
When you think about investing in real estate, you probably think about owning rental properties and becoming a landlord.
Unfortunately, managing rental properties can require a lot of work and headaches, so many people choose not to go down this path.
Thankfully there are other ways to invest in real estate and get the perks without requiring you to become a landlord.
These hands-off real estate investments can be perfect for adding some diversification to your portfolio, or for serving as an introduction to the world of real estate investing.
If you’re interested in real estate as an investment but you don’t have the time or desire to manage properties and deal with tenants, here are 4 options that you can consider.
1. REITs
Through a real estate investment trust (REIT), investors can buy shares in real estate portfolios. REITs may own office buildings, retail properties, apartment complexes, hotels, and any other type of property. Most REITs specialize in a particular type of property, so there is a great deal of variety that is available to investors.
The REIT collects rent from tenants and then distributes the income to shareholders in the form of dividends.
REITs can be:
Publicly traded – listed on a national securities exchange where shares can be bought or sold, and regulated by the SEC.
Public but non-traded – not traded on a national securities exchange, but registered with the SEC.
Private – not traded on a national securities exchange and not registered with the SEC.
There are some significant differences between these types of REITs. One of the most important issues to consider is liquidity. Publicly traded REITs can be bought or sold easily, so liquidity is not an issue. However, non-traded REITs lack liquidity and you may need to hold the investment for at least few years. The specifics will vary from one REIT to another, but liquidity is something that should be considered when you are researching your options.
Although non-traded REITs may lack liquidity, they can make up for the lack of flexibility with higher returns. Of course, the performance will vary from one REIT to another, but the main reason to consider a non-traded REIT over a publicly traded REIT would be for the possibility of higher returns.
If you decide that a REIT may be the right type of investment for you, you’ll have plenty of options. See this list of the best REITs for 2019.
2. Real Estate Crowdfunding
Real estate crowdfunding was made possible by the passing of the JOBS Act in 2012. Like investing in a REIT, investing through a crowdfunding platform allows you to get many of the perks of real estate investing without the responsibilities of owning or managing property.
There are many different types and varieties of crowdfunding platforms, but they all allow investors to have an ownership interest with much smaller investments as compared to buying properties on your own.
Many crowdfunding platforms are open only to accredited investors, but there are several that are open to all investors.
To qualify as an accredited investor, you will need an annual income of at least $200,000 ($300,000 for joint filers) or a net worth of at least $1 million, excluding your primary residence.
It’s important to know if you qualify as an accredited investor because it will determine which crowdfunding platforms are available to you. But don’t worry if you’re not an accredited investor, there are still several good options, and we’ll look at them in just a minute.
Like REITs, crowdfunding platforms also tend to specialize, and there are platforms for all different types of real estate.
Some crowdfunding platforms allow you to invest in individual properties, where you can choose the specific investments, and others involve investing in a portfolio of properties.
Here are some of the leading real estate crowdfunding platforms.
Fundrise
Fundrise is one of the most popular crowdfunding platforms and it is open to all investors, regardless of whether you are accredited or non-accredited.
There is a minimum investment of $500, and it’s very quick and easy to get started. With the $500 investment, you can invest in their Starter Portfolio, which includes investment in apartment complexes, single-family rental homes, and commercial properties. Some of their projects are renovations and others are new construction.
Aside from the Starter Portfolio, Fundrise also offers 3 different Core Plans: Supplemental Income, Balanced Investing, and Long-Term Growth.
Fundrise lists historical annual returns of 8.7% – 12.4%.
Learn more in our Fundrise review.
Groundfloor
Groundfloor is a very unique platform. It is one of the only options for non-accredited investors to invest in individual projects, as opposed to the portfolio approach used by others, like Fundrise.
Groundfloor allows house flippers to get loans in a peer-to-peer lending style. As an investor, you can choose the exact projects that you want to invest in.
The investments through Groundfloor are short-term, typically 6-12 months, and they claim to produce 10% returns on average.
The minimum investment is just $10, which makes it accessible to anyone. All you need to do is pick the projects that you want to invest in, and get started.
You can view the details of each project, like the grade, interest rate, projected term, and loan to value.
To learn more, see our Groundfloor review.
DiversyFund
DiversyFund provides investors with the opportunity to diversify their holdings into a sector that has traditionally done very well, commercial real estate.
The minimum investment is only $500, and the fact that non-accredited investors can invest with them is a definite bonus.
DiversyFund is different from most other real estate crowdfunding platforms in that their REIT actually owns the multi-family apartment properties held in the trust. They buy, manage – and when necessary – sell properties in the trust.
You can expect a 7% preferred return before DiversyFund receives any profit split. Then investors earn 65% of the cash flow profits above the 7%. Once investors have made 12% per year, any remaining profits are split 50/50 between investors and DiversyFund.
To learn more, read our full DiversyFund review here.
RealtyMogul
RealtyMogul offers a few different types of investments, including individual properties and public non-traded REITs.
You’ll need to be an accredited investor in order to invest in the individual properties. These investments typically range from 3-7 years and require minimum investments from $15,000 – $50,000.
However, the REITs are open to all investors, but they do require a minimum investment of $5,000.
To learn more, see our RealtyMogul review.
Rich Uncles
Rich Uncles may be a great option for getting started with real estate because it is open to all investors, and because they have an incredibly-low minimum investment of just $5.
Like Fundrise, Rich Uncles takes a portfolio approach. You can invest in Rich Uncles through one of their REITs. They currently have two different REITs available, the BRIX REIT (student and multi-family housing, restaurants, convenience stores, and fitness centers) and the NNN REIT (single-tenant office, industrial and retail properties).
The BRIX REIT has an estimated annualized dividend of 6% and the NNN REIT has an estimated annualized dividend of 7%.
PeerStreet
Unlike the other platforms we’ve covered so far, PeerStreet is available only to accredited investors.
PeerStreet allows you to invest in private real estate loans with historical returns at 6-9%, with 6-36 month terms.
You’ll be able to pick the specific loans that you want to invest in, and you can invest a minimum of $1,000 per note.
To learn more, see our PeerStreet Review.
EquityMultiple
Like PeerStreet, EquityMultiple is an option only for accredited investors. Through EquityMultiple, you will be able to invest in commercial properties, and you’ll choose the specific projects that you want to invest in.
The investments will be in commercial real estate, with a minimum investment of $5,000. You can invest in syndicated debt, preferred equity, or equity.
Read our full review of EquityMultiple.
FarmTogether
FarmTogether is also only for accredited investors. It’s a bit different from the others in that it allows you to invest specifically in farmland properties.
Based in San Francisco, California, the company is relatively new but already has over $1 billion invested in farmland through their platform.
Farmland is a true alternative investment, one that is an actual physical commodity and that is an uncorrelated asset. It often maintains it’s value while stocks, bonds and real estate show sharp drops. Since 1972 it has outperformed every other major asset class!
FarmTogether aims to have annual returns of between 8%-15%, including yearly cash payouts of between 3%-9%.
The investments in farmland have a minimum investment of anywhere from $10,000-$25,000.
Read our full FarmTogether review here.
For a more in-depth look at the subject of real estate crowdfunding, please read Kevin’s Ultimate Guide to Real Estate Crowdfunding.
Crowdfunding Site
Fees
Account Minimum
Accredited Investor
Review
* Groundfloor
None
$10
No
Review
* DiversyFund
None
$500
No
Review
* Fundrise
1%/year
$500
No
Review
* RealtyMogul
0.30% – 0.50%/year
$5,000
No
Review
* stREITwise
3% up front fee, 2% annual management fee.
$1,000
No
Review
* FarmTogether
Intake fee of between 0.5% and 1.0%. 1% annual management fee.
$10,000
Yes
Review
CrowdStreet
None
$10,000
Yes
Review
Yieldstreet
1-4%/year
$2500
No
Equity Multiple
0.5% service charge + 10% of all profits
$5,000
Yes
Review
PeerStreet
0.25% – 1.0% setup fee
$1,000
Yes
Review
Sharestates
0-2% setup fee
$1,000
Yes
Patch of Land
0-3% of loan total
$1,000
Yes
Modiv
None
$1000
Yes
Review
RealCrowd
None
$5,000
Yes
Cadre
Intake fee of between 1-3%. 1.5-2% annual management fee.
$25,000
Yes
Review
3. Mutual Funds And ETFs
While REITs invest in real estate, there are mutual funds and ETFs that invest in REITs, which essentially allows you to spread your investment across several different REITs.
Likewise, there are also ETFs that invest in REITs.
Because mutual funds and ETFs are quick and easy to buy and sell, this presents a very easy option for getting started quickly. If you already have account somewhere like Vanguard or Fidelity, you can easily find a number of options.
This article covers a number of the best real estate mutual funds, and this article covers the best real estate ETFs.
4. Invest In The Industry
The last option that we’ll look at is to invest in the industry. This may be considered an indirect way to invest in real estate, but it could be a good option, depending on your situation.
You can buy stock of business in construction and other real estate types of industries. It’s a different approach than investing in rental properties or commercial properties, but your investment will be influenced by the real estate market as a whole.
There Are Lots Of Real Estate Investing Opportunities
Real estate presents plenty of different investment opportunities.
If you’ve never really considered investing in real estate because you don’t want to own rental properties or be a landlord, you may want to look at these options discussed in this article.
The options listed can provide an excellent introduction to real estate without putting any extra burden or commitments on yourself.
Homebuilders, whose sentiment hit the midpoint mark of 50 earlier this month for the first-time since July 2022, have yet another reason to celebrate. The sales pace of new homes has also increased for the fifth consecutive month, according to data published on Tuesday by the U.S. Census Bureau and the Department of Housing and Urban Development (HUD).
In April, the sales pace of new homes rose 4.1% compared to March, hitting a seasonally adjusted annual rate of 683,000. On a year-over-year basis, new home sales were up 11.8%.
“Demand for newly built homes has been strong amidst the historically low inventory of existing homes for sale,” Lisa Sturtevant, the chief economist at Bright MLS, said in a statement. “This spring, new home sales are a more important part of the market than they would be in a more typical year. In April, new single-family home sales were about 14% of total home sales nationwide. Typically, sales of new single-family homes account for less than 10%.”
While the national inventory of single-family homes is down more than 50% compared to the level in early May 2019, the inventory of new homes for sale at the end of April (433,000 homes) is up 30% compared to the end of April 2019.
However, experts note that the existing home inventory trough won’t last forever.
“The inventory of existing homes is so low because so many people are “locked in” to rock bottom mortgage rates, but the “locked-in” effect should ease somewhat in the coming months,” Sturtevant said. “While rates are not expected to drop significantly, individuals and families who have been putting off moving will decide they have waited long enough. The uptick in new construction will help these more discretionary movers because now they see more options available.”
Although the sales pace increased in April, the median sales price fell slightly to $420,800, compared to $449,800 in March, as builders continued to utilize price drops and incentives to entice buyers.
“The backlog of new construction homes started in the last year or so is making its way online and most builders and projects are offering some incentives to offset affordability constraints,” Nicole Bachaud, Zillow’s senior economist, said in a statement. “This is helping to bump up new home sales at a time when existing home sales are sliding.”
Regionally, the sales pace was up in the Midwest (76,000 homes) and the South (443,000 homes) on a month-over-month basis, with the South recording the larger increase at 17.8%.
The West (140,000 homes) and the Northeast (24,000 homes) fell on a monthly basis, recording decreases of 9.1% and 58.6%, respectively.
On a yearly basis, the Northeast (-46.7%) and the West (-2.8%) again recorded drops, while the Midwest (20.6%) and the South (23.4%) recorded increases.