Certainly the recent comments of the President that “Trade Wars are Good” don’t help settle the volatility in the stock markets. Strong inflation and cost of living rises, potential trade wars, along with high mortgage rates are serious threats.
In this post we try to take an objective look at the unthinkable. At least, it’s unthinkable for some that booming markets in Los Angeles, San Fransciso, Sacramento, San Jose, Seattle, Denver, Las Vegas, Dallas, Charlotte, Boston and Miami could possibly collapse. Is the Toronto housing bubble (worst in world now) the future for US cities?
Going back to 2007, did anyone suspect what was about to happen?
Are you spooked about the real estate market in 2018 or 2019? Is the market sufficiently over heated? When will interest rates become a problem? The recent jobs report was strong, although wages aren’t overheating. Supply is coming online.
Take a look at the 12 Top Crash Factors listed below do help decide whethery buying a house or rental apartment is still a wise decision.
The recent stock market correction gives us pause for thought about how volatility can factor into a housing crash. However, the housing market is healthy with construction rising and it will be a long time before demand is satisfied.
Mathematicians have studied housing bubbles, such as The University of Pennsylvania, and their HOUSING BUBBLE STRUCTURAL MODEL AND HYPOTHESES models couldn’t figure it out. The factors they studied do play a role, but housing bubbles and crashes are likely a cultural phenomenon (outside of major recessions). It comes down to values, dreams and panic emotions.
There are some financial market players who make their fortune on crashes and if consumemrs are miffed about the direction of the market, it would be fertile ground for crash talk.
As long as Americans are employed with rising wages and growing GDP, housing crashes aren’t likely. Yet, a few experts such as Harry Dent are convinced a housing market disaster looms in the next few years. Even Anthony Robbins is speaking up about it in a video below.
A growing number of homeowners and buyers are talking housing bubble. With prices stable, economy strong, and demand persistent, why would so many feel the market could crash? Is buyer and seller pessimism enough to launch a sudden collapse?
Have a good look at the current housing market along with the residential markets in cities such as Boston, Houston, Seattle, Sacramento, and Los Angeles. If you or your family are considering buying a home or condo, it’s wise to understand the macroecomic and human factors.
There’s two camps on the 2018 crash issue. First those who see the unbelievable rate of economic growth in the US and believe it has to end; and secondly, those who see only positive signals and the solid political footing of the Trump administration in its resolution to bring good paying jobs and industry back to the US.
Even if the US is headed for greater things, it doesn’t preclude the possibility of a major market correction in housing. But for housing to crash, a series of factors would have to align.
12 Housing Crash Factors
excessively high home prices via a price bubble
increasing underwater mortgages
fast rising interest mortgage rates
slowing economy and sudden rises in unemployment
wage growth not keeping up with home prices
tax changes and geo-political shifts
trade deal disturbance
a stock market bubble and volatility
high level of consumer debt affecting debt servicing
We might add a very strong US dollar to the mix too. A strong dollar makes US exports too expensive thus threatening jobs here and making imports more attractive.
Even though the housing markets have substantial strength, the world is a very connected place. If China and other economies were to collapse, it might be enough to send the stock markets and real estate markets plummeting. Dent says New York, Los Angeles, San Francisco, Chicago and Boston are the riskiest markets.
What did say Mellon Bank’s expert say back in 2014, about the source of recessions?
Neil Kashkari talks extensively about false prophets (Alan Greenspan) and the sources of market bubbles such as $100 barrel oil, and other uncontrollable situations. He says market bubbles and crashes are very complex and the source is often completely unexpected. Could the oil sheiks take the US economy down again? Could China do it? Is the $20 Trillion debt a threat? Or is just the end of a bull run in the stock market?
“However, in those cases where debt is fueling the asset value increase, a correction could trigger financial instability, because banks might take huge losses and potentially fail.” — Neil Kashkari.
The turbulence of the election, rising interest rates against overheated housing markets does give some plausibility to a US housing crash in 2018 or 2019. Proponents of an upcoming crash point to too many Americans living lavish lifestyles, still buying expensive foreign luxury cars on a $40,000 salary, while sitting on over-leveraged monster mortgages that could be subject to quickly rising mortgage rates.
In San Francisco, the risk of a bubble burst in 2018/2019 is highest and that city is ranked number 1 as highest for a crash. Prices in the San Francisco Bay area housing market are extremely high and if the tech sector does have an extended downtick with rising mortgage rates, perhaps the forecasted slide could start.
Top 10 Cities Most Likely to Experience a Housing Crash
From a report in AOL.com here are the top ten US Cities most likely to experience a crash:
Los Angeles, CA
Salt Lake City, UT
San Jose, CA
San Francisco, CA
Interesting list, dominated by California and Texas, which have been doing well economically. With oil and gas prices predicted to keep rising, I wonder if that will calm the situation in Dallas and Houston? A good number of people are inquiring about a Florida housing crash as well, yet Miami isn’t the whole Florida market.
Tyler Durden of zerohedge.com discusses in a post how homeowners are burdened in debt and unable to refinance their mortgages. He points to his key statistic that mortgage owners will not be refinancing their mortgages in 2017 which points in the direction of bubble bursts and crashes.
This chart below paints a very scary picture, that it’s worse than 2006. Not only does it correlate 2017 with 2006, it shows that we’re up high on a dangerous cliff in some cities. However, most cities aren’t in this situation, so if a collapse in California, New York and Texas were to occur, other cities might survive okay.
There are other mitigating factors too such as the strengths in the economy, foreign investors buying property, and rising optimism and confidence since Trump won the election. At this point, we’re wondering if Obama and Clinton are relieved not to have to face the mess they created? Trump seems to be up to the task and yet, he has purportedly said he would enjoy watching the crash, even if it takes down some of his real estate empire. Is this just a comment on high home prices?
The cost and availability of credit provide fuel for a bubble to inflate, inviting even less experienced, or less credit-worthy players into the game, all of whom believe they will sell their recently purchased assets at ever-increasing prices — from a CNBC post.
That credit is being freed up in 2018/2019, but will it fast enough to create huge instability if mortgage rates don’t rise precipitously? Here’s Seattlebubble’s reasoning on why we may not be in a housing bubble/crash situation:
still lots of all-cash buyers, with few zero-down buyers
no crazy neg-am, fog-a-mirror, interest-only home loans like last time
interest rates remaining low
affordability index not as bad
buyers and lenders more cautious
Home prices aren’t as high as they were in 2006/2007 and mortgage rates are much lower:
No one will dispute that there are big risks but for 2017, everything looks to be under control.
Disclaimer: this post/information is meant as a discussion of housing and investing issues, ideas and trends, not as advice for investment. Please use good judgement and professional advice if you’re investing in any market whether stocks or real estate.
May 18, 2018. Your Epic report and forecast of the 2018/2019 US housing market offers facts, data, perspective, predictions, price factors, expert opinion and forecasted trends from sources such as NAR, Trulia, Freddie Mac, Zillow, Case Shiller, Trading Economics, and more.
NAR reports that existing home sales grew in April, 1.1% which is well up from the 1.2% loss 12 months ago. See the NAR charts below for others stats and which are the hottest markets for April.
Spring Market is Starting Strong
It’s an unusual spring market given the growing purchasing power of home buyers in low to mid market prices. That makes it a great market for those looking to sell their current home to trade up to a better one.
Resale home transactions rose 1.1% in March showing clealy that buyers are hungry to buy. However, listings have declined 7.2% and prices have risen 5.8% versus last March.
It’s a sellers market and it will be for some time. If you’re hunting for houses for sale, you’d better have an advanced search strategy.
The dwindling numbers of homes for sale should push prices upward in Los Angeles, San Diego, Boston, Denver, Las Vegas, Dallas, Miami, Seattle, New York, and Houston . It’s all driven by a wildly successful economy and a resistance by local and state governments to support home development in their jurisdictions.
Please feel free to use this material on Linkedin and Facebook. It’s an important topic for buyers and sellers who face a big decision about buying a home or condo in 2018 as home prices and mortgage rates rise.
NAR’s March Update
Homes sales have risen for 2 months straight, however they’re down 1.1% from same time last year. Although prices haven’t hit the 2007 records, they are too high for most to afford even though wages have grown. Home prices are now running at double the average wage increase.
The median existing-home price for all housing types in March was $250,400, up 5.8 percent from March 2017 ($236,600). March’s price increase marks the 73rd straight month of year-over-year gains — from NAR
Boston, New York, New Jersey
March existing-home sales in the Northeast jumped 6.3 percent to an annual rate of 680,000, but are still 9.3 percent below a year ago. The median price in the Northeast was $270,600, which is 3.3 percent above March 2017 – from NAR update.
Housing inventory is the most influential and persistent factor affecting home prices. Despite this, the media and some politicians blame speculation, building costs, interest and mortgage rates, cost of living, and mortgage rules. When the economy is good people want homes. Construction is strong but can’t keep up. Simple rule of supply vs demand is driving home prices.
Looking for housing market predictions? Take a good look at prices, GDP, wages, jobs, and other key data below on the US Economy for the next 6 years and you may see a surprisingly positive picture, far from the dread of the recent stock market corrections.
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Should you Buy or Rent?
We all want to own a home, but does it make more sense to rent? If you can’t afford a home in New York, Boston, Los Angeles, San Francisco, or Dallas, renting may be the only option. Here’s a few blog posts I’ve written on the US rental housing market, apartment prices, and on buying vs renting.
What’s Driving the California Housing Market?
Strong demand from an eager demographic and economy is clashing with local resident NIMBYism to create a volatile market. See the California housing report.
This completely updated EPIC United States Housing Report has market updates and predictions for 2018 to 2020, and other data to 2026.
NAR’s VP of research Paul Bishop, predicts sales will be flat for 2018.
One of the biggest challenges is going to be in certain high-cost parts of the country where they have high home prices, relatively high property taxes or high state income taxes, then that’s ultimately going to make the cost of owning a home more expensive.
In addition, renters may lose the incentive to buy a home in high-cost areas if they can’t use the mortgage interest deduction or the ability to deduct some of those other housing-related costs from their taxes. It’s focused mostly on the higher cost areas. It’s certainly something that everyone will be monitoring and how the housing market reacts in 2018 and 2019 — from a news release on DSnews.com.
In this post, you’ll discover the hottest city markets, zip codes, get economic, employment, finance, and housing projections to understand the key fundamentals driving home buying, rental investment, home construction, and the real estate markets in 2018/2019 to 2026. Read thoroughly if you’re considering buying a house this year.
What’s the story for summer of 2018? It has to be Texas and Michigan, however the overall picture is of a very good spring and summer for the housing market nationwide and going forward to 2026. Population growth in San Francisco, Seattle, Los Angeles, Denver, Miami, Houston, Sacramento, Las Vegas and Phoenix continues strong.
The Complete Picture for 2018
Ready to choose your realtor and buy a house or condo this year? The outlook is really rosy! And how about investing in a rental income property for sustained passive income? This current lull might make the next 3 months the best time to buy. The outlook is as positive as could be for buyers. Lock in your mortgage rate.
Overall, predictions and outlook for the US housing marketare positive. That’s because the US economy is on its strongest roll ever, bolstered by lower taxes, improved trading agreements, growing American confidence, happiness, comfort, freedom and the American dream has been kindled again.
Are you considering buying homes for sale as an income investment? With Apartment rent prices holding strong in 2018, it’s a solid investment strategy.
This graphic below courtesy of Trading Economics shows how the real estate market will be healthy for some time, and that buying a home is a wise investment (Tradingeconomics is a very informative site, have a visit afterward).
Increased government spending, low but slowly rising interest rates, and the repatriation of business and corporate funds back to the US means it’s a healthy, safe market for everyone.
Foreign investment has been strong because the world knows, the US is the place to be. American’s have always had a great attitude toward risk and business growth. Now the economy and business markets are allowing that spirit an opportunity to pay off.
NAR/Realtor Outlook on the Housing Market
Realtor.com® 2018 Forecast
Home price appreciation
Average 4.6% mortage rates in 2018 to 5.0% (30 year fixed) by year end
Existing home sales
2.5% growth, low inventory problem easing
3% growth in home building 7% growth in houses
New home sales
Growth of 7%
Home ownership rate
Stabilizing at 63.9% nationally
Despite the market correction, experts feel this bull market could continue as long as business keeps coming back to the US. That’s a long process of repatriation. In the meantime, the jobs picture, wage growth, investment, and profit growth are giving real estate participants a lot of optimism.
The resistance to housing development is slowing. Conservatives are giving up amidst intense pressure by those facing outrageous housing shortages and skyrocketing rental prices.
Housing Shortages Won’t Ease
Although January’s sales were disappointing, it’s due to the severe shortage of housing. Demand is there and you’ll be competing against a hoard of buyers in 2018. Corelogic expects 2018’s home prices will grow 4.3% by next December. NAR and Realtors® expect only a 3% growth in prices this year. Nevada, Texas, Washington, and Florida are the states with the best outlook, and perhaps the best places to buy homes or rental properties.
The Bay Area, Portland, and Seattle areas saw the highest growth in prices last year while LA’s tumbled. Listings fell dramatically in cental California, Oregon, Washington, and New York.
Consumer mood was not so good in July of last year, mostly due to government problems. Yet the market came flying back. These challenges overcome mean more Americans will have more confidence in their personal situation.
The tax cuts should help although the Fed is counteracting that growth with a questionable raising of interest rates which seems to have sparked the sudden stock market volatility. Although some disincentives are present for home buying in certain price ranges, that will help keep the market balanced for 2018.
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A brief overview of January 2018 from NAR.
Housing Demand 2018: More Buyers Joining the Party
Housing market demand predictions: Demand 2018 will see stronger demand as young buyers have more savings to invest in a home and are getting closeer to being able to purchase a home.
Housing demand is also being supplemented by bankruptcy survivors who waited out their 7 year exile joining first time buyer millennials, babyboomers, immigrants, foreign investors (Canadian and Chinese), and even gen Xers, all of whom are looking for houses for sale.
New Home Construction Starts: Still Strong in 2018
New home building shows continued strengths, and should pick up by late spring when builders see a return of demand. Last February’s demand was also subdued.
The cost of living is rising and it means workers and businesses in cities such as New York, Los Angeles, San Francisco, Seattle, San Jose, Miami, San Diego, and Boston may migrate to cheaper cities such as Houston, Austin, and San Antonio. This is where job growth is best and housing is cheapest.
The price of apartment rental in cities such as Seattle, San Francisco, and San Jose Rents are extreme examples of the migration out of high priced areas. With limited housing and a strong economy, prices in San Francisco and the Bay Area cannot fall.
Inflation, Labor Shortages, and Building Supplies
Labor shortages, rising mortgage rates, and higher lumber costs are looming which could mean house prices will rise. With nowhere to go, homeowners are resisting selling. The hope that the resale market will come to the rescue might be unrealistic and and perhaps even fewer resale houses will be for sale. This fall, new home sales have been brisk as reported by the Commerce Department.
Mortgage Rates on the Rise
15 year fixed rate mortgages are still a bargain compared to historical averages. A home at these interest rates has to be considered a big savings, compared to the added price.
Let’s start off with the newly released 2018 Forecast from Freddie Mac. The predict a good year ahead with a solid 5% growth in price. They note that the aging population could keep demand subdued although limited housing for sale should create upward price pressure.
The need to refinance is low, homeowners aren’t too stressed out, and they’re using home equity to buy things which is good for the economy. Overall, Freddie Mac’s report is positive for 2018.
Home Sales Expect to Rise Nationally
Freddie Mac Predicts strong sales driven by moderating prices nationally.
And as this graphic from Freddie Mac’s report shows, price appreciation is much less than before the last recession.
Hottest Real Estate Markets This Past Summer
According to NAR’s latest report, San Francisco is again the hottest city, taking back the number one spot from San Jose. The hottest small city is Vallejo California, enjoying a spillover from the Bay Area market. Investors and buyers will be hard pressed to find buying opportunities are.
Silicon Valley prices will pressure businesses to look to cheaper cities such as San Antonio, Las Vegas, Houston, Austin, etc in 2018/2019.
Hottest Real Estate Markets in April 2018
Where are the hottest cities in the US? They’re all over this month and only 3 from California made the new top 20 list.
Hottest Cities for Investment Value
This chart from NAR shows where employment growth is strongest and the ratio of recent employment growth to homes being built. That’s a great stat for rental property investors looking for investment income in the best cities.
Compare that to wage growth and actual price appreciation. Again the Bay Area shows the best outlook for employment which has to be your top signal. However, rising oil prices and predictions for more, Texas may be your hottest state going through the summer.
Salt Lake City, Denver, Tampa, Dallas, Cape Coral/Naples, Charlotte, Las Vegas, Houston, San Diego, and Grand Rapids have great employment outlooks.
20 Hottest Housing Markets, January 2018 (Realtor.com)
Current Home Prices
San Francisco, CA
San Jose, CA
Colorado Springs, CO
San Diego, CA
Santa Rosa, CA
Los Angeles, CA
Santa Cruz, CA
Boise City, ID
Best cities for finding houses for sale and get a great return. For property investors or buyers with minimal cash, the cities of Kennewick, Detroit, Fort Wayne, Modesto, Fresno, and Waco look to offer the lowest prices on houses for sale. As usual, California and Texas lead the way, however Michigan is looking good with the President’s intention to bring the auto industry and related jobs back to the US.
In some markets such as California, home prices have leveled off a little from their relentless climb. There is a slight risk of a burst housing bubble. Outside of major city markets, the price growth potential in the next 5 years is highest. Some cities are hurting so invest carefully. Take a look at the best cities to invest in real estate and share your stories of which cities we should know about.
Here Panelists from the Urban Land Institution discusses 2017 and the next two year outlook:
Here’s 8 Reasons Why People Are Still Eager to Buy Real Estate:
home prices are appreciating and it’s a safe investment over the long term
millennials need a home to raise their families
rents are high giving property owners excellent ROI on rental properties
flips of older properties continue to create amazing returns
real property is less risky (unless you get over leveraged)
the economy is steady or improving (although Trump’s letting his enemies cause too much friction)
foreigners including Canadians are eager to own US property
bankrupt buyers are over their 7 year prohibition from the last recession and they can buy again.
Housing experts are predicting existing home sales of 6 to 6.5 million units in 2018 and then above 1.3 million new homes being built per month to 2024. The building is resuming now that the hurricanes and forest fires are over.
Will it be enough to support the economy? When American builders are feeling optimistic, it’s a good omen, however 1.5 million units per month is needed to fill forecasted demand for housing.
What’s also a good omen is what you’re going to read in this post. It may help you do many things in 2018, from finding employment (see the US Jobs forecast), to understanding politics, discovering high performing best investments 2017 to researching the best cities to live or buy houses or property in.
From Los Angeles to New York to Miami – Rental Property Equity/Income is King
These stats below are collected from top research and reporting companies including NAR, Forisk, Trading Economics, and other real estate market researchers.
Sharing is Good for your Social Health!
Pass this blog post onto your friends and neighbors because they should know as much about the forecast factors as possible before they buy or sell. It’s good to be helpful. Mistakes are painful!
Expert Predictions – US Housing
1. Expert Prediction from Eric Fox, vice president of statistical and economic modeling (VeroForecast) — The top forecast markets shows price appreciation in the 10% to 11% range. The top forecast market is Seattle, Washington at 11.2%, followed by Portland, Oregon at 11.1% and Denver, Colorado at 9.9%.
These economies have robust economies, growing populations and no more than two month’s supply of homes. In fact, the forecast of the Boston market increase sharply to 7.4% is due to reductions in inventory and unemployment. On the other hand, the worst performing market is Kington, New York with 2.5% depreciation, followed by Ocean City, New Jersey at -2.1%, Kingsport, Tennessee at -1.9% and Atlantic City, New Jersey and San Angelo, Texas tied at -1.4%. — BusinessWire
2. Pantheon Macro Chief Economist Ian Shepherdson explains that “Homebuilders behavior likely is a continuing echo of their experience during the crash. No one wants to be caught with excess inventory during a sudden downshift in demand. In this cycle, the pursuit of market share and volumes is less important than profitability and balance sheet resilience.” — Marketwatch.
US Mortgage rates are forecast to stay low. Yet recently, mortgage rates have risen above the 4% mark and homeowners are locking in their home loans at the 30 year period. Some are calling this the Trump Effect. With Trump in power, lending requirements are expected to be eased, land opened up for development, and this should stimulate home purchases. With employment growing and wages moderating upward, the market is set for growth. Yet, some housing forecasters still cling to the idea that housing starts will moderate after strong growth to 2020.
US Employment Outlook 2018 to 2024
According to BLS the job outlook is positive. Construction added 36,000 jobs in January, with 226,000 more than last year, with most of the increase occurring among specialty trade contractors (+26,000). Residential building construction trended up by 5,000 jobs. Total employment should grow by another 4,000,000 to 2024.
National Employment Growth
Growth Predictions, 2014–24
Median annual wage, 2014
Total, all occupations
Job Growth by Occupation to 2026
2016 National Employment Matrix title and code (Chart data courtesy of BLS
Median annual wage 2016
Total, all occupations
Personal care aides
Combined food preparation and serving workers, including fast food
Home health aides
Software developers, applications
Janitors and cleaners, except maids and housekeeping cleaners
General and operations managers
Laborers and freight, stock, and material movers, hand
Waiters and waitresses
Accountants and auditors
Market research analysts and marketing specialists
Customer service representatives
Landscaping and groundskeeping workers
Maintenance and repair workers, general
Heavy and tractor-trailer truck drivers
Elementary school teachers, except special education
Stock clerks and order fillers
Teachers and instructors, all other
Receptionists and information clerks
Sales representatives, services, all other
Business operations specialists, all other
Licensed practical and licensed vocational nurses
US Housing Starts to 2024
This enlightening stat in the graphic below shows the US economy hasn’t recovered from the great recession and housing crash of 2007. Single family spending is rising rapidly, yet no one believes conditions for high inflation exist. It points to years of solid, healthy growth ahead with an unfulfilled demand for single detached homes.
Graphic courtesy of paper-money.blogspot.ca
Graphic courtesy of paper-money.blogspot.ca
Housing and Interest Rate Forecast to 2019
Housing Activity (000)
Total Housing Starts
New Single Family Sales
Existing Single-Family Home Sales
Federal Funds Rate
90 day T Bill Rate
One Year Maturity
Ten Year Maturity
Freddie Mac Commitment Rates:
Fixed Rate Mortgages
Data are averages of seasonally adjusted quarterly data and may not match annual
Employment Outlook: Let’s not forget jobs. Total employed persons in the US will grow 800,000 over the next 2 years.
Graphic courtesy of tradingeconomics.com/united-states/forecast
Existing homes or resale home sales, may slow slightly but US construction spending will increase. Prices will rise to 2020 and construction spending will grow through 2020.
Graphic courtesy of tradingeconomics.com/united-states/forecast
Apartment Rental Forecast
Demand for apartment rentals is on the rise and construction starts of multi-unit dwellings is rising to match demand. That creates more opportunity for rental property investors to grow their portfolios in 2018. Yardi says YOY rent growth was 3.0% and they expect rent growth to remain in the 2.5% range.
Bookmark this page and return for further housing market forecasts, predictions, expert opinions and market data for most major US cities including New York, Los Angeles, Palm Beach, Miami, For Lauderdale, Orlando, Boca Raton, Wellington, Delray Beach, Boyton Beach, Phoenix, Denver, Seattle, Chicago, Boston, New York, Dallas, Houston, San Antonio, Austin, St Louis, Minneapolis, Green Bay, Charlotte, Tampa, Toronto, Vancouver, Montreal, Ottawa, Oshawa, Hamilton, Newmarket/Aurora, Richmond Hill, Oakville, Calgary, Kelowna, Mississauga, Anaheim, Beverly Hills, Malibu, San Diego, San Francisco, San Jose, Fresno, and other cities in the states of Florida, Texas, California, Massachusetts, Oregon, Washington, New York, New Jersey, North Carolina, Georgia, Illinois, Michigan, Ohio, Arizona, Nevada, Minnesota, Alaska, Hawaii, Utah, New Mexico, Lousiana, Alabama, Maryland and Pennsylvania.
What are the Best Home Renovations for Maximum ROI?
Home prices may be plateauing but we’re far from a housing crash or stock market crash in 2018. If you think selling your home is the prudent decision, then it’s time to create a plan that includes dressing it up for market.
You can sell your house for more with a blitz marketing strategy and by doing some renovation. You don’t have to advertise it of course. Let buyers be amazed with your upgraded home.
Below are the Top 10 House Renos and links to other helpful resources to assist in your reno decision and sell it for the highest price. You’ll find it does make a difference in your sales results.
Which are the renovations that will bring the biggest return in 2018? You might be intrigued by the numbers from Metrostudy’s renovation index and report for the last quarter. Homeowners and sellers are spending 5% more on renos and they’re likely spending it in bathroom and kitchen upgrades or overhauls.
If you’re strategic, you might be able to get more professional results over several rooms, instead of use one room.
We’ve got the help of Houzz and the HGTV home renovation empire to help us stay on top of trends with a list of your best bets below.
With the real estate markets in some cities cooling (except Vancouver) and with a slight chance of a housing crash in cities such as the SF Bay Area, Toronto, Dallas, Denver and so on, homeowners are having to dress up their property to get a great price. If you can get the financing, and you choose the right renos that buyers like today, and it should be money well spent.
Homeadvisor.com conducted a survey of almost 4,000 members of house renovation costs:
And How About that Beach House Reno?
Are you selling your oceanside or country cottage? With the prices Airbnb are charging for vacation rentals, make sure your prospective cottage buyers understand the full possibilities. Build the features that draw buyers and renters into a frenzy.
The returns house flippers are getting on some houses (40%) suggests it is well worth it. And if the house is earning rental income returns, then it’s a no brainer if you can get the funding to proceed. Apart from tear downs, HGTV has shown that renos can elevate the price of normal homes considerably and help get the house sold fast.
The added beauty of your renovated house will help your Realtor to build a multiple offer, over asking buying frenzy. And that’s still happening now in the fall of 2017.
HGTV’s recent post on the best renovations to help sell a house sell includes these 10 possibilities:
Light Bathroom Reno: 98% ROI: Why only 98? Because a light reno may not remove the stagnancy of a bygone era nor the odor or wood rot! But it does get rid of the worst flooring and fixture issues.
2. Landscaping: 100% ROI: Why? Because value is about perception, especially public perception so anything to do with the exterior and curb appeal is evaluated strongly.
3. Light Kitchen Remodel: 98% ROI. Why? If the layout’s okay and it’s done right, it’s a great way to make the house look new, clean, functional, and inviting. Replace the flooring and fixtures and refinish the cabinets and it might do the trick. Buyers may overrate the importance of the kitchen these days. Something to consider.
4. Exterior Improvement: 95% ROI. Why? New siding adds energy efficiency and gives the house amazing curb appeal. Stone facades are very attractive but expensive. Siding still gets good reviews. Take a good look at the exteriors of new homes and adopt some ideas from them.
5. Attic Bedroom Conversion: 93.5% ROI. Why? An additional bedroom puts your house into a whole class of price, so any addition to code can help. The attic is popular with kids and offers great outside views.
6. Major Bathroom Reno: 93% ROI. Why? Prestige. The new bathrooms usually have the latest in glass walls, high tech fixtures, soaking tubs, ceramic floors, recessed lighting, and big picture windows to make buyers believe they have their own soothing spa. Stress is a big negative in people’s lives.
7. Major kitchen remodel: 91% ROI. Why? When Chip and Joanna, or the Property Brothers show the completed new kitchen reno, it’s modern, open concept, and gives buyers exactly what they want. Not just a kitchen, it’s more like a lifestyle command center with the best appliances and Chi possible.
8. Deck, Patio or Porch Addition: 90% ROI. Why? Well, you’ve watched enough Disaster Deck shows to know they create a whole new living space which makes the buyer think they’re getting a big bonus with a great view.
9. Basement Remodel: 90% ROI. Why? This one’s a little dicey. Basements are typically not well used even when they’re halfway above ground. If a house has limited room upstairs then the basement reno makes a lot of sense and that’s where the return will be high.
10. Replacement Windows. 89% ROI. Why? If the old windows are shoddy and leaky, then you have no choice. Big picture windows, and casement windows that swing open for air movement are very functional. Can’t compare to a kitchen or bathroom reno, but with lower value houses, it could be the upgrade to go with.
Are You Finding the Right Consultant/Agency for Your Business?
Has the deluge of noise in digital marketing become too much for you to bear? Well, hang in there because all you might need is a few pointers and some enouragement to get some clarity. Since marketing is pivotal to success now, picking the right consultant or agency is particularly important.
The right agency or consultant or agency will stand out through their plentiful questions that show they understand your business. They may be thought leaders.
They’ll also be more helpful and generous with insight, and they’ll show a willingness to learn and adapt to the actual needs/challenges you describe. On their website, you’ll understand their value proposition quickly and they will stand out as unique and capable.
Right off the bat, you’ve got some good indications, but you need to dig deeper.
The Key Business Asset – Your Agency or Consultant
The best won’t often be the wealthiest ones you speak with, however if they have a wealth of talented staff, good software, and other assets, it can make a difference. Besides brains, energy, drive, and experience, what is it about them that will make them the most important business asset you’ll have? Let’s take a look.
Does your current marketing agency listen to you? Do they encourage you? Do they find the right solution, or just the ones they sell? Is their focus short term? Do you think they’re ready for the future?
Every Executive’s Challenge: How to Achieve Clarity
Your mind is frazzled and you’ve become entrenched in a losing position, so I thought I’d give you a simple, focused list of marketing services provider attributes, and a plan of action.
Expert Opinions: “Instead of understanding the buyer, and presenting a solution from a buyer’s perspective, too much emphasis is placed on the features and details of the product/service that’s being sold and on the credentials of the provider themselves.” — Richard Young of Pipeliner Sales
Having the Right Questions
do they have real expertise in the key areas you’re failing in?
can they provide a complete assessment so you know they understand your business, what is failing, and how they will fit in?
what is the cost vs revenue of their solution?
is their content marketing good enough?
are they an actual expert in their digital marketing field?
are they creative geniuses?
are they an expert in your field?
have they become a master in other client industries?
are they offering temporary or long term results?
what does their website/social activity indicate about them?
how will they add value?
are they up on the latest strategies and software?
Certainly, a track record of success, decades of experience and client testimonials can help. And complete money back guarantees are quite an incentive for cash strapped, nervous SMB owners. However, these would come after you’ve answered the basic “can do” abilities in the list above.
As a digital marketing services provider, it’s easy for me to see through the promotional tactics used to lure client prospects. The top ones involve hiding behind cool trendy web design, buzzwords, and “staff party photos.”
Perhaps the key is finding a modest provider with multiple skills/services who is willing to dedicate to your business. Most agencies can’t do that because of their massive overhead and a staff with a limited range of expertise. Yet, keeping up isn’t easy and agencies have a difficult time finding good people.
It’s wise to find a marketing provider with impressive skills and a willingness to become an expert in your field. Industry expertise is a saleable benefit for marketers. Technological expertise, thought leadership, and the ability to write persuasively and in an engaging manner can make a big difference in content strategy results for instance. Ask yourself whether this provider is going anywhere.
Your New 5 Point Plan of Action
1. find a digital marketer with demonstrated skills and ask them to do a thorough digital marketing assessment
2. assess their skill and knowledge of your industry
3. listen to their questions – it tells you whether they understand your business and your needs
4. build a digital marketing strategy and prioritize which channels will make a difference
5. hire a digital marketer who is eager to dedicate themselves to your company
I hope this list of attributes of a dedicated, digital marketing provider helps you focus on what you need to do. Right now you’re probably feeling good so use this moment to move ahead, investigate and make a decision.
That’s the gist of good decision making. Slow down, be calm, find the essentials, and buy the services that match your actual needs.
If you have me conduct your digital marketing audit, I can explore and discover those missing gaps and what the causes are. Your assessment is one great way to quieten all the noise.
Get focused and feeling good then contact me when you’re ready at 416 998 6246.
Dreaming of a better place in US to live in 2018? You’re not alone. Millions of people think about moving to another city, but aren’t sure of which US cities hold the most promise for enjoyment, lifestyle, housing, health care, education for kids, and future job prospects.
If you were going to move anywhere in the US, which cities would you choose? Are you ready to sell your home for the best price, use a system to find the best house, search for a great job, and finally enjoy a new lifestyle? Check out the list of best cities to live in below.
Americans are more mobile than ever, and migration has been strong to some states such as California. The Millennial generation in particular are more open to moving to another city to launch their careers. And too, baby boomer retirees are looking for places to raise the quality of their lives.
It’s wise to know if your state is a dead end in terms of employment and economies. Ask Michigan Millennials and Gen Xers if opportunity in a state can dry up. And ask Californians if high tech fortunes can draw Millennials. The answer is a resounding yes, and people will migrate to capture those jobs and other opportunity. Check the US job forecast for US Cities and the US housing market too.
However, it’s not always about an affordable retirement or great jobs. Sometimes what people want are better communities, nicer weather, and a higher quality of life. But which cities are best for combining all of these benefits?
Whatever version of a better life draws your attention, you’ll find the best cities to live in ranked below by three different organizations. If on different lists you find one city keeps popping up, you might want to drill down to find out more about it. Find out why it’s sending out good vibes and what it is that makes it so special.
And for retirees, which cities offer affordability, safety and health care?
Which are the best States to Live?
Some states have zero income tax, such as Florida and Texas, but other than that big incentive, is the attraction of a state important enough to draw you to one of its cities?
Best Cities Lists from Niche.com, BusinessInsider, and US News.
Here are the ratings of the Best US cities to live, as taken from 3 different surveys. It appears the city of Austin Texas draws a lot of votes as the best place to call home. Why they choose Austin might be a good cue for your own rankings.
Why is Austin considered the best city in the US? It could be job prospects, climate, low cost of housing or renting, low unemployment, and short commute times. Austin is also considered somewhat of a boomtown, despite the lower price of oil which has driven the Texas economy. Texas has no state income tax which could be a big incentive for many start-ups and workers considering relocating there. The more you check out the lifestyle in Austin, the more you’ll agree, that overall, this place is perhaps the best city in the US.
Ann Arbor, MI
San Jose, CA
Colorado Springs, CO
The Woodlands, TX
Raleigh and Durham, NC
Overland Park, KS
San Francisco, CA
Des Moines, IO
San Jose, CA
Colorado Springs, CO
Des Moines, IA
Minneapolis-St. Paul, MN
Grand Rapids, MI
Dallas Fort-Worth, TX
San Francisco, CA
Round Rock, TX
San Diego, CA
Grand Rapids, MI
Fort Collins, CO
Dallas-Fort Worth, TX
San Diego, CA
San Antonio, TX
Sandy Springs, GA
San Antonio, TX
San Francisco, CA
Salt Lake City, UT
College Station, TX
Santa Clara, CA
Thousand Oaks, CA
Oklahoma City, OK
Little Rock, AK
Fort Myers, FL
San Diego, CA
Winston Salem, NC
St Paul, MN
Virginia Beach, VA
Kansas City, MO
Kansas City, KS
Best Cities to Retire in the US
If you’re retiring in the next few years, you might come to a different conclusion. In that case, Albuquerque, San Diego, Sarasota, or Fayetteville NC might be to your liking. It
seems many of the favorite retirement towns are college towns in the US southeast. Check out AARP’s list of best cities to retire in the US.
Best Cities for Graduates to Move To
The preference for college graduates to move to might be significantly different than retirees. Look for cities with the best jobs forecast for the next 5 years. Also a factor is the rental market and property investment in those locations.
There you have it, a full resource list and a ranking of the best cities in the US to live. If you’re a graduate or retiree, good luck choosing the city that will host the next phase of your life. Have fun and live well!
It’s a rosy outlook for the housing markets in America and anyone buying real estate. Prices have moderated, new city markets are catching investor’s attention. However do you know which are the best cities to invest in real estate in 2018?
Do you have a strategy to buy in the best cities, use a property management company or use property management software to run your portfolio.
You’re just about set to make 2018 a great investment year. Have you looked at the forms of property investment should you choose — rental income suites, apartment buildings, or student housing reits? Open your mind the right type of property investment in the right city will outperform everything else.
But the Bay Area isn’t the only city with potential. Dallas, Houston, Austin, San Antonio and Fort Worth are getting special attention these days. Texas is growing. Michigan has huge potential. Even Boston has potential. Businesses are relocating to these cities for a lot of reasons.
In this era of investment, the best property investments may be in other cities. Even if you intend to stay close to home, knowing what’s going on in other states might provide a superior return on investment.
As you may have read in my very popular post on US Housing Predictions for 2018 to 2020, the US housing market is hot and some cities are hotter than others. No housing crash is forecasted. The list below of the top 80 cities to invest in real estate represent your best opportunities for high returns. Even normally depressed quiet markets are coming to life and beginning to catch investor’s eyes. It’s good news for Michigan, Florida, California, Texas, and New York and even better for real estate investors in 2018.
Record Demand for Home, Condo and Apartment Rentals
The difference in this latest real estate rebound is the number of Americans renting and still needing to rent a home or condo. That’s created the incredible income investment opportunity called rental income investment properties for passive income investments or self-managed property investments. 30% to 40% returns are not unheard of. It’s once in a lifetime wealth building. The kind of cap rates major investors can only dream of. Get some tips on how to do homes for sale searching better.
Scorching hot opportunity in the best cities! Will the hot markets of San Francisco, San Jose, Silicon Valley, Phoenix, and Los Angeles do as well as expected? Those cities with the highest home prices are not your only option. There’s plenty more towns and cities across the nation where you can buy rock bottom and sell high including this list of real estate by zip code. Cities you’ll read about below with lower home prices and rising employment rates may be your best bets for 2017 to 2020.
One high performing rental income related opportunity to investigate is student housing investment in Vancouver. The student housing market in Vancouver is like no other place. Foreign families like Vancouver BC in Canada for many reasons. And the Canadian government is raising the limits on foreign students and on post grad immigration. That means lots of demand coupled with high rents which translates to big profits. A company called CIBT has dominated this sector and is growing fast. You can invest with them like a REIT.
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Make sure others learn about the once in a lifetime opportunity in real estate investment with rental properties.
With strong economic growth as certainly continuing, rental income investment offers multiple ways to grow revenue. And your property may look even better to another investor when you sell. Lets see what the experts predict and what the stats say about the best cities and zip codes.
Growth in rental demand was largest for people with incomes lower than $25,000; a group that accounted for four million new renters over the past decade.
Growth for people with household incomes over $50,000 accounted for 3.3 million new renters.
There was an increase of 1.6 million renters for those with incomes over $100,000 a year.
The amount of rental stock also grew, and the single-family house share of the market increased from 34-40% of the total rental stock
Vacancy rate was less than 5% in 75% of the United States largest cities by 2015.
Share the Home Finding Machine — the ultimate source for searching for Homes for Sale anywhere in the US or Canada. Help your friends find their dream home!
Skyrocketing Home and Rental Prices in California are a Continuing Allure for Investors
In major urban areas such as San Francisco, Los Angeles, Oakland, Boston and New York, the demand for rental properties is skyrocketing. Investors might see ROI of 30% or more on rental income property and that beats any stock market these days.
Foreign buyers too, are purchasing lower priced homes now, likely because of high prices on luxury homes along with the fact they can rent them out — passive income which is a hot topic for babyboomers in particular. Realtors are seeing a much different type of buyer today and they need to keep up on how competitive properties are in other cities in the US and Canada. Investors just want a great return.
Home prices are rising everywhere, but what makes San Francisco so hot is its lack of housing stock and a booming job market. Where there is little growth in new housing development together with a healthy job market and a good demographic (millennials who can’t buy) the demand for rental housing has to explode.
Experts try to explain away this demand by blaming speculators and high housing prices, yet the driver of rental demand in San Fran is too many employed people with nowhere to live. And wages are rising. Silicon Valley’s rental market is so tight, there’s an overflow to Sacramento and other inland cities.
In-migration has been strong at a time when millennials are leaving home, contributing to rocketing apartment and home rental costs. This is fueling the tremendous demand for investment income properties. With no one building new homes and the government not acting to help, it’s up to private investors to take the helm.
With crazy high ROI, we’ll see rental income investors and developers race into these regions to build new properties. It’s a great investment situation for Americans, investors and realtors.
San Francisco is one area however that might not benefit. Its strong economy is driven by large tech corporations that add value to imported technology and products manufactured in China. Which is why Silicon Valley is hostile to Trump. California’s economic outlook is still very bright, but it’s low potential rental income outlook could send investors over to other US cities to invest in, such as those in green areas in the charts below.
Rental Income Property Investment Opportunities
With or without Trump, the US economic outlook is good. The outlook for rental income property is exceptional. Realtors and investment advisors should be looking hard at this market. Even babyboomer investors are looking at the potential of retirement income. Many babyboomers are a little nervous about how they’ll fund their “stay put” retirement plans.
They’ll need extra income to stay put and revamp their home over the next 30 years, and they may look to rental income to get that money. A percentage may just sell their home and leave it to a developer/investor to turn it into the multi-family unit. That investor might be you.
Here’s Realty Trac’s outlook on the best US cities to invest for rental property income
Complicating your investment decision is another set of statistics from Realty Trac that shows the west still has the highest returns currently but the green zones are predicted to perform better.
How about a 32% Yield on a Single Family Home?
(Screenshot above courtesy of RealtyTrac single family rental market reports)
Top 80 Cities and their Potential for Passive Rental Income ROI
These converted stats in this chart from Smart Assets are very insightful. They used U.S. Census data, to calculate the price-to-rent ratio in every U.S. city with a population over 250,000. This is their list of 80 US cities below with the worst potential for rental property income investment appearing at the top (The ones at bottom such as Detroit have better potential, unless employment fails to recover in Michigan).
US Cities with Population above 250k
(for a $1,000 Rental)
San Francisco, California
Los Angeles, California
New York, New York
San Jose, California
Long Beach, California
Washington, District of Columbia
San Diego, California
Jersey City, New Jersey
Chula Vista, California
Santa Ana, California
Colorado Springs, Colorado
Raleigh, North Carolina
Albuquerque, New Mexico
New Orleans, Louisiana
Virginia Beach, Virginia
Newark, New Jersey
St. Paul, Minnesota
Durham, North Carolina
Las Vegas, Nevada
Greensboro, North Carolina
Oklahoma City, Oklahoma
Charlotte, North Carolina
Kansas City, Missouri
St. Louis, Missouri
St. Petersburg, Florida
Fort Wayne, Indiana
El Paso, Texas
Fort Worth, Texas
San Antonio, Texas
Corpus Christi, Texas
Buffalo, New York
What About the Local Economies?
Last year’s report from Millken research reveals the cities with the best performing economies in 2015. This was put out in December 2016. Florida cities are showing a marked rise. Recent reports focus on the apartment rental prices in San Francisco, Sacramento, and San Jose as offering outstanding returns for investors.
And this is Millken’s list of worst performing cities, likely the ones you might avoid.
Screenshot courtesy of Millken Institute. Read the detailed Millken 2015 Best-Performing Cities report with rankings by economic component. Excellent insight to help you fine tune your rental income property investment choices.
Their interactive map of US cities with the best economies below is a very helpful tool to help you measure the investment prospects of one city versus another.
In this video below, Mike Hambright talks about apartment rental markets, and how to make money from cash flow and property value appreciation.
Are There any Warnings?
This graphic from Coreglogic warns about overheated city markets. Yet it also shows how markets like Silicon Valley, actually has lots of room for rent rate growth. And New York has the lowest rent rate to home price ratio.
Screenshot courtesy of Corelogic.com
There are so many real estate investment opportunities in the US and in Canada too. Hopefully, my amateur US housing forecasts, predictions and unguaranteed advice will help you find those opportunities for the best upside in cash flow, safety and equity appreciation. Be careful with any investment. Do your due diligence.
Get the Best Car or Truck Insurance Quote in Austin
Car and Truck Drivers in Austin, San Antonio, Galveston, Houston, Dallas, and Irving have something in common – shopping for an auto insurance policy with a minimum $115,000 minimum liability coverage.
As a smart shopper, you will find ways to save on your Austin truck or car insurance. A couple of ways to save is to buy an old car or truck for driving to work. That reduces the chance of an accident claim, especially if you combine that with usage-based smartphone insurance. The insurance companies want to limit and lower accident claims so why not help them?
You might be surprised to hear that Texas drivers pay a slightly higher than average price for car insurance. Your price in Dallas, Houston, Fort Worth, San Antonio or Austin may be more expensive due to the Zip code. Why are rates high? The insurance companies tell you it’s just accident and claim statistics, but it may be that insurers will charge more because peole in Austin don’t shop around. If you’re not checking for lower car or truck insurance, then why would they offer you a lower rate?
By shopping and getting quotes from all the insurance firms, you’re letting them know you want the lowest price. Otherwise, they simply keep the status quo and drain your bank account.
If you’ve upgraded your current auto truck insurance to include a lower amount deductible and higher liability coverage, you might have your premiums rise too. You can ask for other insurance features and offset that higher price. Keep looking for a better deal online and you’ll find one. Switching auto insurance companies pays.
Texas insurance law requires you to be able to pay for any damages and injuries from a car accident you caused. Most Austin drivers buy liability car insurance to fulfill this legal minimum requirement.
Your auto liability insurance in Texas must have the following minimum limits:
Direct Auto Insurance Agency
9616 N Lamar Blvd #198,
Austin, TX 78753, USA
Texas State Low Cost Insurance
Springdale Shopping Center, 7112 Ed Bluestein Blvd #169,
Austin, TX 78723, USA
Premiere Auto Insurance Agency
900 E Braker Ln #150,
Austin, TX 78753, USA
Here’s how you can save more on your auto/truck insurance in this insurance infographic:
Find the Lowest Insurance Rates In Los Angeles
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