Real Estate Digest – June 2019

Real Estate Industry Lacks Strategy
for Climate Change, Study Finds

1The real estate industry has been very slow in adopting new standards to deal with the growing effects of climate change, according to a new study published by the Urban Land Institute, a nonprofit research institute and Heitman, a real estate investment firm.
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Weekly Mortgage Applications at Highest Level in 9 Years

2 Rising rates are impacting homeowners who want to refinance. However, homebuyers are not pulling away from the market.

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Rents Increase as Airbnb Listings Increase

3A new study done by researchers at UCLA and the Marshall School of Business, University of Southern California, uncovered a correlation between Airbnb and city rent increases. The study aimed to apply the findings of previous research on rental prices in Boston, Mass., in determining Airbnb’s impact on U.S. rental markets overall. The Boston study revealed that as the number of active Airbnb listings in the city grew, rents increased.
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Millennials, Gen Xers Purchasing More Multi-generational Homes

4According to the National Association of Realtors’ 2019 Home Buyer and Seller Generational Trends, the number of Gen Xers and millennials purchasing multi-generational homes is on the rise. One in six Gen Xers purchased a multi-generational home with 52 percent reporting they did so because their adult children have either never left home or moved back. Older millennials seem to have more in common with Gen Xers and younger boomers with 9 percent having bought a multi-generational home to take care of parents or spend more time with their parents.
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Largest Metros Where Residents Pay Highest, Least Property Taxes

5A new study from LendingTree reveals the impact of the new tax law on U.S. homeowners. The Tax Cuts and Jobs Act, which took effect in 2018, changed how much homeowners pay in property taxes. In fact, it has dramatically shifted the amounts homeowners in the country’s largest metro areas pay in comparison to smaller areas.
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Homeowners Underestimate Remodeling Costs

6Homeowners are not realistic when it comes to estimating the true costs of home improvement projects says a new study from Discover Home Equity Loans.
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Craft Breweries Boost Local Property Values

3A new study from the University of Toledo found local craft breweries boost nearby property values. In Charlotte, N.C., alone, 21 craft breweries opened between March 2009 and October 2016, a surprising find which prompted the Toledo-based researchers to investigate how the new breweries impacted the area.
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Going Green Increases Home Prices

4A recent Zillow analysis found it pays to go green if you are trying to sell your home. Homes that feature solar energy systems sold for 4.1 percent more on average than their non-green counterparts in 2018, according to the study.
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Builder Confidence Rises, Affordability Remains a Concern

4The nation’s homebuilders enjoyed strong demand this spring. However, they continue to see potential buyers being hindered by high home prices.
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5 Tips for Selling New Construction

4Most experienced real estate agents will say selling a new construction project is significantly different from selling an existing property. In many cases, selling new construction is quite challenging and requires both perseverance and patience from the real estate agent. Read on for details.

Real Estate Digest – May 2019

Bombshell Lawsuit Alleges Top Real Estate Companies Violated Sherman Antitrust Act

1A recently filed class-action lawsuit accuses major U.S. real estate firms of violating antitrust laws. The suit (Moerhl v. National Association of Realtors (NAR)) was filed in federal district court in Chicago and makes the claim that the defendants in the suit colluded to require home sellers to pay inflated amounts to the brokers representing the buyers of their homes.
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Breakups Force Millennials to Return Home, Says Homes.com Study

2 Student loan debt and rising housing costs have long been considered the main reasons millennials move back home after moving out on their own. A new Home.com survey found another reason for the rise in boomerang kids: breakups. The survey of 500 millennials found 33 percent of 26 to 30-year olds moved back home following a divorce or breakup. By comparison, 37 percent of 31- to 35-year-olds and 24 percent of 36- to 40-year-olds decided to move back.
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High-Priced Condos Sell at a Loss More Often than Non-Luxury Units

3High prices do not guarantee profits when it comes to luxury real estate, according to a new study by StreetEasy. Researchers analyzed New York Department of Finance records from 2014 to 2018 and found that 7.7 percent of the 16,000 homes sold in New York City during this period sold at a loss.
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Redfin Study finds Homes with Pools Sell for More Money

4Having a pool could mean higher home value for homeowners in some regions of the country, says a new study from Redfin. Overall, the study found that in warmer regions a pool can actually add thousands to a home’s value. However, the amount of added value was not the same for every housing market.
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Home Sellers Not Comfortable with Real Estate Agents, Study Says

5Homeowners ready to sell their homes are not always comfortable working with real estate agents, a new study by Clever Real Estate finds.
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LendingTree Study Examines How Housing Prices Have Recovered Since 2009

6Home prices and unemployment rates have recovered significantly since the financial crisis, according to a new analysis done by LendingTree, the country’s largest online loan marketplace. The study examined the 50 largest metropolitan areas in the country to determine where housing prices have recovered the most. The study also examined how income and unemployment rates have changed since 2009.
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Rising Housing Costs Causing Some Married Couples to Take on Roommates

3It is becoming more common for married homeowners and renters to live with roommates, says a new Trulia study. Worsening housing affordability is the main cause of non-traditional living arrangements for married couples. While couples generally move in together to eliminate the need for roommates, more married couples now live with a roommate in order to share housing expenses.
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New Study Analyzes Salary Needed to Afford Housing in Top U.S. Metros

A new hsh.com study uncovered the disparities in home affordability across the United States. The study explored the salaries potential homeowners need to earn to afford the principal, interest, taxes, and insurance payments for a median-priced home in the top most populous metro areas of the country.
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Rising Seas Eliminate $15.8 Billion in East Coast Home Values

4A new First Street Foundation study found rising sea levels resulted in losses of $15.8 billion in property values between 2005 and 2017 among 15 East Coast states, Alabama, and Mississippi.
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How to Negotiate Like the Pros: 3 Expert Tips to Help You Close Real Estate Deals

4As a real estate agent, there’s nothing worse than seeing a deal go up in flames after you’ve already invested your time and energy into it. It’s even tougher when you know you could have closed the deal if only one of the parties had been just a bit more flexible. Instead, both sides refused to budge. The buyer wouldn’t raise their offer and the seller wasn’t willing to drop theirs.
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