Sunrise Homes & Renovations, Inc.

What’s Ahead For Mortgage Rates This Week – July 2nd, 2018

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What’s Ahead For Mortgage Rates This Week – July 2nd, 2018Last week’s economic reports included readings from Case-Shiller housing market indices and data released on new and pending home sales. Weekly releases on mortgage rates and first-time unemployment claims along with the Consumer Sentiment Index for June were also posted.

Case-Shiller Reports Rapid Home Price Growth in April

April home prices ticked downward by one-tenth percent for the National Home Price Index, which reported 6.40 percent growth year-over-year. Case-Shiller’s 20-City Home Price Index also dipped by one-tenth percent to 6.60 percent year-over-year. Analysts note that home prices continue to outpace wage growth and inflation, which limits affordability for many prospective home buyers.

Seattle, Washington held the top spot on the 20-City Home Price Index with year-over-year home price growth of 13.10 percent; Las Vegas, Nevada followed with year-over-year home price growth of 12.70 percent and San Francisco, California reported home price growth of 10.90 percent year-over-year. New York, New York was the only metro area to report negative home price growth. Analysts said recent tax law changes and a glut of new apartments impacted home prices.

New Home Sales Rise as Pending Home Sales Fall

Sales of new homes rose in May to a seasonally-adjusted annual level of 689,000 sales. Analysts expected 668,000 sales based on April’s downwardly-revised reading of 646,000 new homes sold. Year-to-date, sales of new homes were 8.80 percent higher than for the same period in 2017.

Rapid home price growth has been driven by high demand and limited inventories of homes for sale. Supplies of new homes dipped from a 5.40-month supply in April to a 5.20-month supply of homes for sale. Real estate pros consider a six-month supply of homes an average inventory.

Pending home sales dipped in May by -0.50 percent,  as compared to April’s reading of -1.30 percent. Low supplies of available homes have sidelined buyers who haven’t found homes that they want or can afford. High demand has created bidding wars and cash buyers in some markets have sidelined moderate-income buyers and those who need financing to purchase homes.

Mortgage Rates Mixed, New Jobless Claims Rise

Freddie Mac reported lower average mortgage rates last week. Rates for a 30-year fixed rate mortgage fell by two basis points to 4.55 percent. Rates for a 15-year fixed rate mortgage averaged 4.04 percent and were unchanged from the prior week.

The average rate for a 5/1 adjustable rate mortgage was four basis points higher at 3.87 percent. Discount points averaged 0.50 percent for fixed rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

New jobless claims rose to 227,000 first-time claims filed from the prior week’s reading of 218,000 claims filed. Analysts expected 220,000 initial jobless claims.

Consumer sentiment fell to an index reading of 98.20 in June as compared to May’s reading of 99.30. according to the University of Michigan.

What‘s Ahead

This week’s scheduled economic news includes readings on construction spending and minutes of the most recent meeting of the Fed’s Federal Open Market Committee, Labor sector readings on Non-Farm payrolls, ADP payrolls and national unemployment will also be released.

Weekly reports on mortgage rates and new jobless claims will be released on schedule.  U.S. Financial Markets will be closed on Wednesday in observance of Independence Day.

The Case for Making a “Smart” Garage

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The Case for Making a Smart GarageEnergy-efficiency, smart electronics and automation have come home to the rest of the house, but many garages still look and feel like neglected warehouses. Why not update the lighting and add some high-tech features that will bring your garage into the 21st Century. Doing so will make your life easier and need not cost a fortune!

Rethink Room Function

Most homeowners use the garage for more than a car park. If it’s part storage room, part play space and part project area, manage the corresponding needs for specialized task lighting, additional circuits for a second refrigerator or freezer, conveniently located space for gadgets, gizmos, bikes and sports gear, and how you’ll deal with yard equipment and gardening tools and trash receptacles. A comprehensive lighting/electrical plan will be a great benefit.

Power Up 

Consider your lifestyle, and plan for the uses and activities you envision in the garage. Whether you have built-in storage cabinets, a fully-equipped home workshop, a hobby center, or play space for neighborhood kids, you’ll need handy receptacles for air compressors, charging stations and a variety of portable tools and devices. Trailing extension cords from the receptacle on a door opener is not only unsafe, but inconvenient. If you have or are considering an electric or hybrid vehicle, think about a car-charging station; it will require a 220-240 volt circuit.

Become Energy Efficient

Install sleek, energy efficient recessed cans, and use LED bulbs for bright, attractive general garage lighting that offers greater flexibility than typical fluorescent tube fixtures. They are available for both new construction and remodeling. Also look at insulated garage doors with a row of windows for natural light. Add insulation to walls and ceiling if necessary. Modern garage door openers have advanced safety sensors and lighting timers; but those that are truly smart allow you to monitor operation and control opening and closing via smart phone app as well as by wireless remote.

Go Hands-Free

It’s not uncommon for exterior lighting to be motion-activated, particularly if you have a long driveway or security spotlights on your home’s perimeter. But you can also automate interior lighting, either with motion sensors, or by using door-jamb switches. You’ll love the convenience of never having to fumble in the dark for a light switch!

Tie the Garage Into Home Security

In addition to an intrusion alarm and various sensors for your home’s interior, incorporate air quality sensors and fire and water detectors, even a security camera, in your garage space. Home security is a major concern among potential buyers.

If you’re in the market for a new home, make sure to ask your trusted real estate professional about homes in your area with all of the newest technology.

 

 

 

Can Color Help Sell Your Home?

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Can Color Help Sell Your Home?Color psychology is not an exact science, but there are basic principles that marketing pros use to sell everything from greeting cards to automobiles. Much of it has to do with color. Yes, the colors you put on your walls, or on your front door, can help clinch a home sale!

Humans have emotional reactions to color, and sensory perceptions of color are remarkably consistent. Even though individual reactions can vary, it is acknowledged that some colors evoke generally positive response, while others typically generate a negative reaction. Learning the basics of colors can be as simple as studying the color wheel. Forget about the trends, and rely on your own feelings.

Warm and Cool Colors

All colors are derived from three primary hues: Red, yellow and blue. The way they are mixed and combined results in all the colors of the spectrum, divided into warm and cool tones. And that’s where it can get a bit complicated: Humans are able to perceive millions of different color variations, and subtle differences can result in unique reactions. 

So, while the simple answer to whether color influences buying decisions is a qualified yes, there is more to the story. Neutral tones are often recommended because they allow people to add their own color personality. 

Color Dynamics

Both on a home’s exterior and inside each room, color plays an important part in attracting — or discouraging — potential buyers, so if you’re thinking of refreshing your home’s color scheme before listing it for sale, it’s wise to study the basics of color psychology. The goal is to appeal to the widest possible pool of buyers, and that’s why real estate agents tend to recommend staying with neutrals.

But the “safe” route is not necessarily the only path to a quick sale. Take the time to drive different neighborhoods and visit open houses. Take note of exterior trim colors that seem especially appealing. Study interiors: Look beyond the furnishings and visualize rooms as they would appear empty. Analyze different color options, and notice that the most appealing homes typically have a unifying theme. That doesn’t mean that every room is the same color, but simply that color choices throughout the home are related and always compatible.

Develop a Plan

By taking the time to assess your reactions to different colors, you can assist your realtor to market your home. If you love energetic red, consider painting your entry door and adding red accents in many of your rooms.

On the other hand, if sunny yellow makes you feel happy, emphasize that mood with variations of cream and warm golden tones, with accents of daffodil or saturated sunflower yellow throughout.

Color is very personal, just like a home. If your home reflects your unique personality, it will no doubt appeal to others.

Your trusted real estate agent will be able to assist you with additional color tips and so much more to help you get the most value from your property.

In-Law Apartments Provide Tangible Benefits For Home Owners

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In-Law Apartments Provide Tangible Benefits For Home OwnersMany homeowners are looking for ways to maximize on their investment. One idea that is gaining popularity is a space set aside for aging parents known as an In-law apartments. These additions are living spaces that can set a property apart from others on the real estate market.

In-law apartments generally enjoy a private entrance and include things like a private bathroom, bedroom, kitchen and living room. Although generally smaller than the main residence, in-law apartments provide all the elements of a home. Because these living spaces are often built after the original floor plan was conceived, spaces such as walk-out basements, garages or separate wings of a homes are converted.

The size and location of this unit is also dictated by adherence to local zoning ordinances and building codes. Once they are established, the door to turning them into a straight rental unit may be opened. If you are considering buying or selling a home with an in-law apartment, consider these benefits.

Benefits Of An In-Law Apartment

In terms of buying or selling a property that includes a separate residence, there are pragmatic reasons they are seen as attractive. These may include the following.

  • Elder Care: Our valued parents and grandparents will come to a point where they require some assistance from younger loved ones. An in-law apartment allows homeowners to offer them a private living space while providing effective care. In-law apartments are wonderful spaces that allow you to give back to aging family members in a dignified setting.
  • Building Relationships With Grandparents: The economic and time pressures placed on working families often compels parents to place children in daycare or after-school programs. While these are certainly viable options, they may be secondary to family members. An in-law apartment may create an opportunity to have a grandparent or other family member spend quality time with your child. In-law units can enhance the bonds of family while maintaining a level of privacy.
  • Guest Space: With family members relocating for employment opportunities, the ability to spend time together has become increasingly difficult. An in-law apartment provides a space for extended stays.
  • Rental Income: An in-law apartment that gains approval can be an excellent revenue-generator. That extra income can help offset mortgage, insurance and tax costs. That makes homes with rental units attractive to buyers.
  • Increase Property Value: Home improvements such as decks, smart technology and other amenities tend to add to a property’s value. Not only does an in-law apartment include all of the necessities of a living space, it can also bring in revenue. That’s why in-law apartments provide added value for home sellers.

If you are considering buying or selling a home that may include an in-law apartment, contact your trusted real estate professional.

What’s Ahead For Mortgage Rates This Week – June 25th, 2018

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What’s Ahead For Mortgage Rates This Week – June 25th, 2018Last week’s economic reports included readings from the National Association of Home Builders, Commerce Department reports on housing starts and building permits issued. Sales of pre-owned homes were reported along with weekly readings on mortgage rates and new jobless claims.

Builder Confidence Slips as Trade Wars Boost Lumber Prices

According to the National Association of Home Builders, home builder confidence in current market conditions was down two points to 68 as compared to May’s index reading of 70. Analysts said that rising lumber prices impacted builder sentiment and have replaced labor costs as builders’ primary expense.

Increased building costs were cited as a concern for builders despite high demand for homes and limited homes for sale. Rising materials costs were attributed to trade wars caused by recent tariffs on lumber.

NAHB said that three components of the Home Builders Housing Market Index were also lower in June. Builder confidence in current market conditions slipped one point to an  index reading of 75; builder confidence in market conditions within the next six months also dropped one point to 76.

Builder confidence in buyer traffic in new housing developments dipped one point to 50. Any reading over 50 indicates more builders than fewer were confident about housing market conditions.

Housing Starts Hit 11-Year High in May

May housing starts surpassed April’s reading of 1.280 million starts on a seasonally-adjusted annual basis. May’s reading of 1.350 million starts also surpassed expectations of 1.300 million starts. Higher volume and faster pace of building homes was good news for real estate and mortgage industry pros, as building more homes is the only way to relieve marked shortages of available homes in many areas.

Rising materials costs could dampen construction pace as tariffs and resulting trade wars increase. May’s reading for housing starts was the highest since 2007 and was 20.00 percent higher year-over-year.

Building permits issued in May were 4.60 percent lower than April’s reading. Building permits were issued at a pace of 1.301 million permits on a seasonally-adjusted annual basis.

Sales of Pre-Owned Homes Slip as Supply Tightens

Previously owned homes sold at a slower pace in May as short supplies of homes constrained already tight markets. The National Association of Realtors® reported 5.43 million sales on a seasonally-adjusted annual basis. Analysts expected a reading of 5.52 million sales based on April’s reading of 5.45 million sales. May sales of previously owned homes were three percent lower year-over-year.

Analysts said that there is little relief in sight and that there is a growing disparity in home sales; sales of homes worth $250,000 or more were up six percent, while sales of homes worth less than $250,000 fell by eight percent. Short supplies of homes for sale encouraged bidding wars and sidelined first-time and moderate-income buyers.

Mortgage Rates, New Jobless Claims Lower

Freddie Mac reported lower average mortgage rates last week; the rate for a 30-year fixed rate mortgage dropped five basis points to 4.57 percent; rates for a 15-year fixed mortgage were eight basis points lower at 4.04 percent and rates for 5/1 adjustable rate mortgages were unchanged at an average of 3.83 percent.

Discount points averaged 0.50 percent for 30-year fixed rate mortgages, 0.40 percent for 15-year fixed rate mortgages and were 0.30 percent for 5/1 adjustable rate mortgages.

First-time jobless claims fell to 218,000 claims filed last week as compared to the prior week’s reading of 221,000 new claims filed and expectations of 220,000 new claims.

What‘s Ahead

This week’s scheduled economic releases include Case-Shiller Home Price Indices, new and pending home sales and weekly readings on mortgage rates and new jobless claims.

6 Essential Home Fixes Before Selling

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6 Essential Home Fixes Before SellingNot every buyer may want a fixer-upper. While your home for sale doesn’t need to be turn-key or move-in-ready, there are certain fixes that are important to many buyers and that can help make the sale.

1. Landscaping

It all starts with curb appeal. Landscaping helps set the mood and makes the first impression. It can be worth the time and money to replace missing mulch, pavers, or rock. Remove dead plants and shrubbery. Trim bushes and prune trees, especially lower limbs that hang over walkways or brush too close to the house. Add pops of color with planters and healthy blooming, flowers. 

2. Exterior Spruce-Up

Curb appeal continues with the exterior of the home. If the paint is faded, cracked, and peeling, consider a fresh coat. Replace broken or missing pieces of siding and repair stucco. Walk around the perimeter and check for windows with cracks or wood rot; these may need to be professionally repaired/replaced, but may add value when selling the home. 

3. Update Lighting

Buyers appreciate a bright, cheerful home when doing a walk-through. Before placing the home on the market, update the interior lighting where needed. This may be as simple as replacing old bulbs and thoroughly cleaning domes and other coverings. Consider changing an out-of-date single light over the kitchen island to stylish pendant lights. Another easy update, are new switch and outlet covers. 

4. Kitchen Make-Over

For many sellers a full kitchen renovation isn’t in the budget and may not offer enough return-on-investment. Instead, opt for a kitchen make-over:

  • Fresh paint on the walls
  • Replace an old, tired backsplash with new subway-style or mosaic tiles
  • Reface the cabinets, typically costs less than replacing
  • Update cracked, stained countertops with new

If the cabinets are in good shape, but you want to give them a quick and easy update, change out the hardware. New hinges and handles can give the cabinets a whole new look.

5. Bathroom Refresh

Deep clean the bathrooms. Give them a refresh to impress buyers by steam-cleaning tiles, regrouting, repainting, and updating light fixtures. Add bulbs with a brighter wattage and replace any missing/broken towel holders. Even replacing a worn-out shower curtain can make a difference in the overall feel of the room. 

6. Flooring

Look at low-cost options for updating floors before the first buyer takes a tour. From high-end laminate to stylish wood plank tiles, it can be worth the time and effort to replace carpeting. Older homes may have hardwood just waiting to be discovered underneath the carpets. If this is your home, consider having those original wood floors restored to add value when selling.

Beyond clearing the clutter, deep-cleaning, and organizing to maximize the space, keep in mind these six essential home fixes before listing your home for sale. 

Your trusted real estate professional will have even more advice to get your home in tip-top selling shape. If you are thinking about putting your home on the market, make contact today!