Down Payment Percentages on the Decline
First-time homebuyers are making their mark on the housing market, and that has become particularly evident in the decline of down payment percentages.
According to Mortgage News Daily, the first quarter of 2015 saw the lowest average percentage for down payments that we’ve seen in three years.
"Down payment trends in the first quarter indicate that first-time homebuyers are finally starting to come out of the woodwork, albeit it gradually," said Daren Blomquist, vice president at RealtyTrac. "New low down payment loan programs recently introduced by Fannie Mae and Freddie Mac, along with the lower insurance premiums for FHA loans that took effect at the end of January are helping, given that first time homebuyers typically aren't able to pony up large down payments. Also helping tilt the balances toward first time homebuyers in the first quarter is less competition from the large institutional investors that have been buying up starter home inventory as rentals."
Image via flickr/Tax Credits
Allstate Now Offering Auto Insurance for Uber Drivers
Allstate announced on Wednesday that it will now be offering auto insurance plans for drivers who pick up passengers via apps like Uber and Lyft.
According to Chicago Business, the brand new Ride for Hire policy will come with a price tag of about $15 to $20 per month and will “provide coverage for drivers who get into accidents while they are on the way to pick up new fares.”
To start, the policy will only be available in Illinois, Colorado, Texas and Virginia, though Allstate hopes to expand into more states in 2016.
Image via flickr/Mike Mozart
Report: House Prices Up 6.8% Year-Over-Year in April
CoreLogic announced earlier this week that home prices were up 6.8 percent year-over-year in April.
Additionally, the average home price in the United State was up 2.7 percent in April from the month before.
“For the first four months of 2015, home sales were up 9 percent compared to the same period a year ago,” Frank Nothaft, chief economist for CoreLogic, explained. “One byproduct of the increased sales activity is rising house prices, and, as a result, month-over-month home prices are up almost 3 percent for April 2015 and up more than 6 percent from a year ago.”
Image via flickr/401(K) 2012
Experts Warn: Don’t Overestimate What You Can Afford
Now that the housing market is gaining steam, especially among millennials, experts are throwing out a bit of caution to potential first-time home buyers, urging them not to make one very common mistake.
According to a new report by CNBC, it’s fairly common for first-timers to overestimate what they can afford in a mortgage, forgetting to take into consideration interest, taxes and insurance – and that mistake can be very costly.
“It's a good idea to get pre-approved for a mortgage loan so you know how much a bank is willing to lend you before you make an offer on a home,” suggest reporter Landon Dowdy. “But keep in mind that the amount you're pre-approved to borrow from a mortgage lender may be more than you can actually afford once you factor in taxes, insurance and other costs like condo or homeowners' association fees and maintenance. As a general guideline, your total monthly payment (including mortgage principal, interest, real estate taxes and homeowners insurance) shouldn't exceed 28 percent of your gross, or pretax, income.”
Image via flickr/Pictures of Money
Experts Suggest Driverless Cars Could Slash Auto Insurance Rates
As driverless cars continue to become more and more of a reality, experts suggest that we could eventually see auto insurance rates begin to drop.
A recent study by RAND Corp. found that the increased safety benefits from self-driving cars – which promise to come with a reduced risk of accidents – are likely to lead to “a significant reduction in insurance premiums” down the road.
"So many accidents are caused by human error, if you reduce the human factor, it should cut down on accidents," analyst Laura Adams of Insurancequotes.com told CBS News. "That will mean fewer claims and should reduce rates."
Image via flickr/Pictures of Money
Michael Jackson’s Neverland Ranch on the Market for $100 Million
Michael Jackson’s infamous Neverland Ranch has just hit the market in Los Olivos, Calif., for an asking price of $100 million.
The 2,700-acre estate – now known as Sycamore Valley Ranch – has 22 different structures built on it, including the main house, which boasts six bedrooms and has an attached staff quarters.
Some of the features that Neverland was known for – like the Neverland clock and train station – remain on the property. But the amusement park rides and animals are all gone.
Image via Wikimedia Commons/John Wiley
Renting Becoming Harder Than Ever in Major Cities
It’s been pretty well documented in recent months that rents are rising steadily nationwide.
But in a new video report by CNBC, the network revealed on Thursday just how quickly prices are skyrocketing in some of the country’s most popular metro areas.
“At least six out of 10 people in Boston, L.A., New York and Miami now rent instead of own, and more than half of all tenants pay what experts consider unaffordable rents,” says Diana Olick. “The bottom line: To save money, stay put. The more recently a place came on the market, the less affordable it’s likely to be.”
Image via flickr/Charleston’s TheDigitel
Experts Suggest: Homes Should No Longer Be Viewed as an Investment
In a new report published by MarketWatch on Thursday, experts are cautioning homeowners to no longer view their properties as an investment.
“If you’re going to live in a home for many years, it generally beats renting as a financial proposition (especially since rents have been skyrocketing), but don’t expect the house to produce significant appreciation relative to inflation,” reporter John Coumarianos suggested.
As an example, Coumarianos then went on to explain that a home purchased for $180,000 30 years ago, which may sell for as much as $780,000 today, has only risen in value by a 5% compounded annual gain after taking inflation into account.
Image via flickr/Ken Teegardin
Freddie Mac: Nearly 80 Percent of Top 100 Housing Markets in the U.S. Improving
On Wednesday, Freddie Mac released some good news for individuals and families living in some of the country’s most popular metro markets.
According to the mortgage company, the U.S. housing market is continuing to stabilize nationwide, and nearly 80 percent of the top 100 housing markets in the country – including Portland, San Jose and Nashville, among others – are steadily improving.
"The West and Southwest areas of the country are showing some of the strongest housing activity, especially markets like Portland, Denver, Dallas, San Jose and Los Angeles,” said Feddie Mac deputy chief economist Len Kiefer. “Many markets in the South and Midwest, while improving, are still plagued by high rates of mortgage delinquencies, which are holding back these markets from recovering faster. The exception to this would be the Nashville-area market. It more closely resembles the housing markets in the West, such as those in Utah. These markets are experiencing double-digit annual growth rates in purchase applications and showing some of the strongest homebuying demand in the country."
Image via flickr/Michael Silberstein
Midwest Seeing Largest Gains as Home Sales on the Rise Again
CNBC reported on Tuesday that home sales are on the rise nationwide once again, with the number of new homes sold in April up seven percent from the numbers we saw in March.
Additionally, the Midwest has experienced the biggest growth recently, with a 37 percent surge in sales.
And finally, housing supply is so tight in some markets that we’re now seeing an 8 percent increase in home prices across the board, with the median new home price clocking in at $297,000.
Image via flickr/401(K) 2012
