Single-family homes to make a comeback says Wells Fargo
The latest outlook from Wells Fargo includes a comeback for single-family construction in 2016 following slow growth recently. However, the report highlights continued low inventory especially for starter and trade-up homes, making conditions difficult for first-time buyers.
The lender also notes that there has been a sharp rise in renter households and a decline in homeownership but concludes that there will be a continued rise in renters even as homeownership picks up.
New supply of apartments has largely been in line with demand with the sector in “good shape” as vacancy rates bottom out.
Home prices have not generally returned to their peak but have settled into a “fairly healthy” 5 per cent pace.
On interest rates, Wells Fargo still expects two increases in 2016 of a quarter of a percentage point each. However, it notes that conditions may make it difficult for the Fed to go ahead with increases.
These remodeling projects add the most value
A study by the Texas Association of Realtors shows which remodeling projects are most likely to add value to a home. Looking at 30 different remodeling projects, the research determined that those changes which enhanced a home’s functionality and sustainability added the most value.
Fiberglass attic insulation ranked among the top five projects in most Texas markets, recouping up to 163.4 per cent of project costs. Manufactured stone veneer projects were also popular across Texas, recouping up to 157.9 per cent of project costs.
“A growing number of Texas homebuyers are opting to purchase lower-priced homes that can be remodeled to suit their exact needs or make the home more energy efficient. More and more Texas homesellers, too, are seeing the value in investing in a few strategically chosen projects before listing to sell their home faster and potentially at a higher price,” said Texas Association of Realtors’ chairman Leslie Rouda Smith.
Joe Jonas pays $3.7 million for Sherman Oaks home
Singer Joe Jonas has paid $3.7 million for a newly-built home in Sherman Oaks area of Los Angeles. As with many millennials, Jonas has been renting recently – paying $40,000 a month – having sold a Hollywood Hills home in December but has now switched back to homeownership for the farmhouse-style two-story home. The LA Times reports that has five bedrooms and 6 bathrooms plus a separate guesthouse.