If you’re among the millions of HGTV viewers who’ve seen an episode of “Flip or Flop,” you’ve probably thought about the thrill of gutting a house and turning a five- or six-figure profit. But the process isn’t as easy as the professionals on television make it look. Any experienced home flipper would caution you that transforming a fixer-upper into a profitable property is a difficult process.

In other words, don’t get your hands dirty until you’ve learned a thing or two about real estate, construction and how much damage your project could do to your wallet. Breathing new life into a low-cost property won’t necessarily return your full investment and allow you to pocket another $63,500, the average gross flipping profit in Q1 2021. According to RealtyTrac, though, the current homeownership rate is 65.6 percent (down from a high of 69.20 percent in 2004). Current demand for homes is waning after a very strong 2020.

To help you choose the right market to list your masterpiece, WalletHub compared more than 170 U.S. cities across 26 key indicators of market potential, cost and quality of life. The data set ranges from median purchase price to average full home remodeling costs to real-estate agents per capita.

Top 10 Cities to Flip Homes

Read Full Article [Source: www.wallethub.com

Whether you’re thinking of selling in the next six months or a few years down the road, remodeling with ROI in mind is a smart move. Your home is a huge financial investment, and any money you put toward it should not only increase your enjoyment of the home now but also add value that you’ll recoup when you sell.

According to the Zillow Group Consumer Housing Trends Report 2020, the average seller makes 2.3 renovations or improvements to prepare to sell, and 79% of sellers make at least one home improvement. Only 21% of sellers list their home as-is.

Best ROI home improvements in 2021

If you’re contemplating investing in a major remodeling project, the following 10 home improvement projects provide the best return on investment for homes nationwide, according to Remodeling Magazine’s 2021 Cost vs.Value Report.

1. Garage door replacement

• Cost: $3,907
• Resale: $3,663
• Recoup: 93.8%

2. Manufactured stone veneer

• Cost: $10,386
• Resale: $9,571
• Recoup: 92.1%

3. Minor kitchen remodel

• Cost: $26,214
• Resale: $18,927
• Recoup: 72.2%

4. Deck addition (wood)

• Cost: $16,766
• Resale: $11,038
• Recoup: 65.8%

5. Siding replacement (vinyl)

• Cost: $16,576
• Resale: $11,315
• Recoup: 68.3%

6. Entry door replacement (steel)

• Cost: $2,082
• Resale: $1,353
• Recoup: 65.0%

7. Window replacement (vinyl)

• Cost: $19,385
• Resale: $13,297
• Recoup: 68.6%

8. Siding replacement (fiber-cement)

• Cost: $19,626
• Resale: $13,618
• Recoup: 69.4%

9. Window replacement (wood)

• Cost: $23,219
• Resale: $15,644
• Recoup: 67.4%

10. Deck addition (composite)

• Cost: $22,426
• Resale: $14,169
• Recoup: 63.2%

Read Full Article [Source: www.zillow.com]

Housing professionals have long been anticipating the response to the July 31 expiration of the federal moratorium on foreclosures. With August numbers coming in, analysts say there has indeed been a rise in foreclosure activity, but they do not expect a large influx. Borrowers across the nation collectively have record levels of home equity, and the sellers’ market is so hot, thus property owners in peril are more likely to place their houses on the market than accept foreclosure.

RealtyTrac, a subsidiary of ATTOM that specializes in foreclosure and distressed sales data, just released the August 2021 U.S. Foreclosure Market Report, which shows there were a total of 15,838 U.S. properties with foreclosure filings— default notices, scheduled auctions or bank repossessions—that’s one in every 8,677 housing units, up 27% from a month ago and up 60% from a year ago.

So, nothing unanticipated is in the report, say the experts at RealtyTrac.

“As expected, foreclosure activity increased as the government’s foreclosure moratorium expired, but this doesn’t mean we should expect to see a flood of distressed properties coming to market,” said Rick Sharga, RealtyTrac EVP. “We’ll continue to see foreclosure activity increase over the next three months as loans that were in default prior to the moratorium re-enter the foreclosure pipeline, and states begin to catch up on months of foreclosure filings that simply haven’t been processed during the pandemic. But it’s likely that foreclosures will remain below normal levels at least through the end of the year.”

Regionally, Illinois, Nevada, and New Jersey had the highest foreclosure rates.

Starts: Lenders initiated the foreclosure process on 8,348 U.S. properties in August, up 27% from last month and up 49% from a year ago. Sharga says it is important to keep these statistics in perspective by comparing them to pre-moratorium levels.

“While foreclosure starts increased significantly compared to last month and last year, it’s very important to keep these numbers in context,” Sharga noted. “Both last year’s and last month’s foreclosure starts were artificially low due to the government’s moratorium. But in August of 2019, the last year we had ‘normal’ foreclosure activity, there were almost 28,000 foreclosure starts—over three times more than this year.”

States that had the greatest number of foreclosure starts in August were California,  Texas, Florida, Illinois, and New York.

Completions: Lenders nationwide repossessed 2,474 properties through completed foreclosures (REOs) in August, up 2% from last month and up 22% from last year.

New York, Michigan, Illinois, Florida, and Texas saw the largest rise in REO properties.

Read Full Article [Source: www.dsnews.com]

In early July 2021, Fannie Mae confirmed something that most real estate professionals already knew: Buyers and sellers are currently on a very different page. Over half of buyers (64%) think it is now a bad time to buy. By contrast, an even higher percentage of sellers (77%) think it is a great time to sell. But are the nation’s sellers and buyers right — is it really a bad time to buy and a great time to sell? And if they are right, what is likely to happen to the real estate market in the final quarter of 2021?

Bad Time To Buy, Good Time To Sell? It’s Not So Simple

On the buyer side, there are many reasons to be wary about buying at this time. In addition to the cost (some economists have suggested that home prices are currently inflated by15% to 20%), inventory is low and competition is fierce. Still, these factors shouldn’t necessarily hold buyers back. It may still be a great time to enter the market for anyone who was already planning to buy and financially ready to do so.

On the seller side, there is no question that the past year has offered many opportunities. Given the shortage of inventory in most regions of the country and the high demand for homes, many rural and suburban homeowners continue to realize phenomenal returns on their properties. In some small towns, prices have soared up to 25%.

Three key factors are fueling the current low inventory and high demand for homes, especially in rural and suburban areas. First, even before the pandemic, many millennial families were already leaving cramped quarters in urban areas for suburban and rural locales. Secondly, remote work, which seems here to stay, is expanding where people can live. Finally, buyers who may have once preferred to invest in a new home are increasingly looking at resale options as supply-chain problems continue to hamper the ability of developers to complete projects.

Read Full Article [Source: www.forbes.com]

Here’s What Experts Predict

Today’s hot housing market is one of the peculiar outcrops of the pandemic. Housing supply was already low before Covid-19, but it was further hampered as lockdowns took place and people began looking for new homes, driven by a host of reasons—from the desire to leave populated cities to better home offices or just fear of missing out (FOMO).

The Federal Reserve’s steps last year to keep the financial markets liquid and to ensure mortgage rates stayed low have continued. But the low mortgage rates pale in comparison to soaring housing prices in the past year.

Home prices nationwide, including distressed sales, grew by 17.2% in June 2021 compared with June 2020—a record high, according to the latest CoreLogic report. And while there have certainly been hot seller’s markets in the past, none quite compare to the current market where more than 50% of homes for sale have fetched over the asking price.

“We’ve been tracking housing prices for over 20 years, and we’ve never seen anything like this,” says Frank Nothaft, chief economist at CoreLogic.

Historically, the fall ushers in less competition and better deals as children return to school and the holidays overtake schedules. But the pandemic altered that trend last year, and many cities are going through double-digit percentage increases in housing prices.

To get some insight into what prospective buyers and sellers can expect as we enter the midpoint of summer, Forbes Advisor spoke to housing experts across the country to get their forecast on home prices, rates and buyer appetite in the coming months.

Are Home Prices Slowing Down?

While a full-on celebration might be too soon, prospective homebuyers can breathe a little easier, based on predictions from real estate experts. Prices are beginning to decelerate in some areas as more inventory has become available for single-family homes.

According to the National Association of Realtors, unsold homes rose 3.3% to 1.25 million from May to June this year. Although the increase in inventory is not enough to satisfy demand, it might give buyers hope and possibly buying leverage with more options to choose from.

“Mortgage applications have dropped to an 18-month low, and we are seeing some real buyer fatigue in the market,” says Tamar Asken, real estate agent at Avenue 8 in Los Angeles. “Sellers are responding to lower buyer enthusiasm with price reductions.”

In Northern Virginia, home prices were up 10.9% year-over-year (YOY) in June 2021 compared to the same time last year. The more affordable areas of Northern Virginia, like Fairfax City, saw a sharper rise in YOY median home price gains (15.1%) compared to their more expensive nearby areas like Falls Church, which experienced a smaller rise of just 3.2%.

“The market in Northern Virginia has slowed significantly during the past month, with fewer offers and longer days on market,” says Ryan McLaughlin, CEO at the Northern Virginia Association of Realtors (NVAR). “While this would be a normal pattern in a typical year, given the intensity of the spring market, it is surprising. It could well be due to an uptick in travel as pandemic restrictions eased.”

Cape Cod, part of the “Zoom towns” (areas that got popular as more people were able to work from home) housing frenzy that took hold last year, is starting to see a slight reprieve from the hopped-up demand.

Last year, the early pandemic buying spree slashed Cape Cod inventory from approximately 2,300 homes to 230 homes as cities shut down and buyers flocked to the coastal town, says Ken Hager, general manager of Gibson Sotheby’s International Realty on Cape Cod. But Hager says that the market is beginning to normalize.

“Looking ahead, we could see price increases continue on Cape Cod as well as across the country, but at a much slower pace. And prices will likely retreat from panic-buying highs,” Hager says.

However, for some communities, the pandemic gave them a much-needed boost from the lagging price appreciation still leftover from the last housing crisis. Wisconsin, for instance, was slower to recover from the 2008 crash, when foreclosure filings hit a record high of 21.5%.

“In many of our neighborhoods, it took until 2018 to return to those pre-crisis values. Since then, we have seen double-digit appreciation, but it has largely been a reversion to the mean,” says Rick Ruvin, lead partner with the Falk Ruvin Gallagher team at Keller Williams in Milwaukee. “Locally, we are anticipating an evening of the playing field and a return to offers with the typical inspection and financing contingencies.”

Read Full Article [Source: www.forbes.com]

One thing that 2020 taught us is to be prepared for the unexpected and face its challenges with composure and calm. We look back at the DIY adjustments we had to make in our homes as they were transformed into schools, offices, gyms, and getaway areas – and how we got creative in redesigning and furnishing these spaces. These adjustments will certainly influence changes and carry over into the new year.

With this year winding down and images of new homes, renovations, and additions at top of mind, here are a few design trends that experts predict will be hot in American homes in 2021. From both home exterior and interior design trends to home decor, let’s look at the dominant styles and features that 2021 will bring into the picture.

1.  Islands in the Stream

It’s not surprising that every year, the kitchen has a presence in home design trends. Whether its bold backsplashes, floating shelving that replaces cabinetry, countertops, or walk-in pantries, kitchen elements seem to always get the attention of designers.

In 2021, the focus in the kitchen and a definite “must-have” is double-island design. Just think of all the additional counter space at your disposal with a pair of kitchen islands. You can designate one for meal preparation and serving and the other one solely for dining and gathering/socializing. In addition to all the functional space, double islands also improve traffic flow as the chefs, family members, and guests walk to, from, and around the space.

Another thing to keep in mind – you don’t need a large kitchen to accommodate double islands. It’s just important to have properly sized and designed islands to fit into your kitchen space.

2.  High on High Ceilings

While nine-foot high ceilings are now the industry standard for new construction, some homeowners who long for the grandeur of really high ceilings are including 10- to 12-foot high structures on their “must-have” features. Reminiscent of the ceilings in homes built between 1890 and 1940, modern high ceilings are appealing and enhance the spaciousness and elegance of a home.

From vaulted to beamed, barrel, tray, and coffered, there are many high-ceiling variations that you’ll see in homes. These are a few of the more popular ones.

• Conventional – The norm in most homes, this ceiling is usually nine feet high and is a flat, seamless surface.

• Vaulted – Usually associated with churches and basilicas, a vaulted ceiling is any ceiling constructed with a self-supporting arch, with many variations to achieve different looks. Most commonly found in Great Rooms, open kitchen-dining rooms, and sometimes bedrooms and bathrooms, vaulted ceilings have been transformed over centuries and seen in traditional and contemporary homes. Among vaulted ceiling styles are barrel vault, groin vault and dome vault.

• Barrel-Vaulted – This simple and popular style resembles a barrel cut in half and dates back to Babylon and Sumerian architects who used clay mortar and fired brick. It is also  known as a tunnel vault or wagon vault. You can incorporate barrel vaults in foyers, hallways, kitchens, bedrooms, master baths, and Great Rooms.

• Tray Ceiling – Described as a raised portion of a ceiling that creates a second, higher ceiling, this type of vaulted ceiling is also known as an inverted or recessed ceiling. It features a center section that is several inches (or a foot or more) higher than the rest of the ceiling. It presents a lot of design options to make the ceiling into a focal point – like the use of colors painted on the trim, installing hidden tube lighting along the perimeter of the tray, or hanging a chandelier, pendant light, or ceiling fan.

3.  Keep ‘Em Separated!

“Free-standing tubs are on trend now,” according to Debra Purvis of Design House Inc. And house designer Herb Shearer says that “more and more people are taking the tub (especially jacuzzi tubs) out and enlarging the showers as well as going with a Roman walk-in type shower.”

• Rethink the Bathroom – Over the last 10 years, the popularity of the half bath and Jack and Jill bathroom has been on the rise. As Shearer explains, a bathroom was generally built for the use of bedroom occupants – and placed around a hallway so that guests could also get access to it easily. But modern times and designs have changed this format and concept.

Today, the powder room or half bath is more centrally located in the home – away from bedrooms – and is used mostly by guests.

The hall bathroom has been modified to a Jack and Jill to serve only the bedrooms and their occupants. Simply put, this is a full bathroom – with two sinks, a toilet, bath/shower – shared between two bedrooms, with doors entering from each room. (Remember the Brady Bunch?) For the privacy of occupants, there should be locks on the bathroom and bedroom doors.

4.  Multi-Functional Spaces

“Stay-at-home” has definitely changed the look of our homes. They are now – not only our dwelling places – but also schools, offices, gyms, recreation areas, and “staycation” destinations.

One of the newest home trends – and challenges – in 2021 is creating versatile and convenient multi-functional spaces in the home that accommodate all these needs – without adding costs or altering floor plans. With more people working from home (WFH), quiet spaces that allow privacy will be included in the interior design of homes to serve as home offices, Skype, and Zoom rooms.

For example, if the home has both an eat-in kitchen and a separate dining room (that’s used only on big holidays), store the dining table elsewhere and repurpose that room into office or schoolwork space. If the master suite has a small space used as a sitting room, you can convert that into a home office. Be creative with the available space in your home.

5.  Staying Active – And Healthy

While exercise rooms at home have been around for years, they take on a new importance in 2021 because of the pandemic. Most health clubs and gyms across the country are closing or at reduced capacity, and with stay-at-home directives, people are just not motivated to get out of the confines of their space to exercise.

So dedicated spaces for home gyms and play areas will be particularly important in 2021. Families need getaway time and space to “play” and unwind. Any outdoor space or indoor corner with a wall can serve as exercise space.

See Home Design Trends 6-11 | Read Full Article [www.theplancollection.com]