Feb 5, 2017|
Opening doors for buyers and sellers with critical and credible information on the real estate market. Fast paced and fact packed with experts, interviews, call-ins, field reports, and timely market conditions.
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
This it's real estate today. The number one the real estate show on. The radio. Welcome to real estate today backed by the professional experience of real tours from across America. Where your most trusted source on the radio. For up today real estate information. Real estate today is the official radio program of the national association of real wars fans it's real tour members in your neighborhood. Hi there I'm Stephen gaffes great and I'm delighted you're here today for the grand finale of our New Year's series of shows about the basics of realistic to. A great show all about home ownership. And whether you own a home where you hope to someday we'll have all the facts you need about what homeownership means to use. From building wealth to getting tax benefits to growing a sense of community. Who have at all homeownership. Is straight ahead but first let's go to the realistic today newsroom with Bill Thompson Pardo like Stephen. Sales of new homes fell ten point 4% in December the government says but. For all 2016. New home sales volume was the highest since 2007. Sales in December totaled a seasonally adjusted annual rate of 536000. Lower than analysts had expected. For the year sales totaled 563000. That was up twelve point 2% from 2015. Mortgage interest rates have gone up in the weeks and the presidential election but on mortgage applications. And that is cause for optimism says Bloomberg reporter Matt Bos work. I think it's a good sign that so far the consumers had shrugging off this move and higher interest rates that we've seen after the election you certainly hear from last CEOs that. They do you sense more consumer optimism in the last few months and that seems to be feeding through. I'm to the mortgage market and the housing market which is an especially important driver of the overall economy. Those were shows more people are working now than a few years ago and incomes are up both good for the housing market. The trump administration's been taking heat from many people in the housing industry. For reversing a move by Hud in the closing days of the Obama administration to cut the mortgage insurance premium on FHA backed loans. But a conservative scholar argues that the move was the right one to make. Edward Pinto co director of the international center on housing risk at the Washington based American Enterprise Institute. Says AEI researchers show on the a mortgage premium cut during a seller's market. Does little to expand access to new borrowers in study says are often translates into higher home prices for all FHA home buyers. Pinto says reversing the premium reduction is also good for taxpayers as it will result in additional needed capital accumulation by the FHA. The price of homes with mortgages sold to or insured by Fannie Mae and Freddie Mac rose one half of 1% in November from October. And those prices are up six point 1% from the previous November that according to the latest monthly house price index from the Federal Housing Finance Agency. For the first eleven months of Tony sixteen home prices as measured by the FHFA index were up an average of five point 9% year over year. The biggest price increases from 201516. Were in the Pacific region. Where they soared seven point 7%. Coming. Up and half an hour wind New York is targeting reverse mortgage lenders Stephen back do you. Thanks no. And we have the latest information for you on contracts on this. The National Association of Realtors reports that last December. Pending home sales rose compared to November. Norris you know pending home sales are present contracts that have been signed but which have not yet gone to closing. Joining us now with the latest pending home sales report is Danielle hail the managing director of housing research at the national association of real source. Daniel welcome to realistic today. Edit it out. I'm ledger here now Danielle pending home sales were up in December 1 point 6%. So what caused that increase. While Stephens and spite of the fact that mortgage rates and generally started to move up recently. And we've seen low inventories pretty much throughout the country we got more potential buyers were able to find contract in December so their it inventory out there. And patient person and buyers are able to have the aspect adding new contract. Sticking with buyers for just a minute then you know. You know they are facing some challenges. Prices are notching up interest rates are notching up in Israel know they just aren't enough homes for sale. But even though they're going forth and they're getting in the game putting homes under contract that is just awesome. It is kind of factors that are helping them. Take that leap of faith and then buy a home to the long term project are mud is getting consistent job gains plus. Incomes are increasing even if only modestly in it compared and a home pregnant. Piracy so these are determined buyers who want to get in it. Before the interest rates go any higher than they Ernie have. It. So Danielle let's take a virtual tour around the United States how to do different parts of the US they'd do. In pending home sales last December. Sure well we'll start the northeast where December went. A weaker months than in other parts of the country. Pending sales are lower there by one point 6% from November and they are down one point 2% from December 2015 treating. In the midwest bank contract also decreased by just less than 1% from November. To buy a little more than 3% from December 2015. And without December with batter for ten to homebuyers. Might contract increased 2.4 percent from November. And they eat data have to protect gained about 22015. A good future potential buyers in the south and then finally. In a lab potential buyers had the most impact in December much more than in recent months panic until picked up. 5% from November and there author 5% higher than December 2050. Let's extraordinary out west because I know there's so much competition up there for houses. The people who actually got to please under contract did very well. They did indeed we do know that inventory that didn't I didn't get the last though does. Click cancel contracts better than our last two are probably very quick cuts. So Daniel let's talk now about Wendy's sales actually go all the way to the closing table what's happening bear is first the different price points. Good questions even among those killed in December. We got around 10% increase busier every year and opera great peers and by that I mean harmful to outer above 250000. By contact and then middle home grace gears. Killed between a 100200. To 2000. We got smaller increase just 2.2 percent. An end under 100000 dollar category we actually got killed decline of eleven point 6%. And we know that inventories and then. Tightest and that lower great care at that really typical for sales happened there when they're just is an inventory to foul. By contrast in upper priced gear we have a decent amount of inventory and so. Other happening at that inventory comes to market. In the middle and we continue to see a small gain an inventory and what comes to market get told though. I think that the good guy in front of going forward and the demanded there pigeons really need to see more inventory. So Danielle what does this latest reports say. Two people in America who would like to buy a home. I think it says that potential homebuyers. Need to be pretty content impatient they really need the help of attempted expert who can help them navigate the challenging market but they can't find success out there. If that contracts were up at the first step in the home buying process so hopefully with a little bit of persistent. Potential buyers can kinda think about the plot. And also what does it mean for sellers someone who hopes to sell their house quickly. Is this good news for them. I think didn't data showed that buyers are in the market and so it's a home in limited and price as well. Your local real estate expert can help PD that. Economic market and tight well it lapel quickly. Because we know the buyers in the market and especially if columns are and that middle Craig care that's where we've seen inventories to really be dictated though. And milk crate columns rolled out very quickly. What Daniel thank you so much for being with us today. To actually. Good to talk to YouTube Daniel hale the managing director of housing research at the national association. Of real tours. Coming up unrealistic today. The road from renting to pony. An earlier reaching a conversation with somebody who consider I can't get better that's next on our special show. Homeownership. Real estate today. Connecting you with the real estate professionals. Every week. And we are back with our special show all about homeownership. All about owning a home if you're old and all the backing mean to you and your family. So let's talk now about making that happen making that jump from renting an apartment to owning a home. It's definitely a move that involves a lot of research and a lot of money but. Would an expert by your side. It's really not that hard let's talk about that now with the real source who specializes. In guiding people through that transition. From renting. To owning. Sarah Jones is co-founder and CEO of bamboo realty in Denver. She specializes in serving millennial renters and home buyers. There are just moved to Denver from Houston where she was actively involved in the Texas association of realtor worst. And the Houston association of real torched. There's also an advisor to Houston's young professionals network. Sarah welcome to realistic today. Thank you so much for having me on the right truly appreciate it. But we're glad you're here Sarah you have a unique brokerage in which you get hundreds of people all set up and rental apartments and then it. You've helped many of them make the transition to homeownership. Tell us about that. Sarah when we first started to brokerage we looked around the marketplace and asked her not to commit not having Arnie Matt. And air with a big gap in. Richard having Ernie at the week started a brokerage spoke at exclude that we don't renters. Overtime. At. Of course we traded for people who rent Turkey your stay eventually you were out and that we were already conditioned to Serb air need capping not client relationship and great. And and a good part of our job is giving people aren't being Aaron turkeys being her umpire. Sorrento client comes to you and asks you Sarah. How do I buy a house now what do you tell them. Buying a house it ain't really big position and now I only car out in time where that potential home buyer and myself and it. It out over copier or offset to talk through the crack that. We find that are a lot ad questions in people's mind over what the home buying process like and that really the first epic. Bedding down an entertaining what are they looking part of town what do you Medivation to buy an explained cock veterans art naturally want. Well let's pause there for a minute or what is there motivation for many of the people become do you wanting to jump from renting to owning. Why. A big part of it when people choose to bring in art or they just are not ready she'd purchased eater in a lot hot call. So maybe somebody he. Getting married eight are they ready. Or they're about to have a baby aired in righty can I. And that when people are living in sheeting to rent the crap are not there yet and the like stay. Another reason that they may have been right by air it because eight are unsure whether they will stay an area. So people relocate and take that job and you city elects you entered ember. And they try out the city for years and figure out what neighborhood you're gonna enter it in and how long it will be an eagle where they commit to buying cokes. The white agent also yet committing tricky over the long term or really too big factor. That it is in Q by. Interesting so you sit down and you talk with your clients now I imagine in some cases. They are ready to go in and other cases after discussing their credit mayor savings. You might advise him to wait a bit to fix up their credit may be they've up more money. Absolutely and earlier we can have a conversation with somebody who considering by how a batter. Because there are questions that can be active in church. You know at 69 or even twelve meant of course somebody may relate to her co ownership and you mention credit and financing we can. Certainly help them look at that different loan program that are available. Make recommendations for what might benched. If there are changes that they can make in their credit history that they have a lower down payment requirement or a better straight. Those are things that can be worked on your chicken public had a skill people you comes means that are rated by other a couple of well a band that actually being ready to gallon we welcome that congregation. Oh that's great you know there are one of the biggest myths in America is that you need 20%. Down payment to buy a house to many of the people who come to you have that same misconception. Absolutely 20% down at where that light it circulated may opt in in the media. And it tightened it down may incur hit it hit Q people who can't have our trading account. There are definitely learn program. Have lowered our options for example at H England programs streak what 5% Alex there are conventional baron program where you can pets I. Percent down on Mac conforming liar and recently it changes had been made terms rain how. Actress and Ecevit to treat her to occur which which incredible because back in them make their home I even more portable hard and then. Well those folks must be delighted when you tell them that. Absolutely a threshold of having twenty current and down are having just reached rehab for piper now really big difference in and I gets the wield any prompt. Yeah I may never be able to bite her and it minister Bambang I looked at court I don't accord now and it took. IC. So again you're talking it through with a client who wants to buy a house at what point do you actually direct them towards a trusted lender. I would say after we have that preliminary conversation over copier and a spanner air objects understanding what their motivation aren't tiger might look like. After that conversation and a stacked in the next step is to sit down with the lender and understand. While land program may be best for you and wet you can torched you don't wanna get on line and our shopping for a home or going to happen how they're looking at play pitch. And I'll elaborate pending that not in your budget back it definitely gonna lead to headache picky about the need to meet with the letter very early in the proper attacker in court. You know there that is just so Smart because when people have never done it before. They'll seize some gorgeous little house for Leo and no think oh that's a little I could probably afford it but until they know what they can qualify for. They might be in for a very disappointing day. Absolutely don't wanna saw a lot but the house. Eight airport you don't want the comparison home. That would never an option OP to become the gold standard for what you're looking course that you really do need I actually can afford the tree and. Sara we have a lot more talk about can you join us again and a few minutes in our next hour. Great thank you Sarah Sarah Jones the CEO and co-founder of bamboo realty in Denver. A brokerage specializing in serving millennial renters and home buyers. Coming up on realistic today. What's the first thing you do when you move into a new house. Billed Medicaid for us sub man cave that they speaking TV surround sound. Many capable of their debts that what both sun burst that's coming up on our special show. Homeownership. But first it's time for our Smart home technology report. And today we have new data for you about how the American home is changing. As more and more people bring technology into their lives. A brand new survey by the Pew Research Center contains some very big surprise about how or using tech in our houses. For one thing hard wired broadband Internet is back well. It never really left but as we reported last year here on realistic today it was in decline for a couple of years in 2014 and fifteen. The number of homes with hard wired broadband Internet dropped 3%. But that all changed in 2016. Because now home Internet use is up once again. And up by a good amount to the Pew Research Center says the number of households using wired broadband Internet at home. Rose 6%. In just one year. And the result is that from coast to coast nearly three quarters of all American homes now half. High speed wired broadband Internet. OK so that's one study but another study appears to contradict those findings. DSL reports looked into the number of Verizon customers who use hard wired Internet at home. And they found it in 2016. Verizon experienced a net loss of 282000. Customers across the United States. So how can one study say Internet use at home is up in another Wednesday that at least a one provider it's down. Well it turns out to be about speed and technology. You see Verizon's fiber optic Internet service called Fargo's added nearly a quarter million customers in 2016. That's a big increase. But according to the report they lost other home Internet customers those that use the old DSL technology. You might remember DSL it was the next step after the old dial up modems we all started using twenty years ago. Now assured DOR was a lot faster than those dial up modems. But a lot slower than today's fiber optic or cable Internet. So Verizon's net loss is really all about it DSL service knocked its bios fiber optic service. All in all it appears American cord cutters will continue to eliminate landline phone service and cable TV. Both of which are taking a big hit. But not Internet at least not fast Internet. Because even though more and more people are using Smartphones in getting online anywhere they go. Americans still want to surf the Internet stream audio and video to play video games and more. Right there at home when they do which they clearly. Have a need for speed. Real estate today. Because knowledge is power. And we're back with our special show home ownership. All about the many ways owning a home a hero and can help transform your life. For the better from building wealth to building a community to building relationships. It's truly the American dream. Coming up we'll talk about taxes and how homeowners often do better than they did when they were renting. Homeownership is straight ahead right after we check in with Bill Thompson in the realistic today newsroom Carville Stephen. Home construction in the Reno area is picking up. The builders are still concentrating on homes price too high for many buyers says the toll seventeen president of the Reno sparks association of realtors. John Graham told Colo eight news now that they're building homes in the 400000. Dollar and up price range. We have an awful lot of entry level command in the 225. To 250 wreckage and nobody is building out product. Grams was finding a way to get more affordable housing is gonna take some partnerships between state city county builders lenders. And everybody. Too many people the word gentrification. Is fraught with negative baggage. As lower income families are pushed aside by a better off outsiders gentrification can seem harsh. But as real for dot com points out long term residence can benefit especially homeowners. And out using US Census Bureau data REALTOR.com has identified the ten fastest giant terrifying cities in America. Charleston, South Carolina where median home prices soared 77%. From 2000 to 2015. Comes in at number one. Other markets in the top ten Asheville, North Carolina. Washington DC Portland Denver Nashville Sacramento Jersey City Long Beach and Austin. New York governor Andrew Cuomo and state lawmakers are stepping up protections for reverse mortgage holders. The New York Post had been pressing Albany to enact reforms after a series of articles on what he called a crisis a reverse mortgage foreclosures. Among the new protections proposed by Cuomo is a provision giving reverse mortgage holders the right to a mandatory foreclosure settlement conference with the lender. Other measures would better regulate the marketing and origination of reverse mortgages which allow older homeowners to tap into their home equity without having to sell. Building homes for the 55 plus baby boomers presents different challenges and opportunities. The national association of homebuilders highlighted some emerging design trends for older buyers at the recent international builders show. For example as boomers become MD masters the homes become less short centric. So family sized laundry room instead becomes a space for Kraft Serpo care. Homes need to be brighter to be older we get the more light we need for every day living. And I experts say make those aging place accessibility features so little more subtle Nolan likes to be constantly reminded but the only a little physical help. Coming up and half an hour our American cities running out of millennial. Stephen back to you thanks bill. Continuing down with a special show homeownership. Looking at all the things owning a home means to use. And now a look at all the ways you make that new place is all about you personalizing your new home in ways you never could in a rental apartment. Joining us now that's story is our national correspondent meg McCloskey hi meg. Hi Steven. Home is a big process and if you're in the thick of that your head might still be spinning with all the but one of the keys now comes the exciting part you did you decide how you are they going to suit you and your life. But one bank how do you really make it your own well I hit a local home expert show to talk to people about how they turned a house into a home. And I asked homeowners. Now that you've. Done it but here first house. Keys in hand you open the door. To an empty echoing and she held candidate. So what now. What is the first thing you do McCain today. Publicly paint colors or wallpaper like we have here today. That's Kim who has a home expo in front of an impeccably designed acorn to play. It's seen Pete as well a lot of people would think conference since it can instantly transform your house it makes us face much richer more inviting. It can make you feel. Army can make you feel cool it can be a restful and can be exciting it depends on the room in the color. And I'm thinking neon green though or muted pesto sleek modern minimalist or rustic farmhouse chime. The cool thing is when you own it you lord choice you get to ended up however you want. Some of the people I talked to had a clear idea of what they want it as a top priority in the new house. First thing that I would do. Build a man cave well I've. Prize supplemented first new pleas for a man he's a nice big east TV surround sound man cave home theater that's that's what I'd focus on first. Okay yeah as we get it he'll love the man came in but why is that your first time. It's got to be motivated by something more than the burning desire to binge watch an entire using your favorite show right. Well for Joseph orange. Thank Disney my tranquility to go. Hang out and get away from everything else. So it's about having a twinkle get away that is just for you have to teach your length isn't I am at home is after all. For Sherron was on for over fifteen years it's important to her home tailored to it not just her but her whole family as well I think it's more of. It's a combination of everybody's input everybody has their own space in the house everybody kind of gets to do with they like to do. To make it feel personalized for them and how they you know live in the house. And that's really what it comes down to them. A desire to have a state of your own you can personalize a that it feels like it's yours is something that hit you wherever you are in my life. And that means as time goes on your home changes with. You know now that the kids are getting bigger the rooms teams. And get rid of them the kids Stephanie get more grown up and I think everybody kind of like having their own area to call them around. No matter how things evolve over time. Your home always reflects. Your life. The people that live there for short. And the pictures the photographs the personal touches it's not about the furniture that fancy things it's. The personal items items from your travels items from your kids growing up the memory items that. You know filling make it. Home is the place you share with your loved ones and it's those people that really make a home what did you it it's over should know how reflect that. For David Quinn managed screened or display under brightly colored arming it'll come down to the people don't and the memory. It's for me what makes a house a home with my wife to be honest with the she does everything in our house make it home she's always change your town pictures I mean they showed yet not Ford push that book I wanna see us from. Four years ago as we always whenever a home where you walk up the stairs you're always kind of just reflecting on her children. If these kinds of personal touches that make a home uniquely yours. But sometimes personalizing can go beyond adjusting little frames on the law sometimes it means knocking down walls down. After George but his house definitely needed some big changes to fit his. Gambling which is demo. The whole kitchen and redid it ourselves and before he knew it once we realized what an incredible job we did. You know impose a victim in my own success I started all the bathrooms myself I mean every town my house uninstalled. Arrange our bodies braves. Have a steam shower installed glass doors. I don't want hardwood floor and from top to bottom over six years completely renovate I saw my new windows. Yeah so we really need arrow. Making physical changes your home can have a big impact both functionally and aesthetically. So worth it Georgian of these renovations. We're the right call you know besides adding value to our home it's really just personal as we were when we bought our particular house you know we started from the inside and worked outside in. We're just always look at that and improving things. And now about deciding. So attacks outside. The projects never end today not really but it's as if there's always something to do. That's the great thing about homeownership. Twenty year painting an accent wall sticking out of me and Kate updating the kids' rooms swapping out family photos or even building a new bathroom. You can personalize your home however you want it and keep changing over and over again. Fact he's even. Thanks meg great report. Meg McCloskey realistic today's national correspondent. Coming up unrealistic today and how owning a home can make your tax bills lower. Owning your harmed unlocked. Utility sheet I might actually that's next on our special show homeownership. Kids is real estate today. 100%. Real estate 100%. Of the time. And we are back with our special show homeownership. All about you and your family and a wonderful place you call home. Right now we're going to take an in depth look at one of the best parts of being a homeowner in America. Taxes and out nobody really loves taxes but when you own a home. You'd generally do much better on your taxes and if you didn't don't home. Let's talk now of an expert about all the ways your home can help you make that tax bill lower on April 15. Joining us is Kathy Pickering with H&R block the nation's largest tax preparation service Cathy is the executive director of the tax institute. And vice president of regulatory affairs for H&R block. She has nearly twenty years experience in taxes and she's responsible for the strategic direction and management of H&R block. Kathy welcome to realistic today. Speed thank you so much it's such a pleasure to be on the show Ricky. We're so glad you're here Kathy let's start with the big picture if I'm renting a place and then I'd buy a home of my own. How my tax picture change. Well yeah actually picture changes. When you buy a home because owning or harmed. Adds a level of complexity huge tax returns. That usually. Unlock it. The ability to itemize deductions and figured they home owner deductions. Are rated. Your mortgage interest. And quite frankly you can deduct the interest are opted Q com. Once a primary. And the others say for example vacation. You can also included back home equity debt up 200000. Dollars. You and your private mortgage insurance premiums a year yet my age can also beaded jacket. As part. Your home mortgage interest on top of backs your point so the points you need in order to borrow money. They're deductible in the years that E*Trade them. York real estate taxes. That's just. Got home owner deductions. So. Having your house unlocks. So many deductions that generally your taxes would be much lower. Then if you were not in. A homeownership position. Yeah after being itemize their deductions. Now enabled you to know of course cheeky or homeowner deductions. But in addition to that. When you're able Q itemized. Out each and clean your charitable donations so that includes. All of those contributions. That you're making security each Gerald actions but he makes ready I didn't wake RG DC and their household goods. You're donating cute and goodwill good job Haitian Army look at that thing. All of those things really add up. And so by keeping records you're now able to add all of that up and include bat additionally each. You can claim that we talked about your real estate taxes. On top of that your personal property tax case aren't your car. And your state and local income tax and order issue Lipman a skate that Burton have a state income tax. And you can deduct your sales tax so bullets. Are all incremental. Expense sooner you can deduct when your itemized. Wow look at the that is quite a list. Not only of the deductions that involve your real estate but how are your home opens up the door. Just so many more deductions on your taxes are really appreciate you being with us today. Thanks so much speed at our pleasure talking with it. You two Kathy Pickering the executive director of the tax institute and vice president of regulatory affairs for H&R block. Coming up unrealistic today. Why your home is so much more than just an investment. That's next on our special show homeownership. If you love listening to us talk about everywhere state doing the conversation. I'm really see today's radio on these look. We can't wait to hear from you yeah that's real estate today radio on FaceBook. This is a real estate today location. Location. And we're back and our special show homeownership. All about this wonderful place where you live where you raise your kids where you celebrate life mend your sorrows. And build a bank of memories double always be with you that's home. It's a wonderful thing. It's always thought that as we wrap up this hour of the show we might put the money aside for a minute. And talk about some of the other things that make your house our home. You know kids always think of their house is just home they don't deal with the bills with a mortgage of the insurance on the place. Instead they're home along with their family and friends becomes the center of their universe. It's everything to them. And that's true whether it's a little Condo in the city or house in the suburbs for the white picket fence. Or home on the range surrounded by miles of open land. Home is everything to kids. And you know that never changes have you ever noticed that even when those kids grow up get married and own their own house. They still say yes I'm going home for the holidays. Meaning their parents house. The place they grew up in many ways that will always be home. It's worth thinking about also if you have kids now because they'll never forget the whom you live in right now the kitchen. The living room the backyard. And of course their room it's a wonderful part of life this thing we all call home. And it's a feeling we all share no wonder that just about every great musician. From Simon and Garfunkel to The Beatles. From Crosby, Stills and Nash to Miranda Lambert from Antonin Dvorak to. They all wrote master pieces about the place they call home. You know it's true of writing also from Mya Angelo to Robert Frost home is a treasured theme among the world's greatest poets. From a stroke one of the most memorable passages. Quote home is where when you have to go there may have to take UN and quote. And it goes on and on and literature and painting politics and religion home is a central theme everywhere in life. And of course you can't forget all of a sweet little sayings home is where the hardest. Home sweet home. There's no place like home. And here's when you might not have heard there is nothing like staying at home for real comfort Jane Austen wrote that. So again it's much more than just an investment. It's more than a way to build wealth over time. Having a house that you call home is about so much more than just money. And of all the wise words about the place we call home one of our favorite was written by Mark Twain. It's about the very big differences between renting a home and owning a home. Twain said quote. Almost any man worthy of his salt would fight to defend his home but no one ever heard of a man. Going to war for who's boarding house. End quote. Some final words about this wonderful thing called homeownership. If you'd like to hear more realistic today's special show the homeownership. Either stay tuned for join us online at radio dot realtor. And for all of us here at realistic today thank you for listening. If you're realtor you can put the entire we'll see today's show on your web site. The best real deep chill on the Radio One 100% free and they are members. Just go to our new web address. Radio dot realtor and click on wheels. This is. Real estate today. The number one the real estate show on. On the radio. Welcome back to real estate today. Back from a professional experience of real tours from across America we're the most trusted source on the radio for up to date realistic information. Real estate today is the official radio program of the national association of real tours it's. Real for members in your neighborhood. Hi again I'm Stephen gaffes great and I'm so glad you could be witnessed today as we bring you the final part of our special New Year's series on realistic. Which they show that sets at all. Homeownership. All about the many ways your life changes for the better when you own home bureau. Coming up we'll meet a family who never dreamed they could Ono but now they do that story and much more is straight ahead. But first let's go to the realistic today newsroom with Bill Thompson Pardo. I Stephen. Our American cities running out of millennial. The New York Times reports the growing numbers of Milan eels are choosing the suburbs says the articles authored Connor Doherty told CNBC. I think that there's one thing cities can do to really help themselves it's make the schools better you know when you talk to people about. Where they wanna live and whether wanna buy a house that's you know above and beyond price the calculus they're always looking out. The times reports that real estate consultant demographers and economists are considering what urban cores will look like now that the millennial generation is peaking. Three out of four American home builders agree on one thing finding skilled labor at reasonable cost. Was a big challenge last year and is going to be so again this year. That's a key finding of the latest monthly National Association of Home Builders Wells Fargo housing market index. 78% called labor cost and availability a significant issue six years ago just 13% said that. And the labor wasn't a problem build a bull locks was. Housing market index finds 60% of builders said cost availability of developed lots was a significant issue that has three times the number who said that. In 2011. How will be economic philosophies of the new administration evolved into actual policies. The latest forecast from Fannie Mae's economic and strategic research group. Concludes that it's. I'm usually difficult to Saturday. Fannie Mae's chief economist Doug Duncan notes that the still only limited information available about the intentions of reader president trump or the new congress. But given the task of making a forecast Duncan and his team estimate that the economy will continue growing below potential and about 2% through 2017. Homes and active foreclosure now represent less than 1% of all US home for the mortgage according to black Knight financial services. The company's first look at December. Finds the foreclosure inventory rate was down 30% from December 2015. Black Knight says that's the biggest year over year improvement on record. And black night does the number of borrowers who were behind the Morgan just continues to drop as well. Coming up and half an hour public knew by airport is killing your home's value. Stephen back to you thanks don't. We're continuing our special show now all about homeownership. What it means to you your family and your community. And right now a story about a family who didn't have a home of their own and they never thought they could. Because there wasn't enough money and there wasn't any opportunity to buy one. A family who today is living happily in a home of their own. Thanks to the hard work and generosity. Of habitat for humanity in greater Orlando end. About 150 real ports. You're listening to the sound. Of dreams coming true as brand new homes are built for people who don't have one. A whole community of homes in Orlando. A nice community dozens of brand new houses each one prettier than the last. With green grass under your feet in on this particular morning a bright blue sky above. A perfect day in fact for real source who wanted to help build a house. Port to port 25. Ever since one of the former president of the Atlanta aboard real tours correct. Tell me how many habitat builds have you done and what number is this one. This is the old number two and fight any. That means you've done 25. Builds. Over the years why do you keep coming back and this is the passion. Median family. We city appreciation on their feet. Anything while really to actually care we give him back to go to community is more than just making money it's about giving back and health and others. Fact is it's a real tour tradition you see every year at NAR's annual conference real towards gathered together with habitat for humanity. To help build a home for people who don't have one so you're here doing. Watched today Vicki CK ET yeah I paint me and I just came out to kind of rag and I haven't quite a couple pairs of gloves so here I am happy. Mickey turner is a real tour from Illinois I worst and other habitat homes but I've not worked at a habitat house. For any our site I'm actually thrilled to be there. That's wonderful and. Why do you do it why do you come out and help like this you know I'm a big advocate of giving back anyway. And what is more appropriate for our real estate agent and team work and how. Around the corner real true Terry Frederick was also painting. She came all the way from Wisconsin figure all the way down in Florida now painting. A house for a person who otherwise. Might not ever have a. Ranked right there. Just cynic the wonderful experience it really does it's I do it every year and I've done a further 1011. Years. And all kinds of Taft. It's just awesome. You know. You've done it for ten or eleven years. Why why do you keep coming back. 'cause that this is what we need to do that it's nothing makes me feel better than knowing the people are on live in this wonderful home and we make. Make it happen and help to make it happen. Catherine McManus president and CEO of habitat of greater Orlando says all the volunteer work that these realtors do. Means a lot. Not only are the realtors coming outing giving of their time today of their of their sweat equity. I'm but they're also giving a very generous financial contribution to help pay for that. That there working on Sam it's invaluable adds just they're giving of their time in their trash or we're very grateful. How is where it all began and it's and it's where memories are made and it is that we I'll think about. You know running down the stairs on Christmas Day are having that back bank account in the backyard. And for so many of our headliners they've never been able to create as memories until they've moved into their habitat pound. Homeowners like Pauline McKenzie and her son define. Who now have a home of their very own thanks to habitat and all these realtors. And I really doubt they'll want these films are beautiful little these dogs are my daddy you're going inside and feel beautiful and they are. And he spacious inside so I really love these won't. Polling sons to fund is a special needs child and she says. Having a home of their own has made their lives better than ever. It means that we never have to move again. We are stable they are. And Stephon hobby is the rule meant he could do whatever I want innings it is the rule mind anyhow so he's stable atmosphere about environments and it. Paulino also had a few thoughts about habitat for humanity and the real source who got to work that day in Orlando. The people who literally built the house she now calls home. Thank you so much for help in our spending helping or more it has like a fan you but I cause there really. I'm hop world want to warm and live in our home all until a judge the American dream that everyone talks about. So I greeted appreciate it. In the real estate today studios now after that great Daytona and Orlando nor should tell you that there's one more volunteer I haven't talked about yet. And that is Pauline. Because every habitat homeowner. Also have to do plenty of physical labor on the house that the eventually oh. Coming up unrealistic today if you've just put your first house under contract. So what keeps you up at night. When they are lying that it might not sleeping Ayers were wondering. How it might Harangody had a pipeline right can't let I'd make it at this stage it that's next on our special show. Homeownership. Real estate today. Connecting you with the real estate professionals. Every week. And we are backward our special show homeownership. Of course one of life's biggest milestones is going from renting to owning a home we talked about that and our first hour. So now we're going to continue that conversation with a realtor who specializes. In that transition. Joining us is Sara Jones co-founder and CEO of bamboo realty in Denver. Arrow welcome back Joseph we continue our conversation. Thanks Sara let's start now with the moment your clients have a signed contract to buy a house. They've signed at the sellers are and it and it's on its way to closing. From being a real to myself I know that many times. The clients will think oh my gosh have I done the right thing that I bought the right house. Can you tell us about that. Yes absolutely went somebody signed on the dotted line and it starts it. I'm cock between. Executing that contract in coming into a contract agreement with the Alex in the closing date there in that question mark Bentley and their head in that microscopic. Feeling of oh my goodness what happened at a laid back quite absolutely recharge your realtor with that question because I think that was so often. And into big partition it understandable they eat one entire search and making sure but it right out to have a conversation your real Turk. I had never had a client look on account where they not mention that right actually after. Clothing getting icky it did in that period of time in between contract including at about oh my god it went right out. Give it a lot of money and they're buying our house and they've never done it before. And they just want to make sure they're doing it the right way and getting the right place. Absolutely and it could commitment yet when you rent in a park ranger sank a twelve month that the act urgently church. When you're buying Howard and you're looking at a thirty year mortgage you know whether you plan to Dana house thirty years. In a little bit separate but you're definitely claimed to be their first report I yours are all acts that the much bigger commitment and of course the dollar and it actually mentioned. Among the people you work quick tour moving from renting to buying. What keeps them up at night. The process. And all of the little beech hill think out and you buying a home and something that is a big challenge. Our first time homebuyers and that when they are lying in bed at night not sleeping they're work when preached how would my learn only how to lifeline to write home at what point. And what I make it bad to agent and that really relying on your professional your real hurt your lender. And in that truck and network of professional era term lender retreat Q how easily better treat her right. Well there let's fast forward now to the date of closing the settlement day when your clients actually get the keys to the house. That's a big change for them especially if they've just come from renting a place what do you tell them about what their life will be like. Now that their homeowners. One of the most rewarding things for me as a real turn it into heat are candid Q buyer and they get locked their door. And walk inside as a home buyer for the very first time. And they into 98 and they really visualize well there like collect air. And a big part of black eyed for homebuyers were named as their life in building community with their neighbors. Finding what they're like well look I can't art grocery store and yeah how are they gonna spend their Friday and Saturday over the weekend when Arctic connecting to their home are being involved in community. And they're that big different than mine and the link and they gets her red church home buyer how they get immunity so that sort of Iraq when you get the keys that will really start turned. Well this is just so exciting Sarah to think that a renter comes to you and says I wanna buy a house and you help that person and now they are homeowners. So here's a question did they later come to you may be I don't know for five years later and say now I need a bigger house. Cats so we certainly have served millennial through the entire electrical crippled by saying. And into tallying eater because they want you move up to a larger homer perhaps they're relocating out of that each. And having no relationship Ari in lake is Barry because when and they kind of and that. Please help us sell our current we know the history how. We now bad meaning behind the comment white cat owner purchased a house. And that it hit and how we should marketing outer people because it's their motivation to back home or would related cute and neighborhood or the school. Or relaxed out and Shirley batted white and umpire will come along and and belly it's an Indian and very easy transition to make it we. And you know there overtime your clients must be delighted that they have become homeowners who can take advantage. Of all the benefits of owning their own home from building wealth to tax deductions. To even their feelings of self esteem. Actually an Soledad Bechtel that game part of that. There's something could be that when you Epstein an inning or how they need to and I I Aaron an eye in the acting in my future. And I'm in back in in black community and get that part of my life and I'm wearing she used that as a platform to grout grow well screwed up eighteen you meant and and it just a really cool thank you Aaron how can oppression. Sarah as a real Tora who's helped hundreds of people make the jump from renting to buying. What's your best advice to the people were listening to the show who might be thinking about the same thing. I get watery area that if you are considering buying a home. They can pay to weigh the options and talk to realtor at heart weighing your options. You have to make up your mind had it I'm. I'm definitely gonna buy and and reach out you can reach out there and get a better understanding of the ranking right army are buying right to me if I do you decide to buy an actor action what are and that but don't be afraid to reach out her realtor eat in the queried major kitchen. In the last question Syria is about you it must be very satisfying helping people who don't own a home of their own. Make the jump into a house that is there. I clearly and again we started our company serving richer than that we are meeting that need at people had not previously been mad. And building a relationship ever time and watching and grabbed from renters to homeowners it really bury that. I only thing that lead you were expert that and I absolutely. Well Sarah this has been a wonderful conversation and I really appreciate you joining us on real estate today. All of my letters feet and thank you so much for having me. You're very welcome. Eric Jones the co-founder and CEO of bamboo realty in Denver. Coming up for unrealistic today will find out how many people who don't own a house. One or two at eight she wanted on it aren't evil it's great. That's coming up on our special show. Homeownership. But first it's time for real knowledge and a special segment unrealistic today in which we talked to a top level real estate professional. Economist journalist or industry expert. And ask them tough questions designed to help you have a complete understanding of some of the most complicated areas of realistic. And today we're talking about the appraisal appraisal problems. You have a signed contract but the appraiser says the house isn't worth the money. The mortgage and a whole transaction is on the line what can a seller do and how about the buyer let's talk about the appraisal with a pro. Joining us now is Jamie more real tour and appraiser with Jamie more appraisals in Warrick Rhode Island. Jimmy's the past president of the Rhode Island association of real torch. And currently serves as any r.'s regional vice president for the New England states Jamie welcome to realistic today. I. We're glad you're here so Jamie if I'm selling my house in an appraiser is lower than the contract price. Can I appeal even though that means I'm telling the body or to pay more. In the bank to lend to more. Well actually quite at that I typically is the one that appealed that. And it's interesting because you and you're thinking well I'm trying to recruit and tell the high there well we're paying such. And they don't get mad at you because they wanted to ask you how an air straight this color is going to ticket you know not let them now. That's interesting so the buyer who want food that's the appeals that's awesome. You know I try to beat them I look at facts. Steve and some situation because in the especially in markets where she. There is not a lot of property feel it's reasonably tight sport that first time home buyer. And that's the property that we're seeing kind of creeping up in value of these states you know the one matched it an entry level property each intellect and record vote. And they are more and more people. In the marketplace trying to I don't property. How the white sugar creek not a bit and sometimes they're creeping higher or are or bastard and weekend support. Repeat title because there's not a lot of close to field an eerie yet right or that they aren't. So Jamie to avoid appraisal problems I know that you recommend. That sellers get their own appraisal before the house goes on the market. That's right and Eric Decker reports we can offer restrict Greek ports and summary reports. Every report. It typically done for this purpose it's expert once so party paraded it by ear or the color you expend my sport but it's well I'll where's the money edit and. Awesome Jamie thank you for joining us today. Jamie more real sore and appraiser with Jamie more appraisals in Warrick Rhode Ireland and the past presidents. Of the Rhode Island association. Of realtors. This is really easy today. All real estate all the time. And we're back with our special show all about what it's me still own a piece of the American dream. Homeownership. Today we're looking at how having the police of zero to help change your life for the better. From your money your community and even your country homeownership met. Coming up we'll talk about aspiring homeowners. What's keeping them from getting in the market. That's coming up right after Bill Thompson who joins us in the real estate continues her. Hi bill hi Stephen. While the 2016 housing market in Illinois was marked by unrest on the easiest uncertainty and lack of homes for sale the outlook for 2017. Looks much smoother. That according to the 2017 president of Illinois realtors Doug carp under. Some load of the rough spots of subtle election's over. Interest rates are going to be a concern for us because they are starting to move up again. But that has been anticipated I think some of that's been built into the market already. And president elect Matt to Vonage says the mortgage interest rate ranges shall very good Zoe says. It doesn't look like it's going to oppose any sort of major hardship and causing serious affordability problems. The sound of a jet plane overhead can fire wanderlust and some of us but most homeowners find that noise simply annoying. And now there are hard numbers to show how much the noises costing us in home value. REALTOR.com analyzed data on nine major noise factor to determine the effects on home values airport's snow surprised the worst offender. The study finds that if the home you're shelling has written a two mile radius of an airport. You likely to get thirteen point 2% less than you would for a similar role in a quieter zip code. Trains are much better living your railroad tracks because 212 point 3%. American cities may seem increasingly unaffordable but. 82 of the world's top 99 most affordable markets of all sizes. Are in the United States according to the 2017. Demography at international housing affordability survey. Organization measures affordability by comparing home prices with median household incomes the world's most affordable market of any size demography is says is. Racine Wisconsin. Looking only major markets the world's top seventeen most affordable or all of the US primarily in the midwest and the Rust Belt. Even back you. Thanks bill. We have brand new information for you know about people who either rent or live with family and friends. But who wants to Fargo home either now or in the future. A new survey from and they are reveals that among those people who do not yet own a home. 80%. Say they want to that's surveyed the aspiring homebuyers profile is the first of its kind. So let's talk about it now with Jessica layouts managing director of survey research and communications. At the national association of real torched Jessica welcome to realistic today. And scraping we're glad you're here so Jessica tell us about the a firing home buyers profile what were you looking for here. That we looked at sentiment over the last year both owners and that can hear it to those who don't currently on their homes for those few are renting or living with someone else. And we wanted to know do they want to own a home in the future how to pack compared. And the reason why they don't currently on their home. Source even among non homeowners eight out of ten consider homeownership. To be part of their American dream as the survey puts it so tell us about that Jessica. We do it and we could Gary consistently over demographics. Among non homeowners. We all can't see it that they want to own a home in the future and nine and had actually say that gaffe they do you want Allen they just aren't able to keep that right now. Yes so these are people who wanna buy a home but they are finding. Barriers that prevent them from doing that including student debt. And thinking that the down payment is actually going to be higher than it needs to be is that right. Rates and we can't planes that 40% advantage or not owners great out do you have united not hired in the general population. I'm and they don't feel comfortable taking on additional fat with their treatment that was I think we all can understand. An absolutely empathize plant. One other really interesting findings though was not just the inland that. We actually looked at what they believed they would need to put out for a down payment if they work purchased a home right now. And up actually want a shocking findings and they found it at 87%. At non owners. Believe that they need to put down 10% or more to purchase a home. And 39 person and believe that they need more than two when he first got down to purchase a home although I think they're just posture. Absolutely because both Freddie Mac and Fannie Mae and offered good mortgages with just 3% down. And they FHA backed mortgages can be had for three and a half percent down. So you don't need as much money as many of these aspiring homebuyers think they need. Absolutely and on top of that local communities often offer down payment assistance programs meant people may think that now I'm not going to be able to politics potter. Am IP for a different kind of kept a graphic that I would really encouraged because each community is different to really look at it Q. What your local community offers and a look at the Fannie and Freddie. The lone option because they're really our options available out there where you really don't each account more than 20% at. Quite a large amount and it's not eat at. You know another thing I found in the survey when I went through it is that even ago many of these non homeowners faced barriers. The vast majority of them want to buy a home and planned to buy a home in the future I mean they're not giving up. They're not giving up and then they cute he'd take affordability constraints but at every else. Are not and we do you see it that night and had a key wanna run in the future. And that reason why they would own it because their lifestyles that are getting married or starting a family. Retiring. And then if they haven't improved and their financial situation and I come back to spell really. Trying to get it that homeownership situation. Outfits applicable minute it would be right about. This is so interesting Jessica because for so many years we've been talking about the millennial generation and how they. Could be the biggest wave of home buyers ever and it just sounds like. This survey bears that out. Absolutely and they really are on the cut that that they are 36 Q. Eighteen years old depending on where about Arabic up where they where it is so I imagine that many of puke. Are in the younger cohort at the millennial groups will start I and the future right now that editor in their thirties hopefully our I'd already. And we have the lead do you expect that to keep them. And Tom Knight situations. One of very interesting survey Jessica and I really appreciate you talking to us about it much. You are welcome Jessica allowed the managing director of survey research and communications. At the national association of real tours. Coming up on realistic today why the best thing to do for you or yard might be. Nothing it. Dirty little secret of Gordon. We're almost all of it. Less is more that's next on our special show. Homeownership. This is a real estate today. Because you're home ninety. Your biggest investment. And we're back with our special show at home ownership. All about you in this wonderful place you call home. And right now we're going to take it outside and talk about the great outdoors. Your very own yard which is of course. One of the greatest parts of owning your own home. Joining us now with that is Mike McGrath the host of you bet your garden at WH YY in Philadelphia. Mike is syndicated all over the United States and Canada he's also the garden editor at WT OP in Washington DC. Mike welcome to realistic today. Always my pledge we're glad your here so break. If some of the people in our audience are moving into our house. What do they do with the yard these are people who may never have had one before what do they do. Well lord shall we new optic. You would not lead the number coerced in my radio show or even how big challenge inside yet but they have rented it shall work. They're going to chair were up the wall one and they're going to be calm performers. Up before the war each plot. And don't knowing you have not yet figured out which one switch turns on which white. Yet situated forced. Good what are the things people don't realize. Aging may have. What do you consider to be in on the track you rob or maybe even I did play at or in and each speak in your front door. So so it all on abortion it is a month later. Back empty spot Nagy filled with capitals and tulips and almost boring bolt beat you didn't know were buried could not have known they were mayor. And so you're advice to our listeners when they move into a brand new house women establish yard. Is be patient and wait what a year before they really start any renovations on a yard. You should really seek what it's easy and sporadic. Even in the fall. There are plans to come up grabbed it railed that keep you know. Who did they were bare before. They are so much you could screw up by jumping in quickly. Well Mike here's a question for you if a homeowner does. Move into a new house and they are patient as you advised. They still have to maintain things to some degree what should a new homeowner do just to make sure everything's in good shape. Okay first you wanna like get a fought a bit tight O law and you. Perhaps so but he specifically identify your type of perhaps and then find out from your local county extension agent what to correct coding height. It's you wanna carpet at the correct hobby. You wanna make sure your lawnmower has a super short white. Not the most important thing you can do what she stork a new season whether you're moving into the Alps where he'd been there twenty years. So there's your lawn know what about the trees to shrubs the flower beds. Can they survive without me doing any thing or shouldn't be paying some special attention to them as well in terms of fertilizer that's sort of thing. Right because it's such I'm Aaron country. Before we came here early. Oh stupid. Old trees up there redwood forests ME. How could pay Serb body for ten elves in ears will not packed you know why are dumb and throwing chemical fertilizers that her room or. Are they tech geek aren't needed noting he denounced. Could my brand New York. Do you okay. If I leave it for a year and I don't fertilize. Anything. Oh yeah and fertile lodged a great plane stall ward would forest not read words that field Arnold flowers. Good Turkey little secret of court. Eight is eighteen not need aux would be better off without parts. But we need depth. And we need to be better caretakers. Of it and with almost all players less is more. Well Michael one of the quickest ways to ruin a yard. It's either water it too much or too little what the correct amount of water. In most of the country. It it is one inch of water. Every week hopefully delivered. In one long so okay. One might radio advice for the brand new homeowner who also has. A brand new yard thanks for being with us. Always my pleasure trickier. Coming up unrealistic today what changes when you leave the landlord behind and by your own home. That's next right here on real estate today. If you're hungry for real estate information follow real estate today on Twitter. Shares segment listened to them again and be the first to know what's on next week show. Just search real estate today on Twitter. Real estate today. Because you love real estate. And we are back with our special show homeownership. All about the many ways owning a home a hero and can help transform your life. We're going to wrap up today's show with a few words for anyone who hopes to own a home someday but who so far hasn't made that jump. Just a few words about how are your rifle changed when you start printing and actually buy a home a bureau. Let's start with your monthly expenses when you rent a place you pay the landlord every month. Assuming you're on a lease that rent checks days to aim for about one year and then usually increases. Fortune magazine predicted that in 2016. Rest would rise around 8%. But I would turn a thousand dollar monthly rent into a 1080. Dollar monthly rent. No this year might not be as bad as that but in most areas that are three to 5% increase is expected in 2017. So if you keep on renting you need to budget for those annual rent increases. Compare that with having a mortgage if you get a thirty year fixed rate mortgage the payment will stay the same year after year. I just think about that if your mortgage is 1000 dollars a month this year. It will stay right there next year and the year after that and the year after that it will stay right there for thirty years. Are you probably won't be living their for thirty years but if you are. Three decades from now your monthly mortgage payment will still be 1000. Dollars. Okay next let's look after taxes when you rent you typically don't itemize deductions. You probably just take the standard deduction which is fine. But that changes when you buy a place because as a homeowner you get too big deductions that renters don't. What is your mortgage interest that could add up to thousands of dollars in deductions. The other is your property taxes that could easily hit a thousand maybe more. So every year you could either get a bigger tax refund war. If you adjust your withholding. You could have more spending money every month. No again renters don't get those deductions but of course you might be thinking renters also don't have to pay property taxes and that's true. But in most cases those property taxes are reflected in the amount of rent the landlord chargers. No moving on from the money let's look at what you can do with the place. When you rent you can only do with the least allows. Generally you can paint the place any color you want but you might have to repaint it back to wait for instance when you leave. Norris for other changes which could be anything from a new light switch to a ceiling fan to a new fridge or anything else. You'll need to ask the landlord and maybe you'll get it maybe not but whatever you do you need to get the landlords permission. Now compare that with owning a place when you own it. You can do anything you want anything out it changes you make equal have to be done according to code that's a safety issue. And according to zoning laws like in most cities you can't really put zoo in your backyard. And also. If you have a Condo association or homeowners association you'll have to follow those rules too but. Paint it remodeled it change it make it all yours you can do all of that with a place you hone. It's yours so have fun. Those are just a few of the change usual experience when you make the jump from renting to owning other things what happened to. But they'll take more time by the way you gradually build wealth because over time real estate values generally grow. And every month you're paying down that mortgage so in the long run you're building equity. And that may well become the greatest source of wealth in your life. So when that time is right and you can comfortably afford to buy and own a home. You can look forward to all the things we've talked about in today's show in if you decide to make that jump. Welcome home. Coming up next week on realistic today I love your home it's our annual tribute to Valentine's Day. And we'll have some great ways you can show the love to the place you call home. Love your home is next week right here on realistic today. And remember you can always listen online at radio got real tool. And for all of us here at realistic today to thank you for listening. If you're real hazard you can put the entire really CTV show on your web site. The best we speak show on the Radio One 100% for each and they are members. Just go to our new web address the radio dot realtor and click through realtors.