RISMEDIA, November 12, 2010--Every fall, parents wave goodbye as their college-bound kids pack up their belongings, make the drive down university lane and prepare for football games, mid-terms and freedom. While college living is often associated with dorms and campus housing, Coldwell Banker Real Estate LLC discovered that many parents are opting to purchase a home rather than spend money on rent or dorm fees. According to a recent survey among the Coldwell Banker® network of real estate professionals in college towns, 64 percent see a significant number of “parent investors” buying homes for their kids to live in while attending the university.
To see how college towns stack up in home price affordability, Coldwell Banker Real Estate released its new College Home Listing Report (College HLR), which provides the average home listing price of four-bedroom, two-bathroom properties listed for sale between April and September 2010 on coldwellbanker.com in markets home to the 120 schools in the Football Bowl Subdivision. With almost two-thirds of the College HLR markets having subject homes priced less than $250,000 (78 in total), college towns prove to be a touchdown for homebuyers.
The top 10 most affordable markets in the Coldwell Banker Real Estate College Home Listing Report are:
1. Ball State University, Muncie, Ind. - $105,115
2. University of Buffalo: The State University of New York, Buffalo, N.Y. - $117,223
3. University of Memphis, Memphis, Tenn. - $135,090
4. University of South Carolina, Columbia, S.C. - $137,707
5. University of Akron, Akron, Ohio - $139,711
6. Eastern Michigan University, Ypsilanti, Mich. - $141,629
7. Ohio University, Athens, Ohio - $141,964
8. Kent State University, Kent, Ohio - $153,662
9. University of Toledo, Toledo, Ohio - $155,286
10. Louisiana Tech University, Ruston, La. - $157,110
“Towns that are home to major universities have a special vibe you just don’t find anywhere else,” said Jim Gillespie, chief executive officer, Coldwell Banker Real Estate and alumni of the Illinois Fighting Illini. “It’s about more than just great sports and local flavor. College towns offer rich culture and most have steady economic bases oftentimes highlighted by outstanding medical and research facilities.”
While not all college towns are affordable, even the more expensive markets make great places to live.
The top 10 most expensive markets in the Coldwell Banker Real Estate College Home Listing Report are:
1. Stanford University, Palo Alto, Calif. - $1,385,652
2. University of Hawaii, Honolulu, Hawaii - $833,439
3. University of California LA, and University of Southern California, Los Angeles, Calif. - $833,087
4. University of Colorado, Boulder, Colo. - $791,877
5. Boston College, Chestnut Hill, Mass. -$791,408
6. United States Naval Academy, Annapolis, Md. - $671,151
7. San Jose State University, San Jose, Calif. - $650,111
8. University of California Berkeley, Berkeley, Calif. - $636,958
9. University of Washington, Seattle, Wash. - $624,338
10. Northwestern University, Evanston, Ill. - $559,855
Additional Survey Findings:
Coldwell Banker Real Estate also found that college towns have continued to be a hot spot for real estate investing, regardless of the downturn in the economy. Seventy-three (73) percent of Coldwell Banker real estate professionals surveyed said they see a significant number of investors buying homes near campus and renting them to people in the community, with only 21 percent seeing a decrease in this trend over the past five years.
“Our survey suggests two types of investors see value in college towns,” Gillespie said. “Long-term investors take advantage of the steady stream of renters, including students, professors and university officials. “‘Parent investors’ buy homes for their child to live in while attending college. Roommates provide rental income for the mortgage, and the hope is that students care for the home and it appreciates over time.”
With so many benefits to living in a college town, they aren’t just for investors. Alumni and retirees are finding reasons to re-live their glory days, as well. Fifty one (51) percent of the survey respondents noted they see a lot of alumni homebuyers, and 49 percent see a significant number of retirees moving to their college town.
“It’s not just students who want to live near campus, attend games and take interesting classes,” Gillespie said. “For a few years now, college towns have been popular markets for alumni and retirees. I’m a great example,” he said. “I purchased a home in Champaign, Ill. to be near my alma mater, the University of Illinois, and it’s one of the best decisions I’ve ever made, from both a lifestyle and a financial perspective.”
Fun Fact:
The survey of Coldwell Banker real estate professionals uncovered that a college sports team’s performance affects more than just a football ranking; nearly one quarter (24 percent) of respondents indicated that the success of a college’s sports teams can have an impact on the local real estate market.
For a fun look at fans’ perspectives, Coldwell Banker Real Estate spoke with dozens of people on a fall football Saturday for insider thoughts on what makes their college town special. To see these interviews, please visit Coldwell Banker On Location: http://www.youtube.com/watch?v=fmglCxq1sck.
Friday, November 12, 2010
Thursday, November 11, 2010
Census: Couples Marrying Later, Affects Household Size
Census: Couples Marrying Later, Affects Household Size
RISMEDIA, November 11, 2010--The median age at first marriage increased to 28.2 for men and 26.1 for women in 2010, an increase from 26.8 and 25.1 in 2000, according to the U.S. Census Bureau. This increase is a continuation of a long-term trend that has been noted since the mid-1950s. In addition, the overall percentage of adults who were married declined to 54.1 percent in 2010 from 57.3 percent in 2000.
According to America's Families and Living Arrangements, the average household size declined to 2.59 in 2010, from 2.62 people in 2000. This is partly because of the increase in one-person households, which rose from 25 percent in 2000 to 27 percent in 2010, more than double the percentage in 1960 (13 percent).
These data come from the 2010 Current Population Survey, which provides a look at the socioeconomic characteristics of families and households at the national level.
"This series of tables highlights some of the changes in household composition over the last decade," said Rose Kreider, a family demographer at the U.S. Census Bureau.
Even though the overall household size declined between 2000 and 2010, some household subgroups increased in size. For example, households where the householder had less than a high school degree increased to an average of 2.87 people in 2010 from 2.67 people in 2001.
Editor's note: The information can be accessed at http://www.census.gov/ population/www/socdemo/hh-fam.html.
Other highlights:
* The percentage of households headed by a married couple who had children under 18 living with them declined to 21 percent in 2010, down from 24 percent in 2000.
* The percentage of children under 18 living with two married parents declined to 66 percent in 2010, down from 69 percent in 2000.
* In 2010, 23 percent of married-couple family groups with children under 15 had a stay-at-home mother, up from 21 percent in 2000. In 2007, before the recession, stay-at-home mothers were found in 24 percent of married-couple family groups with children under 15.
* The percentage of children under 18 who lived in a household that included a grandparent increased from 8 percent in 2001 to 10 percent in 2010. Of the 7.5 million children who lived with a grandparent in 2010, 22 percent did not have a parent present in the household.
RISMEDIA, November 11, 2010--The median age at first marriage increased to 28.2 for men and 26.1 for women in 2010, an increase from 26.8 and 25.1 in 2000, according to the U.S. Census Bureau. This increase is a continuation of a long-term trend that has been noted since the mid-1950s. In addition, the overall percentage of adults who were married declined to 54.1 percent in 2010 from 57.3 percent in 2000.
According to America's Families and Living Arrangements, the average household size declined to 2.59 in 2010, from 2.62 people in 2000. This is partly because of the increase in one-person households, which rose from 25 percent in 2000 to 27 percent in 2010, more than double the percentage in 1960 (13 percent).
These data come from the 2010 Current Population Survey, which provides a look at the socioeconomic characteristics of families and households at the national level.
"This series of tables highlights some of the changes in household composition over the last decade," said Rose Kreider, a family demographer at the U.S. Census Bureau.
Even though the overall household size declined between 2000 and 2010, some household subgroups increased in size. For example, households where the householder had less than a high school degree increased to an average of 2.87 people in 2010 from 2.67 people in 2001.
Editor's note: The information can be accessed at http://www.census.gov/ population/www/socdemo/hh-fam.html.
Other highlights:
* The percentage of households headed by a married couple who had children under 18 living with them declined to 21 percent in 2010, down from 24 percent in 2000.
* The percentage of children under 18 living with two married parents declined to 66 percent in 2010, down from 69 percent in 2000.
* In 2010, 23 percent of married-couple family groups with children under 15 had a stay-at-home mother, up from 21 percent in 2000. In 2007, before the recession, stay-at-home mothers were found in 24 percent of married-couple family groups with children under 15.
* The percentage of children under 18 who lived in a household that included a grandparent increased from 8 percent in 2001 to 10 percent in 2010. Of the 7.5 million children who lived with a grandparent in 2010, 22 percent did not have a parent present in the household.
Regional Spotlight: Tax Credit Effect Evident in Illinois Third Quarter Home Sales
Regional Spotlight: Tax Credit Effect Evident in Illinois Third Quarter Home Sales
RISMEDIA, November 11, 2010--More than half of Illinois counties reported gains in the median home sale price during the third quarter of 2010 compared to a year ago despite the post-tax credit slowdown in sales activity.
According to the Illinois Association of REALTORS® (IAR) third quarter 2010 report, Illinois home sales (which include single-family homes and condominiums) totaled 24,628 in the third quarter, down 24.9 percent from 32,776 home sales in the same period a year ago. The third quarter statewide median home sale price was $154,000, down 6.1 percent from $164,000 in the third quarter of 2009. The median is a typical market price where half the homes sold for more, half sold for less.
"Home sales totals in the third quarter are evidence buyers sped up their home purchases to get the tax credit incentive while momentum toward price stabilization proved resilient in some markets and tempered in others," said REALTOR® Sheryl Grider Whitehurst, ABR, CRB, GRI, president of the Illinois Association of REALTORS® and the Development and Operations Coordinator for Traders Realty in Peoria. "For the housing market to move forward in this post-stimulus environment will require much stronger signals that the economy, jobs and foreclosure outlooks are improving."
Adds Whitehurst: "Looking ahead to the typically slower holiday months, buyers will still find exceptional affordability conditions with low mortgage interest rates and home prices."
The 3Q10 interest rate for 30-year, fixed-rate mortgages averaged 4.45 percent in the North Central Region, according to the Federal Home Loan Mortgage Corporation. It was down from 4.94 percent in the second quarter and down from 5.28 percent a year ago in 3Q09.
"The national and regional economies continue to under-perform even though the National Bureau of Economic Research indicated that the economic recovery began in July 2009; there is broad agreement that the pace of recovery needs to be accelerated," said Dr. Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) of the University of Illinois. "Since the beginning of the recession in December 2007, Illinois has added jobs in eight months and suffered declines in 24. If account is taken of population (and thus the labor force growth), Illinois would need to add 450,600 more jobs to put it in a comparable position to the last peak level recorded in November 2000."
In the Chicagoland Primary Metropolitan Statistical Area (PMSA) total home sales (single-family and condominiums) were down 22.4 percent in the third quarter of 2010 to 16,520 homes sold compared to 21,297 home sales in the third quarter of 2009.
The Chicagoland PMSA third quarter 2010 median price was $188,666, down 8.0 percent from $205,000 in the third quarter of 2009.
More than half of Illinois counties (51 of 99 counties reporting) posted median price increases in the third quarter of 2010 compared to the same period in 2009 including: Champaign, up 4.1 percent to $147,500; DuPage, up 0.6 percent to $238,627; Knox, up 10.3 percent to $75,000; Lake, up 4.2 percent to $216,700; Madison, up 5.0 percent to $121,500; Saint Clair, up 15.7 percent to $141,950; Sangamon, up 3.9 percent to $124,000; and Tazewell, up 6.6 percent to $127,900.
In the city of Chicago, total home sales (single-family and condominiums) in the third quarter were down 23.1 percent to 4,477 sales compared to 5,820 sales in the third quarter of 2009. The city of Chicago median price in the third quarter was down 16.1 percent to $192,900 from $230,000 in third quarter 2009.
"The third quarter of 2010 reflects a different marketplace than the same period in 2009, when buyers were incentivized with $8,000 and $6,500, respectively, for first-time and move-up home purchases," said Mabel Guzman, president of the Chicago Association of REALTORS® and a REALTOR® with Su Familia Real Estate, Chicago. "Today, tightened credit practices paired with a lack of consumer confidence continue to make homebuying a challenge for those potentially on the fence. Positive signs, however, can be seen in the stabilization of the average price in the city of Chicago and the ongoing investment in distressed properties throughout the city."
Sales and price information is generated from a survey of Multiple Listing Service sales reported by 35 participating Illinois REALTOR® local boards and associations. The Chicago PMSA, as defined by the U.S. Census Bureau, includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.
RISMEDIA, November 11, 2010--More than half of Illinois counties reported gains in the median home sale price during the third quarter of 2010 compared to a year ago despite the post-tax credit slowdown in sales activity.
According to the Illinois Association of REALTORS® (IAR) third quarter 2010 report, Illinois home sales (which include single-family homes and condominiums) totaled 24,628 in the third quarter, down 24.9 percent from 32,776 home sales in the same period a year ago. The third quarter statewide median home sale price was $154,000, down 6.1 percent from $164,000 in the third quarter of 2009. The median is a typical market price where half the homes sold for more, half sold for less.
"Home sales totals in the third quarter are evidence buyers sped up their home purchases to get the tax credit incentive while momentum toward price stabilization proved resilient in some markets and tempered in others," said REALTOR® Sheryl Grider Whitehurst, ABR, CRB, GRI, president of the Illinois Association of REALTORS® and the Development and Operations Coordinator for Traders Realty in Peoria. "For the housing market to move forward in this post-stimulus environment will require much stronger signals that the economy, jobs and foreclosure outlooks are improving."
Adds Whitehurst: "Looking ahead to the typically slower holiday months, buyers will still find exceptional affordability conditions with low mortgage interest rates and home prices."
The 3Q10 interest rate for 30-year, fixed-rate mortgages averaged 4.45 percent in the North Central Region, according to the Federal Home Loan Mortgage Corporation. It was down from 4.94 percent in the second quarter and down from 5.28 percent a year ago in 3Q09.
"The national and regional economies continue to under-perform even though the National Bureau of Economic Research indicated that the economic recovery began in July 2009; there is broad agreement that the pace of recovery needs to be accelerated," said Dr. Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) of the University of Illinois. "Since the beginning of the recession in December 2007, Illinois has added jobs in eight months and suffered declines in 24. If account is taken of population (and thus the labor force growth), Illinois would need to add 450,600 more jobs to put it in a comparable position to the last peak level recorded in November 2000."
In the Chicagoland Primary Metropolitan Statistical Area (PMSA) total home sales (single-family and condominiums) were down 22.4 percent in the third quarter of 2010 to 16,520 homes sold compared to 21,297 home sales in the third quarter of 2009.
The Chicagoland PMSA third quarter 2010 median price was $188,666, down 8.0 percent from $205,000 in the third quarter of 2009.
More than half of Illinois counties (51 of 99 counties reporting) posted median price increases in the third quarter of 2010 compared to the same period in 2009 including: Champaign, up 4.1 percent to $147,500; DuPage, up 0.6 percent to $238,627; Knox, up 10.3 percent to $75,000; Lake, up 4.2 percent to $216,700; Madison, up 5.0 percent to $121,500; Saint Clair, up 15.7 percent to $141,950; Sangamon, up 3.9 percent to $124,000; and Tazewell, up 6.6 percent to $127,900.
In the city of Chicago, total home sales (single-family and condominiums) in the third quarter were down 23.1 percent to 4,477 sales compared to 5,820 sales in the third quarter of 2009. The city of Chicago median price in the third quarter was down 16.1 percent to $192,900 from $230,000 in third quarter 2009.
"The third quarter of 2010 reflects a different marketplace than the same period in 2009, when buyers were incentivized with $8,000 and $6,500, respectively, for first-time and move-up home purchases," said Mabel Guzman, president of the Chicago Association of REALTORS® and a REALTOR® with Su Familia Real Estate, Chicago. "Today, tightened credit practices paired with a lack of consumer confidence continue to make homebuying a challenge for those potentially on the fence. Positive signs, however, can be seen in the stabilization of the average price in the city of Chicago and the ongoing investment in distressed properties throughout the city."
Sales and price information is generated from a survey of Multiple Listing Service sales reported by 35 participating Illinois REALTOR® local boards and associations. The Chicago PMSA, as defined by the U.S. Census Bureau, includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.
Wednesday, November 10, 2010
HUD to Launch Pilot Program to Help Homeowners
HUD to Launch Pilot Program to Help Homeowners
RISMEDIA, November 10, 2010-- HUD on Tuesday announced a new pilot program that will offer credit-worthy borrowers low-cost loans to make energy-saving improvements to their homes. Backed by the Federal Housing Administration (FHA), these new FHA PowerSaver loans will offer homeowners up to $25,000 to make energy-efficient improvements of their choice, including the installation of insulation, duct sealing, doors and windows, HVAC systems, water heaters, solar panels, and geothermal systems.
HUD and FHA developed PowerSaver as part of the Recovery Through Retrofit initiative launched in May 2009. More homeowners are interested in making their homes energy efficient, according to industry forecasts. Yet options are still limited for financing home energy improvements, especially for the many homeowners who are unable to take out a home equity loan or access an affordable consumer loan. HUD today published a notice seeking the participation of a limited number of mortgage lenders in the two-year pilot program slated to begin in early 2011.
“PowerSaver provides lenders with a new product option to serve a potentially growing market,” said David H. Stevens, FHA Commissioner. “We believe there are a number of lenders who will be interested in working with us to help save energy and money for homeowners, while creating jobs and cutting greenhouse gas emissions.”
Lenders will be selected to participate in the PowerSaver pilot based on their capacity and commitment to provide affordable home energy improvement financing. Lenders will be required to serve communities that have already taken affirmative steps to expand home energy improvements. HUD will help lenders identify such markets – which exist in many suburban, rural and urban areas across the country.
PowerSaver loans will be backed by the FHA – but with significant “skin in the game” from private lenders. FHA mortgage insurance will cover up to 90 percent of the loan amount in the event of default. Lenders will retain the remaining risk on each loan, incentivizing responsible underwriting and lending standards. FHA will provide streamlined insurance claims payment procedures on PowerSaver loans. In addition, lenders may be eligible for incentive grant payments from FHA to enhance benefits to borrowers, such as lowering interest rates.
PowerSaver has been carefully designed to meet a need in the marketplace for borrowers who have the ability and motivation to take on modest additional debt to realize the savings over time from a home energy improvement. PowerSaver loans are only available to borrowers with good credit, manageable overall debt and at least some equity in their home (maximum 100% combined loan to value).
To read the full text of FHA’s notice, visit HUD’s website.
RISMEDIA, November 10, 2010-- HUD on Tuesday announced a new pilot program that will offer credit-worthy borrowers low-cost loans to make energy-saving improvements to their homes. Backed by the Federal Housing Administration (FHA), these new FHA PowerSaver loans will offer homeowners up to $25,000 to make energy-efficient improvements of their choice, including the installation of insulation, duct sealing, doors and windows, HVAC systems, water heaters, solar panels, and geothermal systems.
HUD and FHA developed PowerSaver as part of the Recovery Through Retrofit initiative launched in May 2009. More homeowners are interested in making their homes energy efficient, according to industry forecasts. Yet options are still limited for financing home energy improvements, especially for the many homeowners who are unable to take out a home equity loan or access an affordable consumer loan. HUD today published a notice seeking the participation of a limited number of mortgage lenders in the two-year pilot program slated to begin in early 2011.
“PowerSaver provides lenders with a new product option to serve a potentially growing market,” said David H. Stevens, FHA Commissioner. “We believe there are a number of lenders who will be interested in working with us to help save energy and money for homeowners, while creating jobs and cutting greenhouse gas emissions.”
Lenders will be selected to participate in the PowerSaver pilot based on their capacity and commitment to provide affordable home energy improvement financing. Lenders will be required to serve communities that have already taken affirmative steps to expand home energy improvements. HUD will help lenders identify such markets – which exist in many suburban, rural and urban areas across the country.
PowerSaver loans will be backed by the FHA – but with significant “skin in the game” from private lenders. FHA mortgage insurance will cover up to 90 percent of the loan amount in the event of default. Lenders will retain the remaining risk on each loan, incentivizing responsible underwriting and lending standards. FHA will provide streamlined insurance claims payment procedures on PowerSaver loans. In addition, lenders may be eligible for incentive grant payments from FHA to enhance benefits to borrowers, such as lowering interest rates.
PowerSaver has been carefully designed to meet a need in the marketplace for borrowers who have the ability and motivation to take on modest additional debt to realize the savings over time from a home energy improvement. PowerSaver loans are only available to borrowers with good credit, manageable overall debt and at least some equity in their home (maximum 100% combined loan to value).
To read the full text of FHA’s notice, visit HUD’s website.
Subscribe to:
Posts (Atom)