Townhome Market Shows Signs of a Comeback
DAILY REAL ESTATE NEWS | TUESDAY, FEBRUARY 24, 2015

Townhouse construction was back on the rise in 2014, as home buyers show an increasing appetite for this type of housing once again. 

Single-family attached starts totaled 19,000 in the fourth quarter of 2014 – 12 percent higher than a year prior, according to Census data. For all of 2014, townhouse construction starts totaled 72,000, up from 68,000 starts in 2013.

The market share of townhouses comprises 12 percent of all single-family starts. The peak for townhouse construction was during the first quarter of 2008 when it reached 14.6 percent.

During the recent recession, the townhome market plunged, particularly as the number of first-time home buyers fled the market. But as the number of first-time home buyers rebounds, construction of town homes is expected to rise again too.

“The prospects for townhouse construction over the long run are positive given large numbers of home buyers looking for medium density residential neighborhoods, such as urban villages that offer walkable environments and other amenities,” writes Robert Dietz, an economist for the National Association of Home Builders, on NAHB’s Eye on Housing blog.

REALTORS® are upbeat about townhome prospects in the District of Columbia, North Dakota, Colorado, Texas, California, Florida, Hawaii, and Alaska, according to the December 2014 REALTORS® Confidence Index Survey.

However, REALTORS® continue to be concerned about the condo market overall, reporting that obtaining Federal Housing Administration financing for condos remains a big hurdle for home buyers because many condos continue to not meet FHA eligibility criteria. Existing condo and co-op sales fell 3.5 percent on a seasonally adjusted annual rate in January; they remain 1.8 percent below year ago levels, the National Association of REALTORS® reported in its latest housing report.  

Read more: Only 30% of Condo Buildings Are FHA Approved

“Condominiums offer an affordable option and are the first step to home ownership for many home buyers,” NAR President Chris Polychron said in a recent statement. “NAR has urged FHA to develop policies that will give buyers access to more flexible and affordable financing opportunities and a wider choice of approved condo developments.”

Source: “Townhouse Market Expanded in 2014,” National Association of Home Builders’ Eye on Housing blog (Feb. 23, 2015) and “States with Strong Townhouses and Condos Market,” National Association of REALTORS® Economists’ Outlook blog (Feb. 10, 2015)

3 Reasons Housing is Looking Up in 2015

3 Reasons Housing is Looking Up in 2015Posted on Jan 7 2015 - 11:57am by Zoe Eisenber

As 2015 rolls forward, there are several indicators that the housing market may have a break-out year. Let's review the top three.

Why Buyers May Find Mortgages Easier to Get

Why Buyers May Find Mortgages Easier to Get

DAILY REAL ESTATE NEWS | MONDAY, FEBRUARY 23, 2015

Good news for potential home shoppers: A Mortgage Bankers
Association index shows lender requirements regarding credit scores, down payments, and other key terms are finally loosening up. Some lenders are even expanding the types of mortgages they
offer. These moves come after years of lenders tightening loan
requirements in the aftermath of the housing crisis.
The newly-released MBA index shows that recent improvements in lending are mostly tied to the government’s efforts to ease
regulations and improve affordability in the housing market.
For example, mortgage financing giant Fannie Mae is now allowing purchases of conventional mortgages that have down payments as low as 3 percent: Freddie Mac is planning to do the same for mortgages closed on or after March 23.
Also, the Federal Housing Administration, which insures loans with down payments as low as 3.5 percent, reduced its upfront mortgage insurance premiums last month, which is expanding eligibility for home purchases to thousands of potential home shoppers.
“Things are looking better for home buyers and refinancers,” not just in the loosening of underwriting requirements but also in the cost of credit, says Brad Blackwell, executive vice president of Wells Fargo Home Mortgage, the nation’s largest mortgage originator based on volume.
Blackwell says that Wells Fargo has been gradually opening its credit box as the government has taken steps to clarify its lending policies and penalties against lenders for defaulting loans. That has helped lenders gain confidence to expand lending to a broader range of borrowers, including those who may not have high credit scores or a sizable down payment for their home purchase.
Wells Fargo says it also has relaxed its policy on down payment gifts to borrowers from relatives and friends. Wells Fargo previously required borrowers to contribute at least 5 percent of the total costs on a home purchase from their own finances in order to qualify for a conventional loan with a 5 percent or lower down payment. The bank giant recently reduced that requirement to 3 percent, allowing for greater gift assistance.
Source: “Lenders Begin Easing Requirements to get a Mortgage,” The Los Angeles Times (Feb. 22, 2015)

Tax Deduction Advice for Your Clients

 

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Tax Deduction Advice for Your Clients

DAILY REAL ESTATE NEWS | MONDAY, FEBRUARY 09, 2015

The bad news: tax season is upon us. The good news? If you're a home owner, there are tax benefits available to lessen the pain. Houselogic has put together a general list of tips about tax deductions for home owners, but they've also given specific tips to help your clients no matter where they are in the journey of home ownership:

More Tax Advice

Tax Time Is Now

Tax Tips for You and Your Clients

7 Not To Be Missed Tax Deductions: From mortgage interest to property tax deductions, here are the general tax deductions your clients need to know about.

Mortgage-Related Deductions: If your clients took out a mortgage when they purchased a home, they may be able to deduct the prepaid interest on their federal tax return, but only if they meet a list of requirements.

Tax Advice if you Sold Your Home: The money spent on so-called capital improvement could also help lower your clients' tax bills when it comes time to sell.

Tax Benefits if you Work From Home: Working from home? This tax guide shares deduction options that could save you time and money.

Tax Tips for Rental Properties: Renting out a home can be a lot of work, but you’ll appreciate collecting the rent checks and taking advantage of these tax deductions.

How Long do you Keep Tax Records Anyway? If you're going to file a claim or take a deduction, it's imporant to have the paperwork to back it up. This guide let's you know what tax paperwork to keep and what paperwork to throw away.



Source: "A Homeowner's Guide to Taxes," Houselogic, (Feb. 9, 2015)