Wednesday, October 27, 2021 / by Nicole Solari
Many homeowners have renovated ADUs (accessory dwelling units) to their own property or bought secondary property in order to rent out to short-term renters. While the most common use for these spaces is to house family members or lease out to long-term renters, some homeowners find short-term renting to be extremely profitable.
Renting — especially in sought-after vacation markets — is a great source of extra income, so it’s no wonder platforms like Airbnb, HomeAway, and VRBO have been on the rise. However, while short-term rentals have perks, homeowners should consider the negative factors as well.
Short-term rentals are on the rise
In HomeLight’s Top Agent Insights for End of Year 2021, 51% of agents have seen more and more properties being listed on vacation rental platforms in their markets. In the South Central region, 61% of agents have seen an increase in short-term rental properties.
Since the start of the pandemic, vacat; ...
Monday, October 25, 2021 / by Nicole Solari
A recent survey from LendingTree.com found there are multiple reasons why Americans would choose to purchase a home instead of renting. Some of the most popular non-financial reasons given include:
The flexibility to make the space your own
The pride homeownership offers
The sense of stability
In the same survey, 41% of respondents say they’d rather own a home than rent because of the unique way homeownership builds wealth over time.
And experts agree – the home you own is an important tool for building your net worth. Here’s what many of those experts have to say about building long-term financial stability through homeownership.
According to the National Association of Realtors (NAR):
“Homeowners who purchased a typical single-family existing-home 30 years ago at the median sales price of $103,333 with a 10% down payment loan and who sold the property at the median sales price of $357,700 in 2. ...
Friday, October 22, 2021 / by Nicole Solari
Today’s strong sellers’ market is the direct result of high demand and low supply.
Low mortgage rates and generational trends have created an increased demand for homes. Meanwhile, the slower pace of new home construction and homeowners staying in their homes longer have both led to today’s low supply.
If you’re thinking of selling, work with a trusted agent to understand your local area and how you can take advantage of today’s housing market. ...
Wednesday, October 20, 2021 / by Nicole Solari
The financial benefits of buying a home versus renting one are always up for debate. However, one element of the equation is often ignored – the ability to build wealth as a homeowner.
According to the latest research from the National Association of Realtors (NAR):
“Homeownership is a key pathway to building wealth and narrowing the racial income and wealth inequality gap. Housing wealth (equity) accumulation takes time and is built up by price appreciation and paying off the mortgage.”
An increase in equity builds the wealth of the individual that owns it. This wealth can be passed down to future generations. The Federal Reserve in an addendum to their Survey of Consumer Finances explains:
“There are numerous ways families can transmit wealth and resources across generations. Families can directly transfer their wealth to the next generation in the form of a bequest. They can also provide the nex. ...
Monday, October 18, 2021 / by Nicole Solari
There’s a well-known economic theory – the law of supply and demand – that explains what’s happening with prices in the current real estate market. Put simply, when demand for an item is high, prices rise. When the supply of the item increases, prices fall. Of course, when demand is very high and supply is very low, prices can rise significantly.
Understanding the impact both supply and demand have can provide the answers to a few popular questions about today’s housing market:
Why are prices rising?
Where are prices headed?
What does this mean for homebuyers?
Why Are Prices Rising?
According to the latest Home Price Insights report from CoreLogic, home prices have risen 18.1% since this time last year. But what’s driving the increase?
Recent buyer and seller activity data from the National Association of Realtors (NAR) helps answer that question. When we take NAR’s buyer activity data and. ...