National home equity in the third quarter of 2019 rose 5.1% year over year, reaching an average of $5,300 per homeowner, according to CoreLogic’s Home Equity Report. States that saw the largest equity gains are Idaho (where homeowners saw an average increase of $25,800), Wyoming ($24,000), Utah ($21,000), and Montana ($17,800).

Meanwhile, the number of homes with negative equity, meaning the owners owe more on their mortgage than their property is worth, dropped by 4% to 2 million—or 3.7% of all properties with a mortgage. “Ten years ago, during the depths of the Great Recession, more than 11 million homeowners had negative equity, or 25% of mortgaged homes,” says Frank Nothaft, CoreLogic’s chief economist. “After more than eight years of rising home prices and employment growth, [the number of] underwater owners has been slashed.”

Source: “Homeowner Equity Report,” (December 2019) CoreLogic

Home prices grew by 3.5 percent year-over-year in October and are expected to rise by 5.4 percent by the same time next year, according to a CoreLogic Home Price Index and Forecast report. Between September and October 2019, home prices grew by 0.5 percent.

Nationwide, home values have been growing steadily since 2012 and the recovery period that followed the recession. February 2016 saw peak year-over-year growth at 4.2 percent. But now, CoreLogic’s economists predict new peaks for the coming year.

While low mortgage rates and a strong job market increase Americans’ homebuying ability and therefore competition for homes, some parts of the country are not reaping in the prosperity at equal rates. Thirty-five of the country’s 100 largest cities currently have an overvalued housing market while the Northeast division comprising New York, New Jersey and White Plains saw housing values fall by 1 percent over the last year.

“Local home-price growth can deviate widely from the change in our U.S. index,” said Dr. Frank Nothaft, chief economist at CoreLogic. “While we saw prices up 3.5 percent nationally last year, home prices also declined in 22 metropolitan areas. Price softness occurred in some high-cost urban areas and in metros with weak employment growth during the past year.” That said, the numbers show that the overall American housing market is looking fairly strong — and buyer sentiment is also changing to reflect its current conditions.

For many of us, the decision to rent or buy is dictated by our income. But for retirees, who are typically on a fixed income, deciding between renting and buying isn’t such a simple calculation. Retirees may choose to relocate for a variety of reasons, including downsizing, being closer to family, or to enjoy a warmer climate. But no matter what your motivation for moving, you may be wondering if renting or buying a home in is the smart choice. If you find yourself in a similar dilemma, ask yourself the following questions.

How stable is your income?

When you’re on a fixed income, it greatly helps to have fixed housing costs. That’s why taking out a mortgage might make sense for retirees. Having to worry about rising rent costs when you’re on a fixed budget can be stressful; owning your home means you have one flat payment every month that is also building equity for the future.

However, in some markets, renting may be a good financial decision. The overall cost of renting may be cheaper than buying—when you leave equity out of the equation.

It’s also much cheaper to move from one rental property to another than it is to sell a house because you don’t have to worry about closing costs, homeowners insurance, a large down payment, etc.

Can you afford routine maintenance?

One major concern for retirees to consider is the upkeep and maintenance that inevitably comes with owning a home. Cutting the grass, painting, and other home maintenance tasks are a hassle for anyone, but even moreso for retirees. Of course, these projects can be outsourced, but that costs money. And major home repairs—like a new roof, plumbing, or HVAC—can run to several thousands of dollars.

Do you qualify for a mortgage?

If you decide to downsize your home or move to another location, you may need to obtain a mortgage on your new home. Before 2008, it seemed like you could get by with a large down payment and good credit history to obtain financing. Today, one of the more important factors is income, so the money you might be receiving from Social Security or your pension must be sufficient to qualify you for the mortgage on the property you want to acquire.

Generally speaking, it makes sense to search for older things rather than their newer counterparts when you want to save money. This doesn’t, however, always hold true when it comes to buying a home. Here are several factors that may lead to older homes costing more than new construction:

Energy Efficiency

One of the great things about buying a new home is that everything inside is new. This generally means that most of the appliances and systems were built in the last few years, which in turn means that they tend to be more energy-efficient. On top of better appliances, newer homes feature the latest in design for insulation, from the framework to the material used in building. This means that, over time, the cost of owning new construction can actually be substantially less than the cost of owning an older home.

Perks Specific to Older Homes

Sometimes buying an older home can also cost more simply because it has perks that aren’t available in new homes. Classic architecture, antique fireplaces or period-specific additions can command a great deal of money, and they’re simply not features that you get in a newer home. Buyers who want these features are willing to pay a premium, which drives up the price of homes that have those touches. As such, new construction may be much cheaper in comparison.

Maintenance Costs

Older homes cost more to take care of than newer homes, if only because time tends to be unkind to any building. In the short term, at least, it’s also more likely that a homeowner would have to replace big-ticket items in an older home than in a newer home. New construction homes may cost more upfront, but the actual cost of living in an older home will generally be quite a bit more.

Property Value

In many cases, the true cost of a home comes down not to the style of the house or what perks it offers, but rather the value of the property on which it sits. New construction can often be less expensive simply because the area in which it was built hasn’t had time to gain the same sort of social cache as older construction. An older home in a well-established neighborhood is almost always going to cost more than new construction in a less desirable area.

Old homes aren’t always cheaper than their newer counterparts. Even when new construction costs more to buy, it can still cost less than living in an older home. As such, it’s always a good idea to look at both types of homes in Maui when you’re trying to find something that will fit your budget!

Article from Meghan Belnap

In today’s market, low inventory dominates the conversation in many areas of the country. It can often be frustrating to be a first-time homebuyer if you aren’t prepared. Here are some tips to help you get started with your Maui home search.

Get Pre-Approved for a Mortgage

One way to show you’re serious about buying your dream home in Maui is to get pre-qualified or pre-approved for a mortgage. Even if you’re in a market that is not as competitive, understanding your budget will give you the confidence of knowing whether or not your dream home is within your reach. This will help you avoid the disappointment of falling in love with a home well outside your price range.

‘Must-Haves’ vs. ‘Would-Like-To-Haves’

Do you really need that farmhouse sink in the kitchen to be happy with your home choice? Would a two-car garage be a convenience or a necessity? Before you start your search, list all the features of a home you would like. Qualify them as ‘must-haves’, ‘should-haves’, or ‘absolute-wish list’ items. This will help you stay focused on what’s most important.

Research and Choose a Neighborhood

Every neighborhood has unique charm. Before you commit to a home based solely on the house itself, take a test-drive of the area. Make sure it meets your needs for “amenities, commute, school district, etc. and then spend a weekend exploring before you commit.”

Pick a House Style and Stick to It

Evaluate your family’s needs and settle on a style of home that will best serve those needs. Just because you’ve narrowed your search to a zip code doesn’t mean you need to tour every listing in that vicinity. An example from the article says, “if you have several younger kids and don’t want your bedroom on a different level, steer clear of Cape Cod–style homes, which typically feature two or more bedrooms on the upper level and the master on the main.”

Document Your Home Visits

Once you start touring homes in Maui, the features of each individual home will start to blur together. The article suggests keeping your camera handy and making notes on the listing sheet to document what you love and don’t love about each property you visit.

In a high-paced, competitive environment, any advantage you can give yourself will help you on your path to buying your Maui dream home.

From realtor.com’s article, “How to Find Your Dream Home—Without Losing Your Mind.”

Schools are, of course, an influence on surrounding home prices. A good school district can increase buyer demand within its boundaries, which in turn increases home values. Homes located in high-scoring school districts attract more buyers, including parents who want their children to go to good schools and others who understand that a good school district helps protect a home’s resale value.

On the flip side, a struggling school district can experience less buyer demand, which restrains home values. In addition, a low-scoring public school can decrease the availability of amenities in the area and increase the proportion of renters to homeowners.

Home prices are generally not as impacted by nearby private schools, since attendance to private schools is not dependent on home location. That same theory can sometimes apply to public schools: Even if two elementary schools feed into the same high school, the more desirable elementary school could easily command higher home prices within its attendance boundary.

Prospective homebuyers should explore school districts’ websites and visit schools personally to meet with administrators when house-hunting with education in mind. They should also be aware of educational options offered by the district that are not dependent on property location, such as magnet programs and charter schools. For example, many lower-performing high schools and elementary schools receive additional financing and special support; the homes surrounding these schools may be priced lower than those in better districts nearby, yet still offer good educational opportunities.

Buyers can benefit by engaging a local REALTOR® for assistance. In addition to offering traditional services (facilitating showings, negotiating contracts, recommending lenders, following inspections, etc.), REALTORS® can serve as the expert “source of the source” when it comes to educating buyers about districts and schools. District and individual school websites are valuable resources, as are state departments of education. Even private publications and online entities uncovered by a simple Google search gather data and post reviews, and many offer rankings.

Source: Jeffrey Fagan, President for the Orlando Regional Realtor Association

Working with professional movers is a great option for people making big moves, moving with kids, or moving large or fragile items that would be otherwise impossible to transport. But while many moving companies do a great job of providing end-to-end service, there are some things that only you can do to make the whole process run smoothly. Here’s our list of six surprising things you’ll need to do before the movers arrive in order to avoid disaster.

1. Make a clear path

Whether you live in an urban apartment or a two-story house in the country, there are bound to be obstacles for your movers. By anticipating these issues before they happen, you can make everyone’s job easier, and possibly even save some money by taking up less of the movers’ time.

First, you should consider the parking situation outside your home. Where will the movers be able to leave their truck when packing up your stuff? If you do have that house in the country, this might not be an issue. But if you’re living in an apartment or urban area, chances are good that a huge double-parked truck won’t be taken very kindly by the neighbors.

“If you live in an apartment building or if there is limited parking in your area, ask the movers if they will handle the logistics or if you need to do so,” says Ali Wenzke, author of “The Art of Happy Moving.”

Some moving companies might be familiar with your neighborhood and know how to park in a way that doesn’t raise any red flags with the neighbors. But if they tell you they’d like your help with the logistics, then this will be on you to handle before they arrive.

“You may need to contact your building manager,” Wenzke says, “or the local city government to get the appropriate signage and allowances.”

There are other things to consider, too—like the state of your driveway.

Pat Byrne, operations manager of Long Island–based moving company Moving Ahead Moving & Storage, always asks clients to remove ice and snow to avoid any accidents during the move. You should also make sure the driveway and front access points are clear of debris—like kids’ or pet toys that might pose a slip hazard.

2. Make necessary reservations and get your paperwork together

Some apartment buildings might have service elevators available for use. This would be another time-saving question to ask your building manager in advance.

“See if service elevators can be reserved and whether the building needs any paperwork from movers—like a certificate of insurance,” says Byrne.

3. Protect your house, including your floors

To prevent damage to your house during the move, you should be aware of what furniture is going out the door, and anything fragile in its path that might be at risk of breaking.

“Lightbulbs, fixtures, pictures, mirrors, wall hangings should be removed from the main areas where furniture will be moved,” Byrne says.

And don’t forget about the hardwood floors. Nothing will put off a buyer more than seeing skid marks illustrating the path your sofa took out of the place.

“If you have hardwood floors or tile in any rooms, let your movers know ahead of time so they can prepare the right materials—and make sure your contract includes hardwood floor protection,” advises Miranda Benson, marketing coordinator at San Francisco–based moving company Dolly.

4. Measure!

On a related note, you’ll want to measure your furniture and make sure any large items will fit through the front door in the first place.

“Nothing is more heartbreaking than finding out the gorgeous sectional you spent hours assembling is not going to make it through your front door unless you spend more hours disassembling it,” Benson says.

5. Pack up the kids (and pets)

Not literally, of course. But you should take the time to consider where your family will be when the movers are at work. If paying for a space in the nearby pet hotel isn’t an option, at least consider keeping your pets in a safe space within your home.

“Pets should be kept in a room with everything they need that movers won’t need to access,” Byrne advises. “You’d want to do this even if your pet is friendly, to avoid [their] accidentally getting out of the house or injured.”

Similarly, young kids should also be kept out of the way on moving day. This is important for their safety as well as the safety of your moving team.

“The last thing you or your movers want to worry about is whether your 2-year-old’s scream is going to shock them at the wrong time,” Benson says.

6. Make yourself available

Once the family is out of the house, it’s time (drumroll, please) to sit down and relax—sort of. Find a central point in your home (that’s out of the movers’ way) and simply plan on making yourself available to them as they move your stuff.

Do we mean supervising their every move and reminding them the box is marked “fragile”? Probably not. But you should be around to help answer any questions, or alert movers to anything special they should know about your place.

“There are little things about your house that you only learn from living there: The hallway closet door never stays closed, the third step down has a slight bend, a pack of hornets tends to congregate around the back door, so use the front—these are all valuable things that make your movers’ lives easier,” Benson explains.

“On top of that, being available to answer questions, whether that’s in person or via phone, can make your move much smoother,” she adds.

This post appeared first on realtor.com®.

Whether you are a first-time buyer or looking to move up to the home of your dreams, now is a great time to purchase a home in Maui. Here are three major reasons to buy today.

1. Affordability

Many people focus solely on price when talking about home affordability. Since home prices have appreciated throughout the past year, they assume homes are less affordable. However, affordability is determined by three components:

• Price
• Wages
• Mortgage Interest Rate

Prices are up, but so are wages – and interest rates have recently dropped dramatically (see #2 below). As a result, the National Association of Realtors’ (NAR) latest Affordability Index report revealed that homes are MORE affordable throughout the country today than they were a year ago. “All four regions saw an increase in affordability from a year ago. The South had the biggest gain in affordability of 6.9%, followed by the West with a gain of 6.0%. The Midwest had an increase of 5.8%, followed by the Northeast with the smallest gain of 1.8%.”

2. Mortgage Interest Rates

Mortgage rates have dropped almost a full point after heading toward 5% last fall and early winter. Currently, they are below 4%. Additionally, Fannie Mae recently predicted the average rate for a 30-year fixed mortgage will be 3.7% in the second half of 2019. That compares to a 4.4% average rate in the first quarter and 4% in the second quarter.

With mortgage rates remaining near historic lows, Fannie Mae and others have increased their forecasts for housing appreciation for the rest of the year. If home price gains are about to re-accelerate, buying now rather than later makes financial sense.

3. Increase Family Wealth

Homeownership has always been recognized as a sensational way to build long-term family wealth. A new report by ATTOM Data Solutions reveals: “U.S. homeowners who sold in the second quarter of 2019 realized an average home price gain since purchase of $67,500, up from an average gain of $57,706 in Q1 2019 and up from an average gain of $60,100 in Q2 2018. The average home seller gain of $67,500 in Q2 2019 represented an average 33.9 percent return as a percentage of original purchase price.”

The longer you delay purchasing a home, the longer you are waiting to put the power of home equity to work for you.

With affordability increasing, mortgage rates decreasing, and home values about to re-accelerate, it may be time to talk with a real estate professional in Maui to determine if buying now makes sense for your family.

Fannie Mae’s Home Purchase Sentiment Index surged to a new high as consumers became more upbeat about buying and selling, mortgage rates, and their jobs. Five of the six components measured by the index rose month over month.

“Consumer job confidence and favorable mortgage rate expectations lifted the HPSI to a new survey high in July, despite ongoing housing supply and affordability challenges,” says Doug Duncan, Fannie Mae’s senior vice president and chief economist. “Consumers appear to have shaken off a winter slump in sentiment amid strong income gains. Therefore, sentiment is positioned to take advantage of any supply that comes to market, particularly in the affordable category. However, recent financial market events following when the survey data were collected could weigh on consumer views looking ahead.”

Overall, the HPSI, based on a survey of 1,000 Americans, rose 7.2 points compared to a year ago to a record-high reading of 93.7 in July. Here are some highlights from the index’s latest readings:

• Buying: The net share of Americans who said now is a good time to buy a home rose 3 percentage points from June to 26%, up 2 percentage points from a year ago.
• Selling: The net share of consumers who say it’s a good time to sell rose 1 percentage point to 44%, up 3 percentage points from a year ago.
• Home prices: The share of Americans who say home prices will go up over the next 12 months fell 1 percentage point to 37%, down 2 percentage points from a year ago.
• Mortgage rates: The share of consumers who believe mortgage rates will drop over the next year rose 1 percentage point and is up 24 percentage points from a year ago.
• Job stability: Americans are more confident about their job situation, with the share who say they’re not concerned about losing their job over the next year rising 8 percentage points to 81%. This is up 16 percentage points from a year ago.
• Household incomes: The share of Americans who say their household income is significantly higher than 12 months ago rose by 1 percentage point to 21%, essentially unchanged from a year ago.

Source: “Home Purchase Sentiment Index,” Fannie Mae (Aug. 7, 2019)