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Insurance Claim Recommendations For Missourian’s With Storm Damage

The Missouri Department of Insurance issued some recommendations to Missourian’s that sustained property damage as a result of recent storms with regard to how to deal with the damage and handle insurance claims.

John M. Huff, the director of the Department of Insurance, said “Consumers who sustained property damage need to act now. Move quickly to protect your property from further damage and file claims with your insurance companies.”

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Below are the tips from the Missouri Department of Insurance: Continue reading Insurance Claim Recommendations For Missourian’s With Storm Damage

Bank and Government Owned Home Sales Down But Selling For Record Percentage of List Price

St Louis bank and government owned home sales are down as banks and government enterprises such as Fannie Mae, FHA, VA and Freddie Mac whittle down their inventory of foreclosed homes while, at the same time, new mortgage delinquencies and foreclosure rates continue to decline.  While this is good for the St Louis real estate market, it makes it tough on investors, as well as owner occupants, who are looking for a deal on a distressed sale, as the competition is growing fierce driving prices up and opportunities down.

St Louis Bank and Government owned home sales down over 30% from year ago:

As the charts below show, year to date, through the end of May, there have been a total of 1,598 bank or government owned homes sold in the St Louis 5-county core market (the city of St Louis and counties of St Louis, St Charles, Jefferson and Franklin), according to data available from MARIS, the REALTORS® MLS for the area, which is a decline of 31.4% from the same time a year ago when there were 2,100 bank and government owned home sales.

St Louis Distressed Home Sales Selling At Record Percentage of List Price:

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Continue reading Bank and Government Owned Home Sales Down But Selling For Record Percentage of List Price

St Louis Pending Home Sales At Highest Level In Years

St Louis pending home sales in May hit the highest level we have seen in years with 2,558 pending homes sales during the month in the 5-county core market*, an increase of 8.9% from May 2014 when there were 2,348 pending home sales.  Year to date this year, through the end of May, there have been 12,595 pending home sales, an increase of 7.8% from the same time last year.

St Louis Pending Home Sales – 5 County Core Market*

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St Louis Area Homes Are Affordable-Down payment Assistance Can Make Even More So

St Louis area homes are already affordable based upon the relationship between the median home price and median income for the area, but can become even more affordable when home buyers take advantage of down payment assistance programs that are available throughout the area.

Housing affordability is still good in spite of rising prices-

Data for April, from RealtyTrac, shows house payments on a median priced home in St Louis County required 23% of median income and in St Charles County required just 21% of median income while the national average was 23%.  Even with the hot market we have been in, and rising home prices in St Louis, affordability for April in both St Louis County and St Charles County were still lower than their historic norms of 24% and 22% respectively.

Downpayment assistance programs make homes even more affordable –

There are several (over 50) down payment assistance programs in Missouri with many of them available in the St Louis area.  To see a complete list of downpayment assistance programs available, along with complete program information, visit Downpayment Assistance Programs For Missouri.  To give you an idea of the type of assistance that is available, below is some data from buyers that received down payment assistance in the St Louis area in April 2015:

  • In St Louis County the average down payment help benefit received was $6,125.00 which represented 3.53% of the median sales price.
  • In St Charles County the average down payment help benefit received was $5,000.00 which represented 2.5% of the median sales price.
  • There are 24 down payment help programs available to people buying homes in St Louis County and 16 programs averrable to people buying in St Charles County.

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Complete Information On Over 50 Down Payment Assistance Programs Available In Missouri

How To Buy A Home In A Hot Market Like This One

It wasn’t that long ago that sellers were practically begging buyers to purchase their home but that is not the case today.  Today, in some very sought after St Louis neighborhoods the inventory of homes is so low and demand so high that when a new listing hits the market it’s like a feeding frenzy for buyers.  This has led to frustration and disappointment for many buyers leading some to become a little too overanxious and buy a home that really is not right for them or overpay for one out of fear of “missing out”.

So, how do you get your offer accepted on the home you want?

While there is no fool-proof or guaranteed method, my 35 years experience in the business, including being the principal in the purchase of more than 2,000 properties, as well as having an excellent recent track record of my buyer and investor clients getting contracts accepted and beating out the competition, has helped me develop some methods that I know work and will stack the deck in your favor.  While not all my suggestions are right for every situation, and a plan must be custom tailored to the specific buyer and transaction, here is a list of things that have worked when right for the given situation and client:

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St Louis Home Sales Are Up But Amount of Increase Varies Widely By Area

Further proof of just how “local” real estate is and how important it is for home buyers and sellers to have accurate, targeted, local data is the fact that today the St Louis Business Journal reported “home sales increased 17.9 percent year to date in the St. Louis metropolitan area, more than twice the national rate of 8.4 percent”.  While I’m not saying their reporting is inaccurate, as they were quoting data from the St Louis Federal Reserve, the problem is the data is based upon sales for the whole St Louis MSA which is comprised of 17 counties with 8 of them in Illinois as well as the fact the data does not come from what is probably the best and most accurate source of data, the REALTOR MLS.

However, many home buyers and sellers just see or hear the headlines from the media which could negatively impact you if you think the market you are buying or selling in is in fact stronger or weaker than you think.  For example, based upon the headline, if you were looking to buy a home in the City of St Louis you would probably find some comfort knowing you are buying somewhere where the housing market is so hot home sales have increased more than double the national average year to date from last year.  The reality is though, while home sales in the city of St Louis are doing better so far this year than last year, as the table below shows, this year there have been 1,385 homes sold, an increase of 7.7% from last year when there were 1,286 homes sold during the same period.  Don’t get me wrong, an increase of 7.7% is good however, it is actually below the national average of 8.4% and certainly not double the national average as the headlines and MSA data may make you think.

So what’s the answer?  Call me and I’ll make sure you get the accurate information you need for your particular situation and can also connect you with one of our professional, hand-picked agents that can help you put the data and information to work in your best interest whether buying or selling.  Seriously, don’t you think you deserve this for what may be the biggest financial transaction you make?  Call or text me at 314.332.1012 or email me at Dennis@STLRE.com.

Oh yeah, and check out all the tables below for accurate sales data for the REAL St Louis market as well as the individual counties.

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Continue reading St Louis Home Sales Are Up But Amount of Increase Varies Widely By Area

Just How Fast Are Homes Selling In St Louis?

We have been in the midst of a pretty crazy real estate market lately in St Louis with new listings in many areas and price ranges being subjected to a “feeding frenzy” by buyers.  It is not uncommon at all today to have two or three showings taking place on a new listing at the same time with the total of first day showings easily getting into double digits and a signed contract before the end of the 2nd day on the market. Naturally, not all homes in all areas and price ranges are selling this quickly but enough are to seriously be impacting the market.

So, just how fast are homes selling?

As the charts below show, the median days on the market (the number of days homes are listed before selling) for homes in the St Louis area has dropped dramatically over the past few years.  Currently, as of May, below are the median days on market for homes in several St Louis area counties as well as the change from a year ago:

  • City of St Louis – 22 days – down 54%
  • St Louis County – 12 daysdown 71%
  • St Charles County – 18 days – down 60%
  • Jefferson County – 28 days – down 57%
  • Franklin County – 80 days – down 32%

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Continue reading Just How Fast Are Homes Selling In St Louis?

Where In St Louis Are Homes Selling The Quickest?

The St Louis real estate market continues to be on fire in many areas with buyers flocking to new listings like St Louisan’s to a Cardinals versus Cubs game!  In some areas and price ranges it is not uncommon to have new listings receive 5 – 10 showings the first day and to sell within the first day or two and be sold before the ink is barely dry on the listing agreement.

 

St Louis’ Fastest Selling Neighborhood’s Are Selling 35% Faster Than Last Month!

Last month around this time I wrote a similar article with a list of the fastest selling neighborhoods in St Louis and Ballwin was in the #1 spot with a median of 34 days on market for the homes there.  This month, as the table below shows, Grover is at the top of the list with a median time on market for listings of just 22 days!

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Continue reading Where In St Louis Are Homes Selling The Quickest?

St Louis Foreclosure Activity Trends Downward In Most Areas But Franklin County Spikes Upward

St Louis foreclosure activity in May 2015 continued the downward trend with a drop of almost 9 percent from the month before for the St Louis MSA as a whole, according to data just released this morning by RealtyTrac.  As the table below shows, foreclosure activity in May was up over 55% from May 2014, however, when we look at the 12 month rolling average, which gives a better indication of the trend (blue area in table) we see that for the 12 month period ended in May foreclosure activity is down over 13% from the same time a year ago.

Franklin County is the exception to the good news…

Franklin county, on the other hand, saw a big jump in foreclosure activity during May with action on 29 properties during the month, a decline from the month before, but a whopping 625% increase from a year ago.  The twelve month rolling average for Franklin County shows May 2015 was up 219% from May 2014.  In spite of this huge increase in foreclosure activity, Franklin County still has one of the lower foreclosure rates in the St Louis, MO area, in terms of number of foreclosures per total housing units, with just 1 foreclosure action for every 1,498 housing units.

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Continue reading St Louis Foreclosure Activity Trends Downward In Most Areas But Franklin County Spikes Upward

Over Two Million Boomerang Buyers May Buy Homes Over Next Five Years

Over two million (2.2 million) boomerang buyers may re-enter the housing market as home buyers over the next five years as their credit recovers to the point where they can obtain a home mortgage again, according to a study just released by Trans Union.  According to the study, 700,000 of those buyers will be eligible for mortgages this year alone.  Boomerang buyers are described as homeowners who lost their home in foreclosure, did a short sale, deed in lieu or had some other serious negative credit action with regard to their home mortgage, such as becoming 60 days or more delinquent.

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Boomerang Buyers

Source: TransUnion

New Home Construction In Midwest Slips In May After Spike in April

New Home Construction in the Midwest declined to a seasonally adjusted annual rate of return of 104,000 homes in May after hitting a rate of 123,000 homes in April.  April’s increase in activity brought the rate of new home construction to 23% above a year ago, but in May the rate fell to a point 1% below the same time last year, according to newly released date from the U.S. Commerce Department and U.S. Census Bureau.

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Building Permits Issued In St Louis MSA for Single-Family Homes

St Louis MSA New Home Building Permits Chart

Source: Federal Reserve – St Louis

Jefferson County Has Highest Rate of Foreclosures In Area

During the 2nd quarter of this year, there was foreclosure activity on one out of every 887 housing units in Jefferson County, giving it the highest foreclosure rate of the main counties making up the St Louis real estate market, according to a report just released by RealtyTrac.  St Charles County, with foreclosure activity on just 1 of every 1,620 housing units, had the lowest foreclosure rate for 2nd quarter of 2015.

From a housing density standpoint, St Charles County was number one with 2.56 people per housing unit and the City of St Louis had the least density with just 1.82 people per every housing unit.

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St Louis Foreclosure Activity 2nd Quarter 2015 - St Charles County Foreclosure Rate

St Louis Makes List Of Top Ten Metros In U.S. For Rate Of Zombies

That’s right, Zombies are very real and very present in St Louis…at least Zombie foreclosures that is!  That’s right.  According to a foreclosure zombie report just released this morning by RealtyTrac, St Louis made the list of “Top 10 Zombie Foreclosure Rates Among Major Markets”, coming in at number 6 on the list with 1 of every 1,627 housing units being a zombie foreclosure.  In the number 1 spot on the list was Tampa Florida where 1 of every 217 housing units is a zombie foreclosure (the complete list, and infographic, is below).

What is a Zombie Foreclosure?

Yet another new term that is common place in the real estate community now, but was not 10 years ago, is “Zombie Foreclosure”.  This term has been applied to homes whereby the homeowner is in default on their mortgage and headed to foreclosure but vacates the home prior to actually losing it in foreclosure.  This often results in the property becoming blighted while going through the process, and until the bank obtains ownership of the home, as no one is there taking care of it and the owner has given up.  Zombies are not good for neighborhoods nor home values of the surrounding homes.

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Continue reading St Louis Makes List Of Top Ten Metros In U.S. For Rate Of Zombies

St Louis County Cities With Highest Home Prices

What cities in St Louis County have the highest home prices?  Well, based upon homes that are either currently for sale or sold within the past year, the top 3 spots on both lists (current market or past 12 months0 are occupied by the St Louis County cities of Huntleigh, Country Life Acres and Ladue.

Average Sold Prices Are Lower Than Current List Price Average

When comparing the list of highest priced cities based upon the prices homes sold at in the prior 12 month period versus the prices current homes are listed at, the average current list prices are higher in many of the cities at the top of the list.  For example:

  • Country Life Acres sold price $ 1,324,481 current average list price is $ 1,847,000
  • Huntleigh sold price $ 1,245,625 current average list price is $ 3,248,857
  • Ladue sold price $ 912,183 current average list price is $1,497,819
  • Clayton sold price $ 874,840 current average list price is $ 1,377,771
  • Kirkwood sold price $ 317,701 current average list price is $ 426,314

See the tables below for more cities.

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Continue reading St Louis County Cities With Highest Home Prices

Got Gas?

Yes, I’m referring to CO Gas, more commonly known as Carbon Monoxide, of course!

Carbon monoxide (CO) is a silent killer! There are many reasons why you should have a fully functional Carbon monoxide (CO) detector in your house at all times!

First we need to understand the facts!

  • Carbon Monoxide is deadly! It is an odorless, colorless and poisonous gas.
  • Carbon Monoxide is produced by the incomplete burning of various fuels such as; coal, wood, charcoal, oil propane and natural gas. Simple things that may be found in a home!
  • On average, about 170 people in the United States die each year from the Carbon Monoxide produced by non-automotive consumer products.
  • Carbon Monoxide replaces oxygen in the blood stream, so you can die from a high concentration in a short period of time.

What are the symptoms?

This short Video on Carbon Monoxide Will Show You How To Protect Yourself & Your Family
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  Continue reading Got Gas?

Do Conventional Buyers Get Better Deals Than FHA Buyers?

The other day I had a client, who was planning on using FHA financing, as me if I thought she would be able to negotiate as good of a deal as if she was obtaining a conventional loan.  The concern was that, as an FHA buyer, would she be perceived as a weaker buyer in the seller’s eyes since FHA’s credit and income guidelines are not as stringent as Fannie Mae, and FHA requires a smaller downpayment as well.

This prompted me to do some research to see if I could determine if there was any merit tot he concern that a buyer going FHA may not be able to negotiate as good of a deal as a buyer putting more money down and going conventional.  To determine this, I looked at homes sold in St Louis County during the month of May with financing terms reported to the MLS and then looked at the percentage of the list price that FHA buyers paid versus the percentage of list price conventional buyers paid and here are my findings:


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  Continue reading Do Conventional Buyers Get Better Deals Than FHA Buyers?

Missouri Ranks 30th In The Nation On Public School Spending Per Pupil

The State of Missouri spends $9,597 per pupil on public schools and is ranked 30th in the nation in terms of spending per pupil, according to data just released by the U.S. Census Bureau.  The median amount spent per pupil across the nation is $10,700 and New York is the state with the highest spending at $19,818 per pupil.  Utah, with spending of just $6,555 per pupil for schools, came in last on the list in terms of spending.

Missouri’s Administrative Costs For Education Much Higher Than Average:

Just a little over nine percent (9.1%) of Missouri’s public school expenditures are for administrative expenses as opposed to instruction or support services, which is 23% higher than the average of 7.38% nation-wide.  While all the states in the nation managed to keep their administrative costs to single digits, the District of Columbia was not and, in fact, at 19.03% was over two and a half times the national average.  Interestingly enough, New York, the state with the highest per pupil spending, had the lowest rate of administrative costs.

See all the details for Missouri as well as all 50 states, plus the District of Columbia, here.


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Characteristics Of New Homes Built In 2014

There were 437,000 new homes sold (single-family) in the U.S. last year, down from a peak of 1,283,000 in 2005.  Roughly ten percent of the single-family homes sold were attached homes (44,000) and the remaining ninety-percent (393,000) were detached homes, according to data just released by the U.S. Census Bureau.

Facts and Figures For New Homes Sold In The Midwest During 2014:

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Pending Home Sales In April Hit Highest Level In Nine Years

The pending home sales index, published by the National Association of REALTORS® ,based upon the number of homes that went under contract but have not yet closed yet, hit 112.4 in April, a 3.4% increase from March and a 14% increase from a year ago marking the largest annual increase in almost 3 years (since September 2012) and the highest level for the index since hitting 112.5 in May 2006 during the height of the boom.

St Louis Pending Home Sales On The Rise Too!


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Continue reading Pending Home Sales In April Hit Highest Level In Nine Years

City of St Louis Makes Top Spot on National List of Top Buyer’s Markets

The city of St Louis came in at the top of list of RealtyTrac’s “Top Buyer’s Markets“, just released this morning.  For the report, RealtyTrac analyzed average sales prices and estimated market values at time of sale for homes and condos sold in April in 315 U.S. counties to come up with a list of the Top Seller’s Markets and the Top Buyer’s Markets.  For the city of St Louis, the analysis revealed, as the chart below illustrates, that in April 2015, homes sold for 77% of the current estimated value and, in Baltimore, which took the 2nd place spot, homes sold for 78% of value.  Number one on the list of top sellers markets was Alameda, California and San Francisco, California tied for the top spot with homes selling for 108% of the estimated value.  Cities in California occupied six of the 10 slots on the top 10 seller’s market list.

St Louis’ Top Sellers Markets and Top Buyers Markets…


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New Home Sales in Midwest During April Increase 20 Percent From Year Ago

New home sales here in the midwest region of the U.S. occurred in April at an adjusted annual rate of 78,000 homes, an increase of 36.8 percent from the month before when new home sales activity was at the rate of 57,000 homes per year and an increase of 20 percent from April 2014 when new homes were selling at the rate of 65,000 homes a year, according to data just released by the U.S. Census Bureau and HUD.

New home inventory is down…

According to the report, in April 2015, there was a 4.8 month supply of new homes for sale in the U.S., a decline of 5.9% from the month before and a decline of 14.3% from a year ago when there was a 5.6 month supply.

New home sales prices increased over 8%…

The median price of new homes sold in the U.S. during April 2015 was $297,300, an increase of 8.3% from a year ago when the median price was $274,500.

 

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St Louis Foreclosures Rise In April However Trend Is Down Almost 40 Percent

St Louis foreclosures increased in April from the month before in the St Louis area counties of St Charles, Jefferson and Franklin, were fairly level in St Louis County and declined almost 12 percent in the city of St Louis.  For the 5 counties that make up the core of the St Louis real estate market, the median increase in foreclosure activity in April 2015 from the month before was, as the table below shows, 10.68%, and, compared with foreclosure activity from April 2014, the median increase in foreclosure activity was almost 30 percent, according to data released this morning by RealtyTrac.

However, it is not uncommon to have monthly spikes or dips, so it is better to look at a 12 month rolling average to see what the overall trend is.  As the table shows, when we look at the 12 month rolling average for St Louis foreclosure activity, we see that there was only a slight increase in April 2015 from the month before and nearly a 40 percent decline from a year ago.  It’s only been recently that RealtyTrac began publishing the rolling 12 month data but I think it has really helped see what the real trends are with regard to foreclosures.

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Continue reading St Louis Foreclosures Rise In April However Trend Is Down Almost 40 Percent

New Home Construction In Midwest Surges in April

New Home Construction in the Midwest really heated up during the month of may with construction beginning during the month on new single-family homes a the annual rate of 126,000 homes, an increase of 43.2% from March and an increase of 15.6% from April 2014, according to newly released date from the U.S. Commerce Department and U.S. Census Bureau.  During the month of April, new homes were completed at the annual rate of 128,000 homes, an increase of 50.6% from March and an increase of 28.0% from a year ago.  Building permits issued for new homes did not keep pace with new construction and were issued at the annual rate of 100,000 homes which is still an increase of 1% from the month before and an increase of 5.3% from April 2014.

National Association of Home Builders Chairman, Tom Woods, a builder from right here in Missouri (Blue Springs) said “Our builders tell us that consumers are slowly returning to the market” and added, “This month’s report shows release of pent-up demand and evidence of a sustainable housing recovery.”

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Mortgage Delinquency Rates Drop To Pre-Bubble Level

The mortgage delinquency rate (home owners that are 60 days or more delinquent on mortgage payment) dropped to 2.95 percent in the first quarter of 2015, marking the first time the mortgage delinquency rate has been below 3 percent since the 3rd quarter of 2007 when the rate was 2.61 percent, according to a report released this morning by TransUnion.  This is also the 13th consecutive quarter the mortgage delinquency rate has declined from the prior quarter.

Subprime delinquency rate is over 9 times higher…

The report also shows that the mortgage delinquency rate for subprime borrowers fell in the first quart of this year as well, down to 27.23 percent from 29.76 percent during the prior quarter.  Even with the improvement, the mortgage delinquency rate for subprime borrowers is still over 9 times greater than for borrowers overall.  This is a great improvement from the peak however, in the first quarter of 2010, when the rate was 40.48 percent for subprime borrowers.


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Continue reading Mortgage Delinquency Rates Drop To Pre-Bubble Level

Home Price Appreciation Expected To Be At Historically Normal Rate Over Next Few Years

Pulsenomics just released the results of it’s most recent Home Price Expectations Survey in which over 100 housing experts were questioned about their expectations for the housing market in the coming years.  The report revealed that, overall, the panel predicts home prices from now through 2019 to increase at an annual rate of 3.6% which just so happens to be consistent with the overall historical performance of the market.

The charts below show more detail as well as historical pricing information and the variances in predictions between the optimistic panelists and the pessimistic panelists.


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Continue reading Home Price Appreciation Expected To Be At Historically Normal Rate Over Next Few Years

St Louis Cash Home Sales Account For Just Under 1 In 4 Sales In April

Cash home sales accounted for just under 1 of every 4 (23%) home sales in St Louis during the month of April 2015, a slight decline from a year ago when cash home sales were responsible for 25% of the total home sales.  As the table below shows, the percentage of cash home sales has been fairly consistent the past 12 months, peaking in January of this year when cash sales made up 30% of the St Louis home sales.  The average sales price for cash transactions has been about two-thirds of the average sales price of non-cash sales.


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Continue reading St Louis Cash Home Sales Account For Just Under 1 In 4 Sales In April

Home Mortgages During First Quarter of 2015 Up Seventeen Percent From Year Ago

A definite confirmation of an improving real estate market is the fact that, according to a report just released by RealtyTrac, loan originations, for the purchase of a home, during the first quarter of 2015 increased 17 percent from a year ago.  Additionally, Kansas City, Missouri saw the 4th largest increase from a year ago, of major metro areas, with a 32 percent increase in home loans.  St Louis made the top 20 list for year or year increases with a 13 percent increase.


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Student Loans May Not Be Impacting Home Ownership For Millennials As Much As Some Say

There have been many recent articles and reports about  the millennial generation and why they are not buying homes at the same rate as earlier generations did at their age.  Many point to the burden of student loan debt as a cause of their inability to qualify for a mortgage thereby holding the millennials back from buying a home.  However, a new study by TransUnion  suggests this may not be the case.

The study by TransUnion, which looked at people with student loans and their participation in various types of loans, both at the beginning of their student loan repayment period and two years later as well, for a period beginning in 2005 and then again in 2012 and then compared these rates to a “control group” which consisted of people without student loans.  As the table below shows, participation rates for home mortgages, credit cards and auto loans all dropped significantly between the 2005-2007 and 2012-2014 timeframes for both groups,  the people with, and without student loans.  The report suggests that, for both starting periods (2005 and 2012) the fact that the student loan group had lower participation rates in credit was related to them just completing school and having little or no income. This theory appears to be supported by the fact that when you look at the two year period following, the “student loan borrowers were actually more credit active” in obtaining auto loans than their counterparts and the rate of new home mortgage originations during the next two year period were nearly identical between the student loan and control groups for periods looked at.

 

Student loan borrowers may be better credit risks…

The results from the TransUnion study also showed that consumers in the age group of 18-29 (typical age for consumers with student loans) that have a student loan in repayment “generally had better performance on new accounts than their peers without student loans.”

 

Millennials with student loans should be viewed as an opportunity for lenders…

The report concludes saying their findings are important “because it shows lenders that rather than being concerned about student loan borrowers’ ability to manage new credit, this may actually be an attractive marketable group, both in terms of higher credit demand as well as potentially better repayment performance,”

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St Louis’s Fastest Selling Neighborhoods

There is no doubt the St Louis real estate market has been HOT thus far this spring and homes are selling well.   Personally, four, of the last five listings I’ve taken, sold within the first day of hitting the MLS.   Granted, there is a lot that goes into this in terms of pricing, marketing strategy etc., but even with everything done perfectly we weren’t seeing results like this last year.

As you have heard me say many times though, real estate is very local and not all markets perform the same.  There may be drastically different results between two neighboring areas or even between two price ranges within the same neighborhood, which is why good, accurate local market data with an “apples to apples” comparison is more important than ever today.  With this in mind below is my list of St Louis’s fastest selling neighborhoods based upon the average days on market of the homes for sale in those neighborhoods as of today.

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Baltimore Tops List Of Metros For Highest Returns From Flipping Homes

Flipping homes accounts for a smaller percentage of home sales today at about 4 percent of total home sales in the U.S., then in the recent past when they accounted for 6 percent of more of the homes being sold (6.8% at the recent peak in 1st quarter 2012), according to a report released today by RealtyTrac.

According to RealtyTrac, Baltimore Maryland is the best place to flip homes based upon the gross profit margin calculated as a return on investment (ROI) coming with a 94.1% ROI!  Before you get too excited, don’t think that is what the investor walked away with, the gross margin is just based upon the difference between the purchase price and sale price and does not take into account any expenses for remodeling, resale, etc.  As the table below shows, the next 4 out of 5 cities at the top of the list can all be found in Florida.

Memphis Tennessee is the metro area with the highest percentage of flips with home flipping accounting for over 10 percent (10.6%) of all the home sales. The table at the bottom lists the 20 markets with the highest percentage of flipping.

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