Category: General

In the Black community today, just one in every five households can afford to shift from renting to buying the median priced U.S. home. That’s according to the National Association of REALTORS®. NAR says Black homeownership is down over the past decade, and lagging behind that of other groups.

The trend will not reverse itself on its own. Why not? Because the real estate wealth gap between minority and non-minority residents is tied to a historically uneven playing board. It was tilted on purpose (more on that below). So, the industry needs to be just as purposeful in ensuring that the board becomes level.

Continue reading “Update on Black Real Estate Wealth Trends in 2023”

If you’re experienced in renovations and want a bargain, the “as-is” sale might be just what you’re seeking. Cash buyers, home flippers, and investment businesses look for discounted homes and quick purchases.  

But what about the ordinary buyer? What’s as-is, in a regular home purchase? And should you go for it?

Continue reading “The Reality of an “As-Is” Home Sale”

From the grocery checkout to the electric bill, prices have shot up. Same goes for real estate.

Most people in the United States simply don’t have the same ability to buy a home as the people of their parents’ and grandparents’ generations. And that’s changing the U.S. class system — according to real estate industry people themselves.

Property values surged 10% in 2020, and nearly another 19% in 2021. By 2022, Redfin’s chief economist was telling CBS that “the middle-class dream of homeownership” was “fading away,” and that owning a home is now a “signifier of the upper class.”

Continue reading “Homeownership: An Upper-Class Thing Now?”

Given the high price tags on existing homes today, some buyers are taking longer looks at cheaper, outdated homes. For the right buyer, purchasing a teardown can make financial sense. To buy an eyesore and put a new house in its place could be good for the neighborhood, too.

Some buyers might even be thinking of taking down an old building and placing multiple units on the property. These can be very rewarding projects.

But getting to the “reward” part is complicated. Here, we offer six steps as a basic planning checklist.

Continue reading “It’s Complicated: A Six-Step Plan to Buying a Teardown”

Moving out of your condo? Wondering if holding onto it and renting it out could be a better move than selling it?

You’ll find pros and cons to both options. Let’s explore a few of them.

Continue reading “Leaving My Condo: Should I Sell—Or Rent It Out?”

Since last year, we’ve seen a real estate reset. Now that analysts are getting used to this new market phase, how have expectations shifted? What’s ahead for this real estate roller coaster? A buyer’s market? A return to balance? Frustration or opportunity?

Thinking five years out could be a helpful exercise for those planning to buy or sell when the time is right.

Continue reading “2023-2028 in Real Estate: What Can We Expect?”

In 2018, United Wholesale Mortgage (UWM) decided it would offer an option to people who applied for mortgages backed by Freddie Mac or Fannie Mae. The borrowers could have escrow-free loans, at no extra charge. Even if their down payments were low. Even if they had so-so credit.  

Other industry professionals criticized the move. Wasn’t UWM allowing unnecessary risk by relying on these borrowers to take care of their own tax and insurance payments? Only a decade earlier, the industry was gripped by a foreclosure crisis, in part because lenders had issued risky loans without escrow accounts. But UWM did not consider that argument relevant. The company wanted to give its customers options.

Who was right? Should escrow be optional? If it is, should you take it or leave it? Let’s explore.

Continue reading “Does Your Mortgage Really Need an Escrow Account?”

Some home flippers are taking a step back from the real estate market. Predictions for 2023 point to a cluster of hurdles for anyone who’s renovating and selling:

• As mortgage interest rates went up in 2022, now there are fewer buyers who can qualify for home financing when a flipper is ready to sell.

• Flippers are dealing with rising borrowing costs when they purchase buildings and everything it takes to fix them.

• Workers are still hard to get, and certain critical materials are still lagging in supply-chain holdups.

• Resale values have shown signs of cooling since mid-2022, with home sales subdued for nine months running.

On account of these speed bumps, home flippers’ profits have plunged to a 3-year low.  

Continue reading “Home Flipping: It’s Not Getting Any Easier”

Looking at homes near undeveloped land? Found some real estate with a great view, and perfect privacy? Maybe too perfect, you think. Because it looks like a space developers would love, too. What if they build houses or apartments in that open space? What if you wake up in your newly bought home to the sound of road construction?

Or maybe there are other homes nearby, but everyone seems to be mellow, and everything’s in place. The calm is just what you’ve been looking for. Still, your mind wanders to a possible future in which everything changes. What if someone with noisy or noxious hobbies moved in next to you, spoiling the whole mood?

The reality of real estate is that the surroundings can change. This could impact your property value (for better or worse). It could unsettle the expectations you had when you bought the home. Here’s what you should know before deciding to sign the purchase contract.

Continue reading “Can I Stop Development (Or Other Nuisances) Near My New Home?”

Recently, Redfin has been sounding the alarm about a particular real estate trend. People are building in dry areas with high fire risk. This is happening in a decade that’s seen unprecedented losses to fire.

The Wildland Urban Interface (WUI) — where builders are active in and near natural lands — is now the fastest growing land-use type.

Many people are buying homes where climate-related risks are undeniable. Yet they might have no idea. Maybe they’re finding the combination of remote work and new listings as reason enough to head ever further into suburbia. In any case, tens of millions of new homes have popped up out there. Due diligence is imperative for any home buyer moving into these areas.

Continue reading “Up in Smoke? Know the Risks of Buying Real Estate in Wildfire Country”