The Kartite Hotel and Indoor Waterpark will open in 2019. Here is a brief update. Find more news and information here. Coupling the casino, golf course, and waterpark brings Sullivan County, NY Hospitality to a new level.
It’s been two months, and the casino is settling in. The anticipation, and now reality, of having a full scale gambling and extended entertainment venue in Sullivan County, NY is beginning to take shape along many fronts. Read the extended article and listen to the podcast for a fuller understanding of the what Resorts World Catskills is doing and how it is effecting the local economy and infrastructure.
First-time homebuyers are in for it this spring, with an all but depleted inventory at their price point, according to the Q1 2018 Inventory and Price Watch from Trulia. Their challenges, however, are more than scarcity.
“First-time homebuyers face a perfect storm this spring,” says Cheryl Young, senior economist at Trulia. “Affordable, move-in ready starter homes have become harder to find amid rising home prices and mortgage rates. While new-home construction hit a 10-year high in 2017, these units have not translated into starter-home inventory just yet.”
Entry-level home prices have risen 9.6 percent since the first quarter of 2017, according to Trulia, and inventory in the segment shrunk 14.2 percent just in the first quarter of 2018. The average buyer would need 41.2 percent of their income to purchase a starter today.
“Builders are focusing on the more upper-middle or premium home segments—mostly because of returns on investments,” Young says. “Though builder sentiment is quite high, they have some headwinds around a shortage of labor. The focus now is trying to maximize their return, and, unfortunately, it’s not at the bottom of the market.”
In general, inventory has risen 3.3 percent, but is being driven mostly by the premium segment, which added 13.3 percent supply year-over-year. Breaking down the data:
In addition to affordability constraints, the condition of entry-level homes is fading. Compared to entry-level homes in 2012, the average entry-level home is nine years older, and more are becoming classified as fixers—an 11.2 percent share today, versus a 10.3 percent share in 2012. Moreover, entry-level homes have 2 percent less square feet (down to 1,187 square feet from 1,211 square feet). Why?
“What’s actually out there is getting tighter, and what may have been on the cusp of the starter/trade-up is now trade-up—everything is starting to spread,” says Young. “What’s filtering down in the starter home market now is the smallest, oldest, lower-quality homes.”
For more information, please visit www.trulia.com.
Across All Buyers, Millennials Have the Most Purchases
The generation impressing on the market most today? Millennials, according to the 2018 Home Buyer and Seller Generational Trends study, recently released by the National Association of REALTORS® (NAR). Millennials are accounting for 36 percent of purchases, ahead of baby boomers at 32 percent, Generation Xers at 26 percent, and the Silent Generation at 6 percent.
“REALTORS® throughout the country have noticed both the notable upturn in buyer interest from young adults over the past year, as well as mounting frustration once they begin actively searching for a home to buy,” says Lawrence Yun, chief economist at NAR, of the study. “Prices keep rising for the limited number of listings on the market they can afford, which is creating stark competition, speedy price growth and the need to save more in order to buy. These challenging market conditions have caused—and will continue to cause—many aspiring millennial buyers to continue renting unless more Gen Xers decide to sell, and entry-level home construction picks up significantly.”
Millennials are buying homes with higher values, but the same square footage: $220,000 for 1,800 square feet, versus last year’s $205,000 for the same size, reveals the study. They are close to family and friends, as well, and prefer to reside near them—an attribute in common with other generations.
“The sense of community and wanting friends and family nearby is a major factor for many homebuyers of all ages,” Yun says. “Similar to Gen X buyers who have their parents living at home, millennial buyers with kids may seek the convenience of having family nearby to help raise their family.”
Additionally, 52 percent of the millennials in the study have at least one child—an indicator of the likelihood of a move—and another 52 percent purchased in the suburbs. Eighty-five percent purchased a single-family; just 2 percent went with a condominium.
“While there is an overall trend among households young and old to migrate towards urban areas, the very low production of new condos means there are few affordable options for buyers, especially millennials,” says Yun.
All generations enlisted a real estate professional for their transaction, according to the study. Ninety percent of millennials are most likely to purchase through a REALTOR®, with 75 percent believing they can educate them about the process. Ninety percent of millennials are most likely to list with a REALTOR®, as well, and at least 84 percent of every other generation partnered with a REALTOR®.
“Especially in today’s fast-moving housing market, consumers of all ages want a REALTOR® to guide them through the exhilarating, yet nerve-wracking experience of buying or selling a home,” says NAR President Elizabeth Mendenhall.
For more information, please visit www.nar.realtor.
The Chapin Estate and Bethel Town officials are considering plans for the development of a 50-100 million dollar resort destination. Proposed details.
January’s pending home sales caved, dropping 4.7 percent in the National Association of REALTORS® (NAR) Pending Home Sales Index (PHSI). All four of the major regions in the U.S. experienced fewer sales, with the Northeast 9 percent lower, the Midwest 6.6 percent lower, the South 3.9 percent lower, and the West 1.2 percent lower.
According to Lawrence Yun, chief economist at NAR, January’s activity is attributable to mortgage rates and supply, which have created conditions that are stifling transactions.
“The economy is in great shape, most local job markets are very strong and incomes are slowly rising, but there’s little doubt last month’s retreat in contract signings occurred because of woefully low supply levels and the sudden increase in mortgage rates,” says Yun. “The lower end of the market continues to feel the brunt of these supply and affordability impediments. With the cost of buying a home getting more expensive and not enough inventory, some prospective buyers are either waiting until listings increase come spring or now having to delay their search entirely to save up for a larger down payment.”
Inventory in January was 9.5 percent lower than what it was in January 2017; mortgage rates have shot up simultaneously. As of February 22, the average, 30-year, fixed mortgage was 4.40 percent—and it could increase to 4.75 percent over the next year, forecasters speculate.
NAR’s REALTORS® Confidence Index, however, indicates there is traction, even with January’s figures sliding.
“Even though contract signings were down, REALTORS® indicated that buyer traffic in most areas was up January compared to a year ago,” Yun says. “The exception was likely in the Northeast, where the frigid cold snap the first two weeks of the month may have contributed some to the region’s large decline.”
There are other positives, says Yun.
“As new multi-family supply catches up with demand and slows rents, some large investors may begin putting their holdings of affordable single-family homes up for sale, which would be great news, particularly for first-time buyers,” Yun says. “Furthermore, sellers last year typically stayed in their home for 10 years before selling (an all-time high); although higher mortgage rates will likely discourage some homeowners from wanting a new home with a higher rate, there are possibly many pent-up sellers who may look to finally trade-up or move down this year.”
For more information, please visit www.nar.realtor.
For 2017, home sales in Sullivan County NY increased by 2.2 percent with end of year total accounting for 590 home purchases. Median prices rose from $128,000 to $135,000 accounting for a 5.5 % increase from 2016 levels. Medium pricing is defined by 50 percent of homes sold fall above $135,000 with the remaining 50% falling below that number. (See Local Realtors: Pace of home sales largely returning to prerecession levels)
Local Sullivan County brokers anticipate stronger sales for 2018 with many more showings occurring in the usually slower winter months. The “Casino Effect” has shaped the Monticello, NY market to some extent by creating excitement and new motivation for home buyers to consider buying while commercial investors continue to eye the area to determine long term investment potential.
Overall, realtors® are optimistic 2018 will continue the upward trend with m.)ore buyers and somewhat higher pricing due to stronger demand. The rental market is being driven by the new casino housing demands while other businesses continue to expand job opportunity creating a better return on investment for rental property.
Orange County, NY Real Estate Sales Update:
SINGLE FAMILY HOMES
Sales registered a 9.6 % sales boost year over year. The Hudson Gateway Association of Realtors provided the statistic and noted this figure reflected the highest total of homes sold since 2007. Median home price (term indicates fifty percent of sales were above with 50 percent below) was $243,250 for 2017 which reflects a 6.2 jump in the median price from 2016.
Current for sale Single Family Home Inventory is marked at less than 6 months demonstrating a sound market tending to support the notion Orange County, NY has moved into a Seller’s Market. My personal work with buying clients supports that bidding wars are frequent, buyers often don’t get into their first choice home, and cash buyers are swooping in and out bidding first time home buyers.
Foreclosures and short sales remain plentiful, but even these properties receive quick offers and usually require at or above retail market prices in order to secure an accepted offer. Although pricing for these types of property are tempting, be prepared for a significant roller coaster ride as you bounce along the foreclosure or short sale track. If you don’t know the difference between a short sale and foreclosure, you probably should stay away from this portion of the real estate market place. Feel free to contact me for an explanation and short primer on the best way to acquire foreclosures or short sale properties.
Attribution– Report is based on this article from the Times Herald Record.
Buying a home is a mark of the American Dream—but even though the desire exists, realizing it is a struggle, according to the Aspiring Home Buyers Profile recently released by the National Association of REALTORS® (NAR).
Homebuyers are hopeful, however. Demand is ever-increasing, and, of aspiring homeowners, the majority do want to own. In 2017, approximately one-quarter (and as much as 32 percent) of aspiring homeowners identified their motivators for purchase as children, marriage and/or retirement, the Profile reveals. A similar share (26-30 percent) indicated they would buy if their finances improved.
Less motivating is a raise in rents, the Profile shows. Despite 51 percent of renters anticipating their rent will rise, 42 percent would not move. Twenty-five percent would find a less pricey rental. Just 15 percent would make the move to own.
Affordability is the obstacle—and according to Lawrence Yun, chief economist at NAR, aspiring homeowners at the lower-end of the market have the worst of it. At the close of 2017, in fact, 56 percent of aspiring homeowners did not have the means to purchase, while the amount of aspiring homeowners who believed it is a good time to buy declined (down to 58 percent from 62 percent).
“A tug-of-war continues to take place in many markets throughout the country, where consistently solid job creation is fueling demand, but the lack of supply is creating affordability constraints that are ultimately pulling aspiring buyers further away from owning,” says Yun. “These extremely frustrating conditions continue to be most apparent at the lower end of the market, which is why the overall share of first-time buyers remains well below where it should be given the strength of the job market and economy.
“Housing demand in 2018 will be fueled by more millennials finally deciding to marry and have kids and the expectations that solid job growth and the strengthening economy will push incomes higher,” Yun says. “However, with prices and mortgage rates also expected to increase, affordability pressures will persist. That is why it is critical for much of the country to start seeing a significant hike in new and existing housing supply. Otherwise, many would-be first-time buyers will be forced to continue renting and not reach their dream of being a homeowner.”
The Aspiring Home Buyers Profile is based on findings from NAR’s 2017 Housing Opportunities and Market Experience (HOME) surveys.
For more information, please visit www.nar.realtor.
OPENING DATE: FEBRUARY 8, 2018
Click on above link for full information on this brand new Destination Resort. Graphic contained in this post is the property of Resorts World Catskills.