Jan. 25: News from Western Markets; Adele’s take-off for Realtors

Rob Chrisman

Rob Chrisman began his career in mortgage banking – primarily capital markets – 31 years ago in 1985 with First California Mortgage, assisting in Secondary Marketing until 1988, when he joined Tuttle & Co., a leading mortgage pipeline risk management firm. He was an account manager and partner at Tuttle & Co. until 1996, when he moved to Scotland with his family for 9 months. See more

Top real estate agents are always looking for cool tools. Here’s one: RoomSketcher. It allows agents to create 2D and 3D floor plans easily and quickly. And I’ll be darned if the basic version isn’t free!

 

Let’s see what is going on with markets around the Western US!

 

Marin, California Market:

 

Unraveling details about the real estate market is a fairly daunting task. With the constant movement and changes, things can get a bit sticky from time to time. From a macro perspective, over the last 3 years, the first quarter of 2013 compared to the last quarter of 2015: single family home prices increased 41.6%; condo/co-op prices increased 53.2%. Average days on market decreased by 42% for both single family homes and condos/co-ops. The number of homes sold increased by 16.1% while condo/co-op sales increased by 31%.

 

Tapping into Millennial nostalgia:

 

“Remember when” …the precursor question for a trip down memory lane. We have all said it and experienced it. We’ve seen it in the movies and even experienced for ourselves, that nostalgic feeling when we think of our childhood, including the home of our youth. The Builder Responsive Home Exteriors is tapping into the feeling of nostalgia, simpler times if you will, utilizing the draw of familiarity. Conducting its Responsive Home project, analyzing millennial home-buying practices, found that many of their decisions are often wrapped in a package that reminds them of the home they grew up in. According to architect Hans Anderle, millennials are particularly interested in “that traditional notion of home that people want, regardless of age and demographic. It gives the sense of ‘the house I grew up in,’ or ‘that neighborhood I really like.'”

 

Responsive Home Exteriors incorporates a creative combination of exterior materials. It creates a Contemporary Farmhouse’s classic look using James Hardy board-and-batten siding engineered with different formulations for different climates. The Eldorado Stone Company travels worldwide to acquire natural stone samples that are then used to create molds for true-to-life stone veneer, providing believable architectural stone. Times may change but our core heart and soul remains wrapped up in our formative years, and builders are responding.

 

Newlyweds looking for a nest:

 

Speaking of newlyweds in search of a new house, statistically, where are the lovebirds most likely to land? Compiled data use from Metrostudy Analytics, focused on the top 15 markets with the highest percentage of new home buyers being married 2012 through 2014. Markets with at least 250 per year were included.

 

The top three markets include Utah (in all fairness, the state has an extremely high marriage rate but the top ranking is held by San Jose, CA. with an average of 91.14% of new home buyers were married during the time span afore mentioned. The Washington D.C. metro area, ranked at an average of 86.74%.

 

When you look at the top, you should look at the bottom as well…the bottom 15 markets for married new home buyers is Florida (it is a retirement haven after all), Myrtle Beach, S.C. and New York Metro.

 

Sports obsessed:

 

Here is an interesting bit of information straight out of Los Angeles. It is safe to say we are obsessed with professional sports in the U.S. More specifically, according to ESPN, Pro football is the most popular sport in America for at least the 30th straight year. In 2014, 35 percent of fans call the NFL their favorite sport. So football fans, the Rams are returning to L.A. (specifically, a site in Inglewood, Calif.) for the 2016 season after 20 years away.

 

What do these facts have to do with home ownership? Rams owner, Stan Kroenke, has pitched the Inglewood stadium as more than just a football venue. The site will be developed with movie theaters, shopping and with a residential component. It will also house league offices and play host to TV and digital production for the NFL. “We think it’s going to boost property values,” said Sandra Green-Murray, a real estate agent with Playa Marina Properties in Los Angeles. “This is an area with a lot of property that can be developed. We’re expecting lots of growth.”

 

Trulia took a look at the current value of real estate and comparable rentals within a 2-mile radius around existing NFL stadiums, evaluated changes to home values near stadiums built in the last decade. Approximately two thirds of 31 neighborhoods have higher housing values, on average, than houses in non-stadium neighborhoods. But, during the last 10 years, five new pro football stadiums have opened and none, so far, has had a noticeable impact in raising home values in its immediate vicinity (a two mile radius).

 

Millionaire growth and where they want to live:

 

The Wall Street Journal reported the country as a whole added 239,000 millionaire households from 2014 to 2015. That is a growth rate of about 4% to a total of 6.5 million. Strong gains in the stock market during the period studied for the report conducted by Phoenix Marketing International and wealth tied to the oil industry, are potential indicators for the growth. The top five ranking states populated by millionaires are Maryland, Connecticut, Hawaii, New Jersey and Alaska.

 

The top of the barrel for markets with the largest increase in millionaire households may come as a surprise. Where are the rich choosing to live? Mount Airy, N.C. now has something to boast other than the birthplace of Andy Griffith and the inspiration for the town featured in “The Andy Griffith Show”. The Wall Street Journal reported the Mount Airy, N.C. metro area’s population of millionaire households grew by 332, or almost 30%, between June 2014 and June 2015. The small town atmosphere appears to be gaining speed. Other increases were seen in Pecos and Lamesa, Texas, Cookeville, Tennessee, Kalispell, Montana, and New Philadelphia-Dover, Ohio.

 

 

A Realtor’s parody of Adele’s ‘Hello’ is going viral and it’s easy to see why: http://lightersideofrealestate.com/real-estate-life/good-vibes/and-its-easy-to-see-why

(…Zillow isn’t ever right…I want to scream ‘go fly a kite’…cuz I told you, Zillow, hasn’t walked in this home…)

 

Rob

 

(Copyright 2016 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)