Gen-Zers Are Indeed Buying Houses in the City Predicted to Be Most Popular in 2022

 
 

The experts called it; young home buyers listened.

At the end of 2021, all eyes were still on Austin as the city in America where everyone wanted to move. In fact, the market there was so hot that one homeowner’s house value jumped $100,000 in less than a year. But these days, at least when it comes to young, first-time buyers, moving out West is more appealing than settling down in the Lone Star State. According to the latest data from Lending Tree, Gen-Zers (those born between 1997 and 2012) are in favor of putting down roots in Salt Lake City. The news shouldn’t come as a total shock, as just this past December, Realtor.com’s team of forecasters predicted it would be the most popular place to buy a home this year, thanks to its scenic biking and hiking trails and easy access to outdoor recreation. 

But it isn’t just nature that’s drawing 20-somethings to the capital city—it’s also stability. Salt Lake City has the largest share of mortgages (16 percent!) offered to Gen-Z residents. So even those who have just graduated from college can feel confident moving to the metro area. If you’re looking to make a move over the summer (like 60 percent of the country), here’s the average credit score among Gen-Z home buyers in the top-five most popular cities, to give you an idea of where you’ll need to be financially.

  • Salt Lake City: 701

  • Louisville, Kentucky: 699

  • Oklahoma City: 697

  • Cincinnati: 702

  • Indianapolis: 699

On the opposite end of the spectrum, it’s no surprise that New York and San Francisco hold the lowest percentage of mortgages given to Gen-Z buyers at less than 4.5 percent. Of course, if you have your heart set on a pricier coastal location, the best step you can take to nail down a great monthly rate is to pay down other debts in order to boost your credit score. Equity, here you come.

Get more like this on Domino.

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7 Must-Know Hacks and Tips for Pet-Proofing Your Home

 
 

Welcoming a pet into your home can be a huge source of joy, but it also requires lots of responsibility.

On top of feeding and caring for your pet, you’ll need to take active steps to make sure they’re safe — and, at the same time, protect your home from potential damage.

With a bit of strategic thinking and the right tools, you can create a pet-safe, pet-proof space where you and your animal companion can thrive. Not sure where to start? Here are seven smart hacks and tips for new pet owners, as suggested by experts. 

First and foremost: Exercise and entertain your pet.

If you have a cat or dog, doing your part to keep them active and amused can go a long way as a pet-proofing measure. 

Veterinarian Lindsay Butzer, a PetMeds partner, suggests exercising your dog for 20 to 30 minutes every day to keep them content. Cats may not need as much exercise as an active dog, but they do need entertainment to stay out of mischief and satisfy their hunting instincts, so make sure to incorporate plenty of mentally stimulating playtime throughout the day, whether with a wand toy or puzzle toy. 

Sneakily transition your cat to a scratching post.

It can be frustrating when your cat scratches your furniture, but it’s a totally natural behavior that helps them keep their nails healthy. Providing your cat with a scratching post is the best way to protect your furniture and prevent bad habits from developing, says veterinarian and behaviorist Paola Cuevas of Hepper

If your cat is already in the habit of scratching, overcoming it can be tough. Cuevas suggests placing an alternative scratching area (you can even DIY a cat scratcher!) near the furniture your cat is currently scratching, and covering that with double-sided tape, which repels cats. When your cat scratches the new post, offer a word of praise or a treat to reinforce the good behavior. Then, once your cat develops a history of only using the scratching post, gradually relocate it. 

Sometimes, accidental scratching happens. Another hack, from Butzer: “Trim your cat’s nails every two weeks to keep them short and blunt so they can’t pierce and scratch through furniture and cloth.”

Offer your pup lots of fun chewable items to make your furniture less enticing.

A dog who’s bored, stressed, or under-stimulated might develop a chewing habit. Keep your furniture and other belongings safe by giving your dog other things to chew. For puppies, who go through teething just like babies, Cuevas suggests providing chewing toys and teething-specific treats to provide some relief without sacrificing your shoes. Many pet stores sell teething toys, but in a pinch, she suggests a frozen carrot. 

For adult dogs, bones are a must. Butzer suggests one bone a day, plus an assortment of large plastic or rope toys your dog can carry around and chew on. To make them last longer, choose toys that are too large for your pet — that way, it’ll take them more time to chew on it. 

In a pinch, Butzer says a bitter training spray that leaves a nasty taste in your pet’s mouth when they attempt to chew your furniture legs, or even your shoes, can help. 

Invest in a gate from the get-go.

If there are any areas of your home you don’t want your pet to go into — especially areas with potentially poisonous or unsafe items — it’s important to close them off. Brianna Nelson, associate buyer at Pet Supplies Plus, suggests investing in a gate or exercise pen to set some boundaries. 

Plus, if you’re bringing home a new pet, you can use the gate or pen to help your new roomie gradually familiarize themselves with your home. “Start small with the main room they will be in, and slowly introduce them to more rooms over time as they adapt and get more comfortable,” Nelson says. 

Butzer says crate training can also help. Crates don’t just keep animals out of areas you don’t want them to be in; many animals feel safe having their own, dedicated space. And both can help cut down on destructive behavior. If you do spring for a crate, Butzer recommends giving your dog a bone, such as a digestible rawhide or bully stick, for four- to five-hour rest periods to keep them busy and happy. Also remember that, according to The Humane Society of the United States, you should never use a crate as punishment or leave a dog in a crate for too long (for puppies under six months old, that’s just three or four hours). 

Choose the right upholstery. 

When you have a pet, some amount of wear and tear is inevitable. So whenever you’re in the market for new furniture, selecting durable, stain-proof fabric can be a major game changer. Nelson suggests distressed leather, which she says repels odors and is easy to clean. Other tightly woven fabrics, such as microfiber, are also great for pets. Suede and silk, on the other hand, are easy to damage and stain, so they’re not the best options for pet owners.

Use a trash can with a pet-proof lid in the kitchen.

Pet-proofing your home also involves making your space safe for a curious animal. According to Cuevas, the kitchen is many pets’ favorite spot in the house — it’s where tasty treats and delicious, enticing smells happen. Unfortunately, it’s also where accidents and medical issues can happen, so it’s important to create kitchen safety rules to prevent accidents. In general, make sure you don’t leave out any temptations for your pet before you step out of the kitchen. Never leave food leftovers behind, and be especially careful with pet-toxic food

But even beyond that, Cuevas suggests using a pet-safe trash bin with a pet-proof lid to prevent dogs and cats from scavenging in the kitchen’s trash and leftovers. 

Lock away anything toxic.

This one may sound like a given, but it’s absolutely worth repeating: Keep any toxic or irritating substance, like cleaning chemicals and insecticides, away from your pet’s reach — ideally, locked in a box, cabinet, or room where your pest can’t access them. 

It takes a little extra time, money, and work to make your home a haven for you and your pet, but you’ll both be happier when you put a little extra effort in.

For the full article, visit Apartment Therapy.

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More buyers opt for adjustable-rate mortgages as rates rise

 
 

Rising interest rates are making adjustable-rate mortgages an increasingly attractive alternative to common 30-year, fixed-rate home loans.

ARMs made up 13% of all home loans by dollar volume in March, their highest share since January 2020, according to CoreLogic.

The increase coincides with a sharp rise in mortgage rates. The average weekly rate on a 30-year mortgage slipped this week to 5.25% from 5.3% last week, which was the highest level since 2009, according to mortgage buyer Freddie Mac. The average rate was 3% a year ago.

Rising mortgage rates, in conjunction with sharply higher home prices, make homeownership less affordable.

“It’s natural for homebuyers to be looking at ways to reduce that mortgage payment, and one of the ways is to use an adjustable-rate mortgage,” said Selma Hepp, deputy chief economist at CoreLogic.

Adjustable-rate mortgages don’t make it any easier to qualify for financing, but they do offer buyers some flexibility with their monthly mortgage payments in the first few years of the loan term.

For example, a homebuyer who takes out a typical 5/1 ARM will have a low, fixed rate for the first five years of the loan. After that, the loan adjusts to an adjustable interest rate, which could be higher or lower, until the debt is paid off, or the buyer refinances the loan.

Such loans became less attractive the last couple of years as average long-term mortgage rates fell to an all-time low.

ARMs’ share of all loans by dollar value sank to just 4% in January 2021 from 13% a year earlier, according to CoreLogic. ARMs have made up between 10% and 19% of all loans by dollar value over the last 12 years.

At the height of the last housing boom in 2005 ARMs represented just under 45%, CoreLogic said.

Back then, such home loans were more common because lenders could sign up homebuyers for a loan and then take it off their balance sheet by selling it to investment banks that made a big business of selling mortgage-backed securities to investors. Far looser lending criteria also set up many loans to default when they adjusted to a higher rate.

Such a scenario isn’t in the cards now, however, as banks have beefed up their lending standards since the Great Recession.

“We still see very solid underwriting standards,” Hepp said. “The last few years have been some of the best underwritten loans, irrespective of what people use as their mortgage type.”

Keep reading.

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7 Home Remodeling Projects with the Best Return on Your Investment

 
 

Putting money out for a home renovation can be a challenging decision, especially when you don’t have a clear idea of how much value it will add to your home in the long run.

Some of that uncertainty can be attributed to the labor or material costs, while the most pressing challenges are rooted in renovations or remodeling projects that do not offer a higher return rate on your investment.

With the costs of most goods rising every year, it would be wise to choose projects that can deliver the highest return on your investment in the form of a higher home value. To give you more insight, here are seven of the best remodeling projects that bring you the most ROI.

Garage Door Replacement

Garage door replacement is, across the country, one of the safest remodeling projects that you can undertake. The average ROI on a garage door replacement is 93.3% for an average investment of $4,041. As a result, many defer to garage remodeling as their first choice, especially when on a tight budget. 

In addition, when getting a new garage door, it is imperative to ensure that you are not compromising on quality. Make sure to get a door with a lifetime warranty and for the materials to be long-lasting. For example, aim for galvanized steel for the door tracks and one of the multi-layered four square designs for the door itself. A way to save some cash could be to retain the motor from your previous garage door unless it has degraded over the years. 

Manufactured Stone Veneer

Many homeowners find manufactured stone veneer attractive due to conventional reasons. On top of being stylistically appealing, it helps maintain heat in winter, cools the home in summer, and is one of the most sturdy of all building materials. Besides that, it also offers one of the best returns on investment out of all remodeling projects. 

The current ROI for manufactured stone veneer is 91.4%, which is quite high given the cost that goes into labor and materials. To make that more concrete, the average cost of this renovation is $11,066, out of which you are able to recoup roughly $10,109 post-sale. 

It’s worth noting that when installing stone veneers, you will get the best results from dedicated professionals. If not installed properly, moisture can get trapped behind the walls or the walls can even fall apart if not properly caulked and sealed. A professional team will help you avoid this, so when installing a manufactured stone veneer, it’s wise not to cut any corners.

Minor Kitchen Remodel-Midrange

A kitchen remodel offers many opportunities for you to recoup your investment if the current cabinetry has good bones. At 71.2%, the return on investment in most cases is fairly reasonable, given the influence it can have on potential buyers. You can leave the cabinet sections and drawers as it is and replace only the fronts with shaker-style panels. You can also install new hardware to make sure everything looks and feels squeaky clean. 

The most pressing components of a kitchen are the cooktop/oven and refrigerator. By replacing these with the latest models, your chances of securing a high bid are increased drastically. To accentuate the aesthetics of your kitchen, replace the countertops and install a mid-tier sink and faucet. For the final touch, repaint the walls, trim, and ceiling, so every element of your kitchen resonates well with the viewer.

Siding Replacement-Vinyl and Fiber Cement

Redoing your siding is one of the guaranteed remodels that can help you attract potential buyers, so long as your house has sidings. Sidings can be one of the more tricky remodels to work on, because, in the last 50 or so years, many types of siding have been developed, some better than others. 

When landing on the right choice of siding replacement, look at the financial costs but also the localized costs in your community. Even though nationally, the siding with the best ROI is Fiber-Cement siding, other types of siding may offer a better ROI for your local community. However, the ROI on Fiber Cement is 68.3%, which is the best out of most materials. Slightly higher than vinyl siding which is sitting at 67.2%. 

Window Replacement

Replacing windows serves as a great chance to add some extra value to your home but also to staunch out-of-control electric and heating bills. One of the common ways people lose money on their heating and electricity is when old windows leak out air conditioning and heat. 

The standard choice for window replacement, wood, and vinyl are within 1% when it comes to their rate of return on investment. Vinyl is slightly higher at 67.5%, while wood sits at 66.3%. Since both replacement options are so close in terms of ROI, you can make your choice based on what works for your budget and fits the style of your home.

Deck Addition

Adding a deck to the property creates a focal point for the property but is also one of the best ways to add value to it. The ROI for adding a deck to your property is 64.8% if you use a wood deck, with a composite deck being only slightly less economically friendly with 62.1% However, once again, it is important to consider the overall style of your home and which would be more visually appealing to any future buyers.

Asphalt Shingles

When getting a roof replacement, many experts recommend that you go with asphalt shingles over the relatively more modern metal roofing. Asphalt shingles last as long as metal roofing in most cases. 

In addition, the average cost for a metal roof is nearly double that of an asphalt roof, with a metal roof averaging about $51,436 compared to the $31,535 for an asphalt roof. All things considered, there are other factors that can sway your decision, such as initial costs, duration of the remodel, and extensive labor costs, so be mindful of those.

Keep reading on CoreFinanceGroup.com

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The U.S. Housing Market Has Peaked

 
 

But no, we’re not headed for anything even close to 2008.

If you’ve tried to buy a home in the past two years, you have my most profound sympathies. Your experience has probably gone something like this: You found your dream home online; sent photos around to your family; visited the premises (or decided to buy, sight unseen); got your financial statements in order; smartly offered 10 percent over asking; and learned, several hours later, that no fewer than 831 other people had bid for the same house, which sold to a couple who paid 50 percent over asking, all cash, and cinched the deal with a contract amendment promising to name their firstborn child after the seller.

Yes, the American real-estate market really has been historically hellish, or historically hot, depending on whether you were trying to buy a home or sell one. Within the past year, just about every housing statistic you could imagine set some kind of berserk record. Home prices hit a record high, the share of homes that sold above asking hit a record high, and the number of available homes for sale hit a record low.

But the vibe is shifting. I count at least three signs that the national housing market is about to experience a significant slowdown.

First, as the Federal Reserve raises interest rates to combat inflation, mortgage rates are soaring. In April, the 30-year fixed rate surpassed 5 percent for the first time in more than a decade. As borrowing becomes more expensive, so does buying.

If you take the long view, financing a house is still pretty cheap. The 30-year rate is lower today than it was for any month except one (June 2003) from the 1990s to the Great Recession. But on an annualized basis, rates are rising faster than at any time in 40 years. Buyers seem to have anticipated this moment. In the late winter, one index of housing prices hit its highest month-to-month increase ever, which might suggest that home buyers said “Ah, screw it!” and made ridiculous offers to lock in a cheaper mortgage rate, just before rates took off.

Second, the number of homes for sale—a.k.a. housing inventory—is finally perking up after plunging to all-time lows during the pandemic.

In the hottest markets, such as California and Colorado, the number of available homes is increasing significantly faster than the national average, according to Altos Research, while the share of new listings going into contract “immediately” (meaning within days, or even hours) is declining quickly.

Inventory doesn’t sound as sexy as home prices, but this might be the single most important statistic to watch. “My view has been that the market shift will show up first in inventory, [because] as inventory increases, house-price growth will slow,” says Bill McBride, a real-estate and economics writer.

In 2006, McBride famously called Americas housing bubble when he saw inventory skyrocketing to absurd highs. Today doesn’t look anything like 2006, he assured me. During the worst of the housing crash, inventory as a share of the market was about five times higher than it is today. Instead, McBride said that the next few years will likely resemble the period around 1980. To combat high inflation from the 1970s, the Fed Chair Paul Volcker hiked up interest rates, jolting the economy into a deep recession. The housing market basically stalled until 1982. That sort of stall-out, rather than some crazy plunge into the abyss, is probably our worst-case scenario.

Finally, we can already see these technical statistics—rates, percents, inventory—playing out in the real world. Google searches for homes for sale are falling in major cities, including Boston and Los Angeles. Redfin agents in California say that showings and offers are down double digits since last year. In Minneapolis, showings have fallen rapidly in just the past month.

May and June are historically the most popular months to buy a home. That means that the housing slowdown might be delayed for a few weeks, as the spring surge works its way through the system. But by this summer, sellers expecting dozens of offers in a matter of days could be in for a rude awakening. Before long, flush wannabe homeowners—those lucky enough to be somewhat insulated from rising mortgage rates—will be able to buy without sacrificing the naming rights of their firstborn. Things won’t feel great for everyone. But historically speaking, they just might feel normal.

Keep reading on The Atlantic.

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