DEMOGRAPHICS-Interesting Speculations

4 Demographic Shifts Worth Watching

The aging of America, more immigrants, and a population that’s heading south are a few big trends to watch that will likely have a great impact on the housing market over the next decade, writes John Burns, CEO of John Burns Real Estate Consulting, in a column for ATTOM Data Solutions. His team spent more than 9,000 hours researching demographic shifts that will occur over the next decade. In his column, Burns highlighted some of his findings from a book that he and Chris Porter published, Big Shifts Ahead: Demographic Clarity for Businesses. Here are some of the demographic trends Burns says to watch over the next 10 years:

1. More people over the age of 65: Thirty-eight percent of the population will be over the age of 65 within the next decade—the number will hit 66 million people by 2025. Burns says this will spark even greater demand for high-density, low-maintenance living and what he calls “surban” (urban living in suburban environments). Burns also predicts that more of these baby boomers will help their children with down payments on a home in order to keep their children living nearby.

2. More affluent immigrants: Burns estimates there will be 8 million increasingly affluent immigrants over the next decade. “Today’s immigrant tends to arrive on an airplane from China, Brazil, and other countries where the economies have been booming,” Burns writes. “While most expect some slowing in those economies, the pent-up demand to move to the U.S. remains large.”

3. More people head south: Sixty-two percent of the population growth over the next decade will likely be in the South, where already 42 percent of the nation lives, Burns notes. “Plenty of jobs, affordable housing, and warm weather will make Texas, Arizona, Nevada, Florida, Georgia, North Carolina, and surrounding states the growth engine,” Burns writes.

4. More people passing away and leaving a household behind: Burns estimates there will be 25.8 million newly formed households in the next 10 years, and 13.3 million of those will move to a household abandoned by someone who passes away or moves into an assisted living facility. “The record number of people passing away has been one big reason that net household formation has been slow,” Burns writes. “Nonetheless, these 25.8 million want to live differently than prior generations, and will fill their homes up with all sorts of technology.”

Source: “Finally: Demographic Clarity,” ATTOM Data Solutions (March 30, 2018)

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California Dreamin’ – Can YOU Move In?

California Dreaming 2018

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Mastering the Art of Being Connected

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Dawn O’Neal

Managing Broker – Sequim, Washington                                                                                                             
Realogics Sotheby’s International Realty ~ Sequim
240 Winslow Way East
Bainbridge Island , WA 98110

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Who’s Buying Homes Nationwide in 2017?

Who is buying homes

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Is California in the Midst of Another “Bubble”

Here is an article from California’s Chief Economist: Leslie Appleton-Young.

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Anyone visiting a weekend open house knows that most for-sale properties today have been “staged” to show them at their best and most appealing. Some would-be home sellers have wondered whether it might be better to go one step beyond staging and do a remodel of their home to increase its value. After all, who’s not impressed by a brand new, state-of-the-art kitchen and bathroom?

The remodeling industry chalked up sales of more than $340 billion in 2017—a 7.5% increase from the previous year. Are these homeowners onto some financial secret? Can remodeling increase the value of a home?

The simple answer is yes—but it is unlikely that spending money on a major remodel will translate into a high enough sales price to justify the expense. According to a recent survey completed by Harvard University’s Joint Center for Housing Studies, the average recovery of remodeling costs is 56%. This means that spending $20,000 to update an older kitchen to a shiny new on will increase the value of the home by only about $11,200.

There are some improvements that may offer better numbers. Replacing and modernizing structural items, such as garage doors and windows, can give a return of 75% of their cost. Interior projects tend to have less favorable returns: adding a master suite, for example, may increase the value by 56.6% of its cost—and this represents a 14.7% drop from the previous year. Major kitchen upgrades return about 56%, down 10.9% from last year.

Reining in the cost and extent of remodels can provide better returns. A minor kitchen update can return up to 81% of its cost. Bathroom tune-ups are much the same. Buyers respond favorably to appliances and fixtures that are functional and new.

Many homeowners, aware of rising interest rates and prices, are turning to remodeling to avoid a move, choosing to spend money to make their homes more livable and attractive over a longer period, not so much for resale value.

If you are contemplating a remodel, you should decide whether you are hoping to increase the value of your home for resale in the immediate future, or whether you simply want to make your property more livable over a longer period. If you are planning to sell, you should think twice about spending the money, since you’ll only get a portion of it back in the form of a higher sales price.

Source: TBWS

Should you remodel before listing your home for sale?  Read this artilce 

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1031 Exchanges & Capital Gains – Do You Know?

Here is a great Quiz from The National Association of REALTORS® Magazine.  Do you know all you need to in order to exchange a property and defer capital gains?  (Be sure to follow up with a Qualified Intermediary to see how current new laws may affect your exchange.)

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