A Fairy Tale Cottage on Macomb Offers Vintage Touches
Back in the day, long before “tiny houses” and other architectural oddities were a thing, there were Sherman cottages - fairy tale structures based on the Arts and Crafts style. Built at the turn of the last century, these homes featured such decorative elements as angled windows, unusual rooflines, rope-dipped-in-plaster trim, and conservatories that gave each home its own distinctive profile.
Designed by Ella Sherman for one of the original Cleveland Park subdivisions in 1909, this 2,485 square foot seafoam stucco and shingle cottage at 3031 Macomb St. NW has four bedrooms, four full bathrooms, and one half-bath, a large curved porch, a pool house, off-street parking, and abundant charm.
The results of countless studies have shown that potential home buyers, and even current homeowners, have an inflated view of what is really required to qualify for a mortgage in today’s market.
One such study by the Wharton School of Business at the University of Pennsylvania, revealed that many Millennials have not yet considered purchasing a home, simply because they don’t believe they can qualify for a mortgage.
The article quoted Jessica Lautz, the National Association of Realtors’ Managing Director of Survey Research, as saying that there is a significant population that does not think they will be approved for a mortgage and doesn’t even try. The article also quoted Fannie Mae CEO Tim Mayopoulos:
In today’s housing market, where supply is very low and demand is very high, home values are increasing rapidly. Many experts are projecting that home values could appreciate by another 5%+ over the next twelve months. One major challenge in such a market is the bank appraisal.
If prices are surging, it is difficult for appraisers to find adequate, comparable sales (similar houses in the neighborhood that closed recently) to defend the selling price when performing the appraisal for the bank.
Every month, Quicken Loans measures the disparity between what a homeowner believes their house is worth as compared to an appraiser’s evaluation in their Home Price Perception Index (HPPI).Here is a chart showing that difference for each of the last 12
CoreLogic released their most current Home Price Index last week. In the report, they revealed home appreciation in three categories: percentage appreciation over the last year, over the last month and projected over the next twelve months.
Here are state maps for each category:
The Past – home appreciation over the last 12 months
The Present – home appreciation over the last month
The Future – home appreciation projected over the next 12 months
Bottom Line
Homes across the country are appreciating at different rates. If you plan on relocating to another state and are waiting for your home to appreciate more, you need to know that the home you will buy in another state may be appreciating even faster.
If you are debating purchasing a home right now, you are probably getting a lot of advice. Though your friends and family will have your best interest at heart, they may not be fully aware of your needs and what is currently happening in the real estate market.
Ask yourself the following 3 questions to help determine if now is actually a good time for you to buy in today’s market.
1. Why am I buying a home in the first place?
This truly is the most important question to answer. Forget the finances for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with money.
For example, a recent survey by Braun showed that over 75% of parents say “their child’s education is an important part of the
I asked you all to send me your questions about buying and selling real estate, and I got two good questions from Bob that I’d like to answer for you today.
Bob asks, “For those of us who may not be planning to list our homes now, what improvements should we make to the interior and exterior of our homes in priority order?”
The very first priority should be to look at each room, starting at the front of the house. Look at your front porch and the foyer of your home. Do you have a lot of items cluttering the area? You should have no more than one, two, or three items on a surface.
Walk by every room and look at each of your three items, and think
Stunning 6 bedroom, 5 ½ bath brick Colonial on quiet cul-de-sac with 2 story foyer, curved stairway, gourmet kitchen & breakfast room with wall of windows overlooking yard, patio & deck. Living room with fireplace, formal dining room, huge family room & office with buit-ins. Lower level rec room, exercise room & kitchenette. Great location just over the DC line.
The number of new home sales is far off historic norms. The National Association of Realtors (NAR) just reported that the percentage of all house sales that were newly constructed homes has fallen to the lowest numbers in forty years. Here is a graph showing the percentages:
This should come as no surprise as the number of new housing starts has fallen dramatically over the last several years:
Bottom Line
We need more new construction for two reasons:
It will relieve some of the pent-up buying demand that is causing price appreciation to continue to increase well above historic norms.
It will give better opportunities to many current homeowners who want to sell but can’t find an adequate home to move in to.
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