Category: Housing market updates

Saving for a down payment is often the biggest hurdle for a first-time homebuyer. Depending on where you live, median income, median rents, and home prices all vary. So, we set out to find out how long it would take to save for a down payment in each state.

Using data from HUD, Census and Apartment List, we determined how long it would take, nationwide, for a first-time buyer to save enough money for a down payment on their dream home. There is a long-standing ‘rule’ that a household should not pay more than 28% of their income on their monthly housing expense.

By determining the percentage of income spent renting in each state, and the amount needed for a 10% down payment, we were able to establish how long (in years) it would take for an average resident to save enough money to buy a home of their own.

According to the data, residents in Kansas can save for a down payment the quickest, doing so in just over 1 year (1.12). Below is a map that was created using the data for each state:

How Quickly Can You Save Your Down Payment? | Keeping Current Matters

What if you only needed to save 3%?

What if you were able to take advantage of one of Freddie Mac’s or Fannie Mae’s 3%-down programs? Suddenly, saving for a down payment no longer takes 2 to 5 years, but becomes possible in less than a year in most states, as shown on the map below.

How Quickly Can You Save Your Down Payment? | Keeping Current Matters

Bottom Line

Whether you have just begun to save for a down payment or have been saving for years, you may be closer to your dream home than you think! Meet with a local real estate professional who can help you evaluate your ability to buy today. Call us!

Whether it is with the goal of saving money or for the satisfaction of living in the fruits of one’s labors, it has become increasingly popular for homeowners to take on home renovation projects themselves. One of the most common types of do-it-yourself projects is a bathroom remodel. Not only can bathroom remodels help to improve your overall quality of life, but they can also dramatically increase the value of your home if you ever decide to sell.

 

However, there are a number of potentially complicated or dangerous parts of every bathroom renovation, such as electrical and plumbing work, that you should be aware of before attempting the project. Here are some things to keep in mind when you are tackling a bathroom renovation for the first time so that your project can be quick, easy, and fun.

 

Plan out the Entire Project Beforehand

 

As with any kind of renovation, the first thing you need to do is plan out the scope of the entire project. The more you prepare, the fewer unexpected costs you will have to endure down the road. Start by listing all the things you would like to do to your bathroom. Don’t factor in cost at this point — instead, just list them all. You may want to include things like a walk in shower, a clawfoot tub, a heated floor, a double sink, and so forth.

 

Next, organize the list in order of desire — put your must-haves at the top, all the way down to negligible or “bonus” projects. Then, it is time to do some research online. Find the average costs of each type of project and put the numbers next to each line on your list. Finally, compare these costs to your total budget. This way, you can make sure that you have enough money for the most important projects, allowing for extras if you happen to come in under budget.

 

However, Remember to Have Fun

 

Even though it is tempting to get bogged down in the minutia of planning and money management, don’t let yourself forget to have fun. A bathroom remodel is a great way to boost your bathroom’s appeal, both for yourself and for potential buyers if you ever decide to sell your home. For instance, a renovated bathroom can provide you with a 40 to 80 percent return on investment, depending on the current state of the real estate market.

 

Think About Ways to Come in Under Budget

 

It is common for do-it-yourself projects to end up going over budget, but there are a few things you can do that will keep your costs lower. First, if you need to buy power tools for your renovation, you may want to try borrowing them from a handy friend or family member. If you end up having to buy them after all, look at previously used tools to save money. Next, while part of the reason you may want to be doing the project yourself is to save on the cost of a professional, in certain cases, a professional can actually save you money, such as with walls damaged by water. Furthermore, certain plumbing and electrical projects can be dangerous for you to attempt on your own — always hire a professional contractor in those cases.

 

When you are renovating your bathroom, remember to consider all the possible angles that will need to be covered, both from the financial and design sides of the process. Doing so will allow you to relax and have fun with the project.

 

Photo Credit: Pexels

Thank you to guest writer, Erin Reynolds

CoreLogic broke down appreciation even further into four price ranges, giving us a more detailed view than if we had simply looked at the year-over-year increases in national median home price.

The chart below shows the four price ranges from the report, as well as each one’s year-over-year growth from February 2017 to February 2018 (the latest data available).

How Much Has Your Home Increased in Value Over the Last Year? | Keeping Current Matters

It is important to pay attention to how prices are changing in your local market. The location of your home is not the only factor that determines how much your home has appreciated over the course of the last year.

Lower-priced homes have appreciated at greater rates than homes at the upper ends of the spectrum due to demand from first-time home buyers and baby boomers looking to downsize.

Bottom Line

If you are planning to list your home for sale in today’s market, find a local agent who can explain exactly what’s going on in your area and your price range. Like us!