Report: Kids Have Big Say in Real Estate

Buyers with children put more weight on the neighborhood, local schools, and size of homes when shopping for the right property, according to the 2017 Moving With Kids report, produced by the National Association of REALTORS®.

The neighborhood, in particular, has a big influence on home buyers with children under the age of 18. Forty-nine percent of buyers who have children consider the neighborhood based on the quality of the school district, and 43 percent choose a neighborhood by the convenience to schools.

Sellers with kids also have unique needs. One notable need is that they usually have to sell their homes faster. Twenty-six percent of owners with children under the age of 18 sold their home urgently compared to 14 percent of owners with no children at home. The main reasons for selling a home for sellers with children were that the home was too small or they faced a job relocation or a change in their family situation.

Source: “2017 Moving With Kids,” National Association of REALTORS® (Aug. 21, 2017)

Like-Kind Property Exchanges Gain Popularity

Commercial and residential REALTORS® say that tax advantages such as like-kind exchanges of properties are necessary for gaining and disposing properties and are important in fueling the nation’s economy and job growth, per a recent survey by the National Association of REALTORS®.

Like-kind exchanges — also referred to as Internal Revenue Code Section 1031 — offer individuals and businesses a tax deferment on gains after they sell one property. But they are required to use any profits gained to reinvest in a similar property within a certain timeframe.

Forty percent of REALTORS® surveyed say that transactions would not have occurred without such a tax provisions. What’s more, 96 percent say they believe real estate values would go down if 1031 exchanges weren’t available.

Source: “Real Estate Tips: Like-Kind Exchanges Gaining in Popularity,” National Ledger (June 27, 2016)

‘First-Time Buyers’ Fuel Latest Home Sales Boost

The market share of first-time home buyers rose to 32 percent of transactions in May, matching the highest share since September 2012. A year ago, first-time buyers represented 27 percent of all buyers, NAR reports.

“The return of first-time buyers in May is an encouraging sign and is the result of multiple factors, including strong job gains among young adults, less expensive mortgage insurance and lenders offering low down payment programs,” says Lawrence Yun, NAR’s economist. “More first-time buyers are expected to enter the market in coming months, but the overall share climbing higher will depend on how fast rates and prices rise.”

As the supply of homes remain tight, homes are selling fast and price growth in many markets continues to teeter at or near double-digit appreciation, Yun notes. “Without solid gains in new home construction, prices will likely stay elevated – even with higher mortgage rates above 4 percent,” Yun says.

Source: National Association of REALTORS®