Investors Back Away From Home Flipping

Investors are retreating from flipping houses, showing skepticism that the practice will continue to pay off. About 43,615 single-family homes and condos were flipped in the first quarter of 2017, down 8 percent from the previous quarter and 6 percent from a year ago, according to ATTOM Data Solutions’ Q1 2017 U.S. Home Flipping Report. It represents the lowest number of flips in two years. ATTOM Data Solutions defines a flip as a home that has been sold twice within a 12-month period.

Home flips accounted for 6.7 percent of all single-family and condo sales for the quarter, one-third of which were purchased with financing. That’s up from 31.9 percent that were financed in the fourth quarter of 2016, setting the highest level since the third quarter of 2008.

More interesting ‘Home Flipping’ information at: ATTOM Data Solutions/RealtyTrac

A Trick to Save on Home Insurance Premiums?

To save money on home insurance premiums, try raising the deductible on the home insurance policy – but carefully consider if there is enough money saved before doing so.

“The bottom line is that you want to make sure you are comfortable with the deductible amount you’ve selected,” says Stacy Molinari, personal lines and claims manager of Insurance Marketing Agencies, Inc. “And that means you need to make sure you have enough of a financial cushion to cover the deductible. Otherwise it could cost you more in the long run.”

The study found that for the average nationwide home insurance premium of $1,034, raising the deductible from $500 to $1,000 could amount to a 7 percent in savings. Raising the deductible from $500 to $2,000 could result in a 16 percent savings, and an increase from $500 to $5,000 could net a 28 percent savings.

Source: InsuranceQuotes.com

Generational “Home Buying Trends”

At 31 percent, Gen X comprises the largest group of recent home buyers, according to NAR’s Home Buyer and Seller Generational Trends report released today. Gen Xers were followed in numbers by Gen Y buyers (28 percent), and then younger Baby Boomers (18 percent), older Baby Boomers (14 percent), and the Silent Generation (10 percent). The Greatest Generation, also known as the G.I. Generation, represented less than 1 percent of recent buyers.

The report — a compilation of survey data from 8,501 recent home buyers — also shows that 80 percent of buyers who are aged 57 and younger bought a detached single-family home in 2012. Buyers over 57 are increasingly purchasing townhouses and condos.

The report also found that among all generations of home buyers, the first step in the home buying process is looking online for properties for sale.

Older buyers are less likely to finance their home purchase in comparison to younger buyers; when they do finance, the share of the home they financed is typically smaller.

Survey respondents cited benefits from working with a real estate professional. Among age groups, younger buyers are more likely to want their agent to help them understand the process as they are more likely to have never purchased a home before. Additionally, younger sellers are more likely to use the same real estate agent or broker for their future home purchases than older sellers.

When it comes to selling, Gen X is the largest group who are recent home sellers followed by both younger Baby Boomers and older Baby Boomers, the Silent Generation, and Gen Y. The G.I. Generation represented less than 1 percent of recent sellers.

Source: National Association of Realtors (NAR)