A Strong Force in the Housing Market: Single Women

The number of single women purchasing homes continues to increase year over year.

While married couples still represent the largest group of homebuyers at 63 percent, unmarried women are buying homes at double the rate of unmarried men—comprising 18 percent of the market, compared to men’s nine percent.

Interestingly enough, single women are also purchasing homes with the lowest household income of all buyers at an average of $65,000. Women tend to view their purchase as more than an investment—placing a high value on the opportunity to make a home truly their own. 

Research from the National Association of Realtors® (NAR) indicates women make significant efforts to achieve the goal of homeownership, with 46 percent reporting having made financial sacrifices in order to afford a home—cutting spending items such as entertainment and clothing. Statistics also show women are more willing to buy entry-level and starter homes.

Women tend to put a higher value on the neighborhood they’re purchasing in—particularly its proximity to relatives, friends and health facilities, while also prioritizing outdoor space. Single women are gravitating toward certain geographic areas as well. According to the NAR, the top 10 metro areas with the highest gap of homeownership rate between single women and men are as follows:

• Oxnard, CA—15%

• El Paso, TX—15%

• Durham, NC—14%

• San Jose, CA—13%

• Colorado Springs, CO—12%

• Jackson, MS—12%

• Chattanooga, TN—11%

• Lakeland, FL—11%

• Tucson, AZ—11%

• Columbia, SC—11% 

Additionally, many single-women buyers are caregivers, as 20 percent have children under the age of 18, and 12 percent purchased multi-generational homes in order to care for aging parents or accommodate children over 18.

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

Search for Homes in Colorado

Search for Homes in Oklahoma

Increased Remote Work Opportunities May Make Suburbs More Desirable

Where people choose to live has traditionally been closely tied to where they work, which has helped push home values up very strongly in fast-growing urban job centers — especially on the coasts — and has led to housing scarcity and affordability concerns in several cities.

But the post-pandemic recovery could mitigate or even produce the opposite effect and drive a boom in secondary cities and exurbs, prompted not by a fear of density but by a significant shift toward remote work. 

Now that more than half of employed Americans (56%) have had the opportunity to work from home, a vast majority want to continue, at least occasionally, according to a recent Zillow survey conducted by The Harris Poll. Among Americans working from home because of the pandemic, 75 percent said they would prefer to continue to do so at least half the time, if given the option, after the pandemic subsides.

And two-thirds (66%) of those employees said they would be at least somewhat likely to consider moving if they had the flexibility to work from home as often as they want.  Recent Zillow research suggests more Americans are at least looking at their housing options. In mid-April, page views of for-sale listings on Zillow were 18 percent higher than in 2019.  

Still, only a quarter (24%) of Americans overall said they thought about moving as a result of spending more time at home because of social distancing recommendations. 

Prior to COVID-19, only 7 percent of civilian workers in the United States had the option to work from home as a workplace benefit, according to the Pew Research Center, though 40 percent worked in jobs that could potentially be performed remotely.

Space Seekers

Many employed Americans are trying to square the desire to work remotely with the functionality and size of their existing homes. Among employees who would be likely to consider moving if given the flexibility to work from home when they want, 31% said they would consider moving in order to live in a home with a dedicated office space, 30% said they would move to live in a larger home and 29% said they would move to live in a home with more rooms.  

Less than half (46%) of current households have a spare bedroom that could be used as an office, according to a Zillow analysis of American Community Survey data.  But that percentage drops off by more than 10 points in dense, expensive metros such as Los Angeles, New York, San Jose, San Francisco and San Diego, where far fewer homes have spare rooms.       

When it comes time to move, home shoppers who can work remotely may seek out more space — both indoor and outdoor — farther outside city limits, where they can find larger homes within their budget. 

Moving away from the central core has traditionally offered affordability, at the cost of time and maybe gas money. Relaxing those costs by working remotely could mean more households choose larger homes farther out, easing price pressure on urban and inner-suburban areas. However, that means they’d also be moving farther from the wide variety of restaurants, shops, yoga studios, art galleries and other amenities typically associated with denser, urban locales. Given the value that many residents place on access to these features, we’re unlikely to see a large-scale rise of rural homesteaders. Instead, future growth driven by widespread remote work opportunities would likely favor suburban communities or secondary cities that offer those amenities along with more spacious homes and larger lots.  

Computing the Commute

Previous Zillow research found renters, buyers and sellers overwhelmingly agreed that the longest one-way commute they’d be willing to accept when considering a new home or job was 30 minutes.  

This new survey from Zillow and The Harris Poll finds those priorities appear to change if people have the flexibility to work from home regularly. When given that option, half of those who are able to do their job from home (50%) say they would be open to a commute that was up to 45 minutes or longer.  

In most major cities, living close to downtown comes at a price. A previous Zillow analysis found in 29 of the nation’s 33 largest metro markets, buyers can expect to pay more per-square-foot for a home within a 15-minute, rush-hour drive to the downtown core. If buyers and renters are not burdened by a five-day-a-week commute, housing in the exurbs, secondary cities and remote bedroom communities may become more viable. 

Still, even with remote work as an option, only 10 percent of those able to do their job from home would consider a commute longer than an hour, debunking the theory that urbanites are now seeking out rural living as a result of the coronavirus.

For more info + data collection methodology, visit Zillow Research.

Related Links

• How to spot problems early in the homebuying process

• 4 pros predict the future of homes post-quarantine

• Renters say they are less likely to renew their lease after the pandemic

• As Talent Goes Remote, Smaller Cities Make Big Gains

How to Spot Potential Problems Early in The Homebuying Process

Finding your perfect next home can be a long and frustrating process. So when you’ve finally come across a home you love at first sight, it’s tempting to rush onward with the buying process.

But to avoid future heartache, it’s important to take a close look at the property and decide whether it really is the home for you. And it’s best to do this right at the start, before you become too committed emotionally and financially. Here’s what to do.

1) Walk Through the Entire Property

Walk through every room in the property, examining each one with a critical eye for detail. Keep a record of what you find, either using a notebook, or by using your smartphone to record you as you talk. This is important. It’s easy to forget about minor problems soon after you see them, although they could later give you serious misgivings when considered together.

What do you like about each room? What do you dislike? Realistically, will you need to renovate throughout soon after moving in, or can you live with the current condition and refurbish it a little at a time?

2) Check the Floors

In each room, check the condition of the flooring. Any problems here could be expensive to fix, so you need to take careful note. If there are carpets, are they in good, clean condition? Is any exposed hardwood straight and true? Are there any loose floorboards or signs of warping? Any flooring issues don’t necessarily need to stop you buying the property, but you need to account for them when deciding how much you’re willing to pay..

3) Look for Water Damage

In each room, check the ceilings, windows, doorways, and corners for any signs of water including drip stains, mold, or damp. Even the slightest sign should be a cause for concern, as fixing a damp or leaky home can be a long and expensive battle. If any water stains you spot look old rather than fresh, ask exactly what’s been done since they formed to prevent the issue recurring.

4) Check the Lights

In each room, turn on and off every light fixture. If there’s a problem, ask for an explanation. While a single blown light bulb is nothing to worry about, multiple blown bulbs or a full fixture that’s not working could be a sign of more serious electrical issues.

5) Check Doors and Windows

Open and close all the doors as you walk around the home. If any stick or won’t close properly, then it could simply be a warped door which is irritating but not too serious. However, if several doors have problems, there could be a deeper structural issue that needs investigating. If the weather allows, do the same for all the windows too. And while you’re checking, look for signs of damp or rot at the base of each pane of glass.

6) Check Out the Heating

Make sure you locate the heating system, whether it’s a basement furnace, a hot water heater, or otherwise. Check the main system for a service sticker, which will give you an idea of how long it has been installed and how energy efficient it is.

If the heating system looks old or is in any state of disrepair, ask for a formal service history before going any further. Replacing these items is expensive and disruptive, and you need to know exactly where you stand before committing to a purchase.

7) Check the Water

Next, check that all the faucets work in the kitchen, bathroom, and anywhere else they’re installed. Make sure they’re free from drips, and that the water runs clean without any obvious pollution. Also check that the toilets flush correctly, and that there are no signs of leakage around them or the sinks, tubs, and showers.

8) Domestic Appliances and Fittings

Ask which kitchen or bathroom appliances and fittings will be left behind. Are they in good enough condition to be useful to you? If not, make sure that they’ll be removed as part of the deal. They’re not your responsibility, and you don’t need the extra hassle when moving in. If you’re happy to keep whatever’s being left, make sure the appliances are working well, turning them on to check if necessary.

9) Check the Exterior

Walk around as much of the exterior of the property as you can, even if it’s just a balcony or terrace. Check for any obvious problems such as cracking in the window frames, which could be caused by foundation shifts. Any cracks or splits in the main structure should be a highly worrying sign, and so should any signs of damp or water damage that can’t be explained by ordinary weather.

Buying a home is a major step and it needs to be taken carefully. While any serious problems should show up in the home inspection or appraisal, at this point you may have become invested in the property and canceling your interest can be upsetting. Follow these nine tips and you should uncover most major problems right at the start, so you can back out as painlessly as possible.

To read more, visit the CORE Finance Group.

Related Links

• Colorado offers $4.1m to cities who use pavement for people, not cars, as part of Corona recovery

• Mortgage rates tumble to an all-time low

• Homebuyers and sellers are ready to return to Open Houses

Mortgage rates tumble to an all-time low

As recession reality sets in, investors pile into bond markets

The average rate for a 30-year conforming fixed-rate mortgage fell to a record low of 3.1%, on Thursday, according to data from Optimal Blue.

It came after a rocky ride that saw rates jump to a one-month high on the previous Friday, the day the government issued a report saying the jobless rate fell in May.

That rosy data – which didn’t give a true picture of the jobs market, according to the government department that issued it – sent investors piling into the stock market and sent bond yields soaring. Higher bond yields mean higher mortgage rates.

Then, reality set in. COVID-19 cases soared to new highs in states like Texas, Florida and Arizona, a few weeks after aggressive measures to reopen their economies.

And then investors read the footnote in Friday’s unemployment report that said the reported 13.3% rate, down from a record 14.7% in April, should have been three percentage points higher.

There was a “misclassification error” in the way laid-off workers were counted, the footnote said, including a “large number” of people who were classified as “employed but absent from work” when they should have been counted as unemployed.

If those people had been correctly counted, the May unemployment rate “would have been about 3 percentage points higher than reported,” the Labor Department said.

In other words, rather than falling to 13.3%, portraying a labor market on the mend, the unemployment rate would have risen to an all-time high of 16.3%.

“To maintain data integrity, no ad hoc actions are taken to reclassify survey responses,” the report said.

Once investors realized the labor market wasn’t as rosy as the headline number suggested, mortgage rates tumbled about a quarter of a percentage point to Thursday’s all-time low, according to Optimal Blue data.

Bad economic news sends investors piling into the perceived safe haven of the bond markets to snap up Treasuries and mortgage-backed securities. That cranks up competition for fixed assets and, thus, shrinks yields.

If you’re a mortgage applicant who locked your rate on the day of the report or shortly after, as rates spiked to a one-month high, you might want to think about calling your lender to ask about re-lock options.

So You Want to Buy a House in Colorado...Your Questions Answered

You’ve heard the stories about how competitive the market was earlier this year.

You may have even been looking and shied away from buying until COVID-19 showed up. Well, the landscape has transformed—in big and small ways—enough that you might start (virtually) looking again, according to the 2020 Edition of 5280 Magazine’s Annual Real Estate Issue:

1. Has COVID-19 cooled the market?
At press time in early April, it was too soon to say how everything from stay-at-home orders to the economic impact of layoffs might affect the market long-term. “Clearly we are in unprecedented times,” says Usaj Realty’s Megan Ivy. But, she adds, “even now, buyers are buying and sellers are selling and we have [more] people in the pipeline to resume those activities.” Many aspects of the real estate market were deemed essential, and others have adjusted. For instance, real estate closings in Colorado require “wet signatures,” meaning that a buyer and seller can’t e-sign, so title companies had to improvise and started offering drive-by and contactless options to close deals. So, in summary, the market keeps moving—albeit at a slower pace.

2. I love, love, love this house. Should I write a letter to the sellers about why?
The short answer is no. We know it was all the rage for a while, so let us explain: Would you ever write a note to a used car salesman explaining why he must, must, must sell you that 2017 Subaru because you dream of summiting all the state’s fourteeners (with attached photos of your yellow Lab to win him over)? Of course not; it’s a business transaction. And, although there are emotions involved, purchasing a home is too.

In home sales, the practice of letter writing has gone out of favor because these missives were creepy at best (why does a seller need to know the middle names of all your pets?) and, at worst, created an opportunity for discrimination. For example, all that detail made it possible for a seller to reject an offer because of a buyer’s race or gender or sexual orientation—or, at least, for there to be a perception that he or she did. “We started to see a lot of litigation in the marketplace,” says Kentwood Real Estate’s Britt Armstrong. To protect both buyers and sellers, Armstrong’s team stopped accepting letters.

That decision is part of a larger push by agents to ensure the home buying and selling process is nondiscriminatory. Locally, the Denver Metro Association of Realtors formed a committee four years ago to look at this very issue, and the group has attracted national attention for that effort.

Perhaps it can’t undo the effects of generational racism in the housing market, but it facilitates conversation. “We thought if we formed this task force…we could be another voice in the real estate community,” says Re/Max’s Lisa Nguyen, who serves on the committee. “We can give education…[and] we can teach people about fair housing.”

3. I’m ready to find the perfect house. Do I really need to use a real estate professional—or can I DIY the entire process?
For you industrious types, no, you don’t need a real estate agent, a broker, or a Realtor (a title that indicates a special membership for agents who help people buy and sell homes). You can absolutely sort through the listings, find a lender, plot out open houses, and research to make sure the deed is clear from liens or levies. So, yes, you can DIY your home-buying project. But just like you can DIY a bathroom remodel by tearing out counters, replacing the fixtures, and grouting tile, perhaps you don’t want to spend your Saturdays that way. In a market as competitive as Denver’s, a professional can guide you through what is a labyrinthine process—and help you avoid the equivalent of that fourth trip to Home Depot for the right grouting tool.

4. Can I buy a house without contributing to displacement or gentrification?
Probably not. At least, that’s what Mary Kate Morr has learned on her house search. Morr grew up on Denver’s north side and fondly remembers a childhood in a tight-knit community, learning in diverse classrooms where she, as a white student, was often in the minority. Now back in Denver after graduating from college, she’s dreaming about buying her first home and wants to live in a neighborhood like the one in which she grew up. And therein lies the problem: The more she thinks about investing in a property, the more she wonders if her future purchase will contribute to gentrification.

Morr’s not the only person asking; brokers are hearing similar concerns from buyers who want to make sure buying their dream home doesn’t irreparably alter the character and fabric of a neighborhood. Megan Ivy, who’s worked as an agent for Usaj Realty in Denver for five years, says the question comes up frequently—and doesn’t have a simple answer. Says Ivy: “A lot of people who don’t want to contribute to gentrification may not be able to afford homes in neighborhoods that have fully transitioned.”

Broker Regina Jackson, who co-founded Race 2 Dinner, a group that hosts discussions about race and white privilege, says that she too has had conversations with clients and friends on the topic, but she believes the solution is bigger than one real estate transaction. “I don’t think it is an individual problem,” she says. “I think it is a government problem.” Local and state politicians, for example, could work to preserve affordable housing and incentivize developers to build more. Solutions could also include requiring developers to build more units at a variety of prices and looking at every aspect of real estate transactions to ensure that discrimination doesn’t occur.

In the meantime, Morr is still searching for answers. In response to her queries, she’s received advice that if she does buy, she should get to know the neighborhood, learn its history, and support its businesses and individuals. Which, after all, seems like counsel we can all use to be better neighbors.

5. Are fixer-uppers worth it?
Not so much. That’s not because finding and fixing up a home that just needs a little TLC isn’t still appealing; we like home improvement reality shows as much as you do. The problem is that escalating sale prices and rising construction costs across the metro area are making potential fixer-uppers (as well as fix-and-flip properties) difficult to find. It’s a sentiment echoed by others in the industry. “The spread just isn’t there like it used to be,” says West and Main Homes’ Stacie Staub. “We’re not seeing the fixer-upper [on the market] that DIY-happy millennials can get into.” Plus, more and more buyers want the work done before they buy a home. “HGTV has totally changed buyers,” Kentwood Real Estate’s Gretchen Rosenberg says. “When buyers [look at] a house, they want to see what they saw on TV…. Giving a carpet allowance doesn’t work anymore.”

If you’re thinking about buying a Colorado property, or selling one, we’re here to help.

Related Links:
Would you buy a home sight-unseen?
Listing + Selling Your Property During a COVID Stay-at-Home Order