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Real Estate Today 9-10-16

Sep 11, 2016|

Opening doors for buyers and sellers with critical and credible information on the real estate market. Fast paced and fact packed with experts, interviews, call-ins, field reports, and timely market conditions.

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This it's real estate today. The number one real estate show on. The radio. Welcome to realistic today. Backed by the professional experience of real tours from across America we are you most trusted source on the radio for help today real estate information. Realistic today is presented by the national association of real tours and it's real for members in your neighborhood. Hi again I'm Stephen gas play and we have a great show for you today millennial it's the biggest demographic group in America. Which could make big things for real estate all across the country. Today we'll find out what they want to how they're paying for and what you can do to market your home to this up and coming generation. Millennial is straight ahead. But first let's go to the real estate today newsroom with Bill Thompson I know I Stephen what is driving the strength of the US housing market. Stephen being executive managing director of real estate advisory firms cite us. Tells cctv America that despite occasionally mixed data and on going global instability. Encouraged. Wage growth that is starting to catch up with the home appreciation willow bit I think there's beginning to be a little more inventory on the market. Initially we had a lot of international buyers and they sort of slowed down so it's given them a bit more inventory back to the guys that are getting the jobs and and have wage increases. And being does he does not think the federal raise interest rates in September in part because it's historically unusual to see rate movement just before election. The Federal Reserve says demand for residential real estate loans surged in the second quarter of the year compared to the first quarter. The Fed's latest senior loan officer opinion survey on bank lending practices found that demand was all are up substantially for home equity lines of credit. The Fed's survey also found that. Banks reported that lending standards generally remain tight. Some of them had tightened standards on sub prime mortgages but ease lending standards for mortgage loans eligible for purchase by Fannie Mae and Freddie Mac. The tide may have turned really comes to the size of new homes in America. The size of the typical new single family home shrank slightly in the second quarter according to data from the Census Bureau analyzed by the national association of homebuilders. The decrease is modest the median single family homes area dropped. 73 square feet from 2465. In the first quarter to Tony 392. In the second. New home size have been steadily rising though as builders focused on the higher end of the market during the recovery. The realtors relief foundation a sending up to 350000. Dollars to help flood victims in southern Louisiana. The deadly flooding that some experts are calling a thousand year event has damaged tens of thousands of homes and a number of business. And only about one in five Louisiana Holmes is covered by flood insurance. The realtors relief foundation was established by the National Association of Realtors in 2001. Coming up on half an hour. My prayers watch in the garden Stephen back to you thanks bill. Today we have the latest information on commercial real estate from office buildings to shopping centers to apartments. The national association of real towards projects that in 2016. Commercial real estate will experience. A slow but steady recovery. With fewer vacancies in office retail and industrial properties. Residential properties though might experience an increase in vacancies. By the end of the year. That's from NAR's latest quarterly report the commercial real estate outlook. Let's talk about that now with Paul bishop vice president of research at the national association of real torched. Paul welcome to realistic today. Well Paula starting with the big picture it appears that commercial real estate is looking pretty good overall. With most areas of commercial filling up those rentals can you tell us about that. Well I think a key factor serious. Underlying all good news about commercial real estate sectors of the economy continues to move forward urged parents quickly as we are bright but still were having jobs offered simply credit 2.3 million jobs in the last twelve months and consumer spending and the result developers are building new retail and office space. The end all of this is time wrote we will interest rates went from an investment perspective commercial real estate is also attractive the most investors willing to commit their capital and new product as well. Nepal that's really interesting because it provides yet another example of how real estate of all types. Is so closely associated. With jobs and we're seeing that in this report as well. The other indicator of growth period in the economy is really jobs that a lot of good things implement when you have the internal growth. There's Richard Reid and and it 2.3 million dropped minus twelve months to open no further pare their total gross to about seven and have we jumped over the last three years. So on your most key support. It's really common of course I don't. Americans who are good are spending their incomes don't. Sport consumer spending overall in their course aren't we need to retail sector even when we are being taught. I'm sure to retail store first opened somewhere so there's a lot of demand for commercial real estate based on net reduction of almost Newton should be warehousing so. All of it really is crucial in terms of depending on the economy in key to that is the piece to our growth which has been pretty solid of questionable here. So Paul with commercial we're talking about everything from the offices you work in to restore shoe shop and to the companies that build the products we always use in it appears those areas will do well in 2016. So really commercial real estate is a big part of everyone's life in America. I think. They're exactly right I think it's often under appreciated the role of commercial real estate when he's. We think about the growth in the economy one of the things that results from their course demand for new office space as we hire more people. And consumers spending for American drivers a lot of what's going into retail area and that industrial and we're prospector. So I'm you really used to it pretty significant portion of the economy and a it's something we need to keep an eye on creature that commercial real estate that you prepared to over the next several years in ticket management street receive the economy. Absolutely now Paul of course also. Commercial real estate is all about apartment. And a new report says those properties might experience. Slightly higher vacancy you know why is that. Well we have seen over the last several years he tremendous demand for apartments. In so builders have been not constructing multifamily buildings that are pretty stiff equipment correct. The number of Vermont determined start right now is there to its pre recession won't have been for a few quarters soaked saw a lot of building in the multifamily sector. India oversight of their ideas with small mortgage rates only. Almost often more attractive to come here he's been renting until the respond shift in terms and the desire to speed corner vs Serena turned so there may be some slowdown in the multifamily sector but you at this point and then there's going to be real. Recent concerns and we're just being only slight increase in multifamily Pete and Pete is even demand for our continued to decrease our own pace. Oh that's good you know thought anytime we talk about commercial real estate we also talk about financing in so often. People in commercials say it's hard to get the loan now how about right now is the mortgage money flowing more easily in commercial sectors. Don't we ask real truth about their mutual concern wanted to it acquires commercial real estate market. Don't you do would be to get premier and seeing new availability financing and among the top concern and has been for some time now so you know especially in the midsize and smaller markets where buyers and developers could not reach and community banks booty get community and really didn't return don't cheap lately. You know lenders continue to be very cautious moderate expand point that there are also under pretty intense regulatory screw deepest point so. Don't bet to determine of course from 200 perspective. I guess there's the risk period if underwriting is too tight we could reach around most insignificant couldn't understood very slow down to the commercial real estate sector and of course that's one of their major sectors that top export growth in the overall economy that we mentioned the political spoke. You know Paul another really interesting finding from the commercial outlook report. Is that in some areas smaller market are leading the growth in commercial real estate can you tell us about that. There's similar strongest growth we've seen you mentioned has been in smaller markets and these who also happens you were markets where I'm most realtors do their business. So your mom and a smaller market. There are often it would expose some porn weakness that we've seen over the last couple years. Second you assume the smaller market trough some you know attractive option real estate investment that you care for children somewhere prior and so there is an attractive investment. Aspect to them as well. I guess when the final thing signature and even there there are the number of inside the small market there's also an opportunity to diversify. Investment across number characters and number geographies that thinks that. And smaller markets attractive as well from an investment standpoint as well as tremendous buying leasing standpoint. Interest during. So Paul all at all Doug Goodyear for commercial real estate in the US are. It really doesn't beer and do a good year. The commercial real estate and I think even more importantly I'm. Real estate and could help our growing economy toward likely willing to 2070. We want to make sure that that we're real estate. Specter remains healthy and can take advantage of the economical participating in the next couple years. It sounds good Paul and I really appreciate you joining us could you. You're welcome Paul bishop the vice president of research at the national association of real torch with the latest commercial real estate outlook for 2016. Coming up on realistic today we'll go to Chicago and find out what the millennia hills are buying there. It's young professionals that are caught up in their careers may move then it has to be really pretty neat and clean in just a place that's next on our special show. Malulani else. Real seat today. Because knowledge is power. And we're back put our special show about the biggest demographic group in America. And how they're affecting realistic. May be your realistic. And of course we're talking about the millennial it's a huge group of young people eighteen to 34 years old. A generation who want to buy homes but who were facing some big challenges. Including student debt and low inventories. Today we'll talk to real tourists from all over America about what the millennial homebuyers want and how they're getting it. We'll begin in Chicago where spoke with ma bell Guzman real tour with our properties and the former president of the Chicago association of real torched. Are met up with the go ahead and NER conference and asked her what's going on with millennial. And real estate in Chicago. What's going on is they're struggling to find housing in a couple area wind it's not only in Lee in that in purchased. And it's really an impacts not only on the inventory levels which are dramatically low. It's also just out there finance situation some points or two of the was struggling with student loan debt they really have a lot that they're bearing down on. I know we're noticing that they're making home purchases. Are being delayed by them. And they're seeking a little more strategically. I have too much stacked. So I need to wait then they want to rent and the thing is in Chicago. Rents have gone up 30% in the last 24 month. I have a lead millennial who'd just contacted me. And said their rent increase is going to be 600 dollars. It is enormous and they we gotta get out here we got by some things. But they know from what their experience and marketed. You he would one day the next day it's undercuts that oh they gotta be quick they Eddie asked. And they're looking for cost savings that's the other thing they want to save money so when they're seeing rents. Coleen at that level there it just doesn't make any sense anymore. On our side they're looking for a deal right so for that axis transportation. A big deal. Because they wanna be fluid it might be able to get around or not they drive everywhere. Ma bell said it's a generation that really wants to buy. They're not just kicking back in saying that forget it. No they really do wanna buy this generation's not kicking back in any way with the generation feels that maybe that they're getting kicked. Based on the debt that they have especially student loan debt and they really want some relief to their old hoping. You know legislators actually make admit I am very proud of Sonny are addressing the issue of student loan debt and how it impacts housing. NN errors identified seven bills that could make a difference in these young people's lives. She also says millennial do have some strong factors in their favor. Interest rates are low mortgages are easier to get in today's market with FHA at three and a half percent down. And Fannie and Freddie both offering 3%. Down payment options. It is in their favor but there's still wracked with answered my dad because it counts against them. So it's going back to good policy which good policy then lends it to good housing landscape. For people to purchase actually from airline meals but. As we know many members of the millennial generation are biting homes. They have good incomes good savings and good credit scores. Which are sometimes enough to qualify for a home alone even with student debt. So for those who can buy what are they looking for. I think there they're looking for what everybody who supported stint in at IT bedrooms two bats I mean they want. They don't wanna have to do going to place a lot of work into it either they don't have that kind of time. These young professionals that are caught up in their careers when they move than it has to be really pretty neat and clean and trust just to play. Oh really sellers. I wanna eighty you replaced a duck get it ready put some money into it. In back into selling book of that when millennial see it the accident upon on it. So what Kenneth Allard do to make a millennial buyer just light up. Hot staging its gonna go along way so hire professionals teacher worked with your real tipping it find someone for you to help you with that. Walks through T clutter it's got to look for team you know acts in pop that collar there's a lot of things that you can do painting expressing an up. Don't say oh this is general Wear and tear to at a rental you're selling your home. Let's put our best base or the like dates for these people they're dating these properties are and what I mean acting like they're aging. They're dating like OK let's see if I can fall in love with the contact with the property. And how about tack if the home I'm selling has lots of Smart home devices and it. Will that help bring in a millennial buyer. Yeah they they may notice that it's something that is useful to them it can't be Alec tapped to be tacked. So like next right which is a great app apparatus. That controls. The heating in your home and meet and connect your home earlier away right it's about an activity and that's what they're. And last but not least I asked my bell Guzman will 2016. Be a good year for real estate in Chicago absolutely. Rocket and Roland. Coming up on realistic today. We'll talk to members of the millennial generation about what they want you know home of their own. A mature Nasrallah and house Negroponte and his anger hopefully one day in my hand it townhouses that actual single family home that's coming up on our special show. Millennial. But first it's time for. The millennia ago. As we've been telling you what today's show them what meals are the biggest demographic group in the country and potentially. The biggest group of home buyers ever. So let's talk real estate now with a genuine member of the millennial generation joining us is Jayne dollar injure hi Jane. Hi Stephen thanks for having me glad your here change so works on your plate today. Well I am so happy to be here on millennial day. We've taken over the show. And next we'll do an entire episode in nothing but hash tags an Internet landings so. Millennial left TW okay so what FTW. That is for the win even I should've known and hit it well what I want to talk about today is actually something that I haven't really discuss on the show. And it really is a quintessential millennial experience. And that's student loan debt. Now according to an air profile of homebuyers and sellers. Which might note is having its 35 anniversary this year meaning that the profile at health as a millennial. EP 3% of millennia only non homeowners. Say that student loan debt is the main factor delaying them from buying a home it impacts there ability to save for a down payment because any extra money. Go towards paying down that alone. In the typical amount owed is 25000. Dollars and it takes on average more than a decade to pay off. And a bit we all know people with a lot more student debt and now it's a big problem follow absolutely I've met people with. Nearly a 100000 dollars in student loan debt amazing and it's something that affects every single choice young adult makes. People money away for the future or do you pay off that loan as quickly as possible. Do you move out on your own or did you with mom and dad while looking for a job. Have a huge financial responsibility hanging over your head for many millennial to delay many of those adult milestones. And buying homes seemed to be on the top that list for many of us. And unfortunately this home based on decisions that were made at seventeen or eighteen years old. A new study from Anderson banks is that 57%. Of millennial. Regret how much they borrowed and more than a third said they mean haven't even gone to college if they had fully understood how much their education would cost them. We know Jane any errors working hard to get a bill through congress that would ease up on that end. I hope they're successful at that. My millennial co cork is cheering on from the sidelines. Thank you Jane. Jane dollar injure a genuine member of the millennial generation Jane thanks for being with us today I think he's. Even and if any do you have questions that believe millennial cancer. Please send me email at ask someone new at RE ET radio dot com. And it's possible I'll answer them on the air. This is real estate today. 100%. Real estate 100%. Of the time. And we're back with our special show millennial it's all about the biggest demographic group in America. What they might mean to realistic in what they might mean to you and your property. We'll talk to millennial to find out what kind of homes they want. And we'll talk to real towards across America. We're helping them by their homes millennial XP is straight ahead right after we check in with Bill Thompson in the realistic today newsroom hi bill. Hi Stephen. Boulder, Colorado is America's fastest growing housing market. Also experts at 24/7 Wall Street who analyzed data from the National Association of Realtors to identify the fastest growing markets in the country. NAR's data reflects changes in the past year to the median single family home price by that measure boulder is number one. Home prices there rose eighteen and a half percent in the last year. Other fast growing markets include Elmira, New York Springfield Illinois port saint Lucie Florida and Cumberland Maryland. Some eyebrows were raised recently in Portland Oregon by a real estate listing that included a photo of the garden. Clearly showing the marijuana plants growing there. Now in Oregon it is now legal for individuals to grow small number of pot plants in their own gardens. But Joseph DiMaggio a real estate agent and consultant in the marijuana industry told Portland's KG WTV he doesn't think there'll be a lot more such listing there's. Really not a ton of value in I'll be able to advertise via growing in your home if you have a place in sound yes you. Or commercial found innocent value because then someone might be able to potentially get a recreational lessons there. Under organs marijuana law individuals are not permitted to use their marijuana plans to increase the value of their property. The standard for amused by borrowers to apply for a mortgage is going to be changing. Fannie Mae and Freddie Mac have announced a redesign of the uniformed residential loan application the first and over twenty years. It's going to be an easier more consumer friendly application Fannie Mae says with a new play out simplified terminology. And you did the field including your email address and mobile phone number. The new applications will be put into use until January 2018. But Fannie and Freddie are releasing it now so the industry can get up to speed was that before the change kicks in. Milan eels are twice as likely as their baby boomer parents. To take out a home equity loan according to a new survey. The survey commissioned by discover home equity loans reveals that among older Milan meals those ages thirty to 34. Half have used a home equity loan compared to only about one quarter a boomer. What do they used the money for. While boomers typically spend on home remodeling and debt consolidation. Older my lentils are much more likely to take a home equity loan for a vacation emergency cash. Or a wedding. Coming up and half an hour more talk realistic news. Stephen back to you thanks bill. On today's show we're talking more lending hills and realistic. And you know if you really want to find out what members of the millennial generation are looking for in a home you need to ask them. So our national correspondent meg McCloskey who is herself a member of the millennial generation took to the street and Saturday talking with potential homebuyers. In the millennial generation. Primary. Hi CNN. Homeownership rates among those under 35 in particular are at record lows for a lot of young people the thought of phoning home still seems far away. But it homeownership is still on the table in fact my the people we talked to use and it was a goal for them. It is a ways off. Mean he's a timing thing I just graduated from under grad in May well. That's really hard to say to me simply firm where I am in life it's something that I would like to you at some point but it really is so far off that I am not catcher. That's Allison a 22 year old from Virginia was starting to navigate the real world but first things first. What does she need definitely a permanent job that I am happy listen and we'll pay the bills so that's a big first step. For some and is just graduated from college people my age are more likely to have multiple careers and move around potentially more so it's easier Chu a putt off owning a home permanently until you have some security and that. He's a point Sam a 22 year old from Maryland. Number early in my career semester what's had been shown again and sure it's a good job aware that job might be. So I know exactly what I wanna do because oh run and purchase a home where I'd be their for a long time vs France where it's quick Jim I don't know some of them do feud year. That's a good cop especially because he'd just found out that he's relocating across the country for a new job. And who knows if it could happen again that uncertainty about job status can definitely put a timeline for buying a home. The other big concern. Money. Every Melanie I talked to is worried about money including Bridget a young professional just starting her teaching career. She knows that money's going to be tight gas and Emmitt teachers. That's I have to appoint me I have some time to worry about that but. Hopefully one day might have to count thousands of an actual single family home for some millennial owning that ideal home right off the bat seems like distraction. Mean aegis of far off distant fantasy traded him to weaken magically afford it. But what does it really means what is it that we millennial are looking for and a dream house. Major amounts throwing house Negroponte when I was younger. I mean I know of course his I love the house I love the location I love living in US can actually be great place to raise kids my friend you aren't plain flour expect a turnaround and announced face her you know mom and dad and kids and everything like that. Very interesting. Maloney a want to live in the home and brought them or one like it. No wonder so many young people are living in a moment their parents. Are we looking for. Ever had a nice yard and outside patio where component grill. Kicks in that's really up today's engines bats and good location and it is definitely most important to me open floor plan. Plays for a man geez how wet floors there around definitely have a pool at its house back there are all the top of the lagging fan amenities had a yet. A lot of the features of the dream homes seem to be proved he's lofty goal huge space is expensive finish is. Heated tile in the bathroom. We do have good taste don't worry. But we aim to throw those ideas out the window if we're renting rather than owning. Iger app and then they house then coming from New York get as I had a yard and now that I'm in the workforce might well a lot of that's really expensive stealing your and then. Renting right now. Just more practical I didn't think that. I do you stack space not bet I mean the house is not old dad and my eight is as beautiful and like new diet be close Eric's mark you are my age and meeting new people that but the big teen. It's millennial want it all. Even with the uncertainty about what's next where holding onto the idea of one day owning that dream home. A dream that is largely inspired by our childhood home. Maybe it's nostalgia. Maybe it's what were you do and what we've grown to love. For now will make the sacrifices and I need be immensely unit knowing where young and we're just starting out but Sunday. We will own a home of our own meg really interesting report now did any member of the millennial generation you spoke to. Say no they never planned to buy a home ever. No not a single person. We don't want to buy a home someday. Coming up unrealistic today. Millennial. Investors. Gear looking at getting kids there really sixty year old Sam Young kids clothes that's straight ahead. On our special show millennial it's. Really easy today connecting you with real estate professionals. Every week. And we are back where their special show millennial it's. All about the biggest demographic group in America. And what they mean to realistic it may be your realistic. And right now one of the most unusual and frankly one of the smartest. Things any millennial can do in real estate and that is. Investing. Investing at a young age it's happening all over the country. Recently and and they are conference I talk to real torch carrying Sanchez with the high desert association of real towards near Los Angeles. And she told me about two of her Mo Lenny your client who car. Real estate investors. You just told me you know some millennial investors. Don't tell me about well they eighth spot their first house when they were twenty years old. They're now 21. And they are selling the first house that they pot. And him are they making a big profit. No I'm not making a big profit but they're putting money in their pocket. They're very Smart kids. And they paid down their long quite a bit so they are. Tomorrow's. Major real estate investment. Yes yes and these two I eight I tell people you know you you're looking at young kids that really they're in out there really sixty year old sand in young kids clothes. Now how are they learning bits how they discovering the art. Of buying property and selling for a profit. Well we talked a lot. And we look at a lot of properties so we eliminate a lot of things that won't work. So you know that's so this is trial what air bet we're messing with their money so you know we we talk about. You know we bring contractors and am really where is the profit and they know that profits on the by not on the south. So when you think about hot markets in the United States you obviously think about California. Are millennial is making a big impact. In your market. Well millennial Canaccord pie in my market wind in your average sale prices under 200000. Dollars it isn't affordable California market. In DC a lot of money was coming in to make their purchases that I I do I do where packed commuter area. And so. People who don't know where your commuters. I'm Tim that LA Orange County metro basin. So if you were to give advice to millennia holes in that not only California but other parts of the United States as well. What would you tell them about realistic. I would tell them to make an appointment with a Linder and figure out what that they need to do in order to buy a house what kind of debt do they need says stay out up. And maybe pay off student loans you know do they need to open up lines of credit. And you know forecast. When are they gonna be ready to buy a house and yet but their ducks in a row ahead of time. So they should get there. Financial house in order before they start anything. I'll absolutely absolutely sit talking to a lender I hear ahead of when you're ready to buy is a really prudent thing to do. And then when do they talk to their realtor. Well they should be talking to the real terror right now right now. Is this a good time to buy it's absolutely a good time to fight I mean we get it you know I wish I had a crystal ball to see what. What interest rates were gonna do about interest rates are great right now and if they can get into the market it's. They're not going to be a rancher so five years from now they're going to be building equity and not paying rent they need to get in now. And if they do this during their millennial years by the time they're. All move folks. Bigger to have some serious household well. Right hopefully they've Mountain Dew wet sum up my friends have done and every fight their house take dollar equity out hopefully they'll work at it and pay it op. So that they they have a home it's paid off so that they can't retire. That's Karen Sanchez real tour with the high desert association of real towards near Los Angeles talking about. Millennial investors. Coming up on real estate today. Millennial it's gen X Ers baby boomers what each generation means to real estate in America. That's next on our special show millenniums. If you love listening to us talk about real estate joined the conversation. I'm really see today's radio on FaceBook we can't wait to hear from you. That's real estate today radio on FaceBook. This is a real estate today. Location. Location. And information. And were not put our special show millennial. On today's show you've heard me and many others say it again and again. Maloney ovals are the biggest demographic group in America. But that may surprise you since it's a relatively new development. So I thought we should wrap up this hour of the show with a look not only at millennial but the other generations in America to. What the numbers are and what they mean to realistic. OK let's start with colonials are they officially became the largest demographic group in America. Earlier this year. The more meals were born between 1981. And 1997. And according to the US Census Bureau there are now slightly more. Then 75. Million members of the millennial generation. So with those numbers could they really changed the face are real estate in America. Create a bonding surge like never before. Well yes but it's not happening yet the National Association of Realtors says. Many mower wheels are postponing homeownership because of student loan debt and rising rent. That makes it harder to say if the result first time buyers used to make up 40% of the market now 32%. In fact the Pew Research Center says 39%. Of colonials. Are still living with their parents. But even so they want to buy homes and if they can they do. Seward you watch real estate the millennial generation is one to watch closely. The next biggest group of Americans. Is the baby boomer generation the people born after World War II specifically. Between 1946. In 1964. There are slightly less than 75 million baby boomers. That's close but not quite as big as the millennial generation. The boomers for the most part already own homes. Freddie Mac reports that the baby boomer generation holds close to eight trillion dollars worth of equity in real estate. That's nearly two thirds of all the real estate wealth in America. And they are reports about 40% of the boomers plan to buy again. So they are another huge force in American real estate. In between the boomers and the millennial is the group of Americans born from 1965. To 1980. They're called Generation X. or gen X Ers. The Pew Research Center refers to them as the middle child of American generations. You also notes that gen X is a smaller generation for two reasons one they were born at a time that Americans were having fewer children. And also they're generational band. Is one year shorter than the millennial it's so they are somewhat smaller generation but the real estate implications of gen X. Is still huge. After all as any our reports they're in their peak earning years through the most likely to be married and most likely to have kids in the house. They also buy the most expensive homes and the biggest tomes of all the generations. No of course it's not just all about millennial jet actors and baby boomers. Her older and younger generations to. But the vast majority of real estate transactions happen among one of those three generations. Each with a different realistic dream each with different amounts of income savings and equity. To make that dream come true and if you add them all they are real estate in America. A fascinating patchwork quilt our view and meet our neighbors our friends and our homes. So again it's not only about millennial. All the generations in America play a big role in real estate from coast to coast. Now we'll talk more about the generational trends in real estate in the next hour of real estate today. As our special show. Millennial. Rules are. If you'd like to hear more of realistic today's special show millennial. Either stay tuned for joining us online at our ET radio dot com. From all of us here realistic today thank you we're listen. You're real parents and you can put the entire real estate today show on your web site. The best real estate show on the Radio One 100% free to any our members. Just go to RE ET radio dot com and click for realtors. This is. Real estate today. The number one the real estate show on the radio. Welcome back to real estate today. Back part of professional experience of real tours from across America we are your most trusted source on the radio for up to date real estate information. Real estate today is presented by the national association of real torch that is real tour members in your neighborhood. Hi again I'm Stephen guests weigh in we have a great show for you today. Millennial it's an entire program dedicated to the biggest demographic group in the country. They're young. They have money and many of them want to buy homes maybe homes like yours. So today we'll find out what kind of homes they want and how they're getting them. Millennial. Is straight ahead but first let's go to the realistic in a newsroom with Phil Thompson I know I even. Mortgage delinquencies rose a little in July according to black Knight financial services but the firm shows. It's seasonal uptick its calendar thing black knights says months that end on a Sunday as July did typically see an increase in non performance. And that's typically followed by a decline the next month. Year over year Blackbaud says the delinquency rate is down. With new home construction still lighting and few starter homes available one real estate expert says affordability of inventory is driving the housing market now. And realistic attorney Sherry olds and tell CNBC its new home prices will likely keep rising as the cost of construction keeps going up. It cost about 40% more to build a new home now about 25%. Of that goes towards regulatory took its tight cost lake but impact fees and things like that and those things we need to just except as a reality I think at this point seven years yeah into the recovery. Olson says the need for affordable units rental and to own is about four times the supply. The number of single family homes built for rent is rising. But the chief economist with the national association of homebuilders reminds us not to jump to conclusions. Robert Dietz does the build for rent market there's a small portion of the overall single family development. So he says care must be taken when identifying trends homes built for an made up about four and a half percent of total new home starts as a the second quarter. The historical averages two point 8%. The national association of home inspectors. Is no more. The group announced last month is going out of business its members are now members of the rival American society of home inspectors. Frank lush executive director of Ashley does the combined membership will quote give homeowners buyers and sellers throughout the US and Canada. The opportunity to work with a ashy inspector. As she now has a membership of more than 7700. Coming up and half an hour why drones are about to take off from home sales tool. Stephen back to you thanks don't. We're continuing now with their special reports on millennial spike talking with real towards all across America. About what the millennial generation once in a home. How they're paying for it and whether they can actually buy a home. If they're under a heavy student debt load. Recently in an NAR conference in Chicago I spoke with real tourists from all across America about what's happening in their markets with the millennial generation. Let's begin with Linda Ryan burger real sore from Las Vegas. Who says in her city. Millennium traffic is. Very heavy. You know you don't hear about Las Vegas and it. Millennia olds in the same breath too often are you seeing a lot of young people buying or trying to buy in years ago. Thank goodness he asked because our rental inventory. Is so tight. And those prices are so astronomical relative to last past years. That they're figuring out the cost of money is very low. And they can own a house. Change tax write off and deck control their destiny better oh yeah I am personally working with millennial. And love that part of my profession. Is you've got to bring them welcome them and the poll and let them know about the joys of home ownership is it a big part of your business. Since I am a referral agent only at this stage in my career I'm getting his second generation buyers for millennial. Guys great. So the kids of former Klein absolutely. Good for you so what are they looking for Linda what kind of properties to be one abide. They want to buy as much as they can afford which is interesting. Because of the inexpensive money as far as mortgages are concerned. And they want to have what we would normally in my generation look at is and what about home they want that right out of the gates felt. So not a starter home but their second home First Act exactly and I think that they can. Bill and seeing that they're young couple. Knowing that children are in the horizon and rather than making no cable will stay in a song for a few years they're looking at a ten year home. And next it's on to Washington DC we're real tour Brenda small talk to us about what millennial walked in on home. What is the millennial buyer. Looking for in house. It's a great question. They're looking for value a valued packets and that doesn't mean cheap but the looking at what's the price per square foot. What is the condition and does the condition meet expectation of the price at the seller's asking. To go look at aren't all around good package the amenities a walk the ability these days is critical at your in that the urban area. Internet high speed five bars on their phone does that stuff matter. It does a I think again for the meals it's about a a good package steal layup will always tell my buyers you can get about 80%. Of what you're looking for. You've got a really good package. It's we hear a lot about student debt. But you sell two millennia notes. How are they doing it do they have money saved up are they getting gifts from their parents. That's another great question because we are fine. Finding that many are receiving gifts from Paris so business is good is the millennial generation a big part of your business or just a little part. He's a big part it's funny the majority of my business really gets. I've continued to work the first time buyers again from way back. And I find that they are still coming out between that twenty to 35 age range and so they know the value of owning a home and they are buying. What are they looking everything. I again I think they get it they're going to be in the city they're looking for proximity. So all the amenities the rest of box the cafes. That fear there the bike trails the walk ability. Interestingly enough I just sold the home in the sought area about Washington DC which is in their Howard University. Mike byers had lived there since 2001 I sold it's about to they were loyal to me for fifteen years. Of course Dallas is eight young. Market. Of course most of them like more urban living here. But definitely they're big part of our market and now we have a lot of millennial buyers out there. We hear that millennial buyers are challenged by it. Home affordability. And student loan debt. But apparently they're managing to buy properties in your market so how're they doing it are they getting gifts from their parent what's going on. Well there are some that are getting gifts from their parent there are some that are getting -- tiger that they and their parents or other Stanley the earth our friends that are willing to do that and then of course there's some love I'm nick Akron with good jobs and they're able to afford their own couch when it combined you know income together certainly your options are greater should show that you're you know have a partner or Palestinian house or ability to be allowed to purchase a place to live and call home. When a millennial goes out looking for a home. What are they looking for. You don't look for the millennial prefer. More simple why you need be then what I. Looked for what I was their age they like more contemporary thousand lock ability of course that love gadgets. But you know you probably figured that out I know that we'll let you know all about it. But I think they'd prefer to cheated what they want their home than to lock in and how what to expect. They liked to have everything close to where they left. That cleaner than bank everything. A lot of them don't have cars that rather walk and ride their bicycle. That's just fine without. And when a lot of cities have light rail all. But sit down and first subway it would downtown. To bet that mode of transportation a few more and more I'm millennium all been made. Any other generational group that we've seen in the tasks in a court serve more people than there used to be their salaries. More people could take that kind of transportation to make short while much they want convenience. And they want simplicity. But he'd do love technology. Three cities three real source three firsthand account of what today's young buyers are looking for. All across America. Coming up on realistic today. A national survey of millennial homebuyers and what they want. These are very he would eat eat eat at 35 years old Regina home ice arcade. And actually the largest generation home buyers for the third in the year. That's next on our special show. Millennial. This is real estate today. Because it's not just a house it's home. And we're back. Where there are special show millennial just all about the biggest generation in America. And as we say often on the show potentially the biggest group of home buyers ever. But here's a question if the majority of the members of the millennial generation. All decided to buy homes. What would that surge mean to American realistic. Let's ask an expert joining us now is Jessica let managing director of survey research at the national association of real torched. Jessica welcome to real estate today. Jessica it seems that always hear about in all we read about in realistic these days. Is what the millennial are going to do elect me I'm the person who knows. What are the millennial was going to do. Well I certainly can't speak for all millennial because millennial happened Spiegel largest generation in the last eight surpassed all of BP they emerged as being a large generation it's the largest generation he liked about her speech but I can't tell you that they are out there in the home buying market and not. Partly due to their. I BER Barrett she would be eighteen to 35 years old could be home by archaic and actually the largest generation at home buyers for the third can act. Can it be year. So let's talk about that for a minute everyone's concerned about whether or not the millennia o.s are going to inter the real estate market. But again as you just said there in it. They are they are absolutely at and we actually starving at a month they'd beef that. In our homes are eagerly adequately because we ask Brad church or are able to illustrate our perhaps as dramatic a bomb and that and our deep and Brad change. If they do you wanna I don't know on the future and AT. And its content and and it actually higher. From millennial and it is our other generation. There are ticket island generation or someone in the eighty your return rationing is currently renting they plan on tape and take they would like to spread it homeownership. I'm more likely they're going to Abrams tank but our millennial there are optimistic but their condition will changed but their income on proved that don't want just paddled out and I. They do face some real challenges student loan debt and rising rent which of course makes it harder. To save up for a down payment for those millenniums who are buying homes. How are they doing it. Sherrod that there really good question because millennial especially a lot of pat what a lot of hurdles to overcome they have more student learned that aura and has student loan debt and it. Higher amounts and past generations. How the affordability to the problem and brightly Brad there it's just hard to topple it money into your eating tree down payments and their clothing costs when year. Having that much more correct. I will speed Eric that coach you are buying their incomes are higher than what repeat impact years that AG have any appointments. And many of them are actually married or their unmarried couples that are able to have dual aren't our. It even knows who did purchase a home in the last year 44% of those millennial Q after it mind that exit on the honest when he act out. It's not a small amount Pena. We're looking at their generation has a binding force in American real estate if that number. Our first time buyers. Went from 32%. Word is now back up to his traditional level of 40%. That would be more than a surge that would be an enormous. Push in real estate across the country at. Currently and if they were actually out there in the sport and they were able cube overcome all of these turtles they have we probably would not. We wouldn't happen up healthy you're actually company and the knotted by the problem I had with the lower inventory we really do you have a lot of problems but prices increasing the that they can't protect a hot right now and they are shut out of the market but if it were out there patent it. Think you would be home schooling option right at your neighbor and chill. If the millennial work to buy a house today. Been in thirty years. They could conceivably have paid off their mortgage but. That mortgage could've been one in the three and a half percent range for three. Decades in the amount of money saved is just a tarnishing. It is and it really is astonishing that when you look at what people can cute now to really. I've pitched good foundation economic and patients and their teacher it's really interesting when we look at these millennial buyers today at all buyers really but it's especially true in the market these buyers she would be their first home when they're purchasing a home debater I am a big effort and years which is much longer and we've seen in the past. The they're really skipping not. Starter how they're putting an opening downgraded. So even though they be beverage can hear it it's pretty incredible. Jessica what should we be looking for if we wanna attract the progress of millennial homebuyers. Should we be looking at wages and employment numbers at the overall economy. Well and currently at school I read a lot of nerds stop and I will stay at that all achieved they're actually hurt it really lock regression analysis. And they all had bigger plates together that student learned that with housing affordability that it's really hard to purse out. Which one makes the mark and and responded the biggest contributor but do you mind that it is one of those mean that big bag if you had that same wages that you can have but that that would be helpful. Will Jessica I really appreciate you being on the show today and especially on such short notice but a fascinating interview and I appreciate it. Just allow the managing director of survey research at the national association of real tours. Coming up on realistic today. When is your Smartphone. Not be Smartphone you're. Marks one effectively here now let's smarty. You cannot with the August Smart talk you can lock and unlock your door without having it and actually keep you hands. That's next on our special show. Millennial. But first it's time for our Smart home technology report. And today we're talking about which parts of your house. Are Smart. The answer might surprise you. Answers I found at the Consumer Electronics Show in Las Vegas. I went out there to report on Smart whom check for realistic today. Now CES is too big for just the Las Vegas convention center. It also fills up about a dozen other huge venues. And many of those were dedicated exclusively. To Smart home checked. As you might expect to have all the big consumer electronics companies were showing off Smart home check. Apple's home kit Google's nest learning thermostat. Microsoft's home automation and more not to mention Samsung Intel Honeywell and others. And as you might also expect a lot of recent tech startups were their two. With their own Smart home devices the ring video doorbell. The net that no weather station. The guy drop Smart watering system and on and off. So all that was fascinating but not really a surprise. However what did surprise me. Was how many legacy companies that we all grew up with an. Companies that have nothing to do with technology. They were there to. Showing off their connected Smart home products. For instance Pella. That's right Pella windows. They had a huge presence showing people their new windows. That you can open and close with a tap on your Smartphone. I was amazed. Not only that you can open and close a window that way. But also that a window company had jumped right in to the Smart home pool. Also all the door lock companies we know so well liked quick set and show lag. They were there with their Bluetooth dead bolts which you'd lock and unlock with your phone. Again not companies are would've associated with Smart home to act but they believe. The wave of the future. It seemed everything but the kitchen sink was going to high tech await the kitchen sink is to. Because delta plumbing and Fossett yet. Totally high tech how about a disk on the faucet that's blue in the water's cold and bright red when it's too high. That could prevent you from being called it and that's a great idea. But again a faucet company on the floor of the consumer electronic show. Incredible. It's a pretty good sign of where we're headed a ball that because many of the biggest legacy companies in the world think. Going into the Smart home market is a very Smart businessmen. This is really easy today. All real estate all the time. And we're back what our special show. Millennial it's all about the open coming generation of Americans. We're going to have an enormous impact on real estate all across the country millenniums continues right after we check in with Bill Thompson in the realistic today newsroom. I don't. Hi Stephen. As of the end of August the FAA has eased regulations on commercial use of drones and that is a potentially huge development for realtors. The FAA estimates that real estate agents will make up 22% of drone use in the US by 20/20. Indianapolis real estate photographer Scott Perry told 24 hour news eight the drones are going to be widely used and not just for expensive luxury homes either. Telling the full story as opposed to one calendar when. Probably blood so to speak they're gonna tell the complete story doesn't take a whole lot of height do it. Get a much different photo that we came from the ground. An agent Jimmy duel and told the station he wishes he had drones when he got into the business thirty years ago and had a higher crop dusters to take aerial photos of homes. There is still great optimism about the real estate market among current and prospective homeowners. That's according to latest homeowner sentiment survey conducted by Berkshire Hathaway home services. Two out of three current homeowners seem to market favorably that's up five percentage points in spring and the highest in more than a year. The reasons for their optimism include higher home values increasing housing inventory and low interest rates. Just some people it doesn't matter but if you're one of those who is a little nervous about living in the house where someone has died if there's a new way to find out before you buy. The property preach diligence reporting site home disclosure dot com has added a new feature called death in home. It's pretty self explanatory you can find out if there's ever been a homicide suicide accidental death or death by natural causes in the property. According to Adam data solutions. The creator of the web site only California Alaska and South Dakota currently require sellers to disclose stuff information to potential buyers. Throughout American history many people have been accused of trying to buy their way into the White House. Boy if you wanted to actually. You know body the White House. What is 16100 Pennsylvania Avenue were. The Royal Institution of Chartered Surveyors of London. LA real estate consultant and gray and international art advisors president Barden Chris on have come up with a number. That number is ninety million dollars now for that you get 55000 square feet. 132. Rooms 28 fireplace us all on eighteen acres of prime Washington DC realistic. Even back you. Thanks bill. And we're back with our special show millennial we'll hear the today's millennial homebuyers can love technology to. And a home that's filled with Smart home check. Often ends up at the top of their list but what kind of text. Well a consumer survey by X Kennedy and August home the Smart block company reveals home security is a top priority. It's called the safe and Smart home security in the Smart home era. Let's talk about the serving now with take Josh and it kept general manager at August home. To adjust specializes in home security and other Smartphone tack at August home page Josh welcome to real estate today. Thank you very much happy to be here. We're glad you're here now tell us about the study the safe and Smart home security in the Smart home era. Who did you talk to in what were you looking for. This study will consist of up 1300. US customers many of them what you just are Smart I'm technology and anyone Iraqis in this market and technology and the key I come to a looking for. What are what motivated the adoption of Smart technology what she chairs were most compelling and important to me how old consumers were trying to use the Smart home technology that they were purchased. Did you rush the study shows that 63%. Of the people surveyed. Wanted Smart home technology. To provide a safer home with door locks security cameras video doorbell and connected lights tell us about that. Very interesting question and it was it was probably the most important that revelation in the researching that which is 63%. Of the consumers sites had family's safety as their biggest market for Smart home technology. Our you know our showed today is about the millennial home buyer. Are most of the people who were interested in Smart home tech the younger people or to disband all the generations. I am older generations the differences. Arise in terms of what specific technology and how open they are to installing you know month to outsmart home products. The millennial that are very open and be tempted to ask start a lot of this technology did order that we just focus on security in our focus and convenience. And they focus on what might be fairly novel. And whereas you have probably to Generation X. generation why they focus on something but he material and department of what they're looking for. At that point in time. Interesting and you just mentioned that many millennial syringes and inconvenience. Your survey says 54%. Of consumers looking to Smart home tech. Wanna make their lives easier and simpler so convenient is a big part of that. That is correct effectively convenience. Which can come passes different products. That we Lorie talked about indoor cams are right door bailouts and Smart talked that we provide. And enables bands do you. Turn on lights opt serves that goes dark. Or the ability to provide remote access to somebody when you are not at home not a friend coming home at 9 o'clock and you're stuck at work additionally. How many times have you been lying in bed and you're thinking hey everybody lock the door not Smart home technology gives you the Canadians to develop a new phone. And to find out whether that door and blocked or not and not August. Everything happens and can be controlled on the Smartphone to give you this sort of needs your Smartphone effectively is not a Smart key. Would be obvious Smart talk you can lock and unlock your door. Without having it and actual Kenya and Uganda to do it remotely and you have total control over your access. Not take charge the study also shows Smart home tech is expected to double in the next year with thirty million households equipping their homes with connected technology. And there's no slowdown in sight. That's a huge develop. And that's correct in our research one in five respondents said that they would. Likely by a young Smart home product over the next year and in fact half of those already owned a Smart a product not looking to buy another Smart I'm product over the course of the next next year or so. That is fascinating well I appreciate you being on a show to Josh thank you very much for having me. Take charge undercut general manager at August home. Coming up on realistic today we'll talk to a member of the millennial generation. Who bought a house right in the middle of the city. They need to get really comfortable with the word compromise. You can say it into a voice recorder played in your sleep you have to prove he need to recognize early on that you probably are can get everything you want. That's next on our special show millennial. This is real estate today. Because your home might be your biggest investment. Millennial it's far more likely than previous generations to Warner home in an urban area. But they face significant challenges making that happen. Prices are on the rise and options are often limited for lower and middle income borrowers. Hear this now is John Belton public issues media manager at the national association of real torch. Who himself as a member of the millennial generation and homeowner in the Washington DC area let's start with John now about how to make urban purchases. A reality. John thanks for joining us on realistic today thank you for having me. So John you've bought a home in the middle of the city is that normal for millennia rules well. No it's not at the conventional wisdom about biennial of course is that they do wanna buy a home in the city but that's not necessarily what's happening around the country. And they are actually released data in March showing that share of millennial buying in an urban or central city area. Actually fell to 17%. Down from 21% a year ago. Well why what's going on. Lots of reasons chief among them no surprise is cost home values has come roaring back in a number of urban markets and while that's good news for the homeowner it means buyers have a lot to compete with. Formal ideals are by definition still in the early stages of their career were sent. Early stages in their income potential and price really matters. When you're at that point in life that's absolutely right and on top of that there inventory challengers to deal with which is say it just isn't enough entry level or low cost construction happening to help young buyers who were looking in an urban market. So you decided to bite in this city and give. The little rambler just a few streets down from the mall out in the suburbs why. Well one of the big reasons to me is the same for most money or and that was just proximity to work I was working for NAR when I bought my home but I was working in city. Washington has a lot going forward but commuting has a real challenge even with public transportation. Is that a pretty common reason for living in the city and absolutely is in fact 60% of respondents in an heiress survey cited proximity to work as an influencing factor for living in the city and that's. Really no surprise so it all the challenges that go into buying a home right in the middle of the city. How did you do it well first off I should come right out and say did a big part of it was locked. I wasn't having much success finding something desirable my price range but one day I happen walked by an open house that was exactly what I wanted. In men on the market for awhile so I'm an offer any app that. That was pretty lucky but I also did a few things that are critically important to making a home purchase and the city work on a budget excellent what are those things John. At first and foremost anyone who has limited means but wants to buy a home in this city may need to get really comfortable with the word compromise. You can say it into a voice recorder and played in your sleep if you have too so he need to recognize early on that you probably aren't can get everything you want so in this city John. What are some of the things a buyer had to give up for instance. A nice garage nice driveway. I don't know that I senior Drudge in Washington DC had to add too many times but I one of the big ones is location. Eat your dead set on specific neighborhood in your home search is coming up short and it. It's pretty clear it's time they're broadening the search but I would say think about the things that drew you to the neighborhood you really wanted to live then and see if you're gonna replicated somewhere else to do is. Proximity restaurants and entertainment maybe it was because it was closed your work maybe was a public transportation options. Figure out what was that you really wants and what must have for you women's top tier agency what else might work for you what else should an urban buyer be looking for John. If there on a budget. One of the big one for me was being willing to. Purchased a fixer upper I figured out pretty quickly that even if I brought in the list of neighborhoods are we eager to leave and I just wasn't enough for a brand new were fully renovated home but having a real conversation about what I can afford to fix right away and what I was willing to live with for a few years until I had the money is what helped seal the deal for me now. How about your home loan to urban buyers need to approach the mortgage processed differently than buyers say. Out in the leafy suburbs. Well the question buyers need to ask is how competitive is this market if you are looking to buy in a place where competition is PB pierce then you need to have all your ducks in a row. That means going near Lander early and making sure you've got that letter of pre approval in hand before going getting too far into the home search. Because they're likely to be an all cash offer to that you have to contend with and for us our. That's a pretty attractive offer but you can compete in addition to having that letter of pre approval spent some time that you wanted to make sure you have a complete understanding. A which can afford. It's not uncommon for bidding war is an escalation clauses come into the mix and competitive market knowing exactly where your finances stand. Well you compete and keep you from just wasting your time great information. On especially. For all those people who are right now renting or maybe even living with their folks who would like to buy a home of their own thanks for joining us on the show thanks much revenue. John Belton. Public issues media manager at the national association. Of real tours. Coming up on realistic today we'll take a look ahead at the year. 2046. We'll explain as our special show Mario continues. If you're hungry for real estate information and follow real estate today on Twitter. Shares segments listened to them again. And be the first to know what's on next week's show. Just search real estate today. On Twitter. Real estate today. Because you love real estate. Welcome back to our special show millennial it's. We're going to end today's show with a look ahead and I'm not talking next year or the year after. I'm talking way ahead thirty years from now September. 2046. When the members of today's millennial generation. Make that final mortgage payment on the homes they bought way back in 2016. That's going to be a pretty great time in their lives. You see since 1989. The median price of homes in the United States has gone up approximately. 250%. That's 250%. In fewer than thirty years. And that includes the economic downturn nearly a decade ago. So looking at the wealth generated by household equity loan. The millennial of today who buys a home and holds onto it could experience an increase. Of 250%. In its value. Today the median price of homes in America is around 244000. Dollars multiply that by 250%. We're looking at around 6101000. Dollars and the month that mortgage is paid off. That's a huge amount of money for retirement. But of course in thirty years the millennial generation won't be ready to retire yet they'll be at the very oldest. Around 65. And as you know many Americans are working much longer than Matt Austin well into our seventies. So after paying off that thirty year mortgage the millennial of today who buys a home. We'll still have a decade or more earning years before they retire. Oh and one more thing a really important point the millennial of today who buys a home and holds onto it. Will be paying down our mortgage where the ridge ridiculously low interest rates for the best qualified. A rate in the threes. That will save them enormous money over that thirty year span. OK so take that original house we talked about at the median price of 244000. Dollars. With a 3.5. Percent mortgage dot millennial will pay 394000. Dollars in interest. Over that thirty year period. Sounds like a lot right but if they wait in by laid Iran when interest rates are say 6%. Then they'll pay more than 525000. Dollars in interest. Also every year they would have been able to deduct the mortgage interest and their property taxes on their federal tax return. The mortgage interest deduction alone would save them nearly 40000. Dollars in taxes over that thirty year period. So now this is not meant to be an in depth economic analysis. We're just talking and maybe daydreaming a little bit. About how the millennial was up today can get on the road to wealth by starting when they're young. And this road doesn't even include other investments like stocks and bonds an IRA or 401K. I'm just talking about owning a house. And paying that mortgage every month for. Thirty years. But here's something many millennial may not know. That's thirty years. That will pass in the blink of an. And I hope that as many young people as possible learn that homeownership can help generate wealth. And the steps they take today. Will mean so much to their lives in September 2046. Coming up next week on realistic today. The fall market hard to believe but fall is here. We'll take a look at the final quarter of 2016. And tell you what's happening in real estate from coast to coast. And remember you can always let's an online if RET radio dot com. And from all of us here at realistic today thank you for listening. If you're realtor you can put the entire real estate today show on your website. That's that's real estate show on the Radio One 100% free to NAR members just go to our ET radio dot com and click appropriate to.