Listing Courtesy of OCEAN ATLANTIC SOTHEBY'S INTL REALTY
Now that we are deep into July, with summer in full swing, there might be vague thoughts running through your mind about some potential real estate moves—but certainly not until the fall. Right now all most of us are thinking about is whether another chilled glass of summer-something-or-other is in order. South Bethany mortgage rates and what the folks in Washington might be doing to affect them are not exactly what occupies an idyllic July afternoon.
But if you’ve been paying attention to any newscasts long enough to reach the dull-as-dishwater economic stories they throw in toward the end of the broadcasts, you may also have an inkling that conditions are about to change. And the evidence does suggest that mortgage rates in our area face a likely increase come fall. If your vague suspicion does come to pass, and if you’re among those considering buying or selling a home in South Bethany this year, now should be the time to stop “thinking” and start “doing”.
Exhibit A for that proposition comes from one Michael C. Fratantoni, who happens to be the Chief Economist of the Mortgage Bankers Association (MBA). When he recently spoke at the National Association of REALTORS® office in Washington, he made no bones about it: mortgage rates will continue upwards, with a first significant Fed hike likely in September. September! The 30-year fixed mortgage, which we all know has lingered at historic lows—below 4%—for several years, is likely to hit 4.4% by the end of 2015 , then move beyond 5% next year.
It’s enough to stifle any thoughts about that frosty beverage.
The good news for South Bethany homeowners planning to list is that Fratantoni doesn’t believe any of these factors will keep the nations’ buyers away. After a pretty lackluster 2014 performance, the MBA forecasts a 14% year-over-year increase in purchase-money mortgage originations in 2015—and nearly 9% in 2016. Nationwide, incomes are also expected to rise, and with new household formations on the rise, the national real estate market looks to remain in fairly good balance.
While it seems there’s no instantaneous need to drop all your summertime activities to rush your home onto the market, with mortgage rates in South Bethany expected to rise sooner rather than later, it’s certainly worth making it a priority to give me a call this week. After that, there will definitely be ample time to finish enjoying that delightful chilled summer beverage. Call/Text me Russell Stucki at (302) 228-7871, email me at email@example.com, visit more listings at www.beachrealestatemarket.com.
Micro apartments, once considered a momentary fad, are become an increasingly popular choice for city residents across the nation. It's a trend that might signal the beginnings of a shift in Delaware apartment living as well.
The tiny apartments known as “micro apartments” generally feature a small bedroom, private sitting area, bathroom...but not much more. In a typical floor plan, a living unit has 200 square feet or less -a far cry from American norms for the better part of a century. It is true, though, that there is nothing new about cramped apartments and shared living spaces. What sets today’s micro apartments apart is their success in combining comfort and livability with the affordability that is their main appeal. Design features such as folding bed alcoves, high ceilings and raised closets help to create an illusion of space when the actual living area is tinier than even the smallest traditional apartment.
Smaller apartments share micro apartments' standout characteristic: micro rental prices. It's an attracting that has always proved popular among younger Delaware apartment dwellers with entry level jobs, service industry employees who want to live closer to work, older single adults, students, and retirees who want to shed their empty nests and settle in convenience-packed urban areas. With reduced square space, micro apartments are not only cheaper to buy or rent, but usually significantly easier to clean and maintain. Many of the new micro apartment units also feature nearly as much storage space as much larger apartments.
The newest wave of micro apartments does have their share of detractors. Some have expressed concern that encouraging landlords to increase their ability to collect rent from more tenants in a smaller space will likely invite rent increases for standard-sized apartments.
Urban living remains desirable for many—but affordability remains a limiting factor. Micro apartments raise a new possibility for providing a cost-effective option that wasn't on the horizon even a few years ago. Whether or not the “thinking smaller” approach of micro apartments affects local scene, keeping track of its popularity on the national front is a good idea for area real estate watchers. There's no denying it could point to a changing environment for our own Delaware market for tenants, landlords and real estate investors.
If you have been surveying the current crop of investment properties, you don't have to be planning your own Delaware micro apartments to make forward-thinking decisions. Call/text 302-228-7871 or email me, Russell Stucki, REALTOR ® of Beach Real Estate Market to provide detailed information on Delaware homes for sale, investment and commercial properties, luxury and waterfront homes, condos/townhomes, new construction, lots and land, farms and equestrian properties located in but not limited to Bethany, Bethel, Bridgeville, Dagsboro, Delmar, Ellendale, Fenwick Island, Frankford, Georgetown, Greenwood, Harbeson, Laurel, Lewes, Lincoln, Milford, Millsboro, Millville, Milton, Ocean View, Rehoboth Beach, Seaford, Selbyville, Delaware.