To-Dos: Your Home Checklist | SEPTEMBER
"From the first days, which probably still feel like summer, to the last, when you may notice that first chill in the air, September is a time of transition. Get your home ready for the season ahead by ticking off these to-dos, from adding cozy layers to scheduling necessary maintenance — and then curl up in your favorite chair and savor the comforts of home." --- Laura Gaskill, Houzz 1. Cozy up with warm layers.2. Order firewood.3. Check safety devices.4. Set up or improve kids’ schoolwork area.5. Clean leather furniture.6. Remove window AC units. 7. Add weatherstripping. 8. Freshen up your fall wardrobe. 9. Inspect the roof and gutters.10. Schedule chimney and furnace maintenance. 11. Maintain the washer and dryer.
How Does the Election Affect Real Estate?
With another presidential election on the horizon, housing has emerged as a central issue, driven by rising mortgage rates, high prices, low supply, expensive construction, and growing homelessness. Vice President Kamala Harris recently proposed measures like a $25,000 downpayment assistance program, while former President Trump criticized the Federal Reserve, with some of his allies even suggesting abolishing it altogether. Despite both candidates emphasizing housing, their plans still lack detail, raising questions about the actual influence a president can have on the housing market. Matt Myre at BiggerPockets reviewed 30 years of data, starting with President Bill Clinton, and argues the housing market is primarily driven by supply and demand, not presidential policies. Housing prices have generally increased over time, with the only major disruptions being the 2008 financial crisis and a stable period under Trump. This trend indicates that no single president has significantly influenced housing prices. Homeownership rates have also remained stable since 1993, challenging the idea that corporate landlords are taking over the market. Rental vacancy rates have fluctuated, but these changes are more closely tied to housing supply than to presidential actions. Overall, the data shows that the housing market's fundamentals are shaped by supply and demand rather than by who is in office. The Federal Reserve, which controls interest rates, plays a more significant role in short-term housing trends. While the president can nominate the Fed Chair, the institution operates independently, limiting the president's direct influence. However, through the "bully pulpit," the president can shape public discourse and influence policy indirectly. Historically, presidents have impacted housing policy, such as Franklin D. Roosevelt's creation of the Federal Housing Administration (FHA) during the Great Depression, which had lasting effects on the housing market. Subsequent administrations have continued to build on this foundation, establishing agencies like Fannie Mae, Freddie Mac, and the Department of Housing and Urban Development (HUD), which play key roles in housing finance. However, the effectiveness of presidential housing policies is often mixed. For instance, President Clinton's efforts to increase homeownership contributed to the subprime mortgage crisis. In recent years, presidents have been more cautious, with Trump’s tax cuts and Biden’s Housing Supply Action Plan showing limited results. All this to say, while the president can influence housing through policy and appointments, the market's trajectory remains largely dependent on supply and demand. As the nation faces ongoing challenges in housing, the focus should be on creating conditions where supply meets demand, rather than relying on political promises. - JL
Vacant and Work-Needed Homes Increasing
As of April 2024, the U.S. Census Bureau estimates there are about 15.1 million vacant homes in the United States. Additionally, 25 million homes built before the Great Recession are now between 20 and 40 years old and will soon need significant repairs. These issues include roofing problems, lead and mold concerns, and below-the-slab PVC plumbing that requires extensive work to fix. This new market segment will soon make up about 20 percent of listings. Real Estate Agents may need to adjust to this climbing trend, affecting 1 out of 5 homes, Inman reports. There is one group that is stepping up to the challenge: investors. Investor purchases now make up 29 percent (and increasing) of all single-family residential sales. - JL
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