Rehoboth Beach, DE Real Estate and the Wit and Wisdom of the Ages
If you’re a frequent visitor here, it will come as no surprise that those of us whose days are devoted to the Rehoboth Beach, DE real estate industry aren’t shy about championing the virtues of homeownership. We’re aided by more than a century’s worth of wit and wisdom directed to the merits of owning the place where you live.
America’s two most storied humorists contributed to the collection. There is Mark Twain’s “Buy land—they’re not making it anymore” and Will Rogers’ “Don’t wait to buy real estate. Buy real estate and wait.” Then there is Anthony Trollop, the classic English novelist’s wry “Land is about the only thing that can’t fly away.”
You can credit other real estate witticisms to more modern celebrities—like “The best time to buy a home is always five years ago.” (The late jazz great Ray Brown gets credit for that one).
The real estate-promoting commonplaces don’t just come from writers and entertainers, either. Take President Franklin Roosevelt’s “Real estate can’t be lost or stolen…managed with reasonable care, it is about the safest investment in the world.” Abraham Lincoln could have been the nation’s first sub-divider with his “I am in favor of cutting up the wild lands into parcels, so that every poor man may have a home.”
Today’s Rehoboth Beach, DE real estate may be a far cry from Honest Abe’s “wild lands”—but the insight from America’s first billionaire, J. Paul Getty, is as apt today as it was when he described “current real estate” in the mid-20th century: “Real estate prices have risen because a constantly increasing population with money to invest…continues to be created.” When you combine that maxim with Mark Twain’s observation, you emerge with the humorous-because-it’s-true wisdom that continues to ring true—just as it has for centuries.
- Written by Jimmie Bachand
Home Sellers’ First Spring Results Show “Reignited” Demand
Traditionally, April is a dependable month when Milford, DE home sellers can expect a lively market—and if first reports from across the nation are any indication, the evidence points to a spring selling season that fits the pattern. Just before mid-month, a review by Realtor.com’s Economic Research Director prompted the headline, “Good News for Home Sellers.” Key points:
· In multiple regions, buyer demand has been “reignited” due to an increase in buyer affordability in markets where mortgage rates have lowered.
· The pace of home sales relative to inventory has quickened. This is the first time since March 2018.
· Supply data (the number of residences for sale in the Realtor.com database), while still somewhat constricted, rose 8% year-over-year.
In the 50 largest markets the overall rate of absorption reaccelerated after 11 months of declines. That turnaround suggests that the busy spring home buying season “could be more active than anticipated”—indicating the likelihood that this year will turn into more of a seller’s market than most prognosticators had been expecting.
Milford, DE sellers might be puzzled by the apparent contradiction between a “seller’s market” and reignited demand from buyers. One explanation could be deduced from a survey of 1,015 respondents who plan to buy a home within the next 12 months. Conducted by Toluna Research and published last week, a high proportion of this spring’s home shoppers:
· Nearly 60% are considering a home that needs at least some renovating.
· Just over half are willing to spend more than $20,000 in renovations.
· Of those considering renovations, 95% believe their efforts will result in a positive return on investment.
The willingness to invest time and energy in post-purchase improvement projects is thought to have been encouraged by renovation television programs. The positive before-and-after episodes are more persuasive for experienced homeowners and younger buyers—while fewer than a third of respondents older than 55 years old are as enthusiastic.
- Written by Jimmie Bachand
What Rule Change Could Boost Ocean View, DE 2nd Home Viability?
It looks like Ocean View, DE second homes may have just become more affordable for many who have considered investing in one, but who couldn’t make the numbers work. The reason is technical, yet far from being one of those ‘inside baseball’ details. Its practical impact can be significant.
The news was published with little fanfare at the start of this month, buried as it was in Fannie Mae’s revised Selling Guide. That’s the document that mortgage lenders refer to when the semi-governmental agency’s backing is being sought for a new home loan. In Section B2-1-01, which outlines the requirements for Fannie-sponsored home loans for various occupancy types, there appears a lone footnote at the bottom of the page dealing with “Second Home Properties.” The footnote reads, in part:
“If the lender identifies rental income from the property, the loan is eligible for delivery as a second home…”
Previously, both Fannie Mae’s and Freddy Mac’s qualifying language had been widely interpreted as forbidding second homes’ use as rentals of any kind. “Borrower shall occupy, and shall only use, the Property as Borrower’s second home” seemed to many mortgage underwriters to restrict renting—and when that phraseology was included in the loan’s fine print, borrowers frequently assumed the same. Since supplementary rental income can be a decisive element in a buyer’s decision-making, the dampening effect was real—especially as web services like Airbandb make casual renting more common.
- Written by Jimmie Bachand