Logansport, Indiana (www.cityoflogansport.org)

Everybody loves a “small town,” right?  The charm, the people, you name it.  A lot of those notions are pure romanticized imagination but there are some aspects of small towns that make them attractive and therefore a great place to live and invest.  The folks over at Realtor.com put pen to paper and sent their folks out to find the best small towns in America where you can find affordable, good-looking housing, safe communities and fun things to do.   They looked at over 500 U.S. cities with populations between 10k-50k and came up with rankings based on items which  include:  median home price, unemployment rate, crime rate, overall housing costs and unique things (food, culture, activities, etc).  Indeed…

Here are Realtor.com’s top 10 “affordable” small towns:

1. Logansport, IN
2. Mexico, MO
3. Guymon, OK
4. Defiance, OH
5. Albert Lea, MN
6. Emporia, KS
7. Lexington, NE
8. Shewano, WI
9. Dumas, TX
10. Spencer, IA

Click here to read the full story on Realtor.com.

According to the NAHB’s Eye on Housing Blog, nearly 6.8% of single-family homes started (close to 60k) in 2017 qualified as “tear-down starts.”  While this estimated number is down 10.2% from 2016, it is significant because of an ongoing shortage of new entry-level housing, more and more homes that might be considered starter are being knocked down due to the increased value in land.  A tear-down start is defined as a home built on a site where a previous structure or evidence of a previous structure was present before the new home was started.

“Between 2016 and 2017, the number of single-family tear-down starts remained relatively constant in the Midwest and South Census regions, nearly doubled in the Northeast, and declined by nearly 75 percent in the West (after increasing by more than 200 percent the year before).”

Click here to read the full report on the NAHB’s Eye on Housing.

According to recent data published by the Mortgage Bankers Association, U.S. homeowners are seeing a dramatic increase in the amount of equity in their homes while at the same time seeing a big decline in the amount borrowed through home equity lines of credit (HELOCs) – the lowest since 2008.  Using data from the Federal Reserve, they report that estimates owners’ equity is $14.1 trillion.  However, they do suggest that as interest rates rise, HELOC’s might become more attractive to potential borrowers seeking to preserve the low rate of interest in their current mortgage.

MBA Source: Federal Reserve

Click here to read the full story on MBA.org.

Anyone who has ever flipped a house knows about the potential perils of what kind of wiring the house has and when was it last upgraded.  Depending on the age & condition of the house it could be extremely costly or maybe just a cheap fix.  However, you have to know what to look for and what you’re looking at.  Today’s infographic from John K McCraw Electrical discusses common items in older homes, what you might need a permit for, and some general due diligence items when flipping a home.   Happy Friday!!

A new initiative being developed by Airbnb, in partnership with Fannie Mae and several lenders, would allow homeowners wishing to refinance their homes the ability to count, as income, funds generated from their properties listed on the homesharing site.  According to a recent article on Curbed, Airbnb will supply a Proof of Income statement that hosts can now include when applying with Quicken Loans, Citizens Bank, and Better Mortgage in order to  refinance an existing mortgage.

“This initiative was developed with Fannie Mae to identify new ways of recognizing home-sharing income, making it possible for homeowners to maximize their investment to better reach their financial goals,” Airbnb said in a statement. “The project is part of Fannie Mae’s work to find new, innovative ways to expand the availability of affordable mortgage credit.”

Click here to read the full story on Curbed.com.

In a recent episode of Real Estate News for Investors, Kathy Fettke talks about a corner of the hemp market that she says is “shaking up the construction industry.”  It’s called hempcrete (that’s right hemp + concrete) and it’s a green building material that dates back to the Roman times that is starting to become popular in the U.S.  And, before you ask, industrial hemp contains less than .03% THC (the stuff that gets you high)….marijuana typically contains between 5% and 35% THC.

“Not only is hemp used to create a concrete-like building material, it’s also a fast-growing, sustainable plant. Crops mature in about 4 months. The woody fibers are then mixed with water and lime. When they cure, the result is a strong, lightweight material that is resistant to fire, mold and bugs. It’s also breathable and non-toxic with no off-gassing, and provides exceptional insulation.”

Click here to read the transcript on RealWeathNetwork.com.

Everyone has their favorite way to add value to their investment and get a great return.  The folks at Keeping Current Matters recently illustrated HouseLogic’s top four home renovations for maximum ROI.  Always remember to know your market! 

“While big projects like adding a bathroom or a complete remodel of a kitchen are popular ways to increase a home’s value, something as simple as updating landscaping and curb appeal can have a quick impact on a home’s value.”

Hat tip to Keeping Current Matters.

What makes up a first-time home buyer?  The National Association of Realtors recently put together this handy infographic using data from their 2017 Profile of Home Buyers and Sellers.  So, what do they look like?

• Age – 32 years old
• Household income – $75k
• Cost of home purchased – $190k
• Down payment amount – 5%
• Student loan debt – $29k
• Type and location – Single-family home in a suburban area

Click here to read the whole story.