Archives for December 2015

Dollars and Sense: Teaching Your Children How to Manage Money

One of the most important things parents can do for their children is teach them the value of a dollar. Helping them learn the skills necessary to manage money effectively can be done at any age, and it’s much easier than you think. Take steps to educate your child about personal finance with these four tips from experts at Parents Magazine.

1. Give a weekly allowance.
How much to give your child depends on your own financial situation, but a good rule of thumb is to give them an amount equal to half their age (i.e., $4.50 for a 9-year-old). It’s also important that this allowance doesn’t rely on whether or not a child completes his or her chores – helping out around the house is something children should do anyway, regardless of an incentive. You can always give them opportunities to earn extra cash with other chores outside of their expected routine.

2. Set savings goals.
If your child expresses interest in a big-ticket item, help him or her set a savings goal. Your child will not only learn the rewards of saving, but also see firsthand how transactions work. Try to hold back your opinion if you think your child is wasting money – buyer’s remorse is another great lesson for kids to learn, and it will help them become much more conscious of their spending.

3. Be a role model.
It’s important to lead by example. Your children will never know how to be responsible with money if you aren’t. A trip to the grocery store is the perfect opportunity to demonstrate sensible money management in several areas – budgeting, using credit cards, and purchasing sale items, for instance.

4. Make it fun.
Becoming skilled at managing finances doesn’t have to feel like school. Board games like The Game of Life and Monopoly Jr. can be especially helpful when teaching some of the basics. In addition, try to keep any serious money conversations away from your child’s ears – it’s never a good idea to associate money and stress!

10 Housing Trends Coming Your Way in 2016

It’s been nearly a decade since the housing bubble burst and home values have yet to come back. But 2015 offered great strides toward full recovery, with small reminders of a still-recuperating market.

Home prices are up year-over-year and new home sales are on track for the best year since 2007. But the share of first-time homebuyers remains at the lowest level on record, while the homeownership rate slumped to a 48-year low earlier this year.

What will 2016 hold for homebuyers, sellers and renters? Here are the top real estate trends to watch for next year.

1. Home prices will continue to rise…moderately.
   Economists and housing experts surveyed by Zillow expect home values to grow an average of 3.5 percent with most markets experiencing modest gains. That’s closer to historical averages and more sustainable than double-digit increases. However, some economists are worried that price appreciation may be approaching bubble territory in some hot markets like San Francisco, Denver, and Dallas.
2. Interest rates will inch up.
   Economists widely agree that the Fed will increase its fed funds rate gradually throughout the year. Rates on adjustable-rate mortgages, which are tied to the prime rate that tracks the fed rate, will react immediately to a Fed hike. The rate on the 30-year fixed mortgage will increase slower, because it follows the yield on the 10-year Treasury, rather than the fed rate.

Rates on a 30-year mortgage currently stand at about 4 percent, up from record lows but still extremely attractive by historical measures. The Mortgage Bankers Association expects rates to reach 4.5 percent in 2016.

While some worry that higher interest rates would dampen the housing market, job security and wage growth are larger factors on home activity than interest rates.

3. First-time buyers will continue to struggle.
   Part of the reason for the muted housing recovery is the lack of first-time buyers. These buyers—who traditionally fuel the market—have had difficulty saving for a down-payment due to stagnant wages and high rents. “The investors came in and helped accelerate the housing recovery by being willing to buy when the market was bleeding, but they have pushed up home prices rapidly in some markets, and all of the sudden those markets are unaffordable for the traditional, first-time buyers,” says Daren Blomquist, vice president at RealtyTrac.

The median age of first-time homebuyers—currently at a record-high 33—will head even higher next year, according to Zillow. Another headwind facing first-time homebuyers: Prices for entry-level homes are increasing faster than prices at any other price level, according to CoreLogic. That’s because developers have been building larger, more expensive houses rather than starter homes.

4. Credit will get—a little—looser.
   While the days of no-doc loans and drive-by appraisals will likely never return, the pendulum is inching closer to center after several years of tight credit restrictions. The average FICO score on all closed loans in the third quarter was 723, the lowest level in at least four years, according to Ellie Mae. Two years ago, the average score for denied applications was 729.

Banks may be even more willing to work with homebuyers over the next year as the volume of refinances falls as interest rates rise. “There will be more competition for borrowers,” says Frank Nothaft, chief economist at CoreLogic. “We may start to see more flexibility in credit standards and underwriting.”

5. It will still be cheaper to buy than rent.
   Rental rates have risen even faster than home prices in some markets. Buying a home is 36 percent cheaper than renting nationwide for millennials and now is the best time to buy since 2012, according to Trulia. Buying is cheaper than renting in every one of the country’s 100 largest metro areas. The disparity could likely grow as rents are expected to increase by 8 percent next year, according to a Rent.com survey of property managers.
6. The suburbs will make a comeback.
   The suburbs are once again becoming a potential destination for buyers as downtown living increases and Millennials start families, according to a new report from the Urban Land Institute. The most attractive suburbs are close to a city and have walkable Main Streets, job opportunities and public transportation. In the largest metro areas, more than four out of five jobs are located outside of the center-city core.
7. Buyers will want green and smart homes.
   Despite the higher costs, home builders and remodelers are increasingly incorporating eco-friendly features into projects to meet growing demand largely from affluent Baby Boomers who prioritize energy efficiency, a healthier indoor environment and durability. More than half of builders and 39 percent of remodelers say they are working on green projects, according to a study from Dodge Data & Analytics for the National Association of Home Builders.Those percentages are expected to rise over the next five years.

Sellers that don’t want to invest in full-scale renovations are turning to smart thermostats and lights that can be controlled by smartphones to pump up their eco appeal. “It’s a great way for sellers to differentiate their properties from others on the market,” says Budge Husky, chief executive officer at Coldwell Banker Real Estate. “You’re not only getting the energy savings, but it becomes a lifestyle feature.”

8. Videos will be the new photos.
   High-quality, professional photographs have become the norm for online listings. To stand out in today’s market, more sellers are working with their real estate agents to create virtual tours and videos to highlight their properties.

Videos can help create positive reactions and emotional connections to younger buyers accustomed to sharing photos and videos on social media. Los Angeles real estate agent Scott Tamkin has been using video game-like 3D tours to allow potential buyers who may be abroad to virtually “walk through” a property to get a real feel for it.

9. All-cash sales will continue to decrease.
   About a third of home sales in August went to all-cash buyers, down form a high of more than 46 percent in January 2011, according to CoreLogic. That share will likely continue to decline in 2016, which is good news for mortgage-dependent buyers who have had trouble competing with all-cash offers in some markets.
10. New homes will come back big time.
    New home construction was one of the hardest-hit industries after the housing bust. At their lowest point in 2009, developers had scaled back production by nearly 79 percent. They’re finally starting to ramp up again. Single-family starts increased 10 percent this year and are expected to rise another 23 percent in 2016, according to the National Association of Home Builders. That coincides with healthy sales. New home sales grew 15 percent this year and are forecast to jump 26 percent in 2016.

Thank you,

 

November 2015: Single Family Home Sales Strong Across Emerald Coast

Single family home sales increased across the Emerald Coast in November, while inventory levels continue to drop. Walton County condo sales dipped over last year, while Okaloosa County condo sales remained strong. All sales statistics below compare November 2015 to November 2014.

 

               Single Family Home Sales

 

Emerald Coast

• Closed sales increased 5.1%
• Pending sales decreased 1.3%
• Median prices increased 6.8%
• Inventory decreased 9.7%
• Months supply decreased 23.6% to 5.9 months of inventory, the lowest since current reporting began in 2011

 

Okaloosa County

• Closed sales increased 1.8%
• Pending sales saw no change from last year
• Median prices increased 9.5%
• Inventory decreased 9.3%
• Months supply decreased 24.2% to 4.8 months of inventory, the lowest since current reporting began in 2011

 

Walton County

• Closed sales increased 11.2%
• Pending sales increased 6.9%
• Median prices decreased 1.8%
• Inventory decreased 10.1%
• Months supply decreased 22.9% to 7.1 months of inventory, the lowest since current reporting began in 2011

 

               Townhouse and Condo Sales

 

Emerald Coast

• Closed sales increased 5.8%
• Pending sales decreased 2.8%
• Median prices increased 6.5%
• Inventory decreased 1.2%
• Months supply decreased 10.4% to 8.9 months of inventory, the lowest level all year

 

Okaloosa County

• Closed sales increased 3.7%
• Pending sales decreased 9.4%
• Median prices increased 17%
• Inventory decreased 2.2%
• Months supply decreased 6.2% to 10.1 months of inventory, the lowest level all year

 

Walton County

• Closed sales decreased 18.8%
• Pending sales decreased 14.5%
• Median prices increased 3.7%
• Inventory decreased 8.7%
• Months supply decreased 18.3% to 7.8 months of inventory, the lowest since current reporting began in 2011.

 

A few things to remember…

 

As inventory continues to shrink and the months’ supply of homes for sale decreases, home sales may slow down as less options are available for buyers. We may also experience price increases as buyers are forced to compete for available properties.

 

A healthy real estate market (meaning neither buyer nor sellers have an “advantage”) is a six to eight month inventory. Below six months, it’s thought to be a seller’s market and above eight months is considered a buyer’s market.

 

Pending sales are only an indication of the month ahead. In months with an increase in pending sales, you can expect sales to increase for the following month. A decline in pending sales may be an indication of lower sales the next month. It is not an automatic as sales often take more than 30 days to close.

 

All sales data is from the Emerald Coast Association of Realtors® (ECAR) Multiple Listing Service (MLS) and is compiled by Florida Realtors®, the state association for Florida. The Emerald Coast statistics cover both Okaloosa and Walton counties as well as surrounding areas based on the listings entered into the MLS by ECAR MLS participant

Celebrate Christmas Around the Emerald Coast

Whether you need a night off from the kitchen or you simply want to do things a little different this year for Christmas, you don’t have to stay at home for the holiday. Visit local restaurants hosting Christmas Eve and Christmas Day brunches, lunches, and dinners. Let someone else do the cooking so you can enjoy spending time with your family – and not have to do dishes at the end.

 

Christmas Eve

 

Beach Walk Cafe

Henderson Park Inn

Time: 5:00 p.m. to 8:00 p.m.

Contact: 850-650-7100

 

Tim Creehan’s Cuvee Destin

36120 Emerald Coast Pkwy
Time: 4:00 p.m. to 8:30 p.m.

Contact: 850-650-8900

 

Tim Creehan’s Cuvee 30A

12805 Hwy 98 E, Inlet Beach

Time: 4:00 p.m. to 8:30 p.m.

Contact: 850-650-8900

 

Christmas Day

 

Tim Creehan’s Cuvee Destin

36120 Emerald Coast Pkwy
Time: 11:00 a.m. to 3:00 p.m.

Contact: 850-650-8900

 

Tim Creehan’s Cuvee 30A

12805 Hwy 98 E, Inlet Beach

Time: 11:00 a.m. to 3:00 p.m.

Contact: 850-650-8900

 

Sandcastle’s Restaurant – Christmas Buffet

Hilton Sandestin Beach Golf & Resort

Time: 12:00 p.m. to 3:00 p.m.

Contact: 850-267-9500 ext. 44

 

 

 

Want to give back a little?

 

Blood Drive, December 24

Uptown Station, Fort Walton Beach

Time: 10:00 a.m. to 3:00 p.m.

Donors will receive a Winn Dixie gift card

 

Christmas Day Service and Banquet
Emerald Coast Rescue Mission

112 Hollywood Blvd SE, Fort Walton Beach
Service: 11:00 a.m.

Lunch: 12:00 p.m.

Anyone who is unable to provide a traditional Christmas meal for themselves or their family is invited.

To find out how to help, contact: 888-853-8655.

 

20th Annual Christmas Display “Animation in Motion” hosted by the Christmas Lady!

Christmas decorations, activities for the family, and more!

Location: Old KMart building, 1140 E. John Sims Parkway, Niceville

Time: 6:00 p.m. to 9:00 p.m. every day through December 27

More info

 

Looking for a service to attend in Crestview, Fort Walton Beach, Niceville, and other cities across the Emerald Coast? The Northwest Florida Daily News hasa

 

Spend time with your family, eat good food, give back to the community, and enjoy all that the Emerald Coast has to offer this Christmas!

 

I’d like to wish a very Merry Christmas and Happy Holidays to everyone at Rising Star Real Estate, our clients and customers, and our families. Without you, none of this would be possible!

 

Merry Christmas!

 

12 Fun Facts About Christmas You Might Not Know

Santa’s a jolly old elf. Rudolph was teased for having a red nose. Frosty always has to go home again when it warms up but he’ll be back again next year. There are plenty of things we know about Christmas but there may be a few things you don’t know.

 

Take a look at this list add a little more to your Christmas collection of trivia:

 

1. Although Santa’s reindeers may have names that seem masculine, male reindeers shed their antlers in the winter so the reindeer pulling dear old St. Nick are probably female.
2. All the gifts named in the 12 Days of Christmas equal over 350 presents.
3. 1850 – the year Christmas trees started being sold in the United States.
4. 15 years – the number of years a Christmas tree needs to grow before it can be cut down and sold.
5. Alabama was the first state to recognize Christmas as a national holiday.
6. Poinsettias are native to Mexico and were first grown by the Aztecs.
7. Around 30 to 35 million live Christmas trees are sold in the United States each year.
8. The Coca-Cola brand was the first company to use Santa Claus in a winter advertising campaign.
9. 1947 – the first year Toys for Tots held a toy drive for needy children.
10. Santa really has 31 hours to deliver toys, thanks to all the different time zones.
11. 1670 – the year candy canes were first made and given out to children.
12. 5 billion – number of Christmas cards sent each year in the United States

 

Now that you know a little bit more about Christmas, it’s time to deck the halls, sing a few carols, and get busy enjoying what the season is all about!

 

Sources:

 

50 Interesting Facts About Christmas

50 Festive Facts (You Probably Didn’t Know About Christmas)

How Your Renovations Can Affect Your Home’s Value

Are you already starting to think about your goals for 2016? If home renovations are in your plans for next year, make sure you know how those renovations will affect the value of your home

 

Major Renovations Can Increase Your Tax Bill

 

Every area is a bit different, but major renovations can affect your home’s value and increase your tax bill. If you’re renovating with the intention to sell, this might not bother you, but for those who simply want a more comfortable or luxurious home, be aware. Added bathrooms, refinished space, bigger rooms – if it increases the living space, allows more people to live in a home, or does anything to increase a home’s worth, be prepared for your taxes to go up.

 

When in doubt, talk to the Property Appraiser’s office to determine what, if any, impact your improvements will have. It’s better to be warned about the increase than surprised when the tax bill comes due later.

 

Some Renovations Can Decrease Your Home’s Value

 

Some changes you make to your home help your current lifestyle. If you plan to live in your house for the next 30 years, that might not be so bad. Most people don’t stay in one home that long and that great idea you had for a remodel a few years ago could decrease your home’s value or make it harder to sell.

 

1. Eliminating bedrooms can lower the price you’ll receive for your home. Many buyers are willing to pay more for more bedrooms.
2. Turning your garage into living space can turn off buyers. Over 70 percent of buyers say a garage is important to them, according to a recent survey.
3. Getting rid of closets is always a bad idea. You might have wanted the extra space, but potential buyers are going to want closet space.

 

As you get ready to end 2015 on a high note and make plans for a spectacular 2016, don’t plan your home renovations without doing your research. Reach out to your Realtor or contact the property appraiser’s office to find out what your planned renovations might do to the value of your home before you hire your contractor.