Igor Nastaskin, Author at Live in the Hollywood Riviera

Housing Value at Record-High

Housing’s collective value grew to $29.6 trillion in 2016 — a record high reflecting 5.7 percent appreciation (an additional $1.6 trillion), according to a recently released analysis by Zillow. The most valuable housing markets in the nation are in Los Angeles, New York and San Francisco, Calif., at 8.6 percent, 8 percent and 4.2 percent, respectively. The continuing growth in prices, however, has the potential to push more prospective homebuyers to the sidelines, says Zillow Chief Economist Dr. Svenja Gudell. “Housing is incredibly important to us personally and to the economy as a whole,” says Gudell. “The U.S. housing stock is worth more than ever, which is a sign of the ongoing housing recovery. As buying a home gets more expensive, affordability remains a concern for many, and these numbers highlight just how much people are spending on housing. The total value of the housing stock grew nearly 6 percent this year, a pace that will likely mean some American families are priced out of homeownership.” Despite this year’s appreciation, about 60 percent of housing markets remain below values reached during the bubble years, according to the analysis. Renters, to compare — with about 635,000 new renter households formed this year — paid $478.5 billion in 2016, up $17.7 billion from 2015. Apartment renters paid $50 billion more than single-family home renters, and the most rent was paid in New York and Northern New Jersey, at $55 billion.

Five Big Real Estate Trends to Watch in 2017

The election of real estate magnate Donald Trump as president likely will bring some dramatic changes in 2017 for the housing industry, which saw healthy increases in values this year thanks to low interest rates, lower gas prices, stronger wage growth and millennials entering the market. According to MarketWatch, here are five things to watch for in real estate in 2017. Drones Commercial use of unmanned aerial vehicles (UAVs), or drones, in 2017 has been cleared for takeoff by the Federal Aviation Administration, and the use of drones by the real estate industry likely will expand dramatically next year. While the use of drones to create flyovers of properties for real estate agents began to rise this year, home buyers and sellers will be able to use them as well by next year, as operators will no longer need a commercial pilot’s license to fly. However, some flights will need the FAA’s or local tower permission, along with a flight plan filed online. Prices for high-quality drones also are expected to drop to as little as $500, although drones with higher-end features — such as gyro-stabilized platforms that help steady the video images — still will still run $1,000 to $1,200. Not ‘mixed-use’ but ‘surban’ There’s been plenty written about the move from suburban-style sprawl to denser communities of different housing arrangements, such as town houses, apartments and single-family homes, together in the same neighborhoods. In 2017, look for a new name for it: “surban” — a blend of urban and suburban living. More existing suburban neighborhoods are adding urban amenities so people can live, work and play right outside of the core part of the city. Nearly 80 percent of residential growth is expected to occur in suburban communities during the next 10 years — up from 71 percent from 2010 to 2015 — compared with just 15 percent for “urban” areas through 2025. Forget the starter home, millennials want the move-up property More millennials — roughly, those born between the early 1980s and the late ’90s — are expected to buy a first home in 2017, according to the National Association of Realtors (NAR). Many of those buyers have saved enough to go with something more than a condo unit or a starter home, says Jessica Lautz, managing director for research at NAR. And with the markets doing so well, and interest rates as low as they are, millennials who have paid down their student debt and built up their cash may be in a position to buy more house than real-estate agents might think, she adds. Indeed, the NAR notes that in 2016, 17 percent of buyers under 35 were able to save enough for a down payment for a home within a year, compared with 14 percent of all age groups. And though it was lower than all other age groups, 37 percent of buyers ages 35 and younger said they were able to save enough for a down payment within six months, compared with 46 percent of all other buyers. How Trump’s win could change real estate Fears of recession could grow with a likelihood that Trump would cut government spending dramatically in his first year, and stock-market uncertainty increasing over just how his presidency will begin. As such, another year of low interest rates could be in the cards. Many experts see a Trump presidency being good for the housing and mortgage markets in the long term. Commitments to bringing regulatory relief — and regulatory certainty — to the financial-services industry should make more credit more available to average home buyers who have been locked out of the market by today’s tight credit standards. As a result, home buying should remain strong in 2017, which is good news for a market with low inventory. Start thinking about Generation Z It won’t be long before Gen Z reaches the market. They’re teenagers now, but this demographic is almost on the cusp of being able to buy homes, with the first Gen Z–ers reaching their 18th birthdays in 2017. According to the NAR, Gen Z will come of age with low interest rates, better job prospects and higher wages to help cushion the high costs of college education.

Number of Older Adults in the U.S. Expected to Surge, Highlighting the Need for Accessible Housing

By 2035, more than one in five people in the U.S. will be 65 and older and one in three households will be headed by someone in that age group, according to Projections and Implications for Housing a Growing Population: Older Adults 2015-2035, a new report conducted by the Harvard Joint Center for Housing Studies. This growth, the report says, will increase the demand for affordable, accessible housing that is well connected to services beyond what current supply can meet. According to the report, as the baby boomer generation ages, the U.S. population age 65 and older is expected to grow from 48 million to 79 million, and the number of households headed by someone 65 and older will increase by 66 percent, to nearly 50 million. This growth will increase the demand for housing units with universal design elements such as zero-step entrances, single-floor living, and wide halls and doorways. However, only 3.5 percent of homes offer all three of these features. “The housing implications of this surge in the older adult population are many and call for innovative approaches to respond to growing need for housing that is affordable, accessible and linked to supportive services that will grow exponentially over the next two decades,” says Chris Herbert, managing director of the Harvard Joint Center for Housing Studies. In the coming years, many older adults will have the financial means to pay for appropriate housing and supportive services that allow them to live longer in their own homes. However, many others will face financial hardships, particularly because their incomes will decline in retirement. Low-income renters are particularly vulnerable, notes the report, which projects that nearly 6.4 million low-income renters will be paying more than 30 percent of their income for housing by 2035. The report adds that 11 million homeowners also will be in this position by that time. In total, the report estimates, 8.6 million people will be paying more than half of their income for housing by 2035. The report also projects that 7.6 million older adults will have incomes that would qualify them for federal rental subsidies by 2035, an increase of 90 percent from 2013. “Today, however, we only serve one-third of those who qualify for assistance,” says Jennifer Molinsky, a senior research associate at the Joint Center and lead author of the report. “Just continuing at this rate — which would be a stretch — would leave 4.9 million people to find affordable housing in the private market.” In many surveys, older adults express a strong desire to live at home for as long as possible. Achieving that goal will require public and private action to support modifications to existing homes; steps to address the affordability challenges facing both owners and renters; and adapting the health-care system to enhance service delivery in the home. There also is a need to expand the range of housing options available to better meet the needs of an aging population and to improve options for older adults to remain in their community when their current home is no longer suitable. “Right now, more than 19 million older adults live in unaffordable or inadequate housing, and that problem will only grow worse in the next two decades as our population ages,” says Lisa Marsh Ryerson, president of AARP Foundation, which provided funding for the report. “This important follow-up study to Harvard’s ground- breaking 2014 report on housing America’s older adults not only calls attention to important trends but also helps point to the kind of solutions — requiring cross-sector collaboration between the housing industry, policymakers, and public, private and philanthropic organizations — that will fulfill older adults’ ardent desire to continue living independently at home with security and dignity.”

Resident Finds Perfect Harmony in Local Chorus

Sometimes when we meet up with the month’s newsletter raffle winner to present their gift certificate and take their photo, we realize what a great story they have to share with our community. Such was the case with last November’s winner, Konnie Kenny, who let us know about a show performed that month by the L.A. South Towns Chorus at the James Armstrong Theater. It turns out that Konnie has been singing with the L.A. South Towns Chorus for 13 years, and has performed in several of their shows. The L.A. South Towns Chorus was founded nearly 60 years ago by a group of women who loved to sing. Some of those original founders are still in the chorus. The group consists of over 60 women ranging in age from their 20s to the 90s, and from all walks of life. They meet locally every Monday to practice harmonizing in the a cappella style, produce their own annual shows and also enter in various competitions. “I love being part of the South Towns Chorus,” said Konnie, who is 82 years young. “I have to memorize the music and it keeps my brain going. Plus it’s such a fun group of women to sing and socialize with every week.” A singer most of her life, Konnie started in church choirs and then was introduced to barbership-style singing, joining the Treble Makers in 1980. She sang with them until they disbanded in 2003, and then became a member of the L.A. South Towns. She is also a big sports fan, and her two side-by-side televisions are frequently simultaneously running different sporting events (typically tennis, basketball or soccer). She was a passionate tennis player for 50 years until her knees forced her to stop recently. She also practices yoga. And you’ll probably never see Konnie without a hat on – she owns more than 40 of them and they certainly suit her. Before retiring, she was a secretary for 17 years at South Bay Engineering Corporation in Malaga Cove. Konnie and her husband bought their home in the Hollywood Riviera 50 years ago and raised three children here. “This is a great community to raise kids,” says Konnie. “I have great neighbors and lots of activities I enjoy. I’ll never leave.” To learn more about the L.A. South Towns Show Chorus, including how to join, go to www.lasouthtowns.org. Click Here to read Igor’s full Newsletter on Scribd.com –http://www.scribd.com/LiveInHollywdRiviera

Should Millennials Buy a Home or Rent?

Home ownership has reached a five-decade low, according to a recent report by the U.S. Census Bureau. This is due partially, the report says, to the fact that millennials have historically low ownership rates compared with other generations. Why aren’t more millennials willing to purchase a place to call home? Should they purchase homes or is it smarter for them to rent? GoodCall asked industry experts to weigh in on the trend of young professionals choosing to rent instead of buy. Here’s what the consumer-focused website discovered. • Buying may be more advantageous than renting for millennials who may be thinking about future family plans, says Bill Golden, an independent real estate agent with RE/Max Metro Atlanta Cityside. “If you’re planning on expanding your family, and the market is attractive for buyers, it may make sense to stretch a bit and buy a home now that would be suitable for a growing family,” he says • If not, Golden says you’re wasting money on rent and also guessing on the type of market you will encounter when you decide to enlarge your family and search for a house. • If you’ve allocated a specific amount to spend each month, Golden explains that you’ll need to decide the best way to spend it. “Depending on where you are looking to live, that may mean renting a three-bedroom, two-bath house with a yard, or buying a one-bedroom condominium,” he says. If you have a dog, for example, you should consider whether you would prefer to just open the door and let him out into the yard, or if you want to go through the hassle of walking him on a leash every time he needs to go outside. • For investment-minded millennials, Golden says they might consider whether their home should be one of their investments, or whether they’re throwing away money in rent that could be used for investing. “Of course, it’s also extremely important to remember that, in buying a home, you are building equity as time goes by, both by paying down on your mortgage, and hopefully, through appreciation of the property,” he says. • While some millennials may not want to purchase a home, many simply are not able to because of debt. Robyn Gilson, coach for Financial Education and vice president of Customer Experience at U.S. Bank, says that lingering debt and financial worries play a critical role in the home-buying decision. “Despite millennials’ well-publicized low rate of homeownership, our index found 76 percent feel being able to save for a home remains important to achieving an ideal home life — but only 37 percent feel satisfied in their ability to save.” • Gilson also says that any millennials who are thinking about purchasing a home will need to understand and then start building their credit score so they can qualify for a mortgage when the time comes. • Perceived job security is another contributing factor, according to Matthew Carbray, certified financial planner and managing partner of Ridgeline Financial Partners LLC and Carbray Staunton Financial Partners in Avon, Conn. “And, financially speaking, one needs ample money for a down payment, pre-paid items at a closing like property taxes, and also insurance and renovations,” says Carbray. • Even if you have a stable income, your home shouldn’t eat up all of your money. “If it would take every penny of your savings to make a down payment on a home, and you’re not certain of your ability to replenish that in the future, you may want to factor that into your decision,” Golden says. “There are many loan programs out there that can help first-time home buyers with down-payment assistance, or that don’t require a severed arm and leg to get a mortgage,” he adds. However, millennials should also consider their comfort level with the final estimate. Golden recommends getting pre-qualified for a mortgage. “That will enable you to make a more accurate comparison of what you can get for that money in a purchase versus a rental,” he says. • So, how much should millennials feel comfortable paying? “I typically recommend that prospective buyers put down no less than 20 percent of the purchase price, not only to avoid triggering the private mortgage insurance requirement, but also to secure reduced interest rates and closing costs, smaller monthly payments and instant home equity,” says Laurie Samay, a certified financial planner and client service and portfolio manager with Palisades Hudson Financial Group in Scarsdale, N.Y.

Four Future Home Design Trends

As the path to sustainable housing and technology widens, the housing market also is embracing automated technologies and wellness initiatives. From automation security to energy management, the home design of the future is both practical and efficient. Here, RISMedia takes a look at four trends dominating the market. Geofencing This is becoming a popular method to help protect and monitor your home. The technology creates a virtual perimeter around your home that connects to your smartphone. For example, if your children come home from school, their smartphones will set off a trigger and send an alert to your phone to let you know they made it safely. A geofence also can be used to monitor if they leave the house. If your children venture into a prohibited area or out of a safety zone, you could receive another alert on your smartphone. Keyless smart locks and wearable devices also can be used to monitor your home’s activity. Simply touch the lock with your device and your door will open. You also can set up your smart lock to alert you that people are coming and going from your home. Healthy living environments Healthy building materials and furnishings are increasing in demand due to more awareness on how your home can make you sick. A typical smart home model that focuses on healthy living and wellness might feature items such as cork floors, air-filtration and water-purification systems, a vitamin C shower, variable lighting to optimize your circadian rhythm and pedestal desks. Indoor gardening also has come into sharper focus in recent years, with all homes expected to be filled with vegetable planters and indoor gardens by 2025. Energy efficiency and docking stations Energy efficiency and electrical docking stations are some other recent trends. Think smart switches that connect all of your electronics and appliances to your Wi-Fi network. This allows you to plug your gadgets and appliances into the smart switch and connect it to your Wi-Fi network. Then you can monitor your usage from your smartphone, create schedules to turn appliances on and off, and adjust your lighting while you’re on vacation. Connected smart homes In the future, look for a connected and automated home that will allow all of your devices talk to each other and run themselves. New global standards-based wireless solutions will enable everyday objects to have network connectivity, allowing them to send and receive data.

The Biggest Décor Trends for 2017

Say good bye to granite countertops and hello to non-traditional options that express the homeowner’s individual perspective on decor. According to Trulia.com, the coming year will be less about opulence and fashion and more about comfort, ease and a sense of personal style. Here, some of the top looks that have registered on the radar of design experts, along with a few formerly popular decor ideas that will be on the wane in 2017. Cerused wood Also referred to as a limed-wax finish, this technique adds color to wood while also revealing its unusual grain. It’s expected to be big for cabinets and flooring, especially in dramatic hues of black, “greige” and dark gray. Marble surfaces In white or black, the material has jumped over from chic cafes and restaurants and into kitchens and bathrooms. It’s not just for countertops, though. Look out for marble motifs in carpets, wall-coverings and even fabrics. Shiny metal finishes Polished brass and bronze knobs, knockers, pulls and faucets are back in a big way. It’s a trend that’s easy to bring into your home — just swap out your current hardware. Matte appliances Appliances will go matte as an alternative to the classic stainless steel. Look for matte-finish appliances in dark hues to bring an element of drama into the kitchen. Animal-inspired textures Whether real or faux, leather, shagreen and parchment will be hot materials for 2017. Mainly, these hides will be used as an unexpected pop of texture in accent furniture. Patterned wallcoverings After years of solid walls, wallpaper is poised for a comeback. Designers are seeing an interest in all-over, dramatic patterns like paisley, over-scaled florals and abstract designs. You’ll see these wallcoverings in small spaces, like powder rooms, often in darker hues. Jewel tones Homeowners no longer are content with blank white walls. Jewel tones such as emerald and amethyst add warmth and personality to a space, particularly in entryways and small spaces. It’s not just about hue but also intensity. Even neutral paint colors such as gray can go bolder. Nailhead details Look for this classic trim to go beyond the sofa and be used as an accent on pieces such as storage chests, credenzas, and even light fixtures. They even form their own patterns — no longer limited to the edges. Overdyed rugs Overdyed rugs in neutrals and rich, saturated colors will show up for a pop of color and added dimension. These colorful showstoppers are practically pieces of art for your floor. Statement headboards Designers have noticed a pattern when it comes to beds: The emphasis is on a headboard rather than a traditional bed (the kind that comes with a matching footboard). And those headboards are statement pieces with bold silhouettes and luxe fabrics.

Mortgage Rates Spike

Freddie Mac’s most recent Primary Mortgage Market Survey shows average fixed mortgage rates moving significantly higher following the post-election sell-off in the Treasury market. “Last week’s election fell in the middle of our survey week, making it impossible to determine how closely the mortgage rate would track the post-election sell-off in the Treasury market,” says Sean Becketti, Freddie Mac’s chief economist. “This week, the verdict is in — over the last two weeks, the 30-year mortgage rate jumped 40 basis points to 3.94 percent, almost identical to the 39 basis point increase in the 10-year Treasury yield. If rates stick at these levels, expect a final burst of home sales and refinances as ‘fence sitters’ try to beat further increases, then a marked slowdown in housing activity.” Here, a snapshot of Freddie Mac’s survey findings: • The 30-year fixed-rate mortgage averaged 3.94 percent, with an average 0.5 point for the week ending Nov. 17, up from the previous week when it averaged 3.57 percent. A year ago at this time, the 30-year fixed-rate mortgage averaged 3.97 percent. • The 15-year fixed-rate mortgage averaged 3.14 percent, with an average 0.5 point, up from the previous week when it averaged 2.88 percent. A year ago at this time, the 15-year fixed-rate mortgage averaged 3.18 percent. • The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.07 percent, with an average 0.4 point, up from the previous week when it averaged 2.88 percent. A year ago, the five-year adjustable-rate mortgage averaged 2.98 percent.