Rather than easing back from the January level as expected, existing home sales shot significantly higher in February, The National Association of Realtors® (NAR) said pre-owned single-family houses, townhouses, condominiums, and cooperative apartments sold at a seasonally adjusted annual rate of 4.38 million units. This is an increase of 9.5 percent from the 4.0 million unit pace the previous month and the largest monthly increase since last February. Sales still trailed that month’s 4.53-million-unit rate by 3.3 percent.
Analysts polled by Econoday had a consensus estimate for sales of 3.92 million units while Trading Economics had projected the rate at 3.94 million.
Single-family home sales grew to a seasonally adjusted annual rate of 3.97 million in February, a 10.3 percent gain, but were down 2.7 percent year-over-year. The annual sales rate for condos and coops (410,000 units) was 2.5 percent higher than in January, but 8.9 percent below the February 2023 pace.
Despite the increase in sales, the number of homes available for sale also climbed, rising 5.9 percent from January and 10.3 percent from the previous February to 1,07 million units. This is estimated at a 2.9-month supply at the current rate of sales. Still, inventory remains well below the five-to-six-month supply considered a balanced market.
The median existing home price for all housing types in February was $384,500, an increase of 5.7 percent from $363,600 a year earlier. It was the eighth consecutive month of year-over-year price gains and was the highest price ever recorded for the month of February. The median price for a single-family home was $388,700, a 5.6 percent annual increase while condos appreciated by 6.7 percent to a median of $344,000.
First-time buyers were responsible for 26 percent of the month’s sales and individual investors or second-home buyers accounted for 21 percent. Thirty-three percent of sales were all-cash. Properties typically remained on the market for 38 days in February, up from 36 days in January and 34 days in February 2023.
Sales rose in three of the four major regions compared to January but remained below the pace a year earlier in all four. For the fourth consecutive month, the Northeast posted a sales rate of 480,000 units. This was 7.7 percent below the previous February’s number. The median price in the Northeast was $420,600, an increase of 11.5 percent from one year ago.
“Due to inventory constraints, the Northeast was the regional underperformer in February home sales but the best performer in home prices,” NAR chief economist Lawrence Yun said. “More supply is clearly needed to help stabilize home prices and get more Americans moving to their next residences.”
In the Midwest, existing home sales rose 8.4 percent to an annual rate of 1.03 million, a 3.7 percent deficit year-over-year. The median price moved higher by 6.8 percent to $277,600.
Existing home sales in the South jumped 9.8 percent from January to an annual rate of 2.02 million, down 2.9 percent from one year earlier. The median price in the South was $354,200, up 4.1 percent from last year.
The greatest increase was in the West with a surge of 16.4 percent compared to January. The annual rate of 850,000 units was 1.2 percent below sales the prior year. Prices also surged, rising 9.1 percent to $593,000.
National Association of Home Builders (NAHB) analyst Fan-Yu Kuo, writing in the Eye on Housing blog compared results of NAR’s Pending Home Sales Index (PHSI), a measure of signed purchase contracts thought to be a leading indicator of existing home sales, to recent completed transactions. Kuo said the PHSI fell from 78.1 to 74.3 in January. On a year-over-year basis, pending sales were 8.8 percent lower than a year ago per the NAR data.
Existing-home sales jumped unexpectedly in February to the highest monthly increase recorded in a year, according to the National Association of Realtors (NAR).
Total existing-home sales — which includes previously owned single-family homes, townhomes, condominiums and co-ops — increased 9.5% from January to a seasonally adjusted annual rate of 4.38 million in February. But sales are still down 3.3% from last year, when 4.53 million were recorded for February 2023, a NAR report released Thursday said.
“Additional housing supply is helping to satisfy market demand,” said NAR chief economist Lawrence Yun. “Housing demand has been on a steady rise due to population and job growth, though the actual timing of purchases will be determined by prevailing mortgage rates and wider inventory choices.”
While Americans may want to buy houses, scarce supply, inflated prices and high mortgage rates have made home ownership unaffordable for many. Housing inventory in 2022 dipped to its lowest point since the Federal Reserve began tracking the data in 2016, while housing costs reached record highs.
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Home prices and associated costs have followed the same inflationary trend as the rest of the economy since President Biden assumed office in January 2021.
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Compared to three years ago, the median price for existing-home sales has increased 25%, from $307,400 in January 2021 to $384,500 in February 2024, according to NAR data.
Existing home sales were 6.6 million when Biden took office and have since fallen to 4.38 million, according to Thursday’s report — a 34% decrease.
Not only are house prices up and supply down — home loan costs have skyrocketed. As of February, the monthly mortgage payment on an existing home was $2,001, according to NAR. That compares to a January 2021 reading of $1,009 and represents a walloping 98% increase.
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Mortgage rates, which were an average 2.79% in January 2021, are now 6.78%.
For those who can’t afford a home or don’t wish to purchase one, rent is also more expensive. The average monthly rent for a two-bedroom apartment in the U.S. was $1,132 in January 2021. Now the average rent for an apartment that size has climbed 20% to $1,363 per month, according to data from apartmentlist.com.
Housing costs are expected to keep rising so long as there is strong demand and limited supply.
“Home sales dipped in February compared to a year earlier because not enough homes were on the market to meet demand,” explained Holden Lewis, a home and mortgage expert with NerdWallet.
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According to the NAR report, total housing inventory at the end of February — the number of homes listed for sale — was 1.07 million units, a 5.9% increase from January and 10.3% surge from 970,000 units one year ago.
“Just 1.07 million existing homes were for sale at the end of February. In the same month five years earlier, before the pandemic, there were 1.63 million homes on the market. Consequently, many more homes were sold back then,” Lewis said. “Because demand exceeds supply, buyers are competing with each other and driving up prices.”
Regional sales climbed in the West, South and Midwest, but remained unchanged in the Northeast, the report said. Year-over-year sales declined in all regions.
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Housing became more expensive in all major U.S. regions as well, according to NAR. The median existing-home price for all housing types in February was $384,500, an increase of 5.7% from February 2023, according to NAR.
“Due to inventory constraints, the Northeast was the regional under-performer in February home sales but the best performer in home prices,” Yun said. “More supply is clearly needed to help stabilize home prices and get more Americans moving to their next residences.”
Original article source: How it Started… How it’s Going: Home sales down, housing prices, mortgage rates up since Biden took office
Prospects for the spring market look a bit brighter as January numbers show an increase in both the pace of existing home sales and the size of the unsold inventory. The National Association of Realtors® (NAR) said sales of pre-owned single-family houses, townhomes, condominiums, and cooperative apartments were at a seasonally adjusted annual rate of 4.00 million. This was an increase of 3.1 percent from the December rate of 3.88 million and was 1.7 percent below the pace in January 2023. December sales figures were also revised slightly higher, cutting the previously reported year-over-year decline nearly in half to -3.7 percent.
Single-family home sales rose from 3.48 million in December to 3.6 million, a gain of 3.4 percent, and remained lower year-over-year by 1.4 percent. Condo sales were flat at an annual rate of 400,000 and were 4.8 percent lower than one year earlier.
Existing home sales beat analysts’ expectations, but not by much. The consensus forecast from Econoday was 3.97 million.
“While home sales remain sizably lower than a couple of years ago, January’s monthly gain is the start of more supply and demand,” said NAR Chief Economist Lawrence Yun. “Listings were modestly higher, and home buyers are taking advantage of lower mortgage rates compared to late last year.”
Those listings did expand in January, up 2.0 percent to 1.01 million units. This is estimated to be a 3.0-month supply at the current rate of sales, but that estimate is virtually unchanged from that in both December and January 2023. Properties typically remained on the market for 36 days in January, up from 29 days in December and 33 days in January 2023.
NAR’s current president Kevin Sears said the association has been pushing Congress to pass H.R. 1321, The More Homes on the Market Act. The bill would lower taxes on home sales and hopefully bring additional inventory to the market. “More listings will help Americans move,” Sears said.
Home prices continued to rise, posting the seventh consecutive month of annual price gains. The median for all residential sales climbed 5.1 percent to $379,100. The median single-family home price was up 5.0 percent to $383,500 while condo prices appreciated 5.7 percent to $321,100.
The median home price reached an all-time high for the month of January,” Yun said. “Multiple offers are common on mid-priced homes, and many homes were still sold within a month. The elevated share of cash deals – 32 percent – indicated a market full of multiple offers and propelled by record-high housing wealth.”
First-time buyers were responsible for 28 percent of January sales and individual investors and second-home buyers accounted for 17 percent. Only 2.0 percent of sales were considered to be distressed.
All four major regions posted annual price increases but only one saw annual growth in sales. In the Northeast the sales rate of 480,000 units was unchanged from December but 5.9 percent lower than in January 2023. Median prices jumped 10.1 percent to $434.300.
A 2.2 percent increase brought Midwest sales to an annual rate of 950,000 in January, down 3.1 percent for the year. The median price was $271,700, up 7.6 percent from January 2023.
Existing home sales in the South rose 4.0 percent from December to an annual rate of 1.84 million, closing to within 1.6 percent of sales 12 months earlier. Median prices were up 4.1 percent to $345,100.
Sales in the West rose 4.3 percent compared to December to 730,000 annual units, 2.8 percent higher than the prior January. The median price in the region gained 6.3 percent to $572,100.
When comparing data from 2020, there was a noticeable shift towards utilizing homeowners’ associations’ (HOA) questionnaires and lender project approval lists as key information sources for condo underwriting. As for risk factors, HOA financial instability and deferred maintenance remained high on the list of lenders’ top concerns. The survey also noted a rise in concern … [Read more…]
Most people have spent their entire lives living with other people, whether it’s their parents or a roommate. And while it’s great to have company in your home, sometimes the thought of having your own space sounds liberating. You can come and go as you please, you don’t have to worry about another person’s life, you can decorate with your favorite items and colors and relax in your pajamas until noon without being criticized.
However, living alone can also have its pitfalls, including concerns about security and nervousness around feeling lonely. While it’s legitimate to have a fear of living alone, there are ways to overcome it.
Reasons you may fear living alone
All of us at one point or another feel lonely or have had the fear of being alone. However, there are many different reasons people are afraid to live alone ranging from having anxiety, being scared or worrying about loneliness. These fears are amplified if you’re a woman.
However, we’ve got good news. There are several simple steps you can take to help make your abode more secure, boost your comfort level and enjoy your freedom to its fullest. But first, let’s examine some reasons you fear living alone and some symptoms that go along with it.
Mental health conditions and anxiety disorders
Mental health and different forms of anxiety can make the idea of living alone extremely difficult. Whether it’s a specific disorder or a fear from a previous traumatic experience, it’s a good idea to do some research on symptoms of phobias and how to overcome them with treatment.
And don’t worry, you’re not alone. In recent years, studies have shown that Millenials are the loneliest generation next to Gen X and Babyboomers.
Remember, it’s always good to keep an eye on your mental health and phobias and to do so, there are several different online medical resources — such as Healthline Media — that use academic research institutions and do peer-reviewed studies to help you better understand mental disorders and specific phobias. If you live outside the U.S., there are different resources for you, such as Anxiety Care UK.
Here are a few other anxiety disorders and phobias that could lead to feelings of anxiety about living alone.
Monophobia or Autophobia
Many people experience some form of anxiety or specific phobias and one type is Monophobia, or Autophobia, which is the fear of being alone. Autophobia is currently not an official diagnosis by the Diagnostic and Statistical Manual of Mental Disorders fifth edition, which has strict sourcing guidelines. However, it’s currently a subcategory of other phobias.
Understanding autophobia is difficult as this particular phobia can manifest differently from person to person. Some people might experience the fear of being separated from a specific person, while others might experience fear of being home alone or fear the feeling of being lonely.
However, it’s important to note that this phobia is different than just feeling lonely. According to Medical News Today, “Loneliness refers to negative emotions that arise when a person feels that they have too few social interactions or meaningful connections… Having autophobia involves severe anxiety triggered by the idea of spending time alone.”
This form of anxiety can manifest with different physical symptoms. Here are some of the common symptoms of this phobia including heart palpitations, chest pain, sweating, shaking and chills. There are different types of treatment for autophobia and other phobias, some of which include, cognitive behavioral therapy, speaking to a mental health professional and exposure therapy.
Separation anxiety disorder or severe anxiety
Severe anxiety is not the same as a phobia. As mentioned, there are several different anxiety disorders and one of them is separation anxiety. This disorder can come from underlying issues from childhood, such as parental divorce or other childhood experiences that can sometimes lead into adulthood. There are different anxiety symptoms ranging from the fear of leaving home to the fear of leaving a loved one.
As for every other anxiety disorder, there are different anxiety levels that can go anywhere from extreme distress to panic attacks. The good news is there are different forms of treatment that can help reduce your fear caused by separation anxiety symptoms.
If at a certain point you want to work on your specific phobias or fear, find someone who can provide medical advice who knows your medical history. While you can try to self-regulate, there are treatment plans a therapist can help you with to help you overcome fear, including providing medical advice, exposure therapy or avoiding anxiety triggers.
Safety
Even if you don’t have a fear of being alone, safety is a concern when it comes to living alone. It can even give you trouble sleeping or provide doubts about even considering living alone. And, wanting to feel safe isn’t a bad thing, especially when there are situations, such as burglars, that are an actual threat.
If it makes you feel better, you can go to extreme lengths to make yourself feel physically safe in your own home. Consider products such as AddaLock or alarms to make your home feel safer and take away your fear.
Community
Another reason some people don’t like the thought of living alone is the sense of loneliness or a loss of community. We all rely on relationships in our everyday life, whether it be friends or family. These relationships are what make our lives full and interesting. When you feel like you’ve lost that, it’s hard and isolating.
However, just because you live alone doesn’t mean you are alone. Living alone can actually be a great way to cool down and give yourself a place to regroup after being around so many people.
How to help overcome the fear of living alone, or autophobia
Whether you have a fear or phobia of being alone or are just worried about loneliness, there are ways to overcome it. The following 13 strategies will help you get over your fear of being alone.
1. Do small things alone first
If you’re not used to being alone, then it might be a good idea to start doing small things alone first. Take yourself to lunch and enjoy the bliss of eating solo or take yourself to a movie and rejoice in being able to eat the popcorn all by yourself. No matter what kind of activity you pick, this is a great place to learn how to be your own best friend.
2. Get to know your neighbors
Once you get settled in, spend a few days checking out who lives around you. Listen to your gut and introduce yourself to those who seem trustworthy and start to build a relationship. Elderly couples and other women living alone is a good start.
We’re not talking about spending time with them, you don’t even have to become best friends. But having a neighbor to turn to, whether it’s to borrow a cup of sugar or to ask for help in an emergency, will go a long way toward helping you feel comfortable living alone. It would be an added bonus if you ended up with some new friends who would help with loneliness.
3. Keep friends and family in the loop
Whether you’re headed out on a date, going for a run in the park or traveling with your girlfriends, let your friends and family know your plans. You might consider using one of these free personal security apps, which will notify your emergency contacts if you don’t arrive at your destination. Plus, they offer a handful of other security features, like GPS tracking.
4. Keep your eyes wide open
Stay alert, stay alive. This is especially true when you’re entering and exiting your apartment. Be aware of the people in your surroundings and if a person gives you bad feelings, trust it and get to a safe place immediately.
When you’re in the parking lot of your apartment or condominium, keep your keys in hand and walk with confidence and focus. You may consider calling a friend and talking on your phone until you’re safely inside your car or in your home.
5. Purchase a security system
You don’t have to have a phobia or fear to have a security system. Security systems are no longer reserved for sprawling suburban estates. These days, well-respected security companies like Ring, ADT, FrontPoint and Protect America offer effective, budget-friendly security systems that are perfect for apartments, condominiums and lofts.
Opt for a wireless system so you don’t have to drill holes. As a bonus, wireless security systems are notoriously easy to install and when you’re ready to move, many providers will let you take your system with you.
Don’t open the door to anyone who knocks or rings the doorbell. Look through the peephole or ask the person for identification. If you feel uncomfortable opening the door, ask them to return at a later time. Or, you can call a neighbor and ask them to keep you company as you let the person visiting in.
6. Get a four-legged companion to ease autophobia
Nothing beats being greeted by a wagging tail after a long day at work. In addition to warming your heart and curing your loneliness, Fido can deter criminals and help alert you to danger. Of course, you’ll want to check with your landlord to make sure they allow pets before picking up your new furry friend.
7. Don’t blab about what you’re up to
Having some fear is good when it comes to keeping you safe. Whether it’s a friendly cashier or a new acquaintance, be wary of telling anyone you don’t know well that you live alone.
And while it’s tempting to update Facebook or Instagram with your whereabouts, doing so can put you in harm’s way. Avoid social media updates that can clue people into the fact that you live by yourself.
8. Give your home a lived-in look
Letting your mail pile up in the mailbox can tip off criminals you’re not home. If you’re going out of town, ask a trusted neighbor to keep an eye on your apartment. Consider putting interior lights on timers, so your apartment always appears occupied.
9. Cozy up your residence
Living alone is fabulous when you crave solitude, but it can get a bit lonesome. Make your residence a comfortable and lovely space, with pictures of friends and family and sentimental items like a favorite throw blanket or a beloved scented candle to combat loneliness.
Turning up the tunes can boost your spirits and mask those random creaks so you feel more at ease. Of course, you don’t want to upset your neighbors, so keep the volume reasonable. And don’t overdo it in the late hours. Voilà, home sweet home!
10. Pump up your social life
Loneliness is a state of mind more than anything else, but it doesn’t hurt to keep an active social life. Consider hosting a dinner party or inviting a few girlfriends over for a happy hour. Good company and laughter will make your house feel like a home in no time.
11. Lock doors and windows
No one wants to feel like they’re living in a high-security prison, but keeping doors and windows locked can offer you a valuable sense of security and ease your fear of living alone. Many apartments have sliding glass doors, often with subpar locks. Secure a sliding glass door with a metal sliding glass door lock or pole to help secure it. Remember to lock your door when you step out, even if it’s just for picking up the mail or keeping the trash out. It only takes a moment for someone to sneak in, so it’s better safe than sorry.
Before you move in, don’t hesitate to check that all door and window locks work properly. If they don’t, have the landlord fix them before you sign the lease.
12. Get informed about crime trends
Discovering what type of crime is happening in your neighborhood can help you feel more secure in your apartment because you’re more aware. There are a number of free crime-mapping websites, such as CrimeMapping.com, that reveal the location and type of crime, as well as the date of occurrence.
13. Have an exit plan
Create an exit plan in case of an emergency, such as fire, natural disaster or a break-in. If you will be out of your home for a few days, know whom you can stay with. Include your friends in the plan, so they can support you when needed. Keep all the items you want to take with you in the same room to create a calm and controlled setting in an emergency.
Living alone is fun!
Living on your own is a fun, exciting adventure. Make sure to take care of your mental health and make the most of this experience by using these tips to avoid the fear of living alone.
You may have a preconception about moving to Omaha. But once you’re in the city, it exceeds expectations and is a place you don’t want to leave.
Omahans enjoy outstanding attractions, such as the Henry Doorly Zoo and Aquarium, considered one of the top zoos in the world. With nearly 130 acres of indoor and outdoor exhibits, the zoo claims to have the world’s largest indoor desert dome and the top indoor rain forest in North America. The African Grasslands and Asian Highlands feature animals in natural settings.
The Durham Museum showcases Omaha’s history, such as its early days as a railroad center and the site of the 1898 World’s Fair, a.k.a. Trans-Mississippi Expedition. Outdoor attractions include Fontenelle Forest, with more than 15 miles of natural trails among the bluffs overlooking the Missouri River, as well as the downtown riverfront, which is home to the Bob Kerrey Pedestrian Bridge, one of the longest bridges connecting two states as Nebraska and Iowa meet in the middle of the river.
Omaha’s culinary scene rivals that of many bigger cities in the U.S. With several James Beard Foundation-nominated chefs, you’ll find restaurants featuring fresh handmade dishes from around the world. Farm-to-table dining is popular, with restaurants like The Grey Plume, Dante and Au Courant leading the way. It’s hard to taste better Italian dishes than you’ll find at Lo Sole Mio or Malara’s. South Omaha is ripe with authentic Mexican eateries.
While the city doesn’t have any major league sport, it’s an amateur sports mecca. From the College World Series in June to hosting multiple U.S. Olympics trials, including swimming and curling events, Omaha attracts hundreds of thousands of fans to the area. Omaha is also home to the Storm Chasers, the top minor league baseball team for the Kansas City Royals.
Keep on reading to see if moving to Omaha is a fit, and why you’ll love to live there and strive to keep it “America’s best-kept secret.”
Omaha overview
Omaha is home to four of Forbes Top 500 companies, led by Berkshire-Hathaway. With local billionaire Warren Buffett at the helm, Berkshire-Hathaway is among the top five companies by Forbes. Other top Forbes companies include Union Pacific (No. 141), Mutual of Omaha (337) and Kiewit Corp. (339).
While enjoying major economic success, Omaha maintains a Midwestern small-town feel, where it’s common for people to say hi as they see you on the street and hold the door for you when entering buildings.
While experiencing growth and development in neighborhoods across the city, the Omaha cost of living continues to remain strong, along with steady job growth.
Population: 478,192
Population density (People per square mile): 3,217.9
Median income: $59,266
Studio average rent: $864
One-bedroom average rent: $946
Two-bedroom average rent: $1,173
Cost of Living index: 93.4
Popular neighborhoods in Omaha
Moving to Omaha offers you a chance to explore the city’s history, culture and diversity. While west and southwest Omaha offers the feel of suburbia, Omaha’s most popular neighborhoods remain the oldest and most upscale.
From the riverfront to midtown, you’ll find a mix of older and contemporary apartments and condominiums to call home, while also enjoying easy access to culture, parks, vintage shops and a fun nightlife scene, featuring outstanding eateries and bars.
Old Market: Old Market is the heartbeat of Omaha. The nine-block area hosts one of the Midwest’s longest-running farmers markets each summer and fall. The entertainment district is family-friendly during the day, with restaurants, shops and galleries open, before becoming an adult-centric neighborhood at night, as couples dine out and then hit bars and clubs, creating a fun, party atmosphere.
Benson: One of Omaha’s oldest neighborhoods, Benson is an eclectic mix of art galleries, coffee shops, craft breweries and restaurants. Toss in vintage and unique clothing shops, and you’ve found the city’s “Hipster” area. During “First Fridays,” galleries and other businesses stay open later on the first Friday of each month, along with entertainment and even food trucks lining the streets.
Midtown: Popular with young professionals moving to Omaha, Midtown is a mix of contemporary apartments and condos with older homes. The Midtown Crossing entertainment district is home to some of the best restaurants in Omaha, as well as unique retail outlets. Midtown is the site of the Jazz on the Green festival each summer.
Dundee: Considered Omaha’s first suburb, Dundee is home to classic apartments, as well as modern outlets. With fantastic local eateries, such as Ahmad’s Persian Café, Saddle Creek Breakfast Club and J. Coco, calling the area home, it’s one of the city’s best dining areas. It’s also home to Warren Buffett, whose house in Happy Hollow borders the neighborhood.
Blackstone: Nestled between Midtown and Dundee, Blackstone is one of Omaha’s newest entertainment districts. Heavy on restaurants and bars, such as Noli’s Pizzeria and Butterfish, it also offers excellent spots to relax and enjoy a treat or coffee at Coneflower Creamery and Archetype Coffee.
The pros of moving to Omaha
Omaha offers people excellent attractions, restaurants, outdoor activities and a sports scene that makes other cities jealous. With plans to expand the riverfront, downtown Omaha will rank as one of the most beautiful and fun areas in the Midwest. Here are three reasons why you’ll enjoy moving to Omaha.
Excellent employment opportunities
With one of the lowest unemployment rates in the United States at less than 5 percent, Omaha is home to major leaders in healthcare, transportation, agriculture and insurance. Several people moving to Omaha are with companies, such as Union Pacific, Pacific Life and Aflac.
Tech companies are finding their way to Omaha, with the city earning the nickname “Silicon Prairie,” as Facebook and Google are among companies opening data centers in the area.
Enjoy the commute
Nicknamed the “15-minute City,” Omaha is easy to get around. The commute is actually about 20 minutes, as the city grows and expands its boundary westward. Regardless, the main thoroughfares, such as Dodge, Maple, Pacific and Center streets, run east-west, while the interstate system continues to add lanes to ease morning and afternoon commute issues.
The cost of living is a huge plus
With a cost of living index rating of 93.4, among the best in the United States, moving to Omaha benefits you financially. Everything tends to cost less here than in other cities of similar size, such as groceries, utilities, rent and gasoline. You can enjoy an evening out on the town without worrying about mortgaging the farm.
The cons of moving to Omaha
While Omaha enjoys economic success, the city faces challenges to keep its young professionals in the area, among other issues. Here are three areas of concern when considering moving to Omaha.
Lack of diversity
Whites make up about 66 percent of the population, while the African American community is the largest ethnic minority, accounting for about 12 percent of the city’s population. Hispanics make up about 11 percent, while Asian Americans and Native Americans account for about four percent.
While Omaha hasn’t experienced racial tensions like other cities, people have targeted minorities as a way of gaining political power, including focusing on undocumented workers or perceived high crime rates. Minority residents have protested unfair treatment by law enforcement and the court system.
Public transportation is a challenge
Omaha is a car city. Without a vehicle, you’ll be challenged to easily get around town. While Uber and Lyft are successful in Omaha, the city’s public transportation system is lacking for many residents.
With bus routes that run east-west, focusing on stops toward downtown, the Metro Transit system doesn’t run 24/7, which impacts people who prefer using public transportation. The new ORBT route runs from the Westroads Mall to downtown, but again, it’s not designed for 24/7 service.
Winter can be severe
Winters in Omaha are hit-or-miss — it may snow a lot or just a few inches. However, when it gets cold and snowy, traffic comes to a standstill. Literally. You’ll find parking lots on some of the main routes, because, as people joke, “two inches of snow shuts down the city.” Snow removal is an annual challenge, as well as the potholes that come with the winter season.
How to get started on your move to Omaha
Omaha’s attractions, culinary scene, sports community and commute are winning factors to consider when it comes to moving to Omaha. Regardless of the neighborhood you choose to call home, you’ll only be minutes from most major attractions, parks and restaurants.
To assist with your move as you pack up to head to the Big O, visit our Moving Center to get free quotes and more information about planning your move. Also check out available apartments for rent and homes for sale – you can’t move if you don’t have a place to live, after all.
Rent prices are based on a rolling weighted average from Apartment Guide and Rent.’s multifamily rental property inventory of one-bedroom apartments. Data was pulled in December 2020 and goes back for one year. We use a weighted average formula that more accurately represents price availability for each individual unit type and reduces the influence of seasonality on rent prices in specific markets.
Population and income numbers are from the U.S. Census Bureau.
Cost of living data comes from the Council for Community and Economic Research.
The rent information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.
Tim is an Omaha-based freelance writer, online content creator and author who loves exploring the Midwest and beyond. In addition to writing The Walking Tourists travel blog, he has co-authored three books with his wife, Lisa: 100 Things to Do in Omaha Before You Die, Unique Eats and Eateries of Omaha, and 100 Things to Do in Nebraska Before You Die. Tim is a dad to two daughters and three cat sons. He is an avid sports fan, primarily enjoying football and hockey.
There’s no denying it, the Big Nashty is the place to be.
The Nashville housing market has been a hot topic of discussion in recent years. As the city continues to thrive and attract new residents, buyers and renters need to understand the current state of the housing market and rental market in Nashville.
In this article, we will delve into the key factors shaping the Nashville housing market in 2024, including supply and demand, home prices, rental market dynamics and future projections. Grab your cowboy boots and your trusty six-string because we’re exploring Nashville in all its glory.
Overview of the Nashville housing market
Known to many as Music City, Nashville has experienced significant growth in recent years. With a healthy economy, a legendary music scene and a desirable quality of life, it’s no wonder that people are flocking to this city in search of new opportunities. However, this rapid population growth has put immense pressure on Nashville’s housing and rental market.
Population growth and housing demand
One of the primary drivers of the housing market in Nashville is the city’s population growth. According to the latest data, Nashville has experienced a population increase of over 10% in the past five years. This surge in population has created a high demand for housing, leading to increased competition and rising prices.
Supply constraints and affordability challenges
While the demand for housing in Nashville continues to rise, the supply has struggled to keep pace. This supply-demand imbalance has resulted in skyrocketing home prices and limited housing options for buyers. As a result, affordability has become a significant concern for many residents, especially first-time homebuyers.
Pricing trends in the Nashville housing market
The housing market for homes in Nashville has seen a consistent upward trend in prices over the past few years. This rise in prices can be attributed to a number of factors, including limited inventory, strong demand and other economic conditions. Let’s take a closer look at the pricing trends in different segments of the Nashville housing market.
Single-family homes
Single-family homes have experienced substantial price appreciation in Nashville. The median home price in the city has decreased by 6.1% over the past year, reaching an all-time high of $465,000. This price surge can be attributed to the high demand for single-family homes and the limited inventory availability.
Condominiums and townhouses
The condominium and townhouse market in Nashville has also witnessed significant price growth. With a median price increase of 36.4% in the past year, these properties have become increasingly popular among buyers looking for a more affordable option in the city. However, even with the price appreciation, condos and townhouses still offer a more affordable entry point into the Nashville housing market than single-family homes.
Rental market dynamics in Nashville
In addition to the buying market, the rental market in Nashville is also experiencing its fair share of challenges and opportunities. Let’s explore the key dynamics shaping the rental market in the city.
High demand and low vacancy rates
Similar to the real estate market, the rental market in Nashville is characterized by high demand and low vacancy rates. With an influx of new residents and a limited supply of rental units, competition among renters has intensified. As a result, rental prices have been on the rise, making it increasingly challenging for tenants to find affordable options.
Luxury rentals and amenities
As the demand for rentals continues to grow, developers have been focusing on luxury rental properties with upscale amenities. These high-end rentals cater to professionals and individuals looking for a premium living experience in Nashville. From rooftop pools to fitness centers and concierge services, these luxury rentals offer a wide range of amenities to attract tenants.
Future projections and outlook for the Nashville housing market
Looking ahead, what can we expect for the future of the Nashville housing market? While it’s challenging to make precise predictions, several factors may influence the market in the coming years.
Continued population growth
Nashville’s population is projected to continue growing in the foreseeable future. As more people are drawn to the city’s strong culture and fruitful job market, the demand for housing will likely remain high. This sustained population growth will put further pressure on the housing market, potentially leading to even higher prices and increased competition.
Infrastructure and development
To accommodate the growing population, Nashville has been investing in public infrastructure and large-scale development projects. These initiatives aim to improve transportation, expand housing options and enhance the overall quality of life in the city for all residents.
Find a new place in Nashville
The Nashville housing market is experiencing significant challenges and opportunities in 2024. With a rapidly growing population and limited housing supply, the market is characterized by high demand, rising prices and affordability concerns. Buyers and renters face intense competition, making it crucial to stay informed and prepared. As the city continues to evolve, it will be fascinating to see how the Nashville housing market adapts and thrives in the years to come.
When you’re ready to stake your claim in the Nashville market, you know where to start your search for a Nashville apartment or house.
Welcome to Summerlin, the epitome of tranquility and luxury living in the heart of Las Vegas.
With its meticulously designed neighborhoods and vast array of exclusive amenities, Summerlin truly embodies the perfect blend of opulence and serenity.
From exquisite gated communities to world-class golf courses and award-winning schools, every aspect of life in Summerlin is centered around providing the utmost comfort and convenience.
And people have started to take notice.
Summerlin has seen an influx of new residents in the past few years, fast becoming Nevada’s top-selling community.
In the first half of 2023 alone, an impressive total of 544 new homes were sold in the master-planned community, pushing it to rank #5 nationally in new home sales in a recent midyear report by national real estate consultant RCLCO.
Celebrities too have been flocking to the area, with A-listers like Mark Wahlberg ditching the glamorous L.A. lifestyle and buying homes in Summerlin, Nevada.
To get a better feel of the local real estate market, we’ve reached out to industry expert Cami Lincowski, a prominent luxury Las Vegas real estate agent and former star of HGTV’s Say Yes to the Nest.
Talking about the appeal of the area of its rise in popularity, Cami tells us that “Summerlin is not only thriving, but when you throw in the latest and greatest shopping & high-rated restaurants the valley has to offer; there’s no denying that this area ranks amongst the top cities to call home.”
So let’s take a closer look at what makes this Las Vegas Valley community such a great place to live.
The luxury lifestyle in Summerlin
Summerlin is synonymous with luxury.
This master-planned community boasts some of the most prestigious homes in Las Vegas, offering residents an unparalleled level of elegance and sophistication. From sprawling mansions to stylish townhouses, Summerlin has something to suit every taste and preference.
The meticulously designed neighborhoods of Summerlin showcase architectural excellence and attention to detail.
Gated communities like The Ridges, Tournament Hills, The Lakes, and Red Rock Country Club provide residents with a sense of exclusivity and security. Impeccably landscaped streets and manicured lawns add to the overall aesthetic appeal, creating a sense of grandeur at every turn.
More recently, The Summit Club has emerged as the pinnacle of luxury living in Summerlin. The 555-acre resort community south of The Ridges (and only 9 miles away from the Las Vegas strip) is the only fully private residential golf and lifestyle club community in all of Las Vegas.
In addition to the stunning homes, Summerlin offers a wealth of amenities that cater to the luxury lifestyle.
Residents have access to world-class golf courses, private country clubs, and state-of-the-art fitness centers. The community also boasts a wide range of recreational facilities, including tennis courts, swimming pools, and parks, ensuring that there is always something to do for those seeking an active lifestyle.
The real estate market in Summerlin
The real estate market in Summerlin is thriving, thanks to its reputation as one of the most desirable places to live in Las Vegas. But you do have to have deep pockets – or an outstanding credit score – to afford to buy here.
The demand for homes in Summerlin has been steadily increasing over the years, leading to a rise in property values. The community’s prime location, coupled with its exceptional amenities and quality of life, make it an attractive choice for both homebuyers and investors.
But despite being a top luxury home destination, Summerlin’s house prices can accommodate a wide range of budgets — and are considerably less prohibitive compared to those found in other top luxury markets on the West or East Coasts.
“Anyone can call Summerlin home,” luxury agent Cami Lincowski tells us. “With price ranges starting at $400k & tipping the scale at $15m+, this city is not just made of city lights, but all walks of life.”
The community offers a wide range of housing options, from single-family homes to luxury condominiums and townhouses.
Whether you are looking to buy a home or invest in real estate, Summerlin offers a wealth of opportunities. The community’s diverse housing options cater to a range of budgets and lifestyles, ensuring that there is something for everyone.
Celebrities that call it home
With the Mansion Tax adding fuel to the California exodus, many of the Golden State’s affluent residents started flocking to new luxury markets — with A-listers and famous individuals choosing to make Las Vegas their new primary residence.
Naturally, Summerlin emerged as a top choice.
Celebrities to have called Summerlin home include actor Mark Wahlberg (who sold his sprawling $55 million LA mansion to move here), Grammy Award-winning singer Celine Dion, who sold her freshly-built Summit Club house for a record $30 million, and several Golden Knights players.
NHL pro Max Pacioretty played only four seasons with the Vegas Golden Knights (2018-2022) but went all in when it came to making himself at home in Sin City. The Carolina Hurricanes left winger owned a 10,000+ sq. ft. home in The Ridges community, which he sold for top dollar last year.
Pacioretty’s spectacular estate “netted” a cool $11 million, a record for the high-end The Ridges community.
Rob Roy, the CEO, founder, and chairman of Switch Communications Group, also paid $33 million for 5 acres to build a luxury estate in the same Summerlin resort community.
And while Wahlberg recently sold one of his Summerlin homes for $16.6 million one year after buying it, he made it clear he loves living here and has no plans of leaving the Las Vegas community. He’s just waiting for his other mansion to be completed.
Top neighborhoods in Summerlin
Summerlin is home to a number of top-notch neighborhoods, each with its own unique charm and character. Here are some of the most sought-after areas in the community:
#1 The Ridges
Located at the base of the Red Rock Canyon, The Ridges is an exclusive gated community known for its luxurious homes and breathtaking views. With its private golf course and world-class amenities, it is one of the most coveted neighborhoods in Summerlin.
#2 Tournament Hills
Situated around the TPC at Summerlin Golf Course, Tournament Hills offers residents the opportunity to live near one of the best golf courses in Las Vegas. The neighborhood features a mix of custom-built homes and luxury estates, providing a premium living experience.
#3 The Gardens
Nestled among lush green landscapes and scenic walking trails, The Gardens is a peaceful and picturesque neighborhood in Summerlin. With its tree-lined streets and well-maintained parks, it offers residents a serene and idyllic setting.
Tranquility and natural beauty
One of the most remarkable aspects of Summerlin is its breathtaking natural beauty.
Nestled against the majestic Red Rock Canyon, the community offers stunning views of the surrounding desert landscape. The vibrant hues of red and orange against the clear blue sky create a picturesque backdrop that is hard to find elsewhere in Las Vegas.
Summerlin is a nature lover’s paradise, with over 150 parks and more than 150 miles of trails to explore. Whether you enjoy hiking, biking, or simply taking a leisurely stroll, there is a trail for every skill level. The community is also home to numerous lakes and ponds, perfect for fishing or enjoying a peaceful picnic by the water.
For those seeking a more tranquil experience, Summerlin offers an abundance of peaceful retreats. The community’s botanical gardens and meditation centers provide a serene environment for relaxation and introspection. Escape the hustle and bustle of city life and immerse yourself in the tranquility that this community has to offer.
Amenities and recreational activities
Summerlin is not just a place to live; it is a lifestyle.
The community offers an impressive array of amenities and recreational activities that cater to residents of all ages. From world-class golf courses to community centers and sports facilities, there is something for everyone.
Golf enthusiasts will be delighted by the exceptional courses that Summerlin has to offer.
The TPC at Summerlin is a championship golf course designed by renowned architect Bobby Weed. With its challenging fairways and breathtaking views, it is a favorite among golfers of all skill levels. The community is also home to the Red Rock Country Club, which features two Arnold Palmer-designed courses and a host of other amenities.
In addition to golf, Summerlin offers a wide range of recreational activities. The community’s numerous parks and trails provide ample opportunities for outdoor enthusiasts to stay active.
Tennis courts, basketball courts, and soccer fields are available for those who enjoy team sports. And for those who prefer indoor activities, the community’s state-of-the-art fitness centers and swimming pools provide plenty of options.
Schools and education options
Summerlin is not only known for its luxury homes and amenities; it is also home to some of the best schools in Las Vegas. The community offers a wide range of educational options, from top-rated public schools to prestigious private institutions.
The Clark County School District serves the majority of students in Summerlin, offering a comprehensive curriculum and a strong emphasis on academic excellence. The district’s schools consistently rank among the best in the state, providing students with a quality education that prepares them for future success.
For those seeking a private education, Summerlin is home to several esteemed institutions.
The Alexander Dawson School is a renowned independent school that offers a challenging and well-rounded education. The Meadows School, another prestigious private institution, is known for its rigorous academic program and strong college preparatory curriculum.
When it comes to shopping and dining, Summerlin has it all. The community is home to The Shops at Summerlin, a premier shopping destination that offers a wide range of retail and dining options.
From high-end fashion boutiques to popular chain stores, there is something for every shopper.
Food enthusiasts will also be delighted by the diverse culinary scene in Summerlin. The community boasts a wide range of restaurants, offering everything from casual dining to fine dining experiences. Whether you are craving sushi, steak, or Italian cuisine, you will find it all in Summerlin.
Summerlin’s proximity to the Las Vegas Strip
One of the unique aspects of living in Summerlin is its close proximity to the Las Vegas Strip. While the community offers a peaceful and serene environment, the bustling energy of the Strip is just a short drive away.
Residents can easily access all the excitement that Las Vegas has to offer, from world-class entertainment and nightlife to renowned restaurants and shopping.
The convenience of being near the Strip allows residents of Summerlin to enjoy the best of both worlds. They can retreat to the tranquility of their luxurious homes after a night out on the town, providing the perfect balance between opulence and excitement.
Why Summerlin is the ideal place to live in Las Vegas
To sum things up, Summerlin is a community that embodies the perfect blend of luxury and tranquility. Its meticulously designed neighborhoods, breathtaking natural beauty, and array of exclusive amenities make it an ideal place to live in Las Vegas.
Whether you are seeking a luxurious retreat or a place to call home, Summerlin offers a lifestyle unlike any other. From world-class golf courses to award-winning schools and gourmet dining, every aspect of life in Summerlin is centered around providing the utmost comfort and convenience.
Escape the hustle and bustle of the Strip and immerse yourself in the beauty and serenity of Summerlin.
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Both apartments and condominiums share quite a number of traits but differ in ownership. Apartments are often found in large residential complexes owned by a company. These complexes are often operated by professional property managers. Condos are also usually located in large residential complexes, but each condo unit is typically owned by an individual owner.
If you’re browsing the market for a rental, you’ve likely encountered a dazzling array of condos and apartments, and you might rent either type of property. The question of condo vs. apartment gets more complex if you’re debating whether to buy a condo or rent an apartment.
What Is a Condo?
A condo is a residential unit within a collective living community, where each individual condo is owned by a private owner, but the cost of maintaining communal areas is shared by all owners. While condos are often located in high-rise buildings, they can also take the form of a collection of standalone properties, each designated a “condo unit.”
One benefit to renting a condo is that you can deal directly with your landlord rather than a management office, which may mean more personalized attention for your needs.
For buyers, the purchase price for a condo can be significantly lower than the cost of most single-family homes. 💡 Quick Tip: When house hunting, don’t forget to lock in your home mortgage loan rate so there are no surprises if your offer is accepted.
What Is an Apartment?
An apartment is a rental unit within a building, complex, or community. Often, an apartment complex is managed by a property management company, which serves as both landlord and leasing agent for all of the units on the premises. In big cities, “apartment” is sometimes used as shorthand for a condo or co-op unit. If you’re choosing between a co-op and a condo to rent or buy, you’ll want to know how they differ, and whether you’re ready to buy an apartment.
Rental apartments may be located in high-rises but can also be found in larger homes that have been subdivided into separate units.
Renting an apartment offers greater mobility than buying a property, which makes it a flexible option if you’re only planning on staying in an area for a couple of years. A full-time management office or private landlord takes care of leasing, rent payments, and repairs.
Where They Differ
Now that we’ve covered the condo vs. apartment basics, let’s dive deeper into some key dimensions in where they differ.
Ownership
Each unit in a condo development is usually owned by a private homeowner. Unless the condo owner retains the services of a property manager, prospective renters can expect to deal with the condo owner directly when it comes to rental applications, monthly rent payments, and any maintenance issues that arise over the course of their lease.
Apartments are often managed by a property management company that may also own the apartment complex. Effectively, this makes the company the landlord for the entire property. Prospective apartment tenants will usually submit their application and rent payments through the apartment leasing office, while full-time maintenance staffers are on call to deal with any repairs. Of course, some apartments are in smaller buildings owned by individuals. In that case, a renter might deal directly with the property owner just as a renter in a condo does.
In either case, landlords may be amenable to your desire to negotiate rent in order to take you on or keep you. Paring the rent is the main goal in such a negotiation, but you can always ask for other benefits in lieu of a rent reduction.
Property Taxes
Renters aren’t responsible for paying property taxes, making them a non-issue in the apartment vs. condo choice. However, if you’re deciding whether to purchase a condo, understand that you’re responsible for paying property taxes for your unit every year. If you decide to rent your condo out, you should also expect to be taxed on any rental income you collect.
Design
Regardless of structure type, condo owners retain the right to make cosmetic adjustments to the interior of their properties. So if you’re interested in renting in a particular condo complex and you don’t like the design choices an owner has made, consider looking at other units that are available for rent — you may find a very different look and feel in another unit. Apartments within a rental complex, in contrast, typically share similar, if not identical, layouts and designs regardless of which unit you choose.
Amenities
The amenities of both apartments and condos vary widely and often depend on when and how they were built. Generally speaking, condos are more likely to offer customized amenities, like state-of-the-art appliances and granite countertops, that reflect the tastes and habits of their owners.
Fees
Apartments and condos of similar quality and in the same area should rent for around the same cost. Both condos and apartments often charge the following fees:
• Application fee
• First and last month’s rent
• Security deposit
• Credit and background check fee
• Pet fees and deposit
• Parking fee
Renters may find that condo owners are more willing to negotiate on things like fees than apartment management teams, as these are private owners trying to keep their units rented out for income purposes.
Buying a condo will mean paying monthly maintenance fees that cover insurance for and upkeep of common areas, water and sewer charges, garbage and recycling collection, condo management services, and contributions to a reserve account.
Community
Condos usually have a greater sense of community than apartment complexes, given that their residents are likely to stay around longer. In many cases, residents consist of the condo owners themselves.
By contrast, renters living in apartments often intend to stay for only a couple of years. While that’s not to say that there aren’t occasional resident get-togethers at some apartment complexes, you’re less likely to encounter the same faces over several months.
If you’re renting a condo, expect to abide by rules set by the homeowners association. These can sometimes be fairly strict. Apartments have their own set of rules that may be less stringent.
Renting and Financing
Renting an apartment involves one monthly rent payment, in addition to any utilities you’re responsible for. Of course, when you leave the apartment, you leave with just your security deposit, assuming all payments have been made and no damage has been done.
Financing a condo and purchasing the property allows you to lock in your monthly mortgage payments at a steady long-term rate and gives you the chance to start building equity. In exchange, you’ll be required to make a down payment and be responsible for any taxes, insurance, and maintenance fees, among other costs.
Deciding whether it’s better to buy a condo or to rent — or to get a house or condo — is a complicated decision that depends on your personal finances and your lifestyle. If you’re thinking about settling down, have a stable job with steady income, and have enough saved up for a down payment with an emergency fund to spare, buying a condo or house may be the right choice for you. However, if you’re still exploring the area or have variable income with limited savings, it may be best to continue renting. For those trying to decide between renting an apartment and financing a condo or house, a mortgage help center can help provide answers. 💡 Quick Tip: Your parents or grandparents probably got mortgages for 30 years. But these days, you can get them for 20, 15, or 10 years — and pay less interest over the life of the loan.
Maintenance
Most apartment complexes have an on-site building supervisor who can address maintenance issues. Given that the owner of a large apartment complex oversees all of the units, they’re incentivized to employ someone full time to attend to the day-to-day affairs. This often means that apartment owners can react faster than condo owners, who sometimes don’t even live on the premises.
By contrast, condo units are usually owned by landlords, and most of them hire a third-party contractor to come in and make repairs as necessary. In some cases, condo owners may be handy and handle the repairs on their own.
If you buy a condo, you’ll have a regular maintenance fee that covers the shared parts of the property, but because condo owners typically own just the interior of their unit, any repairs in the condo unit will be separate. (It’s a good idea to pore over the covenants, conditions, and restrictions to see exactly what is part of your unit or part of the common elements.)
Condominium vs Apartment: A Side-by-Side Comparison
To help sum it all up, here’s a quick guide to the condo and apartment traits discussed above.
Condo
Apartment
Ownership
Private owner
Property management company, if a large complex; private owner if a smaller building
Property taxes
Paid by condo owner
Paid by building owner
Design
Customized by owner
Uniform across all units
Fees
First and last month’s rent
Security deposit
Credit and background check
Application fee
First and last month’s rent
Security deposit
Pet fees
Community
Typically condo owners and long-term residents
Typically shorter-term renters
Renting & Financing
Condo renters:
Monthly rent
Utilities
Condo owners:
Mortgage payment
Utilities
Property taxes
Maintenance fees
Property insurance
Monthly rent
Utilities
Renter’s insurance
Maintenance
Private owner hires third-party contractors for repairs and maintenance
On-site maintenance staff
Condo vs Apartment: Which One May Be Right for You?
Whether a condo or apartment is right for you depends on your preferred rental experience. If you’re looking for something that feels a little more akin to home and don’t mind dealing directly with your landlord when discussing repairs and rent payments, a condo (or an apartment in a small privately owned apartment building) may be the better option for you.
On the other hand, if you prefer dealing with a full-time staff of property managers, want something more structured, and don’t mind cookie-cutter corporate apartments, an apartment may be the better rental option for you.
Prospective condo buyers will want to keep their finances and monthly budget in mind when deciding if they want to rent or buy. While the idea of building equity is appealing, settling down and committing to a mortgage isn’t for everyone. You’ll want to thoughtfully evaluate your ability to make monthly payments and whether you want to stick around an area.
The Takeaway
In the condo vs. apartment comparison, you’ll pay similar costs when renting properties of similar quality. Things get more complex if you’re debating whether to buy a condo or rent an apartment, as there are myriad added costs for condo owners in exchange for the chance to build equity.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% – 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It’s online, with access to one-on-one help.
SoFi Mortgages: simple, smart, and so affordable.
FAQ
Why are condos more expensive than apartments?
In general, condos and apartments of comparable quality cost around the same amount to rent. A condo owner, however, will likely face higher monthly costs than an apartment renter, thanks to the added costs that come with owning a property, including mortgage payments, taxes, insurance, and maintenance fees. Over time, the added expense may be offset by the equity built through mortgage payments.
Which retains more value, condos or apartments?
Over the long run, both a condo and an apartment in a co-op building can lose or gain value. Whether your specific property appreciates will depend on local market factors and on upkeep of your unit as well as of the larger complex.
Can I get a loan to buy a condo or co-op apartment?
A qualified buyer can finance a condo with a government-backed or conventional mortgage loan. Getting a loan for buying into a housing cooperative can be more difficult. The buyer is purchasing shares that give them the right to live in the unit — personal property, not real property. That’s one reason that some lenders do not offer financing for co-ops.
Photo credit: iStock/Michael Vi
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
SoFi Mortgages Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Pennymac proudly supports our nation’s heroes by offering Department of Veterans Affairs (VA) loans. We service over 445,000 VA loans on behalf of service members, veterans and their families – over 43,000 of which originated in the first 9 months of 2023.*
If you’re connected with the United States military, you may be eligible for VA loans, such as no down payment purchase loans and low-interest refinance loans. In this guide, we’ll look at what a VA loan is, the qualification criteria, the benefits and how to find the one that could be right for you.
*As of 9/30/2023
What Is a VA Loan?
A VA loan is a mortgage loan guaranteed by the United States Department of Veterans Affairs. It’s available to eligible veterans, service members and surviving spouses and offers numerous benefits, including:
No down payment on home purchase loans
Competitive interest rates
More flexible credit requirements than conventional non-VA loans
Lifetime benefit — you can use your VA loan entitlement multiple times
VA loans are specifically designed to meet the needs of veterans and their families, opening up increased opportunities for homeownership and building equity.
How Does a VA Loan Work?
VA loans are government-backed loans that offer veterans and service members more flexible borrower criteria than conventional loans. The VA guarantees the loans, reducing the risk for lenders and enabling lower credit scores and down payment requirements.
Not Just For First-Time Homebuyers
While you can use a VA loan for your first home, you can take advantage of the VA loan benefit again if you sell or refinance.
Navigating the VA Purchase Loan Process Step by Step
VA loans and the process to obtain them are similar to other types of Pennymac mortgage loans, with some key differences. Here’s a breakdown of the steps involved in applying for and securing a VA home purchase loan.
1. Start your application online or talk to a Pennymac Loan Expert. One of the unique aspects of a VA loan is that we’ll use your Certificate of Eligibility (COE) to confirm that you meet the basic VA loan requirements, but you don’t need it to begin your application.
You can visit the eBenefits section of the U.S. Department of Veterans Affairs website to request your COE online or obtain VA Form 26-1880 to make your request through the mail. If you prefer, your Loan Expert will be happy to guide you through the steps involved to verify your eligibility and obtain your COE.
2. Receive a Pennymac BuyerReady Certification. The BuyerReady Certification is Pennymac’s unique loan certification process that confirms how much of a mortgage you will likely qualify for based on submitted financial documents. While it doesn’t guarantee a loan, BuyerReady Certification can help you house-shop with confidence so you’ll know which homes will fit your budget.
BuyerReady Certified homebuyers also qualify for Pennymac’s Lock & Shop program,* which allows you to lock in a rate before locating a property. Protect yourself from future rate increases and potentially save thousands of dollars in the lifetime cost of your mortgage.
3. Look for homes. Meet with a real estate agent and begin looking for homes. Once you’ve found a home you’d like to purchase, you can continue with the VA loan process. Pennymac Home Connect can assist in finding a reputable real estate agent in your area.
4. Complete underwriting and loan process. Since you’ve already submitted most of the documentation and information you’ll need for the mortgage through the BuyerReady Certification process, loan processing is typically smoother and faster.
5. Close and get the keys! Once your loan is approved, you’ll have your closing, where all necessary paperwork will be signed.
At this time, you’ll get the final details of your loan terms and required closing costs, which are the extra fees buyers and sellers pay to close on a real estate transaction beyond the home’s purchase price. One of the fees unique to the VA loan is the funding fee, which can be paid in full at closing or rolled into the total loan amount.
About the VA Loan Funding Fee
The funding fee is a one-time charge, typically between 1.25% and 3.3% of the loan amount. The fee goes to the U.S. Department of Veterans Affairs to support the VA loan guaranty program, which helps keep VA mortgages low-cost and available for future veterans to achieve homeownership.
Funding Fee Exemptions
The following individuals are exempt from paying the VA funding fee:
Purple Heart recipients
Veterans eligible for compensation for service-connected disabilities or who would be eligible if they didn’t receive retirement pay
Veterans eligible for compensation based on a pre-discharge exam or review
Veterans eligible for compensation but not receiving it due to being on active duty
Surviving spouses eligible for VA loans
If the borrower’s exemption status is unclear, the VA will make the final decision on funding fee exceptions.
How to Qualify for a VA Loan
VA loans are available to active-duty service members, veterans and their surviving spouses. If you meet one or more of the following criteria, you may be eligible for a VA home loan:
Service totaling 181 days or more of active service during peacetime
Service totaling 90 consecutive days or more of active service during wartime
Service totaling six years or more in the National Guard or Reserves or served 90 days (at least 30 of them consecutively) under Title 32 orders
You suffered a service-connected disability
You are the spouse of a military member who died while on active duty or from service-connected causes
VA Loan Benefits
VA home loans are valuable financing solutions to help qualified service members and veterans achieve their homeownership aspirations. The primary benefits of VA home loans include:
No down payment requirement on home purchase loans. Buy your home sooner or use your savings for other expenses.
Lower interest rates. Interest rates are lower than conventional loans, making homeownership more affordable.
No monthly mortgage insurance premiums. Purchase a home and start building equity without the extra expense of monthly mortgage insurance.
Less stringent credit requirements. While there are specific financial criteria you’ll need to meet, perfect credit isn’t required, making homeownership more attainable and accessible.
Types of VA Loans
Veterans and service members have access to several types of VA loans, whether you’re buying a home or refinancing.
VA Purchase Loan
Buy a home with zero down payment and a competitive interest rate.
Who is it for? Qualified first-time or repeat homebuyers who are purchasing a primary residence.
Benefits:
No down payment, unlike conventional or FHA loans*
No private mortgage insurance (PMI) or upfront mortgage insurance premium (UFMIP) to keep your monthly payments low
Lower interest rates
Borrowers can choose to finance the VA funding fee into the loan
*As long as the sales price does not exceed the appraised home value.
VA Interest Rate Reduction Refinance Loan (IRRRL)
An IRRRL, also known as a Streamline Refinance Loan, allows you to refinance your existing VA loan to a lower interest rate, which may potentially lower your monthly payments. You may also be able to refinance an ARM into a fixed-rate mortgage.
Who is it for? Individuals who already have a VA loan.
Benefits:
Lower interest rates compared to conventional loans
Designed to be easy to apply and quickly close
Flexible loan terms — there’s no need to extend your current payment schedule
Minimal paperwork and income documentation required
No appraisal
More flexible eligibility requirements
No out-of-pocket cost refinance options are available to qualifying borrowers. Does not apply to taxes, insurance or pre-paid interest.
Option to reduce mortgage term without significant payment increases
Your rate and monthly payment after refinancing must be lower than your current payment, except when refinancing an ARM to a fixed-rate mortgage.
VA Cash-Out Refinance
VA cash-out refinance loans allow you to refinance your existing loan — which doesn’t have to be a VA loan — for a higher balance and receive the difference as cash. Use the funds for any purpose, such as paying off debt, funding education or making home improvements.
Who is it for? Qualified veteran homeowners who want to use their equity in their homes.
Benefits:
Pay off higher interest rate debt, such as credit cards
It can be used to refinance a non-VA loan into a VA loan
Pennymac will lend up to 90% of the value of your home*
Low-to-zero out-of-pocket costs
Only one monthly mortgage payment to make
Access cash from your equity and potentially lower your rate at the same time
Roll your closing costs into the loan
*Loan limits are established by the VA and can vary by county.
By refinancing your existing loan, your total finance charges may be higher over the life of the loan.
VA Loan Funding Options
A VA loan is a versatile, flexible financing option designed to empower veterans, service members and their families.
VA Purchase Loans
VA purchase loans can be used to finance a primary residence, including:
Single-family home, up to four units
Condominiums in a VA-approved project
A home that needs improvement
Manufactured home or lot
A new home build
Energy-efficient upgrades
VA Interest Rate Reduction Refinance Loan (IRRRL)
VA IRRRL loans are used to replace an existing VA loan at a lower interest rate. This can potentially reduce your monthly payments, freeing up money you can use for other expenses, such as home renovations, college tuition or credit card debt. You can refinance:
Single-family homes, up to four units
Condominiums
Manufactured homes
The home must be your primary residence, and you must already have a VA loan. You can also refinance an ARM into a fixed-rate mortgage.
VA Cash-Out Refinance
With a VA cash-out refinance, you may be able to obtain funds for:
Home improvements, repairs and renovations
Education
Consolidating debt
Managing other large expenses
You can also use a VA cash-out refinance to replace a non-VA loan with a VA loan. The home you are refinancing must be your primary residence.
Apply for a VA Loan
As part of our nation’s military, you’ve dedicated your life to serving our country. Pennymac is proud to serve you. We provide VA purchase loans and refinancing options that can make homeownership more attainable and affordable for America’s heroes. Contact a Pennymac Loan Expert today to learn more.
*Lock & Shop Program allows consumers who have a Pennymac BuyerReady Certification for a purchase loan with Pennymac to lock a rate prior to locating a property. The program requires a non-refundable fee of $595 due at the time of the rate lock. Consumers with a Pennymac BuyerReady Certification for a purchase loan with Pennymac must meet appropriate underwriting conditions to obtain a mortgage loan. Consumers may choose between a 60-day, 75-day or 90-day lock period. Consumers must initiate a mortgage loan application for a specific property and be under purchase contract for the property at least 30 days prior to lock expiration in order to extend the locked rate. All rate lock extensions are subject to Pennymac’s standard rate lock extension fees. After the rate lock and subject to favorable market conditions, consumers may be eligible for a one-time reduction in rate once the loan application for a specific property has been initiated (0.50 % maximum reduction in interest rate allowed). Eligible loan products are Conventional Fixed, Conventional ARM, FHA Fixed and VA Fixed. Program excludes Jumbo, refinance, third-party and in-process loans. Program subject to termination in Pennymac’s sole discretion and without notice.