Shaun Donovan, the former secretary of the U.S. Department of Housing and Urban Development (HUD) and former director of the U.S. Office of Management and Budget (OMB), has been appointed CEO of Enterprise Community Partners, a national housing nonprofit that aggregates housing investments, advocates for housing policies and builds and manages communities.
Donovan, who served during the full eight years of the Barack Obama administration, bring to the role nearly three decades of housing policy and community development initiative experience. Prior to serving as HUD Secretary from 2009 to 2014, Donovan served as the New York City Department of Housing Preservation and Development commissioner under Mayor Michael Bloomberg.
“Coming to Enterprise is, in a way, coming home for me,” Donovan said in a statement. “Housing touches everything in a person’s life. A good education, a good job, a healthy, prosperous life – all of it revolves around having a safe, stable place to live. Unlike any other time in my life, housing affordability is on the national radar. It’s a moment I’ve been preparing for throughout my whole career. I am honored to work with my new colleagues, our partners, developers, and investors to achieve our shared vision of a country where home and community are stepping stones to so much more.”
In 2020, Donovan launched a campaign to run for mayor of New York City. He raised significant amounts of money early in the process, but ultimately lost to current incumbent Eric Adams.
Donovan later joined the Ford Foundation as a senior fellow in the summer of 2022. He currently serves as a trustee of the Urban Institute, Regional Plan Association, Greater NY and Rethink Food and sits on the advisory board for Opportunity Insights.
“Enterprise has in Shaun a leader who understands how to use the runway this organization has built as a catalyst for solving some of the toughest challenges this country has ever faced,” said Phyllis Caldwell, the Enterprise board vice-chair. “Drawing from his experience, Shaun understands the complex way promoting an affordable home intersects with transportation, workforce training, health, and the environment. He’s able to view the full picture of how these factors come together – and will bring that to bear at Enterprise.”
Donovan will assume his new position in September. The organization’s interim co-CEOs Lori Chatman and Drew Warshaw will continue to serve in their roles as president of Enterprise’s Capital division and chief operating officer, respectively.
Enterprise says it has invested $64 billion since 1982 and has created roughly 1 million homes across all 50 states, Puerto Rico and the U.S. Virgin Islands.
Although it may seem to be at odds with convention, a growing number of renters are buying second, vacation properties even before they purchase their primary residence.
Real estate industry watchers say the trend is borne from the COVID-19 pandemic, and that with remote work now a permanent fixture of many people’s lives, they’re taking advantage of market opportunities to buy small getaway homes that they intend to use primarily for vacations.
Apartment Therapy reported that many of these second-home first buyers are drawn to country cottages and cabin lodge-style homes even while they continue to rent an apartment or home in the city as their primary residence. One factor driving this is that the housing market is red-hot right now and there’s a very limited supply of homes in many markets. But that isn’t always true for some more remote destinations that may serve as an appealing getaway for many urban dwellers.
Jamie Manning, who runs the real estate blog Exposed Brick DC, told Apartment Therapy that she never expected to buy her vacation home in Charlottesville, Va., before purchasing a primary residence in the Washington D.C. area, where she lives. She said she and her partner see their new property as a “true second home” where they can spend weekends and possibly work remotely during the week, whenever they want a break from the city.
“This idea had been on our radar because real estate costs are so high in D.C. that we felt buying here may not be realistic,” Manning told Apartment Therapy. “We have been diligent and saved and were anxious to make some kind of real estate investment. We were craving a change of scenery and a different pace of life.”
The Mortgage Source reported that many buyers are hoping to buy now due to the low interest rates on most mortgages, that some experts say may not last. But they may be priced out of buying in the area they lives due to escalating home prices in competitive markets.
So the idea of buying a second home first means that first-time buyers can invest in real estate while they continue to live in the city, renting a home there. While people would obviously need a large enough income to be able to pay off a mortgage and rent at the same time, Lisa Greene-Lewis, a certified public accountant, told The Mortgage Source there are some financial benefits to be had from such a situation. For example, buyers can deduct the mortgage interest on a vacation home just as it’s possible to do so on a primary residence, and then deduct property taxes up to the cap, Greene-Lewis said.
Another benefit for second home buyers is that they can rent out those properties when they’re not using them themselves as a source of supplemental income.
Real estate professional John Coleman told Apartment Therapy that many of his first-time buyer clients were excited to purchase a home during the pandemic because their travel options elsewhere are very limited.
“Buying and renting out on Airbnb has been very lucrative for some, and it will be interesting to see if that can hold up moving forward,” Coleman said.
Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at [email protected]
The mortgage and real estate industry is no stranger to disruptors, especially over the past few years as scores of companies have tried to change the way we buy, sell, and obtain a home loan.
One of the latest examples is “Tomo,” a venture-backed fintech with some big-name founders and investors, including former Zillow employees Greg Schwartz, Carey Armstrong, and Spencer Rascoff.
What’s unique about this mortgage lender is they only originate home purchase loans. No refis. That means they’re completely committed to home buyers.
Like other lenders, they’re attempting to level the playing field between cash buyers and those who need a mortgage, an especially relevant concern in today’s ultra-competitive housing market.
Started by former Zillow executives Greg Schwartz and Carey Armstrong
Do not charge lender fees and offer both a low rate and closing guarantee
Will also pair you with a real estate agent for an additional mortgage rate discount
Tomo Exists Because Buying a Home Can Be Terrible
Tomo was created because purchasing a property can be a real pain in the neck, and instead of relying on old technologies, they’re going the digital route.
This means you can get started right from their website in minutes, whether by desktop computer or smartphone.
They’re also streamlining the process, simplifying how you can complete tasks, and throwing in a bunch of guarantees along the way.
It all starts with a mortgage pre-approval, which they break down into two options: verified and an underwritten pre-approval.
The verified pre-approval assesses your credit score, income, and debt, and turns around the paperwork in no more than three hours after they receive your information, without a hard pull.
The more robust underwritten pre-approval does all that with a hard credit check and a complete assessment by an underwriter, backed by their Closing Guarantee.
The second option takes about 24 hours to complete, once you’ve uploaded all your necessary documents.
Tomo commits to closing on time, and are confident they can do so by moving critical steps earlier in the process.
But if there is a delay on their end, they guarantee your closing date will not change.
It’s unclear what happens if they aren’t able to meet their obligations, but they appear to not let that be an issue.
The Tomo Price Match
While all that sounds good, there’s even more to like about Tomo when it comes to their pricing.
For one, they do not charge lender fees, similar to companies like Better Mortgage, Filo Mortgage, and PenFed Mortgage.
On top of that, they offer the Tomo Price Match if you happen to find a better mortgage rate elsewhere.
Just provide a valid, comparable Loan Estimate (LE) dated within one business day of submission to Tomo and they’ll lower their rate if need be to match it.
But they’re confident they can offer some of the lowest rates around because they’ve simplified the home loan process and made it more cost-efficient.
Speaking of mortgage rates, they’ve got them on full display on their website, so they’re not hiding anything.
Simply navigate to “Find your rate” and you’ll see a list of rates and corresponding costs (discount points) or rebates (lender credits).
You can also fine-tune the rates by entering in your borrower and property information for a more accurate gauge of pricing.
Tomo Brokerage Partner Agent
Speaking of pricing, to sweeten the deal even more, they’ll throw in a .125% (eighth) discount in mortgage rate if you use a Tomo Brokerage Partner Agent.
This is essentially their real estate referral network that pairs you with a local real estate agent, which makes a lot of sense because both Schwartz and Armstrong worked on Zillow’s Premier Agent product previously.
In truth, Tomo might be even more similar to Redfin Mortgage, which doesn’t charge fees and has an obvious real estate agent affiliation.
It also plays into the trend of controlling more of the home buying process instead of just the lending piece, or merely the agent portion.
Assuming you don’t already have a real estate agent, you could save some money by going with one of their recommendations.
This is known as “Tomo Perks,” and on a $300,000 loan amount could save you more than $7,000 over the life of the loan.
To get paired up, you simply provide your info to Tomo and they’ll send video profiles for three local real estate experts they love. Then it’s up to you who to pick, if any of them.
For the record, it is possible to take advantage of both the Tomo Price Match and Tomo Perks.
Where Is Tomo Mortgage Available? And What Loan Types Are Offered?
Currently serve just five states: CO, CT, FL, TX, WA
Offer home purchase loans only
Fixed-rate mortgages: 15- and 30-year loan terms available
Minimum loan amount of $150,000 and min. credit score of 660 required
Jumbo loans available with loan amounts up to $3 million
Single family homes, townhomes, condos, and 2-4 unit properties acceptable
Do not offer FHA/VA loans
At the moment, the company is licensed in just five states, including Colorado, Connecticut, Florida, Texas, and Washington.
And currently only operates in three markets, Dallas-Fort Worth, Houston, and Seattle. My assumption is they’ll expand fairly quickly with their big venture cap backing.
They also only offer home purchase loans, as stated above, though it’s possible they may expand into mortgage refinances in the future.
In terms of loan choice, you can get a conventional mortgage starting with loan amounts of $150,000, or a jumbo loan up to $3 million.
You can’t yet get your hands on an FHA or VA loan, though that could change in the future.
A minimum 660 credit score is required, and they only offer 15- and 30-year fixed mortgages. No ARMs just yet.
While it seems like a limited product menu, something like 90% of home buyers go with the 30-year fixed, and most home loans are conforming.
In summary, Tomo is yet another mortgage/real estate startup looking to shake up the status quo.
While it’s a crowded place, their low rate guarantee and on-time closing guarantee, combined with their fresh modern look, might be enough to help them stand out.
We’re starting to get a better picture of how COVID-19 affected the housing market, with the National Association of Realtors’ existing-home sales report showing a big drop in May.
It’s based on completed transactions, including both single-family homes and condos/townhomes, meaning these were likely under contract during the full lockdown seen a month or so ago.
Home Sales Hit Hard by COVID-19
Existing home sales fell 9.7% in May from a month earlier per NAR
Off a sizable 26.6% from April 2019 as traditional home buying period disrupted by virus
Housing supply increased but likely only due to artificially slower sales pace
Home prices were down slightly month-to-month but still registered 99th straight YoY increase
As expected, existing home sales were off 9.7% from April, falling to a seasonally-adjusted annual rate of 3.91 million in May.
That’s a whopping 26.6% below the 5.33 million sales pace seen in May 2019, though there are some pretty serious extenuating circumstances at play here.
NAR chief economist Lawrence Yun noted that the sales completed last month “reflect contract signings in March and April.”
The true test on the existing home sale front will be a month or two from now, assuming the country remains open post the worst of COVID-19.
The lack of home sales also seemed to boost unsold inventory, which rose to a 4.8-month supply based on the current sales pace, up from 4.0 months in April and 4.3-months in May 2019.
Again, the caveat here is current sales pace, which was affected by the coronavirus pandemic, so it too needs to be taken with a grain of salt.
If home buyers get out there again, the sales pace could accelerate dramatically and push inventory much lower once again. As it stood, it was already quite low pre-COVID-19.
Despite lower sales volume, properties only remained on the market for 26 days in May, seasonally down from 27 days in April and the same as May 2019.
Additionally, 58% of the homes that sold last month were on the market for less than a month.
In other words, lower volume aside, homes were moving quickly from list to pending to sold, which bodes well for buyer appetite.
With regard to home prices, the median existing-home price was $284,600 in May, down slightly from $286,800 in April, but up 2.3% from May 2019 ($278,200).
That marked the 99th straight month of year-over-year gains, so let’s hope they get to 100 next month. Would be a shame not to…
Pending Home Sales Up 33%, New Listings Rise 36%
Redfin said pending home sales (those currently under contract) rose 33% in May
New for-sale listings up 36% from April to May, but still 20% below February levels
Home sales fell 30.8% in May from a year ago, with dramatic declines in most expensive metro areas
Median home prices relatively flat from a year ago despite a big drop in expensive property sales
It appears we may have hit bottom in terms of COVID-19 impact, at least for now, and it wasn’t so bad, assuming those missed home sales were merely delayed.
We’re already seeing signs that may be the case, with Redfin reporting that pending sales were up a sizable 33% in May after two monthly declines.
Unlike existing home sales, pending sales are a key indicator for home sales that are expected to take place in the near future, namely during June and July.
At the same time, new listings increased 36% from April to May, so assuming those also get scooped up relatively fast, sales should see a pretty quick recovery.
And they probably will, given median days on market barely budged in May despite a global pandemic.
Again, this hinges on the economy and the country staying open, and not closing up again, as has been discussed in some circles given the recent case increases in states like Arizona, Florida, and Texas.
Redfin said home prices increased a mere 0.5% on a year-over-year basis in May to a median $299,400, the smallest annual increase since home prices bottomed in February 2012.
However, they only believe it was much lower than the 4.7% gain in April because fewer homes sold in the most expensive metro areas tracked by the company.
For example, home sales declined between 38% and 58% from a year earlier in the 12 metro areas with median prices above $450,000 (seven of them are in California).
In San Francisco and San Jose, where the median price exceeds $1 million, home sales dropped more than 55%.
This tells us home prices held up pretty well in the face of COVID, another good sign for the housing market that continues to roll on, fueled by record low mortgage rates.
Interestingly, the median off-market Redfin Estimate was up both on a month-to-month basis and annual basis.
The only real worry is home prices might increase too much and become out of reach for first-time home buyers, something Yun lamented about while urging more new construction.
He might be right, given the fact that home purchase applications are also reportedly surging.
Quicken Loans CEO Jay Farner told Fox that the company is experiencing a record number of home purchase applications to go along with their record mortgage refinance applications which might explain their rumored IPO.
He said purchase apps are up significantly over last year’s numbers, so it appears many prospective buyers are getting their ducks in a row so they don’t miss out.
Now we just need to be concerned about that second wave, which could stop the housing market in its tracks if consumers lose confidence and no longer believe the worst is behind us.
If it doesn’t come, surging home prices might usher in another era of unaffordability and creative financing, followed by another housing crisis. But that might still be a few years out.
Then quickly reversed course over the past two days
Now 30-year fixed mortgage rates are pricing closer to 3.5%
Because lenders are too busy to offer lower prices
And just like that, they disappeared…
After hitting all-time lows just over a week ago, mortgage rates bounced markedly higher over the past two days.
This despite the continued stock market rout, the emergency Fed rate cut, and the worsening coronavirus, which was just classified as a pandemic.
If anything, you’d think 30-year fixed mortgage rates, which were hovering around 3% early in the week, would be closer to 2.5% today, given all the continued bad news.
But here’s the problem. When you flood the market with anything, mortgage-backed securities in this case, it gets harder to find a buyer. Or at least a buyer willing to pay a high price.
And the only way you can really entice buyers is to lower the price, and when we’re talking about bonds, that raises the yield.
That higher yield means higher mortgage rates for consumers, which explains the massive increase in interest rates over recent days.
If you consider the fact that the 10-year bond yield was as low as 0.32% on Monday, and has since bounced to 0.87%, it also makes more sense.
Call it an overreaction, followed by a quick counteraction, granted the 10-year yield is still in record low territory.
Extreme Ups and Downs Are the New Normal
All financial markets are experiencing big swings at the moment
The stock market has plummeted 20% in the past month
And the 10-year bond yield has fallen to an all-time record low
Mortgage rates fell quickly and have since recovered, but it might be short-lived
Just like the stock market, which plummeted the most on record, only to rise the most on record the next day, only to fall again massively, mortgage rates are exhibiting some crazy movement.
As Matthew Graham over at MND aptly pointed out, mortgage rates rose at their “fastest pace in years.”
He noted that it was the quickest jump “since the 2 days following the 2016 presidential election,” and one of the few two-day periods in which long-term fixed mortgage rates moved more than three-eighths (0.375%) of a point.
In short, many lenders were offering an interest rate of 3% flat on the 30-year fixed for top loan scenarios on Monday, and now 3.5% to 3.625% is the norm.
Put another way, we’re back to where we were a month ago. At that time, mortgage rates were hovering around all-time lows, but weren’t quite there yet.
Whether things will be even worse tomorrow remains to be seen, but given the sharp increase, we could see a slight improvement tomorrow, or perhaps just flat rates while the market rebalances itself.
Will the Record Low Mortgage Rates Come Back?
Mortgage lenders raised rates because they got too busy
They have little incentive to lower rates or even advertise at the moment
This will rebalance the market and eliminate many borderline refinance applications
The good news is it will also lead to lower rates once the dust settles and business slows down
Now the next logical question – will mortgage rates return to record lows, given all the uncertainty in the world, and the fact that the 10-year yield is still under 1%?
While nobody can say for sure, if I had to guess, I’d say it’s more probable that rates will head back toward 3% (and below) versus the holding where they are or moving higher.
Similar to the stock market, which was nearing 30,000 a month ago before plummeting 20% to around 23,500 today, we are in a downward cycle when it comes to interest rates.
Sure, the Dow has mustered some big one-day gains as it has marched lower, but the trend has been pretty darn clear – LOWER.
The same should go for mortgage rates too, but if mortgage advertising is any indication lately, it’s going to take some time for lenders to budge.
You can also kiss the idea of a 0% mortgage rate goodbye while you’re at it.
There’s just so little incentive for them to lower mortgage rates at the moment – they’re already slammed and probably understaffed, so why lower the price?
Remember, it’s better to apply for a mortgage when things are slow.
The good news is lenders are already solving the oversupply problem by raising the price of mortgages.
So all those homeowners who were on the cusp of a mortgage refinance making sense, rule of thumb or not, may have withdrawn their applications, assuming they didn’t lock in their rate.
Even a swing of an eight to a quarter point is enough to eliminate the incentive of refinancing, so a move from 3% to 3.625% will surely rule out millions of homeowners.
This might be enough to right the supply/demand imbalance and eventually allow mortgage lenders to lower rates again.
Whether that takes a week, two weeks, or two months is another question. But for me, the trend is clearly lower.
And if you use the 10-year bond yield as a guide, that puts the 30-year fixed firmly below 3%.
Read more: Quicken Loans CEO Doesn’t See the 30-Year Fixed Falling Below 3%
Oahu is known for its captivating blend of city living conveniences and laid-back island lifestyle. The pristine beaches, majestic mountains, and year-round warmth and sunshine can entice just about anyone to call the Aloha State home. Beyond the natural beauty, Oahu offers something even more special—the Aloha spirit, promoting a culture of kindness, respect, and connection, creating a sense of community that sets Oahu apart.
If you’re thinking about moving to Oahu, HI, or investing in property on the island, it probably comes as no surprise that the housing market is considered to be extremely competitive. With high demand and limited inventory, Honolulu’s luxury neighborhoods like Kahala and Hawaii Loa Ridge especially command premium prices. It’s essential to stay informed about current market conditions, including inventory levels, pricing trends, and buyer demand.
This Redfin article will delve into the 7 essential things to know about moving to Hawaii and buying a luxury home for those looking to relocate to the island.
1. Work with a local real estate agent
If you’re considering moving to Hawaii, it’s essential to develop a relationship with an experienced and local real estate agent. Buying a property in Hawaii presents unique challenges and considerations that may be unfamiliar to those outside the state. An experienced agent who is well-versed in the nuances of the local market can not only provide invaluable guidance and insights, but they’ll likely have an established network of contacts and resources to help expedite the process and ensure a smooth transaction.
If you’re seeking a luxury property, a Redfin Premier Agent will have in-depth knowledge of the luxury segment, including specific neighborhoods, market trends, and property values. There’s so much to know before buying a home in Hawaii, and partnering with a trusted local agent is a crucial step in successfully navigating the market and one of the most unique locations in the world.
2. Explore Oahu’s neighborhoods
Oahu is home to a diverse range of neighborhoods, each with its own unique charm and amenities. From the tranquility of Manoa‘s lush surroundings and the relaxed suburban vibes in Kaimuki, to the laid-back surf culture of North Shore, there’s something for everyone.
Oahu’s luxury real estate market epitomizes upscale coastal living in a coveted island paradise, offering exclusive properties in prestigious neighborhoods, featuring waterfront estates, high-end amenities, and privacy. In areas like Kailua, a budget of $1.5 million may provide opportunities for projects on smaller lots. However, in neighborhoods further from the city, such as Makaha, the same budget could potentially secure a home with ocean views.
The most expensive neighborhoods on Oahu include Diamond Head, Kahala, Hawaii Loa Ridge, and Kailua for single-family homes, while condos in Kaka’ako go for premium prices. These sought-after areas command high prices, often reaching the multimillion-dollar range, due to their proximity to the ocean or stunning views. Properties in these neighborhoods offer luxurious amenities and exceptional quality often featuring high-end appliances and finishes. You’ll also see outdoor living spaces, such as expansive lanais, swimming pools, and beautifully landscaped gardens, allowing residents to fully embrace the island’s tropical climate.
3. Be prepared to pay even more to live in paradise
Oahu’s home prices surpass those in other major U.S. cities due to limited supply of land, desirable location, strong demand from residents and investors, construction costs, and market dynamics. This is especially true for the luxury homes close to the coastline or with scenic views. The state’s strict housing regulations and zoning restrictions further limit the availability of affordable housing options.
In addition, Oahu’s popularity as a tourist destination and its vibrant economy contribute to the high cost of living, including housing. For example, in April 2023, the median sale price in Kailua was about $1,438,000. This amount is over a million dollars more than the median sale price across the U.S.
With all things considered, Oahu still offers an unmatched lifestyle that makes it worth the investment. Living on Oahu means embracing the Aloha spirit, immersing oneself in a vibrant island culture, and enjoying the countless benefits of paradise. It’s important, however, for prospective buyers to be prepared for higher price points and adjust their expectations accordingly.
4. Location, price, condition
On Oahu, location, price, and condition are key factors that significantly influence the real estate market. Location holds immense importance as certain areas, such as those close to beaches, popular neighborhoods, or convenient amenities, are highly sought after. Additionally, the condition of the property plays a crucial role in its value and appeal as well-maintained homes with modern amenities and luxurious upgrades tend to command higher prices. In the competitive Oahu real estate market, finding the right balance between location, price, and condition is key to making a sound investment.
Proximity to the beach impacts price and maintenance costs
In the Oahu real estate market, proximity to the beach has a significant impact on property prices. The closer a property is to the beach, the higher its value tends to be. Luxury beachfront properties are highly sought after due to their prime location and the lifestyle they offer.
However, it’s important to be aware of the maintenance challenges associated with beachfront living. Properties near the beach are exposed to salt air and moisture, which can lead to increased maintenance needs and potential issues like mold. Buyers should consider the additional costs and efforts required to maintain these properties.
5. HARPTA and FIRPTA tax requirements
HARPTA (Hawaii Real Property Tax Act) and FIRPTA (Foreign Investment in Real Property Tax Act) are both withholding tax requirements in Hawaii that affect real estate transactions involving non-resident sellers.
HARPTA applies specifically to Hawaii and requires buyers to withhold 7.25% of the gross sales price as a prepayment of the seller’s potential tax obligations to the state. FIRPTA is a federal law that applies to non-U.S. resident sellers and requires buyers to withhold 15% of the sales price as a prepayment of the seller’s potential tax obligations to the IRS. Both aim to collect taxes owed by non-resident sellers upfront during the transaction process.
The withheld funds are then applied towards the seller’s potential tax obligations. It’s important for buyers and sellers to understand these withholding requirements and consult with tax professionals to ensure compliance and proper handling of these taxes during the transaction.
6. Learn about short term rental regulations and policies
Oahu’s consistent increase in home prices, robust economy, and high housing demand make it an attractive investment option. The demand for short-term rentals, common in areas like Waikiki, Ko’olina, and Turtle Bay on North Shore, contribute to the growth of the luxury real estate market and offer opportunities for income generation.
However, the City and County of Honolulu are implementing regulations to restrict short-term rentals to a minimum duration of 90 days, addressing concerns about housing availability and affordability for local residents. Hawaii’s local statutes also prioritize owner occupancy, offering property tax exemptions to homeowners who live in their primary residences. These exemptions financially benefit homeowners and promote stable communities.
Airbnb and VRBO properties are subject to certain regulations and restrictions
In most residential neighborhoods on the island, these short-term vacation rentals are not permitted or allowed without proper certification. The City and County of Honolulu has implemented laws and regulations to control and manage the operation of these rental properties in an effort to balance the needs of residents and maintain the character of residential neighborhoods.
Hosts must obtain the appropriate permits and certifications, such as a Transient Vacation Rental (TVR) or Bed and Breakfast (B&B) license. These licenses require meeting specific criteria, including compliance with zoning regulations, safety standards, and tax obligations. It is important for hosts to research and understand the requirements and limitations in their specific area before offering their property as a short-term rental.
7. Moving to Hawaii with pets? Expect to quarantine them
When bringing pets to Hawaii, strict regulations aim to prevent the introduction of non-native diseases. All pets must undergo a mandatory quarantine period when moving to Hawaii to help prevent the introduction and spread of rabies. Hawaii is a rabies-free state, and the strict regulations are in place to maintain this status.
There are a few pet quarantine options you can choose from, including a 120-day quarantine in a designated facility, and a “5-Day-or-Less” program for a shorter quarantine. It’s essential to thoroughly research these options in advance and ensure that your pet meets the specific conditions, such as health requirements and permits, associated with your chosen option. It’s important to begin the quarantine process early, seek guidance from the Hawaii Department of Agriculture or a pet relocation service, and ensure compliance with all regulations for a smooth transition.
Navigating Oahu’s luxury real estate market successfully requires an understanding of these nuances and working with experienced local real estate professionals who can provide insights and guidance. They can help buyers navigate the complexities, identify suitable properties, and negotiate competitive offers. Aloha!
“We have a serious housing crisis in New Mexico and across the country,” Heinrich said in an announcement posted on the senator’s website. “It’s impacting everyone, at all income levels and in nearly every community. The DEPOSIT Act tackles one piece of this puzzle by focusing on the costs that come from moving into a new home. That includes security deposits – one of the biggest barriers low-income renters face when moving into a new apartment, often required on top of two months’ rent.”
The bill is designed to “unlock support to help renters overcome this barrier so their families can settle into a safe place to call home and build a foundation for a better future,” he said.
The bill’s co-sponsors are comprised of other Democratic senators, including Ben Ray Luján (D-NM), Alex Padilla (D-CA) and Peter Welch (VT).
In addition, Rep. Barbara Lee (D-CA) is expected to introduce a commensurate version of the bill into the Republican-controlled House of Representatives.
“With housing costs and general cost of living skyrocketing, there should be relief for people to ensure they have shelter,” Rep. Lee said. “I’m excited to work with Sen. Heinrich to build bicameral support to fund this important program because homelessness knows no bounds. It’s time the federal government get off the sidelines and work to combat America’s housing crisis.”
One reason this issue is being pursued is that “security deposit assistance programs are inconsistent across the country,” according to the announcement.
“[S]tate and local housing authorities [are] supplementing assistance with non-profits and community organizations,” the announcement states. “The DEPOSIT Act would expand federal support for essential moving costs, like security deposits, for Section 8 voucher holders and other low-income renters.”
Rep. Lee added that the bill’s provisions are modeled after a housing program from the George W. Bush administration.
“The DEPOSIT Act would set up a revolving fund to provide security deposit assistance to low- and very low-income renters,” Lee’s office said. “This section is modeled on the American Dream Down payment Initiative (ADDI)—a bipartisan effort from President George W. Bush’s tenure to provide down payments to first-time homebuyers.”
The bill would also require the U.S. Department of Housing and Urban Development (HUD) to perform a study of the impact on “alternatives to security deposits;” which her office describes as “insurance-like products where renters pay a monthly fee to a third-party company.”
Sen. Heinrich has secured support for the bill from a number of housing organizations in his state, including the Albuquerque Housing Authority, New Mexico Coalition to End Homelessness, San Juan Partnership, Community Action Agency of Southern New Mexico, Mesilla Valley Community of Hope, DreamTree Project, Youth Heartline and HEART of Taos.
Home prices aren’t crashing, despite what the housing bubble boys are saying. In fact, home prices have firmed up higher recently.
The housing bubble boys are a crew that from 2012 to 2019 screamed housing crash every year. They went all in during COVID-19 in 2020, doubled down in 2021 as the forbearance crash bros but really bet the farm on a massive home-price crash in 2023 after the most significant home sales crash ever in 2022.
Well, it’s June 9, 2023, and home prices have been firm month to month, not showing anything that resembles the housing bubble crash years. Those who know my work over the last 10 years know that I have Batman/Joker relationship with the housing crash people, because they never stop. I mean, it’s year 11 now of the housing bubble 2.0 crash.
Each year is different, but here are some reasons they gave for home prices to crash over the past 11 years:
2012 – Shadow inventory
2013 – Higher mortgage rates
2014- QE ending in October
2015- Manufacturing recession
2016- Home prices got back to the bubble high
2017 – No good reason
2018- 5% mortgage rates (Start of the bubble crash for sure)
2019 – Home-price growth was cooling off
2020- COVID-19
2021 – Mortgage forbearance
2022- 7% mortgage rates
2023- Historically low housing demand
The point of this article is not to focus on the years 2012-2021, but on how crazy the housing data has been since 2022 and when the housing market changed from a historic crash in demand to stabilization.
In 2022 it was all about finding a point in time when I thought mortgage rates would fall, which was key to understanding how the purchase application data would react to lower mortgage rates.
We have had plenty of times in the previous decade when mortgage rates fell and demand improved, but that was with a lot lower mortgage rates. In 2022, mortgage rates got as high as 7.37%, so the question was: how low do rates have to go for housing demand to get better?
But first, let’s start with some key dates in 2022.
On June 16, 2022, I put the housing market into a recession, which is where housing demand, housing jobs, housing income and housing production all drop. We can see this over the last year as jobs are being lost in the industry, incomes are falling due to less transaction volume, housing demand collapsed and housing permits fell since the builders had a backlog of homes to work off.
Then on Aug. 5, 2022, a few days after I presented to The Conference Board, I raised my sixth recession red flag for the overall economy. My recession red flag model doesn’t say we are in a recession, but means we should be more mindful to track economic data at this stage, especially what can lead to higher jobless claims. According to this model, the U.S. economy is still not in a recession.
Now begins the journey to stabilization in housing data.
When did the 10-year yield peak?
The 10-year yield is central to all my economic work, but trying to find a top in 2022 was very challenging due to the market conditions where bond yields rose so fast and the strong dollar put so much stress on the world markets. For instance, England almost lost its pension funds, and Japan needed intervention for theirs. Even the IMF was begging the U.S. to stop hiking rates.
For me, 4.25% on the 10-year yield was the top. On Oct. 27, 2022, I made a case for lower mortgage rates using one of the Fed’s critical recessionary indicators: the 3/10 bond yield inversion. That was key because historically the next big move in yields would be lower.
Not only did I hold that line toward the end of 2022, but it was also the staple range in my 2023 forecast. In that forecast, I wrote that if the economy stays firm, the 10-year yield range should be between 3.21% and 4.25%, equating tomortgage rates between 5.75% and 7.25%.
I have also stressed that it would be hard for the 10-year level to break below 3.37% and 3.42%. I call it the Gandalf line in the sand: “You shall not pass.” Now, if jobless claims break over 323,000k on the four-week moving average, the 10-year could break under 3.21% and get toward 2.73%. That could send mortgage rates under 6%.
Let’s look at the 10-year yield and add the CPI inflation growth. So far, as you can see, the forecast from the peak of 4.25% has stayed true, and we haven’t been able to break below the critical line in the sand either, indicated by the red line below.
Mortgage rates ranged from 7.37% to 5.99% during this period, and how the market reacted to them changed the dynamics of the housing discussion and home prices. That is the next step of this process.
Purchase application data
The housing market began to change starting Nov. 9, 2022, from a housing sales crash to a stabilization period. That day, I wrote an article about how bad the home sales data was getting due to the affordability hit and that existing home sales should get down toward 4 million and below. This is key because it’s rare since 1996 to get sales below 4 million and we have many more workers now than in previous cycles.
With that in mind, I wanted to see how purchase application data would act. From November until Feb. 3, most weekly prints were positive once you exclude some holiday prints. This was a big deal because mortgage rates didn’t need to get to 5.5%-5% to stabilize demand. Since Nov. 9, 2022, we have had 17 positive and 11 negative purchase application prints. This changed the demand aspect of housing.
It’s not like we have a booming sales market. I believe the giant existing home sales print we had in March will be the peak in 2023 unless we get some better purchase application data, which will need lower mortgage rates.
. The importance of this is that 2022 had the most significant home sales crash ever recorded in U.S. history, and because of that, not even low inventory could prevent home prices from declining month to month in the second half of 2022. However, that changed once the 10-year yield peaked, mortgage rates fell, and demand stabilized. Now we can talk about the final stage: inventory in the U.S.
Housing inventory
The No. 1 story in the second half of 2022 was that after mortgage rates spiked, new listing data started to go negative year over year, which was crazy because we were already working from all-time lows. This was a big deal, and the weekly Housing Market Tracker of new listing data was all over this. The weakness in the new listing data carried us all the way to where we are today in 2023 at all-time lows.
How would new listing data trending at all-time lows impact the active inventory in 2023? We know mortgage rates fell toward the end of 2022, and forward-looking demand was improving. This doesn’t bode well for vigorous inventory growth in 2023, as lower mortgage rates improve demand, which takes housing inventory off the market. This also means there will be no bubble crash in prices in 2023. The active inventory growth is so slow this year that we are heading toward negative year-over-year numbers.
This all works together because we’re watching a housing market that went from crashing in demand and inventory rising with some speed to a market that reacted better with lower mortgage rates, stabilized home sales, and slowed inventory growth. With stable demand, this chart becomes more critical. Total active listing data still is low historically.
Also, we don’t have much credit stress in the system right now. As you can see in the chart below, we don’t have the credit stress that led to the housing bubble crash years.
This article shows the historical change in one of the craziest housing periods ever recorded. We created the weekly Housing Market Tracker so you can be ahead of the lagging data and understand what is coming next. One thing is certain — it’s not a housing crash.
It looks like Rock & Roll Hall of Famer Billy Joel isn’t in such a New York state of mind these days.
The New York native recently listed his trophy property on the very posh Oyster Bay Harbor for a hefty $49 million.
The 26-acre estate, known as Middlesea, comprises the original 14-acre property the musician bought for $22.5 million in 2002 and the adjoining parcels he’s picked up over the years, according to the Wall Street Journal. It comes with more than 2,000 feet of frontage on Centre Island.
The highlight of the estate is an elegant, 20,000-square-foot main house with spectacular water views.
There are five bedrooms, six full baths, two half-baths, a playroom, a spa and hair salon, a bowling alley, and a wine cellar. There’s also an indoor pool, which Joel has covered up so he could use the space as a music room, because of its excellent acoustics, according to listing agent Bonnie Williamson, of Daniel Gale Sotheby’s International Realty.
Parts of the main house are being renovated and are expected to be completed within the next several months.
The estate also features a three-bedroom beach house, a three-bedroom guest apartment, and a four-bedroom gatehouse.
Other luxe amenities include a floating dock and boat ramp, two outdoor pools, and a helicopter pad.
You might be wondering why, after spending more than 20 years developing this trophy property so close to his hometown of Hicksville, also on Oyster Bay, the musician would let it go. The Journal reports that Joel, wife Alexis Roderick, and their two young children are spending more time in Florida.
Joel purchased a $22 million Florida estate in 2015 and reportedly owns a Sag Harbor, NY, property. So it appears the music titan will not be moving out of New York completely.
Joel, 74, is a multiple-Grammy winner and one of the world’s bestselling artists of all time.
Closing a bank account and opening a new one can be tricky.
Banks like to keep customers, so they make the closing process complicated.
The “hassle factor,” or the million-and-one little things you have to do before a task is complete, is one of the biggest reasons people don’t switch banks. Another reason is that people don’t feel like they know enough about other account options.
Breaking the process down into steps can help. Overall, it’s easier than you think. And the savings, in money or convenience, will usually be worth it.
Follow the three steps and you’ll be able to switch banks with as little stress as possible.
What’s Ahead:
1. Find a new bank account first
Open the new account before closing the old one. That way your automatic transactions can continue smoothly without a gap in between.
If you haven’t already picked a new bank, do some research on different banks’ requirements, perks, and fees. Here’s what you want to look for:
Services the new bank offers that your old one doesn’t. These could be simple tweaks, like an easier-to-use mobile app, or major financial services like CDs and retirement accounts.
Interest rates. If you’re switching savings accounts, compare the interest rate you’re getting on your current account versus what you might get with a new account. Some banks offer interest-bearing checking accounts, too.
The convenience factor. Can you navigate the new bank’s website? How easy is it for you to find and use their ATMs? How quickly can you set up autopay or other day-to-day transactions?
Customer assistance options. Ideally, you’re looking for a bank or credit union that makes it easy to contact a representative if you need help, and gives you contact options you’ll actually use. If you hate talking on the phone, for instance, maybe the new bank has an email or live chat feature.
Other factors will vary from person to person, like:
Your future needs. If you’re hoping your new bank will give you a mortgage loan or help you set up investment accounts down the line, find a place that offers these services.
Your banking style. Some people love online-only banking. Others want to meet with an actual person at a brick-and-mortar branch for big transactions.
Your local options. Many people prefer joining a local credit union, which is customer-owned, over signing up for a national bank. Credit unions and smaller banks have other perks, too, like better interest rates on loans for members.
Another perk of switching banks is that banks will often reward new customers. This means you may be eligible for cash rewards, temporary interest rate reductions, or other bonuses when you open a new checking or savings account.
See our current picks for the best checking account promotions and savings account promotions.
Go into the bank in person if you can, rather than opening an account over the phone (unless your bank is online). You’re more likely to get all your questions answered and you can ask directly about those potential bonus opps.
Although requirements vary depending on the bank, you’ll want to bring:
An official photo ID like a driver’s license, state ID, or passport.
Your Social Security number (you may not need your Social Security card, unless the bank specifically asks for it).
Cash, check, or payment info (routing and account number) for the opening deposit.
The minimum you’ll need to deposit will depend both on the bank and the type of account you’re setting up.
If you’re looking for a low minimum amount, or no fee required to open an account, your best bet is an online checking or savings.
Read more: Online banking vs. traditional banking
2. List and reroute any automatic transactions from your old bank
Now that you have a new bank account, it’s time to transfer your regular deposits and withdrawals. Start as soon as possible: this part may take a while if you have a lot of automatic transactions. It’s a good chance to review which services you’re spending money on (like video streaming services or memberships you forgot you had).
Here’s where your old bank statements come in handy. Get a list of your statements from the past year. Statements should be available online at your bank’s website if you don’t have paper copies.
This is a two-step process.
Step 1: Look over the past 12 months of transactions
Some automated transactions may be annual, so you might miss them in less than a year’s worth of statements. Note when deposits show up in your account and when payments are automatically withdrawn.
Keep some cash in the old account until this step is complete. You want to avoid missing scheduled payments or getting hit with overdraft fees. If you’ve written checks recently or if payments are pending, keep the old account open and funded until those payments clear.
Step 2: Switch over your deposits and payments
Once you know which deposits and payments to transfer, you can start switching them over to your new account.
If you get direct deposit from your employer, submit your new bank info (via a canceled check or just a routing and account number).
Reroute any automatic payments to your new account as soon as you can, since the change may take a few days or weeks to finalize. Some billers require notice up to a month in advance for new payment info.
Read more: How to set up direct deposit
3. Close the old account for good
Read up on your bank’s procedures for closing an account first. Some banks will let you close an account by mail, online, or over the phone; some require you to show up in person.
This list collects info on how consumers successfully closed accounts at multiple American banks. But since procedures may change, your best bet is to ask the bank directly how it’s done.
Close the account in person, if possible
I recommend closing the account in person if time and convenience allow.
A bank visit makes it easier for you to get the transaction in writing. “Zombie accounts” sometimes come back from the dead — a closed account might get reactivated if you forgot to reroute an automatic payment or if there’s a billing error. To minimize the risk of a zombie account haunting you, ask for a letter from the bank stating you closed the account.
Even if you have no funds in the account, you still need to formally close it. You may be able to close an empty account online by following the instructions on the bank’s website.
Make sure you get all the money from your account
If you have funds in the account you’re closing, the bank will usually write you a check for the amount of the balance, or just transfer funds to your new account.
Your bank may require a formal written request (such as a notarized letter) to close an account with an open balance. You may also have to go to the bank in person to pick up the check. Give the money one to two business days to transfer. A wire transfer’s faster, but it costs more.
Make sure closing the account won’t affect your credit score!
If you owe money on the account you’re closing, you won’t be able to shut it down until you pay the balance and any fees.
The bank might close an account with a negative balance after a month or so, but don’t wait for this to happen — it will negatively impact your credit. You want a neat, clean closure.
When should you switch bank accounts?
You’re merging finances with a partner
In a committed relationship where you have decided to split expenses, a joint bank account can save you money and time (many people merge accounts after marriage or entering into a domestic partnership).
You might combine finances in a brand new account, or join your partner’s existing account if their bank has more of the services you need.
Read more: How to merge bank accounts after marriage
The fees are too high
With so many banks offering fee-free checking accounts and dropping fees from high-yield savings accounts, you don’t need to stick with a bank that piles on fees.
For example, if you keep getting hit with overdraft charges despite your best intentions, look for a bank with minimal (or zero!) overdraft fees (or one without minimum balance requirements). Similarly, if you use cash frequently, pick a bank with no ATM fees.
Read more: How to stop paying ATM fees
Another bank’s features work better for your needs
It’s normal for financial situations and priorities to change, and your banking needs might change with them.
Whether you want an account that connects to a budgeting app, offers a significantly higher interest rate over time, rewards you for better credit, works with poor credit, or lets you complete all your transactions online, there are plenty of options if your current account lacks features you need.
The bank isn’t FDIC-insured
Most banks and other financial institutions have insurance from the Federal Deposit Insurance Corporation (FDIC), which protects your money up to $250,000 in case the bank fails. (They’ll mention FDIC coverage somewhere on their website, or you can see which banks are covered here). A lack of FDIC coverage is a security red flag.
You’re relocating
If you’re moving and your current bank doesn’t have physical branches near your new location, it’s often more convenient to switch — either to a big-ticket bank with branches all over the world, a local community bank in your new area, or an online-only bank.
You don’t agree with your bank’s values
Social responsibility is a big deal to a lot of consumers, and if your bank supports a cause or makes a decision you don’t agree with, you may want to put your money where your values are.
I switched from a national to a local bank for this reason with no issues (it wasn’t even awkward when I told the teller at my former bank why I was switching).
Read more: What you should know about socially responsible banks
Pros and cons of switching bank accounts
Pros
Potential cost savings. Your new bank may offer a higher interest rate for a savings account, or lower fees than your old bank. After some time, you’ll start to see the savings add up.
Possible sign-up bonuses. You can take advantage of any one-time bonuses or financial rewards your new bank offers as a “thank you” to new customers.
A better fit for your needs. Maybe you finally made the switch to an all-online bank (no branch visits!) or a local bank near where you live (fewer out-of-network ATM fees!). In any case, a bank that fits your lifestyle and preferences is the best choice.
Cons
Transferring direct deposits and autopays. This part of changing bank accounts takes some time and energy, especially if you have lots of monthly bills on autopay.
Less familiarity. You know less about the new bank’s procedures, and they know less about you — like your credit history, for instance. This means the approval process might take longer if you want a loan or additional account at your new bank.
Finding fees in the fine print. Banks and credit unions should be upfront about any fees they charge. But when you open a new account or close an old one, you’re getting a lot of information at once. Info on fees could be easy to miss if you’re not looking out for it.
The bottom line
Closing your bank account and opening a new one can be a pain, but if you take the right steps and make sure you do everything correctly, it doesn’t have to be a huge hassle.
Featured image: Lemon Tree Images/Shutterstock.com