Real Estate News & Commentary

Real Estate News Roundup: Impact of Politics on Home Values & Taxes; US Economic Outlook; Expert Home Staging Tips

Expertise: Real Estate News & Commentary
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Homes Worth More in Democrat Areas Around US While Republican Homeowners Pay Less Property Taxes

ATTOM Data Solutions released a special political housing analysis showing that average homes in Democrat-controlled counties around the nation are worth 75 percent more than those in Republican-controlled counties. The analysis also shows that homeowners in Democratic areas are more likely to have substantial equity established, while, property taxes in counties that lean Republican are roughly half of what homeowners pay in Democratic areas.

Related: Real Estate News Roundup: Markets Begin to Cool; Natural Disasters Spawn Moves; Home Showings Up

Among roughly 3 million single-family homes sold in 2019 in the United States, the average price in counties with Democratic members of the U.S. House of Representatives was $428,958, compared to $245,085 in Republican-leaning counties.

When it comes to equity built up in their properties, 31 percent of homeowners with mortgages in Democratic-leaning areas are considered equity-rich, meaning the balance remaining on their loans is less than half the estimated value of their homes. Just 24.3 percent of owners in Republican-controlled areas fall into that category. Moreover, 4.9 percent of owners in Democratic counties are seriously underwater, meaning they owe at least 125 percent of the value of their properties; while 7.2 percent are seriously underwater in Republican counties.

Infographic courtesy of ATTOM Data Solutions

Read more here.

BBVA Research: U.S. Economic Outlook for Q4

– Deflation: Deflation risks are giving way to potential for upside in the medium-term

– Residential Real Estate: Tight market conditions and high affordability will continue to support residential real estate

The BBVA Research team has published its Economic Outlook for fourth quarter 2020, anticipating that the pandemic and upcoming election could add noise to the short-term outlook even as medium-term prospects improve.

Related: Real Estate News Roundup: COVID Worsens Inventory Crisis; House Hunters Consider Politics; NY Rents Tumble

The report, published by the BBVA Research team headed by BBVA Chief Economist Nathaniel Karp, continues to highlight the ongoing economic impact of the pandemic.  According to its authors, significant fiscal and monetary policy intervention did offset the economic fallout of the pandemic, but those stimulus measures are fading. While its impact on activity is declining, recovery from the pandemic remains tenuous due to growing cyclical headwinds and waning stimulus. In addition, as workers adjust to a new reality, seeing a rise in permanent unemployment.

Regarding monetary policy, the team states that despite some improvement in Fed sentiment, the shifts in goals and strategy implies continued low rates for the foreseeable future. The Fed is expected to continue fine-tuning its balance sheet plans as policy shifts from stabilization to accommodation.

The BBVA Research publication further delves into fiscal policy, commercial real estate, and the outlook for the banking industry, which has seen massive expansion in deposits and policy support to limit the deterioration of credit quality.

Access the full report here.

Related: Real Estate News Roundup: Unexpected Flock to Fire-Prone Areas; Multifamily Move-Ins Rebound; Trump Condos’ Appeal Fades

The Consumer’s Guide to Real Estate Staging with 2020 Home Staging Statistics

The Real Estate Staging Association (RESA) has released The Consumer’s Guide to Real Estate Staging.

Included in the guide is a study of 13,000 staged homes and found that 85% of staged homes sold between 5-23% over list price. RESA found that with a typical investment of 1% of list price, 75% of sellers saw an ROI of 5-15%. The guide also includes staging benefits, how to determine if your stager is a hobbyist or a professional, virtual staging, cosmetic upgrades, curb appeal, professional photography, how to show your home, and a six-week moving guide.

“The primary objective of home staging is not to decorate, but rather bring the property up to a level that it will appeal to the greatest number of potential buyers that will pay the highest price possible. Professional real estate stagers use their knowledge of design trends, real estate ethics, and property renovation solutions to help the seller achieve their goals,” noted RESA.

Get the guide here.

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    Mikael Winkler Rental Property Investor from Columbus, OH
    Replied 18 days ago
    Interesting article Jessa! I think most people would assume home ownership fares better in Republican controlled areas, but those areas are (oftentimes) more rural. And generally, rural home values aren't going to be as high as in metro areas, which generally lean Democratic. One of those things, in which, one may assume something on the surface, but when you dig in, it's a different story.
    Jessa Claeys Managing Editor from Denver, CO
    Replied 18 days ago
    Good call! I agree with your assessment. Thanks for reading!