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U.S. Foreclosure Activity Decreases 15 Percent in Q1 2019 to Lowest Levels Since Q1 2008
Foreclosure Activity Below Pre-Recession Levels in 60 Percent of U.S. Markets; Foreclosure Starts Up Seven Percent From a Year Ago; Average Foreclosure Timeline Increases 5 Percent From Last Year IRVINE, Calif. – April 11, 2019 — ATTOM Data Solutions, curator of the nation's premier property database and first property data provider of Data-as-a-Service (DaaS), today released its Q1 2019 U.S. Foreclosure Market Report, which shows a total of 161,875 U.S. properties with a foreclosure filing during the first quarter of 2019, down 23 percent from the previous quarter and down 15 percent from a year ago to the lowest level since Q1 2008. The report also shows a total of 58,550 U.S. properties with foreclosure filings in March 2019, up 7 percent from the previous month but down 21 percent from a year ago — the ninth consecutive month with a year-over-year decrease in U.S. foreclosure activity. "While some markets saw a slight uptick in foreclosure filings, that is above pre-recession levels, the majority of the major markets are well below pre-recession levels," said Todd Teta, chief product officer at ATTOM Data Solutions. "While we did see a slight increase in U.S. foreclosure starts from last quarter, bank repossessions reached an all-time low in the first quarter of 2019, showing continuing signs of a strong housing market." Markets below pre-recession levels include San Jose, Memphis, Dallas-Fort Worth The 132 out of the 220 markets (60 percent) with a population greater than 200,000 in the first quarter foreclosure activity below pre-recession averages included San Jose (79 percent below); Memphis (77 percent below); Dallas-Fort Worth (77 percent below); Las Vegas (74 percent below); and Phoenix (68 percent below). Other major markets with first quarter foreclosure activity below pre-recession averages were San Francisco, Riverside-San Bernardino in Southern California, Chicago, Detroit and Seattle. Markets still above pre-recession levels include Baltimore, Washington D.C., Philadelphia In 88 out of the 220 markets analyzed (40 percent), first quarter foreclosure activity levels were still above pre-recession averages, including Baltimore (189 percent above); Washington D.C. (26 percent above); Philadelphia (20 percent above); New York (13 percent above); and Hartford (4 percent above). Other major markets with first quarter foreclosure activity above pre-recession averages included Richmond, Virginia; Virginia Beach, Providence, Rhode Island; and New Orleans. Foreclosure starts increase 7 percent from last quarter Lenders started the foreclosure process on 91,397 U.S. properties in Q1 2019, up 7 percent from the previous quarter but down 3 percent from a year ago — the 15th consecutive quarter with a year-over-year decrease in foreclosure starts. Counter to the national trend, 15 states posted year-over-year increases in foreclosure starts in Q1 2019, including Florida (up 65 percent); Georgia (up 30 percent); Texas (up 27 percent); Louisiana (up 20 percent); Washington (up 12 percent); and Maryland (up 11 percent). Bank repossessions down in 48 states and DC Lenders repossessed 35,787 U.S. properties through foreclosure (REO) in Q1 2019, down 21 percent from the previous quarter and down 45 percent from a year ago — the 14th consecutive quarter with a year-over-year decrease in U.S. REOs. Along with the District of Columbia, 48 states posted year-over-year decreases in REOs in the first quarter, including Arizona (down 77 percent); California (down 41 percent); Florida (down 33 percent); New Jersey (down 59 percent); and Texas (down 43 percent). Atlantic City, Lakeland, Trenton highest metro foreclosure rates in Q1 2019 Nationwide one in every 836 U.S. housing units had a foreclosure filing in the first quarter of 2019. States with the highest foreclosure rates in the first quarter were New Jersey (one in 333 housing units with a foreclosure filing); Delaware (one in 364); Maryland (one in 412); Florida (one in 487); and Illinois (one in 489). Among 220 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in Q1 2019 were Atlantic City, New Jersey (one in every 177 housing units with a foreclosure filing); Lakeland, Florida (one in 338); Trenton, New Jersey (one in 345); Columbia, South Carolina (one in 372); and Philadelphia, Pennsylvania (one in 373). Along with Philadelphia, other major metros with a population of at least 1 million and foreclosure rates in the top 25 highest nationwide included Jacksonville, Florida at No. 7, Baltimore at No.9, Cleveland at No. 13, Chicago at No. 14, Tampa at No. 17, Miami at No. 18, and Orlando at No. 21. Average foreclosure timeline increases 5 percent in first quarter Properties foreclosed in the first quarter of 2019 had been in the foreclosure process an average of 835 days, up 3 percent from an average 811 days for properties foreclosed in the fourth quarter of 2018 and up 5 percent from an average of 791 days for properties foreclosed in the first quarter of 2018. States with the longest average foreclosure timeline for properties foreclosed in Q1 2019 were Indiana (1,806 days), Hawaii (1,565 days), Arizona (1,385 days), New Jersey (1,212 days), and Florida (1,196 days). States with the shortest average time to foreclose in Q1 2019 were West Virginia (159 days), Virginia (206 days), Minnesota (251 days), Alaska (262 days), and Wyoming (269 days). March 2019 Foreclosure Activity High-Level Takeaway Nationwide in March 2019 one in every 2,312 properties had a foreclosure filing States with the highest foreclosure rates in March 2019 were Delaware (one in every 999 housing units with a foreclosure filing); New Jersey (one in every 1,021 housing units); Maryland (one in every 1,077 housing units); Florida (one in every 1,345 housing units); and South Carolina (one in every 1,379 housing units). 32,280 U.S. properties started the foreclosure process in March 2019, up 9 percent from the previous month but down 2 percent from a year ago. March 2019 marked the third consecutive month with a month-over-month increase in foreclosure starts. Lenders completed the foreclosure process on 12,167 U.S. properties in March 2019, up 7 percent from the previous month but down 53 percent from a year ago. About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, APIs, market trends, marketing lists, match & append and introducing the first property data deliver solution, a cloud-based data platform that streamlines data management – Data-as-a-Service (DaaS).
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CoreLogic Reports U.S. Overall Delinquency and Foreclosure Rates Lowest for January in at Least 20 Years
CoreLogic, a leading global property information, analytics and data-enabled solutions provider, today released its monthly Loan Performance Insights Report. The report shows, nationally, 4 percent of mortgages were in some stage of delinquency (30 days or more past due, including those in foreclosure) in January 2019, representing a 0.9 percentage point decline in the overall delinquency rate compared with January 2018, when it was 4.9 percent. This was the lowest for the month of January in at least 20 years. As of January 2019, the foreclosure inventory rate – which measures the share of mortgages in some stage of the foreclosure process – was 0.4 percent, down 0.2 percentage points from January 2018. The January 2019 foreclosure inventory rate tied the November and December 2018 rates as the lowest for any month during the 2000s. Measuring early-stage delinquency rates is important for analyzing the health of the mortgage market. To monitor mortgage performance comprehensively, CoreLogic examines all stages of delinquency, as well as transition rates, which indicate the percentage of mortgages moving from one stage of delinquency to the next. The rate for early-stage delinquencies – defined as 30 to 59 days past due – was 1.9 percent in January 2019, down from 2 percent in January 2018. The share of mortgages 60 to 89 days past due in January 2019 was 0.7 percent, down from 0.8 percent in January 2018. The serious delinquency rate – defined as 90 days or more past due, including loans in foreclosure – was 1.4 percent in January 2019, down from 2.1 percent in January 2018. The serious delinquency rate of 1.4 percent this January was the lowest for that month since 2001 when it was also 1.4 percent and was the lowest for any month since September 2006 when it was also 1.4 percent. Since early-stage delinquencies can be volatile, CoreLogic also analyzes transition rates. The share of mortgages that transitioned from current to 30 days past due was 0.8 percent in January 2019, unchanged from January 2018. By comparison, in January 2007, just before the start of the financial crisis, the current-to-30-day transition rate was 1.2 percent, while it peaked in November 2008 at 2 percent. "Income growth, home appreciation and sound underwriting combined have pushed delinquency rates to their lowest level in 20 years," said Dr. Frank Nothaft, chief economist for CoreLogic. "The low delinquency rates on home mortgages are a contrast to the rising delinquency rates on consumer credit. While home mortgage delinquency rates are at, or are near, their lowest levels in two decades, delinquency rates for auto and student loans are higher now than they were during the early and mid-2000s." The nation's overall delinquency rate has fallen on a year-over-year basis for the past 13 consecutive months. Fewer delinquencies attribute to the strength of loan vintages in the years since the residential lending market has recovered following the housing crisis. In January, 13 metropolitan areas experienced annual gains – mostly very small – in their serious delinquency rates. The largest gains were in five Southeast metros affected by natural disasters in 2018. "As the economic expansion continues to create jobs and low mortgage rates support home buying this spring, delinquency rates are likely to trend lower during the coming year," said Frank Martell, president and CEO of CoreLogic. "The decline in delinquency rates has occurred in nearly all parts of the nation." The next CoreLogic Loan Performance Insights Report will be released on May 14, 2019, featuring data for February 2019. For ongoing housing trends and data, visit the CoreLogic Insights Blog. About CoreLogic CoreLogic (NYSE: CLGX) is a leading global property information, analytics and data-enabled solutions provider. The company's combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.
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U.S. Median Home List Price Hits $300,000 for the First Time Ever
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Pending Home Sales Dip 1.0 Percent in February
WASHINGTON (March 28, 2019) – Pending home sales endured a minor drop in February, according to the National Association of Realtors®. The four major regions were split last month, as the South and West saw a bump in contract activity and the Northeast and Midwest reported slight declines. The Pending Home Sales Index, a forward-looking indicator based on contract signings, decreased 1.0 percent to 101.9 in February, down from 102.9 in January. Year-over-year contract signings declined 4.9 percent, making this the fourteenth straight month of annual decreases. Lawrence Yun, NAR chief economist, said February's pending home sales decline is coming off a solid gain in the prior month. "In January, pending contracts were up close to 5 percent, so this month's 1 percent drop is not a significant concern," he said. "As a whole, these numbers indicate that a cyclical low in sales is in the past but activity is not matching the frenzied pace of last spring." Yun said despite the growth in the West, the region's current sales are well below the sales activity from 2018. "There is a lack of inventory in the West and prices have risen too fast. Job creation in the West is solid, but there is still a desperate need for more home construction." Yun pointed to year-over-year increases in active listings from data at realtor.com® to illustrate the potential rise in inventory. Denver-Aurora-Lakewood, Colo., Seattle-Tacoma-Bellevue, Wash., San Diego-Carlsbad, Calif., Portland-Vancouver-Hillsboro, Ore.-Wash., and Nashville-Davidson-Murfreesboro-Franklin, Tenn., saw the largest increase in active listings in February compared to a year ago. Yun added that he does not anticipate any interest rate increases from the Federal Reserve in 2019. "If there is a change at all, I would say the Fed will lower interest rates in 2019 or 2020. That would stimulate the economy and the housing market," he said. "But the expectation is no change at all in the current monetary policy, which will help mortgage rates stay at attractive levels." February Pending Home Sales Regional Breakdown Yun expects existing-home sales this year to decrease 0.7 percent to 5.30 million, and the national median existing-home price to increase around 2.7 percent. Looking ahead to 2020, existing sales are forecast to increase 3 percent and home prices also around 3 percent. The PHSI in the Northeast declined 0.8 percent to 92.1 in February, and is now 2.6 percent below a year ago. In the Midwest, the index fell 7.2 percent to 93.2 in February, 6.1 percent lower than February 2018. Pending home sales in the South inched up 1.7 percent to an index of 121.8 in February, which is 2.9 percent lower than this time last year. The index in the West increased 0.5 percent in February to 87.5 and fell 9.6 percent below a year ago. The National Association of Realtors® is America's largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.
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CoreLogic Reports February Home Prices Increased by 4 Percent Year Over Year
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Home Shoppers Remain Optimistic but Believe a Recession is on the Horizon
Survey finds home shoppers expect a recession in the next three years, but 41 percent remain optimistic that housing will fare better than 2008 SANTA CLARA, Calif., March 29, 2019 -- Nearly 70 percent of home shoppers this spring think the U.S. will enter a recession in the next three years, but that hasn't stopped them from trying to close on a home, according to new survey data released today from realtor.com®. Despite the fact that they foresee an economic downturn, they generally expressed confidence that a future recession will be better than 2008 for the housing market. Overall, nearly 30 percent of the 1,015 consumers who are active home shoppers* surveyed expect the next recession to begin sometime in 2020. Twelve percent expect the recession to begin sometime in 2019, 16 percent expect sometime in 2021, and 12 percent expect 2022. Nearly 10 percent expect a recession in 2024 or later, and 21 percent reported that they didn't know. The online survey was conducted earlier this month with Toluna Research. According to the survey, even though 63 percent of shoppers report that home prices are increasing compared to last year, 56 percent of shoppers believe home prices have hit their peak. The feeling that home prices have topped out could be a reflection of shopper beliefs that a recession is in the not too distant future. In fact, those expecting the recession sooner were more likely to report that home prices had peaked, Hale noted. "The U.S. economy has been on a hot streak for the last seven years, producing steady economic growth and low unemployment rates. Historically, this type of growth hasn't continued indefinitely, and U.S. home shoppers think it will come to an end sooner rather than later," said Danielle Hale, realtor.com® 's chief economist. When asked if the U.S. housing market would fare better or worse than the 2008 economic recession, 41 percent responded with better. Thirty six percent expect it would be worse, while 23 percent expect it to be the same. Hale noted, the fact that some home shoppers expect the next recession to be harder on the housing market than the last recession suggests that they are buying homes with eyes wide-open and very sober, if not slightly pessimistic, views of the housing market. This is a stark contrast to the years leading up to the last recession when 'irrational exuberance' was more common and yet another reason to expect that the next downturn will be very different for the housing market than the last. "When the U.S. enters its next recession, it is unlikely that the housing market will see a sharp nationwide downturn. The same record low inventory levels that have made buying a home so difficult recently, will likely protect home prices in the next recession," Hale added. According to the survey, 45 percent of home shoppers feel at least slightly more optimistic about homeownership after the 2008 recession. Less than a quarter - 22 percent - feel at least slightly more pessimistic about homeownership, while 33 percent reported no impact on their feelings about homeownership. The duration of the recovery from the last recession could explain the optimism reported by some buyers. Since 2010, home prices across the U.S. have grown by 49 percent, the U.S. economy has grown by $3 trillion and 18.7 million more jobs have been created. This persistent optimism toward homeownership is likely a key reason that home shoppers are confident and looking to buy, even as they expect a recession is approaching. *Active home shoppers are those consumers who responded that they plan to purchase their next home in 1 year or less. About realtor.com® Realtor.com®, The Home of Home Search, offers an extensive inventory of for-sale and rental listings, and access to information, tools and professional expertise that help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today is the trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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Median-Priced Homes Not Affordable for Average Wage Earners in 71 Percent of U.S. Housing Markets
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Sellers Hope for a Spring Thaw as Sluggish February Real Estate Showing Activity Continues Seven-Month Decline Foretelling a Buyer's Market
March 26, 2019 – The traditionally busy spring home buying season can't come soon enough for home sellers across the country as February continued the trend of year-over-year declines in showing activity, according to data from the ShowingTime Showing Index®. Marking the seventh consecutive month of year-over-year decreases, February saw national showing activity drop 9.3 percent, with the West Region reporting the biggest decline at 16.8 percent. The West's 12-month average percentage change was -11.7 percent. The South Region saw an 11.3 percent year-over-year decline, followed by the Midwest Region (-10.5 percent) and Northeast Region (-5.5). "Showing activity remained slow in February, furthering the notion that the historically busy spring selling season may see less traffic than is typical," said ShowingTime Chief Analytics Officer Daniil Cherkasskiy. "These conditions may prove to be beneficial for home buyers, however, as the greater available inventory signals a strong buyer's market." The ShowingTime Showing Index, the first of its kind in the residential real estate industry, is compiled using data from property showings scheduled across the country on listings using ShowingTime products and services, providing a benchmark to track buyer demand. ShowingTime facilitates more than four million showings each month. Released monthly, the Showing Index tracks the average number of appointments received on active listings during the month. Local MLS indices are also available for select markets and are distributed to MLS and association leadership. To view the full report, visit showingtime.com/showingtime-showing-index/. About ShowingTime ShowingTime is the residential real estate industry's leading showing management and market stats technology provider, with more than 1.2 million active listings subscribed to its services. Its showing products and services simplify the appointment scheduling process for real estate professionals, buyers and sellers, resulting in more showings, more feedback and more efficient sales. Its MarketStats division provides interactive tools and easy-to-read market reports for MLSs, associations, brokers and other real estate companies. ShowingTime products are used in more than 250 MLSs representing over 950,000 real estate professionals across the U.S. and Canada. For more information, contact us at [email protected]
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Existing-Home Sales Surge 11.8 Percent in February
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Redfin Determines the Value of a Swimming Pool in 20 Major U.S. Metros
Pools are worth the most in Los Angeles, where they add nearly $100,000 to a typical home's valueIn Boston, homes with pools sell for about $15,000 less than homes without them SEATTLE, March 12, 2019 -- In Los Angeles, homes with pools sell for $95,393 more than comparable homes without them, according to a report from Redfin, the technology-powered real estate brokerage. Swimming pools are worth more in Los Angeles than they are in any other major U.S. metro area, followed by Austin and Orange County, California, where a pool adds more than $50,000 to a typical home's value. For this analysis, Redfin calculated the value of a private pool as a premium to a home's per-square-foot sale price. For instance, a home with a pool in the Houston metro area can be expected to sell for $16.42 more per square foot than a home without a pool. The ranking is limited to metro areas with at least 5,000 homes sold in 2018 where at least 2 percent of homes sold had pools, and where the results were statistically significant. "A pool definitely adds value for Los Angeles homebuyers, especially in the Valley because it's hot outside most of the time," said Redfin agent Lindsay Katz. "People use their pools all year round; we have pool parties in the summer and go swimming on Christmas day. It's ingrained in our culture." "In some parts of Los Angeles, particularly in the San Fernando Valley, it's almost a given that a house will have a pool and the lack of a pool can make it harder to sell," Katz continued. "Nearly half of my listings have pools, and when they don't, potential buyers are constantly asking whether they can add a pool to the property. It's important to people." In Phoenix, the story is a bit different. A pool adds $11,591 to the value of the typical home in the metro area, the lowest on the list of places where a pool provides a premium. Redfin agent Katie Shook said there are some parts of the Phoenix area where a pool is highly valuable—but in other places, it could detract from the value of a home. "In affordable parts of the Phoenix area like South Glendale and Tolleson, homebuyers don't want to pay to maintain a pool. I often find that in homes that sell for less than $200,000, a pool is a negative because it adds so many extra costs for the homeowner," Shook said. "But the reverse is true in the luxury market," Shook continued. "In the $700,000 to $1 million price range, especially in remote areas with more yard space, homebuyers expect a pool and they'll pay a premium for it." Boston was the only metro that both met the criteria to be included in this analysis and has cold, snowy winters. It's also the only place where a pool meaningfully subtracts from the value of a home. A home in the Boston area with a pool is worth $15,484 less than a comparable home without a pool. The full report includes an analysis of the value of pools of homes currently for sale in various metros, which range in value from a $18,836 pool in Phoenix to a $285,806 pool in LA's Studio City. To read more and view photos, please click here. About Redfin Redfin is the technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 85 major metro areas across the U.S. The company has closed more than $60 billion in home sales.
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CoreLogic Reports U.S. Overall Delinquency and Foreclosure Rates Lowest for December Since at Least 2000
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U.S. Home Flipping Returns Drop to Seven-Year Low in 2018
Top Major Market Flipping Rates in Memphis, Phoenix, Las Vegas, Tampa, Birmingham; Almost $20 Billion In Financed Flips in 2018, Up 8 Percent From 2017 to 11-Year High IRVINE, Calif. – February, 28 2019 — ATTOM Data Solutions, curator of the nation's premier property database, today released its Q4 and Year-End 2018 U.S. Home Flipping Report, which shows that 207,957 U.S. single family homes and condos were flipped in 2018, down 4 percent from the 216,537 home flips in 2017. The 207,957 homes flipped in 2018 represented 5.6 percent of all single-family home and condo sales during the year, stagnant from 5.6 percent of all sales in 2017 but up from 5.1 percent of all sales back in 2008. A total of 146,020 entities (individuals and institutions) flipped homes in 2018, down .4 percent from the 146,623 entities that flipped in 2017 but up 63.1 percent from 89,539 entities that flipped 10-years ago. "With mortgage rates remaining strong and people staying in their homes longer, we have started to see a bit of a flipping rate slowdown," said Todd Teta, chief product officer at ATTOM Data Solutions. "However, this isn't to say home flipping is going away. The market is still ripe with investors flipping and bargains still await, especially in the lowest-priced areas of the country, where levels of financial distress remain highest." Home flip lending volume up 8 percent to 11-year high The total dollar volume of financed home flip purchases was $19.9 billion for homes flipped in 2018, up 8 percent from $18.5 billion in 2017 to the highest level since 2007 — an 11-year high. 2018 Year-End Home Flipping Financing Trends Flipped homes originally purchased by the investor with financing represented 39.1 percent of homes flipped in 2018, down from 39.4 percent in 2017 and down from 41.0 percent in 2008. Among 53 metropolitan statistical areas analyzed in the report with at least 1 million people, those with the highest percentage of 2018 completed flips purchased with financing were Denver, Colorado (53.7 percent); Providence, Rhode Island (51.8 percent); Seattle, Washington (51.8 percent); San Diego, California (51.6 percent); and San Francisco, California (50.8 percent). Share of flips sold to FHA buyers at an 11-year low Of the homes flipped in 2018, 13.8 percent were sold to FHA borrowers — likely first-time homebuyers — down from 17 percent in 2017 to an 11-year low. Among 53 metro areas analyzed in the report with at least 1 million people, those with the smallest share of completed flips sold to FHA buyers in 2018 were San Jose, California (1.3 percent); Raleigh, North Carolina (4.3 percent); San Francisco, California (6.0 percent); Memphis, Tennessee (6.5 percent); and San Diego, California (7.2 percent). Among the 53 metro areas analyzed in the report with at least 1 million people, those with the highest share of completed flips sold to all-cash buyers — often other real estate investors — in 2018 were Detroit, Michigan (48.8 percent); Birmingham, Alabama (42.4 percent); Jacksonville, Florida (39.8 percent); Miami, Florida (38.3 percent); and Buffalo, New York (38.0 percent). Average home flipping returns drop to a four-year low Completed home flips in 2018 yielded an average gross profit of $65,000 (difference between median purchase price and median flipped sale price), down 3 percent from an average gross flipping profit of $66,900 in 2017. 2018 Year-End Home Flipping Gross Profits and Returns The average gross flipping profit of $65,000 in 2018 represented an average 44.8 percent return on investment (percentage of original purchase price), down from 50.3 percent in 2017 and down from an all-time high average gross flipping ROI of 51.0 percent in 2016. Among 176 metro areas with a population of at least 200,000 and at least 100 home flips in 2018, those with the highest average gross flipping ROI were Pittsburgh, Pennsylvania (144.2 percent); Scranton, Pennsylvania (131.7 percent); Atlantic City, New Jersey (113.2 percent); Cleveland, Ohio (112.1 percent); and Erie, Pennsylvania (109.3 percent). Along with Pittsburgh and Cleveland, other major metro areas with at least 1 million people and gross flipping ROI of at least 80 percent were Philadelphia (109.0 percent); Baltimore (103.5 percent); Buffalo (96.2 percent); Memphis (86.5 percent); and Cincinnati (84.2 percent). Highest home flipping rates in Memphis, Phoenix, Las Vegas, Tampa, Birmingham Among 53 metro areas analyzed in the report with at least 1 million people, those with the highest home flipping rate in 2018 were Memphis, Tennessee (11.7 percent); Phoenix, Arizona (9.1 percent); Las Vegas, Nevada (8.7 percent); Tampa-St. Petersburg, Florida (8.2 percent); Birmingham, Alabama (7.6 percent). Other major markets in the top 10 for highest 2018 home flipping rate were Baltimore, Maryland; St. Louis, Missouri; Philadelphia, Pennsylvania; Orlando, Florida; and Nashville, Tennessee. Among 6,015 zip codes with at least 10 home flips completed in 2018 and a population greater than 5,000, the highest home flipping rate was in 38141 in Memphis where home flips represented 29.5 percent of all home sales for the year. Other zip codes in the top 20 for highest 2018 home flipping rate included zip codes in Donna, Texas; Miami, Florida; Washington, D.C.; Jamaica, New York; Baton Rouge, Louisiana; Compton, California; and Phoenix, Arizona. Biggest increase in home flipping rates in Boston, Tucson, Raleigh, Columbus, Hartford Among metro areas with at least 1 million people, those with the biggest annual increase in home flipping rate in 2018 were Boston, Massachusetts (up 33.3 percent); Tucson, Arizona (up 27.3 percent); Raleigh, North Carolina (up 24.5 percent); Columbus, Ohio (up 13.1 percent); and Hartford, Connecticut (up 12.8 percent). Other major markets in the top 10 for biggest increase in home flipping rate in 2018 were New York, New York; Charlotte, North Carolina; Grand Rapids, Michigan, Pittsburgh, Pennsylvania and Milwaukee, Wisconsin. While 20 out of the 53 metro areas with at least 1 million people saw an increase in the home flipping rate in 2018, those that saw a decrease, included Kansas City, Missouri (down 25.2 percent); Buffalo, New York (down 17.5 percent); Indianapolis, Indiana (down 16.3 percent); Seattle, Washington (down 15.9 percent) and Salt Lake City, Utah (down 14.0 percent). Average time to flip down slightly from 2017 Homes flipped in 2018 took an average of 180 days to complete the flip, down from 181 days in 2017 but up from 159 average days to flip 10-years ago. Among 176 metro areas with a population of at least 200,000 and at least 100 home flips in 2018, those with the longest average time to flip were Provo, Utah (219 days); Boise, Idaho (215 days); Erie, Pennsylvania (213 days); Gainesville, Florida (213 days); and Kalamazoo, Michigan (212 days). High-level takeaways from Q4 2018 dataset: The 47,071 home flips in Q4 2018 were completed by 37,379 investors, a ratio of 1.26 flips per investor. The share of homes flipped in Q4 2018 that were purchased by the flipper with financing represented 36.4 percent of all homes flipped in the quarter, down from 39.1 percent in the previous quarter and down from 39.5 percent in Q4 2017, to a two-year low. The average gross flipping profit of home flips in Q4 2018 was $62,000, which represented an average 41.9 percent return on investment (percentage of original purchase price), down from 42.9 percent last quarter and down from 49.6 percent in Q4 2017, to a seven-year low. The average square footage of homes flipped in Q4 2018 was 1,408, down from 1,412 in the previous quarter to the smallest average square footage on record for the report, going back to Q1 2005. Homes flips completed in Q4 2018 took an average of 175 days, down from 177 days in the previous quarter and down from 178 days in Q4 2017. About ATTOM Data Solutions ATTOM Data Solutions blends property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties multi-sourced from more than 3,000 U.S. counties. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. With more than 29.6 billion rows of transactional-level data and more than 7,200 discrete data attributes, the 9TB ATTOM data warehouse powers real estate transparency for innovators, entrepreneurs, disrupters, developers, marketers, policymakers, and analysts through flexible delivery solutions, including bulk file licenses, APIs and customized reports.
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CoreLogic Reports January Home Prices Increased by 4.4 Percent Year Over Year
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Pending Home Sales Jump 4.6 Percent in January
WASHINGTON (February 27, 2019) – Pending home sales rebounded strongly in January, according to the National Association of Realtors®. All four major regions saw growth last month, including the largest surge in the South. The Pending Home Sales Index, a forward-looking indicator based on contract signings, increased 4.6 percent to 103.2 in January, up from 98.7 in December. Year-over-year contract signings, however, declined 2.3 percent, making this the thirteenth straight month of annual decreases. Lawrence Yun, NAR chief economist, had expected an increase in January home sales. "A change in Federal Reserve policy and the reopening of the government were very beneficial to the market," he said. Of the four major regions, three areas experienced a decline compared to one year ago, while the Northeast enjoyed a slight growth spurt. Yun also said higher rates discouraged many would-be buyers in 2018. "Homebuyers are now returning and taking advantage of lower interest rates, while a boost in inventory is also providing more choices for consumers." Additionally, Yun noted year-over-year increases in active listings from data at realtor.com® to illustrate the potential rise in inventory. Denver-Aurora-Lakewood, Colo., Seattle-Tacoma-Bellevue, Wash., San Diego-Carlsbad, Calif., Los Angeles-Long Beach-Anaheim, and Nashville-Davidson-Murfreesboro-Franklin, Tenn., saw the largest increase in active listings in January compared to a year ago. Yun says positive pending home sales figures in January will likely continue. "Income is rising faster than home prices in many areas and mortgage rates look to remain steady. Furthermore, job creation will help lift home buying." January Pending Home Sales Regional Breakdown In 2019, Yun forecasts for existing-home sales to be around 5.28 million – down 1.1 percent from 2018 (5.34 million). The national median existing-home price this year is expected to increase around 2.2 percent. In 2018, existing sales declined 3.1 percent and prices rose 4.9 percent. The PHSI in the Northeast rose 1.6 percent to 94.0 in January, and is now 7.6 percent above a year ago. In the Midwest, the index rose 2.8 percent to 100.2 in January, 0.3 percent lower than January 2018. Pending home sales in the South jumped 8.9 percent to an index of 119.8 in January, which is 3.1 percent lower than this time last year. The index in the West increased 0.3 percent in January to 87.3 and fell 10.1 percent below a year ago. The National Association of Realtors® is America's largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.
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Inventory Growth Points to Cooler Spring Market
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January's 9% Drop in Real Estate Showing Activity Marks 6th Consecutive Month of Year-Over-Year Declines
Sluggishness portends slower spring showing and sales activity in key markets across U.S. Feb. 21, 2019 – If January is any indication, home sellers are bracing themselves for a tenuous start to 2019, as the first month of the year saw a nine percent drop across the U.S. in year-over-year residential showing activity, according to data from the ShowingTime Showing Index®. In a notable contrast to January 2018, when the 12-month average year-over-year increase in showing traffic nationwide was 7.7 percent, January 2019 saw the 12-month average decline to almost one percent. The decrease in showing activity has been felt throughout the country but most noticeably in the West Region, which experienced an 18.8 percent year-over-year drop last month. The Midwest Region recorded a year-over-year decline of 12.4 percent in January, with the South Region not far behind with a year-over-year drop of 11.5 percent. The Northeast Region saw a more modest drop of 2.4 percent in January. "Showing traffic continues to subside from last year's impressive heights," said ShowingTime Chief Analytics Officer Daniil Cherkasskiy. "In January, we did not see an influx of home shoppers to reverse year-over-year declines in showings, which suggests that we may see slower traffic this spring compared to last year." The ShowingTime Showing Index, the first of its kind in the residential real estate industry, is compiled using data from property showings scheduled across the country on listings using ShowingTime products and services, providing a benchmark to track buyer demand. ShowingTime facilitates more than four million showings each month. Released during the third week every month, the Showing Index tracks the average number of appointments received on active listings during the month. Local MLS indices are also available for select markets and are distributed to MLS and association leadership. To view the full report, visit showingtime.com/showingtime-showing-index/. About ShowingTime ShowingTime is the residential real estate industry's leading showing management and market stats technology provider, with more than 1.2 million active listings subscribed to its services. Its showing products and services simplify the appointment scheduling process for real estate professionals, buyers and sellers, resulting in more showings, more feedback and more efficient sales. Its MarketStats division provides interactive tools and easy-to-read market reports for MLSs, associations, brokers and other real estate companies. ShowingTime products are used in more than 250 MLSs representing over 950,000 real estate professionals across the U.S. and Canada. For more information, contact us at [email protected]
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Introducing Secrets to Success Using Market Analytics
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Existing-Home Sales Drop 1.2 Percent in January
WASHINGTON (February 21, 2019) – Existing-home sales experienced a minor drop for the third consecutive month in January, according to the National Association of Realtors®. Of the four major U.S. regions, only the Northeast saw an uptick in sales activity last month. Total existing-home sales, completed transactions that include single-family homes, townhomes, condominiums and co-ops, decreased 1.2 percent from December to a seasonally adjusted annual rate of 4.94 million in January. Sales are now down 8.5 percent from a year ago (5.40 million in January 2018). Lawrence Yun, NAR's chief economist, says last month's home sales of 4.94 million were the lowest since November 2015, but that he does not expect the numbers to decline further going forward. "Existing home sales in January were weak compared to historical norms; however, they are likely to have reached a cyclical low. Moderating home prices combined with gains in household income will boost housing affordability, bringing more buyers to the market in the coming months." The median existing-home price for all housing types in January was $247,500, up 2.8 percent from January 2018 ($240,800). January's price increase marks the 83rd straight month of year-over-year gains. Yun notes that this median home price growth is the slowest since February 2012, and is cautions that the figures do not yet tell the full story for the month of January. "Lower mortgage rates from December 2018 had little impact on January sales, however, the lower rates will inevitably lead to more home sales." Total housing inventory at the end of January increased to 1.59 million, up from 1.53 million existing homes available for sale in December, and represents an increase from 1.52 million a year ago. Unsold inventory is at a 3.9-month supply at the current sales pace, up from 3.7 months in December and from 3.4 months in January 2018. Properties remained on the market for an average of 49 days in January, up from 46 days in December and 42 days a year ago. Thirty-eight percent of homes sold in January were on the market for less than a month. While total inventory grew (on a year-over-year basis) for the sixth straight month, Yun says the market is still suffering from an inventory shortage. "In particular, the lower end of the market is experiencing a greater shortage, and more home construction is needed," says Yun. "Taking steps to lower construction costs would be a tremendous help. Local zoning ordinances should also be reformed, while the housing permitting process must be expedited; these simple acts would immediately increase homeownership opportunities and boost local economies." Realtor.com®'s Market Hotness Index, measuring time-on-the-market data and listing views per property, revealed that the hottest metro areas in January were Midland, Texas; Chico, California; San Francisco-Oakland-Hayward, California; Fort Wayne, Indiana; and Colorado Springs, Colorado. According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage decreased to 4.46 percent in January from 4.64 percent in December. The average commitment rate for all of 2018 was 4.54 percent. "Decelerated sales and the increases in inventory will work in favor of potential homebuyers, putting them in a better negotiating position heading into the spring months," said NAR President John Smaby, a second-generation Realtor® from Edina, Minnesota and broker at Edina Realty. "On top of that, low-interest rates will bring an additional $80 per month savings compared to the rates of just a few months ago." First-time buyers were responsible for 29 percent of sales in January, down from last month (32 percent), but the same as a year ago. NAR's 2018 Profile of Home Buyers and Sellers – released in late 2018 – revealed that the annual share of first-time buyers was 33 percent. All-cash sales accounted for 23 percent of transactions in January, up from December and a year ago (22 percent in both cases). Individual investors, who account for many cash sales, purchased 16 percent of homes in January, up from 15 percent in December, but down from a year ago (17 percent). Distressed sales – foreclosures and short sales – represented 4 percent of sales in January, up from 2 percent last month and down from 5 percent a year ago. One percent of January sales were short sales. Single-family and Condo/Co-op Sales Single-family home sales sit at a seasonally adjusted annual rate of 4.37 million in January, down from 4.45 million in December and 8.4 percent below the 4.77 million sales pace from a year ago. The median existing single-family home price was $249,400 in January, up 3.1 percent from January 2018. Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 570,000 units in January, up 3.6 percent from last month and down 9.5 percent from a year ago. The median existing condo price was $233,000 in January, which is up 0.1 percent from a year ago. Regional Breakdown January existing-home sales in the Northeast increased 2.9 percent to an annual rate of 700,000, 1.4 percent below a year ago. The median price in the Northeast was $270,000, which is up 0.4 percent from January 2018. the Midwest, existing-home sales fell 2.5 percent from last month to an annual rate of 1.16 million in January, down 7.9 percent overall from a year ago. The median price in the Midwest was $189,700, which is up 1.4 percent from last year. Existing-home sales in the South dropped 1.0 percent to an annual rate of 2.08 million in January, down 8.4 percent from last year. The median price in the South was $214,800, up 2.5 percent from a year ago. Existing-home sales in the West dipped 2.9 percent to an annual rate of 1.00 million in January, 13.8 percent below a year ago. The median price in the West was $374,600, up 2.9 percent from January 2018. The National Association of Realtors® is America's largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.
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Millennials Now Taking on More Mortgages than Any Other Generation
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Redfin Report: Home Price Growth Edged Up Nationally in January While the West Coast Began Seeing Red
Homebuyers are in the strongest position in years as the supply of homes for sale grows at fastest rate since May 2015 SEATTLE, Feb. 19, 2019 -- The housing market started off 2019 with buyers in a much better position than they were a year earlier, according to a report from Redfin, the next-generation real estate brokerage. U.S. home-sale prices increased 2.9 percent in January compared to a year ago, to a median of $285,900 across the metros Redfin tracks. Albeit slight, last month's price jump represents a rebound from December's 1.5 percent increase, the smallest year-over-year price increase recorded since March 2012. "Things are looking good for buyers in 2019. The supply of homes for sale is increasing faster than it has in nearly four years," said Redfin chief economist Daryl Fairweather. "December was a rough month for home sales, but homeowners appear to be undeterred in the new year as more are listing their homes for sale. We predicted price growth would slow down and that prices would drop in coastal cities like San Francisco and Seattle, but we didn't know how sellers would react to a cooler market. It's encouraging to see that listings are up--it means that sellers aren't taking the ball and going home." Home prices fell year over year in 10 of the 81 largest metro areas Redfin tracks, including San Francisco (-5.0%) and Portland, Oregon (-1.3%). This is a major shift for two markets that consistently posted strong price growth throughout most of 2018 and where prices haven't declined significantly since 2012. In Seattle, prices were still growing last month, but barely, up just 0.6 percent year over year, and seem to be following a similar trajectory as their West Coast counterparts. Completed home sales nationally fell for the sixth consecutive month in January, down 7.6 percent from a year earlier. Home sales declined in 57 of the 81 largest metro areas that Redfin tracks. The number of homes newly listed for sale in January rose from a year earlier (+4.4%), helping to push the total number of homes for sale up 6.3 percent, the biggest supply increase since May of 2015. "We expect the supply of homes for sale to increase, giving buyers more homes to buy, but not so many that prices drop broadly," said CEO Glenn Kelman during Redfin's earnings call last week. To read the full report, complete with graphs, charts and market-level data, please click here. About Redfin Redfin is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 85 major metro areas across the U.S. The company has closed more than $60 billion in home sales.
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CoreLogic Reports U.S. Overall Delinquency and Foreclosure Rates Are Lowest for November Since at Least 2000
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Metro Home Prices Jump 4 Percent in 2018's Fourth Quarter
WASHINGTON (February 12, 2019) – Inventory increased and metro market prices rose at a slower pace in the fourth quarter of 2018, according to the latest quarterly report by the National Association of Realtors®. The national median existing single-family home price in the quarter was $257,600, up 4.0 percent from the fourth quarter of 2017 ($247,800). Single-family home prices increased in 92 percent of measured markets last quarter, with 163 out of 178 metropolitan statistical areas (MSAs) showing sales price gains in the fourth quarter compared to a year ago. Fourteen metro areas (8 percent) experienced double-digit increases, down from 18 in the third quarter. Lawrence Yun, NAR chief economist, says in light of the various hurdles for 2018, the close of the fourth quarter was promising. "Home prices continued to rise in the vast majority of markets but with inventory steadily increasing, home prices are, on average, rising at a slower and healthier pace," he said. Total existing-home sales, including single family homes and condos, decreased 1.8 percent to a seasonally adjusted annual rate of 5.180 million in the fourth quarter, down from 5.273 million in the third quarter. That number is 7.4 percent lower than the 5.593 million-pace during the fourth quarter of 2017. Yun said the West Coast needs more homes built. "The West region, where home prices have nearly doubled in six years, is undergoing the biggest shift with the slowest price gain and large buyer pullback." At the end of the fourth quarter, there were 1.55 million existing homes available for sale, 6.2 percent above the 1.46 million homes for sale at the end of the fourth quarter in 2017. The average supply during the fourth quarter was 4.0 months – up from 3.5 months in the fourth quarter of 2017. National family median income rose to $77,392 in the fourth quarter, while overall affordability decreased from a year ago due to higher mortgage rates and home prices. To purchase a single-family home at the national median price, a buyer making a 5 percent down payment would need an income of $62,954, while a 10 percent down payment would require an income of $59,640, and $53,013 would be necessary for a 20 percent down payment. The five most expensive housing markets in the fourth quarter were the San Jose-Sunnyvale-Santa Clara, California metro area, where the median existing single-family price was $1,250,000; San Francisco-Oakland-Hayward, California, $952,400; Urban Honolulu, $812,900; Anaheim-Santa Ana-Irvine, California, $799,000; and San Diego-Carlsbad, $626,000. The five lowest-cost metro areas in the fourth quarter were Decatur, Illinois, $89,300; Youngstown-Warren-Boardman, Ohio, $97,200; Cumberland, Maryland, $109,100; Elmira, New York, $111,400; and Erie, Pennsylvania, $113,300. Metro area condominium and cooperative prices – covering changes in 61 metro areas – showed the national median existing-condo price was $237,900 in the fourth quarter, up 0.3 percent from the fourth quarter of 2017 ($237,100). Seventy-five percent of metro areas showed gains in median condo prices from a year ago. "Housing affordability will be the key to sustained healthy growth in the housing market in the upcoming years. That requires more homebuilding of moderately priced homes," Yun said. "Housing starts fell far short of historically normal levels, with only 9.6 million new housing units added in the past decade; compared to 15 to 16 million that would have been needed to meet our growing population and 20 million new job additions. "Local zoning law changes, expanding construction worker training programs at trade schools and promoting the use of tax breaks for developers in the designated Opportunity Zones will all play an important role in assuring an adequate future supply of housing," Yun said. Regional Breakdown Total existing-home sales in the Northeast sat at an annual rate of 707,000 (up 3.9 percent from last quarter) and are down 5.4 percent from a year ago. The median existing single-family home price in the Northeast was $286,000 in the fourth quarter, up 6.5 percent from a year ago. In the Midwest, existing-home sales fell 0.3 percent in the fourth quarter and are 5.9 percent below a year ago. The median existing single-family home price in the Midwest set at $196,900, a 1.6 percent increase from the fourth quarter of 2017. Existing-home sales in the South declined 2 percent in the fourth quarter and were 5.4 percent lower than the fourth quarter of 2017. The median existing single-family home price in the South was $228,200 in the fourth quarter, 3.3 percent above a year ago. In the West, existing-home sales in the fourth quarter decreased by 6.5 percent and are 13.9 percent below a year ago. The median existing single-family home price in the West increased 1.8 percent year over year to $383,100. The National Association of Realtors® is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.
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Sales of $2 Million-Plus Homes Decline for First Time in 2 Years as Prices Tick Up
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Equity Rich U.S. Properties Increase to New High in 2018
Equity Rich Properties Represent 25.6 Percent of U.S. Properties; Share of Seriously Underwater Properties Drops to 8.8 Percent; Report Includes Home Equity Breakdown by Zip Code IRVINE, Calif. — Feb. 7, 2019 — ATTOM Data Solutions, curator of the nation's premier property database, today released its Year-End 2018 U.S. Home Equity & Underwater Report, which shows that in the fourth quarter of 2018, over 14.5 million U.S. properties were equity rich — where the combined estimated amount of loans secured by the property was 50 percent or less of the property's estimated market value — up by more than 834,000 from a year ago to a new high as far back as data is available, Q4 2013. The 14.5 million equity rich properties in Q4 2018 represented 25.6 percent of all properties with a mortgage, down slightly from 25.7 percent in the previous quarter but up from 25.4 percent in Q4 2017. The report also shows more than 5 million U.S. properties were seriously underwater — where the combined estimated balance of loans secured by the property was at least 25 percent higher than the property's estimated market value, representing 8.8 percent of all U.S. properties with a mortgage. That 8.8 percent share of seriously underwater homes remained unchanged from the previous quarter and down from 9.3 percent in Q4 2017. "With homeowners staying put longer, homeownership equity will most likely continue to strengthen. Those that are seriously underwater may find themselves coming up for air as they continue to pay off excessive legacy mortgages or sell," said Todd Teta, chief product officer with ATTOM Data Solutions. "This report helps to showcase a story of the West coast markets having the highest share of equity rich homeowners versus the South and Midwest markets, who continue to have stubbornly high rates of seriously underwater homeowners." Historical U.S. Underwater & Equity Rich Trends Highest seriously underwater share in Louisiana, Mississippi, Arkansas, Illinois, Iowa States with the highest share of mortgages that were seriously underwater included; Louisiana (20.8 percent); Mississippi (16.9 percent); Arkansas (15.9 percent); Illinois (15.6 percent); and Iowa (15.2 percent). Among 98 metropolitan statistical areas analyzed in the report, those with the highest share of mortgages that were seriously underwater included; Baton Rouge, Louisiana (20.7 percent); Youngstown, Ohio (19.0 percent); New Orleans, Louisiana (19.0 percent); Toledo, Ohio (18.0 percent); and Scranton, Pennsylvania (17.7 percent). 27 zip codes where more than half of all properties are seriously underwater Among 7,590 U.S. zip codes with at least 2,500 properties with mortgages, there were 27 zip codes where more than half of all properties with a mortgage were seriously underwater, including zip codes in the Chicago, Cleveland, Saint Louis, Atlantic City, Detroit and Virginia Beach metropolitan statistical areas. The top five zip codes with the highest share of seriously underwater properties were 08611 in Trenton, New Jersey (70.3 percent seriously underwater); 63137 in Saint Louis, Missouri (64.8 percent); 60426 in Harvey, Illinois (62.3 percent); 38106 in Memphis, Tennessee (60.5 percent); and 61104 in Rockford, Illinois (59.6 percent). Q4 2018 Underwater Properties Heat Map by ZIP Highest equity rich share in California, Hawaii, New York, Washington, Oregon States with the highest share of equity rich properties were California (43.6 percent); Hawaii (39.3 percent); New York (34.2 percent); Washington (34.2 percent); and Oregon (32.9 percent). Among 98 metropolitan statistical areas analyzed in the report, those with the highest share of equity rich properties were San Jose, California (72.0 percent); San Francisco, California (60.7 percent); Los Angeles, California (48.5 percent); Honolulu, Hawaii (40.2 percent); and Oxnard, California (39.2 percent). 7 Out of the top 10 equity rich counties resided in California Among the 1,479 counties with at least 2,500 properties with mortgages, those top 10 counties with the highest percent of equity rich properties resided mainly in California counties. The top five counties with the highest share of equity rich properties were San Mateo, California (75.9 percent); Santa Clara, California (73.0 percent); San Francisco, California (71.4 percent); Pasquotank, North Carolina (65.7 percent); and Alameda, California (62.7 percent). 427 zip codes where more than half of all properties are equity rich Among 7,590 U.S. zip codes with at least 2,500 properties with mortgages, there were 427 zip codes where more than half of all properties with a mortgage were equity rich. The top five zip codes with the highest share of equity rich properties were all in the California Bay area: 94116 in San Francisco (85.0 percent); 94087 in Sunnyvale (84.6 percent equity rich); 94040 in Mountain View (83.5 percent equity rich); 94043 in Mountain View (83.0 percent equity rich); and 95051 in Santa Clara (82.7 percent equity rich). Q4 2018 Equity Rich Properties Heat Map by ZIP About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, APIs, market trends, marketing lists, match & append and more.
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Pending Home Sales Dip 2.2 Percent in December
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Average U.S. Home Seller Profits at 12-Year High of $61,000 in 2018
Median Home Sale Prices Hit an All-Time High at $248,000 in 2018; Homeowners Staying Put Longer as Average Homeownership Tenure Rises to New High IRVINE, Calif. – Jan. 31, 2019 — ATTOM Data Solutions, curator of the nation's premier property database, today released its Year-End 2018 U.S. Home Sales Report, which shows that home sellers in 2018 realized an average home price gain since purchase of $61,000, up from $50,000 last year and up from $39,500 two years ago in 2016 to the highest level since 2006 — a 12-year high. That $61,000 average home seller profit represented an average 32.6 percent return on investment compared to the original purchase price, up from 27.0 percent last year and up from 21.9 percent in 2016 to the highest average home seller ROI since 2006. "While 2018 was the most profitable time to sell a home in more than 12 years, those along the coasts, reaped the most gains. However, those are the same areas where homeowners are staying put longer," said Todd Teta, chief product officer at ATTOM Data Solutions. "The economy is still going strong and home loan rates remain historically low. But there are potential clouds on the horizon. The effects of last year's tax cuts are wearing off as limits on homeowner tax deductions are in place and mortgage rates are ticking up ever so slowly, so this could dampen the potential for home price gains in 2019." Among 217 metropolitan statistical areas with a population greater than 200,000 and sufficient historical data, the highest returns on investment were almost exclusively in western states, with concentrations along areas of the west coast. Those with the highest average home seller ROI were San Jose, California (108.8 percent); San Francisco, California (78.6 percent); Seattle, Washington (70.7 percent); Merced, California (66.4 percent); and Santa Rosa, California (66.1 percent). "Home price growth in the Seattle area has started to soften, something that home buyers have been waiting for, and a trend that we can expect to continue in the coming year," said Matthew Gardner, chief economist at Windermere Real Estate, covering the Seattle market. "Seattle is still benefitting from buyers moving here from more expensive markets, such as California, but the market cannot solely depend on this demographic. My forecast for 2019 is that it will be a year of movement back to balance, which is a very positive thing." Historical U.S. Home Seller Gains San Jose and Las Vegas lead major metros in home price appreciation The U.S. median home price in 2018 was $248,000, up 5.5 percent from 2017 to a new all-time high. Annual home price appreciation in 2018 slowed slightly compared to the 7.1 percent in 2017. Among 127 metropolitan statistical areas with a population of 200,000 or more and sufficient home price data, those with the biggest year-over-year increase in home prices were Mobile, Alabama (up 21 percent); Flint, Michigan (up 19 percent); San Jose, California (up 18.9 percent); Atlantic City, New Jersey (up 16.4 percent) and Las Vegas, Nevada (up 13.5 percent). Along with San Jose and Las Vegas, other major metro areas with a population of at least 1 million with a double-digit percentage increase in home prices in 2018 were Grand Rapids, Michigan (up 10.6 percent); San Francisco, California (up 10.3 percent); Columbus, Ohio (up 10.1 percent); and Atlanta, Georgia (up 10.1 percent). 88 of the 127 metros (69 percent) reached new record home price peaks in 2018, including Los Angeles, Dallas-Fort Worth, Houston, Atlanta, and Boston. Homeownership tenure at new record high nationwide, down in Vallejo, Reno, Tucson Homeowners who sold in the fourth quarter of 2018 had owned their homes an average of 8.30 years, up from 8.13 years in the previous quarter and up from 7.95 years in Q4 2017 to the longest average home seller tenure as far back as data is available, Q1 2000. Average U.S. Homeownership Tenure Counter to the national trend, 16 of the 108 metro areas analyzed in the report posted a year-over-year decrease in average home seller tenure including: Vallejo-Fairfield, California (down 5 percent); Reno, Nevada (down 3 percent); Redding, California (down 2 percent); Panama City, Florida (down 2 percent); Chattanooga, Tennessee (down 2 percent); Eugene, Oregon (down 2 percent); Crestview-Fort Walton Beach, Florida (down 1 percent); Tucson, Arizona (down 1 percent), Punta Gorda, Florida (down less than 1 percent); Manchester-Nashua, New Hampshire (down less than 1 percent); and Truckee, California (down less than 1 percent). Nearly three in 10 home buyers made all-cash purchases in 2018 Nationwide all-cash purchases accounted for 27.8 percent of single-family home and condo sales in 2018, unchanged from 2017 but down from its peak in 2011 at 38.4 percent. However, this is still well above the pre-recession average of 18.7 percent between 2000 and 2007. Among 200 metropolitan statistical areas with a population of at least 200,000 and sufficient cash sales data, those with the highest share of all-cash purchases in 2018 were Montgomery, Alabama (53.6 percent); Naples, Florida (52.5 percent); Macon, Georgia (50.8 percent); Cape Coral-Fort Myers, Florida (45.4 percent); and North Port-Sarasota, Florida (45.4 percent). U.S. distressed sales share drops to 11-year low, up in 8 states Distressed home sales — including bank-owned (REO) sales, third-party foreclosure auction sales, and short sales — accounted for 12.4 percent of all U.S. single family home and condo sales in 2018, down from 14.0 percent in 2017 and down from a peak of 38.6 percent in 2011. Counter to the national trend, the share of distressed sales increased in 2018 in Kansas (up 13 percent); Louisiana (up 13 percent); Wisconsin (up 2 percent); Kentucky (up 2 percent); Maine (up 1 percent); Colorado (up 1 percent); Indiana (up 1 percent); and West Virginia (up 1 percent). Among 209 metropolitan statistical areas with a population of at least 200,000 those with the highest share of distressed sales in 2018 were Atlantic City, New Jersey (37.2 percent); Montgomery, Alabama (25.2 percent); Trenton, New Jersey (23.8 percent); Youngstown, Ohio (23.6 percent); and Rockford, Illinois (22.1 percent). Among 53 metropolitan statistical areas with a population of at least 1 million, those with the highest share of distressed sales in 2018 were Philadelphia, Pennsylvania (20.7 percent); Baltimore, Maryland (19.9 percent); Cleveland, Ohio (19.4 percent); Memphis, Tennessee (19.1 percent); and Providence, Rhode Island (18.3 percent). U.S. Total Distressed Sales Institutional investors dropped for the fifth straight year Institutional investors nationwide accounted for 2.7 percent of all single-family home and condo sales in 2018, down from 3.0 percent in 2017. Among 200 metropolitan statistical areas with a population of at least 200,000 and sufficient institutional investor sales data, those with the highest share of institutional investor sales in 2018 were Montgomery, Alabama (9.6 percent); Memphis, Tennessee (8.1 percent); Columbia, South Carolina (7.6 percent); Birmingham, Alabama (7.1 percent); Atlanta, Georgia (7.0 percent); and Charlotte, North Carolina (6.5 percent). Historical U.S. Home Sales By Type Texas metro areas dominated list with the most FHA sales in 2018 Nationwide buyers using Federal Housing Administration (FHA) loans accounted for 10.6 percent of all single-family home and condo purchases in 2018, down from 13.6 percent in 2017 to the lowest level since 2007. Among 200 metropolitan statistical areas with a population of at least 200,000 and sufficient FHA buyer data, 6 out of the top 10 metro areas with the highest share of FHA sales were in Texas. Those with the highest share of FHA buyers in 2018 were McAllen, Texas (26.3 percent); El Paso, Texas (25.3 percent); Amarillo, Texas (23.0 percent); Beaumont-Port Arthur, Texas (22.7 percent); and Elkhart, Indiana (21.5 percent). About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, APIs, market trends, marketing lists, match & append and more.
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January Housing Data Shows Uptick in Seller Price Cuts
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Number of Homes for Sale Is Up, But Fewer Homes Are Affordable to Middle Class Buyers
Affordability Keeps Many Homes Out of Reach for the Average Homebuyer, Even As Inventory Rises SEATTLE, Jan. 23, 2019 -- Although the supply of homes for sale is up in many markets, both the number and share of homes that are affordable to a typical household has decreased from a year ago, according to a new report from Redfin, the next-generation real estate brokerage. The report considers all homes that were active on the market at any point in 2018 and 2017 and calculates the share of homes in each metro area that were affordable during each year to a household making the median income in that metro area. Just 14 percent of homes that were on the market in 2018 in the San Jose metro area were affordable on the median household income in the area of $117,000. This is a big drop from 2017, when 26 percent of homes that were for sale were affordable. In Los Angeles, 16 percent of homes for sale were affordable in 2018, down from 20 percent in 2017. In Seattle the share of affordable homes for sale dropped from 58 percent in 2017 to 46 percent in 2018. Home price gains and interest rate increases through 2018 combined to considerably reduce home affordability. Although the number of homes for sale is increasing, the number of affordable homes on the market has decreased in most metro areas. "Homeownership is increasingly out of reach for the typical American," said Redfin chief economist Daryl Fairweather. "Over the last few years builders have focused on luxury homes, and there hasn't been enough construction of affordable starter homes." In many metro areas, even as the number of homes for sale has increased, the number of affordable homes for sale has shrunk over the past year. In the San Diego area, there were 10 percent more homes for sale during 2018 than 2017, but the number of affordable homes for sale fell 16 percent. In the Seattle metro, there were 4 percent more homes for sale, but the number of affordable homes for sale fell 17 percent. Although the share of homes for sale that were affordable on a median income fell from 2017 to 2018 in all 49 of the metro areas we analyzed, there were a few metro areas where the number of affordable homes for sale increased, including Hartford, CT (+19%), Jacksonville, FL (+9%) and Nashville, TN (+4%). Homebuyers looking for affordable options still have plenty of choices in metro areas like St. Louis (84%), Minneapolis (82%) and Pittsburgh (82%). Strong growth in jobs and wages may also help buyers make up some lost ground as well. "We expect builders to shift their attention to more affordable homes during 2019," added Fairweather, "which along with rezoning efforts by local governments should reduce this pressure to some degree over time." To read the full report, including a table of the number and share of affordable homes for sale in each major metro area, please click here. About Redfin Redfin is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 85 major metro areas across the U.S. The company has closed more than $60 billion in home sales.
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Existing-Home Sales See 6.4 Percent Drop in December
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Frosty December Real Estate Showing Activity Results in Fifth Consecutive Month of Year-Over-Year Declines Nationwide
Flagging showing numbers point to a potentially favorable 2019 market for would-be homebuyers across the U.S. Jan. 21, 2019 – Home sellers across the country are happy to leave 2018 behind as December marked the fifth consecutive month of year-over-year declines in real estate showing activity nationwide, a 7.2 percent drop, according to data from the ShowingTime Showing Index®. Continuing a nearly year-long span of decreasing demand for available residential real estate, the West Region saw a 20.1 percent drop in showing traffic year-over-year in December. The South Region followed that trend, recording a 10.9 percent decline in activity. The Midwest Region also experienced a decline with a 7.9 percent year-over-year drop, as did the Northeast Region, which had a modest 1.5 percent drop compared to showing activity in December 2017. The news is not all dour, however; as ShowingTime Chief Analytics Officer Daniil Cherkasskiy noted, falling showing activity could make for appealing conditions for prospective buyers in 2019. "Buyer traffic continues to subside across all regions of the U.S. compared to the record numbers recorded at the same time last year," said Cherkasskiy. "In some markets this is happening despite a stabilization of prices, but this is potentially good news for buyers, who are seeing less competition in the market when trying to buy a home." The ShowingTime Showing Index, the first of its kind in the residential real estate industry, is compiled using data from property showings scheduled across the country on listings using ShowingTime products and services, providing a benchmark to track buyer demand. ShowingTime facilitates more than four million showings each month. Released during the third week every month, the Showing Index tracks the average number of appointments received on active listings during the month. Local MLS indices are also available for select markets and are distributed to MLS and association leadership. To view the full report, visit showingtime.com/showingtime-showing-index/. About ShowingTime ShowingTime is the residential real estate industry's leading showing management and market stats technology provider, with more than 1.2 million active listings subscribed to its services. Its showing products and services simplify the appointment scheduling process for real estate professionals, buyers and sellers, resulting in more showings, more feedback and more efficient sales. Its MarketStats division provides interactive tools and easy-to-read market reports for MLSs, associations, brokers and other real estate companies. ShowingTime products are used in more than 250 MLSs representing over 950,000 real estate professionals across the U.S. and Canada. For more information, contact us at [email protected]
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Redfin Ranks the 10 Hottest Affordable Neighborhoods of 2019
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CoreLogic Loan Performance Insights Find Delinquency Rates in October Dropped to the Lowest Level in at Least 18 Years
CoreLogic, a leading global property information, analytics and data-enabled solutions provider, today released its monthly Loan Performance Insights Report. The report shows that, nationally, 4.1 percent of mortgages were in some stage of delinquency (30 days or more past due, including those in foreclosure) in October 2018, representing a 1 percentage point decline in the overall delinquency rate compared with October 2017, when it was 5.1 percent. This was the lowest for the month of October in at least 18 years. As of October 2018, the foreclosure inventory rate – which measures the share of mortgages in some stage of the foreclosure process – was 0.5 percent, down 0.1 percentage point since October 2017. The October 2018 foreclosure inventory rate tied with the April, May, June, July, August and September rates this year as the lowest for any month since September 2006 and also marked the lowest rate for an October since 2005. In both instances, the foreclosure inventory rate was 0.5 percent. Measuring early-stage delinquency rates is important for analyzing the health of the mortgage market. To monitor mortgage performance comprehensively, CoreLogic examines all stages of delinquency, as well as transition rates, which indicate the percentage of mortgages moving from one stage of delinquency to the next. The rate for early-stage delinquencies – defined as 30 to 59 days past due – was 1.9 percent in October 2018, down from 2.3 percent in October 2017. The share of mortgages that were 60 to 89 days past due in October 2018 was 0.7 percent, down from 0.9 percent in October 2017. The serious delinquency rate – defined as 90 days or more past due, including loans in foreclosure – was 1.5 percent in October 2018, down from 1.9 percent in October 2017. This serious delinquency rate was the lowest for an October since 2006 when it was 1.5 percent. It ties August and September 2018 as the lowest for any month since March 2007 when it was also 1.5 percent. Since early-stage delinquencies can be volatile, CoreLogic also analyzes transition rates. The share of mortgages that transitioned from current to 30 days past due was 0.8 percent in October 2018, down from 1.1 percent in October 2017. By comparison, in January 2007, just before the start of the financial crisis, the current-to-30-day transition rate was 1.2 percent, while it peaked in November 2008 at 2 percent. "While the strong economy has helped families stay current and push overall delinquency rates lower, areas that were hit hard by natural disasters have seen a rise in loan defaults," said Dr. Frank Nothaft, chief economist for CoreLogic. "The 30-day delinquency rate in the Panama City, Florida metro area tripled between September and October 2018 as a result of Hurricane Michael. Two months after Hurricane Florence made landfall in the Carolinas, 60-day delinquency rates doubled in the Jacksonville, Wilmington, New Bern and Myrtle Beach metro areas. And buffeted by Kilauea's eruption in the Hawaiian Islands, serious delinquency rates jumped on the Big Island by 9 percent between June and October 2018, while falling by 4 percent in the rest of Hawaii." Hurricane Irma and Hurricane Florence (2017 and 2018, respectively) continue to impact some metropolitan areas, with mortgages transitioning from current to 30 days past due. This October, 18 metropolitan areas posted an annual increase in overall delinquency rate, seven of which were either in North or South Carolina. In the coming months, CoreLogic will continue to monitor these and other metros struck by natural disaster for potential increase in delinquencies. "Despite some regional spikes related to hurricane and fire impacted areas, overall delinquency rates are near or at historic lows," said Frank Martell, president and CEO of CoreLogic. For ongoing housing trends and data, visit the CoreLogic Insights Blog. Methodology The data in this report represents foreclosure and delinquency activity reported through October 2018. The data in this report accounts for only first liens against a property and does not include secondary liens. The delinquency, transition and foreclosure rates are measured only against homes that have an outstanding mortgage. Homes without mortgage liens are not typically subject to foreclosure and are, therefore, excluded from the analysis. Approximately one-third of homes nationally are owned outright and do not have a mortgage. CoreLogic has approximately 85 percent coverage of U.S. foreclosure data. About CoreLogic CoreLogic (NYSE: CLGX) is a leading global property information, analytics and data-enabled solutions provider. The company's combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.
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Housing Market Cooldown Continues as Inventory Increases in December
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CoreLogic Reports November Home Prices Increased by 5.1 Percent Year Over Year
CoreLogic, a leading global property information, analytics and data-enabled solutions provider, today released the CoreLogic Home Price Index (HPI™) and HPI Forecast™ for November 2018, which shows home prices rose both year over year and month over month. Home prices increased nationally by 5.1 percent year over year from November 2017. On a month-over-month basis, prices increased by 0.4 percent in November 2018. (October 2018 data was revised. Revisions with public records data are standard, and to ensure accuracy, CoreLogic incorporates the newly released public data to provide updated results each month.) Looking ahead, the CoreLogic HPI Forecast indicates home prices will increase by 4.8 percent on a year-over-year basis from November 2018 to November 2019. On a month-over-month basis, home prices are expected to decrease by 0.8 percent from November to December 2018. The CoreLogic HPI Forecast is a projection of home prices calculated using the CoreLogic HPI and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state. "The rise in mortgage rates has dampened buyer demand and slowed home-price growth," said Dr. Frank Nothaft, chief economist for CoreLogic. "Interest rates for new 30-year fixed-rate loans averaged 4.9 percent during November, the highest monthly average since February 2011. These higher rates and home prices have reduced buyer affordability. Home sellers are responding by lowering their asking price, which is reflected in the slowing growth of the CoreLogic Home Price Index." According to the CoreLogic Market Condition Indicators (MCI), an analysis of housing values in the country's 100 largest metropolitan areas based on housing stock, 35 percent of metropolitan areas have an overvalued housing market as of November 2018. The MCI analysis categorizes home prices in individual markets as undervalued, at value or overvalued, by comparing home prices to their long-run, sustainable levels, which are supported by local market fundamentals (such as disposable income). Additionally, as of November 2018, 27 percent of the top 100 metropolitan areas were undervalued, and 38 percent were at value. When looking at only the top 50 markets based on housing stock, 44 percent were overvalued, 18 percent were undervalued and 38 percent were at value. The MCI analysis defines an overvalued housing market as one in which home prices are at least 10 percent above the long-term, sustainable level. An undervalued housing market is one in which home prices are at least 10 percent below the sustainable level. In 2018, CoreLogic together with RTi Research of Norwalk, Connecticut, conducted an extensive survey measuring consumer-housing sentiment, combining consumer and property insights. The study assessed attitudes toward homeownership and the driving force behind the decision to buy or rent a home. When homeowners were asked why they felt their home was increasing in value, they cited desirable location and improving local and national economies. As the country enters a new year, the state of these economic conditions will continue to impact attitudes toward homeownership and perceived property values. "A strong economy helps homeowners feel confident about the value of their property," said Frank Martell, president and CEO of CoreLogic. "If recent declines in the stock market shakes consumer confidence in the national economy, we may see homeowners' perception of home value change and a subsequent buyers' market emerge in 2019." The next CoreLogic HPI press release, featuring December 2018 data, will be issued on Tuesday, February 5, 2019 at 8:00 a.m. ET. About The 2018 CoreLogic Consumer Housing Sentiment Study Nationwide survey of 3001 renters and homeowners conducted in first quarter of 2018 by CoreLogic together with RTi Research. The survey has a sampling error of +/- 1.8 percent at the total respondent level with a 95 percent confidence level. About RTi Research RTi Research is an innovative, global market research and brand strategy consultancy headquartered in Norwalk, CT. Founded in 1979, RTi has been consistently recognized by the American Marketing Association as one of the top 50 U.S. insights companies. The company serves a broad base of leading firms in Financial Services, Consumer Goods, and Pharmaceuticals as well as partnering with leading academic centers of excellence. About CoreLogic CoreLogic (NYSE: CLGX) is a leading global property information, analytics and data-enabled solutions provider. The company's combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.
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Housing Inventory Up 5% in November--Fastest Growth in 3 Years--as Sales Decline 8%
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Residential Mortgage Originations Drop 21 Percent in Q3 2018
Dollar Volume of Refinance Originations Falls to 4.5-Year Low; Purchase Originations Down 2 Percent, HELOC Originations Down 11 Percent; Median Down Payment Percent Increases to Nearly 15-Year High IRVINE, Calif. — ATTOM Data Solutions, curator of the nation's premier property database, today released its Q3 2018 U.S. Residential Property Mortgage Origination Report, which shows that 681,455 refinance mortgages secured by residential property (1 to 4 units) were originated in the third quarter, down 15 percent from the previous quarter and down 21 percent from a year ago to the lowest level as far back as data is available — Q1 2000. The refinance mortgages originated in Q3 2018 represented an estimated $175.1 billion in total dollar volume, down 14 percent from the previous quarter and down 21 percent from a year ago to the lowest level since Q1 2014 — a 4.5-year low. "Rising mortgage rates continued to dampen demand for mortgages in the third quarter, particularly refinance mortgages," said Daren Blomquist, senior vice president at ATTOM Data Solutions. "There were some notable exceptions to that trend, primarily in markets affected by the hurricanes in the third quarter of 2017." Refinance originations increase in Houston, Miami, Tampa Residential refinance mortgage originations decreased from a year ago in 197 of the 225 metropolitan statistical areas analyzed in the report (88 percent), including Los Angeles (down 31 percent); New York (down 11 percent); Dallas-Fort Worth (down 5 percent); Phoenix (down 14 percent); and Atlanta (down 33 percent). Counter to the national trend, residential refinance mortgage originations increased from a year ago in 28 of the 225 metro areas analyzed in the report (12 percent), including Houston (up 69 percent); Miami (up 29 percent); Tampa-St. Petersburg (up 33 percent); San Antonio (up 3 percent); and Orlando (up 30 percent). Purchase mortgage originations down 2 percent from year ago Lenders originated 892,760 residential purchase mortgages in Q3 2018, down 5 percent from the previous quarter and down 2 percent from a year ago. Residential purchase mortgage originations decreased from a year ago in 121 of the 225 metropolitan statistical areas analyzed in the report (54 percent), including New York (down 6 percent); Dallas-Fort Worth (down 5 percent); Chicago (down 14 percent); Phoenix (down 2 percent); and Los Angeles (down 14 percent). Counter to the national trend, residential purchase mortgage originations increased from a year ago in 104 of the 225 metro areas analyzed in the report (46 percent), including Atlanta (up 12 percent); Houston (up 3 percent); Miami (up 2 percent); Tampa-St. Petersburg (up 3 percent); and Nashville (up 1 percent). HELOC originations down 11 percent from year ago A total of 313,744 Home Equity Lines of Credit (HELOCs) were originated on residential properties in Q3 2018, down 14 percent from the previous quarter and down 11 percent from a year ago. Residential HELOC mortgage originations decreased from a year ago in 150 of the 225 metropolitan statistical areas analyzed in the report (67 percent), including New York (down 14 percent); Los Angeles (down 18 percent); Seattle (down 3 percent); Chicago (down 27 percent); and Philadelphia (down 16 percent). Counter to the national trend, residential HELOC mortgage originations increased from a year ago in 73 of the 225 metro areas analyzed in the report (32 percent), including Miami (up 4 percent); Tampa-St. Petersburg (up 22 percent); Kansas City (up 20 percent); Orlando (up 3 percent); and Omaha (up 11 percent). Median down payment percentage at nearly 15-year high The median down payment on single family homes and condos purchased with financing in Q3 2018 was $20,250, up 7 percent from the previous quarter and up 16 percent from a year ago to a record high as far back as data is available, Q1 2000. The median down payment as a percentage of the median home sales price in Q3 2018 was 7.6 percent, up from 7.2 percent in the previous quarter and up from 6.8 percent in Q3 2017 to the highest since Q4 2003 — a nearly 15-year high. Among 96 metropolitan statistical areas analyzed in the report for down payments, those with the highest median down payment as a percentage of median home sales price in Q3 2018 were San Jose, California (24.7 percent); San Francisco, California (23.3 percent); Los Angeles, California (20.6 percent); Oxnard-Thousand Oaks-Ventura, California (19.0 percent); and Fort Collins, Colorado (18.6 percent). FHA loan share increases from more than 10-year low in previous quarter Residential loans backed by the Federal Housing Administration (FHA) accounted for 10.5 percent of all residential property loans originated in Q3 2018, up from a more than 10-year low of 10.2 percent in the previous quarter but still down from 12.5 percent a year ago. Residential loans backed by the U.S. Department of Veterans Affairs (VA) accounted for 5.5 percent of all residential property loans originated in Q3 2018, up from 5.4 percent in the previous quarter but still down from 6.6 percent a year ago. About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, APIs, market trends, marketing lists, match & append and more.
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Pending Home Sales See 0.7 Percent Drop in November
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CoreLogic Reports Homeowners with Negative Equity Declines by Only 81,000 in the Third Quarter of 2018
CoreLogic Reports Homeowners with Negative Equity Declines by Only 81,000 in the Third Quarter of 2018 CoreLogic, a leading global property information, analytics and data-enabled solutions provider, today released the Home Equity Report for the third quarter of 2018. The report shows that U.S. homeowners with mortgages (which account for roughly 63 percent of all properties) have seen their equity increase by 9.4 percent year over year, representing a gain of nearly $775.2 billion since the third quarter of 2017. Additionally, the average homeowner gained $12,400 in home equity between the third quarter of 2017 and the third quarter of 2018. While home equity grew in almost every state in the nation, western states experienced the most significant increases. California homeowners gained an average of approximately $36,500 in home equity, and Nevada homeowners experienced an average increase of approximately $32,600 in home equity (Figure 1). From the second quarter of 2018 to the third quarter of 2018, the total number of mortgaged homes in negative equity decreased 4 percent to 2.2 million homes or 4.1 percent of all mortgaged properties. Year over year, the number of mortgaged properties in negative equity fell 16 percent from 2.6 million homes – or 5 percent of all mortgaged properties – in the third quarter of 2018. "On average, homeowners saw their home equity increase again this quarter but not nearly as much as in previous quarters," said Dr. Frank Nothaft, chief economist for CoreLogic. "During the third quarter, homeowners gained an average of $12,400 compared to the second quarter when the average home equity wealth increase was more than $16,000. This lower year-over-year gain reflects the slowing in appreciation we've seen in the CoreLogic Home Price Index." Negative equity, often referred to as being underwater or upside down, applies to borrowers who owe more on their mortgages than their homes are worth. Negative equity can occur because of a decline in a home's value, an increase in mortgage debt or both. Negative equity peaked at 26 percent of mortgaged residential properties in the fourth quarter of 2009, based on the CoreLogic equity data analysis which began in the third quarter of 2009. The national aggregate value of negative equity was approximately $281.6 billion at the end of the third quarter of 2018. This is down quarter over quarter by approximately $1.1 billion, from $280.5 billion in the second quarter of 2018 and down year over year by approximately $2.7 billion, from $279 billion in the third quarter of 2017. "The number of homes in a negative equity position have remained around 2.2 million for two consecutive quarters this year," said Frank Martell, president and CEO of CoreLogic. "Without equity, those homeowners are unable to sell their homes and are more likely to transition from delinquency to foreclosure if they face financial distress." For ongoing housing trends and data, visit the CoreLogic Insights Blog. About CoreLogic CoreLogic (NYSE: CLGX) is a leading global property information, analytics and data-enabled solutions provider. The company's combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.
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Existing-Home Sales Increase for Second Consecutive Month
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U.S. Home Affordability Drops to More Than 10-Year Low in Q4 2018
But Affordability Improves From Previous Quarter in 58 Percent of Local Housing Markets; Wage Growth Outpacing Home Price Growth in 22 Percent of Markets, Including San Diego, Brooklyn, Seattle, San Jose and Manhattan IRVINE, Calif. – Dec. 20, 2018 — ATTOM Data Solutions, curator of the nation's premier property database, today released its Q4 2018 U.S. Home Affordability Report, which shows that the U.S. median home price in the fourth quarter was at the least affordable level since Q3 2008 — a more than 10-year low. The report calculates an affordability index based on percentage of income needed to buy a median-priced home relative to historic averages, with an index above 100 indicating median home prices are more affordable than the historic average, and an index below 100 indicating median home prices are less affordable than the historic average. (See full methodology below.) Nationwide, the Q4 2018 home affordability index of 91 was down from an index of 94 in the previous quarter and an index of 106 in Q4 2017 to the lowest level since Q3 2008, when the index was 87. Among 469 U.S. counties analyzed in the report, 357 (76 percent) posted a Q4 2018 affordability index below 100, meaning homes were less affordable than the long-term affordability averages for the county. That was down from a 10-year high of 78 percent of counties posting an affordability index below 100 in Q3 2018. "While poor home affordability continues to cloud the U.S. housing market, there are silver linings in the local data as home price appreciation falls more in line with wage growth," said Daren Blomquist, senior vice president at ATTOM Data Solutions. "Affordability improved from the previous quarter in more than half of all local markets, and one in five local markets saw annual wage growth outpace annual home price appreciation, including high-priced areas such as San Diego, Brooklyn and Seattle." Q4 2018 Home Price Appreciation & Wage Growth Heat Map Home affordability improves from previous quarter in 58 percent of local markets Counter to the national trend, home affordability improved from the previous quarter in 272 of the 469 counties analyzed in the report (58 percent), including Cook County (Chicago), Illinois; Harris County (Houston), Texas; San Diego County, California; Orange County, California; and Miami-Dade County, Florida. Home affordability worsened compared to the previous quarter in 197 of the 469 counties analyzed in the report (42 percent), including Los Angeles County, California; Maricopa County (Phoenix), Arizona; Riverside County, California; San Bernardino County, California; and Clark County (Las Vegas), Nevada. Wages rising faster than home prices in 22 percent of markets Nationwide the median home sales price in Q4 2018 was $241,250, up 9 percent from a year ago, while the annualized average weekly wage of $56,381 was up 3 percent from a year ago. Annual home price appreciation in Q4 2018 outpaced annual average wage growth in 366 of the 469 counties analyzed in the report (78 percent), including Los Angeles County, California; Cook County (Chicago), Illinois; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; and Orange County, California. Counter to the national trend, annual average wage growth outpaced annual home price appreciation in 103 of the 469 counties analyzed in the report (22 percent), including San Diego County, California; Kings County (Brooklyn), New York; King County (Seattle), Washington; Santa Clara County (San Jose), California; and New York County (Manhattan), New York. Highest share of income needed to buy a home in Brooklyn and Bay Area Nationwide, buying a median-priced home in Q4 2018 would require 35.0 percent of an average wage earner's income, above the historical average of 32.0 percent. Counties with the highest share of wages needed to buy a median priced home in Q4 2018 were Kings County (Brooklyn), New York (128.8 percent); Marin County, California (124.1 percent); Santa Cruz County, California (118.2 percent); Monterey County, California (96.9 percent); and San Luis Obispo County, California (94.4 percent). Counties with the lowest share of wages needed to buy a median-priced home in Q4 2018 were Baltimore City, Maryland (13.1 percent); Bibb County (Macon), Georgia (13.5 percent); Clayton County, Georgia (15.5 percent); Peoria County, Illinois (15.7 percent); and Wayne County (Detroit), Michigan (15.9 percent). Buying a home requires income of $100,000 or more in 15 percent of local markets Buying a median-priced home required more than $100,000 in annual income (assuming 3 percent down and a maximum front-end debt-to-income ratio of 28 percent) in 70 of the 469 counties analyzed in the report, led by New York County (Manhattan), New York ($408,977 to buy); San Francisco County, California ($375,491 to buy); San Mateo County, California ($368,242 to buy); Marin County, California ($315,524 to buy); and Santa Clara County (San Jose), California ($308,178 to buy. About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, APIs, market trends, marketing lists, match & append and more.
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SmartZip Integrates Its Predictive Analytics within Contactually CRM to Enable Real Estate Agents to Find Listing Opportunities within Their Sphere
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Redfin: Bidding Wars Drop to Eight-Year Low, but Many Buyers Still Face Competition
Despite a cooling market, bidding wars remain the norm in California, Boston, and D.C. SEATTLE, Dec. 12, 2018 -- Thirty-two percent of offers written by Redfin agents on behalf of their home-buying customers faced one or more competing bids in November, down from 45 percent a year earlier, according to a new report by Redfin, the next-generation real estate brokerage. This marks an all-time low since the company began tracking data on Redfin offer competition in 2011. Even so, some zip codes in fast-cooling coastal markets are still hotbeds for bidding wars. Topping the list of zip codes where the vast majority of offers Redfin agents wrote from September through November faced competition are 94602 (Oakmore, Glenview and Lincoln Highlands) in Oakland, California, 20009 (U Street Corridor, Adams Morgan, Columbia Heights and Shaw) in Washington, D.C., and 92870 (Placentia) in Orange County, California, all with 85 percent or more of Redfin offers facing competition. Other still-competitive zip codes include 94110 (Mission District) in San Francisco, California; 20904 in Silver Spring, Maryland; 01890 (Winchester), 02476 (Arlington Heights), 02148 (Malden) and 01801 (Woburn) in Boston, Massachusetts; 95630 (Folsom) in Sacramento, California; and 95035 (Milpitas) in San Jose, California, each with 70 percent or more of Redfin offers facing competition from September through November. "There aren't many homes for sale in and around the city of Boston right now," said Redfin agent Luke Welling. "Bidding wars are still the norm in Arlington Heights, Malden, and the Somerville and Cambridge areas. Proximity to Boston and the local universities, coupled with highly rated schools in the surrounding towns make these neighborhoods sought-after destinations for many homebuyers. Buyers still need to make offers well over asking price to win a home." Seattle is one previously hot market now absent from the list above. The only Seattle zip code where more than half of Redfin offers faced competition in the last three months was 98115, which encompasses the Seattle neighborhoods of Maple Leaf, Wedgwood, and View Ridge. During the spring selling season earlier this year three out of four offers in Seattle faced competition. As of November only about one of every five offers in the Seattle area faced competition, the lowest rate of Redfin's largest markets. Here's a list of bidding war rates for each of the largest metro areas Redfin agents serve: Philadelphia was the only metro area where buyers faced significantly more competition in November 2018 than in November 2017. Philadelphia is one of the markets where inventory is shrinking and homes are selling faster and for more money. To read the full report, complete with graphs, charts, and additional metro-level data, visit: https://www.redfin.com/blog/2018/12/bidding-wars-plummet-to-an-eight-year-low. About Redfin Redfin is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $60 billion in home sales.
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Remine Adds Cloud CMA as Alternative Report Generating Tool
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U.S. Home Flips Down 12 Percent in Q3 2018 to 3.5-Year Low
Average Home Flipping Returns Drop to 6.5-Year Low; Share of Flips Sold to FHA Buyers at a More Than 10-Year Low; Share of Home Flips Purchased with Financing Decreases From 10-Year High in Q2 2018 IRVINE, Calif. – Dec. 6, 2018 — ATTOM Data Solutions, curator of the nation's premier property database, today released its Q3 2018 U.S. Home Flipping Report, which shows that a total of 45,901 U.S. single family homes and condos were flipped in the third quarter of 2018, down 12 percent from a year ago to the lowest level since Q1 2015 — a 3.5-year low. Homes flipped in Q3 2018 represented 5.0 percent of all single family home and condo sales during the quarter — down from a 5.2 percent home flipping rate in Q2 2018 and down from a 5.1 percent home flipping rate in Q3 2017 to the lowest level since Q3 2016. "Home flipping acts as a canary in the coal mine for a cooling housing market because the high velocity of transactions provides home flippers with some of the best and most real-time data on how the market is trending," said Daren Blomquist, senior vice president at ATTOM Data Solutions. "We've now seen three consecutive quarters with year-over-year decreases in home flips. The last time that happened was in 2014 following the mortgage rate jump in the second half of 2013, but it's still far from the 11 consecutive quarters with year-over-year decreases in home flips extending from Q2 2006 through Q4 2008 and leading up to the last housing crash." Average home flipping returns drop to 6.5-year low Homes flipped in Q3 2018 sold for an average of $63,000 more than what the home flipper purchased them for, down from an all-time high average gross flipping profit of $68,000 in the first quarter and down from an average gross flipping profit of $65,000 a year ago to the lowest level since Q2 2016. The average gross flipping profit of $63,000 in Q3 2018 represented an average 42.6 percent gross flipping return on investment, down from an average 44.1 percent gross flipping ROI in the previous quarter and down from an average 48.1 percent gross flipping ROI in Q3 2017 to the lowest level since Q1 2012 — a 6.5-year low. Nearly one-third of home flips sold for $100,000 to $200,000 The share of homes flipped that were sold by the home flipper between $100,000 to $200,000 made up 31.6 percent of all flipped sales, while those flip sales that occurred on homes sold for more than $5 million saw the highest gross flipping return on investment (ROI) of any price range. Highest gross flipping returns in Pennsylvania, Ohio and Kentucky States with the highest average gross flipping ROI in Q3 2018 were Pennsylvania (96.7 percent), Ohio (90.4 percent), Kentucky (84.7 percent), Louisiana (82.4 percent), and Michigan (78.6 percent). Among 133 metropolitan statistical areas with at least 50 flips in Q3 2018 and a population of at least 200,000, those with the highest average gross flipping ROI in Q3 2018 were Pittsburgh, Pennsylvania (136.7 percent); Cleveland, Ohio (120.2 percent); Atlantic City, New Jersey (110.3 percent); Scranton, Pennsylvania (109.0 percent); and Philadelphia, Pennsylvania (107.9 percent). Among 1,264 U.S. zip codes analyzed in the report with at least 10 flips during the quarter, those with the highest average gross flipping ROI in Q3 2018 were 33993 in Cape Coral, Florida (881.0 percent); 41091 in Cincinnati, Ohio (631.0 percent); 40356 in Lexington, Kentucky (421.1 percent); and 21216 (410.4 percent) and 21218 (357.1 percent), both in Baltimore, Maryland. Highest home flipping rates in Arizona, Tennessee and Nevada Arizona had the highest home flipping rate among all states in Q3 2018 (7.7 percent), followed by Tennessee (7.5 percent), Nevada (7.2 percent), Alabama (6.6 percent), and Maryland (6.0 percent). Among 133 metropolitan statistical areas with at least 50 flips in Q3 2018 and a population of at least 200,000, those with the highest home flipping rate for the quarter were Memphis, Tennessee (10.4 percent); Atlantic City, New Jersey (9.1 percent); Phoenix, Arizona (8.6 percent); Las Vegas, Nevada (7.8 percent) and Huntsville, Alabama (7.5 percent). Among 1,264 U.S. zip codes analyzed in the report with at least 10 flips during the quarter, those with the highest home flipping rate were 38115 in Memphis, Tennessee (28.1 percent); 33142 in Miami, Florida (27.3 percent); 11717 in Brentwood, New York (27.1 percent); 75224 in Dallas, Texas (26.8 percent); and 11436 in the county of Queens, New York (25.6 percent). Share of flipped homes purchased with financing dips slightly Homes flipped in Q3 2018 that were originally purchased with financing by the home flipper represented 38.8 percent of all homes flipped during the quarter, down from 40.7 percent in the previous quarter and down from 39.2 percent a year ago. States where the percent of flips that were purchased with financing in the third quarter of 2018 that were well above the national average of 38.8 percent included; the District of Columbia (67.2 percent), Colorado (55.7 percent), Minnesota (52.1 percent), New Hampshire (52.0 percent) and Rhode Island (49.2 percent). Among 133 metropolitan statistical areas with at least 50 flips in Q3 2018 and a population of at least 200,000, those with the highest percent of home flip sales purchased with financing in Q3 2018 were Madison, Wisconsin (62.5 percent); Colorado Springs, Colorado (62.2 percent); Cedar Rapids, Iowa (60.4 percent) Manchester, New Hampshire (57.6 percent) and Greeley, Colorado (56.9 percent). Share of flips sold to FHA buyers at a 10-year low Of the homes flipped in Q3 2018, 12.7 percent were sold to buyers using loans backed by the Federal Housing Administration (FHA) — likely first-time homebuyers — down from 16.1 percent in Q3 2017 to a 10-year low. Among 53 metro areas analyzed in the report with at least 1 million people, those with the smallest share of completed flips sold to FHA buyers in Q3 2018 were San Jose, California (1.5 percent); Raleigh, North Carolina (3.8 percent); Las Vegas, Nevada (5.1 percent); San Francisco, California (5.7 percent); and Memphis, Tennessee (5.8 percent). Among the 53 metro areas analyzed in the report with at least 1 million people, those with the highest share of completed flips sold to FHA buyers in Q3 2018 were Riverside, California (24.3 percent); Baltimore, Maryland (23.0 percent); Chicago, Illinois (21.1 percent); Philadelphia, Pennsylvania (20.5 percent); and San Antonio, Texas (20.2 percent). Other high-level report takeaways The median year built of homes flipped in Q3 2018 was 1978, the third consecutive quarter for the oldest median year built as far back as data is available — Q1 2000. The median square footage of homes flipped in Q3 2018 was 1,408, the smallest median square footage as far back as data is available — Q1 2000. A total of 37,905 entities flipped properties in Q3 2018, a ratio of 1.21 flips per entity, the lowest ratio of flips per entity since Q4 2007 — a nearly 11-year low. The average time to complete a home flip was 179 days, down from 185 days in the previous quarter, and down from 180 days in Q3 2017. About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, APIs, market trends, marketing lists, match & append and more.
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CoreLogic Reports October Home Prices Increased by 5.4 Percent Year Over Year
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November housing market is a 'Tale of Two Markets'
Larger metros see price cuts; prices continue to grow in smaller, more affordable areas SANTA CLARA, Calif., Nov. 30, 2018 -- The U.S. housing market showed signs of cooling in many of the nation's largest metros this month with inventory increases outpacing the rest of the country, listing prices slowing and price cuts increasing. In contrast, smaller, more affordable markets continued to see price gains, according to realtor.com®'s November housing report released today. During the month of November, U.S. housing inventory rose 4 percent. However, in the nation's largest and most expensive metros, inventory increased at a more rapid 9 percent. Seven of the 10 markets posting the largest year-over-year inventory increases are located on the West Coast, five of which are in California. "The housing market is a Tale of Two Cities as the divergence widens between high-cost, large urban areas, and smaller, more affordable markets," said Danielle Hale, chief economist for realtor.com. "Buyers in larger metros are seeing more homes on the market and listing prices decline, while those in smaller markets continued to see price increases." Nationally, the percentage of listings that saw price reductions increased to 22 percent in November, up from 19 percent a year ago. The increase is being driven by the nation's largest markets. In fact, 40 of the 45 top markets saw an increase in price reductions. San Jose, Calif., topped the list with the share of price reductions growing by 16 percent, from 17 percent last year to 33 percent in November. It was followed by Indianapolis (+15 percent), Seattle (+12 percent), San Francisco (+9 percent) and San Diego (+9 percent). Small markets propel 9 percent increase in home prices The median U.S. listing price grew 9 percent year-over-year to $293,000 in November, down slightly from October, which is in line with the usual seasonal pattern, but higher than last year's increase of 8 percent. Of the 45 metros, 35 still saw year over year gains in their median listing price, however only 8 markets outpaced the national growth rate of 9 percent. This indicates that although prices are still increasing nationally, the gains are predominantly from smaller markets. Chattanooga, Tenn. (+17%), Spokane, Wash. (+15%), and Greensboro-High Point, N.C. (+14%) are some of the markets that posted the highest year-over-year median list price growth. The steepest declines were felt in San Jose, Calif. and Austin, Texas, which were down 4 percent, or $41,000 and $15,000, respectively. Jacksonville, Fla., Nashville, Tenn., Houston, Tampa, Fla., Dallas, and San Francisco also saw declines. Homes continued to sell at a relatively rapid pace of 71 days on average in November, five days faster than last year. Click here for more information. About realtor.com® Realtor.com®, The Home of Home Search, offers an extensive inventory of for-sale and rental listings, and access to information, tools and professional expertise that help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today is the trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.
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Pending Home Sales Slip 2.6 Percent in October
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Showing Traffic Declines for the First Time in 12 Months in the South Region; Remainder of U.S. Declines for Third Consecutive Month From 2017's Record Numbers
West Region declines year over year for ninth month in a row; Midwest, Northeast also record consecutive-month decreases Nov. 26, 2018, Chicago, IL – Showing activity in the South Region declined for the first time in 12 months when compared to 2017, the West Region recorded its second consecutive month of year-over-year double-digit declines and activity throughout the rest of the U.S. declined for the third month in a row from 2017’s record numbers, according to the ShowingTime Showing Index®. The South Region reported a 3.8 percent decline in October 2018 compared to the same time last year, while the U.S. Index decreased 5.0 percent year-over-year from 2017. October showing activity decreased in the Northeast (-3.0 percent) for the fifth straight month compared to 2017, while the Midwest (-6.5 percent) recorded its third straight month of year-over-year declines. The West Region Index recorded a second consecutive double-digit decline, with showing activity off 14.4 percent compared to the same time last year. It was the ninth consecutive month the region has exhibited year-over-year declines. Rising mortgage rates, which reached a seven-year high according to data from the Federal Home Loan Mortgage Corporation (Freddie Mac), likely contributed to fewer buyers going on showings. The National Association of Home Builders’ affordability index reported a 10-year low, another contributing factor. "This is a continuation of the trend we've been seeing for the U.S. since spring,” ShowingTime Chief Analytics Officer Daniil Cherkasskiy said. “Despite a relatively healthy economy, all regions of the country reported slower buyer traffic when compared to 2017’s record numbers. We’ll be closely tracking showing activity in January and February as an indicator of buyer demand for 2019." The ShowingTime Showing Index, the first of its kind in the residential real estate industry, is compiled using data from property showings scheduled across the country on listings using ShowingTime products and services, which facilitate more than 4 million showings each month. Released on or around the 20th each month, the Showing Index tracks the average number of appointments received on an active listing during the month. Local MLS indices are also available for select markets and are distributed to MLS and association leadership. To view the full report, visit showingtime.com/showingtime-showing-index/. About ShowingTime ShowingTime is the leading showing management and market stats technology provider to the residential real estate industry, with more than 1.2 million active listings subscribed to its services. Its MarketStats division provides interactive tools and market reports for MLSs, associations, brokers, agents and other real estate companies, along with recruiting software that enables brokers to identify top agents. Its showing products take the inefficiencies out of the appointment scheduling process for real estate agents, buyers and sellers. ShowingTime products are used in more than 250 MLSs representing over 950,000 real estate professionals across the U.S. and Canada.
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Existing-Home Sales Increase for the First Time in 6 Months
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Realtors See Increase in Commercial Income and Sales Volume for Second Straight Year
WASHINGTON (November 15, 2018) — Commercial real estate markets are on the rise, with Realtors® specializing in commercial real estate reporting both an increase in members' gross income and sales volume, according to the National Association of Realtors® 2018 Commercial Member Profile. Corresponding to tightened inventory conditions, sales transactions for NAR's commercial members have slowly decreased in the last two years, down from eight in 2016 to seven in 2017. The annual study's results represent Realtors®, members of NAR, who conduct all or part of their business in commercial sales, leasing, brokerage and development for land, office and industrial space, multifamily and retail buildings, as well as property management. "The commercial real estate industry is strong and is on pace with the growing economy. Although there is a slight decrease in transactions, commercial professionals have reported improvements in their markets and business activity for consecutive years. Realtors® reported that sales volume and costs of sales increased this year, as well as median gross annual income," said NAR President John Smaby, a second-generation Realtor® from Edina, Minnesota and broker at Edina Realty. The median gross annual income for commercial members hit an all-time high of $150,700 in 2017, up from $120,900 in 2016. The median sales transaction volume in 2017, among members who had a transaction, was $3,870,500, an increase from the median sales volume of $3,500,000 in 2016. The median dollar value of sales has also steadily risen since 2013 to its peak of $602,500 for all commercial members in 2017, up from $543,500 in 2016. The median gross leasing volume was $705,500 in 2017 for members who had a transaction, an increase from $538,500 in 2016. Brokers and brokers' associates reported the highest annual gross income of $186,900 and $139,700, respectively, while sales agents reported $104,600, an increase from $81,300. Commercial members with less than two years of experience reported a median annual income of $44,000 in 2017, up from $31,500 in 2016; and those with more than 26 years of experience reported a median annual income of $192,600 in 2017, up from $162,200 in 2016. "Commercial real estate professionals are reporting great growth in the past year, which has convinced more and more members to enter the commercial industry. The economy is expanding along with tight labor market have boosted income for Realtors® in the commercial space," said NAR Chief Economist Lawrence Yun. Fifty-one percent of NAR's commercial members worked in sales as their primary service area, followed by 16 percent in leasing and 12 percent in investment. Twenty-nine percent of NAR's commercial members worked with commercial buildings, with 13 percent on multifamily structures, retail, and office space. Forty-nine percent of NAR's commercial members were brokers, 29 percent licensed sales agents, 17 percent broker associates, and five percent were appraisers. The median age of commercial members remained the same as last year, 60, while the median age for NAR's commercial members with two years of experience or less was 46. Thirty percent were female, up from 27 percent in 2017 and 70 percent were male, down from 73 percent in 2017. Seventy-eight percent of commercial members worked at least 40 hours a week. In August 2018, NAR invited a random sample of Realtors® with an interest in commercial real estate to fill complete an on-line survey. A total of 2,324 responses were received for an overall response rate of 3.8 percent. The confidence interval at a 95 percent level of confidence is +/-2.0 percent based on the share of commercial members. All information in this report is representative of member characteristics in 2018, while sales, lease transaction values, and income are characteristic of the 2017 calendar year. The National Association of Realtors® is America's largest trade association, representing 1.3 million members involved in all aspects of the residential and commercial real estate industries.
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Opportunity Zones Offer Favorable Real Estate Investing Options in Amazon HQ2 Markets According to ATTOM Analysis
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Remine Announces Contactually Integration
Contactually users can sync their contacts' information to Remine to uncover property information and predictive analytics. Remine, a real estate Property Intelligence Platform® for agents, has announced a new integration with Contactually, the intelligent CRM for real estate. The integration will allow Contactually users to seamlessly add Remine property and predictive data to their existing network. This allows them to find and develop new opportunities by identifying when a property is most likely to sell and when a buyer is most likely to buy. Remine analyzes property records, transactional history, and consumer data to deliver actionable insights. It connects directly to MLS platforms and is now available to more than 750,000 active real estate agents around the country. "As we worked with agents and brokers, we learned that many were using Contactually," added Jonathan Spinetto, COO of Remine. "With this new integration, we can make it easy for brokers and agents to have the information they need at their fingertips." Contactually's intelligent CRM manages over 220 million relationships and helps real estate agents prioritize and follow up with their leads, clients and referral sources to close more business and develop new leads. In fact, eight of the largest 20 brokerages in real estate are Contactually customers. And among brokerages that provide their agents with Contactually, three out of four use it because stronger connections mean more business—agents have seen up to a 42 percent increase in GCI and more than $3 billion in deals closed using Contactually. "Contactually and Remine share a belief that actionable intelligence is crucial for today's agent," added Zvi Band, CEO of Contactually. "Integrations are part of Contactually's core values as participants in a diversified real estate tech space, and we are excited to share this functionality with our users." Both Remine and Contactually have been named to the HousingWire Tech 100 in 2018 for their innovation and contributions to the real estate industry. Click here to learn more about this integration. About Remine Remine is a real estate Property Intelligence Platform® for Agents that is delivered exclusively through the MLS. The platform analyzes property records, transactional history, and consumer data to deliver actionable insights to Agents through an intuitive map-based user interface. Remine is available to every agent in over 35 MLSs totaling nearly 750,000 members. For more information, visit www.remine.com. About Contactually Contactually provides a SaaS-based intelligent customer relationship management (CRM) platform for real estate agents and brokerages. In simply minutes a day, Contactually's easy-to-use platform enables personal engagement at scale, resulting in more leads, referrals, and increased business. Proudly located in Washington, DC, Contactually employs approximately 70 people and has raised $12 million in capital to date from Grotech Ventures, Rally Ventures, Bull City Venture Partners, Middleland Capital, and others. For more information, please visit us at https://www.contactually.com.
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Redfin Report: These 8 Inland Housing Markets are Heating Up as the Coasts Cool
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Equity Rich U.S. Properties Increase to New High of 14.5 Million in Q3 2018
Equity Rich Properties Represent 25.7 Percent of U.S. Properties; Share of Seriously Underwater Properties Drops to 8.8 Percent; Report Includes Home Equity Breakdown by Zip Code IRVINE, Calif. — Nov. 8, 2018 — ATTOM Data Solutions, curator of the nation's premier property database, today released its Q3 2018 U.S. Home Equity & Underwater Report, which shows that in the third quarter of 2018, nearly 14.5 million U.S. properties were equity rich — where the combined estimated amount of loans secured by the property was 50 percent or less of the property's estimated market value — up by more than 433,000 from a year ago to a new high as far back as data is available, Q4 2013. The 14.5 million equity rich properties in Q3 2018 represented 25.7 percent of all properties with a mortgage, up from 24.9 percent in the previous quarter but down from 26.4 percent in Q3 2017. The report also shows more than 4.9 million U.S. properties were seriously underwater — where the combined estimated balance of loans secured by the property was at least 25 percent higher than the property's estimated market value, representing 8.8 percent of all U.S. properties with a mortgage. That 8.8 percent share of seriously underwater homes was down from 9.3 percent in the previous quarter but still up from 8.7 percent in Q3 2017. "As homeowners stay put longer, they continue to build more equity in their homes despite the recent slowing in rates of home price appreciation," said Daren Blomquist, senior vice president with ATTOM Data Solutions. "West coast markets along with New York have the highest share of equity rich homeowners while markets in the Mississippi Valley and Rust Belt continue to have stubbornly high rates of seriously underwater homeowners when it comes to home equity." Highest seriously underwater share in Louisiana, Mississippi, Iowa, Arkansas, Illinois States with the highest share of seriously underwater properties were Louisiana (21.3 percent); Mississippi (16.2 percent); Iowa (15.5 percent); Arkansas (15.3 percent); and Illinois (15.1 percent). Among 98 metropolitan statistical areas analyzed in the report, those with the highest share of seriously underwater properties were Baton Rouge, Louisiana (20.7 percent); Youngstown, Ohio (18.7 percent); New Orleans, Louisiana (18.6 percent); Scranton, Pennsylvania (18.3 percent); and Toledo, Ohio (17.7 percent). 26 zip codes where more than half of all properties are seriously underwater Among 7,290 U.S. zip codes with at least 2,500 properties with mortgages, there were 26 zip codes where more than half of all properties with a mortgage were seriously underwater, including zip codes in the Detroit, Milwaukee, Saint Louis, Atlantic City and Cleveland metropolitan statistical areas. The top five zip codes with the highest share of seriously underwater properties were 08611 in Trenton, New Jersey (71.0 percent seriously underwater); 63137 in Saint Louis, Missouri (66.5 percent); 60426 in Harvey, Illinois (64.2 percent); 38106 in Memphis, Tennessee (60.7 percent); and 44105 in Cleveland, Ohio (59.2 percent). Highest equity rich share in California, Hawaii, Washington, New York, Oregon States with the highest share of equity rich properties were California (42.5 percent); Hawaii (39.4 percent); Washington (35.3 percent); New York (34.9 percent); and Oregon (33.6 percent). Among 98 metropolitan statistical areas analyzed in the report, those with the highest share of equity rich properties were San Jose, California (73.9 percent); San Francisco, California (59.8 percent); Los Angeles, California (47.6 percent); Seattle, Washington (41.2 percent); and Honolulu, Hawaii (40.8 percent). 417 zip codes where more than half of all properties are equity rich Among 7,290 U.S. zip codes with at least 2,500 properties with mortgages, there were 417 zip codes where more than half of all properties with a mortgage were equity rich. The top five zip codes with the highest share of equity rich properties were all in the California Bay area: 94087 in Sunnyvale (87.1 percent equity rich); 94085 in Sunnyvale (86.7 percent equity rich); 94086 in Sunnyvale (86.7 percent equity rich); 94063 in Redwood City (85.9 percent equity rich); and 95130 in San Jose (85.7 percent equity rich). About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, APIs, market trends, marketing lists, match & append and more.
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CoreLogic Reports September Home Prices Increased by 5.6 Percent Year Over Year
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Existing-Home Sales Decline Across the Country in September
WASHINGTON (October 19, 2018) – Existing-home sales declined in September after a month of stagnation in August, according to the National Association of Realtors®. All four major regions saw no gain in sales activity last month. Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, fell 3.4 percent from August to a seasonally adjusted rate of 5.15 million in September. Sales are now down 4.1 percent from a year ago (5.37 million in September 2017). Lawrence Yun, NAR chief economist, says rising interest rates have led to a decline in sales across all regions of the country. "This is the lowest existing home sales level since November 2015," he said. "A decade's high mortgage rates are preventing consumers from making quick decisions on home purchases. All the while, affordable home listings remain low, continuing to spur underperforming sales activity across the country." The median existing-home price for all housing types in September was $258,100, up 4.2 percent from September 2017 ($247,600). September's price increase marks the 79th straight month of year-over-year gains. Total housing inventory at the end of September decreased from 1.91 million in August to 1.88 million existing homes available for sale, and is up from 1.86 million a year ago. Unsold inventory is at a 4.4-month supply at the current sales pace, up from 4.3 last month and 4.2 months a year ago. Properties typically stayed on the market for 32 days in September, up from 29 days in August but down from 34 days a year ago. Forty-seven percent of homes sold in September were on the market for less than a month. "There is a clear shift in the market with another month of rising inventory on a year over year basis, though seasonal factors are leading to a third straight month of declining inventory," said Yun. "Homes will take a bit longer to sell compared to the super-heated fast pace seen earlier this year." Realtor.com®'s Market Hotness Index, measuring time-on-the-market data and listings views per property, revealed that the hottest metro areas in September were Midland, Texas; Fort Wayne, Ind.; Odessa, Texas; Boston-Cambridge-Newton, Mass.; and Columbus, Ohio. According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage increased to 4.63 percent in September from 4.55 percent in August. The average commitment rate for all of 2017 was 3.99 percent. "Rising interests rates coupled with increasing home prices are keeping first-time buyers out of the market, but consistent job gains could allow more Americans to enter the market with a steady and measurable rise in inventory," says Yun. First-time buyers were responsible for 32 percent of sales in September, up from last month (31 percent) and a year ago (29 percent). NAR's 2017 Profile of Home Buyers and Sellers – released in late 2017 – revealed that the annual share of first-time buyers was 34 percent. "Despite small month over month increases, the share of first-time buyers in the market continues to underwhelm because there are simply not enough listings in their price range," said NAR President Elizabeth Mendenhall, a sixth-generation Realtor® from Columbia, Missouri and CEO of RE/MAX Boone Realty. "Entry-level homes remain highly sought after, as prospective buyers are advised to contact a Realtor® as early in the buying process as possible in order to ensure buyers can act fast on listings that catch their eye." All-cash sales accounted for 21 percent of transactions in September, up from August and a year ago (both 20 percent). Individual investors, who account for many cash sales, purchased 13 percent of homes in September, unchanged from August and down from 15 percent a year ago. Distressed sales – foreclosures and short sales – were 3 percent of sales in September (the lowest since NAR began tracking in October 2008), unchanged from last month and down from 4 percent a year ago. Two percent of September sales were foreclosures and 1 percent were short sales. Single-family and Condo/Co-op Sales Single-family home sales were at a seasonally adjusted annual rate of 4.58 million in September, down from 4.74 million in August, and are 4.0 percent below the 4.77 million sales pace from a year ago. The median existing single-family home price was $260,500 in September, up 4.6 percent from September 2017. Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 570,000 units in September, down 3.4 percent from last month and 5.0 percent from a year ago. The median existing condo price was $239,200 in September, which is up 1.5 percent from a year ago. Regional Breakdown September existing-home sales in the Northeast decreased 2.9 percent to an annual rate of 680,000, 5.6 percent below a year ago. The median price in the Northeast was $286,200, which is up 4.1 percent from September 2017. In the Midwest, existing-home sales remained the same as last month at an annual rate of 1.28 million in September, but are still down 1.5 percent from a year ago. The median price in the Midwest was $200,200, up 1.9 percent from last year. Existing-home sales in the South decreased 5.4 percent to an annual rate of 2.11 million in September, down from 2.12 million a year ago. The median price in the South was $223,900, up 3.0 percent from a year ago. Existing-home sales in the West fell 3.6 percent to an annual rate of 1.08 million in September, 12.2 percent below a year ago. The median price in the West was $388,500, up 4.1 percent from September 2017. The National Association of Realtors® is America's largest trade association, representing 1.3 million members involved in all aspects of the residential and commercial real estate industries.
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Housing Inventory Crunch Finally Subsides as Supply Posts First Annual Gain in Nearly Three Years
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Q3 2018 Foreclosure Activity Down 8 Percent From Year Ago to Lowest Level Since Q4 2005
Average Time to Foreclose Drops to Two-Year Low; Foreclosure Starts Up From Year Ago in 36 Percent of Local Markets; FHA Foreclosure Rates for 2014 and 2015 Vintages Above Long-Term Average IRVINE, Calif. – Oct. 11, 2018 — ATTOM Data Solutions, curator of the nation's premier property database, today released its Q3 2018 U.S. Foreclosure Market Report™, which shows a total of 177,146 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — in the third quarter, down 6 percent from the previous quarter and down 8 percent from a year ago to the lowest level since Q4 2005 — a nearly 13-year low. U.S. foreclosure activity in Q3 2018 was 36 percent below the pre-recession average of 278,912 properties with foreclosure filings per quarter between Q1 2006 and Q3 2007 — the eighth consecutive quarter where U.S. foreclosure activity has registered below the pre-recession average. "A decade after poorly underwritten mortgages triggered a housing market crash, it's clear that the foreclosure risk associated with those problem mortgages has faded — average foreclosure timelines have dropped to a two-year low, and the share of foreclosures tied to 2004-to-2008 loans has dropped well below 50 percent," said Daren Blomquist, senior vice president at ATTOM Data Solutions. "The biggest foreclosure risk in today's housing market comes from natural disaster events such as the twin hurricanes of a year ago. Foreclosure starts spiked in the third quarter in many local markets impacted by those hurricanes. Secondarily, we are seeing relatively modest — but more widespread — foreclosure risk associated with FHA loans originated in 2014 and 2015." Foreclosure starts down nationwide, up in 36 percent of local markets Lenders started the foreclosure process on 91,849 U.S. properties in Q3 2018, down 6 percent from the previous quarter and down 3 percent from a year ago — the 13th consecutive quarter with a year-over-year decrease in foreclosure starts. Counter to the national trend, 15 states posted year-over-year increases in foreclosure starts in Q3 2018, including Florida (up 25 percent); Texas (up 3 percent); Maryland (up 13 percent); Michigan (up 32 percent); and Missouri (up 10 percent). Also counter to the national trend, 79 of 219 metropolitan statistical areas analyzed in the report (36 percent) posted a year-over-year increase in foreclosure starts in Q3 2018, including Los Angeles, California (up 2 percent); Houston, Texas (up 51 percent); Washington, D.C. (up 2 percent); Miami, Florida (up 29 percent); and Detroit, Michigan (up 65 percent). Other markets with at least 1 million people and a year-over-year increase of at least 15 percent in foreclosure starts in Q3 2018 were Minneapolis-St. Paul, Minnesota; Tampa-St. Petersburg, Florida; St. Louis, Missouri; Orlando, Florida; Las Vegas, Nevada; Austin, Texas, Milwaukee, Wisconsin; Jacksonville, Florida; and Grand Rapids, Wyoming. FHA foreclosure rates for 2014 and 2015 vintages above long-term average FHA foreclosure rates for 2014 and 2015 loan vintages registered above the long-term average foreclosure rate for FHA loans, the only two post-recession vintages (2010 and later) above the long-term average. FHA loans originated in 2014 had the highest foreclosure rate of any post-recession loan vintage nationwide, as well as in 31 states and in 63 of 115 metropolitan statistical areas analyzed (55 percent), including New York, Chicago, Dallas-Fort Worth, Philadelphia and Houston. FHA loans originated in 2015 had the highest foreclosure rate of any post-recession loan vintage in 10 states and in 21 of 115 metropolitan statistical areas analyzed (18 percent), including Atlanta, Miami, San Antonio, Oklahoma City and Memphis. Highest foreclosure rates in New Jersey, Delaware, Maryland Nationwide one in every 757 properties had a foreclosure filing in Q3 2018. States with the highest foreclosure rates in Q3 2018 were New Jersey (one in every 267 housing units with a foreclosure filing); Delaware (one in every 315); Maryland (one in every 379); Florida (one in every 449); and Nevada (one in every 472). Among 219 metropolitan statistical areas analyzed in the report, those with the highest foreclosure rates in Q3 2018 were Atlantic City, New Jersey (one in every 152 housing units with a foreclosure filing); Trenton, New Jersey (one in every 236); Fayetteville, North Carolina (one in every 253); Peoria, Illinois (one in every 299); and Philadelphia, Pennsylvania (one in every 326). Bank repossessions drop to record low nationwide, up in 17 states Lenders repossessed 51,459 U.S. properties through foreclosure (REO) in Q3 2018, down 24 percent from the previous quarter and down 8 percent from a year ago to the lowest level since ATTOM began tracking in Q2 2005. Counter to the national trend, the District of Columbia and 17 states posted year-over-year increases in REO activity in Q3 2018, including New Jersey (up 4 percent); Texas (up 21 percent); New York (up 3 percent); Georgia (up 56 percent); and Missouri (up 27 percent). Average time to foreclose drops to two-year low Properties foreclosed in Q3 2018 had been in the foreclosure process an average of 713 days, down from 720 days in the previous quarter and down from 899 days in Q3 2017 to the lowest level since Q2 2016 — a two-year low. States with the longest average foreclosure timelines for homes foreclosed in Q3 2018 were Hawaii (1,491 days); Indiana (1,295 days); Florida (1,177 days); Utah (1,170 days); New Jersey (1,137 days); and New York (1,092 days). States with the shortest average foreclosure timelines for homes foreclosed in Q3 2018 were Virginia (179 days); Mississippi (209 days); New Hampshire (216 days); Alaska (237 days); and Nebraska (240 days). About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, APIs, market trends, marketing lists, match & append and more.
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New Veros VeroFORECAST Projects 7 of 10 Top-Appreciating Markets Will Be in Washington and Nevada Over Next 12 months
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CoreLogic Reports August Home Prices Increased by 5.5 Percent Year Over Year, Homeowners Expect Sale of Current Home to Fund Downpayment for Next Purchase
CoreLogic, a leading global property information, analytics and data-enabled solutions provider, today released the CoreLogic Home Price Index (HPI™) and HPI Forecast™ for August 2018, which shows home prices rose both year over year and month over month. Home prices increased nationally by 5.5 percent year over year from August 2017. On a month-over-month basis, prices increased by 0.1 percent in August 2018. (July 2018 data was revised. Revisions with public records data are standard, and to ensure accuracy, CoreLogic incorporates the newly released public data to provide updated results each month.) Looking ahead, the CoreLogic HPI Forecast indicates that the national home-price index is projected to continue to increase by 4.7 percent on a year-over-year basis from August 2018 to August 2019. On a month-over-month basis, home prices are expected to decrease by 0.4 percent from August to September 2018. The CoreLogic HPI Forecast is a projection of home prices calculated using the CoreLogic HPI and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state. "The rise in mortgage rates this summer to their highest level in seven years has made it more difficult for potential buyers to afford a home," said Dr. Frank Nothaft, chief economist for CoreLogic. "The slackening in demand is reflected in the slowing of national appreciation, as illustrated in the CoreLogic Home Price Index. National appreciation in August was the slowest in nearly two years, and we expect appreciation to slow further in the coming year." According to the CoreLogic Market Condition Indicators (MCI), an analysis of housing values in the country's 100 largest metropolitan areas based on housing stock, 38 percent of metropolitan areas have an overvalued housing market as of August 2018. The MCI analysis categorizes home prices in individual markets as undervalued, at value or overvalued, by comparing home prices to their long-run, sustainable levels, which are supported by local market fundamentals (such as disposable income). Additionally, as of August 2018, 18 percent of the top 100 metropolitan areas were undervalued, and 44 percent were at value. When looking at only the top 50 markets based on housing stock, 46 percent were overvalued, 12 percent were undervalued and 42 percent were at value. The MCI analysis defines an overvalued housing market as one in which home prices are at least 10 percent higher than the long-term, sustainable level. An undervalued housing market is one in which home prices are at least 10 percent below the sustainable level. In 2018, CoreLogic together with RTi Research of Norwalk, Connecticut, conducted an extensive consumer housing sentiment study, combining consumer and property insights. The study assessed attitudes toward homeownership and the drivers of the home buying or renting decision process. August data indicates that, while home prices are cooling, they are still rising in most markets. Home sales are down in some metros, in part because sellers believe prices will continue to rise and that by waiting, they can sell their homes for a better price. Many intend to use proceeds from the sale of their current home to fund the downpayment of their next home. Sixty-six percent of homeowners who are considering buying in the next 10 years will need to sell their current homes to finance their next one. Meanwhile, 35 percent of recent homebuyers said they used funds from the sale of their previous home to finance the downpayment of their current home. "In some markets, homebuyers and sellers are remaining cautious and taking a pause as price appreciation continues to rise," said Frank Martell, president and CEO of CoreLogic. "By waiting to sell, homeowners believe they will get the greatest return on their investment; the more money they have for a downpayment, the easier the purchase payments will be for their next home." About The 2018 CoreLogic Consumer Housing Sentiment Study Nationwide survey of 3001 renters and homeowners conducted in first quarter of 2018 by CoreLogic together with RTi Research. The survey has a sampling error of +/- 1.8 percent at the total respondent level with a 95 percent confidence level. About RTi Research RTi Research is an innovative, global market research and brand strategy consultancy headquartered in Norwalk, CT. Founded in 1979, RTi has been consistently recognized by the American Marketing Association as one of the top 50 U.S. insights companies. The company serves a broad base of leading firms in Financial Services, Consumer Goods, and Pharmaceuticals as well as partnering with leading academic centers of excellence. About CoreLogic CoreLogic (NYSE: CLGX) is a leading global property information, analytics and data-enabled solutions provider. The company's combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.
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U.S. Home Affordability Drops to Lowest Level in 10 Years
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Pending Home Sales Dip 1.8 Percent in August
WASHINGTON (September 27, 2018) – Pending home sales fell slightly in August and have now decreased on an annual basis for eight straight months, according to the National Association of Realtors®. The Pending Home Sales Index, a forward-looking indicator based on contract signings, decreased 1.8 percent to 104.2 in August from 106.1 in July. With last month's decline, contract signings are now down 2.3 percent year-over-year. Lawrence Yun, NAR chief economist, says that low inventory continues to contribute to the housing market slowdown. "Pending home sales continued a slow drip downward, with the fourth month over month decline in the past five months," he said. "Contract signings also fell backward again last month, as declines in the West negatively impacted overall activity," he said. "The greatest decline occurred in the West region where prices have shot up significantly, which clearly indicates that affordability is hindering buyers and those affordability issues come from lack of inventory, particularly in moderate price points." According to the third quarter Housing Opportunities and Market Experience (HOME) survey, a record high number of Americans believe now is a good time to sell. "Just a couple of years ago about 55 percent of consumers indicated it was a good time to sell; that figure has climbed close to 77 percent today." Added Yun, "With prices having risen so quickly, many consumers were deciding to wait to list their homes hoping to see additional price and equity gains. However, with indications that buyers are beginning to pull out, price gains are going to decelerate and potential sellers are considering that now is a good time to list and bring more properties to the market." Yun pointed to year-over-year increases in active listings from data at realtor.com® to illustrate a potential rise in inventory. Columbus, Ohio, Seattle-Tacoma-Bellevue, Wash., San Diego-Carlsbad, Calif., Providence-Warwick, RI-Mass. and Nashville, Tenn. saw the largest increase in active listings in August compared to a year ago. When it comes to rising mortgage rates, Yun believes that while rising rates are always a deterrent to potential buyers, it should not lead to a significant decline. "We have two opposing factors affecting the market: the negative impact of rising mortgage rates and the positive impact of continued job creation. This should lead to future homes sales staying fairly neutral," said Yun. "As long as there is job growth, rising mortgage rates will hinder some buyers; but job creation means second or third incomes being added to households which gives consumers the financial confidence to go out and make a home purchase." Yun expects existing-home sales this year to decrease 1.6 percent to 5.46 million, and the national median existing-home price to increase 4.8 percent. Looking ahead to next year, existing sales are forecast to rise 2 percent and home prices around 3.5 percent. August Pending Home Sales Regional Breakdown The PHSI in the Northeast dropped 1.3 percent to 92.7 in August, and is now 1.6 percent below a year ago. In the Midwest, the index slid back 0.5 percent to 101.6 in August and is also 1.1 percent lower than August 2017. Pending home sales in the South dipped 0.7 percent to an index of 121.3 in August, however, that number is 1.3 percent higher than a year ago. The index in the West decreased 5.9 percent in August to 89.1 and plummeted 11.3 percent below a year ago. The National Association of Realtors® is America's largest trade association, representing 1.3 million members involved in all aspects of the residential and commercial real estate industries.
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Millennial Homebuyers Are Driving Realtor.com's 2018 Hottest ZIP Codes in America Report
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Redfin Report: More than 1 in 4 Home Sellers Dropped their Price Last Month
Share of homes with price drops reached a record-high in September SEATTLE, Sept. 20, 2018 -- Signs continue to point toward a changing market that's letting homebuyers be more selective as supply constraints begin to ease in the hottest markets, according to Redfin, the next-generation real estate brokerage. As a result, sellers are feeling compelled to adjust their expectations — and their prices. In the four weeks ending on September 16, 26.6 percent of homes listed for sale had a price drop, the highest level on record since Redfin began tracking this metric in 2010. We define a price drop as a listing price reduction of more than 1 percent and less than 50 percent. "After years of strong price growth and intense competition for homes, buyers are taking advantage of the market's easing pressure by being selective about which homes to offer on and how high to bid," said Taylor Marr, Redfin senior economist. "But there are some early signs of a softening market, and the increase in price drops may be another indicator that sellers are going to have trouble getting the prices, and the bidding wars, that they may have just months ago. Instead, many are finding their homes are sitting on the market without much interest until they start reducing their prices." According to a Redfin analysis of all homes actively listed on the MLS for sale in the markets where Redfin operates during the four weeks ended September 16: The share of home-sellers who dropped their price increased 4.8 percentage points from the same period a year earlier, when 21.7% of homes had a price drop. The share of homes with price drops has been posting year-over-year gains consistently since late March. Las Vegas (+12.3 points to 28.1%), San Jose (+10.7 pts to 25.7%), Seattle (+10.1 pts to 37.1%), and Atlanta (+9.0 pts to 27.9%) were among the markets that posted the biggest year-over-year increases in the share of homes with price drops. The Redfin Housing Demand Index — a monthly indicator of homebuyer demand that was flat for the third consecutive month in July — also suggests easing inventory is giving buyers more room to carefully consider their purchases. "In a market where we're seeing more inventory, sellers may choose to use price reductions to continue to generate interest in their home for sale," said Jessie Culbert, a Redfin agent who works with sellers in Seattle. "Ultimately, the market dictates the appropriate price for any given home. We use data and on-the-ground insight to recommend the initial price, but sometimes we just need more exposure to the market, or more time to hear feedback, and then we'll work with our clients to adjust the price accordingly." To read the full report, complete with additional data and charts, please click here. About Redfin Redfin is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $60 billion in home sales.
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Existing-Home Sales Remain Flat Nationally, Mixed Results Regionally
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CoreLogic Reports Strong Economy Boosts Homeowner Equity by About $1 Trillion in the Second Quarter of 2018
CoreLogic, a leading global property information, analytics and data-enabled solutions provider, today released the Home Equity Report for the second quarter of 2018. The report shows that U.S. homeowners with mortgages (which account for roughly 63 percent of all properties) have seen their equity increase by 12.3 percent year over year, representing a gain of nearly $981 billion since the second quarter of 2017. Additionally, the average homeowner gained $16,200 in home equity between the second quarter of 2017 and the second quarter of 2018. While home equity grew in almost every state in the nation, western states experienced the most significant increases. California homeowners gained an average of approximately $48,800 in home equity, and Washington homeowners experienced an average increase of approximately $41,100 in home equity (Figure 1). From the first quarter of 2018 to the second quarter of 2018, the total number of mortgaged homes in negative equity decreased 9 percent to 2.2 million homes or 4.3 percent of all mortgaged properties. Year over year, the number of mortgaged properties in negative equity fell 20.1 percent from 2.8 million homes – or 5.4 percent of all mortgaged properties – in the second quarter of 2018. "Homeowner properties continued to increase in value this quarter with homeowners gaining an average of $16,200 in home equity wealth," said Dr. Frank Nothaft, chief economist for CoreLogic. "When aggregated across all homeowners that totals almost $1 trillion in gains in home equity wealth. This wealth gain will support additional consumption spending and home improvement expenditures in coming years." Negative equity, often referred to as being underwater or upside down, applies to borrowers who owe more on their mortgages than their homes are worth. Negative equity can occur because of a decline in a home's value, an increase in mortgage debt or both. Negative equity peaked at 26 percent of mortgaged residential properties in the fourth quarter of 2009, based on the CoreLogic equity data analysis which began in the third quarter of 2009. The national aggregate value of negative equity was approximately $279.8 billion at the end of the second quarter of 2018. This is down quarter over quarter by approximately $5.5 million, from $285.3 billion in the first quarter of 2018. "Negative equity levels continue to drop across the US with the biggest declines in areas with strong price appreciation," said Frank Martell, president and CEO of CoreLogic. "Further, the relatively low level of shadow inventory contributes to the chronic shortage of housing supply and price increases in many markets." For ongoing housing trends and data, visit the CoreLogic Insights Blog. About CoreLogic CoreLogic (NYSE: CLGX) is a leading global property information, analytics and data-enabled solutions provider. The company's combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.
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Luxury Market Picks Up Speed
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Migration to Low-Tax Metros is Accelerating as More People Looked to Leave Expensive Coastal Areas in the Second Quarter
Taxes are three-times lower in the top-10 migration destinations than in the 10 places people are most commonly leaving SEATTLE, Sept. 12, 2018 -- In the second quarter of 2018 people in expensive, high-tax coastal markets including San Francisco, New York, Los Angeles and Washington, D.C. searched for homes in metros like Phoenix, Las Vegas and Miami, where taxes are lower and housing is more affordable. This is according to the latest Migration Report by Redfin, the next-generation real estate brokerage. The analysis is based on a sample of more than 1 million Redfin.com users who searched for homes across 80 metro areas from April to June. Nationally, 24 percent of Redfin.com home searchers looked to move to another metro area in the second quarter, compared to 21 percent during the same period last year. According to Census survey data, housing-related reasons are the primary reason households relocate to another county, which in today's market typically means affordability. "With home prices reaching new heights in many metro areas, it's no surprise people are continuing to move away from expensive metros in search of homeownership," said Taylor Marr, Redfin senior economist. "Last year's tax reform poured fuel on the fire. By capping mortgage interest and state and local tax deductions, there is an even greater incentive for homebuyers to consider moving to a lower-tax state." The average local tax burden—a relative measure of a county's average sales, income, and property tax rates—was three-times lower in the top-10 migration destinations than in the 10 places people were most commonly leaving last quarter. While taxes have long been part of the equation of where to live, tax reform passed in late 2017 has further heightened this consideration for homebuyers. According to a Redfin-commissioned survey in May 2018, which included responses from 1,300 people who had bought a home in the past year: 8% of people said they shifted their search to a state with lower taxes due to the new tax law. 9% said they shifted their search to nearby cities with lower taxes. 10% said they bought a less expensive home because of the decreased benefits on high-priced homes. 10% bought a more expensive home because their after-tax income grew. "Now that homeowners and prospective buyers have had some time to understand how the new tax laws are affecting their finances, we are starting to see an impact on migration trends," said Marr. Moving Out – Metros with the Highest Net Outflow of Redfin Users San Francisco, New York, Los Angeles, Washington, D.C. and Chicago posted the highest net outflows in the second quarter. Net outflow is defined as the number of people looking to leave the metro minus the number of people looking to move to the metro. A net outflow means there are more people looking to leave than people looking to move in, while a net inflow means more people are looking to move in than leave. These metros have consistently ranked as the highest net outflow metro areas since Redfin began tracking quarterly migration in early 2017. These trends appear to be accelerating as the share of residents looking to leave is rising. Of all Bay Area residents using Redfin, 22 percent were searching for homes in another metro, up from 19 percent during the same time period a year earlier. Of New Yorkers, 36 percent looked to leave compared to 35 percent last year. Of Los Angelenos, 16 percent looked to leave, compared to 15 percent last year. Denver: Reaching its Peak Last quarter, we hypothesized that Denver had reached its peak in terms of migration, noting that the metro posted a net outflow of Redfin users for the first time. That trend continued in the second quarter. Of all Denverites using Redfin, 23 percent were searching for homes in another metro, up from 18 percent during the same time period a year earlier. Among the Denverites who were searching elsewhere, approximately 20 percent were looking at more affordable metros within the state: Colorado Springs and Fort Collins. The median list price in Colorado Springs and Fort Collins was $305,000 and $401,000 respectively, compared to Denver's median list price of $406,000 in July. Seattle: One to Watch Seattle is an interesting case. In the first three quarters of 2017, Seattle drew new residents. In Q4 2017 and Q1 2018 that trend reversed and Seattle joined the list of metro areas with more people looking to leave than move in. In the second quarter, Seattle reversed course again with a net inflow of residents. The fact that Seattle residents don't pay state income taxes may be one reason Seattle had a net inflow, despite its staggering home price growth, up 58 percent in the past five years. Another reason is the thriving tech sector, with Amazon, Google, Facebook and others continuing to grow and attract new hires to the region. We'll continue following Seattle migration trends in future quarters to understand whether the metro is topping out on growth. Moving In - Metros with the Highest Net Outflow of Redfin Users The places attracting the most people are mostly sun-scorched metros with relatively affordable homes and lower tax burdens, including Phoenix, Las Vegas and Miami. Below are the 10 metros that are the most likely to receive big inflows of new residents in the coming year from expensive coastal markets. With these new residents, economic growth and rising home prices will likely follow. Phoenix and Las Vegas: Affordable Desert Oases As in the first quarter, Phoenix again had the highest net inflow in the analysis. Thirty-four percent of home searchers in Phoenix in the second quarter were from elsewhere, up from 31 percent during the same period last year. The top origin of Phoenix migrants was Los Angeles (25% of inbound searches), followed by Seattle (14%), Chicago (8%), the Bay Area (8%) and New York (5%). Phoenix is also much more affordable, with a median home list price of $275,000 in July, compared to $410,000 in Denver and $565,000 in Seattle. Las Vegas, another low-tax haven, had the highest share of non-local searches. Forty-one percent of the people searching for homes in Las Vegas were searching from outside the metro area. Nearly 40 percent of these inbound searches originated in Los Angeles, followed by the San Francisco Bay Area (12%), Portland, Oregon (8%), and Seattle (5%). The influx of new residents to the area is causing prices and competition to accelerate. Median home prices in Las Vegas rose by 11 percent in July year over year, marking 17 months in a row of double-digit price growth. "Affordability definitely plays a role in home searchers considering Las Vegas as their new home city," said Nicole Lazarski, a Redfin agent in Las Vegas. "Even though home prices are climbing fast, they have still not returned to their 2007 height. With a median sale price around $270,000 in July, plus Nevada's low property taxes and lack of a state income tax, it's a very attractive place for people looking to leave California and other expensive places." In Las Vegas, the typical homeowner pays $1,500 (0.8%) in property taxes and about 8 percent in local sales taxes, with no state income tax, whereas in Los Angeles, the respective amounts are $3,600 (0.8%) property taxes, about 9 percent sales tax rate, and 8 percent state income tax rate. To read the full report, complete with more data, interactive charts and methodology, please click here. About Redfin Redfin is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $60 billion in home sales.
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CoreLogic Loan Performance Insights Find Overall U.S. Mortgage Delinquency and Foreclosure Rates Lowest for June in 12 Years
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U.S. Home Flipping Returns Drop to Nearly Four-Year Low in Q2 2018
Home Flipping Rate Down From Previous Quarter and a Year Ago; Share of Financed Flips Down from Nearly 10-Year High a Year Ago; 32 Percent of Flips Acquired Via Distressed Sale, Down From 68 Percent Peak in Q1 2010 IRVINE, Calif. – Sept. 6, 2018 — ATTOM Data Solutions, curator of the nation's premier property database, today released its Q2 2018 U.S. Home Flipping Report, which shows that homes flipped in the second quarter of 2018 yielded an average gross return on investment of 44.3 percent, down from 47.8 percent in the previous quarter and down from 50.0 percent in Q2 2017 to the lowest average gross flipping ROI since Q3 2014. The report shows a total of 48,768 U.S. single family homes and condos were flipped in the second quarter of 2018, a home flipping rate of 5.2 percent of all sales — down from a 6.6 percent home flipping rate in Q1 2018 and down from a 5.4 percent home flipping rate in Q2 2017. Homes flipped in Q2 2018 sold for an average of $65,520 more than what the home flipper purchased them for, down from an all-time high average gross flipping profit of $69,500 in the first quarter and down from an average gross flipping profit of $69,000 a year ago. The average gross flipping profit in the second quarter was the lowest since Q2 2016 — a two-year low. "Fewer distressed sales are limiting the ability of home flippers to find deep discounts even while rising interest rates are shrinking the pool of potential buyers for flipped homes," said Daren Blomquist, senior vice president at ATTOM Data Solutions. "These two forces are squeezing average home flipping returns, pushing investors to leverage financing or migrate to markets with more distressed discounts available to achieve more favorable returns." 32 percent of home flips purchased via distressed sale, down from peak of 68 percent Of homes flipped in Q2 2018, 32.3 percent were purchased by the home flipper via a distressed sale – either in foreclosure or bank-owned, down from 35.8 percent the previous quarter and down from 38.7 percent a year ago. The peak in distressed sales purchases by home flippers was 68.2 percent in Q1 2010. States with the highest share of Q2 2018 home flips purchased via a distressed sale were New Jersey (64.1 percent); Delaware (60.3 percent); Indiana (55.4 percent); Maryland (52.8 percent); and New York (48.4 percent). "The business of adding some superficial cosmetic upgrades to a distressed purchase and then selling for a profit is no longer an option," said Jeff Pintar, founding partner and CEO at Pintar Investment Company, which flips homes in California, Nevada and Georgia. "Home buyers are expecting quality product throughout the entire property parcel. Buyers have plenty of choices and only the top-quality homes are selling. This means investors need to fine tune their operations and pricing models and deliver model-like homes in order to compete. In our markets, we see home buyers continuing to be willing to pay more for better quality — this is first time and move up buyers." Among 140 metropolitan statistical areas with at least 50 flips in Q2 2018 and a population of at least 200,000, those with the highest share of Q2 2018 home flips purchased via distressed sale were Atlantic City, New Jersey (71.0 percent); El Paso, Texas (70.5 percent); Trenton, New Jersey (65.2 percent); Virginia Beach, Virginia (60.7 percent); and New York, New York (56.5 percent). 39 percent of home flips purchased with financing Among home flips completed in Q2 2018, 38.6 percent were purchased by the home flipper with financing, up from 36.8 percent in the previous quarter but down from a nearly 10-year high of 39.6 percent in Q2 2017. "Acquisition prices have been creeping up, and it's now more difficult for investors to buy with cash than previously, but high prices are not the only reason flippers are turning to financing," said Robert Greenberg, chief marketing officer with Patch of Land, a peer-to-peer lending marketplace for real estate investors. "We see many borrowers coming to us simply for the ability to make more money. Financing can be the answer to making more profit overall: an investor that nets $30,000 per flip after paying $5,000 to $10,000 for financing costs can make $90,000 on three flips with the same amount of cash required to make $40,000 on a single flip. For some experienced investors, it's possible to do 20 to 30 flips per year with financing versus 10 or less using all cash." States with the highest share of flips purchased with financing were Rhode Island (63.8 percent); Colorado (57.1 percent); New Hampshire (53.4 percent); Minnesota (50.2 percent); and Washington 50.0 percent). Among 140 metropolitan statistical areas with at least 50 flips in Q2 2018 and a population of at least 200,000, those with the highest share of flips purchased with financing were Fort Collins, Colorado (66.7 percent); Colorado Springs, Colorado (66.0 percent); Providence, Rhode Island (60.3 percent); Greeley, Colorado (59.6 percent); and Seattle, Washington (54.6 percent). "It has gotten tougher and tougher to flip homes in the Colorado market. Not only is the competition fierce, but home prices continue to rise," said Mark Ferguson, a real estate broker, investor and founder of InvestFourMore. "I flip from 10 to 20 houses at one time, and even though I use financing it takes more money to flip when prices are higher. I have thought about moving to a cheaper market, but I love Colorado and I am doing everything I can to make it work here. I used to pay from $50,000 to $100,000 for most of my house flips, and now I am paying $150,000 to $250,000 for my flips with not much more profit. My average profit in the past after all expenses has been around $32,000, and this year it is closer to $40,000." Among 1,451 U.S. zip codes analyzed in the report with at least 10 flips during the quarter, those with the highest share of flips purchased with financing were 80923 in Colorado Springs, Colorado (85.7 percent); 85006 in Phoenix, Arizona (84.6 percent); 98033 in Kirkland, Washington in the Seattle metro area (84.6 percent); 80525 in Fort Collins, Colorado (84.2 percent); and 20002 in the District of Columbia (81.8 percent). Highest gross flipping returns in Louisiana, Pennsylvania, Ohio States with the highest average gross flipping ROI in Q2 2018 were Louisiana (102.5 percent), Pennsylvania (100.3 percent), Ohio (81.4 percent), Maryland (76.1 percent), and Tennessee (74.9 percent). "Flipping in the Rust Belt continues to provide solid returns and continues to be a viable investment strategy. But the investor must provide a great product, new mechanicals, new kitchens and baths with today's modern open concepts and bright light finishes — when they do these house sell fast," said Josh Cantwell, CEO at Strategic Real Estate Coach and fix-and-flip lender Freeland Ventures. "The key now is finding great deals. But since we're in the Rust Belt there's plenty of off-market sellers with aged properties and deferred maintenance looking to sell below market value. Investors have to be better marketers now more than ever to beat their competition to those deals." Among 140 metropolitan statistical areas with at least 50 flips in Q2 2018 and a population of at least 200,000, those with the highest average gross flipping ROI in Q2 2018 were Pittsburgh, Pennsylvania (162.7 percent); Hickory-Lenoir-Morganton, North Carolina (129.0 percent); Mobile, Alabama (126.6 percent); Buffalo, New York (107.5 percent); and Baton Rouge, Louisiana (107.1 percent). Among 1,451 U.S. zip codes analyzed in the report with at least 10 flips during the quarter, those with the highest average gross flipping ROI in Q2 2018 were 35211 in Birmingham, Alabama (352.4 percent); 63118 in St. Louis, Missouri (351.6 percent); 37344 in Fayetteville, Tennessee (323.7 percent); 19144 in Philadelphia, Pennsylvania (294.1 percent); and 07017 in East Orange, New Jersey (273.1 percent). Highest home flipping rates in D.C., Nevada, Tennessee The District of Columbia had the highest home flipping rate in the nation in Q2 2018 (8.3 percent), followed by Nevada (7.4 percent), Tennessee (7.2 percent), Arizona (6.7 percent), Maryland (6.5 percent), and Alabama (6.4 percent). Among 140 metropolitan statistical areas with at least 50 flips in Q2 2018 and a population of at least 200,000, those with the highest home flipping rate for the quarter were Memphis, Tennessee (9.7 percent); Clarksville, Tennessee (8.2 percent); Atlantic City, New Jersey (7.9 percent); York, Pennsylvania (7.7 percent); and Las Vegas, Nevada (7.7 percent). Among 1,451 U.S. zip codes analyzed in the report with at least 10 flips during the quarter, those with the highest home flipping rate were 11950 in the Long Island city of Mastic, New York (35.3 percent); 78537 in Donna, Texas, in the McAllen metro area (32.3 percent); 11717 in the Long Island city of Brentwood, New York (28.2 percent); 35214 in Birmingham, Alabama (27.4 percent); and 38109 in Memphis, Tennessee (27.2 percent). Shortest average time to flip in New Hampshire, Arizona, Nevada, Alabama, Missouri The average time to complete a home flip was 186 days for flips completed in Q2 2018 compared to 182 days in the previous quarter and 185 days a year ago. States with the longest shortest average time to flip were New Hampshire (151 days); Arizona (161 days), Nevada (167 days), Alabama (168 days), and Missouri (171 days). Among 140 metropolitan statistical areas with at least 50 flips in Q2 2018 and a population of at least 200,000, those with the shortest average time to flip were Memphis, Tennessee (137 days), Manchester-Nashua, New Hampshire (138 days), Mobile, Alabama (140 days), McAllen-Edinburg-Mission, Texas (147 days); and Vallejo-Fairfield, California (150 days). Among 1,451 U.S. zip codes analyzed in the report (with at least 10 flips during the quarter), those with the shortest average time to flip were 73110 in Oklahoma City, Oklahoma (83 days) followed by three Atlanta-area zip codes: 30039 in Snellville, Georgia (88 days); 30294 in Ellenwood, Georgia (89 days); and 30052 in Loganville (91 days); and 93637 in Madera, California (92 days). Other high-level report takeaways The median year built of homes flipped in Q2 2018 was 1978, tied for the oldest median year built as far back as data is available — Q1 2000. The median square footage of homes flipped in Q2 2018 was 1,408, the smallest median square footage as far back as data is available — Q1 2000. A total of 40,265 entities flipped properties in Q2 2018, a ratio of 1.21 flips per entity, the lowest ratio of flips per entity since Q1 2008 — a more than 10-year low. Report methodology ATTOM Data Solutions analyzed sales deed data for this report. A single family home or condo flip was any arms-length transaction that occurred in the quarter where a previous arms-length transaction on the same property had occurred within the last 12 months. The average gross flipping profit is the difference between the purchase price and the flipped price (not including rehab costs and other expenses incurred, which flipping veterans estimate typically run between 20 percent and 33 percent of the property's after repair value). Gross flipping return on investment was calculated by dividing the gross flipping profit by the first sale (purchase) price. About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, APIs, market trends, marketing lists, match & append and more.
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Redfin Report: Since 2012, Broad Home-Equity Gains Across Minority and White Neighborhoods
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CoreLogic Reports July Home Prices Increased by 6.2 Percent, Homeowners Waiting to Sell for Anticipated Increase Return on Investment
Homeowners feel they are in a "sellers' market" and staying put for higher returns CoreLogic®, a leading global property information, analytics and data-enabled solutions provider, today released the CoreLogic Home Price Index (HPI™) and HPI Forecast™ for July 2018, which shows home prices rose both year over year and month over month. Home prices increased nationally by 6.2 percent year over year from July 2017 to July 2018. On a month-over-month basis, prices increased by 0.3 percent in July 2018 compared with June 2018. (June 2018 data was revised. Revisions with public records data are standard, and to ensure accuracy, CoreLogic incorporates the newly released public data to provide updated results each month.) Looking ahead, the CoreLogic HPI Forecast indicates that the national home-price index is projected to continue to increase by 5.1 percent on a year-over-year basis from July 2018 to July 2019. On a month-over-month basis, home prices are expected to decrease by 0.2 percent from July to August 2018. The CoreLogic HPI Forecast is a projection of home prices that is calculated using the CoreLogic HPI and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state. "With increased interest rates and home prices, the CoreLogic Home Price Index is rising at a slower rate than it was earlier this year," said Dr. Frank Nothaft, chief economist for CoreLogic. "While markets in the western part of the country continue to experience rapid home-price growth, many of those metros are overvalued, and will likely experience a slowdown soon." According to the CoreLogic Market Condition Indicators (MCI), an analysis of housing values in the country's 100 largest metropolitan areas based on housing stock, 40 percent of metropolitan areas have an overvalued housing market as of July 2018. The MCI analysis categorizes home prices in individual markets as undervalued, at value or overvalued, by comparing home prices to their long-run, sustainable levels, which are supported by local market fundamentals (such as disposable income). Additionally, as of July 2018, 20 percent of the top 100 metropolitan areas were undervalued, and 40 percent were at value. When looking at only the top 50 markets based on housing stock, 50 percent were overvalued, 12 percent were undervalued and 38 percent were at value. The MCI analysis defines an overvalued housing market as one in which home prices are at least 10 percent higher than the long-term, sustainable level. An undervalued housing market is one in which home prices are at least 10 percent below the sustainable level. In 2018, CoreLogic together with RTi Research of Norwalk, Connecticut, conducted an extensive consumer housing sentiment study, combining consumer and property insights. The study assessed attitudes toward homeownership and the drivers of the home buying or renting decision process. The July CoreLogic Market Condition Indicators (MCI) data reveals that 50 percent of the top 50 markets are considered overvalued. However, residents in many of these high-price growth markets have expectations that might be at odds with this reality. Figure 2 shows that 62 percent of residents in these markets expect their homes will be worth more in three years than they are today. Meanwhile, 55 percent of residents in no/negative growth markets believe their homes will be worth either the same or less in three years than they are today. Additionally, 47 percent of residents in high-price growth markets and 31 percent in lower growth markets feel they are in a "sellers' market." "Many consumers see their homes as good investments," said Frank Martell, president and CEO of CoreLogic. "Our consumer research indicates homeowners, especially those in high-price growth markets, are confident that by waiting to sell, they will receive a greater return on investment than they would today. In other words, sellers are largely staying put. With fewer homes on the market, price pressure will continue to rise." About The 2018 CoreLogic Consumer Housing Sentiment Study Nationwide survey of 3001 renters and homeowners conducted in first quarter of 2018 by CoreLogic together with RTi Research. The survey has a sampling error of +/- 1.8 percent at the total respondent level with a 95 percent confidence level. About RTi Research RTi Research is an innovative, global market research and brand strategy consultancy headquartered in Norwalk, CT. Founded in 1979, RTi has been consistently recognized by the American Marketing Association as one of the top 50 U.S. insights companies. The company serves a broad base of leading firms in Financial Services, Consumer Goods, and Pharmaceuticals as well as partnering with leading academic centers of excellence. About CoreLogic CoreLogic (NYSE: CLGX) is a leading global property information, analytics and data-enabled solutions provider. The company's combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.
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Home Prices Rise Three Times Faster than Rents
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Pending Home Sales Trail Off 0.7 Percent in July
WASHINGTON (August 29, 2018) — Pending home sales stepped back in July and have now fallen on an annual basis for seven straight months, according to the National Association of Realtors®. The Pending Home Sales Index, a forward-looking indicator based on contract signings, decreased 0.7 percent to 106.2 in July from 107.0 in June. With last month's decline, contract signings are now down 2.3 percent year-over-year. Lawrence Yun, NAR chief economist, says the housing market's summer slowdown continued in July. "Contract signings inched backward once again last month, as declines in the South and West weighed down on overall activity," he said. "It's evident in recent months that many of the most overheated real estate markets – especially those out West – are starting to see a slight decline in home sales and slower price growth." Added Yun, "The reason sales are falling off last year's pace is that multiple years of inadequate supply in markets with strong job growth have finally driven up home prices to a point where an increasing number of prospective buyers are unable to afford it." Pointing to annual changes in active listings data at realtor.com®, Yun said increasing inventory in several large metro areas, and especially many out West, will likely help cool price growth to more affordable levels going forward. Even as days on market remains swift in many of these areas, Denver, Santa Rosa, California, San Jose-Sunnyvale-Santa Clara, California, Seattle, Nashville, Tennessee, and Portland, Oregon were among the large markets seeing a rise in active listings in July compared to a year ago. Earlier this week, NAR released commentary reflecting on the past decade since the beginning of the Great Recession. Although supply and affordability headwinds are the biggest issue right now, Yun said it is important to note just how much the housing market has recovered since the depths of the financial crisis. Today, thanks to several years of solid job growth, as well as safe lending and regulatory policy reforms, foreclosures sit near historic lows and record high home values have helped millions of households build substantial wealth. "Rising inventory levels – especially if new home construction finally starts picking up – should help slow price appreciation to around two-and-four percent, which will help aspiring first-time buyers, and be good for the long-term health of the nation's housing market," said Yun. Yun expects existing-home sales this year to decrease 1.0 percent to 5.46 million, and the national median existing-home price to increase around 5.0 percent. Looking ahead to next year, existing sales are forecast to increase 2 percent and home prices around 3.5 percent. July Pending Home Sales Regional Breakdown The PHSI in the Northeast climbed 1.0 percent to 94.6 in July, but is still 2.3 percent below a year ago. In the Midwest the index inched up 0.3 percent to 102.2 in July, but is still 1.5 percent lower than July 2017. Pending home sales in the South declined 1.7 percent to an index of 122.1 in July, and are 0.9 percent below a year ago. The index in the West decreased 0.9 percent in July to 94.7, and is 5.8 percent below a year ago. The National Association of Realtors® is America's largest trade association, representing 1.3 million members involved in all aspects of the residential and commercial real estate industries.
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Home Price Cuts Increase, but Still Not Buyer's Market
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Low Inventory and High Prices Cause Showing Traffic to Level Off in Parts of the U.S.
Homebuyer showings decline in the West and Northeast, cool in the Midwest; South increases again Aug. 22, 2018, Chicago, IL – As high home prices and a continued inventory shortage in many markets have contributed to the residential real estate industry forecasting a slowdown, the July 2018 ShowingTime Showing Index® revealed waning showing traffic in some regions of the U.S. Showing activity throughout the country increased by 0.3 percent year over year in July, the third consecutive month that the U.S. ShowingTime Showing Index recorded buyer interest decelerating compared to the previous year. The June 2018 figures revealed a 0.0 percent change in showing traffic from 2017, while May showed a 1.2 percent year-over-year increase. The 12-month average year-over-year increase was 4.6 percent. The slowdown has been particularly apparent in western markets where inventory remains tight, ShowingTime Chief Analytics Officer Daniil Cherkasskiy said, as showing activity in the West Region has declined for six consecutive months and was down 6.5 percent compared to last year at this time. The Northeast Region has also experienced a run of consecutive monthly year-over-year decreases, with showing activity declining by 2.0 percent compared to last year. "The ShowingTime Showing Index has been forecasting a slowdown for the past few months due to showing activity remaining relatively steady or lower compared to last year, which has been in large part affected by lower inventory in several major markets in the West Region," Cherkasskiy said. "That trend now appears to be impacting some areas of the Northeast, as well." Buyer interest remains high in the South Region, however, which has experienced year-over-year increases for 10 straight months and saw showing traffic increase 4.6 percent compared to last July. The Midwest Region showed a slight 0.6 percent year-over-year increase. The ShowingTime Showing Index, the first of its kind in the residential real estate industry, is compiled using data from property showings scheduled across the country on listings using ShowingTime products and services, which facilitate more than 4 million showings each month. Released on or around the 20th of each month, the Showing Index tracks the average number of appointments received on an active listing during the month. Local MLS indices are also available for select markets and are distributed to MLS and association leadership. To view the full report, visit www.showingtime.com/index. About ShowingTime ShowingTime is the leading showing management and market stats technology provider to the residential real estate industry, with more than 1.2 million active listings subscribed to its services. Its MarketStats division provides interactive tools and market reports for MLSs, associations, brokers, agents and other real estate companies, along with recruiting software that enables brokers to identify top agents. Its showing products take the inefficiencies out of the appointment scheduling process for real estate agents, buyers and sellers. ShowingTime products are used in more than 250 MLSs representing over 950,000 real estate professionals across the U.S. and Canada.
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Existing-Home Sales Slip 0.7 Percent in July
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Foreclosure Starts Increase in 44 Percent of U.S. Markets in July 2018
July the Third Consecutive Month with an Annual Increase in 15 Percent of Markets; Atlantic City, Peoria, Fayetteville, North Carolina Post Top Metro Foreclosure Rates IRVINE, Calif. – Aug. 21, 2018 — ATTOM Data Solutions, curator of the nation's premier property database, today released its July 2018 U.S. Foreclosure Market Report, which shows that foreclosure starts increased from a year ago in 96 of the 219 metropolitan statistical areas (44 percent) analyzed in the report. A total of 30,187 U.S. properties started the foreclosure process for the first time in July, up 1 percent from the previous month and up less than 1 percent from a year ago — the first year-over-year increase in foreclosure starts nationwide following 36 consecutive months of year-over-year decreases. Twenty-one states posted a year-over-year increase in foreclosure starts in July, including Florida (up 35 percent); California (up 3 percent); Texas (up 7 percent); Illinois (up 7 percent); and Ohio (up 2 percent). Metro areas posting year-over-year increases in foreclosure starts in July included Los Angeles, California (up 20 percent); Houston, Texas (up 76 percent); Philadelphia, Pennsylvania (up 10 percent); Miami, Florida (up 29 percent); and San Francisco, California (up 10 percent). "The increase in foreclosure starts is not just a one-month anomaly in many local markets given that July represented the third consecutive month with a year-over-year increase in 33 metro areas, including Los Angeles, Miami, Houston, Detroit, San Diego and Austin," said Daren Blomquist, senior vice president with ATTOM Data Solutions. "Gradually loosening lending standards over the past few years have introduced a modicum of risk back into the housing market, and that additional risk is resulting in rising foreclosure starts in a diverse set of markets across the country. Most susceptible to rising foreclosure starts are affordability-challenged markets where homebuyers are more financially stretched and markets with some type of trigger event such as a natural disaster or large-scale layoffs." Atlantic City, Peoria, Fayetteville, North Carolina post top metro foreclosure rates Nationwide, one in every 2,086 U.S. housing units had a foreclosure filing in July. States with the highest foreclosure rates in July were New Jersey (one in every 723 housing units with a foreclosure filing); Delaware (one in every 841); Maryland (one in every 1,038); Florida (one in every 1,180); and Illinois (one in every 1,277). Among the 219 metropolitan statistical areas with at least 200,000 people, those with the highest foreclosure rates in July were Atlantic City, New Jersey (one in every 448 housing units with a foreclosure filing); Peoria, Illinois (one in every 622); Fayetteville, North Carolina (one in every 683); Trenton, New Jersey (one in every 703); and Philadelphia (one in every 851). About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, APIs, market trends, marketing lists, match & append and more.
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The Midwest Dominates July's Hottest Housing Markets
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Metro Home Prices Climb to New All-Time High; Rise 5.3 Percent in Second Quarter
WASHINGTON (August 8, 2018) — Amidst staggeringly low inventory levels in much of the country during the second quarter, existing-homes sales cooled and home prices maintained their robust level of appreciation, according to the latest quarterly report by the National Association of Realtors®. Last quarter, the San Francisco metro area joined the San Jose metro area for having a median sales price above $1 million. The national median existing single-family home price in the second quarter was $269,000, which is up 5.3 percent from the second quarter of 2017 ($255,400) and surpasses last year's second quarter as the new peak. The median sales price during this year's first quarter increased 5.7 percent from the first quarter of 2017. Single-family home prices last quarter increased in 90 percent of measured markets, with 161 out of 178 metropolitan statistical areas (MSAs) showing sales price gains in the second quarter compared to a year ago. Twenty-four metro areas (13 percent) experienced double-digit increases, down from 30 percent in this year's first quarter. Lawrence Yun, NAR chief economist, says this year's spring buying season did not meet expectations, despite very strong demand. "The ongoing supply crunch affecting much of the country worsened for most of the second quarter, as the growing number of interested buyers in many markets overwhelmed what was already a meager level of available listings," he said. "With not enough homes for sale, multiple bids caused prices to rise briskly and further out of the reach of some prospective buyers." Total existing-home sales, including single family and condos, decreased 1.7 percent to a seasonally adjusted annual rate of 5.41 million in the second quarter from 5.51 million in the first quarter, and are 2.4 percent lower than the 5.55 million pace during the second quarter of 2017. "Solid economic growth, a healthy labor market and the large millennial population should be driving home sales much higher," said Yun. "As long as economic conditions maintain current levels, there's still a chance for sales to break out this year. However, with mortgage rates trending higher, it will only happen if supply levels improve enough to cool the speedy price growth in a majority of the country." At the end of the second quarter, there were 1.95 million existing homes available for sale, which was 0.5 percent above the 1.94 million homes for sale at the end of the second quarter in 2017. The average supply during the second quarter was 4.1 months – down from 4.2 months in the second quarter of last year. The national family median income rose to $75,106 in the second quarter, but overall affordability decreased from a year ago because of higher mortgage rates and home prices. To purchase a single-family home at the national median price, a buyer making a 5 percent down payment would need an income of $64,239, a 10 percent down payment would require an income of $60,858, and $54,096 would be needed for a 20 percent down payment. "The unaffordable conditions in many of the largest metro areas – especially in the West – continues to be a growing concern for many middle-class households aspiring to buy a home," said Yun. "Homebuilders, facing higher costs and labor shortages, are simply not producing enough affordable homes to satisfy demand. Local governments need to acknowledge this glaring issue and ease some of the zoning laws, permitting processes and regulations that are slowing construction." The five most expensive housing markets in the second quarter were the San Jose, California metro area, where the median existing single-family price was $1,405,000; San Francisco-Oakland-Hayward, California, $1,070,000; Anaheim-Santa Ana-Irvine, California, $830,000; urban Honolulu, $795,200; and San Diego-Carlsbad, $645,000. The five lowest-cost metro areas in the second quarter were Youngstown-Warren-Boardman, Ohio, $94,400; Cumberland, Maryland, $94,900; Decatur, Illinois, $96,900; Elmira, New York, $106,300; and Erie, Pennsylvania, at $121,700. Metro area condominium and cooperative prices – covering changes in 61 metro areas – showed the national median existing-condo price was $248,200 in the second quarter, up 3.6 percent from the second quarter of 2017 ($239,600). Ninety percent of metro areas showed gains in median condo price from a year ago. Regional Breakdown Total existing-home sales in the Northeast were at an annual rate of 683,000 (unchanged from the first quarter of 2018) and down 8.9 percent from a year ago. The median existing single-family home price in the Northeast was $288,900 in the second quarter, up 2.3 percent from a year ago. In the Midwest, existing-home sales rose 1.6 percent in the second quarter but are 2.8 percent below a year ago. The median existing single-family home price in the Midwest grew 3.5 percent to $210,600 in the second quarter from the same quarter a year ago. Existing-home sales in the South declined 2.7 percent in the second quarter but are 0.6 percent higher than the second quarter of 2017. The median existing single-family home price in the South was $238,500 in the second quarter, 4.0 percent above a year earlier. In the West, existing-home sales in the second quarter decreased 4.1 percent and are 3.6 percent below a year ago. The median existing single-family home price in the West increased 8.3 percent to $403,300 in the second quarter from the second quarter of 2017. The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1.3 million members involved in all aspects of the residential and commercial real estate industries.
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Luxury Housing Sets New Records
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CoreLogic Reports June Home Prices Increased by 6.8 Percent, Millennials Identify Affordability as Biggest Hurdle
CoreLogic, a leading global property information, analytics and data-enabled solutions provider, today released the CoreLogic Home Price Index (HPI™) and HPI Forecast™ for June 2018, which shows home prices rose both year over year and month over month. Home prices increased nationally by 6.8 percent year over year from June 2017 to June 2018. On a month-over-month basis, prices increased by 0.7 percent in June 2018 compared with May 2018, according to the CoreLogic HPI. (May 2018 data was revised. Revisions with public records data are standard, and to ensure accuracy, CoreLogic incorporates the newly released public data to provide updated results each month.) Looking ahead, the CoreLogic HPI Forecast indicates that the national home-price index is projected to continue to increase by 5.1 percent on a year-over-year basis from June 2018 to June 2019. On a month-over-month basis, home prices are expected to be flat from June to July 2018. The CoreLogic HPI Forecast is a projection of home prices that is calculated using the CoreLogic HPI and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state. "The rise in home prices and interest rates over the past year have eroded affordability and are beginning to slow existing home sales in some markets," said Dr. Frank Nothaft, chief economist for CoreLogic. "For June, we found in CoreLogic public records data that home sales in the San Francisco Bay Area and Southern California were down 9 and 12 percent, respectively, from one year earlier. Further increases in home prices and mortgage rates over the next year will likely dampen sales and home-price growth." According to the CoreLogic Market Condition Indicators (MCI), an analysis of housing values in the country's 100 largest metropolitan areas based on housing stock, 41 percent of metropolitan areas have an overvalued housing market as of June 2018. The MCI analysis categorizes home prices in individual markets as undervalued, at value or overvalued, by comparing home prices to their long-run, sustainable levels, which are supported by local market fundamentals (such as disposable income). Additionally, as of June 2018, 24 percent of the top 100 metropolitan areas were undervalued, and 35 percent were at value. When looking at only the top 50 markets based on housing stock, 54 percent were overvalued, 14 percent were undervalued and 32 percent were at value. The MCI analysis defines an overvalued housing market as one in which home prices are at least 10 percent higher than the long-term, sustainable level. An undervalued housing market is one in which home prices are at least 10 percent below the sustainable level. In 2018, CoreLogic together with RTi Research of Norwalk, Conn., conducted an extensive consumer housing sentiment study, combining consumer and property insights. The study assessed attitudes toward homeownership and the drivers of the home buying or renting decision process. Across the U.S., the desire to own a home is significantly higher among those in younger age cohorts. Younger millennial renters (those under the age of 29) are significantly more likely to want to buy a home in the next 12 months than older millennial or Generation X renters. However, affordability for this group is a significant issue. Sixty-three percent of younger millennials who are not interested in home ownership identified the inability to afford a home or down payment as the reason they are not interested in buying at this time. This is compared with 50 percent of older millennial renters and 52 percent of Generation X renters. For their part, boomer generation renters say their lack of interest in home ownership is driven by a lack of need at this stage in their lives. "One-third of millennial renters reported feeling they cannot afford a down payment to buy a home," said Frank Martell, president and CEO of CoreLogic. "With home prices rising quickly over the past few years and supplies low, first-time homebuyers face ever-growing challenges to find and buy affordable entry-level homes. More needs to be done to help our first-time buyers join the homeownership class." About The 2018 CoreLogic Consumer Housing Sentiment Study Nationwide survey of 3001 renters and homeowners conducted in first quarter of 2018 by CoreLogic together with RTi Research. The survey has a sampling error of +/- 1.8 percent at the total respondent level with a 95 percent confidence level. About RTi Research RTi Research is an innovative, global market research and brand strategy consultancy headquartered in Norwalk, CT. Founded in 1979, RTi has been consistently recognized by the American Marketing Association as one of the top 50 U.S. insights companies. The company serves a broad base of leading firms in Financial Services, Consumer Goods, and Pharmaceuticals as well as partnering with leading academic centers of excellence. About CoreLogic CoreLogic (NYSE: CLGX) is a leading global property information, analytics and data-enabled solutions provider. The company's combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.
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Redfin Housing Demand Index Flattens from May to June
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Housing Inventory Up In High-Priced Markets
One third of the largest 45 U.S. metros saw a yearly increase in inventory in July SANTA CLARA, Calif., Aug. 1, 2018 -- Realtor.com® today released its July 2018 monthly housing trend report, which revealed a quiet inventory turnaround in high-priced local markets as U.S. home prices and time on market continued to set records. Silicon Valley is leading the rebound as the San Jose metro surged with 44 percent more inventory than a year ago -- a quick about-face from its May inventory declines. The inventory turnaround is concentrated in high-priced markets. Nationally, inventory of homes listed above $350,000 is up 5.7 percent, while inventory of homes below $200,000 is down 15.6 percent, and inventory of homes between $200,000 to $350,000 is virtually flat, slipping just 0.6 percent. In the 45 largest metros, prices are significantly higher in markets where inventory is rising -- an average of $494,000 -- compared to markets where inventory is still dropping -- an average of $302,000. Additionally, inventories are up the most in markets that have seen sustained price growth which is now starting to slow. The U.S. median listing price remained at an all-time high of $299,000 in July, unchanged from June and 9 percent higher than last year. Homes sold in an average of 59 days, 5 days faster than last year. Overall, U.S. active housing inventory is not yet growing, but showed evidence of shifting gears, posting only a 4 percent decline year-over-year -- significantly slower than the 8 percent average decline seen over the last 12 months. Furthermore, 16 major metros saw an increase in their yearly inventory levels. "July inventory growth is in high-priced, competitive markets, and often at the pricier end of these markets," said Danielle Hale, chief economist for realtor.com®. "It's not just California markets that have seen an increase in inventory, markets on both coasts and in the South reported inventory increases in July." Locally, this deceleration of inventory declines was even more pronounced. In July, the 45 largest markets in the country showed no change in inventory on average year-over-year, in stark contrast with last July's 11 percent decline in these same markets. In addition to San Jose, inventory increased in Seattle, and Providence increasing 44 percent, 29 percent and 23 percent, respectively. Other major markets that showed gains included: Dallas (15 percent), San Francisco (10 percent), Boston (5 percent), and New York (2 percent). "Although signs of an inventory turnaround are encouraging, whether they mean good news for buyers remains to be seen. These areas are seeing more new listings and some construction growth, but high prices and fast-selling homes are causing some buyer hesitation which is reflected in fewer home sales," added Hale. *Excluded: Denver, Columbus, Las Vegas, Nashville and Birmingham data is under revision and excluded due to MLS feed changes. Adjusted: Washington and Baltimore inventory trends are adjusted to show total listing movement instead of active listing movement due to MLS feed changes. Active listings are non-pending, for-sale home listings. Realtor.com® tracks national housing trends as well as data for the 500 largest U.S. metros. For July trend data, please visit: https://realtor.com/research/data About realtor.com® Realtor.com®, The Home of Home Search, offers an extensive inventory of for-sale and rental listings, and access to the information, tools and professional expertise to help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today is the trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [NASDAQ: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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Pending Home Sales Reverse Course, Rise 0.9 Percent in June
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International Activity in U.S. Residential Real Estate Market Declines, According to Realtor Survey
WASHINGTON (July 26, 2018) – Rising home prices and low inventory led to a decline in foreign home purchases in the United States. Total international sales totaled $121 billion during April 2017 to March 2018, a 21 percent decline from the previous 12-month period, according to an annual survey from the National Association of Realtors®. NAR's 2018 Profile of International Transactions in U.S. Residential Real Estate, found that foreign buyers and recent immigrants accounted for 8 percent of the $1.6 trillion existing home sales, a decrease from 10 percent during the 12-month period that ended March 2017. "After a surge in 2017, we saw a decrease in foreign activity in the housing market in the latest year, bringing us closer to the levels seen in 2016," said Lawrence Yun, NAR chief economist. "Inventory shortages continue to drive up prices and sustained job creation and historically low interest rates mean that foreign buyers are now competing with domestic residents for the same, limited supply of homes." China continues to lead in purchases Five countries accounted for nearly half (49 percent) of the dollar volume of purchases by foreign buyers: China, Canada, India, Mexico and the United Kingdom. For the sixth consecutive year, China exceeded all other countries in dollar volume of purchases, buying an estimated $30.4 billion worth of residential property, a decrease of 4 percent from last year. Buyers from Canada came in second, with $10.5 billion worth of property, showing a more significant decline of 45 percent from the 2017 survey reference period, followed by the U.K., $7.3 billion, India, $7.2 billion and Mexico, $4.2 billion. "The saying goes that all real estate is local, but that does not mean that all buyers are," said NAR President Elizabeth Mendenhall, a sixth-generation Realtor® from Columbia, Missouri and CEO of RE/MAX Boone Realty. "Even in this current global environment of political uncertainty, the U.S. real estate market continues to be seen as a safe, secure and profitable place to invest in property." The survey once again showed that foreign buying activity is mostly limited to three states, as Florida (19 percent), California (14 percent) and Texas (9 percent) remained the top three destinations for foreign buyers to purchase, followed by Arizona and New York (both 5 percent). The number of units purchased by international buyers saw a slight decrease, from 284,000 in the previous 12-month period to 266,800. China, once again, purchased the greatest number of units at 40,400. Canada comes next with 27,400 units, followed by Mexico (20,200), India (13,100) and the U.K. (9,000). International buyers purchasing fewer, less expensive properties International buyers typically buy more expensive properties than the average existing home. The median price for a foreign buyer was $292,400, compared to the median price for all existing homes ($249,300). Chinese buyers continue to purchase the most expensive properties, with a median price of $439,100. Foreign buyers are more likely to purchase a home with all cash than a domestic buyer. Forty-seven percent of all international transactions were reported as all cash, compared to 21 percent of existing-home sales. Buyers from India are more likely to finance their home purchase through a U.S. mortgage (78 percent). Buyers from Canada are the most likely to purchase a home through an all-cash sale (78 percent). Foreign buyers are most likely to purchase a detached, single-family home (66 percent), followed by a condominium (14 percent) and then a townhouse (13 percent). Only 3 percent of international buyers purchase residential land with the intent to build a home. International buyers purchase property for a variety of reason, the most frequent (52 percent) being as a primary residence. Indian buyers were the most likely to purchase the property for primary residence (86 percent), while Canadian buyers were the most likely to purchase the property as a vacation home (40 percent). Among the top five purchasing countries, Chinese buyers were the most likely to purchase a house for student housing. Realtors® uncertain about the outlook of international buying activity Twenty-three percent of National Association of Realtors® members who participated in the survey reported that they worked with an international client in the last year, a decline from 29 percent in the previous year. Forty-four percent of respondents said that they "don't know" when asked about the 12-month outlook for international residential buyer activity. Twenty-five percent said they think the activity with either decrease or remain the same and only 5 percent believe it will increase. Yun attributes this uncertainty about future conditions to confusion and ambiguity surrounding policy changes related to international trade and immigration. Realtors® also worked with international clients looking to lease property in the U.S. Eleven percent of respondents said they helped a foreign client lease residential property, with the most frequent country of origin being Canada (4 percent). NAR's 2018 Profile of International Transactions in U.S. Residential Real Estate was conducted April 10 through April 19, 2018. A sample of Realtors® was surveyed to measure the share of U.S. residential real estate sales to international clients, and to provide a profile of the origin, destination and buying preferences of international clients, as well as the challenges and opportunities faced by Realtors® in serving foreign clients. The survey presents information about transactions with international clients during the 12-month period between April 2017 and March 2018. A total of 10,303 Realtors® responded to the 2018 survey. The 2018 Profile of International Transactions in U.S. Residential Real Estate can be ordered by calling 800-874-6500, or online. The report is free to NAR members and accredited media and costs $149.95 for non-members. The National Association of Realtors® is America's largest trade association, representing 1.3 million members involved in all aspects of the residential and commercial real estate industries.
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U.S. Median Home Price Appreciation Decelerates in Q2 2018 to Slowest Pace in Two Years
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South Region Heats Up as Buyer Demand Remains Steady in Many U.S. Real Estate Markets
ShowingTime Showing Index® records year-over-year consecutive gains for key U.S. markets July 23, 2018, Chicago, IL – ShowingTime Chief Analytics Officer Daniil Cherkasskiy said that many U.S. real estate markets were just as busy in June as they were during an intense 2017, with buyers going on more showings in the South and Midwest regions of the country than they did at the same time last year. Data compiled for the ShowingTime Showing Index® reveals that homebuyer interest overall remains strong, with the South experiencing the highest year-over-year increase in showing activity for the fourth consecutive month at 3.8 percent while the Midwest posted a year-over-year increase of 1.7 percent. The West (-6.9 percent) and Northeast (-2 percent), however, experienced year-over-year decreases; nationally, the combined index indicated showing activity for all regions was up 0.2 percent. "We've now seen five consecutive months of year-over-year decreases in the West Region, and are also seeing a moderate buildup of inventory in some western markets," Cherkasskiy said. "These two factors point to a potential slowdown in demand in the West while real estate prices stay at historically elevated levels." The ShowingTime Showing Index, the first of its kind in the residential real estate industry, is compiled using data from property showings scheduled across the country on listings using ShowingTime products and services, which facilitate more than 4 million showings each month. Released the third week of each month, the Showing Index tracks the average number of appointments received on an active listing during the month. Local MLS indices are also available for select markets and are distributed to MLS and association leadership. To view the full report, visit www.showingtime.com/index. About ShowingTime ShowingTime is the leading showing management and market stats technology provider to the residential real estate industry, with more than 1.2 million active listings subscribed to its services. Its MarketStats division provides interactive tools and market reports for MLSs, associations, brokers, agents and other real estate companies, along with recruiting software that enables brokers to identify top agents. Its showing products take the inefficiencies out of the appointment scheduling process for real estate agents, buyers and sellers. ShowingTime products are used in more than 250 MLSs representing over 1 million real estate professionals across the U.S. and Canada.
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Existing-Home Sales Subside 0.6 Percent in June
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362,275 U.S. Properties with Foreclosure Filings in First Six Months of 2018, Down 15 Percent From a Year Ago
Foreclosure Starts Decrease Nationwide, But Increase in 40 Percent of Local Markets; Average Days to Foreclose Drops to Lowest Level Since Q3 2016 IRVINE, Calif. – July 12, 2018 — ATTOM Data Solutions, curator of the nation's premier property database, today released its Midyear 2018 U.S. Foreclosure Market Report, which shows a total of 362,275 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — in the first six months of 2018, down 15 percent from the same period a year ago and down 78 percent from a peak of 1,654,634 in the first six months of 2010. Counter to the national trend, 26 of the 219 metropolitan statistical areas analyzed in the report (12 percent) posted a year-over-year increase in foreclosure activity in the first six months of 2018, including Houston, Texas (up 10 percent); Dallas-Fort Worth, Texas (up 11 percent); Cleveland, Ohio (up 4 percent); Phoenix, Arizona (up 5 percent); and Indianapolis (up 2 percent). "Localized foreclosure flare-ups in the first half of 2018 can no longer be blamed on legacy distress left over from the last housing bubble given that nearly half of all active foreclosures are now tied to loans originated in 2009 or later and given that the average time to foreclose plummeted in the first two quarters of the year," said Daren Blomquist, senior vice president with ATTOM Data Solutions. "Instead these local foreclosure increases are typically the result of more recent distress triggers in those markets. "We're also seeing early evidence of gradually loosening lending standards starting in 2014, specifically for FHA-backed loans," Blomquist added. "The foreclosure rate on FHA loans originated in 2014 and 2015 has now jumped above the average FHA foreclosure rate for all loan vintages — the only two post-recession vintages with foreclosure rates above that overall average." New Jersey, Delaware, Maryland post highest state foreclosure rates Nationwide 0.27 percent of all housing units (one in every 370) had a foreclosure filing in the first six months of 2018. States with the highest foreclosure rates in the first half of 2018 were New Jersey (0.80 percent); Delaware (0.57 percent); Maryland (0.50 percent); Illinois (0.44 percent); and Connecticut (0.40 percent). Other states with first-half 2018 foreclosure rates among the 10 highest nationwide were South Carolina (0.39 percent); Ohio (0.37 percent); Nevada (0.37 percent); Florida (0.37 percent); and New Mexico (0.35 percent). Atlantic City, Trenton, Flint, with highest metro foreclosure rates Among 219 metropolitan statistical areas analyzed in the report, those with the highest foreclosure rates in the first half of 2018 were Atlantic City, New Jersey (1.48 percent of all housing units with a foreclosure filing); Trenton, New Jersey (0.96 percent); Flint, Michigan (0.95 percent); Philadelphia, Pennsylvania (0.64 percent); and Columbia, South Carolina (0.58 percent). Other metro areas with foreclosure rates ranking among the top 10 highest in the first half of 2018 were Cleveland, Ohio (0.58 percent); Albuquerque, New Mexico (0.55 percent); Rockford, Illinois (0.53 percent); Peoria, Illinois (0.52 percent); and Baltimore, Maryland (0.52 percent). Want to dive even deeper into where foreclosures are occurring? Check out this just released article on Top 10 Cities with the most foreclosure filing in 2018. First-half foreclosure starts down nationwide, up in 40 percent of local markets A total of 191,914 U.S. properties started the foreclosure process in the first six months of 2018, down 8 percent from the first half of 2017 and down 82 percent from a peak of 1,074,471 in the first half of 2009. Counter to the national trend, 22 states posted a year-over-year increase in foreclosure starts in the first half of 2018, including Texas (up 11 percent); Michigan (up 5 percent); Arizona (up 1 percent); Indiana (up 51 percent); and Tennessee (up 13 percent). Also counter to the national trend, 88 of the 219 metro areas analyzed in the report (40 percent) posted year-over-year increases in foreclosure starts in the first half of 2018, including Houston, Texas (up 25 percent); Dallas-Fort Worth, Texas (up 17 percent); Las Vegas, Nevada (up 7 percent); Detroit, Michigan (up 23 percent); and Minneapolis-St. Paul, Minnesota (up 50 percent). First-half bank repossessions down in all but one state A total of 133,290 U.S. properties were repossessed by lenders through foreclosure (REO) in the first half of 2018, down 21 percent from the first half of 2017 and down 75 percent from a peak of 529,633 in the first half of 2010. All but one state (New Mexico) posted a year-over-year decrease in REOs in the first half of 2018. Q2 2018 foreclosure activity below pre-recession levels in 55 percent of markets A total of 188,843 U.S. properties had a foreclosure filing in Q2 2018, down 1 percent from the previous quarter and down 14 percent from a year ago. The second quarter of 2018 was the seventh consecutive quarter in which U.S. foreclosure activity was below the pre-recession average of 278,912 properties with foreclosure filings per quarter in 2006 and 2007. Foreclosure activity in the second quarter of 2018 was below pre-recession averages in 121 of the 219 metropolitan statistical areas analyzed in the report (55 percent), including Los Angeles, California (56 percent below); Chicago, Illinois (25 percent below); Dallas-Fort Worth, Texas (75 percent below); Houston, Texas (37 percent below); and Miami, Florida (55 percent below). Counter to the national trend, 98 of the 219 metropolitan statistical areas analyzed in the report (45 percent) posted Q2 2018 foreclosure activity totals above their pre-recession averages, including New York-Newark-Jersey City (50 percent above); Philadelphia, Pennsylvania (42 percent above); Washington, D.C. (51 percent above); Boston, Massachusetts (19 percent above); and Baltimore, Maryland (235 percent above). Average foreclosure timeline decreases for second straight quarter Properties foreclosed in the second quarter of 2018 took an average of 720 days from the first public foreclosure notice to complete the foreclosure process, down from 791 days in the previous quarter and down from 883 days in the second quarter of 2017 — the second consecutive quarter with a year-over-year decrease and the shortest average foreclosure timeline since Q3 2016. States with the longest average foreclosure timelines for foreclosures completed in Q2 2018 were Hawaii (1,553 days), Florida (1,166 days), New Jersey (1,161 days), Utah (1,108 days), and Indiana (1,054 days). States with the shortest average foreclosure timelines for foreclosures completed in Q2 2018 were Arkansas (152 days), Virginia (169 days), New Hampshire (177 days), Mississippi (188 days), and Minnesota (222 days). About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, APIs, market trends, marketing lists, match & append and more.
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CoreLogic Loan Performance Insights Finds Declining Mortgage Delinquency Rates for April as States Impacted by 2017 Hurricanes Continue to Recover
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Affordability Moves Hot Markets Eastward from the West Coast
Midland, Texas retains hottest housing market title; possible Amazon HQ2 contenders take No. 2 and No. 3 spots SANTA CLARA, Calif., July 5, 2018 -- The nation's hottest markets are increasingly scattered throughout the country instead of dotted along its pricey western edge as more affordable markets move up the ranks, according to realtor.com®'s list of June's hottest housing markets. On average, markets in the top 20 hottest markets that have prices lower than realtor.com®'s national median list price of $299,000 jumped 12 ranking spots year-over-year. At the same time, California ended its historic streak of dominating the hotness list, dropping out of the top five rankings for the first time in six years. Midland, Texas, took the top spot for the second month in a row, followed by Columbus, Ohio and Boston -- which were both on the list of headquarters contenders announced by Amazon. In the hottest markets, homes continue to sell quickly. Age of inventory in the top 20 markets averaged only 34 days, faster than last June (36 days) with the typical age of inventory registering 40 days or less in each of the top 20 markets. Amid the most competitive home-buying season in history, buyers are increasingly gravitating toward less-expensive locales. According to realtor.com®'s June data, eight of the 20 hottest markets featured list prices that fell below June's median list price of $299,000. These markets saw the biggest upward movement on the list, while higher price markets did not see significant upward movement. "As the record pace of sales continues to challenge would-be homebuyers, the hottest market rankings show that buyers are looking for markets that offer relative affordability," said Danielle Hale, chief economist at realtor.com®. "In the three cities that were on Amazon's list of possible HQ2 contenders - Columbus, Ohio, Boston and Dallas - affordability isn't taking as big a hit as in other hot markets despite properties selling faster than just about everywhere else. This would change if Amazon were to come to town." In Columbus, prices stayed consistent year-over-year and, at $250,000, still remain below the typical U.S. median. Although Boston is pricey - the typical listing runs $529,000 – prices increased only 6 percent annually, compared to 9 percent for the U.S. as a whole. Finally, in Dallas, where listing prices are above the typical U.S. median at $356,000, the change in prices was also more manageable at just a 1 percent increase from last year. According to realtor.com®'s June housing data, the nation's inventory of active home listings decreased 4 percent on an annual basis, a slower rate than the 8 percent average decrease in the previous 12 months. Coupled with 547,000 new listings hitting the market in June, a 2 percent increase year-over-year, there is some relief to tight inventory conditions. But, with a record low of 54 days on market and a record high median listing price, the U.S. housing market will continue to be a challenge for buyers for the foreseeable future. Realtor.com® Hotness Index **Realtor.com® reviewed listing views by market as an indicator of demand and median days on market as an indicator of supply. This analysis led to the identification of the 20 hottest medium-sized to large markets in the country. About realtor.com® Realtor.com®, The Home of Home SearchSM, offers the most comprehensive source of for-sale MLS-listed properties, among competing national sites, and access to information, tools and professional expertise to help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today is the trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [NASDAQ: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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CoreLogic Reports May Home Prices Increased by 7.1 Percent, Consumers Express Desire to Buy Despite High Prices
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Pending Home Sales Inch Back 0.5 Percent in May
WASHINGTON (June 27, 2018) – Pending home sales decreased modestly in May and have now fallen on an annualized basis for the fifth straight month, according to the National Association of Realtors®. A larger decline in contract activity in the South offset gains in the Northeast, Midwest and West. The Pending Home Sales Index, a forward-looking indicator based on contract signings, decreased 0.5 percent to 105.9 in May from 106.4 in April. Lawrence Yun, NAR chief economist, says this year's spring buying season will go down as one of unmet expectations. "Pending home sales underperformed once again in May, declining for the second straight month and coming in at the second lowest level over the past year," he said. "Realtors® in most of the country continue to describe their markets as highly competitive and fast moving, but without enough new and existing inventory for sale, activity has essentially stalled." The lackluster spring, according to Yun, has primarily been a supply issue, and not one of weakening demand. If the recent slowdown in activity were because buyer interest is waning, price growth would start slowing, inventory would begin rising and homes would stay on the market longer. Instead, the underlying closing data in May showed that home price gains are still outpacing income growth, inventory declined on an annual basis for the 36th consecutive month, and listings typically went under contract in just over three weeks. "With the cost of buying a home getting more expensive, it's clear the summer months will be a true test for the housing market. One encouraging sign has been the increase in new home construction to a 10-year high," added Yun. "Several would-be buyers this spring were kept out of the market because of supply and affordability constraints. The healthy economy and job market should keep many of them actively looking to buy, and any rise in inventory would certainly help them find a home." Yun now forecasts for existing-home sales in 2018 to decrease 0.4 percent to 5.49 million – down from 5.51 million in 2017. The national median existing-home price is expected to increase around 5.0 percent. In 2017, existing sales increased 1.1 percent and prices rose 5.7 percent. The PHSI in the Northeast increased 2.0 percent to 92.4 in May, but is still 4.8 percent below a year ago. In the Midwest the index rose 2.9 percent to 101.4 in May, but is still 2.5 percent lower than May 2017. Pending home sales in the South declined 3.5 percent to an index of 122.9 in May (unchanged from a year ago). The index in the West inched forward 0.6 percent in May to 94.7, but is 4.1 percent below a year ago. The National Association of Realtors® is America's largest trade association, representing 1.3 million members involved in all aspects of the residential and commercial real estate industries.
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Median Listing Price for Homes Hits Record $299,000 in June; Days on Market Also At Record Low of 54 Days
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Redfin Housing Demand Index Up 7 Percent in May
Second Month of Increases in Newly Listed Homes a Positive Sign for Homebuyers SEATTLE, June 26, 2018 — The Redfin Housing Demand Index increased 7.4 percent month over month to 116 in May, according to Redfin, the next-generation real estate brokerage. The rise was driven by a 6.3 percent increase in the number of homebuyers requesting tours, and a 9.7 percent increase in the number making offers on homes from April to May. The Demand Index is based on thousands of Redfin customers requesting home tours and writing offers. The Demand Index is adjusted for Redfin's market share growth. A level of 100 represents the historical average for the three-year period from January 2013 to December 2015. Across the 15 metros covered by the Demand Index, this is the second-straight month new listings have increased. There were 6.6 percent more newly listed homes for sale in April compared to the same time last year, and 3.6 percent more new listings in May, compared to May 2017. Demand is still outstripping supply, however, and that is why total inventory is still decreasing. The total number of homes for sale was down 3.3 percent year over year in May. Despite the Demand Index's rebound from April to May, demand still appears lower than it was at this time last year. The Demand index was 7.5 percent lower in May 2018 than it was in May 2017. The same number of people were requesting home tours, but the number making offers fell 16.7 percent year over year. Again, this is an indication of a dearth of homes to make offers on, as opposed to consumers' desire to buy. "People listing their homes for sale in higher numbers this April and May is good news for buyers, and good news for home sales," said Redfin head of analytics Pete Ziemkiewicz. "But it's still not enough to satisfy buyer demand, which means price increases will likely continue." To read the full report, including metro-level demand charts, click here. About Redfin Redfin is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $60 billion in home sales.
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U.S. Home Prices at Least Affordable Level Since Q3 2008
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Existing-Home Sales Backpedal, Decrease 0.4 Percent in May
WASHINGTON (June 20, 2018) – Existing-home sales fell back for the second straight month in May, as only the Northeast region saw an uptick in activity, according to the National Association of Realtors®. Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, decreased 0.4 percent to a seasonally adjusted annual rate of 5.43 million in May from downwardly revised 5.45 million in April. With last month's decline, sales are now 3.0 percent below a year ago and have fallen year-over-year for three straight months. Lawrence Yun, NAR chief economist, says a solid economy and job market should be generating a much stronger sales pace than what has been seen so far this year. "Closings were down in a majority of the country last month and declined on an annual basis in each major region," he said. "Incredibly low supply continues to be the primary impediment to more sales, but there's no question the combination of higher prices and mortgage rates are pinching the budgets of prospective buyers, and ultimately keeping some from reaching the market." The median existing-home price for all housing types in May was $264,800, an all-time high and up 4.9 percent from May 2017 ($252,500). May's price increase marks the 75th straight month of year-over-year gains. Total housing inventory at the end of May climbed 2.8 percent to 1.85 million existing homes available for sale, but is still 6.1 percent lower than a year ago (1.97 million) and has fallen year-over-year for 36 consecutive months. Unsold inventory is at a 4.1-month supply at the current sales pace (4.2 months a year ago). Properties typically stayed on the market for 26 days in May, unchanged from April and down from 27 days a year ago. Fifty-eight percent of homes sold in May were on the market for less than a month. "Inventory coming onto the market during this year's spring buying season – as evidenced again by last month's weak reading – was not even close to being enough to satisfy demand," added Yun. "That is why home prices keep outpacing incomes and listings are going under contract in less than a month – and much faster – in many parts of the country." Realtor.com®'s Market Hotness Index, measuring time-on-the-market data and listings views per property, revealed that the hottest metro areas in May were Midland, Texas; Boston-Cambridge-Newton, Mass.; San Francisco-Oakland-Hayward, Calif.; Columbus, Ohio; and Vallejo-Fairfield, Calif. According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage increased for the seventh straight month to 4.59 percent in May (highest since 4.64 percent in May 2011) from 4.47 percent in April. The average commitment rate for all of 2017 was 3.99 percent. "The abrupt hike in mortgage rates this spring, along with price appreciation and competition being the strongest in the entry-level part of the market, is why first-time buyers are not as active as they should be and their participation remains below its historical average," said Yun. First-time buyers were 31 percent of sales in May, which is down from 33 percent both last month and a year ago. NAR's 2017 Profile of Home Buyers and Sellers – released in late 2017 – revealed that the annual share of first-time buyers was 34 percent. "Realtors® in many parts of the country say their seller clients are dealing with a seesaw of emotions when deciding to put their home on the market," said NAR President Elizabeth Mendenhall, a sixth-generation Realtor® from Columbia, Missouri and CEO of RE/MAX Boone Realty. "While they're thrilled that they will immediately find multiple buyers interested in their listing, many fear they'll have extreme difficulty finding another home to buy. Some have even decided to hold off until inventory conditions start improving, which is actually only exacerbating supply shortages." All-cash sales were 21 percent of transactions in May, which is unchanged from April and down from 22 percent a year ago. Individual investors, who account for many cash sales, purchased 15 percent of homes in May, unchanged from last month and down from 16 percent a year ago. Distressed sales – foreclosures and short sales – were 3 percent of sales in May (lowest since NAR began tracking in October 2008), down from 4 percent last month and 5 percent a year ago. Two percent of May sales were foreclosures and 1 percent were short sales. Single-family and Condo/Co-op Sales Single-family home sales declined 0.6 percent to a seasonally adjusted annual rate of 4.81 million in May from 4.84 million in April, and are 3.0 percent below the 4.96 million sales pace a year ago. The median existing single-family home price was $267,500 in May, up 5.2 percent from May 2017. Existing condominium and co-op sales increased 1.6 percent to a seasonally adjusted annual rate of 620,000 units in May, but are still 3.1 percent below a year ago. The median existing condo price was $244,100 in May, which is 2.5 percent above a year ago. Regional Breakdown May existing-home sales in the Northeast increased 4.6 percent to an annual rate of 680,000, and but are 11.7 percent below a year ago. The median price in the Northeast was $275,900, which is down 1.8 percent from May 2017. In the Midwest, existing-home sales declined 2.3 percent to an annual rate of 1.26 million in May, and are now 2.3 percent below a year ago. The median price in the Midwest was $209,900, up 4.2 percent from a year ago. Existing-home sales in the South inched backward 0.4 percent to an annual rate of 2.32 million in May, and are unchanged from a year ago. The median price in the South was $233,100, up 4.5 percent from a year ago.
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May Real Estate Market the Fastest on Record; Prices Up 6.3 Percent
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Buyers from the North Drive Florida to Top of Fastest-Growing Luxury Markets
Realtor.com® data reveals luxury prices in Chicago, Boston, Brooklyn, and Manhattan, N.Y. stall SANTA CLARA, Calif., June 14, 2018 -- Interest from prospective home buyers in Northern states have propelled two Florida counties -- Sarasota and Collier -- to the top of the nation's fastest-growing luxury housing markets, according to the May 2018 Luxury Home Index from realtor.com®, The Home of Home Search. In May, the top 5 percent most expensive home prices in Sarasota (North Port) and Collier (East Naples) counties grew 19 and 14 percent, respectively. Additionally, Broward County, Fla. -- home to Fort Lauderdale and ranked No. 19 on the list -- grew 9 percent year-over-year. Much of this growth is attributed to increased interest from buyers located in New York, Boston and Chicago – markets where, in many cases, luxury prices have stalled, according to realtor.com® search data. "Luxury prices in the Sunshine State are rising quickly as buyers from places like New York, Boston, and Chicago get wind that there is a better bang for their buck available down South," said Javier Vivas, director of economic research for realtor.com®. "Meanwhile, we are seeing signs of a luxury market glut in many established markets, which is in some cases leading to spillover demand for their less pricey neighbors." May 2018 Top 10 Fastest Growing Luxury Markets Source: Realtor.com® Luxury Home Index with data as of March 2018. The realtor.com® luxury home index is based on a 12-month moving average of sales prices and measures price growth using January 2011 as the base. Luxury Home Prices in Boston, Chicago, and New York Continue to Slow While buyers in New York, Boston, and Chicago may be driving growth in places like Florida, luxury prices within those markets themselves have stalled. In Boston's Suffolk County, Chicago's Cook County, and New York's Manhattan and Suffolk counties, for instance, over the past year luxury home prices decreased 2.7, 2.2, and 2.1 and 1.3 percent, respectively. In Middlesex County (Cambridge, Mass.) and Kings County (Brooklyn, N.Y.), prices decreased 1.4 and 2.4 percent, respectively, in just the past month alone. In New York, in particular, realtor.com® search data shows demand for luxury homes in Manhattan and Brooklyn, where luxury prices have stalled at $4.6 and $2.2 million, respectively, also appears to be spilling rapidly into the lower-priced adjacent markets of Queens, N.Y. and Hudson County (Jersey City, N.J.). Luxury prices in those counties have grown at 15 and 12 percent in the past year, respectively, reaching $1.2 and $1.3 million. Western Luxury Markets Continue to Grow In addition to the rising interest in Florida, Northern California, Colorado, and Washington continue to dominate the top 20 fastest growing luxury markets, with double-digit yearly growth in luxury prices. Three California Bay Area markets -- San Mateo County (Redwood City), Marin County (San Rafael), and Santa Clara County (San Jose) -- remain among the top five most expensive luxury markets in the country, with entry points between $2.7 and 3.5 million. Most notably, these three markets are also among top 10 fastest-growing markets, with luxury prices continuing to accelerate and now rising at 12-13 percent year-over-year. Primary and secondary luxury markets in Colorado continue to attract buyers and grow faster than the rest of the country, with entry-level luxury prices in Douglas County (Castle Rock, Colo.); Jefferson County (Golden, Colo.); Denver County and Boulder County all posting double-digit yearly growth. Similarly, the Seattle area continues to see strong demand for luxury homes, with entry-level luxury prices in Seattle and Snohomish, Wash., growing at 12 to 13 percent year-over-year. Luxury homes in these Northwest markets remain relatively affordable for West Coast standards, making them an attractive option for upscale buyers in Southern states. Methodology Realtor.com analyzed 89 primary and secondary luxury counties, looking at yearly movement in the entry level luxury price boundary, defined as the top 5 percent of all residential home sales in a given market per the realtor.com sales database with full data up until March 2018. The following markets were excluded from rankings this month as we review their data: Honolulu, Hawaii; Fairfield, Conn.; Nassau, N.Y.; Washoe, Nev.; St. Louis; and Dallas. About realtor.com® Realtor.com®, The Home of Home Search℠, offers the most comprehensive source of for-sale MLS-listed properties, among competing national sites, and access to the information, tools and professional expertise to help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today is the trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [NASDAQ: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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