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Bidding Wars Fell to New 8-Year Low in August with 10% of Redfin Offers Facing Competition
San Francisco, San Diego and Las Vegas were the most competitive housing markets in August, but local buyers were far less likely to face a bidding war than last summer SEATTLE, Sept. 4, 2019 -- 10.4 percent of offers written by Redfin agents on behalf of their homebuying customers faced a bidding war in August, down from more than 42 percent a year earlier, according to a new report from Redfin, the technology-powered real estate brokerage. August's bidding-war rate overtakes July's 11.4 percent rate as the lowest on record since at least 2011. The national bidding war rate reached a high of 59 percent in March 2018 before starting to drop as homebuyers reached their limit with sky-high housing prices and rising mortgage rates. "Despite remaining near three-year lows, mortgage rates have failed to bring enough buyers to the market to rev up competition for homes this summer," said Redfin chief economist Daryl Fairweather. "Recession fears have been enough to spook some would-be buyers from making the big financial commitment of a home purchase. But assuming a recession doesn't arrive this fall or winter, consumers will likely adjust to the new 'normal' of continued volatility in the stock and global markets, and the people who need and want to make a move will take advantage of low mortgage rates. As a result, I still expect homebuying competition to pick back up in the new year." The San Francisco metro was the most competitive market in August, with 31 percent of offers written by Redfin agents on behalf of their homebuying customers facing a bidding war. But even though that's more competitive than every other major market in the U.S., the local bidding war rate is down from 73.5 percent a year earlier and down slightly from 31.8 percent in July. San Francisco is followed by fellow California metro San Diego, which saw an 18.4 percent bidding war rate. Then come Las Vegas (17.1%), Boston (15%) and Los Angeles (14.4%). The rate in San Jose was 10.3 percent, down from 77 percent a year earlier, and in Seattle, another expensive West Coast metro, it was 9.4 percent, a big year-over-year dip from 37.8 percent in August 2018. "Competition in the Seattle area has certainly slowed down since the second half of 2018. Last year, five out of five offers I submitted faced competition; now, it's one in five," said local Redfin agent Michelle Santos. "Now, for desirable homes, competition is still fierce, and the winning offer is one that's above the list price and waives contingencies. At the same time, average homes sit on the market for quite some time before they get any offers." Atlanta led the pack of least competitive markets, with just 2.4 percent of the offers submitted by Redfin agents in August facing competition. It's followed by Miami (3.1%), Raleigh (4.2%), Philadelphia (4.3%) and Chicago (5%). To read the full report, please visit: https://www.redfin.com/blog/august-2019-real-estate-bidding-wars About Redfin Redfin is a 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 90 major metro areas across the U.S. and Canada. The company has helped customers buy or sell homes worth more than $85 billion.
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RE/MAX Results Launches Buyside, Arming Agents with Real-time Buyer Demand Insights
The largest RE/MAX franchise in the country partners with Buyside, becoming the first brokerage to bring real-time buyer demand insights to Minnesota & Western Wisconsin PHILADELPHIA, PA, April 10, 2019 -- RE/MAX Results, the largest and most productive RE/MAX franchise in the country by transaction sides, announced a company-wide launch of Buyside, a groundbreaking new platform providing its sales professionals and their customers unprecedented insight into the buyer demand in their marketplace. The platform aggregates buyer activity in real-time across major real estate search portals, leading brokerage websites and other platforms, helping reveal prospective buyers for a specific home. "RE/MAX Results has a longstanding history of providing the very best marketing & technology tools to support our sales associates. We continue to deliver on that promise, being the first brokerage in our market to arm our sales associates with Buyside, a platform that provides valuable intel about what's going on in the market and helps us successfully connect more home-buyers and sellers," said Brenda Tushaus, CEO of RE/MAX Results. The partnership between Buyside and RE/MAX Results will help its 1,100+ sales professionals connect with more prospective home sellers by providing insight into the number of buyers actively searching for a home just like theirs. This intel will help RE/MAX Results agents determine optimal pricing for the property and after being listed for sale, automatically connect them to agents within their network who have a matching buyer for the home. "We're thrilled to be working with RE/MAX Results," said Alissa Harper, VP of Growth at Buyside. "Our partnership provides their sales professionals with a considerable advantage in their market and an innovative new way to best serve their customers." Buyside's core products include Home Valuation Sites which allow homeowners to understand the approximate value of their home using multiple automated valuations, as well as insight into the real-time buyer demand in their market. A Buyer Market Analysis report from Buyside which helps listing agents navigate pricing scenarios with prospective sellers while showcasing a list of matching buyers available for the home. Lastly, the back-end matching platform from Buyside intelligently connects listings agents with buyers agents who are a match for the property - ensuring more targeted marketing of the home and a quicker sale. About Buyside Buyside is a data analytics & marketing company on a mission to help real estate brokers profit from their largest untapped asset: data. Buyside aggregates buyer activity from a variety of sources, using it to power actionable insights and intelligent marketing tools that help brokers: generate and capture seller leads, win more listings, and close more transaction sides in house. For more information, visit http://getbuyside.com. About RE/MAX Results RE/MAX Results operates out of the Twin Cities, St. Cloud, Rochester, Duluth/Superior, Mankato, and western Wisconsin markets. Based upon the principles of entrepreneurship and customer service, RE/MAX Results has grown to 38 offices and more than 1,100 Sales Executives, making it the largest and most productive RE/MAX franchise in the United States. For over 30 years, RE/MAX Results has been leading the way with the highest producing sales executives in the country. RE/MAX Results is committed to selecting the most capable people in real estate—providing the best, most streamlined operational infrastructure, management by participation, and the highest standards of professionalism in the industry. For more information, visit results.net.
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RE/MAX Results Launches Buyside, Arming Agents with Real-time Buyer Demand Insights
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Inside Real Estate's kvCORE Platform Adds Robust Business Analytics to Help Real Estate Businesses Drive Bottom Line Results
The latest technology enhancements to kvCORE Platform aligns with successful SaaS platforms in other technologically advanced industries Mar 19, 2019, Draper, Utah. – Leading broker platform kvCORE continues to elevate the sophistication of real estate technology by improving their comprehensive Business Analytics. These tools provide brokers, teams, and agents with in-depth visibility into their business pipeline, allowing them to see the overall health of their business at a glance with complete clarity. Inside Real Estate was one of the first tech providers in the industry to offer end-to-end business analytics, and the latest enhancements allow for even more detailed analysis. Comprehensive dashboards allow users to view overall business performance, lead generation analytics, agent accountability stats, and engagement details for each lead. "For the majority of the real estate industry, broad analytics offering visibility into the health of their business have not been available," says Nick Macey, Chief Product Officer for Inside Real Estate. "Every business needs this data, at every level of the organization, to make smart decisions about the best ways to drive growth. Our new Business Analytics dashboard, which allows the users to see data at the company level, office level, team level, and agent level, will no doubt aid in kvCORE user's efforts to drive bottom-line results in everything they do." JP & Associates REALTORS® are using kvCORE's Business Analytics to make data-driven decisions. "The insights gained by this data enable our agents to stay focused on activities that drive sales success," says Derek Taylor, Director of Technology at JP and Associates. "I believe this will help us achieve yet another competitive advantage in the market, and continue to further our core values – developing agents who sell more real estate and deliver the highest client satisfaction. No broker in our area can compete with the support that we give to our agents and the technical advantage that we offer." kvCORE's new Business Analytics feature is comprised of five main components: 1. Pipeline The Pipeline analytics offers at-a-glance insights into the overall health of the business and highlights areas that need improvement. The flexibility of the system allows each user to have a personalized view of the pipeline, whether a broker, team leader or individual agent. It also allows office managers and marketing managers to support agents by identifying opportunities to improve each stage of the pipeline. Do they know enough people? Are they generating enough leads? Do they have too many deals under contract? This data is key to helping drive higher agent productivity. 2. Source Performance To develop an effective marketing pipeline, it's critical to know where leads originate from and to understand what drives conversions. With detailed source performance data, kvCORE users can see, in real time, where leads are coming from, which marketing campaigns are working, and which ones are falling flat. Performance data can be filtered by time span, source, and so on – giving users the ability to drill down into every campaign from multiple angles. Source performance data also extends to individual contact files, allowing agents to see what triggered each point of engagement with a lead. By understanding what works, brokerages, teams, and agents can replicate effective efforts and increase their overall lead conversion. 3. kvCORE Activity kvCORE Platform uses behavior tracking, artificial intelligence, and powerful automation to drive sophisticated lead nurture campaigns. kvCORE Activity allows agents to quickly see what nurture activities are being automated on their behalf, as well as their level of engagement with each lead. Having unrestricted access to a real-time log of every lead touch point is unique to the kvCORE system; competitors often obscure or hide this information. The kvCORE Activity dashboard pulls back the curtain on client engagement to help agents strategize proactively, highlighting hot prospects with high engagement as well as pointing to areas where there are under-engaged leads or contacts. The kvCORE Activity dashboard displays search and behavior alerts, smart campaign stats, call, text, and email insights, and property view data. Having access to the analytics provided by kvCORE Activity is like having a personal assistant built into your back office. 4. Consumer Interest The Consumer Interest dashboard arms agents, teams, and brokers with intel that gives them a big advantage over competitors. To connect with and convert leads, you need to understand what's driving the most interest from consumers. The Consumer Interest dashboard answers that question by providing details on which properties get the most views, what zip codes and neighborhoods are most popular right now, and what price ranges are entered most frequently on property search pages. Instant access to these analytics helps brokers, teams, and agents react to market shifts quickly, which leads to better customer service and higher productivity across the organization. 5. Agent Performance Job performance is typically tracked using key performance indicator metrics, but most real estate platforms don't offer brokers visibility into agent metrics. The inability to track agent accountability when it comes to lead follow-up is a widely shared pain point among broker-owners because poor follow-up means lost sales and less business. The Agent Performance dashboard is the solution to this long-time problem. Brokers get access to reports and a dashboard, based on a predetermined set of rules, that show how effectively their agents are following up with leads. Because kvCORE caters to the unique needs of teams, these rules can be enabled at both the office and team level. "These insights give brokers and teams critical data about agent performance and additional control over how to best route their leads", says Ken Katschke, VP of Product Development for Inside Real Estate. "Stellar lead follow-up can truly set an agent apart, and these reports enable brokers and team leads to ensure every lead is handled in the best possible way." To learn more about Inside Real Estate and the kvCORE Platform, visit insiderealestate.com. About Inside Real Estate Inside Real Estate is among the fastest growing real estate software companies in the industry and serves over 150,000 agents, teams, and brokers throughout the U.S. and Canada. The company is the developer of the kvCORE Platform, the only comprehensive brokerage platform that singlehandedly serves the needs of the broker, office manager, team lead and agent. To cater to the unique needs of every business, 50+ deep integrations and vetted partner solutions are available to platform users through the Marketplace, the cloud-based integration center for Inside Real Estate. For standalone teams with brokerages not supported by kvCORE, the k+ TEAM Platform is available with features designed specifically for the team business model. To learn more about Inside Real Estate solutions, visit insiderealestate.com.
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Introducing Secrets to Success Using Market Analytics
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CoreLogic Reports National Rent Growth Remains Steady As Home Price Growth Slows
US single-family rent prices increased 2.9 percent year over year in November 2018 CoreLogic, a leading global property information, analytics and data-enabled solutions provider, today released its latest Single-Family Rent Index (SFRI), which analyzes single-family rent price changes nationally and among 20 metropolitan areas. Data collected for November 2018 shows a national rent increase of 2.9 percent, compared to 2.8 percent in November 2017. Low rental home inventory, relative to demand, fuels the growth of single-family rent prices. The SFRI shows single-family rent prices have climbed between 2010 and 2018. However, year-over-year rent price increases have slowed since February 2016, when they peaked at 4.2 percent, and have stabilized over the last year with a monthly average of 2.9 percent. National rent growth continued to be propped up by low-end rentals in November 2018. Rent prices among this tier, defined as properties with rent prices less than 75 percent of the regional median, increased 3.8 percent year over year in November 2018, down slightly from the 3.9 percent increase experienced in November 2017. Meanwhile, high-end rentals, defined as properties with rent prices greater than 125 percent of a region's median rent, increased 2.6 percent in November 2018, up from 2.3 percent in November 2017. Among the 20 metro areas shown in Table 1, Las Vegas had the highest year-over-year increase in single-family rents in November 2018 at 6.7 percent (compared with November 2017), followed closely by Phoenix at 6.1 percent. Orlando experienced the third highest year-over-year rent increase at 5.3 percent. Seattle was the only metro to experience decreasing rent prices in November 2018 with a 0.7 percent year-over-year decline. This is the first time since May 2010 that rent prices in Seattle have stopped increasing, signaling a potential market stabilization. Metro areas with limited new construction, low rental vacancies and strong local economies that attract new employees tend to have stronger rent growth. Both Orlando and Phoenix experienced high year-over-year rent growth in November 2018, driven by employment growth of 4.8 percent and 4.2 percent year over year, respectively. This is compared with the national employment growth average of 1.6 percent, according to data from the United States Bureau of Labor Statistics. Rent prices in disaster-affected areas like Houston have continued to increase throughout 2018. However, year-over-year growth in Houston stalled at 1 percent in November 2018, down from 2.4 the previous year. This is the lowest year-over-year rent price increase for Houston since October 2017, when the metro saw its first increase since April 2016. "Unlike the CoreLogic Home Price Index, which has seen a slowdown in growth over the past year, U.S. rent growth has remained stable," said Molly Boesel, principal economist at CoreLogic. "However, long-term rent increases have been lower than long-term home price increases. For example, rent prices increased 17 percent over the past five years, compared with a 32 percent increase in home prices over the same period. Additionally, lower-priced rentals and homes increase 1 ½ to 2 times faster than higher-priced rentals and homes. These lopsided gains between price tiers are common." Methodology The single-family rental market accounts for half of the rental housing stock, yet unlike the multifamily market, which has many different sources of rent data, there are minimal quality adjusted single-family rent transaction data. The CoreLogic Single-Family Rent Index (SFRI) serves to fill that void by applying a repeat pairing methodology to single-family rental listing data in the Multiple Listing Service. CoreLogic constructed the SFRI for over 70 Core Based Statistical Areas (CBSAs)—including 40 CBSAs with four value tiers—and a national composite index. 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 and 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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Lovell Minnick Partners Acquires ATTOM Data Solutions, Leading Provider of Real Estate Data and Analytics
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CoreLogic Loan Performance Insights Finds Declining Mortgage Delinquency Rates for April as States Impacted by 2017 Hurricanes Continue to Recover
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, 4.2 percent of mortgages were in some stage of delinquency (30 days or more past due, including those in foreclosure) in April 2018, representing a 0.6 percentage point decline in the overall delinquency rate compared with April 2017, when it was 4.8 percent. As of April 2018, the foreclosure inventory rate – which measures the share of mortgages in some stage of the foreclosure process – was 0.6 percent, down 0.1 percentage points from 0.7 percent in April 2017. Since August 2017, the foreclosure inventory rate has been steady at 0.6 percent, the lowest level since June 2007, when it was also 0.6 percent. The April 2018 foreclosure inventory rate was the lowest for that month in 11 years; it was also 0.6 percent in April 2007. 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 1.8 percent in April 2018, down from 2.2 in April 2017. The share of mortgages that were 60 to 89 days past due in April 2018 was 0.6 percent, unchanged from April 2017. The serious delinquency rate – defined as 90 days or more past due, including loans in foreclosure – was 1.9 percent in April 2018, down from 2.0 percent in April 2017. The April 2018 serious delinquency rate was the lowest for that month since 2007 when it was 1.6 percent. "Job growth, home-price appreciation, and full-doc underwriting have pushed delinquency and foreclosure rates to the lowest point in more than a decade," said Dr. Frank Nothaft, chief economist for CoreLogic. "The latest CoreLogic Home Price Index report revealed the annual national home price growth was 7.1 percent in May, the fastest annual growth in four years. U.S. employers have also continued to employ more individuals, as employment rose by 2.4 million throughout the last 12 months with 213,000 jobs added last month alone. Together, this heightened financial stability is pushing delinquency and foreclosure rates to record lows." 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 April 2018, down from 1.2 percent in April 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. As a result of the 2017 hurricane season, Florida and Texas are the only states showing significant gains in 90-day delinquency rates. According to the CoreLogic Storm Surge Report, Florida has the most densely populated and longest coastal area and thus the most exposure to storm surge flooding (compared to the 19 states analyzed in the report) with more than 2.7 million at-risk homes across five risk categories (Category 1 – Category 5 storms). Louisiana ranks second with more than 817,000 at-risk homes, while Texas ranks third with more than 543,000 at-risk homes. A major storm did not strike Louisiana in 2017, but Florida and Texas are still recovering from Hurricanes Irma and Harvey, respectively. "Delinquency rates are nearing historic lows, except in areas impacted by extreme weather over the past 18 months, reflecting a long period of strict underwriting practices and improved economic conditions," said Frank Martell, president and CEO of CoreLogic. "Last year's hurricanes and wildfires continue to affect today's default rates. The percent of loans 90 days or more delinquent or in foreclosure are more than double what they were before last autumn's hurricanes in Houston, Texas and Naples, Florida. The 90-day-plus delinquent or in-foreclosure rate has also quadrupled in Puerto Rico." 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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Affordability Moves Hot Markets Eastward from the West Coast
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CoreLogic Reports May Home Prices Increased by 7.1 Percent, Consumers Express Desire to Buy Despite High Prices
CoreLogic, a leading global property information, analytics and data-enabled solutions provider, today released the CoreLogic Home Price Index (HPI™) and HPI Forecast™ for May 2018, which shows home prices rose both year over year and month over month. Home prices increased nationally by 7.1 percent year over year from May 2017 to May 2018. On a month-over-month basis, prices increased by 1.1 percent in May 2018 – compared with April 2018 – according to the CoreLogic HPI. (April 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 May 2018 to May 2019. On a month-over-month basis, home prices are expected to rise 0.3 percent in June 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 lean supply of homes for sale is leading to higher sales prices and fewer days on market, and the supply shortage is more acute for entry-level homes," said Dr. Frank Nothaft, chief economist for CoreLogic. "During the first quarter, we found that about 50 percent of all existing homeowners had a mortgage rate of 3.75 percent or less. May's mortgage rates averaged a seven-year high of 4.6 percent, with an increasing number of homeowners keeping the low-rate loans they currently have, rather than sell and buy another home that would carry a higher interest rate." 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 found that 40 percent of metropolitan areas have an overvalued housing market as of May 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 May 2018, 26 percent of the top 100 metropolitan areas were undervalued and 34 percent were at value. When looking at only the top 50 markets based on housing stock, 52 percent were overvalued, 14 percent were undervalued and 34 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 homebuying or renting decision process. Across the U.S., 15 percent of homeowners and 28 percent of renters have indicated a desire to buy a home in the next 12 months, while only 11 percent have indicated a desire to sell. The research reported the long-term desire for homeownership is much stronger among renters in markets that have the highest home-price growth. Lagging supply in these markets is likely to continue as fewer current homeowners are considering putting their homes on the market. Over the next 12 months, 41 percent of renters are considering buying while only 11 percent of homeowners are considering selling over that same period. That is nearly four times as many renters than homeowners, which is the crux of the available housing-supply imbalance. "The CoreLogic consumer research demonstrates that, despite high home prices, renters want to get out of their rental property and purchase a home," said Frank Martell, president and CEO of CoreLogic. "Even in the most expensive markets, we found four times as many renters looking to buy than homeowners willing to sell. Until more supply becomes available, we will continue to see soaring prices in cities such as Denver, San Francisco and Seattle." 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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Pending Home Sales Inch Back 0.5 Percent in May
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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
SANTA CLARA, Calif., June 27, 2018 -- U.S. homes sold in just 54 days on average in June and the median listing price hit $299,000, setting records as the nation's inventory of active home listings continued to decline year-over-year in June, according to the realtor.com® June 2018 monthly housing trend report. Limited options, fast selling properties and escalating home prices have been a persistent challenge for would-be buyers and June data largely shows more of the same. The inventory of homes for sale in the U.S. grew 4 percent in June over May, representing a typical seasonal increase. On an annual basis, inventory decreased 4 percent, a slower rate than the 8 percent average decrease in the previous 12 months. Approximately 547,000 new listings appeared on realtor.com® in June, 2 percent higher than a year ago. This provided some relief to tight inventory conditions despite new listings dipping 2 percent lower than May 2018. Listings on realtor.com® sold in just 54 days on average, six days less (10 percent faster) than last June and one day less than May. Of the top 100 markets, there are six in which listings spent 30 days or less on the market on average: San Jose-Sunnyvale-Santa Clara, Calif.: 23 days on market Seattle-Tacoma-Bellevue, Wash.: 24 days on market San Francisco-Oakland-Hayward, Calif.: 25 days on market Omaha-Council Bluffs, Neb.: 26 days on market Salt Lake City, Utah: 26 days on market Colorado Springs, Colo.: 30 days on market "The pace of sales in the early days of summer continues to be as fierce and unforgiving as it's ever been, especially for entry-level buyers," said Javier Vivas, director of economic research for realtor.com®. "On the bright side, buyers saw more new listings hit the market than they saw last June, causing inventory to drop at a slower rate. However, much of the new inventory is composed of higher-priced, newer and larger homes, forcing a very hungry pool of buyers to adjust their budgets." The median listing price of $299,000 is the highest recorded price point since realtor.com®'s inventory data series began in early 2012. Listing prices increased 9 percent year-over-year and show no signs of slowing down, increasing an average of 9 percent year-over-year for the last 12 months. Offering the most comprehensive source of information about for-sale MLS-listed properties, among competing national portals, realtor.com® tracks national housing trends as well as data for the 500 largest U.S. metros. For June trend data on these markets as well other housing trend data, please visit: https://realtor.com/research/data 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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ATTOM Data Solutions and AVM Analytics Launch New Lender-Grade AVM Available for 80 Million U.S. Homes
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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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EXIT Realty Enhances Its Analytics and Marketing Suite by Adding SmartZip's Data-Driven Predictive Marketing and Referral Solutions Platform
Adding SmartTargeting to EXIT's Premier Partner Program gives agents a big edge in a highly competitive listings market JUNE 14, 2018 - SmartZip, the pioneer in predictive analytics and data-driven marketing automation solutions for the real estate ecosystem, announced a strategic partnership with EXIT Realty Corp. International that provides EXIT brokers, teams and agents preferred access to SmartZip's full suite of seller prospecting and marketing automation tools. EXIT Realty offices nationwide will have access to SmartTargeting's powerful home seller analytics and targeted, turnkey marketing automation that will help them accelerate their listing wins, build their online brand, and amplify their recruiting, rebranding and retention efforts. SmartTargeting combines data-driven marketing automation, lead qualification and nurturing, and referral management in a single platform to help agents proactively identify and connect with the best home seller prospects within their own database and/or in any neighborhood across the United States early in the process and before the competition. "We are proud to join the EXIT Realty Premier Partner Program," said Avi Gupta, President, and CEO at SmartZip. "We have long been impressed by EXIT's commitment to innovation and building the most productively successful real estate organization, which has helped make them the prominent brand they are today and a perfect fit for SmartTargeting. Our proven and effective all-in-one multi-channel prospecting solution helps agents focus their time and attention to building more relevant and meaningful customer relationships that ultimately turn into more transactions, especially on the sell-side." EXIT Realty will be rolling out SmartTargeting, as part of a beta program with six brokers over the coming weeks. With full support from SmartZip's client success team including personalized onboarding, outreach, instructional live and recorded webinar services as well as phone, email and live chat support, agents within these brokerages will be well-equipped to implement the program into their existing prospecting systems and do what they do best – build relationships with the right homeowners and help them achieve their homeownership dreams. "At EXIT Realty, we believe in using technology as a tool to build solid relationships with our clients. Predictive analytics help to target the people most likely to sell, and powerful tools such as those offered by SmartZip help our agents to maximize on those opportunities. We're delighted to welcome SmartZip as an EXIT Realty Premier Partner," said Tami Bonnell, CEO, EXIT Realty Corp. International. To learn more about how SmartTargeting can help real estate agents and brokers accelerate their listing wins, visit SmartZip at http://www.smartzip.com. About EXIT Realty EXIT Realty is a proven real estate business model that has to-date paid out more than a third of a billion dollars in single-level residual income to its associates across the U.S. and Canada. EXIT Realty's Expert Marketing Suite™ including geolocation Smart Sign™ technology gives home sellers the edge in a competitive marketplace. The company's Focus on Good Health initiative promotes wellness at work and home. A portion of every transaction fee collected by EXIT Realty Corp. International is applied to its charitable fund and to-date, $4 million has been pledged to charity. For more information, please visit http://www.exitrealty.com. About SmartZip Analytics, Inc. SmartZip Analytics is a pioneering leader in predictive marketing solutions for the real estate ecosystem. Its SmartTargeting platform uses patent-pending predictive analytics, multi-channel marketing automation, testimonial management and mobile prospecting tools to identify top home seller prospects, engage them with targeted marketing, grow their online reputation and ultimately close more business faster. SmartZip's Pre-Mover Scores – with proven accuracy over the last seven years – apply several hundred hyper-local predictive models to thousands of data points on homes, homeowners and their neighborhoods to flag future home transactions within any neighborhood across the United States or in a user's own database. These analytics power SmartZip's all-in-one data-driven marketing automation system to enable real estate and mortgage companies and professionals to accelerate their business through a targeted and systematic acquisition of new, repeat and referral customers. SmartZip is venture-backed by leading investors, including Intel Capital, and is headquartered in the Silicon Valley in Pleasanton, CA.
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Move Over California -- Midland, Texas is the Hottest Market in America
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Housing Prices Hit New Highs, but Show Signs of Deceleration, Realtor.com May Housing Data Indicates
SANTA CLARA, Calif., May 30, 2018 -- U.S. home prices hit an all-time high of $297,000 and sold faster than ever before in May – in a mere 55 days – but the market also showed hints of slowed momentum, according to the realtor.com® May 2018 monthly housing trend report. Realtor.com® data showed inventory declined 6 percent year over year in May and increased 6 percent compared to April 2018. Median listing prices only grew 8 percent year over year for the third month in a row, down from 10 percent in February. Part of this deceleration can be attributed to 557,000 new listings hitting the market in May, the highest number since July 2015. According to Javier Vivas, director of economic research for realtor.com®: We're in the thick of the hottest home-buying season of all time. The pace of U.S. home sales has officially reached a seasonal and historical high, but we're also beginning to see slight signs of deceleration. As more and more new listings come onto the market, inventory declines are starting to lose momentum. On the surface, this offers a glimmer of hope to homebuyers and, if sustained, could plug the supply leak. However, total listing volume remains highly dependent on new construction, much of which is still out of the price range of first time buyers – the largest segment of buyers. Even as inventory recovers, the mix of what's available versus what shoppers are looking for could become an even more pronounced mismatch. Unfortunately for buyers, median list prices continue to show strong yearly growth and fail to hint that home values will stall any time soon. Offering the most comprehensive source of information for-sale MLS-listed properties, realtor.com®'s tracks national housing trends as well as data for the 500 largest U.S. metros. For May trend data on these markets as well other housing trend data, please visit: https://realtor.com/research/data 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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Existing-Home Sales Slide 2.5 Percent in April
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Realtors Say Commercial Market on the Upswing, Construction Activity Sluggish
WASHINGTON (May 18, 2018) - A strengthening economy and job growth nearing historic levels have given Realtors® confidence in future commercial real estate market conditions, according to speakers at a commercial real estate forum during the 2018 REALTORS® Legislative Meetings & Trade Expo. Lawrence Yun, chief economist of the National Association of Realtors®, led a panel discussion about the economic forces shaping commercial real estate markets and expressed that a favorable environment will lead to a rise in demand for commercial spaces in 2018 and 2019. "Even after 90 straight months of job gains, the economy looks likely to expand over the next two years with job openings at the highest level in nearly 10 years. The gross domestic product should experience a 2.7 percent growth, therefore the demand for commercial spaces is expected to rise this year and next year," Yun said. One area of concern for Realtors® is the lack of construction, which is hindering inventory. Yun pointed out that with subdued construction activity in commercial real estate in recent years, vacancy rates will continue to fall and rents will rise. "Concerns are growing around commercial property prices, which have dramatically shot up by 85 percent in the past seven years. With interest rates recently rising, commercial prices could decline and commercial investment sales may see an additional dip, though at a modest pace," he said. Most commercial sectors are on the upswing, according to Yun. Office demand is strong because of rising employment and moderate office supply, which will lead to modest vacancy rates, mainly due to the expansion of telecommuting. Increased trade and rising e-commerce has the industrial sector on a hot streak, with a growth of 20 percent, while retail sales are growing at 5 percent and completions remain low, with rents experiencing solid growth. Two panelists joined Yun to discuss trends in multi-family demand and the impact the global economy could have on commercial real estate over the next year. Richard Barkham, global chief economist at CBRE, gave his perspective on global economic trends and his outlook for commercial real estate. "Commercial real estate is buoyant these days, and first quarter leasing is through the roof. Interest rates may turn up, but slowly over the next few years, and inflation remains weak, as wage growth has failed to gain traction. Relatively, supply is in line with demand and cap rates have hit a bottom and remain extremely firm," Barkham said. Danielle Hale, chief economist at realtor.com® also shared highlights from her outlook for multi-family households. "Apartment demand remains robust and the sector is seeing growth, especially in mixed-use urban development, as many consumers prefer a neighborhood close to work and entertainment," said Hale. "Millennials are shifting into the largest generation of homeowners and will be a huge boom to the multi-family market in recent years. Multi-family building has seen the largest four-year stretch in supply since the 1980s and vacancy rates are trending at the lowest in years." For more commercial real estate research, visit: https://www.nar.realtor/research-and-statistics/research-reports/commercial-research. 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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Realtors Midyear Forecast: Home Sales, Prices to Rise Despite Inventory, Affordability Challenges
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Metro Home-Price Growth Quickens to 5.7 Percent in the First Quarter
WASHINGTON (May 14, 2018) – Inventory levels hovering at all-time lows weighed down home sales and fueled faster price appreciation during the first three months of the year, according to the latest quarterly report by the National Association of Realtors®. The national median existing single-family home price in the first quarter was $245,500, which is up 5.7 percent from the first quarter of 2017 ($232,200). The median sales price during the fourth quarter of 2017 climbed 5.3 percent from the fourth quarter of 2016. Single-family home prices last quarter increased in 91 percent of measured markets, with 162 out of 178 metropolitan statistical areas (MSAs) showing sales price gains in the first quarter compared to a year ago. Fifty-three metro areas (30 percent) experienced double-digit increases, up from 15 percent in the fourth quarter of 2017. Lawrence Yun, NAR chief economist, says record low inventory levels caused the housing market to get off to a slow start in 2018. "The worsening inventory crunch through the first three months of the year inflicted even more upward pressure on home prices in a majority of markets," he said. "Following the same trend over the last couple of years, a strengthening job market and income gains are not being met by meaningful sales gains because of unrelenting supply and affordability headwinds." Added Yun, "Realtors® in areas with strong job markets report that consumer frustration is rising. Home shoppers are increasingly struggling to find an affordable property to buy, and the prevalence of multiple bids is pushing prices further out of reach." Total existing-home sales, including single family and condos, decreased 1.5 percent to a seasonally adjusted annual rate of 5.51 million in the first quarter from 5.59 million in the fourth quarter of 2017, and are 1.7 percent lower than the 5.60 million pace during the first quarter of 2017. At the end of the first quarter, there were 1.67 million existing homes available for sale, which was 7.2 percent below the 1.80 million homes for sale at the end of the first quarter in 2017. The average supply during the first quarter was 3.5 months – down from 3.7 months in the first quarter of last year. The national family median income rose to $74,779 in the first quarter, but overall affordability decreased from a year ago because of rising 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 $55,732, a 10 percent down payment would require an income of $52,779, and $46,932 would be needed for a 20 percent down payment. "Prospective buyers in many markets are realizing that buying a home is becoming more expensive in 2018," said Yun. "Rapid price gains and the quick hike in mortgage rates are essentially eliminating any meaningful gains buyers may be seeing from the combination of improving wage growth and larger paychecks following this year's tax cuts. It's simple: homebuilders need to start constructing more single-family homes and condominiums to overcome the rampant supply shortages that are hampering affordability." The five most expensive housing markets in the first quarter were the San Jose, California metro area, where the median existing single-family price was $1,373,000; San Francisco-Oakland-Hayward, California, $917,000; Anaheim-Santa Ana-Irvine, California, $810,000; urban Honolulu, $775,500; and San Diego-Carlsbad, $610,000. The five lowest-cost metro areas in the first quarter were Decatur, Illinois, $73,000; Cumberland, Maryland, $86,200; Youngstown-Warren-Boardman, Ohio, $91,300; Elmira, New York, $100,800; and Binghamton, New York; $103,000. Metro area condominium and cooperative prices – covering changes in 61 metro areas – showed the national median existing-condo price was $231,700 in the first quarter, up 5.9 percent from the first quarter of 2017 ($218,800). Eighty-five percent of metro areas showed gains in their median condo price from a year ago. Regional Breakdown Total existing-home sales in the Northeast slipped 8.5 percent in the first quarter and are 8.1 percent below the first quarter of 2017. The median existing single-family home price in the Northeast was $267,400 in the first quarter, up 4.6 percent from a year ago. In the Midwest, existing-home sales fell 6.9 percent in the first quarter and are 1.8 percent below a year ago. The median existing single-family home price in the Midwest grew 5.9 percent to $187,100 in the first quarter from the same quarter a year ago. Existing-home sales in the South increased 3.7 percent in the first quarter and are 0.7 percent higher than the first quarter of 2017. The median existing single-family home price in the South was $220,400 in the first quarter, 5.5 percent above a year earlier. In the West, existing-home sales in the first quarter declined 1.1 percent and are 2.2 percent below a year ago. The median existing single-family home price in the West increased 8.2 percent to $371,300 in the first quarter from the first 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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Redfin Report: Shrinking Supply Sends Prices for Luxury Homes Up Nearly 8 Percent in First Quarter
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CoreLogic Reports Declining Foreclosure Rates in February, Signaling a Strong Economy
CoreLogic®, a leading global property information, analytics and data-enabled solutions provider, today released its monthly Loan Performance Insights Report, which shows that, nationally, 4.8 percent of mortgages were in some stage of delinquency (30 days or more past due, including those in foreclosure) in February 2018. This represents a 0.2 percentage point decline in the overall delinquency rate, compared with February 2017 when it was 5 percent. As of February 2018, the foreclosure inventory rate – which measures the share of mortgages in some stage of the foreclosure process – was 0.6 percent, down 0.2 percentage points from 0.8 percent in February 2017. Since August 2017, the foreclosure inventory rate has been steady at 0.6 percent, the lowest level since June 2007, when it was also 0.6 percent. The February 2018 foreclosure inventory rate was the lowest for the month of February in 11 years; it was also 0.6 percent in February 2007. 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 30-59 days past due – was 2.1 percent in February 2018, up from 2 percent in January 2018 and unchanged from February 2017. The share of mortgages that were 60-89 days past due in February 2018 was 0.7 percent, down from 0.8 percent in January 2018 and unchanged 0.7 percent in February 2017. The serious delinquency rate – defined as 90 days or more past due, including loans in foreclosure – was 2.1 percent in February 2018, unchanged from January 2018 and down from 2.2 percent in February 2017. The February 2018 serious delinquency rate was the lowest for the month of February since February 2007, when it was 1.6 percent. "Last year's hurricanes continue to have an effect on loan performance in affected markets, showing up in statewide data," said Dr. Frank Nothaft, chief economist for CoreLogic. "Serious delinquency rates in February were 50 percent higher than in August 2017 in Texas, and nearly double in Florida, even though the wind and flood damage was primarily in coastal markets. In Puerto Rico, the damage was widespread. Serious delinquency rates were up five-fold over the August-to-February period, with a significant increase in all metropolitan areas there." 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 0.9 percent in February 2018, up from 0.8 percent in January 2018 and down from 1 percent in February 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. "Overall delinquency rates fell in the U.S. over the past year, driven by a long run of stringent underwriting, higher employment and wages," said Frank Martell, president and CEO of CoreLogic. "At the same time, our CoreLogic U.S. Home Price Index (HPI) showed a 6.4 percent increase in home-price appreciation for the 12 months, which ended in February 2018. These factors bode well for the fortunes of both homeowners and mortgage servicers." 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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Seriously Underwater U.S. Properties Down 291,000 From Year Ago in Q1 2018, Smallest Annual Decrease Since Tracking Began in Q1 2013
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CoreLogic Reports Home Prices Up Again in March, This Time by 7 Percent
In March, Half of the Nation's Top 50 Markets Were Considered Overvalued CoreLogic, a leading global property information, analytics and data-enabled solutions provider, today released the CoreLogic Home Price Index (HPI™) and HPI Forecast™ for March 2018, which shows home prices rose both year over year and month over month. Home prices increased nationally by 7 percent year over year from March 2017 to March 2018, while on a month-over-month basis, prices increased by 1.4 percent in March 2018 – compared with February 2018 – according to the CoreLogic HPI. (February 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 5.2 percent on a year-over-year basis from March 2018 to March 2019. On a month-over-month basis, home prices are expected to rise 0.1 percent in April 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. "Home prices grew briskly in the first quarter of 2018," said Dr. Frank Nothaft, chief economist for CoreLogic. "High demand and limited supply have pushed home prices above where they were in early 2006. New construction still lags historically normal levels, keeping upward pressure on prices." According to CoreLogic Market Condition Indicators (MCI) data, an analysis of housing values in the country's 100 largest metropolitan areas based on housing stock, 37 percent of metropolitan areas have an overvalued housing market as of March 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 March 2018, 28 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, 50 percent were overvalued, 14 percent were undervalued and 36 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, while an undervalued housing market is one in which home prices are at least 10 percent below the sustainable level. "The dream of homeownership continues to fade away for the average prospective buyer. Lower-priced homes are appreciating much faster than higher-priced properties, making the affordability crisis progressively worse," said Frank Martell, president and CEO of CoreLogic. "CoreLogic's Market Condition Indicators now indicate that half of the top 50 markets in the country are overvalued because home prices in those areas have risen so much faster than incomes. This is clearly an unsustainable condition that can only be remedied by aggressive and coordinated public/private sector actions." 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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Pending Home Sales Move Up 0.4 Percent in March
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Existing-Home Sales Climb 1.1 Percent in March
WASHINGTON (April 23, 2018) — Existing-home sales grew for the second consecutive month in March, but lagging inventory levels and affordability constraints kept sales activity below year ago levels, 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, rose 1.1 percent to a seasonally adjusted annual rate of 5.60 million in March from 5.54 million in February. Despite last month's increase, sales are still 1.2 percent below a year ago. Lawrence Yun, NAR chief economist, says closings in March eked forward despite challenging market conditions in most of the country. "Robust gains last month in the Northeast and Midwest – a reversal from the weather-impacted declines seen in February – helped overall sales activity rise to its strongest pace since last November at 5.72 million," said Yun. "The unwelcoming news is that while the healthy economy is generating sustained interest in buying a home this spring, sales are lagging year ago levels because supply is woefully low and home prices keep climbing above what some would-be buyers can afford." The median existing-home price for all housing types in March was $250,400, up 5.8 percent from March 2017 ($236,600). March's price increase marks the 73rd straight month of year-over-year gains. "Although the strong job market and recent tax cuts are boosting the incomes of many households, speedy price growth is squeezing overall affordability in several markets – especially those out West," said Yun. Total housing inventory at the end of March climbed 5.7 percent to 1.67 million existing homes available for sale, but is still 7.2 percent lower than a year ago (1.80 million) and has fallen year-over-year for 34 consecutive months. Unsold inventory is at a 3.6-month supply at the current sales pace (3.8 months a year ago). According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage increased for the sixth straight month to 4.44 percent in March (highest since 4.46 percent in December 2013) from 4.33 percent in February. The average commitment rate for all of 2017 was 3.99 percent. Properties typically stayed on the market for 30 days in March, which is down from 37 days in February and 34 days a year ago. Fifty percent of homes sold in March were on the market for less than a month. "Realtors® throughout the country are seeing the seasonal ramp-up in buyer demand this spring but without the commensurate increase in new listings coming onto the market," said Yun. "As a result, competition is swift and homes are going under contract in roughly a month, which is four days faster than last year and a remarkable 17 days faster than March 2016." Realtor.com®'s Market Hotness Index, measuring time-on-the-market data and listings views per property, revealed that the hottest metro areas in March were San Francisco-Oakland-Hayward, Calif.; Vallejo-Fairfield, Calif.; Colorado Springs, Colo.; Midland, Texas; and San Jose-Sunnyvale-Santa Clara, Calif. First-time buyers were 30 percent of sales in March, which is up from 29 percent last month but down from 32 percent 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. NAR President Elizabeth Mendenhall, a sixth-generation Realtor® from Columbia, Missouri and CEO of RE/MAX Boone Realty, says the extremely tight inventory in the entry-level segment of the market should greatly benefit homeowners looking to trade up this spring. "First-time buyers continue to make up an underperforming share of the market because there are simply not enough homes for sale in their price range," she said. "Supply conditions improve in higher up price brackets, which means those trading up should see considerable interest in their home, as well as more listings to choose from during their own search." All-cash sales were 20 percent of transactions in March, which is down from 24 percent in February and 23 percent a year ago. Individual investors, who account for many cash sales, purchased 15 percent of homes in March, which is unchanged from February and down from 18 percent a year ago. Distressed sales – foreclosures and short sales – were 4 percent of sales in March, unchanged from February and down from 6 percent a year ago. Three percent of March sales were foreclosures and 1 percent were short sales. Single-family and Condo/Co-op Sales Single-family home sales rose inched forward (0.6 percent) to a seasonally adjusted annual rate of 4.99 million in March from 4.96 million in February, but are 1.0 percent below the 5.04 million sales pace a year ago. The median existing single-family home price was $252,100 in March, up 5.9 percent from March 2017. Existing condominium and co-op sales increased 5.2 percent to a seasonally adjusted annual rate of 610,000 units in March, but are still 3.2 percent below a year ago. The median existing condo price was $236,100 in March, which is 4.8 percent above a year ago. Regional Breakdown March existing-home sales in the Northeast jumped 6.3 percent to an annual rate of 680,000, but are still 9.3 percent below a year ago. The median price in the Northeast was $270,600, which is 3.3 percent above March 2017. In the Midwest, existing-home sales increased 5.7 percent to an annual rate of 1.29 million in March, but are still 1.5 percent below a year ago. The median price in the Midwest was $192,200, up 5.1 percent from a year ago. Existing-home sales in the South decreased 0.4 percent to an annual rate of 2.40 million in March, but are 0.4 percent above a year ago. The median price in the South was $222,400, up 5.7 percent from a year ago. Existing-home sales in the West declined 3.1 percent to an annual rate of 1.23 million in March, but are still 0.8 percent above a year ago. The median price in the West was $377,100, up 7.9 percent from March 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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54 Percent of U.S. Metros Post Median Home Prices Above Pre-Recession Peaks in Q1 2018
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March Home Prices Up 8.9%, the Biggest Increase in Four Years
New listings declined 5.6 percent in March, a sign of possible waning seller enthusiasm and ongoing tight market conditions SEATTLE, April 19, 2018 -- The median home sale price increased 8.9 percent in March from a year ago, the highest price growth in four years, according to Redfin, the next generation real estate brokerage. The median home sale price in March was $297,000 in the 174 markets that Redfin tracks. The lack of homes for sale, down 11.9 percent year over year, continued to constrain sales, which declined 3.7 percent. The number of homes newly listed for sale in March fell 5.6 percent compared to a year ago. "The Easter holiday fell early this year, which may have played a role in the decline in new March listings. Sellers are slow to list this year and we aren't seeing enough new construction homes to fill the gap," said Redfin chief economist Nela Richardson. "If we don't see the new listings number turn around next month or a pickup in new housing starts, inventory will be a persistent drag on sales for the remainder of the year." Though seller enthusiasm is waning, buyer demand is strong, making for a highly competitive market. The typical home went under contract in 43 days, eight days faster than a year earlier and faster than any March on record. Among homes that sold last month, 23.9 percent sold above their list price, up from 22.3 percent last March. One in five (20.5%) homes that sold in March went under contract within two weeks of their debut, compared to 18.4 percent last year. Seattle was the fastest-moving market for the second month in a row, joined by Denver. Homes in these metros were on the market for a median of just seven days in March. Strong price growth was not limited to hot coastal markets like San Jose, CA (32.3%) and San Francisco (16.7%). Places like Allentown, PA (21.8%), Detroit (20.6%) and Las Vegas (16.5%) are also experiencing strong price appreciation. Inventory declined in 65 of the 73 most populous metros Redfin tracks in the full report. In 48 of those metros, inventory fell more than 10 percent compared to last year. Baton Rouge, Washington, D.C., and Allentown bucked the declining inventory trend, respectively adding 26.6 percent, 11.8 percent and 11.4 percent to housing supply from last year. Other March Highlights Competition Denver, CO and Seattle, WA were the fastest markets, with half of all homes pending sale in just 7 days. San Jose, CA was the next fastest market with 9 median days on market, followed by Oakland, CA (12) and Sacramento, CA (13). The most competitive market in March was San Jose, CA where 83.2% of homes sold above list price, followed by 76.1% in San Francisco, CA, 75.2% in Oakland, CA, 59.8% in Seattle, WA, and 50.7% in Tacoma, WA. Prices San Jose, CA had the nation's highest price growth, rising 32.3% since last year to $1,263,500. Allentown, PA had the second highest growth at 21.8% year-over-year price growth, followed by Detroit, MI (20.6%), San Francisco, CA (16.7%), and Las Vegas, NV (16.5%). No metros saw price declines in March. Sales Detroit, MI saw the largest decline in sales since last year, falling 18.7%. Home sales in Rochester, NY and Buffalo, NY declined by 14.6% and 13.1%, respectively. 2 out of 73 metros saw sales surge by double digits from last year. Milwaukee, WI led the nation in year-over-year sales growth, up 15.1%, followed by Albany, NY, up 10.3%. Allentown, PA rounded out the top three with sales up 6.1% from a year ago. Inventory Inventory declined in 65 of the 73 metros Redfin tracks. In 48 of those metros, inventory fell by more than 10% compared to last year. Rochester, NY had the largest decrease in overall inventory, falling 42.6% since last March. Buffalo, NY (-42.4%), San Jose, CA (-41.5%), and Indianapolis, IN (-31.9%) also saw far fewer homes available on the market than a year ago. Baton Rouge, LA had the highest increase in the number of homes for sale, up 26.6% year over year, followed by Washington, DC (11.8%) and Allentown, PA (11.4%). Pricing Strategy To see trends in sellers' pricing strategies, we compare the list price to the Redfin Estimate, Redfin's automated home-value estimate with the industry's lowest published error rate for listed homes. The median list price-to-Redfin Estimate ratio was 93.5% in San Francisco, CA, the lowest of any market. This indicates sellers may be underpricing their homes to create a bidding war, as the typical home for sale in March was listed at a price 93.5% below its estimated value. Only 7.6% of homes in San Francisco, CA were listed for more than their Redfin Estimate. Conversely, the median list price-to-Redfin Estimate ratio was 102.5% in Miami, FL and 102.2% in West Palm Beach, FL, which means sellers are listing their homes for more than the estimated value in those metro areas. In Miami, FL, 84.3% of homes were listed above their Redfin Estimate, the highest percentage of any metro. To read the full report, complete with data and 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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NAR, realtor.com Report Housing Supply and Affordability Are at Odds in Markets Across U.S.
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CoreLogic Reports US Single-Family Rent Prices Increased 2.8 Percent Year Over Year in January 2018
Low-end rentals show significantly higher rent increases CoreLogic®, a leading global property information, analytics and data-enabled solutions provider, today released its latest Single-Family Rent Index, which analyzes single-family rent price changes nationally and among 20 metropolitan areas. Data collected for January 2018 shows a national rent increase of 2.8 percent, compared to 2.6 percent in January 2017. Low rental home inventory, relative to demand, fuels the growth of single-family rent prices. The Rent Index shows that single-family rent prices have climbed between 2010 and 2018; however, year-over-year rent price increases have slowed since February 2016, when they peaked at 4.1 percent. National rent growth in January 2018 was pulled down by high-end rentals, which are defined as properties with rent prices 125 percent or more of a region's median rent. High-end rent prices increased 2.4 percent year over year in January 2018, up from a gain of 1.5 percent in January 2017. Rent prices among low-end rentals (properties with rent prices less than 75 percent of the regional median) increased 3.8 percent in January 2018, down from a gain of 4.7 percent in January 2017. Among the 20 analyzed areas shown in Table 1, Las Vegas had the highest year-over-year increase in single-family rents in January 2018, at 4.8 percent (compared with January 2017), followed by Orlando and Phoenix. Urban Honolulu is the only metro among the 20 analyzed with decreasing rent prices, declining 1.1 percent year over year in January 2018. Metro areas with limited new construction, low rental vacancies and strong local economies that attract new employees tend to have stronger rent growth. Orlando and Phoenix both experienced 4.5 percent year-over-year rent growth in January 2018, driven by employment growth of 3.6 percent and 2.7 percent, respectively, year over year. This is compared with the national employment growth average of 1.4 percent, according to data from the United States Bureau of Labor Statistics. Of the 20 metros analyzed, Chicago experienced the lowest employment growth, which could be a factor in its low rent growth. Rent prices continue to increase in disaster areas like the Houston metro area, which experienced growth of 2.8 percent year over year. This is up from a 1.2 percent increase in October 2017, which was the first rent increase for Houston since April 2016. "Single-family rent price growth remained solid in January," said Molly Boesel, principal economist for CoreLogic. "High demand and low supply for entry-level properties drove lower-priced rentals to have faster price growth than higher-priced rentals, revealing affordability pressures in this segment of the rental market." 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 and 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. Foreclosure Activity Decreases 19 Percent in Q1 2018 to Stay Below Pre-Recession Levels for Sixth Consecutive Quarter
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CoreLogic Reports Early-Stage Delinquencies Declined in January as Impact from 2017 Hurricanes and Wildfires Fades
CoreLogic®, a leading global property information, analytics and data-enabled solutions provider, today released its monthly Loan Performance Insights Report which shows that, nationally, 4.9 percent of mortgages were in some stage of delinquency (30 days or more past due, including those in foreclosure) in January 2018. This represents a 0.2 percentage point decline in the overall delinquency rate, compared with January 2017 when it was 5.1 percent. As of January 2018, the foreclosure inventory rate – which measures the share of mortgages in some stage of the foreclosure process – was 0.6 percent, down 0.2 percentage points from 0.8 percent in January 2017. Since August 2017, the foreclosure inventory rate has been steady at 0.6 percent, the lowest level since June 2007, when it was also 0.6 percent. The January 2018 foreclosure inventory rate was the lowest for the month of January in 11 years; it was also 0.6 percent in January 2007. 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 30-59 days past due – was 2 percent in January 2018, down from 2.3 percent in December 2017 and from 2.1 percent in January 2017. The share of mortgages that were 60-89 days past due in January 2018 was 0.8 percent, unchanged from December 2017 and up from 0.7 percent in January 2017. The serious delinquency rate – defined as 90 days or more past due, including loans in foreclosure – was 2.1 percent in January 2018, unchanged from December 2017 and down from 2.3 percent in January 2017. The January 2018 serious delinquency rate was the lowest for the month of January since January 2007, when it was 1.5 percent. "The areas hit by last year's hurricanes and wildfires are experiencing the 'pig in a python' effect on their local delinquency rates. Early-stage delinquencies have largely dropped back to normal, while serious delinquency remains elevated," said Dr. Frank Nothaft, chief economist for CoreLogic. "In hard-hit markets, like the Houston and Naples metro areas, serious delinquency is triple what it was before the hurricanes. And in the San Juan area of Puerto Rico, serious delinquency has quadrupled." 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 2018, down from 1.1 percent in December 2017 and down from 0.9 percent in January 2017. This was the lowest for the month of January since at least 2000. 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. "Except for the metropolitan areas affected by natural disasters, most of the country has seen delinquency and foreclosure rates move lower over the past year," said Frank Martell, president and CEO of CoreLogic. "Declines in the unemployment rate have supported a rise in income, and home-price growth has built home equity. These two economic forces coupled with high-quality underwriting have lowered overall delinquency rates." For ongoing housing trends and data, visit the CoreLogic Insights Blog: www.corelogic.com/insights. 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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March 2018 Home Prices Surpass 2017 High
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CoreLogic Reports Home Prices Rose 6.7 Percent Year Over Year, Increasing for the Seventh Consecutive Month in February
In February, 48 Percent of the Top 50 Markets Were Considered Overvalued CoreLogic®, a leading global property information, analytics and data-enabled solutions provider, today released the CoreLogic Home Price Index (HPI™) and HPI Forecast™ for February 2018, which shows home prices rose both year over year and month over month. Home prices increased nationally year over year by 6.7 percent — from February 2017 to February 2018 — and on a month-over-month basis, home prices increased by 1 percent in February 2018 — compared with January 2018 — according to the CoreLogic HPI. (January 2018 data were 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 February 2018 to February 2019, with California leading the climb at a forecasted 10.3 percent year-over-year change. 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. "A number of western states have had hot housing markets," said Dr. Frank Nothaft, chief economist for CoreLogic. "Idaho, Nevada, Utah and Washington all had home prices up more than 11 percent over the last year. With the recent rise in mortgage rates, affordability has fallen sharply in these states. We expect home-price growth to slow over the next 12 months, dropping to 5 to 6 percent in Idaho, Utah and Washington, and slowing to 9.6 percent in Nevada." According to CoreLogic Market Condition Indicators (MCI) data, an analysis of housing values in the country's 100 largest metropolitan areas based on housing stock, 34 percent of metropolitan areas have an overvalued housing market as of February 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 February 2018, 30 percent of the top 100 metropolitan areas were undervalued and 36 percent were at value. When looking at only the top 50 markets based on housing stock, 48 percent were overvalued, 18 percent were undervalued and 34 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, while an undervalued housing market is one in which home prices are at least 10 percent below the sustainable level. "Family income is rising more slowly than home prices and mortgage rates, meaning that the mortgage payment takes a bigger bite out of income for new homebuyers," said Frank Martell, president and CEO of CoreLogic. "CoreLogic's Market Conditions Indicator has identified nearly one-half of the 50 largest metropolitan areas as overvalued. Often buyers are lulled into thinking these high-priced markets will continue, but we find that overvalued markets will tend to have a slowdown in price growth." About CoreLogic CoreLogic 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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Median-Priced Homes Not Affordable for Average Wage Earners in 68 Percent of U.S. Housing Markets
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Pending Home Sales Reverse Course in February, Rise 3.1 Percent
WASHINGTON (March 28, 2018) — Pending home sales snapped back in much of the country in February, but weakening affordability and not enough inventory on the market restricted overall activity compared to a year ago, according to the National Association of Realtors®. The Pending Home Sales Index, a forward-looking indicator based on contract signings, grew 3.1 percent to 107.5 in February from a downwardly revised 104.3 in January. Even with last month's increase in activity, the index is 4.1 percent below a year ago. Lawrence Yun, NAR chief economist, says the housing market has gotten off to an uneven start so far in 2018. "Contract signings rebounded in most areas in February, but the gains were not large enough to keep up with last February's level, which was the second highest in over a decade (112.1)," he said. "The expanding economy and healthy job market are generating sizeable homebuyer demand, but the miniscule number of listings on the market and its adverse effect on affordability are squeezing buyers and suppressing overall activity." Added Yun, "Expect ongoing volatility in the Northeast region at least through March. Although pending sales there bounced back in February following January's cold weather-related decline, the multiple winter storms over these last few weeks likely put a chill on contract signings once again this month." With the start of the spring buying season in full swing, Yun believes that one of the top wild cards for the housing market in coming months will be how both buyers and potential sellers adjust to the steady climb in mortgage rates since late last year. Prospective buyers continue to feel the strain of swift price growth – up 5.9 percent so far in 2018 – and the higher borrowing costs will only add to the pressures placed on their budget. Meanwhile, more would-be sellers deciding to balk at listing their home for sale out of uneasiness of losing their low mortgage rate – especially if they refinanced in recent years – would not be good news for any alleviation of the ongoing supply shortages in much of the country. "Homeowners are already staying in their homes at an all-time high before selling, and any situation where they remain put even longer only exacerbates the nation's inventory crunch," said Yun. "Even if new home construction starts picking up at a faster pace this year, as expected, existing sales will fail to break out if these record low supply levels do not recover enough to meet demand." For the year, Yun now forecasts for existing-home sales to be around 5.51 million – flat from 2017. The national median existing-home price is expected to increase around 4.2 percent. In 2017, existing sales increased 1.1 percent and prices rose 5.8 percent. The PHSI in the Northeast surged 10.3 percent to 96.0 in February, but is still 5.1 percent below a year ago. In the Midwest the index inched forward 0.7 percent to 98.9 in February, but is 9.5 percent lower than February 2017. Pending home sales in the South rose 3.0 percent to an index of 125.7 in February, but are 1.5 percent lower than last February. The index in the West climbed 0.4 percent in February to 96.9, but is 2.2 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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Existing-Home Sales Rebound 3.0 Percent in February
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CoreLogic Reports Homeowner Equity Increased by $908 Billion in 2017
CoreLogic®, a leading global property information, analytics and data-enabled solutions provider, today released the Home Equity Report for the fourth quarter of 2017, which shows that U.S. homeowners with mortgages (which account for roughly 63 percent of all properties, according to a 2016 American Community Survey) have seen their equity increase 12.2 percent year over year, representing a gain of $908.4 billion since the fourth quarter of 2016. Additionally, homeowners gained more than $15,000 in home equity between the fourth quarter of 2016 and the fourth quarter of 2017. While home equity grew nationwide, western states experienced the largest increase. Washington homeowners gained an average of approximately $40,000 in home equity, and California homeowners gained an average of approximately $44,000 in home equity (Figure 1). On a quarter-over-quarter basis, from the third quarter of 2017 to the fourth quarter of 2017, the total number of mortgaged homes in negative equity decreased 1 percent to 2.5 million homes, or 4.9 percent of all mortgaged properties (the third quarter of 2017 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.). Negative equity in the fourth quarter of 2017 decreased 21 percent year over year from 3.2 million homes – or 6.3 percent of all mortgaged properties – in the fourth quarter of 2016. "Home-price growth has been the primary driver of home-equity wealth creation," said Dr. Frank Nothaft, chief economist for CoreLogic. "The CoreLogic Home Price Index grew 6.2 percent during 2017, the largest calendar-year increase since 2013. Likewise, the average growth in home equity was more than $15,000 during 2017, the most in four years. Because wealth gains spur additional consumer purchases, the rise in home-equity wealth during 2017 should add more than $50 billion to U.S. consumption spending over the next two to three 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 $283.1 billion at the end of the fourth quarter of 2017. This is up quarter over quarter by approximately $5.7 billion (or 2.1 percent), from $277.4 billion in the third quarter of 2017 and down year over year by approximately $3.2 billion (or 1.1 percent), from $286.3 billion in the fourth quarter of 2016. "There are wide disparities in home-equity gains by geographic area, with higher-priced, capacity constrained markets along the East and West Coasts registering the largest increases," said Frank Martell, president and CEO of CoreLogic. "The average homeowner in California and Washington had a wealth gain of about $40,000, reflecting the high price of homes in California and the rapid appreciation in Washington. In contrast, the average owner in Louisiana had little change in their housing wealth during 2017, given much lower prices and modest price growth." 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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Redfin: Home Prices Post Strongest Gain in Nearly Four Years as a Double-Digit Inventory Decline Constrained Sales
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CoreLogic Reports Early-Stage Delinquencies Increased Slightly in December But Serious Delinquency and Foreclosure Inventory Rates Declined Year Over Year
CoreLogic, a leading global property information, analytics and data-enabled solutions provider, today released its monthly Loan Performance Insights Report which shows that, nationally, 5.3 percent of mortgages were in some stage of delinquency (30 days or more past due, including those in foreclosure) in December 2017. This represents no change in the overall delinquency rate compared with December 2016 when it was also 5.3 percent. As of December 2017, the foreclosure inventory rate, which measures the share of mortgages in some stage of the foreclosure process, was 0.6 percent, down 0.2 percentage points from 0.8 percent in December 2016. Since August 2017, the foreclosure inventory rate has been steady at 0.6 percent, the lowest level since June 2007, when it was also 0.6 percent. This past December's foreclosure inventory rate was the lowest for the month of December in 11 years; it was also 0.6 percent in December 2006. 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 30-59 days past due – was 2.3 percent in December 2017, up 0.1 percentage points from 2.2 percent in both November 2017 and December 2016. The share of mortgages that were 60-89 days past due in December 2017 was 0.8 percent, down from 0.9 percent in November 2017 and up from 0.7 percent in December 2016. The serious delinquency rate – defined as 90 days or more past due, including loans in foreclosure – was 2.1 percent in December 2017, up from 2 percent in November 2016 and down from 2.3 percent in December 2016. The December 2017 serious delinquency rate was the lowest for the month of December since December 2006, when it was 1.5 percent. "The wildfires in Sonoma and Napa counties began October 8 and destroyed or damaged thousands of homes. Two- and three-month delinquency rates have spiked in these two counties, more than doubling between October and December," said Dr. Frank Nothaft, chief economist for CoreLogic. "The after effects of Hurricanes Harvey, Irma and Maria continue to appear as well. Serious delinquency rates in the Houston and Miami metropolitan areas doubled between September and year-end and quadrupled in the San Juan area of Puerto Rico." 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 1.1 percent in December 2017, up from 1 percent in both November 2017 and December 2016. This was the highest rate for a December, as it was 1.2 percent in December 2013. 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. "The effect of the wildfires and hurricanes on delinquency transition rates was all too clear in our latest analysis," said Frank Martell, president and CEO of CoreLogic. "In Sonoma and Napa counties, both 30-to-60 day and 60-to-90 day delinquent transition rates in December were more than double what they had averaged the prior year. Likewise, neighborhoods affected by hurricanes have seen a jump in transition rates in the months immediately following. These natural disasters have stalled or reversed the decline in 30-to-119 day delinquency rates that we had seen previously." 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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Buying a Home Will Be More Expensive this Spring
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Let the Data Decide: Coldwell Banker Picks College Basketball Tournament Winners Based on Real Estate Market Intelligence
Hooptown Bracketology takes a "shot" at determining who would win this year's Men's College Basketball Tournament if big data and housing stats, not game stats, competed MADISON, N.J., March 13, 2018 -- This March, Coldwell Banker Real Estate LLC is bringing a new level of madness to tournament brackets. While others will be agonizing over hours of game footage, obsessively checking the Vegas odds and compulsively looking at sports stats, Coldwell Banker® will be using real estate data to fill out their tournament brackets, publishing them on March 13 and calling it Hooptown Bracketology. Hooptown Bracketology leverages a proprietary tool developed by Coldwell Banker called CBx to compare real estate data from each school's hometown – or "Hooptown" – to select predicted winners of each game. The brand will fill out five different Hooptown brackets: Most Expensive, Most Affordable, Easiest to Move to, Newest and Best for Singles.The five predicted winners are below. To see each winner's road to victory, check out hooptown.coldwellbanker.com: Most Expensive Hooptown: Long Island University-Brooklyn: Brooklyn, N.Y.Play well in the Tournament, sign with the NBA and you might be able to score a home in these Most Expensive Hooptowns. The winning school in this bracket is from the Hooptown with the highest average residential home sales price based on 2017 annual data. Most Affordable Hooptown: University of Oklahoma: Norman, Okla.Tournament tickets aren't cheap. Save on your mortgage and splurge on the games with these Most Affordable Hooptowns. The winning school in this bracket is from the Hooptown with the lowest average residential home sales price based on 2017 annual data. Easiest Hooptown to Move to: Loyola University Chicago: Chicago, Ill.Making it to the Tournament doesn't come easy, but moving to these Hooptowns does. The winning school in this bracket is from the Hooptown with the most listings on the market as of February 13, 2018. Newest Hooptown: Duke University: Durham, N.C.It's time for the freshmen to have their shining moment just like these New Hooptowns. The winning school in this bracket is from the Hooptown with the newest homes based on the average build-year as of October 2017. Best Hooptown for Singles: University of Michigan: Ann Arbor, Mich.Looking for love and basketball isn't always easy. Luckily, these Hooptowns have plenty of single adults so you'll have lots of shots to find love. The winning school in this bracket is from the Hooptown with the highest percentage of single adults. Hooptown Bracketology comes on the heels of the recently launched Coldwell Banker "Hoops" spot. The "Hoops" ad will air throughout the Tournament both online and on TV. "Hoops" can be viewed here. Hooptown Bracketology is powered by CBx, the proprietary app from Coldwell Banker. The CBx app allows Coldwell Banker agents to harness big data to analyze markets and target buyers. "Watching the Tournament and filling out brackets is an annual event in homes across the country," said Charlie Young, president and CEO, Coldwell Banker Real Estate LLC. "This year we decided to have some fun when filling out our own brackets and test the power of real estate data and our tool, CBx. The Newest Hooptown bracket looks strong this year but we'll have to watch this year's games to see which bracket gets to cut down the nets in San Antonio." "At Coldwell Banker we bleed blue so we pick blue when it comes to the Tournament," said David Marine, senior vice president of marketing, Coldwell Banker Real Estate LLC. "Blue is the winningest color in Tournament history. In fact, it holds a 281-202 lead over second place color red. But how do you pick when both teams wear blue? We thought we should let the data help us decide this year. Our brackets are predicting some surprising upsets. LIU over Villanova seems like an unlikely Cinderella story; no number sixteen seed has beaten a number one seed before. In fact, number sixteen seeds are 128-0 against number one seeds. The Newest Hooptown bracket, however, looks like a real contender. I wouldn't be surprised to see Texas Tech or Duke make it until the end and Missouri has a shot at an upset or two." About Coldwell Banker Real Estate LLC Powered by its network of over 92,000 affiliated sales professionals in 3,000 offices across 47 countries and territories, the Coldwell Banker® organization is a leading provider of full-service residential and commercial real estate brokerage services. The Coldwell Banker brand prides itself on its history of expertise, honesty and an empowering culture of excellence since its beginnings in 1906. Coldwell Banker is committed to providing its network of sales professionals with the tools and insights needed to excel in today's marketplace and is known for its bold leadership and dedication to driving the industry forward with big data, smart home expertise and virtual reality. Coldwell Banker was the first brand to develop a proprietary marketing application, CBx, which harnesses big data to analyze markets, target buyers and provide a platform for agents to create unique and effective marketing plans for each listing. The Coldwell Banker Gen Blue network has an unbeatable technology suite and competitive edge. To join Coldwell Banker and unlock the possibilities of Gen Blue please visit www.coldwellbanker.com/join.
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Despite Record-High Costs, New Home Construction Showed Modest Growth in the Fourth Quarter, Redfin Finds
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U.S. Home Flipping Increases to 11-Year High in 2017 With More Than 200,000 Homes Flipped for Second Straight Year
Top Major Market Flipping Rates in Memphis, Las Vegas, Tampa, Birmingham, Phoenix; $16.1 Billion In Financed Flips in 2017, Up 27 Percent From 2016 to 10-Year High IRVINE, Calif. – March 8, 2018 — ATTOM Data Solutions, curator of the nation's premier property database, today released its Q4 and Year-End 2017 U.S. Home Flipping Report, which shows that 207,088 U.S. single family homes and condos were flipped in 2017, up 1 percent from the 204,167 home flips in 2016 to the highest level since 2006 — an 11-year high. The 207,088 homes flipped in 2017 represented 5.9 percent of all single family home and condo sales during the year, up from 5.7 percent of all sales in 2016 to the highest level since 2013. A total of 138,410 entities (individuals and institutions) flipped homes in 2017, up 4 percent from the 133,407 entities that flipped in 2016 to the highest level since 2007 — a 10-year high. "The surge in home flipping in the last three years is built on a more fundamentally sound foundation than the flipping frenzy that we witnessed a little more than a decade ago," said Daren Blomquist, senior vice president at ATTOM Data Solutions. "Flippers are behaving more rationally, as evidenced by average gross flipping returns of 50 percent over the last three years compared to average gross flipping returns of just 31 percent between 2004 and 2006 — the last time we saw more than 200,000 home flips in consecutive years. And while financing for flippers has become more readily available in recent years, 65 percent of flippers still used cash to buy homes flipped in 2017, nearly the reverse of 2004 to 2006, when 63 percent of flippers were leveraging financing to buy." Home flip lending volume up 27 percent to 10-year high The total dollar volume of financed home flip purchases was $16.1 billion for homes flipped in 2017, up 27 percent from $12.7 billion in 2016 to the highest level since 2007 — a 10-year high. "We aren't surprised that the dollar volume and share of financed flips are hitting new highs," said Matt Humphrey, co-founder and CEO of LendingHome, which saw a nearly 70 percent increase in its dollar volume of loans on home flips completed in 2017 compared to 2016, according to an ATTOM analysis of loan data. "Online lenders like us exist because banks and large lenders don't play in this space, and they aren't using technology to be efficient, nimble and fast. Now that investors have digital-native lenders catering to them, financing becomes an attractive alternative to cash. We predict this trend will continue because 2018 is already off to an incredible start for us." Flipped homes originally purchased by the investor with financing represented 34.8 percent of homes flipped in 2017, up from 31.6 percent in 2016 to the highest level since 2008 — a nine-year high. "Institutional demand in this space has grown substantially over the last several years. Fix-and-flip has become an asset class of its own that is well-financed by banks and highly sought by institutional buyers," said Maksim Stavinsky, co-founder and COO at Roc, a nationwide originator which saw close to double the dollar volume of loans on home flips completed in 2017 compared to 2016, according to an ATTOM analysis of loan data. Among 52 metropolitan statistical areas analyzed in the report with at least 1 million people, those with the highest percentage of 2017 completed flips purchased with financing were Denver, Colorado (55.4 percent); Boston, Massachusetts (52.8 percent); Providence, Rhode Island (49.4 percent); San Diego, California (48.5 percent); and Seattle, Washington (48.0 percent). "Across Southern California, the flipping of investment properties continues to be a challenge, due to low available housing inventory, which is in turn driving up pricing and downsizing profitability for investors," said Michael Mahon, president at First Team Real Estate, covering Southern California. "To best position cash available for investment, we are experiencing more investors looking to utilize loan financing as leverage, as opposed to all-cash purchases, in an effort to capture greater numbers of investment opportunities, as opposed to maximizing individual profitability on investment projects." Share of flips sold to FHA buyers at a three-year low Of the homes flipped in 2017, 17.6 percent were sold to FHA borrowers — likely first-time homebuyers — down from 19.4 percent in 2016 to a three-year low. Among 52 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 2017 Richmond, Virginia (3.7 percent); New York, New York (4.3 percent); Minneapolis-St. Paul (4.9 percent); St. Louis, Missouri (6.4 percent); and San Diego, California (10.0 percent). "We are seeing an entirely new category of sellers on Roofstock made up of investors choosing to buy/fix/lease/sell with a tenant in place versus buy/fix/flip vacant via the MLS," said Gary Beasley, CEO and co-founder at Roofstock, an online marketplace for investment properties. "This allows home flippers to reduce their selling costs, earn income during their hold period rather than having carrying costs, and potentially turn their capital faster. The availability of data on where single-family rentals are trading on a cap rate basis allows value-add investors to back into the prices they can pay based upon their targeted profit margins and estimates of renovation costs and market rents, allowing them to take advantage of robust investor demand for cash-flowing properties." Among the 52 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 2017 were Providence, Rhode Island (43.1 percent); Birmingham, Alabama (42.8 percent); Oklahoma City, Oklahoma (41.0 percent); Orlando, Florida (40.4 percent); and San Antonio, Texas (38.0 percent). Average home flipping returns pull back from all-time high Completed home flips in 2017 yielded an average gross profit of $68,143 (difference between median purchase price and median flipped sale price), up 5 percent from an average gross flipping profit of $64,900 in 2016 to a new all-time high for as far back as data is available (2000). The average gross flipping profit of $68,143 in 2017 represented an average 49.8 percent return on investment (percentage of original purchase price), down from an all-time high average gross flipping ROI of 51.9 percent in 2016 but still the second highest average gross flipping ROI of any year as far back as any data is available (2000). "I think it is starting to feel a little like 2007 again, only with one major difference: the people buying investment properties are not ‘sub-primers', but investors with more sophisticated deal sourcing methods," said Brad McDaniel, co-founder and CEO with Likely.AI, a company that applies artificial intelligence and machine learning to predict future events in real estate and mortgage origination. "One of our clients, in the wholesale business, made a strategic move to become more data-driven in all aspects of their business. I believe this trend, the adoption of big data, and AI by residential real estate investors, is in its infancy. It's been said that real estate is a laggard when it comes to technology adoption; that is changing because of AI." Among 174 metro areas with a population of at least 200,000 and at least 100 home flips in 2017, those with the highest average gross flipping ROI were Scranton, Pennsylvania (168.2 percent); Pittsburgh, Pennsylvania (145.5 percent); Baton Rouge, Louisiana (122.9 percent); Philadelphia, Pennsylvania (115.7 percent); and Erie, Pennsylvania (114.1 percent). Along with Pittsburgh and Philadelphia, other major metro areas with at least 1 million people and gross flipping ROI of at least 80 percent were Cleveland (113.3 percent); Baltimore (97.7 percent); New Orleans (92.9 percent); Cincinnati (85.0 percent); and Buffalo (82.2 percent). Highest home flipping rates in Memphis, Las Vegas, Tampa, Birmingham, Phoenix Among 52 metro areas analyzed in the report with at least 1 million people, those with the highest home flipping rate in 2017 were Memphis, Tennessee (12.8 percent); Las Vegas, Nevada (9.1 percent); Tampa-St. Petersburg, Florida (9.0 percent); Birmingham, Alabama (8.6 percent); and Phoenix, Arizona (8.5 percent). Other major markets in the top 10 for highest 2017 home flipping rate were Baltimore, Maryland; Virginia Beach, Virginia; St. Louis, Missouri; Miami, Florida; and Orlando, Florida. Among 5,998 zip codes with at least 10 home flips completed in 2017, the highest home flipping rate was in 38116 in Memphis where home flips represented 31.5 percent of all home sales for the year. Other zip codes in the top 20 for highest 2017 home flipping rate included zip codes in Baton Rouge, Louisiana; Penitas, Texas; Los Angeles, California; Opa Locka, Florida; Jamaica, New York; Washington, D.C; Philadelphia, Pennsylvania; Farmersville, California; Houston, Texas; Miami, Florida; and Saint Louis, Missouri. Biggest increase in home flipping rates in Buffalo, New York, Dallas, Louisville, Birmingham Among metro areas with at least 1 million people, those with the biggest increase in home flipping rate in 2017 were Buffalo, New York (up 34 percent); New York-Northern New Jersey (up 29 percent); Dallas-Fort Worth (up 23 percent); Louisville, Kentucky (up 22 percent); and Birmingham, Alabama (up 17 percent). Other major markets in the top 10 for biggest increase in home flipping rate in 2017 were Grand Rapids, Michigan; Rochester, New York; Indianapolis, Indiana; Cleveland, Ohio; and Houston, Texas. Counter to the national trend, the home flipping rate decreased in 2017 in 19 of the 52 metro areas analyzed in the report with at least 1 million people, including Los Angeles, California (down 2 percent); Miami, Florida (down 14 percent); Boston, Massachusetts (down 7 percent); San Francisco, California (down 3 percent); Riverside-San Bernardino, California (down 1 percent); and Seattle, Washington (down 2 percent). "I believe the drop in Seattle home flipping can be attributed to the large number of buyers that home flippers are competing against in the market," said Matthew Gardner, chief economist with Windermere Real Estate in Seattle. "As a result, they're being forced to pay more which cuts deeply into potential profits — also down from last year. I anticipate that supply limitations, in concert with rising home prices, will continue to put downward pressure on the number of flips in the Seattle market in 2018." Average time to flip unchanged from 2016 Homes flipped in 2017 took an average of 182 days to complete the flip, tied with 2016 for the highest average days to flip since 2006 — an 11-year high. Among 174 metro areas with a population of at least 200,000 and at least 100 home flips in 2017, those with the longest average time to flip were Lansing, Michigan (226 days); Ogden, Utah (221 days); Albuquerque, New Mexico (217 days); San Luis Obispo, California (216 days); Naples, Florida (215 days). 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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Pending Home Sales Stumble 4.7 Percent in January
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Existing-Home Sales Slip 3.2 Percent in January
WASHINGTON (February 21, 2018) — Existing-home sales slumped for the second consecutive month in January and experienced their largest decline on an annual basis in over three years, according to the National Association of Realtors®. All major regions saw monthly and annual sales declines last month. Total existing-home sales which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, sank 3.2 percent in January to a seasonally adjusted annual rate of 5.38 million from a downwardly revised 5.56 million in December 2017. After last month's decline, sales are 4.8 percent below a year ago (largest annual decline since August 2014 at 5.5 percent) and at their slowest pace since last September (5.37 million). Lawrence Yun, NAR chief economist, says January's retreat in closings highlights the housing market's glaring inventory shortage to start 2018. "The utter lack of sufficient housing supply and its influence on higher home prices muted overall sales activity in much of the U.S. last month," he said. "While the good news is that Realtors® in most areas are saying buyer traffic is even stronger than the beginning of last year, sales failed to follow course and far lagged last January's pace. It's very clear that too many markets right now are becoming less affordable and desperately need more new listings to calm the speedy price growth." The median existing-home price for all housing types in January was $240,500, up 5.8 percent from January 2017 ($227,300). January's price increase marks the 71st straight month of year-over-year gains. Total housing inventory at the end of January rose 4.1 percent to 1.52 million existing homes available for sale, but is still 9.5 percent lower than a year ago (1.68 million) and has fallen year-over-year for 32 consecutive months. Unsold inventory is at a 3.4-month supply at the current sales pace (3.6 months a year ago). "Another month of solid price gains underlines this ongoing trend of strong demand and weak supply. The underproduction of single-family homes over the last decade has played a predominant role in the current inventory crisis that is weighing on affordability," said Yun. "However, there's hope that the tide is finally turning. There was a nice jump in new home construction in January and homebuilder confidence is high. These two factors will hopefully lay the foundation for the building industry to meaningfully ramp up production as this year progresses." First-time buyers were 29 percent of sales in January, which is down from 32 percent in December 2017 and 33 percent 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. According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage moved higher for the fourth straight month to 4.03 percent in January from 3.95 percent in December. The average commitment rate for all of 2017 was 3.99 percent. "The gradual uptick in wages over the last few months is a promising development for the housing market, but there's risk these income gains could be offset by the recent jump in mortgage rates," said Yun. "That is why the pace of added new and existing supply in the months ahead is worth monitoring. If inventory conditions can improve enough to cool the swift price growth in several markets, most prospective buyers should be able to absorb the higher borrowing costs." Properties typically stayed on the market for 42 days in January, which is up from 40 days in December 2017 but down from a year ago (50 days). Forty-three percent of homes sold in January were on the market for less than a month. Realtor.com®'s Market Hotness Index, measuring time-on-the-market data and listings views per property, revealed that the hottest metro areas in January were San Francisco-Oakland-Hayward, Calif.; San Jose-Sunnyvale-Santa Clara, Calif.; Vallejo-Fairfield, Calif.; Midland, Texas; and Colorado Springs, Colo. NAR President Elizabeth Mendenhall, a sixth-generation Realtor® from Columbia, Missouri and CEO of RE/MAX Boone Realty, says Realtors® in several markets are reporting that the spring buying season appears to be starting early this year. "Those planning to buy a home this spring should look into getting pre-approved for a mortgage now and start having those serious conversations with their real estate agent on what they're looking for in a home and where they want to buy," she said. "With demand exceeding supply in most areas, competition will only heat up in the months ahead. Beginning the home search now could lead to a successful and less stressful buying experience." All-cash sales were 22 percent of transactions in January, which is up from 20 percent in December 2017 but down from 23 percent a year ago. Individual investors, who account for many cash sales, purchased 17 percent of homes in January, up from 16 percent both last month and a year ago. Distressed sales – foreclosures and short sales – were 5 percent of sales in January, unchanged from December 2017 and down from 7 percent a year ago. Four percent of January sales were foreclosures and 1 percent were short sales. Single-family and Condo/Co-op Sales Single-family home sales declined 3.8 percent to a seasonally adjusted annual rate of 4.76 million in January from 4.95 million in December, and are now 4.8 percent below the 5.00 million pace a year ago. The median existing single-family home price was $241,700 in January, up 5.7 percent from January 2017. Existing condominium and co-op sales rose 1.6 percent to a seasonally adjusted annual rate of 620,000 units in January, but are still 4.6 percent below a year ago. The median existing condo price was $231,600 in January, which is 7.1 percent above a year ago. Regional Breakdown January existing-home sales in the Northeast declined 1.4 percent to an annual rate of 730,000, and are now 7.6 percent below a year ago. The median price in the Northeast was $269,100, which is 6.8 percent above January 2017. In the Midwest, existing-home sales dipped 6.0 percent to an annual rate of 1.25 million in January, and are now 3.8 percent below a year ago. The median price in the Midwest was $188,000, up 8.7 percent from a year ago. Existing-home sales in the South decreased 1.3 percent to an annual rate of 2.26 million in January, and are 1.7 percent lower than a year ago. The median price in the South was $208,200, up 4.3 percent from a year ago. Existing-home sales in the West fell 5.0 percent to an annual rate of 1.14 million in January, and are now 9.5 percent below a year ago. The median price in the West was $362,600, up 8.8 percent from January 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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Remine Is Coming to the Chicagoland Area
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Fourth Quarter Home Prices Up 5.3 Percent; Nearly Two-Thirds of Markets at All-Time High
WASHINGTON (February 13, 2018) — An uptick in existing-home sales in the final three months of 2017 pulled down housing inventory to an all-time low and kept home-price growth at its recent robust pace, according to the latest quarterly report by the National Association of REALTORS. The national median existing single-family home price in the fourth quarter was $247,800, which is up 5.3 percent from the fourth quarter of 2016 ($235,400). The median price during last year's third quarter climbed 5.6 percent from the third quarter of 2016. Single-family home prices last quarter increased in 92 percent of measured markets, with 162 out of 177 metropolitan statistical areas (MSAs) showing sales price gains in the fourth quarter compared to a year ago. Twenty-six metro areas (15 percent) experienced double-digit increases (11 percent in the third quarter), and 18 metros eclipsed their previous peak sales price. Overall, home prices are now at their all-time high in 114 markets (64 percent). Lawrence Yun, NAR chief economist, says 2017 capped off another year where home prices in most markets ascended at a steady clip amidst improving sales and worsening inventory conditions. "A majority of the country saw an upswing in buyer interest at the end of last year, which ultimately ended up putting even more strain on inventory levels and prices," he said. "Remarkably, home prices have risen a cumulative 48 percent since 2011, yet during this same timeframe, incomes are up only 15 percent. In the West region, where very healthy labor markets are driving demand, the gap is even wider." Added Yun, "These consistent, multi-year price gains have certainly been great news for homeowners, and especially for those who were at one time in a negative equity situation; however, the shortage of new homes being built over the past decade is really burdening local markets and making homebuying less affordable." Total existing-home sales, including single family and condos, increased 4.3 percent to a seasonally adjusted annual rate of 5.62 million in the fourth quarter from 5.39 million in the third quarter, and are 1.3 percent higher than the 5.55 million pace during the fourth quarter of 2016. At the end of the fourth quarter, there were 1.48 million existing homes available for sale, which was 10.3 percent below the 1.65 million homes for sale at the end of the fourth quarter in 2016. The average supply during the fourth quarter was 3.5 months - down from 4.2 months in the fourth quarter of last year. The national family median income rose to $74,492 in the fourth quarter, but overall affordability still edged downward compared to a year ago because of the combination of rising 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 $55,585, a 10 percent down payment would require an income of $52,659, and $46,808 would be needed for a 20 percent down payment. “While tight supply is expected to keep home prices on an upward trajectory in most metro areas in 2018, both the uptick in mortgage rates and the impact of the new tax law on some high-cost markets could cause price growth to moderate nationally," said Yun. "In areas where homebuilding has severely lagged job creation in recent years, it's going to be a slow slog before there's enough new construction to cool price appreciation to a pace that aligns more closely with incomes." The five most expensive housing markets in the fourth quarter were the San Jose, California metro area, where the median existing single-family price was $1,270,000; San Francisco-Oakland-Hayward, California, $920,000; Anaheim-Santa Ana-Irvine, California, $785,000; urban Honolulu, $760,600; and San Diego-Carlsbad, $610,000. The five lowest-cost metro areas in the fourth quarter were Cumberland, Maryland, $84,600; Youngstown-Warren-Boardman, Ohio, $90,200; Decatur, Illinois, $100,000; Binghamton, New York, $108,900; and Wichita Falls, Texas, $110,400. Metro area condominium and cooperative prices - covering changes in 61 metro areas - showed the national median existing-condo price was $237,500 in the fourth quarter, up 7.0 percent from the fourth quarter of 2016 ($222,000). Eighty-four percent of metro areas showed gains in their median condo price from a year ago. Regional Breakdown Total existing-home sales in the Northeast jumped 10.1 percent in the fourth quarter but are 0.4 percent below the fourth quarter of 2016. The median existing single-family home price in the Northeast was $268,100 in the fourth quarter, up 4.2 percent from a year ago. In the Midwest, existing-home sales rose 6.0 percent in the fourth quarter and are 2.3 percent above a year ago. The median existing single-family home price in the Midwest grew 7.2 percent to $193,800 in the fourth quarter from the same quarter a year ago. Existing-home sales in the South increased 3.8 percent in the fourth quarter and are 1.8 percent higher than the fourth quarter of 2016. The median existing single-family home price in the South was $221,600 in the fourth quarter, 5.0 percent above a year earlier. In the West, existing-home sales in the fourth quarter were at an annualized rate of 1.23 million (unchanged from the third quarter), up 0.3 percent from a year ago. The median existing single-family home price in the West increased 7.2 percent to $374,400 in the fourth quarter from the fourth quarter of 2016. 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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Data Drives Moxi Works and Sisu to Align in Strategic Partnership
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CoreLogic Reports December Home Prices Up More than 6 Percent Year-Over-Year for Fifth Consecutive Month
February 06, 2018, Irvine, Calif. – CoreLogic®, a leading global property information, analytics and data-enabled solutions provider, today released its CoreLogic Home Price Index (HPI™) and HPI Forecast™ for December 2017, which shows home prices are up both year over year and month over month. Home prices nationally increased year over year by 6.6 percent from December 2016 to December 2017, and on a month-over-month basis home prices increased by 0.5 percent in December 2017 compared with November 2017,* according to the CoreLogic HPI. Looking ahead, the CoreLogic HPI Forecast indicates that home prices will increase by 4.3 percent on a year-over-year basis from December 2017 to December 2018, and on a month-over-month basis home prices are expected to decrease by 0.4 percent from December 2017 to January 2018. The CoreLogic HPI Forecast is a projection of home prices 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 number of homes for sale has remained very low," said Dr. Frank Nothaft, chief economist for CoreLogic. "Job growth lowered the unemployment rate to 4.1 percent by year's end, the lowest level in 17 years. Rising income and consumer confidence has increased the number of prospective homebuyers. The net result of rising demand and limited for-sale inventory is a continued appreciation in home prices." According to CoreLogic Market Condition Indicators (MCI) data, 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 December 2017. 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. Also, as of December, 28 percent of the top 100 metropolitan areas were undervalued and 37 percent were at value. When looking at only the top 50 markets based on housing stock, 48 percent were overvalued, 14 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, while an undervalued housing market is one in which home prices are at least 10 percent below the sustainable level. "Home prices continue to rise as a result of aggressive monetary policy, the economic and jobs recovery and a lack of housing stock. The largest price gains during 2017 were in five Western states: California, Idaho, Nevada, Utah and Washington," said Frank Martell, president and CEO of CoreLogic. "As home prices and the cost of originating loans rise, affordability continues to erode, making it more challenging for both first time buyers and moderate-income families to buy. At this point, we estimate that more than one-third of the 100 largest metropolitan areas are overvalued." *November 2017 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. 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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Average Home Seller Profits at 10-Year High of $54,000 in Q4 2017
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Pending Home Sales Tick Up 0.5 Percent in December
WASHINGTON (January 31, 2018) — Pending home sales were up slightly in December for the third consecutive month, according to the National Association of Realtors®. In 2018, existing-home sales and price growth are forecast to moderate, primarily because of the new tax law's expected impact in high-cost housing markets. The Pending Home Sales Index, a forward-looking indicator based on contract signings, moved higher 0.5 percent to 110.1 in December from an upwardly revised 109.6 in November. With last month's modest increase, the index is now 0.5 percent above a year ago. Lawrence Yun, NAR chief economist, says pending sales edged up in December and reached their highest level since last March (111.3). "Another month of modest increases in contract activity is evidence that the housing market has a small trace of momentum at the start of 2018," he said. "Jobs are plentiful, wages are finally climbing and the prospect of higher mortgage rates are perhaps encouraging more aspiring buyers to begin their search now." Added Yun, "Sadly, these positive indicators may not lead to a stronger sales pace. Buyers throughout the country continue to be hamstrung by record low supply levels that are pushing up prices — especially at the lower end of the market." The uninterrupted supply and demand imbalances throughout the country fueled price appreciation to 5.8 percent in 2017, which was the sixth straight year of gains at or above 5 percent1. While tight inventories are still expected to put upward pressure on prices in most areas this year, Yun expects overall price growth to shrink, with some states even experiencing a decline, because of the negative effect the changes to the mortgage interest deduction and state and local deductions under the new tax law. See NAR's 2018 state forecast for a look at home price projections. "In the short term, the larger paychecks most households will see from the tax cuts may give prospective buyers the ability to save for a larger down payment this year, and the healthy labor economy and job market will continue to boost demand," said Yun. "However, there's no doubt the nation's most expensive markets with high property taxes are going to be adversely impacted by the tax law." Added Yun, "Just how severe is still uncertain, but with homeownership now less incentivized in the tax code, sellers in the upper end of the market may have to adjust their price expectations if they want to trade down or move to less expensive areas. This could in turn lead to both a decrease in sales and home values." After expanding 1.1 percent in 2017 to 5.51 million, Yun does anticipate a slight increase (0.5 percent) in existing sales this year (5.54 million). Single-family housing starts are forecast to jump 13.3 percent to 961,000, which will push new home sales up 15.3 percent to 701,000 (608,000 in 2016). The PHSI in the Northeast dipped 5.1 percent to 93.9 in December, and is now 2.7 percent below a year ago. In the Midwest the index decreased 0.3 percent to 105.0 in December, but is still 0.3 percent higher than December 2016. Pending home sales in the South grew 2.6 percent to an index of 126.9 in December and are now 4.0 percent higher than last December. The index in the West rose 1.5 percent in December to 101.7, but is still 3.1 percent below a year ago. 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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U.S. Foreclosure Activity Drops to 12-Year Low in 2017
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Existing-Home Sales Fade in December; 2017 Sales Up 1.1 Percent
WASHINGTON (January 24, 2018) — Existing-home sales subsided in most of the country in December, but 2017 as a whole edged up 1.1 percent and ended up being the best year for sales in 11 years, 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, increased 1.1 percent in 2017 to a 5.51 million sales pace and surpassed 2016 (5.45 million) as the highest since 2006 (6.48 million). In December, existing-home sales slipped 3.6 percent to a seasonally adjusted annual rate of 5.57 million from a downwardly revised 5.78 million in November. After last month's decline, sales are still 1.1 percent above a year ago. Lawrence Yun, NAR chief economist, says the housing market performed remarkably well for the U.S. economy in 2017, with substantial wealth gains for homeowners and historically low distressed property sales. "Existing sales concluded the year on a softer note, but they were guided higher these last 12 months by a multi-year streak of exceptional job growth, which ignited buyer demand," said Yun. "At the same time, market conditions were far from perfect. New listings struggled to keep up with what was sold very quickly, and buying became less affordable in a large swath of the country. These two factors ultimately muted what should have been a stronger sales pace." Added Yun, "Closings scaled back in most areas last month for this same reason. Affordability pressures persisted, and the pool of interested buyers at the end of the year significantly outweighed what was available for sale." The median existing-home price for all housing types in December was $246,800, up 5.8 percent from December 2016 ($233,300). December's price increase marks the 70th straight month of year-over-year gains. Total housing inventory at the end of December dropped 11.4 percent to 1.48 million existing homes available for sale, and is now 10.3 percent lower than a year ago (1.65 million) and has fallen year-over-year for 31 consecutive months. Unsold inventory is at a 3.2-month supply at the current sales pace, which is down from 3.6 months a year ago and is the lowest level since NAR began tracking in 1999. "The lack of supply over the past year has been eye-opening and is why, even with strong job creation pushing wages higher, home price gains – at 5.8 percent nationally in 2017 – doubled the pace of income growth and were even swifter in several markets," said Yun. First-time buyers were 32 percent of sales in December, which is up from 29 percent in November and unchanged from 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. According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage inched higher for the third straight month to 3.95 percent in December from 3.92 percent in November. The average commitment rate for all of 2017 was 3.99 percent. "Rising wages and the expanding economy should lay the foundation for 2018 being the turning point towards an uptick in sales to first-time buyers," said Yun. "However, if inventory conditions fail to improve, higher mortgage rates and prices will further eat into affordability and prevent many renters from becoming homeowners." Properties typically stayed on the market for 40 days in December, which is unchanged from November and down from a year ago (52 days). Forty-four percent of homes sold in December were on the market for less than a month. Realtor.com®'s Market Hotness Index, measuring time-on-the-market data and listings views per property, revealed that the hottest metro areas in December were San Jose-Sunnyvale-Santa Clara, Calif.; San Francisco-Oakland-Hayward, Calif.; Vallejo-Fairfield, Calif.; Colorado Springs, Colo.; and Stockton-Lodi, Calif. NAR President Elizabeth Mendenhall, a sixth-generation Realtor® from Columbia, Missouri and CEO of RE/MAX Boone Realty, says improving the new tax law is a top priority for Realtors® in 2018. "Especially in high-cost, high-taxed markets, there's still big concern that the overall structure of the final bill diminishes the tax benefits of homeownership in a way that would adversely affect home values and sales over time," she said. "As the housing market adjusts to the new law, Realtors® will be listening to their clients and communicating to lawmakers ways to ensure owning a home is truly incentivized in the tax code." All-cash sales were 20 percent of transactions in December, which is down from 22 percent in November and 21 percent a year ago. Individual investors, who account for many cash sales, purchased 16 percent of homes in December, up from 14 percent both last month and a year ago. For the year, all-cash sales averaged 21 percent of sales (23 percent in 2016), and investor sales were at 15 percent (14 percent in 2016). Distressed sales – foreclosures and short sales – were 5 percent of sales in December, up from 4 percent in November but down from 7 percent a year ago. Four percent of December sales were foreclosures and 1 percent were short sales. Single-family and Condo/Co-op Sales Single-family home sales declined 2.6 percent to a seasonally adjusted annual rate of 4.96 million in December from 5.09 million in November, but are still 1.0 percent above the 4.91 million pace a year ago. The median existing single-family home price was $248,100 in December, up 5.8 percent from December 2016. Existing condominium and co-op sales fell 11.6 percent to a seasonally adjusted annual rate of 610,000 units in December, but are still 1.7 percent above a year ago. The median existing condo price was $236,500 in December, which is 6.4 percent above a year ago. Regional Breakdown December existing-home sales in the Northeast fell 7.5 percent to an annual rate of 740,000, and are now 2.6 percent below a year ago. The median price in the Northeast was $261,400, which is 3.0 percent above December 2016. In the Midwest, existing-home sales dipped 6.3 percent to an annual rate of 1.33 million in December, but are still 1.5 percent above a year ago. The median price in the Midwest was $191,400, up 7.8 percent from a year ago. Existing-home sales in the South decreased 1.7 percent to an annual rate of 2.30 million in December, but are still 3.1 percent higher than a year ago. The median price in the South was $221,200, up 5.8 percent from a year ago. Existing-home sales in the West declined 1.6 percent to an annual rate of 1.20 million in December, and are now 0.8 percent below a year ago. The median price in the West was $367,400, up 7.3 percent from December 2016. 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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SmartZip Accelerates its Enterprise Footprint with New Marketing Automation Capabilities and Top-Tier Franchise, Broker and Mortgage Customers
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CoreLogic: Most Cities Shortlisted for Amazon’s Second Headquarters Are Already 'Hot' Housing Markets
More Than Half of Potential Cities Have "Overvalued" Housing Markets January 18, 2018, Irvine, Calif. – CoreLogic®, a leading global property information, analytics and data-enabled solutions provider, today revealed its analysis of the housing economy in cities* being considered for Amazon's "second headquarters" location. CoreLogic monitors the health of the housing economy through historic home price changes and other market conditions including sustainability of prices in the market, referred to as the CoreLogic Market Condition Indicators (MCI). 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, while an undervalued housing market is one in which home prices are at least 10 percent below the sustainable level. Source: CoreLogic, November 2017 *CoreLogic does not monitor the Toronto, Canada market "As leaders at Amazon continue to narrow their location choices, the housing situation is an important consideration," said Dr. Frank Nothaft, chief economist for CoreLogic. "Some of the contenders have home price increases that are trending higher than the national average of 6 percent. Denver and Nashville lead the pack with home price increases at more that 8 percent, but CoreLogic research indicates that these markets are overvalued right now. Adding a job creator like Amazon would add further housing demand and upward pressure to housing costs." 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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Realtors® Housing Minute: A Video Recap of Market Activity in November
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HUD and Census Bureau Report Residential Construction Activity in November 2017
WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) and the U.S. Census Bureau jointly announced the following new residential construction statistics for November 2017. Building Permits: Privately owned housing units authorized by building permits in November were at a seasonally adjusted annual rate of 1,298,000. This is 1.4 percent (±1.7 percent)* below the revised October rate of 1,316,000 but is 3.4 percent (±2.3 percent) above the November 2016 rate of 1,255,000. Single-family authorizations in November were at a rate of 862,000; this is 1.4 percent (±1.6 percent)* above the revised October figure of 850,000. Authorizations of units in buildings with five units or more were at a rate of 395,000 in November. Housing Starts: Privately owned housing starts in November were at a seasonally adjusted annual rate of 1,297,000. This is 3.3 percent (±9.1 percent)* above the revised October estimate of 1,256,000 and is 12.9 percent (±11.7 percent) above the November 2016 rate of 1,149,000. Single-family housing starts in November were at a rate of 930,000; this is 5.3 percent (±10.2 percent)* above the revised October figure of 883,000. The November rate for units in buildings with five units or more was 359,000. Housing Completions: Privately owned housing completions in November were at a seasonally adjusted annual rate of 1,116,000. This is 6.1 percent (±10.4 percent)* below the revised October estimate of 1,189,000 and is 7.2 percent (±12.5 percent)* below the November 2016 rate of 1,203,000. Single-family housing completions in November were at a rate of 752,000; this is 4.6 percent (±12.0 percent)* below the revised October rate of 788,000. The November rate for units in buildings with five units or more was 353,000. The December report is scheduled for release on January 18, 2018. Read more about new residential construction activity. Explanatory Notes In interpreting changes in the statistics in this release, note that month-to-month changes in seasonally adjusted statistics often show movements which may be irregular. It may take three months to establish an underlying trend for building permit authorizations, six months for total starts, and six months for total completions. The statistics in this release are estimated from sample surveys and are subject to sampling variability as well as nonsampling error including bias and variance from response, nonreporting, and undercoverage. Estimated relative standard errors of the most recent data are shown in the tables. Whenever a statement such as “2.5 percent (±3.2 percent) above” appears in the text, this indicates the range (-0.7 to +5.7 percent) in which the actual percentage change is likely to have occurred. All ranges given for percentage changes are 90 percent confidence intervals and account only for sampling variability. If a range does not contain zero, the change is statistically significant. If it does contain zero, the change is not statistically significant; that is, it is uncertain whether there was an increase or decrease. The same policies apply to the confidence intervals for percentage changes shown in the tables. On average, the preliminary seasonally adjusted estimates of total building permits, housing starts and housing completions are revised 3 percent or less. Explanations of confidence intervals and sampling variability can be found at the Census Bureau’s website. * The 90 percent confidence interval includes zero. In such cases, there is insufficient statistical evidence to conclude that the actual change is different from zero.
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CoreLogic Reports Fourth Consecutive Month with More Than 6 Percent Year-Over-Year Home Price Growth in November
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Pending Home Sales Inch Up 0.2 Percent in November
WASHINGTON (December 27, 2017) — Pending home sales were mostly unmoved in November, but did squeak out a minor gain both on a monthly and annualized basis, according to the National Association of Realtors®. Heading into 2018, existing-home sales and price growth are forecast to slow, primarily because of the altered tax benefits of homeownership affecting some high-cost areas. The Pending Home Sales Index, a forward-looking indicator based on contract signings, rose 0.2 percent to 109.5 in November from 109.3 in October. With last month's modest increase, the index remains at its highest reading since June (110.0), and is now 0.8 percent above a year ago. Lawrence Yun, NAR chief economist, says contract signings mustered a small gain in November and were up annually for the first time since June. "The housing market is closing the year on a stronger note than earlier this summer, backed by solid job creation and an economy that has kicked into a higher gear," he said. "However, new buyers coming into the market are finding out quickly that their options are limited and competition is robust. Realtors® say many would-be buyers from earlier this year, stifled by tight supply and higher prices, are still trying to buy a home." One of the biggest questions heading into 2018, according to Yun, is if the depressed levels of available supply can improve enough to slow price growth and make buying a home more affordable. While last month's significant boost in existing sales was noteworthy, it did come with some concerns. Sales prices were up 5.8 percent – more than double wage growth – and the 3.4-month supply of homes on the market was the lowest since NAR began tracking in 1999. "The strengthening economy, and expectation that more millennials will want to buy, serve as promising signs for solid homebuying demand next year, while also putting additional pressure on inventory levels and affordability," said Yun. "Sales do have room for growth in most areas, but nationally, overall activity could be slightly negative. Markets with high home prices and property taxes will likely feel some impact from the reduced tax benefits of owning a home." Yun forecasts for existing-home sales to finish 2017 at around 5.54 million, which is an increase of 1.7 percent from 2016 (5.45 million). The national median existing-home price this year is expected to increase around 6 percent. In 2018, Yun anticipates essentially no change (a decline of 0.4 percent) in existing sales (5.52 million), and price growth to moderate to around 2 percent. The PHSI in the Northeast jumped 4.1 percent to 98.9 in November, and is now 1.1 percent above a year ago. In the Midwest the index rose 0.4 percent to 105.8 in November, and is now 0.8 percent higher than November 2016. Pending home sales in the South decreased 0.4 percent to an index of 123.1 in November but are still 2.5 percent higher than last November. The index in the West declined 1.8 percent in November to 100.4, and is now 2.3 percent below a year ago. 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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Median Down Payment for U.S. Homes Purchased in Q3 2017 Increases to a New High of $20,000
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Existing-Home Sales Soar 5.6 Percent in November to Strongest Pace in Over a Decade
WASHINGTON (December 20, 2017) — Existing-home sales surged for the third straight month in November and reached their strongest pace in almost 11 years, according to the National Association of Realtors®. All major regions except for the West saw a significant hike in sales activity last month. Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, jumped 5.6 percent to a seasonally adjusted annual rate of 5.81 million in November from an upwardly revised 5.50 million in October. After last month's increase, sales are 3.8 percent higher than a year ago and are at their strongest pace since December 2006 (6.42 million). Lawrence Yun, NAR chief economist, says home sales in most of the country expanded at a tremendous clip in November. "Faster economic growth in recent quarters, the booming stock market and continuous job gains are fueling substantial demand for buying a home as 2017 comes to an end," he said. "As evidenced by a subdued level of first-time buyers and increased share of cash buyers, move-up buyers with considerable down payments and those with cash made up a bulk of the sales activity last month. The odds of closing on a home are much better at the upper end of the market, where inventory conditions continue to be markedly better." The median existing-home price for all housing types in November was $248,000, up 5.8 percent from November 2016 ($234,400). November's price increase marks the 69th straight month of year-over-year gains. Total housing inventory at the end of November dropped 7.2 percent to 1.67 million existing homes available for sale, and is now 9.7 percent lower than a year ago (1.85 million) and has fallen year-over-year for 30 consecutive months. Unsold inventory is at a 3.4-month supply at the current sales pace, which is down from 4.0 months a year ago. "The anticipated rise in mortgage rates next year could further cut into affordability if these staggeringly low supply levels persist," said Yun. "Price appreciation is too fast in a lot of markets right now. The increase in homebuilder optimism must translate to significantly more new construction in 2018 to help ease these acute inventory shortages." First-time buyers were 29 percent of sales in November, which is down from 32 percent both in October and a year ago. NAR's 2017 Profile of Home Buyers and Sellers – released earlier this year – revealed that the annual share of first-time buyers was 34 percent. Matching the highest share since May, all-cash sales were 22 percent of transactions in November, which is up from 20 percent in October and 21 percent a year ago. Individual investors, who account for many cash sales, purchased 14 percent of homes in November, up from 13 percent last month and unchanged from a year ago. "The elevated presence of investors paying in cash continues to add a layer of frustration to the supply and affordability headwinds aspiring first-time buyers are experiencing," said Yun. "The healthy labor market and higher wage gains are expected to further strengthen buyer demand from young adults next year. Their prospects for becoming homeowners will only improve if more lower-priced and smaller-sized homes come onto the market." Properties typically stayed on the market for 40 days in November, which is up from 34 days in October but down from 43 days a year ago. Forty-four percent of homes sold in November were on the market for less than a month. Realtor.com®'s Market Hotness Index, measuring time on the market data and listings views per property, revealed that the hottest metro areas in November were San Jose-Sunnyvale-Santa Clara, Calif.; Vallejo-Fairfield, Calif.; San Francisco-Oakland-Hayward, Calif.; San Diego-Carlsbad, Calif.; and Stockton-Lodi, Calif. According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage increased for the second straight month to 3.92 percent in November from 3.90 percent in October. The average commitment rate for all of 2016 was 3.65 percent. On the topic of tax reform, NAR President Elizabeth Mendenhall, a sixth-generation Realtor® from Columbia, Missouri and CEO of RE/MAX Boone Realty, says it's good news homeowners can continue to count on tax incentives such as the mortgage interest deduction and the state and local tax deduction. "Only 6 percent of homeowners have mortgages exceeding $750,000, and only 5 percent pay more than $10,000 in property taxes, but most homeowners won't itemize under the new regime," she said. "While we're pleased that important homeownership incentives such as the capital gains exclusion survived in conference, additional changes are required to truly incentivize homeownership in the tax code." Distressed sales – foreclosures and short sales – were 4 percent of sales for the fourth straight month in November, and are down from 6 percent a year ago. Three percent of November sales were foreclosures and 1 percent were short sales. Single-family and Condo/Co-op Sales Single-family home sales grew 4.5 percent to a seasonally adjusted annual rate of 5.09 million in November from 4.87 million in October, and are now 3.2 percent above the 4.93 million pace a year ago. The median existing single-family home price was $248,800 in November, up 5.4 percent from November 2016. Existing condominium and co-op sales increased 14.3 percent to a seasonally adjusted annual rate of 720,000 units in November, and are now 7.5 percent above a year ago. The median existing condo price was $242,500 in November, which is 8.8 percent above a year ago. Regional Breakdown November existing-home sales in the Northeast leaped 6.7 percent to an annual rate of 800,000, (unchanged from a year ago). The median price in the Northeast was $273,600, which is 4.0 percent above November 2016. In the Midwest, existing-home sales jumped 8.4 percent to an annual rate of 1.42 million in November, and are now 6.8 percent above a year ago. The median price in the Midwest was $196,100, up 8.8 percent from a year ago. Existing-home sales in the South expanded 8.3 percent to an annual rate of 2.34 million in November, and are now 4.0 percent higher than a year ago. The median price in the South was $216,200, up 4.8 percent from a year ago. Existing-home sales in the West declined 2.3 percent to an annual rate of 1.25 million in November, but are still 2.5 percent above a year ago. The median price in the West was $375,100, up 8.2 percent from November 2016. 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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CoreLogic Reports September Mortgage Delinquency Rates Lowest in More Than a Decade
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zavvie Reveals Colorado's Hottest Neighborhoods with 'Hot Hoodz'
Denver, CO – December 13, 2017 – What are Colorado's hottest neighborhoods? Denver's West Colfax and Chaffee Park are on the list, as are Old Town in Windsor, Downtown in Colorado Springs, and Keewaydin in Boulder. That's according to December's "Hot Hoodz," released by zavvie, a national HyperLocal and social media real estate marketing startup based in Boulder. Colorado's Hot Hoodz discovers up-and-coming Colorado neighborhoods. How does zavvie know this? Based on three factors, says zavvie COO Stefan Peterson: Median Home Price Appreciation Internet Buzz Social Media Engagement Per Neighborhood (a zavvie proprietary social index) "zavvie studies a variety of online analytics to select these Hot Hoodz," said Peterson, "including the insight we get from zavvie real estate agents across Colorado. By combining online analytics, local online engagement, and sales metrics, like price appreciation, each month, we will select and announce several new Hot Hoodz based on these factors." For each Hot Hoodz, zavvie is publishing a digital buzz sheet that contains a few interesting and fun facts about each local neighborhood selected, as well as market observations from a local real estate agent: West Colfax (Denver): Median Home Price Appreciation/12 months – Up 14.7% - Believe it or not, Colfax was once known as Brooklyn – in the last 1880s and in the early 20th Century, was nicknamed "No Man's Land" because it was sparsely settled. No more, notes local real estate agent Morgan Riss. "It is an amazing community that is very involved in what is going on and collectively tries to make it a better place to live," Riss said. "Residents enjoy being close to Downtown, the Light Rail, The Highlands and Jefferson Park and there are plenty of new retail developments going on in the area." Chaffee Park (Denver): Median Home Price Appreciation/12 months – Up 16.5% - Chaffee Park is named after one of the founders of Denver, Jerome Chaffee, whose daughter married Ulysses S. Grant Jr., son of the US President. Here are some comments from local real estate agents: "Chaffee Park has been on the upswing for years, with new families moving into homes that are attractively priced compared with the nearby neighborhoods. It's a great place to live, mixing an urban feel with a wholesome old neighborhood atmosphere. It's also convenient to downtown, and features the beautiful Zuni Park. No wonder people moving here feel they've found a hidden gem." Keewaydin (Boulder): Median Home Price Appreciation/12 months – Up 27.5% - The town's name means "the Northwest wind" and comes from the poem, The Song of Hiawatha, by Henry Wadsworth Longfellow. According to local real estate agent Erick Boye, "Keewaydin is an awesome neighborhood: Tough to spell – easy to live here. What makes Keewaydin great is its affordability in relation to many other areas of Boulder. Aside from price and location, what makes Keewaydin so popular is the people who live here. I met my clients for a final walk-through, and I was pleasantly surprised to see a bunch of surrounding neighbors walk right over to meet the new owners and welcome them to the neighborhood." Downtown Colorado Springs: Median Home Price Appreciation/12 months – Up 12.4% - Some homes date back to the late 1800s and William Jackson Palmer who founded Colorado Springs in 1871 was the same man who founded Union Pacific Railroad. Local real estate agent Summer Liebold notes, "With all the excitement of new businesses coming in, people are finding Downtown Colorado Springs has a lot to offer. Buyers really value the historic homes, and demand is high while inventory is still low." Old Town Windsor: Median Home Price Appreciation/12 months – Up 15.6% - Windsor was known as "half-way house" in 1873, because it was halfway between Ft. Collins and Greeley. Local real estate agent Mark Despain notes, "A house on just about every block is being renovated or has been renovated in the last two years. The charm of the tree-lined streets and classic architecture is certainly a big draw, but there is so much more the Old Town area has to offer." The Hot Hoodz digital buzz sheets are available for free download at zavvie's website at http://www.zavvie.com/hothoodz. About zavvie zavvie is the nation's first HyperLocal marketing platform, the place where savvy, trusted local real estate agents go to tap into the most powerful way for a real estate agent to grow and maintain a successful real estate business. zavvie delivers to brokerages, teams and agents, a complete social media and HyperLocal system for top agents to build their listing business and make – or keep –them the dominant agent in their neighborhood. Discover more at zavvie.com.
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U.S. Home Flipping Returns Drop to Two-Year Low in Q3 2017
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CoreLogic US Home Price Report Marks Second Consecutive Month of 7 Percent Year-Over-Year Increases in October
December 05, 2017, Irvine, Calif. – CoreLogic®, a leading global property information, analytics and data-enabled solutions provider, today released its CoreLogic Home Price Index (HPI™) and HPI Forecast™ for October 2017, which shows home prices are up both year over year and month over month. Home prices nationally increased year over year by 7 percent from October 2016 to October 2017, and on a month-over-month basis home prices increased by 0.9 percent in October 2017 compared with September 2017,* according to the CoreLogic HPI. Looking ahead, the CoreLogic HPI Forecast indicates that home prices will increase by 4.2 percent on a year-over-year basis from October 2017 to October 2018, and on a month-over-month basis home prices are expected to decrease by 0.2 percent from October 2017 to November 2017. The CoreLogic HPI Forecast is a projection of home prices 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. "Single-family residential sales and prices continued to heat up in October," said Dr. Frank Nothaft, chief economist for CoreLogic. "On a year-over-year basis, home prices grew in excess of 6 percent for four consecutive months ending in October, the longest such streak since June 2014. This escalation in home prices reflects both the acute lack of supply and the strengthening economy." According to CoreLogic Market Condition Indicators (MCI) data, an analysis of housing values in the country's 100 largest metropolitan areas based on housing stock, 37 percent of metropolitian areas have an overvalued housing stock as of October 2017. 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. Also, as of October, 26 percent of the top 100 metropolitan areas were undervalued and 37 percent were at value. When looking at only the top 50 markets based on housing stock, 50 percent were overvalued, 14 percent were undervalued and 36 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, while an undervalued housing market is one in which home prices are at least 10 percent below the sustainable level. "The acceleration in home prices is good news for both homeowners and the economy because it leads to higher home equity balances that support consumer spending and is a cushion against mortgage risk," said Frank Martell, president and CEO of CoreLogic. "However, for entry-level renters and first-time homebuyers, it leads to tougher affordability challenges. According to the CoreLogic Single-Family Rent Index, rents paid by entry-level renters for single-family homes rose by 4.2 percent from October 2016 to October 2017 compared with overall single-family rent growth of 2.7 percent over the same time." *September 2017 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. 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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Markets in Colorado, New Hampshire, Illinois, DC, and Tennessee Top List of Where Homebuyers are Most Likely to Move in Q4 2017
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Pending Home Sales Strengthen 3.5 Percent in October
WASHINGTON (November 29, 2017) — Pending home sales rebounded strongly in October following three straight months of diminishing activity, but still continued their recent slide of falling behind year ago levels, according to the National Association of Realtors®. All major regions except for the West saw an increase in contract signings last month. The Pending Home Sales Index, a forward-looking indicator based on contract signings, rose 3.5 percent to 109.3 in October from a downwardly revised 105.6 in September. The index is now at its highest reading since June (110.0), but is still 0.6 percent below a year ago. Lawrence Yun, NAR chief economist, says pending sales in October were primarily driven higher by a big jump in the South, which saw a nice bounce back after hurricane-related disruptions in September. "Last month's solid increase in contract signings were still not enough to keep activity from declining on an annual basis for the sixth time in seven months," he said. "Home shoppers had better luck finding a home to buy in October, but slim pickings and consistently fast price gains continue to frustrate and prevent too many would-be buyers from reaching the market." According to Yun, the supply and affordability headwinds seen most of the year have not abated this fall. Although homebuilders are doing their best to ramp up production of single-family homes amidst ongoing labor and cost challenges, overall activity still drastically lags demand. Further exacerbating the inventory scarcity is the fact that homeowners are staying in their homes longer. NAR's 2017 Profile of Home Buyers and Sellers – released last month – revealed that homeowners typically stayed in their home for 10 years before selling (an all-time survey high). Prior to 2009, sellers consistently lived in their home for a median of six years before selling. "Existing inventory has decreased every month on an annual basis for 29 consecutive months, and the number of homes for sale at the end of October was the lowest for the month since 1999," said Yun. "Until new home construction climbs even higher and more investors and homeowners put their home on the market, sales will continue to severely trail underlying demand." With two months of data remaining for the year, Yun forecasts for existing-home sales to finish at around 5.52 million, which is an increase of 1.3 percent from 2016 (5.45 million). The national median existing-home price this year is expected to increase around 6 percent. In 2016, existing sales increased 3.8 percent and prices rose 5.1 percent. The PHSI in the Northeast inched forward 0.5 percent to 95.0 in October, but is still 1.9 percent below a year ago. In the Midwest the index increased 2.8 percent to 105.8 in October, but remains 0.9 percent lower than October 2016. Pending home sales in the South jumped 7.4 percent to an index of 123.6 in October and are now 2.0 percent higher than last October. The index in the West decreased 0.7 percent in October to 101.6, and is now 4.4 percent below a year ago. 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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Housing Supply Shortages Slowing First-time Buyers; Signs of Hope Exist for More New Construction
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HUD and Census Bureau Report New Residential Sales in October 2017
WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) and the U.S. Census Bureau today jointly announced the following new residential sales statistics for October 2017: New Home Sales Sales of new single-family houses in October 2017 were at a seasonally adjusted annual rate of 685,000, according to estimates released jointly today by the Department of Housing and Urban Development and the U.S. Census Bureau. This is 6.2 percent (±19.0 percent)* above the revised September rate of 645,000, and is 18.7 percent (±23.5 percent)* above the October 2016 estimate of 577,000. Sales Price The median sales price of new houses sold in October 2017 was $312,800. The average sales price was $400,200. For Sale Inventory and Months' Supply The seasonally adjusted estimate of new houses for sale at the end of October was 312,800. This represents a supply of 4.9 months at the current sales rate. New Residential Sales data for November 2017 will be released on Friday, December 22, 2017. Read more about new residential sales activity. Explanatory Notes In interpreting changes in the statistics in this release, note that month-to-month changes in seasonally adjusted statistics often show movements which may be irregular. It may take three months to establish an underlying trend for building permit authorizations, six months for total starts, and six months for total completions. The statistics in this release are estimated from sample surveys and are subject to sampling variability as well as nonsampling error including bias and variance from response, nonreporting, and undercoverage. Estimated relative standard errors of the most recent data are shown in the tables. Whenever a statement such as "2.5 percent (±3.2 percent) above" appears in the text, this indicates the range (-0.7 to +5.7 percent) in which the actual percentage change is likely to have occurred. All ranges given for percentage changes are 90 percent confidence intervals and account only for sampling variability. If a range does not contain zero, the change is statistically significant. If it does contain zero, the change is not statistically significant; that is, it is uncertain whether there was an increase or decrease. The same policies apply to the confidence intervals for percentage changes shown in the tables. On average, the preliminary seasonally adjusted estimates of total building permits, housing starts and housing completions are revised 3 percent or less. Explanations of confidence intervals and sampling variability can be found at the Census Bureau's website. * The 90 percent confidence interval includes zero. In such cases, there is insufficient statistical evidence to conclude that the actual change is different from zero.
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Existing-Home Sales Grow 2.0 Percent in October
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What Happens to the Real Estate Market When Supply Falls for 25 Straight Months?
Home Prices Rose 7.1 Percent as Home Sales Stalled in October SEATTLE--(Nov. 16, 2017) — Home price growth was strong in October, up 7.6 percent compared to a year ago, according to Redfin, the next-generation real estate brokerage. The median sale price was $288,000 across the markets Redfin serves. Sales were essentially unchanged from October of last year, down 0.1 percent. Home sales have declined year over year for the past four months. "Despite strong buyer demand, sales are sputtering due to low inventory," said Redfin chief economist Nela Richardson. "The last time we saw a substantial increase in the number of homes for sale, Donald Trump was a candidate in a Republican field of 11." Nationally, the number of homes for sale plunged 12.2 percent, the sharpest year-over-year decline in inventory since 2013. There was a 3.1-month supply of homes in October. Less than six months of supply signals the market is tilted in favor of sellers. We have not seen more than 6 months of supply in any month since January 2012. The low-inventory situation is particularly stark in West Coast markets. The San Jose metro area saw the steepest year-over-year inventory drop and the sharpest corresponding price increase. There were fewer than half as many homes for sale in October as there were a year earlier, sending prices up 19.2 percent to a median of $1.05 million. In San Jose the typical home that sold last month found a buyer in 12 days. Just eight of the 74 metros Redfin tracks posted year-over-year increases in inventory. These rare supply gains were seen primarily in smaller markets in the Midwest and the South, including Austin, New Orleans, St. Louis, Dallas, and Nashville. Nationally, the typical home spent 44 days on the market, five days fewer than last October. Last month, average sale-to-list price ratio was 98.2 percent, up from 97.9 percent a year earlier, and 22.5 percent of homes sold above their list price, compared with 21.5 percent in October 2016. "The House of Representatives and Senate are debating tax reform proposals that could have a significant impact on homeowners, particularly in states with expensive homes and high property taxes like California, New York and New Jersey," said Richardson. Both the House and Senate versions of the tax-overhaul proposal include some reduction of the state and local income- and property-tax (SALT) deductions, and the House version of the bill proposes changes to the Mortgage Interest Deduction. Nick Boniakowski, Redfin market manager in Northern New Jersey, reports that the uncertainty is leading some prospective homebuyers to take a step back from the market while they wait to see what happens with the tax bill and how it could affect their budgets. Still, many are pressing forward with their home purchases, knowing the bills are subject to change and both the timeline and likelihood of passage are unclear. "If either of the current bills were to pass, it's likely that buyer demand would weaken in expensive, high-tax states, especially for homes at higher price points, though any market shifts will be gradual," said Richardson. Other October Highlights Competition Seattle, WA was the fastest market with the typical home finding a buyer in just 10 days, down from 13 days a year earlier. San Jose, CA and Boston, MA were the next fastest markets with 12 and 14 median days on market, followed by Oakland, CA (15) and San Francisco, CA (15). The most competitive market in October was San Francisco, CA where 78.6% of homes sold above list price, followed by 76.3% in San Jose, CA, 63.7% in Oakland, CA, 45.6% in Seattle, WA, and 42.8% in Tacoma, WA. Prices 9 metro areas had double-digit increases in the median sale price. San Jose, CA led the nation in price growth, rising 19.2% since last year to $1,049,000. Seattle, WA had the second highest growth at 16.5%, followed by Las Vegas, NV (14.6%), Oakland, CA (13.1%), and Salt Lake City, UT (12.6%). 6 metros saw price declines in October. Prices in Columbia, SC declined the most since last year falling 5.4 percent to $139,000. Sales 7 out of 74 metros saw sales surge by double digits from last year. Camden, NJ led the nation in year-over-year sales growth, up 31%, followed by Baltimore, MD, up 19%. Tacoma, WA rounded out the top three with sales up 18% from a year ago. Baton Rouge, LA saw the largest decline in sales since last year, falling 20.3%. Home sales in Fort Lauderdale, FL declined by 18.0%. Inventory San Jose, CA had the largest decrease in overall inventory, falling 51.6% since last October. San Francisco, CA (-28.5%), Atlanta, GA (-27.8%), and Buffalo, NY (-26.7%) also saw far fewer homes available on the market than a year ago. Only 8 of 74 metros posted inventory gains, these were primarily smaller metro areas in the South and Midwest. Raleigh, NC had the largest increase in the number of homes for sale, up 16.1% year over year, followed by Baton Rouge, LA (12.9%), Austin, TX (8.8%), New Orleans, LA (7.5%), St. Louis, MO (4.8%), Dallas, TX (4.1%), Nashville, TN (2.7%) and Allentown, PA (2.5%). To read the full report, complete with data and charts, please visit this link. 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 $50 billion in home sales.
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Home Prices Boom 10 Years After Housing Crisis
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Redfin Migration Report: Top Migration Destinations Include Nation's Most Active Metros for Residential Construction
For the First Time, Nashville Ranks among the Top 10 Migration Destinations, at #8 SEATTLE -- Twenty-two percent of Redfin.com users searched for homes outside their home metro in the third quarter of 2017, according to the latest Migration Report from Redfin, the next-generation real estate brokerage. The number of long-distance searchers was up slightly from 21 percent in the second quarter and 20 percent in the first quarter. The analysis is based on a sample of more than one million Redfin.com users searching for homes across 75 metro areas from July through September. Redfin began systematically tracking homebuyer migration at the beginning of this year, so there is not enough historical data to determine if the current trends follow a seasonal pattern. Nashville appeared among the top 10 migration destinations for the first time last quarter. Nearly a third of all users searching for homes in Nashville were searching from another metro the area, among which just over a quarter (25.6%) searched from New York. "We help people from across the country search for homes in Nashville," said Redfin Nashville agent Phillip Bernier, who has recently worked with buyers relocating from Chicago, San Diego and San Francisco. "The cost of living is low and there is plenty to do downtown, but at the same time there is still a lot of natural beauty. You can be on a horse, on a lake or on a trail within a five-minute drive from downtown. The city is growing quickly. We have a running joke that the new state bird is the crane. If you look at the Nashville skyline, you can see 10 to 12 cranes at any given time." Another new trend revealed in Redfin's third quarter migration analysis was that many of the cities experiencing a high net inflow of homebuyers were also places with higher than average rates of residential construction activity per capita. Conversely, metros experiencing net outflow tended to have lower than average rates of new construction. According to a Redfin analysis of new construction data, nationally, there were 10.7 new residential housing units permitted to be built per 10,000 residents in September 2017. Seven of the 10 metros with the highest net inflow had more permitted units than the national average. Nashville was also among the metros with the highest rates of new permit activity at 27 permitted new residential units per 10,000 residents. The metro areas poised to build the most new homes in the coming months are Houston, TX (10,000), Dallas, TX (9,400), Phoenix, AZ (7,800), and Atlanta, GA (7,700). The third quarter also saw the continuation of several trends that dominated migration patterns in the first half of the year, including: Affordable, mid-tier metros like Sacramento, Phoenix and Atlanta drew prospective homebuyers from expensive coastal cities; The South and Sunbelt continued to see more incoming than outgoing searches; and The Rust Belt cities of Detroit, Dayton and Milwaukee experienced a net outflow of user searches. *Combined statistical areas with at least 500 users in Q3 2017†Among the one million users sampled for this analysis only *Combined statistical areas with at least 500 users in Q3 2017†Among the one million users sampled for this analysis only To read the full report, complete with an interactive data map of metro-to-metro migration trends and full 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 $50 billion in home sales.
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Metro Home Prices Maintain Fast Growth in Third Quarter; Rise 5.3 Percent
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CoreLogic US Home Price Report Reveals Nearly Half of the Nation's Largest 50 Markets are Overvalued
November 07, 2017, Irvine, Calif. – CoreLogic®, a leading global property information, analytics and data-enabled solutions provider, today released its CoreLogic Home Price Index (HPI™) and HPI Forecast™ for September 2017, which shows home prices are up strongly both year over year and month over month. Home prices nationally increased year over year by 7 percent from September 2016 to September 2017, and on a month-over-month basis, home prices increased by 0.9 percent in September 2017 compared with August 2017,* according to the CoreLogic HPI. Looking ahead, the CoreLogic HPI Forecast indicates that home prices will increase by 4.7 percent on a year-over-year basis from September 2017 to September 2018, and on a month-over-month basis home prices are expected to decrease by 0.1 percent from September 2017 to October 2017. The CoreLogic HPI Forecast is a projection of home prices 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. "Heading into the fall, home price growth continues to grow at a brisk pace," said Dr. Frank Nothaft, chief economist for CoreLogic. "This appreciation reflects the low for-sale inventory that is holding back sales and pushing up prices. The CoreLogic Single-Family Rent Index rose about 3 percent over the last year, less than half the rise in the national Home Price Index." According to CoreLogic Market Condition Indicators (MCI) data, an analysis of housing values in the country's 100 largest metropolitan areas based on housing stock, 36 percent of cities have an overvalued housing stock as of September 2017. 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. Also, as of September, 28 percent of the top 100 metropolitan areas were undervalued and 36 percent were at value. When looking at only the top 50 markets based on housing stock, 48 percent were overvalued, 16 percent were undervalued and 36 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, while an undervalued housing market is one in which home prices are at least 10 percent below the sustainable level. "A strengthening economy, healthy consumer balance sheets and low mortgage interest rates are supporting the continued strong demand for residential real estate," said Frank Martell, president and CEO of CoreLogic. "While demand and home price growth is in a sweet spot, a third of metropolitan markets are overvalued and this will become more of an issue if prices continue to rise next year as we anticipate." *August 2017 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. 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. Distressed Sales Share Drops to 10-Year Low in Q3 2017
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Existing-Home Sales to Grow 3.7 Percent in 2018, but Inventory Shortages and Tax Reform Effects Loom
CHICAGO (November 3, 2017) — The steadily improving U.S economy, sustained job growth, and rising confidence that now is a good time to buy a home should pave the way for an increase in existing-home sales in 2018, but continued supply shortages, and passage of a tax bill that disincentives homeownership, threaten to handcuff what should be stronger activity. That is according to a residential housing and economic forecast session here at the 2017 REALTORS® Conference & Expo. Lawrence Yun, chief economist at the National Association of Realtors®, presented his 2018 housing and economic forecast and was joined onstage by Ken Rosen, chairman of Rosen Consulting Group and UC Berkeley's Fisher Center for Real Estate and Urban Economics. Rosen addressed the primary causes for the depressed U.S. homeownership rate and shared his proposed ideas, highlighted in a white paper released earlier today, on how to ensure more creditworthy households can enjoy the personal and financial benefits of owning a home. "Despite considerable demand all year, pending sales have lost a step in recent months because low supply is pushing prices higher and making homebuying less affordable in several parts of the country," said Yun. With a few months of data remaining in 2017, Yun estimates that existing-home sales will finish at a pace of 5.47 million – the best since 2006 (6.47 million), but only a modest improvement (0.4 percent) from 2016 (5.45 million). In 2018, sales are forecast to expand 3.7 percent to 5.67 million. The national median existing-home price is expected to rise to around 5.5 percent this year and next year. Yun and Rosen, however, both cautioned that the House Ways and Means Committee's release yesterday of its legislative proposal to overhaul the American tax code could very well affect home sales and prices next year and beyond. The tax bill in its current form is a direct tax hike on homeowners and nullifies the homeownership incentive for all but the top 5 percent of tax filers. Earlier this year, NAR released a full analysis of the House Republican blueprint for reform, finding that it could negatively affect home values by about 10 percent and raise taxes on middle-class homeowners by an average of $815. Much of Yun and Rosen's presentation focused on the reasons why many would-be buyers are not reaching the market. NAR's 2017 Profile of Home Buyers and Sellers, released earlier this week, revealed that first-time buyers were only 34 percent of sales over the past year, which was the fourth lowest since the survey began 36 years ago. Rosen, presenting findings from Rosen Consulting Group's three white papers released this year on the depressed homeownership rate, said a perverse mix of affordability challenges, student loan debt, tight credit conditions and housing supply shortages continue to hamper many households from owning a home. This is despite extremely low mortgage rates that should be fostering the biggest for-sale housing boom in American history. "Ownership rates are currently below their peak across the younger age groups and in cities that have seen sharp price increases, and it's not a good thing," said Rosen, "A higher rate of homeownership makes sense. It is so important to the financial health of the economy. Homeownership helps households accumulate wealth over time, reduces inequality, increases investments in communities and boosts economic growth." According to Yun, the biggest impediment to sales right now and into next year is the massive shortage of supply in relation to overall demand. The lagging pace of new home construction in recent years is further creating a logjam in housing turnover. Without enough new homes on the market, homeowners are typically staying put for a longer period of time before selling, typically 10 years, which is keeping inventory low and hurting affordability. "The lack of inventory has pushed up home prices by 48 percent from the low point in 2011, while wage growth over the same period has been only 15 percent," said Yun. "Despite improving confidence this year from renters that now is a good time to buy a home, the inability for them to do so is causing them to miss out on the significant wealth gains that homeowners have benefitted from through rising home values." Pointing to Los Angeles and the Bay Area as examples of areas with significant affordability constraints, Yun said unhealthy levels of price appreciation are also occurring in many other markets with strong job growth, but without the commensurate rise in housing starts. As a result, the ability to buy a home has become extremely difficult for even those with well-paying jobs and is forcing households to flee expensive areas in the West and Mountain regions for more affordable parts of the country. This in turn could affect future job growth in these areas and ultimately soften housing demand. Although Yun forecasts single-family housing starts to jump 9.4 percent to 950,000 next year, this is still below the 50-year average of around 1.2 million starts. New single-family home sales are likely to total 606,000 this year and rise to around 690,000 in 2018. Rosen agreed with Yun's remarks that a significant boost in residential construction is needed to improve affordability and increase sales. He explained that the white paper released today, "Rebuilding the American Dream: Strategies to Sustainably Increase Homeownership," identifies 25 ideas to bolster homeownership. They include: overriding restrictive zoning laws, promoting modular construction [to increase supply], a down payment savings program, tackling the burden of student debt, and a nationwide counseling program for homeowners who previously experienced foreclosure and may be hesitant to consider buying a home again, among others. "A willingness to embrace new ideas will go a long way towards easing the constraints of low supply, student debt and weaker affordability that are currently suppressing homeownership," said Rosen. After two consecutive quarters of economic growth of 3 percent, Yun expects GDP to come in around 2.2 percent for the year and to expand to 2.7 percent overall in 2018, as long as job growth remains solid and residential construction picks up. With the Federal Reserve unwinding its balance sheet and continuing its plan to slowly raise short-term rates, Yun believes mortgage rates will gradually climb towards 4.50 percent by the end of 2018. "An overwhelming majority of renters want to own a home in the future and believe it is part of their American Dream," said Yun. "Assuming there are no changes to the tax code that hurt homeownership, the gradually expanding economy and continued job creation should set the stage for a more meaningful increase in home sales in 2018." 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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Inventory Shortage Hits the Luxury Market, Sending Prices up 4.9 Percent in the Third Quarter
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Vacant Property Rate Increases From a Year Ago in 54 Percent of U.S. Local Housing Markets in Q3 2017
Vacant "Zombie" Pre-Foreclosures Down 22 Percent From Year Ago to New Low; Flint, Youngstown, Beaumont, Detroit, Mobile Top List of Most Vacant Metro Areas; Three Out of Four Vacant Residential Properties Nationwide Are Investment Homes IRVINE, Calif. – Oct. 26, 2017 — ATTOM Data Solutions, curator of the nation's largest multi-sourced property database, today released its 2017 U.S. Residential Vacant Property and Zombie Foreclosure Report, which shows nearly 1.4 million (1,367,793) U.S. residential properties (1 to 4 units) were vacant as of the end of the third quarter of 2017 — representing 1.58 percent of all U.S. residential properties. The 1.58 percent vacant property rate nationwide decreased slightly from 1.63 percent a year ago, but vacant property rates increased from a year ago in 81 of the 149 metropolitan statistical areas analyzed in the report (54 percent), including Chicago, New York, St. Louis, Baltimore and Phoenix. The report analyzes public record tax, deed and mortgage data collected by ATTOM Data Solutions — including foreclosure status, equity, and owner-occupancy status — matched against monthly updated vacant property data from the U.S. Postal Service. Vacant property data is available at the aggregate and address level for more than 120 million U.S. properties at http://marketinglists.realtytrac.com. The report also shows that the number of vacant "zombie" pre-foreclosure properties — which have started the foreclosure process but have not yet been repossessed by the foreclosing lender — decreased 22 percent from a year ago to 14,312 as of the end of Q3 2017, 67 percent below the peak of 44,030 in Q3 2013. The number of vacant bank-owned properties decreased 48 percent from a year ago to 24,026 as of the end of Q3 2017. "Zombie foreclosures have dwindled dramatically over the last four years as a supply-starved housing has soaked up even some of the most highly distressed properties," said Daren Blomquist, senior vice president at ATTOM Data Solutions. "There are still pockets of the country with high zombie foreclosure rates, and high vacant property rates in general, primarily in the Rust Belt and parts of the Northeast and Southeast — driven in large part by a high share of non-owner occupied vacant properties in those areas. "There is evidence that the ultra-tight inventory environment in some red-hot markets is beginning to ease just a bit, with vacant property rates nudging higher in markets such as San Jose, San Francisco, Los Angeles, Boston and Denver," Blomquist added. Zip codes where one in four residential properties is vacant States with the highest vacancy rates were Mississippi (3.00 percent); Michigan (2.94 percent); Indiana (2.77 percent); Oklahoma (2.73 percent); and Alabama (2.56 percent). Among 149 metropolitan statistical areas with at least 100,000 residential properties (1 to 4 units), those with the highest vacancy rates were Flint, Michigan (6.89 percent); Youngstown, Ohio (4.49 percent); Beaumont-Port Arthur, Texas (3.80 percent); Detroit, Michigan (3.77 percent); and Mobile, Alabama (3.77 percent). Among 405 counties with at least 50,000 residential properties, those with the highest vacancy rates were Baltimore City, Maryland (8.14 percent); Saint Louis City, Missouri (6.97 percent); Beaufort County, South Carolina (6.94 percent); Genesee County, Michigan (6.89 percent); and Wayne County, Michigan (6.76 percent). Among 13,616 U.S. zip codes with at least 1,000 residential properties, those with the highest vacancy rates were led by three zip codes in the city of Gary, Indiana: 46409 (30.26 percent); 46407 (29.62 percent); and 46402 (29.53 percent), followed by 48505 in Flint, Michigan (29.00 percent); and 44507 in Youngstown, Ohio (25.97 percent). 9 percent of zip codes have no vacant residential properties States with the lowest vacancy rates were South Dakota (0.25 percent); Vermont (0.39 percent); New Hampshire (0.42 percent); North Dakota (0.69 percent); and Colorado (0.69 percent). Among 149 metropolitan statistical areas with at least 100,000 residential properties, those with the lowest vacancy rates were San Jose, California (0.23 percent); Fort Collins, Colorado (0.24 percent); Lancaster, Pennsylvania (0.26 percent); Manchester, New Hampshire (0.31 percent); and Provo, Utah (0.34 percent). "The low vacant property rates in the Seattle region are good for landlords and sellers but not so good for buyers or renters," said Matthew Gardner, chief economist at Windermere Real Estate, covering the Seattle market, where the 0.9 percent vacant property rate was well below the national average and ranked No. 41 lowest among the 149 metro areas analyzed in the report. "It is indicative of the very hot housing market in Seattle and I believe that the percentages could drop even further as we move into 2018." Among 405 counties with at least 50,000 residential properties, those with the lowest vacancy rates were Loudon County, Virginia (0.09 percent); Douglas County, Colorado (0.10 percent); Spotsylvania County, Virginia (0.12 percent); Hays County, Texas (0.12 percent); and Shelby County, Alabama (0.14 percent). Among 13,616 U.S. zip codes with at least 1,000 residential properties, there were 1,282 zip codes with no vacant residential properties, including 28078 in Huntersville, North Carolina; 85383 in Peoria, Arizona; 34110 in Naples, Florida; 33018 in Hialeah, Florida; and 94546 in Castro Valley, California. "As home values and rental rates have continued to escalate across Southern California, vacant property rates have continued to decline across the region," said Michael Mahon, president at First Team Real Estate covering the Southern California market, where 23 zip codes across the 573 zip codes in the six-county region had no vacant residential properties. "With housing affordability becoming an increasing topic of concern, many residential properties are being converted to rental property inventory, in attempt to take advantage of the increasing demand of rental properties within the marketplace." Most zombie foreclosures in New York, New Jersey, Florida, Illinois, Ohio Nationwide a total of 14,312 properties in the foreclosure process were vacant as of the end of Q3 2017, representing 4.18 percent of all properties in foreclosure. States with the most of these vacant "zombie" foreclosures were New York (3,528), New Jersey (2,261), Florida (1,963), Illinois (999), and Ohio (974). Among 149 metropolitan statistical areas with at least 100,000 residential properties (1 to 4 units), those with the most vacant "zombie" foreclosures were New York-Newark-Jersey City, NY-NJ-PA (3,106); Philadelphia, Pennsylvania (813), Chicago, Illinois (665), Miami, Florida (571), and Tampa-St. Petersburg, Florida (477). Most vacant REOs in New York, Chicago, Philadelphia, Baltimore, Cleveland Nationwide a total of 24,026 bank-owned (REO) residential properties were vacant as of the end of Q3 2017, representing 15.33 percent of all bank-owned properties and down 48 percent from a year ago. States with the most vacant REO properties were Michigan (2,265), Ohio (2,213), Florida (2,087), New Jersey (2,017), and Illinois (1,561). Among 149 metropolitan statistical areas with at least 100,000 residential properties (1 to 4 units), those with the most vacant REO properties were New York-Newark-Jersey City, NY-NJ-PA (1,494); Chicago, Illinois (1,375); Philadelphia, Pennsylvania (1,007); Baltimore, Maryland (971); and Cleveland, Ohio (928). 75 percent of vacant properties are non-owner occupied (investment) Nationwide more than 1 million non-owner occupied (investment) residential properties (1,032,851) were vacant, representing 4.30 percent of all non-owner occupied residential properties and unchanged from a year ago. States with the highest vacancy rate for non-owner occupied (investment) properties were Michigan (9.84 percent); Indiana (9.52 percent); Kansas (7.11 percent); Mississippi (6.92 percent); and Alabama (6.83 percent). Among 149 metropolitan statistical areas with at least 100,000 residential properties (1 to 4 units), those with the highest vacancy rate for non-owner occupied (investment) properties were Flint, Michigan (23.64 percent); Youngstown, Ohio (12.01 percent); Detroit, Michigan (11.88 percent); South Bend, Indiana (10.47 percent); and Indianapolis, Indiana (10.46 percent). About ATTOM Data SolutionsATTOM Data Solutions is the curator of the ATTOM Data Warehouse, a multi-sourced national property database that blends property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, health hazards, neighborhood characteristics and other property characteristic data for more than 150 million U.S. residential and commercial properties. The ATTOM Data Warehouse delivers actionable data to businesses, consumers, government agencies, universities, policymakers and the media in multiple ways, including bulk file licenses, APIs and customized reports.
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Pending Home Sales Flatten in September
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Black Knight and Homebot Announce Strategic Alliance to Deliver Powerful, Cutting-Edge Mobile Engagement Solution for the Real Estate Industry
JACKSONVILLE, Fla., Oct. 17, 2017 -- Black Knight, Inc., a leading provider of integrated software, data and analytics solutions that facilitate and automate many of the business processes across the homeownership lifecycle, today announced a strategic alliance with Homebot, a fast-growing, privately held fintech company located in Denver, Colo. The two companies are offering Homebot's cutting-edge client engagement tool to the real estate industry. The Homebot application is a mobile-centric, interactive solution that enables real estate professionals to continuously engage their client base and help maintain long-term relationships. Leveraging Black Knight's nationwide, industry-leading property database and advanced analytics, including the company's automated valuation models, the Homebot application delivers actionable data to consumers to help them make informed home finance decisions and increase their wealth. Homebot offers consumers access to the application on the device of their choice, such as smartphones, tablets – even desktops. The solution leverages cutting-edge technology, including bots: small pieces of computer code that automatically gather the data and distill it in a clear, easy-to-understand format. Consumers receive a highly personalized monthly report that lets them know the value of their homes and how much wealth can be built from their properties. The report includes current value, available equity, potential rental and property-investment income, tips for saving money on mortgage payments, purchasing power for trading up to a new home and much more. The interactive application facilitates collaboration between real estate agents and consumers by allowing the homeowner to easily connect to the agent for more information. Branded to the real estate professional, the solution provides agents and brokers with a powerful client engagement tool. Additionally, the homeowner can share the application with friends and family -- so they can also receive personalized reports, generating more potential leads for agents. The solution also supports real estate brokerages that have in-house or affiliated mortgage lending capabilities by offering branding with both the agent and lender information, helping not only to generate more listings, but also opportunities for first and second mortgages, refinances and home equity lines. "Every year, real estate professionals spend a considerable amount of time and money on lead generation. Homebot offers an affordable, proven and automated way to keep agents top of mind with their clients, even after a sale has closed. By re-engaging an agent's entire client base every month with valuable wealth-building information, Homebot helps generate new referrals and increase Comparable Market Analysis volume for new listings. It fundamentally changes long-term client retention and engagement," said Homebot Chief Executive Officer Ernie Graham. "Our strategic alliance with Black Knight provides us with access to the company's nationwide leading data and analytics, so we can offer this unique and valuable solution across the U.S." "With the Homebot application, we are expanding on our strategy of providing the real estate industry with cutting-edge, mobile and collaborative tools that facilitate interactivity between real estate professionals and their clients," said Black Knight Data & Analytics Group Executive and President Kevin Coop. "Using Homebot, we can help industry professionals maintain long-term relationships with clients by providing valuable, actionable data, to help drive more business." About Homebot Homebot is a fast-growing, privately-held fintech company in Denver, Colorado. Homebot turns homeowners into wealth-builders by helping them maximize their wealth in the single largest asset they may ever own - their home. Homebot works with leaders in the mortgage lending and real estate industries who provide Homebot exclusively to their clients every month in order to build loyalty and engagement while increasing repeat and referral business. Learn more about Homebot at http://www.homebot.ai. About Black Knight Black Knight is a leading provider of integrated software, data and analytics solutions that facilitate and automate many of the business processes across the homeownership lifecycle. Black Knight is committed to being a premier business partner that clients rely on to achieve their strategic goals, realize greater success and better serve their customers by delivering best-in-class software, services and insights with a relentless commitment to excellence, innovation, integrity and leadership. For more information on Black Knight, please visit http://www.blackknightinc.com.
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Redfin: Home Sales Fell 8.1 Percent in September, Third Month in a Row of Declining Sales
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CoreLogic Releases First HPI Forecast Validation Report
October 19, 2017, Irvine, Calif. – CoreLogic®, a leading global property information, analytics and data-enabled solutions provider, today released its first CoreLogic HPI Forecast Validation Report that publicly compares its 12-month CoreLogic HPI Forecast to the actual CoreLogic HPI Index. The first report compares the changes in national and key Core Based Statistical Areas (CBSA)-level forecasts made in June 2016 to the actual HPI released in August of 2017, which includes data through June 2017. Going forward, CoreLogic will publish this report twice a year. The CoreLogic HPI Forecast is a projection of home prices using the CoreLogic HPI and other economic variables. National values are derived from state-level forecasts by weighing indices according to the number of housing units for each state. The first validation report shows: The national forecast prediction of a 5.4 percent increase was within 0.7 percent of the 6.1 percent increase of the HPI for the 12-month period ending in June 2017. The most accurate CBSA-level forecast was for the Phoenix-Mesa-Scottsdale, AZ area, which at 6.6 percent came within 0.4 percent of the actual HPI increase of 6.2 percent The widest CBSA gap was in Seattle-Bellevue-Everett, WA with an 8.4 percent under-estimation of actual increase (14.3 percent vs. 5.9 percent). Among other factors, the variance in this over-valued CBSA was due to unexpected acceleration in prices in early 2017 after a price deceleration earlier in 2016. The average absolute difference between the actual HPI 12-month increases and the forecasted 12-month increase for the 50 largest CBSAs was 2.5 percent. Among the 15 most accurately forecasted CBSAs, the average difference was 0.9 percent, and the range was between 0.4 percent and 1.5 percent. "Our clients leverage the CoreLogic HPI Forecasts to price portfolios, conduct stress testing, allocate cash reserves and conduct a host of other critical business functions," said Dr. Frank Nothaft, chief economist for CoreLogic. "With the introduction of the biannual HPI Forecast Validation Report, users can now get specific insight into the degree of accuracy of our HPI forecasts at the national and CBSA levels." 15 Most Accurately Forecasted CBSAs 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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Realtor.com Names 2017's Hottest ZIP Codes in America
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Home Affordability Improves in 60 Percent of U.S. Markets in Q3 2017 Compared to Previous Quarter
Affordability Still Worsens From a Year Ago in 79 Percent of Local Markets; Wage Growth Outpaces Home Price Growth in 48 Percent of Markets Over Past Year; U.S. Home Prices Up 73 Percent, Wages Up 13 Percent Since Q1 2012 IRVINE, Calif. – Oct. 5, 2017 — ATTOM Data Solutions, curator of the nation's largest multi-sourced property database, today released its Q3 2017 U.S. Home Affordability Index, which shows that home affordability in the third quarter improved compared to the previous quarter in 60 percent of 406 U.S. counties analyzed in the report — although affordability was still worse off than a year ago in 79 percent of those counties. The Q3 2017 home affordability index increased compared to the previous quarter (meaning homes were more affordable) in 243 of the 406 counties analyzed in the report (60 percent), including Los Angeles County, California; Cook County (Chicago), Illinois; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; and San Diego County, California. The Q3 2017 home affordability index decreased compared to the previous quarter (meaning homes were less affordable) in 163 (40 percent) of the 406 counties analyzed in the report, including Wayne County (Detroit), Michigan; Middlesex County (Boston), Massachusetts; along with three counties in the New York metro area: Suffolk, Bronx and Westchester. The national home affordability index was 100 in the third quarter of 2017, the lowest national affordability index since Q3 2008, when the index was 86. An index of 100 means the share of average wages needed to buy a median-priced home nationwide in Q3 2017 is on par with historic averages (see full methodology below). "Falling interest rates in the third quarter provided enough of a cushion to counteract rising home prices in most U.S. markets and provide at least some temporary relief for the home affordability crunch," said Daren Blomquist, senior vice president at ATTOM Data Solutions. "More sustainable relief for the affordability crunch, however, will need to be some combination of slowing home price appreciation and accelerating wage growth. Wage growth is outpacing home price growth in about half of all local markets so far this year, an indication that a more sustainable affordability pattern is taking shape in more local markets." Wage growth outpacing home price growth in 48 percent of markets Annual wage growth outpaced annual home price appreciation in 193 of the 406 counties analyzed in the third quarter (48 percent), down from 216 counties (53 percent) in Q2 2017 and down from 205 counties (50 percent) in Q1 2017 — the first time since Q1 2012 that at least half of all markets saw wage growth outpacing home price growth. Counties where wage growth outpaced home price growth in Q3 2017 included Cook County (Chicago), Illinois; Maricopa County (Phoenix), Arizona; Orange County, California; San Bernardino County, California; and Bexar County (San Antonio), Texas. "With Southern California boasting some of the highest average sales prices in the country, our market is a testament to the importance of local community job growth," said Michael Mahon, president at First Team Real Estate, covering Southern California. "Los Angeles County is experiencing a sluggish job creation environment, creating an even wider gap in housing affordability. But in Orange County, where we are seeing local government partnering with business owners on growth incentives and business owner recruitment, we continue to see an economic environment where wage growth is exceeding the annual cost of housing inflation." Since bottoming out nationwide in Q1 2012, median home prices have risen 73 percent while average weekly wages have increased 13 percent over the same period. Counties where home price growth in Q3 2017 outpaced annual wage growth included Los Angeles County, California; Harris County (Houston), Texas; San Diego County, California; Miami-Dade County, Florida; and Kings County (Brooklyn), New York. "Housing affordability continues to be the topic that troubles me more than just about anything else. As the data shows, housing in the Seattle region is considered unaffordable, which is not a great surprise given our robust economy and substantial population growth coming out of California," said Matthew Gardner, chief economist at Windermere Real Estate, covering the Seattle market, where home price appreciation outpaced wage growth in all three counties in the metro area. "The short-term prognosis is not great. Housing starts remain well below the long-term average, and we are not seeing the level of resale home sales that one would normally expect. These factors will cause home prices to keep trending higher and, as long as the economy remains strong, demand will continue to exceed supply." Home prices less affordable than historic averages in 45 percent of markets Home prices were less affordable than their historic affordability averages in 184 out of 406 of the counties analyzed for the index (45 percent), down from 49 percent in the previous quarter but still up from 21 percent a year ago. Counties with the lowest affordability index in Q3 2017 (meaning home prices were least affordable relative to local historic averages) were Lackawanna County (Scranton), Pennsylvania (72); Genesee County (Flint), Michigan (76); Comal County (San Antonio), Texas (77); Brazoria County (Houston), Texas (77); and Parker County (Dallas), Texas (78). Among counties with at least a half-million people, those with the lowest affordability index in Q3 2017 were Montgomery County (Houston), Texas (79); Denver County, Colorado (81); Collin County (Dallas), Texas (82); Travis County (Austin), Texas (83); Wayne County (Detroit), Michigan (83); and Davidson County (Nashville), Tennessee (84). "Home prices are still increasing in Ohio, primarily due to shortage of inventory coupled with high demand, especially among first time homebuyers — mainly due to an increase in employment within the state," said Matthew Watercutter, senior regional vice president and broker of record for HER Realtors, covering the Dayton, Columbus and Cincinnati markets in Ohio, where 16 out 22 counties analyzed (73 percent) were less affordable than historic averages. "Even though the values are increasing, Ohio remains one of the most affordable states in which to live." Buying a home requires highest share of wages in Brooklyn and Bay Area Nationwide, buying a median-priced home in the third quarter of 2017 required 29.5 percent of average wages, on par with the historic average of 29.6 percent. Buying a median-priced home required the highest percentage of average wages in Kings County (Brooklyn), New York (125.8 percent), followed by Marin County (San Francisco), California (104.7 percent); Santa Cruz County, California (101.6 percent); Westchester County, New York (91.0 percent); and New York County (Manhattan), New York (90.8 percent). Buying a median-priced home required the lowest percentage of average wages in Clayton County (Atlanta), Georgia (12.0 percent); Bibb County (Macon), Georgia (12.5 percent); Wayne County (Detroit), Michigan (14.5 percent); Rock Island County, Illinois (14.8 percent); and Allen County (Lima), Ohio (15.0 percent). About ATTOM Data Solutions ATTOM Data Solutions is the curator of the ATTOM Data Warehouse, a multi-sourced national property database that blends property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, health hazards, neighborhood characteristics and other property characteristic data for more than 150 million U.S. residential and commercial properties. The ATTOM Data Warehouse delivers actionable data to businesses, consumers, government agencies, universities, policymakers and the media in multiple ways, including bulk file licenses, APIs and customized reports.
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Redfin: Migration Patterns Show More People Leaving Politically Blue Counties
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U.S. Foreclosure Activity Drops to More Than 11-Year Low in Q3 2017
Foreclosure Activity Below Pre-Recession Levels in 57 Percent of Metro Areas; Foreclosure Starts Up in 24 Percent of Markets Including Dallas, Denver, Cincinnati; 2014 FHA Loans Post Highest Foreclosure Rate for Any FHA Loan Vintage Since 2009 IRVINE, Calif. – Oct. 12, 2017 — ATTOM Data Solutions, curator of the nation's largest multi-sourced property database, today released its Q3 2017 U.S. Foreclosure Market Report™, which shows a total of 191,824 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — in the third quarter, down 13 percent from the previous quarter and down 35 percent from a year ago to the lowest level since Q2 2006 — a more than 11-year low. U.S. foreclosure activity in Q3 2017 was 31 percent below the pre-recession average of 278,912 properties with foreclosure filings per quarter between Q1 2006 and Q3 2007 — the fourth consecutive quarter where U.S. foreclosure activity has tracked below the pre-recession average. "Legacy foreclosures from the high-risk loans originated between 2004 and 2008 have largely been cleared out of the distressed market pipeline," said Daren Blomquist, senior vice president at ATTOM Data Solutions. "Meanwhile loans originated during the housing boom of the last five years are posting foreclosure rates below historic averages, with the notable exception of FHA loans originated in 2014, which have the highest foreclosure rate of any FHA loan vintage since 2009 — 29 percent above the historic average for FHA loans although still 55 percent below the peak in 2007. "Elevated foreclosure rates on 2014 vintage FHA loans reflect a gradual loosening of credit as the sustained housing boom is slowly bolstering confidence and increasing risk tolerance in the real estate market," Blomquist added. "This trend also explains increasing foreclosure starts in the third quarter in some of the nation's hottest housing markets, counter to the national trend. If we see this pattern continue for 2015- and 2016-originated loans as those vintages age, we would expect to see a more widespread — although still relatively modest — lift in foreclosure activity in the next few years." Foreclosure starts down nationwide, up in 24 percent of local markets Lenders started the foreclosure process on 93,724 U.S. properties in Q3 2017, down 7 percent from the previous quarter and down 16 percent from a year ago to the lowest level since ATTOM began tracking, in Q2 2005. Counter to the national trend 51 metro areas (24 percent of the 217 analyzed in the report) posted a year-over-year increase in foreclosure starts in Q3 2017, including Dallas-Fort Worth, Texas (6 percent increase); Denver, Colorado (12 percent increase); Cincinnati, Ohio (5 percent increase); Cleveland, Ohio (29 percent increase); and Columbus, Ohio (up 23 percent). Other major metros with a year-over-year increase in foreclosure starts in Q3 2017 included Austin, Texas (up 29 percent); Nashville, Tennessee (up 17 percent); Milwaukee, Wisconsin (up 97 percent); Oklahoma City, Oklahoma (up 34 percent); and Louisville, Kentucky (up 27 percent). FHA foreclosure rates on 2014 vintage loans were at an 11-year high in Austin and Denver, a 10-year high in Oklahoma City and Nashville, a nine-year high in Cincinnati, Cleveland, Columbus and Dallas, and a seven-year high in Louisville. Foreclosure activity below pre-recession levels in 57 percent of local markets Third quarter foreclosure activity was below pre-recession averages in 123 of the 217 metro areas analyzed in the report (57 percent), including Los Angeles (55 percent below), Chicago (20 percent below), Dallas (77 percent below), Houston (63 percent below), and Miami (51 percent below). "Foreclosure activity in the greater Seattle area continues to trend lower and is now at levels not seen since this this report was started," said Matthew Gardner, chief economist with Windermere Real Estate, covering the Seattle market, where third quarter foreclosure activity was 46 percent below its pre-recession average. "The market remains starved for inventory which is pushing up prices well above average rates. As such, almost all housing units that were in negative equity have seen values rebound, which is why foreclosure activity has dropped to such low levels. "As long as the regional economy continues to flourish, I do not expect to see foreclosures rise. That said, home price growth is starting to negatively impact affordability, and this is becoming troublesome," Gardner continued. "Any slowdown in the local economy could lead to an increase in foreclosure activity, but nothing close to the levels seen during the housing recession." Counter to the national trend, Q3 2017 foreclosure activity was above pre-recession averages in 94 of the 217 metros analyzed in the report (43 percent), including New York (57 percent above), Philadelphia (50 percent above), Washington, D.C. (44 percent above), Baltimore (256 percent above), and Virginia Beach (371 percent above). Highest foreclosure rates in Atlantic City, Trenton, Cleveland States with the highest Q3 2017 foreclosure rates were New Jersey (one in every 238 housing units with a foreclosure filing); Delaware (one in every 276); Maryland (one in every 363); Illinois (one in every 426); and Ohio (one in every 455). Among 217 metropolitan areas with at least 200,000 people analyzed in the report, those with the highest foreclosure rates in Q3 2017 were Atlantic City, New Jersey (one in every 150 housing units with a foreclosure filing); Trenton, New Jersey (one in 234); Cleveland, Ohio (one in 275); Fayetteville, North Carolina (one in 283); and Columbia, South Carolina (one in 284). Average foreclosure timeline increases to new record high Lenders completed the foreclosure process (REO) on 55,993 U.S. properties in Q3 2017, down 29 percent from the previous quarter and down 35 percent from a year ago to the lowest level since Q3 2006. Properties foreclosed in the third quarter had been in the foreclosure process an average of 899 days, up from 883 days the previous quarter to a new record high. States with the longest average time to foreclose in Q3 2017 were Indiana (1,779 days), New Jersey (1,281 days), New York (1,256 days), Florida (1,234 days), Illinois (1,087 days), and Connecticut (1,001 days). States with the shortest average time to foreclose in the third quarter were Virginia (171 days), Arkansas (296 days), Oregon (341 days), North Carolina (417 days), and Texas (437 days). About ATTOM Data Solutions ATTOM Data Solutions is the curator of the ATTOM Data Warehouse, a multi-sourced national property database that blends property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, health hazards, neighborhood characteristics and other property characteristic data for more than 150 million U.S. residential and commercial properties. The ATTOM Data Warehouse delivers actionable data to businesses, consumers, government agencies, universities, policymakers and the media in multiple ways, including bulk file licenses, APIs and customized reports.
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CoreLogic Reports Serious Delinquency Rate for Home Loans Holds Steady at a Near 10-Year Low
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CoreLogic US Home Price Report Shows Prices Up 6.9 Percent in August 2017
October 03, 2017, Irvine, Calif. – CoreLogic®, a leading global property information, analytics and data-enabled solutions provider, today released its CoreLogic Home Price Index (HPI™) and HPI Forecast™ for August 2017, which shows home prices are up strongly both year over year and month over month. Home prices nationally increased year over year by 6.9 percent from August 2016 to August 2017, and on a month-over-month basis, home prices increased by 0.9 percent in August 2017 compared with July 2017,* according to the CoreLogic HPI. Looking ahead, the CoreLogic HPI Forecast indicates that home prices will increase by 4.7 percent on a year-over-year basis from August 2017 to August 2018, and on a month-over-month basis home prices are expected to increase by 0.1 percent from August 2017 to September 2017. The CoreLogic HPI Forecast is a projection of home prices 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. "While growth in home sales has stalled due to a lack of inventory during the last few months, the tight inventory has actually helped stabilize price growth," said Dr. Frank Nothaft, chief economist for CoreLogic. "Over the last three years, price growth in the CoreLogic national index has been between 5 percent and 7 percent per year, and CoreLogic expects home prices to increase about 5 percent by this time next year." In an analysis of the country's 100 largest metropolitan areas based on housing stock, 34 percent of cities have an overvalued housing stock as of August 2017, according to CoreLogic Market Conditions Indicators (MCI) data. 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. Also as of August, 27 percent of the top 100 metropolitan areas were undervalued and 39 percent were at value. When looking at only the top 50 markets based on housing stock, 46 percent were overvalued, 16 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, while an undervalued housing market is one in which home prices are at least 10 percent below the sustainable level. "Nearly half of the nation's largest 50 markets are overvalued," said Frank Martell, president and CEO of CoreLogic. "The lack of real estate affordability has spread beyond the typically expensive coasts into the interior of the nation, hitting cities such as Denver, Nashville, Austin and Dallas." *July 2017 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. Methodology The CoreLogic HPI™ is built on industry-leading public record, servicing and securities real-estate databases and incorporates more than 40 years of repeat-sales transactions for analyzing home price trends. Generally released on the first Tuesday of each month with an average five-week lag, the CoreLogic HPI is designed to provide an early indication of home price trends by market segment and for the "Single-Family Combined" tier representing the most comprehensive set of properties, including all sales for single-family attached and single-family detached properties. The indexes are fully revised with each release and employ techniques to signal turning points sooner. The CoreLogic HPI provides measures for multiple market segments, referred to as tiers, based on property type, price, time between sales, loan type (conforming vs. non-conforming) and distressed sales. Broad national coverage is available from the national level down to ZIP Code, including non-disclosure states. CoreLogic HPI Forecasts™ are based on a two-stage, error-correction econometric model that combines the equilibrium home price—as a function of real disposable income per capita—with short-run fluctuations caused by market momentum, mean-reversion, and exogenous economic shocks like changes in the unemployment rate. With a 30-year forecast horizon, CoreLogic HPI Forecasts project CoreLogic HPI levels for two tiers—"Single-Family Combined" (both attached and detached) and "Single-Family Combined Excluding Distressed Sales." As a companion to the CoreLogic HPI Forecasts, Stress-Testing Scenarios align with Comprehensive Capital Analysis and Review (CCAR) national scenarios to project five years of home prices under baseline, adverse and severely adverse scenarios at state, Core Based Statistical Area (CBSA) and ZIP Code levels. The forecast accuracy represents a 95-percent statistical confidence interval with a +/- 2.0 percent margin of error for the index. 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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Pending Home Sales Fall 2.6 Percent in August; 2017 Forecast Downgraded
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CoreLogic Reports 2.8 Million Residential Properties with a Mortgage Still in Negative Equity
September 21, 2017, Irvine, Calif. – CoreLogic®, a leading global property information, analytics and data-enabled solutions provider, today released its Q2 2017 home equity analysis which shows U.S. homeowners with mortgages (roughly 63 percent of all homeowners*) have seen their equity increase by a total of 10.6 percent year over year, representing a gain of $766 billion since Q2 2016. Additionally, homeowners gained an average of $12,987 in equity between Q2 2016 and Q2 2017. Western states led the equity increase with Washington homeowners gaining an average of approximately $40,000 in home equity and California homeowners gaining an average of approximately $30,000 in home equity (Figure 1). Home price increases in these states drove the equity gains. From Q1 2017** to Q2 2017, the total number of mortgaged residential properties with negative equity decreased 10 percent to 2.8 million homes, or 5.4 percent of all mortgaged properties.Year over year, negative equity decreased 21.9 percent from 3.6 million homes, or 7.1 percent of all mortgaged properties, from Q2 2016 to Q2 2017. "Over the last 12 months, approximately 750,000 borrowers achieved positive equity," said Dr. Frank Nothaft, chief economist for CoreLogic. "This means that mortgage risk continues to decline and, given the continued strength in home prices, CoreLogic expects home equity to rise steadily over the next year." 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 home value, an increase in mortgage debt or both. Negative equity peaked at 26 percent of mortgaged residential properties in Q4 2009 based on CoreLogic equity data analysis, which began in Q3 2009. The national aggregate value of negative equity was approximately $284.4 billion at the end of Q2 2017. This is up quarter over quarter by approximately $200 million, or 0.1 percent, from $284.2 billion in Q1 2017 and down year over year by approximately $700 million, or 0.2 percent, from $285.1 billion in Q2 2016. "Homeowner equity reached $8 trillion in the second quarter of 2017, which is more than double the level just five years ago," said Frank Martell, president and CEO of CoreLogic. "The rapid rise in homeowner equity not only reduces mortgage risk, but also supports consumer spending and economic growth." **Q1 2017 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. For ongoing housing trends and data, visit the CoreLogic Insights Blog: http://www.corelogic.com/blog. Methodology The amount of equity for each property is determined by comparing the estimated current value of the property against the mortgage debt outstanding (MDO). If the MDO is greater than the estimated value, then the property is determined to be in a negative equity position. If the estimated value is greater than the MDO, then the property is determined to be in a positive equity position. The data is first generated at the property level and aggregated to higher levels of geography. CoreLogic data includes more than 50 million properties with a mortgage, which accounts for more than 95 percent of all mortgages in the U.S. CoreLogic uses public record data as the source of the MDO, which includes both first-mortgage liens and second liens, and is adjusted for amortization and home equity utilization in order to capture the true level of MDO for each property. The calculations are not based on sampling, but rather on the full data set to avoid potential adverse selection due to sampling. The current value of the property is estimated using a suite of proprietary CoreLogic valuation techniques, including valuation models and the CoreLogic Home Price Index (HPI). In August 2016, the CoreLogic HPI was enhanced to include nearly one million additional repeat sales records from proprietary data sources that provide greater coverage in home price changes nationwide. The increased coverage is particularly useful in 14 non-disclosure states. Additionally, a new modeling methodology has been added to the HPI to weight outlier pairs, ensuring increased consistency and reducing month-over-month revisions. The use of the enhanced CoreLogic HPI was implemented with the Q2 2016 Equity report. Only data for mortgaged residential properties that have a current estimated value are included. There are several states or jurisdictions where the public record, current value or mortgage data coverage is thin and have been excluded from the analysis. These instances account for fewer than 5 percent of the total U.S. population. 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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August National Showing Index Shows 7.1% Year-Over-Year Increase
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Existing-Home Sales Subside 1.7 Percent in August
WASHINGTON (September 20, 2017) — Existing-home sales stumbled in August for the fourth time in five months as strained supply levels continue to subdue overall activity, according to the National Association of Realtors®. Sales gains in the Northeast and Midwest were outpaced by declines in the South and West. Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, retreated 1.7 percent to a seasonally adjusted annual rate of 5.35 million in August from 5.44 million in July. Last month's sales pace is 0.2 percent above last August, and is the lowest since then. Lawrence Yun, NAR chief economist, says the slump in existing sales stretched into August despite what remains a solid level of demand for buying a home. "Steady employment gains, slowly rising incomes and lower mortgage rates generated sustained buyer interest all summer long, but unfortunately, not more home sales," he said. "What's ailing the housing market and continues to weigh on overall sales is the inadequate levels of available inventory and the upward pressure it's putting on prices in several parts of the country. Sales have been unable to break out because there are simply not enough homes for sale." Added Yun, "Some of the South region's decline in closings can be attributed to the devastation Hurricane Harvey caused to the greater Houston area. Sales will be impacted the rest of the year in Houston, as well as in the most severely affected areas in Florida from Hurricane Irma. However, nearly all of the lost activity will likely show up in 2018." The median existing-home price for all housing types in August was $253,500, up 5.6 percent from August 2016 ($240,000). August's price increase marks the 66th straight month of year-over-year gains. Total housing inventory at the end of August declined 2.1 percent to 1.88 million existing homes available for sale, and is now 6.5 percent lower than a year ago (2.01 million) and has fallen year-over-year for 27 consecutive months. Unsold inventory is at a 4.2-month supply at the current sales pace, which is down from 4.5 months a year ago. Properties typically stayed on the market for 30 days in August, which is unchanged from July and down from 36 days a year ago. Fifty-one percent of homes sold in August were on the market for less than a month. Inventory data from realtor.com® reveals that the metropolitan statistical areas where listings stayed on the market the shortest amount of time in August were San Jose-Sunnyvale-Santa Clara, Calif., 29 days; Seattle-Tacoma-Bellevue, Wash., 30 days; Vallejo-Fairfield, Calif., 31 days; and San Francisco-Oakland-Hayward, Calif., and Salt Lake City, Utah, both at 32 days. "Market conditions continue to be stressful and challenging for both prospective first-time buyers and homeowners looking to trade up," said Yun. "The ongoing rise in home prices is straining the budgets of some of these would-be buyers, and what is available for sale is moving off the market quickly because supply remains minimal in the lower- and mid-price ranges." First-time buyers were 31 percent of sales in August, which is down from 33 percent in July and is the lowest share since last August (also 31 percent). NAR's 2016 Profile of Home Buyers and Sellers - released in late 2016 - revealed that the annual share of first-time buyers was 35 percent. According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 3.88 percent in August from 3.97 percent in July and is the lowest since November 2016 (3.77 percent). The average commitment rate for all of 2016 was 3.65 percent. All-cash sales were 20 percent of transactions in August, up from 19 percent in July but down from 22 percent a year ago. Individual investors, who account for many cash sales, purchased 15 percent of homes in August, up from 13 percent in July and 12 percent a year ago. Distressed sales - foreclosures and short sales - were 4 percent of sales in August, down from 5 percent both in July and a year ago. Three percent of August sales were foreclosures and 1 percent were short sales. According to President William E. Brown, a Realtor® from Alamo, California, the housing market continues to recover from the depths of the financial crisis. However, the significant household wealth many homeowners have accumulated in recent years through rising home values could be at risk if any of the proposed tax provisions follow through with attempts to marginalize the mortgage interest deduction and eliminate state and local tax deductions. "Consumers are smart and know that any attempt to cap or limit the deductibility of mortgage interest is essentially a tax on homeownership and the middle class," said Brown. A study commissioned by NAR found that under some tax reform proposals, many homeowners with adjusted gross incomes between $50,000 and $200,000 would see an average tax increase of $815, along with home values shrinking by an average of more than 10 percent. An even steeper decline would be seen in areas with higher property and state income taxes. Congress must keep homeowners in mind as it looks towards tax reform this year." Single-family and Condo/Co-op Sales Single-family home sales decreased 2.1 percent to a seasonally adjusted annual rate of 4.74 million in August from 4.84 million in July, but are still 0.4 percent above the 4.72 million pace a year ago. The median existing single-family home price was $255,500 in August, up 5.6 percent from August 2016. Existing condominium and co-op sales climbed 1.7 percent to a seasonally adjusted annual rate of 610,000 units in August, but are still 1.6 percent below a year ago. The median existing condo price was $237,600 in August, which is 5.4 percent above a year ago. August existing-home sales in the Northeast jumped 10.8 percent to an annual rate of 720,000, and are now 1.4 percent above a year ago. The median price in the Northeast was $289,500, which is 5.6 percent above August 2016. In the Midwest, existing-home sales rose 2.4 percent to an annual rate of 1.28 million in August, and are now 0.8 percent above a year ago. The median price in the Midwest was $200,500, up 5.0 percent from a year ago. Existing-home sales in the South decreased 5.7 percent to an annual rate of 2.15 million in August, and are now 0.9 percent lower than a year ago. The median price in the South was $220,400, up 5.4 percent from a year ago. Existing-home sales in the West fell 4.8 percent to an annual rate of 1.20 million in August, but are still 0.8 percent above a year ago. The median price in the West was $374,700, up 7.7 percent from August 2016. The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
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Purchase Lending Hits Highest Level Since 2007 Despite Continued Headwinds from Tight Lending
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Redfin Housing Demand Index Dipped from June to July as Inventory Shortage Deepened
The number of Redfin customers requesting home tours and writing offers fell in July, but is still up by double digits year over year SEATTLE — September 1, 2017 — The Redfin Housing Demand Index fell 5.0 percent from its all-time high of 130 in June to 124 in July, according to Redfin, the next-generation real estate brokerage. Still, the Demand Index was up 29.7 percent year over year. The Demand Index is adjusted for Redfin's market share growth. The Demand Index is based on thousands of Redfin customers requesting home tours and writing offers. A level of 100 represents the historical average for the three-year period from January 2013 to December 2015. The underlying methodology to the Redfin Housing Demand Index was revised in August 2017 to improve the way it accounts for the company's market share. Across the 15 metros covered by the Demand Index, there were 13.9 percent fewer homes for sale in July than there were a year prior, and there was a 5.9 percent decline in new listings. July marked the 26th consecutive month of year-over-year inventory declines. "Buyer demand has been stronger so far in 2017 than last year, but the combination of low inventory and rising home prices is taking its toll heading into the fall," said Redfin chief economist Nela Richardson. "Sellers are still in control of the market, but their advantage is narrowing as buyers are becoming less willing or able to chase escalating prices." The seasonally adjusted number of buyers requesting home tours fell 3.3 percent from June to July, while the number of those who wrote offers dropped 11.0 percent. Compared to last year, 35.3 percent more buyers requested tours in July and 21.0 percent more wrote offers. To read the full report, including metro-level demand 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 theRedfin 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 $50 billion in home sales.
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