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Updated Realtor.com Forecast Paints Rosier Picture for 2019 Homebuyers
Lower mortgage rates increase purchasing power; home prices exceed original predictions and sales stronger than originally forecasted SANTA CLARA, Calif., April 23, 2019 -- Realtor.com, the Home of Home Search, today released a revised 2019 housing forecast, which shows the outlook for the real estate market this year is somewhat stronger than originally forecasted. Based on a shift in the economic outlook and slower pace of monetary tightening, the online real estate destination is now expecting lower mortgage rates of 4.5 percent by the end of the year, higher home price growth of near 3 percent and stronger homes sales. "The 2019 housing market is different than what we predicted in fall 2018, primarily due to an unexpected drop in mortgage rates in January 2019," said Danielle Hale, realtor.com®'s chief economist. "We believe 2019 will be characterized by lower, but still increasing mortgage rates that will buoy home prices and sales by boosting buyers' purchasing power beyond what we initially projected. This will create a slightly hotter, but still cooling housing market relative to the initial forecast five months ago." Mortgage rates will end the year lower than originally expected At the end of 2018, mortgage rates approached 5 percent and this upward momentum was anticipated to continue well into 2019 due to continued economic growth and monetary policy tightening. However, after an unfavorable reaction to the December rate hike, the Fed pledged "patience" ahead of future monetary policy moves. The change in economic outlook paired with a pledge of patience has brought long term rates down to just over 4 percent, levels last seen in January 2018. Realtor.com® now expects rates to begin drifting upward as data suggests continued economic growth. Due to their lower 2019 starting point, mortgage rates are expected to approach 4.5 percent by the end of the year -- nearly a percentage point lower than originally expected. 2019 home prices forecasted to be higher than expected Falling mortgage rates have given home buyers more purchasing power to balance rising home prices, but that in turn is allowing for more home price growth than was expected in November. As a result, realtor.com® now anticipates home prices in 2019 to be 2.9 percent higher than in 2018 -- a 0.7 percent increase over its original prediction. Although home prices are currently growing at 3.5 to 4.0 percent year-over-year, the rate of growth is far slower than the past few years of 5 to 7 percent growth, indicating prices are softening. Home sales will fare better than originally predicted After a 10-year high in 2017, home sales slipped in 2018 and are on track to end 2019 with 5.3 million homes sold, essentially flat with 2018. Initially, realtor.com® projected home sales to slip 2 percent further in 2019, but the combination of lower mortgages rates and an influx of inventory have spurred sales. About realtor.com® Realtor.com®, The Home of Home Search, offers an extensive inventory of for-sale and rental listings, and access to information, tools and professional expertise that help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today is the trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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Homes with Close Proximity to Electric Vehicle Charging Stations List for 1.5 Times More
Realtor.com® analysis finds that you'll pay a premium to live in a metro that accommodates electric vehicles SANTA CLARA, Calif., April 22, 2019 -- A new analysis by realtor.com, the Home of Home Search, released today found that home prices in the nation's top 20 neighborhoods that are most accommodating to electric vehicles are listed 1.5 times higher than their surrounding metro area on average, and 2.6 times higher than the rest of the country. Nine of the top 20 ZIP codes are in California. In honor of Earth Day, realtor.comⓇ used data from OpenChargeMap to track 19,743 charging stations mapped across 6,980 ZIP codes, and then analyzed the housing markets of the top 20 areas with the most electric vehicle charging stations. According to the analysis, the combined median listing price for the top 20 ZIP codes is $782,000, 1.5 times higher than their surrounding metro area on average, and 2.6 times higher than the rest of the country. Half of homes in these ZIP codes sell in 75 days, 15 days slower than their surrounding metro area on average, and 10 days slower than the rest of the country, consistent with sales trends in pricer areas. "Our data shows there's definitely a link between the prevalence of electric vehicle charging stations and higher home prices," says Danielle Hale, chief economist, realtor.com®. "But there's a difference between correlation and causation. The trend we're seeing in the data is most likely a result of the fact that wealthier homeowners are more likely to purchase expensive electric vehicles. But regardless of the cause, if you're shopping for a home in a ZIP with an abundance of electric vehicle charging stations, you'll likely pay a premium." The top 20 markets represented in the data all fall within nine states, with a large majority of the ZIP codes in California. ZIP code 92618 in Irvine, Calif. has the most charging stations, while the top 20 ZIP codes have an average of 30.1 charging stations each. It stands to reason that California leads the nation in charging stations, given electric car sales make up 10 percent of all new cars sold in the state, outpacing all other states in the nation. Beyond Tesla's manufacturing presence in California, there are several contributing factors that have led to increased awareness of EVs in the state, including the state's Zero-Emission Vehicle Program, California's EV rebate, coastal political leanings (ie pro-cleantech, pro-innovation), higher than average wages. Research has shown a connection between the fact that California highways allow EVs to drive in HOV lanes and EV adoption, but this benefit to EV owners is not exclusive to California. Outside of California, the most EV-friendly housing markets can be found in Florida, Georgia, Hawaii, Nevada, New York, Ohio, South Carolina, and Texas. Although significantly more affordable than the majority of the EV-accommodating ZIPS, the analysis found that homes in close proximity to EV charging stations still sell at a premium, with non-California ZIPS seeing median listing prices that are still 1.5 times higher than their surrounding metro median, and 2.0 times higher than the U.S. median listing price, on average. Top 20 ZIP Codes For Electric Vehicles Rank based on Number of EV Charging Stations Per ZIP Code Methodology: Zip codes were ranked by number of EV charging stations located within the zip code. Housing trends such as median listing price come from the realtor.com® residential listings database for listings actively for sale during March 2019. Each zip code reported here represents the top ranked zip code in its respective metropolitan area. Reported averages for the top 20 were weighted by each market's number of active listings during March 2019. EV charging station data from OpenChargeMap was accessed on April 1, 2019 which at the time contained records for nearly 20,000 (19,743) charging stations mapped across the United States in 6,980 ZIP codes. About realtor.com® Realtor.com®, The Home of Home Search℠, offers an extensive inventory of for-sale and rental listings, and access to information, tools and professional expertise that help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today is the trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [NASDAQ: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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West Coast Buyers are Now More Likely to Win the 1st Home They Bid On
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Detroit, Indianapolis and Buffalo Among the Least Disaster-Prone and Most Affordable Places to Live
Redfin Analysis Uses "Natural Disaster Hazard Score" to Rate the 50 Biggest U.S. Metro Areas by Frequency of Earthquakes, Fires, Floods, Tornadoes and Hurricanes SEATTLE, April 11, 2019 -- Providence, Rhode Island, Detroit, Michigan and Hartford, Connecticut are the least disaster-prone metro areas in the country, according to Redfin, the technology-powered real estate brokerage. In a new report, Redfin rated the 50 biggest metro areas according to their relative frequency of five major types of natural disasters—earthquakes, fires, floods, tornadoes, and hurricanes—using a new metric called the "Natural Disaster Hazard Score." Each of the five components is measured on a scale of one to 100, where 100 is the most hazardous metro area for the category and one is the least hazardous. The overall Natural Disaster Hazard Score is an average of the five components' frequencies. Metros with low Natural Disaster Hazard Score ratings tend to have relatively affordable housing markets. Nine of the 10 least hazardous metro areas have median home prices below the $287,400 national median. Salt Lake City is the exception, ranking as the eighth-least hazard-prone metro area with a Natural Disaster Hazard Score of 16 and a median home price of $320,000. Many of the most disaster-prone metros, including Washington, D.C. (52), Los Angeles (52) and New York (41), have home prices well above the national median. These three areas also tend to be near the top of Redfin's list of origins common among online home-searchers looking to relocate to more affordable, inland housing markets, like Las Vegas, which ranks fourth among the safest-rated metros. "When you buy a home you are paying for more than just the house," said Redfin chief economist Daryl Fairweather. "There could be hidden costs associated with natural disasters. If a natural disaster strikes, you may have to pay for damage to your home or for the cost of evacuating your family. And even during times of calm, you may still need to pay for insurance against floods, fire, or earthquakes. Some homes in more hazardous areas might seem more affordable if you are just looking at the sticker price, but they may end up costing more when risks related to natural disasters are factored in." In addition to high home prices in cities like Washington, D.C., Los Angeles and New York, the likelihood of natural disasters may be another factor driving homebuyers away from the coasts. When hurricanes, fires, earthquakes and floods are factored into the equation, the affordable inland metros are even more attractive destinations. Below is a ranking of the 50 largest metro areas from least-to-most hazard-prone, according to Redfin's Natural Disaster Hazard Score: To view the full report, complete with methodology and an interactive map, please visit: https://www.redfin.com/blog/natural-disaster-hazard-score-by-metro-area. 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 85 major metro areas across the U.S. and Canada. The company has closed more than $85 billion in home sales.
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Redfin and Rover Name the 20 Most Dog-Friendly Cities of 2019
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Average 2019 Homebuyer Spends 3 Fewer Days Searching, Tours 1 Less Home Than Last Year
In Philadelphia, buyers this winter found homes 4 weeks faster than 2018, 2 weeks faster in Washington, D.C.Buyers in Atlanta toured 7 fewer homes than a year ago; in Phoenix they saw 4 fewer homes SEATTLE, April 1, 2019 -- It took the typical homebuyer this winter 73 days to find and close on their new home after their first home tour, down from 76 days last year and from a peak of 84 days in winter 2016, according to a report by Redfin, the technology-powered real estate brokerage. Redfin's analysis took into account home touring and offer activity among thousands of people who bought homes with Redfin agents nationwide in the three-month period ending in February over each of the past five years. "This year, there are more homes for sale relative to the number of buyers, so a buyer is more likely to have their first offer accepted, while sellers are having to wait longer for their home to sell," said Redfin chief economist Daryl Fairweather. "It's like a 1950s-era school dance with more boys than girls -- the girls can quickly find a dancing partner, but more boys are waiting around with no one to dance with." Philadelphia (28 days faster), Houston (17 days) and Washington, D.C., (14 days) saw the biggest year-over-year drops in the number of days buyers spent on the market looking for a home. At the other end of the spectrum, Miami (17 days longer) and New York (13 days) saw the biggest jumps in days buyers spent looking for homes. Most of the metro areas where buyers spent more time on the market this year than last year were on the East Coast, while buyers in cooling West Coast markets were able to find homes more quickly. Buyers' Time on Market, Median for 3-Month Period Ending in February Buyers this year are also having to see fewer homes in person and write fewer offers before successfully landing a home. Nationally, buyers toured an average of about 10 homes this winter before closing on a home, and made an average of 1.6 offers, compared to touring about 11 homes and making 1.8 offers a year ago. "The housing market isn't as daunting for first-time homebuyers," added Fairweather. "If you put in a fair offer, there is a good chance that offer will be accepted. Also, because mortgage interest rates are lower than they've been in over a year, homebuying is more affordable, especially in expensive places like San Francisco and San Jose where home prices have fallen." Homebuyers in Atlanta saw the biggest decrease in the number of homes toured before closing on their home. Buyers there toured an average of 12.2 homes in winter before finding a home, down from 18.8 homes a year earlier. Buyers in Phoenix also saw a big reduction, touring an average of 12.4 homes this winter compared to 16.3 last winter. Tours and Offers, Average for 3-Month Period Ending in February To view the full report, complete with additional charts and insights please visit: https://www.redfin.com/blog/homebuyers-finding-homes-faster-2019/. About Redfin Redfin is the technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 85 major metro areas across the U.S. The company has closed more than $60 billion in home sales.
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Thursday is the Best Day to List Your Home, Says Redfin
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Spring Home Shoppers No.1 Competitor: Their Budget
With nearly half of shoppers looking for a home under $200,000 this spring; many expect it will take a year or more to find and close on a home SANTA CLARA, Calif., March 21, 2019 -- This spring's home shoppers expect less competition overall as more inventory continues to hit the market nationwide, but will struggle with affordability as home prices continue to rise, according to new survey data released today by realtor.com®, the Home of Home Search. The survey also found, nearly half of shoppers this spring are looking for homes at or under $200,000, which despite less competition will prove difficult to find, as this one segment of housing has actually experienced the largest inventory decline year-over-year. Realtor.com® conducted the online survey earlier this month, consisting of 1,015 respondents planning to purchase a home in the next 12 months in conjunction with Toluna Research. "The 2019 spring home buying season will be characterized by rising home prices, a moderate pace of home sales, and an influx of inventory," said Danielle Hale, realtor.com®'s chief economist. "More homes on the market and lower mortgage rates will help offset some difficulties associated with price gains, but affordability will remain the primary challenge for shoppers, particularly in lower price segments." When survey respondents were asked whether falling mortgage rates or higher home prices had the greater impact on their search, 38 percent of respondents indicated the rising home prices, 26 percent said falling interest rates, and 35 percent said neither. The largest segment of shoppers heading into this spring have been searching for a home for seven months or more - this is nearly identical to last year. Slightly more than a quarter - 26 percent - have been in the market four to six months, and 34 percent have just entered the market in the last three months. This has flipped from last year when 34 percent had been searching for four to six months, and 26 percent had been searching three months or less. This could be an indication that fewer shoppers started looking in late 2018 due to the mortgage rate spike. But with more overall inventory available to buyers this year, competition is expected to be less intense. When asked how much competition shoppers expect to face this year, just over 60 percent indicated at least some competition, as compared to 70 percent last year. Only 17 percent of this year's shoppers plan to offer more than asking price this year to secure their purchase, down from 26 percent last year. Similarly, 33 percent of shoppers this year expected to put down more than 20 percent, which is significantly less than last year's 40 percent. Only 38 percent plan to check listings websites everyday, compared to 42 percent last year. "The spring homebuying season is an improvement over last year from an inventory perspective nationwide, but would-be buyers still face challenges. This year, shoppers are going to be grappling with their budgets, rather than competition from a horde of other buyers. Instead of worrying about which tactics will help them get ahead, potential buyers will have to decide what they are willing to give up in order to stick to their budget," Hale added. The shift in higher-end buyer mentality is likely attributed to the recent growth in inventory, which has increased six percent year-over-year, according to Hale, and will will give buyers more options to choose from this spring. For example, the number of homes priced at or above $750,000 rose by 11 percent in February. However, the number of homes priced at $200,000 or below dropped by seven percent year-over-year during the same time. The drop in homes under $200,000 is likely to create a difficult environment for entry level home buyers as nearly half of home shoppers this spring are looking for a home at or under $200,000. Alternatively, only six percent of spring shoppers are looking for a home at or above $750,000 -- the price range that saw the largest increase since last year. For more information, about the spring 2019 housing market, please visit: https://www.realtor.com/research/ About realtor.com® Realtor.com®, The Home of Home Search, offers an extensive inventory of for-sale and rental listings, and access to information, tools and professional expertise that help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today is the trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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Vast Majority Think 2019 First Quarter is Good Time to Buy Home, says Realtor Survey
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Attention Sellers: The First Week of April Is the Best Time to List a Home
Homes listed the first week of April see 14 percent more views, 5 percent less competition, sell 6 days faster SANTA CLARA, Calif., March 14, 2019 -- Realtor.com®, The Home of Home Search, today announced the first week of April is the best time to put a home on the market in 2019. By listing during the week of March 31 - April 6, sellers are able to take advantage of a sweet spot in the season that offers high buyer demand, less competition, quick home sales, and strong prices. "June is often considered the peak of home buying season, but our analysis found the first week of April is best for sellers looking to maximize list price, and also reduce the risk of price cuts and competition from other sellers," said Danielle Hale, chief economist for realtor.com®. "Given the time it takes from listing to close, putting a home on the market in early April positions sellers to attract buyers seeking to close and move before the beginning of school year." The analysis is based on trends in median listing prices, views per property on realtor.com, home price drops, median days on market, and number of listings on the market over the last three years. Why the first week of April? The market is bustling with buyers, but the number of homes hasn't peaked yet, which means more demand for every listing. In fact, homes listed the first week of April see 14 percent more views, on average, and 5 percent less competition compared to the rest of the year's weekly average. As a result, homes are likely to sell 6 days, or nearly 9 percent, faster on average. The typical home on the market between March 31 and April 6 is priced nearly 6 percent higher than the beginning of the year. Based on early 2019 data, this could mean an extra $17,000 added to the list price for a typical listing priced just over $306,000 in early April. Although the typical June listing is 7 percent more expensive than the best week to list, waiting until June to list your home could mean a higher likelihood of a price reduction as buyers bow out toward end of summer. In addition to more views, homes listed at the beginning of April are approximately 1 percent less likely to take a price cut, on average compared to the rest of the year. On the flip side, homes listed in June are 1 percent more likely to have their price reduced and see nearly 2 percent fewer listing views than other times of the year, on average. Other factors that favor listing the first week of April Another factor that's likely to boost April buyer demand this year, is the surprising decline in mortgage rates that started in November 2018. Rates are now below 4.5 percent vs. nearly 5.0 percent in November 2018. These lower rates could entice demand earlier than usual and April sellers could see even more buyers trying to take advantage of this temporary window of affordability. See below for a full list of the best time to buy in the top 50 largest U.S. markets. Best Time to List for Top 50 Largest U.S. Metros About realtor.com® Realtor.com®, The Home of Home Search, offers an extensive inventory of for-sale and rental listings, and access to information, tools and professional expertise that help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today is the trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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Redfin Unveils the Best U.S. Cities for Public Transit in 2019
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Homes.com Study: Romantic Breakups Tie with Joblessness in Triggering 'Boomerang' Behavior
NORFOLK, VA (Feb. 04, 2019) – While you're preparing this year's passionate, you're-the-best-thing-that-ever-happened-to-me Valentine's Day tribute for your significant other, here's a sobering thought: One in five adults who return home to live with their parents do so because of a broken heart. According to a Homes.com survey of nearly 1,100 members of the so-called "Boomerang Generation" and their parents, those that return to the nest due to a divorce or partner breakup is roughly the same percentage as those who return because they're out of work. In fact, the collapse of romantic relationships is the #1 move-back-home catalyst for Boomerang-ers ages 26-40 and the #2 incentive overall. More specifically, the survey revealed that: Love gone wrong is the primary reason for cohabiting with Mom and Dad for 33% of 26-30-year-old, 37% of 31-35-year-old and 24% of 36-40-year-old Boomerang-ers, outstripping all other considerations by as many as 14 points. Saving money for a home purchase or other major investment is the #1 motivation cited by Boomerang-ers in the 20-25 year-old cohort, while the need to care for aging parents tops the list for those 41 and older. Joblessness and debt rank just #3 and #4 overall as reasons to rejoin parents, even among 20-25-year-olds. Just 18% of Boomerang-ers in that age group return home because they lost or can't find a job, and 11% because of student loan or other debt. The survey also provides intriguing insights into Boomerang-ers' ages, living quarters, sources of conflict, financial arrangements, and overall rapport with their parental roommates. Among the findings: 16% of Boomerang-ers are 31 and older, with roughly half of this group returning home after living elsewhere for 11 years or more. 45% live in their childhood bedrooms, with the rest having been displaced either by choice or space limitations. 26% live in a guest bedroom, 12% in the basement, 5% in a guest house, 4% in the living room and 2% in the garage. Privacy and noise issues cause the most friction, followed by space constraints, clashes over money, and political disagreements. General tension is also common, with more than one-third reporting "good days and bad days," constant conflict, or difficult relationships dating back to childhood. 25% pay rent to their parents when they move back home, as reported by both parents and children. This is roughly the same across all age groups. The two sides disagree about other aspects of the financial arrangement, suggesting that either parents exaggerate their support or children minimize it. For example, 12% of parents claim they cover all of their child's expenses, but only 5% of Boomerang-ers themselves say their parents foot the entire bill. Similarly, 35% of parents say that each side pays its own bills, but 45% of children make that claim. Parents are generally supportive. Only 13% discourage adult children from returning home to live, and 77% place no time limit on the arrangement. The majority also report a relatively smooth relationship, with 58% of parents and 68% of children saying they get along well or "hardly know they're there." More information about the survey, including charts and graphs detailing key results, can be found at www.blog.homes.com. About Homes.com Homes.com offers today's demanding homebuyers, renters and those somewhere in between a simply smarter home search. With features like Homes.com Match, HomeShare and Snap & Search, homeshoppers now have a more personalized and conversational way to search for their next home. Since its launch over 25 years ago, Homes.com offers real estate professionals brand and property advertising, search engine marketing and instant response lead generation to help them succeed online. For more information, visit Homes.com.
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Equity Rich U.S. Properties Increase to New High in 2018
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Owning a Home Could Help You Get a Date with That Special Someone
Nearly 60 percent of millennial singles indicate homeownership makes a potential mate more attractive SANTA CLARA, Calif., Feb. 7, 2019 -- Realtor.com, the Home of Home Search, today released new survey data that shows owning a home might make you more attractive to that special someone you've had your eye on, especially if they are a millennial or a woman. Singles looking to boost their chances of dating a homeowner may want to considering living in the South or in the Midwest because they are home to the biggest shares of single female and male homeowners, respectively, according to the analysis. "Attractiveness is in the eye of the beholder, and this survey data suggests that many beholders find homeownership attractive, perhaps using it as a signal for financial savviness and success," said Danielle Hale, realtor.com®'s chief economist. "Single Millennials seem to find homeownership in a potential partner especially attractive, even if only one quarter feels that it is important." The survey, which included 500 people who identified as single and was conducted in late January, found that 46 percent of all singles thought homeownership made a potential partner attractive or very attractive. Women were more likely than men to agree with this, as 48 percent of women found it made a potential partner more attractive, versus 43 percent of men. Men, however, were slightly more likely to say that it made their potential partner very attractive. The survey also asked singles how important it was for a potential partner to be a homeowner. Similar to before, women were more likely than men to agree it was either important or very important that their partner was a homeowner. But the gap between genders was wider than when asking about attractiveness of homeowners, coming in at 29 and 19 percent for women and men, respectively. As a whole, 24 percent of single respondents felt it was important for their partner to be a homeowner. Millennials show strong desire for homeownership in their partner Millennials were the most likely to feel that homeownership boosted someone's attractiveness, with nearly 60 percent of the generation agreeing with the statement. Millennials also were the generation most likely to agree that it was either important or very important for their partner to be a homeowner, as indicated by 26 percent. Single male homeownership highest in the Midwest For those looking to find a potential home-owning male partner, the Midwest is going to be the best bet. The market with the greatest share of single male homeowners is Detroit, where they make up 23.4 percent of all males. It was followed by St. Louis with 21.3 percent, Minneapolis with 21.3 percent, Cleveland with 21.2 percent, and Pittsburgh with 19.9 percent.* Detroit, the top market for single men homeowners, has a median home price of $220,000, followed by St. Louis at $198,000, Minneapolis at $353,000, Cleveland at $170,000, and Pittsburgh at $170,000. On average, homes in these markets sell in 82 days, five days faster than the national median of 87 days. These markets have a high volume of young people, and relatively low median listing prices. In markets such as Detroit and St. Louis, with median list prices of $220,000 and $198,000, respectively, the lower price point has helped boost homeownership among singles. Single female homeownership strong in the South and Midwest Single women are one of the fastest growing demographics in the housing market, according to a recent realtor.com analysis. This trend can be seen strongest in Detroit, where single women homeowners makeup 23.1 percent of all women, followed by 21.4 percent in Baltimore, 21.2 percent in Charlotte, N.C., 20.7 percent in Philadelphia and 20.7 percent in Minneapolis. Detroit, the top market for single women homeowners, has a median home price of $220,000, followed by Baltimore at $297,000, Charlotte, N.C. at $320,000, Philadelphia at $250,000, and Minneapolis at $353,000. On average, homes in these markets sell in a rapid 75 days, 12 days faster than the national median of 87 days. Strong job opportunities and growing economies that draw many young professionals to the areas are also helping keep them in these markets as homeowners. Affordable home prices have also helped singles achieve homeownership in these markets. *Homeownership data by gender and relationship status sourced from IPUMS-USA, University of Minnesota, www.ipums.org. Calculations based on ownership among household heads aged 18-54. About realtor.com® Realtor.com®, The Home of Home Search℠, offers an extensive inventory of for-sale and rental listings, and access to information, tools and professional expertise that help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today is the trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.
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Migration Trend Reaches a Record High as 1 in 4 People Searching for a Home Looks to Change Metros
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Generation Z Needs to Start Saving $304 a Month Now to Buy a Home By Age 30
Location will be deciding factor in Generation Z's homeownership success; Midwest and South offer more affordable options SANTA CLARA, Calif., Jan. 31, 2019 -- Nearly 80 percent of Generation Z wants to own a home before age 30, and a new analysis released today by realtor.com®, The Home of Home Search℠, shows they will need to save $304 every month for the next 12 years to buy with a 10 percent down payment plus closing costs on a median priced home. According to the analysis, the median priced home in the U.S. is projected to cost $386,310 in 2031, when today's 18-year-old members of Generation Z turn 30. The analysis, which includes a 13-year forecast for median home prices in top 100 metros and different down payment savings plans, projects Generation Z will need to save the most to purchase a home in San Jose, Calif. where they will need to save $1,962 per month. The next most expensive locale is San Francisco ($1,439/mo.) followed by Los Angeles ($979/mo.), Honolulu ($946/mo.), and Oxnard, Calif. ($877/mo.). According to realtor.com®'s analysis of Optimal Blue mortgage data, in 2018 the typical under-30 home buyer used a seven percent down payment to successfully complete their home purchase. On average, in the top 10 most expensive metros, members of Generation Z will need to save an average of $948 a month, starting on their 18th birthday, to afford a 10 percent down payment and typical closing costs by the time they turn 30 years old. The median priced home in 2019 is expected to cost $265,000, but over the course of the next 12 years, the price is expected to increase nearly 50 percent, specifically another 46 percent to $386,310. This assumes prices grow at a very modest 3.2 percent per year over the next 12 years. "Choosing to live in one of the U.S.'s larger and more expensive metros, especially on the West Coast, is going to make homeownership a difficult task, but that doesn't mean that Gen Z should give up on their dreams," said Danielle Hale, realtor.com®'s chief economist. "The most important thing they can do is start saving as much as possible early on and let compound interest do the heavy lifting for them. They may also want to consider more affordable areas or different down payment amounts. Some widely available programs allow down payments as low as 3 percent, but a lower down payment can mean higher ongoing monthly costs. As with most decisions, there are pros and cons and a buyer needs to think these through to determine what's best for them." Midwest and South offer opportunities for an easier savings plan While the analysis reveals potentially daunting West Coast future home prices and monthly savings amounts, Generation Z can look to the Midwest and South for more affordable housing options. Youngstown, Ohio, topped the list of the most affordable metros, where Generation Z would only have to save $108 per month. It was followed by McAllen, Texas ($111/mo.), Toledo, Ohio ($141/mo.), Wichita, Kan. ($154/mo.), and Little Rock, Ark. ($156/mo.). With an average median home price of $191,381 in 2031 for the top 10 most affordable metros, an 18-year-old member of Generation Z will need to save an average of $150 a month, starting on their 18th birthday, to afford a 10 percent down payment by the time they turn 30. That comes out to saving $798 a month less than the average monthly saving required for the top 10 most expensive metros. 20 percent down payments paint a different picture While 10 percent down or less is far more common among first-time and younger home buyers, some members of Generation Z may want to use a 20 percent down payment to qualify for a lower mortgage rate and have a much lower monthly payment, but that might not be feasible in the nation's most expensive metros. On average, for the 10 most expensive metros in the U.S., Generation Z will need to save $1,645 a month for a 20 percent down payment and closing costs. That is $697 more every month than if they are aiming to put 10 percent down. While 20 percent has historically been the benchmark, this isn't true for first time homebuyers, and Generation Z should consider varying levels of down payments when planning to purchase a home, especially in higher cost metros in the U.S. Methodology: This analysis assumed an 18-year-old member of Generation Z started saving on his or her birthday, contributing the exact amount every month into a savings account with a fixed three percent annual return, compounded monthly. They will make their home purchase in 2031 on their 30th birthday, after making exactly 144 deposits over exactly 12 years. The calculated savings amount required includes money for a downpayment and typical closing costs of about 3.6 percent for first-time home buyers. Forecast median home price data comes from Moody's Analytics (economy.com). About realtor.com® Realtor.com®, The Home of Home Search, offers an extensive inventory of for-sale and rental listings, and access to information, tools and professional expertise that help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today is the trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [NASDAQ: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.
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U.S. Foreclosure Activity Drops to 13-Year Low in 2018
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Renting a Home More Affordable than Buying in 59 Percent of U.S. Housing Markets
Home Prices Outpacing Wages in 80 Percent of the U.S. Housing Markets IRVINE, Calif. – Jan. 10, 2019 — ATTOM Data Solutions, curator of the nation's premier property database, today released its 2019 Rental Affordability Report, which shows that renting a three-bedroom property is more affordable than buying a median-priced home in 442 of 755 U.S. counties analyzed for the report — 59 percent. The analysis incorporated recently released fair market rent data for 2019 from the U.S. Department of Housing and Urban Development, wage data from the Bureau of Labor Statistics along with public record sales deed data from ATTOM Data Solutions in 755 U.S. counties with sufficient home sales data (see full methodology below). "With rental affordability outpacing home affordability in the majority of U.S. housing markets, and home prices rising faster than rental rates, the American dream of owning a home, may be just that — a dream, "said Jennifer von Pohlmann, director of content and PR at ATTOM Data Solutions. "With home price appreciation increasing annually at an average of 6.7 percent in those counties analyzed for this report and rental rates increasing an average of 3.5 percent, coupled with the fact that home prices are outpacing wages in 80 percent of the counties, renting a home is clearly becoming the more attractive option in this volatile housing market." Renting more affordable than buying in nation's most populated counties Renting is more affordable than buying a home in the nation's 18 most populated counties and in 37 of 40 counties with a population of 1 million or more (93 percent) — including Los Angeles County, California; Cook County (Chicago), Illinois; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; and San Diego County, California. Other markets with a population of more than 1 million where it is more affordable to rent than to buy a home included counties in Miami, New York City, Seattle, Las Vegas, San Jose, San Francisco and Boston. Among the 40 U.S. counties analyzed in the report with a population of 1 million or more, the three where it is more affordable to buy a home than rent were Wayne County (Detroit), Michigan; Philadelphia County, Pennsylvania; and Cuyahoga County (Cleveland), Ohio. Buy or Rent in 2019 Heat Map Least affordable rental markets in Northern California, Hawaii, D.C. The report shows that renting a three-bedroom property requires an average of 38.0 percent of weekly wages across the 755 counties analyzed for the report. The least affordable markets for renting are Santa Cruz County, California (81.7 percent of average wages to rent); Honolulu County, Hawaii (74.4 percent); Spotsylvania County, Virginia (73.0 percent); Maui County, Hawaii (69.5 percent); San Benito County, California (68.6 percent); Monroe County, Florida (67.3 percent); Sonoma County (Santa Rosa area), California (66.0 percent); Marin County (San Francisco area), California (65.6 percent); and Kings County, New York (63.7 percent). Most affordable rental markets in Ohio, North Carolina, Wisconsin, Pennsylvania The most affordable markets for renting are Roane County (Knoxville area), Tennessee (19.7 percent of average wages to rent); Peoria County, Illinois (23.8 percent); Mcminn County (Athens), Tennessee (23.8 percent); Green County (Dayton), Ohio (24.2 percent); and Rhea County (Dayton area), Ohio (24.6 percent). Among counties with a population of 1 million or more, those most affordable for renting are Allegheny County (Pittsburgh), Pennsylvania (25.1 percent); Cuyahoga County (Cleveland), Ohio (25.6 percent); Saint Louis County, Missouri (26.4 percent); Oakland County (Detroit area), Michigan (26.7 percent); and Wayne County (Detroit), Michigan (27.7 percent). Rent growth outpacing wage growth in 52 percent of markets Average fair market rents rose faster than average weekly wages in 394 of the 755 counties analyzed in the report (52 percent), including Los Angeles County, California; Cook County (Chicago), Illinois; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; and San Diego County, California. Average weekly wages rose faster than average fair market rents in 361 of the 755 counties analyzed in the report (48 percent), including Kings County (Brooklyn), New York; Queens County, New York; Clark County (Las Vegas), Nevada; Tarrant County (Dallas-Fort Worth), Texas; Santa Clara (San Jose), California; Broward County (Miami), Florida; and Alameda (San Francisco), California. Home prices rising faster than wages in 80 percent of markets Median home prices rose faster than average weekly wages in 601 of the 755 counties analyzed in the report (80 percent), including Los Angeles County, California; Cook County (Chicago), Illinois; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; San Diego County, California; Orange County, California; and Miami-Dade County, Florida. Average weekly wages rose faster than median home prices in 154 of the 755 counties analyzed in the report (20 percent), including Kings County (Brooklyn), New York; Queens County, New York; King County (Seattle), Washington; Suffolk County, New York; and Bronx County, New York. Home prices rising faster than rents in 70 percent of markets Median home prices rose faster than average fair market rents in 531 of the 755 counties analyzed in the report, including Cook County (Chicago), Illinois; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; Kings County (Brooklyn), New York; Queens County, New York; and Riverside County, California. Average fair market rents rose faster than median home prices in 224 of the 755 counties analyzed in the report (30 percent), including Los Angeles County, California; San Diego County, California; Orange County, California; Miami-Dade County, Florida; Dallas County, Texas; and Kings County (Seattle), Washington. About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, APIs, market trends, marketing lists, match & append and more.
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Redfin Predicts 2019 Housing Market Will Be the Coolest in Years
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U.S. Home Affordability Drops to More Than 10-Year Low in Q4 2018
But Affordability Improves From Previous Quarter in 58 Percent of Local Housing Markets; Wage Growth Outpacing Home Price Growth in 22 Percent of Markets, Including San Diego, Brooklyn, Seattle, San Jose and Manhattan IRVINE, Calif. – Dec. 20, 2018 — ATTOM Data Solutions, curator of the nation's premier property database, today released its Q4 2018 U.S. Home Affordability Report, which shows that the U.S. median home price in the fourth quarter was at the least affordable level since Q3 2008 — a more than 10-year low. The report calculates an affordability index based on percentage of income needed to buy a median-priced home relative to historic averages, with an index above 100 indicating median home prices are more affordable than the historic average, and an index below 100 indicating median home prices are less affordable than the historic average. (See full methodology below.) Nationwide, the Q4 2018 home affordability index of 91 was down from an index of 94 in the previous quarter and an index of 106 in Q4 2017 to the lowest level since Q3 2008, when the index was 87. Among 469 U.S. counties analyzed in the report, 357 (76 percent) posted a Q4 2018 affordability index below 100, meaning homes were less affordable than the long-term affordability averages for the county. That was down from a 10-year high of 78 percent of counties posting an affordability index below 100 in Q3 2018. "While poor home affordability continues to cloud the U.S. housing market, there are silver linings in the local data as home price appreciation falls more in line with wage growth," said Daren Blomquist, senior vice president at ATTOM Data Solutions. "Affordability improved from the previous quarter in more than half of all local markets, and one in five local markets saw annual wage growth outpace annual home price appreciation, including high-priced areas such as San Diego, Brooklyn and Seattle." Q4 2018 Home Price Appreciation & Wage Growth Heat Map Home affordability improves from previous quarter in 58 percent of local markets Counter to the national trend, home affordability improved from the previous quarter in 272 of the 469 counties analyzed in the report (58 percent), including Cook County (Chicago), Illinois; Harris County (Houston), Texas; San Diego County, California; Orange County, California; and Miami-Dade County, Florida. Home affordability worsened compared to the previous quarter in 197 of the 469 counties analyzed in the report (42 percent), including Los Angeles County, California; Maricopa County (Phoenix), Arizona; Riverside County, California; San Bernardino County, California; and Clark County (Las Vegas), Nevada. Wages rising faster than home prices in 22 percent of markets Nationwide the median home sales price in Q4 2018 was $241,250, up 9 percent from a year ago, while the annualized average weekly wage of $56,381 was up 3 percent from a year ago. Annual home price appreciation in Q4 2018 outpaced annual average wage growth in 366 of the 469 counties analyzed in the report (78 percent), including Los Angeles County, California; Cook County (Chicago), Illinois; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; and Orange County, California. Counter to the national trend, annual average wage growth outpaced annual home price appreciation in 103 of the 469 counties analyzed in the report (22 percent), including San Diego County, California; Kings County (Brooklyn), New York; King County (Seattle), Washington; Santa Clara County (San Jose), California; and New York County (Manhattan), New York. Highest share of income needed to buy a home in Brooklyn and Bay Area Nationwide, buying a median-priced home in Q4 2018 would require 35.0 percent of an average wage earner's income, above the historical average of 32.0 percent. Counties with the highest share of wages needed to buy a median priced home in Q4 2018 were Kings County (Brooklyn), New York (128.8 percent); Marin County, California (124.1 percent); Santa Cruz County, California (118.2 percent); Monterey County, California (96.9 percent); and San Luis Obispo County, California (94.4 percent). Counties with the lowest share of wages needed to buy a median-priced home in Q4 2018 were Baltimore City, Maryland (13.1 percent); Bibb County (Macon), Georgia (13.5 percent); Clayton County, Georgia (15.5 percent); Peoria County, Illinois (15.7 percent); and Wayne County (Detroit), Michigan (15.9 percent). Buying a home requires income of $100,000 or more in 15 percent of local markets Buying a median-priced home required more than $100,000 in annual income (assuming 3 percent down and a maximum front-end debt-to-income ratio of 28 percent) in 70 of the 469 counties analyzed in the report, led by New York County (Manhattan), New York ($408,977 to buy); San Francisco County, California ($375,491 to buy); San Mateo County, California ($368,242 to buy); Marin County, California ($315,524 to buy); and Santa Clara County (San Jose), California ($308,178 to buy. About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, APIs, market trends, marketing lists, match & append and more.
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Tougher Road Ahead for Home Buyers and Sellers in 2019
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Top 10 Best Days of the Year to Buy a Home
Buyers willing to close the day after Christmas realize biggest discounts; Analysis also looks at best months to buy at the state and metro area levels IRVINE, Calif. — Nov. 20, 2018 — ATTOM Data Solutions, curator of the nation's premier property database, today released an analysis of the best days of the year to buy a home, which shows that only 10 days of the year offer discounts below estimated market value — seven in December, and one each in October, November and February. According to the analysis, buyers willing to close on a home purchase the day after Christmas realize the biggest discounts below full market of any day in the year. This analysis of more than 18 million single family home and condo sales over the past five years is evidence of the hot sellers' market of the past five years. "People closing on a home purchase December 26 were submitting offers around Thanksgiving and starting their home search around Halloween — likely not a common path to home purchase for most buyers and exactly why it's the best time to buy," said Daren Blomquist, senior vice president with ATTOM Data Solutions. "Buyers and investors willing to start their home search right about when stores are setting up Christmas decorations will face less competition and likely be dealing with more motivated sellers, giving them the upper hand in price negotiations." Best Months to Buy The analysis also looked at best months to buy at the national level (December) and at the state and metro level. The states realizing the biggest discounts below full market value were Ohio (-8.8% in January); Michigan (-7.9% in February); Nebraska (-7.3% in December); Tennessee (-6.8% in December); and Delaware (-6.5% in December). The metro areas realizing the biggest discounts below full market value were Dayton (-13.1% in January); Detroit (-12.8% in February); Cleveland (-12.0% in January); Honolulu (-10.3% in June); and Milwaukee (-9.3% in December). Methodology For this analysis ATTOM Data Solutions looked at any calendar day in the last five years (2013 to 2017) with at least 10,000 single family home and condo sales. There were 362 days that matched this criteria, with the four exceptions being Jan. 1, July 4, Nov. 11 and Dec. 25. To calculate the premium or discount paid on a given day, ATTOM compared the median sales price for homes with a purchase closing on that day with the median automated valuation model (AVM) for those same homes at the time of sale. About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, APIs, market trends, marketing lists, match & append and more.
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Opportunity Zones Offer Favorable Real Estate Investing Options in Amazon HQ2 Markets According to ATTOM Analysis
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2019 Forecast: Existing-Home Sales to Stabilize and Price Growth to Continue
BOSTON (November 2, 2017) – Consumers should expect home sales to flatten and home prices to continue to increase, though at a slower pace, according to a residential housing and economic forecast session at NAR's 2018 REALTORS® Conference & Expo. As Lawrence Yun, chief economist at the National Association of Realtors®, presented his 2019 housing and economic forecast, he was joined onstage by Lisa Sturtevant, President of Lisa Sturtevant & Associates, LLC, who discussed the importance of affordable housing in the U.S. Much of Yun's presentation focused on recent declines in home sales, but in the context of long-term trends to illustrate the housing market's actual performance. "Ninety percent of markets are experiencing price gains while very few are experiencing consistent price declines," said Yun. "2017 was the best year for home sales in ten years, and 2018 is only down 1.5 percent year to date. Statistically, it is a mild twinge in the data and a very mild adjustment compared to the long-term growth we've been experiencing over the past few years." As to the possibility that we are currently experiencing a small bubble, Yun was quick to shut down any speculation. "The current market conditions are fundamentally different than what we were experiencing before the recession 10 years ago," said Yun. "Most states are reporting stable or strong market conditions, housing starts are under-producing instead of over-producing and we are seeing historically low foreclosure levels, indicating that people are living within their means and not purchasing homes they cannot afford. This is a stronger, more stable market compared to the loosely regulated market leading up to the bust." Housing affordability was also discussed by both panelists. While the U.S. is experiencing historically normal levels of affordability, potential buyers may be staying out of the market because of perceived problems with affordability. "NAR research shows that a lower percentage of consumers think that now is a good time to buy, while more are indicating that it is a good time to sell," said Yun. "Problems could arise if the market is flooded with too many sellers and not enough buyers. Fortunately, that does not appear to be the case, as indicated by months' supply of inventory at below five months." Sturtevant discussed the importance of homeownership on a social level - how homeowners tend to be in better physical and mental health and have greater opportunity for economic self-sufficiency. Additionally, communities with more homeowners tend to be more economically prosperous and better able to attract and retain workers. "I am a researcher, not an advocate; but the results of my research have compelled me to see the importance of affordable, stable housing, and the positive economic impact to local communities," said Sturtevant. Looking to next year, Yun shared his forecast for home sales and median home prices. "The forecast for home sales will be very boring - meaning stable," said Yun. With a few months of data remaining in 2018, Yun estimates that existing-home sales will finish at a pace of 5.345 million—a decrease from 2017 (5.51 million). In 2019, sales are forecasted to increase to 5.4 million, a 1 percent increase. The national median existing-home price is expected to rise to around $266,800 in 2019 (up 3.1 percent from 2018 this year and $274,000 in 2020. "Home price appreciation will slow down - the days of easy price gains are coming to an end - but prices will continue to rise." All of these forecasts, however, are dependent on higher levels of home production. "All indications are that we have a housing shortage. If you look at population growth and job growth, it is clear that we are not producing enough houses. This is often a local issue, not a national one, so NAR has created a website where local associations and Realtors® can go for information on how to advocate for increased supply in their communities," Said Yun. Commenting on the overall health of the U.S. economy, Yun noted that the economy is "good." He noted that we have low unemployment, record high job openings, historically low jobless claims, job additions for eight straight years and wages beginning to increase. "This type of activity in the economy should support the housing market, even as interest rates rise," said Yun. 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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The Longest Housing Inventory Decline in History Comes to an End
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Single Females Remain a Force in Market, While First-time Buyers Continue to Struggle, According to Realtor 2018 Buyer and Seller Survey
WASHINGTON (October 29, 2018) – Single female buyers continue to be a powerful force in the market, while low inventory, rising interest rates and increasing home prices remain, holding back first-time buyers despite notable interest in buying a home. This is according to the National Association of Realtors®' 2018 Profile of Home Buyers and Sellers, which also identifies numerous current consumer and housing trends, including mounting student debt balances; the impact of pets on home buying decisions; increases in down payments for all buyers; the rising age of repeat buyers; and the fact that a vast number of respondents use a real estate agent to buy or sell a home, which kept for-sale-by-owner transactions at an all-time low. "With the lower end of the housing market – smaller, moderately priced homes – seeing the worst of the inventory shortage, first-time home buyers who want to enter the market are having difficulty finding a home they can afford," said NAR Chief Economist Lawrence Yun. "Homes were selling in a median of three weeks and multiple offers were a common occurrence, further pushing up home prices. These factors contributed to the low number of first-time buyers and the struggles of would-be buyers dreaming of joining the ranks of homeownership." Here are some additional key trends of buyers and sellers detailed in this year's 150-page report. Single Female Buyers continue to be a strong force in the market For the second year in a row, single female buyers accounted for 18 percent of all buyers. The group was the second most common household buyer type behind married couples (63 percent). Single male buyers came in third and accounted for half the number of buyers as their female counterparts (9 percent). However, single males tended to purchase more expensive homes, with a median price of $215,000, compared to single females with a median price of $189,000 (the lowest of all household buyer types). Share of first-time buyers continues to fall The share of first-time home buyers continued a three-year decline, falling 33 percent (34 percent last year). This number has not been 40 percent or higher since the first-time home buyers credit ended in 2010. "Low inventory, rising interest rates and student loan debt are all factors contributing to the suppression of first-time home buyers," said Yun. "However, existing home sales data shows inventory has been rising slowly on a year-over-year basis in recent months, which may encourage more would-be buyers who were previously convinced they could not find a home to enter the market." Buyers continue to rely on agents and the internet to find the right home For the third year in a row, 95 percent of buyers used the internet at some point during their home search process, and 50 percent said that they found the home they eventually purchased online. Eighty-six percent of buyers used a real estate agent in their home search, and repeat buyers were more likely to use an agent than first-timers (87 percent to 86). Overall, 87 percent of buyers ended up purchasing their home through a real estate agent (the same as 2017), as finding the right home and negotiating terms of sale were the top factors buyers desired from their agent. Ninety percent of respondents said they would definitely or probably use their agent again or recommend them to someone else. "With inventory so low, buyers are relying on their agent's knowledge of markets and neighborhoods to find listings, rather than relying only on online searches," said NAR President Elizabeth Mendenhall, a sixth-generation Realtor® from Columbia, Missouri and CEO of RE/MAX Boone Realty. "A Realtor® has years of experience, generating insight and expertise that can help buyers navigate a tight market where buyers are forced to move fast and make competitive bids in order to get their dream home." Student loan debt continues to be an issue Once again, student loan debt stands out as a challenge keeping would-be buyers out of the market. Among the 13 percent of buyers who said saving for a down payment was the most difficult part of the buying process, 50 percent reported that student loan debt had inhibited their ability to save for a home purchase or down payment. Twenty-four percent of all buyers indicated that they have student loan debt, at a median of $28,000, and 40 percent of first-time buyers indicated that they have student loan debt at a median of $30,000. "Even with a thriving economy and an abundance of job opportunities in many markets, monthly student loan payments coupled with sky-high rents and rising home prices make it exceedingly difficult for potential buyers to put aside savings for a down payment," said Yun. Down payments higher for all buyers Overall, buyers paid a median 13 percent down payment, up from 10 percent last year and the highest since 2005. First-time buyers paid a median 7 percent down payment, up from 5 percent last year and the highest since 1997 (9 percent), while repeat buyers paid a median 16 percent, up from last year's 14 percent and the highest since 2010. A majority of buyers ranked their personal savings as the primary source of their down payment (58 percent). Repeat buyers were most likely to use the proceeds from the sale of the previous primary residence (56 percent), while first-time buyers were the most likely to use a gift from a friend or relative (24 percent). Nearly all buyers choose a single-family home A majority of buyers continue to choose a detached, single-family home (82 percent) as opposed to a townhouse or row house (8 percent) or a condo/duplex/apartment unit (4 percent). Median age of repeat home buyers skyrockets; stays flat for first-time buyers For the third straight year, the median age of first-time home buyers was 32 years old. A majority of first-time buyers were married couples (54 percent), followed by single females (18 percent). Their median income was the same as last year's at $75,000, and they spent a median of $203,700 on a home. These buyers were more likely to purchase smaller homes than repeat buyers, with a median size of 1600 square feet. The age of repeat buyers increased to an all-time high of 55 years old (up from 54 last year). A majority of repeat buyers were also married couples (57 percent), followed by single females (18 percent). Their median income increased from $97,500 last year to $100,000 and they spent a median of $280,000 on a home. The median home size remained the same as last year, at 2000 square feet. Pets Influencing Home Buying Decisions Fifteen percent of all buyers said that convenience to vets and/or outdoor space for their pet was a critical factor in determining where they wanted to purchase their home. That number rises to 20 percent, or one-fifth of buyers, for unmarried couples. "NAR conducted a survey on the important role pets play in our home buying decisions and the unique considerations that pet owners face," said Mendenhall. "Realtors® understand that when someone buys a home, they are buying it with the needs of their whole family in mind. And any pet owner will tell you that their animals are an important and beloved part of their family." Downsizing not a trend Only 9 percent of buyers listed downsizing as a factor in their decision to move. In fact, 73 percent of buyers purchased a home that was either larger or similar in size to what they previously owned. "Homeowners that may be looking to downsize tend to be competing for the same homes as first-time buyers, and we are experiencing a scarcity of inventory in those smaller sized, moderately priced homes," said Yun. "These buyers, not finding the smaller home they are looking for, may decide to purchase an equivalently sized home or simply stay put in their current home." FSBOs at record low For-Sale-By-Owner sales accounted for 7 percent of all sales – the lowest number recorded in this survey's history. This number has been steadily declining since a high of 15 percent in 1981, with more and more owners relying on the expertise of an agent to help navigate the complicated process and intricacies of a home sale. NAR mailed a 129-question survey in July 2018 using a random sample weighted to be representative of sales on a geographic basis to 155,250 recent home buyers. Respondents had the option to fill out the survey via hard copy or online; the online survey was available in English and Spanish. A total of 7,191 responses were received from primary residence buyers. After accounting for undeliverable questionnaires, the survey had an adjusted response rate of 4.6 percent. The sample at the 95 percent confidence level has a confidence interval of plus-or-minus 1.15 percent. Recent home buyers had to have purchased a home between July 2017 and June 2018. All information is characteristic of the 12-month period ending in June 2018 with the exception of income data, which are for 2017. 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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20% of Recent Homebuyers Made an Offer Sight-Unseen, Down from 35% Late Last Year
Survey Findings Suggest that Buyers Are Under Less Pressure to Make Hasty Bids as Competition Eases SEATTLE, Oct. 15, 2018 -- One in five recent homebuyers said they made an offer sight-unseen, according to Redfin, the next-generation real estate brokerage. This statistic was discovered from a Redfin-commissioned survey in May of 1,463 people across 14 major markets who had bought a home in the last year. That's down from 35 percent in a similar survey conducted in November, when the share of buyers making sight-unseen offers had been growing consistently for at least a year and a half. When Redfin analysts first noticed in May that the prevalence of sight-unseen offers had returned to 2016 levels, they struggled to pinpoint a clear explanation. At that time, the market was breaking records for price growth, competition and home-selling speeds. Buyers felt pressured to move incredibly quickly to secure the most desirable homes, which were off the market in a matter of days. Making an offer without seeing the home first in person had become an advantageous strategy for buyers in inventory-strapped markets like Denver or Seattle. In July, Redfin first reported that the market was beginning to shift toward buyers' favor, with rising inventory and slowing price growth. Buyers had become more choosy about what homes to move on and were behaving less hasty in making offers. And now, buyers are facing fewer multiple-offer situations, which allows buyers even more time to visit homes in person before making an offer. Redfin analysts now believe that the declining prevalence of sight-unseen offers was likely an early indicator of this changing market. Redfin intends to watch this trend closely and plans to survey homebuyers again this fall to see if the prevalence of sight-unseen offers continues to change. "Now that most homes are staying on the market for longer than a week, there just isn't as much pressure for buyers to make offers so hastily," said Jessie Culbert, a Redfin agent in Seattle. "That's a big change from earlier this year when sellers set offer review deadlines, and they were strict! This meant that whether or not you had time to physically step inside the home, you had to get your offer in on time in order to be considered. Otherwise you would miss out entirely on the opportunity to compete for it." It's also worth pointing out that one in five homebuyers making offers sight unseen is still a lot, and we believe this is a reflection of the fact that technology has made it easier to learn about a home from anywhere with internet access. For example, using Redfin 3D Walkthrough, a buyer can tour a home virtually on their computer or smartphone, seeing the walls, appliances and nooks and crannies from every angle. Additionally, Redfin agents use tools like FaceTime, Skype or YouTube to show homes to customers who aren't able to join them for an in-person tour. This technology is especially useful to homebuyers moving to a new city, who would have to drive for hours or take a flight to see a home. Over time, as technologies continue to advance and people become more comfortable relying on them to make big financial decisions, we expect sight-unseen offers to become more commonplace, even throughout fluctuations in supply and demand. To read the full report, complete with historical survey and methodology, 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 Affordability Drops to Lowest Level in 10 Years
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National Housing Inventory Crisis Reaches Inflection Point
U.S. inventory is poised for positive growth boosted by a 5-year high in new listings SANTA CLARA, Calif., Oct. 3, 2018 -- Realtor.com®, the Home of Home Search, today released its September housing report which shows national inventory has started to flatten, signaling a crucial inflection point for the inventory crisis. According to the report, inventory declined a mere 0.2 percent from a year ago and is poised for positive growth ahead, boosted by an 8 percent increase in new listings -- the largest yearly jump since 2013. "After years of record-breaking inventory declines, September's almost flat inventory signals a big change in the real estate market," said Danielle Hale, chief economist for realtor.com®. "Would-be buyers who had been waiting for a bigger selection of homes for sale may finally see more listings materialize. But don't expect the level to jump dramatically. Plenty of buyers in the market are scooping up homes as soon as they're listed, which will keep national increases relatively small for the time being." In September, the U.S. median listing price remained at $295,000, a 7 percent increase year-over-year, but lower than last year's 10 percent increase. Homes continued to sell at a relatively rapid pace of 65 days on average, 4 days faster than last year. More than 465,000 new listings entered the market in September, an 8 percent increase and the biggest yearly jump since 2013. These new listings were 8 percent, or $25,000, cheaper than existing inventory in the market, and 10 percent, or 200 square-feet, smaller than homes already in the market, on average. Although single-family home inventory remained relatively flat, declining by only 1 percent, new inventory growth was found in condominiums and townhomes, which are now up 3 percent year-over-year. The inventory recovery is particularly visible in larger cities. In September, 22 of the 45 largest markets in the U.S. saw year-over-year inventory increases. The five markets that saw the largest inventory jumps were San Jose, Calif.; Seattle; Jacksonville, Fla.; San Diego, and San Francisco, all posting increases of 31 percent or more. Inventory also rose over last year in Chicago, Miami, Dallas, Boston, Los Angeles, and New York. Combined inventory in the 45 largest markets increased 5.6 percent year-over-year on average, the largest yearly increase since realtor.com® started tracking it in 2013. New Listing Growth in Largest 45 Metro Markets* * Excluded: Denver; Columbus, Mo.; and Las Vegas due to MLS feed changes during the period analyzed. 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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Realtors Chief Economist Reflects on Past Recession, What's Ahead for Housing
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Highest Share of Homeowners Likely to Move in Q3 2018 in Chicago, DC, Orlando, Tampa, Atlanta
Lowest Share of Pre-Movers in Cleveland, Boston, Pittsburgh, Detroit, San Francisco; North Dakota, Illinois, Nevada, Virginia and Colorado the Top Five Pre-Mover States IRVINE, Calif. – Aug. 16, 2018 — ATTOM Data Solutions, curator of the nation's premier property database, today released its Q2 2018 Pre-Mover Housing Index, which shows Chicago, Washington, D.C., Orlando, Tampa-St. Petersburg and Atlanta posted the highest pre-mover index in the second quarter of 2018 — predictive of a high percentage of homeowners moving in the third quarter — among 36 metropolitan statistical areas with at least 500,000 single family homes and condos. Using data collected from purchase loan applications on residential real estate transactions, the ATTOM Data Solutions Pre-Mover Housing Index is based on the ratio of homes with a "pre-mover" indicator to total single family homes and condos in a given geography, indexed off the national average. An index above 100 is above the national average and indicates an above-average ratio of homes that will likely be sold in the next 90 days in a given market (see full methodology below). Among a broader set of 131 metro areas with at least 100,000 single family homes and condos, those posting the highest pre-mover index in Q2 2018 were Wilmington, North Carolina (206); Colorado Springs, Colorado (178); and Manchester-Nashua, New Hampshire (172); followed by Chicago (168) and Washington, D.C. (166). "A higher pre-mover index bodes well for local real estate agents, home improvement stores, moving companies and others that benefit from the halo effect of a home sale," said Daren Blomquist, senior vice president at ATTOM Data Solutions. "Meanwhile markets with a low pre-mover index likely have a scarcity of inventory available to buy or relatively weak demand from prospective buyers — or some combination of both — which is not optimal for businesses that rely on the home sale halo effect." Cleveland, Boston, Pittsburgh post lowest pre-mover indexes among major metros Among the 36 metros with at least 500,000 single family homes and condos, those with the lowest pre-mover index in Q2 2018 were Cleveland, Ohio (38); Boston, Massachusetts (39); Pittsburgh, Pennsylvania (48); Detroit, Michigan (48); and San Francisco, California (49). Among the broader set of 131 metro areas with at least 100,000 single family homes and condos, those with the lowest pre-mover index in Q2 2018 were Providence, Rhode Island (31); Albany, New York (35); San Jose, California (37); Buffalo, New York (38); and Cleveland, Ohio (38). North Dakota, Illinois, Nevada post highest pre-mover indexes among states States with the highest pre-mover index in the second quarter of 2018 — predictive of a high percentage of homeowners moving in the third quarter — were North Dakota (275), Illinois (193), Nevada (164), Virginia (163), and Colorado (147). Other states with a pre-mover index among the 10 highest in Q2 2018 were New Jersey (133), Florida (133), Delaware (130), Maryland (127), and Utah (124). Chicago and DC counties post highest county pre-mover indexes Among 394 counties analyzed in the report, those with the highest pre-mover index in Q2 2018 were Kendall County, Illinois, in the Chicago metro area (461); Albemarle County, Virginia, in the Charlottesville metro area (337); followed by three Virginia counties all in the Washington, D.C. metro area: Loudon County (319), Alexandria City (307); and Spotsylvania County (294). San Francisco and New York City counties post lowest county pre-mover indexes Among the same 394 counties, those with the lowest pre-mover index in Q2 2018 were San Francisco County, California (31); Queens County, New York (33); Westchester County, New York (36); Westmoreland County, Pennsylvania in the Pittsburgh metro area (39); and Cameron County, Texas in the Brownsville-Harlingen metro area (42). Highest share of investment property pre-movers in Memphis, Indianapolis, Knoxville Nationwide 4.6 percent of all single family homes and condos with a pre-mover indicator in Q2 2018 were being purchased as an investment property. Among the 131 metropolitan statistical areas analyzed in the report, the highest share of pre-mover investment homes were in Memphis, Tennessee (21.3 percent); Indianapolis, Indiana (10.9 percent); Knoxville, Tennessee (10.1 percent); Dayton, Ohio (9.4 percent); and Fort Collins-Loveland, Colorado (9.3 percent). Highest share of second home pre-movers in Ocean City, Naples, Myrtle Beach Nationwide 3.2 percent of all single family homes and condos with a pre-mover indicator in Q2 2018 were being purchased as a second home. Among the 131 metropolitan statistical areas analyzed in the report, the highest share of pre-mover second homes were in Ocean City, New Jersey (34.6 percent); Naples-Marco Island, Florida (31.3 percent); Myrtle Beach, South Carolina (25.2 percent); Cape Coral-Fort Myers, Florida (20.9 percent); and Wilmington, North Carolina (15.7 percent). About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, APIs, market trends, marketing lists, match & append and more.
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Best Neighborhoods for Real Estate Buying and Investing
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Who's Closing on a Home in the Most Competitive Market of All-Time?
More than half of those who purchased a home this year paid asking price or less SANTA CLARA, Calif., July 17, 2018 -- Low inventory, rising home prices, and higher interest rates are making it more difficult, but they aren't keeping some people from closing on a home, according to the results of a survey released today by realtor.com, The Home of Home Search. In fact, 34 percent of those who purchased a home were unfazed by price and rate hikes, 51 percent didn't pay above asking, and 42 percent only made one or two offers. The typical profile of a successful buyer in the first half of 2018 is someone who was in the market for six months or less (61 percent), made four or fewer offers (72 percent), and bought a three-bedroom, two-bath home. Those that had an easiest time buying a home were older buyers, above the age of 55 years old, according to the survey that was conducted earlier this month by Harris Research and includes online responses from more than 1,000 people who closed in 2018. "Successful homebuyers in 2018 have been exceptionally well-qualified," said Danielle Hale, chief economist for realtor.com®. "We are seeing the impact of the inventory crisis in the data, and it's holding back home sales. While would-be buyers struggle with limited inventory, rising prices and mortgage rates, those who closed were undeterred by today's buyer frenzy. This is likely attributed to their experience, cash, and perhaps the market they've chosen to buy in." Rising rates and prices impacted the majority of buyers Home prices set new records this spring. Two-thirds of closers revealed their search was impacted by rising prices or rates. In fact, 22 percent indicated increased costs forced them to look for a less expensive home. Nineteen percent said they had to increase their monthly mortgage budget and the same share said they had to look in a different neighborhood. Conversely, 34 percent of those who closed indicated that rising prices and mortgage rates had no impact on their purchase. Fifty-four percent of buyers above 55 years old indicated no impact, while 31 percent of buyers between the ages of 35 and 54 years old, and 23 percent of those 18-34 years old reported this. Most closers didn't pay above asking, but put down more than 20 percent Despite this season's notorious bidding wars, the majority of successful home buyers, 51 percent, didn't have to pay more than asking price. In fact, 28 percent of buyers paid less than asking price and 23 percent paid full asking. This also varied by age, only 24 percent of those over 55 years old paid over asking, compared to 59 percent of those 18-34 years old and 56 percent of those 35-54 years old. Although the majority didn't offer above asking, these successful buyers were able to entice sellers with cash. Mortgage data* from the first half of 2018 shows more than 30 percent of buyers put more than 20 percent down. This data also shows that larger down payments are more common among older buyers with 22 percent of those aged 18-34, 32 percent of those aged 35-54, and 51 percent of those aged 55 and older putting more than 20 percent down. Fast closings with limited number of offers A large share of those who bought in 2018 closed very quickly. In fact, 25 percent of respondents started their search and closed within two months. More than 60 percent closed within six months and only 8 percent took one year or more after starting their search. Older buyers were more likely to close quickly with 34 percent of those 55-plus closing within two months, compared to 23 percent of 35-54-year-olds and 21 percent of 25-34-year-olds. Additionally, nearly half of all buyers, 42 percent, were able close on a home after one to two offers. Fifty-eight percent had to make three or more offers. Again, older buyers came out on top with 64 percent of those 55-plus making only one or two offers, compared to 38 percent of those 35-54 years old and 30 percent of 18-34-year-olds. Additionally, one third of 18-54-year-olds had to make five or more offers. Checking listings websites and cash are the key to getting ahead When buyers were asked about the most effective tactic they used to get ahead, the No. 1 strategy cited was checking listings websites everyday, indicated by 30 percent. Twenty-four percent reported putting more than 20 percent down and the same share reported using all cash, followed by 20 percent of respondents who used each of the following tactics: set a price alert, offered above asking, and used a larger earnest money deposit. For more information, please visit: https://www.realtor.com/research/home-buyers-in-the-most-competitive-market *Mortgage data is sourced from realtor.com® analysis of Optimal Blue mortgage origination data. About realtor.com® Realtor.com®, The Home of Home SearchSM, offers the most comprehensive source of for-sale MLS-listed properties, among competing national sites, and access to information, tools and professional expertise to help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today is the trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [NASDAQ: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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Redfin Survey: 36% of Millennial Homebuyers Took a Second Job to Save for Down Payment; 10% Sold Cryptocurrency
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HOME Survey: Housing and Economic Outlook Remains Steady in Second Quarter of 2018
WASHINGTON (June 21, 2018) — New findings from the National Association of Realtors® show that a high number of Americans, 75 percent, believe that now is a good time to sell a house, while 68 percent think it is a good time to buy. That's according to NAR's second quarter Housing Opportunities and Market Experience (HOME) survey, which also found that a majority of consumers believe prices have and will continue to increase and that homeownership strengthens our nation's communities. Optimism that now is a good time to buy remains stagnant from last quarter; 39 percent strongly agree that now is a good time to buy, while 29 percent moderately agree. Among renters, however, those positive feelings have fallen significantly from 55 percent in the first quarter to 49 percent this quarter. Optimism is highest among older buyers (65 or over) and those living in the South and Midwest regions (73 and 71 percent respectively). NAR Chief Economist Lawrence Yun says affordability and low inventory are eroding buyer confidence. "Inventory remains the driving force in real estate, affecting everything for rising prices to household formation. Improving supply conditions is critical to improving buyer optimism and helping to remove some of the barriers holding back potential first-time buyers." As home prices continue to climb across the country, the number of respondents who believe now is a good time to sell remains high with 46 percent strongly agreeing (up from 42 percent last quarter) and 29 percent moderately agreeing. Twenty-nine percent believe that now is not a good time to sell a home, and that drops to 19 percent for current homeowners. "Hopefully this strong seller optimism will lead to an increase in inventory later on in the year," said Yun. Respondents were also asked about their perception of home prices in their communities. Sixty-eight percent believe that home prices have gone up in their area in the last 12 months, up from 63 percent last quarter. Fifty-five percent also believe that home prices will continue to increase in their communities in the next six months, also up from the previous quarter (53 percent). A near high of 58 percent of households believe that the economy is improving – slightly down from 60 percent last quarter but up from 54 percent last year. People in rural areas are more likely to view the economy as improving (63 percent) than in urban areas (51 percent). The HOME survey's monthly Personal Financial Outlook Index, showing respondents' confidence that their financial situation will be better in six months, dropped slightly from 63.8 in March to 62.1 in June. A year ago, the index was 57.2. Forty-six percent of those surveyed say they do not believe it would be difficult to obtain a mortgage, up from 36 percent last quarter. "This is most likely a reflection of the current positive outlook on the direction of the economy," said Yun. "Healthy job creation and faster wage growth mean that homeownership is viewed as a more attainable goal than it was a year ago." Homeownership's effect on communities, future generations In this quarter's survey, homeowners and non-homeowners were asked if a high rate of homeownership strengthens a community. Sixty-seven percent of those surveyed said that homeownership strengthens communities a great deal, and that number jumps to 76 percent for current homeowners and 77 percent for those 65 and older. "Homeowners are more likely to be involved and engaged in the issues facing their communities, since they tend to be more rooted in the area than renters," said NAR President Elizabeth Mendenhall, a sixth-generation Realtor® from Columbia, Missouri and CEO of RE/MAX Boone Realty. "This involvement – homeowners are more likely than renters to vote, volunteer their time at local charities and support neighborhood upkeep – helps shape and strengthen our nation's communities, as well as drive the national economy." Respondents were also asked if homeownership will be easier or harder to attain for future generations. Seventy-three percent believe that it will be harder for future generations to purchase a home, compared to only 11 percent who think it will be easier. Seventy-four percent of respondents 34 or under believe it will be more difficult to become homeowners. About NAR's HOME survey In April through June, a sample of U.S. households was surveyed via random-digit dial, including a mix of cell phones and land lines. The survey was conducted by an established survey research firm, TechnoMetrica Market Intelligence. Each month approximately 900 qualified households responded to the survey. The data was compiled for this report and a total of 2,707 household responses are represented. 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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Amazon HQ2 Finalists Ranked by Housing Market Health
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Looking Elsewhere: External Searches in California's Hottest Markets More than Double the U.S. Average
Phoenix, Las Vegas and Prescott, Ariz. are Top Destinations for California Expats SANTA CLARA, Calif., May 31, 2018 -- California's housing affordability crisis is prompting residents to look for homes in less expensive areas or outside of the state. New research from realtor.com®, The Home of Home Search℠, reveals affordability issues are driving California residents to search for homes in Phoenix, Las Vegas and Prescott, Ariz., as well as in more affordable California counties. In 16 of California's hottest markets -- including Santa Clara, San Mateo and Los Angeles -- outbound home searches are two times greater than the U.S. average. The analysis examines realtor.com® home searches in the 16 California counties and American Community Survey migration estimates. Search data includes both outbound searches and the ratio of search traffic viewing pages outside of an area versus outside traffic coming in. The ACS data includes the domestic migration ratio, which is the ratio of net migration less international migration, relative to the population. "Our research shows many California residents may have reached their breaking point," said Danielle Hale, chief economist for realtor.com.® "Affordability is pricing them out of the California home market and many are searching for more affordable options in other areas. This exodus could help slow price appreciation in California, but potentially heat up prices and reduce inventory in surrounding markets. If this pattern continues, we could see Californians drive up home prices in parts of Phoenix, Las Vegas and Prescott, Ariz." In addition to Santa Clara, San Mateo and Los Angeles, the top California counties where residents are leaving, according to ACS migration patterns, are split between the Northern and Southern areas of the state. In rank order, they include: Napa, Monterey, Alameda, Marin, Orange, Santa Barbara, San Diego, Imperial, Ventura, San Francisco, Santa Cruz, Tulare, and Sonoma. California median list prices have increased 83 percent over the last six years, to $549,000 from $300,000, outpacing local income growth by three times. According to realtor.com®'s analysis, 52 percent of residents looking outside their county are looking to move outside California to nearby states. The top 10 out of state destinations include, in rank order, Phoenix (Maricopa County, Ariz); Las Vegas (Clark County); Prescott (Yavapai County, Ariz.); Boise (Ada County, Idaho); Reno, (Washoe County, Nev.); Lake Havasu (Mohave County, Ariz.); Pima County, Ariz.; Coeur d'Alene (Kootenai County, Idaho); Austin (Travis County, Texas); and the Big Island (Hawaii County, Hawaii). Most of the counties on this list offer California residents relatively close proximity to California, dry and sunny weather, as well as more affordable home prices. On average, those searching out of state are looking at properties that are 43 percent more affordable than their current county. Additionally, nearly half -- 48 percent -- of those searching outside their county are looking within California. The top 10 in state counties most searched by those looking to leave their county include: Riverside, San Bernardino, Los Angeles, Orange, Sacramento, San Diego, Placer, Contra Costa, El Dorado, and Ventura County. Those searching in other California counties are looking at properties that are on average 17 percent more affordable. Top Destinations by California Market 1. Santa Clara County Out of state destinations:  Arizona, Nevada, Texas and IdahoIn state destinations:  Alameda, Sacramento, San Joaquin, Santa Cruz and Placer counties When looking out of state, shoppers from Santa Clara are looking at far more affordable properties in Maricopa, Ariz.; Clark, Nev.; Washoe, Nev.; Travis, Texas; and Ada, Idaho counties that are $750,000 to $965,000 less than the typical property in Santa Clara. Within California, they are looking at properties in nearby counties of Alameda, Sacramento, San Joaquin, Santa Cruz and Placer that are $509,000 - $894,000 less than the Santa Clara median. 2. San Mateo County Out of state destinations:  Arizona, Nevada, Texas and WashingtonIn state destinations:  Alameda, Contra Costa, Santa Clara, Sacramento, and San Francisco counties San Mateo shoppers are looking at far more affordable counties when shopping out of state. The properties they look at in Maricopa, Ariz.; Clark, Nev.; Washoe, Nev.; Travis, Texas; and King, Wash. counties are $778,000 – $1.1 million less than the typical San Mateo property. Those looking in state are looking in nearby counties of Alameda, Contra Costa, Santa Clara, Sacramento, and San Francisco and considering properties $274,000 - $1.1 million less than the median price in San Mateo. 3. Los Angeles County Out of state destinations:  Nevada, Arizona, and IdahoIn state destinations:  San Bernardino, Riverside, Ventura and Kern counties Angelenos looking out of state are viewing homes priced well below the Los Angeles median. The typical home they view in Clark, Nev.; Maricopa, Ariz.; Yavapai, Ariz.; Mohave, Ariz.; and Ada, Idaho counties is $306,000 - $455,000 below the typical listing at home. Shoppers looking in state are generally looking at properties that are $22,000 - $446,000 less expensive than their current market price. However, homes viewed in nearby Orange County are $34,000 more expensive. 4. Napa County Out of state destinations:  Arizona, Idaho, Nevada, Florida and OregonIn state destinations:  Solano, Sonoma, Sacramento, Lake and El Dorado counties Napa's out of state searchers in Maricopa, Ariz; Ada, Idaho; Washoe, Nev.; Brevard, Fla.; and Deschutes, Ore. counties are looking at properties that are $170,000 to $450,000 less expensive than the market price in Napa. Those looking in nearby California counties of Solano, Sonoma, Sacramento, Lake and El Dorado counties are looking at properties priced $120,000 to $484,000 less than the market price in Napa. 5. Monterey County Out of state destinations:  Arizona, Nevada, and IdahoIn state destinations: San Luis Obispo, Fresno, Santa Cruz, Sacramento and San Diego counties Monterey out of state shoppers are viewing homes in Maricopa, Ariz; Washoe, Nev.; Yuma, Ariz.; Ada, Idaho; and Clark, Nev. that are $494,000 - $749,000 less expensive than the typical listing at home. Those looking to stay in state are looking in counties like San Luis Obispo, Fresno, Santa Cruz, Sacramento and San Diego and specifically at properties that are $314,000 - $664,000 less than the market price in Monterey. 6. Alameda County Out of state destinations: Arizona, Nevada, Idaho, and HawaiiIn state destinations: Contra Costa, San Joaquin, Sacramento, Placer, and El Dorado counties Shoppers are viewing homes in Maricopa, Ariz. and Ada, Idaho well above the local market median which is still a $300,000 - $400,000 bargain compared to Alameda. In Clark and Washoe counties in Nevada and Hawaii, they are viewing homes priced below the local median listing price and between $300,000 and $500,000 below the typical Alameda listing. Within California, they are generally shopping for a home $160,000 - $415,000 below their current median in counties such as Contra Costa, San Joaquin, Sacramento, Placer and El Dorado. 7. Marin County Out of state destinations: Nevada, Arizona, Oregon and IdahoIn state destinations: Sonoma, Contra Costa, Solano and San Francisco counties Out of state shoppers viewing homes in more affordable counties such as Washoe, Nev.; Maricopa, Ariz.; Pima, Ariz.; Deschutes, Ore.; and Ada, Idaho are looking at homes generally priced $621,000 - $1 million less than the typical listing in Marin. Shoppers looking within state are looking at properties in Sonoma, Contra Costa, Solano and San Francisco counties, priced $167,000 - $937,000 less than the market price in Marin. 8. Orange County Out of state destinations: Arizona, Nevada and IdahoIn state destinations: Riverside, Los Angeles, San Bernardino, San Diego and San Luis Obispo The typical Orange County out of state shopper is looking in Maricopa, Ariz.; Clark, Nev.; Yavapai, Ariz.; Ada, Idaho; and Mohave, Ariz. counties at properties that are $442,000 - $592,000 less than the typical property in Orange County. Those looking to stay in state are looking in nearby counties of Riverside, Los Angeles, San Bernardino, San Diego and San Luis Obispo at properties priced $192,000 - $527,000 less than the typical property in Orange County. 9. Santa Barbara County Out of state destinations: Arizona, Nevada and IdahoIn state destinations: San Luis Obispo, Ventura, Los Angeles, Riverside and Kern counties When looking out of state, shoppers from Santa Barbara are looking at far more affordable counties such as Maricopa, Ariz.; Clark, Nev; Yavapai, Ariz.; Kootenai, Idaho; and Mohave, Ariz and view properties that are $481,000 - $661,000 less than the typical property in Santa Barbara. Those looking nearby are interested in the counties of San Luis Obispo, Ventura, Los Angeles, Riverside and Kern and homes priced $47,000 - $667,000 less than the Santa Barbara median price. 10. San Diego County Out of state destinations: Arizona and NevadaIn state destinations: Riverside, San Bernardino, Imperial, Orange County and Los Angeles Out of state shoppers are looking at homes in Maricopa, Ariz.; Clark, Nev.; Yavapai, Ariz.; Mohave, Ariz.; and Pima, Ariz. counties that are priced $324,000 - $444,000 less than the typical property in San Diego. Shoppers viewing properties within state are looking at homes in Riverside, San Bernardino, Orange County, Los Angeles and Imperial counties. The properties they look at in Riverside, San Bernardino and Imperial are $289,000 - $429,000 less expensive than the typical property in San Diego, but in Orange County and Los Angeles, they are $86,000 - $106,000 more than the San Diego median list price. 11. Imperial County Out of state destinations: Arizona and IdahoIn state destinations: San Diego, Riverside, Los Angeles, San Bernardino, and Orange counties Shoppers looking outside of Imperial are viewing significantly more expensive properties than the Imperial housing market. The typical home they are looking at in counties like San Diego, Riverside, Los Angeles, San Bernardino, and Orange is $32,000 - $705,000 more than the median price in Imperial. Out of state shoppers are looking at homes in Yuma, Ariz.; Maricopa, Ariz.; Ada, Idaho; and Coconino priced $15,000 - $179,000 below the typical listing in the Imperial, although the typical home looked at in Yavapai, Ariz. is $71,000 more. 12. Ventura County Out of state destinations: Arizona, Nevada, and IdahoIn state destinations: Los Angeles, Kern, Riverside and San Bernardino counties Out of state Ventura shoppers are looking at less expensive homes in Maricopa, Ariz.; Clark, Nev.; Yavapai, Ariz.; Ada, Idaho; and Mohave, Ariz. counties that are $298,000 - $507,000 less than the typical property in Ventura. Shoppers looking in state are searching in Los Angeles, Kern, Riverside and San Bernardino counties at homes that are $2,000 - $457,000 less than the median price in Ventura, but properties they look at in Santa Barbara County are $152,000 more. 13. San Francisco County Out of state destinations: Arizona, Nevada, Illinois and OregonIn state destinations: Contra Costa, Alameda, San Mateo, Sonoma, and Sacramento When looking out of state, shoppers from San Francisco are looking at properties in Maricopa, Ariz.; Clark, Nev.; Washoe, Nev.; Cook, Ill.; and Multnomah, Ore. counties that are $841,000 - $1.0 million less than the typical property in San Francisco. Those looking in state are typically searching in Contra Costa, Alameda, San Mateo, Sonoma, and Sacramento counties for properties that are $390,000 - $940,000 less than the San Francisco median list price. 14. Santa Cruz County Out of state destinations: Nevada, Arizona, Hawaii, and OregonIn state destinations: Monterey, Placer, El Dorado and San Luis Obispo When looking out of state, shoppers from Santa Cruz are looking at properties in Washoe, Nev.; Maricopa, Ariz.; Hawaii, Hawaii; Douglas, Nev.; and Deschutes, Ore. counties that are $450,000 - $585,000 less than the typical property in Santa Cruz. Properties they look at in state in the nearby counties of Monterey, Placer, El Dorado and San Luis Obispo are typically $313,000 - $480,000 less expensive than the Santa Cruz median price. However, the properties they look at in Santa Clara are $184,000 more expensive than Santa Cruz. 15. Tulare County Out of state destinations: Nevada, Arizona, Kansas and IdahoIn state destinations: Fresno, San Luis Obispo and Los Angeles Very little of Tulare's demand flows out of state but top out of state locations include Nevada, Arizona, Kansas and Idaho. When looking out of state, shoppers from Tulare are looking at properties in Clark, Nev.; Maricopa, Ariz.; Johnson, Kan.; Ada, Idaho; and Yavapai, Ariz. counties that are $11,000 - $111,000 more expensive than the typical property in Tulare. Those looking to remain in state are viewing properties in Fresno, San Luis Obispo and Los Angeles that are $26,000 - $600,000 more expensive than Tulare, but properties in Kings and Kern County are $9,000 - $10,000 less expensive. 16. Sonoma County Out of state destinations: Arizona, Idaho, Oregon and NevadaIn state destinations: Lake, Mendocino, Placer, Sacramento and El Dorado counties When looking out of state, shoppers from Sonoma are looking in Maricopa, Ariz.; Ada, Idaho; Pima, Ariz.; Jackson, Ore.; and Washoe, Nev. counties at properties that are $176,000 - $376,000 less than the typical property in Sonoma. Shoppers looking in state are typically looking in Lake, Mendocino, Placer, Sacramento and El Dorado counties at properties that are $186,000 - $458,000 less than the Sonoma median price. For more California migration data, please visit realtor.com/research. 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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Redfin Migration Report: Denver Joins Seattle and San Francisco as a Tech Hub with More People Looking to Move Out than Move In
SEATTLE, May 23, 2018 -- In the first three months of 2018, Denver posted a "net outflow" of Redfin users for the first time, meaning that more Denver-based Redfin users were searching for homes in other metro areas than Redfin users elsewhere looking to move in. This is according to the latest Migration Report by Redfin, the next-generation real estate brokerage. The analysis is based on a sample of more than 1 million Redfin.com users searching for homes across 75 metro areas from January through March. Of all Denverites using Redfin, 20 percent were searching for homes in another metro, up from 15 percent during the same time period a year earlier. Nationally, 23.9 percent of Redfin.com users looked to relocate to another metro area last quarter, up from 19.8 percent a year earlier. Seattle, which is grappling with a controversial tax related to the city's housing crisis, has posted two consecutive quarters of net outflow, based on Redfin user data. In the first quarter, 12 percent of Seattle-based Redfin users were looking in other metro areas, up from 9 percent during the same period last year. "Home searches are a forward-looking indicator of what is likely to happen to a city's population," said Taylor Marr, senior economist at Redfin. "We saw this in 2015 in the Bay Area, when more Bay Area Redfin users were searching elsewhere. By 2016, the U.S. Census Bureau showed San Francisco had lost residents. Now we see signs that Denver and Seattle, cities that once attracted those fleeing high home prices, are becoming unaffordable as well." Below are the metros with the highest net outflows of Redfin users: Census data shows that Denver peaked at 40,000 net domestic migrations in 2015, meaning that many more people moved to Denver than left. Since then, while still positive, the net migration has declined each year. Looking ahead, based on Redfin user search trends, the company expects Denver to see a negative net migration, or a loss of residents, in the 2019 Census. Meanwhile in Seattle, the Census data reveal peak net domestic migration in 2016, a year later than Denver, and the decline in 2017 was less dramatic. Redfin search data, however, shows users increasingly looking to leave the Seattle area. Since October 2017, more Seattleites are looking at homes elsewhere than the other way around. Where are they going? Residents looking to leave Seattle and Denver last quarter were mostly looking in areas that were more affordable and less competitive. Los Angeles looks like an exception on the surface, because the metro area on average is more expensive than Denver and Seattle. However, when they looked at the county level, analysts found that the most common areas homebuyers were looking at were more affordable areas of the LA market, like the Inland Empire (Riverside County, CA). Phoenix was a top destination for both Seattle and Denver last quarter, and had the largest net gain of Redfin users looking to move to the area from elsewhere. This was up significantly—34 percent—from a year ago. Phoenix is also much more affordable, with a median home sale price of $257,000 as of April, compared to $415,000 in Denver and $580,000 in Seattle. Major cities in Texas, as well as Chicago and Portland, are also attractive to those leaving Seattle and Denver. This has resulted in a disbursement of wealth throughout the country to cities that have made it easier to build new housing. Which Cities Will be Next? Below are the 10 metros that are the most likely to receive big inflows of new residents in the next year from expensive coastal markets, based on the number of users looking to relocate there versus leave. With these new residents, economic growth and rising home prices will likely follow, as we saw in Seattle and Denver. The new destinations will be at risk for becoming unaffordable over time as well, unless they build enough new homes to keep up with the influx of people. Cities like Las Vegas, Atlanta and Austin are building thousands of new housing units to accommodate this growth. Meanwhile Sacramento, Portland and San Diego are good examples of markets experiencing early signs of slowing growth, with smaller net inflows of Redfin users in the first quarter of this year than in the same time period in 2017. These metro areas have not expanded housing as rapidly to dampen growth in housing costs. To read the full report, complete with more data and interactive charts, please click here. About Redfin Redfin is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $60 billion in home sales.
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Nevada Leads Nation with Highest Share of Homeowners Likely to Move in Q2 2018
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Housing Economists Call for Increase in Home Construction
WASHINGTON (May 18, 2018) – An increase in housing supply is crucial to the health and sustainability of the real estate market and the economy, according to speakers at a session organized by the REALTOR® University Richard J. Rosenthal Center for Real Estate Studies during the 2018 REALTORS® Legislative Meetings & Trade Expo. The session, "Outlook for Home Prices and Residential Construction," focused on rapidly rising home prices, tight home inventories and whether or not the country is in the middle of a bubble. All three of the panelists agreed that more new home construction is necessary to meet rising demand from increasing household formation and curtail the affordability crisis. "Young adults of today are forming households at a much lower rate than previous generations, and high housing costs contribute to that," said Len Kiefer, deputy chief economist for Freddie Mac. According to Kiefer, one third to three quarters of U.S. markets have an elevated home price-to-income ratio and many major markets, such as Austin, Miami and Portland, are getting close to surpassing their 2008 ratio. "Are we in a bubble? No, not currently," said Kiefer. He outlined ways the current market is different from the one leading to the recession, such as no signs of over leveraging and the very low ratios of household income to debt. The aggregate risk of mortgages in the U.S. is also comparatively low "Those risky loans that contribute to the last bubble have largely gone away in the current market," he said. However, the panelists were quick to point out that just because we are not currently in a bubble does not mean we won't enter one. If supply and demand continues to become more and more out of balance, it could trigger a fast price growth, said NAR Chief Economist Lawrence Yun. "A best-case scenario is largely dependent on new home construction. An increase in inventory will provide some much-needed release," he said. Ken Simonson, chief economist for Associated General Contractors of America, discussed how low employment in construction is also contributing to the lag in new home construction, despite high demand. "Construction saw a 30 percent drop in employment in the previous decade, the largest drop of any industry. They also began laying people off a year before the recession began and did not start hiring again until much later than other industries," said Simonson. This has led to difficulty in bringing skilled laborers back to the industry. "Construction companies are having to hire people with no experience and spend more time and money on training," he said. Material costs have also contributed to the low rate of construction. The price of diesel fuel, which is used in earth moving vehicles and in transporting materials, has risen 42 percent since 2017. The cost of lumber and plywood has also increased 11 percent, copper and brass mill shapes have risen 10 percent and ready-mix concrete has risen 7 percent. 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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Realtor.com Identifies Toughest Housing Markets for Millennials
List includes San Jose, Calif.; Seattle and Salt Lake City, as well as some surprises SANTA CLARA, Calif., April 26, 2018 -- This spring, the largest generation in U.S. history – millennials – is colliding with the toughest home buying season in history, and they will fare better in some markets than others. According to a new analysis released today by realtor.com®, the home of home search, the combination of low inventory, escalating home prices and high demand have made San Jose, Seattle, Salt Lake City, Minneapolis and Omaha, Neb., the toughest areas in the country for millennial buyers this spring. "Millennials want to buy, but record-low inventory is making it extremely difficult," Danielle Hale, chief economist for realtor.com®. "Our analysis shows millennials are facing challenges in both established markets such as San Jose and Seattle, as well as more recently popular areas like Omaha and Salt Lake City. Despite the difficulties, first-timers are optimistic and more than willing to weather the challenges this spring has to offer." Key Dynamics in the Top Five Markets All the markets on the list are millennial hotspots that have attracted 25- to 34-year-olds with strong economies and high-paying jobs. As a result, millennials make up a higher share of the population, at 14.6 percent, compared to 13.4 percent for the U.S. Household income among 25- to 34 year-olds in these five locations is also significantly higher, at roughly $79,000, compared to the U.S. median of $59,800. Additionally, based on realtor.com® search data, millennials in these markets are very interested in buying a home. In the first quarter, they accounted for 25 percent of views, higher than any other age group. However, low inventory levels and high prices are making it tough for these would-be buyers. Nationally, inventory is 35 percent lower than the spring of 2012 and prices have reached a new high of $280,000. The shortage is even more acute in these five metros. Compared to this time last year, active listings in these five metros remain 8 percent lower, age of inventory is 7 percent lower, and list prices are 8 percent higher. Supply is nearly three times lower than the rest of the country, at 5.7 listings versus 16.1 listings per 1,000 households. Additionally, listings in these areas are scarcer and selling faster for more money. In these five metros active listings are 9 percent lower, age of inventory is 13 percent lower, and list prices are 14 percent higher from a year ago. Toughest Housing Markets for Millennials 1. San Jose - The median list price in San Jose is $1,244,000, compared to $280,000 for the U.S. overall. On average, San Jose millennials earn $109,800 annually. Millennials make up 14.3 percent of the total population in San Jose and account for 24.1 percent of total realtor.com® page views in the area. Millennials are flocking to San Jose in hopes of earning the "tech salary" that everyone is chasing. Apple, Adobe, Intel, and NASA are just a few of the companies that call this area home. With San Jose State University and nearby Stanford University, the area is replete with young students and scholars. The inventory shortage is especially significant in the area and is pushing non-tech industry workers to the outskirts. 2. Seattle - The median list price in Seattle is $553,000. On average, millennials earn $78,300. Millennials make up 15.4 percent of the total population in Seattle and account for 24.2 percent of total realtor.com® page views in the area. Big tech employers such as Amazon, Microsoft, and Expedia are a big draw for millennial and non-millennial workers to the Seattle area. Beyond the tech scene, Seattle offers great outdoor spaces, such as Kerry Park and a thriving nightlife in Ballard and Capitol Hill. Despite Seattle's already high home prices, real estate professionals don't see any end in sight given the large amount of tech money flooding into the area. They also report many millennials are spending more than $1,000,000 on their first home due to the high salaries and home prices in the area. 3. Salt Lake City - The median list price in Salt Lake City is $394,000. On average, millennials earn $67,800 annually. Millennials make up 15.5 percent of the total population in Salt Lake City and account for 26 percent of total realtor.com® page views in the area. Salt Lake City offers the perfect blend of city life and the great outdoors for millennial professionals. Intermountain Healthcare Medical Center, University Hospital and the University of Utah are the largest employers in the area, with other notable companies such as Delta Air Lines and eBay. Located just an hour from Park City, residents can spend the morning downtown shopping one of the city's many trendy shopping areas, and be on the slopes by mid-afternoon. However, millennials are struggling to find their place in the hot housing market. Many homes under $350,000 are getting scooped up instantly by older buyers who often have more money. 4. Minneapolis - The median list price in Minneapolis is $283,000. On average, millennials earn $73,600 annually. Millennials make up 13.8 percent of the total population in Minneapolis and account for 25.9 percent of total realtor.com® page views in the area. Minneapolis is the perfect city for millennials who love a mix of natural amenities and urban living. The area is home to 17 Fortune 500 companies, including UnitedHealth Group, Target, Best Buy, and 3M. It's also home to a thriving cycling culture, with the second (only to Portland) most bike commuters of all big cities. The city is relatively affordable, but it's become more difficult for first-time buyers to find homes under $250,000. When they do, they are often outbid by cash offers from boomers. 5. Omaha - The median list price in Omaha is $283,000. On average, millennials earn $63,500 annually. Millennials make up 13.8 percent of the total population in Omaha and account for 25.9 percent of total realtor.com® page views in the area. Millennials are drawn to Omaha for its low cost of living, strong school system, and thriving job market. With schools such as Spring Ridge Elementary, Aldrich Elementary, and Hitchcock Elementary, all of which scored 9/10 by Greatschools.org, the area is great for millennials who want to start families. It offers strong financial, medical and military jobs with companies such as Nebraska Medicine, Taylor Telecommunications, and Union Pacific Railroad Co. Millennials looking to find homes under $250,000 are struggling, but boomers purchasing more expensive homes continue to have success closing. Methodology Realtor.com® analyzed the largest 60 metros in the country with large populations of older millennial markets. Markets were then ranked based on inventory availability and affordability. About realtor.com® Realtor.com® is the home of home search, offering the most comprehensive source of for-sale properties, among competing national sites, and 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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U.S. Property Taxes Levied on Single Family Homes in 2017 Increased 6 Percent to More Than $293 Billion
Average Property Tax Was $3,399, Up 3 Percent and Effective Tax Rate of 1.17 Percent; Highest Effective Tax Rates in New Jersey, Illinois, Vermont, Texas, New Hampshire; Average Property Taxes Nearly Twice as High in Politically Blue Counties as in Red Counties IRVINE, Calif. – April 5, 2018 — ATTOM Data Solutions, curator of the nation's premier property database, today released its 2017 property tax analysis for more than 86 million U.S. single family homes, which shows that property taxes levied on single family homes in 2017 totaled $293.4 billion, up 6 percent from $277.7 billion in 2016 and an average of $3,399 per home — an effective tax rate of 1.17 percent. The average property taxes of $3,399 for a single family home in 2017 was up 3 percent from the average property tax of $3,296 in 2016, and the effective property tax rate of 1.17 percent in 2017 was up from the effective property tax rate of 1.15 percent in 2016. The report analyzed property tax data collected from county tax assessor offices nationwide at the state, metro and county levels along with estimated market values of single family homes calculated using an automated valuation model (AVM). The effective tax rate was the average annual property tax expressed as a percentage of the average estimated market value of homes in each geographic area. New Jersey, Illinois, Vermont, Texas, New Hampshire post highest property tax rates States with the highest effective property tax rates were New Jersey (2.28 percent), Illinois (2.22 percent), Vermont (2.19 percent), Texas (2.15 percent), and New Hampshire (2.06 percent). Other states in the top 10 for highest effective property tax rates were Pennsylvania (2.02 percent), Connecticut (1.99 percent), New York (1.92 percent), Ohio (1.72 percent), and Wisconsin (1.67 percent). Among 217 metropolitan statistical areas analyzed in the report with a population of at least 200,000, those with the highest effective property tax rates were Scranton, Pennsylvania (3.93 percent); Binghamton, New York (3.14 percent); Rockford, Illinois (3.03 percent); Rochester, New York (2.93 percent); and El Paso, Texas (2.63 percent). Property taxes increase faster than national average in 58 percent of markets Out of the 217 metropolitan statistical areas analyzed in the report, 125 (58 percent) posted an increase in average property taxes above the national average of 3 percent, including Los Angeles (7 percent increase), Dallas (11 percent increase), Houston (10 percent increase), Philadelphia (4 percent increase), and Miami (5 percent increase). "Across California, it's not the percentage of property tax increase that is as concerning to consumers, as it is the net effect to cash flow, especially for an aging population on fixed incomes," said Michael Mahon, president at First Team Real Estate, covering Southern California. "This erosion of disposable income for many homeowners coupled with an aging housing inventory stock in need of repair across many areas of the state puts some homeowners in a difficult position where they have ample housing equity on paper but aren't able to realize home value gains until a future sale of the property." Other major markets posting an increase in average property taxes that was above the national average were Atlanta (up 4 percent), Boston (up 5 percent), San Francisco (up 6 percent), Riverside-San Bernardino (up 5 percent), and Seattle (up 6 percent). "The increase in property taxes in the Seattle region is not surprising given the number of voter approved measures that add to homeowners' property taxes as well as rising home values," said Matthew Gardner, chief economist at Windermere Real Estate, covering the Seattle housing market. "That said, this rapid rise in values of housing more than offsets this increase — therefore the relatively small effective tax rate. "Passage of the McCleary Bill (to fully fund K-12 basic education) means that 2018 property taxes are going to jump quite dramatically before dropping back in 2019 with the recently passed one-time property tax cut of 30 cents per $1,000 of assessed value," Gardner added. Hawaii, Alabama, Colorado, Tennessee, West Virginia post lowest property tax rates States with the lowest effective property tax rates were Hawaii (0.34 percent); Alabama (0.49 percent); Colorado (0.51 percent); Tennessee (0.56 percent); and West Virginia (0.57 percent). Other states in the top 10 for lowest effective property tax rates were Utah (0.58 percent), Delaware (0.61 percent), South Carolina (0.66 percent), Arkansas (0.68 percent), and Arizona (0.68 percent). Among the 217 metro areas analyzed for the report, those with the lowest effective property tax rates were Honolulu (0.33 percent); Montgomery, Alabama (0.36 percent); Tuscaloosa, Alabama (0.41 percent); Colorado Springs, Colorado (0.42 percent); and Greeley, Colorado (0.45 percent). 9 counties with average annual property taxes of more than $10,000 Among 1,414 U.S. counties with at least 10,000 single family homes, those with the highest average property taxes on single family homes were all in the greater New York metro area, led by Westchester County, New York ($17,179), Rockland County, New York ($12,924), Essex County, New Jersey ($11,878), Bergen County, New Jersey ($11,585), and Nassau County, New York ($11,415). Other counties with average property taxes of more than $10,000 — the cap on state and local tax deductions for federal income taxes under the tax reform legislation signed into law by President Donald Trump in December — on single family homes were Marin County, California ($11,295), Union County, New Jersey ($10,863), Fairfield County, Connecticut ($10,612), and Morris County, New Jersey ($10,294). Average property taxes nearly twice as high in blue counties as in red counties Among the 1,414 U.S. counties analyzed in the report, the average property tax on single family homes in the 327 "blue" counties won by Hillary Clinton in the 2016 presidential election was $4,528, nearly twice the average property tax on single family homes of $2,462 in the 1,087 "red" counties won by Donald Trump. There was not as much difference in the effective property tax rates between the blue counties and red counties because of higher average home values in the blue counties — $377,142 compared to $210,753 in the red counties. The effective property tax rate was 1.20 percent in the politically blue counties compared to a 1.17 percent effective property tax rate in the politically red counties. 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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Redfin Survey: 15 Percent of Respondents Sold Their Home or Did Not Buy Last Year Due to Concerns about Immigration Policies
SEATTLE — Feb. 6, 2018 -- Fifteen percent of respondents to a 2017 housing market sentiment survey said they either sold their home or did not buy one last year because of concerns about how restrictive immigration policies or proposals would affect them, according to Redfin, the next-generation real estate brokerage. From November 1 to December 6, 2017, Redfin commissioned a survey of 4,270 U.S. residents in 14 metropolitan areas who bought or sold a home in the past year, attempted to do so or planned to do so soon. Asked how restrictive immigration policies or proposals affected their decision to buy or sell a home, 8 percent of respondents said they sold their home in the last year because they were worried they wouldn't be able to stay or work in the U.S. much longer. Seven percent did not purchase a home for the same reason. "I've seen buyers finally get offers accepted, only to cancel the contracts," said Gabriella Stwart, a Redfin agent in Bellevue, Washington. "We're having conversations with professionals working at large companies who are eager to sell or not buying because their visas are expiring or close to it and might not be extended." The survey results reveal that housing markets in certain parts of the country are more likely to be affected by immigration policy. Among respondents in the Los Angeles area, 32.7 percent said they sold or did not buy a home because they were worried they wouldn't be able to work or stay in the country much longer. In Baltimore, 18.5 percent said the same, as well as 16.8 percent in San Francisco. Other findings in this first in a series of three reports on this survey include: 18% of millennials who bought a home in the last year now live in the political minority in their new community. 37% of people of color felt they may have been discriminated against when trying to buy a home, down from 43% in a similar survey in May. "The two data points we have about the perception of discrimination in housing reveal just a snapshot of what amounts to a short moment in our country's long history of racial inequality in housing, and change in the actual incidence of such discrimination is likely to happen only slowly over many years," said Nela Richardson, Redfin chief economist. "It's more likely that that the trend we see in this snapshot reveals an aberration last year around the contentious Presidential election, when racial tensions and anxiety about discrimination were heightened. However, when it comes to where people can live, work and go to school, the idea that more than a third of people of color buying a home still don't believe that their money is as good as anyone else's is a massive problem." To read the full report, complete with data, charts and a 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 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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Realtor.com® Predicts the New England Patriots to Triumph in the Super Bowl
Pick based on an analysis of the Boston and Philadelphia housing markets SANTA CLARA, Calif., Jan. 29, 2018 -- Realtor.com® today announced its prediction for a sixth NFL championship for the New England Patriots in Super Bowl LII. Its pick of the Patriots over the Philadelphia Eagles isn't based on defensive schemes or quarterback matchups, but rather a comparison of the strength of each team's respective housing markets. "Although there is no correlation between football and real estate, we made our pick based on what we know best – the housing market," said Nate Johnson, chief marketing officer for realtor.com®. "With strong home prices and fast days on market, there's no question that Boston currently has a more dynamic housing market, which in our minds make it the clear pick for the upcoming game." Both Philadelphia and Boston had strong real estate seasons this year, generating first- down payments and new home turf for thousands of buyers. But Boston showed more potent price yardage overall, with listing prices driving up 8 percent year over year, compared with Philadelphia's 6 percent gains. Boston also showed a faster running game with for sale inventory reaching the end zone and selling in 48 days versus 70 days in Philadelphia. When it comes to inventory declines, Boston dominated with inventory down 18 percent year over year, compared to Philadelphia's 15 percent decline. Realtor.com® made its pick based on a comparison of listing prices, days on market, and inventory from March 2017 through January 2018 for the Philadelphia and Boston metros. About realtor.com® Realtor.com® is the trusted resource for home buyers, sellers and dreamers, offering the most comprehensive source of for-sale properties, among competing national sites, and 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 helps make 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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Strong Demand, Tight Inventory and Unsatisfied Millennials Define Today's "State of the Housing Union"
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Buying a Home More Affordable Than Renting in 54 Percent of U.S. Markets
But 64 Percent of Population Live in Markets More Affordable to Rent Than Buy; Least Affordable Rental Markets Led by Counties in Northern California, DC, Brooklyn; Most Affordable Rental Markets in Alabama, Illinois, Ohio, Tennessee IRVINE, Calif. – Jan. 11, 2018 — ATTOM Data Solutions, curator of the nation's largest multi-sourced property database, today released its 2018 Rental Affordability Report, which shows that buying a median-priced home is more affordable than renting a three-bedroom property in 240 of 447 U.S. counties analyzed for the report — 54 percent. The analysis incorporated recently released fair market rent data for 2018 from the U.S. Department of Housing and Urban Development, wage data from the Bureau of Labor Statistics along with public record sales deed data from ATTOM Data Solutions in 447 U.S. counties with sufficient home sales data (see full methodology below). "Although buying is still more affordable than renting in the majority of U.S. housing markets, that majority is shrinking as home price appreciation continues to outpace rental growth in most areas," said Daren Blomquist, vice president at ATTOM Data Solutions. "Renting has clearly become the lesser of two housing affordability evils in many major population centers, with renting more affordable than buying in 76 percent of counties that have a population of 1 million or more. And when broken down by population rather than number of markets, this data shows that the majority of the U.S. population — 64 percent — live in markets that are more affordable to rent than to buy." Renting more affordable than buying in nation's most populated counties Counter to the overall trend, renting is more affordable than buying a home in the nation's 14 most populated counties and in 30 of 39 counties with a population of 1 million or more (76 percent) — including Los Angeles County, California; Cook County (Chicago), Illinois; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; and San Diego County, California. Other markets with a population of more than 1 million where it is more affordable to rent than to buy a home included counties in Miami, New York City, Seattle, Las Vegas, San Jose, San Francisco and Boston. "The thing about this data that concerns me the most is that it is now more affordable to rent in the greater Seattle area than buy. Even with solid income growth, the rapid rise in home prices is keeping many would-be buyers out of ownership," said Matthew Gardner, chief economist with Windermere Real Estate, covering the Seattle market. "To make matters worse, rapid rental rate growth in the core King County market is forcing many renters to look farther out to find something they can afford. Seattle needs considerably more affordable housing for renters and home buyers alike. Unless something changes, the area will remain very expensive, pricing many buyers out of the market." Among the 39 U.S. counties analyzed in the report with a population of 1 million or more, the nine where it is more affordable to buy a home than rent were Tarrant County (Dallas), Texas; Broward County (Miami), Florida; Bexar County, (San Antonio) Texas; Wayne County (Detroit), Michigan; Philadelphia County, Pennsylvania; Hillsborough County (Tampa-St. Petersburg), Florida; Cuyahoga County (Cleveland), Ohio; Allegheny County (Pittsburgh), Pennsylvania; and Saint Louis County, Missouri. Least affordable rental markets in Northern California, DC, Brooklyn The report shows that renting a three-bedroom property requires an average of 38.8 percent of weekly wages across the 447 counties analyzed for the report. The least affordable markets for renting were Marin County, California (79.5 percent of average wages to rent); Spotsylvania County (Washington, D.C. area), Virginia (75.5 percent); Honolulu County, Hawaii (71.9 percent); Sonoma County (Santa Rosa area), California (67.6 percent); and Kings County, New York (67.4 percent). Most affordable rental markets in Alabama, Illinois, Ohio, Tennessee The most affordable markets for renting were Madison County (Huntsville), Alabama (22.3 percent of average wages to rent); Tazewell County (Peoria), Illinois (23.6 percent); Greene County (Dayton), Ohio (24.1 percent); Sullivan County (Kingsport-Bristol), Tennessee (24.2 percent); and Cuyahoga County (Cleveland), Ohio (24.8 percent). Rents rise faster than wages in 60 percent of markets Average fair market rents rose faster than average weekly wages in 266 of the 447 counties analyzed in the report (60 percent), including Los Angeles County, California; Cook County, Illinois; Harris County, Texas; Maricopa County, Arizona; and San Diego County, California. Average weekly wages rose faster than average fair market rents in 181 of the 447 counties analyzed in the report (40 percent), including King County (Seattle), Washington; Clark County (Las Vegas), Nevada; Bexar County (San Antonio), Texas; Middlesex County (Boston), Massachusetts; and Suffolk County (Long Island), New York. Home prices rising faster than rents in 59 percent of markets Median home prices rose faster than average fair market rents in 263 of the 447 counties analyzed in the report, including Los Angeles County, California; Cook County, Illinois; San Diego County, California; Orange County, California; and Miami-Dade County, Florida. Average fair market rents rose faster than median home prices in 184 of the 447 counties analyzed in the report (41 percent), including Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; Kings County (Brooklyn), New York; Queens County, New York; and Tarrant County, Texas in the Dallas metro area. Methodology For this report, ATTOM Data Solutions looked at 50th percentile average rental data for three-bedroom properties in 2018 from the U.S. Department of Housing and Urban Development, along with Q2 2017 average weekly wage data from the Bureau of Labor Statistics (most recent available) and Q4 2017 home price data from ATTOM Data Solutions publicly recorded sales deed data in 540 counties nationwide. Rental affordability is average fair market rent for a three-bedroom property as a percentage of the average monthly wage (based on average weekly wages). Home buying affordability is the monthly house payment for a median-priced home (based on a 3 percent down payment and including mortgage, property tax, homeowner's insurance and private mortgage insurance) as a percentage of the average monthly wage. 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 Identifies 25 Neighborhoods That "Have It All": Affordable Homes, Highly Rated Schools, an Easy Commute and Plenty of Inventory
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Redfin Ranks 2017's Most Competitive Neighborhoods for Homebuyers
Nineteen of the Top 25 Most Competitive Neighborhoods Were in the Seattle Area. The Rest Were in San Jose, Boston and Denver. SEATTLE--(Dec. 21, 2017) — The 2017 housing market was the most competitive for homebuyers since 2013, according to a new analysis from Redfin, the next-generation real estate brokerage. Just over half of all offers written by Redfin agents this year encountered competition. That's up from 49 percent in 2016, but below 2013's high of 65 percent. The pace at which homes went off the market made the competition more intense this year. Homes found buyers after a median 45 days on market, six days fewer than 2016. Home-Buying Competition 2014-2017 (Graphic: Business Wire) Forty-one percent of homes that were listed in 2017 were Redfin Hot Homes, a designation earned by homes with 7/10 or higher odds of going under contract within their first 14 days on the market, as determined by Redfin's proprietary algorithm. Grass Lawn in Redmond, Washington earned the distinction of most competitive neighborhood in 2017. Nineteen of the 25 most competitive neighborhoods of 2017 were in the Seattle metro area, where 67 percent of homes listed this year were Hot Homes--the highest share of any market--and 62 percent of offers written by Redfin agents faced bidding wars. Competition was strong across the Seattle market, both in more suburban neighborhoods like Grass Lawn and Crossroads (#3) and more urban neighborhoods like Lower Queen Anne (#13). Several neighborhoods in North Seattle made the ranking, including Pinehurst (#2), Victory Heights (#10) and Licton Springs (#11). In Grass Lawn, 73 percent of homes sold for over asking price and the typical home found a buyer in just six days. The average sale-to-list price ratio was 108.4 percent, an indication that many homes were bid up well-above asking price. "Grass Lawn is so super-competitive because it's very close to the Microsoft campus, and Google is also expanding its footprint in the area. It is a suburban area with mostly older homes," said Redfin Agent Gina Madeya. "The area offers easy access to one of only two freeways that can get you across Lake Washington and into downtown Seattle and it's also a short drive from the shops and restaurants in downtown Redmond and Kirkland." Madeya helped a family purchase a home in Grass Lawn earlier this year. The home, which she says came on the market slightly underpriced at $860,000, was bid up to over $1 million. Her clients were absolutely in love with the home. Their offer wasn't the highest, but they won over the sellers by waiving all contingencies, working with a reputable lender and providing a $100,000 earnest money deposit. "This sounds extreme, but that's what it takes in some neighborhoods because demand is so high for so few homes," says Madeya. "My advice to a Seattle buyer is to get really clear about your full financial capability and your risk tolerance. Find out what you can truly afford and start looking at homes well below that amount, so that when that bidding war inevitably happens, you have some leverage to work with. Get clear early in the search so you and your agent can be more deliberate and strategic." Bidding war strategies often come with risks for the buyer, and Redfin recommends homebuyers speak to an agent to determine the appropriate strategy. A complete methodology and additional insights on 2017 competition, including rankings of major metro areas according to bidding war and Hot Homes frequency, are available 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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Depleted Housing Market to See Inventory Growth in 2018
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Seriously Underwater U.S. Properties Decrease by 1.4 Million From a Year Ago in Q3 2017
Biggest Year-over-Year Drop in Number of Seriously Underwater Since Q2 2015; Share of Equity Rich Properties Increases to New High of 26 Percent IRVINE, Calif. — Nov. 16, 2017 — ATTOM Data Solutions, curator of the nation's largest multi-sourced property database, today released its Q3 2017 U.S. Home Equity & Underwater Report, which shows that at the end of the third quarter of 2017 there were 4.6 million (4,628,408) U.S. properties that were seriously underwater (where the combined loan amount secured by the property was at least 25 percent higher than the property's estimated market value), down by more than 800,000 properties from the previous quarter and down by more than 1.4 million properties from Q3 2016 — the biggest year-over-year drop since Q2 2015. The 4.6 million seriously underwater properties at the end of Q3 2017 represented 8.7 percent of all U.S. properties with a mortgage, down from 9.5 percent in the previous quarter and down from 10.8 percent in Q3 2016. "Accelerating home price appreciation this year is increasing the velocity at which seriously underwater homeowners are recovering home equity lost during the Great Recession," said Daren Blomquist, senior vice president at ATTOM Data Solutions. "Median home prices nationwide are up 9.4 percent so far in 2017, the fastest pace of appreciation through the first three quarters of a year since 2013. Continued home price appreciation is also helping to grow the number of equity rich homeowners across the country compared to a year ago." 26 percent of U.S. properties were equity rich in Q3 2017 There were more than 14 million (14,030,394) U.S. properties that were equity rich — where the combined loan amount secured by the property was 50 percent or less of the estimated market value of the property — down slightly from the previous quarter but still up by 905,000 compared to a year ago. The 14 million equity rich U.S. properties represented 26.4 percent of all U.S. properties with a mortgage, up from 24.6 percent in the previous quarter and up from 23.4 percent in Q3 2016. Highest share of equity rich properties in Hawaii, California, New York, Oregon, Washington States with the highest share of equity rich properties were Hawaii (41.9 percent); California (41.4 percent); New York (35.7 percent); Oregon (34.0 percent) and Washington (33.6 percent). Among 93 metropolitan statistical areas with a population of 500,000 or more, those with the highest share of equity rich properties were San Jose, California (61.0 percent); San Francisco, California (56.4 percent); Los Angeles, California (45.3 percent); Honolulu, Hawaii (43.9 percent); and Oxnard-Thousand Oaks-Ventura, California (38.7 percent). "The number of Seattle homeowners who are considered "seriously underwater" continues to drop and is now at an all-time low of 3%," said Matthew Gardner, chief economist at Windermere Real Estate, covering the Seattle market. "Thanks to the strong appreciation of home prices in our area, I expect to see this number drop even further as we move into 2018. At the same time, the percentage of "equity rich" homeowners in Seattle continues to rise, reporting a remarkable 103% increase since the end of 2013." Other metros where at least 35 percent of properties were equity rich at the end of Q3 2017 were Seattle, Washington (38.7 percent); San Diego, California (38.3 percent); Portland, Oregon (36.7 percent); Austin, Texas (35.8 percent); and Stockton, California (35.2 percent). Highest share of seriously underwater properties in Baton Rouge, Scranton, Youngstown States with the highest share of seriously underwater properties were Louisiana (19.2 percent); Iowa (14.2 percent); Pennsylvania (14.0 percent); Mississippi (13.8 percent); and Alabama (13.7 percent). Among 93 metropolitan statistical areas with a population of 500,000 or more, those with the highest share of seriously underwater properties were Baton Rouge, Louisiana (20.5 percent); Scranton, Pennsylvania (19.5 percent); Youngstown, Ohio (18.2 percent); New Orleans, Louisiana (17.4 percent); and Dayton, Ohio (16.4 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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CoreLogic Reports Mortgage Delinquency Rates Lowest in More Than a Decade
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[NAR Infographic] The Anatomy of a First-time Buyer in 2017
WASHINGTON, Nov. 14, 2017 -- Prospective first-time buyers in recent years have had to navigate several obstacles on their path to homeownership, including higher rents and home prices, tight inventory conditions and repaying student loan debt. These impediments are a big reason why first-timers were only 34 percent of all transactions in the National Association of Realtors®' 2017 Profile of Home Buyers and Sellers, which is far below the long-term historical average of 39 percent since the survey debuted in 1981. Amidst these ongoing supply and affordability challenges, here is the typical makeup of a successful first-time buyer: Age – 32 years old Household income – $75,000 Cost of home purchased – $190,000 Down payment amount – 5 percent Student loan debt – $29,000 Type and location of home purchased – Single-family home in a suburban area 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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First-time Buyers Stifled by Low Supply, Affordability: 2017 Buyer and Seller Survey
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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 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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Realtor.com and Yelp Name the Hottest Hipster Markets in America
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Redfin Names 15 Colleges Where Students Should Buy Real Estate Instead of Rent Dorms
In Addition to Saving Monthly, Students Who Buy Can Build Equity While Earning Their Degrees SEATTLE — At 47 public U.S. colleges, it's more cost effective for a student to buy a condo than rent a dorm room on campus, according to Redfin, the next-generation real estate brokerage. Dorm rooms in the U.S. range in cost from $232 to $1,817 per month, with a median monthly rate of $705. To find out where students could save on housing costs, Redfin compared the monthly dorm rate at 195 U.S. public colleges with the median monthly mortgage on a condo in each of those cities. The top 15 list was ordered by enrollment to show the most popular schools first. Coming in at number one on the list is The University of Arizona in Tucson, which Redfin real estate agent Misty Hurley says isn't surprising. "I've had lots of parents contact me after comparing the cost of renting versus buying a home for their college student," she said. "They're often coming from places like Washington D.C., Los Angeles or Seattle, where home prices are much higher. The median sale price in Tucson is $195,000, so well below the national median sale price of $293,000 that Redfin reported in August." Rounding out the top five list were Georgia State University, the University of South Carolina, Kent State University and Louisiana State University, all of which are in cities with median home prices below the national average. In addition to saving on monthly housing costs in these cities, there are other perks to purchasing real estate. "Homeownership can be a great way to build wealth," said Hurley. "Students will build equity that they can one day use as a downpayment on a move-up home or to pay off student loans. If they choose not to sell right away, they'll have a piece of property that's ripe for renting, as there are always new college students looking for rentals." Read the full report 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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Outlook Remains Bright for Commercial Real Estate Despite Price Plateau
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[Infographic] The Road to the Big Game: Where 52 Shows Up in Real Estate
WASHINGTON, Sept. 7, 2017 -- Football fans around the country will be gathering in front of a TV this week to catch their favorite team in action for the first time this season. To celebrate the start of the journey to the 52nd championship game in February, the National Association of Realtors® is throwing an accurate spiral of recent real estate facts with the number 52: 52 is the median age of repeat buyers 52 percent of renters think it's a good time to buy a home 52 percent of foreign buyers purchased a home in the suburbs 52 percent of buyers said most difficult step was finding the right property 52 percent of millennials found their real estate agent through a referral The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing more than 1.2 million members involved in all aspects of the residential and commercial real estate industries.
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Redfin Predicts the Hottest Neighborhoods to Close Out 2017
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Redfin Migration Report: Home Affordability Continued to Shape Migration Currents as Homebuyers Looked to Leave Expensive Coastal Cities in the Second Quarter
The Bay Area, New York and Los Angeles ranked highest for net outflow of home searchers SEATTLE — Twenty-one percent of Redfin.com users in the second quarter of 2017 searched mostly for homes outside the metro where they reside, slightly up from 20 percent in the first quarter, according to the latest migration report from Redfin, the next-generation real estate brokerage. The Redfin Migration Report analyzed a sample of more than one million Redfin.com users searching for homes across 75 metro areas during the peak of the homebuying season from April through June. Redfin used IP addresses to identify the metros where home searchers likely reside and compared that to where users were searching for homes. While 79 percent of Redfin.com home searchers looked to stay in their current metro, several key trends emerged among those looking to move to another metro: There continued to be significant migration within the state of California, with the most common search patterns being buyers looked to leave the Bay Area and Los Angeles, heading to Sacramento and San Diego. Several Rust Belt metros saw more than a quarter of local homebuyers looking at homes outside their metro with Chicago being the top destination. Metros in the South and the Sunbelt remained popular destinations for migrants from expensive coastal cities. Chicago, Boston and Seattle again had the highest share of residents looking to stay in their current metros. "Home searches are early indicators of home sales. The migration patterns in our report closely correlate to actual purchases made by Redfin home-buying customers within and across metros," said Taylor Marr, a Redfin data scientist who conducted the underlying research. "Buyers who can't afford a home in their current city are exploring what is available elsewhere," said Marr. "We are already seeing strong buyer demand and competition in mid-tier cities like Sacramento, Phoenix and Atlanta. As home searches evolve into purchase offers and home sales, we anticipate prices and competition will continue to grow in those markets."     To read the full report, complete with an interactive data map of metro-to-metro migration trends and full methodology, 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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Realtor.com® Survey Provides Insight into Underlying Causes of Inventory Shortage
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Pending Home Sales Recover in June, Grow 1.5 Percent
WASHINGTON (July 31, 2017) — After declining for three straight months, pending home sales reversed course in June as all major regions, except for the Midwest, saw an increase in contract activity, according to the National Association of Realtors®. The Pending Home Sales Index, a forward-looking indicator based on contract signings, climbed 1.5 percent to 110.2 in June from an upwardly revised 108.6 in May. At 0.5 percent, the index last month increased annually for the first time since March. Lawrence Yun, NAR chief economist, says the bounce back in pending sales in most of the country in June is a welcoming sign. "The first half of 2017 ended with a nearly identical number of contract signings as one year ago, even as the economy added 2.2 million net new jobs," he said. "Market conditions in many areas continue to be fast paced, with few properties to choose from, which is forcing buyers to act almost immediately on an available home that fits their criteria." Added Yun, "Low supply is an ongoing issue holding back activity. Housing inventory declined last month and is a staggering 7.1 percent lower than a year ago." Yun does note that there could potentially be a sliver of increased hope in the months ahead for prospective first-time buyers, who continue to struggle reaching the market1. Sales to investors last month were the lowest of the year (13 percent), which helped push all cash transactions to 18 percent – the smallest share since June 2009 (13 percent). "It appears the ongoing run-up in price growth in many areas and less homes for sale at bargain prices are forcing some investors to step away from the market," said Yun. "Fewer investors paying in cash is good news as it could mean a little less competition for the homes first-time buyers can afford. However, the home search will still likely be a strenuous undertaking in coming months because supply shortages in most areas are most severe at the lower end of the market." Heading into the second half of the year, Yun expects existing-home sales to finish around 5.56 million, which is an increase of 2.6 percent from 2016 (5.45 million). The national median existing-home price this year is expected to increase around 5 percent. In 2016, existing sales increased 3.8 percent and prices rose 5.1 percent. The PHSI in the Northeast inched forward 0.7 percent to 98.0 in June, and is now 2.9 percent above a year ago. In the Midwest the index decreased 0.5 percent to 104.0 in June, and is now 3.4 percent lower than June 2016. Pending home sales in the South rose 2.1 percent to an index of 126.0 in June and are now 2.6 percent above last June. The index in the West grew 2.9 percent in June to 101.5, but is still 1.1 percent below a year ago. 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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Realtor.com® Names the Top 10 Affordable Towns with the Best Elementary Schools
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Realtor.com® Appoints Danielle Hale as Chief Economist
SANTA CLARA, Calif., July 25, 2017 -- Realtor.com®, a leading online real estate destination operated by News Corp subsidiary Move, Inc., today announced the appointment of veteran housing economist Danielle Hale as its chief economist. "We are incredibly proud to welcome Danielle to the realtor.com® family," said Nate Johnson, chief marketing officer for realtor.com®. "Danielle's in-depth housing market knowledge and research experience will help us hone and grow our research capabilities so we can leverage realtor.com®'s vast housing database to provide even more insights to homebuyers, sellers and dreamers, and professionals." As chief economist, Hale is responsible for developing and translating real estate trend data into consumer and industry insights. She also is tasked with leading a team of the industry's best analysts and economists with the goal of providing deeper and broader housing insights to people throughout the home journey. "Realtor.com®'s economics and research operation has emerged as a leading resource for valuable, actionable, and reliable housing market information," said Hale. "I look forward to working with the tremendously talented team to provide consumers and industry professionals with the tools and expertise they need to navigate the real estate world during this period of unprecedented competition and demand." Hale joins realtor.com® after nearly a decade as an economist and policy researcher at the National Association of REALTORS®. As managing director of housing research, Hale oversaw the production of closely followed housing market data, including NAR's monthly pending and existing home sales indices and quarterly home price reports. Hale previously served as manager of tax policy research, leading research projects on topics including how federal, state and local policies impact the real estate market. "Danielle possesses a rare talent for applying rigorous statistical analysis in all her work along with the ability to communicate the results to everyday people," said Lawrence Yun, chief economist for the National Association of REALTORS®. "She will be a valuable asset to realtor.com® and for consumers." Before joining the National Association of REALTORS® as an economist in 2008, Hale spent three years at the American Enterprise Institute, where she produced research and managed its executive office's communications. Her work during that time included research contributions to Dr. Allan Meltzer's A History of the Federal Reserve, Volume II (University of Chicago Press, 2010). Hale earned a bachelor's degree in International Affairs and Economics and a master's degree in Applied Economics from Florida State University. To read a Home Made post featuring a Q&A with Danielle Hale, click here. About realtor.com® Realtor.com® is the trusted resource for home buyers, sellers and dreamers, offering the most comprehensive source of for-sale properties, among competing national sites, and 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 helps make 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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Foreign U.S. Home Sales Dollar Volume Surges 49 Percent to Record $153 Billion
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84 Percent of Americans See Homeownership as Good Investment, Affordability a Growing Concern
WASHINGTON (July 12, 2017) — According to the National Association of Realtors®' 2017 National Housing Pulse Survey, concerns over housing affordability show clear demographic divides especially among unmarried and non-white Americans. More than five out of 10 unmarried and non-white Americans view the lack of available affordable housing as a big problem, compared to only 40 percent of married and white Americans. The survey, measures consumers' attitudes and concerns about housing issues in the nation's 25 largest metropolitan statistical areas and found that 84 percent of Americans now believe that purchasing a home is a good financial decision - the highest number since 2007. Yet six in 10 said that they are concerned about affordability and the rising cost of buying a home or renting in their area. Housing affordability was ranked fourth in the top-five issues Americans face in their area behind the lack of affordable health care; low wages and debt making it hard to save; and heroin and opioid drug abuse, and ahead of job layoffs and employment. Nationally, 44 percent of respondents categorized the lack of available affordable housing as a very big or fairly big problem. In the top 25 densest markets, more than half see the lack of affordable housing as a big problem, an increase of 11 percentage points from the 2015 National Housing Pulse Survey. Low-income Americans, renters and young women most acutely feel the housing pinch. There is also greater concern about affordable housing among the working class (65 percent) than for public servants such as teachers, firefighters or police (55 percent). "Despite the growing concern over affordable housing, this survey makes it clear that a strong majority still believe in homeownership and aspire to own a home of their own. Building equity, wanting a stable and safe environment, and having the freedom to choose their neighborhood remain the top reasons to own a home," says NAR president William E. Brown, a second-generation Realtor® from Alamo, California and founder of Investment Properties. Eight out of 10 believe that the most important financial reason to own a home is that the money spent on housing goes towards building equity rather than to a property owner. Paying off a mortgage and owning a home by the time you retire is the next most important financial reason for buying a home followed by ownership being a good investment opportunity to build long-term wealth and increase net worth. When asked about the amount of down payment needed for a mortgage, four in 10 respondents believe that a down payment of 15 percent or more is necessary. Seventy percent feel that a reasonable down payment should be 10 percent or less, according to the survey. Misperceptions about higher down payment requirements were most prevalent in bigger cities and by older adults. Apparent confusion about down payment requirements most likely added to non-owners concerns about affordability. NAR's Profile of Home Buyers and Sellers found that the median down payment for first-time buyers has been 6 percent for three straight years and 14 percent for repeat buyers in three of the past four years. Over 50 percent of respondents strongly agree that homeownership helps build safe and secure neighborhoods and provides a stable and safe environment for children and family members. The survey also found that four in 10 Americans say paying their rent or mortgage is a strain on their budget. Those most likely to say their mortgage is a strain have incomes under $60,000, are residents of New York City or the Pacific coast, are under the age of 50 and non-white. Just over half, 51 percent, of respondents said they were willing to strain their budget for a better living environment and would pick a neighborhood with better schools and job opportunities even if housing prices are a bigger strain on their budget. Those most willing to strain their budget are disproportionately married, upper income and living in the suburbs. Overspending on homes is more prevalent in Northeastern cities (36 percent), the Mountain West (34 percent) and the Pacific coast (33 percent). The 2017 National Housing Pulse Survey is conducted by American Strategies and Myers Research & Strategic Services for NAR's Housing Opportunity Program, which aims to position, educate and help Realtors® promote housing opportunities in their community, in both the rental and homeownership sectors of the market. The telephone survey polled 1,500 adults nationwide and has a margin of error of plus or minus 2.5 percentage points. 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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Survey: 1 in 3 Recent Homebuyers Made an Offer Sight-Unseen, Up From Nearly 1 in 5 a Year Ago
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NAR Midyear Forecast: Existing-Home Sales Poised to Climb 3.5 Percent in 2017
  WASHINGTON (May 18, 2017) – The multi-year stretch of robust job gains along with improving household confidence are expected to guide existing-home sales to a decade high in 2017, but supply and affordability headwinds and modest economic growth are holding back sales and threatening to keep the nation's low homeownership rate subdued. That's according to speakers at a residential real estate forum here at the 2017 REALTORS® Legislative Meetings & Trade Expo. Lawrence Yun, chief economist of the National Association of Realtors®, presented his 2017 midyear forecast and was joined onstage by Jonathan Spader, senior research associate at the Joint Center for Housing Studies at Harvard University, and Mark Calabria, chief economist and assistant to Vice President Mike Pence. Spader's presentation addressed past and projected movements in the homeownership rate, and Calabria dove into why reversing weak productivity and the low labor force participation rate are necessary to boost the economy. The first quarter was the best quarterly existing sales pace in exactly a decade (5.62 million), and Yun expects activity to stay on track and finish around 5.64 million – the best since 2006 (6.47 million) and 3.5 percent above 2016. With several metro areas seeing hefty price growth, the national median existing-home price is expected to rise around 5 percent this year. "The housing market has exceeded expectations ever since the election, despite depressed inventory and higher mortgage rates," said Yun. "The combination of the stock market being at record highs, 16 million new jobs created since 2010, pent-up household formation and rising consumer confidence are giving more households the assurance and ability to purchase a home." Although sales are currently running at a decade high, Yun believes the healthy labor market should be generating even more activity. However, listings in the lower- and mid-market price range are scant and selling fast, and homebuyers are discovering they can afford less of what's on the market based on their income. "We have been under the 50-year average of single-family housing starts for 10 years now," said Yun. "Limited lots, labor shortages, tight construction lending and higher lumber costs are impeding the building industry's ability to produce more single-family homes. There's little doubt first-time buyer participation would improve and the homeownership rate would rise if there was simply more inventory." Housing construction has been uneven so far this year, but Yun does anticipate starts to jump 8.4 percent to 1.27 million. However, this is still under the 1.5 million new homes needed to make up for the insufficient building in recent years. New single-family home sales are likely to total 620,000 this year, up 8.4 percent from 2016. Addressing the nation's low homeownership rate, Spader said substantial uncertainty exists about its future direction. He cited foreclosure-related housing exits from older adults and delayed buying from younger households as the primary causes in the downward trend since the downturn. He said the good news is that while there was growth in homeowner households in 2016, an aging population, changes in family type and increasing diversity by race and ethnicity all pose as headwinds going forward. Spader's 2025 projection puts the homeownership rate in a range of 61.0 – to – 65.1 percent. "Stagnant household incomes, rising rental costs, student loan debt and limited supply have all contributed to slower purchasing activity," said Spader. "When the homeownership rate stabilizes, there will be an increase in homeowner households. Young and minority households' ability to reach the market will play a big role in how much the actual rate can rise in coming years." Calabria's presentation focused on his thoughts of what can be done to jump-start economic growth. He attributed prolonged weak productivity and the low labor participation rate as the primary reasons why the current economic expansion is the slowest since World War II. "A strong labor market will drive a strong housing market, but you can't have a strong housing market without a strong economic foundation," said Calabria. "The recovery has been uneven with roughly 70 counties making up roughly half of all job growth. The White House's proposed plans to cut corporate and individual tax cuts will help large and small businesses grow, hire and ultimately contribute to more households buying homes as more money goes into their pockets." Although Yun said economic growth in the first quarter was "a huge disappointment" at 0.7 percent (first estimate), he anticipates that an increase in consumer spending and more homebuilding should provide enough fuel for gross domestic product to finish slightly higher, at 2.2 percent, than a year ago (1.6 percent). Yun believes the rising interest rate environment is here to stay as the Federal Reserve slowly begins unwinding its balance sheet. He foresees two more short-term rate hikes by the end of this year and for mortgage rates to average around 4.30 percent before gradually climbing towards 5.0 percent by the end of 2018. "There was a lot of uncertainty at the start of the year, but a very strong first quarter sets the stage for a modest sales increase compared to last year," said Yun. "However, prices are still rising too fast in many areas and are outpacing incomes. That is why housing starts need to rise to alleviate supply shortages. There will be more sales if there's a meaningful bump in new and existing inventory." Members of the media are invited to attend the upcoming Sustainable Homeownership Conference on June 9 at University of California's Memorial Stadium in Berkeley. In celebration of Homeownership Month, the conference brings together experts to examine housing trends and real estate's positive impacts. 2017 NAR President Bill Brown, NAR Chief Economist Dr. Lawrence Yun and Berkeley Hass Real Estate Group Chair Ken Rosen are among the prominent experts scheduled to speak. To register, click here. 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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HUD and Census Bureau Announce New Residential Sales in January 2017
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NAR, Realtor.com® Identify Growing Rift Between Housing Availability and Affordability
  WASHINGTON (February 16, 2017) — Existing-home sales are forecast to expand 1.7 percent in 2017, but a new housing affordability model created jointly by the National Association of Realtors® and realtor.com®, a leading online real estate destination, operated by operated by News Corp subsidiary Move, Inc., suggests homebuyers at many income levels could see an inadequate amount of listings on the market within their price range in coming months. Using data on mortgages, state-level income and listings on realtor.com®, the Realtors® Affordability Distribution Curve and Score is NAR and realtor.com®'s new ongoing monthly research designed to examine affordability conditions at different income percentiles for all active inventory on the market. The Affordability Distribution Curve examines how many listings are affordable to those in a particular income percentile. The Affordability Score — varying between zero and two — is a calculation that is equal to twice the area below the Affordability Distribution Curve on a graph. A score of one or higher generally suggests a market where homes for sale are more affordable to households in proportion to their income distribution. Lawrence Yun, NAR chief economist, says a top complaint Realtors® have been hearing from clients is a notable imbalance between what they can afford and what is listed for sale. "Home prices have ascended far past wage growth in much of the country in recent years because not enough homeowners are selling and homebuilders have not boosted production enough to meet rising demand," he said. "NAR and realtor.com®'s new affordability measure confirms that buyers aren't exaggerating about the imbalance. Amidst higher home prices and now mortgage rates, households with lower incomes have been able to afford less of all homes on the market last year and so far in 2017." Reflecting a growing shortage of accessible inventory for most income groups, the entire Affordability Distribution Curve in January was below the equality line and the gap was generally wider at lower incomes, which indicates even tighter supply conditions. A household in the 35th percentile could afford 28 percent of all listings, a median income household (50th percentile) could afford 46 percent of listings and a household in the 75thpercentile was able to afford 74 percent of active listings. "Consistently strong job gains and a growing share of millennials entering their prime buying years is laying the foundation for robust buyer demand in 2017," said Jonathan Smoke, chief economist at realtor.com®, a leading online real estate destination. "However, buyers with a lower maximum affordable price are seeing heavy competition for the fewer listings they can afford. At a time of higher borrowing costs, this situation could affect affordability even more as buyers battle for a smaller pool of homes and bid prices upward." Calculating last month's Affordability Score — two times the area under the Affordability Distribution Curve — further highlights the disjointed rate of accessible supply on the market across the U.S. Swift price growth and higher mortgage rates caused January's Affordability Score (0.92) to shrink nationally from a year ago (0.97) and also in many states. Only 19 states had a score above one (conditions that are more favorable) and a meager three — North Dakota, Alaska and Wyoming — saw year-over-year gains in their score. "Heading into the beginning of the spring buying season, available supply is more reachable for aspiring buyers in the upper end of the market and specifically in nearly all Midwestern states," said Smoke. "Meanwhile, many states in the West and South have seen deteriorating supply levels over the past year. Buyers in these areas should know that it may take longer to find the right home at a price they can afford." The states last month with the highest Affordability Score were Indiana (1.23), Ohio (1.22), Iowa (1.18), Kansas (1.17), and Michigan and Missouri (both at 1.14). The states with the lowest Affordability Score were Hawaii (0.52), California (0.60), District of Columbia (0.65), and Montana and Oregon (both at 0.67). "This shortfall of inventory at a time of healthy job gains in most states is one of the biggest reasons for the depressed share of first-time buyers and the inability for the homeownership rate to rise above its near-record low," added Yun. "The only prescription to reversing this adverse situation is to build more entry-level and mid-market housing that aligns with current household incomes." The new Realtors® Affordability Distribution Curve and Score was created to be a valuable resource for Realtors® and consumers to assess the affordability of markets in different income groups. The research may eventually include metro-level data and will be updated on an ongoing basis at https://www.nar.realtor/topics/realtors-affordability-distribution-curve-and-score. 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. Realtor.com® is the trusted resource for home buyers, sellers and dreamers, offering the most comprehensive source of for-sale properties, among competing national sites, and 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 helps make 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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U.S. Home Affordability Drops to 8-Year Low in Q4 2016
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Redfin Names the Most Competitive Neighborhoods for Homebuyers in 2016
SEATTLE — Dec. 29, 2016 — Factoria, a neighborhood in Bellevue, Washington just outside of Seattle, was the nation's most competitive neighborhood for homebuyers in 2016, according to Redfin, the next-generation real estate brokerage. In Factoria this year, the typical home went under contract in seven days and sold for 5 percent above the asking price. Home prices there grew 26 percent this year. Redfin examined neighborhoods in 27 metro areas to rank the 30 most competitive neighborhoods for homebuyers in 2016. In addition to median days on market, the average sale-to-list price ratio and home price growth, Redfin ranked the neighborhoods' competitiveness based on the percentages of homes that sold for all cash and that sold for more than their asking price. The nation's 30 most competitive neighborhoods for homebuyers in 2016 spanned just six metropolitan areas. Seattle was home to 10 of the country's 30 most competitive neighborhoods.Eight Boston-area neighborhoods ranked, led by Washington Square (Brookline) and Prospect Hill (Somerville). Denver had seven hoods in the top 30, including Lakeside and West Pleasant View (Golden). Three San Francisco neighborhoods made the list. Washington, D.C. and Los Angeles also cracked the top 30, each with one neighborhood named. To read the full report including the top 30 ranking with relevant additional data and insights, please click here. About Redfin CorporationRedfin (www.redfin.com) 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 highly accurate automated home-value estimate. 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 $31 billion in home sales and saved customers more than $335 million in fees through 2015.
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Redfin Predicts 2017 will be the Fastest Housing Market on Record
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CoreLogic Reports 30,000 Completed Foreclosures in October 2016
  December 13, 2016, Irvine, Calif. – CoreLogic®, a leading global property information, analytics and data-enabled solutions provider, today released its  October 2016 National Foreclosure Report which shows the foreclosure inventory declined by 31.5 percent and completed foreclosures declined by 24.9 percent compared with October 2015. The number of completed foreclosures nationwide decreased year over year from 40,000 in October 2015 to 30,000 in October 2016, representing a decrease of 74.7 percent from the peak of 118,287 in September 2010. The foreclosure inventory represents the number of homes at some stage of the foreclosure process and completed foreclosures reflect the total number of homes lost to foreclosure. Since the financial crisis began in September 2008, there have been approximately 6.5 million completed foreclosures nationally, and since homeownership rates peaked in the second quarter of 2004, there have been approximately 8.5 million homes lost to foreclosure. As of October 2016, the national foreclosure inventory included approximately 328,000, or 0.8 percent, of all homes with a mortgage, compared with 479,000 homes, or 1.2 percent, in October 2015. CoreLogic also reports that the number of mortgages in serious delinquency (defined as 90 days or more past due including loans in foreclosure or REO) declined by 24.8 percent from October 2015 to October 2016, with 1 million mortgages, or 2.5 percent, in serious delinquency, the lowest level since August 2007. The decline was geographically broad with decreases in serious delinquency in 47 states and the District of Columbia. "Loan performance varies by the health of the local economy and housing market. Alaska, North Dakota and Wyoming, three states with energy-related job loss, experienced a rise in serious delinquency rates while all other states had a decline," said Dr. Frank Nothaft, chief economist for CoreLogic. "Although there were large declines in foreclosure rates in New York and New Jersey, both states experienced the highest serious delinquency rates in the nation, reflecting lagging home values in most neighborhoods and an unemployment rate above the national average." "Housing and labor markets improved over the past year, setting the stage for further declines in foreclosure rates across much of the nation," said Anand Nallathambi, president and CEO of CoreLogic. "Home values posted an annual gain of 5.8 percent through September in the CoreLogic Home Price Index, and payroll employment rose 2.4 million for the year through October." Additional October 2016 highlights: On a month-over-month basis, completed foreclosures declined by 27.5 percent to 30,000 in October 2016 from the 41,000 reported for September 2016.* As a basis of comparison, before the decline in the housing market in 2007, completed foreclosures averaged 22,000 per month nationwide between 2000 and 2006. On a month-over-month basis, the October 2016 foreclosure inventory was down 3.6 percent compared with September 2016. The five states with the highest number of completed foreclosures in the 12 months ending in October 2016 were Florida (51,000), Michigan (29,000), Texas (26,000), Ohio (23,000) and Georgia (20,000). These five states accounted for 36 percent of completed foreclosures nationally. Four states and the District of Columbia had the lowest number of completed foreclosures in the 12 months ending in October 2016: the District of Columbia (212), North Dakota (278), West Virginia (407), Alaska (622), and Montana (660). Four states and the District of Columbia had the highest foreclosure inventory rate in October 2016: New Jersey (2.8 percent), New York (2.7 percent), Maine (1.7 percent), Hawaii (1.7 percent) and the District of Columbia (1.6 percent). The five states with the lowest foreclosure inventory rate in October 2016 were Colorado (0.3 percent), Minnesota (0.3 percent), Arizona (0.3 percent), Utah (0.3 percent) and Michigan (0.3 percent). *September 2016 data was revised. Revisions are standard, and to ensure accuracy CoreLogic incorporates newly released data to provide updated results. For ongoing housing trends and data, visit the CoreLogic Insights Blog. Methodology The data in this report represents foreclosure activity reported through October 2016. This report separates state data into judicial versus non-judicial foreclosure state categories. In judicial foreclosure states, lenders must provide evidence to the courts of delinquency in order to move a borrower into foreclosure. In non-judicial foreclosure states, lenders can issue notices of default directly to the borrower without court intervention. This is an important distinction since judicial states, as a rule, have longer foreclosure timelines, thus affecting foreclosure statistics. A completed foreclosure occurs when a property is auctioned and results in the purchase of the home at auction by either a third party, such as an investor, or by the lender. If the home is purchased by the lender, it is moved into the lender's real estate-owned (REO) inventory. In "foreclosure by advertisement" states, a redemption period begins after the auction and runs for a statutory period, e.g., six months. During that period, the borrower may regain the foreclosed home by paying all amounts due as calculated under the statute. For purposes of this Foreclosure Report, because so few homes are actually redeemed following an auction, it is assumed that the foreclosure process ends in "foreclosure by advertisement" states at the completion of the auction. The foreclosure inventory represents the number and share of mortgaged homes that have been placed into the process of foreclosure by the mortgage servicer. Mortgage servicers start the foreclosure process when the mortgage reaches a specific level of serious delinquency as dictated by the investor for the mortgage loan. Once a foreclosure is "started," and absent the borrower paying all amounts necessary to halt the foreclosure, the home remains in foreclosure until the completed foreclosure results in the sale to a third party at auction or the home enters the lender's REO inventory. The data in this report accounts for only first liens against a property and does not include secondary liens. The foreclosure inventory is measured only against homes that have an outstanding mortgage. Generally, homes with no mortgage liens are not subject to foreclosure and are, therefore, excluded from the analysis. Approximately one-third of homes nationally are owned outright and do not have a mortgage. CoreLogic has approximately 85 percent coverage of U.S. foreclosure data. About CoreLogic CoreLogic (NYSE: CLGX) is a leading global property information, analytics and data-enabled solutions provider. The company's combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.
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Realtor.com Forecasts Post-Election Economy to Result in Higher Mortgage Rates While Housing Delivers Slower Gains in 2017
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Equity Rich U.S. Homeowners Increase by 2.6 Million in Q3 2016 as Average Homeownership Tenure Reaches a New High
IRVINE, CA--(November 17, 2016) - ATTOM Data Solutions, curator of the nation's largest fused property database, today released its Q3 2016 U.S. Home Equity and Underwater Report, which shows that 13,125,367 U.S. homeowners were equity rich (loan-to-value ratio of 50 percent or lower) as of the end of Q3 2016, representing 23.4 percent of all U.S. homeowners with a mortgage and an increase of more than 2.6 million from a year ago. The report also shows that 6,063,326 U.S. homeowners were seriously underwater (LTV of 125 or higher) as of the end of Q3 2016, representing 10.8 percent of all U.S. homeowners with a mortgage, and a decrease of more than 854,000 homeowners from a year ago. Since the peak in seriously underwater homeowners at 12.8 million representing 28.6 percent of all homeowners with a mortgage in Q2 2012, the number of seriously underwater homeowners has decreased by more than 6.7 million. "Close to one in every five U.S. homeowners with a mortgage is now equity rich thanks to a combination of rising home prices and lengthening homeownership tenures," said Daren Blomquist, senior vice president at ATTOM Data Solutions, the new parent company of RealtyTrac. "Median home prices increased on a year-over-year basis for the 18th consecutive quarter in Q3 2016, and homeowners who sold in the third quarter had owned their home an average of 7.94 years - a new high in our data and substantially higher than the average homeownership tenure of 4.26 years pre-recession. As homeowners stay in their homes longer before moving up, they are amassing more home equity wealth." Historical Seriously Underwater & Equity Rich Trends San Jose, San Francisco, Honolulu with highest share of equity rich homeowners Among 88 metropolitan statistical areas with a population of at least 500,000 or more, those with the highest share of equity rich homeowners were San Jose (55.7 percent); San Francisco (49.8 percent); Honolulu (39.3 percent); Los Angeles (38.2 percent); and Pittsburgh (34.5 percent). Other metro areas in the top 10 for highest share of equity rich homeowners were Portland (33.1 percent), San Diego (33.0 percent); Oxnard-Thousand Oaks-Ventura, California (32.7 percent); Seattle (31.5 percent); and Austin, Texas (31.0 percent). There were seven metro areas where the share of equity rich homeowners increased by more than 10 percentage points from a year ago in Q3 2016: San Francisco (up 11.9 percentage points); San Jose (up 11.9 percentage points); Cape Coral-Fort Myers, Florida (up 11.5 percentage points); Portland, Oregon (up 11.2 percentage points); Denver (up 11.2 percentage points); Austin, Texas (up 10.8 percentage points); and Seattle (up 10.8 percentage points). "The percentage of equity rich households in the Seattle area took off at the end of last year and has been rising at an impressive rate ever since then, especially when compared to the country as a whole - which has seen a far more modest increase than we have locally," said Matthew Gardner, chief economist at Windermere Real Estate, covering the Seattle market. "This growth in home equity wealth will likely lead to an increase in cash-out refinancing in our market, but more importantly, it will serve to protect Seattle homeowners from any unforeseeable shocks that might arise in the future." More than 20 percent of homeowners underwater in Las Vegas, Cleveland, Detroit The share of seriously underwater homeowners was 20 percent or higher in seven of the 88 metro areas analyzed in the report: Las Vegas (25.0 percent); Akron, Ohio (24.2 percent); Cleveland, Ohio (22.8 percent); Toledo, Ohio (21.7 percent); Dayton, Ohio (20.2 percent); Detroit (20.0 percent); and Lakeland-Winter Haven, Florida (20.0 percent). Other markets in the top 10 for highest share of seriously underwater homeowners were Chicago (19.5 percent); Kansas City (18.4 percent); and Memphis (18.3 percent). Counter to the national trend, the share of seriously underwater homeowners increased from a year ago in 21 of the 88 metro areas analyzed, including Akron, Ohio; McAllen-Edinburg-Mission, Texas; Baton Rouge, Louisiana; Scranton-Wilkes-Barre-Hazleton, Pennsylvania; and Little Rock, Arkansas. 17 ZIP codes with two-thirds of homeowners underwater Among 6,911 U.S. ZIP codes analyzed in report, 17 posted seriously underwater rates of 66 percent or higher, including ZIP codes in the following metro areas: Chicago, St. Louis, Detroit, Columbus, Ohio; East Stroudsburg, Pennsylvania; Trenton, New Jersey; Cleveland, and Milwaukee. Top 17 ZIP Seriously Underwater ZIP Codes Report methodology The ATTOM Data Solutions U.S. Home Equity & Underwater report provides counts of properties based on categories of equity -- or loan to value (LTV) -- at the state, metro, county and zip code level, along with the percentage of total residential properties with a mortgage that each equity category represents. The equity/LTV calculation is derived from a combination of record-level open loan data and record-level estimated property value data, and is also matched against record-level foreclosure data to determine foreclosure status for each equity/LTV category. Definitions Seriously underwater: Loan to value ratio of 125 percent or above, meaning the homeowner owed at least 25 percent more than the estimated market value of the property. Equity rich: Loan to value ratio of 50 percent or lower, meaning the homeowner had at least 50 percent equity. 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. ATTOM Data Solutions also powers consumer websites designed to promote real estate transparency: RealtyTrac.com is a property search and research portal for foreclosures and other off-market properties; Homefacts.com is a neighborhood research portal providing hyperlocal risks and amenities information; HomeDisclosure.com produces detailed property pre-diligence reports. ATTOM Data and its associated brands are cited by thousands of media outlets each month, including frequent mentions on CBS Evening News, The Today Show, CNBC, CNN, FOX News, PBS NewsHour and in The New York Times, Wall Street Journal, Washington Post, and USA TODAY.
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89% of U.S. Investors Interested in Putting Their Money into Real Estate
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CoreLogic Analysis Shows Between $4 Billion and $6 Billion in Insured Property Loss from Hurricane Matthew
  October 08, 2016, Irvine, Calif. – CoreLogic®, a leading global property information, analytics and data-enabled solutions provider, has conducted an analysis showing that insured property losses for both residential and commercial properties from Hurricane Matthew are estimated to be between $4 billion and $6 billion from wind and storm surge damage. This does not include insured losses related to additional flooding, business interruption or contents. Of this $4-6 billion, 90 percent of the insurance claims are expected to be related to wind and 10 percent is expected to be related to storm surge. Figure 1 shows the insured property loss estimates for Hurricane Matthew compared with previous storms, including Hurricanes Katrina, Sandy, Floyd and David. As the data indicates, the insured loss estimate from Hurricane Matthew is well above Hurricanes Floyd and David, but well below Hurricanes Katrina and Sandy. Figure 1: Insured Property Loss Estimates for Hurricanes Matthew, Sandy, Katrina, David and Floyd In addition, CoreLogic estimates about 1.5 million residential and commercial properties are expected to be impacted from wind and storm surge from Hurricane Matthew. The fact that structures in the region are comprised primarily of masonry, wood and veneers, coupled with the stringent Florida building codes, helps reduce total insured property losses compared with other memorable storms. Figure 2 shows the estimated insured property loss estimates by county in Florida, Georgia and South Carolina. Figure 2: Hurricane Matthew Loss Contribution by County in Florida, Georgia and South Carolina For more information on CoreLogic storm surge methodology, data and analysis, download a copy of the more in-depth 2016 CoreLogic Storm Surge report at http://www.corelogic.com/landing-pages/2016-corelogic-storm-surge-risk-report.aspx. Methodology The CoreLogic North Atlantic Hurricane Model was used to create wind and storm surge damage footprints for Hurricane Matthew using the track forecast data from the October 6, 5:00 pm EDT advisory issued by the National Hurricane Center. The insured loss data was analyzed in the North Atlantic Hurricane Model to ascertain the expected loss range from the Hurricane Matthew event footprint in the model. The model provides a granular, up-to-date, detailed risk assessment for the combined perils of hurricane winds and coastal storm surge flooding. The model has been certified by the Florida Commission Hurricane Loss Projection Methodology (FCHLPM) since the inception of the process in 1997. 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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Homes in Democratic Districts Have Gained Twice as Much Value as Those in Republican Districts Over Last 8 Years
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NAR Identifies Top 10 Markets in Dire Need of More Single-family Housing Starts
  WASHINGTON (September 19, 2016) – Single-family home construction is currently lacking in 80 percent of measured metro areas despite steady job creation and the low activity is creating a housing shortage crisis that is curtailing affordability and threatening to hold back prospective buyers in many of the largest cities in the country, according to new research from the National Association of Realtors®. NAR's study reviewed new home construction relative to job gains over a three-year period (2013-2015) in 171 metropolitan statistical areas (MSAs) throughout the U.S. to determine the markets with the greatest shortage of single-family housing starts. The findings reveal that single-family construction is startlingly underperforming in most of the U.S., with markets in the West making up half of the top ten areas with the largest deficit of newly built homes. Lawrence Yun, NAR chief economist, says a large swath of the country continues to be plagued by inventory shortages exasperated by critically low homebuilding activity. "Inadequate single-family home construction since the Great Recession has had a detrimental impact on the housing market by accelerating price growth and making it very difficult for prospective buyers to find an affordable home – especially young adults," he said. "Without the expected pick-up in building as job gains rose in recent years, new and existing inventory has shrunk, prices have shot up and affordability has eroded despite mortgage rates at or near historic lows." NAR analyzed employment growth in relation to single-family housing starts in the three-year period from 2012 through 2015. Historically, the average ratio for the annual change in total jobs to permits is 1.6 for single-family homes. The research found that 80 percent of measured markets had a ratio above 1.6, which indicates inadequate new construction in most of the country. The average ratio for areas examined was 3.4. Using each metro area's jobs-to-permits ratio, NAR then calculated the amount of permits needed in each metro area to balance the ratio back to its historical average of 1.6. The higher the number of permits required, the more severe the shortage was in each market. The top 10 metro areas with the biggest need for more single-family housing starts to get back to the historical average ratio are: New York (218,541 permits required) Dallas (132,482 permits required) San Francisco (127,412 permits required) Miami (118,937 permits required) Chicago (94,457 permits required) Atlanta (93,627 permits required) Seattle (73,135 permits required) San Jose, California (69,042 permits required) Denver (67,403 permits required) San Diego (55,825 permits required) According to Yun, most of the metro areas with the biggest need for increased construction have strong appetites for buying, home-price growth that outpaces incomes and common instances where homes sell very quickly. Their healthy job markets continue to attract an influx of potential homeowners, only fueling the need for more housing. "Although a few small cities with high ratios did not make the national rank for absolute permit shortages, their supply shortages are still meaningful at the local level and could become a bigger issue if job gains hold steady and the current pace of construction remains at its nearly non-existent level," adds Yun. Single-family housing starts are seen as adequate to local job growth (at a ratio of 1.6) in Pensacola, Florida; Huntsville, Alabama; Columbia, South Carolina; and Virginia Beach, Virginia. "The limited number of listings in several markets means that many available homes are receiving multiple offers and going under contract rather quickly," says NAR President Tom Salomone, broker-owner of Real Estate II Inc. in Coral Springs, Florida. "It's important in this situation to remain patient and not get caught up offering more than your budget allows. Find a Realtor® with experience serving clients in your desired area and rely on them to deploy a negotiation strategy that ensures success while sticking within budget." Looking ahead, Yun says the good news is that the ratio in many areas slightly moved downward in 2015 compared to 2014 as builders started to respond accordingly to local supply shortages. However, it'll likely be multiple years before inventory rebounds in many of the markets because homebuilders continue to face a plethora of hurdles, including permit delays, higher construction, regulatory and labor costs, difficulty finding skilled workers and the exhausting process many smaller builders go through to obtain financing. "Recent NAR survey data show an overwhelming consumer preference towards single-family homes, including among millennials, who are increasingly buying them in suburban areas," concludes Yun. "A mix of new starter-homes for first-time buyers and larger homes for families looking to trade up is needed at this moment to ensure homeownership opportunities remain in reach to qualified prospective buyers at all ages and income levels." The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing over 1.1 million members involved in all aspects of the residential and commercial real estate industries.
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Homeownership More Profitable for Single Men Than Single Women According to New RealtyTrac Analysis
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Millennials Changing Face of America, Heavily Impacting Homeownership, Say Experts
  WASHINGTON (May 13, 2016) — Millennials are bucking trends, changing the landscape of America, and sharply different from previous generations in many different ways. One of the most visible and consequential ways is through millennial homeownership numbers, according to experts on generational trends and homeownership presenting at the 2016 REALTORS® Legislative Meetings & Trade Expo. While all generations have their own hardships, opportunities and defining features, millennials are coming of age in a time of deep demographic transformation, experts say. In a session titled "The Minds of Millennials—Motivation, Mobility and Making  Home," moderated by National Association of Realtors® Chief Economist Lawrence Yun, panelists discussed what the shift means for the American way of life. "America in the near future will look nothing like the America of the past," said Paul Taylor, executive vice president of the Pew Research Center and author of the book "The Next America: Boomers, Millennials, and the Looming Generational Showdown". "These shifts are creating big generation gaps that will put stress on our families, our politics, our pocketbooks, our entitlements programs and perhaps our social cohesion." Millennials, Taylor said, are different from their parents and grandparents in ways that are already impacting all aspects of life. For example, he noted that millennials (those born after 1980) are less religiously affiliated and slow to marry and have kids. They grew up with cell phones and on social networking sites while also obtaining a high level of education, but are still struggling financially because of the economy. Politically, half of the generation identifies as independent, more than ever have before. While seemingly small differences, these characteristics have very real effects on homeownership. After all, he noted, 39 percent of millennials are still living with a parent or relative, citing the record share of young households holding student debt. Jessica Lautz, managing director of survey research at NAR, agreed that homeownership among millennials is taking a hit. Student loan debt, flat wages, rising home prices (making it harder to get into the homeownership game) and rising rents (complicating the saving process), are delaying milestones such as marrying and having children - major events in life that often cause young people to buy a home. The real estate industry is already feeling the impact of these factors on millennials in regards to home buying.  First-time buyers have in the past accounted for about 40 percent of homebuyers; however, NAR data show that number has trended downward since 2011 and currently sits at 32 percent. And while married couples are the largest group of buyers (currently 67 percent of all buyers), single females make up the second largest group of buyers, and that share has also dropped from 22 percent in 2006 to 15 percent in 2015. Still, one big thing hasn't changed, according to Lautz. "Even with all these statistics showing how things have changed for millennials and the fact that they are worse off financially than previous generations had been, the median age of first-time buyers has stayed relatively unchanged at 31," Lautz said. "This means that they are ready and willing to buy if they can in fact break into the market. It's getting more difficult to get to that point, but the desire to do so hasn't changed." And while the path to homeownership is harder now for millennials carrying student debt, dealing with rising rents, and experiencing stagnant wages, NAR research shows that millennials still see the value in owning and home and once they are ready, they are looking to a real estate agent in higher numbers than ever before. "We are seeing that millennials are using agents at much higher rates," Lautz said. "You might assume that they would prefer to take on a purchase or sell on their own, being raised in the digital age, but instead, we have found that these buyers and sellers want someone to help them through the process, not unlike the way their parents have helped them through their young adult life. Not having been through the process before, they rely on real estate agents to get them through the competitive market and to the finish line." The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.
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RealtyTrac and RE/MAX Sign Deal to Offer HomeDisclosure.com Property Reports to 60,000 RE/MAX Agents Nationwide
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Realtor.com® Identifies America's Boom Towns
  SANTA CLARA, Calif., April 18, 2016 -- Realtor.com®, a leading online real estate destination operated by News Corp subsidiary Move, Inc., today released its list of America's Top 'Boom Towns'. Led by Gilbert, Ariz. (85297); Los Angeles (90012), and Dallas (75201), these neighborhoods are striking it rich when it comes to new home construction, job creation and an increasing number of households – the gold mine for housing market growth. "The strength of the residential real estate market is closely correlated to growth in jobs and households," said Jonathan Smoke, chief economist for realtor.com®. "The good news for these markets is that these growth factors have already started to translate into new construction. At the same time, it may be a year or so before some markets on our list start to see an increase in inventory. If anything, this is a road map for where builders should be thinking about where to break ground next." America's Top Boom Towns are demonstrating some of the strongest growth in jobs, household formation, and housing starts across the country. Every market on the list has experienced between one and five times the average job growth of the top 100 counties in the country. Household growth in each of these areas is between one and seven times the average growth of the top 100 areas. New home starts are between one and six times the average growth in the top 100 counties. Most importantly, each individual ZIP code is projected to see a growth in households of between nine and 19 percent over the next five years. Methodology: Realtor.com® combined projected measures of job creation, household formation and new construction for 2016 to identify the top growth counties. Based on this information, the top ZIP code for each county was identified based on its five year projected household growth. Boom Towns 1. 85297 Gilbert, Ariz.Largest Neighborhood: Power Ranch Part of the Phoenix metropolitan area, Gilbert is located just over 30 miles east of downtownPhoenix in close proximity to where GoDaddy and PetSmart® have significant operations. The sunny neighborhood of 85297 is highly sought after by both snowbirds and locals for its close proximity to golf courses and country clubs. The biggest draw for locals is the strong school district, Higley Unified School District, that's home to Centennial Elementary, which was ranked No. 1 in the state in 2014. ZIP code 85297 is expected to see households grow by 15.9 percent over the next five years, 4.2 times faster than the rest of Maricopa County, where more than 25,000 new housing starts and in excess of 53,000 new jobs are forecast for 2016 – that's 5.7 and 5.8 times more than the average of the top 100 counties in the country, respectively. 2. 90012 Los AngelesLargest Neighborhoods: Historic, Cultural, Elysian Park, Mission Junction Los Angeles is the second-largest city in the U.S. The 90012 ZIP code is located in central Los Angeles and encompasses several neighborhoods, including Elysian Park, Mission Junction, Little Tokyo and Chinatown. In recent years, the area has seen a surge in interest among higher income residents, driven by vibrant cultural offerings – such as the Walt Disney Concert Hill and Dorothy Chandler Pavilion – restaurants and nightlife, as well as new residential development. ZIP code 90012 is expected to experience household growth of 8.8 percent over the next five years. Los Angeles County is expected to see more than 22,000 new housing starts and 65,000 new jobs created in 2016, five times and 7.2 times more than the average of the top 100 counties in the country, respectively. 3. 75201 DallasLargest Neighborhoods: Downtown, Arts District, Uptown, Farmers Market Located in downtown Dallas, the 75201 zip code is home to the Dallas Museum of Art, American Airlines Center—where the city's National Basketball Association and National Hockey League teams play – and is just steps away from Baylor University Medical Center. This neighborhood has undergone a dramatic transformation since the early 2000s when the "Dallas Trinity River Project" began bringing parks, trails, and nature centers in the area. Its close proximity to major employers, shopping, restaurants and Klyde Warren Park make this neighborhood highly sought after by millennials. Urban condos, lofts, and townhomes are popping up everywhere. Households in 75201 are forecast to grow by 14.9 percent over the next five years. Dallas County is expected to see more than 16,000 new housing starts and 40,000 new jobs created in 2016, 3.8 times and 4.5 times more, respectively, than the average of the top 100 counties in the country. 4. 33132 MiamiLargest Neighborhoods: Downtown, Midtown, Seaport Famous for its beaches and warm climate, Miami is also a hub for finance, commerce, culture, media, entertainment and the arts. Traditionally, downtown Miami was a bustling business center by day that became a ghost town by night, but urban development with projects such as Miami Worldcenter have brought tens of thousands of new residents to the area, many of whom are millennial professionals attracted to the shopping and nightlife as well as their ability to walk to work. ZIP code 33132 is expected to see households grow by 14.9 percent over the next five years. The forecast calls for more than 13,000 new housing starts and 44,000 new jobs created in 2016 in Miami-Dade County. This is three times the housing growth and 4.8 times the jobs anticipated on average in the top 100 counties in the country, respectively. 5. 89179 Las VegasLargest Neighborhoods: Mountain's Edge Las Vegas is the most populous city in the state of Nevada and is internationally known as a resort destination. Located roughly 14 miles from the Las Vegas strip, the 89179 zip code primarily encompasses part of a planned community known as Mountain's Edge. Since the development of Mountain's Edge began in 2004, it has ranked among the top-selling master planned communities in the U.S. due to its extensive outdoor amenities such as its large scale community parks, trails and open spaces. Two elementary schools – William V. Wright Elementary School and Carolyn S. Reedom Elementary School – are located within the community itself and in close proximity to ZIP code 89179. Households in ZIP code 89179 are expected to grow by 19.4 percent over the next five years. Clark County is anticipated to see more than 14,000 new housing starts and 23,000 new jobs created in 2016 which is 3.3 times housing growth and 2.5 times the job growth anticipated on average in the top 100 counties in the country, respectively. 6. 98121 SeattleLargest Neighborhood: Belltown The 98121 zip code is home to the largest proportion of residents in downtown Seattle, as well as the largest retail area. Ten percent of Seattle residents now live downtown, representing a 12 percent growth in population since 2010. New residential developments like the 707-unit Insignia Towers and the area's wide variety of restaurants, bars, and cultural offerings, have made Belltown a major draw in recent years. This is especially true for employees of the area's major employers like Amazon, Microsoft, and Starbucks, who are looking for close proximity to work. ZIP code 98121 is expected to see households grow by 11.9 percent over the next five years. King County is expected to see more than 13,000 new housing starts and 21,000 new jobs formed in 2016; that's 3.1 times more new homes and 2.3 times more jobs than the average of the top 100 counties in the country, respectively. 7. 27571 Rolesville, N.C.Largest Neighborhoods: Villages of Rolesville, Carlton Pointe, Cedar Lakes Thirty minutes from Raleigh, N.C., Rolesville is a suburb situated along U.S. Highway 401 in northeastern Wake County and is only 30 minutes from 'Research Triangle Park,' the largest research park in the country with more than 150 companies. Rolesville is known for its strong regional economy and prime positioning, with North Carolina State University, Duke University, and The University of North Carolina all less than an hour away. The realtor.com® Boom Town list isn't the first honor for Rolesville, which has ranked as the Fastest Growing North American City (Forbes.com), Top Housing Market for Investors (Forbes), and Top Public Schools in the U.S. (Greatschools.org). People come here for the jobs, schools and nice weather. Households in ZIP code 27571 are forecast to grow by 12.1 percent over the next five years. Wake County is expected to see more than 10,000 new housing starts and 12,000 new jobs in 2016, that's 2.4 times more new homes and 1.3 times more jobs than the average of the top 100 counties in the country, respectively. 8. 11249 BrooklynLargest Neighborhood: Williamsburg ZIP code 11249 encompasses the Williamsburg neighborhood. Over the past 15 years, the neighborhood has become known as a "hipster" hotspot because of the many artists and creative-minded millennials who have moved there. It is filled with restaurants, bars, art galleries, shops and music venues. Housing developments are popping up throughout this region, including several new residential towers, including Rocket Factory Lofts, distributed throughout Williamsburg. ZIP code 11249 is expected to see households grow by 9.2 percent over the next five years. Kings County is expected to see more than 8,000 new housing starts and 18,000 new jobs created in 2016; that's 1.9 times more new homes and two times more jobs than the average of the top 100 counties in the country, respectively. 9. 60603 ChicagoLargest Neighborhoods: The Loop, downtown Chicago Chicago is the economic heart of the Midwest, and third most populous city in the U.S. Its metropolitan area includes prominent businesses such as United Airlines, Boeing, and Kraft, universities like Northwestern, the University of Chicago, DePaul and Loyola and cultural institutions such as the Art Institute of Chicago. The 60603 zip code extends from Lake Michiganto South Wells Street and West Madison to the North and West Adams to the South and is in proximity to businesses and public transportation. In addition to the West Loop's thriving social scene of popular restaurants and bars, Google, Uber and Twitter all have offices nearby. ZIP code 60603 is expected to see households grow by 18.9 percent over the next five years. More than 6,000 new housing starts and over 38,000 more jobs are forecast for Cook County in 2016. This translates to 1.4 times more new homes and 4.2 times more jobs than the average of the top 100 counties in the country, respectively. 10. 30363 AtlantaLargest Neighborhood: Atlantic Station The Atlanta metropolitan area is home to 5.5 million people and is the 10th-largest metropolitan area in the nation. The 30363 zip code of Atlantic Station is located on the site of the former Atlantic Steel Mill, now a thriving urban community. The neighborhood's luxury condos, such as The Atlantic, as well as its shopping, restaurants and entertainment options, are attracting an influx of young professionals to the neighborhood. ZIP code 30363 is expected to see households grow by 15.7 percent over the next five years. Fulton County is projected to have more than 10,000 new housing starts and 12,000 new jobs created in 2016; that's 2.3 times more new homes and 1.4 times more jobs than the average of the top 100 counties in the country, respectively. About Move, Inc. and realtor.com® Move, Inc. operates the realtor.com® website and mobile experiences, which provide buyers, sellers and renters of homes with the information, tools and professional expertise they need to discover and create their perfect home. News Corp acquired Move in November 2014, and realtor.com® quickly established itself as the fastest growing online real estate service provider as measured by comScore. As the official website of the National Association of REALTORS®, consumers know they can look to realtor.com® for the most comprehensive and accurate information anytime, anywhere. With relationships with nearly 800 multiple listing services (MLS), realtor.com® has more than 3 million for-sale listings, which account for more than 97 percent of all MLS-listed for-sale properties. More than 90 percent of the listings are updated every 15 minutes. Move's network of websites provides consumers a wealth of innovative tools, including Doorsteps®, Moving.com™, SeniorHousingNet and others. Move supports real estate professionals by providing many services to grow their businesses in an increasing digital, on-demand world, including ListHub™, the nation's leading listing syndicator and centralized intelligence platform for the real estate industry; TigerLead®; Top Producer® Systems; and FiveStreet and Reesio as well as many free services.
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Where's America Moving? Oregon Named Top Moving Destination of 2015
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There Goes the Neighborhood: Tech Workers' Silicon Valley Home Values Are Outpacing Neighbors'
  SEATTLE, October 26, 2015 — Workers at Google, Facebook and Apple live in pricier homes than other Bay Area workers and have faster home value growth than other workers. The average Apple worker now lives in a home that is more than five times more valuable than the average U.S. home. The gap has widened in the last five years. In 2010, the average Apple worker's home was worth three times as much as a typical U.S. home. Bay Area home values are soaring, driven by a flood of well-paying jobs at technology companies. But Zillow found home-value appreciation for tech workers from these three companies outpaced that of their neighbors in Silicon Valley. To do the comparison, Zillow looked at census datai to see where employees at the tech companies' Silicon Valley headquarters live, and then compared their home values to those nearby. "This analysis highlights the widening wealth gap between tech company employees and other U.S. workers – a gap that is putting increasing pressure on housing markets where tech companies are booming," said Zillow Chief Economist Dr. Svenja Gudell. The analysis found: The typical worker at Apple's Cupertino, Calif. headquarters lives in a home that is worth about $1.14 millionii, about $241,000 (27 percent) more than the median home in the already-pricey San Jose metro area and $380,000 (50 percent) above the median home value in the San Francisco metro area. Workers at Google and Facebook headquarters – in Palo Alto and Menlo Park, Calif., respectively – lived in even more valuable homes. The median home value among Facebook workers is $1.25 million, and the median home value among Google workers is $1.28 million. The value gap between Silicon Valley techies' homes and their neighbors' homes has been widening recently, especially for Apple workers. Apple workers' home values took off after the first iPhone was released in June 2007, when Apple's stock price rose, increasing the wealth of many employees. Prior to summer 2007, the typical Google employee lived in a home that was 37 percent more expensive than the average San Jose home; since summer 2007, that gap has widened to 39 percent. Similarly, prior to summer 2007, the typical Facebook worker lived in a home that was 31 percent more expensive than the typical San Jose home; since summer 2007, that gap has widened to 33 percent. Prior to summer 2007, the typical Apple worker lived in a home that was 13 percent more expensive than the typical San Jose home; since summer 2007 that gap has widened by 6.4 percentage points to 20 percent. Zillow used data from the U.S. Census Bureau on where workers live and work across California's Bay Area, and combined it with Zillow's Living Database of All Homes to compute a median home value for workers who work at the Apple, Google, and Facebook campuses in the Silicon Valley. Zillow Zillow® is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and knowledge around the place they call home, and connecting them with the best local professionals who can help. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow's Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of economists and data analysts produce extensive housing data and research covering more than 450 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. Zillow also sponsors the bi-annual Zillow Housing Confidence Index (ZHCI) which measures consumer confidence in local housing markets, both currently and over time. Launched in 2006, Zillow is owned and operated by Zillow Group, and headquartered in Seattle.
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HUD Secretary Julián Castro to Join Realtor.com® Chief Economist Jonathan Smoke to Discuss Millennial Housing in Online Town Hall
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Today's First-Time Homebuyers Older, More Often Single
  SEATTLE, Aug. 17, 2015 -- Today's first-time homebuyer is older and more likely to be single than first-time homebuyers in the 1970s and 1980s, according to a new Zillow® analysis. Zillow's study found that Americans are renting for an average of six years before buying their first homes. In the 1970s, they rented for an average of 2.6 years. They're also spending a bigger chunk of their incomes to buy: In the 1970s, first-time homebuyers bought homes that cost about 1.7 times their annual income. Now they're buying homes that cost 2.6 times their annual income. Part of that can be attributed to the housing markets where millennials are moving: more expensive cities on the coasts, where there are growing job markets. The average first-time homebuyer is about 33, at the front end of the millennial generation. Their median income is $54,340, which is about the same as what first-time homebuyers made in the 1970s, when adjusted for inflation. In the late 1980s, 52 percent of first-time homebuyers were married. Today, only 40% were married. "Millennials are delaying all kinds of major life decisions, like getting married and having kids, so it makes sense that they would also delay buying a home," said Zillow Chief Economist Dr. Svenja Gudell. "We know millennials value home-ownership and want to buy. The next challenge will be figuring out how they can save for a down payment and qualify for a mortgage, especially while the rental market is so unaffordable all over the country. The last hurdle will be finding a home they like amidst very tight inventory, especially among starter homes."   About Zillow Zillow® is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and knowledge around the place they call home, and connecting them with the best local professionals who can help. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow's Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of economists and data analysts produce extensive housing data and research covering more than 450 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. Zillow also sponsors the bi-annual Zillow Housing Confidence Index (ZHCI) which measures consumer confidence in local housing markets, both currently and over time. Launched in 2006, Zillow is owned and operated by Zillow Group (NASDAQ: Z), and headquartered in Seattle.
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10 ZIP Codes Rise Above 32,000 to Create Realtor.com®'s 2015 List of Hottest U.S. Housing Locales
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Millennial Sentiment Trending More Positively About Purchasing Homes
MIAMI, June 25, 2015 — Realtor.com®, a leading provider of online real estate services operated by News Corp [Nasdaq: NWS, NWSA] subsidiary Move, Inc., today revealed that millennials have become more positive when it comes to taking the plunge into home ownership and are primed to gain market share in the second half of the year, based on the results of its consumer behavior survey of more than 12,000 respondents conducted from Jan. 1, 2015 to June 15, 2015. Jonathan Smoke, chief economist for realtor.com®, revealed an in-depth analysis of these survey findings during Wednesday's Mortgage Availability for Millennials and Other First-Time Buyers panel discussion at the National Association of Real Estate Editors conference in Miami. "Despite the slow indicators we saw earlier this year, 2015 is on pace to be one of the best years for housing since 2006 due to strong sales and higher than predicted home prices," said Smoke. "Additionally, we're observing an uptick in millennial traffic and sentiment that we expect will result in more first-time home buyer sales in the later part of the year." Smoke went on to explain that first-timers are especially critical when it comes to the health of the market. "Historically, they're the largest demographic of home buyers and can have a dramatic impact on housing," he said. Since the beginning of the year, realtor.com® has observed a slight increase in older millennials – between the ages of 25 and 34 years old – visiting its website and mobile applications with the goal of buying a home. In the first half of June, realtor.com® saw its share of traffic represented by older millennials looking for a home to purchase increase to 23 percent, as compared to 21 percent in January. In mid-June, it also observed its share of those looking for property to rent decrease to 20 percent, from 26 percent in January. Another revealing metric is the number of millennials who intend to buy a home within the next three months. In mid-June, 65 percent of 25-34 year olds responding to the survey indicated that they intend to buy a home within three months, up from 54 percent in January. Additionally, older millennials and first-time buyers are very optimistic about buying. Both groups are slightly more likely than the average buyer to say that they are "very likely to purchase within the next 12 months." "Last year, first-time buyer market share decreased as the year progressed and dropped all the way to 27 percent in the summer, according to data from the National Association of Realtors," stated Smoke. "This year, we're seeing an increase in millennial demand that points to a strengthening first-time buyer demographic. As the economy continues to grow over the next few years, we can expect first-timers to return to a healthy level of 40 percent of the market. A return to that level would add approximately 15 percent to the number of total homes sold." In the first part of the year, millennials were held back by some significant market challenges and were especially impacted by the lack of affordable inventory. Forty-one percent of older millennial home buyers cited that they "have not yet found a house that meets their needs" as the biggest factor holding them back from a purchase. Other reasons included difficulty finding a good house within budget, not spending enough time looking, needing to improve credit score, lacking a down payment, and currently being in a lease. Realtor.com® survey data is based on a daily representative sample of site visitors. This analysis is based on responses from Jan. 1, 2015 through June 15, 2015, which totaled over 12,000. About Move, Inc. and realtor.com® Move, Inc., a subsidiary of News Corp, is a leading provider of online real estate services. Move operates the realtor.com® website and mobile experiences, which connect people to the most important and accurate information they need to find their perfect home and to the REALTORS® whose expertise guides consumers through buying and selling. As the official website of the National Association of REALTORS®, realtor.com® empowers consumers to make smart home-buying, selling and renting decisions by leveraging its direct, real-time connections with more than 800 multiple listing services (MLS) via all types of computers, tablets and smartphones. In addition to the industry's most comprehensive and accurate information, Move's network of websites provides consumers a wealth of innovative tools, including Doorsteps®, Moving.com™, SeniorHousingNetSM and others. Move supports real estate agents and brokerages by providing many services to grow their businesses, including ListHub™, the nation's leading listing syndicator and centralized intelligence platform for the real estate industry; TigerLead®; Top Producer® Systems; and FiveStreetSM; as well as many free services. Move is based in the heart of Silicon Valley – in San Jose, Calif.
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Rise in Bank Repossessions Fuels 1 Percent Increase in Foreclosure Activity to 19-Month High in May
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More than Half of Underwater Homeowners Are Nowhere Near Re-Surfacing
SEATTLE, June 12, 2015 -- The U.S. negative equity rate is dropping, but more than 4 million U.S. homeowners owed the bank at least 20 percent more than their homes were worth, according to the first quarter Zillow® Negative Equity Reporti. That means those homes would have to appreciate at least 20 percent for their owners to have any chance of breaking even on a sale. Home values are forecast to continue rising, but at a slower pace than recent years. The national negative equity rate dropped to 15.4 percent in the first quarter. A year ago, the rate was 18.8 percent. The rate of negative equity improved in all of the 35 largest housing markets in the first quarter of 2015, a sign that, metro-by-metro and home-by-home, the country is continuing to recover from the lax lending rules and subsequent housing market bust of the last decade. At the peak of the real estate crisis, more than 15 million homeowners owed more on their mortgages than their homes were worth, putting them in negative equity. Foreclosures, short sales and rapidly rising home values freed nearly half of those homeowners, leaving 7.9 million homeowners upside down at the end of Q1 2015. Homeowners who remain underwater will likely be the toughest to free from negative equity. Spring and summer are the busiest buying and selling seasons, and this year, there is high demand for homes in the bottom third of the market. However, a disproportionate number of those homeowners are simply stuck in their homes and can't afford to sell to buyers looking for homes in their price range. The rate of underwater homeowners was much higher among the homes with the least valueii. More than 25 percent of those who own the least valuable third of homes were upside down, compared to about 8 percent of the most valuable third of homes. The imbalance was even more pronounced in some markets. In Atlanta, for example, 46 percent of low-end homeowners were underwater, compared with 10 percent of high-end homeowners. In Baltimore, 32 percent of low-end homeowners were in negative equity, compared to 9 percent of those who own the highest-value homes. "It's great news that the level of negative equity is falling, but what really worries me is the depth of negative equity. Millions of Americans are so far underwater, it's likely they may not re-gain equity for up to a decade or more at these rates," said Zillow Chief Economist Dr. Stan Humphries. "And because negative equity is concentrated so heavily at the lower end, it throws a real wrench in the traditional housing market conveyor belt. Potential first-time buyers have difficulty finding affordable homes for sale because those homes are stuck in negative equity. And owners of those homes can't move up the chain because they're stuck underwater in the entry-level home they bought years ago. The logjam at the bottom is having ripple effects throughout the market, and as home value growth slows, it will be years before it gets cleared up. In the meantime, we'll be left with volatile prices, limited inventory, tepid demand, elevated foreclosures and a whole lot of frustration." Among the 35 largest housing markets, Las Vegas, Chicago and Atlanta had the highest rates of homeowners in negative equity. A smaller share of homeowners were upside down in Miami and Detroit, but homeowners there were more deeply underwater. In both places, over 60 percent of homeowners in negative equity were more than 20 percent underwater. About Zillow Zillow® is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and knowledge around the place they call home, and connecting them with the best local professionals who can help. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow's Chief Economist Dr. Stan Humphries. In 2015, Dr. Humphries co-wrote and published the New York Times' bestselling "Zillow Talk: The New Rules of Real Estate." Dr. Humphries and his team of economists and data analysts produce extensive housing data and research covering more than 450 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. Zillow also sponsors the bi-annual Zillow Housing Confidence Index (ZHCI) which measures consumer confidence in local housing markets, both currently and over time. Launched in 2006, Zillow is owned and operated by Zillow Group (NASDAQ: Z), and headquartered in Seattle.
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CoreLogic Reports National Homes Prices Rose by 6.8 Percent
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New Report Finds Waiting to Buy a Home Could Cost Thousands
SAN JOSE, Calif., May 28, 2015 -- With interest rates and home prices expected to climb in the next year, the financial penalties of delaying or forgoing a home purchase in today's market have become very steep, according to the inaugural Opportunity Cost Report released today by realtor.com®, a leading provider of online real estate services operated by News Corp subsidiary Move, Inc. The proprietary report examines a wide range of factors, including the long-term financial impact of owning versus renting a home, the likely monetary gain renters forego in waiting to buy and the financial benefits of homeownership by market. "Current market conditions give buyers the opportunity to build substantial wealth in the long-term, compared with renters and later buyers, in advance of the projected increase in mortgage rates and continuing price appreciation," said Jonathan Smoke, chief economist for realtor.com®. "The problem is inventory is low, which has many would-be home buyers – especially first timers – standing on the sidelines and missing out on potentially material financial gains." Nationally, the estimated wealth an average buyer would accumulate over a 30-year period based on today's dollars totals $217,726. Although some markets are more buyer-friendly than others, national data shows homeowners see significant financial benefits as compared to lifetime renters. In 88 percent of MSAs, buying a home produces a financial benefit of at least $100,000 over 30 years. Ten markets offer an especially considerable upside to owning, with estimated 30-year financial gains above $500,000, and opportunity costs of waiting three years as high as $200,000. These MSAs, in California and other Western states, are relatively expensive markets with strong housing demand and limited supply. The potential long-term wealth in these areas is the greatest nationwide, and likewise, the long-term financial penalty for delaying ownership is substantial, due to price appreciation, escalating rents, and higher mortgage rates on the horizon. (An analysis of the Top 100 MSAs follows.) "This analysis looks solely at the financial reasons to buy a home, based on assumptions about rising mortgage rates and changes in home values," Smoke said. "It's important to remember that a home purchase decision is deeply personal. Potential buyers need to consider factors such as upcoming life events, job security and potential relocation, in addition to financial benefits, because they too can have a significant impact on ownership." About the realtor.com® Opportunity Cost Report Realtor.com® analyzed the 382 largest markets in the U.S. using data on current median existing home prices, rents, local mortgage rates and estimates of property tax and insurance rates, and factored in maintenance costs, costs of selling, and forecasts for mortgage rates, home prices and rents over a 30-year time horizon. About Move, Inc. and realtor.com® Move, Inc., a subsidiary of News Corp, is a leading provider of online real estate services. Move operates the realtor.com® website and mobile experiences, which connect people to the most important and accurate information they need to find their perfect home and to the REALTORS® whose expertise guides consumers through buying and selling. As the official website of the National Association of REALTORS®, realtor.com® empowers consumers to make smart home buying, selling and renting decisions by leveraging its direct, real-time connections with more than 800 multiple listing services (MLS) via all types of computers, tablets and smartphones. In addition to the industry's most comprehensive and accurate information, Move's network of websites provides consumers a wealth of innovative tools, including Doorsteps®, Moving.com™, SeniorHousingNet and others. Move supports real estate agents and brokerages by providing many services to grow their businesses, including ListHub™, the nation's leading listing syndicator and centralized intelligence platform for the real estate industry; TigerLead®; Top Producer® Systems; and FiveStreet; as well as many free services. Move is based in the heart of Silicon Valley – in San Jose, Calif.
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