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U.S. Home Seller Profits Top 50 Percent in 2022 Despite Market Slowdown
Profits on Typical Sales Nationwide Rise from 45 percent to 51 Percent; National Median Home Price for Full Year Up 10 Percent to $330,000 Even as Values Drop in Second Half; Home Sellers Continue Staying in Their Homes Less Than Six Years IRVINE, Calif. – Jan. 26, 2023 — ATTOM, a leading curator of real estate data nationwide for land and property data, today released its Year-End 2022 U.S. Home Sales Report, which shows that home sellers nationwide realized a profit of $112,000 on the typical sale in 2022, up 21 percent from $92,500 in 2021 and up 78 percent from $63,000 two years ago. Despite a market slowdown in the second half of last year, profits rose from 2021 to 2022 in 98 percent of housing markets with enough data to analyze. The latest nationwide profit figure, based on median purchase and resale prices, marked the highest level in the United States since at least 2008. The $112,000 profit on median-priced home sales in 2022 represented a 51.4 percent return on investment compared to the original purchase price, up from 44.6 percent last year and from 32.8 percent in 2020. The latest profit margin also represented a high point since at least 2008. "It seems pretty likely that home seller profits peaked for this cycle in 2022," said Rick Sharga, executive vice president of market intelligence at ATTOM. "Median prices have declined on a monthly basis since mortgage rates doubled between January and October and are likely to decline further in many markets across the country in 2023, reducing profitability for home sellers." Both raw profits and ROI have improved nationwide for 11 straight years, shooting up again in 2022 as the national median home price increased 10 percent to $330,000 – yet another annual record. At the same time, though, profits increased at a slower pace than in 2021, reflecting a year when the nation's decade-long housing boom stalled. The national median home value dipped 8 percent over the second half of last year as home-mortgage rates doubled, consumer price inflation soared to a 40-year high and the stock market slumped. Those forces cut into the amounts potential home buyers could afford, generating multiple headwinds that threaten to further erode the housing market, cutting demand and potentially pushing seller profits down. Total sales last year declined after rising in eight of the previous 10 years. Among 157 metropolitan statistical areas with a population greater than 200,000 and sufficient sales data, those in western and southern states reaped the highest returns on investment in 2022. The West and South regions had 14 of the 15 metro areas with the highest ROIs on typical home sales last year, led by Hilo, HI (100 percent return on investment); Lake Havasu City-Kingman, AZ (88.4 percent); Spokane, WA (86.2 percent); Fort Myers, FL (85.4 percent) and Port St. Lucie, FL (84.8 percent). Prices up at least 10 percent in more than half the country as most markets again hit new highs The U.S. median home price increased 10 percent in 2022, hitting another all-time annual high of $330,000. The full-year median home-price appreciation in 2022 fell below the 17.6 percent nationwide gain in 2021. Still, the latest increase in the national median value remained among the best over the past decade. Since 2012, when the U.S. housing market was just starting to recover from the Great Recession of the late 2000s, the national median price has grown 120 percent. Median prices rose from 2021 to 2022 in all but two of the 157 metropolitan statistical areas around the U.S. with a population of 200,000 or more and sufficient home price data in 2022. Values shot up at least 10 percent in 85 of those metros (54 percent). Those with the biggest year-over-year increases were in Florida, led by Naples, FL (median up 26.9 percent); Fort Myers, FL (up 26.7 percent); Lakeland, FL (up 25.7 percent); Port St. Lucie, FL (up 24.6 percent) and Ocala, FL (up 23.8 percent). The largest median-price increases in metro areas with a population of at least 1 million in 2022 came in Tampa, FL (up 21.9 percent); Raleigh, NC (up 17.9 percent); Austin, TX (up 17.9 percent); Orlando, FL (up 17.7 percent) and Tucson, AZ (up 17.2 percent). Typical home prices in 2022 reached new peaks in 153 of the 157 metros analyzed (97 percent), including New York, NY; Los Angeles, CA; Chicago, IL; Dallas, TX, and Houston, TX. Metro areas where median prices dropped in 2022, or rose by the smallest amounts, were Davenport, IA (down 2 percent); Shreveport, LA (down 1.7 percent); Baltimore, MD (up 2.7 percent); Pittsburgh, PA (up 2.7 percent) and Toledo, OH (up 2.8 percent). Profit margins increase in 90 percent of nation Profit margins on typical home sales improved from 2021 to 2022 in 141 of the 157 metro areas with sufficient data to analyze (90 percent). That happened as the 10 percent jump in sale prices nationwide in 2022 surpassed the 5 percent increases recent sellers had been paying when they originally bought their homes. Nine of the 10 largest increases in investment returns were in Florida, led by Fort Myers, FL (ROI up from 51 percent in 2021 to 85.4 percent in 2022); Ocala, FL (up from 49.7 percent to 82.4 percent); Naples, FL (up from 44.7 percent to 74.4 percent); Port St. Lucie, FL (up from 62.8 percent to 84.8 percent) and Miami, FL (up from 42.9 percent of 64.1 percent). Aside from Miami, the largest ROI gains from 2021 to 2022 in metro areas with a population of at least 1 million were in Orlando, FL (ROI up from 42.2 percent to 62.2 percent); Tampa, FL (up from 53.8 percent to 73.8 percent); Jacksonville, FL (up from 43.7 percent to 58.4 percent) and Las Vegas, NV (up from 48.8 percent to 59.8 percent). The biggest decreases in investment returns from 2021 to 2022 came in Salem, OR (ROI down from 82.7 percent to 43.1 percent); Atlanta, GA (down from 43.9 percent to 36 percent); Boise, ID (down from 75.9 percent to 68.9 percent); Prescott, AZ, (down from 82.7 percent to 75.9 percent) and Sacramento, CA (down from 61 percent to 54.7 percent). Aside from Atlanta and Sacramento, metro areas with a population of at least 1 million and declining profit margins in 2022 included Minneapolis, MN (down from 43.8 percent to 40 percent); Los Angeles, CA (down from 48.2 percent to 45.2 percent) and San Francisco, CA (down from 75.2 percent to 72.8 percent). Raw profits top $100,000 in half the country, with largest clustered on West Coast Raw profits on median-priced home sales in 2022 topped $100,000 in 79, or 50 percent, of the 157 metro areas with sufficient data to analyze. The West region had 17 of the top 20 raw profits in 2022, led by San Jose, CA ($621,000); San Francisco, CA ($473,000); Seattle, WA ($304,063); San Diego, CA ($295,500) and Los Angeles, CA ($272,500). The smallest raw profits in 2022 were mainly in the South and Midwest, reflecting lower homes prices in those areas than elsewhere. Those regions had 19 of the 20 lowest profits on typical sales, led by Columbus, GA ($19,000); Shreveport, LA ($20,000); Beaumont, TX ($22,991); Rockford, IL ($34,500) and Davenport, IA ($38,500). Home seller tenure remains near 10-year low Home sellers in the U.S. who sold in the fourth quarter of 2022 had owned their homes an average of 5.85 years, down from 5.96 years in the previous quarter and from 6.05 years in the fourth quarter of 2021. The latest figure represented the third-shortest average home-seller tenure since 2012. Average seller tenures were down, year over year, in 77, or 72 percent, of the 107 metro areas with a population of at least 200,000 and sufficient data. The biggest declines in average seller tenure from the fourth quarter of 2021 to the fourth quarter of 2022 were in Rockford, IL (down 23 percent); Atlantic City, NJ (down 22 percent); Dayton, OH (down 20 percent); Knoxville, TN (down 19 percent) and Salem, OR (down 18 percent). The longest tenures for home sellers in the fourth quarter of 2022 were in Bellingham, WA (9.87 years); Manchester, NH (8.58 years); Honolulu, HI (8.38 years); Bridgeport, CT (7.78 years) and New Haven, CT (7.57 years). Cash sales at nine-year high Nationwide, all-cash purchases accounted for 36.1 percent, or one of every three single-family home and condo sales in 2022. The latest percentage – the highest since 2013 – was up from 34.4 percent in 2021 and from 22.7 percent in 2020, although still off the 38.5 percent peaks in 2011 and 2012. "Cash buyers – many, but not all of whom are investors – are in a position of competitive advantage in today's higher interest rate environment, and will continue to account for a higher-than-usual share of market at least until mortgage rates dip back down a bit," Sharga noted. "With affordability a problem for many buyers – especially first-time buyers – it wouldn't be a surprise to see the percentage of cash purchases actually increase in 2023." Among those metropolitan statistical areas with a population of at least 200,000 and sufficient cash-sales data, those where cash sales represented the largest share of all transactions in 2022 were Augusta, GA (72.1 percent of sales); Columbus, GA (69 percent); Athens, GA (60.6 percent); Flint, MI (59.5 percent) and Gainesville, GA (58.9 percent). Lender-owned foreclosure purchases in U.S. at lowest level in at least 17 years Foreclosure sales to lenders accounted for just 1.2 percent, or one of every 87 single-family home sales in 2022 – the lowest level since at least 2005. The 2022 figure was down from 1.5 percent of sales, or one in 68, in 2021 and 3.6 percent, or one in 28, in 2020. States where lender-purchased (REO) foreclosure sales comprised the largest portion of total sales in 2022 were Michigan (3.2 percent of sales), Illinois (3 percent), Connecticut (2.2 percent), New York (1.9 percent) and Arkansas (1.9 percent). Among 156 metropolitan statistical areas with a population of at least 200,000 and sufficient data, those where lender-purchased foreclosure sales represented the largest portion of all sales in 2022 were Flint, MI (8.3 percent of sales); Binghamton, NY (4.9 percent); Kalamazoo, MI (4.6 percent); Lansing, MI (4.5 percent) and Huntington, WV (3.7 percent). Among 55 metropolitan statistical areas with a population of at least 1 million, those with the highest levels of lender-purchased foreclosures in 2022 were Chicago, IL (2.8 percent of sales); St. Louis, MO (2.4 percent); Detroit, MI (2.1 percent); Grand Rapids, MI (2 percent) and Baltimore, MD (2 percent). Those with the smallest shares were Raleigh, NC (0.2 percent of sales); Denver, CO (0.2 percent); Tucson, AZ (0.3 percent); San Francisco, CA (0.3 percent) and Colorado Springs, CO (0.3 percent). Aside from Raleigh, Denver, Tucson and San Francisco, metro areas with at least 1 million people where lender-purchased foreclosures represented the smallest share of total sales also included Phoenix, AZ (0.3 percent). Institutional investing down in 2022 Institutional investors nationwide accounted for 6.5 percent, or one of every 15 single-family home and condo sales in 2022 in the U.S. The latest figure was down from 8.1 percent in 2021, but was still more than twice the 2.9 percent level in 2020. Among those metropolitan statistical areas with a population of at least 200,000 and sufficient institutional-investor sales data, those with the highest portions of institutional-investor transactions in 2022 were Atlanta, GA (19 percent of sales); Memphis, TN (18.4 percent); Jacksonville, FL (17.9 percent); Charlotte, NC (16.8 percent) and Tucson, AZ (16.6 percent). FHA sales at lowest point in 15 years Nationwide, buyers using Federal Housing Administration (FHA) loans accounted for 7.5 percent, or one of every 13 single-family home and condo purchases in 2022. That was down from 8.3 percent in 2021 and from 11.8 percent in 2020, to the lowest point since 2007. Among those metropolitan statistical areas with a population of at least 200,000 and sufficient FHA- buyer data in 2022, those with the highest share of purchases made with FHA loans were Bakersfield, CA (18.9 percent of sales); Visalia, CA (18.3 percent); Merced, CA (17.7 percent); Hagerstown, MD (15.8 percent) and Modesto, CA (15.6 percent). Report methodology The ATTOM U.S. Home Sales Report provides percentages of REO sales and all sales that are sold to institutional investors and cash buyers, at the state and metropolitan statistical area. Data is also available at the county and zip code level, upon request. The data is derived from recorded sales deeds, foreclosure filings and loan data. Statistics for previous quarters are revised when each new report is issued as more deed data becomes available. About ATTOM ATTOM 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 real estate data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 30TB 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, property data APIs, real estate market trends, property reports and more. Also, introducing our newest innovative solution, that offers immediate access and streamlines data management – ATTOM Cloud.
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Renting Costs Nearly $800 Less Per Month than Buying
The top markets with the largest savings for renters include: Austin, Texas (121.3% savings), San Francisco (97.0% savings) and Seattle (86.1% savings) SANTA CLARA, Calif., Jan. 26, 2023 -- For many Americans hoping to make the transition to first-time buying in 2023, renting will likely offer relatively more affordable options in the months ahead, according to the Realtor.com® Monthly Rental Report released today. On average across the 50 largest U.S. metros in December, a typical renter faced a 41.4% ($792) lower monthly payment than a starter homeowner. The markets with the largest monthly savings for renters, ranked by the percent difference between monthly mortgage payments and asking rents, include: Austin, Texas (121.3% or $2,013) San Francisco, Calif. (97.0% or $2,855) Seattle, Wash. (86.1% or $1,772) San Jose, Calif. (83.0% or $2,621) San Diego, Calif. (77.2% or $2,085) Los Angeles, Calif. (74.9% or $2,150) Boston, Mass. (73.1% or $2,097) Portland, Ore. (71.2% or $1,246) Phoenix, Ariz. (70.1% or $1,116) Sacramento, Calif (67.7% or $1,241) "Despite the fact that renting will likely be cheaper than buying in 2023, rental affordability will remain a key issue throughout the year. We expect rents will keep hitting new highs, driven by factors including still-low vacancy rates, lagging new construction and demand from would-be first-time buyers," said Realtor.com® Chief Economist Danielle Hale. "For prospective first-time buyers, the key consideration when figuring out whether to buy or rent is how long you plan to live in your next home. If you're looking for flexibility to move in the shorter term, renting may be your best bet, and still offer opportunities to save if you're able to compromise on factors like proximity to the downtown area. Whereas buying could be the better option if you're planning to stay put for at least five years. Market conditions will play a role, but ultimately the timing comes down to your personal situation, and tools like the Realtor.com® Rent vs. Buy Calculator can help you organize and make sense of the many considerations." In December, renters faced lower monthly costs than first-time buyers, on average across the 50 largest U.S. metros and in the vast majority (45) of these markets. Additionally, the gap between the cost of renting and buying a similar-sized home widened significantly compared to December 2021. While this was partly attributed to the slowdown in rent growth seen over the past year, December trends indicate that the increase in relative rental affordability was primarily driven by skyrocketing mortgage rates. In December, the U.S. median rental price, $1,712, was $792 lower than a typical monthly starter home payment. Just 12 months ago, the difference was -$174. The widening gap between rents and first-time buying costs is largely attributed to higher starter homeownership monthly costs ($2,504), which grew 37.4% year-over-year in December – more than 10 times faster than rents (+3.2%) during the same period. Furthermore, despite the slowdown in year-over-year rent growth seen in recent months, typical asking rents ended the year up an average of 11.6% year-over-year. Renting was more affordable than first-time buying in 45 of the 50 largest markets in December, up from 30 markets at the same time last year. In the top 10 metros that favored renting over first-time buying (see table below), monthly starter homeownership costs were an average of 82.2% (+$1,920) higher than rents. Just five markets favored starter homeownership over renting in December, in terms of offering lower monthly costs; these were: Memphis, Tenn. (-32.7%), Pittsburgh (-24.1%), Birmingham, Ala. (-23.5%), St. Louis, Mo. (-6.9%) and Baltimore, Md. (-3.7%). December & Full-Year 2022 Rental Metrics – National December & Full-Year 2022 Rental Metrics – 50 Largest U.S. Metro Areas Ranked by % difference between rents and monthly starter home payments Methodology Rental data as of December 2022 for units advertised as for-rent on Realtor.com®. Rental units include apartment communities as well as private rentals (condos, townhomes, single-family homes). All units were studio, 1-bedroom, or 2-bedroom units. National rents were calculated by averaging the medians of the 50 largest U.S. metropolitan areas, as defined by the Office of Management and Budget (OMB). Realtor.com® began publishing regular monthly rental trends reports in October 2020 with data history going back to March 2019. The monthly cost of buying a starter home, also referred to in this release as first-time buying, was calculated by averaging the December median listing prices of studio, 1-bed, and 2-bed homes, weighted by the number of listings, in each housing market (average across the 50 largest U.S. metros: $318,697). Monthly buying costs assume a 7% down payment, with a mortgage rate of 6.36%, and include taxes, insurance and HOA fees. About Realtor.com® Realtor.com® is an open real estate marketplace built for everyone. Realtor.com® pioneered the world of digital real estate more than 25 years ago. Today, through its website and mobile apps, Realtor.com® is a trusted guide for consumers, empowering more people to find their way home by breaking down barriers, helping them make the right connections, and creating confidence through expert insights and guidance. For professionals, Realtor.com® is a trusted partner for business growth, offering consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com®.
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Renting More Affordable than Homeownership Across Most of the Nation in 2023
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Realtor.com Forecasts the 10 Best Markets for First-Time Homebuyers in 2023
Beyond affordability, these 10 markets have many attractive features for first-time buyers – from nearby amenities to job opportunities SANTA CLARA, Calif., Jan. 18, 2023 -- With affordability continuing to be a big hurdle in 2023, first-time buyers may need to be flexible in order to land a house in the coming year. To find the Best Markets for First-time Homebuyers, Realtor.com® looked at a number of qualities that make a town attractive, including affordability, livability and where it might be easier for young buyers to break into the housing market. The top 10 markets for first-time homebuyers in 2023 are: Portsmouth, Va., DeForest, Wisc., Windsor Locks, Conn., Gloucester City, N.J., Moore, Okla., Magna, Utah, Eggertsville, N.Y., Watervliet, N.Y., Mattydale, N.Y. and Somersworth, N.H. What makes these towns great for first-time buyers? They have strong job markets, short commute times, plenty of places to eat and drink, a younger population, affordability, and more homes to choose from. "The housing market will continue to be challenging for first-time buyers in the coming year, but for those with a bit of flexibility in where they live, there are markets where young buyers can find not just a relatively affordable home, but a neighborhood that offers a mix of economic opportunity and lifestyle amenities," said Realtor.com® Chief Economist Danielle Hale. "Affordability is always a consideration for first-time buyers, but it's also important to make sure that you're settling down in a location that has all the qualities that make it an enjoyable place to live – after all, you're not just buying a house, you're investing in a community." This year's best markets have: More homes to choose from: With inventory still near historic lows, having more homes to choose from can make a world of difference. Realtor.com®'s best markets for first-time homebuyers have an average of 47.8 listings per 1,000 households, higher than the national rate of 45.2. Magna, Utah has the widest selection of listings per household on this year's list. Short commutes: Typically, the farther from city centers, the cheaper the homes, but no one wants to spend all day commuting. This year's top towns have an average expected commute time of just 24 minutes. This is significantly faster than the national average of 30 minutes–it would save 50 hours per year for a 5-day commuter. Those looking for an especially short commute should check out Eggertsville, N.Y., which has an average travel time of just 20 minutes. Options for food and drinks: Buying a house doesn't need to mean giving up on a latte or an occasional meal out. The top towns have an average of 5.6 food and drink establishments per 1,000 households in their metro area, higher than the national rate of 5.3. Somersworth, N.H. topped the list for proximity to restaurants. Younger residents: When it comes to picking a new community, younger buyers are often drawn to younger towns. This year's list has an average of 14.8% of residents in the 25-34 year age category, compared to the national average of 13.4%. Magna, Utah (which also made the 2022 list) tied Moore, Okla. as the youngest markets on the list. Affordability: With high home prices and interest rates, affordability is a key factor for first-time homebuyers. The best markets offer an average 2022 listing price to income ratio of 3.5 for 25- 34 year-olds, much lower than the national rate of 5.1. Mattydale, N.Y. and Gloucester City, N.J. tied for the most affordable locations on the list. Strong housing markets: A home is an investment, and this is especially true for first-time buyers who are likely investing a large portion of their savings into a home. To help best protect that investment, it's important to buy in a location that has a strong local housing market and is likely to hold its value, if not appreciate. This year's markets are located within metro areas that have an average forecasted 2023 home sales growth rate of 1.2%, higher than the national rate which is expected to decline -14.1%. In terms of price growth, Somersworth, N.H. is located within the Boston metro area which is expected to have the highest growth in 2023 among the 10 places on our list (+9.5%), followed closely by the Madison metro area containing DeForest, Wisc.(+9.0%). Realtor.com® 2023 Best Markets for First-Time Homebuyers   Home shoppers can visit Realtor.com® to learn about the process, see if they might be eligible for down payment assistance and find out how much they can afford. Realtor.com®'s Buying Power tool enables shoppers to save their personal information to their profile, so each home listing will show if it is "affordable," "a stretch," "difficult" or "out of reach" based on a shopper's specific budget. Methodology Realtor.com® ranked towns with an expected 2023 population of at least 5,000 residents. The inventory of homes for sale and local median listing prices are from Realtor.com® December 2021 to November 2022 listing data and are reported at the city/place level. The cities and places are defined as postal codes mapped to Census Designated places and reflect approximate but not precise city or place boundaries. The population, household count, household income, and average commute time data were sourced from 2022 and 2023 Claritas estimates based on Census Bureau data. Population and household count numbers are at the city/place level but are also composed of mapped zip code data while household incomes and average commute times at the city/place level. The stated forecasted unemployment rates are Moody's Analytics projections of U.S. Bureau of Labor Statistics Local Area Unemployment Statistics for each city/place's surrounding metro area. Counts of food and beverage establishments are from 2020 County Business Patterns data and are also reported at the metro-level. The 2023 sales and price forecasts are Realtor.com® projections for each city/place's surrounding metro area as detailed in our 2023 Housing Forecast and Top Housing Markets for 2023 reports. About Realtor.com® Realtor.com® is an open real estate marketplace built for everyone. Realtor.com® pioneered the world of digital real estate more than 25 years ago. Today, through its website and mobile apps, Realtor.com® is a trusted guide for consumers, empowering more people to find their way home by breaking down barriers, helping them make the right connections, and creating confidence through expert insights and guidance. For professionals, Realtor.com® is a trusted partner for business growth, offering consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com®.
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Zillow names Charlotte as 2023's hottest housing market
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Home Affordability Worsens Across U.S. During Fourth Quarter of 2022 Despite Declining Home Prices
Major Home-Ownership Costs Consume 32 Percent of Average National Wage, Hitting 15-Year High; Portion of Wages Needed to Own Shoots Up as Rising Interest Rates Outweigh Falling Prices IRVINE, Calif. – Dec. 22, 2022 — ATTOM, a leading curator of real estate data nationwide for land and property data, today released its fourth-quarter 2022 U.S. Home Affordability Report showing that median-priced single-family homes and condos are less affordable in the fourth quarter of 2022 compared to historical averages in 99 percent of counties across the nation with enough data to analyze – far above the 68 percent of counties that were less affordable in the fourth quarter of 2021. The report further shows that the portion of average wages nationwide required for typical major home-ownership expenses has risen to 32.3 percent this quarter. That figure – considered unaffordable by traditional lending standards – is up from 29.6 percent in the third quarter of this year and from 23.8 percent a year ago. It now stands at its highest point since 2007. Affordability has worsened due to rising home-mortgage rates in the U.S., which offset the benefits of rising wages and a recent decline in home values. Higher loan rates in 2022 have pushed up major ownership expenses on median-priced homes by 10 percent this quarter even as the median price of single-family homes and condos nationwide dipped 3 percent this quarter, following a 4 percent drop over the Summer. But lower prices and a 1 percent gain in average wages have been too little to make up for the impact of these increased mortgage payments. "Prospective homebuyers – especially first-time buyers – can't seem to catch a break," said Rick Sharga, executive vice president of market intelligence at ATTOM. "For the past two years home prices have appreciated in double digits – 15 to 20 percent a year in some markets. Now that home prices have plateaued and even declined in some markets, buyers are faced with mortgage rates that have doubled, making home purchases even less affordable." The report determined affordability for average wage earners by calculating the amount of income needed to meet major monthly home ownership expenses — including mortgage, property taxes and insurance — on a median-priced single-family home, assuming a 20 percent down payment and a 28 percent maximum "front-end" debt-to-income ratio. That required income was then compared to annualized average weekly wage data from the Bureau of Labor Statistics (see full methodology below). Compared to historical levels, median home prices in 577 of the 581 counties analyzed in the fourth quarter of 2022 are less affordable than in the past. The latest number is up slightly from 572 of the same group of counties in the third quarter of 2022. But it is well up from 393 in the fourth quarter of 2021 and just 181, or less than a third, two years ago. Meanwhile, major home-ownership expenses on typical homes are unaffordable to average local wage earners during the fourth quarter of 2022 in 427, or about three-quarters, of the 581 counties in the report, based on the 28-percent lending guideline. Counties with the largest populations that are unaffordable in the fourth quarter are Los Angeles County, CA; Maricopa County (Phoenix), AZ; San Diego County, CA; Orange County, CA (outside Los Angeles) and Kings County (Brooklyn), NY. The most populous of the 181 counties where major expenses on median-priced homes remain affordable for average local workers in the fourth quarter of 2022 are Cook County (Chicago), IL; Harris County (Houston), TX; Wayne County (Detroit), MI; Philadelphia County, PA, and Cuyahoga County (Cleveland), OH. Interest rates have more than doubled this year to almost 7 percent, inflation remains near 40-year highs and the stock market has declined. All those forces have helped drive down prices after a decade of gains. At this point, prices haven't declined enough to make up for rising mortgage costs. But affordability could shift back in favor of home seekers if mortgage rate hikes ease or if prices drop further. "There is a scenario where affordability improves as we move through 2023," Sharga added. "Wage growth continues to be strong; home prices appear to have stabilized and are even going down slightly; and mortgage rates may have peaked for this cycle, and could go down gradually next year. If those conditions remain in place, the affordability picture is much brighter for a lot of potential buyers." Home prices remain up at least 5 percent annually in two-thirds of U.S. but dip quarterly in most Despite the recent decline in the U.S. housing market, median single-family home and condo prices in the fourth quarter of 2022 remain up by at least 5 percent over the fourth quarter of 2021 in 361, or 63 percent, of the 581 counties included in the report. However, typical values have dropped from the third to the fourth quarter in 463, or 80 percent, of those counties. That has contributed to a nationwide 3 percent decrease in the median home price, from $335,000 in the third quarter of 2022 to $325,000 in the fourth quarter. The median is now down 6.9 percent from the peak of $349,000 in the second quarter of this year. Data was analyzed for counties with a population of at least 100,000 and at least 50 single-family home and condo sales in the fourth quarter of 2022. Among the 48 counties in the report with a population of at least 1 million, the biggest year-over-year gains in median sales prices during the fourth quarter of 2022 are in Collin County (Plano), TX (up 34 percent); Hillsborough County (Tampa), FL (up 18 percent); Miami-Dade County, FL (up 17 percent); St. Louis County, MO (up 16 percent) and Palm Beach County (West Palm Beach), FL (up 16 percent). Counties with a population of at least 1 million where median prices have dropped most, year-over-year, during the fourth quarter of 2022 are Philadelphia County, PA (down 13 percent); New York County (Manhattan), NY (down 4 percent); Honolulu County, HI (down 4 percent); Bronx County, NY (down 1 percent) and Santa Clara County (San Jose), CA (down 1 percent). Annual price gains still outpacing wage growth in majority of markets Annual home-price appreciation has surpassed weekly annualized wage growth in the fourth quarter of 2022 in 327 of the 581 counties analyzed in the report (56 percent). But that was down from 84 percent of counties analyzed in the third quarter of this year. The latest group where price gains are outpacing wage gains includes Kings County (Brooklyn), NY; Miami-Dade County, FL; Dallas County, TX; Queens County, NY, and Clark County (Las Vegas), NV. Average annualized wage growth has surpassed year-over-year home-price appreciation in the fourth quarter of 2022 in 254 of the counties in the report (44 percent). That was up from 16 percent of counties analyzed in the third quarter of this year. The latest group where wages are going up faster than prices include Los Angeles County, CA; Cook County, (Chicago), IL; Harris County (Houston), TX; Maricopa County (Phoenix), AZ, and San Diego County, CA. Portion of wages needed for home ownership increases throughout the U.S., with 28-percent benchmark exceeded in three-quarters of the nation With mortgage rates rising close to 7 percent, the portion of average local wages consumed by major expenses on median-priced, single-family homes and condos has increased from the third to the fourth quarter of 2022 in 97 percent of the 581 counties analyzed, helping to drive up the expense-to-wage ratio nationwide. The amount needed now tops the 28-percent lending guideline in 427, or about three-quarters of those counties, assuming a 20 percent down payment. That is up from 388, or two-thirds, of the same group of counties in the third quarter of 2022, and from 246, or less than half, in the fourth quarter of last year. Counties with the largest quarterly increase in the portion of average local wages needed for major ownership expenses are Santa Cruz County, CA (up from 105.3 percent in the third quarter of 2022 to 124.7 percent in the fourth quarter of 2022); Maui County, HI (up from 89.5 percent to 104.3 percent); Beaufort County (Hilton Head), SC (up from 54.2 percent to 68 9 percent); Gallatin County (Bozeman), MT (up from 54.5 percent to 67.3 percent) and Alexandria City County, VA (outside Washington, DC) (up from 42.8 percent to 55.2 percent). Those that require the largest percentage of wages are Santa Cruz County, CA (124.7 percent of annualized weekly wages needed to buy a single-family home); Kings County (Brooklyn), NY (114.6 percent); Marin County, CA (outside San Francisco) (109.6 percent); Maui County, HI (104.3 percent) and San Luis Obispo, CA (outside Bakersfield) (94.2 percent). Aside from Kings County, NY, counties with a population of at least 1 million where major ownership expenses typically consume more than 28 percent of average local wages in the fourth quarter of 2022 include Queens County, NY (82.7 percent); Orange County, CA (outside Los Angeles) (82 percent); Alameda County (Oakland), CA (74.8 percent) and Nassau County (Long Island), NY (72 percent). Counties where the smallest portion of average local wages are required to afford the median-priced home during the fourth quarter of this year are Macon County (Decatur), IL (12 percent of annualized weekly wages needed to buy a home); Schuylkill County, PA (outside Allentown) (12.8 percent); Peoria County, IL (13.5 percent); St. Lawrence County, NY (north of Syracuse) (13.6 percent) and Cambria County, PA (east of Pittsburgh (14.1 percent). Counties with a population of at least 1 million where major ownership expenses typically consume less than 28 percent of average local wages in the fourth quarter of 2022 include Wayne County, (Detroit), MI (16.9 percent); Philadelphia County, PA (18.2 percent); Cuyahoga County (Cleveland), OH (19.7 percent); Allegheny County (Pittsburgh), PA (20.7 percent) and St. Louis County, MO (24.1 percent). Annual wages of more than $75,000 needed to afford typical home in half of markets With affordability declining, annual wages of more than $75,000 are needed to pay for major costs on the median-priced home purchased during the fourth quarter of 2022 in 291, or 50 percent, of the 581 markets in the report. The top 25 highest annual wages required to afford typical homes again are on the east or west coast, led by San Mateo County (outside San Francisco), CA ($367,563); New York County (Manhattan), NY ($364,861); Marin County (outside San Francisco), CA ($349,140); San Francisco County, CA ($327,634) and Santa Clara County (San Jose), CA ($322,775). The lowest annual wages required to afford a median-priced home in the fourth quarter of 2022 are in Cambria County, PA (east of Pittsburgh) ($22,502); Schuylkill County, PA (outside Allentown) ($22,974); St. Lawrence County, NY (north of Syracuse) ($26,714); Macon County (Decatur), IL ($26,788) and Bibb County (Macon), GA ($27,332). Historic affordability continues downward, dropping in nearly all counties Among the 581 counties analyzed, 99 percent are less affordable in the fourth quarter of 2022 than their historic affordability averages. That is virtually the same as the 98 percent level in the third quarter of 2022, but is up from 68 percent of the same counties a year ago. Historic indexes worsened in 97 percent of those counties, helping to drive the nationwide index down to its lowest point since the second quarter of 2007, just before an economic contraction known as the Great Recession hit. Counties with a population of at least 1 million that are less affordable than their historic averages (indexes of less than 100 are considered less affordable compared to historic averages) include Collin County (Plano), TX (index of 50); Hillsborough County (Tampa), FL (55); Wayne County (Detroit), MI (55); Mecklenburg County (Charlotte), NC (56) and Maricopa County (Phoenix), AZ (56). Counties with the worst affordability indexes in the fourth quarter of 2022 are Rankin County (outside Jackson), MS (index of 44); Clayton County, GA (outside Atlanta) (45); Jackson County, MS (outside Mobile, AL) (48); Benton County (Kennewick), WA (48) and Newton County, GA (outside Atlanta) (49). Among counties with a population of at least 1 million, those where the affordability indexes have declined most from the third quarter of 2022 to the fourth quarter of 2022 are Collin County (Plano), TX (index down 20 percent); St. Louis County, MO (down 13 percent); Miami-Dade County, FL (down 12 percent); Alameda County (Oakland), CA (down 12 percent) and Fulton County (Atlanta), GA (down 11 percent). Report Methodology The ATTOM U.S. Home Affordability Index analyzed median home prices derived from publicly recorded sales deed data collected by ATTOM and average wage data from the U.S. Bureau of Labor Statistics in 581 U.S. counties with a combined population of 257.8 million during the fourth quarter of 2022. The affordability index is based on the percentage of average wages needed to pay for major expenses on a median-priced home with a 30-year fixed-rate mortgage and a 20 percent down payment. Those expenses include property taxes, home insurance, mortgage payments and mortgage insurance. Average 30-year fixed interest rates from the Freddie Mac Primary Mortgage Market Survey were used to calculate monthly house payments. The report determined affordability for average wage earners by calculating the amount of income needed for major home ownership expenses on a median-priced home, assuming a loan of 80 percent of the purchase price and a 28 percent maximum "front-end" debt-to-income ratio. For example, the nationwide median home price of $325,000 in the fourth quarter of 2022 requires an annual wage of $80,142. That is based on a $65,000 down payment, a $260,000 loan and monthly expenses not exceeding the 28 percent barrier — meaning wage earners would not be spending more than 28 percent of their pay on mortgage payments, property taxes and insurance. That required income is more than the $69,381 average wage nationwide, based on the most recent average weekly wage data available from the Bureau of Labor Statistics, making a median-priced home nationwide unaffordable for average workers. About ATTOM ATTOM 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 real estate data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 30TB 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, property data APIs, real estate market trends, property reports and more. Also, introducing our newest innovative solution, that offers immediate access and streamlines data management – ATTOM Cloud.
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Prairie Village, Kansas, was Zillow's most popular city in 2022
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Zillow names the 10 best metros for first-time home buyers in 2023
These places offer the best mix of affordability and selection, and are seeing a higher share of price cuts SEATTLE, Dec. 7, 2022 -- As the share of buyers purchasing a home for the first time rebounds to pre-pandemic levels amid a changing market, a new Zillow analysis rates Wichita, Kansas, as the top area in America for potential first-time home buyers. Zillow ranked U.S. metros based on factors that included mortgage and rent affordability for first-time home buyers, available homes for sale and the share of listings with a price cut. "Although housing affordability is extremely challenging these days, some markets will be more hospitable than others for first-time home buyers," said Zillow senior economist Orphe Divounguy. "These metros are potential hotbeds for those looking to buy their first home. Not only will shoppers find more affordable monthly mortgage costs and have an easier time qualifying for a smaller loan, but rent also is more affordable than elsewhere in the country, shortening the time it takes to save for a down payment." Top 10 best metros for first-time home buyers Wichita, KS Toledo, OH Syracuse, NY Akron, OH Cleveland, OH Tulsa, OK Detroit, MI Pittsburgh, PA St. Louis, MO Little Rock, AR Wichita, the largest metro in Kansas, landed the top spot largely because of its relative affordability — it's among the top metros where people spend the smallest share of their income on rent and mortgage costs. And it has a higher share of for-sale listings relative to active shoppers, which means more options and bargaining power for potential home buyers. Wichita home shoppers can also find a number of deals popping up, with 22% of listings seeing a price cut in October. Three Ohio metros — Toledo, Akron and Cleveland — are also among the top 10. Detroit is the largest metro in the top 10, ranking as the nation's 12th largest. St. Louis (18th) and Pittsburgh (22nd) also are on the list and are among the nation's 30 largest metros. Wichita rose to the top for similar reasons earlier this year when Zillow analyzed the best metros for single renters. Areas with more affordable housing, such as in the Midwest and Great Lakes regions, should see relatively healthier markets and stronger sales in 2023 when compared to other U.S. markets. "Affordability remains the No. 1 challenge for first-time home buyers," said Amanda Pendleton, Zillow's home trends expert. "If they can overcome that significant hurdle, aspiring buyers have a better chance of landing a home than they've had in several years. They have more options, more time to decide and more negotiating power, meaning they may be able to land their dream home at a discount." As the market continues to change amid a high-interest-rate environment, Zillow has gathered tools on one easy-to-navigate web page that can help aspiring first-time buyers make the leap to homeownership. Zillow's top 10 best metros for first-time home buyers Methodology The Zillow Best Markets for First-Time Home Buyers index captures the extent to which housing market conditions are supportive of home-buying activity, particularly for first-time home buyers. The index employs four variables: mortgage affordability; rent affordability; the inventory-to-buyer ratio, which indicates available supply; and the share of listings with a price cut. Since affordability is the biggest challenge facing the housing market today, the index weighs the affordability metrics more heavily than the other two components. Lower rent shortens the time it takes to save for a down payment. A larger share of listings with a price cut and a higher number of active for-sale listings relative to the number of active shoppers mean more options and greater bargaining power for potential home buyers in those markets. About Zillow Group Zillow Group, Inc. (NASDAQ: Z and ZG) is reimagining real estate to make it easier to unlock life's next chapter. As the most visited real estate website in the United States, Zillow® and its affiliates offer customers an on-demand experience for selling, buying, renting, or financing with transparency and ease. Zillow Group's affiliates and subsidiaries include Zillow®; Zillow Premier Agent®; Zillow Home Loans™; Zillow Closing Services™; Trulia®; Out East®; StreetEasy®; HotPads®; and ShowingTime+™, which houses ShowingTime®, Bridge Interactive®, and dotloop®. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org).
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2023 Housing Outlook: A Post-Pandemic Sales Slump Will Push Home Prices Down for the First Time in a Decade
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NAR Forecasts 4.78 Million Existing-Home Sales, Stable Prices in 2023
Atlanta named top real estate market to watch next year WASHINGTON (December 13, 2022) – Lawrence Yun, NAR chief economist and senior vice president of research, forecasts that 4.78 million existing homes will be sold, prices will remain stable, and Atlanta will be the top real estate market to watch in 2023 and beyond. Yun unveiled the association's forecast today during NAR's fourth annual year-end Real Estate Forecast Summit. Yun predicts home sales will decline by 6.8% compared to 2022 (5.13 million) and the median home price will reach $385,800 – an increase of just 0.3% from this year ($384,500). "Half of the country may experience small price gains, while the other half may see slight price declines," Yun said. "However, markets in California may be the exception, with San Francisco, for example, likely to register price drops of 10–15%." Yun expects rent prices to rise 5% in 2023, following a 7% increase in 2022. He predicts foreclosure rates will remain at historically low levels in 2023, comprising less than 1% of all mortgages. Yun forecasts U.S. GDP will grow by 1.3%, roughly half the typical historical pace of 2.5%. After eclipsing 7% in late 2022, he expects the 30-year fixed mortgage rate to settle at 5.7% as the Fed slows the pace of rate hikes to control inflation. Yun noted this is lower than the pre-pandemic historical rate of 8%. Top 10 Real Estate Markets to Watch in 2023 and into the Future NAR identified 10 real estate markets that it expects to outperform other metro areas in 2023. In order, the markets are as follows: Atlanta-Sandy Springs-Marietta, Georgia Raleigh, North Carolina Dallas-Fort Worth-Arlington, Texas Fayetteville-Springdale-Rogers, Arkansas-Missouri Greenville-Anderson-Mauldin, South Carolina Charleston-North Charleston, South Carolina Huntsville, Alabama Jacksonville, Florida San Antonio-New Braunfels, Texas Knoxville, Tennessee "The demand for housing continues to outpace supply," Yun said. "The economic conditions in place in the top 10 U.S. markets, all of which are located in the South, provide the support for home prices to climb by at least 5% in 2023." NAR selected the top 10 real estate markets to watch in 2023 based on how they compared to the national average on the following economic indicators: 1) better housing affordability; 2) greater numbers of renters who can afford to buy a median-priced home; 3) stronger job growth; 4) faster growth of information industry jobs; 5) higher shares of the information industry in the respective local GDPs; 6) migration gains; 7) shares of workers teleworking; 8) faster population growth; 9) faster growth of active housing inventory; and 10) smaller housing shortages. To view NAR's On the Horizon: Markets to Watch in 2023 and Beyond report, visit this page. The National Association of Realtors® is America's largest trade association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industries.
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Most Home Buying Pet Parents Would Pass on Their Dream Home if It Doesn't Work for Fido, According to Realtor.com Survey
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Homebuying Costs Aren't Coming Down in 2023
Buyers will face home price increases nationally (+5.4%) and in all of the 100 largest markets in 2023, but those who can afford to persist will find more inventory than last year (+22.8%) SANTA CLARA, Calif., Nov. 30, 2022 -- Amid higher mortgage rates and budgets squeezed by inflation, homebuyers looking for affordability in 2023 will find that prices aren't coming down, according to the Realtor.com® 2023 Housing Forecast released today. Instead, with the housing market beginning a gradual adjustment that could last through 2025, what next year will offer buyers is less competition for a growing number of for-sale homes. Overall in 2023,1 Realtor.com® forecasts that buyers and sellers can expect: Average mortgage rates of 7.4%, with early 2023 hikes followed by a slight retreat to 7.1% by year-end. Home sales prices won't come down, but growth will moderate to a single-digit yearly pace (+5.4%) for the first time since 2020. Rents (+6.3% year-over-year) will outpace home prices and likely hit new highs, further adding to budget pressures – especially for first-time buyers. An increase in existing homes for sale (+22.8% year-over-year), as the inventory refresh that began last summer accelerates. Home sales will decline 14.1% year-over-year to 4.53 million, the lowest level since 2012 (see table below). "Compared to the wild ride of the past two years, 2023 will be a slower-paced housing market, which means drastic shifts like price declines may not happen as quickly as some have anticipated. It will be a challenging year for both buyers and sellers, but an important one in setting the stage for home sales to return to a sustainable pace over the next two to three years," said Danielle Hale, Chief Economist for Realtor.com®. "With mortgage rates continuing to climb as the Fed navigates the economy to a soft-ish landing, higher costs will lead to fewer closings, but that doesn't mean homebuying will stop entirely in 2023. Americans who are determined to make a move will find that staying up-to-date on the market, flexibility, creativity and a healthy dose of patience will go a long way toward success in the year ahead." Key 2023 housing trends and wildcards A second wind in the second half. Although home sales are expected to slow overall in 2023, Realtor.com®'s forecast points to the possibility of a second wind in buying activity in the second half of the year. With mortgage rate hikes projected to continue through March, the Spring season will likely be less busy than in a typical year as buyers and sellers recalibrate their expectations around smaller budgets. This break could provide space for demand to renew as mortgage rates dip later in the year, when home shoppers will also have more options and bargaining power. A trifecta of budget barriers awaits buyers. In 2023, incomes are expected to grow (+3.9%), but not enough to offset higher mortgage rates (7.4%) and home prices (+5.4%), creating a trifecta of budget barriers. The typical monthly mortgage payment will be $2,430, 28% higher than in 2022, which will likely price many home shoppers out of the market. This will especially be a concern for first-time buyers. As rents will likely reach new highs, it will leave less room for saving towards a down payment. At the same time, some home shoppers may consider exploring new financial options like adjustable rate mortgages (ARMs), a trend that has already begun to take shape in 2022. It isn't '08. During the mid-2000s housing boom, home sales were elevated for more than five years, and it took another five years for home sales to recover from the economic aftermath. Comparatively, mortgage rate hikes have brought a quicker but less dramatic end to the recent frenzy, during which buyers have been better qualified than in '08. Moving forward, home price growth will slow and may even decline periodically as prices largely stabilize over the next two-to-three years. The homeownership rate is predicted to hold in 2023. Some homeowners could still make bank. In 2023, the typical homeowner is projected to gain $25,650 in equity as prices keep rising. With real estate wealth already much higher than pre-COVID, these trends offer a positive reality check for sellers who have been increasingly pessimistic about entering the market as listing prices have pulled back from last year's peak. While bidding wars won't be the norm in 2023, sellers who have owned their home for a longer period of time are still likely to make a profit. And those living in relatively affordable areas may still command offers above asking, driven by continued home shopper interest in relocating to lower-priced markets. 2023 puts the "wild" in wildcards: Political and economic events can always shake up the housing outlook, as was the case with major financial shifts in 2022. Along with factors including supply chain disruptions and the conflict in Ukraine, markets have largely begun to adjust for these changes, such as with the Fed's efforts to combat inflation with rate hikes. As such, forecasted 2023 housing trends don't anticipate a major shakeup like a recession, but it's still a possibility. Buyers and sellers should keep an eye out for risk signs like a substantial weakening in the jobs market, beyond the mild uptick in unemployment that is projected, as businesses are potentially disrupted by shifting geopolitical, financial and economic conditions. Although a potential recession may lead to lower mortgage rates, ultimately buyers' purchasing power would suffer. And for sellers, this would likely mean less demand and potential price drops. "Of the many factors that are expected to affect the housing market in 2023, affordability tops the list of issues most likely to make or break buyers' plans. Still, our forecast does offer promise for home shoppers who are well-prepared. Tools like Realtor.com®'s Buying Power can help you understand how various rate changes and options impact your budget, and seamlessly integrate into the home search experience to help you stay on track financially," Hale added. 2023 Forecasted Housing Metrics & Historical Data – National 2023 Forecasted Housing Metrics – 100 Largest U.S. Metros (in alphabetical order) Methodology Realtor.com®'s model-based forecast uses data on the housing market and overall economy to estimate values for these variables in the year ahead. About Realtor.com® Realtor.com® is an open real estate marketplace built for everyone. Realtor.com® pioneered the world of digital real estate more than 25 years ago. Today, through its website and mobile apps, Realtor.com® is a trusted guide for consumers, empowering more people to find their way home by breaking down barriers, helping them make the right connections, and creating confidence through expert insights and guidance. For professionals, Realtor.com® is a trusted partner for business growth, offering consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com.
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Redfin Reports Homebuying Demand Ticks Up Slightly After Recent Rate Drop
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New Realtor.com Data Highlights the Impact of Wildfire and Flood Risk on Consumer Behavior and Home Prices
Homebuyers show stronger demand for safer homes in at-risk areas; safer homes appreciate slightly faster than those with higher risk SANTA CLARA, Calif., Nov. 16, 2022 -- More than $8.8 trillion in home value is at moderate-to-high risk of wildfire and $6.5 trillion in home value is at moderate-to-high risk of flood damage over the next 30 years, according to data from Realtor.com® and First Street Foundation. As the frequency and intensity of weather events increases, it's not surprising that consumers are taking these issues into account when looking for a home. New research released today by Realtor.com® found that homebuyers generally show a preference for lower risk homes, which in turn appreciate at a slightly faster pace, and that the preference can be more pronounced in some areas of higher risk where awareness may be greater. Homes with less climate risk appreciate faster Homes with a low risk of flood damage appreciate at 1.5 percentage points faster than homes with a high risk of flood damage. During the last flood-related disaster season (July - Sept. 2021), the growth rate gap increased to 1.7 percentage points, suggesting that flood risk was top-of-mind for buyers. Homes at low risk of wildfire appreciate at 3.7 percentage points faster than homes at high risk of wildfire. During the last wildfire season (July - Sept. 2021), the growth rate gap held steady at 3.7 percentage points, suggesting that awareness may be lower for wildfire than it is for flood. A recent Realtor.com® survey found that 71% of recent homebuyers considered the risk of natural disasters when deciding where to move and 47% are more concerned about natural disasters today than they were five years ago. Additionally, a 2021 Realtor.com® survey found that 34% of homeowners would consider moving or selling their home due to concerns about natural disasters. "Our data shows that users have a small but consistent preference toward lower risk homes. Buying a home is an extremely personal decision and many people are willing to take on more risk in order to have a water view or find a more affordable property," said Danielle Hale, Chief Economist at Realtor.com®. "Consumers are increasingly aware of the risk that wildfires and flooding can have on their home. However, it's important to keep in mind that while climate-related risk is a factor that consumers might take into account, it is one of many considerations when deciding where to live and what home to purchase." Homebuyers weighing climate risks when shopping Home shoppers on Realtor.com® who interact with the flood feature tend to shift toward viewing homes with lower risk than where they began. This is especially true in Florida, Louisiana and South Carolina where consumers shift to viewing details for homes with 5-7% lower risk scores. On the other hand, users in Mississippi shift from viewing homes with lower risk to homes with a higher risk of flooding, indicating that the users are willing to take some risk to find a property that meets their needs and may be more price sensitive. Wildfires seem to be less top-of-mind for home shoppers. In California, Oregon and Utah consumers who interact with the tool continue to look at homes with the same or similar risk scores. However, in Arizona, Florida and Mississippi, users of the tool tend to shift toward properties with higher risk, suggesting that awareness of wildfire risk might be lower than for flood or that consumers might be more price sensitive. "We felt that it was important to add natural disaster information to Realtor.com® to help home shoppers and homeowners better understand their risks and take preventative steps to help mitigate that risk," said Sara Brinton, lead product manager at Realtor.com®. "In the two years since we added flood risk data to the site, it has become one of our most popular features and we're proud to be able to provide this important information to consumers so that they can make informed decisions during the home shopping process." About Realtor.com® Realtor.com® is an open real estate marketplace built for everyone. Realtor.com® pioneered the world of digital real estate more than 25 years ago. Today, through its website and mobile apps, Realtor.com® is a trusted guide for consumers, empowering more people to find their way home by breaking down barriers, helping them make the right connections, and creating confidence through expert insights and guidance. For professionals, Realtor.com® is a trusted partner for business growth, offering consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com.
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Homebuyers Need $107,000 Annually to Afford the Typical U.S. Home -- Up 46% From a Year Ago
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Pressure is back on sellers to attract buyers as demand softens
Homes that sell are doing so quickly, while others are languishing on the market SEATTLE, Oct. 31, 2022 -- The housing market is rebalancing after the most competitive and frenetic period in recent memory. While homes that sell are still doing so relatively quickly — slower than at the height of last year's frenzy, but more quickly than pre-pandemic norms — a new Zillow® analysis finds other homes are lingering on the market much longer, pointing to the need for sellers to build an attractive and competitively priced listing to attract a buyer in today's market. Differences in days to pending (the median number of days homes that sell have been listed before an offer is accepted) and the age of inventory (the median number of days homes currently listed for sale have been on the market) can reveal valuable information for home sellers, especially during a time of transition, like now. Markets with a large spread in these two metrics may be seeing certain home types, neighborhoods or price points attracting buyers, while others are not. Homes that went pending in September typically did so after 19 days. That's a far cry from the record lows seen during much of the pandemic when homes went pending after a week on the market, but 10 days faster than in September 2019. However, that only takes into account homes that find a buyer. Looking at the full stock of for-sale listings, homes have been on the market a median of 54 days as of mid-October, a 45% increase from a year earlier. "Last year, sellers could seemingly list their home at any price and see multiple offers roll in above list price within days," said Zillow senior economist Nicole Bachaud. "Now, buyers have some negotiating power, and sellers are under pressure. Buyers are still out there and willing to buy when they find the right home at the right price, which will provide a floor for the price declines we are currently seeing. But sellers need to do things right to attract the attention of these buyers — pricing their home competitively and making their listing attractive to online home shoppers. Especially in a market that's quickly changing like today's, working with an experienced agent who knows the local market is valuable." Since an all-time low of 19 days in early April, the median age of inventory on Zillow has grown at the fastest rate since at least 2018, when this analysis began. While demand has certainly cooled — Zillow estimates there are 32% fewer active buyers than there were a year ago, though still more than there were in September 2019 — the rapid growth in the median age of inventory may say more about how intensely competitive last year was than about what is happening today. In 2021, the flow of new listings was on par with prior years, but there were so many buyers flooding the market that listings were gone in the blink of an eye. Even now, the median age of inventory is 30% below pre-pandemic norms. If age of inventory continues to grow at this rapid pace — not a bad bet given we are nearing what is usually the slowest time of year for the housing market — inventory is estimated to be on the market a median of 68 days by the end of this year. That would be more than a month shorter than before the pandemic. For-sale homes had typically been on the market for 100 days at the end of both 2018 and 2019. The rapid increase in the age of inventory is primarily because the dip in buyer demand has been deeper than the drop in new listings. Buyers are pulling back primarily due to affordability hurdles, as mortgage rates have risen, and the pace of sales has slowed. Homeowners are reluctant to sell and give up what is likely a mortgage rate of around 3% in order to buy a new home at today's interest rates. The lack of new inventory hitting the market means the share of inventory taken up by listings a week old or less is down 42% from a year ago. Markets in which both days to pending and the median age of inventory are growing indicate demand is slowing across the board. Many of these markets were among the hottest during the height of last year's buying frenzy and had plenty of room to cool. Austin and Las Vegas are prime examples. Some markets have seen days to pending stay fairly low, while the median age of inventory has risen much more. This indicates that a subset of homes continue to see strong competition as buyers snatch them off the market quickly, while others linger. One example is St. Louis, where typical days to pending has remained about a week, while the median age of inventory has jumped to 40 days from a low of nine days this spring. Homeowners who are thinking about selling their home should consider their online curb appeal. Zillow 3D Home tours can help a listing stand out — two-thirds of buyers say 3D tours help them get a better feel for the space than static photos, and prior Zillow research has shown homes that feature a Zillow 3D Home tour are more likely to be "favorited" (saved on Zillow for future viewings) and viewed than those listings without. Hiring an agent with a pulse on a seller's local market can help as well, advising the seller through all the critical decisions during the process. Sellers can click Agent Finder on the Zillow homepage to help identify the right agent by reading customer reviews and reviewing an agent's recent sale history. *Table ordered by market size **Pre-pandemic average is the average of the median ages of inventory in the weeks of October 21, 2018 and October 20, 2019 About Zillow Group Zillow Group, Inc. (NASDAQ: Z and ZG) is reimagining real estate to make it easier to unlock life's next chapter. As the most visited real estate website in the United States, Zillow® and its affiliates offer customers an on-demand experience for selling, buying, renting, or financing with transparency and ease. Zillow Group's affiliates and subsidiaries include Zillow®; Zillow Premier Agent®; Zillow Home Loans™; Zillow Closing Services™; Trulia®; Out East®; StreetEasy®; HotPads®; and ShowingTime+™, which houses ShowingTime®, Bridge Interactive®, and dotloop®. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org).
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Zombie Property Count Ticks Upward Again Across U.S. in Fourth Quarter but Remains Tiny Portion of Housing Market
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Home-Seller Profits Drop Across U.S. in Third Quarter as Housing Market Boom Eases
Profit Margins on Typical Home Sales Dip Three Points Quarterly Amid Decline in National Median Price; Investment Returns Remain Near Record Levels, But Decrease at Fastest Pace in 11 Years; Median U.S. Home Value Down 3 Percent Quarterly During Peak Selling Season IRVINE, Calif. – Oct. 20, 2022 — ATTOM, a leading curator of real estate data nationwide for land and property data, today released its third-quarter 2022 U.S. Home Sales Report, which shows that profit margins on median-priced single-family home and condo sales across the United States decreased to 54.6 percent as home prices declined for the first time in almost three years. The drop-off in typical profit margins, from 57.6 percent in the second quarter, came as the median national home value went down 3 percent quarterly, to roughly $340,000. "Rapidly-rising mortgage rates have not only resulted in fewer home sales, but have begun to impact home prices as well," said Rick Sharga, executive vice president of market intelligence at ATTOM. "With rates the highest they've been in over 20 years, homebuyers face serious affordability challenges, with monthly payments in some markets up 50 percent year-over-year. It's very likely that home prices will continue to weaken in many markets in the coming months." Typical investment returns for home sellers did remain up from 48.8 percent in the third quarter of 2021 and were still at near-record levels for this century – some 20 points higher than just two years earlier. The national median home price also stayed near its all-time high – more than double where it stood a decade earlier. But the investment-return decline during this year's summertime home-selling season marked the largest quarterly downturn since 2011, when the nation was mired in the aftereffects of the Great Recession that hit in the late 2000s. The third-quarter reversal also represented the first time since 2010 that seller returns went down from a second quarter to a third quarter period. Gross profits also decreased from the second quarter to the third quarter of 2022, dropping 6 percent on the typical single-family home and condo sale across the country to $120,100. That quarterly decrease was the largest since early 2017. The third-quarter profit and price trends emerged amid growing headwinds that threaten to end or significantly cool down the nation's decade-long housing market boom. Average mortgage rates have doubled this year, passing 6 percent for a 30-year fixed-rate loan, while the stock market has slumped and consumer price inflation is at a 40-year high. Foreclosure activity by lenders also has more than doubled over the past year. Those forces have raised home-ownership costs for buyers, cut into resources available for down payments on purchases and eaten into overall household budgets. They also have boosted the supply of homes for sale, putting further downward pressure on prices. Profit margins drop quarterly while still up annually across most of U.S. Typical profit margins – the percent change between median purchase and resale prices – decreased from the second quarter of 2022 to the third quarter of 2022 in 127 (68 percent) of the 186 metropolitan statistical areas around the U.S. with sufficient data to analyze. They declined by at least three percentage points in about half of those metro areas, although returns were still up annually in 145 of them (78 percent). The biggest quarterly decreases in typical profit margins came in the metro areas of Claremont-Lebanon, NH (margin down from 72.8 percent in the second quarter of 2022 to 52.4 percent in the third quarter of 2022); San Francisco, CA (down from 85.1 percent to 65.4 percent); Prescott, AZ (down from 86.3 percent to 70.8 percent); Barnstable, MA (down from 74.5 percent to 59.6 percent) and Trenton, NJ (down from 74.5 percent to 61 percent). Aside from San Francisco, the biggest quarterly profit-margin decreases in metro areas with a population of at least 1 million in the third quarter of 2022 were in Seattle, WA (return down from 87.2 percent to 73.7 percent); San Jose, CA (down from 87.5 percent to 76.7 percent); Raleigh, NC (down from 65.6 percent to 56 percent) and Birmingham, AL (down from 40.5 percent to 31.3 percent). Typical profit margins increased quarterly in just 59 of the 186 metro areas analyzed (32 percent). The biggest quarterly increases were in Macon, GA (margin up from 44.7 percent in the second quarter of 2022 to 82.4 percent in the third quarter of 2022); Rockford, IL (up from 29.9 percent to 41.8 percent); Davenport, IA (up from 29.2 percent to 40 percent); Akron, OH (up from 52.8 percent to 60.3 percent) and Hilo, HI (up from 103.3 percent to 110.9 percent). The largest quarterly increases in profit margins among metro areas with a population of at least 1 million came in Milwaukee, WI (up from 51.4 percent to 54.9 percent); Miami, FL (up from 68 percent to 70.9 percent); Cincinnati, OH (up from 50.6 percent to 53.4 percent); Nashville, TN (up from 56.4 percent to 58.7 percent) and Grand Rapids, MI (up from 73 percent to 75.3 percent). Prices flat or down in half the metro areas around the U.S. Median home prices in the third quarter of 2022 decreased from the prior quarter or stayed the same in 98 (53 percent) of the 186 metro areas with enough data to analyze, although they were still up annually in 180 of those metros (97 percent). Nationally, the median price of $339,815 in the third quarter was down 2.7 percent from $349,266 in the second quarter of 2022, but still up 9.4 percent from $310,500 in the third quarter of last year. "If the Federal Reserve's objective was to slow down the housing market, it has succeeded spectacularly," noted Sharga. "The market has gone from double digit annual home price appreciation to below 3 percent, and declining quarter-over-quarter prices. But the impact of 6 and 7 percent mortgage rates means that many homes are still out of the reach of prospective buyers, even with prices declining slightly." The biggest decreases in median home prices from the second to the third quarter of 2022 were in San Francisco, CA (down 13 percent); Charleston, NC (down 12.8 percent); Crestview-Fort Walton Beach, FL (down 11.3 percent); San Jose, CA (down 8.3 percent) and Naples, FL (down 8.2 percent). Aside from San Francisco and San Jose, the largest quarterly median-price declines in metro areas with a population of at least 1 million in the third quarter of 2022 were in New Orleans, LA (down 7.5 percent); Seattle, WA (down 7.2 percent) and San Diego, CA (down 5.3 percent). The largest increases in median prices from the second to the third quarter of 2022 were in Trenton, NJ (up 14.6 percent); Albany, NY (up 8.7 percent); New York, NY (up 7.5 percent); Wichita, KS (up 7.1 percent) and Philadelphia, PA (up 6.7 percent). Aside from New York and Philadelphia, the biggest quarterly increases in metro areas with a population of at least 1 million in the third quarter of 2022 were in Cleveland, OH (up 4.7 percent); Detroit, MI (up 4.5 percent) and St. Louis, MO (up 4.1 percent). Homeownership tenure up, but remains historically low Homeowners who sold in the third quarter of 2022 had owned their homes an average of 5.98 years. That was up from 5.84 years in the second quarter of 2022, but still down from 6.28 years in the third quarter of 2021. Average tenure decreased from the third quarter of 2021 to the same period this year in 81 percent of metro areas with sufficient data. Nineteen of the 25 longest average tenures among sellers in the third quarter of 2022 were in the Northeast or West regions. They were led by Manchester, NH (8.92 years); Kahului-Wailuku, HI (8.26 years); Claremont-Lebanon, NH (8.22 years); Bridgeport, CT (7.89 years) and Honolulu, HI (7.88 years). The smallest average tenures among third-quarter sellers were in Lakeland, FL (1.32 years); Bremerton, WA (1.88 years); Gainesville, GA (2.48 years); Raleigh, NC (3.24 years) and Portland, ME (3.24 years). Lender-owned foreclosures remain at low point for this century Home sales following foreclosures by banks and other lenders again represented just 1 percent of all U.S. single-family home and condo sales in the third quarter of 2022 – tied for the lowest portion since at least 2000. The latest portion of REO sales was the same as the 1 percent level recorded in the second quarter of 2022 and down from 1.2 percent in the third quarter of last year. REO sales represented only one of every 98 sales in the third quarter of 2022, a rate that was 1/30th of this century's high point of one in three in first quarter of 2009. Among metropolitan statistical areas with sufficient data, those areas where REO sales represented the largest portion of all sales in the third quarter of 2022 included Flint, MI (3 percent, or one in 34 sales); Chicago, IL (2.6 percent); St. Louis, MO (2.5 percent); Syracuse, NY (2.3 percent) and New Haven, CT (2.3 percent). Cash sales remain near eight-year high Nationwide, all-cash purchases accounted for 35.7 percent of all single-family home and condo sales in the third quarter of 2022. The third-quarter-of-2022 number was down slightly from 36 percent in the second quarter of 2022 but still up from 33.9 percent in the third quarter of last year. Among metropolitan areas with sufficient cash-sales data, those where cash sales represented a large share of all transactions in the third quarter of 2022 included Columbus, GA (76.8 percent); Augusta, GA (76.6 percent); Gainesville, GA (68.3 percent); Myrtle Beach, SC (67.3 percent) and Atlanta, GA (61.9 percent). Those where cash sales represented the some of the smallest share of all transactions in the third quarter of 2022 included Lincoln, NE (14.9 percent of all sales); Vallejo, CA (17.6 percent); San Jose, CA (18.8 percent); Kennewick, WA (19.4 percent) and Spokane, WA (20.2 percent). Institutional investment increases slightly Institutional investors nationwide accounted for 6.7 percent, or one of every 15 single-family home purchases in the third quarter of 2022. That was up from 6.4 percent in the second quarter of 2022, but still down from 8.4 percent in the third quarter of 2021. Among states with enough data to analyze, those with the largest percentages of sales to institutional investors in the third quarter of 2022 were Arizona (14.3 percent of all sales), Georgia (12.7 percent), Tennessee (10.7 percent), Nevada (10.6 percent) and North Carolina (10.2 percent). States with the smallest levels of sales to institutional investors in the third quarter of 2022 included Hawaii (1.9 percent of all sales), Rhode Island (2.1 percent), Maine (2.1 percent), New Hampshire (2.3 percent) and Louisiana (2.5 percent). FHA-financed purchases increase after year of declines Nationwide, buyers using Federal Housing Administration (FHA) loans comprised 7.9 percent of all single-family home purchases in the third quarter of 2022 (one of every 13). That was up from 6.7 percent in the second quarter of 2022 – the first quarterly gain in a year. But it still remained down from 8.2 percent a year earlier. Among metropolitan statistical areas with sufficient FHA-buyer data, those with the highest levels of FHA buyers in the third quarter of 2022 included Bakersfield, CA (20.8 percent of all sales); Visalia, CA (19.6 percent); Modesto, CA (17.9 percent); Hagerstown, MD (17.3 percent) and Vallejo, CA (16.9 percent). Report methodology The ATTOM U.S. Home Sales Report provides percentages of REO sales and all sales that are sold to institutional investors and cash buyers, at the state and metropolitan statistical area. Data is also available at the county and zip code level, upon request. The data is derived from recorded sales deeds, foreclosure filings and loan data. Statistics for previous quarters are revised when each new report is issued as more deed data becomes available. About ATTOM ATTOM 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 real estate data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 30TB 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, property data APIs, real estate market trends, property reports and more. Also, introducing our newest innovative solution, that offers immediate access and streamlines data management – ATTOM Cloud.
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Homeownership Still Unaffordable Across Most of U.S. But Declining Home Prices May Provide Relief for Homebuyers
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California, New Jersey and Illinois Again Dominate List of Vulnerable Housing Markets
Chicago and New York City Areas Remain Most Exposed to Potential Downturns in Second Quarter of 2022; Other More-At-Risk Markets Scattered Around Nation; South Region Continues to be Less Vulnerable IRVINE, Calif. - Sept. 15, 2022 -- ATTOM, a leading curator of real estate data nationwide for land and property data, today released a Special Housing Risk Report spotlighting county-level housing markets around the United States that are more or less vulnerable to declines, based on home affordability, unemployment and other measures in the second quarter of 2022. The report shows that New Jersey, Illinois and inland California continued to have the highest concentrations of the most-at-risk markets in the second quarter – with the biggest clusters in the New York City and Chicago areas. Southern and midwestern states remained less exposed. The second-quarter patterns – based on gaps in home affordability, underwater mortgages, foreclosures and unemployment – revealed that New Jersey, Illinois and California had 33 of the 50 counties most vulnerable to potential declines. The 50 most at-risk included nine in and around New York City, six in the Chicago metropolitan area, and 13 spread through northern, central and southern California. The rest of the top 50 counties were scattered across the U.S., including three in the Philadelphia, PA, metro area. At the other end of the risk spectrum, the South and Midwest had the highest concentration of markets considered least vulnerable to falling housing markets. "The Federal Reserve has promised to be as aggressive as it needs to be in order to get inflation under control, even if its actions lead to a recession," said Rick Sharga, executive vice president of market intelligence at ATTOM. "Given how little progress has been made reducing inflation so far, the Fed's actions seem more and more likely to drive the economy into a recession, and some housing markets are going to be more vulnerable than others if that happens." Counties were considered more or less at risk based on the percentage of homes facing possible foreclosure, the portion with mortgage balances that exceeded estimated property values, the percentage of average local wages required to pay for major home ownership expenses on median-priced single-family homes, and local unemployment rates. The conclusions were drawn from an analysis of the most recent home affordability, equity and foreclosure reports prepared by ATTOM. Unemployment rates came from federal government data. Rankings were based on a combination of those four categories in 575 counties around the United States with sufficient data to analyze in the second quarter of 2022. Counties were ranked in each category, from lowest to highest, with the overall conclusion based on a combination of the four ranks. See below for the full methodology. The ongoing wide disparities in risks throughout the country comes during a time when the U.S. housing market faces headwinds that threaten to slow down or end an 11-year surge in home prices. Sales of both existing and new homes have declined as mortgage rates have almost doubled to 6 percent over the past year, and inflation remains near a 40-year high. However the most recent risk gaps do not suggest an imminent fall in housing markets anywhere in the nation. Home prices have risen more than 10 percent in most of the country over the past year, with new highs hit in the vast majority of metropolitan-area markets. That has kept homeowner equity and home-seller profits rising. Those numbers have continued to improve as demand, buoyed by increasing household formation by young adults and rising wages has continued to outpace an historically tight supply of properties for sale. Amid that mixed scenario, home affordability is worsening, lender foreclosures on delinquent mortgages are up and the number of home sales is slowing, with local housing markets heading into that uncertain future facing significant differences in risk measures. Most-vulnerable counties clustered in the Chicago, New York City and Philadelphia areas, along with sections of California Thirty-one of the 50 U.S. counties considered most vulnerable in the second quarter of 2022 to housing market troubles (from among 575 counties with enough data to be included in the report) were in the metropolitan areas around Chicago, IL; New York, NY; and Philadelphia, PA, as well as in California. California markets on the list were mostly inland, away from the coast. The top 50 counties included two in New York City (Kings and Richmond counties, which cover Brooklyn and Staten Island), seven in the New York City suburbs (Bergen, Essex, Ocean, Passaic, Sussex and Union counties in New Jersey and Rockland County in New York) and six in the Chicago metropolitan area (Cook, Kane, Kendall, McHenry and Will counties in Illinois and Lake County, IN). The three in the Philadelphia, PA, metro area that were among the top 50 most at-risk in the second quarter were Philadelphia County, along with Camden and Gloucester counties in New Jersey. Elsewhere, California had 13 counties in the top 50 list: Butte County (Chico), Humboldt County (Eureka), Shasta County (Redding) and Solano County (outside Sacramento) in the northern part of the state; Fresno County, Kings County (outside Fresno), Madera County (outside Fresno), Merced County (outside Modesto), San Joaquin County (Stockton) and Tulare County (outside Fresno) in central California, and Kern County (Bakersfield), Riverside County and San Bernardino County in the southern part of the state. Counties most at-risk continue to have higher levels of unaffordable housing, underwater mortgages, foreclosures and unemployment Major home ownership costs (mortgage payments, property taxes and insurance) on median-priced single-family homes consumed more than one-third of average local wages in 35 of the 50 counties that were most vulnerable to market problems in the second quarter of 2022. The highest percentages in those markets were in Kings County (Brooklyn), NY (102.9 percent of average local wages needed for major ownership costs); Riverside County, CA (67.6 percent); Rockland County, NY (outside New York City) (66.2 percent); Richmond County (Staten Island), NY (61.8 percent) and San Joaquin County (Stockton), CA (58.7 percent). Nationwide, major expenses on typical homes sold in the second quarter required 31.5 percent of average local wages. At least 7 percent of residential mortgages were underwater in the second quarter of 2022 in 23 of the 50 most at-risk counties. Nationwide, 5.9 percent of mortgages fell into that category. Those with the highest underwater rates among the 50 most at-risk counties were Rockland County, NY (outside New York City) (19.2 percent of mortgages were underwater); Lake County, IN (outside Chicago, IL) (18.9 percent); Peoria County, IL (17.6 percent); Philadelphia County, PA (16.1 percent) and Saint Clair County, IL (outside St. Louis, MO) (16.1 percent). More than one in 1,000 residential properties faced a foreclosure action in the second quarter of 2022 in 40 of the 50 most at-risk counties. Nationwide, one in 1,559 homes were in that position. Foreclosure actions have risen since the expiration last July of a federal moratorium on lenders taking back properties from homeowners who fell behind on their mortgages during the early part of the Coronavirus pandemic that hit in 2020. They are expected to continue increasing over the coming year. The highest rates in the top 50 counties were in Cuyahoga County (Cleveland), OH (one in 365 residential properties facing possible foreclosure; Cumberland County, NJ (outside Philadelphia, PA) (one in 373); Warren County, NJ (outside Allentown, PA) (one in 455); Camden County, NJ (outside Philadelphia, PA) (one in 462) and Saint Clair County, IL (outside St. Louis, MO) (one in 470). The June 2022 unemployment rate was at least 7 percent in 35 of the 50 most at-risk counties, while the nationwide figure stood at 3.5 percent. The highest levels among the top 50 counties were in Tulare County, CA (outside Fresno) (11.7 percent); Merced County, CA (outside Modesto) (11.5 percent); Kern County (Bakersfield), CA (11.3 percent); Kings County, CA (outside Fresno) (10.9 percent) and Kings County (Brooklyn), NY (10.8 percent). Counties less at-risk concentrated in South and Midwest Twenty-five of the 50 counties least vulnerable to housing-market problems from among the 575 included in the second-quarter report were in the South, while another 14 were in the Midwest. Just five were in the West and six in the Northeast. Tennessee had six of the 50 least at-risk counties, including three in the Nashville metropolitan area (Davidson, Rutherford and Williamson counties), while Wisconsin had five – Brown County (Green Bay), Dane County (Madison), Eau Claire County, La Crosse County and Winnebago County (Oshkosh). Another four were in Arkansas: Benton County (Rogers), Craighead County (Jonesboro), Sebastian County (Fort Smith) and Washington County (Fayetteville). Counties with a population of at least 500,000 that were among the 50 least at-risk included King County (Seattle), WA; Travis County (Austin), TX; Salt Lake County (Salt Lake City), UT; Wake County (Raleigh), NC, and Cobb County (Marietta), GA. Least-vulnerable counties have more-affordable homes along with lower levels of underwater mortgages, foreclosure activity and unemployment Major home ownership costs (mortgage payments, property taxes and insurance) on median-priced single-family homes consumed more than one-third of average local wages in just 24 of the 50 counties that were least vulnerable to market problems in the second quarter of 2022. The lowest percentages in those markets were in Sebastian County (Fort Smith), AR (16.5 percent of average local wages needed for major ownership costs); Potter County (Amarillo), TX (16.5 percent); Sullivan County (Kingsport), TN (21.5 percent); Winnebago County (Oshkosh), WI (22.8 percent) and Craighead County (Jonesboro), AR (23.3 percent). Less than 5 percent of residential mortgages were underwater in the second quarter of 2022 (with owners owing more than their properties are worth) in 30 of the 50 least-at-risk counties. Those with the lowest rates among those counties were Chittenden County (Burlington), VT (1.3 percent of mortgages were underwater); Williamson County, TX (outside Austin) (1.4 percent); Williamson County, TN (outside Nashville) (1.5 percent); Travis County (Austin), TX (1.8 percent) and Wake County (Raleigh), NC (1.9 percent). More than one in 1,000 residential properties faced a foreclosure action during the second quarter of 2022 in none of the 50 least at-risk counties. Those with the lowest rates in those counties were Fayette County (Lexington), KY (one in 48,714 residential properties facing possible foreclosure); Chittenden County (Burlington), VT (one in 36,543); Missoula County, MT (one in 27,271); Johnson County (Overland Park), KS (one in 20,973) and Williamson County, TN (outside Nashville) (one in 15,189). The June 2022 unemployment rate was more than 5 percent in just two of the 50 least-at-risk counties. The lowest rates among the top 50 counties were in Cache County (Logan), UT (2.4 percent); Sarpy County, NE (outside Omaha) (2.8 percent); Hamilton County, IN (outside Indianapolis) (2.8 percent); Shelby County, AL (outside Birmingham) (2.8 percent) and Forsyth County, GA (outside Atlanta) (2.9 percent). Report methodology The ATTOM Special Coronavirus Market Impact Report is based on ATTOM's second-quarter 2022 residential foreclosure, home affordability and underwater property reports, plus June 2022 unemployment figures from the U.S. Bureau of Labor Statistics. (Press releases for affordability, foreclosure and underwater-property reports show the methodology for each.) Counties with sufficient data to analyze were ranked based on the second-quarter percentage of residential properties with a foreclosure filing, the percentage of average local wages needed to afford the major expenses of owning a median-priced home and the percentage of properties with outstanding mortgage balances that exceeded their estimated market values, along with June 2022 county unemployment rates. Ranks then were added up to develop a composite ranking across all three categories. Equal weight was given to each category. Counties with the lowest composite rank were considered most vulnerable to housing market problems. Those with the highest composite rank were considered least vulnerable. About ATTOM ATTOM 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 real estate data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 30TB 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, property data APIs, real estate market trends, property reports and more. Also, introducing our newest innovative solution, that offers immediate access and streamlines data management – ATTOM Cloud.
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Redfin Reports Nearly One-Third of U.S. Homes Are Bought With Cash, Well Above Pre-Pandemic Levels
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The Best Time to Buy a Home is the Week of Sept. 25, According to Realtor.com
Despite rising interest rates, fall is the best season to buy for hopeful homebuyers when it comes to home prices, competition and inventory. SANTA CLARA, Calif., Sept. 14, 2022 -- As children return to school and the weather begins to cool, the off-season is offering up opportunities for hopeful homebuyers. Realtor.com analyzed the numbers in its fourth annual Best Time to Buy Report and found the best time to buy a home across the nation is the week of Sept. 25 to Oct. 1. This early-fall period will offer buyers a host of favorable factors, including more housing listings, less competition, and lower prices. Those who buy during this week can expect: More than 6% of homes with reduced prices Savings of more than $20,000, on average, relative to the summer's peak price of $450,000 Approximately 46% more homes to choose from vs. the average week to date Extra time to make buying decisions, with homes expected to stay on the market 15 days longer than during the summer's peak Less competition, as demand during the best week to buy is historically 26.9% lower than the yearly peak week and 8.5% lower than the average week "After several years of an overheated housing market, higher mortgage rates are helping usher in more regular seasonal trends, which have pros and cons for home shoppers," said Danielle Hale, chief economist, Realtor.com®. "If you're flexible on your timing and can budget for higher rates, early fall can be a great time to secure a home, with a number of factors aligning to make it the best time of the year both in terms of price and competition. This is especially true for first-time buyers and others who are not trying to sell a home at the same time as their purchase." Since 2018, Realtor.com® has analyzed home prices, inventory, listing views, and time on market, indicators that tend to follow regular seasonal patterns, to determine the best time to buy. Historically, the early fall has provided an ideal mix of market conditions, including substantial inventory, waning competition, below-peak prices, and a slowing purchase pace. The benefits of buying during the "best week" include: Reduced prices: Historically, an average of 5.2% of homes have price reductions during this period. As the market begins to stabilize after a frenzied couple of years, more than 6% of homes may have reduced prices during the best week in 2022. Nationally, this could translate into roughly 48,000 homes available at a decreased cost. More listings: Although active listing inventory isn't back to pre-pandemic levels, it has increased year over year and year to date. There could be 780,000 listings during the best week, 46% more than this year's average to date. Less competition: Fierce home buying competition has softened as mortgage rates rise. Historically, demand (as measured by views per property on Realtor.com®) during the best week to buy has been 26.9% lower than its July peak and 8.5% lower than the average week of the year. More time to decide: Homes will stay on the market longer, giving buyers some breathing room to make purchase decisions. During the best time to buy, a typical home is expected to remain on the market for two weeks more than during peak market pace in May and one week more than the average time spent on the market to date. Methodology: Realtor.com analyzed six supply and demand metrics at a national and metropolitan level that follow seasonal patterns, using data for 2018-2021 period (2020 data was omitted due to anomalies caused by the pandemic). The metrics analyzed include: 1) listing prices, 2) inventory levels, 3) new "fresh" listings, 4) time on market, 5) homebuyer demand (realtor.com views per property) and 6) price reductions. Interest rates, which do not follow seasonal patterns, were not included. To account for 2022 market conditions, estimates reflect typical seasonal patterns layered on top of the most recent 2022 weekly data. Each week of the year was scored from 0 to 100 based on the number of active listings. A given week scored highly if it had more listings compared to other weeks of the year. The other metrics were scored in the same way, such that each week had six different scores for active listings, new listings, listing prices, days on market, price reductions and views per property. (In the case of prices, lower prices score higher. Same with views per property). Each week was then ranked by the average of those scores. The week with the highest composite score was considered the best time to buy. This week represents a balanced view of market conditions favorable for buyers. About Realtor.com® Realtor.com® is an open real estate marketplace built for everyone. Realtor.com® pioneered the world of digital real estate more than 25 years ago. Today, through its website and mobile apps, Realtor.com® is a trusted guide for consumers, empowering more people to find their way home by breaking down barriers, helping them make the right connections, and creating confidence through expert insights and guidance. For professionals, Realtor.com® is a trusted partner for business growth, offering consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com.
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Millennial and Gen Z Renters Have Inflation Rates Above 11%, Compared with 8.5% For the Typical American
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Bargaining Power is Back; 92% of Recent Sellers Accepted Buyer-Friendly Terms
Home sellers are once again making repairs and accepting contingencies as we move toward a more balanced housing market SANTA CLARA, Calif., Aug. 30, 2022 -- The days of frenzied sales with waived inspections might be behind us, as buyers regain a bit of bargaining power. According to a new Realtor.com® survey, 92% of people who sold their home within the last year accepted some buyer-friendly terms and 41% accepted some contingencies in the contract. Additionally, among those surveyed, the number of buyers asking for repairs based on the inspection results more than doubled in recent months and the number of sellers refusing to make repairs dropped to zero. Whether it be financing, timing, repairs or flexibility, the art of negotiation is returning to the housing market. Realtor.com® surveyed 449 people who sold their home within the last 12 months. To highlight the shifting market, responses were collected based on how long ago the home sold. "Our survey shows that the overheated housing market of the past two years, which predominantly favored sellers, is beginning to regain a sense of normalcy, which is welcome news for home buyers," said George Ratiu, manager of economic research, Realtor.com®. "The combination of higher mortgage rates and prices have noticeably cooled demand over the first half of the year. In addition, as more homeowners have been listing their properties, rising inventory is motivating more of them to resort to price cuts in order to successfully close transactions. At the same time, even as we are seeing a shift toward a more buyer-friendly market, it's worth noting that the majority of recent sellers are still satisfied with the outcome of their home sale." Room for negotiation Despite the extremely competitive housing market of the past several years, the survey suggests that negotiation is back on the table – for both price and contract terms. Homes that sold at- or above-asking price peaked at 82% in Feb. and March of 2022 when mortgage rates were below 4% and dropped to 69% for homes that sold within the last month when rates hovered near 6%. By contrast, the share of sellers who sold below-asking jumped from 18% in Feb. and March 2022 to 31% for those sold within the last month. Additionally, 92% of all recent sellers accepted some buyer-friendly terms. Those included: 41% Accepted some contingencies in the contract (appraisal, home inspection, home sale, financing, etc.) 32% Dropped the price because the home didn't meet appraisal 32% Paid for some or all of the buyer's closing costs 30% Had to be flexible on the ideal timeline for closing 29% Paid for repairs to the home after the appraisal 28% Were not able to rent the home back after close despite asking to Inspections and repairs make a comeback A professional home inspection is always a good idea for homebuyers, but during the housing market's peak, many buyers waived this important step in order to be competitive with their offer. Of those who sold within the last month, 95% reported that the buyer requested a home inspection, up from 82% of those who sold 6-12 months ago. More than twice as many buyers of homes that sold in the last month asked for repairs as a result of the home inspection (67%) compared to homes that sold 6-12 months ago (31%). The number of surveyed sellers who refused to pay for any repairs during that time dropped from 8% to zero. Nearly all respondents (95%) who sold their home in the last month made some updates or repairs to the property prior to listing, compared to 71% who sold 6-12 months ago. The average amount that recent sellers spent on repairs prior to listing was $14,163. Not all bad news for sellers Despite the shifting market, homes are continuing to sell quickly. In fact, 22% of people who sold within the past month said that their home went under contract in less than a week. This is up from 14% of people who sold 6-12 months ago. Additionally, 92% of people who sold their home in the past month were satisfied with the overall outcome of their home sale, down slightly from the 98% who were satisfied 6-12 months ago. Nearly half (46%) of sellers in the last month were satisfied with the price of their home sale, compared to 72% of those who sold 6-12 months ago. Changing needs motivate sellers After two years of the pandemic, sellers' needs have changed, prompting a search for another home. Of those who sold within the last year: 31% were looking for different amenities/features 29% found that the home no longer met the needs of their families 26% needed a home office for remote work 23% wanted to live closer to family and friends 20% felt they bought their home in a hurry/panic and decided it was not the right home for them 17% no longer needed to live near an office Methodology This survey was conducted online within the United States from Aug. 9-12 among 3,001 adults, of which 449 had sold their home in the last 12 months. The sampling margin of error of this poll is plus or minus 1.8 percentage points. The results reflect a nationally representative sample of U.S. adults. Results were weighted for age by gender, region, race/ethnicity, and income where necessary to align them with their actual proportions in the population. About Realtor.com® Realtor.com® is an open real estate marketplace built for everyone. Realtor.com® pioneered the world of digital real estate more than 25 years ago. Today, through its website and mobile apps, Realtor.com® is a trusted guide for consumers, empowering more people to find their way home by breaking down barriers, helping them make the right connections, and creating confidence through expert insights and guidance. For professionals, Realtor.com® is a trusted partner for business growth, offering consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com®.
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Realtor.com's 2022 Hottest ZIP Codes in America: Historic New England is the Newest Homebuying Hotspot
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Home buyers with lower credit scores pay an extra $104,000 in mortgage costs
A borrower with a "fair" credit score could pay $103,626 more over the life of a 30-year mortgage for the same home than an otherwise identical borrower with an "excellent" score would SEATTLE, July 28, 2022 -- Elevated home prices and rising interest rates are feeding into housing affordability woes for potential buyers, especially those with lower credit scores. A new Zillow analysis shows that, nationally, buyers with "fair" credit could be paying up to $288 more on their monthly mortgage payment than those with "excellent" credit. A buyer’s credit profile plays an important role in how much a home ultimately costs. Today's home shoppers can expect to pay around 62% more per month to buy a typically priced U.S. home than they would have a year ago. Zillow examined credit scores against current mortgage rates and found that such monthly cost increases are exacerbated for millions of Americans with low credit scores or less than perfect credit histories. A borrower with an "excellent" credit score — between 760 and 850 — can qualify for a 30-year fixed-rate mortgage with a 5.099% interest rate. For the same loan, a similar borrower with a "fair" credit score — between 620 and 639 — qualifies for a 6.688% rate. This equates to a $288 difference in monthly mortgage payments and nearly $103,626 in interest over the life of a 30-year fixed loan, based on the current price of a typical U.S. home ($354,165). "When you are thinking about buying a home, the best first step you can take is to fully understand your financial picture, what you can afford and your outstanding debts or obligations," said Libby Cooper, Zillow Home Loans vice president. "If you find you have low credit, take realistic steps to improve your credit score by doing things like disputing possible report errors and paying down as much debt as possible. This could increase the amount of home loan you qualify for." The chart below illustrates how a buyer's credit profile plays an important role in how much a home ultimately costs. Buyers who make raising their credit score part of their initial steps in the home-buying process typically have more buying power and lower monthly payments. The cost of buying a typically priced U.S. home based on credit scores There is a direct correlation between credit security — having a strong credit history and structural access to credit offerings — and higher homeownership rates. The homeownership rate is lower in counties that are more "credit insecure," meaning they are home to high numbers of residents with poor or no credit history. That cuts off millions — particularly Black and Latinx residents — from the wealth-building advantages of homeownership. Additionally, Black applicants are denied a mortgage at a rate 84% higher than white applicants, and credit history is the most common reason cited for those denials. Limited traditional financial services in Black and other communities of color are a significant factor in the lack of credit history and the inability to build a high credit score. Fannie Mae and Freddie Mac recently adopted policies that include timely rent payments in their automated underwriting systems. Lenders and brokers can submit bank account data (with borrower permission) to identify 12 months of prompt rent payments to help potential borrowers qualify for a mortgage. "While inclusion of timely rent payments doesn't change a borrower's credit score, it can have a positive impact on how lenders view a borrower's credit worthiness. This move shows how effective policy changes can help consumers build a strong financial foundation that unlocks homeownership," said Cooper. About Zillow Group Zillow Group, Inc. (NASDAQ: Z and ZG) is reimagining real estate to make it easier to unlock life's next chapter. As the most visited real estate website in the United States, Zillow® and its affiliates offer customers an on-demand experience for selling, buying, renting or financing with transparency and ease. Zillow Group's affiliates and subsidiaries include Zillow®, Zillow Offers®, Zillow Premier Agent®, Zillow Home Loans™, Zillow Closing Services™, Zillow Homes, Inc., Trulia®, Out East®, ShowingTime®, Bridge Interactive®, dotloop®, StreetEasy® and HotPads®. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org).
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The Wall Street Journal and Realtor.com Release Summer 2022 Emerging Housing Markets Index Report
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Texas home builders are being 'whiplashed,' says US No. 1 agent
HomesUSA.com reports "unprecedented" rate of increase in new home listings in MLSs Dallas, TX - July 20, 2022 -- Texas homes builders are being "whiplashed" again as a new homes inventory surge caused a record rate of increase in new home listings in local MLSs, according to Ben Caballero, the nation's top-ranked real estate agent and CEO of HomesUSA.com. According to the HomesUSA.com June 2022 Texas new homes report, the 3-month moving average of active listings in the local MLSs in Dallas-Ft. Worth, Houston, Austin, and San Antonio jumped from 11,224 in April to 15,131 in June – an increase of 35% in 90 days. "The whiplash began in March of last year when Texas builders were caught flat-footed by the sudden and astonishing demand for new homes," said Caballero. "Then while struggling with shortages and supply chain issues, builders pulled out all the stops to increase production, only to be whiplashed again by the sudden reduction in demand caused by cancellations due to rising mortgage rates," he added. "The result is an unprecedented and massive spike in active listings in the MLS over the last 90 days," Caballero noted, adding, "Home building is a tough business." Caballero noted that according to Freddie Mac's weekly mortgage market survey, rates went from 3.76% in the first week of March to 5.81% by late June. According to the National Association of Realtors, mortgage costs are now 30% higher than a year ago for home buyers able to buy a median priced home. Caballero also explained, "Due to its business-friendly environment, no personal income tax, and geographic location, I expect Texas to continue leading the nation in home starts. The continuing migration from large population centers in the north, northeast and west coast markets will cause those areas to experience a disproportionate share of the coming housing slowdown." The HomesUSA.com June 2022 Texas new homes report includes Dallas-Ft. Worth, Houston, Austin, and San Antonio, featuring data from the North Texas Real Estate Information Systems, Houston Association of REALTORS, Austin Board of REALTORS, and San Antonio Board of REALTORS. The report shows an overall decline in new home sales statewide for the first time this year. The 3-month moving average of Texas new home sales shows last month's sales reported to Multiple Listing Services dropped to 4,098 from 4,300 in May. Home sales were down month-over-month in Dallas-Ft. Worth, Houston, and San Antonio. Austin was the only major market to report a very small increase in new home sales last month with 584 versus 581 in May. The HomesUSA.com New Home Sales Index reports new home sales pace quickened last month as the 3-month moving average for Days on Market was 54.07 days, down from 55.38 days in May. New home prices statewide increased last month – a continuing trend. The 3-month moving average of new home sale prices in June was a record $458,448 versus $451,098 in May. The average new home price is up over $71,000 since June 2021, an increase of more than 18 percent, year-over-year. The average new home price set a record high in Dallas-Ft. Worth, breaking the half million-dollar mark at $501,327 in June versus $486,172 in May. Houston ($419,573 versus $416,787) and San Antonio ($391,577 versus $381,444) also posted record prices. However, the average new home price was slightly lower for the fourth straight month in Austin ($541,079 versus $541,842). "Despite all of the market challenges – from labor shortages to supply chain and delivery issues – Texas builders continue to show steadfastness and resilience in markets that still remain persistently strong," said Caballero, a three-time world record holder for most home sales and the No. 1 ranked real estate agent in the US since 2013 by Real Trends. Statewide pending sales also plummeted, another indication of the impact of buyer cancellations. In June, statewide pending sales were 4,379 versus 5,010. All four major new home markets in Texas – Dallas-Ft. Worth, Houston, Austin, and San Antonio – reported a drop in pending sales in June. Caballero is sharing the HomesUSA.com New Homes Report in advance of the release by the Commerce Department of its nationwide New Residential Sales Report for June, set for Tuesday, July 26 at 10:00 am Eastern. Caballero noted this monthly HomesUSA.com report includes both 3-month and 12-month moving averages for six essential market data, including Days on Market, sales volume, sales prices, a sales-to-list price ratio, pending sales, and active listings. The 3-month moving average indices track market seasonality, while the 12-month moving average removes the seasonality and tracks the longer trend. Days on Market – New Homes in Texas (Exclusive Data) The HomesUSA.com New Home Sales Index showed the 3-month moving average of Days on Market declined statewide in June. Houston's DOM was 64.75 days versus 68.14 days in May. In Austin, the DOM decreased to 26.72 days versus 27.60 days in May. In Dallas-Ft. Worth, the DOM increased to 51.42 days from 50.60 days in May. In San Antonio, the DOM was 57.03 days versus 55.01 days in May. (See Chart 1: Texas New Homes Days on Market) Texas New Home Sales Data Based on all available local MLS data, total new home sales in Texas were lower statewide and in three of the four major new home markets last month, according to the 3-month moving average. In Houston, June's total sales were 1,691 versus 1,797 in May. Dallas-Ft. Worth new home sales also decreased to 1,285 versus 1,374 in May. In San Antonio, new home sales decreased to 538 from 548 in May. Austin was the exception, as June sales totaled 584 versus 581 in May. (See Chart 2: Texas New Home Sales) Texas New Home Prices The average price of new homes in Texas shows higher prices statewide and in three of the four major new home markets last month. Dallas-Ft. Worth reported its 3-month moving average price for new homes was higher in June at $501,327 versus $486,172 in May. Houston's average new home price was also higher in June at $419,573 versus $416,787 in May. In San Antonio, the average new home price was higher in June at $391,577 versus $381,444 in May. Austin's 3-month moving average price was the exception, as it decreased in June to $541,079 from $541,842 in May. (See Chart 3: Texas New Home Prices) Texas Sales-to-List Price Ratio New home sales statewide and in Dallas-Ft. Worth, Houston, Austin, and San Antonio still hover near 100 percent of the asking price and in two markets, exceeded it. Statewide, the 3-month moving average of the sales-to-list price ratio in June was 99.954 versus 99.915 percent in May. Dallas-Ft. Worth's ratio was 100.688 versus 100.561 percent in May. In Houston, the ratio was 99.097 versus 99.147 in May. In Austin, the sales-to-price ratio in June was 100.939 versus 100.922 percent in May. San Antonio's ratio in June was 99.853 versus 99.733 in May. (See Chart 4: Texas Sales-to-List Price Ratio) Texas Pending New Homes Sales Data Based on local MLS data, pending new home sales dropped statewide and in all four Texas major new home markets last month. Statewide MLS data shows pending sales in June were 4,379 versus 5,010 in May. Houston's pending sales in June were 1,725 versus 2,083 in May. In San Antonio, pending sales last month were 467 versus 605 in May. Pending new home sales last month in Dallas-Ft. Worth were 1,593 versus 1,663 in May. Austin's pending sales in June were 594 versus 659 in May. (See Chart 5: Texas Pending New Home Sales) Texas Active Listings for New Homes MLS data shows the 3-month moving average for active listings statewide increased in June to 15,131 versus 12,432 in May. Last month, all four major Texas new home markets posted higher active listings. Dallas-Ft. Worth's active listings in June were 2,915 versus 1,613 in May. Last month's active listings in Houston were 7,900 versus 7,373 in May. June's active listings in Austin were higher at 2,129 versus 1,567 in May. San Antonio reported active new home listings in June were 2,186 versus 1,879 in May. (See Chart 6: Texas Active Listings and Chart A: 12-Month Moving Averages) About the HomesUSA.com New Home Sales Index The HomesUSA.com Index is reported as both a 3-month and 12-month moving average of the Days on Market (DOM) for new homes listed in the local Multiple Listing Services (MLSs) for the four largest Texas markets, including Dallas-Ft. Worth, Houston, Austin, and San Antonio. Created by Ben Caballero, founder and CEO of HomesUSA.com, it is the first Days on Market index to track Texas's new home market and includes homes listed while under construction. About Ben Caballero and HomesUSA.com® Ben Caballero, founder and CEO of HomesUSA.com, is a three-time Guinness World Record title holder for "Most annual home sale transactions through MLS by an individual sell-side real estate agent - current." Ranked by REAL Trends as America's top real estate agent for home sales since 2013, Ben is the most productive real estate agent in U.S. history. He is the only agent to exceed $1 billion in residential sales transactions in a single year, a feat first achieved in 2015 and repeated each year through 2018 when he achieved more than $2 billion. An award-winning innovator and technology pioneer, Ben works with more than 60 home builders in Dallas-Fort Worth, Houston, Austin, and San Antonio. His podcast series is available on iTunes and Google Podcasts. An infographic illustrating Ben's sales production is here. Learn more at HomesUSA.com |Twitter: @bcaballero - @HomesUSA | Facebook: /HomesUSAdotcom.
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Down Payment Resource releases Q2 2022 Homeownership Program Index
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Realtor.com 2022 Forecast Update: Real Estate Gets a Refresh from the Frenzy
Active listings will grow 15.0% year-over-year as the inventory recovery accelerates in 2H 2022; higher home sales prices (+6.6%) and mortgage rates (to 5.5%) add to affordability issues SANTA CLARA, Calif., June 13, 2022 -- As rising inflation and mortgage rates bring U.S. housing demand back from the 2021 frenzy, Realtor.com®'s newly-updated 2022 forecast predicts inventory will grow double-digits over 2021 and offer buyers a better-than-expected chance to find a home. Home sales will hit the second-highest level in 15 years, trailing only the 2021 pace, as rising incomes combined with higher housing costs continue to present a mixed bag of affordability issues. The updated forecast anticipates a summer break from a feverish pace of home sales that will provide space for active listings to grow at a faster year-over-year pace than originally projected (+15.0% vs. +0.3%). Combined with returning seasonality and builders ramping up production, these trends could lead to a refresh of the housing market by as early as this fall. "Financial conditions have shifted in a big way since the end of 2021 and the housing market is adjusting accordingly. As Americans grapple with higher prices for everyday expenses while today's buyers face housing costs that are up 50% from a year ago, recent home sales data shows some are taking a step back from the market," said Danielle Hale, Chief Economist for Realtor.com®. "Our updated 2022 forecast anticipates that demand will continue decelerating through the summer, providing breathing room for the inventory recovery to accelerate. As a result, this fall could be an opportune time to find a home – for both first-time and repeat buyers alike. Still, preparation will be key throughout 2022, as it continues to be a seller's market and asking prices remain high. For buyers who choose to wait until later in the year, take that time to assess your budget so you're set up with a strong financial footing whenever you're ready to move forward." Realtor.com® 2022 Housing Forecast – Mid-Year Update While Americans have faced a whirlwind of changes so far this year, a changing economic landscape is the biggest driver of updates to Realtor.com®'s 2022 housing forecast. Inflation has made a more significant and long-standing impact on real estate markets than was anticipated six months ago, and is reflected in trends like rapidly-climbing mortgage rates. Combined with record-high home listing prices and rents, home shoppers are feeling the strain on their budgets. As a result, buyer demand has been softening this Spring from its early 2022 surge. Higher costs will continue to challenge 2022 buyers, as mortgage rates have already far surpassed Realtor.com®'s earlier prediction of 3.6% and home sale price growth year-over-year is expected to more than double its originally-forecasted pace (+6.6% vs. 2.9%). At the same time, Realtor.com®'s updated projection for year-end 2022 mortgage rates (5.5%) anticipates that rates have largely adjusted for the bulk of expected 2022 Fed hikes. The rapid shifts in the economic landscape have some silver linings when it comes to housing affordability. With the unemployment rate near 50-year lows, employers are feeling the pressure to compete for talent, driving wage growth upwards from earlier year-over-year predictions (+3.8% vs. +3.3%). The competitive labor market may also give some buyers more negotiating power on workplace flexibility, creating more opportunities to relocate to relatively affordable housing markets. In fact, data from the first quarter of 2022 showed that 40.5% of Realtor.com® home shoppers viewed listings located outside of their current state, up from 33.4% in 2020. Overall, the updated 2022 forecast reflects a housing market that is charting a path toward more sustainability, relative to the past two years of ups and downs. Home sales are still projected to hit a near record-high pace in 2022 despite trailing 2021 levels (-6.7%) and their original forecast (+6.6%), while the projected homeownership rate will hold roughly steady (65.6% vs. 65.8%). For many Americans, housing affordability will remain a significant obstacle as demand continues to outmatch supply, although by a smaller margin than in recent years. Buyers struggling with higher housing costs can find resources via sites like Realtor.com®, including its down payment assistance tool. About Realtor.com® Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 25 years ago, and today through its website and mobile apps offers a marketplace where people can learn about their options, trust in the transparency of information provided to them, and get services and resources that are personalized to their needs. Using proprietary data science and machine learning technology, Realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, Realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com.
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Down Payment Resource analysis finds that 33% of declined mortgage applications are declined for reasons addressable with homebuyer assistance
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Pricey suburbs top Zillow's list of most popular markets this year
Home value growth in the suburbs began to speed ahead of urban home value growth last summer SEATTLE, May 24, 2022 -- Woodinville, Washington, is Zillow's most popular market of early 2022, leading a list of fast-growing suburbs as the most in-demand places to start off the year. As more evidence emerges that remote work is a driving force behind fast home value growth in the suburbs, expensive suburban markets are seeing strong demand. Zillow analyzed its page-view traffic, home value growth and for-sale inventory for more than 1,000 cities to come up with the site's most popular U.S. markets. Woodinville, located outside of Seattle, topped the list. Following close behind were Burke, Virginia, in the Washington, D.C., area; Highlands Ranch, Colorado, outside of Denver; Westchase, Florida, near Tampa; and Edmonds, Washington, also in the Seattle metro. "The most popular markets so far this year paint a picture of how remote work has changed the U.S. housing landscape," said Zillow economist Nicole Bachaud. "Demand for suburban homes found an extra gear last summer, perhaps as buyers gained more clarity in their employers' return-to-office policies. Research suggests the rise of remote work is responsible for roughly half of home price growth during the pandemic. How many employers continue to allow this flexibility for employees to live where they choose will go a long way toward determining which markets are most in demand in the future." Especially strong home buyer interest has caused suburban home values to grow faster than home values in urban areas, a reversal of previous norms and from the first 15 months of the pandemic. Remote work is a driving force behind this shift, prompting home buyers to prioritize affordability and space over a short commute. More than half of the gain in U.S. home prices since late 2019 can be attributed to remote work, according to research from the National Bureau of Economic Research. The suburbs that beat out all others to top Zillow's latest list of the most popular markets are seeing home values grow faster on a quarterly basis than the principal city in their metro area, indicating stronger demand. Eight of the top 10 have a typical home value higher than their nearby principal city, and seven of those have a typical home value that's more than $150,000 higher. Regionally, Havertown, Pennsylvania, outside of Philadelphia, is Zillow's most popular market in the Northeast, edging out four Boston suburbs: Billerica, Framingham, Waltham and Arlington. In the central region, Ballwin, Missouri, near St. Louis, is joined in the top five by Grand Rapids, Michigan, and three pricey Dallas suburbs: Coppell, Plano and Prosper. Denver suburbs dominated the mountain region, taking the top eight spots in Zillow's rankings. If a buyer has their eye on a home in one of Zillow's most popular markets, they can likely expect competition. Zillow's five tips for winning a competitive bid can help. Mortgage rates are also changing quickly and can have a significant impact on a home buyer's monthly mortgage payment. Zillow's mortgage calculator is a tool that can help buyers stay on top of their finances during their home shopping experience. Zillow's Top 10 Most Popular Markets Woodinville, Washington (Seattle) Burke, Virginia (Washington, D.C.) Highlands Ranch, Colorado (Denver) Westchase, Florida (Tampa) Edmonds, Washington (Seattle) Yorba Linda, California (Los Angeles) Johns Creek, Georgia (Atlanta) Tustin, California (Los Angeles) Ballwin, Missouri (St. Louis) Golden, Colorado (Denver) *Ordered by market size About Zillow Group Zillow Group, Inc. (NASDAQ: Z and ZG) is reimagining real estate to make it easier to unlock life's next chapter. As the most visited real estate website in the United States, Zillow® and its affiliates offer customers an on-demand experience for selling, buying, renting or financing with transparency and ease. Zillow Group's affiliates and subsidiaries include Zillow®, Zillow Premier Agent®, Zillow Home Loans™, Zillow Closing Services™, Trulia®, Out East®, ShowingTime®, Bridge Interactive®, dotloop®, StreetEasy® and HotPads®. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org).
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Home buyers may find less competition near city centers for the first time in years
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'HomeJab Curve' shows real estate remains seasonal, despite tight inventory and the impact of COVID-19
Cherry Hill, NJ - May 4, 2022 -- A new study of data from the last four years by HomeJab debunks reports that tight inventory and COVID-19 have changed real estate seasonality. HomeJab, which provides real estate agents on-demand professional real estate photography, 3D virtual tours, aerial, and other visual production services in every major US market and all 50 states, studied more than 63,000 real estate photography assignments from 2018 to 2021 nationwide. The new HomeJab research tracked the real estate photography listing assignments by month to determine patterns. A "HomeJab Curve" emerged, showing the remarkable consistency of real estate listing activity over the last four years, despite both record low inventory and the pandemic. Charting the data reveals that while activity during the pandemic diverged from the standard curve of real estate listing from March 2020 to May 2020, it corrected itself in June and then closely tracked past listing trends. "Despite what the headlines may say, real estate is still seasonal," said Joe Jesuele, founder and CEO of HomeJab. "Our research shows that real estate listings still peak in the spring and summer, begin to trail off in the fall, and decline significantly in the winter. And on a chart, when you plot the last four years, every year follows that curve – except for a short pause caused by the outbreak of COVID-19," he explained. Jesuele notes that the impact of COVID on the seasonality of real estate was short-lived. "There's also this idea that low inventory also is changing the seasonality of real estate," he added, "but the data we have does not support that theory." A free copy of the detailed data from the HomeJab study is available here. About HomeJab HomeJab is America's most popular and reliable on-demand professional real estate photography and video service for real estate pros. Lightning-fast high-end visual production offerings also include immersive 3D interactive tours, floor plan creation, affordable virtual staging, and turnkey aerial services. A one-stop-shop for real estate listings, HomeJab.com features affordable and customizable shoots that create the most engaging visual content for faster home sales and enrich the listing agent's personal brand. HomeJab is available in every major US market in all 50 states and Puerto Rico, Jamaica, and Toronto. Learn more at HomeJab.com.
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Women could afford 18% more of the housing market if they made as much money as men
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Let the Countdown to Realtor.com Listapalooza Begin! April 10-16 Is the Best Week to List a Home in 2022
With strong buyer demand, high prices, quick sales and less seller competition, April 10-16 will be the sweet spot for sellers who want to put their home on the market this year SANTA CLARA, Calif., March 14, 2022 -- With 2022 anticipated to be a whirlwind year for buyers, it can be hard for sellers to know when the optimal time is to put a home on the market. Realtor.com crunched the numbers in its fourth annual Best Time to Sell Report and found this year's best week to list nationwide is April 10-16. Sellers who list during this week – newly named Realtor.com® Listapalooza – will take advantage of the Spring buying season's top lineup of strong demand, high asking prices, quick home sales and less competition from other sellers. "Every year, to help sellers better navigate the spring buying season, we take a look at recent market conditions to determine the optimal week to put a home on the market. And that perfect moment is just weeks away for 2022 sellers, with data indicating that home prices and demand are rising earlier than in a typical year," said Realtor.com® Chief Economist Danielle Hale. "Homeowners who are thinking about selling this Spring still have time to get ready, with the majority of recently surveyed sellers indicating that listing preparations took 2-12 weeks. A good first step when selling your home is to understand your options, such as those available via the Realtor.com® Seller's Marketplace, and find the best approach based on your family's needs. This way, you'll be able to immediately start your listing process as soon as you're ready. Preparation is especially important this year, since market dynamics could shift quickly along with factors like rising mortgage rates, inflation and the ongoing conflict in Ukraine." By listing April 10-16, sellers can expect a top lineup of Spring buying competition With buyer interest accelerating weeks before the usual start of the Spring buying season, getting a head start on the competition will likely pay off for 2022 sellers. Mortgage rates have been rising more quickly than expected, adding fuel to the fire for buyers hoping to find the right home and lock-in relatively affordable monthly payments. While a high number of home sales are expected throughout the Spring, Realtor.com® found that the seasonal sweet spot to list a home in 2022, or Realtor.com® Listapalooza, is April 10-16, based on: Surging buyer demand: With buyer activity typically rising heading into the Spring, homes added to the market during the same week in 2021 received 29% more views on Realtor.com® than the average week in 2021 and 18.6% more interest than the average home listed in 2018-2021. As a result, sellers who list their homes during Listapalooza may be able to expect more offers and bidding wars, which can result in higher asking prices and a faster sale than later in 2022. High home prices: Home prices already broke the 2021 record in February, accelerating earlier in the Spring buying season than in previous years. As a result, sellers who list from April 10-16 could secure asking prices that are 10.9% (+$39,000) higher than at the start of the year and 1.4% (+$5,000) above the average annual listing price, based on 2021 trends. Fast-moving homes: So far in 2022, homes have been flying off the market at an increasingly fast pace, reflecting early signs of Spring seasonality. In fact, the year kicked off with the fastest-moving January ever (61 days), followed by even lower time on market in February (47 days). During the week of April 10, homes sold six days more quickly than the 2021 average and nearly a month faster than in 2019 (-27 days), before the onset of COVID. Less competition from other sellers: With demand outpacing supply, inventory continues to fall short of previous years, but also reflects regular seasonal patterns. From April 10-16, there were fewer sellers with homes actively listed than in the average week in 2021 (-12.9%). With the number of for-sale home options available to buyers historically rising further into the year, seller competition will increasingly be a key factor to consider. Key trends for sellers to watch moving further into the 2022 buying season Sellers can generally expect to hold the upper hand when the right time for them comes along this Spring, as 2022 buyers have been largely accepting of higher asking prices and quick sales. Even so, sellers' odds of success are greater if they list during Listapalooza compared to later in the year, due to a number of shifting market dynamics. Some of the factors sellers should keep an eye on are: Buyers price sensitivity rises along with mortgage rates: Mortgage rates remained historically-low throughout 2021, giving home shoppers more flexibility to meet higher asking prices. However, mortgage rates have jumped significantly since the start of this year and are expected to continue rising, particularly with the Fed planning on an interest rate hike as soon as March. As buyers grapple with higher monthly costs, some may tighten their budgets or take a break from the market, resulting in cooling price trends. For instance, by early May in 2021, the number of sellers making price adjustments climbed by 17.8% from the start of the year. New supply gives home shoppers more negotiating power: While supply will remain historically low relative to demand in 2022, buyers are expected to have more options later in the year. Builders are accelerating production and will begin to make progress against the new home supply gap. Additionally, new listings trends are improving in line with the typical seasonality, as warmer weather and upcoming summer breaks attract more homeowners into the market. Historically, by mid-August, the number of sellers with actively-listed homes increased 17.4% over the beginning of the year, which means more options for buyers and therefore more competition among sellers. Sellers also buying face trade-offs: As conditions become more favorable for sellers, those who are also buying face a cart-before-the-horse dilemma: Holding out for peak asking prices on their listing could also mean paying a premium for the home they buy. Listing prices typically reach each year's highest level in the Summer, as they did in July of 2021. Realtor.com® analysis indicates a similar timeline in 2022, with historical data suggesting home prices will be up double-digits over the start of the year by late May (+12.3%). However, with new sellers historically rising 48.4% over the start of the year by late May, seller-buyers who delay also face more competition from other sellers and the possibility of missing out on buying opportunities. "We all know that homes are selling lightning fast right now. But that doesn't necessarily mean your house will sell itself," said Rachel Stults, Managing Editor at Realtor.com®. "Before you list your home this spring—or any other time this year—make sure you've taken steps to get ready, including cleaning and decluttering, getting cost estimates on repairs you might need to make, and talking to agents to see who would be a good fit for your needs. No matter when you decide to list, whipping your home into shape beforehand will help you sell faster and for more money." Methodology Listing metrics (e.g. list prices) from 2018-2019 and 2021 were measured on a weekly basis, with each week compared against a benchmark from the first full week of the year. Averaging across the years yielded the "typical" seasonal trend for each metric. Percentile levels for each week were calculated along each metric (prices, listings, days on market, etc.), and were then averaged together across metrics to determine a Best Time to List score for each week. Rankings for each week were based on these Best Time to List scores. Please note: The Realtor.com® Listapalooza described in this release is based on the national best week to list, which overlaps with 31 of the 50 largest U.S. metros (see details here). About Realtor.com® Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 25 years ago, and today through its website and mobile apps offers a marketplace where people can learn about their options, trust in the transparency of information provided to them, and get services and resources that are personalized to their needs. Using proprietary data science and machine learning technology, Realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, Realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com.
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Middle-income Households Gain $2.1 Trillion in Housing Wealth in a Decade
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Nearly 1 in 3 Homebuyers Is Looking to Relocate, an All-Time High
Redfin's chief economist predicts the share of Americans relocating will keep increasing as the year goes on, with rising mortgage rates and skyrocketing rents making affordable metros more attractive than ever SEATTLE - Feb. 22, 2022 -- A record 32.4% of Redfin.com users nationwide looked to move to a different metro area in January, according to a new report from Redfin, the technology-powered real estate brokerage. That's up from the previous peak of 31.5% in the first quarter of 2021 and significantly higher than before the pandemic, when about one-quarter of homebuyers were looking to relocate. The share of homebuyers looking to move has grown during the pandemic as remote work and low mortgage rates have allowed many Americans to relocate to more affordable regions with more indoor and outdoor space. "I predict the share of homebuyers looking to move to a different area will continue to rise throughout the year," said Redfin Chief Economist Daryl Fairweather. "With mortgage rates going up and rents skyrocketing, moving somewhere more affordable is one of the only ways for many Americans to stay within their housing budget. Even workers who are unable to work from home should feel confident about finding a job in a new location with the tight labor market." Permanent remote-work policies and the ongoing housing shortage will also likely keep Americans moving. If a buyer becomes frustrated by a lack of inventory in one metro, they may relocate to a place with more affordable homes to choose from. Miami is the most popular destination for relocating homebuyers Miami was the most popular migration destination of all the major U.S. metros in January, unchanged from the third and fourth quarters of 2021. Popularity is determined by net inflow, a measure of how many more Redfin.com home searchers looked to move into a metro than leave. Miami was followed by Phoenix, Tampa, Sacramento and Las Vegas, all of which are perennial favorites for relocators. Relatively affordable metros with warm weather are typically the most popular destinations among Redfin.com home searchers. Although the five most popular metros are still affordable compared with coastal job centers like the Bay Area and New York, home prices are rising rapidly. In Miami, the typical home sold for $436,900 in January, up 18.1% year over year and above the national median of $376,200. Still, that's more affordable than the $655,000 median sale price in New York, the top origin of people moving to Miami. "While Sun Belt cities like Miami and Phoenix aren't likely to lose their luster anytime soon, rising prices may soon render them slightly less popular for relocators," Fairweather said. "Home prices–and the costs of other goods and services–are skyrocketing in a lot of these destinations precisely because they're so popular with out-of-towners. Some homebuyers who prioritize affordability may start searching in less expensive northern cities." Top 10 Metros by Net Inflow of Users and Their Top Origins Homebuyers are leaving San Francisco, Los Angeles and New York San Francisco, Los Angeles, New York, Seattle and Washington, D.C. were the top metros homebuyers looked to leave in January, unchanged from the fourth quarter. That's based on net outflow, a measure of how many more Redfin.com home searchers looked to leave a metro than move in. Redfin.com home searchers who are looking to relocate typically leave expensive cities, a trend that has become more widespread with remote work. With a median sale price of roughly $1.4 million, San Francisco is the most expensive place to buy a home in the country. Los Angeles, New York and Seattle aren't far behind. Top 10 Metros by Net Outflow of Users and Their Top Destinations To read the full report, including methodology, please click here. About Redfin Redfin is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country's #1 real-estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 6,000 people.
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U.S. Homeownership Rate Experiences Largest Annual Increase on Record, Though Black Homeownership Remains Lower Than a Decade Ago, NAR Analysis Finds
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Homebuying Competition Kicks Off 2022 with the Fastest-Moving January Ever
The typical U.S. home spent 61 days on market in January, 10 days less than last year and nearly a month (-29 days) faster than the typical 2017-2020 pace SANTA CLARA, Calif., Feb. 8, 2022 -- It's early days for the 2022 housing market, but new data shows homebuyers are already off to the real estate races. In the first month of the year, the typical U.S. home sold faster than in any prior January, according to the Realtor.com® Monthly Housing Report released today. Compared to January's national pace, homes sold even more quickly in the 50 largest U.S. metros, with listings flying off the market in 36 days or less in Nashville, Tenn., San Diego, San Jose, Calif., Denver and Raleigh, N.C. "We're forecasting a whirlwind year ahead for buyers and, if January housing trends are any indication, 2022 competition is already heating up. Homes sold at a record-fast January pace, suggesting that buyers are more active than usual for this time of year," said Realtor.com® Chief Economist Danielle Hale. "But it's a different story on the other side of the closing table, with new seller listings continuing to decline in January. Factors like Omicron uncertainties could be causing sellers to hesitate even when they know housing conditions are favorable. Another key barrier is the inventory 'chicken-and-egg' dilemma that may vex sellers who are also buying: Do you list now when home shoppers are hungry for more options, or do you wait for more inventory to hit the market in the spring? Ultimately, only you know the best time for your family to make a move, but preparation is key to acting quickly when the right opportunity comes along. Sites like Realtor.com® offer information and tools to help homeowners keep a pulse on local activity in today's fast-paced market." January 2022 Housing Metrics – National 2022 kicks-off with the all-time fastest-moving January housing market Reflecting the mixed impact of 2021's pent-up buyer demand and feverish home sales pace, time on market both hit a new record and offered buyers a first glimmer of relief in January. On one hand, the typical U.S. home spent less time on the market than in any prior January and a full month less than in the pre-pandemic period from 2017-2019 alone. At the same time, with recent trends following typical seasonal patterns, national time on market increased in January over the final month of 2021. The typical U.S. home spent 61 days on the market in January, moderating from the December pace (54 days). However, homes spent less time on the market than in January 2021 (-10 days) and compared to the same month in 2017-2020, on average (-29 days). Homes spent less time on the market than the national rate in the 50 largest U.S. metros, at an average of 52 days in January. Southern metros posted the biggest yearly declines in time on market, down 10 days across the region as a whole and led by Miami (-29 days), Orlando, Fla. (-24 days), and Raleigh, N.C. (-17 days). In January, time on market increased over last year in just four large markets: Hartford, Conn. (+10 days), Minneapolis (+2 days), and Richmond, Va. (+1 day) and Washington, D.C. (+1 day). Limited inventory creates challenges for buyers and prospective sellers alike While buyer activity is accelerating earlier in 2022 than in prior years, January data suggests sellers aren't on the same timeline. The yearly decline in inventory grew for the fourth straight month as new listings continued to fall short of prior years' levels. This is partly due to typical seasonality, as sellers have historically waited until closer to the spring to enter the market. However, January's new listings declines could indicate that some prospective sellers are delaying their original plans to list earlier in the year, as 65% of those surveyed in the fall expected to list by March 2022. A number of potential factors may be behind seller hesitation, from Omicron uncertainties to the decade-long new construction shortage, with the many sellers who also need to buy a next home finding limited options in January. Nationally, the inventory of active listings was down 28.4% year-over-year in January, worsening from last month's rate (-26.8%). Although there were fewer for-sale homes than in January 2020 in all of the 50 largest metros, more than half (26) posted smaller inventory declines than the national rate. New listings lagged behind prior year's levels for the second consecutive month in January, down 9.1% nationwide. However, Realtor.com® Weekly Housing Trends show the annual rate of new listings declines improved steadily over the course of the month. If this trend continues, buyers may start to see more options ahead of the competitive spring season. Among the 50 largest U.S. metros, 19 experienced smaller new seller declines than the national rate in January. Additionally, four markets posted annual new listings gains: Cleveland (+7.6%), Orlando, Fla. (+2.3%), Indianapolis (+1.6%) and Houston (+0.9%). Home price growth continues at a double-digit pace as rate hikes fuel competition As demand further outpaced supply in January, the U.S. median listing price held near record-highs and continued to rise at a double-digit annual pace. While 2022 is forecasted to be a seller's market, annual home price growth is expected to moderate from the 2021 pace. This is partly due to looming rate hikes, which will cut into buyers' ability to meet high asking prices and have already begun to rise more quickly than anticipated. Listing price data is already showing some loss of momentum, as the acceleration was smaller in January over December compared to December over November. Still, the affordability of monthly housing costs will increasingly challenge buyers – especially first-timers, who typically have less flexible budgets and face the added financial burden of skyrocketing rents. For the second month in a row, the U.S. median listing price held at $375,000. Listing prices increased at a slightly faster annual pace in January (+10.3%) than in December (+10.0%), but the change was smaller than from November (+8.6%) to December. Relative to the national rate, home prices posted smaller yearly gains (+6.1%) in the 50 largest U.S. metros, partially due to inventory gains in smaller-sized homes. Price growth was similar on a square foot basis, up 11.8% year-over-year in large metros and 13.5% year-over-year nationwide. Listing prices grew at a double-digit annual pace in the southern (+11.2%) and western (+10.0%) regions, which dominated the top 5 list of markets with the biggest annual home price increases: Las Vegas (+35.3%), Tampa, Fla. (+28.7%), Austin, Texas (+28.2%), Orlando, Fla. (+25.0%) and Miami (+24.8%). January 2022 Housing Metrics – 50 Largest U.S. Metros Methodology Realtor.com® housing data as of January 2022. Listings include active inventory of existing single-family homes and condos/townhomes for the given level of geography; new construction is excluded unless listed via an MLS. In this release, price adjustments are defined as home listings that had their price reduced in January 2022; listings that had their prices increased during the month are excluded. Note: With the release of its January 2022 housing trends report, Realtor.com® incorporated a new and improved methodology for capturing and reporting housing inventory trends and metrics (see more details here). As a result of these changes, this release is not directly comparable with previous data releases and reports. However, future data releases, including historical data, will consistently apply the new methodology. About Realtor.com® Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 25 years ago, and today through its website and mobile apps offers a marketplace where people can learn about their options, trust in the transparency of information provided to them, and get services and resources that are personalized to their needs. Using proprietary data science and machine learning technology, Realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, Realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com®.
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Record-High Prices and Record-Low Inventory Make It Increasingly Difficult to Achieve Homeownership, Particularly for Black Americans
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Homebuyer's Agent Commission Rate Dips to 2.63%, the Lowest Since at Least 2017
While the buy-side commission has fallen in percentage terms, it has risen in dollar terms—a function of surging home prices; the typical seller pays the buyer's agent $12,415, up from $11,608 in 2020 and $9,610 in 2017. SEATTLE - Feb. 2, 2022 -- The typical commission rate paid to brokerages representing homebuyers has fallen to its lowest point in at least four years, according to a new report from Redfin, the technology-powered real estate brokerage. Redfin found the typical U.S. buyer's agent commission was 2.63% of the home-sale price during the three months ending Nov. 30, 2021—down from 2.69% a year earlier and the lowest rate in Redfin's records, which date back to 2017. In a typical home sale transaction, the seller covers the cost of the fees of both their agent and the buyer's agent. Redfin's analysis focuses on the commission rate offered to the brokerage representing the buyer. Data on the typical commission rate paid to brokerages representing sellers is not available. Fierce Competition May Be Contributing to the Falling Commission Rate Today's competitive housing market may be accelerating the decline in the buy-side commission rate, Redfin agents say. Sellers and their agents understand they'll likely be able to find a buyer regardless of the commission they offer to the buyer's agent. "We're experiencing a historic shortage of houses for sale. Sellers know their home is a hot commodity and will likely attract multiple offers no matter what, so they've started offering the buyer's agents a 2% or 2.5% fee instead of 3%," said Joe Hunt, Redfin's market manager in Phoenix. "Why would you offer 3% when you know you could offer less and sell your home for the same price?" Another factor at play is increasing transparency. Some real estate websites, including Redfin, last year started publishing buyer's agent commission rates in select markets. In November, the National Association of Realtors passed a policy to allow brokerages and agents to display buyer's agent commissions on their websites, which will bring commission transparency to even more markets in 2022. Consequently, more consumers may discover that some home sellers and home-selling companies, like iBuyers, are already paying lower commissions, and follow suit. In Dollar Terms, Commissions Earned by Buyers' Agents Have Climbed While the average commission rate has been declining, the dollar value of buy-side commissions has been on the rise. At $12,415, the average commission fee a buyer's agent received during the three months ending Nov. 30 was up 6.9% from a year earlier and up 29.2% from the same period in 2017. That's a function of rising home prices. The median sale price of U.S. homes surged 15% year over year to $383,100 in November. "One might think the surge in home prices that's driving up commissions in dollar terms is also what's causing sellers to offer lower commission in percentage terms, but that's likely not the case," Fairweather said. "Instead, sellers are probably offering lower commission rates because they realize that a well-priced home in this extreme seller's market will likely attract buyers on its own." Fairweather continued: "With home prices so high, the seller, their agent and the buyer's agent are splitting a pie of funds that's bigger than ever. So even though the buyer's agent is technically getting a smaller share of the pie, their check is 6.9% bigger than it was a year ago. That could change if home prices start to level off." New York and Massachusetts Have Relatively Low Commission Rates In Nassau County, NY, home sellers paid a 1.98% average commission to the buyer's agent during the three months ending Nov. 30—the lowest rate among the 32 metros in Redfin's analysis. Nassau County was the only metro with an average commission rate below 2%. Next came Boston (2.21%), Riverside (2.22%), Anaheim (2.25%) and New Brunswick (2.3%). At 2.94%, Kansas City, MO and Columbus, OH had the highest commission rates. Next came Austin, TX (2.92%), Virginia Beach, VA (2.91%), Houston (2.90%) and Dallas (2.88%). To view the full report, including charts, local data and methodology, click here. About Redfin Redfin is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country's #1 real-estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 6,000 people.
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More than a third of recent movers say it's harder to find a house than a spouse
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U.S. Home Seller Profits Soar Again in 2021 as Prices Shoot to New Records
Profits on Typical Sales Nationwide Rise from 34 percent to 45 Percent; National Median Home Price Jumps 17 Percent to $301,000; Homeowners Staying In Their Homes Before Selling for Shortest Period in 10 Years IRVINE, Calif. - Jan. 27, 2022 -- ATTOM, curator of the nation's premier property database, today released its Year-End 2021 U.S. Home Sales Report, which shows that home sellers nationwide realized a profit of $94,092 on the typical sale in 2021, up 45 percent from $64,931 in 2020 and up 71 percent from $55,000 two years ago. Profits rose in more than 90 percent of housing markets with enough data to analyze and the latest figure, based on median purchase and resale prices, marked the highest level in the United States since at least 2008. The $94,092 profit on the median-priced home sale in 2021 represented a 45.3 percent return on investment compared to the original purchase price, up from 33.6 percent last year and from 30.6 percent in 2019. The latest profit margin also stood out as the largest since at least 2008. Both raw profits and ROI have improved nationwide for 10 straight years. Moreover, last year's gain in ROI – up nearly 12 percentage points – was the biggest annual increase since 2013. Profits shot up as the national median home price rose 16.9 percent in 2021 to $301,000, another annual record. The combination of rising prices and profits came during a year when a decade-long boom in the national housing market steamed ahead both because of and in spite of the Coronavirus pandemic that caused widespread economic damage in 2021 and continued to threaten a recovery that began to took hold in 2021. A surge of buyers financially unscathed by the pandemic continued flooding the market throughout 2021. They were driven heavily by a combination of historically low interest rates and a desire by many households to trade congested virus-prone areas for the perceived safety and wider spaces of a single-family home and yard. As they chased a tight supply of homes for sale, prices spiked and so did seller profits. A few signs that prices could flatten out in 2022 emerged late last year in the form of declining affordability, lower investor profits and rising foreclosure activity. That was layered over rising inflation and likely increases in mortgage rates this year. But the current imbalance in demand and supply suggests that there is room for at least some additional price gains. "What a year 2021 was for home sellers and the housing market all around the U.S. Prices went through the roof, kicking profits and profit margins up at a pace not seen for at least a decade. All that happened as the virus pandemic raged on, which actually helped drive the increases instead of stifle them," said Todd Teta, chief product officer at ATTOM. "Households that escaped job losses from the pandemic dove into the market, in large part as a response to the crisis. And the rising demand led the market boom onward. No doubt, there are warning signs that the surge could slow down this year. But 2021 will go down as one of the greatest years for sellers and one of the toughest for buyers." Among 173 metropolitan statistical areas with a population greater than 200,000 and sufficient sales data in 2021, those in western states continued to reap the highest returns on investment, with concentrations on or near the West Coast. The West region had 16 of the 20 metro areas with the highest ROIs on typical home sales last year, led by Boise, ID (121.8 percent return on investment); Spokane, WA (86.5 percent); Bremerton, WA (82.7 percent); Prescott, AZ (81.2 percent) and Salem, OR (81.2 percent). Prices rise at least 10 percent in three-quarters of the country as most markets again hit new highs The U.S. median home price increased 16.9 percent in 2021, hitting an all-time annual high of $301,000. The annual home-price appreciation in 2021 outpaced the combined increases of 9.5 percent in 2020 plus 5.9 percent in 2019. Since 2011, when the U.S. housing market was mired in the aftermath of the Great Recession of the late 2000s, the national median home price has risen 109 percent. The latest price spike came as more than 5.7 million single-family houses and condominiums sold in 2021, the highest number since at least 2005. All but four of the 173 metropolitan statistical areas with a population of 200,000 or more and sufficient home price data in 2021 saw median prices increase from 2020 while 124 saw prices jump at least 10 percent. Those with the biggest year-over-year increases in median home prices were Worcester, MA (up 39.6 percent); Barnstable, MA (up 39.2 percent); Boston, MA (up 28.8 percent); Boise, ID (up 27.2 percent) and Phoenix, AZ (up 26 percent). Aside from Boston and Phoenix, the largest median-price increases in metro areas with a population of at least 1 million in 2021 came in Austin, TX (up 25.4 percent); Nashville, TN (up 22.2 percent) and Las Vegas, NV (up 21.5 percent). Home prices in 2021 reached new peaks since the Great Recession in 168 of the 173 metros analyzed (98 percent), including New York, NY; Los Angeles, CA; Chicago, IL; Dallas, TX, and Houston, TX. The four metro areas among the 173 where median prices dropped in 2021 were Gulfport, MS (down 4.9 percent); Peoria, IL (down 1.8 percent); Beaumont, TX (down 1.4 percent) and Kansas City, MO (down 0.7 percent). The smallest increase among the 173 metros was in Fort Wayne, IN (up 1.8 percent). Profit margins up in almost 90 percent of nation Profit margins on typical home sales rose from 2020 to 2021 in 150 of the 173 metro areas with sufficient data to analyze (87 percent). The largest increases in investment returns came in Salisbury, MD (margin up 267.2 percent); Lafayette, LA (up 227.4 percent); Montgomery, AL (up 195.4 percent); Mobile, AL (up 179.9 percent) and Augusta, GA (up 167.7 percent). Among metro areas with a population of at least 1 million in 2021, the largest ROI increases from 2020 to 2021 were in Raleigh, NC (ROI up 80.6 percent); Oklahoma City, OK (up 64.4 percent); Virginia Beach, VA (up 62.6 percent); Washington, DC (up 60.2 percent) and Chicago, IL (up 59.4 percent). The biggest decreases in investment returns in 2021 came in Kansas City, MO (ROI down 33.2 percent); Gulfport, MS (down 23.3 percent); Harrisburg, PA (down 22.8 percent); Columbus, GA (down 20.4 percent) and Myrtle Beach, SC (down 17.8 percent). Aside from Kansas City, metro areas with a population of at least 1 million and declining profit margins in 2021 included Los Angeles, CA (down 11.9 percent); Houston, TX (down 11.5 percent); Cleveland, OH (down 11.4 percent) and Las Vegas, NC (down 10.4 percent). Homeownership tenure dips to nearly 10-year low Homeowners in the U.S. who sold in the fourth quarter of 2021 had owned their homes an average of 6.14 years, down from 6.34 years in the previous quarter and from 8.03 years in the fourth quarter of 2020. The latest figure represented the shortest average home-seller tenure since the first quarter of 2012. Average seller tenures were down, year over year, in 102, or 95 percent, of the 107 metro areas with a population of at least 200,000 and sufficient data. The biggest declines in average seller tenure from the fourth quarter of 2020 to the fourth quarter of 2021 were in Lakeland, FL (down 79 percent); Tucson, AZ (down 54 percent); Cleveland, OH (down 49 percent); Knoxville, TN (down 47 percent) and Torrington, CT (down 46 percent). The longest tenures for home sellers in the fourth quarter of 2021 were in Bellingham, WA (10.03 years); Manchester, NH (9.87 years); Kahului-Wailuku, HI (9.71 years); Rockford, IL (9.27 years) and Lake Havasu City, AZ (8.33 years). Cash sales hit six-year high in 2021 Nationwide, all-cash purchases accounted for 30.3 percent, or one of every three single-family house and condo sales in 2021 – the highest level since 2015. The latest figure was up from 22.8 percent in 2020 and from 25 percent in 2019, although still off the 38.5 percent peaks in 2011 and 2012. Among 156 metropolitan statistical areas with a population of at least 200,000 and sufficient cash-sales data, those where cash sales represented the largest share of all transactions in 2021 were Detroit, MI (59.8 percent of sales); Macon, GA (54.1 percent); Flint, MI (53.7 percent); Buffalo, NY (52.1 percent) and Salisbury, MD (48.8 percent). Lender-owned foreclosure purchases in U.S. at lowest level in at least 16 years Foreclosure sales to lenders accounted for just 1.4 percent, or one of every 69 single-family home sales in 2021 – the lowest level since at least 2005. The 2021 figure was down from 3.5 percent of sales, or one in 29, in 2020 and 5.1 percent, or one in 20, in 2019. States where lender-purchased (REO) foreclosure sales comprised the largest portion of total sales in 2021 were Illinois (3.5 percent of sales), Michigan (2.4 percent), Maryland (2.4 percent), New Jersey (2 percent) and West Virginia (2 percent). Institutional investing at eight-year high Institutional investors nationwide accounted for 6.9 percent, or one of every 14 single-family home and condo sales in 2021 in the U.S., the highest level since 2013. The latest figure was up from 2.7 percent in 2020 and 3.6 percent in 2019. Among 190 metropolitan statistical areas with a population of at least 200,000 and sufficient institutional-investor sales data, those with the highest levels of institutional-investor transactions in 2021 were Atlanta, GA (19.5 percent of sales); Jacksonville, FL (18.8 percent); Charlotte, NC (18.6 percent); Memphis, TN (16.8 percent) and Phoenix, AZ (16.3 percent). FHA sales at lowest level in 14 years Nationwide, buyers using Federal Housing Administration (FHA) loans accounted for 8.4 percent, or one of every 12 single-family house and condo purchases in 2021. That was down from 11.9 percent in 2020 and from 12 percent in 2019 to the lowest point since 2007. Among 190 metropolitan statistical areas with a population of at least 200,000 and sufficient FHA- buyer data in 2021, those with the highest share of purchases made with FHA loans were McAllen, TX (19.2 percent of sales); Hagerstown, MD (18.1 percent); Bakersfield, CA (17.9 percent); El Paso, TX (17.7 percent) and Yuma, AZ (17.7 percent). Report methodology The ATTOM U.S. Home Sales Report provides percentages of REO sales and all sales that are sold to investors, institutional investors and cash buyers, at state and metropolitan statistical area. Data is also available at the county and zip code level upon request. The data is derived from recorded sales deeds, foreclosure filings and loan data. Statistics for previous quarters are revised when each new report is issued as more deed data becomes available. About ATTOM ATTOM 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 real estate data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 20TB 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, property data APIs, real estate market trends, property reports and more. Also, introducing our newest innovative solution, that offers immediate access and streamlines data management – ATTOM Cloud.
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Housing Markets at Risk from Pandemic Downturns Concentrated in New Jersey, Illinois and California
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Realtor.com Forecasts the Best Markets for First-Time Homebuyers in 2022
Struggling to buy your first home? Try Magna, Utah; Chalco, Neb. or Mauldin, S.C., where young homebuyers have a better shot at success SANTA CLARA, Calif., Jan. 10, 2022 -- With 2022 shaping up to be another challenging year for hopeful homebuyers, Realtor.com ran the numbers to find the best markets for people looking to buy their first home this year. The first annual Best Markets for First-Time Homebuyers Report predicts the cities and towns with the best combination of quality of life and affordability that young homebuyers are looking for. What is it that makes these markets great for first-time homebuyers? They have strong job markets, short commute times, plenty of places to eat and drink, a younger population, affordability, and more homes to choose from. The 2022 top 10 markets, in ranked order, are: Magna, Utah, Chalco, Neb., Mauldin, S. C., Beech Grove, Ind., Portsmouth, Va., Cottage Grove, Wis., Grimes, Iowa, Kuna, Idaho, Ferndale, Mich. and Maitland, Fla. "Buying a first-home is always a challenging undertaking, and it's been an especially tough couple years for first-time buyers, many of whom are struggling to find a home that's within their budget or win in a competitive bidding situation," said Realtor.com® Chief Economist Danielle Hale. "With this in mind, and the fact that remote work has given people more flexibility in where they live, we wanted to identify markets where first timers have a chance to become homeowners and find a great quality of life." Here are some of the reasons these markets are attractive to first-time homebuyers: More homes to choose from – The best markets boast almost twice the number of homes for sale than the national average, in 2021 these markets had 72.9 active listings per 1,000 households compared to the national rate of 44.9. Buyers looking for lots of options should check out Kuna, Idaho, which has the most choice on the list with 160 active listings per 1,000 households. Lots of young people – The 10 best markets for first-time homebuyers all have a younger population than the country overall. Specifically, these areas have an average of 15.2% of residents who are between the ages of 25-34 years old compared to 13.5% of the country overall. The youngest city on the list is Maitland, Fla. where you'll find that 17.5% of the population are young adults. Plenty to eat and drink – Lifestyle is important to a lot of first-time homebuyers and the best markets also include plenty of options for a night out on the town nearby. Our top places for first time homebuyers are located in metros that have an average of 5.3 food and drink establishments per 1,000 households in the broader metro area, higher than other affordable places on our list, which average 5.0. Foodies can head to Magna in the Salt Lake City metro area, which has the most spots to dine out or grab a drink at 5.8 per 1,000 households. More affordable homes – Sticking to a budget can be tricky for many first-time homebuyers, but the best markets have options for the cost-conscious. By comparing the typical home list price to the average income for young adults, Realtor.com® determined that the home-price-to-income ratio in the best markets (3.9) was much lower than the national rate (5.0). Home shoppers who are looking for affordability can head to Chalco, Neb. or Ferndale, Mich., which offer the most affordability on the list. Lots of good jobs – A healthy job market is important when finding a place to settle down, and the best markets are in metro areas that have lots of jobs to offer. These metro areas have a forecasted unemployment rate of just 2.7%, well below the national average of 3.6%. If job selection is at the top of the wish-list, buyers can check out Chalco, Neb. in the Omaha metro area and Cottage Grove, Wis. in the Madison metro area which both have a forecasted unemployment rate of just 2.2%. Strong local housing markets – All of the cities on the list are located within metro areas that are forecasted to have strong home sales and price growth. Sales in these surrounding metro areas are projected to grow at 10.2% in 2022, much faster than the national average of 6.6%. Prices are expected to rise by 5.4%, which is significantly higher than the national average rate of 2.9%. Magna, Utah, which is in the Salt Lake City metro, has the highest expected sales growth rate of 15.2% and the highest expected price growth of 8.5%. Shorter commutes – No one wants to spend hours a day in the car or on a train, and the best markets offer jobs that are close to home. In fact, the average commute time in these markets is 26 minutes – that's 4 minutes faster than the national average. If you're looking for a short commute, try Grimes, Iowa, where locals typically get to work in just 23 minutes. First-time homebuyers can visit Realtor.com® to learn more about the buying process, find out how much they can afford, and even get connected to a lender to get pre-approved for a mortgage. And to stay competitive in this fast-moving market, shoppers can set a price alert so they know as soon as a home that fits their wish list hits the market and use Realtor.com®'s collaborate and share features to quickly get feedback from friends and family. Realtor.com® 2022 10 Best Markets for First-Time Homebuyers: 1. Magna, Utah Coming in at No. 1, Magna, Utah is located near Salt Lake City, which was named Realtor.com®'s No. 1 Top Market for 2022. Magna's easy access to the lakes and mountains are a huge draw for outdoor enthusiasts and its close proximity to the city offers lots of jobs without a long commute. New home construction is booming in Magna, providing more options for home shoppers. The area has a fast-growing tech industry and is also an attractive destination for nature lovers who have the ability to work remotely. As such, it has seen a large influx of out-of-state transplants since the pandemic began. 2. Chalco, Neb. In the No. 2 spot, Chalco, Neb., is located just outside of Omaha. The Omaha area is home to 4 Fortune 500 companies including Berkshire-Hathaway, offering lots of job opportunities. Locals enjoy leisure time at the Chalco Hills Recreation Area, a popular destination for hiking, biking and kayaking. There are also 9 universities and colleges in the area, including University of Nebraska Omaha and Creighton University. 3. Mauldin, S. C. At No. 3 on the list is Mauldin, South Carolina, where first-time buyers will find small town southern charm and natural attractions combined with a short commute to Greenville's downtown area, airport and strong jobs market. Residents have plenty to do in Mauldin itself, from its Sports and Cultural Centers to a booming restaurant scene, including local favorites Wholly Smoke BBQ and Dillard's Ice Cream. For young families, Mauldin also has top-rated schools like Monarch Elementary. 4. Beech Grove, Ind. Landing at the No. 4 spot is Beech Grove, Ind. Known for a strong sense of community, Beech Grove is a city in its own right – literally – as the market is an "excluded city" with a separate government and police department from the nearby Indianapolis metro area. Home shoppers looking for a sense of nightlife will find plenty of restaurants in the Main Street downtown area, 24/7 bowling at Beech Grove Bowl and local craft breweries like Scarlet Grove. For families, Beech Grove has good public schools like Acton Elementary, as well as top-rated private schools, including Cathedral High. 5. Portsmouth, Va. Taking the No. 5 place on the list is Portsmouth, Va. Located just across the Elizabeth River from Norfolk, Va., this little town offers affordable home prices at $215,000 – well below the national average of $332,000 – and is within driving distance of a variety of outdoor activities such as water sports, boating, skiing, snowboarding, and hiking. Home to the Norfolk Naval Shipyard and The U.S. Coastguard Portsmouth, it has a large military population and offers many job opportunities in defense and related industries. Norfolk Southern and NASA Langley Research Center are two big employers in the area. 6. Cottage Grove, Wis. The sixth best market for first-time homebuyers is Cottage Grove, Wis. Just 15 miles outside Madison, this hidden gem offers residents close proximity to city jobs with a slower pace of life. The town itself offers a variety of charming shops and restaurants and is within a few minutes of the two prominent golf courses in the area – The Oaks Golf Course and Door Creek Golf Course. When looking for nightlife, residents turn to Madison for its restaurant and bar scene and daytime activities such as boating on Lake Mendota and Lake Monona and visiting the popular Olbrich Botanical Gardens. 7. Grimes, Iowa Landing in the No. 7 spot, Grimes, Iowa is located just west of Des Moines. The area's low cost of living and strong job market make it an attractive spot for young people. Many residents are pleased to learn that they can buy a home for not too much more than the cost of renting. Popular activities include cheering on the Iowa State University football and basketball teams. Grimes is just a short trip to Des Moines where locals can enjoy the arts and many cultural activities. Those looking to start a family will appreciate the highly rated schools such as Webster Elementary School. 8. Kuna, Idaho No. 8 on the list is Kuna, Idaho, located just outside of Boise. Locals love the area's great access to outdoor activities, beautiful surroundings and friendly people. While the Boise housing market has been booming, young homebuyers are likely to have better luck in Kuna than some of the surrounding towns. The area experienced an influx of transplants from areas like Calif. and Wash. who are drawn to the lower cost of living, great quality of life and good schools including Falcon Ridge Public Charter. 9. Ferndale, Mich. In 9th place is Ferndale, Mich. This city is attractive to first-time buyers because of its diversity, vibrant downtown area and great restaurants. It is well-known to locals for its thriving LGBTQ+ community. Ferndale's proximity to Detroit and low price point make it attractive to first-time buyers looking to break into the housing market. Ferndale has recently experienced an influx of buyers from nearby states like Illinois and Ohio who appreciate the low cost of living. 10. Maitland, Fla. Rounding out the top 10 is Maitland, Fla. Located near Orlando, Maitland is home to a number of popular lakes and offers a wide range of homes, many of which are on large lots. The town's good schools, such as Dommerich Elementary, are a draw for first-time homebuyers who often have young children. During the pandemic the area saw a lot of transplants from places such as Calif., N.Y. and Boston, many of whom are taking advantage of remote work – the area is also home to a number of workers from Disney and Amazon. Realtor.com® Best Markets for First-Time Homebuyers Ranked *Methodology Realtor.com® ranked 1,112 cities and places with a population of more than 5,000 based on the following criteria, capping the list at one city per metro to allow for a greater diversity of options across the country: The share of 25-34 year-olds in the local population. The availability of homes for sale, measured by active listings per 1,000 existing households. A measure of affordability, estimated by the ratio of listing prices to gross incomes of 25-34 year-olds in each city. A measure of job opportunities, estimated by the unemployment rate of each city's surrounding metro area. The average commute time to work. A measure of the amenities in an area, estimated by the count of food and drink establishments per 1,000 households in the city's surrounding metro area. Forecasted metro home sales and home price growth in 2022. The inventory of homes for sale and local median listing prices are from Realtor.com® December 2020 to November 2022 listing data. The cities and towns are defined as postal codes mapped to Census Designated places and reflect approximate but not true city or town boundaries. The population, household count, household income, and average commute time data were sourced from 2021 and 2022 Claritas estimates based on Census Bureau data. The stated forecasted unemployment rates are Moody's Analytics projections of U.S. Bureau of Labor Statistics Local Area Unemployment Statistics. Counts of food and beverage establishments are from 2018 County Business Patterns data. About Realtor.com® Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 25 years ago, and today through its website and mobile apps offers a marketplace where people can learn about their options, trust in the transparency of information provided to them, and get services and resources that are personalized to their needs. Using proprietary data science and machine learning technology, Realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, Realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com®.
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ShowingTime Data Reveals Impressive Year-Over-Year Demand Across the U.S. as Holiday Home Showing Traffic Heats Up
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Leading Economic and Housing Experts Predict Multiple Fed Interest Rate Hikes, Slowing Inflation and Home Price Growth in 2022
NAR unveils top 10 housing market "hidden gems" for 2022 during association's Real Estate Forecast Summit WASHINGTON (December 15, 2021) -- Expect slower housing price appreciation, easing inflation and rising interest rates in 2022, according to a survey of more than 20 top U.S. economic and housing experts. Lawrence Yun, NAR chief economist and senior vice president of research, unveiled the consensus forecast today during NAR's third annual year-end Real Estate Forecast Summit. For 2022, the group of experts predicted that annual median home prices will increase by 5.7%, inflation will rise 4% and the Federal Open Market Committee will twice increase the federal funds rate by 0.25%. "Overall, survey participants believe we'll see the housing market and broader economy normalize next year," Yun said. "Though forecasted to rise 4%, inflation will decelerate after hefty gains in 2021, while home price increases are also expected to ease with an annual appreciation of less than 6%. Slowing price growth will partly be the consequence of interest rate hikes by the Federal Reserve." Yun forecasts U.S. GDP to grow at the typical historical pace of 2.5%, barring any major, widespread transmission of the omicron COVID-19 variant. He expects the 30-year fixed mortgage rate to increase to 3.5% as the Fed raises interest rates to control inflation but noted this is lower than the pre-pandemic rate of 4%. The housing market performed better than it has in 15 years in 2021, with an estimated 6 million existing-home sales. As mortgage rates tick up slightly, Yun predicts existing-home sales will decline to 5.9 million in 2022. He also forecasts a modest increase in housing starts to 1.67 million as the pandemic's supply chain backlogs subside. Top 10 Housing Market "Hidden Gems" in 2022 NAR identified 10 housing markets as "hidden gems" that are expected to experience stronger price appreciation relative to other markets in 2022. In alphabetical order, the markets are as follows: Dallas-Fort Worth, Texas Daphne-Fairhope-Farley, Alabama Fayetteville-Springdale-Rogers, Arkansas-Missouri Huntsville, Alabama Knoxville, Tennessee Palm Bay-Melbourne-Titusville, Florida Pensacola-Ferry Pass-Brent, Florida San Antonio-New Braunfels, Texas Spartanburg, South Carolina Tucson, Arizona "The housing sector performed spectacularly in 2021 in many markets, with huge gains achieved in places like Austin, Boise and Naples," Yun said. "Several markets did reasonably well in 2021, but not as strong as the underlying fundamentals suggested. Therefore, in 2022, these ‘hidden gem' markets have more room for growth." NAR considered a market a hidden gem based on two categories: 1) if the market's ratio of median home price to median family income is in the lower half of the 379 metro areas analyzed and 2) if the following seven indicators reflecting the strength of housing demand for that market are in the upper half of metro areas – wage growth, job growth, ratio of the change in population to the sum of housing permits, population growth, net domestic migration, percentage of the population ages 25 to 44, and the percentage of households with broadband service. NAR's top 10 list only includes metro areas with populations of at least 200,000. To view NAR's Top 10 Housing Market Hidden Gems report, click here. The National Association of Realtors® is America's largest trade association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industries.
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Looking for Space and Willing to Pay for It: Realtor.com Survey Shows Shifting Priorities for First-Time Homebuyers
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Realtor.com Forecasts the Top Housing Markets of 2022
Salt Lake City, Utah; Boise, Idaho and Spokane, Wash. are anticipated to see the highest home price appreciation and sales growth in 2022 SANTA CLARA, Calif., Dec. 7, 2021 -- Driven by strong local economies, tech sector job growth and relative affordability, Realtor.com forecasts its Top Housing Markets of 2022 will lead the nation in listing price appreciation and home sales growth next year. Concentrated in the Mountain West, Midwest and New England, this year's top 10 in rank order are: Salt Lake City, Utah, Boise, Idaho, Spokane, Wash., Indianapolis, Ind., Columbus, Ohio, Providence, R.I., Greenville, S.C., Seattle, Wash., Worcester, Mass. and Tampa, Fla. (See below for full ranking of the 100 largest U.S. markets). Based on the 2022 Realtor.com® local housing forecast, the areas on this list are expected to see the strongest combined growth in home sales and listing prices among the 100 largest U.S. metros. In fact, home sales across the top 10 markets are forecasted to grow by 11.6% year-over-year in 2022, which is nearly two-times the national home sales growth projection (6.6%). Additionally, average home prices in the top 10 are expected to increase 7.4% – more than double the national pace (+2.9%). "This year's list spans a variety of geographic hotspots, reflecting how pandemic trends like the rise in remote work are enabling many homebuyers to explore new areas where their budgets stretch further. The top 10 markets share a number of commonalities that are driving demand from millennial remote workers to retirees alike, including those from major coastal metros," said Realtor.com® Chief Economist Danielle Hale. "With thriving local economies, low unemployment rates, convenient access to the outdoors and relatively affordable housing, many of the top markets offer the best of both small town quality of life and big city job security. Home shoppers in these areas may still be able to find good value even as listing prices are expected to climb in 2022, but getting a leg up on the competition will be key. For buyers with more flexible timelines – such as those making a move from a big city – offering a couple extra months on the closing date could sweeten the deal for sellers who also need to buy their next home." Key trends expected to drive growth in housing hotspots Tech jobs without the crowds: Homebuyers can find more breathing room in this year's top housing markets relative to the 100 largest U.S. metros, at an average 60 fewer people per square mile, without having to sacrifice big city job opportunities. A common trend among the top 10 markets is a strong job market, with a lower average unemployment rate (4.1%) than the top 100 overall (5.1%) and higher average job growth (3.4% vs. 2.5%). Additionally, half of the top 10 have a higher share of STEM jobs than the 100 metro average (6.5%), at over 7% each in emerging hubs like Salt Lake City, Boise and Columbus, as well as in more traditional tech city, Seattle. Magnets for big city remote workers: On top of having strong local job markets, the top 10 markets are attracting remote workers. In fact, LinkedIn data shows the share of job seekers applying for remote work roles in metros like Boise and Spokane is at least 6.8% higher than the national average. With the rise in workplace flexibility during the pandemic, these workers are likely looking for a chance to escape city life while continuing to make a big city salary. In six of the top 10 markets, over half of recent home shopping traffic on Realtor.com® originated from outside the market, including from major metros like New York, San Francisco and Boston. Hotspots for both millennials and retirees: With more than 45 million Americans at typical first-time buying ages, millennials will be key drivers of 2022 housing demand nationwide and the top markets are no exception. In fact, those aged 25-34 represent a slightly higher share of the population in the areas on this year's list (15.6%) compared to the top 100 (14.9%). Top markets Seattle, Columbus and Salt Lake City have an 18% share of younger millennials each. At the same time, many of these areas are popular retirement destinations, which means older generations will also play a key role in these markets. In four of the top 10, seniors aged 65-plus account for nearly one-third of households, led by Tampa at 32%. Relatively affordable home prices that are projected to rise: When compared to the 100 largest U.S. metros, median listing prices in the top 10 markets are an average of 8.6% higher and 2021 sales prices are projected to rise at a double-digit pace over 2020 (+14.1%). Despite this, half still have more affordable prices than the typical U.S. home, and the other half have lower-prices than key big-city feeder markets of home shoppers in the top 10. Additionally, because homes in these markets are relatively larger than the 100-metro average, by as much as 297 square feet in an area like Spokane, some buyers could potentially still find more house for their money. Even so, with top 10 home prices expected to rise 7.4% in 2022, affordability will be increasingly important to buyers in these areas. Realtor.com® 2022 Top Housing Markets 1. Salt Lake City, Utah 2021 median home price1: $564,062Forecasted 2022 home sales change: +15.2%Forecasted 2022 home price change: +8.5%Forecasted 2022 combined sales and price change: +23.7% Salt Lake City took the No. 1 spot on this year's top market list. Located on the Northern side of the state, Salt Lake is an outdoor enthusiast's dream with its close proximity to some of the best skiing, hiking, fishing, mountain biking in the country. Since the beginning of the pandemic, remote work has prompted an influx of transplants from California and Colorado looking for affordable homes, low cost of living and good schools. Lehi, Utah, also known as Silicon Slopes for its booming tech industry, is just 25 miles away from Salt Lake and home to SanDisk, Adobe and eBay facilities. 1 For the 12-month period ending November 30, 2021 2. Boise, Idaho 2021 median home price: $503,959Forecasted 2022 home price change: +17.9%Forecasted 2022 home sales change: +7.9%Forecasted 2022 combined sales and price change: +20.8% Boise, Idaho is No. 2 on Realtor.com®'s top markets of 2022 list. Also, driven by a combination of remote work and a desire for outdoor activities such as hiking, skiing, snowshoeing, Boise has become a relocation destination for California transplants. It has a booming job market with employers like Micron Technology, Albertsons, and Boise State University. Great restaurants, bars, and shops line its vibrant downtown area which draws a crowd of all ages and walks of life. The Boise River Greenbelt runs through the east side of the city and includes a series of tree-dotted trails and parks hugging the water's edge. 3. Spokane, Wash. 2021 median home price: $419,803Forecasted 2022 home sales change: +12.8%Forecasted 2022 home price change: +7.7%Forecasted 2022 combined sales and price change: +20.5% Located near the Idaho border, Spokane takes the No. 3 spot on this year's list. With the Spokane River running through the city, residents can take part in an abundance of waterfront activities, while less rain and more sun than nearby Seattle means the best of warmer months and winter fun. With easy access to amenities, restaurants and nightlife in downtown areas like Riverside, Spokane offers homebuyers both the luxuries of a bigger city and a relatively low cost of living, including more affordable housing, than nearby Seattle, Portland and Tacoma. It has a concentration of well-ranked public schools, including Libby Center and Wilson Elementary, making it an attractive option for young families – perhaps those settling down after attending one of the many surrounding universities like Gonzaga, or Whitworth. 4. Indianapolis, Ind. 2021 median home price: $272,401Forecasted 2022 home sales change: +14.8%Forecasted 2022 home price change: +5.5%Forecasted 2022 combined sales and price change: +20.4% Like many of the cities on Realtor.com®'s 2022 ranking, No. 4 market Indianapolis has a small town feel despite being the 15th largest U.S. city. The market has an 8% lower cost of living than the national average, including low taxes, as well as the ability to get pretty much anywhere in the entire city within about an hour. It is also home to the top-rated Indianapolis Colts and annual big-draw sporting events like the Indianapolis 500 and the NCAA tournaments, and multiple universities like Indiana-Purdue and Butler. With relatively spacious homes and affordable prices, Indianapolis is drawing in buyers who are finding a good sense of community in areas like Carmel, Zionsville and Noblesville, as well as property investors. 5. Columbus, Ohio 2021 median home price: $298,523Forecasted 2022 home sales change: +13.7%Forecasted 2022 home price change: +6.3%Forecasted 2022 combined sales and price change: +20.0% Coming in at No. 5, Columbus is Ohio's capital and its fastest-growing city. The market is attracting a number of transplants from more expensive areas in the West, a trend that has accelerated with the rise in remote work. Also home to Realtor.com®'s No. 6 Hottest ZIP Code in 2021 (ZIP 43228 Lincoln Village), people are drawn to Columbus's booming job market, low cost of living and top-rated schools like New Albany High. Large employers in the area include L Brands, the parent company of Victoria's Secret and Bath & Body Works, as well as Nationwide Insurance. Locals enjoy cheering on the Ohio State Buckeyes and visiting parks like Hoover Reservoir and Alum Creek for water sports. 6. Providence, R.I. 2021 median home price: $419,813Forecasted 2022 home sales change: +8.1%Forecasted 2022 home price change: +9.5%Forecasted 2022 combined sales and price change: +17.7% Providence has landed in the No. 6 spot on this year's list. Rhode Island's capital city is known for its hospitals and universities, being home to eight of each, including Ivy League Brown University. Providence also has great public schools including Classical High School. Residents enjoy the city's central location with easy access to Boston and New York without the high price tags. Providence is also known for great restaurants, nightlife and art, including its famous WaterFire installation. 7. Greenville, S.C. 2021 median home price: $305,078Forecasted 2022 home sales change: +11.4%Forecasted 2022 home price change: +5.7%Forecasted 2022 combined sales and price change: +17.1% Greenville, at No. 7, offers low income and property taxes, small-town flavor, incredible weather and access to the great outdoors, with multiple local spots for walking, kayaking and hiking. In the center of downtown Greenville, Falls Park is host to restaurants, breweries and shopping, and offers spectacular views of Reedy River Falls from the Liberty Bridge. Greenville offers easy access to popular vacation destinations like the Smoky Mountains, Hilton Head and Myrtle Beach. While the area is experiencing lots of new construction growth, home prices are still relatively affordable. Plus, Greenville has its own booming economy, including big employers like BMW and Michelin, and a variety of public, charter, private and religious schools. 8. Seattle, Wash. 2021 median home price: $666,754Forecasted 2022 home sales change: +9.6%Forecasted 2022 home price change: +7.5%Forecasted 2022 combined sales and price change: +17.1% Landing on the list of homebuyer hotspots for the second year in a row is Seattle, which has seen an influx of Californians. As the headquarters of big companies like Amazon, Starbucks and Expedia, many new residents have relocated to Seattle for high-paying job opportunities during the pandemic. Perhaps making up for a higher-than-average cost of living, the "Emerald City" offers great weather across seasons and easy access to nature, with multiple lakes, islands, the Puget Sound, and even ski resorts and nearby wine country. While the Seattle suburbs are drawing in buyers who want more space, schools across the region are top notch. Plus, the city boasts the top-ranked University of Washington. 9. Worcester, Mass. 2021 median home price: $397,188Forecasted 2022 home sales change: +8.4%Forecasted 2022 home price change: +8.2%Forecasted 2022 combined sales and price change: +16.6% At No. 9 on this year's list is Worcester, the second largest city in Mass and home to Realtor.com®'s No. 7 Hottest ZIP Code in 2021 (ZIP 01757). At the heart of the state, Worcester offers easy access to interstate highways via the Mass Pike as well as a commuter train to Boston, as well as relatively affordable housing, top-rated schools and easy access to the outdoors. The city is also going through a massive redevelopment surrounding the opening of the Worcester Red Sox's Polar Park. Combined with a vibrant cultural and arts scene and a strong jobs market fueled by local employers like UMass Medical School, Worcester is attracting young buyers, including graduates from surrounding colleges like Clark and Holy Cross. 10. Tampa, Fla. 2021 median home price: $335,814Forecasted 2022 home sales change: +9.6%Forecasted 2022 home price change: +6.8%Forecasted 2022 combined sales and price change: +16.4% Rounding out Realtor.com®'s 2022 top markets is Tampa at No. 10. Located along Florida's Gulf Coast, Tampa's beautiful beaches, great weather and year-round living make it a popular destination for vacationers and retirees. But Tampa also has plenty to offer young professionals and families, from good schools and low-cost of living, including no state income taxes, to relatively affordable housing and plentiful new construction within reasonable commuting distance of the downtown area. With the rise of remote work during the pandemic, Tampa real estate activity is booming as buyers migrate from big cities like New York and Chicago. Realtor.com® 2022 Housing Forecast – 100 Largest U.S. Metros (Ranked) *Methodology Realtor.com®'s model-based forecast uses data on the housing market and overall economy to estimate 2022 values for these variables for the 100 largest U.S. metropolitan statistical areas by population size. These markets are then ranked by combined forecasted growth in home prices and sales. In cases of a tie, forecasted year-over-year sales growth was used as a tiebreaker. About Realtor.com® Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 25 years ago, and today through its website and mobile apps offers a marketplace where people can learn about their options, trust in the transparency of information provided to them, and get services and resources that are personalized to their needs. Using proprietary data science and machine learning technology, Realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, Realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com.
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Realtor.com 2022 Housing Forecast Reveals a Whirlwind Year Ahead for Buyers, Especially First-Timers
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34% of Recent Movers Live in Single-Income Households, Up From 29% Before the Pandemic
More than three-quarters of respondents report feeling happier after relocating SEATTLE, Nov. 8, 2021 -- More than one-third (34%) of people who moved during the coronavirus pandemic live in a home where only one adult has a full-time job, according to a new report from Redfin, the technology-powered real estate brokerage. By comparison, just 29% lived in a single-income household before the pandemic. This is based on an August 2021 Redfin survey of 1,023 U.S. residents who have moved to a new home since March 2020. As the portion of people living in single-income households increased, the share living in dual-income households declined. Slightly more than half (58%) of the recent movers Redfin surveyed live in a home with two adults working a full-time job, down from 62% before the pandemic. "While some people chose to move down to a single-income household, others had no choice," Redfin Deputy Chief Economist Taylor Marr said. "Thousands of Americans lost their jobs during the pandemic, and scores of parents had to leave the workforce when daycares and schools shut down. Most workers are rethinking where their careers fall on life's priority list." Remote work during the pandemic also enabled many families to relocate to more affordable places, where it's often more feasible to live in a home with just one income. In the third quarter, 30% of Redfin.com users were looking to move to a new metro area, up from 26% before the pandemic. Among the most popular destinations were Atlanta, San Antonio and Tampa, FL—all metros with median home sale prices below the national level. "A lot of the families that were able to move down to one income during the pandemic were high earners," Marr said. "High earners tend to have the flexibility to work remotely, which means it's easier for them to relocate to a more affordable place where only one adult needs to work full time. Lower-wage workers who are still required to show up in person, such as restaurant and grocery staff, are less likely to have the opportunity to move." A pandemic retirement boom may have also contributed to the increase in the share of single-income households. The pandemic drove more than 3 million baby boomers into early retirement, according to a study by the Federal Reserve Bank of St. Louis. 83% of Recent Movers Are Happier After Relocating More than three-quarters (83%) of respondents said they are at least a little happier after moving. Just 7% reported being less happy and 11% said their happiness is about the same. Austin, TX has seen an influx of out-of-towners move in during the pandemic. Many of them actually grew up in the area, left for a job, and are now able to come back and live near family, according to local Redfin real estate agent Debbie Newby. "A majority of my buyers today are Texas natives who are thrilled to be coming home," Newby said. "I recently worked with one young couple who had been living in the Bay Area and working in tech. The wife grew up in Austin and wanted to move back to be closer to her family members, one of whom was ill. They bought a home Near Zilker Park in January and are now working remotely. They're ecstatic to be in Austin." While Austin home prices have soared well above the national median during the pandemic, the Texas metro remains more affordable than major coastal hubs including San Francisco and New York. "Most people who move relocate to somewhere less expensive," Marr said. "Moving tends to make people happier because it means they're getting more bang for their buck—frequently in the form of additional space, better weather and schools, or a shorter commute to their workplace." View the full report, including graphs and methodology, here. About Redfin Redfin is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country's #1 real-estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 6,000 people.
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Americans Are Willing to Get Ghoulish to Snag a Home in This Monsterish Market, According to Realtor.com Survey
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The 5 Most Haunted Cities in the U.S.
Plus: See where these cities rank based on Market Risk Indicators when it comes to the probability of a housing price decline IRVINE, Calif., October 25, 2021 -- CoreLogic, the company that brings you the OneHome™ platform, has dug deep into its crypt to unearth the five most haunted cities in the U.S. Discover all the unique property-level insights and innovative features — excluding where the ghosts reside — with connections to everything about a property, community and more with the CoreLogic® OneHome service. October brings ghost tours, stories of paranormal activity and haunted houses. Haunted data is hard to come by as most ghosts tend to be elusive when it comes to taking a census count. That said, some areas generate more ghost stories and sightings than others. Here are five of the most haunted cities in the U.S. New Orleans, Louisiana. Ghosts are said to wander in the city's famous cemeteries, in churches throughout the city, in Jackson Square in the French Quarter and at certain hotels. According to CoreLogic® Market Risk Indicators (MRI*), at 16.4%, New Orleans faces the highest probability on this list of a housing price decline twelve months from now. Savannah, Georgia. While Savannah is known for its lovely Southern charm, the city is also near the top of most lists of haunted cities. Underneath its famous squares are numerous former burial grounds and many hotels and restaurants are visited by people who hope to catch a glimpse of a ghost. Savannah is looking at a 11.5% probability of a housing price decline in twelve months. Portland, Oregon. Portland may be known today for its hipster vibe and craft beer, but the city is also one of the most notoriously haunted places in the U.S. The main location for ghost sightings is the Shanghai Tunnels, which were built in the late 1800s to transport goods in the international port city. Portland has a 11.8% probability of a housing price decline twelve months from now. Washington, D.C. The nation's capital is home to some of the most haunted buildings in the country. The White House is said to be haunted by past presidents and their families from President Lincoln to Abigail Adams. Visitors can book ghost tours at local cemeteries. Of all the cities listed here, Washington D.C. has the lowest probability of seeing a housing price decline in twelve months at just 9.4%. Salem, Massachusetts. Salem is best known for its witch trials in the late 1600s, when people were tried as witches and the "guilty," executed. Those victims are said to continue to haunt the cemeteries, homes and trial sites in the town. Ghost and witch tours are available in the daytime and by candlelight for those who want to explore the town's paranormal activity. You can even take a photography class with tips on how to photograph ghosts. Salem has a 15.3% probability of a housing price decline in twelve months. CoreLogic data is delivering enhanced information and providing more actionable insights in the communities you love. Find out more here. About CoreLogic CoreLogic is a leading global property information, analytics and data-enabled solutions provider. The company's combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.
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October Is Ripe for Homebuyers According to Analysis from ATTOM on Historical Home Sales
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Natural Disaster Threats Are Now Front and Center for Homebuyers
Three in four recent homebuyers report that concern over the threat of natural disasters impacts their housing decisions, according to new Realtor.com survey SANTA CLARA, Calif., Sept. 27, 2021 -- September marks National Preparedness Month, a time when Americans are reminded and encouraged to take steps to prepare for emergencies. For many people, a home is their largest asset and as natural disasters become more common, keeping it and themselves safe is an increasing concern. A new survey from Realtor.com found that 78% of recent home buyers took natural disasters into account when choosing the location of their new home. The survey of 3,026 consumers, which was conducted online by HarrisX in July 2021, found that 62% of homeowners are concerned about the threat of natural disasters, and that number was even higher for recent home buyers (75%) and among millennials (72%). Natural disasters that are most concerning to homeowners include: tornadoes (39%), severe cold or winter storms (38%), floods (35%), hurricanes (29%), earthquakes (21%), wildfires (17%), droughts (11%) and sinkholes (8%). Homeowners in rural and suburban communities were most concerned about tornadoes and severe cold/winter storms, while flooding was a top concern for those in urban areas. "Natural disasters can have enormous impacts on communities and homeowners, and with increased frequency and intensity of weather-related events, National Preparedness Month is a good reminder of how important it is to be prepared," said Realtor.com® Chief Marketing Officer Mickey Neuberger. "Our mission is to help bring people home, but it's also about helping people when their home is damaged or lost after disaster strikes, which is why Realtor.com® recently made a $200,000 commitment to help aid in disaster response efforts." With natural disasters becoming more frequent and severe, nearly half (47%) of consumers are more concerned today about the threat of natural disasters to homeownership compared to five years ago; 44% said their level of concern is unchanged and only 9% feel less concerned. For some, the threat of future natural disasters could impact their decision about whether to move or sell their home. One-third (34%) of surveyed consumers would consider proactively selling their home, moving or both to avoid future natural disasters, while 66% said they aren't considering either. To help buyers make good home buying decisions and increase awareness about a home's flood risks, which are among the most common and costly disasters in the U.S., Realtor.com® was the first listing portal to include flood risk information on for-sale and off-market properties. As of August 2020, all properties on Realtor.com® now display a Flood Factor® – developed by the First Street Foundation – with a score between one (minimal risk) and 10 (extreme risk) that represents its cumulative risk of flooding over a traditional 30-year mortgage. Over the past year, site users have viewed flood information on Realtor.com® more than 150 million times. The feature is heavily viewed on properties in hurricane-prone states like Florida and Texas, as well as in states all along the eastern seaboard. While being prepared can't prevent a disaster it can help homeowners recover faster; when asked how prepared they were for a natural disaster specific to their area, two thirds (68%) of surveyed consumers said they were very or somewhat prepared and less than one third (32%) said they were only somewhat or very unprepared. To bring help and hope to those who are impacted by natural disasters, Realtor.com® has donated $200,000 to the REALTORS® Relief Foundation, a charitable organization dedicated to providing housing-related assistance to victims of disasters. The REALTORS® Relief Foundation, is administered by the National Association of REALTORS®, which covers 100 percent of RRF's administrative costs so that every dollar donated goes directly to disaster relief efforts. Methodology: Realtor.com® commissioned HarrisX to conduct a national survey of consumers. The total sample size was 3,026 adults. The survey was carried out online from July 21-23, 2021. The sampling margin of error of this poll is ±1.8 percentage points. The figures represent a national view of U.S. adults. Results were weighted for age, gender, region, race/ethnicity, and income where necessary to align them with their actual proportions in the population. About Realtor.com® Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, Realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, Realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. 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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NAR Identifies America's Top 10 Commercial Office Markets of 2021
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Student Loan Debt Holding Back Majority of Millennials from Homeownership
WASHINGTON (September 14, 2021) -- Sixty percent of non-homeowning millennials say student loan debt is delaying their ability to buy a home, by far the most affected population, according to a new poll released today by the National Association of Realtors. The findings also show that Americans burdened with high student debt see the impact on their daily lives. They often must choose between investing in their retirement, purchasing a home, getting married, starting a family, or general savings. NAR partnered with Morning Consult on the report The Impact of Student Loan Debt.* "Housing affordability is worsening, leaving future home buyers with student debt at a severe disadvantage," said NAR President Charlie Oppler, a Realtor® from Franklin Lakes, N.J., and the CEO of Prominent Properties Sotheby's International. "Younger Americans shouldn't have to choose between education and homeownership, and NAR continues to pursue policies that ensure the American dream remains available and accessible for those still paying off their college education." The new research also uncovers that only 23% of student loan debtholders understood the costs of attending college before taking out loans. Moreover, 35% of those student loan debt holders did not fully understand their potential for earnings following graduation. According to the report, 51% of all student loan holders say their debt delayed them from purchasing a home. Thirty-six percent of student loan debtholders say student loan debt delayed their decision to move out of a family member's home, a percentage that rises to 52% among Black debtholders. Ultimately, the report shows that 31% of millennials and 28% of Black student debtholders would use their additional funds to purchase a home in the future with no student loan debt. "Aside from just purchasing a home, this report finds that more than half of those with student loan debt have delayed some form of major life choice," Oppler continued. "Student loan debt isn't just seeping into housing affordability. It's also plaguing other aspects of people's lives." To address the growing debt burden, NAR supports a multipronged approach. Financial education should be expanded to aid students as they face decisions about financing their education, while aid programs should be simplified. For those who hold debt, opportunities to consolidate and refinance debt at lower rates will help debtholders lower monthly debt payments, make large purchases, and make wise life choices. Finally, NAR favors expanding tax preferences for employers who assist employees with their student debt as well as tax forgiveness for debtholders who have their debt forgiven or paid off by their employer. NAR has been collecting and examining research during the past eight years to gauge the impact of student loan debt on future homebuyers. The data pattern now affirms that student loan debt is one of the most significant barriers standing between a potential buyer and the ability to purchase a home. Today's new findings build on last year's annual survey of successful homebuyers, Profile of Home Buyers and Sellers, which showed that student loan debt was the most significant factor delaying their ability to save among buyers who had difficulty saving for a down payment. This research found Black homebuyers were more than twice as likely to have student debt than White homebuyers, with a median amount of $10,000 more than White buyers. The Impact of Student Loan Debt poll was modeled off NAR reports from 2016 and 2017, with a narrower scope. The research themes are comparable, but the newest report considers the current federal government stimulus package and how the COVID-19 pandemic has affected debt in our country. The National Association of Realtors® is America's largest trade association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industries. * This poll was conducted by Morning Consult, on behalf of the National Association of REALTORS®, between June 10–16, 2021, among a sample of 1,995 student loan debtholders. The interviews were conducted online. Results from the full survey have a margin of error of +/- 2 percentage points.
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CFPB Report: Renters at Risk as COVID-19 Safety Net Ends
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The Best Home Buying Deals of The Year Are Here, According to Realtor.com
The week of Sept. 12 kicks off the best time to buy and is the optimal week to shop for a home in New York City, Los Angeles, Boston, Denver, Detroit, Minneapolis, and Portland SANTA CLARA, Calif., Sept. 13, 2021 -- The best time to buy a home in America is officially here. Between Sept. 12 and Oct.17, the majority of markets across the country will hit their home buying sweet spot with more homes for sale, lower prices and less buyer competition compared to the average week of the year, according to Realtor.com's Best Time to Buy Report. This week kicks off the season with optimal home buying conditions in New York, Los Angeles, Boston, Denver, Detroit, Minneapolis, and Portland, but the majority (18 markets) won't hit their prime until the week of Oct. 3 (see chart below for optimal weeks by market). Those who buy a home during their market's best time to buy week on average will see 166,000 (31%) more listings than the average week of the year and have an additional 100,000 more new listings to choose from nationwide. They will have 18% less competition from other buyers than the peak and 6% less than the typical week. They could see prices $10,000 (2.6%) below their seasonal high and will have 7 more days, on average, to consider a home before it's gone. "Home prices peaked in the summer, and new listings continue to come on the market helping slow the pace of sales -- which is good news for homebuyers," said Danielle Hale, chief economist, Realtor.com®. "As families across the country focus on getting back into school routines, there are fewer buyers in the market, creating a great opportunity especially for first-time homebuyers to make a purchase with somewhat less competition." Based on an analysis of listing data since 2018, Realtor.com® has found that this time period offers the best balance of market conditions for homebuyers. While the current market is still challenging, especially for first-time homebuyers, the key factors -- available homes and buyers in the market -- align best starting Sept. 12 to reduce prices and competition with the majority of major metro areas hitting their sweet spot by Oct. 17. There will be more homes to choose from Although the year began with extreme inventory shortages, the market began to consistently see more listings this summer adding 100,000 or more new listings in 15 of the last 17 weeks. On average, the best time to buy in each market will mean 166,000 (31%) more active listings than the average week and have an additional 100,000 new listings to choose from nationwide. That is 46% more than the start of the year. The week of Oct. 3, we expect to see 7.2% more active listings than the average week, and 17.6% more than the start of a typical year. If 2021 follows the typical seasonal pattern, there should be around 705,000 listings on the market in October nationwide, which is roughly 100,000 more active listings than during the peak summer season in July. Buyers will face less competition Fall sees a seasonal slowdown partly driven by the opening of schools, as many buyers put their home search on hold when their children return to the classroom. July is typically the peak for homebuyer demand, as measured by views per property on Realtor.com®. The summer has the highest concentration of buyers looking at each home for sale, which translates to competition for buyers looking to lock down a home. On average, the best time to buy in each market will see 18% less competition than the July peak and 6% less than the average week. Prices may begin to dip Prices and affordability remain at the forefront of many buyers' minds, especially after the double-digit price growth earlier in the year. During the best week to buy, homes may be more affordable. During the week of Oct. 3 prices could dip 2.6% compared to a typical season high. On a median listing price of $385,000, buyers could save approximately $10,000. And in the largest housing markets, prices could dip more than 10% from their peak. The best week to buy is also a peak period for price reductions, with an average of 7.0% of homes dropping their price. Based on inventory estimates, this could mean roughly 50,000 homes nationally will see price reductions. An added help to buyers: mortgage rates remain near historical lows (2.87% in August). Homes are selling a bit slower Homes have been selling at a blistering pace, forcing many buyers to make a purchase sight unseen, or to make more concessions to close a deal. But the best week to buy should bring some relief to those who need more time to make their decision. In June, the national median time on market for a home was just 37 days, down from 56 days in 2020. On average, home buyers will have 7 additional days to consider a home. During the week of Oct. 3, we expect the pace to slow by 18%, compared to the peak pace earlier in the year. That means by October, it should slow to about 44 days. Best Time to Buy for the Top 50 Largest Metro Areas Methodology: Realtor.com® analyzed six supply and demand metrics at a national and metropolitan level using data for 2018-2019 period (2020 data was omitted due to anomalies caused by the pandemic). Those metrics include: 1) listing prices, 2) inventory levels, 3) new "fresh" listings, 4) time on market, 5) homebuyer demand (Realtor.com® views per property), and 6) price reductions. Each week of the year was ranked using each of those metrics by how favorable the conditions were for buyers (e.g. high score for lower prices). The week with the highest composite score across all metrics was considered the best time to buy. This week represents a balanced view of market conditions favorable for buyers. About Realtor.com® Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, Realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, Realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. 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 Price Index Annual Growth Reaches All-Time High in July, CoreLogic Reports
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CoreLogic Investor Homebuying Report Shows Slowing Purchase Activity Amid Shifting Market Dynamics: A Decade in Review
Report shows small investors make up a more significant share of real estate purchases Significant migration out of California pushes investor activity to more affordable areas IRVINE, Calif., August 30, 2021 -- CoreLogic, a leading global property information, analytics and data-enabled solutions provider, shared its Investor Homebuying report highlighting home U.S. purchase trends between 2011 and 2020. In the report, CoreLogic investigates activity nationally by both price tier and investor size and looks at which regions have had the most and least activity. A decade ago, there was a flurry of home purchase activity following the 2006 housing market crash as investors began capitalizing on low-cost, high-growth properties. However, this purchase activity peaked in 2018 and since then, the pace of investment has slowed. In 2019, the investment rate (the share of home purchases made by investors) in the U.S. housing market was 16.3%, and by 2020, it had slowed to 15.5%. Despite the decreasing rates, overall, investors have maintained a strong presence in the market during the last 10 years. Smaller investors are making up a more significant share of investors than at any point in the past and continue to gain their market share at the expense of their larger counterparts. This is likely due to large out-migration from expensive areas to more affordable ones, allowing smaller investors to snap up properties at lower rates. "At this critical juncture — the first year into the new decade and continually moving farther away from the pandemic — when the hot housing market cools down, we may see investor activity increase as they try to buy more properties at lower prices," said Molly Boesel, principal economist at CoreLogic. "Although investors seem to have given some of their coveted market share to buyers, it's hard to say how long this trend will last — or what the long-term implications will be on a larger scale." State and Metro Takeaways California dominated investor activity in 2011, with Los Angeles, San Jose, San Diego, San Francisco, Sacramento, Stockton and Riverside all in the top 10 areas with the highest investor activity. Despite this, no California metro areas made the top 10* in 2020. Cities in the Mountain West, the western Midwest and the South led investment activity by 2020, and investment has grown in metro areas like Boise, Idaho; Phoenix and Salt Lake City, as they tend to have lower prices and growing populations fueled by out-migration in California. Download the report here. Methodology: This report uses the industry-leading CoreLogic public record database. An investor is defined as an entity (individual or corporate) who retained three or more single-family properties simultaneously within the past 10 years. This report enhances the definition of an investor purchase that was introduced in a 2019 CoreLogic report. The previous report identified an investor purchase by looking for a corporate or non-individual identifier on the deed. Examples include LLCs, CORPs, and INCs, to name a few. This report includes those purchases but in addition, uses probabilistic record linkage methods to identify more investor purchases by seeing how many properties a person with the same name and address retains at any one time. About CoreLogic CoreLogic is a leading global property information, analytics and data-enabled solutions provider. The company's combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.
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Buying a Starter Home is More Affordable than Renting in Nearly Half of the Biggest U.S. Metros
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Three Quarters of Millennials Would Consider a 3D Printed Home, According to Realtor.com Survey
Major selling points include affordability, energy efficiency and resistance to natural disasters SANTA CLARA, Calif., Aug. 20, 2021 -- 3D printed home technology has hit the mainstream, with builders claiming these homes can be built in half the time and for half the cost. But will people actually buy them? A new survey from Realtor.com found that 66% of all consumers and 75% of millennials would consider living in a 3D printed home. The survey also found that 30% of all respondents and 43% of millennials think that 3D printed homes will replace traditional methods of homebuilding. The survey of 3,026 consumers, which was conducted online by HarrisX in July 2021, found that 42% have heard about 3D home printing technology. That number was much higher (63%) for recent home buyers, suggesting that home searchers are doing their research when it comes to new technology. "Over the past decade, as the homebuilding industry focused mainly on the upper-end of housing, expecting younger generations to favor renting, the price of construction has pushed new homes out of reach for many first time home buyers," said George Ratiu, senior economist, Realtor.com®. "With the largest generation in U.S. history embracing homeownership, and the pandemic accelerating the move toward suburban markets, new home construction plays a pivotal role in meeting the growing demand. As technology is advancing novel building solutions, anything we can do to reduce the cost of new construction and increase the number of available homes, especially at an affordable price point, will help to restore balance in this strong seller's market." Factors that would persuade people to live in a 3D printed home include: lower cost (54%), more energy efficient (51%), more resistant to natural disasters (42%), faster to build (41%), more customizable (39%), and produces less waste than traditional building methods (32%). However, some consumers are still wary of the technology. When asked what would hold them back from living in a 3D printed home, the most common response was that they want to wait and see how the technology will pan out over time (36%). Other responses include: prefer the aesthetics of a traditional home (22%), think it won't last as long (22%), don't want their home to look exactly like the neighbors (18%), prefer an existing home to new construction (14%), and don't trust the technology (14%). Twenty-two percent of respondents said nothing would hold them back from living in a 3D printed home. "While the technology is still somewhat nascent, our survey data shows that consumers are very interested in 3D printed homes. While there have only been a small number of 3D printed homes sold to date, as the technology continues to advance, we could see it add more affordable homes to the housing market. For the rising generations of digital natives, new building technology may provide a sustainable bridge toward homeownership," said Ratiu. Methodology: Realtor.com® commissioned HarrisX to conduct a national survey of consumers. The total sample size was 3,026 adults. The survey was carried out online from July 21-23, 2021. The sampling margin of error of this poll is ±1.8 percentage points. The figures represent a national view of U.S. adults. Results were weighted for age, gender, region, race/ethnicity, and income where necessary to align them with their actual proportions in the population. About Realtor.com® Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, Realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, Realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. 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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Opportunity Zone Redevelopment Areas Still Reaping Benefits of National Home-Price Boom in Second Quarter 2021
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Realtor.com's 2021 Hottest ZIP Codes in America Are Hotter Than Ever Before
Homes sell in less than a week in the 2021 Hottest ZIPs - three times faster than last year's hottest ZIPs SANTA CLARA, Calif., Aug. 12, 2021 -- The 2021 Hottest ZIPs in America are hotter than ever before, with homes in the top 10 selling three times faster than last year's list, according to the seventh annual Realtor.com Hottest ZIP Codes Report released today. Among this year's top 10, a few key factors are driving buyer demand, including homes listed at relatively affordable asking prices and with ample space for the money, as well as sizable populations of high-income millennials and close proximity to local amenities and outdoor activities. The 10 Hottest ZIP Codes in America, in rank order, are: 80916 East Colorado Springs, Colo. (Colorado Springs); 14617 West Irondequoit, N.Y. (Rochester); 01960 Peabody, Mass. (Boston); 03103 Manchester Proper, N.H. (Manchester); 27616 Brentwood, N.C. (Raleigh); 43228 Lincoln Village, Ohio (Columbus); 01757 Milford, Mass. (Worcester); 03301 Concord Proper, N.H. (Concord); 48336 Farmington, Mich. (Detroit); and 37067 Franklin, Tenn. (Nashville). The U.S. is in the middle of one of the hottest housing markets of all time. Home prices reached record-highs in five of the first six months of 2021, which has helped fuel demand for the relatively affordable areas on Realtor.com®'s Hottest ZIP Codes list. Homes in the top 10 are flying off the market in six days on average, 31 days faster than the rest of the country and 10 days faster than their respective metros in June – and three times faster than last year's list (18 days). Additionally, Realtor.com® home listing views are up 156% year-over-year in these areas, which is 3.9 times higher than June's national average. "By definition, the ZIPs that make our annual hottest report are very competitive, but this year, they are white hot. Homes in this year's ZIPs are under contract in less than a week, which is three times faster than the contract times for last year's hottest markets," said Realtor.com® Chief Economist Danielle Hale. "While there's no question that buyers have faced a challenging housing market during the pandemic, our Hottest ZIPs list also highlights some of the silver linings. The rise in remote work has given some buyers more flexibility to live wherever they want, and many are finding larger homes at lower prices, as well as a higher quality of life, in the 2021 Hottest ZIPs." Smaller budgets buy bigger homes in Hottest ZIPs With demand for more space being met with a lack of affordable housing inventory, Americans are scouring the market for areas where they can get more home for their money. In seven of this year's top 10 Hottest ZIPs, median asking prices were 27.6%, or $106,000, lower than the national average in June. Eight of the top 10 saw median listing prices that were lower than in their overall metro areas in June and five ZIPs have asking prices that were at least 20% lower, including: No.1 ZIP 80916 in East Colorado Springs, which is 36% below overall Colorado Springs, along with West Irondequoit (ZIP 14617), 27.9% lower; S. Manchester Proper (ZIP 03103), 23.2% lower; Brentwood (ZIP 27617), 22.4% lower; and Lincoln Village (ZIP 43228), 21.6% lower. Homebuyers are also finding more space for their money in the 2021 Hottest ZIPs. At a median of 1,850 square feet, homes in the Hottest ZIPs are 110 square feet larger than the typical U.S. home for sale, and each square foot is priced on average 3.7% lower than in surrounding metro areas, giving buyers a chance to get more home for their money. Many of these ZIPs are starter-home neighborhoods in metros where homes are larger. The three Hottest ZIPs where buyers get the most bang for their buck are: West Irondequoit (ZIP 14617) at $118 per square foot; Lincoln Village (ZIP 43228) at $146 per square foot; and Farmington (ZIP 48336) at $159 per square foot. Hottest ZIPs reside in more suburban metros with higher millennial incomes The 2021 Hottest ZIPs also show skyrocketing buyer interest in more suburban areas with strong millennial job markets. Among the 2021 Hottest ZIPs, only Peabody, Mass. (ZIP 01960) and Farmington, Mich. (ZIP 48336) are located in one of the 20 largest U.S. metropolitan areas by population: Boston and Detroit, respectively. The remaining ZIPs are in relatively less-dense secondary metros, with populations under three million. Overall, this year's top 10 ZIPs are located an average of 16 miles, or 21 minutes, from the downtown areas of the surrounding metros. While most of the Hottest ZIPs don't offer a robust city life, they do offer strong job markets where younger Americans are gaining ground. In fact, the median household income for millennials aged 25-34 in the Hottest ZIPs is $71,127, which is 6.7% higher than the national average for this group at $66,661. Older millennials (aged 35-44) bring home a median income of $88,698 in the 2021 Hottest ZIPs, 6.3% above the national average for this group. With many now 40-years-old, older millennials have established a solid financial foundation in the Hottest ZIPs where their dollars go further. "Prior to COVID, homeownership may have been a few years off for younger millennials, many of whom are building their careers, but flexible work arrangements are now enabling some to make a homebuying play. Building on older millennials' success establishing themselves as homeowners in up-and-coming areas across secondary metros, younger millennials are pioneering into new ZIPs where relatively higher incomes make them more competitive buyers," said Realtor.com® Senior Economist George Ratiu. Hottest markets are homeownership hotspots for younger and older millennials America's Hottest ZIP Codes also have a proven track record with millennial homeownership. In fact, young millennials, ages 25-34 years old, in the Hottest ZIPs have a homeownership rate of 46%, which beats their national average of 44%. Moreover, half of the top 10 ZIPs meet or beat the national homeownership rate for young millennials, including: West Irondequoit (ZIP 14617) at 82.8%, Brentwood (ZIP 27616) at 57.1%, Peabody (ZIP 01960) at 49.8%, Farmington (ZIP 48336) at 54.0% and Milford (ZIP 01757) at 44.3% Older, more established millennials are also successful in the top 10 Hottest ZIPs. In fact, 73% of millennials aged 35-44 own homes in these areas versus their national average of 57%. Half of the top 10 ZIPs have older millennial homeownership rates that beat or meet the national average, including: West Irondequoit (ZIP 14617) at 85.8%, Brentwood (ZIP 27616) at 67.3%, Farmington (ZIP 48336) at 65.7%, Milford (ZIP 01757) at 58.9% and Peabody (ZIP 01960) at 57.9%. Preparation is key for any homebuyer in today's frenzied market, especially younger buyers with fewer resources. In addition to staying up-to-date on housing market insights and tips, home shoppers can use tools like the Realtor.com® Real Estate app, where they can sign up for custom search alerts about new listings and price drops on saved homes. 2021 Hottest ZIP Codes in America 1) ZIP 80916 East Colorado Springs, Colo. (Colorado Springs) – ZIP 80916 is located on the east side of town and is home to the Colorado Springs Airport and Peterson Airforce Base. The area is known for its affordable homes, built in the 1970s and 80s, and the quick commute to military bases and defense contractors, such as Lockheed Martin and Northrop Grumman. In recent years, the ZIP has seen an influx of buyers from California and Texas looking to enjoy the outdoors and take advantage of top-rated schools including Irwin Charter High School, rated eight out of 10 by GreatSchools.org. On the weekend, locals enjoy hiking and rock climbing in places like Garden of the Gods and Pike's Peak. Colorado Springs is no stranger to the Hottest ZIPs list, ZIP 80911, also in Colorado Springs, ranked No. 1 in 2020. Housing Stats: Homes in ZIP 80916 spend an average of four days on market, eight days less than the Colorado Springs metro as a whole and 33 days less than the national median. The median listing price is $318,000, up 19.8% year-over-year, but 36% lower than the metro and 17% lower than the national median. While this ZIP lags behind in homeownership with fifty-one percent of residents and 40% of younger millennials owning a home, it shows promise thanks to young households. Seventy-four percent of the population in this ZIP is under age 45. 2) ZIP 14617 West Irondequoit, N.Y. (Rochester) – ZIP 14617 is in the northwestern part of the state on Lake Ontario and is part of New York's third largest metro area. Rochester offers a unique blend of history and innovation: Homes and commercial buildings date back a century or more, while the city's downtown is undergoing development and revitalization. During COVID, the area drew home buyers from Boston and New York City looking for more affordable real estate. In addition to a great school system, Iroquois Middle School is rated eight out of 10 on GreatSchools.org, and lower cost of living, Rochester offers a family-friendly environment, including more than 3,500 acres of nationally recognized parks, outdoor festivals, amusement parks, baseball games at Frontier Field, the Buffalo Bills' training camp in the warmer months and nearby ski slopes and sledding hills in the winter. No stranger to Realtor.com®'s Hottest ZIPs list, West Irondequoit (ZIP 14617) ranked No. 3 last year. Housing stats: Homes in ZIP 14617 sell in an average of just six days, six day faster than the metro area and 31 days faster than the national median. Median listing price is $175,000, up 9.4% from last year, but 28% and 55% lower than metro and U.S. respectively. Eighty percent of residents in ZIP 14617 are homeowners, and younger millennial homeownership is 83% -- both well above the national average. 3) ZIP 01960 Peabody, Mass. (Boston) – ZIP 01960 is part of Massachusetts' North Shore, just 20 miles northeast of Boston. Near major highways like I-95, Peabody offers convenient access to vacation spots along New England's rocky coastline and into the ski mountains of New Hampshire and Maine. Homes are more affordable compared to Boston proper and its adjacent suburbs. Locals view Peabody as its own city, filled with hotels and restaurants, as well as the Northshore Mall, one of the region's largest shopping centers. With its abundance of single-level, ranch-style houses, more affordable asking prices, lower taxes and retirement-friendly lifestyle, the area attracts empty nesters looking for homes that will be more manageable in their retirement years. Peabody ranked No. 5 on Realtor.com®'s Hottest ZIPs list in 2018. Housing stats: Homes in Peabody sell in an average of three days, 19 days faster than the Boston metro area and 34 days faster than the national median. The median listing price is $625,000, 11% lower than the metro, but 62% higher than the national median. Sixty-three percent of residents in this ZIP are homeowners and, while millennial homeownership is above the U.S. average, just 10% of households are aged 25-34. 4) ZIP 03103 Manchester Proper, N.H. (Manchester) – ZIP 03103 is on the southside of New Hampshire's most populous city, and offers affordability, a healthy job market and access to outdoor activities such as hiking and skiing. Manchester's bustling downtown, Elm Street, features a number of restaurants and Manchester's Verizon Wireless Arena for hockey games and concerts. The city also boasts Northeast Delta Dental Stadium, home to the city's double A Fisher Cats baseball team. The state has no income or sales tax, and ZIP 03103 boasts more affordable homes than some of the neighboring towns. The area's biggest employers are Elliot Health Systems, Southern NH University and Catholic Medical Center, but there is also a burgeoning start-up scene. About 20 miles from the Mass. border, Manchester has become a popular destination for Boston commuters looking for affordability and outdoor space, a trend which became even more prevalent during the pandemic. Housing stats: Homes in ZIP 03103 spend an average of five days on the market, moving five days faster than the metro and 32 days faster than the national average. Median list price is $315,000, up 30% year-over-year, but 23% lower than metro and 18% lower than the U.S. average. Homeownership lags behind national figures here with 46% of residents in this ZIP and 35% of millennials owning their homes, but the area is young. Sixty-one percent of the population is under age 45. 5) ZIP 27616 Brentwood, N.C. (Raleigh) – ZIP 27616 is centrally located about 20 minutes from downtown Raleigh, Rolesville and Wake Forest. This ZIP offers a range of homes from townhomes to luxury homes priced from $600,000-$700,000. Over the past year, the area has seen an influx of buyers from New York and major metro areas on both coasts who are interested in seeing their dollar go further. The area's largest employer is Duke University and Health System, but the Research Triangle region is home to a number of local tech companies like SAS Institute and satellite offices for IBM and Cisco Systems. One of the biggest perks of the area is its planned communities, including 5401 North which offers parks, restaurants, schools, shops and community events. Housing Stats: Homes in ZIP 27616 spend an average of five days on market, 10 days less than the Raleigh metro as a whole and 32 days less than the national median. The median listing price is $319,000, up 0.8% year-over-year, and 22% lower than the metro and 17% lower than the national median. Sixty-seven percent of residents in ZIP 27616 are homeowners and younger millennial homeownership is 58%. 6) ZIP 43228 Lincoln Village, Ohio (Columbus) – ZIP 43228 is just 10 miles west of downtown Columbus and offers affordable home options for those looking to size up for a growing family, or those sizing down. There are plenty of state and city parks with biking, hiking and walking trails, while the Short North Arts District has lots of restaurants and shopping. Employers range from venture capital firms and startups like Drive Capital and Root Insurance, to well-known names such as Nationwide Insurance and Wendy's. For those who enjoy sports, there's Ohio State athletics, the NHL's Blue Jackets, AAA baseball at Huntington Park and the Columbus Crew soccer team. Schools in the area are rated highly including Columbus Preparatory Academy, rated eight out of 10 by GreatSchools.org. Thanks to its affordability, Columbus has been seeing an influx of people moving from bigger cities like New York City and Chicago. Housing stats: Homes in ZIP 43228 sell in an average of just five days, 10 days faster than the metro area and 32 days faster than the national average. The median listing price is $235,000, up 56.7% from last year, but 22% and 39% lower than the metro area and the U.S., respectively. Homeownership lags a bit in this zip. Forty-two percent of residents are homeowners, while the millennial homeownership rate is 33%. However, it has plenty of young people, with 69 percent of the population under age 45, 7) ZIP 01757 Milford, Mass. (Worcester) – ZIP 01602 is located on the southeast side of Worcester and just an hour outside of Boston, offering quick access to both areas' large job markets. Although Milford has lost its primary commuter rail access during the pandemic, the ZIP is within 10 minutes of the Mass. Pike, which leads straight into Boston. The area's largest employer is Dell EMC, but the rise in remote work is making the area a more attractive option for young professionals who don't need to commute into the city every day. Buyers will find their city-level salaries can purchase a lot more house in Milford, where home prices are not only lower than Boston, but have declined slightly since last year – a rarity in today's market. And with plenty of hiking and biking trails and breweries like CraftRoots, Milford is attracting younger buyers ready to pursue the full-time hipster lifestyle. Housing stats: Homes in Milford spend an average six days on market, 11 days less than the Worcester metro as a whole and 31 days less than the national median. The median listing price is $455,000, 6% and 18% higher than the metro area and the national median, respectively, but notably below nearby Boston's $699,000 median asking price. Sixty-two percent of residents in this ZIP are homeowners and millennial homeownership is 44% among those aged 25-34, and 59% in the 34-44 age bracket. 8) ZIP 03301 Concord Proper, N.H. (Concord) – ZIP 03301, located in the heart of New Hampshire's capital city, is the state's political and cultural center. Its historic downtown boasts two performing arts centers and three museums, including the McAuliffe-Shepard Discovery Center, which features interactive space-themed exhibits and a planetarium. With no state income or sales tax, and relatively affordable housing options, Concord is a budget-friendly place to live. Locals enjoy easy access to New Hampshire's lakes region and the White Mountains for outdoor recreation. The area's outdoor access and affordability make it attractive to a wide range of demographics. Concord's largest employers are Concord Hospital and Steeplegate Regional Mall, but the recent boom in remote work has made Concord an even more attractive place to live. Housing stats: Homes in ZIP 03301 spend an average of nine days on the market, eight days less than the metro area and 28 days less than the U.S. average. The median list price is $343,000, up 14.4% year over year, but still 10% and 11% lower than metro and U.S. medians, respectively. Homeownership lags behind in this ZIP where 47% of residents are homeowners, and millennial homeownership is below the national average at just 26%. 9) ZIP 48336 Farmington, Mich. (Detroit) – ZIP 48336 is a commuter-friendly town with easy access to Detroit – only 15-20 minutes away by car – and nearby Southfield and Ann Arbor. Farmington is the closest suburban neighborhood to the city where home buyers can still get both land and a substantially-sized home (typically between 2,000-3,000 sq ft). In addition to affordability and space, buyers with families are drawn to this "bedroom community" because of its many desirable schools like Farmington High School, rated a seven out of 10 on GreatSchools.org and proximity to universities like Michigan State and several hospitals, as well as community events and outdoor spaces. You can find a good mix of housing styles, sizes and price ranges – there are options for first-time buyers and also those looking for "trophy homes" – and the little downtown area has a small movie theater, shopping and restaurants. Housing stats: Homes in ZIP 48336 spend an average of just eight days on the market, 13 and 29 days faster than metro and U.S., respectively. The median listing price is $244,000, up 8.6% from last year, but 13% lower than the metro area and 37% lower than U.S. Sixty-four percent of residents are homeowners and the millennial homeownership rate is above the national average at 54%. 10) ZIP 37067 Franklin, Tenn. (Nashville) – ZIP 37067 is located just 21 miles from downtown Nashville. It's an easy drive to Music City's urban attractions, but the rolling hills, farms, open space and beautiful landscape feel far away. The historic town, which is beloved for its classic Southern charm, hospitality and welcoming community, is just minutes from modern amenities like Whole Foods Market and LifeTime Fitness. The downtown Main Street boasts annual family festivals and boutique shopping. With some of the best public schools in Tennessee, including Grassland Middle School and Moore Elementary School, both rated nine out of 10 on GreatSchools.org, and a significantly lower cost of living than the national average, Williamson County has seen an influx of residents looking to flee more crowded and expensive areas during the pandemic. Housing stats: Homes in ZIP 37067 spend an average of just five days on the market, moving 10 days faster than the metro area and 32 days faster than the U.S. average. The median listing price is $847,000, up 30.6% from last year, and 97% and 120% higher than the metro and U.S., respectively. Fifty-eight percent of residents of this ZIP are homeowners – on par with the national average – but the home ownership rate among millennials is 35%. Realtor.com® 2021 Hottest Zip Codes: Top 10 Housing Metrics (June 2021) Methodology Realtor.com® analyzed over 29,000 ZIP codes based on the time it takes properties to sell and how frequently homes are viewed in each ZIP code from January-June, 2021. Eligible ZIP codes had at least 13 active listings each month to calculate a Hotness ranking. Limited to one ZIP code per metropolitan area. About Realtor.com® Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, Realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, Realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. 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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Homeowner Equity Surges Across U.S. During Second Quarter in Yet Another Sign of a Healthy Housing Market
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Realtor.com Investor Report: Top Markets Where Investors Are Impacting the Inventory Crunch
Nationally, investors took more inventory off the market than they contributed in April; their purchases represented 5.7% of all home sales SANTA CLARA, Calif., July 29, 2021 -- Despite the common perception that investors are always in competition with everyday buyers, new findings from the Realtor.com Investor Report shows that isn't always the case. According to the data, investors are exacerbating the inventory shortage in 31 of the top 50 U.S. markets, but in roughly 19 markets – including Atlanta, Dallas, Baltimore, Los Angeles and San Francisco – they are actually helping to replenish the number of homes for sale. Realtor.com® analyzed U.S. deed records from January 2000-April 2021 to determine the number of investor sales versus purchases in the 50 largest U.S. markets. In this report, areas where investors are contributing inventory refers to places where investors are selling more homes than they are buying. Places where investors are taking away inventory are locales where investors are buying more homes than they sell. "Today's buyers are facing a tough market and data shows they aren't just competing with each other. With deep pockets and more flexibility, investors can be daunting competition for the typical homebuyer. Right now, data shows investors are buying more homes than they are selling, and while they get a lot of attention in today's market, it's worth remembering that they can also contribute to inventory levels," said Realtor.com® Chief Economist Danielle Hale. "Whether a market is appealing to investors depends on a variety of factors, including how local home prices compare to rents. When home prices are rising and rents are more stagnant, investors are more likely to sell off properties and contribute inventory. On the other hand, the higher rents are compared to home prices the more attractive the market is to investors looking to buy homes and convert them into rental properties." Investors help buyers in big metros with limited homes for sale In April, investors added to the number of homes on the market in 19 of the 50 largest U.S. metros, with Atlanta (+399 homes), Dallas (+239 homes), Baltimore (+188 homes), Los Angeles (+112 homes) and San Francisco (+93 homes) seeing the biggest contributions. Compared to the markets where investors took away inventory in April, these metros tend to be bigger, with fewer homes for sale and higher listing prices. Compared to nationwide inventory declines in April (-53%), the top 10 markets where investors are contributing saw a smaller drop, at an average -44% during the same timeframe. However, some of these metros saw even bigger inventory gaps from last year, including the two markets where investors contributed the most inventory in April: Atlanta (-63.4%) and Dallas (-69.7%). At an average population size of 5.5 million, these markets also encompass some of the nation's biggest tech hubs, such as San Francisco and San Jose. Home to some of the most expensive real estate in the U.S., these metros had an average median listing price of $668,000 in April, well above the national median price of $375,000. Hale added, "High home prices, slower rent growth, and uncertainty over the future of work in these markets are likely causing investors to reevaluate their property portfolios in these areas. And with homes still selling quickly, even in these metros, an investor deciding to sell can look forward to being able to reposition their dollars elsewhere in a very short period of time." Investors are snatching up homes in smaller markets with higher inventory levels Investors took away inventory in 31 of the largest U.S. markets, led by Phoenix (-429 homes), Charlotte, N.C. (-287 homes), Miami (-256 homes),Tampa (-224 homes) and Chicago (-221 homes). Compared to the markets where investors helped buyers, these metros are smaller and less crowded, with more available home listings relative to all households, lower home prices, and relatively higher rental price growth. While average home prices are more affordable in these top markets, rental prices grew at a faster year-over-year pace on average (+4.6%) than in top markets with more investor sales (+0.1%) in April. In Tampa, where the $327,000 median listing price was below the national average of $375,000 in April, rents grew 4.5 times faster than the national rate, up 12.4% year-over-year. The markets where investors are competing with homebuyers and taking away inventory tend to offer the perfect storm of factors for converting homes into rental properties. These markets have relatively more homes available, at 3.7 properties for every 1,000 residences versus 2.8 in markets where investors are adding to inventory. While these metros have experienced more rapid year-over-year inventory declines in April (-57%), rapid rent price gains keep calculations favorable for buying which means that until rent trends change, investors are likely to be homebuyer foes, not friends. "Getting ahead in today's market is tough, especially when you are contending with professional investors," said Lexie Holbert, home and living expert at Realtor.com®. "Setting up price alerts on Realtor.com® is a really helpful trick for getting ahead of the competition. When a home that meets your parameters hits the market, you'll get a notification so you can get in and try to make an offer." Realtor.com® Investor Report, April 2021 – Top 10 Markets by Net Positive Contributions to Inventory, April 2021 Realtor.com® Investor Report, April 2021 – Top 10 Markets by Net Negative Contributions to Inventory Realtor.com® Investor Report, April 2021 – 50 Largest U.S. Metropolitan Areas Methodology In this analysis we examined deed records dating from January 2000 to April 2021 nationally and in the 50 largest metro areas. We included only single family homes, condos, townhomes and rowhomes and we excluded multi-family buildings which is not a market the typical homebuyer is competitive in. We attempted to capture business-oriented, buy and hold investor purchases. We defined an investor as a buyer or seller that was/is an absentee-owner and that has a name which includes the following: LLP, LP, LLC, GP, or TRUST. In addition to this broad definition, we also excluded keywords and sale types relating to home builders, relocation service companies, iBuyers, government bodies and financial institutions. Data limitations mean that this analysis likely excludes small investors not registered under a company name. Census estimates show that in 2018 41.2% of rental units were owned by individual investors while 47.5% of units were owned by Trusts, LLPs, LPs, or LLCs, General Partnerships, Real Estate Investment Trusts, or Real Estate Corporations. Ownership entity for more than half of the remaining units was not reported. About Realtor.com® Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, Realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, Realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. 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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Realtor.com Survey Shows With Only Weeks Until School Starts, More Than a Third of College Students Still Haven't Finalized Fall 2021 Housing Plans
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Illinois, Florida and New Jersey Dominate Markets Most at Risk from Damage Related to Coronavirus Pandemic
Chicago Area and East Coast States Remain More Exposed to Pandemic's Impact During Second Quarter of 2021; Most Vulnerable Areas Are More Scattered Around Nation Than in Prior Quarter; Western States Continue to Have Most Favorable Market Conditions IRVINE, Calif. -- July 22, 2021 -- ATTOM, curator of the nation's premier property database, today released its second-quarter 2021 Coronavirus Report spotlighting county-level housing markets around the United States that are more or less vulnerable to the impact of the ongoing Coronavirus pandemic, still endangering the U.S. economy. The report shows that states along the East Coast, as well as Illinois, were most at risk in the second quarter of 2021 – with clusters in New Jersey, Delaware, the Chicago area and central Florida – while the West remained far less exposed. But the 50 most at-risk counties around the U.S. were spread over a wider area than in the first quarter of 2021, as most states had no more than two counties in the top group in the most recent time period. The report reveals that Florida, New Jersey, other East Coast states and Illinois had 37 of the 50 counties most exposed to the potential economic impact of the pandemic in the second quarter of 2021. They included seven counties in the Chicago metropolitan area, four near New York City, all three in Delaware and four in central Florida. However, only Florida, New Jersey, Illinois, Louisiana and Delaware had more than two counties in the top 50, compared to eight states in the first quarter of 2021. The top 50 were scattered across 18 states in the second quarter, compared to 15 the prior time period. The only three western counties in the top 50 during the second quarter of this year were in northern California and southern Arizona. Markets were considered more or less at risk based on the percentage of homes facing possible foreclosure, the portion with mortgage balances that exceeded the estimated property value and the percentage of average local wages required to pay for major home ownership expenses on median-priced houses or condominiums. The conclusions are drawn from an analysis of the most recent home affordability, equity and foreclosure reports prepared by ATTOM. Rankings were based on a combination of those three categories in 564 counties around the United States with sufficient data to analyze in first and second quarters of 2021. Counties were ranked in each category, from lowest to highest, with the overall conclusion based on a combination of the three ranks. See below for the full methodology. The findings follow a year when the national housing market continued its decade-long boom even amid the pandemic, with median single-family home prices rising more than 10 percent across much of the country. While small indicators of a possible slowdown have emerged in 2021 in the form of declining home affordability and slumping investor activity, fuel for further price gains has come from the pandemic receding, employment growing and the broader economy improving. Still, the pandemic remains a threat to the economy and the housing market as new virus variants appear and clusters of virus cases continue to plague pockets of the country. "The Coronavirus pandemic is easing, and the U.S. economy is gradually coming back to life, which suggests that the nation's housing market will indeed escape any major damage from the crisis. No major signs are showing anything different at this point. Nevertheless, the pandemic is still out there and remains a potent threat to home sales and values, as well as to the broader economy," said Todd Teta, chief product officer with ATTOM. "Amid a generally upbeat outlook, we continue to see areas that appear more at risk for a fall, especially in specific areas of the East Coast and Midwest. As we have throughout the pandemic, we will keep a close eye on those areas in case the situation worsens and the pandemic surges again." Most vulnerable counties clustered around Chicago, New York City, Delaware and central Florida Eighteen of the 50 U.S. counties most vulnerable in the second quarter of 2021 to housing market troubles connected to the pandemic (from among the 564 counties with enough data to be included in the report) were in metropolitan areas around New York, NY, and Chicago, IL, as well in Delaware and central Florida. They included seven that cover Chicago (Cook County) and its suburbs (De Kalb, Kane, Kendall, Lake, McHenry and Will counties) and four in the New York City metropolitan area (Ocean, Passaic and Sussex counties in New Jersey and Orange County in New York). The four in central Florida were Highlands County (Sebring), Indian River (Vero Beach), Lake County (outside Orlando) and Osceola County (Kissimmee). All three Delaware counties – New Castle (Wilmington), Kent (Dover) and Sussex (Georgetown) – made the top 50 list as well in the second quarter of 2021. Additional counties in Florida, New Jersey and Illinois also made the top-50 list. Those in Florida were Bay County (Panama City), Clay County (outside Jacksonville) and Marion County (Ocala), FL, while those in New Jersey included Atlantic County (Atlantic City), Cumberland County (Vineland), Gloucester County (outside Philadelphia, PA), Mercer County (Trenton) and Warren County (near Allentown, PA). Others in Illinois were Kankakee County, Madison County (outside St. Louis, MO), Saint Clair County (outside St. Louis, MO) and Tazewell County (outside Peoria). In addition, Louisiana had three counties in the top 50 during the second quarter – Bossier Parish (Shreveport), Livingston Parish (outside Baton Rouge) and Tangipahoa Parish (north of New Orleans). The only western counties among the top 50 most at risk from problems connected to the Coronavirus outbreak in the second quarter of 2021 were Butte County (Chico), CA; Humboldt County (Eureka), CA and Mohave County, AZ (outside Las Vegas, NV). Higher levels of unaffordable housing, underwater mortgages and foreclosure continue to appear in most-at-risk counties Major home ownership costs (mortgage payments, property taxes and insurance) on median-priced single-family homes consumed more than 30 percent of average local wages in 23 of the 50 counties that were most vulnerable to market problems connected to the virus pandemic in the second quarter of 2021. At least 15 percent of mortgages were underwater in the first quarter of 2021 (the latest data available on owners owing more than their properties are worth) in 33 of the 50 most at-risk counties. Nationwide, 10 percent of mortgages fell into that category. Those with the highest underwater rates among the 50 most at-risk counties were Saint Clair County (outside St. Louis, MO) (43.6 percent of mortgages underwater); Delaware County, PA (outside Philadelphia) (36.4 percent); Muscogee County (Columbus), GA (29 percent); Monroe County (Stroudsburg), PA (28.2 percent) and Kankakee County, IL (27.1 percent). More than one in 2,500 residential properties faced a foreclosure action in the second quarter of 2021 in 40 of the 50 most at-risk counties. Nationwide, one in 4,046 homes were in that position. (Foreclosure actions have dropped about 80 percent over the past year amid a federal moratorium on lenders taking back properties from homeowners behind on their mortgages during the virus pandemic.) The highest rates in the top 50 counties were in Gloucester County, NJ (outside Philadelphia) (one in 747 residential properties facing possible foreclosure); Cumberland County (Vineland) NJ (one in 773); Tazewell County, IL (outside Peoria) (one in 905); Tangipahoa Parish (north of New Orleans) (one in 1,129) and Ocean County (Toms River), NJ (one in 1,336). Counties least at-risk concentrated in South and Midwest Thirty-six of the 50 counties least vulnerable to pandemic-related problems from among the 564 included in the second-quarter report were in the South and Midwest. Texas had 13 of the 50 least at-risk counties, including five in the Dallas metropolitan area (Collin, Dallas, Denton, Ellis and Tarrant counties) and two in the Austin metro area (Travis and Williamson counties). Minnesota had five, including four in the Minneapolis metro area (Dakota, Hennepin, Ramsey and Scott counties). Others among the top-50 least at-risk counties with a population of 500,000 or more included Harris County (Houston), TX; Middlesex County, MA (outside Boston); Salt Lake County (Salt Lake City), UT; Macomb County, MI (outside Detroit) and Suffolk County (Boston), MA. Less-vulnerable counties again have lower levels of unaffordable housing, underwater mortgages and foreclosure activity Major home ownership costs (mortgage, property taxes and insurance) on the median-priced single-family home consumed less than 30 percent of average local wages in 44 of the 50 counties that were least at-risk from market problems connected to the virus pandemic in the second quarter of 2021. More than 15 percent of mortgages were underwater in the first quarter of 2021 (with owners owing more than their properties are worth) in none of the 50 least at-risk counties. Those with the lowest rates in those counties were Washington County, WI (outside Milwaukee) (1.9 percent underwater); Chittenden County (Burlington), VT (2.9 percent); Salt Lake County (Salt Lake City), UT (3.6 percent); Dallas County, TX (3.7 percent) and Tarrant County (Fort Worth), TX (4.1 percent). More than one in 2,500 residential properties faced a foreclosure action in the second quarter of 2021 in none of the 50 least at-risk counties. Those with the lowest rates in those counties included Missoula County, MT (no residential properties facing possible foreclosure); Chittenden County (Burlington), VT (one in 69,734); Olmstead County (Rochester), MN (one in 65,380); Davidson County (Nashville), TN (one in 44,624) and Rutherford County (Murfreesboro), TN (one in 39,564). Report methodology The ATTOM Special Coronavirus Market Impact Report is based on ATTOM's second-quarter 2021 residential foreclosure and home affordability reports and first-quarter 2021 underwater property report. (Press releases for those reports show the methodology for each.) Counties with sufficient data to analyze were ranked based on the percentage of residential properties with a foreclosure filing during the second quarter of 2021, the percentage of average local wages needed to afford the major expenses of owning a median-priced home in the second quarter of 2021 and the percentage of properties with outstanding mortgage balances that exceeded their estimated market values in the first quarter of 2021. Ranks then were added up to develop a composite ranking across all three categories. Equal weight was given to each category. Counties with the lowest composite rank were considered most vulnerable to housing market problems. Those with the highest composite rank were considered least vulnerable. About ATTOM ATTOM 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 real estate data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 20TB 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, property data APIs, real estate market trends, and more. Also, introducing our latest solution, that offers immediate access and streamlines data management – ATTOM Cloud.
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Wall Street Journal and Realtor.com Release Summer 2021 Emerging Housing Markets Index Report
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Housing-Market Competition Has Eased Slightly, But 7 in 10 Buyers Still Face Bidding Wars
70% of home offers faced bidding wars in May, down from 74% in April. Still, competition remains far more intense than it was a year ago. SEATTLE, June 16, 2021 -- In May, 70.4% of home offers written by Redfin agents faced competition, down from a revised rate of 73.6% in April, according to a new report from Redfin, the technology-powered real estate brokerage. That's still up significantly from 52.7% in May 2020, which was impacted by pandemic stay-at-home orders. An offer is considered part of a bidding war if a Redfin agent reported that it faced at least one competing bid. Competition typically tapers in the early summer following spring homebuying season, so seasonality may be contributing to the dip in the May bidding-war rate. Early signals of a cooldown in the housing market may also be a factor. American house hunters have grappled with record-breaking levels of competition during the coronavirus pandemic as homebuyer demand has skyrocketed due to low mortgage rates and flexible work policies. This has intensified an existing housing shortage, which has also fueled fierce bidding wars. But there are signs that the red-hot market may be cooling ever so slightly; home-purchase applications have been on the decline since late March and pending sales recently fell 10% from their peak about a month ago. As Redfin Chief Economist Daryl Fairweather put it earlier this month, "The housing market was going 100 miles per hour and now it's down to 80." Competition is likely starting to level off as well, and may have already hit its peak, according to Fairweather. "After months of surging prices and low inventory, some house hunters are moving to the sidelines—either because they're priced out or burned out," Fairweather said. "Americans are spending more of their money on things like travel and dining out now that pandemic restrictions are being lifted." Spokane and Raleigh Have the Highest Bidding-War Rates Spokane, WA had the highest bidding-war rate of the 50 U.S. metropolitan areas in this analysis, with 86.7% of offers written by Redfin agents facing competition in May. Next came Raleigh, NC, at 84.5%, and Tucson, AZ, at 81.8%. Salt Lake City and Charleston, SC rounded out the top five, with bidding-war rates of 81.5% and 79.3%, respectively. In San Diego, the bidding-war rate was 74.6% in May. While that's still relatively high, it's down from 86.2% in April, representing one of the largest month-over-month declines among the metros in this analysis. "Competition is still high, but the good news is buyers are having to make fewer offers to win bidding wars," said John Copeland, a Redfin real estate agent in San Diego. "A few months ago, buyers were bidding on three to five homes before winning. Now it's more like one to two. Part of that is buyers grasping the reality of the market; they've become more educated about what they need to do to win, so they no longer need to make as many offers." Bidding-War Rates by Metro Area To be included in the table below, metros must have had at least 20 offers recorded by Redfin agents in both May 2021 and April 2021. The table is sorted by highest to lowest bidding-war rates in May 2021. Blank spaces in the May 2020 column represent metros for which there were fewer than 20 offers submitted by Redfin agents that month. To read the full report, including charts, please click here. About Redfin Redfin is a technology-powered real estate broker, instant home-buyer (iBuyer), lender, title insurer, and renovations company. We sell homes for more money and charge half the fee. We also run the country's #1 real-estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 95 markets across the U.S. and Canada and employ over 4,100 people.
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Top 5 Best Days to Sell a Home Occur in May, According to New ATTOM Analysis
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Help Is on the Way for Hopeful Homebuyers, According to Realtor.com Survey
Ten percent of homeowners plan to list this year and more than a quarter (26%) within the next 3 years, offering relief to frustrated home shoppers SANTA CLARA, Calif., April 26, 2021 -- The lack of homes for sale has hit a crisis-level in recent months, igniting fierce competition, bidding wars and driving prices to an all-time high -- but there's hope on the horizon for weary buyers, according to new survey data from realtor.com®. Findings show 10% of homeowners are planning to put their home on the market this year and an additional 16% are planning to list in 2-3 years. Furthermore, 58% of the homes that owners plan to list this year are valued below $350,000, which should provide some relief for first-timers who have had trouble breaking into the market. Of those who plan to sell this year, 63% have already listed or plan to list within 6 months and 76% have already taken steps to begin the process. Realtor.com® surveyed 657 potential home sellers the week of March 29 via HarrisX. "In a typical year, we see about 8% of the nation's homes hit the market, and we're expecting about 25% more this year," said George Ratiu, senior economist, realtor.com®. "This signals that many homeowners who were wary to list during the pandemic are getting ready to do so, and this much-needed inventory -- especially for starter homes -- will begin to relieve buyers' challenges in a very competitive market. Despite this good news, we were in an inventory shortage, for both new and existing homes, well before the pandemic and COVID made it worse. It's going to take a while for us to get back to a more balanced 'normal' even with an increase in new construction on the horizon." The housing market's catch-22 Of those who are planning to put their home on the market in 2-3 years, a quarter of respondents said they aren't listing this year because they can't find a new home within their price range, creating a catch-22 for inventory. Other reasons that homeowners aren't planning to sell this year include: not sure where they want to move (23%); the current economic climate (22%); logistics of buying and selling at the same time (22%); and concerns about showing a home during the pandemic (20%). What it will take to move the needle Nearly all potential sellers (91%) looking to sell in the next 2-3 years said that they would be more likely to list their home if they knew they could time buying and selling perfectly. Additionally, 37% of homeowners with plans to sell in the next 2-3 years said that if they knew they could make a lot of money on their home sale, they would be motivated to list sooner. And with the median home listing price currently up 18.7% over last year, many homeowners are likely to see a significant profit if they list now. Other factors that could prompt future sellers to list sooner include: more affordable homes on the market (33%); not having to handle the logistics of buying and selling at the same time (29%); not having to prepare the home for sale (27%); and if the health risks of COVID-19 were lower (24%). "With home prices at historic highs, now is a great time to sell a home and many first-time sellers might be surprised to learn how much equity they have," said Rachel Stults, deputy editor for realtor.com®. "For consumers who are worried about the stress and planning involved, there are a number of resources available to help with everything–from perfectly timing buying and selling to removing the hassles of doing repairs and staging." Home sellers can take advantage of realtor.com® tools such as local market stats and the My Home portal, to see what their home is worth, how much equity they have and potential proceeds from a sale. Those who haven't sold a home recently might be surprised by how many selling options are available. With realtor.com®'s Seller's Marketplace, consumers can compare different selling methods including instant offers, sale-leasebacks and listing with an agent. Methodology: Realtor.com® commissioned HarrisX to conduct a national survey of consumers. The total sample size was 3,998 adults. The survey was carried out online. The sampling margin of error of this poll is ±1.6 percentage points. The figures represent a national view of US adults. Results were weighted for age, gender, region, race/ethnicity, and income where necessary to align them with their actual proportions in the population. In addition to the population of US adults, an oversample was collected for potential sellers. The oversample was weighted to align with the original sample of US adults. There are 657 potential sellers with a sampling margin of error of ±3.8 percentage points. About realtor.com® Realtor.com® makes buying, selling and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. 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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Thinking of Selling Your Home? There May Be No Better Time Than Now
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Bloomington, Ill., is the Best Market for First-Time Home Buyers
Realtor.com's best markets for homeowner hopefuls offer more affordable homes and job opportunities as well as other millennials and a good mix of amenities SANTA CLARA, Calif., April 8, 2021 -- First-time buyers looking for an affordable home as well as job opportunities and quality of life may have to bypass major urban cities for more rural, secondary cities as the competition heats up for finding a home. In fact, they will have the best luck in Bloomington, Ill., according to realtor.com's 2021 Best Markets for First-Time Home Buyers analysis. With four of the top 10 markets, the Midwest ranks as the best region of the country for first-time home buyers, who according to the National Association of Realtors®, account for nearly one-third of recent buyers. Iowa City, Iowa, ranked No. 2 in this analysis followed by Kalamazoo, Mich.; Great Falls, Mont.; Eau Claire, Wis.; Savannah, Ga.; Schenectady, N.Y.; Taylorville, Utah; Harrisonburg, Va. and Rapid City, S.D. "With 50% fewer homes on the market this year than last, the U.S. housing market is competitive for all buyers. First-time buyers are at a bigger disadvantage since they don't have the funds from a previous home sale to help with their down payment or compete with bidding wars. Our recent survey of potential first-time home buyers confirmed this with 44% indicating they haven't saved enough for a down payment," said realtor.com® Chief Economist Danielle Hale. "While relocating isn't an option for everyone, the pandemic has caused many to rethink their priorities, including where they want to live. This analysis was meant to provide some insight for those who are open to expanding their search as they weigh their homeowner options." To determine the best markets for first-time home buyers, the majority of whom are millennials, many between the ages of 25 and 34, realtor.com® took into account six factors, including housing prices relative to local incomes, the share of 25- to 34-year-olds living in the market, the availability of homes for sale, job opportunities, distance to work and amenities such as bars and restaurants. To achieve geographic diversification, the ranking was limited to one city per state. All of the top 10 best markets have median home prices below the current national median price of $370,000. Kalamazoo, Mich., has the lowest median home price at $155,000 and Taylorsville, Utah, the highest at $350,000. Nine of the 10 top cities are home to at least one four-year college or university, which likely contributes to the fact that their residents tend to skew younger than the country overall. Savannah, Ga., has the largest share of adults aged 25-to-34 at 16.9% of the city's total population. Only Rapid City, S.D., and Harrisonburg, Va., had a lower share of younger adults than the median national average. What these two cities lack in a younger population they make up for in lower unemployment rates, more food and drink establishments per household and a shorter commute to work than the national average. For those looking for more homes to choose from, Schenectady, N.Y., with a median home price of $210,000, tops the list with nearly 18 listings per 1,000 households, Iowa City, Iowa offers 13.3 listings per 1,000 households, followed by Savannah, Ga., at 13.1 listings per 1,000 households. Realtor.com®'s Top 10 Markets for First-Time Home Buyers Methodology: To determine the top first-time home buyer markets, realtor.com® ranked 774 cities with a population of more than 50,000 based on the following criteria: the share of 25- to 34-year-olds in the local population; the availability of inventory, measured by active listings per 1,000 existing households; affordability, estimated by the ratio of listing prices to gross incomes of 25- to 34-year-olds in that city; job opportunities estimated by the unemployment rate of the city's surrounding metro area; the average commute time to work and amenities in an area, estimated by the number of food and drink establishments per 1,000 existing households in the city's surrounding metro area. About realtor.com® Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. 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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Homeownership Remains Affordable for Average Workers Across Majority of U.S. Despite Price Spikes
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Now May Be the Best Time to Save Thousands on a Lease in the Nation's Largest Tech Hubs, According to Realtor.com Rental Report
In San Jose, Calf., renters signing a 12-month lease today would save nearly $5,000 compared to pre-pandemic prices SANTA CLARA, Calif., March 16, 2021 -- Rents continued their downward spiral in many of the nation's largest housing markets in February, but they may have hit their bottom, according to the realtor.com Monthly Rental Report released today. For those looking to move or return to the big city, acting now while rents are still at their lowest could mean saving thousands of dollars a year. "Housing markets like San Francisco, Santa Clara, Calif., Boston and Seattle have seen rents decline by double digits since the start of the pandemic and rent growth across the nation remains lower than pre-COVID levels. However, the downward trend is leveling off and rents may have hit their bottom in many markets," said realtor.com® Chief Economist Danielle Hale. "With the COVID-19 vaccination rates improving, returning to work and the city may be on the minds of many. For those looking to capitalize on rock-bottom rents, finding a new unit now could make sense. You'll not only save money, you'll have less competition finding the location that's best for you." In February, the U.S. median rent, which is calculated by averaging the median rent of the 50 largest metros, was up 0.6% to $1,452, well below its pre-COVID growth rate of 3.2%. With rent growth stabilizing over the past three months, rents could begin to return to pre-COVID growth rates in the coming months. Rent savings in tech markets could add up to thousands of dollars Although rents have begun to stabilize, and even rise by double-digits in some markets like New Orleans, Sacramento, Calif., Memphis and Riverside, Calif., where rents rose 18.7%, 11.0% 10.8% and 10.7%, respectively in February, that's not the case in many of the nation's largest tech hubs. In San Jose, Calif., situated in the heart of Silicon Valley, median rent was $2,690 in February, 13.2%, or $410, less than a year earlier. Renters signing a 12-month lease today would save nearly $5,000, compared to pre-pandemic prices for the same unit. They'd save almost as much in neighboring San Francisco, where rents were down nearly 13% from a year ago in February. Tech hub markets - Typical savings versus last year's rents February 2021 rental data - 50 largest metropolitan areas Methodology Rental units include apartment communities as well as private rentals (condos, townhomes, single-family homes). All units were studio, one-bedroom, or two-bedroom units. National rents were calculated by averaging the medians of the 50 largest metropolitan areas. About realtor.com® Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. 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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Millennials Dominate Buying Market, Generation Z Now Active Buyers, Says NAR Report
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More than 200,000 New Listings Are Missing from U.S. Housing Market, According to Realtor.com February Housing Report
Extreme weather across most of the country pushed new listings to a record low that will be difficult to dig out from, while prices hit a new high SANTA CLARA, Calif., March 4, 2021 -- February's extreme weather throughout the U.S. exacerbated the housing market's inventory woes, pushing the pace of new listings coming onto the market further behind pre-pandemic levels, according to the realtor.com Monthly Housing Trends Report released today. Unless the trend reverses itself, buyers will be in for a much more competitive homebuying season than last year. "Last month's record cold and snowstorms likely caused sellers to hit pause, even if only temporarily," said realtor.com® Chief Economist Danielle Hale. "However, in today's inventory-starved market, any setback is significant. Unless we see some big improvements in the new listings trends over the coming months buyers can expect stiff competition. And unlike last spring, buyers may also face affordability challenges as home prices and mortgage rates increase. Market dynamics continue to favor sellers." According to realtor.com® data, 14.8% of the year's total new listings came to market in January and February in 2017-2019, and new listings in these months were an even bigger share in 2020 as COVID scared off many would-be sellers later in the year. Approximately 207,000 fewer homes were newly listed for sale during the first two months of 2021, compared with the average for those two months over the last four years. New listings would need to increase by 25% year-over-year in March and April to bring the year to date figure back to April 2020's levels. Severe winter storms across the U.S. drive inventory down further The number of homes for sale in the U.S. in February was down 48.6% year-over-year, a new low that translated into 496,000 fewer homes for sale. New listings were down 24.5% year-over-year, with the biggest drop -- 35.2% -- occurring in the third week of February, the most extreme weather week of a very cold and snowy month. New listings recovered to a smaller decline of 26.9% year-over-year in February's final week as conditions eased. Housing inventory in the 50 largest U.S. metros declined by 47.4% over last year in February, an increase from January's 41.8% decline. New listings in the 50 largest U.S. metros were down 23.5% year-over-year. For some metros, the declines were far more significant with new listings falling 47% in Oklahoma City, Okla., 45% in Kansas City, Mo.-Kan. and 40% in Milwaukee-Waukesha-West Allis, Wis. Two of three metros with increases in new listings were in California. New listings were up 13.6% in San Jose, Calif., followed by San Francisco (1.1%), and Denver (1.1%) year-over-year. Listing prices reach new high In February, the median national home listing price grew 13.7% over last year to $353,000, surpassing last year's peak price unseasonably early. The slowdown from last month's growth rate of 15.4% was likely due to a change in the mix of homes for sale. Listing prices in the nation's 50 metros grew by an average of 11.5%, compared to last year. Regionally, the Northeast saw the biggest jump in listing prices, increasing at an average rate of 16.8% over last year. Prices were up 11.7% in the West, 10.9% in the Midwest and 9.5% in the South. At the metro level, Austin, Texas, (+37.2%), Rochester, N.Y. (+27.6%) and Buffalo, N.Y. (+25.0%) posted the highest year-over-year median listing price growth in February. Miami (-2.7%), Denver (-1.7%), and Orlando, Fla. (-1.1%), were the only top 50 metros to see their median listing price decline year-over-year in February. Buyers need to act fast The typical home spent 70 days on the market in February, 11 days less than last year. Time on market was even faster in the 50 largest U.S. metros where the typical home sold in 48 days, 12 days less than a year ago. Homes saw the greatest decline in time spent on the market compared to last year in Austin, Texas (-36 days), Charlotte, N.C. (-28 days) and Portland, Ore. (-27 days). Metros With the Largest Decline in Newly Listed Homes   *Some data for Pittsburgh, New York, and San Diego has been excluded due to data quality. About realtor.com® Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. 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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Home Price Increases in Opportunity Zone Redevelopment Areas Keeping Pace with Nationwide Gains
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Goodbye City Life: Rising Rents Match Homebuying Hotspots
Realtor.com January Rental Report finds declines in expensive high-tech hubs persist, while smaller markets that offer quality of life become less affordable SANTA CLARA, Calif., Feb. 18, 2021 -- Renters, much like homeowners, are favoring smaller more affordable markets that offer highly rated schools, strong local economies and more space over expensive tech hubs, a trend that is pushing rents up in many of the same markets where home prices are rising the most, according to the realtor.com® Monthly Rental Report released today. "Although rents across the U.S. have been growing at a slower pace since the onset of COVID-19 and the major tech hubs continue to see declines, some markets are seeing rents grow by double digits," said realtor.com® Chief Economist Danielle Hale. "Many of the same factors that attract homebuyers to an area -- highly rated schools, job opportunities, affordability and quality of life -- attract renters. Like homeowners, the pandemic has given many renters the freedom to work remotely, and the rental trends reflect that reality." In January, the U.S. median rent, which is calculated by averaging the median rent of the 50 largest metros, was up 0.8% to $1,442, below its pre-COVID growth rate of 3.2%. Despite the continued slower growth, January marked the first month since July 2020 where rental growth didn't slow further, indicating that rent growth may have reached a floor. Seven of the top 10 metros with the largest rent increases in January -- New Orleans*; Sacramento, Calif.; Rochester, N.Y.; Cleveland; Riverside, Calif.; Cincinnati and St. Louis -- were also among the metros where home prices grew more than 5% year-over-year. Renters typically have more flexibility to move, and with remote work allowing many people to live anywhere, markets that offer affordability are in hot demand. In California, Riverside and Sacramento have become desirable alternatives to the pricey Bay Area and Los Angeles housing markets. Despite a sizable 9.6% increase in the last year, the median rent in the Riverside metro was $1,858 in January, 25.4% lower than the median rent in neighboring Los Angeles. Likewise, the median rent in Sacramento was $1,649 in January, still 36.8% lower than the median rent in San Francisco despite its 11.0% rise in the last year. Four of the top 10 markets with the largest year-over-year rent increases in January are located in the Midwest, a region that in recent years has attracted affordability-minded homeseekers looking for an alternative to the pricer coastal markets. Markets With the Largest Rent Increases in January 2021 Markets With the Largest Rent Decreases in January 2021 Rental Data - 50 Largest Metropolitan Areas January 2021 *Editor's Note: New Orleans' exceptional year-over-year growth in median rent was driven by shifts in the underlying inventory of rental units. The number of studio units has declined by 17% year-over-year, while one-bedroom and two-bedroom unit inventory has increased by 50% and 31%, respectively. The larger space commands larger rents, therefore driving up the median rent in the area. Methodology Rental units include apartment communities as well as private rentals (condos, townhomes, single-family homes). All units were studio, one-bedroom, or two-bedroom units. National rents were calculated by averaging the medians of the 50 largest metropolitan areas. About realtor.com® Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. 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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Buyers on Notice: Act Quickly and Be Prepared to Pay Up, According to Realtor.com January Housing Report
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East Coast Housing Market Continues to Dominate Areas Most Vulnerable to Coronavirus Impact
Counties Most At Risk in Fourth Quarter of 2020 Remain Concentrated in States Running from Connecticut through Florida; New York City, Philadelphia and Chicago Areas Have Biggest Clusters of High-Risk Counties; West Region Remains Less Vulnerable IRVINE, Calif. - Jan. 21, 2021 -- ATTOM Data Solutions, curator of the nation's premier property database, today released its fourth-quarter 2020 Special Coronavirus Report spotlighting county-level housing markets around the United States that are more or less vulnerable to the impact of the virus pandemic. The report shows that pockets of the Northeast and other parts of the East Coast remained most at risk in the fourth quarter – with clusters in the New York City and Philadelphia, PA areas – while the West continued to be less vulnerable. The report reveals that New Jersey, Illinois, California, Louisiana, New York, Florida and Maryland had 40 of the 50 counties most vulnerable to the economic impact of the pandemic in the fourth quarter of 2020. They included eight suburban counties in the New York City metropolitan area, four around Philadelphia, PA, and two near Washington, D.C. Another six sat in the Chicago, IL, suburbs and two were in the St. Louis, MO area. Five of the seven western counties in the top 50 during the fourth quarter were in northern California, while Illinois had eight of the nine midwestern counties among those most vulnerable. Outside of Florida and Maryland, the only southern state with more than two counties in the top 50 was Louisiana. Fourth-quarter trends generally continued those found in the third quarter of 2020, but with different concentrations around several major metropolitan areas. The number of counties among the top 50 most at-risk was up from five to eight in the New York, NY, area and from three to six in the Chicago, IL, area, but down from four to two in the Washington, D.C., region and from four to one in the Baltimore, MD area. Markets are considered more or less at risk based on the percentage of homes facing possible foreclosure, the portion with mortgage balances that exceed the estimated property value and the percentage of average local wages required to pay for major home ownership expenses. The conclusions are drawn from an analysis of the most recent home affordability, equity and foreclosure reports prepared by ATTOM. Rankings were based on a combination of those three categories in 499 counties around the United States with sufficient data to analyze in the fourth quarter. Counties were ranked in each category, from lowest to highest, with the overall conclusion based on a combination of the three ranks. See below for the full methodology. The findings come as the national housing market continues to withstand the effect of the virus pandemic while also remaining vulnerable to a fall. Home values shot up in 2020 by more than 10 percent in about three-quarters of the country, even as significant portions of the economy were shut down or idled, spiking unemployment. But amid a halting economic recovery, the ongoing market boom faces major questions connected to how long the pandemic will last, whether another recession looms and if a surge of buyers seen last year continues. "Areas of the U.S. most at risk from damage connected to the Coronavirus pandemic spread out somewhat in the fourth quarter of 2020. But they still fell mainly along the East Coast, with significant pockets in certain areas, while other parts of the country seem to be less vulnerable," said Todd Teta, chief product officer with ATTOM Data Solutions. "This report is not a sign that any area actually took a fall in the fourth quarter. It's more a gauge of areas that may be more vulnerable if the market falters. In the coming months, much will depend on whether the country can halt the pandemic. We will continue to keep a close watch on home sales and prices to see how everything shakes out in 2021 and if changes hit different regions in different ways." Most vulnerable counties clustered around New York City, Philadelphia and Chicago Eighteen of the 50 U.S. counties most at-risk in the fourth quarter of 2020 from housing market troubles connected to the pandemic (from among the 499 counties with enough data to be included in the report) were in metropolitan statistical areas around New York, NY, Philadelphia, PA, and Chicago, IL. They included eight in or near the New York City suburbs (Bergen, Essex, Ocean, Passaic and Sussex counties in New Jersey, along with Dutchess, Orange and Rockland counties in New York), and four around Philadelphia, PA (Burlington, Camden and Gloucester counties in New Jersey plus Delaware County, PA). The other six were in the Chicago, IL, suburbs (DuPage, Kane, Kendall, Lake, McHenry and Will counties). The New York and Chicago metropolitan areas saw increases from the third quarter of 2020 in the numbers of counties in the top 50 list. While seven of Connecticut's eight counties made the top 50 list in the third quarter of 2020, just two did in the fourth quarter – Litchfield and Windham counties. The number of counties on the list in the Baltimore, MD, metro area also fell notably in the fourth quarter, from four to one (Carroll County) and dropped from four to two in the Washington, D.C, area (Charles County, MD, and Prince George's County, MD). The only western counties among the top 50 most at risk from problems connected to the Coronavirus outbreak in the fourth quarter of 2020 were Butte County (Chico), CA; El Dorado County, CA (outside Sacramento); Humboldt County (Eureka), CA; Madera County, CA (outside Fresno); San Bernardino County, CA; Shasta County (Redding), CA; and Santa Fe County, NM. Louisiana also had four counties in the top 50 during the fourth quarter – Caddo Parish (Shreveport), Livingston Parish (outside Baton Rouge), Orleans Parish (New Orleans) and Tangipahoa Parish (north of New Orleans). Florida had another three – Bay County (Panama City) Charlotte County (outside Fort Myers) and Flagler County (outside Daytona Beach). Higher levels of unaffordable housing, underwater mortgages and foreclosure activity in most-at-risk counties Major home ownership costs (mortgage payments, property taxes and insurance) consumed more than 30 percent of average local wages in 36 of the 50 counties that were most vulnerable to market problems connected to the virus pandemic in the fourth quarter of 2020. The highest percentages in those counties were in Rockland County (65 percent of average wages needed for major ownership costs); El Dorado County, CA, (outside Sacramento) (57.8 percent); Bergen County, NJ (outside New York City) (55.3 percent); Delaware County, PA (outside Philadelphia) (52 percent) and Beaufort County (Hilton Head), SC (51.7 percent). Nationwide, major expenses on the median-priced home typically consumed 29.6 percent of average wages. At least 15 percent of mortgages were underwater in the third quarter of 2020 (the latest data available on owners owing more than their properties are worth) in 33 of the 50 most at-risk counties. Nationwide, 12.3 percent of mortgages fell into that category. Those with the highest underwater rates in those counties were Lowndes County (Valdosta), GA (36.8 percent of mortgages underwater); Hardin County, KY (outside Louisville) (32.8 percent); Cumberland County (Vineland), NJ (30.8 percent); Caddo Parish (Shreveport), LA (28.6 percent) and Atlantic County (Atlantic City), NJ (27.8 percent). More than one in 2,500 residential properties faced a foreclosure action in the third quarter of 2020 (the latest available data) in 29 of the 50 most at-risk counties. Nationwide, one in 5,048 homes were in that position. (Foreclosure actions dropped about 80 percent last year amid a federal moratorium on banks taking back properties from homeowners behind on their mortgages during the virus pandemic.) Those with the highest rates in those counties were Hardin County, KY (outside Louisville) (one in 1,032 residential properties facing possible foreclosure); Onslow County (Jacksonville), NC (one in 1,090); Caddo Parish (Shreveport), LA (one in 1,361); Saint Clair County, IL (outside St. Louis, MO) (one in 1,409) and Livingston Parish, LA (outside Baton Rouge) (one in 1,562). Counties least at-risk concentrated in Colorado, Massachusetts, Minnesota and Texas Eighteen of the 50 counties least vulnerable to pandemic-related problems from among the 499 included in the fourth-quarter report were in Colorado, Massachusetts, Minnesota and Texas. They were concentrated in the Denver, Boston, Minneapolis, Houston and Dallas metro areas. The largest of the 50 least at-risk counties were Harris County (Houston), TX; King County (Seattle), WA; Clark County (Las Vegas), NV; Tarrant County (Fort Worth), TX and Middlesex County, MA (outside Boston). Others among the 50 least at-risk counties with a population of at least 500,000 included Hennepin County (Minneapolis), MN; Suffolk County (Boston), MA; Essex County, MA (outside Boston); Norfolk County, MA (outside Boston) and Denver County, CO. Lower levels of unaffordable housing, underwater mortgages and foreclosure activity in less vulnerable counties Major home ownership costs (mortgage, property taxes and insurance) consumed less than 30 percent of average local wages in 33 of the 50 counties that were least at-risk from market problems connected to the virus pandemic in the fourth quarter of 2020. The lowest percentages in those counties were in Marion County (Indianapolis), IN (18.6 percent of average local wages required for major ownership costs); Benton County (Rogers), AR (19.6 percent); Potter County (Amarillo), TX (20.4 percent); Niagara County (Niagara Falls), NY (20.5 percent) and Macomb County, MI (outside Detroit) (20.6 percent). More than 15 percent of mortgages were underwater in the third quarter of 2020 (with owners owing more than their properties are worth) in none of the 50 least at-risk counties. Those with the lowest rates in those counties were Chittenden County (Burlington), VT (3.5 percent); King County (Seattle), WA (4.8 percent); Washington County, OR (outside Portland) (4.8 percent); Marion County (Salem), OR (5.2 percent) and Boulder County, CO (5.2 percent). More than one in 2,500 residential properties faced a foreclosure action in the third quarter of 2020 in none of the 50 least at-risk counties. Those with the lowest rates in those counties included Eau Claire County, WI (no residential properties facing possible foreclosure); Norfolk County, MA (outside Boston) (one in 277,275); Marion County (Salem) OR (one in 125,190); Clark County (Las Vegas), NV (one in 88,856); Suffolk County (Boston), MA (one in 83,310) and Middlesex County, MA (outside Boston) (one in 79,073). Report methodology The ATTOM Data Solutions Special Coronavirus Market Impact Report is based on ATTOM's third-quarter 2020 residential foreclosure and underwater property reports and fourth-quarter 2020 home affordability report. (Press releases for those reports show the methodology for each.) Counties with sufficient data to analyze were ranked based on the percentage of residential properties with a foreclosure filing during the third quarter of 2020, the percentage of properties with outstanding mortgage balances that exceeded estimated market values in the third quarter of 2020 and the percentage of average local wages need to afford the major expenses of owning a median-priced home in the fourth quarter of 2020. Ranks then were added up to develop a composite ranking across all three categories. Equal weight was given to each category. Counties with the lowest composite rank were considered most vulnerable to housing market problems. Those with the highest composite rank were considered least vulnerable. 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 20TB 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, property data APIs, real estate market trends, marketing lists, match & append and introducing the first property data delivery solution, a cloud-based data platform that streamlines data management – Data-as-a-Service (DaaS).
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Is the Beach So Last Year?
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Realtor.com Top Housing Markets: Tech Hubs and State Capitals Will Dominate 2021
Sacramento, Calif., San Jose, Calif. and Charlotte, N.C. are forecasted to see the highest home price appreciation and sales growth in 2021 SANTA CLARA, Calif., Dec. 7, 2020 -- Millennial homebuyers, relative affordability, and strong local economies will drive realtor.com's Top Markets of 2021 to lead the nation in a year when real estate is expected to be strong coast to coast. This year's list in rank order includes: Sacramento, Calif., San Jose, Calif., Charlotte, N.C., Boise, Idaho, Seattle, Phoenix, Harrisburg, Pa., Oxnard, Calif., Denver, and Riverside, Calif. (see below for full 100 market ranking). Based on realtor.com®'s local market forecast, the areas on this list are expected to see the strongest home price and sales growth in the U.S. in 2021. In fact, home prices across the top 10 markets are forecasted to increase by 6.9% and sales by 13.1% year-over-year, which is significantly higher than the national projection of 5.7% price appreciation and 7.0% sales growth. "This past year, we've all become more reliant on technology to work, learn, and maintain personal connections. The technology hubs that make this possible are thriving, as are their housing markets," said realtor.com®'s Chief Economist, Danielle Hale. "Additionally, the relative stability of government jobs in the past year has driven home prices and sales in several state capitals to the top. Home buyers, particularly younger first-time buyers, looking in one of these markets should expect rising prices and heavy competition. Meanwhile, sellers will remain in a position of power, but will find themselves on the other side of the bargaining table when buying their next home." Tech Titans A common driver of this year's top markets is the prevalence of high paying tech jobs. Tech salaries in Sacramento, San Jose, Boise, Denver, and Seattle have driven home prices through the roof over the last several years and this trend is expected to continue in 2021. Additionally, areas such as Charlotte and Phoenix are quickly establishing themselves as rising tech hubs with a plethora of jobs in technology, as well as education, government and healthcare. In fact, the projected unemployment rate for 2021's top markets is 7.9% compared to the national average of 8.2%. Tech-related jobs make up an average of 8.7% of the workforce in this year's top markets list compared to 6.4% of the U.S. as a whole. Relative Affordability Home prices in eight of the top 10 markets are more expensive than the average of the top 100 markets. But many are relatively affordable when compared to their nearby counterparts or offer significantly more square footage for a similar price. For example, buyers priced out of New York ($216 per sq.ft.) can find increased space and affordability in Harrisburg ($122 per sq.ft.), while buyers in Sacramento ($284 per sq.ft.) can get more bang for their buck than nearby San Francisco ($679 per sq.ft.). This is also true when comparing Oxnard ($413 per sq.ft.) and Riverside ($247 per sq.ft.) with Los Angeles ($556 per sq.ft.). Millennial Magnets On average, the top 10 markets have a larger share of millennials (14.1%) than the U.S. as a whole (13.5%). A market's ability to lure millennials is a good indicator of the livability of the area including: job opportunities, dining, and entertainment. However, when it comes to millennials purchasing homes in the top 10, two trends are emerging. In half of this year's top markets, including: Charlotte, Boise, Phoenix, Harrisburg and Riverside, millennials are already homeowners and expected to make the majority of the home purchases that drive home price growth and sales. In the other group of markets, such as San Jose, Seattle, and Denver, the high cost of living has made homeownership a difficult accomplishment, not only for millennials but for all generations. The high number of millennials in the market shows how popular these markets have become, but older, more financially established generations will be the ones purchasing the majority of the homes next year. State Capitals Half of the top markets are state capitals, including: Sacramento, Boise, Phoenix, Harrisburg and Denver. The strong government presence in these areas offers stability for their local economy and jobs markets. This is especially important after a year when a global pandemic has significantly disrupted local economies across the nation. On top of the government jobs, these areas also have strong job diversity in both the public and private sectors, including education, healthcare, technology, manufacturing and military, which is positioning them for solid growth in the future. The average GDP growth rate for the top markets is forecasted to be 5.34% in 2021, versus 4.85% for the top 100 metros. 2021 Top Markets 1. Sacramento Median home price: $554,050 Home price change: +7.4 percent Sales change: +17.2 percent Combined sales and price growth: +24.6 percent Sacramento takes first place on this year's top markets list. Due to the increased freedom to work remotely, buyers from the San Francisco Bay Area are flocking to California's state capital for the increased affordability, without having to completely uproot their lives in Northern California. The area draws a diverse crowd ranging from first time homebuyers to empty nesters looking to downsize. Many young families are also drawn to Sacramento for the area's strong school system, including West Campus high school which has a 99% graduation rate and received a 10/10 on greatschools.org. When residents want a change of scenery, it's a short trip to Lake Tahoe, wine country or San Francisco. 2. San Jose Median home price: $1,199,050 Home price change: +10.8 percent Sales change: +10.8 percent Combined sales and price growth: +21.6 percent Also located in Northern California, San Jose is the largest city in Silicon Valley. Apple, Google, Facebook, Linkedin and even realtor.com® are all within commuting distance of San Jose. Unsurprisingly, the area's strong economy and top notch school system, including Lynbrook High School (10/10 greatschools.org), lure top tech talent from all over the country. Those looking for a change of scenery can easily drive to San Francisco or the nearby mountains. Without a ton of room for new construction, inventory in the area is tight, so serious buyers should expect to pay above asking price. 3. Charlotte Median home price: $368,819 Home price change: +5.2 percent Sales change: +13.8 percent Combined sales and price growth: +19.0 percent Rounding out the top three on this year's top markets list is Charlotte. The area's high quality of life, great weather, strong school system including Providence High (10/10 greatschools.org) and rich history draw a diverse mix of both young and old buyers. Millennials are beginning to transition from the downtown city center toward the suburbs as they raise families and take advantage of the increased affordability and extra space. With access to both the beach and mountains, Charlotte has something for everyone, including kayaking along the Catawba River and hiking the Carolina Thread Trail. Housing supply has been tight, but new construction is booming as builders try to meet current demand. Charlotte was No. 7 on 2018's top markets list. 4. Boise Median home price: $445,000 Home price change: +9.1 percent Sales change: +9.8 percent Combined sales and price growth: +18.9 percent Idaho's capital city is firmly establishing itself as a rising tech hub in the U.S. The area's high quality of life and strong economy draw people from all over the country, with the biggest influx coming from Washington, Oregon and California. This trend has accelerated as the ability to work remotely has drawn many young workers looking for a slower pace of life, increased affordability, and access to the area's many outdoor amenities. Boise offers residents a mild four season climate, a vibrant revitalized downtown with plenty of entertainment, as well as a plethora of restaurants and boutique shopping. Outdoor enthusiasts are drawn to the area's adrenaline pumping outdoor activities such as white water rafting and four different ski resorts. New construction has been booming in Boise over the past few years as builders scramble to keep up with rising demand. Boise is no stranger to realtor.com®'s Top Markets list, it was No. 1 in 2020 and No. 8 in 2019. 5. Seattle Median home price: $629,050 Home price change: +9.7 percent Sales change: +8.9 percent Combined sales and price growth: +18.6 percent Coming in fifth is Seattle, which is home to some of America's largest and most well known companies including: Amazon, Starbucks, Costco, Microsoft and Nordstrom. The area's booming tech scene, high quality of life, and access to both the water and mountains draws a crowd from all over the country. New and growing families will find a strong school system, including Greenwood Elementary School which scored a perfect 10/10 on greatschools.org, as well as four other schools which received scores of 9/10. Driven by high home prices and the desire for more space, buyers are beginning to search for homes further from the downtown center. This is especially true for first time homebuyers. 6. Phoenix Median home price: $412,260 Home price change: +7.0 percent Sales change: +11.4 percent Combined sales and price growth: +18.4 percent Arizona's state capital has become a magnet for both younger buyers looking to take advantage of the affordable cost of living, as well as retirees who want to soak up the sun. Recently, the area has seen a large influx of people from pricey West Coast markets -- San Francisco, Seattle and Portland. While builders have struggled to meet the rising demand for housing, Phoenix set a record for new home permits in March, April and May, so new inventory is on the way. Phoenix offers residents all the big city amenities of shopping, dining and entertainment, without the traffic of larger metropolitan cities. Additionally, those who want to get out and hit the golf course have over 400 courses to choose from. Phoenix is a business friendly city and has a diverse list of large employers in both the public and private sectors from education, government and healthcare to technology, manufacturing and military. Phoenix was No. 5 on 2019's top markets list. 7. Harrisburg Median home price: $262,000 Home price change: +3.8 percent Sales change: +14.4 percent Combined sales and price growth: +18.2 percent The state capital of Pennsylvania has become a hot spot for buyers looking for the quiet suburban lifestyle, more space, and increased affordability. Harrisburg is centrally located near New York, Baltimore, Washington D.C., Pittsburgh and Philadelphia. Millennials in particular have been drawn to the area as both first time homebuyers and move-up buyers looking for more space for their growing families. Harrisburg boasts a strong job market not only for government employees working at the state capital, but those in healthcare and shipping industries as well. One of the biggest draws to the area is the ability to go from downtown, to the suburbs, to more rural areas, in under 15 minutes. 8. Oxnard Median home price: $824,000 Home price change: +5.5 percent Sales change: +12.5 percent Combined sales and price growth: +18.0 percent Located north of Los Angeles on the Pacific Coast is Oxnard, Calif. The area is a mix of farmland and Pacific Coast beaches, such as Hollywood Beach -- a second home market for wealthy Angelanos looking for a break from the hustle and bustle of city life. Farmers in the area grow strawberries and lima beans and the annual Strawberry Festival is a big draw for Southern California locals. Thanks to its affordability, the area has seen a boost in demand from buyers seeking relief from Los Angeles and Orange County home prices. Beach homes in the area are significantly more affordable than those in Malibu or Santa Monica, making this a popular alternative for buyers hoping to get more bang for their buck. 9. Denver Median home price: $520,000 Home price change: +5.4 percent Sales change: +12.5 percent Combined sales and price growth: +17.9 percent Colorado's state capitol is located just outside of the Rocky Mountains. The area's housing market has been red-hot for the last several years and builders have struggled to keep up with the high demand for housing. Though the city is rapidly expanding, it still holds much of its Old West charm, and its cost of living remains relatively affordable compared to other Western markets. Many of Denver's residents are outdoor enthusiasts who love to take advantage of the area's easy access to mountains, rivers and lakes. No matter the season, there is an outdoor activity closeby. Denver's high quality of life is a major draw for many residents, as well as all the amenities of downtown. With boutique shopping, dining, and endless entertainment, the area has been supremely popular with millennials. Due to the area's spike in demand, home prices have grown rapidly, causing many first time home buyers to search further out from the downtown center. 10. Riverside Median home price: $475,050 Home price change: +5.5 percent Sales change: +12.4 percent Combined sales and price growth: +17.9 percent Located in the Inland Empire, Riverside, Calif., is named for its location along the Santa Ana River. Riverside draws many people who want to take advantage of Southern California's temperate weather, but don't want to pay Los Angeles or Orange County home prices. Riverside is centrally located, just 30 minutes to the beach, mountains or desert, making it a great location for anyone that loves to be outdoors. Additionally, it's in close proximity to Southern California's attractions of Disneyland in Anaheim, skiing in the San Bernardino Mountains, wine tasting in Temecula or the endless entertainment in Los Angeles. Due to Southern California's high cost of living, Riverside's relative affordability and strong school system including Riverside Stem Academy (9/10 greatschools.org), have made it a popular destination for first time homebuyers, growing families, and retirees. 2021 Top Housing Markets Ranked About realtor.com® Realtor.com® makes buying, selling and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. 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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Realtor.com 2021 Housing Forecast: Sellers Will Get Top Dollar as Buyers Struggle with Affordability
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Rent Declines Accelerate in Tech Hubs as Remote Work Prompts the Desire for More Space
Rents continue their downward spiral throughout the San Francisco Bay Area along with Manhattan, Boston, Seattle and Washington, D.C. SANTA CLARA, Calif., Nov. 13, 2020 -- Rents in the nation's tech hubs continued their descent in October, falling by one-third for a studio apartment in San Francisco year-over-year, according to the realtor.com monthly rental report released today. The report also showed that while the declines have begun to slow down nationally, renters are seeking both affordability and more space the longer they work from home. Nationally, rental growth rates are still far below where they were pre-COVID, but declines are starting to lessen. The median studio unit rent in October was $1,316, down 0.8% year-over-year. The median one-bedroom rent in October was $1,495, up 1.1% year-over-year. The median two-bedroom rent continued to increase in October. At $1,869, it was up 2.6% year-over-year, approaching its pre-COVID annual growth rate of 3.5%. "The combination of tech companies extending their work from home policies through mid-2021 or even indefinitely, and the desire for more space, especially with the weather cooling, is putting pressure on rents in the most expensive urban metros and tech hubs," said realtor.com® Chief Economist Danielle Hale®. "Just as we saw with buyers, many renters appear to be looking to escape their urban life altogether, while others are looking for more space. Nationwide, rents for two-bedroom units have begun to bounce back and if the trend continues, price growth could return to pre-COVID levels early next year." San Francisco led the nation in declines with monthly rents falling 33.3%, 26.3% and 23.4% for studio, one-bedroom and two-bedrooms units year-over-year, respectively. Rents for studios and one-bedrooms in nearby Santa Clara and San Mateo counties also saw double-digit decreases in October. Outside of the Bay Area, Manhattan, Boston, Seattle, and Washington, D.C. were among the metros seeing the largest year-over-year declines. These markets also represent some of the most expensive cities in the country, giving rents the most room to fall. In October, the median studio rent in Manhattan was $2,395, down 20.0% year-over-year, accelerating from 15.4% a month earlier. One-bedroom rents in Manhattan were $3,250, down 16.7% compared to last year, and accelerating from a decrease of 11.7% in September. Two-bedroom rents in Manhattan were $5,333 in October, down 11.1% compared to last year, accelerating from a 4.1% decline a month earlier. Top 10 markets with largest one-bedroom rent decreases in October Top 10 markets with largest two-bedroom rent decreases in October Methodology: Rental units include apartment communities as well as private rentals (condos, townhomes, single-family homes). National rents were calculated by averaging the medians of the 100 largest counties, except for studios, which were based on 94 of those counties with at least 20 studio listings. About realtor.com® Realtor.com® makes buying, selling and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. 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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Northeastern Housing Markets Remain Most at Risk of Economic Impact from Coronavirus Pandemic
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Realtor.com Red Versus Blue Report: Blue State Americans Are Searching For Homes In Swing States; What Does That Mean For The Presidential Election?
Americans are migrating from Democratic urban areas to more affordable suburbs and rural areas that lean Republican. But will they turn any red states blue? SANTA CLARA, Calif., Oct. 6, 2020 -- The ongoing trend of Americans migrating from densely populated typically Democratic urban areas to more affordable suburbs and rural areas that historically lean more Republican could potentially have an impact on the outcome of the upcoming presidential election, according to a new analysis released today by realtor.com®. The report reveals that the majority of out of town searches for homes in the battleground states of Florida, Michigan, Pennsylvania and Wisconsin come from states and counties that lean blue. The analysis examines the searches of home shoppers on realtor.com® looking outside their local market over the last three years. For the purpose of this study, the analysis assumes the political affiliation of the home searchers is proportional to the distribution of their county of origin during the 2016 presidential election. It does not account for changes in political affiliation, other factors that may cause someone to shift their allegiances, or the migration of renters, who tend to move more frequently. "For years homebuyers have looked from urban areas to more suburban and rural areas to find the affordability that makes buying a home possible. The additional time at home and flexibility to work remotely as a result of the pandemic have further fueled this trend," said realtor.com® Chief Economist Danielle Hale. "Although many factors will ultimately influence voting decisions, what we may learn in just a little over a month is whether these shoppers ended up changing the results in the states they moved into, or not. We know a number of blue staters' interest in swing state moves; but we just don't know how many of them actually did move, and whether they themselves vote Democratic or Republican." According to the analysis, which examined all 50 states and the District of Columbia, the majority of out of town searches for homes in Florida, Michigan, Pennsylvania and Wisconsin -- four of the 13 identified by a Politico analysis as battleground states -- are coming from states and counties that lean blue. These search patterns also indicate that, with the exception of Georgia, the 30 states that went red in 2016 may be impacted one way or another by blue staters moving in. At the same time, eight blue states and the District of Columbia are seeing an influx of people from states that are red. "A critical question - as blue staters move to swing or red states, are they Democratic voters seeking out a more suburban or rural lifestyle, or are they Republican voters wanting to move out of a more Democratic neighborhood or do their political opinions shift as they move to areas that have traditionally supported Republican candidates? We may know how to better answer these questions, once the votes are counted," said Hale. Out of state searches in the four potential swing states Florida (Red in 2016 and considered a toss up state in the upcoming election by Politico) Realtor.com® analysis: The biggest share of non-local home searches in Florida are coming from Georgia (a red state in 2016) followed by New York, New Jersey, Illinois and California, all blue states in 2016. At the county level, the highest share of non-local searches in the state come from all blue counties -- Dekalb County, Ga., Cook County, Ill., Fulton County, Ga., New York County, N.Y. and Essex County, N.Y. Michigan (Red in 2016 and considered to be leaning blue in the upcoming election by Politico) Realtor.com® analysis: The biggest share of non-local home searches in Michigan are coming from Ohio, Illinois, California, Georgia and Florida. Although only two of the top viewing states are blue, the highest share of non-local searches are from blue counties -- Cook County, Ill., Summit County, Ohio, Dekalb County, Ga., Cuyahoga County, Ohio and Franklin County, Ohio. Pennsylvania (Red in 2016 and considered to be leaning slightly blue in the upcoming election by Politico) Realtor.com® analysis: The biggest share of non-local home searches in Pennsylvania are coming from New York, New Jersey, Maryland, Ohio and Virginia. Of these five states, only Ohio was red in 2016. At the county level, the highest share of non-local searches in the state come from all blue counties, Washington, D.C., New York County, N.Y., Essex County, N.J., Kings County, N.Y. and Montgomery County, Md. Wisconsin (Red in 2016 and considered to be a toss up in the upcoming election by Politico) Realtor.com® analysis: The biggest share of non-local home searches in Wisconsin are coming from Illinois, Minnesota, Pennsylvania, Iowa and California, three of which (Illinois, Minnesota and California are blue states). At the county level, four of the five highest share of non-local searches in the state come from blue counties -- Cook County, Ill., Lake County, Ill., Hennepin County, Minn. and Bucks County, Pa. The exception is McHenry County, Ill. Editor's note: This analysis is not a prediction of the outcome of the election. Whether these home searches benefit either political party depends on factors that cannot be accurately measured: first, realtor.com® does not have data on how many of these searches actually resulted in a move to a new market, though these searches have historically correlated well with migration patterns; and second, there is no way to determine the political leanings or party affiliation of those who do cross-market searches and/or ultimately move. About realtor.com® Realtor.com® makes buying, selling and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. 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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Rental Beast September Market Report: Conversation with Brian Horrigan, Chief Economist at Loomis Sayles
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People Are Searching in the Suburbs More Than Ever Before
Remote work, desire for more space is driving home shoppers to less dense, relatively nearby metros SANTA CLARA, Calif., Aug. 10, 2020 -- America is looking to move again, and the COVID-19 pandemic is influencing the U.S. housing market both in terms of where people are searching and what they are searching for, according to realtor.com®'s quarterly Cross Market Demand Report, which measures search data to provide insight into where shoppers are looking for their next home. After an initial shift in search habits at the onset of the coronavirus in the U.S., home shoppers looking outside their current metro area for homes have surpassed pre-COVID levels, and more are increasingly setting their sights on the suburbs. During the second quarter of 2020, 51% of views from urban residents of the U.S.' 100 largest metros went to suburban properties in their metros, an all-time high since realtor.com® began tracking metro level search data in 2017. "We see lingering effects of the coronavirus on shopping behavior and preferences. In the Northeast, especially, people are now as likely as before the pandemic to be looking for a home in a market that's not where they currently live. However, those looking elsewhere are much more likely to be looking in smaller, nearby markets," said realtor.com® Chief Economist Danielle Hale. "With remote work more common and accepted, it seems that people are looking to locate further from the office either to enjoy more space at a better price, or get closer to nature in the mountains or at the beach. At this point, they are not venturing too far away." The search data analysis reinforces the findings of a recent realtor.com® Harris X consumer survey of 2,000 active home shoppers, which indicated that home purchase decisions are being influenced by consumers' ability to work remotely, desire for more space and their willingness to commute longer to get what they want in a home. Northeastern markets heat up as search activity is shifting to smaller, less dense areas Following a decline in searchers looking outside their local market during the second quarter, Northeastern markets saw an uptick in interest in July. This activity was primarily driven by residents of the region's larger metros looking in smaller, nearby bedroom communities or vacation home markets such as East Stroudsburg, Penn, Bridgeport-Stamford-Norwalk, Conn. and Atlantic City and Ocean City, N.J. The same trend was evident in the New York metro area, where demand grew in outer-lying counties, such as Nassau and Suffolk County, N.Y., and Monmouth and Ocean County, N.J., but decreased slightly in Manhattan and the Bronx. Remote work policies could influence the West With many tech companies extending their work from home policies and employees anticipating that their employers will afford more flexibility for remote working, the potential exists for home shoppers to search farther from home as the year progresses. During the second quarter, people looking for homes in Seattle, Portland, Los Angeles and San Diego from outside markets cooled, while Riverside-San Bernardino, San Francisco, and Sacramento saw an improvement in out-of-market home-buying interest. Demand in Riverside was heavily driven by Los Angeles residents, while the market also saw demand from San Diego searchers. Sacramento homes were primarily viewed by home shoppers from San Francisco, San Jose and Los Angeles, which could be prompted by remote workers seeking affordability and more space. San Francisco's out-of-market demand, however, counters these broader trends. Interest in San Francisco was primarily driven by San Jose, perhaps as nearby shoppers see an opportunity to get into the pricey, exclusive market. South and Midwest cool as COVID cases heat up While the Southeast, especially South Florida and the states of Texas, Mississippi, Alabama, Georgia and South Carolina saw an increased interest from searchers in other markets during the second quarter, out of market searches slowed in July as the region battled a spike in COVID-19 cases. At the same time, some of the region's largest metros, including Atlanta, Dallas, Houston, Miami and Tampa, saw inbound searches decrease in July compared to the second quarter. The Midwest saw increasing out of market shopping interest before the pandemic hit, but has failed to recapture that strength since. Midwestern metropolitan areas saw the rate at which home shoppers searched outside their home metros almost consistently decrease since February, other than a small improvement in May. This signals that Midwestern metros are likely still struggling to return to normal, and is consistent with concern for emerging COVID hot-spots in the region and pre-pandemic job market weakness. For more information, read the full report here. About realtor.com® Realtor.com® makes buying, selling and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. 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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Remote Work to Drive Home Purchase Decisions in the Next Six Months
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Homebuying 2020: Buyers Intent on Finding a Three-Bedroom, Two-Bath House with a Garage and Remodeled Kitchen
Post COVID they are willing to pay more and commute longer distances to get it, survey finds SANTA CLARA, Calif., July 22, 2020 -- At a time when things seem to be changing more rapidly than ever before, a realtor.com® HarrisX survey of active home shoppers released today shows that homebuyers are largely looking for the same characteristics in a new home, before and after COVID. However, after months of quarantine and economic uncertainty, many are shifting the ways they approach the buying process. To identify what's changed and what hasn't, realtor.com® compared the results of its most recent survey conducted in June to a similar survey of prospective buyers in March. Both surveys polled 2,000 people looking to purchase a home within the next 12 months. "The COVID pandemic has disrupted nearly every aspect of American life. How we live and work has changed dramatically, unemployment went from record lows to historic highs in weeks and the U.S. economy is in a recession following the longest expansion in history," said realtor.com® Senior Economist, George Ratiu. "While the health and economic impact has been significant, the U.S. housing market has remained surprisingly resilient, and consumers continue to view home ownership as the foundation of the American Dream. Home buyers remain steadfast in the main attributes they seek--three bedrooms, two bathrooms and a garage. However, the quarantine has made people rethink where and why they want a new home." Post-COVID Findings The global pandemic has sent shockwaves through the U.S. economy, but housing has shown resilience and that can be seen in the survey results. According to the data, over one-third of homebuyers are more optimistic about buying a home after COVID. Additionally, despite record high unemployment levels COVID has offered a few silver linings for homebuyers -- nearly two-thirds believe shelter-in-place orders have helped them save money. Additionally, as the Federal Reserve continues to move with caution on historically low interest rates, and bond investors remain concerned about the recovery outlook, many home buyers are seeing lower mortgage rates. Among them, three-quarters say it is impacting their home search, most often helping them look for larger homes, in nicer neighborhoods. Equal shares are using lower mortgage rates to stretch their budget to get into a more expensive home, or pocket the savings by decreasing their monthly mortgage budget. In addition, home shoppers are willing to live farther away from their workplaces to find the right house, with 9 percent of respondents to the summer survey indicating they would be willing to commute over an hour, compared with the 3 percent who chose the same response in the spring. Spring vs. summer -- three bedrooms, two baths, up-to-date kitchen and garage reign supreme Price range, number of bedrooms and bathrooms, as well as most desirable home features haven't changed in buyers' minds. In fact, both surveys found that the vast majority of buyers -- 65 percent -- are shopping for homes priced under $350,000. The national median priced home in the U.S. was $342,000 in June. Additionally, garages continued to reign supreme as the most important feature for buyers in both the early spring and summer surveys. A renovated kitchen and large backyard space ranked in the top five features people want in both surveys. Interestingly, despite the stay at home orders, a large backyard ranked fairly consistent in both surveys, only gaining a 1 percent increase from 20 percent in the spring survey to 21 percent in the summer survey. Post-COVID shoppers are willing to pay more, commute longer and want move-in ready But the buying process has been impacted by the pandemic, especially buyer timelines, desired condition of the property, as well as how far buyers are willing to go financially. According to the June 2020 survey, 41 percent of buyers said they are looking to buy sooner because of COVID, 44 percent said it had no impact, and 15 percent said they have slowed their purchase timeline. Additionally, 84 percent of summer buyers are looking for a move-in-ready home, up 10 percent from 74 percent in March. At the same time, the current economic uncertainty is translating into a lower intention to compete financially among home buyers compared to this spring. After COVID, 6 percent fewer home shoppers report planning to put down a larger earnest money deposit, 6 percent fewer plan to offer above asking price, 6 percent fewer plan to offer all cash, 7 percent fewer will forgo a financing contingency, and 3 percent fewer home shoppers plan to put down more than a 20 percent down payment Additionally, while 38 percent of shoppers have increased their target price range since starting their home search, 25 percent of shoppers are looking for a lower priced home because they want to have more savings just in case (47 percent), are worried about financial security (37 percent), are concerned over general economic conditions (37 percent) or their income has decreased (26 percent). For more information about the realtor.com® home buying surveys, please visit here. About realtor.com® Realtor.com® makes buying, selling and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. 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. About HarrisX HarrisX is a leading opinion research company that specializes in online polling, mixed-mode polling, and data analytics. The company has a thirteen-year history assessing public opinion and behavior in the telecom, media, and technology industries through syndicated and custom research services. HarrisX runs the Mobile Insights and Total Communication Surveys, the largest syndicated consumer insights trackers in the United States for the TMT space, which include over 60,000 monthly respondents; the Telephia (beta) metering application, which captures behavioral data; and HarrisX Overnight Poll, which delivers results of general population and voter surveys within 24 hours, looking at Americans' opinions on society, politics, technology, and the economy. For more information, visit: www.harrisx.com.
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Realtor.com Launches Weekly Housing Recovery Index
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Realtor.com Forecasts a Year of Ups and Downs for Housing Market
Home sales to fall 15 percent in 2020 as prices flatten and mortgage rates end the year under 3 percent SANTA CLARA, Calif., May 13, 2020 -- Driven by pent up buyer demand and low interest rates, home sales in the U.S. will rebound in late summer and early fall as fears of the coronavirus begin to wane before experiencing a downturn again later in the year, according to a revised 2020 housing forecast released today by realtor.com®. The updated forecast finds that despite an uptick in transactions during the third quarter largely driven by millennials, home sales will be down 15 percent year-over-year. The forecast also expects home prices to flatten nationally as demand shifts to the secondary markets, which offer buyers more affordability and space. According to realtor.com® Chief Economist Danielle Hale, the path forward for home sales will resemble a W shape with homes sales rebounding in July, August, and September as fears of the coronavirus taper off and buyers return to the market to make up for the lost spring homebuying season before dipping again in the final months of the year as virus infections spike again and the lingering impact of the high unemployment rates are felt. "The U.S. housing market started 2020 with substantial momentum. With some of the best home sales and housing starts in more than a decade, our biggest challenge going into the spring home-buying season was a lack of for sale homes. The coronavirus pandemic has kept both buyers and sellers on the sidelines, preserving market balance, for now," Hale said. "As cities and states begin the slow process of reopening, we're going to see a see-saw recovery with ups and downs that will favor the nation's secondary markets in the short-term." Hale added, "The pandemic is leaving an imprint on the fabric of American life, culture, and preferences which we could see for years to come. After experiencing life under quarantine, many buyers are searching for affordability and greater space, which is driving demand out of the nation's largest metros and into surrounding smaller towns." The updated forecast projects mortgage rates to drop to new lows below 3 percent by the end of the year, primarily driven by an accommodating Fed and tepid economic outlook. Although rates will be favorable, the qualifying criteria will be tougher than normal as lenders seek to mitigate their own risks amid the unfolding economic uncertainty globally. The stricter qualifying criteria will require buyers to have higher credit scores in addition to more cash for down payments. Shopping around for the best rates and terms will be particularly important over the next year. Home prices are projected to flatten, increasing just 1.1 percent for the calendar year and possibly registering small declines by the end of 2020. With many sellers remaining on the sideline and a decline in housing starts, inventory will remain constricted. Under normal market conditions, prices would be expected to skyrocket as inventory evaporates, but buyer demand is expected to see-saw throughout the year as secondary waves of coronavirus infections continue to spread throughout the U.S. During these periods, sales are forecasted to take a hit as sellers de-list properties and buyer demand abates. Buyers will have difficulty finding available homes for sale Although qualifying for a loan will be more stringent, finding a home for sale will still remain the largest hurdle this year. The number of new homes for sale was down 45 percent year-over-year in April. However, with home prices expected to remain relatively stable, potential home buyers should have less competition from all cash investment buyers unlike the 2008 recession where they dominated the market. Buyers should expect periods of very low inventory turnover, especially if subsequent COVID-19 flare-ups occur, creating a 'what you see is what you get' environment. In some areas, buyers may find sellers leaning heavily on digital technology, such as virtual tours, instead of hosting traditional open houses. Determined buyers may need to be prepared to pull the trigger on a home sight unseen. Sellers will take a step back from the market Sellers are expected to face their own array of challenges in 2020. A well priced home would normally generate multiple offers, however, that may not be the case this year. Many sellers, who will also be subsequent buyers, will find the slower pace of sales and longer time on market have made timing a sale and a corresponding home purchase increasingly difficult compared to prior years. A lack of new homes for sale this spring -- traditionally the busiest time of year for real estate -- has signaled that sellers have adopted a certain level of patience in listing their homes. Market Drivers Baby Boomers - Many Baby Boomers, who have already held onto properties longer than expected, may decide to postpone their home sale another year until things begin to normalize. This will further constrict the number of homes for sale. The Baby Boomer generation may see their share of home purchases dwindle in 2020 as members of the generation step back from the marketplace. Millennials - Millennials will continue to be a dominant buying force in the market. Because millennials are making home purchases from a less discretionary perspective, they will continue to grow their share of home purchases. Millennials are projected to make up 50 percent of home purchases in 2020, but this number could grow if older generations decide to step back from the market. Secondary Markets - Secondary markets throughout the U.S. with resilient jobs markets could see greater than normal demand as buyers continue to search for affordability and additional space. As these markets heat up, we also expect to see a change to the mix of homes available for sale nationwide. As the mix of homes for sales shifts, we could see the national listing price decline to reflect the change towards more affordable homes. Election - The 2020 presidential election will continue to be a wild card this year. Historically, economic strength is a good predictor of how people will vote. Global Economy - The global economy will be key to watch this year. The U.S. is heavily dependent on imports and exports, so if the global economy is struggling, the U.S. will feel that impact. As the U.S. and the rest of the world continue to fight the COVID-19 pandemic, economic health here and abroad will be extremely important. EDITOR'S NOTE: The realtor.com economics team is continually tracking the impact of the coronavirus pandemic on the U.S. economy and housing market. The team's reports and analysis are available here. About realtor.com® Realtor.com® makes buying, selling and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. 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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Nearly 3 in 4 Realtors This Week Report Sellers Haven't Lowered Listing Prices to Attract Buyers, Suggesting Calmness and No Panic Selling by Homeowners
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U.S. Housing Markets Vulnerable to Coronavirus Impact Clustered in Northeast and Florida
Nearly Half of the 50 Most Vulnerable Counties in New Jersey and Florida; Midwest and West Regions Less At Risk of Housing-Market Challenges IRVINE, Calif. -- April 7, 2020 -- ATTOM Data Solutions, curator of the nation's premier property database and first property data provider of Data-as-a-Service (DaaS), today released a Special Report spotlighting county-level housing markets around the United States that are more or less vulnerable to the impact of the Coronavirus pandemic. The report shows that the Northeast has the largest concentration of the most at-risk counties, with clusters in New Jersey and Florida, while the West and Midwest have the smallest. The report reveals that housing markets in 14 of New Jersey's 21 counties are among the 50 most vulnerable in the country to the economic impact of the Coronavirus. The top 50 also include four in New York, three in Connecticut and 10 from Florida, but only one in California, none in other West Coast states and only one in the Southwest. Markets are considered more or less at risk based on the percentage of housing units receiving a foreclosure notice in Q4 2019, the percent of homes underwater (LTV 100 or greater) in Q4 2019, and the percentage of local wages required to pay for major home ownership expenses. Rankings are based on a combination of those three categories in 483 counties around the United States with sufficient data to analyze. Counties were ranked in each category, from lowest to highest, with the overall conclusions based on a combination of the three rankings. See below for the full methodology. "It's too early to tell how much effect the Coronavirus fallout will have on different housing markets around the country. But the impact is likely to be significant from region to region and county to county," said Todd Teta, chief product officer with ATTOM Data Solutions. "What we've done is spotlight areas that appear to be more or less at risk based on several important factors. From that analysis, it looks like the Northeast is more at risk than other areas. As we head into the Spring home buying season, the next few months will reveal how severe the impact will be." High-level findings from the analysis: New Jersey and Florida have 24 of the 50 most vulnerable counties from among the 483 included in the report. The 14 counties in New Jersey include five in the New York City suburban area: Bergen, Essex, Passaic, Middlesex and Union counties. The 10 counties in Florida are concentrated in the northern and central sections of the state, including Flagler, Lake, Clay, Hernando and Osceola counties. New York counties among the top 50 most at risk include Rockland County, in the New York City metropolitan area; Orange County, in the Poughkeepsie metro area; Rensselaer County, in the Albany metro area; and Ulster County, west of Poughkeepsie. Other southern counties that are in the top 50 are spread across Delaware, Maryland, North Carolina, South Carolina, Louisiana and Virginia. Among the counties analyzed, only two in the West and five in the Midwest (all in Illinois) rank among the top 50 most at risk from problems connected to the Coronavirus outbreak. The two western counties are Shasta County, CA, in the Redding metropolitan statistical area and Navajo County, AZ, northeast of Phoenix. The midwestern counties are McHenry County, IL; Kane County, IL; Will County, IL and Lake County, IL, all in the Chicago metro area; and Tazewell County, IL, in the Peoria metro area. Counties in the top 50 with a population of at least 500,000 people include Bergen, Camden, Essex, Middlesex, Ocean, Passaic and Union counties in New Jersey; Lake, Will and Kane counties in Illinois; Delaware County, PA; Prince George's County, MD; and Broward County, FL. Texas has 10 of the 50 least vulnerable counties from among the 483 included in the report, followed by Wisconsin with seven and Colorado with five. The 10 counties in Texas include three in the Dallas-Fort Worth metro area (Dallas, Collin and Tarrant counties) and two in the Midland-Odessa area (Ector and Midland counties). Eighteen of the 50 least at-risk counties have a population of at least 500,000, led by Harris County (Houston), TX; Dallas County, TX; King County (Seattle), WA; Tarrant County (Fort Worth), TX; and Santa Clara County, CA, in the San Jose metro area. Counties where median prices ranging from $160,000 to $300,000 comprise 36 of the top 50 counties most vulnerable to the impact of the Coronavirus. Counties with median home prices below $160,000 or above $300,000 make up 14 of the top 50 most vulnerable to the impact of the Coronavirus. Those with median prices below $160,000 are among the most affordable in the nation to local wage earners, while those where median prices exceed $300,000 have some homes with the highest equity and smallest foreclosure rates. Report methodology The ATTOM Data Solutions Special Coronavirus Market Impact Report is based on ATTOM's fourth-quarter 2019 residential foreclosure and underwater (LTV 100 or more) property reports and first-quarter 2020 home affordability report. Counties with sufficient data to analyze were ranked based on the percentage of properties with a foreclosure filing during the fourth quarter of 2019, the percentage of properties with outstanding mortgage balances that exceeded estimated market values in the fourth quarter of 2019, and the percentage of average local wages need to afford the major expenses of owning a median-priced home in the first quarter of 2020. Ranks then were added up to develop an overall ranking across all three categories. Equal weight was given to each category. Counties with the lowest composite ranks were considered most vulnerable to housing market problems. Those with the highest composite ranks were considered least vulnerable. 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, property data APIs, real estate market trends, marketing lists, match & append and introducing the first property data delivery solution, a cloud-based data platform that streamlines data management – Data-as-a-Service (DaaS).
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NAR Survey Finds Nearly Half of Realtors Say Home Buyer Interest Has Decreased Due to the Coronavirus Outbreak
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Exclusive Podcast Interview with NAR Chief Economist on Coronavirus Impact
National Association of REALTORS ® Chief Economist, Dr. Lawrence Yun, addresses the outlook of real estate markets in a special episode of "The Brian Buffini Show" podcast CARLSBAD, Calif., March 19, 2020 -- Chief economist and senior vice president of research for the National Association of REALTORS® (NAR), Dr. Lawrence Yun, will discuss the impact of COVID-19 on real estate and the economy in an exclusive interview with real estate leader, Brian Buffini, on The Brian Buffini Show podcast. Available Thursday, March 19, the two experts will weigh in on the state of the housing market, the short/long-term outlook and how real estate agents can safely serve their clients and community. In a wide-ranging interview covering a variety of topics, Dr. Yun reveals his belief that a vibrant real estate market should emerge after the coronavirus threat subsides, "even if it takes a little longer to contain it, there are such solid fundamentals for the real estate market, things will play out very well over the long haul." Buffini advises real estate professionals to be a reliable source of market information for their clients and use the downtime to enhance their professional skills. He wants everyone to realize that "The sky is not falling. This is a difficult time, but in many ways, it could be our finest hour." Dr. Lawrence Yun is a renowned leader in real estate and economics. His extensive research fuels major reports for NAR, which serves a membership of more than 1.4 million real estate agents. During this interview, respected industry guru Brian Buffini complements Yun with his more than 30 years of real estate expertise, providing much needed clarity in the midst of an uncertain economic situation. The Brian Buffini Show podcast is now in its 4th year of providing real estate professionals and consumers with Brian's insightful observations, along with the views his well-known guests. The podcast has become recognized as one of the most influential in the industry, with over 7 million downloads. What: "This Too Shall Pass: An Interview with Dr. Lawrence Yun," The Brian Buffini Show special episode Who: Lawrence Yun, Chief Economist for the National Association of REALTORS®, and Brian Buffini, Founder and Chairman of Buffini & Company Where: https://www.thebrianbuffinishow.com/ When: Available Thursday, March 19, 2020 @ 12:01 a.m. About Buffini & Company Buffini & Company is the largest coaching and training company in North America. Founded by real estate legend and master motivator Brian Buffini, the company provides a unique and highly-effective lead generation system. Buffini & Company's comprehensive business coaching, training programs and cutting-edge content have helped more than 3 million professionals in 37 countries improve their business, increase net profit and enhance their quality of life. Buffini & Company is headquartered in Carlsbad, California. For more information, please email [email protected] About Brian Buffini Brian Buffini, chairman and founder for Buffini & Company, was born and raised in Dublin, Ireland, emigrated to San Diego, California, in 1986 where he became the classic American rags-to-riches story. Discovering real estate, Brian quickly became one of the nation's top real estate agents working a non-traditional methodology based on building long-term relationships with clients. Today, he travels the world sharing a message of encouragement about how to "live the good life." His wit, wisdom and motivational style make him a dynamic speaker and podcast host, adept at helping people tap into their full potential and achieve their dreams. He is a New York Times, Amazon and Wall Street Journal best-seller with his latest book, "The Emigrant Edge." Learn more at brianbuffini.com.
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