You are viewing our site as an Agent, Switch Your View:

Agent | Broker     Reset Filters to Default
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.
MORE >
Wall Street Journal and Realtor.com Release Summer 2021 Emerging Housing Markets Index Report
Second quarterly report includes new data points on real estate taxes, and surfaces 13 new markets in the top 20, with Billings, MT, coming in at number one. NEW YORK and SANTA CLARA, Calif., July 20, 2021 -- The Wall Street Journal and Realtor.com today released the WSJ/Realtor.com Summer 2021 Emerging Housing Markets Index. The index ​analyzes key housing market data, as well as economic vitality and lifestyle metrics, to surface emerging housing markets that offer a high quality of life and are expected to see future home price appreciation. The Top-20 Emerging Markets for Summer 2021 are: Billings, Mont. Coeur d'Alene, Idaho Fort Wayne, Ind. Rapid City, S.D. Raleigh, N.C. Portland-South Portland, Maine Waco, Texas Johnson City, Tenn. Bangor, Maine Huntsville, Ala. Topeka, Kan. Jefferson City, Mo. Elkhart-Goshen, Ind. Colorado Springs, Colo. Eureka-Arcata-Fortuna, Calif. Springfield, Ohio Manchester-Nashua, N.H. Concord, N.H. Burlington, N.C. Elizabethtown-Fort Knox, Ky. Beginning this quarter, the index's methodology will include real estate tax data to offer a more comprehensive look at property ownership in each city. Areas with higher effective real estate taxes are ranked lower, while areas with lower effective real estate taxes are ranked higher. The addition of this metric generally boosted the ranking of areas in the South and West and caused many metro areas in the Northeast and Midwest, as well as Texas and Alaska, to be ranked lower. Taking a Deeper Dive Into the Top Markets: Returning Markets: The list saw 7 repeat markets among the top 20 including last quarter's number one spot, Coeur D'Alene, ​ID, and the new number one market, Billings, MT. Biggest Movers: Three markets among the top 20 jumped roughly 100 spots from last quarter. The biggest mover, Huntsville, AL, shot up 214 spots this quarter. Unemployment Improved: Across the 300 markets, unemployment dropped from 6.3% on average in the first quarter to 5.5% on average in the second quarter. Several of the returning top markets saw even stronger improvements. Smaller Markets Continue to Rank Well: Similar to last quarter, the top 20 emerging housing markets list is dominated by smaller markets. The average population size among the top 20 was just over 300,000, placing them overwhelmingly in the smaller half of the top markets. The largest market on the list is Raleigh, NC, which with a population of 1.4 million, is slightly smaller than last quarter's largest market that made the top 20, Austin, TX (2.2 million). Hot Real Estate Markets, but Affordable Home Prices Mean Room to Rise: The top 20 markets have a median listing price of $349,900 compared with a median of $361,900 in the top 300 largest U.S. markets. These lower prices mean that there is more room for home prices to grow, with prices in the top-20 areas increasing 13.7% year over year compared with 8.0% on average among all 300 areas evaluated. Markets Falling Out of the Top-20: In general, the markets that fell out of the top 20 didn't fall far. Nine of the 13 are still within the top 50, 11 of 13 are within the top 60, and 12 of 13 are within the top 100. The addition of real estate taxes to the index was not helpful for Madison, WI, which dropped 22 spots in the ranking due to that inclusion, alone. Read the full report here. Methodology: The ranking evaluates the 300 most populous core-based statistical areas, as measured by the U.S. Census Bureau, and defined by March 2020 delineation standards for eight indicators across two broad categories: real estate market (50%) and economic health & quality of life (50%). Each market is ranked on a scale of 0 to 100 according to the category indicators, and the overall index is based on the weighted sum of these rankings. The real estate market category indicators are: real estate demand (16.6%), based on average unique viewers per property; real estate supply (16.6%), based on median days on market for real estate listings, median listing price trend (16.6%). The economic and quality of life category indicators are: unemployment (6.25%); wages (6.251%); regional price parities (6.25%); the share of foreign born (6.25%); small businesses (6.25%); amenities (6.25%), measured as per capita "everyday splurge" stores in an area; commute (6.25%); and estimated effective real estate taxes (6.25%). About The Wall Street Journal The Wall Street Journal is a global news organization that provides leading news, information, commentary and analysis. Published by Dow Jones, The Wall Street Journal engages readers across print, digital, mobile, social, and video. Building on its heritage as the preeminent source of global business and financial news, the Journal includes coverage of U.S. & world news, politics, arts, culture, lifestyle, sports, and health. It holds 38 Pulitzer Prizes for outstanding journalism. 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®.
MORE >
Housing-Market Competition Has Eased Slightly, But 7 in 10 Buyers Still Face Bidding Wars
MORE >
Top 5 Best Days to Sell a Home Occur in May, According to New ATTOM Analysis
Home sales over last ten years prove spring and summer months offer best premiums; Home sellers on average realize 8.8 percent premium above market value IRVINE, Calif. - May 4, 2021 -- ATTOM Data Solutions, curator of the nation's premier property database, today released its annual analysis of the best days of the year to sell a home, which shows that the months of May and June offer the greatest home seller premiums – with ten of the best days to sell in the month of May alone. According to this most recent analysis of 40.1 million home sales from 2011-2020, home sellers selling in the late spring and early summer are realizing the biggest premiums – on average 13.4 percent above estimated market value in May and 11.7 percent above in June. The analysis looked at any calendar days in the last ten years with at least 10,000 single family home and condo sales. (See full methodology below.) "As home sellers continue to enjoy an extended sellers' market, moving full steam ahead from the momentum gained over the last ten years, the month of May is particularly poised to garner the greatest sale premiums," said Todd Teta, chief product officer with ATTOM Data Solutions. "Among the top five days fetching the biggest home seller premiums, May 23 is the best day of the year to sell a home, producing a premium of 19.3 percent above market value." Best Months to Sell The analysis also presents a more high-level view, showcasing how seller premiums faired throughout each month of the year. The months realizing the biggest home seller premiums include: May (13.4 percent); June (11.7 percent); July (11.2 percent); April (9.2 percent); August (8.9 percent); March (8.6 percent); February (8.2 percent); September (7.5 percent); January (6.6 percent); November (6.4 percent); October (5.8 percent); and December (5.8 percent). Methodology For this analysis ATTOM Data Solutions looked at any calendar days in the last ten years (2011 to 2020) with at least 10,000 single family home and condo sales. There were 362 days (including leap year data) that matched this criteria, with the four exceptions being Jan. 1, July 4, Nov. 11 and Dec. 25. To calculate the premium or discount paid on a given day, ATTOM compared the median sales price for homes with a purchase closing on that day with the median automated valuation model (AVM) for those same homes at the time of sale. About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 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).
MORE >
Help Is on the Way for Hopeful Homebuyers, According to Realtor.com Survey
MORE >
Thinking of Selling Your Home? There May Be No Better Time Than Now
Nationally, the week of April 18-24 is the best time to list your home this year, according to a new realtor.com analysis SANTA CLARA, Calif., April 15, 2021 -- In today's market where homes are selling fast, often above asking and even sight unseen, it may not seem like there is actually a "best" time to list your house for sale. However, earlier in the year is generally better, and according to national market trends, sellers who list their home next week, April 18-24, should see more buyer interest, less competition from other sellers, a faster sale and a higher listing price, according to realtor.com's 2021 Best Time to List analysis released today. To determine the optimum time to list, realtor.com® looked at competition from other sellers, median listing prices, time it takes to sell, likelihood of price reductions and interest from buyers measured by views per property on realtor.com®. Because of COVID's disruption to the market in 2020, the analysis included 2018-2019 listing data. "Unlike 2020 when COVID upended the spring home-buying season and pushed buyer interest to later in the year, this year's housing market is following more typical seasonal trends," said realtor.com® Chief Economist Danielle Hale. "With half as many homes available for sale this year than last, sellers are well positioned for a quick sale at top dollar. However, for most sellers listing sooner rather than later could really pay off with less competition from other sellers and potentially a higher sale price. They'll also avoid some big unknowns lurking later in the year, namely another possible surge in COVID cases, rising interest rates and the potential for more sellers to enter the market." What makes the week of April 18 stand out? The short answer is it's the optimal time for high prices, robust buyer demand, low competition from other sellers and a quick home sale. Higher price: Homes listed next week typically sell for 2% higher than the average week and 10.4% higher than the start of the year. If 2021 follows the typical seasonal trend, a median priced home listed next week could sell for $7,500 above the average week and $36,000 more than the start of the year. Strong buyer demand: Homes listed this week typically get 11% more views on realtor.com® than the average week throughout the year. Less competition: Homeowners who listed during this week in 2018 and 2019 saw 5% fewer sellers on the market compared to the average week throughout the year. Faster sale: Historically, homes listed during this week sold 14.1% faster than the average week. In 2021 terms, this would translate to selling in just 59 days, eight days faster than homes listed in other weeks, on average. In addition to the historical data, homeowners wondering whether now is the right time to sell, may want to consider some potential housing market shifts on the horizon that could lessen their current advantage. Rising mortgage rates, which realtor.com® is forecasting will reach 3.4% by the end of the year, could dampen buyer demand later in the home-buying season. Additionally, improved vaccination rates will also likely bring more sellers back to the market, adding more inventory to the mix and increasing competition for sellers. "It's a seller's market right now, but you still need to ensure your home makes a great first impression, especially if you want to get the best price for your place," said Rachel Stults, deputy editor for realtor.com®. "The key is zeroing in on what buyers want. In the wake of the COVID-19 pandemic, buyers are looking for more space — or flexible space they can transform into what they need. Home offices and lush outdoor spaces also have become extremely important. If you have these things, make sure you highlight them. "It's also crucial to make sure your home is move-in ready: Do repairs and upgrades now, before you put your home on the market. Transform your space into something turnkey, because buyers don't want to wait to move in," she added. For homeowners considering a sale, realtor.com® offers its Sellers Marketplace, which includes estimated home valuations of what your home is worth as well as information on selling options. The best week to list varies from market to market When taking local market trends into account in the 50 largest U.S. metros, the best week to list varies by locale throughout March, April and May. But for the biggest group of markets, 13, the best week to put your home on the market is the week of April 18, which is followed by the week of March 28, with 11 markets. The markets where it's best to list the week of April 18, include: Buffalo, N.Y.; Cleveland; Columbus; Detroit; Grand Rapids, Mich.; Indianapolis; Nashville, Tenn.; New Orleans; Providence, R.I.; Riverside, Calif.; Rochester, N.Y.; Sacramento, Calif.; San Francisco and St. Louis. See the full market breakdown of below times to list below. Best Week to List - 50 Largest Metropolitan Areas Methodology Listing metrics (e.g. list prices) from 2018-2019 were measured on a weekly basis, with each week compared against a benchmark from the first 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. 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®.
MORE >
Bloomington, Ill., is the Best Market for First-Time Home Buyers
MORE >
Homeownership Remains Affordable for Average Workers Across Majority of U.S. Despite Price Spikes
Average Wage Above Level Needed To Afford Typical Home in First Quarter of 2021; Historic Affordability Improved in First Quarter In About Half of U.S. Housing Markets; National Median Home Price Up 18 Percent Over First Quarter of 2020 IRVINE, Calif. - Apr. 1, 2021 -- ATTOM Data Solutions, curator of the nation's premier property database, today released its first-quarter 2021 U.S. Home Affordability Report, showing that median home prices of single-family homes and condos in the first quarter of this year were more affordable than historical averages in 52 percent of counties with enough data to analyze. That was down from 63 percent of counties in the first quarter of 2020 and 95 percent during the same period five years ago. But rising wages and falling mortgage rates still compensated for near-20 percent spikes in home prices over the past year, helping to keep median home prices affordable for average wage earners around the country. The report determined affordability for average wage earners by calculating the amount of income needed to meet monthly home ownership expenses — including mortgage, property taxes and insurance — on a median-priced home, assuming an 80 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). The 80-percent down payment criterion marks an update to ATTOM's affordability analysis, which now shows smaller portions of income needed to afford home ownership than recent reports. Compared to historical levels, median home prices in 287 of the 552 counties analyzed in the first quarter of 2021 were more affordable than past averages. That was down from 349 of the same group of counties in the first quarter of 2020, a trend that came during a 12-month period when the national median home price shot up 18 percent, to $278,000, in the first quarter of 2021. Yet, with workplace pay rising and home mortgage rates continuing to hit historic lows, major expenses on a median-priced home nationwide still consumed just 23.7 percent of the average wage across the country in the first quarter of 2021. That figure was up from 22 percent in first quarter of 2020 and from 19.7 percent five years ago. But it remained well within the 28 percent standard lenders prefer for how much homeowners should spend on those major expenses. Those mixed trends – homes remaining affordable but not quite as much as they have historically – happened amid a surge over the past year of home buyers who largely escaped the economic damage caused by the recent worldwide Coronavirus pandemic. As those home seekers pursued a dwindling supply of homes for sale, prices shot up – just not enough to significantly outweigh the benefits of increased wages and average mortgage rates that sat below 3 percent. "The past year certainly has been an odd one for the U.S. housing market. Home prices surged at a remarkable pace even as the virus pandemic damaged the U.S. economy, which dropped historical affordability levels. But average workers untarnished by the pandemic were still able to afford the typical home because wages and rock-bottom interest rates worked to their favor in a big way," said Todd Teta, chief product officer with ATTOM Data Solutions. "Much remains uncertain about the housing market in 2021. A lot will depend on how well the broader U.S. economy recovers from the pandemic and whether there are still many more buyers looking to escape congested neighborhoods most prone to the virus, pushing prices even higher. But for now, our data shows that average workers are able to manage the costs associated with rising values." Among the 552 counties in the report, 327 (59 percent) had major home-ownership expenses on typical homes in the first quarter of 2021 that were affordable for average local wage earners, based on the 28-percent guideline. The largest of those counties were Cook County (Chicago), IL; Harris County (Houston), TX; Dallas County, TX; Bexar County (San Antonio), TX, and Wayne County (Detroit), MI. The most populous of the 225 counties where major expenses on median-priced homes were unaffordable for average local earners in the first quarter of 2021 (41 percent of the counties analyzed) were Los Angeles County, CA; Maricopa County (Phoenix), AZ; San Diego County, CA; Orange County, (outside Los Angeles), CA and Miami-Dade County, FL. Home prices up at least 10 percent in two-thirds of country Median home prices in the first quarter of 2021 were up by at least 10 percent from the first quarter of 2020 in 360, or 65 percent, of the 552 counties included in the report. Counties were included if they had a population of at least 100,000 and at least 50 single-family home and condo sales in the first quarter of 2021. Among the 42 counties with a population of at least 1 million, the biggest year-over-year gains in median prices during the first quarter of 2021 were in Wayne County (Detroit), MI (up 24 percent); Suffolk County, NY (outside New York City) (up 20 percent); Bronx County, NY (up 19 percent); Maricopa County (Phoenix), AZ (up 19 percent) and Harris County (Houston), TX (up 18 percent). Counties with a population of at least 1 million that had the smallest year-over-year increases (or price declines) in the first quarter of 2021 were New York County (Manhattan), NY (down 2 percent); Santa Clara County (San Jose), CA (up 7 percent); Hennepin County (Minneapolis), MN (up 7 percent); Kings County (Brooklyn), NY (up 8 percent) and Orange County, CA (outside Los Angeles) (up 8 percent). Price appreciation up more than wage growth in almost 90 percent of markets Home price appreciation outpaced average weekly wage growth in the first quarter of 2021 in 474 of the 552 counties analyzed in the report (86 percent), with the largest counties including Los Angeles County, CA; Cook County (Chicago), IL; Harris County (Houston), TX; Maricopa County (Phoenix), AZ and San Diego County, CA. Average annualized wage growth outpaced home price appreciation in the first quarter of 2021 in only 78 of the 552 counties in the report (14 percent), including Santa Clara County (San Jose), CA; New York County (Manhattan), NY; Honolulu County, HI; San Francisco County, CA and Suffolk County (Boston), MA. Less than 28 percent of wages needed to buy a home in six of every 10 markets Major ownership costs on median-priced homes in the first quarter of 2021 consumed less than 28 percent of average local wages in 327 of the 552 counties analyzed in this report (59 percent). Counties requiring the smallest percent were Schuylkill County, PA (outside Allentown) (6.3 percent of annualized weekly wages needed to buy a home); Bibb County (Macon), GA (8.3 percent); Fayette County, PA (outside Pittsburgh) (8.4 percent); Macon County (Decatur), IL (9.9 percent) and Robeson County, NC (outside Fayetteville) (10.6 percent). Among the 42 counties in the report with a population of at least 1 million, those where home ownership typically consumed less than 28 percent of average local wages in the first quarter of 2021 included Wayne County (Detroit), MI (12.2 percent); Philadelphia County, PA (14.1 percent); Cuyahoga County (Cleveland), OH (14.4 percent); Fulton County (Atlanta), GA (19.4 percent) and Franklin County (Columbus), OH (19.5 percent). A total of 225 counties in the report (41 percent) required more than 28 percent of annualized local weekly wages to afford a typical home in the first quarter of 2021. Those counties that required the greatest percentage of wages were Kings County (Brooklyn), NY (75.7 percent of annualized weekly wages needed to buy a home); Marin County, CA (outside San Francisco) (75.5 percent); Santa Cruz County, CA (69.9 percent); Monterey County, CA, (outside San Francisco) (68.1 percent) and Maui County, HI (65.9 percent). Aside from Kings County, NY, counties with a population of at least 1 million where home ownership consumed more than 28 percent of average annualized local wages in the first quarter included Orange County, CA (outside Los Angeles) (57.7 percent); Queens County, NY (56.3 percent); Nassau County, NY (outside New York City) (53.5 percent) and Alameda County (Oakland), CA (51.6 percent). Average wages needed to afford median-priced home exceed $75,000 in less than 15 percent of markets Annual wages of more than $75,000 were needed in the first quarter of 2021 to afford the typical home in just 75, or 14 percent, of the 552 markets in the report. The highest annual wages required to afford the typical home were in New York County (Manhattan), NY ($247,802); San Mateo County (outside San Francisco), CA ($230,848); Marin County (outside San Francisco), CA ($218,830); San Francisco County, CA ($212,892) and Santa Clara County (San Jose), CA ($207,691). The lowest annual wages required to afford a median-priced home in the first quarter of 2021 were in Schuylkill County, PA (outside Allentown) ($10,089); Fayette County, PA (outside Pittsburgh) ($12,957); Bibb County (Macon), GA ($13,708); Robeson County, NC (outside Fayetteville) ($14,133) and Cambria County, PA (east of Pittsburgh) ($16,251). Slight majority of housing markets more affordable than historic averages Among the 552 counties analyzed in the report, 287 (52 percent) were more affordable in the first quarter of 2021 than their historic affordability averages, down from 63 percent of the same group of counties that were more affordable historically in the first quarter of 2020. Counties with a population of at least 1 million that were more affordable than their historic averages (indexes of more 100 are considered more affordable compared to historic averages) included New York County (Manhattan), NY (index of 128); Montgomery County, MD (outside Washington, D.C.) (121); Cook County (Chicago), IL (114); King County (Seattle), WA (110) and Santa Clara County (San Jose), CA (108). Counties with the best affordability indexes in the first quarter of 2021 included Schuylkill County, PA (outside Allentown) (index of 195); Macon County (Decatur), IL (188); Fayette County, PA (outside Pittsburgh) (171); Calcasieu Parish (Lake Charles), LA (149) and Bibb County (Macon), GA (146). Among counties with a population of at least 1 million, those where the affordability indexes improved the most from the first quarter of 2020 to the first quarter of 2021 were New York County (Manhattan), NY (index up 14 percent); Santa Clara County (San Jose), CA (up 7 percent); Orange County, CA (outside Los Angeles) (up 3 percent); Kings County (Brooklyn), NY (up 3 percent) and Hennepin County (Minneapolis), MN (up 2 percent). Slightly fewer than half of markets less affordable than historic averages Among the 552 counties in the report, 265 (48 percent) were less affordable than their historic affordability averages in the first quarter of 2021, up from 37 percent in the first quarter of last year. Counties with a population greater than 1 million that were less affordable than their historic averages (indexes of less than 100 are considered less affordable compared to their historic averages) included Wayne County (Detroit), MI (index of 78); Dallas County, TX (81); Tarrant County (Fort Worth), TX (82); Harris County (Houston), TX (83) and Maricopa County (Phoenix), AZ (86). Counties with the worst affordability indexes in the first quarter of 2021 were Canyon County, ID (outside Boise) (index of 67); Grayson County, TX (outside Dallas) (72); Ada County (Boise), ID (74); St. Louis City/County, MO (75) and Bonneville County (Idaho Falls), ID (76). Counties with a population of least 1 million residents where affordability indexes decreased the most from the first quarter of 2020 to the same period in 2021 included Wayne County (Detroit), MI (index down 11 percent); Harris County (Houston), TX (down 11 percent); Dallas County, TX (down 8 percent); Bronx County (down 8 percent) and Oakland County, MI (outside Detroit) (down 8 percent). Report Methodology The ATTOM Data Solutions U.S. Home Affordability Index analyzes median home prices derived from publicly recorded sales deed data collected by ATTOM Data Solutions and average wage data from the U.S. Bureau of Labor Statistics in 552 U.S. counties with a combined population of 245.7 million. 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 an 80 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 the 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 20 percent of the purchase price and a 28 percent maximum "front-end" debt-to-income ratio. For example, the nationwide median home price of $278,000 in the first quarter of 2021 required an annual wage of $52,523, based on a $222,400 loan and monthly expenses not exceeding the 28 percent barrier — meaning households would not be spending more than 28 percent of their income on mortgage payments, property taxes and insurance. That required income was less than the $61,984 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 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).
MORE >
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
MORE >
Millennials Dominate Buying Market, Generation Z Now Active Buyers, Says NAR Report
WASHINGTON (March 16, 2020) -- The popularity of multigenerational homes increased over the last year, as a rising number of homebuyers purchased larger residences compared to prior years, including millennials who continue to make up the largest share of homebuyers at 37%. This finding is revealed in the National Association of Realtors®' most recent study on the characteristics of homebuyers, the 2021 Home Buyers and Sellers Generational Trends report.1 Millennials have been the largest share of buyers since NAR's 2014 report. The most recent data shows that 82% of younger millennials and 48% of older millennials were first-time homebuyers, more than other age groups. According to the study, during the last year, 18% of homebuyers between the ages of 41 to 65 purchased a multigenerational home – a home that will house adult siblings, adult children, parents or grandparents. "There are a variety of reasons why large families and extended families are opting to live together, one of which is that it's a great way to save money," said Jessica Lautz, NAR's vice president of demographics and behavioral insights. "Also, in light of the pandemic, many grandparents and older relatives found that being under a single roof – quarantining with family rather than away – worked out better for them." Homebuyers ages 75 to 95 were the second most likely to purchase a multigenerational home, and were most likely to purchase senior-related housing, at 27%. With inventory levels being alarmingly low in recent years and even dropping to record-low levels last year, a number of would-be homebuyers consequently had difficulties finding adequate housing options. Nearly six in 10 homebuyers between the ages of 22 to 40 said just finding the right property was the most challenging step in the buying process. More than half of all homebuyers (53%) cited finding the right property as the most difficult step. Twenty-eight percent of homebuyers between the ages of 22 to 30 – those who make up younger millennial buyers – lived with parents, relatives or friends before purchasing. This is higher than any other generation. Living with family first tends to allow flexibility toward saving for a downpayment and finding a home, given the low housing inventory. Twenty percent of homebuyers between the ages of 22 to 30 were unmarried, a decline from 21% from a year ago. Additionally, 22% of homebuyers between the ages of 66 and 74 were single women. "Single women remain a large buying force," said Lautz. "A number of divorced women and those who were recently widowed purchased a home without the help of a spouse or roommate." In terms of buyer characteristics, 19% of older boomers – buyers between the ages of 66 and 74 – and 18% of Generation Xers – buyers ages 41 to 55 – were most likely to purchase a new home to prevent having to do renovations or avoid plumbing or electricity problems, and these buyers prioritized having the ability to choose and customize design features. Seventeen percent of buyers who are part of the silent generation – those between the ages of 75 to 95 – purchased newly-built homes. These buyers were least likely to compromise in their home search and least likely to purchase a detached single-family home. As is always the case in real estate, location proved to be an important component among buyers. Fifty-four percent of homes purchased by homebuyers ages 31 to 40 – older millennials – were located in a suburb or subdivision. Out of this age group, 69% said the quality of the neighborhood influenced their neighborhood selection. That sentiment was shared by buyers ages 22 to 30 to the tune of 65%. However, an even stronger factor among this 22-to-30 age bracket was "convenience to workplace," as 74% cited that when deciding on a neighborhood, proximity to where they worked was imperative. "The younger millennials overwhelmingly answered that they prefer to live closer to work, as many don't want a long commute and this was evident in their buying habits," said Lautz. "Additionally, both of these groups also placed a high value on being close to family and friends as 57% said that dynamic factored into what neighborhood they ultimately chose." Lautz added that older boomers and those in the silent generation were similarly heavily influenced by a desire to be close to family and friends. Forty-seven percent of both generations cited this as a factor in neighborhood selection. Older boomers (35%) and the silent generation (36%) also valued their neighborhood being close to areas in which they could shop, and both groups (28% and 31%, respectively) stated that proximity or convenience to a health care facility was an influential factor in choosing a neighborhood. Among all sellers, the most commonly cited reason for wanting to sell their residence was a desire to move closer to friends and family (15%), followed by the home being too small (14%) and a change in family situation (12%). In the midst of the pandemic, the usefulness of virtual tours skyrocketed, especially among 22- to 40-year-old buyers. "Homebuying aside, this segment of the population was already accustomed to doing research online," said Lautz. "So, to see them really embrace virtual tours and virtual open houses was a given, nonetheless, real estate agents are the top information source, and the data shows these buyers ultimately used agents to purchase a home." Out of all buyers, 88% cited a real estate agent as an information source they used during their home search, but that share rises to 91% among younger millennial buyers ages 22 to 30. Two percent of all buyers and sellers were from Generation Z. "Buyers used all tools available to them – whether it be a mobile device, yard sign or an online video – but at some point, nearly all buyers turned to an experienced agent to assist with the transaction," said Lautz. "This is especially true among younger millennial consumers as they are likely first-time buyers and need help navigating the market and all steps involved in the process." Buyers from all generations – more than half (51%) – primarily wanted their agent's help to find the right home to buy. Homebuyers also called on agents to help with brokering the terms of their sale and to aid with price negotiations. According to the NAR report, the oldest and youngest age groups, those 66 and older, as well as those ages 22 to 30, were more likely to want their agent's assistance with paperwork. In terms of selling and consistent across all age groups, nine in 10 home sellers worked with an agent to sell their home. "Realtors® continue to be an integral part of both the homebuying and the home selling process," said NAR President Charlie Oppler, a Realtor® from Franklin Lakes, N.J., and the CEO of Prominent Properties Sotheby's International Realty. "Buyers and sellers should understand that we can assist with every part of the real estate transaction, from finding or listing a property, securing a loan and sorting through the exhaustive paperwork." The largest share of all home sellers were baby boomers, at 43%. Sellers aged 55 and younger often upgraded to a larger and more expensive home while staying relatively close to their prior home. Sellers 56-years and older regularly purchased a similarly-sized home, but less expensive than the home they sold by moving farther. Overall, sellers stayed in their previous home for a median of 10 years before selling, with a median of six years among sellers ages 31 to 40, and a median of 16 years among sellers 66 and older. Recently sold homes were generally on the market for a median of three weeks. Lautz explained that homes moved off the market so quickly because of the ongoing home inventory shortage. The limited supply of houses for sale also contributed to sellers being able to recoup so much on their transactions, according to Lautz. Sellers made a median of $66,000 in equity from their sale. Methodology NAR mailed a 131-question survey in July 2020 using a random sample weighted to be representative of sales on a geographic basis to 132,550 recent homebuyers. Respondents had the option to complete the survey via hard copy or online; the online survey was available in English and Spanish. A total of 8,212 responses were received from primary residence buyers. After accounting for undeliverable questionnaires, the survey had an adjusted response rate of 6.2%. The sample at the 95% confidence level has a confidence interval of plus-or-minus 1.08%. The recent homebuyers had to have purchased a primary residence home between July 2019 and June 2020. All information is characteristic of the 12-month period ending July 2020 with the exception of income data, which are for 2019. The National Association of Realtors® is America's largest trade association, representing more than 1.4 million members involved in all aspects of the residential and commercial real estate industries.
MORE >
More than 200,000 New Listings Are Missing from U.S. Housing Market, According to Realtor.com February Housing Report
MORE >
Home Price Increases in Opportunity Zone Redevelopment Areas Keeping Pace with Nationwide Gains
Median Prices Rise Annually in Fourth Quarter of 2020 in Three-Quarters of Opportunity Zones; Median Values Jump At Least 10 Percent in Almost Two-Thirds of Zones; Prices Go Up at Roughly the Same Pace as Increases Outside of Zones IRVINE, Calif. - Feb. 18, 2021 -- ATTOM Data Solutions, curator of the nation's premier property database, today released its fourth-quarter 2020 special report analyzing qualified low-income Opportunity Zones established by Congress in the Tax Cuts and Jobs act of 2017 (see full methodology below). In this report, ATTOM looked at 3,588 zones around the United States with sufficient sales data to analyze, meaning they had at least five home sales in the fourth quarter of 2020. The report found that median home prices increased from the fourth quarter of 2019 to the fourth quarter of 2020 in 77 percent of Opportunity Zones with sufficient data and rose by more than 10 percent in nearly two-thirds of them. Those percentages were roughly the same as in areas of the U.S. outside of Opportunity Zones. With prices remaining well below average in most Opportunity Zones, about 38 percent of the zones with enough data to analyze still had median prices of less than $150,000 in the fourth quarter of 2020. However, that was down from 46 percent a year earlier as prices inside some of the nation's poorest communities rolled ahead with broader market, defying troubles flowing from the 2020 Coronavirus pandemic that slowed or idled significant sectors of the U.S. economy. The pandemic's impact generally has hit hardest in lower-income communities that comprise most of the zones targeted for tax breaks designed to spur economic redevelopment. Housing markets inside Opportunity Zones continued to benefit from the nation's nine-year price boom. Opportunity Zones are defined in the Tax Act legislation as census tracts in or along side low-income neighborhoods that met various criteria for redevelopment in all 50 states, the District of Columbia and U.S. territories. Census tracts, as defined by the U.S. Census Bureau, cover areas with 1,200 to 8,000 residents, with an average of about 4,000 people. "The country's long run of home-price increases continues to leave no part of the housing market untouched, boosting fortunes from the wealthiest to the poorest parts of the United States. The latest evidence is the fourth-quarter 2020 data showing prices going up in Opportunity Zone neighborhoods at around the same rate, and sometimes more, than in more well-off communities," said Todd Teta, chief product officer with ATTOM Data Solutions. "No doubt, prices remain substantially lower in Opportunity Zones, but the fact that they often rose by double-digit percentages in Q4 is significant. Not only does it show market strength, but it also suggests that many distressed communities are ripe for the redevelopment that the Opportunity Zone tax breaks are designed to promote." High-level findings from the report include: Median prices of single-family homes and condos rose from the fourth quarter of 2019 to the fourth quarter of 2020 in 77 percent of Opportunity Zones with sufficient data to analyze and increased in 58 percent of the zones from the third to the fourth quarters of 2020. By comparison, median prices rose annually in 79 percent of census tracts outside of Opportunity Zones and quarterly in 58 percent of them. (Of the 3,588 Opportunity Zones included in the report, 3,183 had enough data to generate usable median prices in the fourth quarters of both 2019 and 2020; 3,179 had enough data to make comparisons between the third and fourth quarters of 2020). Measured year over year, median home prices rose more than 10 percent in the fourth quarter of 2020 in 1,945 (61 percent) of Opportunity Zones with sufficient data to analyze. That price increase occurred in 56 percent of other census tracts throughout the country with sufficient data. A wider gap emerged when looking at areas where prices rose at least 25 percent from the fourth quarter of 2019 to the fourth quarter of 2020. Measured year over year, median home prices rose by that level in 1,098 (34 percent) of Opportunity Zones and 24 percent of census tracts elsewhere in the country. States with the largest percentage of zones with median prices that rose, year over year, during the fourth quarter of 2020 included Utah (median prices up, year over year, in 89 percent of zones), Oregon (86 percent), Washington (85 percent), Arizona (85 percent) and Connecticut (84 percent). Of all 3,588 zones in the report, 1,356 (38 percent) had a median price in the fourth quarter of 2020 that was less than $150,000 and 598 (17 percent) had medians ranging from $150,000 to $199,999. The total percentage of zones with typical values below $200,000 was down from 64 percent in the fourth quarter of 2019. Median values in the fourth quarter of 2020 ranged from $200,000 to $299,999 in 837 Opportunity Zones (23 percent) while they were at least $300,000 in 797 (22 percent). The Midwest continued to have the highest portion of Opportunity Zone tracts with a median home price of less than $150,000 (59 percent), followed by the South (49 percent), the Northeast (40 percent) and the West (6 percent). Median household incomes in 89 percent of Opportunity Zones were less than the medians in the counties where they were located. Median incomes were less than three-quarters of county level figures in 59 percent of zones and were less than half in 16 percent. Report methodology The ATTOM Data Solutions Opportunity Zones analysis is based on home sales price data derived from recorded sales deeds. Statistics for previous quarters are revised when each new report is issued as more deed data becomes available. ATTOM Data Solutions compared median home prices in census tracts designated as Opportunity Zones by the Internal Revenue Service. Except where noted, tracts were used for the analysis if they had at least five sales in the fourth quarter of 2020. Median household income data for tracts and counties comes from surveys taken by the U.S. Census Bureau (www.census.gov) from 2015 through 2019. The list of designated Qualified Opportunity Zones is located at U.S. Department of the Treasury. Regions are based on designations by the Census Bureau. Hawaii and Alaska, which the bureau designates as part of the Pacific region, were included in the West region for this report. 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).
MORE >
Goodbye City Life: Rising Rents Match Homebuying Hotspots
MORE >
Buyers on Notice: Act Quickly and Be Prepared to Pay Up, According to Realtor.com January Housing Report
2021 kicks off with record low inventory and rising home prices, foreshadowing a competitive home-buying season SANTA CLARA, Calif., Feb. 4, 2021 -- If January provides any insight into what to expect this spring, home shoppers are in for another fiercely competitive home-buying season with record low inventory pushing prices higher and homes selling more quickly, according to the realtor.com® Monthly Housing Trends Report released today, which shows buyers returning to the market in earnest at the start of the year. "Demand for housing was already strong coming into the year and we don't see that slowing down with millennials reaching prime home-buying age, and many remote workers still in the market for more space," said realtor.com® Chief Economist Danielle Hale. "At the same time, sellers failed to materialize in January, which has pushed the number of homes for sale to new lows and suggests that our new normal of rising prices and brisk sales is here to stay at least through the first half of the year. Those thinking of getting into the market this spring should brace themselves for a competitive season, especially in the market for existing homes." Strong buyer demand and a lack of sellers push inventory to new lows The number of homes for sale in the U.S. in January was down 42.6% year-over-year, a new low that translated into 443,000 fewer homes for sale compared to the same time a year ago. Active listings also fell below 600,000 for the first time since realtor.com® began tracking the metric in 2012. Despite an uptick in sellers toward the end of December, newly listed homes were down 23.2% nationally year-over-year in January. This is a marked contrast from single-family construction trends for new homes which have seen 20% or greater year-over-year increases in both starts and permits in each of the last four months. Housing inventory in the 50 largest U.S. metros overall declined by 41.8% over last year in January, up from December's 38.6% decline. New listings in the 50 largest U.S. metros were down 17.3% year-over-year with Cleveland, Jacksonville, Fla. and Memphis, Tenn. registering the largest drops at 37.1%, 36.9% and 32.6%, respectively. Of the 50 largest metros, two Northern California markets -- San Jose and San Francisco -- and Denver saw an increase in the number of newly listed homes at 24.8%,14.4%, and 1.8%, respectively. Homes sell fast with Virginia Beach, Va., Sacramento and Birmingham, Ala., leading the decline in days on market The typical U.S. home spent 76 days on the market in January, 10 days less than last year. The decline in days on market slowed compared to December 2020, when homes sold 13 days more quickly than the previous year. In the 50 largest U.S. metros, the typical home spent 60 days on the market -- 12 days less on average, compared to January 2020. Homes saw the greatest decline in time spent on the market in Virginia Beach (-27 days); Sacramento (-24 days), and Birmingham, Ala. (-22 days). Only two markets -- New York (+11 days) and Miami (+5 days) -- saw time on market increase compared to the previous year. Home listing prices continue to go up, up, up The median national home listing price grew by 15.4% over last year to $346,000 in January, higher than December's growth rate of 13.4%. The nation's median listing price per square foot was up 17.5% in January compared to last year. Listing prices in the nation's 50 largest metros grew by an average of 10.9% from a year ago with listing prices increasing the most -- 16.8% -- in the Northeast. Prices jumped 12.3% in the West, 10.4% in the Midwest and 8.0% in the South year-over-year. At the metro level, Austin, Texas, (+30.2%), Rochester, N.Y., (25.9%), and Los Angeles (+22.4%) posted the highest year-over-year median list price growth in January. Miami (-3.2%), and Minneapolis (-0.4%) were the only top 50 metros to see listing prices decline year-over-year in January. Metros With the Largest Decline in Active Listings *Some data for Pittsburgh, Seattle 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.
MORE >
East Coast Housing Market Continues to Dominate Areas Most Vulnerable to Coronavirus Impact
MORE >
Is the Beach So Last Year?
Realtor.com report: "Snowbirds" typically searching for sun are favoring nearby ski towns more than ever as they look to escape closer to home SANTA CLARA, Calif., Jan. 15, 2021 -- Searches of homes in ski towns were up nearly 36% year-over-year in the fourth quarter of 2020, according to a new report from realtor.com®. Much of the increased demand is coming from residents of cold weather, Northern states, often referred to as Snowbirds, as they search for homes with outdoor recreation options closer to home during pandemic. "Historically, residents of the Midwest and Northeast have shown a preference for warmer cities, and contributed to much of the out-of-state demand in homes in sunny states, such as Florida," said realtor.com® Chief Economist Danielle Hale. "This year, we found that Snowbirds' interest in ski towns increased more than interest from other areas across the country. It's not surprising. Americans are increasingly searching for getaways that are within driving distance. Skiing is done outdoors and generally at a distance from others, making it a relatively safe sport during the pandemic. Many of these areas offer year-round outdoor activities, making them summer destinations as well." The analysis examined the home searches of residents from 10 "Snowbird" markets to nearly 200 resort-linked ski towns. It found residents of eight of these markets -- Boston; Chicago; Columbus, Ohio; Indianapolis; New York; Philadelphia; Providence, R.I. and Minneapolis -- were showing record interest in ski towns. The exceptions were Baltimore and Detroit, where searches for ski towns were still up year-over-year, but lower than the rest of the U.S. market overall. Views to ski towns from residents of Snowbird metros were up 44.5% in the fourth quarter year-over-year, higher than the 35.7% increase recorded nationwide. Overall, the top 10 ski towns that showed the greatest increase in home shopper interest from Snowbirds averaged a 127% increase in searches in the fourth quarter of 2020 compared to last year. Seven of the 10 top ski towns seeing the largest percentage increase in searches were located in Northeast and Midwest. Ranked in order of percentage increase, the top 10 ski towns in the fourth quarter of 2020 were: 1. Union Dale, Pa. Increase in searches (y/y): 225% Median list price: $185,000 Home to Elk Mountain Ski Resort, which offers 180 skiable acres and 27 trails, Union Dale is an alternative to the more touristy Poconos. It is less than a three-hour drive from both Philadelphia and New York City and just over 30 minutes from Scranton, Pa., the setting for the popular television sitcom, The Office. Scranton is one of the largest cities in Pennsylvania, giving Union Dale residents nearby access to water activities on Lake Scranton, minor league baseball and a vibrant art and restaurant scene. 2. Choteau, Mont. Increase in searches (y/y): 143% Median list price: $174,500 On the path between the Glacier and Yellowstone National Parks at the foot of the Rocky Mountain Front, Choteau provides a small town feel and a wide range of recreational activities from exploring ancient paleontology sites to golfing, hiking, boating, fishing and hunting. Ear Mountain, Freezout Lake and the Teton River are just a few of the area's scenic attractions. Teton Pass Ski Resort, about 20 miles north of Choteau, offers skiing and snowboarding. Great backcountry skiing and snowboarding are also nearby. 3. North Creek, N.Y. Increase in searches (y/y): 132% Median list price: $272,000 Home to the Gore Mt. Ski Center, North Creek is a mecca for outdoor activities, including downhill and backcountry skiing and snowshoeing in the winter and whitewater rafting, hiking, biking, fishing and camping in warmer months. North Creek is located near Lake George and is a four-drive from New York City. Owned by the State of New York and operated by Olympic Regional Development Authority, the Gore Mountain ski area has been expanded in recent years, which has resulted in an influx of private investment in new businesses as well as several new housing developments. 4. Eden, Utah Increase in searches (y/y): 122% Median list price: $1,190,000 Situated along the Ogden River at an elevation of 4,941 feet, downtown Eden is just 30 minutes from Salt Lake City and three world-class ski resorts -- Snowbasin, Powder Mountain and Nordic Valley. Its small town charm includes historic 25th Street, which is lined with shops and restaurants. At the end of 25th Street is Union Station, which houses a vintage car museum, art gallery and a collection of historical trains. In addition to skiing and snowboarding in the winter, Eden offers year-round outdoor activities, including golfing, hiking and biking trails. 5. Windham, N.Y. Increase in searches (y/y): 118% Median list price: $692,000 Windham is located in the Catskill Mountains, just 2.5 hours north of New York City, making it a perfect weekend getaway. It's known for Windham Mountain Resort, with ski trails, terrain parks and a mountain bike park. Area trails include the multi-use Windham Path, passing streams and a covered bridge, and the Escarpment Trail to the summit of Windham High Peak. The Five State Lookout offers far-reaching views of the Hudson River Valley and surrounding mountain ranges. 6. Boone, Iowa Increase in searches (y/y): 113% Median list price: $165,000 Named for the youngest son of Daniel Boone, this Central Iowa town is located about 40 miles north of Des Moines. The town grew rapidly following the arrival of the railroad in 1866, which easily connected it to Chicago to the east, Omaha to the west, St. Louis to the south and Minneapolis to the north. Today, Boone's close proximity to the Des Moines River and abundant parks makes it a good destination for outdoor activities year-round. In addition to hiking at Ledges State Park and skiing, snowboarding and tubing at Seven Oaks, the Boone & Scenic Valley Railroad's dinner train is a great way to enjoy a meal while viewing the changing of the leaves. 7. Otis, Mass. Increase in searches (y/y): 113% Median list price: $402,000 Otis is located in the Berkshires in western Massachusetts. Known for outdoor activities like hiking and water sports, as well as cultural experiences, the Berkshires is a two-hour drive from Boston and only three hours from New York City. This picturesque town is nestled along several lakes and ponds along the slopes of the Berkshire Range. Otis is home to Otis Range, a family-friendly ski resort, several campgrounds and forest preserves, and is a great starting point for hiking with the Taconic, Appalachian and Berkshire ranges all in the vicinity. 8. Lakeside, Mont. Increase in searches (y/y): 105% Median list price: $972,500 The cozy town of Lakeside lines the northwest shores of Flathead Lake at the base of Blacktail Mountain. It is just south of Kalispell and about two hours north of Missoula and is known for entertaining tourists who come to visit the Flathead area and Glacier National Park. Lakeside offers four seasons and something for everyone, including skiing the slopes of Blacktail Mountain and sailing and boating on Flathead Lake as well as biking, camping and horseback riding and a lively cultural and restaurant scene. 9. Paoli, Ind. Increase in searches (y/y): 103% Median list price: $135,000 Home to Paoli Peaks Mountain Resort, the town of Paoli is about 100 miles south of Indianapolis. Paoli was first settled in the early 1800s and holds the distinction of playing a role in the Underground Railroad. Today, Paoli is a close knit community that offers residents a suburban rural mix. In addition to skiing, snowboarding and tubing, Paoli is close to French Lick, which is known for its historic mineral springs. 10. Boyne Falls, Mich. Increase in searches (y/y): 100% Median list price: $321,700 Named for the falls on the nearby Boyne River, this small northern Michigan community is nestled along Lake Charlevoix, which has been named by USA Today as one of the Best Lakes in America. Surrounded by a rolling countryside, Boyne Falls is home to several ski resorts and recreation areas that offer four seasons of outdoor recreation from downhill and cross country skiing, snow biking, snowshoeing and ice skating at Boyne Mountain to golf, ziplining and biking. Nearby Deer Lake offers canoeing, swimming and boating. Methodology: Realtor.com® analyzed search activity to 180 towns with populations of at least 1,000 people and at least one ski resort. Towns are defined by ZIP code and will not match municipal boundaries. The analysis also was narrowed to explore searches from residents of 10 Snowbird metros, which are defined as Northeast and Midwest markets with the highest search traffic to warmer-climate vacation or second home markets. 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.
MORE >
Realtor.com Top Housing Markets: Tech Hubs and State Capitals Will Dominate 2021
MORE >
Realtor.com 2021 Housing Forecast: Sellers Will Get Top Dollar as Buyers Struggle with Affordability
2021 is full of wildcards including COVID-19 and the possibility of a double dip recession SANTA CLARA, Calif., Dec. 2, 2020 -- Amid COVID-19 uncertainty, 2021 will be a robust sellers market as home prices hit new highs (+5.7%) and buyer competition remains strong, according to the realtor.com 2021 housing forecast released today. Inventory is expected to make a slow but steady comeback, which will give buyers some relief. However, increasing interest rates and prices will make affordability a challenge throughout the year. "The 2021 housing market will be much more 'normal' than the wild swings we saw in 2020. Buyers may finally have a better selection of homes to choose from later in the year, but will face a renewed challenge of affordability as prices stay high and mortgage rates rise," said realtor.com® Chief Economist, Danielle Hale. "With less cash and no home equity, millennial and Gen Z first-time buyers will be impacted the most by rising home prices and interest rates. While waiting until the fall or winter months of 2021 may mean more home options to choose from, buyers who can find a home to buy earlier in the year will likely see lower prices and mortgage rates." Realtor.com® 2021 Housing Market Forecast Realtor.com® forecasts mortgage rates will continue to hover near 3% then slowly rise to 3.4% by the end of the year. Home sales are expected to increase 7% and new construction will increase 9% over the previous year. However, the strength of the 2021 housing market is highly dependent on the containment of COVID-19 pandemic and staving off a double dip recession. What 2021 will be like for buyers? Buyers will find some relief in 2021 as more homes hit the market, but many will struggle with affordability as home prices continue to rise. Mortgage rates will slowly rise toward 3.4% and will no longer help offset the record breaking prices. Additionally, the time it takes to sell a home will slow from late 2020's frenzy, but fast sales will remain in many parts of the country, which will be particularly difficult for first-time buyers learning the ins and outs of homebuying. What will 2021 be like for sellers? Sellers will continue to hold the upper hand throughout 2021 as the number of buyers in the market outweighs the number of homes for sale. Home prices won't grow as fast as they did in 2020, but steady increases will continue to push home prices to new highs. Additionally, sellers can expect their home to sell relatively quickly in 2021, so having their next home lined up will be key. Many sellers are also buyers themselves, so they will struggle with the same issues when it comes to purchasing their next home. Forecast key 2021 housing trends Millennials continue to drive the market while Gen-Z become market players - The largest generation in history, millennials, will continue to shape the housing market as they outnumber Gen-X and Baby Boomers. Older millennials will likely be trade-up buyers while the larger, younger segment of the generation age into their key home buying years. Meanwhile, Gen-Z will begin to make their presence known in 2021 as they compete with younger millennials for entry-level homes. The oldest members of Gen-Z will turn 24 in 2021 and their impact on the market will only continue to grow from here. Affordability becomes a growing obstacle - Buyers in 2020 received a huge boost in affordability as mortgage rates pushed to new lows throughout the year, however, a lack of inventory and strong demand drove prices up, erasing most of the boost. As mortgage rates are no longer able to counteract rising home prices, affordability will be tested for buyers across the board in 2021. Home price increases are expected to slow as affordability gets stretched throughout the year. Buyers will need to act with a sense of urgency if they want to lock in a low rate before home prices increase even more in 2021. Inventory will begin the slow road toward recovery - A lack of homes for sale has plagued the U.S. housing market for the last five years. The problem only intensified in 2020, in large part due to an estimated shortfall of nearly 4 million newly constructed homes heading into the year, as well as sellers pulling back due to COVID-19. The number of homes for sale is expected to slowly rebound in 2021, but the road to recovery will be long because the market has to make up for multiple years of declines. Additional homes hitting the market will offer buyers some relief in 2021, but it won't be enough to tip the scales in favor of buyers. As inventory slowly begins to replenish and buyer demand for homes remains steady, sellers will continue to be in the driver's seat. Suburbs will shine if remote work stays around - As COVID-19 lockdowns gripped many of the nation's largest cities, buyers flocked to nearby suburbs in search of increased space. Now, more and more workers are finding the freedom to work remotely. This has sparked intense interest in suburban homes, further exaggerating a trend that had been slowly emerging over the last couple of years. The big question is what demand will look like once a coronavirus vaccine is widely available. If companies require workers to return to the office, demand may wane. Conversely, if companies commit long-term to remote work, demand for these homes could see an additional boost in 2021. Wildcards that could shake things up in 2021 COVID-19 - The deck is stacked with wildcards for 2021. The most impactful will be the U.S.'s ability to control and contain the spread of COVID-19 as well as distribute a vaccine. Additional lockdowns and quarantines could put a dent in housing inventory and sales, slowing the market and putting increased pressure on buyers. Conversely, if a vaccine is rolled out quickly, it could lead to better than expected sales and a strong increase for home prices and inventory. Either way, COVID-19 will have a large impact on the U.S. housing market in 2021. Double dip recession - The possibility of a double dip recession is still in play for 2021. As the U.S. continues in a K-shape recovery, a gap is widening between those with and without jobs as well as industries recovering well versus those seeing continued lack of business. In the short term, this could lead to less consumer spending which could more broadly impact businesses and economic growth. In the long term, this could impact the U.S. housing market as "would-be" buyers disappear from the market, cooling demand and driving down home prices. The current question is how long the K-shape can diverge before the impact begins to cascade into the broader economy and other previously less-affected sectors such as housing. 2021 Metro Housing Forecast (Top 100) 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®.
MORE >
Rent Declines Accelerate in Tech Hubs as Remote Work Prompts the Desire for More Space
MORE >
Northeastern Housing Markets Remain Most at Risk of Economic Impact from Coronavirus Pandemic
Most Vulnerable Counties in Third Quarter of 2020 Concentrated in States Running from Connecticut through Maryland; New York City, Baltimore, Washington, D.C. and Now Philadelphia Among Areas with Clusters of High-Risk Counties; Midwest Joins the West as Regions Less at Risk of Housing-Market Problems IRVINE, Calif. -- Oct. 8, 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 its third-quarter 2020 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 pockets of the Northeast and Mid-Atlantic regions were most at risk in the third quarter – with clusters in the New York City, Baltimore, Philadelphia and Washington, D.C. areas – while the West and now Midwest are less vulnerable. The report reveals that Connecticut, New York, New Jersey, Pennsylvania, Maryland and Delaware had 32 of the 50 counties most vulnerable to the economic impact of the pandemic in the third quarter. They included five suburban counties in the New York City metropolitan area, four around Washington, D.C., four around Philadelphia, PA, four around Baltimore, MD, and seven of Connecticut's eight counties. The only four western counties among the top 50 were in northern California and Hawaii, while Illinois had the only six in the Midwest. Another eight were loosely scattered across five southern states – Florida, Louisiana, North Carolina, Texas and Virginia. Third quarter trends generally continued from those found in the first and second quarters of 2020, but with different concentrations around several major metropolitan areas. The number of counties among the top 50 most at-risk was down from 11 to five in the New York City area, and from eight to three in the Chicago, IL, area, but up from two to four in the Baltimore region. Markets are considered more or less at risk based on the percentage of homes currently facing possible foreclosure, the portion of homes with mortgage balances that exceed the estimated property value, and the percentage of local wages required to pay for major home ownership expenses. The conclusions are drawn from an analysis of the most recent home affordability index, equity and foreclosure reports prepared by ATTOM. Rankings are based on a combination of those three categories in 487 counties around the United States with sufficient data to analyze. 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 has largely staved off the effect of the virus pandemic. While home values have dipped in some areas of the nation, counties generally have seen prices rise 7 percent to 15 percent since the third quarter of 2019. But the market remains exposed due to high unemployment and other damage that has spread through the United States economy as the virus has surged throughout the country this year. "The U.S. housing market continues to show remarkable resilience during a time of widespread economic trouble and high unemployment stemming from the virus pandemic. But amid continued price gains, pockets around the country face greater risk of a fall, especially in and around the Northeast," said Todd Teta, chief product officer with ATTOM Data Solutions. "There is much uncertainty ahead, especially if another virus wave hits. We will continue to closely monitor home prices and sale patterns to see if, how and where the pandemic starts rattling local markets." Most vulnerable counties clustered around New York City, Baltimore, Philadelphia, Washington, D.C, and Chicago. Twenty of the 50 U.S. counties most at-risk in the third quarter of 2020 from housing-market troubles connected to the pandemic (among the 487 counties with sufficient data) were in the metropolitan statistical areas around New York, NY; Philadelphia, PA; Baltimore, MD; Washington, D.C., and Chicago, IL. They included five in the New York City suburbs (Bergen, Essex, Passaic and Sussex counties in New Jersey, along with Orange County, NY) and four around Philadelphia (Burlington, Camden and Gloucester counties in New Jersey, plus Bucks County, PA). Another four counties found most at risk are in the Baltimore metro area: Anne Arundel, Baltimore, Carroll and Howard counties. The three around Chicago are Lake, McHenry and Will counties. Seven of Connecticut's eight counties also are in the top 50, including Fairfield, Litchfield, Middlesex, New Haven, New London, Tolland and Windham counties. The only western counties among the top 50 most at risk from problems connected to the Coronavirus outbreak in the third quarter of 2020 were Humboldt County (Eureka), CA; Butte County (Chico), CA; Shasta County (Redding), CA, and Hawaii County, HI. Florida also had three counties in the top 50: Charlotte County (outside Fort Myers), Flagler County (outside Daytona Beach) and Highlands County (Sebring). Higher levels of unaffordable housing, underwater mortgages and foreclosure activity in most-at-risk counties Major home ownership costs (mortgage, property taxes and insurance) consumed more than 30 percent of average local wages in 35 of the 50 counties that were most vulnerable to market problems connected to the virus pandemic in the third quarter of 2020. The highest percentages were in Bergen County, NJ (outside New York City) (51 percent of the average local wage required for major ownership costs); Passaic County, NJ (outside New York City) (50 percent); Comal County, TX (outside San Antonio) (48 percent); Carroll County, MD (outside Baltimore) (46 percent); and Hawaii County, HI (46 percent). Among all counties in the report, major expenses on the median-priced home typically consumed 32 percent of the average local wage. At least 15 percent of mortgages were underwater in the second quarter of 2020 (the latest data available on owners owing more than their properties are worth) in 37 of the 50 most at-risk counties. Nationwide, 13 percent of mortgages fell into that category. Those with the highest underwater rates were Cumberland County (Vineland), NJ (34 percent); Saint Clair County, IL (outside St. Louis, MO) (33 percent); Lackawanna County (Scranton), PA (31 percent); Monroe County, PA (outside Wilkes-Barre) (30 percent) and Madison County, IL (outside St. Louis, MO) (29 percent). More than one in 2,500 residential properties faced a foreclosure action in the second quarter of 2020 (the latest available data) in 36 of the 50 most at-risk counties. Nationwide, about one in 4,449 homes were in that position. (Foreclosure actions have dropped about 80 percent this year amid a foreclosure moratorium on banks taking back properties from homeowners behind on their mortgages.) Those with the highest rates were in Saint Tammany Parish, LA (outside New Orleans) (one in 755 properties facing possible foreclosure); Tazewell County, IL (outside Peoria) (one in 816); Madison County, IL (outside St. Louis, MO) (one in 875); Saint Clair County, IL (outside St. Louis, MO) (one in 1,007) and Kent County (Dover), DE (one in 1,069). "While it's unlikely that we'll see a return to the historically high levels of foreclosure activity we saw during the Great Recession, it's a near-certainty that the number of defaults will increase once the foreclosure moratoria have been lifted, and the CARES Act forbearance program expires," said Rick Sharga, executive vice president of RealtyTrac, an ATTOM Data Solutions company. "It's also likely that foreclosures will be concentrated in markets where there's a dual-trigger – for example, stubbornly high unemployment rates, and homeowners who are underwater on their loans." Counties least at-risk concentrated in Colorado, Indiana, Missouri, Texas and Wisconsin Twenty-five of the 50 least-vulnerable counties from among the 487 included in the third-quarter report were in Colorado, Indiana, Missouri, Texas and Wisconsin. The largest populated counties included Tarrant County (Fort Worth), TX; Travis County (Austin), TX; Marion County (Indianapolis), IN; Denver County, CO, and Arapahoe County, CO (outside Denver). Others among the 50 least at-risk counties with a population of at least 500,000 included Middlesex County, MA (outside Boston); Hennepin County (Minneapolis), MN; Fairfax County, VA (outside Washington, DC); Mecklenburg County (Charlotte), NC, and Wake County (Raleigh), NC. 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 28 of the 50 counties that were least at-risk from market problems connected to the virus pandemic in the third quarter of 2020. The lowest percentages were in Winnebago County (Oshkosh), WI (20 percent of the average local wage required for major ownership costs); Marion County (Indianapolis), IN (20 percent); Macomb County, MI (outside Detroit) (21 percent); Saint Clair County, MI (outside Detroit) (21 percent) and Benton County (Rogers), AR (21 percent). At least 15 percent of mortgages were underwater in the second quarter of 2020 (with owners owing more than their properties are worth) in only one of the 50 least at-risk counties. Those with the lowest rates were Chittenden County (Burlington), VT (3 percent); Washington County, WI (outside Milwaukee) (4 percent); Travis County (Austin), TX (5 percent); Multnomah County (Portland), OR (5 percent) and Boulder County, CO (5 percent). More than one in 2,500 residential properties faced a foreclosure action in the second quarter of 2020 in none of the 50 least at-risk counties. Those with low foreclosure rates included Davidson County (Nashville), TN (one in 50,975 properties facing possible foreclosure); Sheboygan County, WI (one in 50,939); Potter County (Amarillo), TX (one in 49,656); Suffolk County (Boston), MA (one in 47,605) and Washoe County (Reno), NV (one in 38,791). Report methodology The ATTOM Data Solutions Special Coronavirus Market Impact Report is based on ATTOM's second-quarter 2020 residential foreclosure and underwater property reports and third-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 *properties with a foreclosure filing during the second quarter of 2020, the percentage of properties with outstanding mortgage balances that exceeded estimated market values in the second quarter of 2020 and the percentage of average local wages need to afford the major expenses of owning a median-priced home in the third 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 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).
MORE >
Realtor.com Red Versus Blue Report: Blue State Americans Are Searching For Homes In Swing States; What Does That Mean For The Presidential Election?
MORE >
Rental Beast September Market Report: Conversation with Brian Horrigan, Chief Economist at Loomis Sayles
September 23, 2020 -- In conjunction with our regular monthly Market Report, Rental Beast interviewed Brian Horrigan, Chief Economist at Loomis Sayles, a Boston-based investment management firm with more than $310 billion in assets under management, to discuss economic trends and COVID-driven real estate developments. Rental Beast spoke with Horrigan on the 19th anniversary of the September 11th attacks, and Horrigan draws enlightening parallels between the economic conditions following 9/11, and today's COVID pandemic. Horrigan explains that 9/11 permanently changed the way airport security is handled. Similarly, he expects the pandemic to have long-term effects on where we work and where we live. Although COVID-19 restrictions will eventually ease, Horrigan expects many companies will adopt a permanent hybrid work from home model. "Extended lockdowns forced millions of employees to experience working from home for the first time, and many workers found that a work from home model resulted in both more productive working hours, and the ability to spend more time with family and pursuing other interests," says Horrigan. "Even after restrictions are eased, many employees may not want to return to pre-pandemic routines and will make future real estate decisions without considering proximity to the office." Since mid-March, Rental Beast's Rental Inquiry data has shown renters moving away from urban centers to the suburbs. Horrigan emphasizes that, for millennials in their prime family formation years, the pandemic has highlighted the risks of urban living. Horrigan comments on the rise in millennial-driven suburban living, saying, "Even before the onset of the COVID-19 pandemic, many millennials left cities in search of suburban affordability and space. And, with the spike in urban violence, fear of COVID-19 contagion, and concern of future outbreaks, the number of millennials interested in non-urban living options will continue to rise." However, Horrigan is careful to point out, "This is not all bad news for urban centers. Cities will need to re-define themselves, and we may see more commercial projects pivot towards residential activity in order to address major pre-pandemic issues, including poor housing availability and affordability." But, as developers look ahead to new projects, a lack of available land near city centers will push development further away from major metro areas. If Horrigan's theory plays out, a combination of more work from home opportunities and millennial-driven suburban development may result in more affordable housing options in urban centers. While much of the resale and rental market is, in Horrigan's words, "Go, go, go," homeownership and rentals in city cores have been compromised. He emphasizes that it took most cities decades to develop the levels of safety and vibrancy needed to attract and keep residents. "COVID is dramatically changing these dynamics. Major cities will need years to repair the damage done." Rental Beast's August 2020 data reflects slowing interest in the urban rental market. In this report, we evaluate exclusive data from five major U.S. cities: Atlanta, Boston, Chicago, Miami, and Philadelphia. We track year-over-year (YOY) changes in Rental Inquiries and Rental Concessions in each city to gain a picture of market conditions. Rental Inquiries Rental Inquiry Volume Continues to Fall in Most Markets Rental Inquiries are prospective tenants actively seeking to rent an available property in our database. Rental Inquiry volume typically follows a predictable seasonal pattern—Rental Beast data from previous years show a high volume of Rental Inquiries during the summer months, as renters hoping to move in the fall begin their apartment search. Departures from such patterns serve as powerful, quantifiable early indicators of a shift in the rental marketplace and are more powerful predictors of future transactional activity than traditional rental information, such as average rent. Rental Beast monitors all inquiries to available listings on the Rental Beast website and listings syndicated to our partner sites including Facebook Marketplace and Realtor.com. August was yet another month of high anxiety for renters. Americans continued to process powerful economic and social factors, including the expiration of the CARES Act, ongoing confusion about school re-opening plans, numerous social reform protests, amped up messaging ahead of the U.S. presidential election, and, of course, the continued effects of COVID-19. In August, Rental Inquiries were down YOY in three out of five markets surveyed. Boston, Miami and Atlanta all recorded significant YOY declines, while Chicago and Philadelphia registered YOY increases: Chicago and Philadelphia registered positive YOY Rental Inquiry results, with gains of 144% and 32%, respectively. Despite health, economic, and social challenges, August represented the 4th consecutive month of positive YOY Rental Inquiry results in Chicago. Rental Beast had the opportunity to discuss the state of the Chicagoland rental market with Chicago real estate leader and CEO of Exit Strategy Realty, Nick Libert. Libert, who has a successful track record of working with both homebuyers and renters, explains that due to historically low interest rates more Chicagoans are considering homeownership, many for the 1st time. This desire for homeownership has driven his 2020 business to record levels. However, a key factor in the growth of the for-sale market is job security. Conversely, some clients must adjust their housing plans due to layoffs. Libert shares that some clients who were in the market to buy a home decided to rent due to recent furloughs. Other potential homebuyers choose to continue renting in pursuit of better deals on home prices—Libert adds that many of his clients who may be financially positioned to purchase a home are choosing to rent, waiting for lower home prices while the economic fallout from COVID-19 persists. For three of the past four months, Philadelphia recorded positive YOY Rental Inquiries as the city of Brotherly Love continues to benefit from renters moving out of NYC in pursuit of more space and lower costs. August represents the eighth consecutive month that both Boston and Miami reported negative YOY Rental Inquiry rates—down 65% and 62%, respectively. Atlanta also reported a 53% decline, continuing the city's nearly year-long trend of negative YOY Rental Inquiries. Like most major metros, many of Boston's large office complexes sit empty as companies re-think their real estate needs. While the shift to virtual models by Boston's universities and large corporate employers has dampened rental demand, Horrigan is optimistic that Boston will recover more quickly. "Unlike many other cities across the US, Boston crime-rates have remained relatively low, suggesting a smoother road to recovery." Like Boston, Miami recorded negative YOY Rental Inquiry rates, as tourism continues to suffer under COVID-19 restrictions. Rental Concessions Rental Concessions Settle in Some Markets While Remaining Prevalent in Others Rental Concessions are compromises landlords make to original rent terms in the hope of filling a vacancy more quickly. Rental Concessions can include monetary compensation, a discount, or various goods and services. For August, Rental Concessions dropped in Philadelphia, Chicago, and Atlanta, while Boston and Miami registered YOY increases: Throughout August, anxious landlords and tenants hoped for guidance from Congress about new rent relief measures. Absent further guidance, landlords continued to slow the pace of Rental Concessions with the following YOY declines: Philadelphia (-99%), Chicago (-54%), and Atlanta (-14%). "Lawmakers in Congress and the Administration need to come back to the table and work together on comprehensive legislation that protects and supports tens of millions of American renters by extending unemployment benefits and providing desperately needed rental assistance," said Doug Bibby, National Multifamily Housing Council President. Boston & Miami landlords continue to offer Rental Concessions to prospective tenants. Boston Rental Concessions were up 99% YOY for August, while Miami posted a 82% YOY increase. Pre-COVID, Boston landlords rarely offered Rental Concessions. However, landlords have quickly adjusted to reduced demand by offering high concessions. Ishay Grinberg, Rental Beast's founder and CEO, comments, "As a landlord, I want to make sound financial decisions while still attracting the best residents. I don't want to lower rents, because it will be very difficult to raise them to market value later. Offering Rental Concessions strikes the right balance—they help landlords fill vacancies, and tenants benefit from some financial relief." About Rental Beast Rental Beast is a SaaS platform that simplifies the leasing process with an end-to-end platform and maintains a highly accurate database of over eight million off-MLS rental properties. With active listings in 19 markets across the United States, and 5 additional markets opening within the next 30 days, Rental Beast's Data Services Group tracks various rental trends in its markets across the nation.
MORE >
People Are Searching in the Suburbs More Than Ever Before
MORE >
Remote Work to Drive Home Purchase Decisions in the Next Six Months
More than half of those currently working from home are doing so because of COVID SANTA CLARA, Calif., July 29, 2020 -- Many families quickly adjusted their current living space to accommodate working from home, but those who expect the change to be permanent are likely to pull the trigger on a new home purchase in the next six months, according to a realtor.com® HarrisX survey of active home shoppers released today. Of the 2,000 home shoppers surveyed in June who plan to purchase a home in the next year, 63 percent of those currently working from home indicated their decision to buy a new house was a result of their ability to work remotely. Nearly 40 percent of those who said remote work was fueling their search expected to purchase a home within four to six months, and 13 percent said changes related to COVID prompted their desire to purchase a new home. Having a home office is very important for people who work remotely, but not at the exclusion of more conventional features. Over 20 percent of respondents who are buying because of remote work say that having a home office is important to them and a home office was the most chosen new home feature. Similar to overall home buyers, the five next most popular features were a garage, a quiet location, an updated kitchen, a large backyard, and an open floor plan. "The ability to work remotely is expanding home shoppers' geographic options and driving their motivation to buy, even if it means a longer commute, at least in the short term," said realtor.com® Senior Economist George Ratiu. "Although it's too early to tell what long-term impact the COVID-era of remote work will have on housing, it's clear that the pandemic is shaping how people live and work under the same roof." Today's remote work snapshot According to the data, nearly 40 percent of currently employed respondents are currently working from home as a result of COVID. Thirty-five percent of respondents were remote employees before COVID happened and 28 percent are still going into their place of employment. When given the choice of working remotely or in an office setting 52 percent of remote workers indicated they prefer to work from home. Interestingly, 39 percent prefer to work in an office setting and 9 percent said it makes no difference to them. Accommodating remote work at home With entire families at home, finding a quiet place for work or school has been challenging for many. Fifty percent of respondents do the majority of their work in a home office. Fifteen percent work in their bedroom, 13 percent in the living room, 12 percent at the kitchen table and 7 percent move from room to room depending on where their family is. In order to accommodate work from home, 45 percent of respondents converted a room in their home to an office. Thirty-six percent created a home office space and 28 percent updated their existing office space with a new monitor, chair, etc. Only 7 percent have not made any accommodations or already had a good office set up at home. Majority of respondents anticipate some aspect of remote work in the future With many companies and schools pushing back return dates, especially as new COVID outbreaks continue to increase across certain regions of the country, 53 percent anticipated that they will be working in an office full-time. Approximately one in five, 22 percent, of those surveyed expect a mix of in-office and remote work, while 14 percent responded they don't anticipate ever returning to the office. Flexibility also seemed an option among survey respondents, with 63 percent indicating that their employer will be open to remote work in some capacity. Of these respondents, 40 percent stated that their employer permitted a mix of office and remote work and 16 percent said their employer permitted remote work entirely. Only 37 percent indicated they are required to be in the office full time. Of those stating that they will resume going into the office either full or part time, 40 percent anticipated it would be within the next three months, while 46 percent thought it would be within the next three to six months. Thirteen percent thought they would return in 2021 and 2 percent said never. For more information about realtor.com's remote work survey, please click 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.
MORE >
Homebuying 2020: Buyers Intent on Finding a Three-Bedroom, Two-Bath House with a Garage and Remodeled Kitchen
MORE >
Realtor.com Launches Weekly Housing Recovery Index
Data shows housing recovery remains strong despite social unrest SANTA CLARA, Calif., June 11, 2020 -- COVID-19 and economic headwinds have led to unprecedented disruptions in the U.S. real estate market. In order to track the impact of these events, realtor.com today announced the launch of its Housing Recovery Index, which shows that despite continued COVID cases and the large scale protests that took place the week ending June 6 -- the U.S. housing market continues to recover even in cities experiencing civil unrest. The proprietary index leverages a weighted average of realtor.com® search traffic, median list prices, new listings, and median time on market and compares it to the January 2020 market trend, as a baseline for pre-COVID market growth. The overall index is set to 100 in this baseline period. The higher a market's index value, the higher its recovery and vice versa. For the week ending June 6, the realtor.com® Housing Market Recovery Index was 88.8 nationwide, 11.2 points below the January baseline and up 1.0 point over the prior week. The slight increase in this week's overall index represents a 5.7 point increase over the 83.1 low point in the index, which occurred during week ending May 2. "By combining online search activity along with price and supply dynamics, the index functions as a robust leading indicator of housing activity, and a symptom gauge as we move toward healthier market conditions," Javier Vivas, director of economic research for realtor.com®. This week's index reading also reveals the recovery trend was not impacted in the 11 markets that saw the largest number of protests the week ending June 6. On average, these markets saw their recovery index increase 0.7 points over the prior week, ending May 30. When compared to other similar sized markets with reportedly less civil unrest, there was no evidence that the protests had an impact on housing recovery. Of the 11 markets, 6 areas saw slight increases in their weekly recovery index: Atlanta (+1.5 points) Chicago (+4.7 points) Cleveland (+3.3 points) Los Angeles (+0.2 points) Minneapolis (+0.3 points) New York (+4.9 points) Five saw a slight decrease in their weekly recovery index: Dallas (-2.0 points) Louisville, Ky (-2.1 points) Raleigh (-0.7 points) St. Louis (-0.9 points) Washington, D.C. (-1.1 points). Key Housing Metrics for the Week Ending June 6:   "The general sentiment from consumer surveys is that now is not a good time to sell a home because of COVID, economic uncertainty, and social unrest, but the data is saying the opposite," said Danielle Hale, chief economist for realtor.com. "Home prices are back to their pre-COVID pace and we're seeing listings spend slightly less time on the market than last week. But the housing market still needs more sellers in order to meet the surge in demand. Looking forward, if we don't get the inventory we need, we'll see prices rise even more and homes sell faster later this summer." New listings: Nationwide, the size of declines held mostly steady this week, dropping 21 percent over last year, which is a slight improvement over last week and a significant improvement when compared to early May's 30 percent declines year-over-year. This week's index shows new listings are 12.7 points below their January recovery baseline. Sellers have started June on the right foot, and the following weeks will indicate whether there will be enough supply to boost home sales this summer, nationwide and in all large markets. The continued declines in newly listed properties mean the full wave of spring sellers has yet to return to the market. However, recovery could be on the horizon as more than half (56 of 99) of large metros continue to see smaller declines this week, including New York, Boston and San Francisco. Asking prices: Price gains fully caught up to pre-COVID pace increasing 4.3 percent in the week ending June 6, compared to 4.4 percent the first two weeks of March. This week's index shows home prices are 0.7 points above the January recovery baseline. The mix of homes for-sale has reverted back toward pricier properties, and demand for entry-level properties has been reignited. Price gains have accelerated rapidly in recent weeks with inventory on the decline and buyer interest on the rise. Locally, 89 of 100 metros saw asking prices increase over last year. Total Active Listings: Sellers are still playing catch up during what's normally the busiest part of the season, and the availability of homes for sale remains well below seasonal levels. Total active listings declined 25 percent compared to a year ago as the lack of sellers is currently outweighing the extra time homes spend on the market. Signs, such as improved home purchase sentiment over last month, are pointing to rising home buyer interest and seller confidence, setting up a pick-up in sales activity in the summer months. Time on market: While homes are still sitting more than two weeks longer on the market than this time last year, this week's data shows the trend may be reverting back toward recovery. The week ending June 6 saw the first weekly decline in time on market since mid-March, with days on market one day faster than last week. It could still take a few more weeks for time on market to reach pre-COVID levels, since the pace of sales component of the recovery index remains 30.1 points below the January recovery baseline, but this week's data shows the first, important step toward recovery. For more information about the index report, please visit: https://www.realtor.com/research/housing-market-recovery-index/ For the latest weekly housing trends and index data, please visit: Index Housing trends 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.
MORE >
Realtor.com Forecasts a Year of Ups and Downs for Housing Market
MORE >
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
WASHINGTON (April 23, 2020) -- Nearly 3 in 4 Realtors currently working with sellers this week -- 74% -- reported their clients haven't reduced listing prices to attract buyers, according to a new survey from the National Association of Realtors. This suggests interested home sellers are remaining calm and avoiding panic selling during the uncertain economic environment brought about by the coronavirus pandemic. "Consumers are mostly abiding by stay-in-shelter directives, and it appears the current decline in buyer and seller activity is only temporary, with a majority ready to hit the market in a couple of months," said NAR Chief Economist Lawrence Yun. "The housing market faced an inventory shortage before the pandemic. Given that there are even fewer new listings during the pandemic, home sellers are taking a calm approach and appear unwilling to lower prices to attract buyers during the temporary disruptions to the economy." NAR's latest Economic Pulse Flash Survey – conducted April 19-20, 2020 – asked members how the coronavirus outbreak has impacted the residential and commercial real estate markets. Several highlights include: More than a quarter of Realtors® – 27% – said they were able to complete nearly all aspects of transactions while respecting social distancing. The most common technology tools used to communicate with clients are e-signatures, social media, messaging apps and virtual tours. Residential tenants are facing rent payment issues, but many delayed payment requests are being accommodated. Forty-seven percent of property managers reported being able to accommodate tenants who cannot pay rent, a 6% increase from a week ago. Nearly a quarter of individual landlords – 24% – said the same, unchanged from last week. NAR also today released its 2020 Animal House: Pets in the Home Buying and Selling Process report, which analyzes Realtor® recommendations and actions taken by home buyers and sellers to best accommodate their pets and present their homes in the best light. Several highlights include: More than 4 in 10 U.S. households – 43% – would be willing to move to better accommodate their pets, demonstrating that this is a priority among consumers. Almost 1 in 5 recent home buyers – 18% – said it was very important that their new neighborhood is convenient to a vet or near outdoor space for their pets. A majority of Realtors®' clients – 68% – said a community's animal policy influenced their decision to rent or buy. "As households in the U.S. pursue comfort, companionship, and home entertainment, animal shelters were cleared out in many cities," said Jessica Lautz, NAR vice president of demographics and behavioral insights. "These pet adoptions could lead to future home sales as families seek to accommodate the best living spaces for their four-legged family members." View NAR's 2020 Animal House: Pets in the Home Buying and Selling Process report. View NAR's Economic Pulse Flash Survey full report. View NAR's Weekly Housing Market Monitor here. The National Association of Realtors® is America's largest trade association, representing more than 1.4 million members involved in all aspects of the residential and commercial real estate industries.
MORE >
U.S. Housing Markets Vulnerable to Coronavirus Impact Clustered in Northeast and Florida
MORE >
NAR Survey Finds Nearly Half of Realtors Say Home Buyer Interest Has Decreased Due to the Coronavirus Outbreak
WASHINGTON (March 19, 2020) -- Nearly half of Realtors -- 48% -- said home buyer interest has decreased due to the coronavirus outbreak, according to a new survey from the National Association of Realtors. That percentage tripled from a week ago when it stood at 16%. Almost seven in 10 Realtors -- 69% -- said there's no change in the number of homes on the market due to the coronavirus outbreak, down from 87% a week ago. "The decline in confidence related to the direction of the economy coupled with the unprecedented measures taken to combat the spread of COVID-19, including major social distancing efforts nationwide, are naturally bringing an abundance of caution among buyers and sellers," said NAR Chief Economist Lawrence Yun. "With fewer listings in what's already a housing shortage environment, home prices are likely to hold steady. The temporary softening of the real estate market will likely be followed by a strong rebound once the economic 'quarantine' is lifted, and it's critical that supply is sufficient to meet pent-up demand." NAR's latest Economic Pulse Flash Survey – conducted March 16-17, 2020 – asked members questions about how the coronavirus outbreak, including the significant declines in stock market values and mortgage interest rates, has impacted home buyer and seller interest and behavior as well as new commercial clients who want to lease and purchase property. With respect to the coronavirus, several highlights of the member survey include: 45% of members said the stock market correction and lower mortgage rates roughly balanced out, noting no significant change in buyer behavior. The majority of members, 61%, reported no change in sellers removing homes from the market, down from 81% a week ago. Four in 10 members said home sellers have not changed how their home is viewed while it remains on the market. One week ago, nearly eight in 10 members – 77% – said the same. More than half of commercial members, 54%, have seen a decline in leasing clients, up from 18% of commercial members last week. Eighty-three percent of commercial buildings have changed practices, with the most common being offering more hand sanitizer, more frequent building cleanings, and increasing numbers of tenants working remotely. View NAR's Economic Pulse Flash Survey full report here. The National Association of Realtors® is America's largest trade association, representing more than 1.4 million members involved in all aspects of the residential and commercial real estate industries.
MORE >
Exclusive Podcast Interview with NAR Chief Economist on Coronavirus Impact
MORE >
Housing Shortage Leads to Intense Competition Among Homebuyers
Survey of more than 500 Redfin agents shows increase in bidding wars across U.S. markets SEATTLE, Feb. 24, 2020 -- A majority of offers submitted by Redfin agents faced competition in January, according to a survey of more than 500 agents across the nation in a new report from Redfin, the technology-powered real estate brokerage. Competition is spiking hard and early in 2020, and agents are reporting a flood of buyers as home supply sits at its lowest point in seven years, leading to a severe housing shortage in many areas. "Low mortgage rates have brought buyers back to the housing market, but a lack of listings means buyers are having to compete with one another to secure a sale and lock in a mortgage rate," said Redfin chief economist Daryl Fairweather. "This competition pushes up prices, which means that even though buyers can get a good deal on a mortgage now they are often paying a higher sticker price." The San Francisco Bay Area had the highest rate of competition, with agents estimating that more than 90% of the time there were multiple offers on homes their clients were bidding on—despite the fact that the median home price there is still well above $1 million. Of the 24 markets where Redfin received a significant volume of responses from agents, homebuyers in all but five faced competition more often than not. The area that seemed least prone to competition was Greenville, SC. In the Bay Area, the most competitive market in January, buyers are going to extreme lengths to win a home. "After missing out on one home due to a bidding war, my clients were much more aggressive on their next offer," said Redfin San Jose agent Jennifer Tollenaar. "In order to beat 24 other offers, they put 50% down, wrote a great letter to the sellers and removed all contingencies. This was on a home with a purchase price of over $1.7 million." "In Phoenix, inventory is so low right now that one of my clients has run into bidding wars with more than 10 offers for three weekends in a row," said Arizona Redfin agent Thomas Wiederstein. "Offering well above listing price isn't enough in today's market. You have to do that, plus waive contingencies just to have your offer considered by sellers." The most shocking story of competition came from Redfin Portland agent Meme Loggins, whose clients recently made an offer that was $8,000 above the home's $275,000 list price. "Ours was the second offer the sellers had received. Two days later we were competing with 30 other offers. This bidding frenzy took place on a mobile home that was pretty far out of the metro area and not even in great condition. It's getting crazy out there!" It's not just the West Coast that's seeing competition explode. In Philadelphia, even homes that have been on the market for months are suddenly attracting bidding wars. "One home I recently helped my clients win had been on the market since June and hadn't been reduced in price since November," said Redfin Philadelphia agent Brenda Beiser. "When we looked at it in mid-January the agent told me there had been six other appointments the day before. By the time our offer went in that evening they had received two other offers." A number of other Redfin agents shared similar stories of experiencing multiple offers in January on homes that had been on the market for months. This recurring theme is indicative of just how many buyers have suddenly come into the market, but without a corresponding increase in listings of homes for sale. To read the full report, please visit: https://www.redfin.com/blog/homebuyer-competition-report-january-2020. About Redfin Redfin is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 90 major metro areas across the U.S. and Canada. The company has helped customers buy or sell homes worth more than $115 billion.
MORE >
Missing: For Sale Signs Across West, Midwest and Northeast Markets
MORE >
Migrants Out of Expensive West Coast Metros Flocked to Portland, Oregon in Q4 2019
Affordable stalwarts Phoenix, Sacramento, Las Vegas and Atlanta continued to dominate the list of top migration destinations SEATTLE, Feb. 7, 2020 -- Twenty-six percent of home searchers looked to move to another metro area in the fourth quarter of 2019, compared to 25% during the same period last year, according to a new report from Redfin (www.redfin.com), the technology-powered real estate brokerage. This ties the all-time high for the national share of home-searchers looking to relocate that was set in the third quarter of 2019. The latest migration analysis is based on a sample of more than 1 million Redfin.com users who searched for homes across 87 metro areas from October through December. Moving In — Top U.S. Metros Attracting the Most Migrants Portland, Oregon regained a spot in the top 10 list of metro areas with the highest net inflow of Redfin users, coming in at seventh after falling out of the list in Q1 of 2019. Nashville was also a new addition to the top 10 this month at number 10. San Diego and Charlotte both fell out of the top 10. Phoenix moved back into the number one spot in the fourth quarter after slipping to third place in the third quarter. Boston's reign at number one was short-lived: after one quarter at the top it fell to ninth place. At just $400,000, Portland has one of the most affordable median home prices among major West Coast cities, which makes it an attractive location for inbound residents from other more expensive cities across the west coast such as San Francisco (median price $1.32 million), Seattle($572,500) and Los Angeles($649,000). "The ability to work remotely is a huge factor in people relocating, especially within the same time zone," said Portland Redfin agent Megan Warren. "I just met with a homebuyer who is moving here from Oakland in the spring. Working remotely is allowing him to sell his condo in a less desirable part of the Bay Area for over $500,000 and buy a serious upgrade in space, safety, and neighborhood in the Portland area." Moving Out — U.S. Metros Losing the Most Migrants Some of the most expensive areas in the country dominated the list of metros facing negative migration. New York, San Francisco, Los Angeles and Washington, D.C., were among the cities with the greatest number of people looking to move away in the fourth quarter. "The current inventory crunch really started building in the fourth quarter, pushing home prices in the expensive coastal cities back up after a slight reprieve earlier in the year," said Redfin chief economist Daryl Fairweather. "As price increases begin to gain steam again in these areas, we're predicting that migration to more affordable areas will increase, which in turn will begin to drive prices up there, as well." To read the full report, please visit: https://www.redfin.com/blog/q4-2019-housing-migration-report About Redfin Redfin is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 90 major metro areas across the U.S. and Canada. The company has helped customers buy or sell homes worth more than $85 billion.
MORE >
What Makes Buyers Fall in Love with a Home?
MORE >
U.S. Homeowners Four Times as Likely to Be Equity-Rich Than Seriously Underwater
Equity-rich Properties in Fourth Quarter of 2019 Comprise 27 Percent of All Mortgaged Homes; Highest Equity Levels Remain in San Francisco Bay Area IRVINE, Calif. -- Feb. 6, 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 its fourth-quarter 2019 U.S. Home Equity & Underwater Report, which shows that 14.5 million residential properties in the United States were considered equity-rich, meaning that the combined estimated amount of loans secured by those properties was 50 percent or less of their estimated market value. The count of equity-rich properties in the fourth quarter of 2019 represented 26.7 percent, or about one in four, of the 54.5 million mortgaged homes in the U.S. That percentage was unchanged from the third quarter of 2019. The report also shows that just 3.5 million, or one in 16, mortgaged homes in the fourth quarter of 2019 were considered seriously underwater, with a combined estimated balance of loans secured by the property at least 25 percent more than the property's estimated market value. That figure represented 6.4 percent of all U.S. properties with a mortgage, down slightly from 6.5 percent in the prior quarter. "Homeownership continued boosting household balance sheets across the United States in the fourth quarter of 2019, as people paying off mortgages were much more likely to be in equity-rich territory than seriously underwater. That marked yet another sign of how much the country has benefited from an eight-year housing-market boom," said Todd Teta, chief product officer with ATTOM Data Solutions. "Some big gaps in equity levels persist between regions and market segments. But as home values keep climbing, financial resources keep building for homeowners, which provides them with leverage to make home repairs, help their children through college or take on other major expenses." Highest equity-rich shares all in the Northeast and West The top 10 states with the highest share of equity-rich properties in the fourth quarter of 2019 were all in the Northeast and West regions, led by California (42.8 percent equity-rich), Vermont (39.2 percent), Hawaii (38.8 percent), Washington (35.4 percent) and New York (35.1 percent). States with the lowest percentage of equity-rich properties were Louisiana (13.6 percent equity-rich), Oklahoma (14.9 percent), Illinois (15.3 percent), Arkansas (16.3 percent) and Alabama (16.5 percent). Among 107 metropolitan statistical areas analyzed in the report with a population greater than 500,000, those with the highest shares of equity-rich properties were San Jose, CA (65.9 percent equity-rich); San Francisco, CA (57.5 percent); Los Angeles, CA (47.8 percent); Santa Rosa, CA (45.9 percent) and Honolulu, HI (39.3 percent). The leader in the Northeast region was Boston, MA, (35.6 percent) while Dallas, TX, led the South (36.5 percent) and Grand Rapids, MI, led in the Midwest (27.4 percent). Metro areas with the lowest percentage of equity-rich properties were Baton Rouge, LA (10.8 percent equity-rich); Little Rock, AR (13.4 percent); Tulsa, OK (13.7 percent); Columbia, SC (13.9 percent) and Akron, OH (14.6 percent). Top equity-rich counties concentrated in California Among the 1,467 counties with at least 2,500 properties with mortgages in the fourth quarter of 2019, 11 of the top 25 equity-rich locations were in California. Counties with the highest share of equity-rich properties were San Mateo, CA (73.6 percent equity-rich); San Francisco, CA (70.1 percent); Santa Clara (San Jose), CA (66.9 percent); San Juan, WA (63.5 percent) and Alameda County, CA (outside San Francisco) (57.7 percent). More than half of all properties were equity-rich in 451 zip codes Among 8,262 U.S. zip codes with at least 2,000 properties with mortgages in the fourth quarter of 2019, there were 451 zip codes where at least half of all properties with a mortgage were equity rich. The top 25 were all in California, with most in the San Francisco Bay area. They were led by zip codes 94116 in San Francisco (82.6 percent equity-rich), 94040 in Mountain View (81.7 percent), 94122 in San Francisco (80.6 percent), 94112 in San Francisco (80.1 percent) and 94087 in Sunnyvale (79.5 percent). Highest seriously underwater shares in the South and Midwest The top 10 states with the highest shares of mortgages that were seriously underwater in the fourth quarter of 2019 were all in the South and Midwest, led by Louisiana (16.8 percent seriously underwater), Mississippi (16.0 percent), West Virginia (13.9 percent), Iowa (13.5 percent) and Arkansas (12.9 percent). Among 107 metropolitan statistical areas analyzed in the report with a population greater than 500,000, those with the highest share of mortgages that were seriously underwater included Youngstown, OH (16.2 percent); Baton Rouge, LA (15.9 percent); Scranton, PA (15 percent); Cleveland, OH (13.7 percent) and Akron, OH (13.4 percent). More than 25 percent of all properties were seriously underwater in 149 zip codes Among 8,262 U.S. zip codes with at least 2,000 properties with mortgages in the fourth quarter, there were 149 zip codes where at least a quarter of all properties with a mortgage were seriously underwater. The largest number of those zip codes were in the Cleveland, OH; Philadelphia, PA; Milwaukee, WI; Rockford, IL, and St. Louis, MO, metropolitan statistical areas. The top five zip codes with the highest share of seriously underwater properties were 71446 in Leesville, LA (65.7 percent seriously underwater); 44110 in Cleveland, OH (59.6 percent); 08611 in Trenton, NJ (58.7 percent); 53206 in Milwaukee, WI (58.6 percent) and 44105 in Cleveland, OH (54.2 percent). About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, 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).
MORE >
Redfin Ranks the Hottest Neighborhoods to Watch in 2020
MORE >
A Millennial Sized Problem Stands in Front of Gen Z Homebuyers
Gen Z is ready to buy, but competition remains fierce SANTA CLARA, Calif., Jan. 22, 2020 -- The oldest members of Gen Z are beginning to enter the homebuying stage of their lives, but they will have to compete with the might of the millennial generation for the nation's depleted inventory of entry level homes. Gen Z, the oldest of whom turned 22 in 2019, currently make up 2 percent of mortgages, according to realtor.com's Fourth Quarter 2019 Generation Propensity Report, but that number will continue to grow as the generation ages and their earning potential increases. "Gen Z is entering the housing market under the radar, but at a projected 65-million strong, they are going to begin making some major waves," according to realtor.com®'s Senior Economist George Ratiu. "However, as the young generation launches into homeownership, it is facing strong headwinds, including competition from millennials, many of whom are entering homeownership later in life, and a marketplace largely devoid of entry-level options." According to a survey conducted in 2018 by realtor.com®, 40 percent of Gen Z members stated they want to own their own home by the age 25. As the oldest cohort of Gen Z approaches that age, realtor.com®'s recent analysis shows they are starting to steadily increase their share of national home purchases. "With major generational transitions taking place across a housing landscape clouded by lack of new construction and a shortage of inventory, young Americans' preference for homeownership is a ray of sunshine," added Ratiu. "It stands in contrast to the rhetoric of the past decade, cataloging young people as the 'renter generation,' and provides ample evidence that a significant ramp-up in affordable new home building is needed to meet the growing demand." Depleted entry-level inventory With a lack of homes priced under $200,000 being built or available for-sale, Gen Z, those born between 1997 and 2012, will find it increasingly difficult to find a home within their price range. During the fourth quarter of 2019, the median purchase price of a home by Gen Z was $160,600. Then in December, the inventory of homes priced below $200,000 decreased by 18.1 percent year-over-year, according to realtor.com®'s December Monthly Trends Report. Although Gen Z increased their median purchase price by 11 percent over the past year, they are still many years away from catching up to millennials both in life stages and housing budgets. In order to find homes within their budget, Gen Z is turning toward smaller Midwestern and Southern markets that boast higher affordability. Toledo, Ohio; Grand Rapids, Mich.; and Wichita, Kan., were the top three metros where Gen Z had the largest share of homeownership. The top 10 Gen Z markets had a combined median listing price of $224,500, which is 25 percent less expensive than the nation's median listing price of $300,000. Top 10 Generation Z Housing Markets Gen Z will be competing with millennials for years to come The largest cohort of the millennial generation turns 30-years-old in 2020 and they are hitting the housing market in full force. At the end of the fourth quarter of 2019, millennials made up the largest generational segment of homebuyers, growing their share of home purchase mortgages to 48 percent. Millennials (born between 1981 and 1996) began entering the market at the height of the housing market crash in 2008 and the subsequent recession. Additionally, the generation found itself saddled with massive student loan debt, which caused many to delay their goals of homeownership, but that is all in the past. Now, as Gen Z begins to enter the market they are facing increased competition from millennials who patiently waited to purchase a home. At the moment, Gen Z and millennials have differing preferences on where to buy a home. Of the markets on Generation Z's top 10 list, only Grand Rapids, Mich., and Baton Rouge, La., appeared on the top 10 list for millennials. Larger and trendier markets such as San Francisco, Boston, and Denver were the most different between the generations. All three markets made it to the top 20 markets for millennials but ranked between 81 and 98 for Generation Z, most likely due to high housing prices shutting out Gen Z buyers. As Gen Z turns their interest toward larger metros in the future, competition between the generations is likely to increase, but at the moment, the two generations have a different focus, according to the realtor.com® analysis. Methodology The Report on Loan Originations by Age and Generational Groups is based off of a realtor.com® analysis of a sample of residential mortgage loan originations from Optimal Blue. The top market rankings were calculated using a group's mortgage origination share. The generational groups are defined as follows: Millennials: born between 1981 and 1996 Generation Z: born between 1997 and 2012 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®.
MORE >
U.S. Housing Market Short 3.8 Million New Homes
MORE >
Redfin Ranks the Most Competitive Neighborhoods of 2019
Neighborhoods in Grand Rapids, MI; Tacoma, WA; Minneapolis and the Bay Area Rank Highest for the Year SEATTLE -- Bay Area neighborhood White Oaks is the most competitive neighborhood of the year for homebuyers, according to a new report from Redfin, the technology-powered real estate brokerage. Alger Heights in Grand Rapids, MI and East Arlington in Boston rounded out the top three competitive neighborhoods. "While neighborhoods in the Bay Area and Boston are still among the most competitive in the country, robust competition for homes in Grand Rapids, Minneapolis and Tacoma neighborhoods signals the desirability of more affordable areas," said Redfin chief economist Daryl Fairweather. "An influx of buyers from more expensive neighborhoods contributes to competition in these affordable neighborhoods, especially because they can make higher offers than local residents when they sell their previous homes." The report is based on 2019 rankings from Redfin's Compete Score, which uses a combination of proprietary Redfin data and data from local multiple listing services to determine how difficult it is for buyers to win a home in individual neighborhoods and cities. Below are the most competitive U.S. neighborhoods based on an average of monthly stats from January through November 2019. Of the 10 Bay Area neighborhoods among the most competitive in the country, half are in Oakland. Although the median sale price in Oakland is more than double the national median—$720,000 versus $312,000 for the typical home in the U.S. in November—it's still well below that of San Francisco ($1.4 million) and San Jose ($1.1 million). Oakland Redfin agent Katy Polvorosa said the area has been particularly hot this year, partly because it's more affordable than neighboring parts of the Bay Area. "I've heard a lot of people say the Bay Area housing market is cooling this year, but I'm seeing the opposite in Oakland," Polvorosa said. "I'm writing offers that are seeing aggressive competition. Homes that are move-in ready and priced right typically receive offers within 12 to 14 days. The Oakland market is so hot that sellers are still expecting and receiving offers that waive contingencies." Although the Bay Area is still home to plenty of competitive neighborhoods, homebuyers are gravitating toward more affordable inland metros as housing markets in coastal job centers have become more expensive. In the third quarter of 2019, 26% of Redfin.com home searchers looked to move to another metro area, with affordable places like Sacramento, Phoenix and Las Vegas as popular destinations. The appearance of two neighborhoods in Grand Rapids on this year's ranking of most competitive neighborhoods is an example of the trend of migration away from more expensive metros. "Affordability plus quality of life are big draws to the Grand Rapids area. I've worked with buyers from Chicago, California, Hawaii and other expensive parts of the country who are looking here because they can get so much more bang for their buck," said local Redfin agent Shellie Silva, who moved to Grand Rapids from San Diego three years ago. "Homes in neighborhoods with price points below $275,000, like Alger Heights and Creston, are prone to bidding wars and they tend to sell quickly because they're even more affordable that some other parts of Grand Rapids." In Alger Heights, nearly 67% of homes sold for above list price and the typical home was on the market for one week before going under contract so far this year. And in Creston, 59.3% of homes sold for above list price and the typical home went under contract in just six days. To read the full report, including methodology, please visit: https://www.redfin.com/blog/most-competitive-neighborhoods-2019. About Redfin Redfin is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 90 major metro areas across the U.S. and Canada. The company has helped customers buy or sell homes worth more than $85 billion.
MORE >
Waning Affordability Contributes to Slower Job Growth
MORE >
Buying a Home Is More Affordable than Renting in 53 Percent of U.S. Housing Markets
Renting More Affordable Mainly in Suburban and Urban Counties; Home Price Gains Outpacing Wages in 66 Percent of U.S. Markets IRVINE, Calif. - Jan. 9, 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 its 2020 Rental Affordability Report, which shows that owning a median-priced, three-bedroom home is more affordable than renting a three-bedroom property in 455, or 53 percent, of the 855 U.S. counties analyzed for the report. However, the analysis shows a split between different-sized markets, with ownership more affordable mainly in lightly populated counties and renting more affordable in more populous suburban or urban areas. The analysis incorporated recently released fair market rent data for 2020 from the U.S. Department of Housing and Urban Development, wage data from the Bureau of Labor Statistics along with public record sales deed data from ATTOM Data Solutions in 855 U.S. counties with sufficient home sales data (see full methodology below). "Home ownership is a better deal than renting for the average wage earner in a slim majority of U.S. housing markets. However, there are distinct differences between different places, depending on the size and location from core metro areas," said Todd Teta, chief product officer with ATTOM Data Solutions. "For sure, either buying or renting is a financial stretch or out of reach for individual wage earners throughout most of the country in the current climate. But with interest rates falling, owning a home can still be the more affordable option, even as prices keep rising." Renting more affordable than buying in nation's most populated counties Renting is more affordable than buying a home in 94, or 69 percent, of the 136 counties in the report that have a population of at least 500,000 or more. Renting is the more affordable option in 36 of the 43 counties with a population of at least 1 million or more (84 percent) — including Los Angeles County, CA; Cook County (Chicago), IL; Harris County (Houston), TX; Maricopa County (Phoenix), AZ and San Diego County, CA. Other markets with a population of more than 1 million where it is more affordable to rent than buy include counties that surround or are inside of New York City; Dallas, TX; Seattle, WA; Las Vegas, NV; San Jose, CA; San Francisco, CA; San Antonio, TX and Boston, MA. Counties with a population of at least 1 million, where buying a home is more affordable than renting, were Miami-Dade County, FL; Broward County, FL; Wayne County (Detroit), MI; Philadelphia County, PA; Hillsborough County (Tampa), FL; Cuyahoga County (Cleveland), OH and Allegheny County (Pittsburgh), PA. Least affordable rental markets in California, Colorado, Hawaii The report shows that renting a three-bedroom property requires an average of 37.6 percent of weekly wages across the 855 counties analyzed for the report. The least affordable markets for renting are Santa Cruz County, CA (82.1 percent of average wages needed to rent); Marin County, CA (outside San Francisco) (75.3 percent); Park County, CO (southwest of Denver) (74.3 percent); Honolulu County, HI (74.2 percent) and Kauai County, HI (73.7 percent). Counties with a population of at least 1 million, where rents consume the highest percentage of average wages, include Kings County (Brooklyn), NY (65.3 percent); Orange County, CA (outside Los Angeles) (64.7 percent); San Diego County, CA (59.6 percent); Contra Costa County, CA (outside San Francisco) (58.4 percent) and Queens County, NY (57.4 percent). Most affordable rental markets in Tennessee, New York, Alabama, Ohio The most affordable markets for renting are Roane County, TN (west of Knoxville) (20.1 percent of average wages needed to rent); Steuben County, NY (south of Rochester) (22.2 percent); Madison County (Huntsville), AL (22.4 percent); Greene County, OH (outside Dayton) (23.0 percent) and Sangamon County (Springfield), IL (23.2 percent). Among counties with a population of 1 million or more, those most affordable for renting are Allegheny County (Pittsburgh), PA (24.3 percent); Cuyahoga County (Cleveland), OH (25.6 percent); Fulton County (Atlanta), GA (26.2 percent); Oakland County, MI (outside Detroit) (26.6 percent) and Wayne County (Detroit), MI (27.5 percent). Home prices rising faster than rents in 67 percent of markets Median home prices rose faster than average fair-market rents in 575 of the 855 counties analyzed in the report (67.3 percent), including Harris County (Houston), TX; San Bernardino County, CA (outside Los Angeles); Bexar County (San Antonio), TX; Wayne County (Detroit), MI and Philadelphia County, PA. Average rents rose faster than median prices in 280 counties (32.7 percent), including Los Angeles County, CA; Cook County (Chicago), IL; Maricopa County (Phoenix), AZ; San Diego County, CA and Orange County, CA (outside Los Angeles). Home prices rising faster than wages in 66 percent of markets Median home prices rose faster than average weekly wages in 567 of the 855 counties analyzed in the report (66.3 percent), including Harris County (Houston), TX; Maricopa County (Phoenix), AZ; Miami-Dade County, FL; Riverside County, CA (outside Los Angeles) and Queens County, NY. Average weekly wages rose faster than median home prices in 288 counties (33.7 percent), including Los Angeles County, CA; Cook County (Chicago), IL; San Diego County, CA; Orange County, CA (outside Los Angeles) and Kings County (Brooklyn), NY. Wage growth outpacing rent growth in 57 percent of markets Wages rose faster than average fair market rents in 484, or 56.6 percent, of the counties analyzed in the report including Harris County (Houston), TX; San Bernardino County, CA (outside Los Angeles); Bexar County (San Antonio), TX; Wayne County (Detroit), MI and Philadelphia County, PA. Average rents rose faster than average wages in 371, or 43.4 percent, of counties in the report, including Los Angeles County, CA; Cook County (Chicago), IL; Maricopa County (Phoenix), AZ; San Diego County, CA and Orange County, CA (outside Los Angeles). Methodology For this report, ATTOM Data Solutions looked at 50th percentile average rental data for three-bedroom properties in 2020 from the U.S. Department of Housing and Urban Development, along with Q2 2019 average weekly wage data from the Bureau of Labor Statistics (most recent available) and January-November (YTD) 2019 home price data from ATTOM Data Solutions publicly recorded sales deed data in 855 counties nationwide. Rental affordability is average fair market rent for a three-bedroom property as a percentage of the average monthly wage (based on average weekly wages). Home buying affordability is the monthly house payment for a median-priced home (based on a 3 percent down payment plus mortgage payment, property tax, homeowner's insurance and private mortgage insurance) as a percentage of the average monthly wage. About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, APIs, 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).
MORE >
Fourth Quarter Good Time to Buy and Sell Home, Realtor Survey Says
MORE >
Home Purchase Sentiment Jumps
Fannie Mae's 2019 Home Purchase Sentiment Index (HPSI) increased in November to its highest level since March, 2018. And it's also likely that mortgage rates will remain low next year, according to experts. Also in 2020, Fannie Mae and Freddie Mac will let mortgage borrowers nationwide take out home loans over $500,000. This will be the fourth consecutive year that the conforming loan limit has increased. Whether or not this is good for the affordability crisis in many markets is discussed on realtor.com. Home Purchase Sentiment Index Here are some of the conclusions from the Fannie Mae report: "Looking ahead, we continue to expect a steady but modest pace of growth in home purchase activity," said Doug Duncan, Senior Vice President and Chief Economist, Fannie Mae. Findings Summary Good/Bad Time to Buy: The percentage of Americans who say it is a good time to buy increased this month from 57% to 61%, while the percentage who say it is a bad time to buy decreased from 36% to 29%. As a result, the net share of Americans who say it is a good time to buy increased 11 percentage points and is the highest it's been since March 2018. Good/Bad Time to Sell: The percentage of Americans who say it is a good time to sell decreased this month from 67% to 66%, while the percentage who say it's a bad time to sell remained flat at 26%. As a result, the net share of those who say it is a good time to sell fell 1 percentage point. Home Price Expectations: The percentage of Americans who say home prices will go up in the next 12 months increased this month from 41% to 44%, while the percentage who said home prices will go down decreased from 14% to 10%. The share who think home prices will stay the same increased from 39% to 40%. As a result, the net share of Americans who say home prices will go up increased 7 percentage points. Mortgage Rate Expectations: The percentage of Americans who say mortgage rates will go down in the next 12 months decreased this month from 12% to 11%, while the percentage who say mortgage rates will go up increased from 37% to 39%. The share who think mortgage rates will stay the same decreased from 44% to 42%. The net share of Americans who say mortgage rates will go down over the next 12 months fell 3 percentage points. Job Concerns: The percentage of Americans who say they are not concerned about losing their job in the next 12 months remained flat at 86%, while the percentage who say they are concerned also remained flat at 14%. As a result, the net share of Americans who say they are not concerned about losing their job did not change. Household Income: The percentage of Americans who say their household income is significantly higher than it was 12 months ago remained the same at 28%, while the percentage who say their household is significantly lower decreased from 12% to 10%. The percentage who say their household income is about the same increased from 59% to 60%. As a result, the net share of those who say their household income is significantly higher than it was 12 months ago increased 2 percentage points. To view the original post, visit the iHomeFinder blog.
MORE >
CoreLogic Reports U.S. Overall Delinquency Rate Lowest for a September in at Least 20 Years
MORE >
Redfin Reveals the Housing Markets that Changed the Most This Decade
Fort Lauderdale, Las Vegas, and San Francisco are among the U.S. metros that experienced the most dramatic housing shifts since 2010 SEATTLE, Dec. 20, 2019 --  Fort Lauderdale, Las Vegas, San Francisco, Salt Lake City, and Nassau County, NY experienced the most dramatic housing shifts since 2010, according to a new report from Redfin, the technology-powered real estate brokerage. "The housing market is ending the decade in a vastly different place than it began," said Redfin chief economist Daryl Fairweather. "In 2010, the market was in the middle of its greatest downturn in history: Home values were plummeting and the share of mortgages in delinquency was at an all time high. Heading into 2020, home values have recovered along with the economy, and now many parts of the country are grappling instead with new challenges like high home prices and a lack of homes for sale." Highest percent increase in home prices: Fort Lauderdale Florida was one of the epicenters of the foreclosure crisis and experienced some of the biggest declines in home values leading up to 2010. But as the sunshine state recovered from the housing crash, home values also increased, leading to the nation's largest post-crisis recovery. In Fort Lauderdale, the median home price increased 161% from $106,000 at the beginning of 2010 to $278,000 at the end of 2019. The median home price has more than doubled this decade in Orlando (+127%) and Miami (+106%) as well. Biggest contrast between increase in home prices and decline in incomes: Las Vegas Las Vegas, where incomes fell dramatically during the great recession and haven't yet fully recovered, saw the biggest divergence between home prices and incomes. In Las Vegas, the median home price increased at an average annual rate of 14.1% over the decade, while the median income declined at an average annual rate of 0.4%. As incomes fell, residents could no longer afford to own a home, which caused a simultaneous decline in the homeownership rate from 59% in 2010 to a low of 52% in 2016, followed by a slight increase to 53% as of 2017. Even though the homeownership rate remains low, demand from investors looking to rent out or flip homes has supported high home price growth. Largest dollar value jump in home prices: San Francisco Eight out of the nation's top 10 metros for home price increases in dollar value were in California. In San Francisco, the median home price increased $711,000—from $698,000 at the beginning of 2010 to $1.4 million by the end of 2019. Two main factors led to San Francisco's large price gains: a booming job market and a lack of homes for sale. By 2015, the unemployment rate in San Francisco was just 3.7% compared to 5.3% for the nation. By October, 2019, the city's unemployment rate was 1.9%. At the same time, there are not enough housing units for all the workers in San Francisco, a reality true across California where home prices have risen dramatically in the last decade. Steepest drop in home supply: Salt Lake City Inventory declined by 77% in Salt Lake City over the course of the decade, due to the fact that Salt Lake City homeowners are staying in their homes longer than usual. The typical Salt Lake City homeowner had spent 23 years in their home in 2019, versus 15 years in 2010. The number of homes for sale declined this decade in 95% of the markets we analyzed. The decline in homes for sale has made homebuying much more competitive than it was at the beginning of the decade. Currently, one in three Salt Lake City homes sell for above list price, compared to less than one in four homes at the start of the decade. Greatest decline in days on market: Long Island's Nassau County In Nassau County, the median time it takes to sell a home dropped by about four months—124 days—over the course of the decade. At the beginning of 2010 it typically took 180 days to sell a home; it now takes just 56 days. "During the housing crash there were a lot of short sales in Long Island, which are very difficult to close. I don't see that at all anymore," said Redfin agent Peggy Papazaharias. "In the last several years, prices sky-rocketed in Manhattan, which pushed many homebuyers to consider Long Island, and now demand is very strong." To read the full report, including additional metro-level data on housing market changes, please visit: https://www.redfin.com/blog/housing-markets-that-changed-this-decade. About Redfin Redfin is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 90 major metro areas across the U.S. and Canada. The company has helped customers buy or sell homes worth more than $85 billion.
MORE >
Median Home Prices Still Unaffordable for Average U.S. Wage Earners in Q4 2019
MORE >
Could January be the New April for Home Shopping?
A new realtor.com analysis says "yes" in 20 large metro areas SANTA CLARA, Calif., Dec. 18, 2019 -- Historically, April launched the kickoff of the home shopping season as buyers would come out of their winter hibernation looking for their new home. However, the spring shopping season now starts in January for many of the nation's largest markets, according to new research released today by realtor.com. The analysis is based on average monthly views per listing on realtor.com® from 2015 to 2019. In 2015, the peak month for average views per listing on realtor.com® was April, while January lagged behind by a substantial 16 percent. In contrast, for 2019, the month of January fell 1 percent below February for most monthly views per listing on realtor.com®. And January surged to the top in 20 of the 100 largest metro areas, including New York, Los Angeles, Chicago, Dallas, Houston, Seattle, San Francisco, Atlanta, San Jose, Calif., and Denver. In 2018, that was true for just three of the top 100 metros. "As shoppers modify their strategies for navigating a housing market that has become more competitive due to rising prices and low inventory, the search for a home is beginning earlier and earlier," said realtor.com® Senior Economist George Ratiu. "With housing inventory across the U.S. expected to reach record lows in 2020, we expect to see this trend continue into the new year." As of November, the number of homes for sale across the country was down 9.5 percent year-over-year. Additionally, the inventory of entry-level homes priced below $200,000 shrunk by an astonishing 16.5 percent year-over-year. The shift to January's newfound popularity does not mean that the other prime spring months have become less competitive. Realtor.com® data shows that views per listing used to ramp up into spring, but now competition starts high in January and stays high. For example, in 2018, March, the most competitive month, had 21 percent more views per listing than the least competitive month, January. In 2019, that gap between most-and least-competitive months narrowed to a difference of just six percent. What used to be a lopsided bias for April is now a feverish search starting in January, staying consistently competitive across the first four months of the year as hopeful homebuyers look for just the right home. Locally, Seattle had the greatest spike in home shopping in January 2019, with views per property 32 percent higher than the next-highest month. McAllen-Edinburg-Mission, Texas; San Francisco; Atlanta; and San Jose, Calif. metros rounded out the top five markets where January was the most competitive month in 2019. Top Markets Where January was the Most Competitive Month in 2019 Methodology Views per listing are defined as the average monthly page views per property listed for sale on realtor.com®, cited here at the national and metro area levels. About realtor.com® Realtor.com®, The Home of Home Search, offers the most MLS-listed for-sale listings among national real estate portals, and access to information, tools and professional expertise that help people move confidently through every step of their home journey. Through its Opcity platform, realtor.com® uses data science and machine learning to connect consumers with a real estate professional based on their specific buying and selling needs. Realtor.com® pioneered the world of digital real estate 20 years ago, and today is a trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.
MORE >
Redfin Unveils the Most Bikeable U.S. Cities of 2020
MORE >
Expect Continued Economic Growth, Slower Real Estate Price Gains and Small Chance for Recession in 2020, According to Group of Top Economists
WASHINGTON (December 11, 2019) -- A group of top economists arrived at a consensus 2020 economic and real estate forecast today at the National Association of Realtors' first-ever Real Estate Forecast Summit. The economists who gathered at NAR's Washington, D.C. headquarters expect the U.S. economy to continue expanding next year while projecting real estate prices will rise and reiterating that a recession remains unlikely. These economists predicted a 29% probability of a recession in 2020 with forecasted Gross Domestic Product growth of 2.0% in 2020 and 1.9% in 2021. The group expects an annual unemployment rate of 3.7% next year with a small rise to 3.9% in 2021. When asked if the Federal Open Market Committee will change the federal funds rate in 2020, 69% of the economists said they expect no change, while 31% expect the committee will lower the rate next year. The average annual 30-year fixed mortgage rates of 3.8% and 4.0% are expected for 2020 and 2021, respectively. Annual median home prices are forecasted to increase by 3.6% in 2020 and by 3.5% in 2021. "Real estate is on firm ground with little chance of price declines," said NAR's Chief Economist Lawrence Yun. "However, in order for the market to be healthier, more supply is needed to assure home prices as well as rents do not consistently outgrow income gains." Apartment rents are expected to rise 3.8% and 3.6%, respectively, in 2020 and 2021. According to the group of economists, annual commercial real estate prices will climb 3.6% in 2020 and 3.4% in 2021. "Residential and commercial real estate investment remains attractive as we approach the start of a new decade," said NAR President Vince Malta, broker at Malta & Co., Inc., in San Francisco, CA. "Increased home building can serve as a stimulator for the overall economy, and we strongly encourage more homes to be built as buyer demand remains strong." The 2019 NAR Real Estate Forecast Summit consensus forecasts are compiled as averages of the responses of 14 leading economists who participated during the summit. The survey was conducted from December 2-5, 2019. The National Association of Realtors® is America's largest trade association, representing more than 1.4 million members involved in all aspects of the residential and commercial real estate industries.
MORE >
NAR Identifies 10 Markets Expected to Outperform Over the Next Three to Five Years
MORE >
Brian Buffini Reveals 2020 Real Estate Market Outlook
Real estate industry disruption starts with unhappy customers, not technology CARLSBAD, Calif., Dec. 11 2019 -- Real estate industry legend Brian Buffini has revealed that exceptional skills, service and training are must-have qualities for real estate agents looking to succeed in a market ripe with customer dissatisfaction. In his free broadcast, Brian Buffini's Bold Predictions, Buffini used his more than 30 years of real estate experience to outline the state of the market, industry and agent in 2020, ultimately explaining why it is critical for real estate agents to step up their service game in the new year. "Disruption starts with unhappy customers, not technology," Brian Buffini, Founder and Chairman of Buffini & Company, says. "The business must shift its focus back to prioritizing customer experience in 2020. To achieve this, agents will need to boost their skills, become total pros and provide superior service." Buffini also predicts a solid economy moving into 2020, without an imminent recession threat. He forecasts the real estate industry will see an expansion of teams, but slowing profits for local brokerages. Again, he attributes these changes to customers who are unhappy with their service and overwhelmed by conflicting media narratives on where the economy is going. To remedy this, Buffini advises real estate agents to talk with clients to separate market facts from feelings. Each year, Chairman of Buffini & Company, Brian Buffini, reveals his top predictions for the national market and the real estate industry as a whole in a broadcast aired exclusively online. His track record has been remarkable; among other events, he predicted the Great Recession, the impending automation of the industry, and the inventory shortage. 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 and training programs 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. Learn more at buffiniandcompany.com.
MORE >
Curious Case: A U.S. Housing Market No One Saw Coming
MORE >
Home Sellers Will Remain on the Sidelines in 2020
Realtor.com forecast predicts inventory to evaporate making it more challenging for buyers to find a home despite attractive interest rates SANTA CLARA, Calif., Dec. 4, 2019 -- At a time when millennials are reaching key life milestones, the U.S. housing market will continue to slow in 2020 as inventory reaches historic lows and economic uncertainty prompts consumers to pull back on their spending, according to the realtor.com 2020 housing forecast released today. The forecast predicts that despite some relief from new construction, moderating home prices and relatively low interest rates, first-time buyers will continue to struggle with affordability. Sellers will contend with flattening price growth and slowing activity. These trends will drive existing home sales down 1.8 percent to 5.23 million. Highlights of the realtor.com® 2020 forecast include: Home prices will flatten, increasing just 0.8 percent nationwide. Prices will decline in more than 25 percent of the 100 largest metros, including Chicago, Dallas, Las Vegas, Miami and San Francisco. Inventory shortages will prevail and could reach historic lows, especially the entry-level category. Mortgage rates will remain reasonable, averaging 3.85 percent throughout the year. Affordability will remain a key driver for buyers, benefitting mid-sized markets. Millennials – with the oldest members approaching 40 and the biggest cohort turning 30 in 2020 – will surpass 50 percent of all home purchase mortgages. With little incentive to sell, baby boomers will continue to hold onto their homes, while Gen X is more likely to upsize, freeing up some entry level inventory. "Housing remains a solid foundation for the U.S. economy going into 2020," said George Ratiu, senior economist at realtor.com®. "Although economic output is expected to soften – influenced by clouds of uncertainty in the global outlook, business investment and trade – real estate fundamentals remain entangled in a lattice of continuing demand, tight supply and disciplined financial underwriting. Accordingly, 2020 will prove to be the most challenging year for buyers, not because of what they can afford, but rather what they can find." What will 2020 be like for buyers? Buying a home in 2020 will be a mixed bag. It will offer more opportunities for some as the supply of new homes begins to offset inventory pressure that has built over the last four years, interest rates remain reasonable and home prices flatten. The broad price moderation will continue to make mid-sized markets in the Midwest and South attractive. However, the construction of new homes in 2019 was largely isolated to upper-tier of housing and that is unlikely to ease conditions for first-time homebuyers. Additionally, while qualifying for a mortgage could be easier on paper due to stabilizing prices and a still relatively low rate environment, the total number of homes available for sale will hit a record low. What will 2020 be like for sellers? Sellers in 2020 will grapple with dormant price growth and slowing activity, which will require a greater level of patience and a thoughtful approach to pricing. Entry-level home sellers can expect steady competition for their homes, which will keep prices firm. Upper-tier housing is expected to be softer as properties will likely sit on the market longer, requiring greater incentives to close deals. As the market moves toward a more balanced scenario, sellers who adjust to local market conditions can expect to benefit from continuing demand. Forecasted key 2020 housing trends Millennials expand their domination of the market – Demand from those born between 1981-1997 will reach new highs in 2020 with millennials accounting for more than 50 percent of all mortgages by the spring. Several factors are at play here. In 2020, the largest cohort of millennials – 4.8 million of them – will turn 30, a time when many purchase their first home, while the oldest members of the generation will reach 39, often a point when many look to move from the city to the suburbs for family-friendly amenities. The largest generation in history will consolidate their top spot in mortgage originations and effectively outnumber Gen X and baby boomers combined in their share of purchases. Growing economic uncertainty – Although a recession isn't likely in 2020, the economy will show signs of softening. The pullback in business spending is expected to lead to a slowdown in consumer spending. Housing remains the largest single consumer expense, making home-buying activity a major contributor to the U.S. economy and a bellwether for economic expectations. Rising uncertainty about the economic outlook will dampen consumer enthusiasm about spending, leading to a decline in sales and an increase in homeowners' tenure. Low inventory – Despite increases in new construction, next year will once again fail to bring a solution to the inventory shortage that has plagued the housing market since 2015. Inventory could reach a historic low as a steady flow of demand, especially for entry level homes, and declining seller sentiment combine to keep a lid on sales transactions. With housing prices expected to stabilize and concern over economic uncertainty, there will be little incentive for baby boomers to sell in the coming year. The younger Gen X is more likely to upsize and free up entry level homes, but not fast enough to ease inventory woes. Affordability brings secondary markets to the center stage – As buyers are priced out of suburban environments near large metropolitan areas, they will begin searching for family-friendly lifestyles in other metros or across state lines. Cities in Arizona, Nevada and Texas will continue to benefit from shoppers looking for more affordable alternatives to California. Meanwhile, home seekers from expensive Northeast markets will find the warmer options in the Carolinas, Georgia and Florida attractive. Midwest markets will become more attractive, as buyers will find the affordable housing and solid, diversified economies of Ohio, Indiana and Kansas compelling. Election will be 2020 wild card – Along with the presidential election, there will be candidates running for 35 of the 100 seats in the U.S. Senate, along with 435 seats in the House of Representatives. The 2020 elections will be closely watched by consumers and businesses for indications of potential changes. Although the outcome of the presidential election is not directly tied to the performance of the housing market, business optimism and investments, along with consumer confidence and spending do influence economic output, and can also influence housing activity. Looking at housing trends over the past three decades, the pace of sales, price and inventory are intertwined with economic performance – employment, wages, and interest rates. Realtor.com® 2020 Housing Market Forecast Sale and Price Forecast for 100 Largest Markets About realtor.com® Realtor.com®, The Home of Home Search℠, offers the most MLS-listed for-sale listings among national real estate portals, and access to information, tools and professional expertise that help people move confidently through every step of their home journey. Through its Opcity platform, realtor.com® uses data science and machine learning to connect consumers with a real estate professional based on their specific buying and selling needs. Realtor.com® pioneered the world of digital real estate 20 years ago, and today is a trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
MORE >
Redfin Predicts Homebuyers Will Have Fewer Options, Bidding Wars Will Rebound in 2020
MORE >
Home Prices Rise Annually Across Most Opportunity-Zone Redevelopment Areas
Median Prices Rise Year-Over-Year in Two-Thirds of Zones Targeted for Tax Breaks IRVINE, Calif. (November 21, 2019) -- ATTOM Data Solutions, curator of the nation's premier property database and first property data provider of Data-as-a-Service (DaaS), today released its second special report analyzing qualified Opportunity Zones established by Congress in the Tax Cuts and Jobs act of 2017 (see full methodology below). In this report, ATTOM looked at nearly 3,700 zones with sufficient sales data to analyze, which included home sales prices with at least five home sales in each quarter from 2005 through the third quarter of 2019. The report found that about half the zones saw median home prices rise more than the national increase of 8.3 percent from the third quarter of 2018 to the third quarter of 2019. The report also shows that 79 percent of the zones had median home prices in the third quarter of 2019 that were less than the national median of $270,000 – almost the same percentage as in the second quarter of 2019. Some 46 percent of the zones had median prices of less than $150,000, also roughly the same as in the prior quarter. "The nationwide home-price surge in the third quarter spread through so-called Opportunity Zones, much as it did the rest of the country," said Todd Teta, chief product officer with ATTOM Data Solutions. "Despite sitting in some of the nation's poorest areas, Opportunity Zones were hardly immune from a housing boom heading into its ninth year. That's encouraging news for people living in those communities as well as investors looking to take advantage of the Opportunity Zones program." High-level findings from the report include: Among the 3,658 Opportunity Zones with sufficient data to analyze, median prices rose in 48 percent of the zoned areas by more than the national rate of gain from the third quarter of 2018 to the third quarter of 2019. The national year-over-year increase was 8.3 percent. Among the 3,658 Opportunity Zones with sufficient data to analyze, California had the most Opportunity Zones, with 477, followed by Florida (332), Texas (293), Pennsylvania (176) and North Carolina (170). Of the tracts analyzed, 46 percent had a median price in the third quarter of 2019 of less than $150,000 and 17 percent ranged from $150,000 to $199,999. Another 16 percent ranged from $200,000 up to the national median of $270,000, 21 percent were more than $270,000. All percentages were similar to those in the second quarter of 2019. In Metropolitan Statistical Areas with sufficient sales data to analyze, 87 percent of Opportunity Zones had median third quarter sales prices that were less than the median values for the surrounding MSAs. Among those, 31 percent had median sales prices that were less than half the figure for the MSAs. At the same time, 13 percent of the zones had median sales prices that were equal to or above the median sales price of the broader MSAs. The Midwest continued to have the highest rate of Opportunity Zone tracts with a median home price of less than $150,000 (71 percent), followed by the South (56 percent), the Northeast (47 percent) and the West (12 percent). States with the highest percentage of census tracts meeting Opportunity Zone requirements include Wyoming (17 percent), Mississippi (15 percent), Alabama (13 percent), North Dakota (12 percent) and New Mexico (12 percent). Washington, DC, also is among the leaders (14 percent). Nationwide, 10 percent of all tracts qualify. Report methodology The ATTOM Data Solutions Opportunity Zones analysis is based on home sales price data derived from recorded sales deeds. Statistics for previous quarters are revised when each new report is issued as more deed data becomes available. ATTOM Data Solutions compared median home prices in tracts designated as Opportunity Zones by the Internal Revenue Service. Except where noted, tracts were used for the analysis if they had at least five sales in each quarter from 2005 through the third quarter of 2019. Median household income data for tracts and counties comes from surveys taken the U.S. Census Bureau (www.census.gov) from 2013 through 2017. The list of designated Qualified Opportunity Zones is located at U.S. Department of the Treasury. Regions are based on designations by the Census Bureau. Hawaii and Alaska, which the bureau designates as part of the Pacific region, were included in the West region for this report. About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, APIs, 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).
MORE >
Millennials Still Want Single-Family Homes, Even if it Means a Long Commute
MORE >
Realtor.com Study Finds Amazon Delivers High Home Prices
Dramatic inventory shortages, blistering pace of sales and soaring home prices continue one year after Amazon HQ2 announcement SANTA CLARA, Calif., Nov. 13, 2019 -- One year after Amazon selected Arlington, Va., as the site of its new HQ2, the impact on the housing market has been pronounced. Massive inventory shortages, sky-high price spikes and a blistering pace of sales are now the norm in the metro surrounding Amazon's second headquarters, propelling it to one of the nation's hottest housing markets, according to research by realtor.com. In contrast, New York City, which was initially chosen as one of the two markets for Amazon's headquarters, is now sitting at a 15 percent decline in home sales, year-over-year. At the time of the announcement, Manhattan saw a massive leap in home sales of 50 percent. Sales in Manhattan maintained strong double-digit growth until February, when Amazon decided to pull out of New York. At that point, sales growth immediately decelerated and then started declining. The median sale price in Manhattan currently sits at $1.04 million, down 15 percent year-over-year. "The 'Amazon effect' has branched out of its home base of Seattle and it has clearly stamped its fingerprint on the Northern Virginia housing market. The impact of the company's expansion in the suburbs of Washington, D.C. diverges along homeownership lines, with homeowners experiencing noticeable equity gains and buyers feeling the sting of higher prices," according to George Ratiu, senior economist at realtor.com®. "Following Amazon's initial announcement that it was scouting cities for a second headquarters, we knew the winner would see a considerable jump in demand for housing, especially from investors and speculators looking to cash in on increased demand. Looking back a year after the announcement, we can see how dramatic the move has been in the market." Immediately following last year's announcement, home sales in Arlington jumped 21 percent year-over-year as investors swarmed in on the area. Initially, the area saw a substantial 17 percent increase in median listing price, but it has only gone up from there. The median listing price in Arlington County reached $863,000 in October 2019, up 33 percent year-over-year. In part, the massive price appreciation is due to the lack of inventory and swelling demand for housing in the area. As of October 2019, active listings in Arlington County were down 49 percent year-over-year. Without inventory available to meet current demand, buyers are extending their home search farther out. In Northern Virginia, which is made up of 14 counties, active listings are down 26 percent year-over-year. The lack of available homes has all but assured that any home hitting the market is bought almost instantly. Half of all homes in Arlington are selling in under 28 days -- nine days faster than a year ago and 38 days faster than the national median days on market. The market conditions which have catapulted Northern Virginia into one of the nation's most competitive housing markets can be traced back to two story lines, according to Ratiu. "First, the nationwide competition drew so much attention, it caused a massive shortage of homes as investors descended on the area, buying homes as quickly as they could. Second, homeowners and investors have been holding out on selling, anticipating that prices will only continue to increase further, which has compounded the area's inventory shortage, and further increased home prices, testing the area's limits for what buyers are willing to pay," he said. About realtor.com® Realtor.com®, The Home of Home Search, offers the most MLS-listed for-sale listings among national real estate portals, and access to information, tools and professional expertise that help people move confidently through every step of their home journey. Through its Opcity platform, realtor.com® uses data science and machine learning to connect consumers with a real estate professional based on their specific buying and selling needs. Realtor.com® pioneered the world of digital real estate 20 years ago, and today is a trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.
MORE >
Homeowners are Staying in Their Homes Five Years Longer Than in 2010
MORE >
U.S. Housing Inventory Tightens as Competition Heats Up
Interest rates are making it cheaper to buy a home, if you can find one SANTA CLARA, Calif., Oct. 31, 2019 -- The U.S. housing market showed signs of becoming increasingly competitive as inventory continued to tighten with a drop of nearly 98,000 listings, compared to this time last year, according to realtor.com's October 2019 housing trend report* released today. At the same time, the inventory shortage compounded as homes flew off the market at a faster pace than last year, making it harder for would-be buyers to enter the market despite favorable interest rates. "Owning a home continues to be a priority for buyers, as we head into the cooler months of the year. Driven by the tailwind of sub-4 percent mortgage rates, the steady demand for housing is drying market inventory at an accelerating pace," according to realtor.com® Senior Economist George Ratiu. "With dwindling supply, prices maintain their upward pressure, deepening the affordability challenges for first-time buyers." Spurred by low mortgage rates, the uptick in demand this past spring gobbled up available inventory leaving the U.S. market depleted. Nationally, inventory decreased 6.9 percent in October, an acceleration from September's 4.1 percent drop. This decline amounted to a loss of 98,000 listings, compared to a year ago. Additionally, the volume of new listings hitting the market has decreased by 3.4 percent since last year. Entry-level inventory saw the largest declines, with the number of homes priced under $200,000 dropping by 15.2 percent year-over-year. Meanwhile, mid-tier inventory priced between $200,000 and $750,000 dropped by 4.3 percent year-over-year. The inventory of the nation's most expensive homes saw a slight increase as the inventory of homes selling for more than $750,000 increased by 1.3 percent year-over-year. In the nation's 50 largest metros, inventory declined by 5.3 percent year-over-year. The metros which saw the biggest drop in inventory were San Diego-Carlsbad, Calif. (-20.1 percent), Rochester, N.Y. (-20.1 percent), and Phoenix-Mesa-Scottsdale, Ariz. (-20.0 percent). In addition to having less inventory compared to last year, homes also sold more quickly. Nationally, homes sold in 66 days in October, three days faster than last year. Raleigh, N.C. (60 days); Hartford-West Hartford-East Hartford, Conn. (64 days); and Birmingham-Hoover, Ala. (67 days) saw the largest decreases in days on market with properties spending 11, 9 and 9 fewer days on the market than last year, respectively. On the flip-side, properties in Los Angeles-Long Beach, Anaheim, Calif. (55 days); San Jose-Sunnyvale-Santa Clara, Calif. (42 days), and Las Vegas-Henderson-Paradise, Nev. (49 days); sold 14, 11, and 11 days more slowly, respectively. The U.S. median listing price continues to increase due to solid demand, growing by 4.3 percent year-over-year, to $312,000 in October. Of the 50 largest U.S. metros, 43 saw year-over-year gains in median listing prices. Birmingham-Hoover, Ala. (+15.4 percent); Los Angeles-Long Beach-Anaheim, Calif. (+13.9 percent); and Phoenix-Mesa-Scottsdale, Ariz. (+13.0 percent); posted the highest year-over-year median list price growth in October. The steepest declines in median list price were seen in Minneapolis-St. Paul-Bloomington, Minn.-Wis. (-2.9 percent), Louisville/Jefferson County, Ky.-Ind. (-2.9 percent) and Houston-The Woodlands-Sugar Land, Texas (-1.6 percent). *Editor's Note With the release of its October 2019 housing trends report, realtor.com® incorporated a new and improved methodology for capturing and reporting housing inventory trends and metrics. The new methodology uses the latest and most accurate data mapping of listing statuses to yield a cleaner and more consistent measurement of active listings at both the national and local level. The new methodology also allows realtor.com® to achieve more consistency and stability in measurements across markets and in each market over time. As a result of these changes, the data released today will not be directly comparable with previous releases and realtor.com® economics blog posts. However, future data releases, including historical data, will consistently apply the new methodology. About realtor.com® Realtor.com®, The Home of Home Search, offers the most MLS-listed for-sale listings among national real estate portals, and access to information, tools and professional expertise that help people move confidently through every step of their home journey. Through its Opcity platform, realtor.com® uses data science and machine learning to connect consumers with a real estate professional based on their specific buying and selling needs. Realtor.com® pioneered the world of digital real estate 20 years ago, and today is a trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
MORE >
Trick or Treat: Nearly 60 Percent of People Who Have Lived in a Haunted House Said They Found Out after Moving In
MORE >
Migration Trends Reach Record High as 26% of Home Searchers Look to Change Metros
Boston tops list of U.S. migration destinations ahead of more affordable inland metros SEATTLE, Oct. 18, 2019 -- Twenty-six percent of home searchers looked to move to another metro area in the third quarter of 2019, up from 25 percent the year before, according to a new report from Redfin, the technology-powered real estate brokerage. This is a new all-time high for the national share of home-searchers looking to relocate, likely driven by those leaving expensive metros in search of more affordable homes. The latest migration analysis is based on a sample of more than 1 million Redfin.com users who searched for homes across 87 metro areas from July through September. Moving In — Metros with the Highest Net Inflow of Redfin Users After two quarters at the top of our list of metro areas with the highest net inflow of Redfin users, Phoenix fell to number three in the rankings in the third quarter, passed by Boston at number one and Sacramento at number two. A net inflow means more people are looking to move in than leave, while a net outflow means there are more people looking to leave than people looking to move in. Seventeen percent of homebuyers searching in the Boston metro area were looking from other metro areas in the third quarter, up from both a year earlier (12.0%) and the second quarter (14.1%). New York continues to be the top origin city for people looking to move to Boston, and Boston is the top destination for people looking to leave New York. "There is a sense here in New York that the sky has been falling for our housing market all year," said Redfin New York market manager Nick Boniakowski. "People fleeing NYC aren't looking for a rural life, they are fleeing the high costs. Boston presents a slightly more accessible cost of living, while still providing urban quality of life that many desire today. Boston is appealing because it's close and there are similar employment opportunities." Boston's rise to the top of the migration list is unusual, since most of the top destinations in recent years have been more affordable metro areas. However, relative to New York City, Boston's lower sales taxes, income taxes, and property taxes are likely a big factor driving people to make the move between the two cities. Six of the top ten migration destinations have median prices below the national median, and only San Diego has a higher median price than Boston. The second quarter was the first time since Redfin began tracking migration data that Boston has been in the top 10 migration destinations. It debuted in the second quarter at number nine on the list before shooting all the way up to number one in the third quarter. Most of the interest in Boston continues to come from New York. Boston's lower sales, income, and property taxes are likely a big factor driving people to move there from New York. Moving Out — Metros with the Highest Net Outflow of Redfin Users The list of metros people most-often looked to leave was once again topped by New York, San Francisco, Los Angeles and Washington, D.C. in the third quarter. Net outflow is defined as the number of people looking to leave the metro minus the number of people looking to move to the metro. "Homebuyers are leaving expensive metros for affordable metros and as a result there are fewer and fewer homes for sale in more affordable parts of the country," said Redfin chief economist Daryl Fairweather. "In San Francisco, for example, inventory has been rising because there aren't many San Franciscans who can afford the high prices. San Franciscans are moving to Sacramento where homes are much more affordable, and that, combined with a lack of new listings, has caused inventory to decline in Sacramento." To read the full report, including additional data and an interactive migration map, please visit: https://www.redfin.com/blog/q3-2019-housing-migration-report. About Redfin Redfin is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 85 major metro areas across the U.S. and Canada. The company has closed more than $85 billion in home sales.
MORE >
CoreLogic Releases Most Recent HPI Forecast Validation Report
MORE >
I Owe U: Student Debt Total Reaches $1.5 Trillion, Nearly Doubles U.S. Housing Market
The average student loan borrower owes more than the typical down payment for a home; Millennial debt totals $498 billion SANTA CLARA, Calif., Oct. 15, 2019 -- Realtor.com, The Home of Home Search, today released new data that found total student debt could buy every U.S. house on the market 1.9 times over. With the rising costs of education, students are borrowing more and more money, which has led to delayed homeownership as the average student loan borrower owes $34,500 -- $8,500 more than the typical down payment off $26,000. "Student debt has ballooned to an all-time high as the price of education continues to outpace wage growth, and this is holding back many potential buyers from being able to purchase a home," according to realtor.com®'s Senior Economist, George Ratiu. "Student debt is already impacting borrowers' ability to buy a home and education debt is expected to hamper consumers' financial decisions for many years down the road." Students are taking on more debt to cover their expenses than ever before, according to the Department of Education. This is in part due to the fact that wage growth has been stagnant in comparison to the rapid growth in cost of higher education. The typical tuition at a public university has grown at four times the rate of the average wage since 1986, and private university tuition has grown at seven times the rate of the average wage over the same time. Nationally, the median sale price of a U.S. home is $260,000, according to realtor.com®. With a typical down payment of 10 percent that would come out to $26,000, which is $8,500 less than the average student debt of $34,500. Additionally, the total value of U.S. homes on the market is $780 billion. That is 1.9 times less than the total outstanding student debt of $1.5 trillion shouldered by 42.8 million borrowers. At 15.1 million strong, millennials make up 34 percent of all student borrowers. The generation's total debt has accumulated to $498 billion -- over half the value of all U.S. homes for sale. Millennials have an average balance of $33,000 per borrower, which is $7,000 more than the typical down payment on the median U.S. home. In comparison, the median down payment for millennials is $11,400, according to realtor.com. "The important implication of rising debt is that young generations are delaying major life decisions," added Ratiu. On the real estate front, the affordability crisis in major cities is driving young families to more affordable Midwestern and Southern markets, where savings for a down payment stretch much further and can turn owning a home from a future dream into today's reality." According to a recent NAR report, 26 percent of millennials cite student loans as the primary barrier to saving up for a down payment. Additionally, 61 percent of those millennials say their student loans have delayed their home purchase. On a state level, the state with the greatest outstanding loan balance is California, with $116 billion in student debt. Meanwhile, Washington, D.C. has the largest average balance per borrower at $52,581. Ohio has the most affordable down payment, compared with educational debt load, where the average down payment on a median priced home in Ohio is 53 percent of the average student loan balance. Ohio is followed by Alabama, Michigan, Arkansas, and Oklahoma. In the short term, a high down payment to student debt ratio will delay many buyers' ability to enter the market, while reducing access to available inventory. National Breakdown - Down Payment vs. Debt State Breakdown - Down Payment vs. Debt Methodology Federal student loan debt data taken from U.S. Department of Education, Q2 2019. Home sale prices taken from realtor.com home sales database, July 2019. Total market value derived from realtor.com residential listings database, September 2019. Millennial median down payment is based on a realtor.com analysis of a sample of residential mortgage loan originations from Optimal Blue. About realtor.com® Realtor.com®, The Home of Home Search, offers the most MLS-listed for-sale listings among national real estate portals, and access to information, tools and professional expertise that help people move confidently through every step of their home journey. Through its Opcity platform, realtor.com® uses data science and machine learning to connect consumers with a real estate professional based on their specific buying and selling needs. Realtor.com® pioneered the world of digital real estate 20 years ago, and today is a trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
MORE >
Locations Close to Public Transit Boost Residential, Commercial Real Estate Values
MORE >
Redfin and LinkedIn Reveal the 5 Best Emerging Tech Hubs for Software Engineers to Buy a Home
Charlotte and Buffalo boast 4% job growth for engineers, who need to spend less than 20% of their income on housingSEATTLE, Oct. 10, 2019 --  Charlotte, North Carolina and Buffalo, New York are among the best metro areas for software engineers to buy a home, according to a new analysis from Redfin, the technology-powered real estate brokerage, and LinkedIn, the employment-oriented social media platform. Both metros saw 4.1 percent year-over-year job growth in June for people in the field, and the typical software engineer would only need to spend 18.9 percent and 13.3 percent of their annual income, respectively, on housing. In comparison, the typical software engineer in San Francisco would need to spend 42.8 percent of their annual salary to afford a median-priced home. The two metros are more affordable options than tech hubs like San Francisco and Silicon Valley, where despite generous salaries and job growth of roughly 3.5 percent year-over-year, sky-high housing costs make homeownership difficult for typical software engineers. The typical home in the San Francisco metro sold for more than $1.4 million in July, out of reach for someone earning $186,300, the median income for a software engineer in the Bay Area. "Because homeownership in expensive places like San Francisco is no longer a realistic consideration even for many people in high-paying fields, smaller inland cities are becoming increasingly attractive to young, educated people looking to build a career and live comfortably," said Redfin chief economist Daryl Fairweather. "Grand Rapids and Columbus don't offer as many job opportunities or salaries as high as you'd find in San Francisco, but because housing and other costs are so much lower, skilled professionals can achieve a higher quality of life. Tech companies are following the talent by opening offices or offering the option for employees to work remotely—which is contributing to growth in job opportunities for people seeking affordable housing." Redfin worked with LinkedIn to curate a list of places with emerging tech scenes. LinkedIn provided data on job growth and median total compensation. To determine whether a metro is affordable on a typical software engineer's income for that area, Redfin used the rule that housing is affordable when it costs less than 30 percent of gross income. Based on those parameters, software engineers may want to consider a move to Charlotte, North Carolina or Buffalo, New York rather than Silicon Valley. Some other places to consider are Grand Rapids, Michigan, Colorado Springs and Columbus, Ohio, areas with 3-percent-plus job growth where the typical software engineer would need to spend 20 percent or less of their income on housing. Seattle, where home prices have more than doubled over the last seven years partly due to its growth as a tech hub, is still relatively affordable for people in the field. The typical Seattle software engineer would need to spend 20 percent of their earnings to buy a home in the metro, comparable to the share in Colorado Springs. To read the full report, including Redfin agent insights on what makes each metro an attractive place for software engineers to live and a list of LinkedIn job openings in each area, please visit: https://www.redfin.com/blog/most-affordable-places-for-software-engineers. About Redfin Redfin is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 85 major metro areas across the U.S. and Canada. The company has closed more than $85 billion in home sales.
MORE >
Rising Financial Wealth Boosts Demand for Vacation Homes
MORE >
Housing Trends Foreshadow Housing Shortage Ahead
Low mortgage rates shrink entry-level and mid-tier inventory levels in September 2019 SANTA CLARA, Calif., Oct. 8, 2019 -- Nearly two years after U.S. housing inventory hit its lowest levels in recorded history, the market is showing signs it may be headed for another shortage, according to realtor.com's September 2019 housing trend report released today. Data show increased demand from lower mortgage rates prompted a 10 percent year-over-year decrease in available homes under $200,000 and halted 18 months of inventory gains in the mid-market last month. National inventory of homes for sale continued to decline in September, posting a 2.5 percent decrease over this time last year, and a faster rate of decline compared to August's 1.8 percent decrease. Driven by strong demand and short supply, entry-level homes priced below $200,000 have been steadily decreasing since May of 2014, which continued in September with a yearly decline of 9.8 percent. After 18 months of solid inventory growth, mid-market homes priced between $200,000 and $750,000 -- which make up the largest segment of inventory -- flatlined in September with 0 percent growth and are poised for their first decline next month. "Buyers looking for their next home have faced the headwinds of tight inventory and a competitive market this year. While lower mortgage rates and the arrival of fall promised a reprieve, conditions continue to tighten as demand remains strong. September inventory trends, especially in the mid-market, may be the canary in the coal mine that we could be headed for even lower levels of inventory in early 2020," according to George Ratiu, senior economist for realtor.com®. Finding an affordable home has been a challenge for buyers in recent years, but mid-market inventory in particular has seen some relief in the last 18 months. This month's data shows that recovery has halted, which should translate into increased competition for move-up buyers, not just first-time buyers. "The mid-tier of housing represents nearly 60 percent of homes for sale on the market, making it a solid indicator of how tight inventory levels are in the U.S. After more than a year and a half of solid growth in this segment, we're seeing inventory levels stall out and flat-line. If, or better yet, when inventory in this segment begins to take a downturn, the vast majority of homebuyers are going to feel its effects as their options rapidly dwindle," said Ratiu. Homes listed over $750,000 continued to grow by 4.7 percent year-over-year. However, if strong homebuying demand, fueled by lower interest rates, continues to persist into the fall, the inventory of homes in this upper-tier price range could also see declines by February of the coming year. Price gains continued to moderate this month. The median U.S. home list price was $305,000 in September, 4.3 percent higher than this time a year ago. However, price growth is slower than last September, when the median list price grew by 7.3 percent. The pace of sales also remained at near record highs.The median age of properties on realtor.com® in September reached 65 days. The typical property spent one more day on the market compared to last September and two more than last month, in keeping with the seasonal trend of buying activity slowing in the fall. About realtor.com® Realtor.com®, The Home of Home Search, offers the most MLS-listed for-sale listings among national real estate portals, and access to information, tools and professional expertise that help people move confidently through every step of their home journey. Through its Opcity platform, realtor.com® uses data science and machine learning to connect consumers with a real estate professional based on their specific buying and selling needs. Realtor.com® pioneered the world of digital real estate 20 years ago, and today is a trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
MORE >
People Who Bought Homes in 2012 Have Earned a Total of $203 Billion in Equity
MORE >
Median-Priced Homes Remain Unaffordable for Average Wage Earners in 74 Percent of U.S. Housing Markets
Rising Home Prices Outpacing Wages in 76 percent of U.S. Housing Markets; Home Prices Less Affordable Than Historic Average in 61 Percent of Local Markets IRVINE, Calif. - Sept. 26, 2019 -- ATTOM Data Solutions, curator of the nation's premier property database and first property data provider of Data-as-a-Service (DaaS), today released its Q3 2019 U.S. Home Affordability Report, which shows that median home prices in the third quarter of 2019 were not affordable for average wage earners in 371 of 498 U.S. counties analyzed in the report (74 percent). The largest populated counties where a median-priced home in the third quarter of 2019 was not affordable for average wage earners included Los Angeles County, CA; Cook County (Chicago), IL; Maricopa County (Phoenix), AZ; San Diego County, CA and Orange County, CA. Those same counties were in the top five in Q2 2019. The 127 counties (26 percent of the 498 counties analyzed in the report) where a median-priced home in the third quarter of 2019 was still affordable for average wage earners included Harris County (Houston), TX; Wayne County (Detroit), MI; Philadelphia County, PA; Cuyahoga County (Cleveland), OH; and Allegheny County (Pittsburgh), PA. The report determined affordability for average wage earners by calculating the amount of income needed to make monthly house payments — including mortgage, property taxes and insurance — on a median-priced home, assuming a 3 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). "Buying a home continues to be a rough road to navigate for the average wage earner in the United States. Prices are going up substantially faster than earnings in 2019 without any immediate end in sight, which continues to make home ownership difficult or impossible for a majority of single-income households and even for many families with two incomes," said Todd Teta, chief product officer with ATTOM Data Solutions. "If there is any silver lining to the picture, it's that mortgage rates have fallen back to historic lows. That's softening the blow of rising prices and actually making home ownership a bit more attainable in most areas of the country." Home price appreciation outpacing wage growth in 76 percent of markets Home price appreciation outpaced average weekly wage growth in 379 of the 498 counties analyzed in the report (76 percent), including Westchester County (New York), NY; Los Angeles County, CA; Suffolk County (Boston), MA; Arlington County (Washington), VA; and Monterey County (Salinas), CA. Average annualized wage growth outpaced home price appreciation in 119 of the 498 counties analyzed in the report (24 percent), including San Diego County, CA; Orange County (Los Angeles), CA; Miami-Dade County, FL; Kings County (Brooklyn), NY and Queens County, NY. 67 percent of markets require at least 30 percent of wages to buy a home Among the 498 counties analyzed in the report, 335 (67 percent) require at least 30 percent of their annualized weekly wages to buy a home in the third quarter of 2019. Those counties that required the greatest percent included Kings County (Brooklyn), NY (110.4 percent of annualized weekly wages needed to buy a home); Santa Cruz County, CA (105 percent); Marin County (San Francisco), CA (102.4 percent); Maui County, HI (87.9 percent); and Monterey County, CA (87.5 percent). A total of 163 of the 498 counties analyzed in the report (33 percent) required less than 30 percent of their annualized weekly wages to buy a home in the third quarter of 2019. Those counties that required the smallest percent included Calhoun County (Battle Creek), MI (14.4 percent of annualized weekly wages needed to buy a home); Wayne County (Detroit), MI (14.9 percent); Clayton County (Atlanta), GA (15.2 percent); Rock Island County (Davenport), IL (15.5 percent); and Montgomery County, AL (16.2 percent). 61 percent of markets less affordable than historic averages Among the 498 counties analyzed in the report, 304 (61 percent) were less affordable than their historic affordability averages in the third quarter of 2019, down from 70 percent of counties in the previous quarter and 73 percent of counties in the third quarter of 2018. Counties with a population greater than 1 million and that were less affordable than their historic affordability averages (indexes of less than 100 are considered less affordable compared to their historic averages) included Los Angeles County, CA (index of 96); Harris County (Houston), TX (89); Maricopa County (Phoenix), AZ (93); Orange County, CA (99); and Miami-Dade County, FL (98). Counties with the lowest affordability index were Delaware County (Philadelphia), PA (index of 58); Lackawanna County (Scranton), PA (68); Genesee County (Flint), MI (69); Delaware County (Muncie), IN (69); and Saginaw County, MI (72). 39 percent of markets more affordable than historic averages Among the 498 counties analyzed in the report, 194 (39 percent) were more affordable than their historic affordability averages in the third quarter of 2019, including Cook County (Chicago), IL; San Diego County, CA; Queens County, NY; King County (Seattle), WA; and Santa Clara County (San Jose), CA. Counties with the highest affordability index (indexes of more than 100 are considered more affordable compared to their historic averages) were Onslow County (Jacksonville), NC (130); Clark County (Louisville, KY), IN (128); Atlantic County (Atlantic City), NJ (127); Cumberland County (Vineland), NJ (126); Litchfield County (Torrington), CT (124); and Warren County (Stroudsburg), NJ (124). About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, APIs, real estate market trends, marketing lists, match & append and introducing the first property data deliver solution, a cloud-based data platform that streamlines data management – Data-as-a-Service (DaaS).
MORE >
CoreLogic Reports the Negative Equity Share Fell to 3.8% in the Second Quarter of 2019
MORE >
U.S. Home Flipping Returns Drop to Nearly Eight-Year Low in Q2 2019
Flipping Rate Declines After Spike In Q1 2019; Total Dollar Volume of Homes Flipped With Financing Reaches $8.4 billion – A 13-Year High IRVINE, Calif. – September 19, 2019 — ATTOM Data Solutions, curator of the nation's premier property database and first property data provider of Data-as-a-Service (DaaS), today released its Q2 2019 U.S. Home Flipping Report, which shows that 59,876 U.S. single family homes and condos were flipped in the second quarter of 2019, up 12.4 percent from the previous quarter, but down 5.2 percent from a year ago. The homes flipped in the second quarter represented 5.9 percent of all home sales during the quarter, down from a post-recession high of 7.2 percent in the previous quarter, but up from 5.4 percent a year ago. Homes flipped in Q2 2019 typically generated a gross profit of $62,700 (the difference between the median sale price and median paid by investors), up 2 percent from the previous quarter, but down 2 percent from a year ago. The typical gross flipping profit of $62,700 in Q2 2019 translated into a 39.9 percent return on investment compared to the original acquisition price, down from a 40.9 percent gross flipping ROI in Q1 2019 and from a margin of 44.4 percent in Q2 2018. Returns on home flips have dropped six quarters in a row and eight of the last 10, now standing at the lowest level since Q4 2011. "Home flipping keeps getting less and less profitable, which is another marker that the post-recession housing boom is softening or may be coming to an end," said Todd Teta, chief product officer at ATTOM Data Solutions. "Flipping houses is still a good business to be in and profits are healthy in most parts of the country. But push-and-pull forces in the housing market appear to be working less and less in investors' favor. That's leading to declining profits and a business that is nowhere near as good as it was a few years ago." Home flipping rate up from a year ago in 70 percent of local markets Despite the quarterly drop in home-flipping rates, 104 of 149 metropolitan statistical areas analyzed in the report (70 percent) posted a year-over-year increase in their rates in Q2 2019, including Raleigh, NC (up 72 percent); Charlotte, NC (up 54 percent); Atlanta, GA (up 46 percent); San Antonio, TX (up 46 percent) and Tucson, AZ (up 43 percent). Among the areas analyzed, the number of homes flipped reached new peaks in Q2 2019 in 10 MSAs. The largest were Charlotte, NC; San Antonio, TX; Pittsburgh, PA; Oklahoma City, OK and Raleigh, NC. Home flip lending volume up 31 percent from a year ago, to 13-year high The total dollar volume of financed home flip purchases in the second quarter of 2019 was $8.4 billion, up 31.3 percent from $6.4 billion in Q2 2018 to the highest level since Q3 2006. Flipped properties originally purchased by the investor with financing represented 41.0 percent of all home flips in Q2 2019, up slightly from 40.8 percent in the previous quarter, but down from 45.9 percent a year ago. Among 53 metropolitan statistical areas analyzed in the report with at least 1 million people, those with the highest percentage of Q2 2019 completed flips purchased with financing were Salt Lake City, UT (93.7 percent); Austin, TX (92.6 percent); Dallas-Fort Worth, TX (86.4 percent); San Antonio, TX (83.1 percent) and Kansas City, MO (82.2 percent). Investors are doubling their money in five markets Among the 149 metropolitan statistical areas analyzed in the report with at least 50 home flips completed in Q2 2019, five had gross ROI flipping profits of more than 100 percent: Scranton, PA (134 percent); Pittsburgh, PA (132.5 percent); Reading, PA (129.3 percent); Kingsport, TN (104.1 percent) and Augusta, GA (101.1 percent). Along with Pittsburgh, metro areas with a population of at least 1 million and the highest gross flipping ROI included Philadelphia, PA (99.9 percent); Cleveland, OH (98.3 percent); Baltimore, MD (91.5 percent) and Buffalo, NY (85.5 percent). Average home flipping returns continue to slip Homes flipped in the second quarter of 2019 were sold for a median price of $220,000, with a gross flipping profit of $62,700 above the median purchase price of $157,300. The Q2 2019 figure was up from a gross flipping profit of $61,500 in the previous quarter, but down from $64,000 in Q2 2018. Of those 149 markets with at least 50 or more flips and a population greater than 200,000 in the second quarter of 2019, those that saw the smallest gross flipping profits were Montgomery, AL (profit of $23,250); Raleigh, NC (profit of $24,000); Springfield, MO (profit of $27,025); San Antonio, TX (profit of $27,117) and Savannah, GA (profit of $28,900). Markets with the smallest rates of returns included Raleigh, NC (10.9 percent ROI); Las Vegas, NV (15.2 percent ROI); Phoenix, AZ (15.3 percent ROI); San Antonio, TX (15.6 percent ROI) and San Francisco, CA (17.1 percent ROI). Areas that saw their ROIs drop most in Q2 2019 included Raleigh, NC (down 72 percent from an ROI of 38.7 percent to 10.9 percent), Savannah, GA (down 56 percent, from an ROI of 47.3 percent to 20.6 percent); San Antonio, TX (down 53 percent, from an ROI of 33 percent to 15.6 percent); Springfield, MO (down 52 percent from an ROI of 42 percent to 20.2 percent) and Baton Rouge, LA (down 50 percent from 106.6 percent to 53.5 percent). Average time to flip nationwide is 184 days Homes flipped in Q2 2019 took an average of 184 days to complete the flip, up from an average of 180 days for homes flipped in Q1 2019 and up from an average of 183 days a year ago. Among the 149 metro areas analyzed in the report, those with the shortest average days to flip were Memphis, TN (137 days); Mobile, AL (147 days); Raleigh, NC (150 days); McAllen-Edinburg-Mission, TX (150 days) and Phoenix, AZ (151 days). Metro areas with the longest average days to flip were Crestview-Fort Walton Beach-Destin, FL (239 days); Naples, FL (229 days); Provo, Utah (219 days); Lansing, MI (217 days) and Gainesville, FL (214 days). Flipped homes sold to FHA buyers increases from previous quarter Of the 59,786 U.S. homes flipped in Q2 2019, 14.4 percent were sold by the flipper to a buyer using a loan backed by the Federal Housing Administration (FHA), up from 13.8 percent in the previous quarter and up from 12.8 percent a year ago. Among the 149 metro areas analyzed in the report, those with the highest percentage of Q2 2019 home flips sold to FHA buyers — typically first-time homebuyers — were Allentown, PA (29.6 percent); Port St. Lucie, FL (29.6 percent); Stockton, CA (28.5 percent); Fresno, CA (27.8 percent) and Lakeland, FL (27.7 percent). Seventeen counties had a home flipping rate of at least 12 percent Among 694 counties with at least 10 home flips in Q2 2019, there were 17 counties where home flips accounted for at least 12 percent of all home sales. Here are the top five: Macon County, TN in the Nashville metro area (15.8 percent); Chester County, TN in the Jackson metro area (14.7 percent); Prince George's County, MD in the Washington metro area (14.1 percent); Haralson County, GA in the Atlanta metro area (14.0 percent) and Duplin County, NC (13.9 percent). Sixteen zip codes had a home flipping rate of at least 25 percent Among 1,797 U.S. zip codes with at least 10 home flips in Q2 2019, there were 16 zip codes where home flips accounted for at least 25 percent of all home sales. Here are the top five: 85714 in Pima County, AZ (32.4 percent); 44110 in Cuyahoga County, OH (31.0 percent); 38109 Shelby County, TN (30.1 percent); 08083 in Camden County, NJ (28.6 percent) and 38118 in Shelby County, TN (28.0 percent). Report methodology ATTOM Data Solutions analyzed sales deed data for this report. A single-family home or condo flip was any arms-length transaction that occurred in the quarter where a previous arms-length transaction on the same property had occurred within the last 12 months. The average gross flipping profit is the difference between the purchase price and the flipped price (not including rehab costs and other expenses incurred, which flipping veterans estimate typically run between 20 percent and 33 percent of the property's after repair value). Gross flipping return on investment was calculated by dividing the gross flipping profit by the first sale (purchase) price. About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, APIs, real estate market trends, marketing lists, match & append and introducing the first property data deliver solution, a cloud-based data platform that streamlines data management – Data-as-a-Service (DaaS).
MORE >
The "Black Friday" of Homebuying is Almost Here
MORE >
CoreLogic Reports an 11.4% Year-Over-Year Decrease in Mortgage Fraud Risk in the Second Quarter of 2019
Risk index decreases for the first time since Q3 2016 as lower interest rates brought an influx of low-risk refinancesiBuyers represent a new wrinkle in the area of fraud detection CoreLogic, a leading global property information, analytics and data-enabled solutions provider, today released its latest Mortgage Fraud Report. The report shows an 11.4% year-over-year decrease in fraud risk at the end of the second quarter, as measured by the CoreLogic Mortgage Application Fraud Risk Index, which is the first decrease since the third quarter of 2016. The analysis found that during the second quarter of 2019, an estimated one in 123 mortgage applications, or 0.81% of all applications, contained indications of fraud, compared with the reported one in 109, or 0.91% in the second quarter of 2018. The CoreLogic Mortgage Fraud Report analyzes the collective level of loan application fraud risk experienced in the mortgage industry each quarter. CoreLogic develops the index based on residential mortgage loan applications processed by CoreLogic LoanSafe Fraud Manager™, a predictive scoring technology. The report includes detailed data for six fraud type indicators that complement the national index: identity, income, occupancy, property, transaction and undisclosed real estate debt. "The decrease in fraud risk mid-2019 appears temporary, based on unexpected interest rate drops and the resulting influx of low-risk refinance transactions," said Bridget Berg, principal of Fraud Solutions Strategy for CoreLogic. "The absolute number of risky loans has not decreased but are simply part of a larger mortgage market at this time." Report Highlights: New York, New Jersey and Florida remain the top three states for mortgage application fraud risk. For the first time since 2017, New Jersey outpaced Florida and moved into the second highest position. Eight of the top 10 riskiest states showed stable or decreasing risk over the past year. States with the greatest year-over-year risk growth include Idaho, Alabama, Mississippi, New York and Delaware. States with the largest decreases include Kansas, Missouri, Massachusetts, Illinois and New Mexico. Jumbo loans for home purchases is the only segment showing a risk increase. Nationally, all fraud types showed decreased risk. Undisclosed Real Estate Debt fraud risk had the greatest decrease year over year, followed by decreases in Property and Income fraud types. iBuyers — or companies that use technology to instantly make an offer on a home — accounted for more than 1% of all home sales in 2018 and are a contributing factor in the overall decline of fraud risk. To view the full CoreLogic Mortgage Fraud Report, click here. About CoreLogic CoreLogic (NYSE: CLGX), the leading provider of property insights and solutions, promotes a healthy housing market and thriving communities. Through its enhanced property data solutions, services and technologies, CoreLogic enables real estate professionals, financial institutions, insurance carriers, government agencies and other housing market participants to help millions of people find, acquire and protect their homes. For more information, please visit www.corelogic.com.
MORE >
Redfin Report: Rochester, Buffalo and Hartford at Least Risk of a Housing Downturn in the Next Recession
MORE >
Most Areas Targeted for New Opportunity Zone Redevelopment Incentives Have Home Prices Well Below National Levels
New tax breaks are aimed at spurring improvement in low-income Opportunity Zone areas of the United States; almost half have median home prices below $150,000 IRVINE, Calif. – August 29, 2019 — ATTOM Data Solutions, curator of the nation's premier property database and first property data provider of Data-as-a-Service (DaaS), today released a special report analyzing qualified Opportunity Zones established by Congress in the Tax Cuts and Jobs act of 2017 (see full methodology below). In this report, ATTOM looked at nearly 3,100 zones with sufficient sales data to analyze, which included areas with at least five home sales in the second quarter of 2019 as well as an average of at least five sales per quarter since Q3 2018. The analysis found that roughly 80 percent of those zones had median home prices in the second quarter of 2019 that were below the national figure of $266,000 and that half had median prices of less than $150,000. The report further compared Opportunity Zones to surrounding regions and found that median Q2 2019 prices in about one in four zones were less than 50 percent of the typical value in the Metropolitan Statistical Areas where they exist. "Opportunity Zones are among the poorest areas of the country, with some of the lowest home prices. This should come as no surprise because the zones are designed to be in or alongside economically distressed neighborhoods," said Todd Teta, chief product officer with ATTOM Data Solutions. "But the differences between these and other areas in most parts of the nation are stark. The numbers provide key benchmarks for how much room there is for these areas to grow and how much new investment they need." High-level findings from the report include: States with the highest percentage of census tracts meeting Opportunity Zone requirements include Wyoming (17 percent), Mississippi (15 percent), Alabama (13 percent), North Dakota (12 percent) and New Mexico (12 percent). Washington, DC, also is among the leaders (14 percent). Nationwide, 10 percent of all tracts qualify. Among the 3,073 Opportunity Zones with sufficient data to analyze, California has the most, with 374, followed by Florida (317), Texas (164), Pennsylvania (154), North Carolina (145) and Tennessee (138). Of the tracts analyzed, 47 percent had a median price in Q2 2019 of less than $150,000. The median ranged from $150,000 to $199,999 in 17 percent, from $200,000 up to the national median of $266,000 in 16 percent and more than $266,000 in 19 percent. Within Opportunity Zones, 86 percent had median Q2 2019 sales prices that were less than the median sales price for the surrounding Metropolitan Statistical Area. Roughly 26 percent had median sales prices less than half the figure for the MSA. Only 14 percent had median sales prices that were equal to or above the median sales price in the MSA. States that had highest percentage of Opportunity Zone tracts with a median price less the half the MSA figure included Alabama (55 percent), Pennsylvania (53 percent), Illinois (51 percent), Ohio (47 percent) and Georgia (45 percent). States with the smallest percentages included Washington (1 percent), Nevada (3 percent), Oregon (4 percent) Colorado (4 percent) and Indiana (4 percent). Regionally, the Midwest had the highest rate of Opportunity Zone tracts with a median home price of less than $150,000 (73 percent), followed by the South (57 percent), the Northeast (53 percent) and the West (13 percent). The Midwest also had the highest percentage of Opportunity Zone tracts where the median price was less than that of surrounding MSAs (89 percent), followed by the Northeast (87 percent), the South (85 percent) and the West (85 percent). In addition, the report found that among Opportunity Zones with at least 10 sales in each of the five latest quarters, 41 had Q2 2019 medians of $400,000 or more. They included areas of King County, WA; Denver County, CO; Coconino County, AZ; Deschutes County, OR and Alameda and Contra Costa counties in California. At the opposite end, 50 zones had Q2 2019 medians of less than $50,000. They included areas of Philadelphia, PA; Baltimore, MD; Montgomery, AL; Duval County, FL and Jefferson County, AL. Report methodology The ATTOM Data Solutions Opportunity Zones analysis is based on home sales price data derived from recorded sales deeds. Statistics for previous quarters are revised when each new report is issued as more deed data becomes available. ATTOM Data Solutions compared median home prices in tracts designated as Opportunity Zones by the Internal Revenue Service. Except where noted, tracts were used for the analysis if they had at least five sales in Q2 2019, plus an average of five sales per quarter for the latest four quarters. Median household income data for tracts and counties comes from surveys taken the U.S. Census Bureau (www.census.gov) from 2013 through 2017. The list of designated Qualified Opportunity Zones is located at U.S. Department of the Treasury. Regions are based on designations by the Census Bureau. Hawaii and Alaska, which the bureau designates as part of the Pacific region, were included the West region for this report. About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, APIs, market trends, marketing lists, match & append and introducing the first property data deliver solution, a cloud-based data platform that streamlines data management – Data-as-a-Service (DaaS).
MORE >
The Top U.S. Destinations For Movers Aren't Where You Think
MORE >
Over 1.5 Million Vacant U.S. Homes in Q3 2019 Represent 1.6 Percent of All Single-Family Homes and Condos
Over 9,600 Vacant "Zombie" Foreclosures in the Third Quarter of 2019 IRVINE, Calif. - August 15, 2019 -- ATTOM Data Solutions, curator of the nation's premier property database and first property data provider of Data-as-a-Service (DaaS), today released its Q3 2019 Vacant Property and Zombie Foreclosure Report showing there are over 1.5 million (1,530,563) U.S. single-family homes and condos vacant in the third quarter of 2019, representing 1.6 percent of all homes. The report analyzes publicly recorded real estate data collected by ATTOM Data Solutions — including foreclosure status, equity, and owner-occupancy status — matched against monthly updated vacancy data. (See full methodology enclosed below.) During the third quarter of 2019, over 304,000 homes were in the process of foreclosure, with about 3.2 percent being "zombie" foreclosures. While the count of properties in the process of foreclosure is down by nearly 22 percent since ATTOM's last foreclosure vacancy report in the same period of 2016, the number that sits empty has dropped nearly in half. "The blight of vacant, decaying properties facing foreclosure has declined dramatically across the United States – another good-news offshoot of the housing boom that's gone on for eight years," said Todd Teta, chief product officer with ATTOM Data Solutions. "A handful of areas still face notable problems with homes abandoned by owners after they get hit with foreclosure claims. But with the economy improving and the housing market still hot, an expanding number of neighborhoods across the country face little or no problem with these so-called zombie properties." High-level findings from the report: A total of 9,612 properties facing possible foreclosure have been vacated by their owners nationwide. Washington, D.C. had the highest percentage of zombie foreclosures (12.5 percent). States where the rates were above the national average of 3.2 percent included Oregon (8.8 percent), Maine (8.5 percent), Kansas (7.6 percent) and New Mexico (7.0 percent). The lowest rates – all less than 1.4 percent – were in New Hampshire, Idaho, Colorado, Connecticut and Delaware. New York had the highest actual number of zombie properties (2,428), followed by Florida (1,634), Illinois (985), Ohio (891) and New Jersey (463). Among metropolitan areas with at least 100,000 residential properties, Peoria, IL, had the highest percent of vacant foreclosures (zombies) at 16.5 percent, followed by Wichita, KS (9.5 percent), Syracuse, NY (9.3 percent), Honolulu, HI (8.5 percent) and Youngstown, OH (8.4 percent). Among zip codes with at least 100 properties in pre-foreclosure, the highest rates of owner-vacated properties were concentrated in New York, Florida, Ohio and Illinois. The zip codes with the top percentages were zip code 61605 in the Peoria, IL metropolitan statistical area with 48.6 percent, zip codes 44108 (26.0 percent), 44112 (23.0 percent), and 44105 (19.7 percent), all in the Cleveland, OH, area and rounding out the top five is zip code 14701 in Jamestown, NY with 19.6 percent. The top zombie foreclosure rates in counties with at least 500 properties in foreclosure included Peoria County, IL (21.9 percent); Baltimore City, MD (11.4 percent); Broome County, NY (11.1 percent); Onondaga County, NY (9.6 percent) and Madison County, IL (9.6 percent). The highest levels of vacant investor-owned properties were in Indiana (8.8 percent), Kansas (6.7 percent), Minnesota (6.0 percent), Ohio, (5.9 percent) and Rhode Island (5.8 percent). Report Methodology ATTOM Data Solutions analyzed county tax assessor data for more than 98 million single-family homes and condos for vacancy, broken down by foreclosure status and, owner-occupancy status. Only metropolitan statistical areas with at least 100,000 single-family homes and condos and counties with at least 50,000 single-family homes and condos were included in the analysis. Vacancy data is available here. About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, APIs, market trends, marketing lists, match & append and introducing the first property data deliver solution, a cloud-based data platform that streamlines data management – Data-as-a-Service (DaaS).
MORE >
U.S. Housing Market Deja Vu
MORE >
When the Back to School Shopping List Includes a House
WASHINGTON (August 12, 2019) – The act of moving into a new home or selling a home can be a hectic period for both home buyers and sellers. So it is not surprising to learn that changing residences with children in tow adds another level of chaos to the process. That is according to a new report from the National Association of Realtors, 2019 Moving With Kids, which explores the various home buying habits and seller preferences of those who have children under the age of 18 years old living in the home. The report found that those home buyers who still have children living in their homes were likely to be drawn to specific neighborhood characteristics. For example, 53% of buyers with children considered a neighborhood based on the quality of the school districts within that neighborhood. Fifty percent of buyers with children selected a neighborhood based on its convenience to schools. Of those polled who had no children, only 10% chose a neighborhood because of the quality of its school district. Merely 6% of those buyers with no kids said "convenience to schools" factored into their choice when they selected their home and neighborhood. Infographic detailing common statistics relating to moving with childrenSee and share this infographic. "Parents inherently make sacrifices for their children and family, and that is no different when shopping for a home," said Lawrence Yun, NAR's chief economist. "Of course, affordability is a part of the decision, but we have seen buyers with kids willing to spend a little more in order to land a home in a better school zone or district." In terms of making the final selection on exactly which home to purchase, buyers with children and those without shared some common ground. More than half of all buyers, regardless of children, said that finding the right property was the most difficult stage in the process. During that phase, among the home buyers with children living in the household, 86% purchased their home with the help of a real estate agent. Similarly, 87% of home buyers without children enlisted the services of a real estate agent when making their home purchase. While both buyers with children and those without utilized an agent, NAR found that the preferences regarding agent interaction were different. For example, of those buyers without children who were shopping for a home – 74% said they wanted their agent to phone directly when relaying information about new real estate activity. However, 67% of buyers with children preferred that their agent make contact about properties via text message. "The report's findings showed that both buyers and sellers, especially those with kids, are often dealing with a time crunch of some sort, trying to house hunt while simultaneously raising a family," said NAR President John Smaby, a second-generation Realtor® from Edina, Minnesota and broker at Edina Realty. "Tech-savvy Realtors® recognize this predicament and are meeting clients' needs by contacting them via smartphone and text message." Polling confirmed that buyers with children ultimately purchased larger sized homes and properties. As a whole, they opted to buy homes that measured at 2,110 square feet in size with four bedrooms and two full bathrooms. This is versus those without children in the household; on average, they bought 1,800 square feet in size with three bedrooms and two full bathrooms. However, 26% of buyers with children had to postpone their home buying process because of child care expenses. Although some buyers were able to still make a purchase, even with child care costs in play, some of those buyers had to ultimately make compromises and concessions on the properties. Thirty-one percent said they compromised on the condition of the home, while another 31% said they compromised on the size of the home. Twenty-four percent reported to have compromised on the price of the home. Home Selling Trends Twenty-three percent of sellers with children reported that they sold their home "very urgently." Only 14% of buyers with no children said they had to sell their home quickly. One notable difference between the two groups is that 46% of those with children in the home said they had to sell somewhat urgently, while just under half of those with no children in the household said they were able to wait for the right offer. "When buying or selling a home, exercising patience is beneficial, but in some cases – such as facing an upcoming school year or the outgrowing of a home – sellers find themselves rushed and forced to accept a less than ideal offer," said Yun. Twenty-five percent of those sellers with children said they sold because their previous home was too small. Nineteen percent said a job relocation caused them to sell, and 13% said a change in their family situation spurred the sale. Only 7% of those without kids said they felt as if their home was too small. The National Association of Realtors® is America's largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.
MORE >
Redfin Reveals the 6 U.S. Metros Where You Can Retire by Age 40
MORE >
New ATTOM Data Solutions Analysis Examines the Grocery Store Impact on the U.S. Housing Market
Trader Joe's takes the gold for homebuyers and ALDI triumphs with investors; Average home values near Trader Joe's is $608,305, compared to $521,142 near Whole Foods and $222,809 near ALDI IRVINE, Calif. - August 2, 2019 -- ATTOM Data Solutions, curator of the nation's premier property database and first property data provider of Data-as-a-Service (DaaS), today released its 2019 Grocery Store Battle analysis, which examines whether living near a Trader Joe's, a Whole Foods or an ALDI can affect a home's value – as a homebuyer based on seller ROI and home equity, or as an investor looking for the best home flipping returns and home price appreciation. For this analysis, ATTOM looked at current average home values, 5-year home price appreciation from YTD 2019 vs. YTD 2014, current average home equity, home seller profits, and home flipping rates on 1,859 zip codes nationwide with a least one Whole Foods store, one Trader Joe's store and one ALDI store. (See full methodology enclosed below.) Click here to view the infographic visualizing the results of this analysis. For Homebuyers Homes near a Trader Joe's realized an average home seller ROI of 51 percent, compared to homes near a Whole Foods with an average home seller ROI of 41 percent and ALDI at 34 percent. The average home seller ROI for all zip codes with these grocery stores nationwide is 37 percent. Homes near a Trader Joe's have added equity, owning an average 37 percent equity in their homes ($247,445), while homes near Whole Foods had an average of 31 percent equity ($187,035) and homes near ALDI had average 20 percent equity ($53,650). The average equity for all zip codes with these grocery stores nationwide is 25 percent. For Investors Properties near an ALDI are an investor's cornucopia with an average gross flipping ROI of 62 percent, compared to properties near a Whole Foods which had an average gross flipping ROI of 35 percent and Trader Joe's at 31 percent. The average gross flipping ROI for all zip codes with these grocery stores nationwide is 52 percent. Properties near an ALDI have seen an average 5-year home price appreciation of 42 percent, compared to 33 percent appreciation for homes near a Trader Joe's, and 31 percent appreciation for homes near a Whole Foods. The average appreciation for all zip codes with these grocery stores nationwide is 38 percent. Report methodology For this analysis ATTOM Data Solutions looked at current average home values, 5-year home price appreciation from YTD 2019 vs. YTD 2014, current average home equity, home seller profits, and home flipping rates on 1,859 zip codes nationwide with a least one Whole Foods store, one Trader Joe's store and one ALDI store. Grocery store locations are from the USDA (http://www.fns.usda.gov/snap/retailerlocator). 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 property data licensing, Property Data APIs, market trends, marketing lists, match & append and introducing the first property data deliver solution, a cloud-based data platform that streamlines data management – Data-as-a-Service (DaaS).
MORE >
Big City Metros Fall Off Realtor.com's 2019 Hottest ZIP Codes Report
MORE >
Redfin Report: Racial Gaps in Homeownership, Home Equity and Wealth Widened during the Historic Decade-Long Economic Expansion
U.S. home prices have risen 73% since 2010, but the resulting home equity gains haven't benefited black Americans, whose homeownership rate fell to a record low in the second quarter SEATTLE, July 31, 2019 -- Homeowners in primarily white neighborhoods gained an average of $70,000 more in home equity than homeowners in primarily black neighborhoods from 2012 to 2018, according to a new report from Redfin, the technology-powered real estate brokerage. In part as a result of the inequality in homeownership and home-equity gains, black Americans have seen their median net worth decline in the past decade while for white Americans it rose by double digits. While U.S. home prices have risen 73 percent since the first quarter of 2010, homeownership rates among all Americans dropped 3 percentage points to 64.1%. Still, 73.1 percent of white Americans owned homes as of the second quarter of 2019, compared with a record-low of 40.6 percent for black Americans and 46.6 percent for Hispanic & Latino Americans. The resulting 32.5 percentage-point gap in homeownership between black and white Americans is 3.6 points wider than it was at the beginning of 2010. Meanwhile the homeownership gap between white and Hispanic & Latino Americans widened by half a point. "With higher unemployment rates and less wealth to begin with, black Americans were less able to buy homes even when prices were at their lowest point, meaning many missed out on opportunities to build wealth and put down roots in their communities through homeownership," said Redfin chief economist Daryl Fairweather. "The growing racial homeownership gap has widened the wealth gap, as home equity remains one of the most significant wealth-building tools. And now, with higher home prices and tighter lending standards than before the housing crash of 2008, it's more difficult than ever for minorities to break into the housing market. That's likely to contribute to growing economic inequality in the U.S." Redfin compiled data on homeownership rates, home equity, net worth and unemployment by race. The already-large homeownership gap between black and white Americans has widened since 2010 The homeownership rate for black Americans dropped 5 percentage points to 40.6% in the second quarter of 2019 from 45.6% in the first quarter of 2010. The rate for white Americans dropped just 1.4 percentage points, from 74.5% to 73.1%, over the same time period. The homeownership rate for Hispanic & Latino people fell 1.9 points (from 48.5% to 46.6%). The nationwide rate dropped 3 points to 64.1%. The homeownership gap between black and white Americans has widened over the last decade to a 32.5 percentage-point gap in the second quarter of 2019, from a 28.9 percentage-point gap in the first quarter of 2010. The homeownership rate remained over 70% for white Americans from 2010 through the first quarter of 2019, but it never surpassed the 50% threshold for black Americans. Homeowners in majority-black neighborhoods experienced significantly smaller home-equity gains in dollars than those in majority-white neighborhoods from 2012 to 2018 Homeowners in primarily black neighborhoods saw smaller dollar gains in home equity ($120,800) from 2012 to 2018 (the most recent full year for which data is available) than those in Hispanic/Latino and white neighborhoods. Homeowners in primarily white neighborhoods saw a gain of $190,935 during the same time period, and they started and ended with the most equity in dollars. Homeowners in primarily Hispanic & Latino communities gained $206,000 in equity. Home prices in majority-black neighborhoods rose 24.9% from 2012 to 2018, higher than the 21% gain for Hispanic & Latino communities and the 12.5% gain for white communities. Homeowners in majority-black neighborhoods saw the biggest percentage gain in equity (213%), but started with substantially lower equity in the homes than white and Hispanic & Latino neighborhoods. The home-equity gap between black and white Americans widened slightly from 2012 to 2018, from $67,229 to $70,135. Home-equity gains for black Americans haven't translated into an increase in net worth The median net worth for black Americans dropped 2.8% to $17,100 in 2016 (the most recent full year for which data is available) from $17,600 in 2010. That leaves the typical black American more than $10,000 short of the 20% down payment ($27,980) likely needed to purchase a median-priced home in Detroit, one of the most affordable major housing markets in the U.S. Median net worth rose 18.5% to $171,000 during the same period for white Americans. The net-worth gap between black and white Americans increased 22.8% to $153,900 in 2016 from $125,300 in 2010. Hispanic & Latino Americans saw their median net worth increase by 15.1% over the six year period to $20,600, also well below the typical down payment for a home in Detroit. In 2010, the ratio of white to black net worth was 8:1. By 2016, the ratio had widened to 10:1. The unemployment rate for black Americans is nearly double the rate for white Americans The unemployment rate for black Americans dropped 10.5 percentage points to 6% in June 2019 from 16.5% in January 2010, while the rate for white Americans fell 5.5 percentage points to 3.3% over the same time period. The unemployment gap between black and white Americans has narrowed substantially since the beginning of 2010, from a 7.7 percentage-point gap to a 2.7-point gap. To read the full report, including charts and methodology, please visit: https://www.redfin.com/blog/black-americans-homeownership-rate. About Redfin Redfin is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 85 major metro areas across the U.S. and Canada. The company has closed more than $85 billion in home sales.
MORE >
Redfin Migration Report: Phoenix, Atlanta, Sacramento, Las Vegas and Austin Continue to Attract Thousands of Homebuyers From Pricey, High-Tax Metros
MORE >
Get Ready to Make a Splash! Realtor.com Reveals the Top 10 Affordable Lake Towns of 2019
As temperatures continue to rise, realtor.comⓇ offers a glimpse into hot deals for lake town real estate across the United States SANTA CLARA, Calif., July 30, 2019 -- As the summer heat shows no signs of relenting, realtor.com®, the Home of Home Search℠, today released its list of the 10 most affordable lake towns, which offer waterfront properties under $450,000. Unlike owning a vacation home on the ocean, lake homes can be more accessible – not just in price, but also for those who don't live near the coasts. "Lake towns often offer people an affordable destination with water sports, amenities, natural beauty and an array of often top-quality dining options," said Clare Trapasso, senior news editor, realtor.com®. "Some of these lake towns also double as ski resorts in the winter. Those who enjoy cold-weather sports, in addition to summer activities may in fact, be getting a home they can enjoy throughout the year." The most affordable town on the list is Jamestown, N.Y., with a median list price of just $59,000, but if you desire a two-bedroom home with a private shoreline that can raise the price significantly. Sandpoint, Idaho, is the most expensive of the affordable lake towns, with a median list price of $429,000 and a variety of lakefront houses that can cost well over $1 million. While the cost of homes in these affordable lake towns can vary, some of the common themes shared by the majority on the list are attractions that provide year-round entertainment and an abundance of single-family homes available for purchase. From East Coast to West Coast - and everywhere in between - the following towns are the best places to score an affordable lake house, in rank order: 1. Branson, Mo. Median Listing Price: $205,900 Near two of Missouri's most popular lakes, Branson is a Midwestern vacation destination filled with music venues, amusement parks, nightlife, and other attractions for locals and visitors to enjoy. For those seeking a prime spot for watersports and boating, Table Rock Lake is surrounded by a variety of single-family homes, which often range from $350,000 to over $650,000. Lake Taneycomo comes in at a top pick for trout fishers and those seeking a quieter destination where buyers can find one-bedroom condos for approximately $120,000. 2. East Stroudsburg, Pa. Median List Price: $187,000 A popular destination for people looking to escape city living, East Stroudsburg is a vacation spot within the Poconos, known for its lakes, ski resorts, historic towns and water parks. While most properties in the area have a low price tag, prime lakefront homes can range from $900,000 to $1.4 million. Lake Naomi and Timber Trails are also great nearby options that have smaller single-family homes that start around $120,000. 3. Port Clinton, Ohio Median List Price: $259,900 Port Clinton is a charming small town on the western edge of Lake Erie with plenty of low-priced condos, and single-family homes that typically start around $300,000. In addition to the many beaches, islands and quiet bays of Port Clinton, the town has a plethora of entertainment, including an African Safari Wildlife Park, The Watering Hole Safari and Waterpark, unique antique stores, and waterfront restaurants. 4. Jamestown, N.Y. Median List Price: $59,900 Jamestown sits at the tip of Chautauqua Lake and is known for its exceptionally affordable real estate, and of course, its lakes. However, Jamestown has also made a name for itself as a top-notch comedy destination. As the hometown of comedian Lucille Ball, Jamestown hosts the annual Lucille Ball Comedy Festival, which has featured Jerry Seinfeld, Amy Schumer and Jay Leno, among others. Those looking to stay year-round will be able to land a bargain as the area is filled with older single-family homes listed at great prices. 5. Alexandria, Minn. Median List Price: $288,900 Alexandria is located in Douglas County, where there are about 300 lakes and certainly no shortage of lakefront homes. Waterfront properties are predominantly single-family homes that start at just over $100,000. However, there are also a variety of larger houses, with more acreage, and higher price tags available. 6. Clearlake, Calif. Median List Price: $219,900 The popular Northern California vacation town, Clearlake, was hit hard by the previous foreclosure crisis and recent wildfires. However, the town is making a comeback and there are even plans to reopen the renowned Konocti Harbor Resort. Rumored to be the oldest lake in North America, the fresh water of Clear Lake is still a major draw, especially with real estate prices that are just a fraction of those in nearby cities like Napa and San Francisco. 7. Spirit Lake, Iowa Median List Price: $315,000 With waterfront attractions, including an amusement park, and deep clear water that is perfect for boating, Spirit Lake and Okoboji are two of Northern Iowa's more lively and desirable lake towns. West Okoboji Lake is filled with waterfront, multi-million-dollar homes and grand estates, while East Okoboji and Spirit Lake house more affordable condos and single-family homes with shared lake access. 8. Mountain Home, Ark. Median List Price: $174,900 For those seeking a tranquil, peaceful abode by the lake, head to Mountain Home. Unlike many of the other lake towns on this list, Mountain Home doesn't have a lot of entertainment. Instead, the main attraction to this peaceful place is Lake Norfolk, a 22,000-acre manmade lake that has nearly two dozen parks and 550 miles of shoreline. In this slower paced town, you can find a two-bedroom home overlooking the lake or river for about $200,000 or a larger waterfront house which can range from $300,000 up to $2 million. 9. Baraboo, Wis. Median List Price: $189,900 Baraboo is home to the world-renowned Ringling Brothers and Barnum & Bailey Circus, which started in 1888 and shut down in 2017. The town is also known for its outdoor adventures and attractions, such as rock climbing, the International Crane Foundation, Lake Wisconsin and the Wisconsin River. The lake and river are lined with single-family homes that range from $200,000 for a modest two-bedroom cottage up to $3.6 million for a grand estate on the water. 10. Sandpoint, Idaho Median List Price: $429,000 While Sandpoint is the most expensive town on the list, this small community in Idaho is surrounded by a lake and mountains that provide year round attractions for visitors and residents. Fishing, boating, wine tasting, and The Festival at Sandpoint are some of the main summer activities, while skiing at Schweitzer Mountain Resort is popular during the winter. Prime lakefront homes in the area typically go for over $1 million, while houses on the river can be found for less than half of the price. To put together the list, realtor.com® looked at real estate listings that mentioned things such as "lake view" and "lake house" in more than 900 U.S. metropolitan and micropolitan areas. Each location had to have at least 50 listings over a 12-month period ending May 31, 2019 and couldn't have more than 150,000 households. To ensure these were true vacation spots, the percentage of vacation homes and the percentage of dining, drinking and outdoor activity establishments were also measured. Finally, to measure affordability, realtor.com® ensured that none of the towns in this ranking had median prices of more than $450,000. For more information about these towns, please click here. About realtor.com® Realtor.com®, The Home of Home Search℠, offers the most MLS-listed for-sale listings among national real estate portals, and access to information, tools and professional expertise that help people move confidently through every step of their home journey. Through its Opcity platform, realtor.com® uses data science and machine learning to connect consumers with a real estate professional based on their specific buying and selling needs. Realtor.com® pioneered the world of digital real estate 20 years ago, and today is a trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.
MORE >
CoreLogic Special Report: The Role of Housing in the Longest Economic Expansion
MORE >
Realtor Survey Shows Decline in Foreign Investment in U.S. Residential Real Estate
WASHINGTON (July 17, 2019) -- A decline in global growth and low housing inventory contributed to a drop in foreign investment in U.S. residential real estate over the past year. This is according to an annual survey of residential purchases from international buyers, released today by the National Association of Realtors®, which found that foreign buyers purchased fewer U.S. existing homes from April 2018 through March 2019. Global economic growth, which increased in 2016 to 2017, slowed to 3.6% in 2018 and is on pace to taper to 3.3% in 2019. NAR's Profile of International Transactions in U.S. Residential Real Estate 2019 revealed that foreign buyers purchased $77.9 billion worth of U.S. existing homes from the 2019 survey reference period, a 36% decline from the level reached in the previous 12 months ($121 billion). Non-resident foreign buyers accounted for $33.2 billion of U.S. existing-home sales, a 37% decline from the prior level of $53 billion. Resident foreign buyers – that is, recent immigrants – purchased $44.7 billion of residential property, a 34% drop from the prior level ($67.9 billion). The dollar volume of purchases saw a decline as the number of purchases, as well as the average price, decreased from the previous year, as foreign buyers purchased in comparison to the levels during the previous 12 months. Foreign buyers were able to buy 183,100 properties (266,800 in the previous period) at an average price of $426,100. "A confluence of many factors – slower economic growth abroad, tighter capital controls in China, a stronger U.S. dollar and a low inventory of homes for sale – contributed to the pullback of foreign buyers," said Lawrence Yun, NAR chief economist. "However, the magnitude of the decline is quite striking, implying less confidence in owning a property in the U.S." Top Foreign Buyers For the seventh consecutive year, China exceeded all other countries in terms of dollar volume of purchases, buying an estimated $13.4 billion worth of residential property, a 56% decline from the previous 12 months. The Chinese economy is growing at a slower pace compared to past years, slowing to 6.3% in 2019 compared to 6.9% in 2017. The Chinese government has also tightened the monitoring of dollar outflows since 2016 to manage its foreign exchange reserves. Following China, the next top foreign buyer for 2019 was Canada at $8.0 billion. While Chinese investors and Canadian investors tied concerning the number of purchases, on average, Chinese buyers bought properties at a higher price point. Therefore, China ranked ahead of Canada in terms of dollar volume. The third top international buyer was India at $6.9 billion, the United Kingdom was fourth at $3.8 billion and in fifth was Mexico at $2.3 billion. Each of the top five buyers experienced a decline in the dollar volume of purchases. International Buyers – Where Did They Go? Following historical trends, Florida was at the epicenter of foreign investment. The state attracted 20% of foreign buyers. Forty-two percent of Canadians purchased property in Florida. "Many Canadians and other foreigners found Florida so enticing because of its lenient tax laws," said Yun. "Additionally, many Florida metro areas have an inventory of cheaper properties, relatively speaking – a combination which makes the state a very popular destination." California followed Florida, accounting for 12% of international purchases. Thirty four percent of Chinese buyers purchased property in California, which represents a decline from one year ago. The third most popular destination among international buyers was Texas (10%), particularly desirable among Indian and Mexican buyers. Arizona accounted for 5% of international buyers, popular for Canadian and Mexican purchasers, followed by New Jersey (4%). New Jersey appealed to a mix of international buyers, especially those from the United Kingdom. A few other significant destinations were North Carolina, Illinois, New York and Georgia. Each of these states accounted for 3% of all foreign buyers. Price Points Forty-four percent of foreign buyers purchased in a suburban area, while 76% purchased single detached family homes and townhomes. The median purchase price for foreign buyers was $280,600, slightly higher than the $259,600 average for all U.S. existing homes sold. According to Yun, the price difference is a reflection of the choice of location and the kinds of properties desired by foreign buyers. Eight percent of international buyers paid $1 million or more for their property, compared to just 3% of all U.S. existing homebuyers. Resident foreign buyers – those living in the United States either as recent immigrants or those holding visas for professional, educational or other purposes – typically purchased properties at a slightly higher price point ($282,500) compared to non-resident foreign purchasers ($277,700). "Even though numbers were lower this year than during the previous 12 months, international investors and buyers still spent and invested a great deal of money in U.S. real estate," said NAR President John Smaby, a second-generation Realtor® from Edina, Minnesota and broker at Edina Realty. "Home buyers from across the globe know that the U.S. market is still a safe, secure and promising place to invest." The survey also showed that international buyers are more likely to purchase their homes in cash than all existing homebuyers. Forty-one percent of the reported transactions were all-cash sales, in comparison to 21% for all existing-home purchases during the 2019 assessment reference period. Non-resident foreign buyers are more likely to pay in cash than resident foreign buyers, who are more likely to acquire mortgage financing from U.S. sources. Sixty-three percent of non-resident foreign buyers had an all-cash purchase transaction, compared to 25% among resident foreign buyers. Canadian buyers, who primarily live abroad, were the most likely to pay all cash (75%). The majority of Asian Indian buyers, most of whom resided in the U.S. as recent immigrants or visa holders, obtained a U.S. mortgage. Almost half of Chinese buyers made an all-cash purchase. NAR's 2019 Profile of International Transactions in U.S. Residential Real Estate was conducted April 5 through May 3, 2019. A sample of Realtors® was surveyed to measure the share of U.S. residential real estate sales to international clients, and to provide a profile of the origin, destination and buying preferences of international clients, as well as the challenges and opportunities faced by Realtors® in serving foreign clients. The survey presents information about transactions with international clients during the 12-month period between April 2018 and March 2019. A total of 11,812 Realtors® responded to the 2019 survey. The 2019 Profile of International Transactions in U.S. Residential Real Estate can be ordered by calling 800-874-6500, or online at www.nar.realtor/prodser.nsf/Research. The National Association of Realtors® is America's largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.
MORE >
Realtor.com Predicts Market Shift That Could Impact Buyers Well Into 2020
MORE >
Median-Priced Homes Not Affordable for Average Wage Earners in 74 Percent of U.S. Housing Markets
Home Prices Outpacing Wages in 40 percent of U.S. Housing Markets; Home Prices Less Affordable Than Historic Average in 61 Percent of Local Markets IRVINE, Calif. - June 27, 2019 -- ATTOM Data Solutions, curator of the nation's premier property database and first property data provider of Data-as-a-Service (DaaS), today released its Q2 2019 U.S. Home Affordability Report, which shows that median home prices in the second quarter of 2019 were not affordable for average wage earners in 353 of 480 U.S. counties analyzed in the report (74 percent). The largest populated counties where a median-priced home in the second quarter of 2019 was not affordable for average wage earners included Los Angeles County, California; Cook County (Chicago), Illinois; Maricopa County (Phoenix), Arizona; San Diego County, California; and Orange County, California. The 127 counties (26 percent of the 480 counties analyzed in the report) where a median-priced home in the second quarter of 2019 was still affordable for average wage earners included Harris County (Houston), Texas; Wayne County (Detroit), Michigan; Philadelphia County, Pennsylvania; Cuyahoga County (Cleveland), Ohio; and Franklin County (Columbus), Ohio. The report determined affordability for average wage earners by calculating the amount of income needed to make monthly house payments — including mortgage, property taxes and insurance — on a median-priced home, assuming a 3 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). View Q2 2019 U.S. Home Affordability Heat Map "Despite falling mortgage rates and rising wages, the cost of owning the typical home remains out of reach or a significant financial stretch for the nation's average wage earners," said Todd Teta, chief product office with ATTOM Data Solutions. "However, a closer look at the data reveals milder-than-usual increases for the Spring, and none as severe as in previous years since the recession. Therefore, this can help indicate the market may be easing, following similar indicators from recent home-flipping and foreclosure data trends." Home price appreciation outpacing wage growth in 40 percent of markets Home price appreciation outpaced average weekly wage growth in 192 of the 480 counties analyzed in the report (40 percent), including Maricopa County (Phoenix), Arizona; Riverside County, California; San Bernardino County (Riverside), California; Tarrant County (Dallas-Fort Worth), Texas; and Wayne County (Detroit), Michigan. Average weekly wage growth outpaced home price appreciation in 288 of the 480 counties analyzed in the report (60 percent), including Miami County, Florida; Kings County, New York; Dallas County, Texas; Queens County, New York; and Clark County, New York. 67 percent of markets require over 30 percent of wages to buy a home Among the 480 counties analyzed in the report, 323 (67 percent) require at least 30 percent of their annualized weekly wages to buy a home in the second quarter of 2019. Those counties that required the greatest percent included Marin County (San Francisco), California (116.8 percent of annualized weekly wages needed to buy a home); Kings County, New York (113.4 percent); Santa Cruz County, California (112.3 percent); San Luis Obispo County, California (91.4 percent); and Maui County, Hawaii (88.2 percent). A total of 157 of the 480 counties analyzed in the report (33 percent) required less than 30 percent of their annualized weekly wages to buy a home in the second quarter of 2019. Those counties that required the smallest percent included Bibb County (Macon), Georgia (12.9 percent of annualized weekly wages needed to buy a home); Wayne County (Detroit), Michigan (13.2 percent); Baltimore City, Maryland (13.6 percent); Rock Island County (Davenport), Illinois (14.9 percent); and Allen County (Lima), Ohio (14.9 percent). 61 percent of markets less affordable than historic averages Among the 480 counties analyzed in the report, 292 (61 percent) were less affordable than their historic affordability averages in the second quarter of 2019, up from 50 percent of counties in the previous quarter but down from 74 percent of counties in the second quarter of 2018. Counties that were less affordable than their historic affordability averages included Los Angeles County, California; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; San Diego County, California; and Orange County, California. 39 percent of markets more affordable than historic averages Among the 480 counties analyzed in the report, 188 (39 percent) were more affordable than their historic affordability averages in the second quarter of 2019, including Cook County (Chicago), Illinois; and New York County, Suffolk County, Bronx and Nassau County – all in the New York metro area. Counties with the highest affordability index were Warren County (Allentown), New Jersey (158); Litchfield (Torrington), Connecticut (139); Cumberland (Vineland), New Jersey (139); Mercer County (Trenton), New Jersey (137); and Atlantic County (Atlantic City), New Jersey (134). 82 percent of markets post better affordability compared to year ago A total of 393 of the 480 counties analyzed in the report (82 percent) posted a year-over-year increase in the affordability index, meaning that home prices were more affordable than a year ago, including Los Angeles County, California; Cook County (Chicago), Illinois; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; and San Diego County, California. A total of 87 of the 480 counties analyzed in the report (18 percent) posted a year-over-year decrease in their affordability index, meaning that home prices were less affordable than a year ago, including Sale Lake County, Utah; Saint Louis County, Missouri; Marion County (Indianapolis), Indiana; Middlesex County, New Jersey; and Jackson County (Kansas City), Missouri. About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, APIs, market trends, marketing lists, match & append and introducing the first property data deliver solution, a cloud-based data platform that streamlines data management – Data-as-a-Service (DaaS).
MORE >
Redfin Report: McAllen, Texas, Salt Lake City and Grand Rapids Have the Highest Homeownership Rates for Single Mothers
MORE >
Redfin Determines the Value of a Garage Across Major U.S. Metros
Nationwide, homes with garages sell for $23,211, or 12%, more than homes withoutA garage is worth most in Chicago, adding nearly $47,000 to a typical home's value SEATTLE, June 7, 2019 -- Chicago homes with garages sell for an estimated 38% more than comparable homes without them, according to a new analysis from Redfin, a technology-powered real estate brokerage. This equates to an additional $46,745 on the sale price of a typical Chicago home, the biggest home price premium of any metro area in the U.S. that meets the criteria for the analysis. Nationwide, homes with garages sell for $23,211 more than homes without garages, which equates to a 12 percent premium. The five metros where garages are worth the most—Chicago, St. Louis, Columbus, Oklahoma City and Cleveland—are all located in the Midwest, where winters tend to be cold and snowy. Garages aren't as valuable in places with warmer year-round climates like Honolulu, Los Angeles and Austin. "In the winter, finding a place to park is even more difficult because more people drive to work when it's cold outside," said Lamar Austin, a Redfin agent in Chicago. "And when you finally do find a parking spot at the end of the day, you usually have to shovel the snow before you can park there. If you have a garage, you may have to shovel snow from the driveway, but at least your car won't get buried overnight." Table: Home Price Premiums Associated with Having a Garage In Austin, a sprawling metro area where snow is very rare, garages are associated with a much lower premium. Garages are also much more common in Chicago than Austin: nearly 95 percent of homes in the Chicago metro have garages, while less than half of them in the Austin metro do. "A lot of builders in the inner core of Austin skip garages in favor of adding more livable square space to the house," said local Redfin agent Andrew Vallejo. "Homebuyers don't necessarily expect to get a garage if they're buying a home inside the city, though many people do value them, particularly in the suburbs where a two-car garage is the norm." Redfin compared the sale prices of single-family homes that sold in 2018 with a garage to comparable homes without a garage. The results are reported by metro area in terms of the sale price premium, as a percentage and in dollars, attributed to the presence of a garage. The ranking is limited to metro areas with at least 1,500 homes that met the criteria for this analysis, with at least 500 homes with a garage and 500 homes without. To read the report, including a full methodology, please visit: https://www.redfin.com/blog/does-a-garage-add-value-to-a-home About Redfin Redfin is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 85 major metro areas across the U.S. and Canada. The company has closed more than $85 billion in home sales.
MORE >
Redfin Ranks the Most Affordable Places to Get Married and Buy a Home in the Same Year
MORE >
Redfin: Millennials Could Buy Homes 3 Years Faster under Sen. Warren's Student Debt Cancellation Plan
2019 Morehouse College graduates can become homeowners 3.7 years sooner thanks to billionaire's debt payment gift SEATTLE, May 31, 2019 -- A typical aspiring first-time homebuyer could save a down payment three years faster under Senator Elizabeth Warren's plan to cancel up to $50,000 of student loan debt per person, according to a new analysis of student loan and home price data from Redfin, the tech-powered real estate brokerage. The Redfin analysis looked at a typical potential first-time homebuyer earning the national average salary of $65,879 for the Census Bureau's 24-44 year old age bracket, with an average of $17,938 in student debt, based on data from Lending Tree. If said potential homebuyer spent 10 percent of her income ($549 per month) on debt repayment at the average 5.8 percent interest rate, it would take 3 years to pay off the student debt. If after paying off her student debt she started saving that 10 percent of her income toward a 20 percent down payment on the national median-priced home ($308,000), it would take a total of 12.3 years to both pay off her student loans and save enough money for the full 20 percent down payment ($61,600), assuming home price and income did not change. Under Sen. Warren's plan to cancel up to $50,000 in student loan debt, the time it would take to save for a down payment would shrink to 9.4 years. Nearly 400 graduating seniors at Morehouse College in Atlanta recently had their student loans eliminated as part of a massive graduation gift from billionaire Robert F. Smith. This gift of debt forgiveness could get them into their own home 3.7 years faster than if they'd retained that debt. Based on estimates of $31,833 in average debt per Morehouse graduate and Atlanta's median income of $66,357 for 24-44 year olds, the graduates could save for a down payment on a median-priced Atlanta home in just 7.3 years, compared to 12.9 years if they had to pay off their student loans on their own before saving for a downpayment. "The idea of taking on a mortgage when you're still paying off tens of thousands of dollars in student loans is a non-starter for many people," said Redfin chief economist Daryl Fairweather. "If student debt were eliminated, college grads would be able to start building wealth through homeownership, laying down roots and contributing to their communities years earlier in their lives. An influx of young, educated homeowners could have positive impacts on neighborhoods and society at large. " Under Warren's student debt forgiveness plan, the median 24 to 44-year-old homebuyer in Detroit, where the typical home costs $130,000, could save for a down payment in just 4.2 years—the shortest time in the nation—down from 7.4 years currently. Metro areas with the highest ratios of student debt to income could see the biggest decrease in the time it takes to save for a down payment, with metros in the South like Memphis (4.3 years quicker), Birmingham (4.0 years quicker), and New Orleans (3.9 years quicker) among those where student-debt laden homebuyers stand to benefit the most. To read the full report, complete with market-level data and methodology, click here. About Redfin Redfin is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 85 major metro areas across the U.S. and Canada. The company has closed more than $85 billion in home sales.
MORE >
Newly Listed Homes Get 3.4 Times More Online Views Than Those with a Price Drop
MORE >
Redfin Survey: Less than Half of Homebuyers Said Tax Reform Has Affected their Search
14% of Homebuyers Surveyed Lowered their Price Range as a Result of Tax Reform, While 13% Moved to a Nearby City with Lower Taxes SEATTLE, May 17, 2019 -- More than a year after the historic tax code overhaul, less than half of homebuyers (47%) say that tax reform has had an effect on their home search, according to a March survey commissioned by Redfin, the technology-powered real estate brokerage. That's down from 56 percent last year, when tax reform's effects were still mostly speculative and not yet realized in people's paychecks. The tax reform law lowered the caps on the tax deductions allowed for mortgage interest payments and state and local taxes. The Redfin-commissioned survey included more than 2,000 U.S. residents who planned to buy or sell a primary residence in the next 12 months. More than 1,800 homebuyers responded to the question: "How has the recent tax reform law affected your plans to buy a home?" Results from this survey were compared to over 1,300 responses to the same question in a similar survey commissioned in March 2018. The most common tax-reform effect reported by homebuyers this year was that they lowered their price range because of decreased benefits on high-priced homes (14%, down from 16% last year). Another way tax reform has been affecting the housing market is in the form of migration to places with lower taxes, a trend we've noted in reports on Redfin.com user search patterns. This March, 13 percent of buyers said they shifted their search to nearby cities with lower taxes, and 9 percent said they shifted their search to states with lower taxes, down from 16 percent and 12 percent, respectively, last year. This year, 8 percent of respondents said they are searching for higher-priced homes because the new tax law gives them additional income, down from 17 percent last year. Eleven percent of buyers this March said they decided to buy a home because the new tax law gives them additional income, down from 19 percent in the March 2018 survey. "Last year more homebuyers were worried that tax reform would hurt their homebuying budgets, but it turns out tax reform wasn't all bad or all good for homebuyers," said Redfin chief economist Daryl Fairweather. "Some homebuyers, especially in low-tax states, are now paying less in taxes overall, which has left them with more cash for a more expensive home. For others, not being able to deduct as much of their property taxes or mortgage interest from their taxable income was the other shoe that needed to drop to make them pick up and move to a more affordable area. In the long run, we will see demand for luxury homes in high-tax states suffer the most because those homes have been hit the hardest by this tax reform, and there's actually early evidence of that already happening." How Were Households with Different Incomes Affected by Tax Reform? High-income homebuyers were the most likely to report in this year's survey that tax reform has had some sort of effect on their home search. Of those homebuyers earning $150,000 or more, 61 percent said that the new tax law had an effect on their home search, which was true for less than half of households earning under $150,000. The largest reported effect on high-income homebuyers was that 18 percent said they have now decided to buy a home thanks to their extra take-home income, but 16 percent said they are now lowering their price range due to decreased tax benefits on high-priced homes. Which States Were Most and Least Affected by Tax Reform? New York had the largest share of homebuyers who said that tax reform had affected their home search—61 percent. Homebuyers in New York were most likely to have lowered their price range (17%) or shifted their home search to cities with lower taxes (17%). California had the next-highest share of homebuyers impacted by tax reform at 55 percent. The largest effect there was homebuyers shifting their search to cities with lower taxes (18%). Thirteen percent of both New York- and California-based respondents said they were moving to a state with lower taxes. On the other end of the spectrum, Kansas and Indiana had the smallest share of homebuyers whose search was affected by tax reform, each at 24 percent. Washington, D.C., was just behind with 25 percent of homebuyers saying tax reform had some effect on their search. To read the full report, complete with market-level survey data and detailed methodology, please click here. About Redfin Redfin is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 85 major metro areas across the U.S. and Canada. The company has closed more than $85 billion in home sales.
MORE >
After Amazon HQ2: New York and D.C. Offer a Tale of Two Housing Markets
MORE >
Redfin: Vacant Homes Fetch Less Money and Take Longer to Sell
SEATTLE, May 20, 2019 -- Nationwide, vacant homes sell for $11,306 less and spend six more days on the market than comparable occupied homes, according to an analysis from Redfin, the technology-powered real estate brokerage. The analysis looked at homes that were listed and sold in 2018, comparing the sale prices and time spent on the market for home listings that were marked 'vacant' at the time they were sold with those that were not flagged as vacant. "Although vacant homes are easy for buyers to tour at their convenience, the fact that the sellers have already moved on is often a signal that buyers can take their time making an offer," said Redfin chief economist Daryl Fairweather. "It's also likely that sellers who are in a comfortable enough financial situation to own a property that's sitting empty aren't as motivated to get the highest possible price for their home as sellers who need the cash from their first home in order to buy the next one." Though vacant homes sell for less money in every metro area included in the analysis, the amount varies by location. Vacant homes come with the biggest discount compared with occupied homes in relatively affordable inland areas. Vacant homes still sell for less than occupied homes in expensive West Coast metros, but the price differential is smaller. In both Omaha, Nebraska and Greenville, South Carolina, where vacant homes are associated with the biggest discount, vacant homes sell for 7.2 percent, or about $15,000, less on average than occupied homes. In San Jose, buyers get the smallest discount on vacant homes, which sell for just 0.9 percent less than homes that aren't vacant, followed by Las Vegas (-1.5%) and Orange County (-2.3%). Vacant homes take longer to go under contract in every metro except San Jose, where they spend an average of one and a half fewer days on the market than occupied homes. "Whether occupied homes sell faster and for more money depends on a lot of factors, as everyone's tastes and preferences are different," said Billie Jean Hemerson, a Redfin agent in Orange County. "If a home is occupied and the furniture is modern, up to date and fits the space, it has a positive impact on a potential buyer's perception of the home and they may pay more than if the home were vacant. But if a seller's furnishings are dated, dark or too large for the space, buyers may offer less." Staging Vacant Homes Redfin agents suggest that although vacant homes tend to sell for less money and spend more time on the market before going under contract, staging or virtual staging can help vacant homes make a better impression with buyers. Staging involves hiring a company to bring and arrange furniture in your home to showcase its potential to buyers. Staging can be particularly impactful for homes with open spaces or unusual layouts, where buyers most often need help to see how the furniture could be arranged. Professional staging can cost several thousand dollars, depending on the number of rooms staged and the length of time. "Staging a property can have a profound effect on both the sale price and days on the market, but the main challenge of physical staging is that it's cumbersome, costly and offers no flexibility to showcase various aesthetic stylings," said Pieter Aarts, CEO and co-founder of roOomy, a leading virtual staging, CGI and 3D modeling platform. Aarts added: "Virtual staging is a cost-efficient option that gives homebuyers an ultra-realistic view of what the vacant home will look like at its full potential. It caters to today's homebuyers who are increasingly demanding immersive services and mobile augmented and virtual reality tools that allow them to evaluate a property, often times without needing to physically set foot in the home." To read the full report, complete with market-level analysis, methodology and virtual staging photos, please click here. About Redfin Redfin is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 85 major metro areas across the U.S. and Canada. The company has closed more than $85 billion in home sales.
MORE >
Realtors Midyear Forecast: Home Sales Expected to be Stronger
MORE >
Redfin Report: Birmingham, Little Rock and Charleston are the Most Affordable Places to Have a Baby
Southern metros top Redfin's ranking of places where childcare, healthcare, and upgrading to a home with an additional bedroom cost the least in an infant's first yearA baby's first year costs the most in Washington, D.C., Boston and Worcester, due to higher childcare costs SEATTLE, May 9, 2019 -- Birmingham, Alabama is the most affordable place in the country to raise an infant, costing an average of $16,383 in the first year, according to a new analysis from Redfin, the tech-powered real estate brokerage. The analysis calculated the cost of moving up from a two-bedroom single-family home to a comparable three-bedroom single-family home, or from a one-bedroom to a comparable two-bedroom condo, in 79 U.S. metro areas. Redfin added the difference in annual mortgage payments to average yearly childcare costs for the state in which the metro is located, plus uniform healthcare and baby item expenses, to come up with the total cost. Southern metros dominated the ranking of the most affordable places for a baby's first year, with Little Rock, Arkansas ranking second at $16,585 and Charleston, South Carolina coming in third at $16,566. Washington, D.C., where parents spend an average of $35,017 during a baby's first year, is the most expensive metro in the country to raise an infant, followed by Boston($31,307) and Worcester, Massachusetts($30,610). Ben Price, a Redfin agent in Birmingham, moved to the area from Chicago partly because it's a more affordable place to raise children. "With three active kids in the Chicago suburbs, my wife and I found that we were always behind, both in time and finances. The cost of living with three children was too much to handle," Price said. "At first, my wife was reluctant to consider moving to a more affordable area—but then I showed her homes for sale in Birmingham on Redfin.com. When she saw how much more house we could afford there without sacrificing in terms of school ratings, she was in. Now we own a five-bedroom, five-bathroom home in Birmingham, more than we could afford in expensive parts of the country." In Birmingham, just $1,378, or 8.4 percent, of the total cost of a baby's first year represents the annual difference in mortgage payments between a typical two-bedroom home and a three-bedroom home, while $5,858 is the cost of childcare. And in D.C., the upgrade from two to three bedrooms accounts for just $2,204, or 9.3 percent, of the total, with childcare coming in at an average of $23,666 per year. Even in expensive metros like San Jose, the $3,745 cost of upgrading from a two- to three-bedroom home is significantly lower than the $16,542 annual cost of childcare. "The most costly part of adding to your family is the time put into taking care of a new baby, whether it's you or your childcare provider," said Redfin chief economist Daryl Fairweather. "If you decide to stay at home to take care of your baby, you may have to forego income and pause your career progression. If you hire a nanny, you will need to pay them a competitive wage. And if you happen to find an affordable daycare provider, you may have to sit on a waitlist until a spot opens up for your child. That extra room for a nursery is a relatively small monthly expense compared to childcare, no matter where you live." Because childcare makes up such a significant portion of the cost of a baby's first year, the places with the most expensive childcare are the ones where it costs the most to raise a baby. For instance, Washington, D.C., where a baby's first year is most expensive, is the most costly metro in the country for childcare, and Birmingham is the least expensive for both. However, that pattern doesn't hold true in every area. Childcare in Dayton, Ohio costs about $1,000 less per year on average than it does in Grand Rapids, Michigan. But upgrading from a two-bedroom to a three-bedroom home will cost about $1,200 more per year in Dayton, which makes it a more expensive place to have a baby. "In the D.C. area, finding a home for a family in the city is becoming increasingly unaffordable, particularly in the neighborhoods with highly rated schools," said local Redfin agent David Ehrenberg. "But one thing to keep in mind is that while paying for infant childcare is costly, the city of D.C. may be less expensive than its surrounding suburbs once the child is a bit older. D.C. public schools offer free pre-K for three and four-year-olds, while local Maryland and Virginia counties do not." To read the report, including the full ranking and methodology, please click here. About Redfin Redfin is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 85 major metro areas across the U.S. and Canada. The company has closed more than $85 billion in home sales.
MORE >