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October Is Ripe for Homebuyers According to Analysis from ATTOM on Historical Home Sales
Buyers willing to close in October avoid prices well above market value; Analysis narrows in on best days to buy nationwide and best months to buy at the state level IRVINE, Calif. - Oct. 7, 2021 -- ATTOM, curator of the nation's premier property database, today released its annual analysis of the best time of the year to buy a home, which shows that the month of October, as well as the winter months, offer homebuyers the best deals – fetching lower premiums than other months of the year. According to the analysis, buyers who close in October will get the best deal compared to the spring buying season. While the premium is still above market value, homebuyers are only dealing with a 2.9% premium, as opposed to the month of May, when homebuyers are experiencing an 11.5% premium. This analysis of more than 33 million single family home and condo sales over the past eight years is evidence of the continuation of a hot sellers' market (see full methodology below). The analysis also looked at the best days to buy at the national level (December) and best months to buy at the state level. Best Days to Buy Nationally, days that fall in December offer the lowest premium for homebuyers. With December 5th seeing a 1.6% premium, December 26th a 2% premium, January 6th a 2.2% premium, November 9th a 2.3% premium and December 31st a 2.4% premium. A far cry from the month of May, where May 23rd and 27th offer a 17.4% premium, May 20th a 16.6% premium, May 16th a 15.6% premium and May 19th a 15.4% premium. Best Months to Buy by State According to the study, the states realizing the biggest discounts below full market value were Delaware (-7.9% in February); Tennessee (-7% in January); New Jersey (-4.9% in February); Maryland (-4.8% in November); and Ohio (-4.8% in January). Methodology For this analysis ATTOM looked at any calendar day in the last eight years (2013 to 2020) with at least 10,000 single family home and condo sales. There were 362 days (including leap year data) that matched this measure, 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 ATTOM provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes, and enhances the real estate data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 20TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, property data APIs, real estate market trends, and more. Also, introducing our latest solution, that offers immediate access and streamlines data management – ATTOM Cloud.
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Natural Disaster Threats Are Now Front and Center for Homebuyers
Three in four recent homebuyers report that concern over the threat of natural disasters impacts their housing decisions, according to new Realtor.com survey SANTA CLARA, Calif., Sept. 27, 2021 -- September marks National Preparedness Month, a time when Americans are reminded and encouraged to take steps to prepare for emergencies. For many people, a home is their largest asset and as natural disasters become more common, keeping it and themselves safe is an increasing concern. A new survey from Realtor.com found that 78% of recent home buyers took natural disasters into account when choosing the location of their new home. The survey of 3,026 consumers, which was conducted online by HarrisX in July 2021, found that 62% of homeowners are concerned about the threat of natural disasters, and that number was even higher for recent home buyers (75%) and among millennials (72%). Natural disasters that are most concerning to homeowners include: tornadoes (39%), severe cold or winter storms (38%), floods (35%), hurricanes (29%), earthquakes (21%), wildfires (17%), droughts (11%) and sinkholes (8%). Homeowners in rural and suburban communities were most concerned about tornadoes and severe cold/winter storms, while flooding was a top concern for those in urban areas. "Natural disasters can have enormous impacts on communities and homeowners, and with increased frequency and intensity of weather-related events, National Preparedness Month is a good reminder of how important it is to be prepared," said Realtor.com® Chief Marketing Officer Mickey Neuberger. "Our mission is to help bring people home, but it's also about helping people when their home is damaged or lost after disaster strikes, which is why Realtor.com® recently made a $200,000 commitment to help aid in disaster response efforts." With natural disasters becoming more frequent and severe, nearly half (47%) of consumers are more concerned today about the threat of natural disasters to homeownership compared to five years ago; 44% said their level of concern is unchanged and only 9% feel less concerned. For some, the threat of future natural disasters could impact their decision about whether to move or sell their home. One-third (34%) of surveyed consumers would consider proactively selling their home, moving or both to avoid future natural disasters, while 66% said they aren't considering either. To help buyers make good home buying decisions and increase awareness about a home's flood risks, which are among the most common and costly disasters in the U.S., Realtor.com® was the first listing portal to include flood risk information on for-sale and off-market properties. As of August 2020, all properties on Realtor.com® now display a Flood Factor® – developed by the First Street Foundation – with a score between one (minimal risk) and 10 (extreme risk) that represents its cumulative risk of flooding over a traditional 30-year mortgage. Over the past year, site users have viewed flood information on Realtor.com® more than 150 million times. The feature is heavily viewed on properties in hurricane-prone states like Florida and Texas, as well as in states all along the eastern seaboard. While being prepared can't prevent a disaster it can help homeowners recover faster; when asked how prepared they were for a natural disaster specific to their area, two thirds (68%) of surveyed consumers said they were very or somewhat prepared and less than one third (32%) said they were only somewhat or very unprepared. To bring help and hope to those who are impacted by natural disasters, Realtor.com® has donated $200,000 to the REALTORS® Relief Foundation, a charitable organization dedicated to providing housing-related assistance to victims of disasters. The REALTORS® Relief Foundation, is administered by the National Association of REALTORS®, which covers 100 percent of RRF's administrative costs so that every dollar donated goes directly to disaster relief efforts. Methodology: Realtor.com® commissioned HarrisX to conduct a national survey of consumers. The total sample size was 3,026 adults. The survey was carried out online from July 21-23, 2021. The sampling margin of error of this poll is ±1.8 percentage points. The figures represent a national view of U.S. adults. Results were weighted for age, gender, region, race/ethnicity, and income where necessary to align them with their actual proportions in the population. About Realtor.com® Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, Realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, Realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit Realtor.com.
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NAR Identifies America's Top 10 Commercial Office Markets of 2021
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Student Loan Debt Holding Back Majority of Millennials from Homeownership
WASHINGTON (September 14, 2021) -- Sixty percent of non-homeowning millennials say student loan debt is delaying their ability to buy a home, by far the most affected population, according to a new poll released today by the National Association of Realtors. The findings also show that Americans burdened with high student debt see the impact on their daily lives. They often must choose between investing in their retirement, purchasing a home, getting married, starting a family, or general savings. NAR partnered with Morning Consult on the report The Impact of Student Loan Debt.* "Housing affordability is worsening, leaving future home buyers with student debt at a severe disadvantage," said NAR President Charlie Oppler, a Realtor® from Franklin Lakes, N.J., and the CEO of Prominent Properties Sotheby's International. "Younger Americans shouldn't have to choose between education and homeownership, and NAR continues to pursue policies that ensure the American dream remains available and accessible for those still paying off their college education." The new research also uncovers that only 23% of student loan debtholders understood the costs of attending college before taking out loans. Moreover, 35% of those student loan debt holders did not fully understand their potential for earnings following graduation. According to the report, 51% of all student loan holders say their debt delayed them from purchasing a home. Thirty-six percent of student loan debtholders say student loan debt delayed their decision to move out of a family member's home, a percentage that rises to 52% among Black debtholders. Ultimately, the report shows that 31% of millennials and 28% of Black student debtholders would use their additional funds to purchase a home in the future with no student loan debt. "Aside from just purchasing a home, this report finds that more than half of those with student loan debt have delayed some form of major life choice," Oppler continued. "Student loan debt isn't just seeping into housing affordability. It's also plaguing other aspects of people's lives." To address the growing debt burden, NAR supports a multipronged approach. Financial education should be expanded to aid students as they face decisions about financing their education, while aid programs should be simplified. For those who hold debt, opportunities to consolidate and refinance debt at lower rates will help debtholders lower monthly debt payments, make large purchases, and make wise life choices. Finally, NAR favors expanding tax preferences for employers who assist employees with their student debt as well as tax forgiveness for debtholders who have their debt forgiven or paid off by their employer. NAR has been collecting and examining research during the past eight years to gauge the impact of student loan debt on future homebuyers. The data pattern now affirms that student loan debt is one of the most significant barriers standing between a potential buyer and the ability to purchase a home. Today's new findings build on last year's annual survey of successful homebuyers, Profile of Home Buyers and Sellers, which showed that student loan debt was the most significant factor delaying their ability to save among buyers who had difficulty saving for a down payment. This research found Black homebuyers were more than twice as likely to have student debt than White homebuyers, with a median amount of $10,000 more than White buyers. The Impact of Student Loan Debt poll was modeled off NAR reports from 2016 and 2017, with a narrower scope. The research themes are comparable, but the newest report considers the current federal government stimulus package and how the COVID-19 pandemic has affected debt in our country. The National Association of Realtors® is America's largest trade association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industries. * This poll was conducted by Morning Consult, on behalf of the National Association of REALTORS®, between June 10–16, 2021, among a sample of 1,995 student loan debtholders. The interviews were conducted online. Results from the full survey have a margin of error of +/- 2 percentage points.
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CFPB Report: Renters at Risk as COVID-19 Safety Net Ends
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The Best Home Buying Deals of The Year Are Here, According to Realtor.com
The week of Sept. 12 kicks off the best time to buy and is the optimal week to shop for a home in New York City, Los Angeles, Boston, Denver, Detroit, Minneapolis, and Portland SANTA CLARA, Calif., Sept. 13, 2021 -- The best time to buy a home in America is officially here. Between Sept. 12 and Oct.17, the majority of markets across the country will hit their home buying sweet spot with more homes for sale, lower prices and less buyer competition compared to the average week of the year, according to Realtor.com's Best Time to Buy Report. This week kicks off the season with optimal home buying conditions in New York, Los Angeles, Boston, Denver, Detroit, Minneapolis, and Portland, but the majority (18 markets) won't hit their prime until the week of Oct. 3 (see chart below for optimal weeks by market). Those who buy a home during their market's best time to buy week on average will see 166,000 (31%) more listings than the average week of the year and have an additional 100,000 more new listings to choose from nationwide. They will have 18% less competition from other buyers than the peak and 6% less than the typical week. They could see prices $10,000 (2.6%) below their seasonal high and will have 7 more days, on average, to consider a home before it's gone. "Home prices peaked in the summer, and new listings continue to come on the market helping slow the pace of sales -- which is good news for homebuyers," said Danielle Hale, chief economist, Realtor.com®. "As families across the country focus on getting back into school routines, there are fewer buyers in the market, creating a great opportunity especially for first-time homebuyers to make a purchase with somewhat less competition." Based on an analysis of listing data since 2018, Realtor.com® has found that this time period offers the best balance of market conditions for homebuyers. While the current market is still challenging, especially for first-time homebuyers, the key factors -- available homes and buyers in the market -- align best starting Sept. 12 to reduce prices and competition with the majority of major metro areas hitting their sweet spot by Oct. 17. There will be more homes to choose from Although the year began with extreme inventory shortages, the market began to consistently see more listings this summer adding 100,000 or more new listings in 15 of the last 17 weeks. On average, the best time to buy in each market will mean 166,000 (31%) more active listings than the average week and have an additional 100,000 new listings to choose from nationwide. That is 46% more than the start of the year. The week of Oct. 3, we expect to see 7.2% more active listings than the average week, and 17.6% more than the start of a typical year. If 2021 follows the typical seasonal pattern, there should be around 705,000 listings on the market in October nationwide, which is roughly 100,000 more active listings than during the peak summer season in July. Buyers will face less competition Fall sees a seasonal slowdown partly driven by the opening of schools, as many buyers put their home search on hold when their children return to the classroom. July is typically the peak for homebuyer demand, as measured by views per property on Realtor.com®. The summer has the highest concentration of buyers looking at each home for sale, which translates to competition for buyers looking to lock down a home. On average, the best time to buy in each market will see 18% less competition than the July peak and 6% less than the average week. Prices may begin to dip Prices and affordability remain at the forefront of many buyers' minds, especially after the double-digit price growth earlier in the year. During the best week to buy, homes may be more affordable. During the week of Oct. 3 prices could dip 2.6% compared to a typical season high. On a median listing price of $385,000, buyers could save approximately $10,000. And in the largest housing markets, prices could dip more than 10% from their peak. The best week to buy is also a peak period for price reductions, with an average of 7.0% of homes dropping their price. Based on inventory estimates, this could mean roughly 50,000 homes nationally will see price reductions. An added help to buyers: mortgage rates remain near historical lows (2.87% in August). Homes are selling a bit slower Homes have been selling at a blistering pace, forcing many buyers to make a purchase sight unseen, or to make more concessions to close a deal. But the best week to buy should bring some relief to those who need more time to make their decision. In June, the national median time on market for a home was just 37 days, down from 56 days in 2020. On average, home buyers will have 7 additional days to consider a home. During the week of Oct. 3, we expect the pace to slow by 18%, compared to the peak pace earlier in the year. That means by October, it should slow to about 44 days. Best Time to Buy for the Top 50 Largest Metro Areas Methodology: Realtor.com® analyzed six supply and demand metrics at a national and metropolitan level using data for 2018-2019 period (2020 data was omitted due to anomalies caused by the pandemic). Those metrics include: 1) listing prices, 2) inventory levels, 3) new "fresh" listings, 4) time on market, 5) homebuyer demand (Realtor.com® views per property), and 6) price reductions. Each week of the year was ranked using each of those metrics by how favorable the conditions were for buyers (e.g. high score for lower prices). The week with the highest composite score across all metrics was considered the best time to buy. This week represents a balanced view of market conditions favorable for buyers. About Realtor.com® Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, Realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, Realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit Realtor.com.
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U.S. Home Price Index Annual Growth Reaches All-Time High in July, CoreLogic Reports
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CoreLogic Investor Homebuying Report Shows Slowing Purchase Activity Amid Shifting Market Dynamics: A Decade in Review
Report shows small investors make up a more significant share of real estate purchases Significant migration out of California pushes investor activity to more affordable areas IRVINE, Calif., August 30, 2021 -- CoreLogic, a leading global property information, analytics and data-enabled solutions provider, shared its Investor Homebuying report highlighting home U.S. purchase trends between 2011 and 2020. In the report, CoreLogic investigates activity nationally by both price tier and investor size and looks at which regions have had the most and least activity. A decade ago, there was a flurry of home purchase activity following the 2006 housing market crash as investors began capitalizing on low-cost, high-growth properties. However, this purchase activity peaked in 2018 and since then, the pace of investment has slowed. In 2019, the investment rate (the share of home purchases made by investors) in the U.S. housing market was 16.3%, and by 2020, it had slowed to 15.5%. Despite the decreasing rates, overall, investors have maintained a strong presence in the market during the last 10 years. Smaller investors are making up a more significant share of investors than at any point in the past and continue to gain their market share at the expense of their larger counterparts. This is likely due to large out-migration from expensive areas to more affordable ones, allowing smaller investors to snap up properties at lower rates. "At this critical juncture — the first year into the new decade and continually moving farther away from the pandemic — when the hot housing market cools down, we may see investor activity increase as they try to buy more properties at lower prices," said Molly Boesel, principal economist at CoreLogic. "Although investors seem to have given some of their coveted market share to buyers, it's hard to say how long this trend will last — or what the long-term implications will be on a larger scale." State and Metro Takeaways California dominated investor activity in 2011, with Los Angeles, San Jose, San Diego, San Francisco, Sacramento, Stockton and Riverside all in the top 10 areas with the highest investor activity. Despite this, no California metro areas made the top 10* in 2020. Cities in the Mountain West, the western Midwest and the South led investment activity by 2020, and investment has grown in metro areas like Boise, Idaho; Phoenix and Salt Lake City, as they tend to have lower prices and growing populations fueled by out-migration in California. Download the report here. Methodology: This report uses the industry-leading CoreLogic public record database. An investor is defined as an entity (individual or corporate) who retained three or more single-family properties simultaneously within the past 10 years. This report enhances the definition of an investor purchase that was introduced in a 2019 CoreLogic report. The previous report identified an investor purchase by looking for a corporate or non-individual identifier on the deed. Examples include LLCs, CORPs, and INCs, to name a few. This report includes those purchases but in addition, uses probabilistic record linkage methods to identify more investor purchases by seeing how many properties a person with the same name and address retains at any one time. About CoreLogic CoreLogic is a leading global property information, analytics and data-enabled solutions provider. The company's combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.
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Buying a Starter Home is More Affordable than Renting in Nearly Half of the Biggest U.S. Metros
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Three Quarters of Millennials Would Consider a 3D Printed Home, According to Realtor.com Survey
Major selling points include affordability, energy efficiency and resistance to natural disasters SANTA CLARA, Calif., Aug. 20, 2021 -- 3D printed home technology has hit the mainstream, with builders claiming these homes can be built in half the time and for half the cost. But will people actually buy them? A new survey from Realtor.com found that 66% of all consumers and 75% of millennials would consider living in a 3D printed home. The survey also found that 30% of all respondents and 43% of millennials think that 3D printed homes will replace traditional methods of homebuilding. The survey of 3,026 consumers, which was conducted online by HarrisX in July 2021, found that 42% have heard about 3D home printing technology. That number was much higher (63%) for recent home buyers, suggesting that home searchers are doing their research when it comes to new technology. "Over the past decade, as the homebuilding industry focused mainly on the upper-end of housing, expecting younger generations to favor renting, the price of construction has pushed new homes out of reach for many first time home buyers," said George Ratiu, senior economist, Realtor.com®. "With the largest generation in U.S. history embracing homeownership, and the pandemic accelerating the move toward suburban markets, new home construction plays a pivotal role in meeting the growing demand. As technology is advancing novel building solutions, anything we can do to reduce the cost of new construction and increase the number of available homes, especially at an affordable price point, will help to restore balance in this strong seller's market." Factors that would persuade people to live in a 3D printed home include: lower cost (54%), more energy efficient (51%), more resistant to natural disasters (42%), faster to build (41%), more customizable (39%), and produces less waste than traditional building methods (32%). However, some consumers are still wary of the technology. When asked what would hold them back from living in a 3D printed home, the most common response was that they want to wait and see how the technology will pan out over time (36%). Other responses include: prefer the aesthetics of a traditional home (22%), think it won't last as long (22%), don't want their home to look exactly like the neighbors (18%), prefer an existing home to new construction (14%), and don't trust the technology (14%). Twenty-two percent of respondents said nothing would hold them back from living in a 3D printed home. "While the technology is still somewhat nascent, our survey data shows that consumers are very interested in 3D printed homes. While there have only been a small number of 3D printed homes sold to date, as the technology continues to advance, we could see it add more affordable homes to the housing market. For the rising generations of digital natives, new building technology may provide a sustainable bridge toward homeownership," said Ratiu. Methodology: Realtor.com® commissioned HarrisX to conduct a national survey of consumers. The total sample size was 3,026 adults. The survey was carried out online from July 21-23, 2021. The sampling margin of error of this poll is ±1.8 percentage points. The figures represent a national view of U.S. adults. Results were weighted for age, gender, region, race/ethnicity, and income where necessary to align them with their actual proportions in the population. About Realtor.com® Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, Realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, Realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit Realtor.com.
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Opportunity Zone Redevelopment Areas Still Reaping Benefits of National Home-Price Boom in Second Quarter 2021
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Realtor.com's 2021 Hottest ZIP Codes in America Are Hotter Than Ever Before
Homes sell in less than a week in the 2021 Hottest ZIPs - three times faster than last year's hottest ZIPs SANTA CLARA, Calif., Aug. 12, 2021 -- The 2021 Hottest ZIPs in America are hotter than ever before, with homes in the top 10 selling three times faster than last year's list, according to the seventh annual Realtor.com Hottest ZIP Codes Report released today. Among this year's top 10, a few key factors are driving buyer demand, including homes listed at relatively affordable asking prices and with ample space for the money, as well as sizable populations of high-income millennials and close proximity to local amenities and outdoor activities. The 10 Hottest ZIP Codes in America, in rank order, are: 80916 East Colorado Springs, Colo. (Colorado Springs); 14617 West Irondequoit, N.Y. (Rochester); 01960 Peabody, Mass. (Boston); 03103 Manchester Proper, N.H. (Manchester); 27616 Brentwood, N.C. (Raleigh); 43228 Lincoln Village, Ohio (Columbus); 01757 Milford, Mass. (Worcester); 03301 Concord Proper, N.H. (Concord); 48336 Farmington, Mich. (Detroit); and 37067 Franklin, Tenn. (Nashville). The U.S. is in the middle of one of the hottest housing markets of all time. Home prices reached record-highs in five of the first six months of 2021, which has helped fuel demand for the relatively affordable areas on Realtor.com®'s Hottest ZIP Codes list. Homes in the top 10 are flying off the market in six days on average, 31 days faster than the rest of the country and 10 days faster than their respective metros in June – and three times faster than last year's list (18 days). Additionally, Realtor.com® home listing views are up 156% year-over-year in these areas, which is 3.9 times higher than June's national average. "By definition, the ZIPs that make our annual hottest report are very competitive, but this year, they are white hot. Homes in this year's ZIPs are under contract in less than a week, which is three times faster than the contract times for last year's hottest markets," said Realtor.com® Chief Economist Danielle Hale. "While there's no question that buyers have faced a challenging housing market during the pandemic, our Hottest ZIPs list also highlights some of the silver linings. The rise in remote work has given some buyers more flexibility to live wherever they want, and many are finding larger homes at lower prices, as well as a higher quality of life, in the 2021 Hottest ZIPs." Smaller budgets buy bigger homes in Hottest ZIPs With demand for more space being met with a lack of affordable housing inventory, Americans are scouring the market for areas where they can get more home for their money. In seven of this year's top 10 Hottest ZIPs, median asking prices were 27.6%, or $106,000, lower than the national average in June. Eight of the top 10 saw median listing prices that were lower than in their overall metro areas in June and five ZIPs have asking prices that were at least 20% lower, including: No.1 ZIP 80916 in East Colorado Springs, which is 36% below overall Colorado Springs, along with West Irondequoit (ZIP 14617), 27.9% lower; S. Manchester Proper (ZIP 03103), 23.2% lower; Brentwood (ZIP 27617), 22.4% lower; and Lincoln Village (ZIP 43228), 21.6% lower. Homebuyers are also finding more space for their money in the 2021 Hottest ZIPs. At a median of 1,850 square feet, homes in the Hottest ZIPs are 110 square feet larger than the typical U.S. home for sale, and each square foot is priced on average 3.7% lower than in surrounding metro areas, giving buyers a chance to get more home for their money. Many of these ZIPs are starter-home neighborhoods in metros where homes are larger. The three Hottest ZIPs where buyers get the most bang for their buck are: West Irondequoit (ZIP 14617) at $118 per square foot; Lincoln Village (ZIP 43228) at $146 per square foot; and Farmington (ZIP 48336) at $159 per square foot. Hottest ZIPs reside in more suburban metros with higher millennial incomes The 2021 Hottest ZIPs also show skyrocketing buyer interest in more suburban areas with strong millennial job markets. Among the 2021 Hottest ZIPs, only Peabody, Mass. (ZIP 01960) and Farmington, Mich. (ZIP 48336) are located in one of the 20 largest U.S. metropolitan areas by population: Boston and Detroit, respectively. The remaining ZIPs are in relatively less-dense secondary metros, with populations under three million. Overall, this year's top 10 ZIPs are located an average of 16 miles, or 21 minutes, from the downtown areas of the surrounding metros. While most of the Hottest ZIPs don't offer a robust city life, they do offer strong job markets where younger Americans are gaining ground. In fact, the median household income for millennials aged 25-34 in the Hottest ZIPs is $71,127, which is 6.7% higher than the national average for this group at $66,661. Older millennials (aged 35-44) bring home a median income of $88,698 in the 2021 Hottest ZIPs, 6.3% above the national average for this group. With many now 40-years-old, older millennials have established a solid financial foundation in the Hottest ZIPs where their dollars go further. "Prior to COVID, homeownership may have been a few years off for younger millennials, many of whom are building their careers, but flexible work arrangements are now enabling some to make a homebuying play. Building on older millennials' success establishing themselves as homeowners in up-and-coming areas across secondary metros, younger millennials are pioneering into new ZIPs where relatively higher incomes make them more competitive buyers," said Realtor.com® Senior Economist George Ratiu. Hottest markets are homeownership hotspots for younger and older millennials America's Hottest ZIP Codes also have a proven track record with millennial homeownership. In fact, young millennials, ages 25-34 years old, in the Hottest ZIPs have a homeownership rate of 46%, which beats their national average of 44%. Moreover, half of the top 10 ZIPs meet or beat the national homeownership rate for young millennials, including: West Irondequoit (ZIP 14617) at 82.8%, Brentwood (ZIP 27616) at 57.1%, Peabody (ZIP 01960) at 49.8%, Farmington (ZIP 48336) at 54.0% and Milford (ZIP 01757) at 44.3% Older, more established millennials are also successful in the top 10 Hottest ZIPs. In fact, 73% of millennials aged 35-44 own homes in these areas versus their national average of 57%. Half of the top 10 ZIPs have older millennial homeownership rates that beat or meet the national average, including: West Irondequoit (ZIP 14617) at 85.8%, Brentwood (ZIP 27616) at 67.3%, Farmington (ZIP 48336) at 65.7%, Milford (ZIP 01757) at 58.9% and Peabody (ZIP 01960) at 57.9%. Preparation is key for any homebuyer in today's frenzied market, especially younger buyers with fewer resources. In addition to staying up-to-date on housing market insights and tips, home shoppers can use tools like the Realtor.com® Real Estate app, where they can sign up for custom search alerts about new listings and price drops on saved homes. 2021 Hottest ZIP Codes in America 1) ZIP 80916 East Colorado Springs, Colo. (Colorado Springs) – ZIP 80916 is located on the east side of town and is home to the Colorado Springs Airport and Peterson Airforce Base. The area is known for its affordable homes, built in the 1970s and 80s, and the quick commute to military bases and defense contractors, such as Lockheed Martin and Northrop Grumman. In recent years, the ZIP has seen an influx of buyers from California and Texas looking to enjoy the outdoors and take advantage of top-rated schools including Irwin Charter High School, rated eight out of 10 by GreatSchools.org. On the weekend, locals enjoy hiking and rock climbing in places like Garden of the Gods and Pike's Peak. Colorado Springs is no stranger to the Hottest ZIPs list, ZIP 80911, also in Colorado Springs, ranked No. 1 in 2020. Housing Stats: Homes in ZIP 80916 spend an average of four days on market, eight days less than the Colorado Springs metro as a whole and 33 days less than the national median. The median listing price is $318,000, up 19.8% year-over-year, but 36% lower than the metro and 17% lower than the national median. While this ZIP lags behind in homeownership with fifty-one percent of residents and 40% of younger millennials owning a home, it shows promise thanks to young households. Seventy-four percent of the population in this ZIP is under age 45. 2) ZIP 14617 West Irondequoit, N.Y. (Rochester) – ZIP 14617 is in the northwestern part of the state on Lake Ontario and is part of New York's third largest metro area. Rochester offers a unique blend of history and innovation: Homes and commercial buildings date back a century or more, while the city's downtown is undergoing development and revitalization. During COVID, the area drew home buyers from Boston and New York City looking for more affordable real estate. In addition to a great school system, Iroquois Middle School is rated eight out of 10 on GreatSchools.org, and lower cost of living, Rochester offers a family-friendly environment, including more than 3,500 acres of nationally recognized parks, outdoor festivals, amusement parks, baseball games at Frontier Field, the Buffalo Bills' training camp in the warmer months and nearby ski slopes and sledding hills in the winter. No stranger to Realtor.com®'s Hottest ZIPs list, West Irondequoit (ZIP 14617) ranked No. 3 last year. Housing stats: Homes in ZIP 14617 sell in an average of just six days, six day faster than the metro area and 31 days faster than the national median. Median listing price is $175,000, up 9.4% from last year, but 28% and 55% lower than metro and U.S. respectively. Eighty percent of residents in ZIP 14617 are homeowners, and younger millennial homeownership is 83% -- both well above the national average. 3) ZIP 01960 Peabody, Mass. (Boston) – ZIP 01960 is part of Massachusetts' North Shore, just 20 miles northeast of Boston. Near major highways like I-95, Peabody offers convenient access to vacation spots along New England's rocky coastline and into the ski mountains of New Hampshire and Maine. Homes are more affordable compared to Boston proper and its adjacent suburbs. Locals view Peabody as its own city, filled with hotels and restaurants, as well as the Northshore Mall, one of the region's largest shopping centers. With its abundance of single-level, ranch-style houses, more affordable asking prices, lower taxes and retirement-friendly lifestyle, the area attracts empty nesters looking for homes that will be more manageable in their retirement years. Peabody ranked No. 5 on Realtor.com®'s Hottest ZIPs list in 2018. Housing stats: Homes in Peabody sell in an average of three days, 19 days faster than the Boston metro area and 34 days faster than the national median. The median listing price is $625,000, 11% lower than the metro, but 62% higher than the national median. Sixty-three percent of residents in this ZIP are homeowners and, while millennial homeownership is above the U.S. average, just 10% of households are aged 25-34. 4) ZIP 03103 Manchester Proper, N.H. (Manchester) – ZIP 03103 is on the southside of New Hampshire's most populous city, and offers affordability, a healthy job market and access to outdoor activities such as hiking and skiing. Manchester's bustling downtown, Elm Street, features a number of restaurants and Manchester's Verizon Wireless Arena for hockey games and concerts. The city also boasts Northeast Delta Dental Stadium, home to the city's double A Fisher Cats baseball team. The state has no income or sales tax, and ZIP 03103 boasts more affordable homes than some of the neighboring towns. The area's biggest employers are Elliot Health Systems, Southern NH University and Catholic Medical Center, but there is also a burgeoning start-up scene. About 20 miles from the Mass. border, Manchester has become a popular destination for Boston commuters looking for affordability and outdoor space, a trend which became even more prevalent during the pandemic. Housing stats: Homes in ZIP 03103 spend an average of five days on the market, moving five days faster than the metro and 32 days faster than the national average. Median list price is $315,000, up 30% year-over-year, but 23% lower than metro and 18% lower than the U.S. average. Homeownership lags behind national figures here with 46% of residents in this ZIP and 35% of millennials owning their homes, but the area is young. Sixty-one percent of the population is under age 45. 5) ZIP 27616 Brentwood, N.C. (Raleigh) – ZIP 27616 is centrally located about 20 minutes from downtown Raleigh, Rolesville and Wake Forest. This ZIP offers a range of homes from townhomes to luxury homes priced from $600,000-$700,000. Over the past year, the area has seen an influx of buyers from New York and major metro areas on both coasts who are interested in seeing their dollar go further. The area's largest employer is Duke University and Health System, but the Research Triangle region is home to a number of local tech companies like SAS Institute and satellite offices for IBM and Cisco Systems. One of the biggest perks of the area is its planned communities, including 5401 North which offers parks, restaurants, schools, shops and community events. Housing Stats: Homes in ZIP 27616 spend an average of five days on market, 10 days less than the Raleigh metro as a whole and 32 days less than the national median. The median listing price is $319,000, up 0.8% year-over-year, and 22% lower than the metro and 17% lower than the national median. Sixty-seven percent of residents in ZIP 27616 are homeowners and younger millennial homeownership is 58%. 6) ZIP 43228 Lincoln Village, Ohio (Columbus) – ZIP 43228 is just 10 miles west of downtown Columbus and offers affordable home options for those looking to size up for a growing family, or those sizing down. There are plenty of state and city parks with biking, hiking and walking trails, while the Short North Arts District has lots of restaurants and shopping. Employers range from venture capital firms and startups like Drive Capital and Root Insurance, to well-known names such as Nationwide Insurance and Wendy's. For those who enjoy sports, there's Ohio State athletics, the NHL's Blue Jackets, AAA baseball at Huntington Park and the Columbus Crew soccer team. Schools in the area are rated highly including Columbus Preparatory Academy, rated eight out of 10 by GreatSchools.org. Thanks to its affordability, Columbus has been seeing an influx of people moving from bigger cities like New York City and Chicago. Housing stats: Homes in ZIP 43228 sell in an average of just five days, 10 days faster than the metro area and 32 days faster than the national average. The median listing price is $235,000, up 56.7% from last year, but 22% and 39% lower than the metro area and the U.S., respectively. Homeownership lags a bit in this zip. Forty-two percent of residents are homeowners, while the millennial homeownership rate is 33%. However, it has plenty of young people, with 69 percent of the population under age 45, 7) ZIP 01757 Milford, Mass. (Worcester) – ZIP 01602 is located on the southeast side of Worcester and just an hour outside of Boston, offering quick access to both areas' large job markets. Although Milford has lost its primary commuter rail access during the pandemic, the ZIP is within 10 minutes of the Mass. Pike, which leads straight into Boston. The area's largest employer is Dell EMC, but the rise in remote work is making the area a more attractive option for young professionals who don't need to commute into the city every day. Buyers will find their city-level salaries can purchase a lot more house in Milford, where home prices are not only lower than Boston, but have declined slightly since last year – a rarity in today's market. And with plenty of hiking and biking trails and breweries like CraftRoots, Milford is attracting younger buyers ready to pursue the full-time hipster lifestyle. Housing stats: Homes in Milford spend an average six days on market, 11 days less than the Worcester metro as a whole and 31 days less than the national median. The median listing price is $455,000, 6% and 18% higher than the metro area and the national median, respectively, but notably below nearby Boston's $699,000 median asking price. Sixty-two percent of residents in this ZIP are homeowners and millennial homeownership is 44% among those aged 25-34, and 59% in the 34-44 age bracket. 8) ZIP 03301 Concord Proper, N.H. (Concord) – ZIP 03301, located in the heart of New Hampshire's capital city, is the state's political and cultural center. Its historic downtown boasts two performing arts centers and three museums, including the McAuliffe-Shepard Discovery Center, which features interactive space-themed exhibits and a planetarium. With no state income or sales tax, and relatively affordable housing options, Concord is a budget-friendly place to live. Locals enjoy easy access to New Hampshire's lakes region and the White Mountains for outdoor recreation. The area's outdoor access and affordability make it attractive to a wide range of demographics. Concord's largest employers are Concord Hospital and Steeplegate Regional Mall, but the recent boom in remote work has made Concord an even more attractive place to live. Housing stats: Homes in ZIP 03301 spend an average of nine days on the market, eight days less than the metro area and 28 days less than the U.S. average. The median list price is $343,000, up 14.4% year over year, but still 10% and 11% lower than metro and U.S. medians, respectively. Homeownership lags behind in this ZIP where 47% of residents are homeowners, and millennial homeownership is below the national average at just 26%. 9) ZIP 48336 Farmington, Mich. (Detroit) – ZIP 48336 is a commuter-friendly town with easy access to Detroit – only 15-20 minutes away by car – and nearby Southfield and Ann Arbor. Farmington is the closest suburban neighborhood to the city where home buyers can still get both land and a substantially-sized home (typically between 2,000-3,000 sq ft). In addition to affordability and space, buyers with families are drawn to this "bedroom community" because of its many desirable schools like Farmington High School, rated a seven out of 10 on GreatSchools.org and proximity to universities like Michigan State and several hospitals, as well as community events and outdoor spaces. You can find a good mix of housing styles, sizes and price ranges – there are options for first-time buyers and also those looking for "trophy homes" – and the little downtown area has a small movie theater, shopping and restaurants. Housing stats: Homes in ZIP 48336 spend an average of just eight days on the market, 13 and 29 days faster than metro and U.S., respectively. The median listing price is $244,000, up 8.6% from last year, but 13% lower than the metro area and 37% lower than U.S. Sixty-four percent of residents are homeowners and the millennial homeownership rate is above the national average at 54%. 10) ZIP 37067 Franklin, Tenn. (Nashville) – ZIP 37067 is located just 21 miles from downtown Nashville. It's an easy drive to Music City's urban attractions, but the rolling hills, farms, open space and beautiful landscape feel far away. The historic town, which is beloved for its classic Southern charm, hospitality and welcoming community, is just minutes from modern amenities like Whole Foods Market and LifeTime Fitness. The downtown Main Street boasts annual family festivals and boutique shopping. With some of the best public schools in Tennessee, including Grassland Middle School and Moore Elementary School, both rated nine out of 10 on GreatSchools.org, and a significantly lower cost of living than the national average, Williamson County has seen an influx of residents looking to flee more crowded and expensive areas during the pandemic. Housing stats: Homes in ZIP 37067 spend an average of just five days on the market, moving 10 days faster than the metro area and 32 days faster than the U.S. average. The median listing price is $847,000, up 30.6% from last year, and 97% and 120% higher than the metro and U.S., respectively. Fifty-eight percent of residents of this ZIP are homeowners – on par with the national average – but the home ownership rate among millennials is 35%. Realtor.com® 2021 Hottest Zip Codes: Top 10 Housing Metrics (June 2021) Methodology Realtor.com® analyzed over 29,000 ZIP codes based on the time it takes properties to sell and how frequently homes are viewed in each ZIP code from January-June, 2021. Eligible ZIP codes had at least 13 active listings each month to calculate a Hotness ranking. Limited to one ZIP code per metropolitan area. About Realtor.com® Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, Realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, Realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit Realtor.com.
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Homeowner Equity Surges Across U.S. During Second Quarter in Yet Another Sign of a Healthy Housing Market
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Realtor.com Investor Report: Top Markets Where Investors Are Impacting the Inventory Crunch
Nationally, investors took more inventory off the market than they contributed in April; their purchases represented 5.7% of all home sales SANTA CLARA, Calif., July 29, 2021 -- Despite the common perception that investors are always in competition with everyday buyers, new findings from the Realtor.com Investor Report shows that isn't always the case. According to the data, investors are exacerbating the inventory shortage in 31 of the top 50 U.S. markets, but in roughly 19 markets – including Atlanta, Dallas, Baltimore, Los Angeles and San Francisco – they are actually helping to replenish the number of homes for sale. Realtor.com® analyzed U.S. deed records from January 2000-April 2021 to determine the number of investor sales versus purchases in the 50 largest U.S. markets. In this report, areas where investors are contributing inventory refers to places where investors are selling more homes than they are buying. Places where investors are taking away inventory are locales where investors are buying more homes than they sell. "Today's buyers are facing a tough market and data shows they aren't just competing with each other. With deep pockets and more flexibility, investors can be daunting competition for the typical homebuyer. Right now, data shows investors are buying more homes than they are selling, and while they get a lot of attention in today's market, it's worth remembering that they can also contribute to inventory levels," said Realtor.com® Chief Economist Danielle Hale. "Whether a market is appealing to investors depends on a variety of factors, including how local home prices compare to rents. When home prices are rising and rents are more stagnant, investors are more likely to sell off properties and contribute inventory. On the other hand, the higher rents are compared to home prices the more attractive the market is to investors looking to buy homes and convert them into rental properties." Investors help buyers in big metros with limited homes for sale In April, investors added to the number of homes on the market in 19 of the 50 largest U.S. metros, with Atlanta (+399 homes), Dallas (+239 homes), Baltimore (+188 homes), Los Angeles (+112 homes) and San Francisco (+93 homes) seeing the biggest contributions. Compared to the markets where investors took away inventory in April, these metros tend to be bigger, with fewer homes for sale and higher listing prices. Compared to nationwide inventory declines in April (-53%), the top 10 markets where investors are contributing saw a smaller drop, at an average -44% during the same timeframe. However, some of these metros saw even bigger inventory gaps from last year, including the two markets where investors contributed the most inventory in April: Atlanta (-63.4%) and Dallas (-69.7%). At an average population size of 5.5 million, these markets also encompass some of the nation's biggest tech hubs, such as San Francisco and San Jose. Home to some of the most expensive real estate in the U.S., these metros had an average median listing price of $668,000 in April, well above the national median price of $375,000. Hale added, "High home prices, slower rent growth, and uncertainty over the future of work in these markets are likely causing investors to reevaluate their property portfolios in these areas. And with homes still selling quickly, even in these metros, an investor deciding to sell can look forward to being able to reposition their dollars elsewhere in a very short period of time." Investors are snatching up homes in smaller markets with higher inventory levels Investors took away inventory in 31 of the largest U.S. markets, led by Phoenix (-429 homes), Charlotte, N.C. (-287 homes), Miami (-256 homes),Tampa (-224 homes) and Chicago (-221 homes). Compared to the markets where investors helped buyers, these metros are smaller and less crowded, with more available home listings relative to all households, lower home prices, and relatively higher rental price growth. While average home prices are more affordable in these top markets, rental prices grew at a faster year-over-year pace on average (+4.6%) than in top markets with more investor sales (+0.1%) in April. In Tampa, where the $327,000 median listing price was below the national average of $375,000 in April, rents grew 4.5 times faster than the national rate, up 12.4% year-over-year. The markets where investors are competing with homebuyers and taking away inventory tend to offer the perfect storm of factors for converting homes into rental properties. These markets have relatively more homes available, at 3.7 properties for every 1,000 residences versus 2.8 in markets where investors are adding to inventory. While these metros have experienced more rapid year-over-year inventory declines in April (-57%), rapid rent price gains keep calculations favorable for buying which means that until rent trends change, investors are likely to be homebuyer foes, not friends. "Getting ahead in today's market is tough, especially when you are contending with professional investors," said Lexie Holbert, home and living expert at Realtor.com®. "Setting up price alerts on Realtor.com® is a really helpful trick for getting ahead of the competition. When a home that meets your parameters hits the market, you'll get a notification so you can get in and try to make an offer." Realtor.com® Investor Report, April 2021 – Top 10 Markets by Net Positive Contributions to Inventory, April 2021 Realtor.com® Investor Report, April 2021 – Top 10 Markets by Net Negative Contributions to Inventory Realtor.com® Investor Report, April 2021 – 50 Largest U.S. Metropolitan Areas Methodology In this analysis we examined deed records dating from January 2000 to April 2021 nationally and in the 50 largest metro areas. We included only single family homes, condos, townhomes and rowhomes and we excluded multi-family buildings which is not a market the typical homebuyer is competitive in. We attempted to capture business-oriented, buy and hold investor purchases. We defined an investor as a buyer or seller that was/is an absentee-owner and that has a name which includes the following: LLP, LP, LLC, GP, or TRUST. In addition to this broad definition, we also excluded keywords and sale types relating to home builders, relocation service companies, iBuyers, government bodies and financial institutions. Data limitations mean that this analysis likely excludes small investors not registered under a company name. Census estimates show that in 2018 41.2% of rental units were owned by individual investors while 47.5% of units were owned by Trusts, LLPs, LPs, or LLCs, General Partnerships, Real Estate Investment Trusts, or Real Estate Corporations. Ownership entity for more than half of the remaining units was not reported. About Realtor.com® Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, Realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, Realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit Realtor.com®.
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Realtor.com Survey Shows With Only Weeks Until School Starts, More Than a Third of College Students Still Haven't Finalized Fall 2021 Housing Plans
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Illinois, Florida and New Jersey Dominate Markets Most at Risk from Damage Related to Coronavirus Pandemic
Chicago Area and East Coast States Remain More Exposed to Pandemic's Impact During Second Quarter of 2021; Most Vulnerable Areas Are More Scattered Around Nation Than in Prior Quarter; Western States Continue to Have Most Favorable Market Conditions IRVINE, Calif. -- July 22, 2021 -- ATTOM, curator of the nation's premier property database, today released its second-quarter 2021 Coronavirus Report spotlighting county-level housing markets around the United States that are more or less vulnerable to the impact of the ongoing Coronavirus pandemic, still endangering the U.S. economy. The report shows that states along the East Coast, as well as Illinois, were most at risk in the second quarter of 2021 – with clusters in New Jersey, Delaware, the Chicago area and central Florida – while the West remained far less exposed. But the 50 most at-risk counties around the U.S. were spread over a wider area than in the first quarter of 2021, as most states had no more than two counties in the top group in the most recent time period. The report reveals that Florida, New Jersey, other East Coast states and Illinois had 37 of the 50 counties most exposed to the potential economic impact of the pandemic in the second quarter of 2021. They included seven counties in the Chicago metropolitan area, four near New York City, all three in Delaware and four in central Florida. However, only Florida, New Jersey, Illinois, Louisiana and Delaware had more than two counties in the top 50, compared to eight states in the first quarter of 2021. The top 50 were scattered across 18 states in the second quarter, compared to 15 the prior time period. The only three western counties in the top 50 during the second quarter of this year were in northern California and southern Arizona. Markets were considered more or less at risk based on the percentage of homes facing possible foreclosure, the portion with mortgage balances that exceeded the estimated property value and the percentage of average local wages required to pay for major home ownership expenses on median-priced houses or condominiums. The conclusions are drawn from an analysis of the most recent home affordability, equity and foreclosure reports prepared by ATTOM. Rankings were based on a combination of those three categories in 564 counties around the United States with sufficient data to analyze in first and second quarters of 2021. Counties were ranked in each category, from lowest to highest, with the overall conclusion based on a combination of the three ranks. See below for the full methodology. The findings follow a year when the national housing market continued its decade-long boom even amid the pandemic, with median single-family home prices rising more than 10 percent across much of the country. While small indicators of a possible slowdown have emerged in 2021 in the form of declining home affordability and slumping investor activity, fuel for further price gains has come from the pandemic receding, employment growing and the broader economy improving. Still, the pandemic remains a threat to the economy and the housing market as new virus variants appear and clusters of virus cases continue to plague pockets of the country. "The Coronavirus pandemic is easing, and the U.S. economy is gradually coming back to life, which suggests that the nation's housing market will indeed escape any major damage from the crisis. No major signs are showing anything different at this point. Nevertheless, the pandemic is still out there and remains a potent threat to home sales and values, as well as to the broader economy," said Todd Teta, chief product officer with ATTOM. "Amid a generally upbeat outlook, we continue to see areas that appear more at risk for a fall, especially in specific areas of the East Coast and Midwest. As we have throughout the pandemic, we will keep a close eye on those areas in case the situation worsens and the pandemic surges again." Most vulnerable counties clustered around Chicago, New York City, Delaware and central Florida Eighteen of the 50 U.S. counties most vulnerable in the second quarter of 2021 to housing market troubles connected to the pandemic (from among the 564 counties with enough data to be included in the report) were in metropolitan areas around New York, NY, and Chicago, IL, as well in Delaware and central Florida. They included seven that cover Chicago (Cook County) and its suburbs (De Kalb, Kane, Kendall, Lake, McHenry and Will counties) and four in the New York City metropolitan area (Ocean, Passaic and Sussex counties in New Jersey and Orange County in New York). The four in central Florida were Highlands County (Sebring), Indian River (Vero Beach), Lake County (outside Orlando) and Osceola County (Kissimmee). All three Delaware counties – New Castle (Wilmington), Kent (Dover) and Sussex (Georgetown) – made the top 50 list as well in the second quarter of 2021. Additional counties in Florida, New Jersey and Illinois also made the top-50 list. Those in Florida were Bay County (Panama City), Clay County (outside Jacksonville) and Marion County (Ocala), FL, while those in New Jersey included Atlantic County (Atlantic City), Cumberland County (Vineland), Gloucester County (outside Philadelphia, PA), Mercer County (Trenton) and Warren County (near Allentown, PA). Others in Illinois were Kankakee County, Madison County (outside St. Louis, MO), Saint Clair County (outside St. Louis, MO) and Tazewell County (outside Peoria). In addition, Louisiana had three counties in the top 50 during the second quarter – Bossier Parish (Shreveport), Livingston Parish (outside Baton Rouge) and Tangipahoa Parish (north of New Orleans). The only western counties among the top 50 most at risk from problems connected to the Coronavirus outbreak in the second quarter of 2021 were Butte County (Chico), CA; Humboldt County (Eureka), CA and Mohave County, AZ (outside Las Vegas, NV). Higher levels of unaffordable housing, underwater mortgages and foreclosure continue to appear in most-at-risk counties Major home ownership costs (mortgage payments, property taxes and insurance) on median-priced single-family homes consumed more than 30 percent of average local wages in 23 of the 50 counties that were most vulnerable to market problems connected to the virus pandemic in the second quarter of 2021. At least 15 percent of mortgages were underwater in the first quarter of 2021 (the latest data available on owners owing more than their properties are worth) in 33 of the 50 most at-risk counties. Nationwide, 10 percent of mortgages fell into that category. Those with the highest underwater rates among the 50 most at-risk counties were Saint Clair County (outside St. Louis, MO) (43.6 percent of mortgages underwater); Delaware County, PA (outside Philadelphia) (36.4 percent); Muscogee County (Columbus), GA (29 percent); Monroe County (Stroudsburg), PA (28.2 percent) and Kankakee County, IL (27.1 percent). More than one in 2,500 residential properties faced a foreclosure action in the second quarter of 2021 in 40 of the 50 most at-risk counties. Nationwide, one in 4,046 homes were in that position. (Foreclosure actions have dropped about 80 percent over the past year amid a federal moratorium on lenders taking back properties from homeowners behind on their mortgages during the virus pandemic.) The highest rates in the top 50 counties were in Gloucester County, NJ (outside Philadelphia) (one in 747 residential properties facing possible foreclosure); Cumberland County (Vineland) NJ (one in 773); Tazewell County, IL (outside Peoria) (one in 905); Tangipahoa Parish (north of New Orleans) (one in 1,129) and Ocean County (Toms River), NJ (one in 1,336). Counties least at-risk concentrated in South and Midwest Thirty-six of the 50 counties least vulnerable to pandemic-related problems from among the 564 included in the second-quarter report were in the South and Midwest. Texas had 13 of the 50 least at-risk counties, including five in the Dallas metropolitan area (Collin, Dallas, Denton, Ellis and Tarrant counties) and two in the Austin metro area (Travis and Williamson counties). Minnesota had five, including four in the Minneapolis metro area (Dakota, Hennepin, Ramsey and Scott counties). Others among the top-50 least at-risk counties with a population of 500,000 or more included Harris County (Houston), TX; Middlesex County, MA (outside Boston); Salt Lake County (Salt Lake City), UT; Macomb County, MI (outside Detroit) and Suffolk County (Boston), MA. Less-vulnerable counties again have lower levels of unaffordable housing, underwater mortgages and foreclosure activity Major home ownership costs (mortgage, property taxes and insurance) on the median-priced single-family home consumed less than 30 percent of average local wages in 44 of the 50 counties that were least at-risk from market problems connected to the virus pandemic in the second quarter of 2021. More than 15 percent of mortgages were underwater in the first quarter of 2021 (with owners owing more than their properties are worth) in none of the 50 least at-risk counties. Those with the lowest rates in those counties were Washington County, WI (outside Milwaukee) (1.9 percent underwater); Chittenden County (Burlington), VT (2.9 percent); Salt Lake County (Salt Lake City), UT (3.6 percent); Dallas County, TX (3.7 percent) and Tarrant County (Fort Worth), TX (4.1 percent). More than one in 2,500 residential properties faced a foreclosure action in the second quarter of 2021 in none of the 50 least at-risk counties. Those with the lowest rates in those counties included Missoula County, MT (no residential properties facing possible foreclosure); Chittenden County (Burlington), VT (one in 69,734); Olmstead County (Rochester), MN (one in 65,380); Davidson County (Nashville), TN (one in 44,624) and Rutherford County (Murfreesboro), TN (one in 39,564). Report methodology The ATTOM Special Coronavirus Market Impact Report is based on ATTOM's second-quarter 2021 residential foreclosure and home affordability reports and first-quarter 2021 underwater property report. (Press releases for those reports show the methodology for each.) Counties with sufficient data to analyze were ranked based on the percentage of residential properties with a foreclosure filing during the second quarter of 2021, the percentage of average local wages needed to afford the major expenses of owning a median-priced home in the second quarter of 2021 and the percentage of properties with outstanding mortgage balances that exceeded their estimated market values in the first quarter of 2021. Ranks then were added up to develop a composite ranking across all three categories. Equal weight was given to each category. Counties with the lowest composite rank were considered most vulnerable to housing market problems. Those with the highest composite rank were considered least vulnerable. About ATTOM ATTOM provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes, and enhances the real estate data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 20TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, property data APIs, real estate market trends, and more. Also, introducing our latest solution, that offers immediate access and streamlines data management – ATTOM Cloud.
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Wall Street Journal and Realtor.com Release Summer 2021 Emerging Housing Markets Index Report
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Housing-Market Competition Has Eased Slightly, But 7 in 10 Buyers Still Face Bidding Wars
70% of home offers faced bidding wars in May, down from 74% in April. Still, competition remains far more intense than it was a year ago. SEATTLE, June 16, 2021 -- In May, 70.4% of home offers written by Redfin agents faced competition, down from a revised rate of 73.6% in April, according to a new report from Redfin, the technology-powered real estate brokerage. That's still up significantly from 52.7% in May 2020, which was impacted by pandemic stay-at-home orders. An offer is considered part of a bidding war if a Redfin agent reported that it faced at least one competing bid. Competition typically tapers in the early summer following spring homebuying season, so seasonality may be contributing to the dip in the May bidding-war rate. Early signals of a cooldown in the housing market may also be a factor. American house hunters have grappled with record-breaking levels of competition during the coronavirus pandemic as homebuyer demand has skyrocketed due to low mortgage rates and flexible work policies. This has intensified an existing housing shortage, which has also fueled fierce bidding wars. But there are signs that the red-hot market may be cooling ever so slightly; home-purchase applications have been on the decline since late March and pending sales recently fell 10% from their peak about a month ago. As Redfin Chief Economist Daryl Fairweather put it earlier this month, "The housing market was going 100 miles per hour and now it's down to 80." Competition is likely starting to level off as well, and may have already hit its peak, according to Fairweather. "After months of surging prices and low inventory, some house hunters are moving to the sidelines—either because they're priced out or burned out," Fairweather said. "Americans are spending more of their money on things like travel and dining out now that pandemic restrictions are being lifted." Spokane and Raleigh Have the Highest Bidding-War Rates Spokane, WA had the highest bidding-war rate of the 50 U.S. metropolitan areas in this analysis, with 86.7% of offers written by Redfin agents facing competition in May. Next came Raleigh, NC, at 84.5%, and Tucson, AZ, at 81.8%. Salt Lake City and Charleston, SC rounded out the top five, with bidding-war rates of 81.5% and 79.3%, respectively. In San Diego, the bidding-war rate was 74.6% in May. While that's still relatively high, it's down from 86.2% in April, representing one of the largest month-over-month declines among the metros in this analysis. "Competition is still high, but the good news is buyers are having to make fewer offers to win bidding wars," said John Copeland, a Redfin real estate agent in San Diego. "A few months ago, buyers were bidding on three to five homes before winning. Now it's more like one to two. Part of that is buyers grasping the reality of the market; they've become more educated about what they need to do to win, so they no longer need to make as many offers." Bidding-War Rates by Metro Area To be included in the table below, metros must have had at least 20 offers recorded by Redfin agents in both May 2021 and April 2021. The table is sorted by highest to lowest bidding-war rates in May 2021. Blank spaces in the May 2020 column represent metros for which there were fewer than 20 offers submitted by Redfin agents that month. To read the full report, including charts, please click here. About Redfin Redfin is a technology-powered real estate broker, instant home-buyer (iBuyer), lender, title insurer, and renovations company. We sell homes for more money and charge half the fee. We also run the country's #1 real-estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 95 markets across the U.S. and Canada and employ over 4,100 people.
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Top 5 Best Days to Sell a Home Occur in May, According to New ATTOM Analysis
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Help Is on the Way for Hopeful Homebuyers, According to Realtor.com Survey
Ten percent of homeowners plan to list this year and more than a quarter (26%) within the next 3 years, offering relief to frustrated home shoppers SANTA CLARA, Calif., April 26, 2021 -- The lack of homes for sale has hit a crisis-level in recent months, igniting fierce competition, bidding wars and driving prices to an all-time high -- but there's hope on the horizon for weary buyers, according to new survey data from realtor.com®. Findings show 10% of homeowners are planning to put their home on the market this year and an additional 16% are planning to list in 2-3 years. Furthermore, 58% of the homes that owners plan to list this year are valued below $350,000, which should provide some relief for first-timers who have had trouble breaking into the market. Of those who plan to sell this year, 63% have already listed or plan to list within 6 months and 76% have already taken steps to begin the process. Realtor.com® surveyed 657 potential home sellers the week of March 29 via HarrisX. "In a typical year, we see about 8% of the nation's homes hit the market, and we're expecting about 25% more this year," said George Ratiu, senior economist, realtor.com®. "This signals that many homeowners who were wary to list during the pandemic are getting ready to do so, and this much-needed inventory -- especially for starter homes -- will begin to relieve buyers' challenges in a very competitive market. Despite this good news, we were in an inventory shortage, for both new and existing homes, well before the pandemic and COVID made it worse. It's going to take a while for us to get back to a more balanced 'normal' even with an increase in new construction on the horizon." The housing market's catch-22 Of those who are planning to put their home on the market in 2-3 years, a quarter of respondents said they aren't listing this year because they can't find a new home within their price range, creating a catch-22 for inventory. Other reasons that homeowners aren't planning to sell this year include: not sure where they want to move (23%); the current economic climate (22%); logistics of buying and selling at the same time (22%); and concerns about showing a home during the pandemic (20%). What it will take to move the needle Nearly all potential sellers (91%) looking to sell in the next 2-3 years said that they would be more likely to list their home if they knew they could time buying and selling perfectly. Additionally, 37% of homeowners with plans to sell in the next 2-3 years said that if they knew they could make a lot of money on their home sale, they would be motivated to list sooner. And with the median home listing price currently up 18.7% over last year, many homeowners are likely to see a significant profit if they list now. Other factors that could prompt future sellers to list sooner include: more affordable homes on the market (33%); not having to handle the logistics of buying and selling at the same time (29%); not having to prepare the home for sale (27%); and if the health risks of COVID-19 were lower (24%). "With home prices at historic highs, now is a great time to sell a home and many first-time sellers might be surprised to learn how much equity they have," said Rachel Stults, deputy editor for realtor.com®. "For consumers who are worried about the stress and planning involved, there are a number of resources available to help with everything–from perfectly timing buying and selling to removing the hassles of doing repairs and staging." Home sellers can take advantage of realtor.com® tools such as local market stats and the My Home portal, to see what their home is worth, how much equity they have and potential proceeds from a sale. Those who haven't sold a home recently might be surprised by how many selling options are available. With realtor.com®'s Seller's Marketplace, consumers can compare different selling methods including instant offers, sale-leasebacks and listing with an agent. Methodology: Realtor.com® commissioned HarrisX to conduct a national survey of consumers. The total sample size was 3,998 adults. The survey was carried out online. The sampling margin of error of this poll is ±1.6 percentage points. The figures represent a national view of US adults. Results were weighted for age, gender, region, race/ethnicity, and income where necessary to align them with their actual proportions in the population. In addition to the population of US adults, an oversample was collected for potential sellers. The oversample was weighted to align with the original sample of US adults. There are 657 potential sellers with a sampling margin of error of ±3.8 percentage points. About realtor.com® Realtor.com® makes buying, selling and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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Thinking of Selling Your Home? There May Be No Better Time Than Now
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Bloomington, Ill., is the Best Market for First-Time Home Buyers
Realtor.com's best markets for homeowner hopefuls offer more affordable homes and job opportunities as well as other millennials and a good mix of amenities SANTA CLARA, Calif., April 8, 2021 -- First-time buyers looking for an affordable home as well as job opportunities and quality of life may have to bypass major urban cities for more rural, secondary cities as the competition heats up for finding a home. In fact, they will have the best luck in Bloomington, Ill., according to realtor.com's 2021 Best Markets for First-Time Home Buyers analysis. With four of the top 10 markets, the Midwest ranks as the best region of the country for first-time home buyers, who according to the National Association of Realtors®, account for nearly one-third of recent buyers. Iowa City, Iowa, ranked No. 2 in this analysis followed by Kalamazoo, Mich.; Great Falls, Mont.; Eau Claire, Wis.; Savannah, Ga.; Schenectady, N.Y.; Taylorville, Utah; Harrisonburg, Va. and Rapid City, S.D. "With 50% fewer homes on the market this year than last, the U.S. housing market is competitive for all buyers. First-time buyers are at a bigger disadvantage since they don't have the funds from a previous home sale to help with their down payment or compete with bidding wars. Our recent survey of potential first-time home buyers confirmed this with 44% indicating they haven't saved enough for a down payment," said realtor.com® Chief Economist Danielle Hale. "While relocating isn't an option for everyone, the pandemic has caused many to rethink their priorities, including where they want to live. This analysis was meant to provide some insight for those who are open to expanding their search as they weigh their homeowner options." To determine the best markets for first-time home buyers, the majority of whom are millennials, many between the ages of 25 and 34, realtor.com® took into account six factors, including housing prices relative to local incomes, the share of 25- to 34-year-olds living in the market, the availability of homes for sale, job opportunities, distance to work and amenities such as bars and restaurants. To achieve geographic diversification, the ranking was limited to one city per state. All of the top 10 best markets have median home prices below the current national median price of $370,000. Kalamazoo, Mich., has the lowest median home price at $155,000 and Taylorsville, Utah, the highest at $350,000. Nine of the 10 top cities are home to at least one four-year college or university, which likely contributes to the fact that their residents tend to skew younger than the country overall. Savannah, Ga., has the largest share of adults aged 25-to-34 at 16.9% of the city's total population. Only Rapid City, S.D., and Harrisonburg, Va., had a lower share of younger adults than the median national average. What these two cities lack in a younger population they make up for in lower unemployment rates, more food and drink establishments per household and a shorter commute to work than the national average. For those looking for more homes to choose from, Schenectady, N.Y., with a median home price of $210,000, tops the list with nearly 18 listings per 1,000 households, Iowa City, Iowa offers 13.3 listings per 1,000 households, followed by Savannah, Ga., at 13.1 listings per 1,000 households. Realtor.com®'s Top 10 Markets for First-Time Home Buyers Methodology: To determine the top first-time home buyer markets, realtor.com® ranked 774 cities with a population of more than 50,000 based on the following criteria: the share of 25- to 34-year-olds in the local population; the availability of inventory, measured by active listings per 1,000 existing households; affordability, estimated by the ratio of listing prices to gross incomes of 25- to 34-year-olds in that city; job opportunities estimated by the unemployment rate of the city's surrounding metro area; the average commute time to work and amenities in an area, estimated by the number of food and drink establishments per 1,000 existing households in the city's surrounding metro area. About realtor.com® Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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Homeownership Remains Affordable for Average Workers Across Majority of U.S. Despite Price Spikes
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Now May Be the Best Time to Save Thousands on a Lease in the Nation's Largest Tech Hubs, According to Realtor.com Rental Report
In San Jose, Calf., renters signing a 12-month lease today would save nearly $5,000 compared to pre-pandemic prices SANTA CLARA, Calif., March 16, 2021 -- Rents continued their downward spiral in many of the nation's largest housing markets in February, but they may have hit their bottom, according to the realtor.com Monthly Rental Report released today. For those looking to move or return to the big city, acting now while rents are still at their lowest could mean saving thousands of dollars a year. "Housing markets like San Francisco, Santa Clara, Calif., Boston and Seattle have seen rents decline by double digits since the start of the pandemic and rent growth across the nation remains lower than pre-COVID levels. However, the downward trend is leveling off and rents may have hit their bottom in many markets," said realtor.com® Chief Economist Danielle Hale. "With the COVID-19 vaccination rates improving, returning to work and the city may be on the minds of many. For those looking to capitalize on rock-bottom rents, finding a new unit now could make sense. You'll not only save money, you'll have less competition finding the location that's best for you." In February, the U.S. median rent, which is calculated by averaging the median rent of the 50 largest metros, was up 0.6% to $1,452, well below its pre-COVID growth rate of 3.2%. With rent growth stabilizing over the past three months, rents could begin to return to pre-COVID growth rates in the coming months. Rent savings in tech markets could add up to thousands of dollars Although rents have begun to stabilize, and even rise by double-digits in some markets like New Orleans, Sacramento, Calif., Memphis and Riverside, Calif., where rents rose 18.7%, 11.0% 10.8% and 10.7%, respectively in February, that's not the case in many of the nation's largest tech hubs. In San Jose, Calif., situated in the heart of Silicon Valley, median rent was $2,690 in February, 13.2%, or $410, less than a year earlier. Renters signing a 12-month lease today would save nearly $5,000, compared to pre-pandemic prices for the same unit. They'd save almost as much in neighboring San Francisco, where rents were down nearly 13% from a year ago in February. Tech hub markets - Typical savings versus last year's rents February 2021 rental data - 50 largest metropolitan areas Methodology Rental units include apartment communities as well as private rentals (condos, townhomes, single-family homes). All units were studio, one-bedroom, or two-bedroom units. National rents were calculated by averaging the medians of the 50 largest metropolitan areas. About realtor.com® Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.
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Millennials Dominate Buying Market, Generation Z Now Active Buyers, Says NAR Report
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More than 200,000 New Listings Are Missing from U.S. Housing Market, According to Realtor.com February Housing Report
Extreme weather across most of the country pushed new listings to a record low that will be difficult to dig out from, while prices hit a new high SANTA CLARA, Calif., March 4, 2021 -- February's extreme weather throughout the U.S. exacerbated the housing market's inventory woes, pushing the pace of new listings coming onto the market further behind pre-pandemic levels, according to the realtor.com Monthly Housing Trends Report released today. Unless the trend reverses itself, buyers will be in for a much more competitive homebuying season than last year. "Last month's record cold and snowstorms likely caused sellers to hit pause, even if only temporarily," said realtor.com® Chief Economist Danielle Hale. "However, in today's inventory-starved market, any setback is significant. Unless we see some big improvements in the new listings trends over the coming months buyers can expect stiff competition. And unlike last spring, buyers may also face affordability challenges as home prices and mortgage rates increase. Market dynamics continue to favor sellers." According to realtor.com® data, 14.8% of the year's total new listings came to market in January and February in 2017-2019, and new listings in these months were an even bigger share in 2020 as COVID scared off many would-be sellers later in the year. Approximately 207,000 fewer homes were newly listed for sale during the first two months of 2021, compared with the average for those two months over the last four years. New listings would need to increase by 25% year-over-year in March and April to bring the year to date figure back to April 2020's levels. Severe winter storms across the U.S. drive inventory down further The number of homes for sale in the U.S. in February was down 48.6% year-over-year, a new low that translated into 496,000 fewer homes for sale. New listings were down 24.5% year-over-year, with the biggest drop -- 35.2% -- occurring in the third week of February, the most extreme weather week of a very cold and snowy month. New listings recovered to a smaller decline of 26.9% year-over-year in February's final week as conditions eased. Housing inventory in the 50 largest U.S. metros declined by 47.4% over last year in February, an increase from January's 41.8% decline. New listings in the 50 largest U.S. metros were down 23.5% year-over-year. For some metros, the declines were far more significant with new listings falling 47% in Oklahoma City, Okla., 45% in Kansas City, Mo.-Kan. and 40% in Milwaukee-Waukesha-West Allis, Wis. Two of three metros with increases in new listings were in California. New listings were up 13.6% in San Jose, Calif., followed by San Francisco (1.1%), and Denver (1.1%) year-over-year. Listing prices reach new high In February, the median national home listing price grew 13.7% over last year to $353,000, surpassing last year's peak price unseasonably early. The slowdown from last month's growth rate of 15.4% was likely due to a change in the mix of homes for sale. Listing prices in the nation's 50 metros grew by an average of 11.5%, compared to last year. Regionally, the Northeast saw the biggest jump in listing prices, increasing at an average rate of 16.8% over last year. Prices were up 11.7% in the West, 10.9% in the Midwest and 9.5% in the South. At the metro level, Austin, Texas, (+37.2%), Rochester, N.Y. (+27.6%) and Buffalo, N.Y. (+25.0%) posted the highest year-over-year median listing price growth in February. Miami (-2.7%), Denver (-1.7%), and Orlando, Fla. (-1.1%), were the only top 50 metros to see their median listing price decline year-over-year in February. Buyers need to act fast The typical home spent 70 days on the market in February, 11 days less than last year. Time on market was even faster in the 50 largest U.S. metros where the typical home sold in 48 days, 12 days less than a year ago. Homes saw the greatest decline in time spent on the market compared to last year in Austin, Texas (-36 days), Charlotte, N.C. (-28 days) and Portland, Ore. (-27 days). Metros With the Largest Decline in Newly Listed Homes   *Some data for Pittsburgh, New York, and San Diego has been excluded due to data quality. About realtor.com® Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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Home Price Increases in Opportunity Zone Redevelopment Areas Keeping Pace with Nationwide Gains
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Goodbye City Life: Rising Rents Match Homebuying Hotspots
Realtor.com January Rental Report finds declines in expensive high-tech hubs persist, while smaller markets that offer quality of life become less affordable SANTA CLARA, Calif., Feb. 18, 2021 -- Renters, much like homeowners, are favoring smaller more affordable markets that offer highly rated schools, strong local economies and more space over expensive tech hubs, a trend that is pushing rents up in many of the same markets where home prices are rising the most, according to the realtor.com® Monthly Rental Report released today. "Although rents across the U.S. have been growing at a slower pace since the onset of COVID-19 and the major tech hubs continue to see declines, some markets are seeing rents grow by double digits," said realtor.com® Chief Economist Danielle Hale. "Many of the same factors that attract homebuyers to an area -- highly rated schools, job opportunities, affordability and quality of life -- attract renters. Like homeowners, the pandemic has given many renters the freedom to work remotely, and the rental trends reflect that reality." In January, the U.S. median rent, which is calculated by averaging the median rent of the 50 largest metros, was up 0.8% to $1,442, below its pre-COVID growth rate of 3.2%. Despite the continued slower growth, January marked the first month since July 2020 where rental growth didn't slow further, indicating that rent growth may have reached a floor. Seven of the top 10 metros with the largest rent increases in January -- New Orleans*; Sacramento, Calif.; Rochester, N.Y.; Cleveland; Riverside, Calif.; Cincinnati and St. Louis -- were also among the metros where home prices grew more than 5% year-over-year. Renters typically have more flexibility to move, and with remote work allowing many people to live anywhere, markets that offer affordability are in hot demand. In California, Riverside and Sacramento have become desirable alternatives to the pricey Bay Area and Los Angeles housing markets. Despite a sizable 9.6% increase in the last year, the median rent in the Riverside metro was $1,858 in January, 25.4% lower than the median rent in neighboring Los Angeles. Likewise, the median rent in Sacramento was $1,649 in January, still 36.8% lower than the median rent in San Francisco despite its 11.0% rise in the last year. Four of the top 10 markets with the largest year-over-year rent increases in January are located in the Midwest, a region that in recent years has attracted affordability-minded homeseekers looking for an alternative to the pricer coastal markets. Markets With the Largest Rent Increases in January 2021 Markets With the Largest Rent Decreases in January 2021 Rental Data - 50 Largest Metropolitan Areas January 2021 *Editor's Note: New Orleans' exceptional year-over-year growth in median rent was driven by shifts in the underlying inventory of rental units. The number of studio units has declined by 17% year-over-year, while one-bedroom and two-bedroom unit inventory has increased by 50% and 31%, respectively. The larger space commands larger rents, therefore driving up the median rent in the area. Methodology Rental units include apartment communities as well as private rentals (condos, townhomes, single-family homes). All units were studio, one-bedroom, or two-bedroom units. National rents were calculated by averaging the medians of the 50 largest metropolitan areas. About realtor.com® Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.
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Buyers on Notice: Act Quickly and Be Prepared to Pay Up, According to Realtor.com January Housing Report
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East Coast Housing Market Continues to Dominate Areas Most Vulnerable to Coronavirus Impact
Counties Most At Risk in Fourth Quarter of 2020 Remain Concentrated in States Running from Connecticut through Florida; New York City, Philadelphia and Chicago Areas Have Biggest Clusters of High-Risk Counties; West Region Remains Less Vulnerable IRVINE, Calif. - Jan. 21, 2021 -- ATTOM Data Solutions, curator of the nation's premier property database, today released its fourth-quarter 2020 Special Coronavirus Report spotlighting county-level housing markets around the United States that are more or less vulnerable to the impact of the virus pandemic. The report shows that pockets of the Northeast and other parts of the East Coast remained most at risk in the fourth quarter – with clusters in the New York City and Philadelphia, PA areas – while the West continued to be less vulnerable. The report reveals that New Jersey, Illinois, California, Louisiana, New York, Florida and Maryland had 40 of the 50 counties most vulnerable to the economic impact of the pandemic in the fourth quarter of 2020. They included eight suburban counties in the New York City metropolitan area, four around Philadelphia, PA, and two near Washington, D.C. Another six sat in the Chicago, IL, suburbs and two were in the St. Louis, MO area. Five of the seven western counties in the top 50 during the fourth quarter were in northern California, while Illinois had eight of the nine midwestern counties among those most vulnerable. Outside of Florida and Maryland, the only southern state with more than two counties in the top 50 was Louisiana. Fourth-quarter trends generally continued those found in the third quarter of 2020, but with different concentrations around several major metropolitan areas. The number of counties among the top 50 most at-risk was up from five to eight in the New York, NY, area and from three to six in the Chicago, IL, area, but down from four to two in the Washington, D.C., region and from four to one in the Baltimore, MD area. Markets are considered more or less at risk based on the percentage of homes facing possible foreclosure, the portion with mortgage balances that exceed the estimated property value and the percentage of average local wages required to pay for major home ownership expenses. The conclusions are drawn from an analysis of the most recent home affordability, equity and foreclosure reports prepared by ATTOM. Rankings were based on a combination of those three categories in 499 counties around the United States with sufficient data to analyze in the fourth quarter. Counties were ranked in each category, from lowest to highest, with the overall conclusion based on a combination of the three ranks. See below for the full methodology. The findings come as the national housing market continues to withstand the effect of the virus pandemic while also remaining vulnerable to a fall. Home values shot up in 2020 by more than 10 percent in about three-quarters of the country, even as significant portions of the economy were shut down or idled, spiking unemployment. But amid a halting economic recovery, the ongoing market boom faces major questions connected to how long the pandemic will last, whether another recession looms and if a surge of buyers seen last year continues. "Areas of the U.S. most at risk from damage connected to the Coronavirus pandemic spread out somewhat in the fourth quarter of 2020. But they still fell mainly along the East Coast, with significant pockets in certain areas, while other parts of the country seem to be less vulnerable," said Todd Teta, chief product officer with ATTOM Data Solutions. "This report is not a sign that any area actually took a fall in the fourth quarter. It's more a gauge of areas that may be more vulnerable if the market falters. In the coming months, much will depend on whether the country can halt the pandemic. We will continue to keep a close watch on home sales and prices to see how everything shakes out in 2021 and if changes hit different regions in different ways." Most vulnerable counties clustered around New York City, Philadelphia and Chicago Eighteen of the 50 U.S. counties most at-risk in the fourth quarter of 2020 from housing market troubles connected to the pandemic (from among the 499 counties with enough data to be included in the report) were in metropolitan statistical areas around New York, NY, Philadelphia, PA, and Chicago, IL. They included eight in or near the New York City suburbs (Bergen, Essex, Ocean, Passaic and Sussex counties in New Jersey, along with Dutchess, Orange and Rockland counties in New York), and four around Philadelphia, PA (Burlington, Camden and Gloucester counties in New Jersey plus Delaware County, PA). The other six were in the Chicago, IL, suburbs (DuPage, Kane, Kendall, Lake, McHenry and Will counties). The New York and Chicago metropolitan areas saw increases from the third quarter of 2020 in the numbers of counties in the top 50 list. While seven of Connecticut's eight counties made the top 50 list in the third quarter of 2020, just two did in the fourth quarter – Litchfield and Windham counties. The number of counties on the list in the Baltimore, MD, metro area also fell notably in the fourth quarter, from four to one (Carroll County) and dropped from four to two in the Washington, D.C, area (Charles County, MD, and Prince George's County, MD). The only western counties among the top 50 most at risk from problems connected to the Coronavirus outbreak in the fourth quarter of 2020 were Butte County (Chico), CA; El Dorado County, CA (outside Sacramento); Humboldt County (Eureka), CA; Madera County, CA (outside Fresno); San Bernardino County, CA; Shasta County (Redding), CA; and Santa Fe County, NM. Louisiana also had four counties in the top 50 during the fourth quarter – Caddo Parish (Shreveport), Livingston Parish (outside Baton Rouge), Orleans Parish (New Orleans) and Tangipahoa Parish (north of New Orleans). Florida had another three – Bay County (Panama City) Charlotte County (outside Fort Myers) and Flagler County (outside Daytona Beach). Higher levels of unaffordable housing, underwater mortgages and foreclosure activity in most-at-risk counties Major home ownership costs (mortgage payments, property taxes and insurance) consumed more than 30 percent of average local wages in 36 of the 50 counties that were most vulnerable to market problems connected to the virus pandemic in the fourth quarter of 2020. The highest percentages in those counties were in Rockland County (65 percent of average wages needed for major ownership costs); El Dorado County, CA, (outside Sacramento) (57.8 percent); Bergen County, NJ (outside New York City) (55.3 percent); Delaware County, PA (outside Philadelphia) (52 percent) and Beaufort County (Hilton Head), SC (51.7 percent). Nationwide, major expenses on the median-priced home typically consumed 29.6 percent of average wages. At least 15 percent of mortgages were underwater in the third quarter of 2020 (the latest data available on owners owing more than their properties are worth) in 33 of the 50 most at-risk counties. Nationwide, 12.3 percent of mortgages fell into that category. Those with the highest underwater rates in those counties were Lowndes County (Valdosta), GA (36.8 percent of mortgages underwater); Hardin County, KY (outside Louisville) (32.8 percent); Cumberland County (Vineland), NJ (30.8 percent); Caddo Parish (Shreveport), LA (28.6 percent) and Atlantic County (Atlantic City), NJ (27.8 percent). More than one in 2,500 residential properties faced a foreclosure action in the third quarter of 2020 (the latest available data) in 29 of the 50 most at-risk counties. Nationwide, one in 5,048 homes were in that position. (Foreclosure actions dropped about 80 percent last year amid a federal moratorium on banks taking back properties from homeowners behind on their mortgages during the virus pandemic.) Those with the highest rates in those counties were Hardin County, KY (outside Louisville) (one in 1,032 residential properties facing possible foreclosure); Onslow County (Jacksonville), NC (one in 1,090); Caddo Parish (Shreveport), LA (one in 1,361); Saint Clair County, IL (outside St. Louis, MO) (one in 1,409) and Livingston Parish, LA (outside Baton Rouge) (one in 1,562). Counties least at-risk concentrated in Colorado, Massachusetts, Minnesota and Texas Eighteen of the 50 counties least vulnerable to pandemic-related problems from among the 499 included in the fourth-quarter report were in Colorado, Massachusetts, Minnesota and Texas. They were concentrated in the Denver, Boston, Minneapolis, Houston and Dallas metro areas. The largest of the 50 least at-risk counties were Harris County (Houston), TX; King County (Seattle), WA; Clark County (Las Vegas), NV; Tarrant County (Fort Worth), TX and Middlesex County, MA (outside Boston). Others among the 50 least at-risk counties with a population of at least 500,000 included Hennepin County (Minneapolis), MN; Suffolk County (Boston), MA; Essex County, MA (outside Boston); Norfolk County, MA (outside Boston) and Denver County, CO. Lower levels of unaffordable housing, underwater mortgages and foreclosure activity in less vulnerable counties Major home ownership costs (mortgage, property taxes and insurance) consumed less than 30 percent of average local wages in 33 of the 50 counties that were least at-risk from market problems connected to the virus pandemic in the fourth quarter of 2020. The lowest percentages in those counties were in Marion County (Indianapolis), IN (18.6 percent of average local wages required for major ownership costs); Benton County (Rogers), AR (19.6 percent); Potter County (Amarillo), TX (20.4 percent); Niagara County (Niagara Falls), NY (20.5 percent) and Macomb County, MI (outside Detroit) (20.6 percent). More than 15 percent of mortgages were underwater in the third quarter of 2020 (with owners owing more than their properties are worth) in none of the 50 least at-risk counties. Those with the lowest rates in those counties were Chittenden County (Burlington), VT (3.5 percent); King County (Seattle), WA (4.8 percent); Washington County, OR (outside Portland) (4.8 percent); Marion County (Salem), OR (5.2 percent) and Boulder County, CO (5.2 percent). More than one in 2,500 residential properties faced a foreclosure action in the third quarter of 2020 in none of the 50 least at-risk counties. Those with the lowest rates in those counties included Eau Claire County, WI (no residential properties facing possible foreclosure); Norfolk County, MA (outside Boston) (one in 277,275); Marion County (Salem) OR (one in 125,190); Clark County (Las Vegas), NV (one in 88,856); Suffolk County (Boston), MA (one in 83,310) and Middlesex County, MA (outside Boston) (one in 79,073). Report methodology The ATTOM Data Solutions Special Coronavirus Market Impact Report is based on ATTOM's third-quarter 2020 residential foreclosure and underwater property reports and fourth-quarter 2020 home affordability report. (Press releases for those reports show the methodology for each.) Counties with sufficient data to analyze were ranked based on the percentage of residential properties with a foreclosure filing during the third quarter of 2020, the percentage of properties with outstanding mortgage balances that exceeded estimated market values in the third quarter of 2020 and the percentage of average local wages need to afford the major expenses of owning a median-priced home in the fourth quarter of 2020. Ranks then were added up to develop a composite ranking across all three categories. Equal weight was given to each category. Counties with the lowest composite rank were considered most vulnerable to housing market problems. Those with the highest composite rank were considered least vulnerable. About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 20TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, property data APIs, real estate market trends, marketing lists, match & append and introducing the first property data delivery solution, a cloud-based data platform that streamlines data management – Data-as-a-Service (DaaS).
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Is the Beach So Last Year?
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Realtor.com Top Housing Markets: Tech Hubs and State Capitals Will Dominate 2021
Sacramento, Calif., San Jose, Calif. and Charlotte, N.C. are forecasted to see the highest home price appreciation and sales growth in 2021 SANTA CLARA, Calif., Dec. 7, 2020 -- Millennial homebuyers, relative affordability, and strong local economies will drive realtor.com's Top Markets of 2021 to lead the nation in a year when real estate is expected to be strong coast to coast. This year's list in rank order includes: Sacramento, Calif., San Jose, Calif., Charlotte, N.C., Boise, Idaho, Seattle, Phoenix, Harrisburg, Pa., Oxnard, Calif., Denver, and Riverside, Calif. (see below for full 100 market ranking). Based on realtor.com®'s local market forecast, the areas on this list are expected to see the strongest home price and sales growth in the U.S. in 2021. In fact, home prices across the top 10 markets are forecasted to increase by 6.9% and sales by 13.1% year-over-year, which is significantly higher than the national projection of 5.7% price appreciation and 7.0% sales growth. "This past year, we've all become more reliant on technology to work, learn, and maintain personal connections. The technology hubs that make this possible are thriving, as are their housing markets," said realtor.com®'s Chief Economist, Danielle Hale. "Additionally, the relative stability of government jobs in the past year has driven home prices and sales in several state capitals to the top. Home buyers, particularly younger first-time buyers, looking in one of these markets should expect rising prices and heavy competition. Meanwhile, sellers will remain in a position of power, but will find themselves on the other side of the bargaining table when buying their next home." Tech Titans A common driver of this year's top markets is the prevalence of high paying tech jobs. Tech salaries in Sacramento, San Jose, Boise, Denver, and Seattle have driven home prices through the roof over the last several years and this trend is expected to continue in 2021. Additionally, areas such as Charlotte and Phoenix are quickly establishing themselves as rising tech hubs with a plethora of jobs in technology, as well as education, government and healthcare. In fact, the projected unemployment rate for 2021's top markets is 7.9% compared to the national average of 8.2%. Tech-related jobs make up an average of 8.7% of the workforce in this year's top markets list compared to 6.4% of the U.S. as a whole. Relative Affordability Home prices in eight of the top 10 markets are more expensive than the average of the top 100 markets. But many are relatively affordable when compared to their nearby counterparts or offer significantly more square footage for a similar price. For example, buyers priced out of New York ($216 per sq.ft.) can find increased space and affordability in Harrisburg ($122 per sq.ft.), while buyers in Sacramento ($284 per sq.ft.) can get more bang for their buck than nearby San Francisco ($679 per sq.ft.). This is also true when comparing Oxnard ($413 per sq.ft.) and Riverside ($247 per sq.ft.) with Los Angeles ($556 per sq.ft.). Millennial Magnets On average, the top 10 markets have a larger share of millennials (14.1%) than the U.S. as a whole (13.5%). A market's ability to lure millennials is a good indicator of the livability of the area including: job opportunities, dining, and entertainment. However, when it comes to millennials purchasing homes in the top 10, two trends are emerging. In half of this year's top markets, including: Charlotte, Boise, Phoenix, Harrisburg and Riverside, millennials are already homeowners and expected to make the majority of the home purchases that drive home price growth and sales. In the other group of markets, such as San Jose, Seattle, and Denver, the high cost of living has made homeownership a difficult accomplishment, not only for millennials but for all generations. The high number of millennials in the market shows how popular these markets have become, but older, more financially established generations will be the ones purchasing the majority of the homes next year. State Capitals Half of the top markets are state capitals, including: Sacramento, Boise, Phoenix, Harrisburg and Denver. The strong government presence in these areas offers stability for their local economy and jobs markets. This is especially important after a year when a global pandemic has significantly disrupted local economies across the nation. On top of the government jobs, these areas also have strong job diversity in both the public and private sectors, including education, healthcare, technology, manufacturing and military, which is positioning them for solid growth in the future. The average GDP growth rate for the top markets is forecasted to be 5.34% in 2021, versus 4.85% for the top 100 metros. 2021 Top Markets 1. Sacramento Median home price: $554,050 Home price change: +7.4 percent Sales change: +17.2 percent Combined sales and price growth: +24.6 percent Sacramento takes first place on this year's top markets list. Due to the increased freedom to work remotely, buyers from the San Francisco Bay Area are flocking to California's state capital for the increased affordability, without having to completely uproot their lives in Northern California. The area draws a diverse crowd ranging from first time homebuyers to empty nesters looking to downsize. Many young families are also drawn to Sacramento for the area's strong school system, including West Campus high school which has a 99% graduation rate and received a 10/10 on greatschools.org. When residents want a change of scenery, it's a short trip to Lake Tahoe, wine country or San Francisco. 2. San Jose Median home price: $1,199,050 Home price change: +10.8 percent Sales change: +10.8 percent Combined sales and price growth: +21.6 percent Also located in Northern California, San Jose is the largest city in Silicon Valley. Apple, Google, Facebook, Linkedin and even realtor.com® are all within commuting distance of San Jose. Unsurprisingly, the area's strong economy and top notch school system, including Lynbrook High School (10/10 greatschools.org), lure top tech talent from all over the country. Those looking for a change of scenery can easily drive to San Francisco or the nearby mountains. Without a ton of room for new construction, inventory in the area is tight, so serious buyers should expect to pay above asking price. 3. Charlotte Median home price: $368,819 Home price change: +5.2 percent Sales change: +13.8 percent Combined sales and price growth: +19.0 percent Rounding out the top three on this year's top markets list is Charlotte. The area's high quality of life, great weather, strong school system including Providence High (10/10 greatschools.org) and rich history draw a diverse mix of both young and old buyers. Millennials are beginning to transition from the downtown city center toward the suburbs as they raise families and take advantage of the increased affordability and extra space. With access to both the beach and mountains, Charlotte has something for everyone, including kayaking along the Catawba River and hiking the Carolina Thread Trail. Housing supply has been tight, but new construction is booming as builders try to meet current demand. Charlotte was No. 7 on 2018's top markets list. 4. Boise Median home price: $445,000 Home price change: +9.1 percent Sales change: +9.8 percent Combined sales and price growth: +18.9 percent Idaho's capital city is firmly establishing itself as a rising tech hub in the U.S. The area's high quality of life and strong economy draw people from all over the country, with the biggest influx coming from Washington, Oregon and California. This trend has accelerated as the ability to work remotely has drawn many young workers looking for a slower pace of life, increased affordability, and access to the area's many outdoor amenities. Boise offers residents a mild four season climate, a vibrant revitalized downtown with plenty of entertainment, as well as a plethora of restaurants and boutique shopping. Outdoor enthusiasts are drawn to the area's adrenaline pumping outdoor activities such as white water rafting and four different ski resorts. New construction has been booming in Boise over the past few years as builders scramble to keep up with rising demand. Boise is no stranger to realtor.com®'s Top Markets list, it was No. 1 in 2020 and No. 8 in 2019. 5. Seattle Median home price: $629,050 Home price change: +9.7 percent Sales change: +8.9 percent Combined sales and price growth: +18.6 percent Coming in fifth is Seattle, which is home to some of America's largest and most well known companies including: Amazon, Starbucks, Costco, Microsoft and Nordstrom. The area's booming tech scene, high quality of life, and access to both the water and mountains draws a crowd from all over the country. New and growing families will find a strong school system, including Greenwood Elementary School which scored a perfect 10/10 on greatschools.org, as well as four other schools which received scores of 9/10. Driven by high home prices and the desire for more space, buyers are beginning to search for homes further from the downtown center. This is especially true for first time homebuyers. 6. Phoenix Median home price: $412,260 Home price change: +7.0 percent Sales change: +11.4 percent Combined sales and price growth: +18.4 percent Arizona's state capital has become a magnet for both younger buyers looking to take advantage of the affordable cost of living, as well as retirees who want to soak up the sun. Recently, the area has seen a large influx of people from pricey West Coast markets -- San Francisco, Seattle and Portland. While builders have struggled to meet the rising demand for housing, Phoenix set a record for new home permits in March, April and May, so new inventory is on the way. Phoenix offers residents all the big city amenities of shopping, dining and entertainment, without the traffic of larger metropolitan cities. Additionally, those who want to get out and hit the golf course have over 400 courses to choose from. Phoenix is a business friendly city and has a diverse list of large employers in both the public and private sectors from education, government and healthcare to technology, manufacturing and military. Phoenix was No. 5 on 2019's top markets list. 7. Harrisburg Median home price: $262,000 Home price change: +3.8 percent Sales change: +14.4 percent Combined sales and price growth: +18.2 percent The state capital of Pennsylvania has become a hot spot for buyers looking for the quiet suburban lifestyle, more space, and increased affordability. Harrisburg is centrally located near New York, Baltimore, Washington D.C., Pittsburgh and Philadelphia. Millennials in particular have been drawn to the area as both first time homebuyers and move-up buyers looking for more space for their growing families. Harrisburg boasts a strong job market not only for government employees working at the state capital, but those in healthcare and shipping industries as well. One of the biggest draws to the area is the ability to go from downtown, to the suburbs, to more rural areas, in under 15 minutes. 8. Oxnard Median home price: $824,000 Home price change: +5.5 percent Sales change: +12.5 percent Combined sales and price growth: +18.0 percent Located north of Los Angeles on the Pacific Coast is Oxnard, Calif. The area is a mix of farmland and Pacific Coast beaches, such as Hollywood Beach -- a second home market for wealthy Angelanos looking for a break from the hustle and bustle of city life. Farmers in the area grow strawberries and lima beans and the annual Strawberry Festival is a big draw for Southern California locals. Thanks to its affordability, the area has seen a boost in demand from buyers seeking relief from Los Angeles and Orange County home prices. Beach homes in the area are significantly more affordable than those in Malibu or Santa Monica, making this a popular alternative for buyers hoping to get more bang for their buck. 9. Denver Median home price: $520,000 Home price change: +5.4 percent Sales change: +12.5 percent Combined sales and price growth: +17.9 percent Colorado's state capitol is located just outside of the Rocky Mountains. The area's housing market has been red-hot for the last several years and builders have struggled to keep up with the high demand for housing. Though the city is rapidly expanding, it still holds much of its Old West charm, and its cost of living remains relatively affordable compared to other Western markets. Many of Denver's residents are outdoor enthusiasts who love to take advantage of the area's easy access to mountains, rivers and lakes. No matter the season, there is an outdoor activity closeby. Denver's high quality of life is a major draw for many residents, as well as all the amenities of downtown. With boutique shopping, dining, and endless entertainment, the area has been supremely popular with millennials. Due to the area's spike in demand, home prices have grown rapidly, causing many first time home buyers to search further out from the downtown center. 10. Riverside Median home price: $475,050 Home price change: +5.5 percent Sales change: +12.4 percent Combined sales and price growth: +17.9 percent Located in the Inland Empire, Riverside, Calif., is named for its location along the Santa Ana River. Riverside draws many people who want to take advantage of Southern California's temperate weather, but don't want to pay Los Angeles or Orange County home prices. Riverside is centrally located, just 30 minutes to the beach, mountains or desert, making it a great location for anyone that loves to be outdoors. Additionally, it's in close proximity to Southern California's attractions of Disneyland in Anaheim, skiing in the San Bernardino Mountains, wine tasting in Temecula or the endless entertainment in Los Angeles. Due to Southern California's high cost of living, Riverside's relative affordability and strong school system including Riverside Stem Academy (9/10 greatschools.org), have made it a popular destination for first time homebuyers, growing families, and retirees. 2021 Top Housing Markets Ranked About realtor.com® Realtor.com® makes buying, selling and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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Realtor.com 2021 Housing Forecast: Sellers Will Get Top Dollar as Buyers Struggle with Affordability
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Rent Declines Accelerate in Tech Hubs as Remote Work Prompts the Desire for More Space
Rents continue their downward spiral throughout the San Francisco Bay Area along with Manhattan, Boston, Seattle and Washington, D.C. SANTA CLARA, Calif., Nov. 13, 2020 -- Rents in the nation's tech hubs continued their descent in October, falling by one-third for a studio apartment in San Francisco year-over-year, according to the realtor.com monthly rental report released today. The report also showed that while the declines have begun to slow down nationally, renters are seeking both affordability and more space the longer they work from home. Nationally, rental growth rates are still far below where they were pre-COVID, but declines are starting to lessen. The median studio unit rent in October was $1,316, down 0.8% year-over-year. The median one-bedroom rent in October was $1,495, up 1.1% year-over-year. The median two-bedroom rent continued to increase in October. At $1,869, it was up 2.6% year-over-year, approaching its pre-COVID annual growth rate of 3.5%. "The combination of tech companies extending their work from home policies through mid-2021 or even indefinitely, and the desire for more space, especially with the weather cooling, is putting pressure on rents in the most expensive urban metros and tech hubs," said realtor.com® Chief Economist Danielle Hale®. "Just as we saw with buyers, many renters appear to be looking to escape their urban life altogether, while others are looking for more space. Nationwide, rents for two-bedroom units have begun to bounce back and if the trend continues, price growth could return to pre-COVID levels early next year." San Francisco led the nation in declines with monthly rents falling 33.3%, 26.3% and 23.4% for studio, one-bedroom and two-bedrooms units year-over-year, respectively. Rents for studios and one-bedrooms in nearby Santa Clara and San Mateo counties also saw double-digit decreases in October. Outside of the Bay Area, Manhattan, Boston, Seattle, and Washington, D.C. were among the metros seeing the largest year-over-year declines. These markets also represent some of the most expensive cities in the country, giving rents the most room to fall. In October, the median studio rent in Manhattan was $2,395, down 20.0% year-over-year, accelerating from 15.4% a month earlier. One-bedroom rents in Manhattan were $3,250, down 16.7% compared to last year, and accelerating from a decrease of 11.7% in September. Two-bedroom rents in Manhattan were $5,333 in October, down 11.1% compared to last year, accelerating from a 4.1% decline a month earlier. Top 10 markets with largest one-bedroom rent decreases in October Top 10 markets with largest two-bedroom rent decreases in October Methodology: Rental units include apartment communities as well as private rentals (condos, townhomes, single-family homes). National rents were calculated by averaging the medians of the 100 largest counties, except for studios, which were based on 94 of those counties with at least 20 studio listings. About realtor.com® Realtor.com® makes buying, selling and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.
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Northeastern Housing Markets Remain Most at Risk of Economic Impact from Coronavirus Pandemic
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Realtor.com Red Versus Blue Report: Blue State Americans Are Searching For Homes In Swing States; What Does That Mean For The Presidential Election?
Americans are migrating from Democratic urban areas to more affordable suburbs and rural areas that lean Republican. But will they turn any red states blue? SANTA CLARA, Calif., Oct. 6, 2020 -- The ongoing trend of Americans migrating from densely populated typically Democratic urban areas to more affordable suburbs and rural areas that historically lean more Republican could potentially have an impact on the outcome of the upcoming presidential election, according to a new analysis released today by realtor.com®. The report reveals that the majority of out of town searches for homes in the battleground states of Florida, Michigan, Pennsylvania and Wisconsin come from states and counties that lean blue. The analysis examines the searches of home shoppers on realtor.com® looking outside their local market over the last three years. For the purpose of this study, the analysis assumes the political affiliation of the home searchers is proportional to the distribution of their county of origin during the 2016 presidential election. It does not account for changes in political affiliation, other factors that may cause someone to shift their allegiances, or the migration of renters, who tend to move more frequently. "For years homebuyers have looked from urban areas to more suburban and rural areas to find the affordability that makes buying a home possible. The additional time at home and flexibility to work remotely as a result of the pandemic have further fueled this trend," said realtor.com® Chief Economist Danielle Hale. "Although many factors will ultimately influence voting decisions, what we may learn in just a little over a month is whether these shoppers ended up changing the results in the states they moved into, or not. We know a number of blue staters' interest in swing state moves; but we just don't know how many of them actually did move, and whether they themselves vote Democratic or Republican." According to the analysis, which examined all 50 states and the District of Columbia, the majority of out of town searches for homes in Florida, Michigan, Pennsylvania and Wisconsin -- four of the 13 identified by a Politico analysis as battleground states -- are coming from states and counties that lean blue. These search patterns also indicate that, with the exception of Georgia, the 30 states that went red in 2016 may be impacted one way or another by blue staters moving in. At the same time, eight blue states and the District of Columbia are seeing an influx of people from states that are red. "A critical question - as blue staters move to swing or red states, are they Democratic voters seeking out a more suburban or rural lifestyle, or are they Republican voters wanting to move out of a more Democratic neighborhood or do their political opinions shift as they move to areas that have traditionally supported Republican candidates? We may know how to better answer these questions, once the votes are counted," said Hale. Out of state searches in the four potential swing states Florida (Red in 2016 and considered a toss up state in the upcoming election by Politico) Realtor.com® analysis: The biggest share of non-local home searches in Florida are coming from Georgia (a red state in 2016) followed by New York, New Jersey, Illinois and California, all blue states in 2016. At the county level, the highest share of non-local searches in the state come from all blue counties -- Dekalb County, Ga., Cook County, Ill., Fulton County, Ga., New York County, N.Y. and Essex County, N.Y. Michigan (Red in 2016 and considered to be leaning blue in the upcoming election by Politico) Realtor.com® analysis: The biggest share of non-local home searches in Michigan are coming from Ohio, Illinois, California, Georgia and Florida. Although only two of the top viewing states are blue, the highest share of non-local searches are from blue counties -- Cook County, Ill., Summit County, Ohio, Dekalb County, Ga., Cuyahoga County, Ohio and Franklin County, Ohio. Pennsylvania (Red in 2016 and considered to be leaning slightly blue in the upcoming election by Politico) Realtor.com® analysis: The biggest share of non-local home searches in Pennsylvania are coming from New York, New Jersey, Maryland, Ohio and Virginia. Of these five states, only Ohio was red in 2016. At the county level, the highest share of non-local searches in the state come from all blue counties, Washington, D.C., New York County, N.Y., Essex County, N.J., Kings County, N.Y. and Montgomery County, Md. Wisconsin (Red in 2016 and considered to be a toss up in the upcoming election by Politico) Realtor.com® analysis: The biggest share of non-local home searches in Wisconsin are coming from Illinois, Minnesota, Pennsylvania, Iowa and California, three of which (Illinois, Minnesota and California are blue states). At the county level, four of the five highest share of non-local searches in the state come from blue counties -- Cook County, Ill., Lake County, Ill., Hennepin County, Minn. and Bucks County, Pa. The exception is McHenry County, Ill. Editor's note: This analysis is not a prediction of the outcome of the election. Whether these home searches benefit either political party depends on factors that cannot be accurately measured: first, realtor.com® does not have data on how many of these searches actually resulted in a move to a new market, though these searches have historically correlated well with migration patterns; and second, there is no way to determine the political leanings or party affiliation of those who do cross-market searches and/or ultimately move. About realtor.com® Realtor.com® makes buying, selling and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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Rental Beast September Market Report: Conversation with Brian Horrigan, Chief Economist at Loomis Sayles
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People Are Searching in the Suburbs More Than Ever Before
Remote work, desire for more space is driving home shoppers to less dense, relatively nearby metros SANTA CLARA, Calif., Aug. 10, 2020 -- America is looking to move again, and the COVID-19 pandemic is influencing the U.S. housing market both in terms of where people are searching and what they are searching for, according to realtor.com®'s quarterly Cross Market Demand Report, which measures search data to provide insight into where shoppers are looking for their next home. After an initial shift in search habits at the onset of the coronavirus in the U.S., home shoppers looking outside their current metro area for homes have surpassed pre-COVID levels, and more are increasingly setting their sights on the suburbs. During the second quarter of 2020, 51% of views from urban residents of the U.S.' 100 largest metros went to suburban properties in their metros, an all-time high since realtor.com® began tracking metro level search data in 2017. "We see lingering effects of the coronavirus on shopping behavior and preferences. In the Northeast, especially, people are now as likely as before the pandemic to be looking for a home in a market that's not where they currently live. However, those looking elsewhere are much more likely to be looking in smaller, nearby markets," said realtor.com® Chief Economist Danielle Hale. "With remote work more common and accepted, it seems that people are looking to locate further from the office either to enjoy more space at a better price, or get closer to nature in the mountains or at the beach. At this point, they are not venturing too far away." The search data analysis reinforces the findings of a recent realtor.com® Harris X consumer survey of 2,000 active home shoppers, which indicated that home purchase decisions are being influenced by consumers' ability to work remotely, desire for more space and their willingness to commute longer to get what they want in a home. Northeastern markets heat up as search activity is shifting to smaller, less dense areas Following a decline in searchers looking outside their local market during the second quarter, Northeastern markets saw an uptick in interest in July. This activity was primarily driven by residents of the region's larger metros looking in smaller, nearby bedroom communities or vacation home markets such as East Stroudsburg, Penn, Bridgeport-Stamford-Norwalk, Conn. and Atlantic City and Ocean City, N.J. The same trend was evident in the New York metro area, where demand grew in outer-lying counties, such as Nassau and Suffolk County, N.Y., and Monmouth and Ocean County, N.J., but decreased slightly in Manhattan and the Bronx. Remote work policies could influence the West With many tech companies extending their work from home policies and employees anticipating that their employers will afford more flexibility for remote working, the potential exists for home shoppers to search farther from home as the year progresses. During the second quarter, people looking for homes in Seattle, Portland, Los Angeles and San Diego from outside markets cooled, while Riverside-San Bernardino, San Francisco, and Sacramento saw an improvement in out-of-market home-buying interest. Demand in Riverside was heavily driven by Los Angeles residents, while the market also saw demand from San Diego searchers. Sacramento homes were primarily viewed by home shoppers from San Francisco, San Jose and Los Angeles, which could be prompted by remote workers seeking affordability and more space. San Francisco's out-of-market demand, however, counters these broader trends. Interest in San Francisco was primarily driven by San Jose, perhaps as nearby shoppers see an opportunity to get into the pricey, exclusive market. South and Midwest cool as COVID cases heat up While the Southeast, especially South Florida and the states of Texas, Mississippi, Alabama, Georgia and South Carolina saw an increased interest from searchers in other markets during the second quarter, out of market searches slowed in July as the region battled a spike in COVID-19 cases. At the same time, some of the region's largest metros, including Atlanta, Dallas, Houston, Miami and Tampa, saw inbound searches decrease in July compared to the second quarter. The Midwest saw increasing out of market shopping interest before the pandemic hit, but has failed to recapture that strength since. Midwestern metropolitan areas saw the rate at which home shoppers searched outside their home metros almost consistently decrease since February, other than a small improvement in May. This signals that Midwestern metros are likely still struggling to return to normal, and is consistent with concern for emerging COVID hot-spots in the region and pre-pandemic job market weakness. For more information, read the full report here. About realtor.com® Realtor.com® makes buying, selling and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.
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Remote Work to Drive Home Purchase Decisions in the Next Six Months
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Homebuying 2020: Buyers Intent on Finding a Three-Bedroom, Two-Bath House with a Garage and Remodeled Kitchen
Post COVID they are willing to pay more and commute longer distances to get it, survey finds SANTA CLARA, Calif., July 22, 2020 -- At a time when things seem to be changing more rapidly than ever before, a realtor.com® HarrisX survey of active home shoppers released today shows that homebuyers are largely looking for the same characteristics in a new home, before and after COVID. However, after months of quarantine and economic uncertainty, many are shifting the ways they approach the buying process. To identify what's changed and what hasn't, realtor.com® compared the results of its most recent survey conducted in June to a similar survey of prospective buyers in March. Both surveys polled 2,000 people looking to purchase a home within the next 12 months. "The COVID pandemic has disrupted nearly every aspect of American life. How we live and work has changed dramatically, unemployment went from record lows to historic highs in weeks and the U.S. economy is in a recession following the longest expansion in history," said realtor.com® Senior Economist, George Ratiu. "While the health and economic impact has been significant, the U.S. housing market has remained surprisingly resilient, and consumers continue to view home ownership as the foundation of the American Dream. Home buyers remain steadfast in the main attributes they seek--three bedrooms, two bathrooms and a garage. However, the quarantine has made people rethink where and why they want a new home." Post-COVID Findings The global pandemic has sent shockwaves through the U.S. economy, but housing has shown resilience and that can be seen in the survey results. According to the data, over one-third of homebuyers are more optimistic about buying a home after COVID. Additionally, despite record high unemployment levels COVID has offered a few silver linings for homebuyers -- nearly two-thirds believe shelter-in-place orders have helped them save money. Additionally, as the Federal Reserve continues to move with caution on historically low interest rates, and bond investors remain concerned about the recovery outlook, many home buyers are seeing lower mortgage rates. Among them, three-quarters say it is impacting their home search, most often helping them look for larger homes, in nicer neighborhoods. Equal shares are using lower mortgage rates to stretch their budget to get into a more expensive home, or pocket the savings by decreasing their monthly mortgage budget. In addition, home shoppers are willing to live farther away from their workplaces to find the right house, with 9 percent of respondents to the summer survey indicating they would be willing to commute over an hour, compared with the 3 percent who chose the same response in the spring. Spring vs. summer -- three bedrooms, two baths, up-to-date kitchen and garage reign supreme Price range, number of bedrooms and bathrooms, as well as most desirable home features haven't changed in buyers' minds. In fact, both surveys found that the vast majority of buyers -- 65 percent -- are shopping for homes priced under $350,000. The national median priced home in the U.S. was $342,000 in June. Additionally, garages continued to reign supreme as the most important feature for buyers in both the early spring and summer surveys. A renovated kitchen and large backyard space ranked in the top five features people want in both surveys. Interestingly, despite the stay at home orders, a large backyard ranked fairly consistent in both surveys, only gaining a 1 percent increase from 20 percent in the spring survey to 21 percent in the summer survey. Post-COVID shoppers are willing to pay more, commute longer and want move-in ready But the buying process has been impacted by the pandemic, especially buyer timelines, desired condition of the property, as well as how far buyers are willing to go financially. According to the June 2020 survey, 41 percent of buyers said they are looking to buy sooner because of COVID, 44 percent said it had no impact, and 15 percent said they have slowed their purchase timeline. Additionally, 84 percent of summer buyers are looking for a move-in-ready home, up 10 percent from 74 percent in March. At the same time, the current economic uncertainty is translating into a lower intention to compete financially among home buyers compared to this spring. After COVID, 6 percent fewer home shoppers report planning to put down a larger earnest money deposit, 6 percent fewer plan to offer above asking price, 6 percent fewer plan to offer all cash, 7 percent fewer will forgo a financing contingency, and 3 percent fewer home shoppers plan to put down more than a 20 percent down payment Additionally, while 38 percent of shoppers have increased their target price range since starting their home search, 25 percent of shoppers are looking for a lower priced home because they want to have more savings just in case (47 percent), are worried about financial security (37 percent), are concerned over general economic conditions (37 percent) or their income has decreased (26 percent). For more information about the realtor.com® home buying surveys, please visit here. About realtor.com® Realtor.com® makes buying, selling and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com. About HarrisX HarrisX is a leading opinion research company that specializes in online polling, mixed-mode polling, and data analytics. The company has a thirteen-year history assessing public opinion and behavior in the telecom, media, and technology industries through syndicated and custom research services. HarrisX runs the Mobile Insights and Total Communication Surveys, the largest syndicated consumer insights trackers in the United States for the TMT space, which include over 60,000 monthly respondents; the Telephia (beta) metering application, which captures behavioral data; and HarrisX Overnight Poll, which delivers results of general population and voter surveys within 24 hours, looking at Americans' opinions on society, politics, technology, and the economy. For more information, visit: www.harrisx.com.
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Realtor.com Launches Weekly Housing Recovery Index
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Realtor.com Forecasts a Year of Ups and Downs for Housing Market
Home sales to fall 15 percent in 2020 as prices flatten and mortgage rates end the year under 3 percent SANTA CLARA, Calif., May 13, 2020 -- Driven by pent up buyer demand and low interest rates, home sales in the U.S. will rebound in late summer and early fall as fears of the coronavirus begin to wane before experiencing a downturn again later in the year, according to a revised 2020 housing forecast released today by realtor.com®. The updated forecast finds that despite an uptick in transactions during the third quarter largely driven by millennials, home sales will be down 15 percent year-over-year. The forecast also expects home prices to flatten nationally as demand shifts to the secondary markets, which offer buyers more affordability and space. According to realtor.com® Chief Economist Danielle Hale, the path forward for home sales will resemble a W shape with homes sales rebounding in July, August, and September as fears of the coronavirus taper off and buyers return to the market to make up for the lost spring homebuying season before dipping again in the final months of the year as virus infections spike again and the lingering impact of the high unemployment rates are felt. "The U.S. housing market started 2020 with substantial momentum. With some of the best home sales and housing starts in more than a decade, our biggest challenge going into the spring home-buying season was a lack of for sale homes. The coronavirus pandemic has kept both buyers and sellers on the sidelines, preserving market balance, for now," Hale said. "As cities and states begin the slow process of reopening, we're going to see a see-saw recovery with ups and downs that will favor the nation's secondary markets in the short-term." Hale added, "The pandemic is leaving an imprint on the fabric of American life, culture, and preferences which we could see for years to come. After experiencing life under quarantine, many buyers are searching for affordability and greater space, which is driving demand out of the nation's largest metros and into surrounding smaller towns." The updated forecast projects mortgage rates to drop to new lows below 3 percent by the end of the year, primarily driven by an accommodating Fed and tepid economic outlook. Although rates will be favorable, the qualifying criteria will be tougher than normal as lenders seek to mitigate their own risks amid the unfolding economic uncertainty globally. The stricter qualifying criteria will require buyers to have higher credit scores in addition to more cash for down payments. Shopping around for the best rates and terms will be particularly important over the next year. Home prices are projected to flatten, increasing just 1.1 percent for the calendar year and possibly registering small declines by the end of 2020. With many sellers remaining on the sideline and a decline in housing starts, inventory will remain constricted. Under normal market conditions, prices would be expected to skyrocket as inventory evaporates, but buyer demand is expected to see-saw throughout the year as secondary waves of coronavirus infections continue to spread throughout the U.S. During these periods, sales are forecasted to take a hit as sellers de-list properties and buyer demand abates. Buyers will have difficulty finding available homes for sale Although qualifying for a loan will be more stringent, finding a home for sale will still remain the largest hurdle this year. The number of new homes for sale was down 45 percent year-over-year in April. However, with home prices expected to remain relatively stable, potential home buyers should have less competition from all cash investment buyers unlike the 2008 recession where they dominated the market. Buyers should expect periods of very low inventory turnover, especially if subsequent COVID-19 flare-ups occur, creating a 'what you see is what you get' environment. In some areas, buyers may find sellers leaning heavily on digital technology, such as virtual tours, instead of hosting traditional open houses. Determined buyers may need to be prepared to pull the trigger on a home sight unseen. Sellers will take a step back from the market Sellers are expected to face their own array of challenges in 2020. A well priced home would normally generate multiple offers, however, that may not be the case this year. Many sellers, who will also be subsequent buyers, will find the slower pace of sales and longer time on market have made timing a sale and a corresponding home purchase increasingly difficult compared to prior years. A lack of new homes for sale this spring -- traditionally the busiest time of year for real estate -- has signaled that sellers have adopted a certain level of patience in listing their homes. Market Drivers Baby Boomers - Many Baby Boomers, who have already held onto properties longer than expected, may decide to postpone their home sale another year until things begin to normalize. This will further constrict the number of homes for sale. The Baby Boomer generation may see their share of home purchases dwindle in 2020 as members of the generation step back from the marketplace. Millennials - Millennials will continue to be a dominant buying force in the market. Because millennials are making home purchases from a less discretionary perspective, they will continue to grow their share of home purchases. Millennials are projected to make up 50 percent of home purchases in 2020, but this number could grow if older generations decide to step back from the market. Secondary Markets - Secondary markets throughout the U.S. with resilient jobs markets could see greater than normal demand as buyers continue to search for affordability and additional space. As these markets heat up, we also expect to see a change to the mix of homes available for sale nationwide. As the mix of homes for sales shifts, we could see the national listing price decline to reflect the change towards more affordable homes. Election - The 2020 presidential election will continue to be a wild card this year. Historically, economic strength is a good predictor of how people will vote. Global Economy - The global economy will be key to watch this year. The U.S. is heavily dependent on imports and exports, so if the global economy is struggling, the U.S. will feel that impact. As the U.S. and the rest of the world continue to fight the COVID-19 pandemic, economic health here and abroad will be extremely important. EDITOR'S NOTE: The realtor.com economics team is continually tracking the impact of the coronavirus pandemic on the U.S. economy and housing market. The team's reports and analysis are available here. About realtor.com® Realtor.com® makes buying, selling and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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Nearly 3 in 4 Realtors This Week Report Sellers Haven't Lowered Listing Prices to Attract Buyers, Suggesting Calmness and No Panic Selling by Homeowners
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U.S. Housing Markets Vulnerable to Coronavirus Impact Clustered in Northeast and Florida
Nearly Half of the 50 Most Vulnerable Counties in New Jersey and Florida; Midwest and West Regions Less At Risk of Housing-Market Challenges IRVINE, Calif. -- April 7, 2020 -- ATTOM Data Solutions, curator of the nation's premier property database and first property data provider of Data-as-a-Service (DaaS), today released a Special Report spotlighting county-level housing markets around the United States that are more or less vulnerable to the impact of the Coronavirus pandemic. The report shows that the Northeast has the largest concentration of the most at-risk counties, with clusters in New Jersey and Florida, while the West and Midwest have the smallest. The report reveals that housing markets in 14 of New Jersey's 21 counties are among the 50 most vulnerable in the country to the economic impact of the Coronavirus. The top 50 also include four in New York, three in Connecticut and 10 from Florida, but only one in California, none in other West Coast states and only one in the Southwest. Markets are considered more or less at risk based on the percentage of housing units receiving a foreclosure notice in Q4 2019, the percent of homes underwater (LTV 100 or greater) in Q4 2019, and the percentage of local wages required to pay for major home ownership expenses. Rankings are based on a combination of those three categories in 483 counties around the United States with sufficient data to analyze. Counties were ranked in each category, from lowest to highest, with the overall conclusions based on a combination of the three rankings. See below for the full methodology. "It's too early to tell how much effect the Coronavirus fallout will have on different housing markets around the country. But the impact is likely to be significant from region to region and county to county," said Todd Teta, chief product officer with ATTOM Data Solutions. "What we've done is spotlight areas that appear to be more or less at risk based on several important factors. From that analysis, it looks like the Northeast is more at risk than other areas. As we head into the Spring home buying season, the next few months will reveal how severe the impact will be." High-level findings from the analysis: New Jersey and Florida have 24 of the 50 most vulnerable counties from among the 483 included in the report. The 14 counties in New Jersey include five in the New York City suburban area: Bergen, Essex, Passaic, Middlesex and Union counties. The 10 counties in Florida are concentrated in the northern and central sections of the state, including Flagler, Lake, Clay, Hernando and Osceola counties. New York counties among the top 50 most at risk include Rockland County, in the New York City metropolitan area; Orange County, in the Poughkeepsie metro area; Rensselaer County, in the Albany metro area; and Ulster County, west of Poughkeepsie. Other southern counties that are in the top 50 are spread across Delaware, Maryland, North Carolina, South Carolina, Louisiana and Virginia. Among the counties analyzed, only two in the West and five in the Midwest (all in Illinois) rank among the top 50 most at risk from problems connected to the Coronavirus outbreak. The two western counties are Shasta County, CA, in the Redding metropolitan statistical area and Navajo County, AZ, northeast of Phoenix. The midwestern counties are McHenry County, IL; Kane County, IL; Will County, IL and Lake County, IL, all in the Chicago metro area; and Tazewell County, IL, in the Peoria metro area. Counties in the top 50 with a population of at least 500,000 people include Bergen, Camden, Essex, Middlesex, Ocean, Passaic and Union counties in New Jersey; Lake, Will and Kane counties in Illinois; Delaware County, PA; Prince George's County, MD; and Broward County, FL. Texas has 10 of the 50 least vulnerable counties from among the 483 included in the report, followed by Wisconsin with seven and Colorado with five. The 10 counties in Texas include three in the Dallas-Fort Worth metro area (Dallas, Collin and Tarrant counties) and two in the Midland-Odessa area (Ector and Midland counties). Eighteen of the 50 least at-risk counties have a population of at least 500,000, led by Harris County (Houston), TX; Dallas County, TX; King County (Seattle), WA; Tarrant County (Fort Worth), TX; and Santa Clara County, CA, in the San Jose metro area. Counties where median prices ranging from $160,000 to $300,000 comprise 36 of the top 50 counties most vulnerable to the impact of the Coronavirus. Counties with median home prices below $160,000 or above $300,000 make up 14 of the top 50 most vulnerable to the impact of the Coronavirus. Those with median prices below $160,000 are among the most affordable in the nation to local wage earners, while those where median prices exceed $300,000 have some homes with the highest equity and smallest foreclosure rates. Report methodology The ATTOM Data Solutions Special Coronavirus Market Impact Report is based on ATTOM's fourth-quarter 2019 residential foreclosure and underwater (LTV 100 or more) property reports and first-quarter 2020 home affordability report. Counties with sufficient data to analyze were ranked based on the percentage of properties with a foreclosure filing during the fourth quarter of 2019, the percentage of properties with outstanding mortgage balances that exceeded estimated market values in the fourth quarter of 2019, and the percentage of average local wages need to afford the major expenses of owning a median-priced home in the first quarter of 2020. Ranks then were added up to develop an overall ranking across all three categories. Equal weight was given to each category. Counties with the lowest composite ranks were considered most vulnerable to housing market problems. Those with the highest composite ranks were considered least vulnerable. About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, property data APIs, real estate market trends, marketing lists, match & append and introducing the first property data delivery solution, a cloud-based data platform that streamlines data management – Data-as-a-Service (DaaS).
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NAR Survey Finds Nearly Half of Realtors Say Home Buyer Interest Has Decreased Due to the Coronavirus Outbreak
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Exclusive Podcast Interview with NAR Chief Economist on Coronavirus Impact
National Association of REALTORS ® Chief Economist, Dr. Lawrence Yun, addresses the outlook of real estate markets in a special episode of "The Brian Buffini Show" podcast CARLSBAD, Calif., March 19, 2020 -- Chief economist and senior vice president of research for the National Association of REALTORS® (NAR), Dr. Lawrence Yun, will discuss the impact of COVID-19 on real estate and the economy in an exclusive interview with real estate leader, Brian Buffini, on The Brian Buffini Show podcast. Available Thursday, March 19, the two experts will weigh in on the state of the housing market, the short/long-term outlook and how real estate agents can safely serve their clients and community. In a wide-ranging interview covering a variety of topics, Dr. Yun reveals his belief that a vibrant real estate market should emerge after the coronavirus threat subsides, "even if it takes a little longer to contain it, there are such solid fundamentals for the real estate market, things will play out very well over the long haul." Buffini advises real estate professionals to be a reliable source of market information for their clients and use the downtime to enhance their professional skills. He wants everyone to realize that "The sky is not falling. This is a difficult time, but in many ways, it could be our finest hour." Dr. Lawrence Yun is a renowned leader in real estate and economics. His extensive research fuels major reports for NAR, which serves a membership of more than 1.4 million real estate agents. During this interview, respected industry guru Brian Buffini complements Yun with his more than 30 years of real estate expertise, providing much needed clarity in the midst of an uncertain economic situation. The Brian Buffini Show podcast is now in its 4th year of providing real estate professionals and consumers with Brian's insightful observations, along with the views his well-known guests. The podcast has become recognized as one of the most influential in the industry, with over 7 million downloads. What: "This Too Shall Pass: An Interview with Dr. Lawrence Yun," The Brian Buffini Show special episode Who: Lawrence Yun, Chief Economist for the National Association of REALTORS®, and Brian Buffini, Founder and Chairman of Buffini & Company Where: https://www.thebrianbuffinishow.com/ When: Available Thursday, March 19, 2020 @ 12:01 a.m. About Buffini & Company Buffini & Company is the largest coaching and training company in North America. Founded by real estate legend and master motivator Brian Buffini, the company provides a unique and highly-effective lead generation system. Buffini & Company's comprehensive business coaching, training programs and cutting-edge content have helped more than 3 million professionals in 37 countries improve their business, increase net profit and enhance their quality of life. Buffini & Company is headquartered in Carlsbad, California. For more information, please email [email protected] About Brian Buffini Brian Buffini, chairman and founder for Buffini & Company, was born and raised in Dublin, Ireland, emigrated to San Diego, California, in 1986 where he became the classic American rags-to-riches story. Discovering real estate, Brian quickly became one of the nation's top real estate agents working a non-traditional methodology based on building long-term relationships with clients. Today, he travels the world sharing a message of encouragement about how to "live the good life." His wit, wisdom and motivational style make him a dynamic speaker and podcast host, adept at helping people tap into their full potential and achieve their dreams. He is a New York Times, Amazon and Wall Street Journal best-seller with his latest book, "The Emigrant Edge." Learn more at brianbuffini.com.
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Housing Shortage Leads to Intense Competition Among Homebuyers
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Missing: For Sale Signs Across West, Midwest and Northeast Markets
For more options, buyers need to go South SANTA CLARA, Calif., Feb. 18, 2020 -- The nation's record low housing inventory is making shopping for a home in Buffalo and Rochester, N.Y., Columbus, Ohio, and Salt Lake City feel more like the tech hubs of San Francisco, Silicon Valley and Seattle, according to a new analysis issued today by realtor.com® that ranks the toughest and easiest markets to find a home. Based on the analysis, San Jose, Calif., led the list of toughest markets to buy a home with four listings per 1,000 homeowner households. San Jose is followed in rank order by San Francisco, Rochester and Buffalo, N.Y., and Seattle, which had an average of 5.2, 6.1, 7.1 and 7.2 for sale homes per 1,000 households, respectively. This compares to the national average of 16 listings per thousand owner-occupied homes. At the other end of the spectrum, the top 20 easiest markets to buy a home had an average of 22 for sale listings per 1,000 households. Fort Myers, Fla., topped the list of easiest markets to buy with nearly 38 listings per 1,000 households. It was followed by two other Florida markets -- Miami/Fort Lauderdale with 31.8 listings per 1,000 households and Deltona/Daytona Beach/Ormond at 30.9 listings per 1,000 households. Bridgeport/Stamford/Norwalk, Conn., with 29.7 listings per 1,000 households, and North Port/Sarasota/Bradenton with 25.8 listings per 1,000 households, rounded out the top five easiest markets to buy a home. "While the nation's housing supply continues to hit new lows just in time for the spring home-buying season, local market differences remain," said realtor.com® Chief Economist Danielle Hale. "Although the toughest list is sprinkled with some of the markets you expect, others may be a surprise -- they represent markets where housing is still affordable, but quality of life makes them attractive markets, especially for first-time buyers." Hale added, "We also found that 'easiest' doesn't mean that a market is struggling. Buyers searching in easier markets generally benefit from a combination of strong availability of homes for-sale and, with some exceptions, healthy, yet more moderate price growth." To determine the toughest and easiest markets to find a home, realtor.com® looked at the density of home listings in each market relative to the available stock of owned homes in the area and compared that to the number of active listings in a market per 1,000 households during the fourth quarter of 2019. Toughest Markets to Find a Home The top 20 toughest markets include a diverse geographic mix of larger established metros and up-and-comers where housing is still relatively affordable. They are concentrated in three regions of the country -- eight metros from the West, six from the Midwest and six from the Northeast. None of the markets are located in the South, which dominates the list of top 20 easiest markets to find a home. California led the national list of toughest markets, with six of the top 20 toughest markets coming from the state. Ohio followed with three markets -- Columbus, Cincinnati and Akron -- making the top 20 toughest markets list. The scarcity of homes is reflected in the market prices, and the trend in most of the toughest markets is toward even fewer homes for sale. The average median listing price for the top 20 toughest markets was $480,830 in January, 40 percent higher than the average median price of the top 100 largest markets. In addition, 17 of the top 20 toughest markets began 2020 with double-digit annual declines in available inventory, with a handful of markets seeing more than a 30 percent drop, including San Jose, San Francisco, Seattle, Salt Lake City and San Diego. Realtor.com®'s ranking of the top 20 toughest markets to find a home Easiest Markets to Find a Home The South dominates the list of easy places to find a home. Florida metros claimed four of the top five spots and seven of the top 20 easiest markets to find a home. Connecticut has three markets represented, while South Carolina and Texas each have two. The average median listing price for the top 20 easiest markets was $356,345 in January 2020, 3 percent higher than the average median price of the nation's 100 largest markets. Despite having a good supply of inventory, asking prices are growing and the number of for sale listings is dropping. For instance, the Fort Myers metro saw asking prices grow 8 percent year-over-year in January, while inventory declined 22 percent during the same period, which was in line with national market demand. Realtor.com®'s ranking of the top 20 easiest markets to find a home Methodology Households refer specifically to owner-occupied household counts sourced from Claritas estimates based on Census data. Listing per 1,000 households calculations were performed using data from Q4 2019. The latest listing price and active listings year-over-year data are from January 2020. About realtor.com® Realtor.com® makes buying, selling and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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Migrants Out of Expensive West Coast Metros Flocked to Portland, Oregon in Q4 2019
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What Makes Buyers Fall in Love with a Home?
This Valentine's Day realtor.com® looks at the country's most loved home features SANTA CLARA, Calif., Feb. 11, 2020 -- What makes someone fall in love with a home? Across the U.S., people swoon over fabulous pools, stunning water views and ever-sexy storage space, but a new analysis released today by realtor.com® reveals what really makes home shoppers' hearts skip a beat. Realtor.com® analyzed keyword home search data in each U.S. state to determine regional must-have features when searching for a home. According to the data, Mainers want to go "upta camp," a local term used for a cabin or cottage. Oklahomans are looking for storm shelters, and California loves solar power. In Hawaii, where real estate prices are sky-high and leaseholds are part of the for-sale market, home shoppers are searching for "fee simple" homes to ensure they own the land and the building in their little piece of paradise. Additionally, D.C. residents want to be near the Metro, the city's local public transportation system, Pennsylvanians want parking; and in New York, where outdoor space can be hard to come by, residents would love to have a balcony. "While some of the country's most-loved home features, such as accessory dwelling units or lakefront properties, will likely fetch a premium on the open market, others are more matters of the heart," said George Ratiu, senior economist, realtor.com®. "Maybe you grew up in a certain style of home or have always dreamed of having a big yard -- everyone's vision of home is unique and being able to search for what makes a house perfect for you can help you find true love in a new home." If the shed's a-rockin' Topping the list of most-loved features are the makings for man-caves, she-sheds, workshops and granny pods. Popular search terms in this category include in-law apartment, barn, ADU, casita and RV parking. Residents in 13 states, including Arizona, Idaho, Louisiana, Massachusetts, Mississippi, Montana, Nevada, New Jersey, New Mexico, Oregon, Texas, Utah and Washington, all want alternative living spaces. Whether it's because they love being in close proximity to their relatives or because they love the extra rental income, separate spaces are a top must-have item. Don't come a-knockin' Unsurprisingly, people in many states love their privacy -- acreage, fenced yard, room for horses and a country setting all make the top searched feature list. Home shoppers in six states -- Alaska, Illinois, Iowa, Vermont, Wisconsin and Wyoming -- all want room to roam and some real separation from the neighbors. Take my breath away With a large number of baby boomers reaching retirement age, America has fallen out of love with having to climb stairs. Residents in nine states -- Colorado, Delaware, Georgia, Kentucky, Maryland, North Dakota, Ohio, Rhode Island and Virginia -- don't want anything to do with multi-level homes. Top searches in these states include first-floor master, ranch, rambler and single-level. Beauty is in the eye of the beholder For some, the old adage rings true that real estate is all about location, location, location. In Arkansas, Florida, Minnesota, Missouri, Tennessee and West Virginia, having a heavenly location with beautiful views topped the must-have list. Home buyers in these states are searching for a lake view, canal, dock, lakeshore and river access as their favorite features. For others, it's all about looks. For example, in states like Connecticut and New Hampshire that have a lot of older homes, people are looking for contemporary style, while South Carolinians love traditional brick facades and Texans prefer a modern aesthetic. Most Searched Home Features For more information, read the full report here. Methodology: The top features were derived from realtor.com® home keyword search data between April 2019 and December 2019, generating a list of twenty features per state. The most searched for term from each state was selected, omitting the responses that appeared consistently across states. About realtor.com® Realtor.com® makes buying, selling and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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U.S. Homeowners Four Times as Likely to Be Equity-Rich Than Seriously Underwater
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Redfin Ranks the Hottest Neighborhoods to Watch in 2020
With a housing affordability crisis in full swing, neighborhoods with lower home prices surge in popularity SEATTLE, Jan. 28, 2020 -- The southeast states of Virginia, Florida, North Carolina and Tennessee are home to half of this year's top neighborhoods to watch, according to a new report from Redfin, the technology-powered real estate brokerage. The 2020 watch list was developed by identifying the neighborhoods with the greatest year-over-year growth in listing pageviews on Redfin.com and speaking with agents about what areas are seeing rising interest from homebuyers. Relatively affordable neighborhoods dominate this year's list. Seven of the top 10 neighborhoods to watch in 2020 have median sale prices of less than $500,000; three fell below the 2019 national median of $279,900 making them "affordable" compared to other parts of the country. Half of the neighborhoods also have median sale prices that are less than their respective metro areas. "The affordability crisis has caused people seeking single-family homes to search in areas they may not have considered before," said Redfin chief economist Daryl Fairweather. "Homebuyers continue to be priced out of Washington, D.C. and New York, so you're seeing a lot of northerners moving to the southeast, but even people from as far away as California are migrating there. The overall U.S. economy is doing better, so people feel more comfortable leaving the biggest job centers for small job centers. Plus, the southeast is becoming more metropolitan, with new restaurants and amenities that cater to younger people." Corporations are also setting up shop in the southeast. In Atlanta, money manager BlackRock is building a new innovation hub, with plans to employ 1,000 people there by 2024. Microsoft is spending $23 million to expand its campus in Charlotte and a new Volvo plant is adding thousands of jobs in Charleston. The two Carolinas cities are expected to lead the nation in home-price gains this year, according to Fairweather. Charleston saw a 104% annual net increase in the number of Redfin users looking to move in during the third quarter of 2019, and Charlotte saw a 44% boost. Below is the complete list of Redfin's neighborhoods to keep an eye on this year. All statistics on median sale price, percent of homes that sold above list price, and median days on market represent the full year of 2019. 1. Willowsford, Ashburn, VA (Washington, D.C. metro) Median sale price: $918,059Median sale price for metro area: $412,433Percent of homes that sold above list price: 16.3%Median days on market: 51 "Willowsford is a relatively new development that's very popular due to its location and community amenities. Homes are large and modern, with country-chic facades," said Redfin Virginia team manager Irene De Leon. "There are swimming pools, tennis, community events, a farm, ponds, and 40-plus miles of trails. You could probably do something every day in the community if you wanted, and it all revolves around different seasons. In 15 minutes, you can get to Washington Dulles International Airport, Reston Town Center, Route 28, the Dulles Toll Road and I-66." 2. Bal Harbour, Fort Lauderdale, FL Median sale price: $747,500Median sale price for metro area: $270,000Percent of homes that sold above list price: 4.8%Median days on market: 109 "Bal Harbour is centrally located and within walking distance of the beach, which is very appealing. There's a huge plaza with high-end shops and restaurants, and very high-rated schools. It's also close to a marina, where people can dock their boats," said Redfin Miami agent Larry Kevelier. "Plus, one of the main roads that runs through the neighborhood—Collins Avenue—offers accessibility to South Beach and Aventura." 3. Wildwood, Charlotte, NC Median sale price: $181,000Median sale price for metro area: $259,900Percent of homes that sold above list price: 35.7%Median days on market: 32 "Wildwood, just 15 minutes from downtown Charlotte, is one of the few affordable remaining areas where you can find homes under $250,000. They're cute, ranch-style, brick homes, too, that aren't in cookie-cutter neighborhoods," Redfin Charlotte market manager Marcy Prentiss said. "Homebuyers have increasingly been moving east and west of Charlotte—to neighborhoods like Wildwood—instead of north, to avoid the new I-77 toll road. Plus, there's a new development under construction nearby that will include townhomes, shopping and entertainment." 4. West Arvada, CO (Denver metro) Median sale price: $376,500Median sale price for metro area: $415,925Percent of homes that sold above list price: 17.9%Median days on market: 41 "West Arvada is a wonderful place to live. It is 20 minutes away from Boulder, 20 to 25 minutes from downtown Denver and 15 to 20 minutes from downtown Golden. The schools are also very highly rated," said Redfin Denver agent Corey Keach. "We have a bustling old town area with multiple shops, breweries and restaurants as well as a new light rail station. There's a multitude of lakes, hiking and biking trails and large dog parks. You also have a head start getting to the mountains, which for a lot of my clients is a huge plus and why they have joined me on the west side." 5. Waverly Hills, Arlington, VA (Washington, D.C. metro) Median sale price: $322,500Median sale price for metro area: $412,433Percent of homes that sold above list price: 50.8%Median days on market: 6 "Waverly Hills is the neighborhood we are all looking for. It's like something from a story book, with undulating hills, mature trees and a 'front porch culture,' Redfin Arlington agent Candee Currie said. "The homes are all unique, some with updated history and others with beautiful new architecture. Neighbors know and care for each other. The community is a haven from busy traffic, but within walking distance of schools, shops, eateries, parks and every form of public transportation. It's close to D.C., the Pentagon and now Amazon HQ2—all hubs of major employment, theatre, culture and sporting events." 6. Adamsdale, North Attleboro, MA (Providence metro) Median sale price: $400,000Median sale price for metro area: $286,000Percent of homes that sold above list price: 39.5%Median days on market: 41 "Adamsdale is located in Massachusetts and borders Cumberland, Rhode Island, making it an ideal place for traveling into Providence or Boston due to the easily accessible commuter rail," said Redfin Boston agent Alysandra Nemeth. "Adamsdale is also conveniently located near major highways, shopping and amenities all while maintaining a neighborhood setting." 7. Poplar Grove, Indianapolis, IN Median sale price: $182,300Median sale price for metro area: $190,000Percent of homes that sold above list price: 28.3%Median days on market: 10 "Poplar Grove is blowing up. First-time homebuyers are moving here to start families, as it's extremely affordable and close to areas where they enjoy hanging out, like Fountain Square, Downtown Indianapolis and Irvington," Redfin Indianapolis market manager Jake Johnson said. "The city of Indianapolis has spent significant money making the southeast side of downtown more accessible, adding walking trails, multi-use projects, better roads, etc." 8. West Ridge, Woodinville, WA (Seattle metro) Median sale price: $934,997Median sale price for metro area: $562,300Percent of homes that sold above list price: 14.7%Median days on market: 36 "This area has older homes and apartment/condo complexes, which led some buyers to overlook it in the past, but with the explosion of the Woodinville wine country as well as the new Totem Lake town center, prices have shot up," said Redfin Seattle agent Michael Wyman. 9. Raleigh, Memphis, TN Median sale price: $96,450Median sale price for metro area: $185,000Percent of homes that sold above list price: 19.7%Median days on market: 39 "Raleigh's home prices are typically less than $150,000, which appeals to investors, as well as first-time buyers. It is among the least expensive neighborhoods in Memphis," said Redfin Memphis agent VanAsa Preston. "A huge percentage of Memphis's housing stock is actually rentals, and a very large portion of these rentals is owned by out-of-state investors. Many of the views on Redfin.com may actually be coming from these potential investors, as well as first-time buyers." 10. Old Town Rocklin, Sacramento, CA Median sale price: $499,995Median sale price for metro area: $410,000Percent of homes that sold above list price: 20.5%Median days on market: 46 "Old Town Rocklin was not very populated in the past and used to have a lot of vacant strip malls. Now it's the hub for the Rocklin community, with plenty of activities for families, family-owned restaurants and hip breweries," said Redfin Sacramento agent Michelle Dane. "They built a massive adventure park called Quarry Park, with ropes courses and an amphitheater for concerts in the summer. The neighborhood hosts car shows, local food trucks and festivals. They're also starting to do newer construction, and the houses tend to be a little less expensive. Old Town Rocklin rehabilitated a lot of older properties, and they typically don't have all of those additional HOA and tax costs. Plus, it's walkable and super convenient to the freeway." To read the full report, including research methodology and a list of the top three neighborhoods in many of the largest metro areas in the U.S., please visit: https://www.redfin.com/blog/hottest-neighborhoods-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 $85 billion.
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A Millennial Sized Problem Stands in Front of Gen Z Homebuyers
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U.S. Housing Market Short 3.8 Million New Homes
Realtor.com sees opportunity for homebuilders; frustration over low inventory for buyers SANTA CLARA, Calif., Jan. 21, 2020 -- As the new decade begins with a strong economy and low interest rates, home buyers still face a big hurdle -- extremely low inventory. An analysis released today by realtor.com found that the 5.9 million single family homes that were built between 2012 and 2019 are simply not enough to offset the 9.8 million new households formed during that time. At the end of 2019, homebuilder confidence reached a two-decade high, driven in large part by robust economic growth. Single family home starts per 1,000 households grew from 4.6 in 2012 to 7.3 in 2019, taking the eight-year average to 6.2. And while that growth was needed, levels still remain well below the two-decade average, according to realtor.com®'s findings. Realtor.com® economists estimate that even with an above average pace of construction, it would take homebuilders four to five years to get back to equilibrium. "Simply put, new home starts are not keeping pace with demand. Homebuilders have a mountain of opportunity, but a big hill to climb," said Javier Vivas, director of economic research, realtor.com®. "The current inventory crisis and the need for 3.8 million new homes means a nearly insatiable appetite from potential buyers, especially in the lower end of the market." The 2008 financial crisis led home builders to become much more conservative -- building less and focusing on higher end homes with bigger margins. As such, the gap between inventory and demand is focused largely on entry-level and mid-range homes and is exaggerated by the fact that baby boomers are increasingly aging in place; not freeing up existing homes for new buyers to enter the market. "Large populations of renters and well-qualified potential buyers with strong incomes are waiting in the wings. Assuming the economy avoids a full-on recession and rates remain low, the window for builders remains wide open. If builders can deliver homes at adequate price points, absorption will continue to strengthen through the first half of the decade," Vivas said. Heading into the 2020s, growing demographics and strong economic fundamentals should continue to underpin home builder confidence. However, solving the home supply puzzle is more than just a game of volume, and timing can be tricky. On average, consumers need about two to three years of solid income and stability to save for a down payment. With today's strong economy and low likelihood of a downturn in the next few months, now may be the right time for builders to make a move, according to the report's findings. "It's easy to understand why builders have been cautious in an effort to avoid overbuilding, but we believe that demand for new homes will remain strong, and homebuilders could represent a bright spot for housing in the decade ahead," Vivas said. For more information, read the full report 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®.
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Redfin Ranks the Most Competitive Neighborhoods of 2019
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Waning Affordability Contributes to Slower Job Growth
WASHINGTON (January 15, 2020) -- Metro areas where affordability has worsened over the last five years have seen a decline in job growth during that same period. These findings come from a new National Association of Realtors® study, which examined the top 174 metro areas and ranked them based on affordability. NAR analyzed the shift in affordability ranking, considering the pace of non-farm payroll job growth in 2019 Q3 compared to average job growth from 2014 to 2018. The NAR report, "Home Affordability Index Ranking and Payroll Job Growth," found that affordability rankings declined in 81 metro areas, 34 of which saw non-farm job growth fall faster in 2019 Q3 than the national rate over the previous five years. Those 81 metro areas need more housing inventory to boost affordability, according to Lawrence Yun, NAR chief economist. "Job growth has slowed in these areas in part because limited supply is making homes less affordable," he said. "As inventory continues to decline and affordability worsens, workers, businesses and companies are less incentivized to do business in these areas." Boise, Idaho, experienced the largest drop in affordability ranking (108th in 2014 and 153rd in 2019 Q3). From 2014 to 2019 Q3, the median sales price of single-family homes in Boise increased 75% ($172,900 in 2014; $303,100 in 2019 Q3), four times the growth rate in median family income of 18% ($62,000 to $73,101). With a steep decline in affordability, non-farm payroll employment growth slowed roughly 0.8% in 2019 Q3 from average growth during 2014 to 2018 (3.2% from 3.9%). Tampa, Fla., has also seen a rapid decline in affordability (98th in 2014; 133rd in 2019 Q3). During this same period, median single-family home prices jumped 58%, three times the growth of median family income of 19%. As affordability declined, Tampa's job growth slowed by 0.8 percentage points (2.8% vs. 2.0%). Nashville, Tenn., experienced a similar drop in affordability ranking (105th in 2014; 126th in 2019 Q3). Median single-family sales prices increased 53%, nearly double the region's median family income growth (23%). As affordability worsened, the pace of job growth was cut in half (1.9% vs 3.7%). Metro areas in the relatively affordable Midwest region were also not immune to ranking declines. Grand Rapids, Mich. (37th in 2014 to 60th in 2019 Q3); Louisville, Ky. (51st to 62nd), Indianapolis, Ind. (46th to 64th); and Columbus, Ohio (57th to 80th) all experienced drops. San Jose-Sunnyvale-Sta. Clara, Calif., is the least affordable U.S. metro region, while Anaheim-Sta. Ana-Irvine, Calif. (173rd); Los-Angeles-Long Beach Glendale, Calif. (172nd), San Francisco-Oakland, Calif. (171st), and San Diego-Carlsbad, Calif. (170th) remain among the nation's most unaffordable markets. There was no notable shift for Seattle, Wash. (164th in 2014; 164th in 2019 Q3) and Denver, Colo. (159th, 158th). In Austin, Texas, affordability ranking improved, but because it is already relatively unaffordable, the pace of job creation has slowed as well (134th, 122nd, -1.8%). Yun says worsening affordability and inventory conditions could leave some of the nation's previously fast growing metro areas unable to sustain job and economic growth. "Even fast-growing markets could be hurt and unable to further expand because of weakening affordability conditions. We must improve affordability by building more homes in line with local job market growth." Metros in Order of Affordability Rank in 2019 Q3 The metro areas with strong job growth from 2014 to 2018 that had a significant shift in affordability ranking (five or more steps) and are now experiencing slower job creation (percentage point difference) are (ranked in order of 2019 Q3 affordability): Grand Rapids-Wyoming, Mich. (60th in 2019 Q3 from 37th in 2014 -1.7%) Louisville/Jefferson County, Ky.-Ind. (62nd from 51st, -0.9%) Indianapolis-Carmel-Anderson, Ind. (64th from 46th, -0.9%) Chattanooga, Ga. (70th from 58th, -0.3%) Columbus, Ohio (80th from 57th, -1.0%) Atlanta-Sandy Springs-Marietta, Ga. (91st from 73rd, -1.1%) Spartanburg, S.C. (96th from 83rd, -0.4%) Pensacola, Ferry Pass-Brent, Fla. (111th from 84th, -1.9%) Raleigh, N.C. (112th from 90th, -0.8%) Deltona-Daytona Beach-Ormond, Fla. (125th from 94th, -1.5%) Nashville-Davidson-Murfreesboro-Franklin, Tenn. (126th from 105th, -1.8%) Tampa-St. Petersburg-Clearwater, Fla. (133rd from 98th, -0.8%) Lakeland-Winter Haven, Fla. (134th from 89th, -1.0%) Durham-Chapel Hill, N.C. (137th from 111th, -1.3%) Jacksonville, Fla. (140th from 117th, -0.8%) Salt Lake City, Utah (151st from 146th, -0.4%) Boise City-Nampa, Idaho (153rd from 108th, -0.8%) Las Vegas-Henderson-Paradise, Nev. (159th from 143rd, -1.4%) Yakima, Wash. (160th from 145th, -0.6%) Eugene, Ore. (162nd from 155th, -1.9%) Salem, Ore. (163rd from 147th, -1.5%) 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.
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Buying a Home Is More Affordable than Renting in 53 Percent of U.S. Housing Markets
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Fourth Quarter Good Time to Buy and Sell Home, Realtor Survey Says
WASHINGTON (January 9, 2020) -- More than half of Americans recently polled believe that now is a good time to make a home purchase, according to the latest consumer findings from the National Association of Realtors. The 2019 fourth-quarter survey revealed that 63% of people believe now is a good time to buy a home (equal to the 63% who said the same in 2019), with 33% saying they strongly believe now is a good time to buy. Moreover, as to selling, 74% of those polled believe that now is a good time to sell (identical to the percentage in quarter three). Lawrence Yun, NAR's chief economist, said these positive sentiments can be linked to the strong job market and favorable economic conditions. "The mobility rate has been very low as many have opted to stay put for longer," said Yun. "However, this latest boost – Americans saying now is a good time to move – is good news. With mortgage rates low, the timing is indeed ideal for those who want to enter into homeownership and for those looking to move on to their next home." Respondents from the silent generation (those born between 1925 and 1945) were most likely to state that now is a good time to buy (73%), while younger boomers (those born between 1955 and 1964) also overwhelmingly viewed the market favorably in terms of now being a good time to purchase (70%). NAR's fourth quarter Housing Opportunities and Market Experience (HOME) survey found that 82% of those who earn $100,000 or more said now is a good time to sell a home, with 81% of those in the West region agreeing. "The Western region has seen home prices increase to the point that costs have outpaced income," said Yun. "So, it is no wonder that those living in the West would think that now is a perfect time to place a home on the market. California especially is seeing some of the highest prices ever." The NAR study concurrently asked about home prices over the past year. Sixty-four percent of those polled said they believe prices have increased within their communities within the last 12 months. Thirty percent answered that they believe prices have remained about the same, while only 6% believe prices have decreased over that period. Respondents were asked to share expectations of community home prices over the next six months. Forty-one percent predicted that prices will remain the same in their communities during that period, while 48% said they believe prices will rise and 11% said they expect prices to fall in the next six months. Millennials at 47% were most likely to believe prices will increase in their communities. Out of the four major regions, the South had the highest number of residents who said home prices would climb over six months. Finally, the NAR survey found that 52% of those polled believe the U.S. economy is improving. This is consistent with the third quarter of 2019. For the fourth quarter, optimism is highest among individuals who earn $100,000 compared to other income levels, as well as for those who reside in rural areas compared to other locations. Forty-seven percent of millennials said they believe the economy is improving, the lowest of all age groups. Forty-one percent of those in urban areas said they believe the economy is improving, compared to 66% in rural areas. Yun took note of the contrasts of viewpoints. "Whether it is a reflection of politics or true economic conditions, there is a difference of views between rural and urban areas," he said. About NAR's HOME Survey From October through December, a sample of U.S. households was surveyed via a random-digit-dial, including a mix of cell phones and landlines. The survey was conducted by an established survey research firm, TechnoMetrica Market Intelligence. Each month approximately 900 qualified households responded to the survey. The data was compiled for this report representing a total of 2,707 household responses. 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.
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Home Purchase Sentiment Jumps
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CoreLogic Reports U.S. Overall Delinquency Rate Lowest for a September in at Least 20 Years
For the 11th consecutive month, the U.S. foreclosure rate was the lowest in at least 20 years CoreLogic, a leading global property information, analytics and data-enabled solutions provider, today released its monthly Loan Performance Insights Report. The report shows that nationally, 3.8% of mortgages were in some stage of delinquency (30 days or more past due, including those in foreclosure) in September 2019, representing a 0.6 percentage point decline in the overall delinquency rate compared with September 2018, when it was 4.4%. As of September 2019, the foreclosure inventory rate – which measures the share of mortgages in some stage of the foreclosure process – was 0.4%, down 0.1 percentage points from September 2018. The September 2019 foreclosure inventory rate tied the prior 10 months as the lowest for any month since at least January 1999. Measuring early-stage delinquency rates is important for analyzing the health of the mortgage market. To monitor mortgage performance comprehensively, CoreLogic examines all stages of delinquency, as well as transition rates, which indicate the percentage of mortgages moving from one stage of delinquency to the next. The rate for early-stage delinquencies – defined as 30 to 59 days past due – was 1.9% in September 2019, down from 2.2% in September 2018. The share of mortgages 60 to 89 days past due in September 2019 was 0.6%, down from 0.7% in September 2018. The serious delinquency rate – defined as 90 days or more past due, including loans in foreclosure – was 1.3% in September 2019, down from 1.5% in September 2018. The serious delinquency rate has remained consistent since April 2019. Since early-stage delinquencies can be volatile, CoreLogic also analyzes transition rates. The share of mortgages that transitioned from current to 30 days past due was 0.8% in September 2019, marking a 0.4% decline compared to September 2018 when the transition rate stood at 1.2%. By comparison, in January 2007, just before the start of the financial crisis, the current-to-30-day transition rate was 1.2%, while it peaked at 2% in November 2008. "The decline in delinquency rates in North and South Carolina compared with a year ago reflect the recovery from Hurricanes Florence and Michael, which hit in the autumn of 2018," said Dr. Frank Nothaft, chief economist at CoreLogic. "Shortly after a natural disaster, we tend to see a spike in delinquency rates. Depending on the extent of devastation, serious delinquency rates generally return to their pre-disaster levels within a year." No states posted a year-over-year increase in the overall delinquency rate in September 2019. The states that logged the largest annual decreases included: Mississippi (-1.1 percentage points), North Carolina (-1.1 percentage points), Louisiana (-1.0 percentage points), New Jersey (-1.0 percentage points) and South Carolina (-1.0 percentage points). In September 2019, four metropolitan areas in the Midwest and Southeast recorded small annual increases in overall delinquency rates. These metros include: Dubuque, Iowa (0.8 percentage points), Pine Bluff, Arkansas (0.6 percentage points), Dalton, Georgia (0.2 percentage points) and Eau Claire, Wisconsin (0.1 percentage points). While the nation's serious delinquency rate remains at a 14-year low, 14 metropolitan areas recorded small annual increases in their serious delinquency rates. Metros with the largest increases were Panama City, Florida (0.7 percentage points), Dubuque, Iowa (0.2 percentage points) and Pittsfield, Massachusetts (0.2 percentage points). The remaining 11 metro areas each logged an annual increase of 0.1 percentage point. "The strong labor market in the United States along with continued prudent underwriting practices for mortgage origination have combined to power favorable loan performance over the past few years," said Frank Martell, president and CEO of CoreLogic. "Unemployment reached a 50-year low in September 2019, which helped push annual delinquency rates downward for the 21st consecutive month and we expect this trend to continue as we enter into the new year." The next CoreLogic Loan Performance Insights Report will be released on January 14, 2020, featuring data for October 2019. For ongoing housing trends and data, visit the CoreLogic Insights Blog: www.corelogic.com/insights. Methodology The data in this report represents foreclosure and delinquency activity reported through September 2019. The data in this report accounts for only first liens against a property and does not include secondary liens. The delinquency, transition and foreclosure rates are measured only against homes that have an outstanding mortgage. Homes without mortgage liens are not typically subject to foreclosure and are, therefore, excluded from the analysis. Approximately one-third of homes nationally are owned outright and do not have a mortgage. CoreLogic has approximately 85% coverage of U.S. foreclosure data. 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.
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Redfin Reveals the Housing Markets that Changed the Most This Decade
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Median Home Prices Still Unaffordable for Average U.S. Wage Earners in Q4 2019
Home Ownership Consumes 32.5 Percent of Wages in Fourth Quarter, Down From 2018; Declining Mortgage Rates and Increasing Wages Overcoming Rising Prices; Home Prices Still Less Affordable Than Historic Averages in 49 Percent of Local Markets, Down from 72 Percent a Year Ago IRVINE, Calif. - Dec. 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 fourth-quarter 2019 U.S. Home Affordability Report, which shows that median home prices in the fourth quarter of 2019 were unaffordable for average wage earners in 344 of 486, or 71 percent of the U.S. counties analyzed in the report. That figure was down from 73 percent in third quarter and 75 percent from a year earlier. 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). "Home prices rose across the country by 9 percent year-over-year in the fourth quarter of 2019, and the typical home remained a financial stretch for average wage earners. However, homes were actually a bit more affordable because of declining mortgage rates combined with rising pay to overcome the continued price run-up," said Todd Teta, chief product officer with ATTOM Data Solutions. "As long as people are earning more money and shelling out less to pay off home loans, the market should remain strong with prices continuing to rise, at least in the near term. Those are big ifs, but for now this report offers some decent findings for both home seekers and home sellers." The largest populated counties where a median-priced home in the fourth quarter of 2019 was not affordable for average wage earners included Los Angeles County, CA; Maricopa County (Phoenix), AZ; San Diego County, CA; Orange County, CA (outside Los Angeles) and Miami-Dade County, FL. The 142 counties (29 percent of the 486 counties analyzed) where a median-priced home in the fourth quarter of 2019 was affordable for average wage earners included Cook County (Chicago) IL; Harris County (Houston), TX; Wayne County (Detroit), MI; Philadelphia County, PA and Cuyahoga County (Cleveland), OH. Home price appreciation outpacing wage growth in 76 percent of markets Home price appreciation outpaced average weekly wage growth in 369 of the 486 counties analyzed in the report (76 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 117 of the 486 counties (24 percent), including Orange County, CA (outside Los Angeles); Miami-Dade County, FL; Kings County (Brooklyn), NY; Queens County, NY and Santa Clara County (San Jose), CA. At least 30 percent of wages needed to buy a home in two-thirds of markets Among the 486 counties analyzed in the report, 311 (64 percent) required at least 30 percent of their annualized weekly wages to buy a home in the fourth quarter of 2019. Those counties that required the greatest percent included Marin County, CA (outside San Francisco) (111.2 percent of annualized weekly wages needed to buy a home); Kings County (Brooklyn), NY (103.6 percent); Santa Cruz County, CA, (outside San Jose) (103 percent); Monterey County, CA, (outside San Francisco) (88 percent) and Maui County, HI (84.9 percent). A total of 175 counties in the report (36 percent) required less than 30 percent of their annualized weekly wages to buy a home in the fourth quarter of 2019. Those counties that required the smallest percent included Baltimore City/County, MD (11.2 percent of annualized weekly wages needed to buy a home); Bibb County (Macon), GA (12.4 percent); Rock Island County (Davenport), IL (14.4 percent); Wayne County (Detroit), MI (15.2 percent) and Richmond County (Augusta), GA (15.2 percent). Fifty-three percent of markets more affordable than historic averages Among the 486 counties in the report, 256 (53 percent) were more affordable than their historic affordability averages in the fourth quarter of 2019, up from 48 percent in the third quarter of 2019 and 29 percent from the fourth quarter of 2018. Counties with at least 1 million people that were more affordable than their historic averages (indexes of at least 100 are considered more affordable compared to their historic averages) included Cook County (Chicago), IL (index of 119); Montgomery County, MD (outside Washington, D.C.) (118); New York County (Manhattan), NY (118); Suffolk County, NY (outside New York City) (114); and Fairfax County, VA (outside Washington, D.C.) (111). Counties with the highest affordability indexes were Fairfield County, CT (outside New Haven) (index of 137); Baltimore City/County, MD (135); Lake County, IL (outside Chicago) (135); Onslow County (Jacksonville), NC (134) and Atlantic County (Atlantic City), NJ (131). Counties with at least 1 million people that saw the biggest annual improvement in their affordability indexes included New York County (Manhattan), NY (index up 33 percent); Kings County (Brooklyn), NY (up 20 percent); Middlesex County, MA (outside Boston) (up 14 percent); Santa Clara County (San Jose), CA (up 13 percent) and Orange County, CA (outside Los Angeles) (up 11 percent). The biggest annual gains among other counties included Butte County, CA (north of Sacramento) (index up 39 percent); Bay County (Panama City), FL (up 26 percent); Florence County, SC (up 26 percent); Cecil County, MD (outside Wilmington, DE) (up 23 percent) and Bristol County, MA (outside Providence, RI) (up 21 percent). Forty-seven percent of markets less affordable than historic averages Among the 486 counties analyzed in the report, 230 (47 percent) were less affordable than their historic affordability averages in the fourth quarter of 2019, down from 52 percent of counties in the previous quarter and 71 percent of counties in the fourth quarter of 2018. 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); Tarrant County (Fort Worth), TX (83); Dallas County, TX (85); Oakland County, MI (outside Detroit) (86) and Travis County (Austin), TX (88). Counties with the lowest affordability indexes were Vanderburgh County (Evansville), IN (index of 69);Genessee County (Flint), MI (72); Canyon County (Nampa), ID (74); Benton County (Kennewick), WA (76) and Blount County, TN (outside Knoxville) (77). Among the counties with at least 1 million people, none saw their annual affordability indexes get worse. Counties that did see the biggest year-over-year fallback in their affordability indexes included Saint Louis County, MO (index down 16 percent); Jefferson County (Watertown), NY (down 16 percent); Saint Louis City/County, MO (down 15 percent); Jasper County (Joplin), MO (down 12 percent) and Saint Clair County, MI (outside Detroit) (down 10 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 486 U.S. counties with a combined population of 235.2 million. The affordability index is based on the percentage of average wages needed to make monthly house payments on a median-priced home with a 30-year fixed rate mortgage and a 3 percent down payment, including property taxes, home insurance 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 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. For instance, the nationwide median home price of $257,000 in the fourth quarter of 2019 would require an annual gross income of $67,647 for a buyer putting 3 percent down and not exceeding the recommended "front-end" debt-to-income ratio of 28 percent — meaning the buyer would not be spending more than 28 percent of his or her income on the house payment, including mortgage, property taxes and insurance. That required income is lower than the $58,214 annual income earned by an average wage earner based on the most recent average weekly wage data available from the Bureau of Labor Statistics, making a median-priced home nationwide not affordable for an average wage earner. About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, property data APIs, real estate market trends, marketing lists, match & append and introducing the first property data delivery solution, a cloud-based data platform that streamlines data management – Data-as-a-Service (DaaS).
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Redfin Unveils the Most Bikeable U.S. Cities of 2020
SEATTLE, Dec. 4, 2019 -- Minneapolis, Portland and Chicago are the most bikeable cities in the U.S. for the second year in a row, according to a new ranking from Redfin, the technology-powered real estate brokerage. The ranking is based on data from Bike Score, a tool by Redfin company Walk Score that rates the bikeability of neighborhoods, cities and addresses. Scores are based on several factors including access to bike lanes and hilliness. Cities where daily errands can be accomplished by bike score 90 points and above, cities where biking is convenient for most trips score 70 to 89 points and cities with some bike infrastructure score 50-69 points. Below is the ranking of the top 10 U.S. cities (with populations of more than 300,000) for biking: In Minneapolis and Portland, local government has committed to creating new bike infrastructure for environmental, health, affordability and safety reasons. Minneapolis has hundreds of miles of both on-street and off-street bike lanes. The Portland bike plan, with a goal of full implementation by 2030, includes hundreds of miles of bikeways. "Fair-weather bikers like myself are out in full force during the summer months in Minneapolis, but you still see bike commuters with ski goggles year round," said local Redfin agent James Garry. "Homebuyers moving to Minneapolis from a different area are always pleasantly surprised by how easy it is to bike everywhere here. The streets have dedicated bike lanes, many of which connect to suburban trails, and a lot of companies provide locker and shower facilities for bike commuters. The city's bike culture is especially important to buyers looking at downtown condos, as they're often looking to get rid of at least one car." Portland Redfin agent Daniel Brooks said dedicated bike lanes throughout the city and the Tilikum Crossing Bridge, a car-free bridge for use by cyclists, pedestrians and public transit, contribute to the area's bike culture. "We live in a relatively small area that makes for a short bike commute to work," Brooks said. "I've worked with a lot of clients who buy homes on the east side of Portland and bike to work downtown over the Tilikum bridge. We're also seeing more newly built condos with limited parking, which encourages people to ditch their cars and rely on bikes." Top 5 Bike Score increases St. Louis experienced the biggest increase in its Bike Score from 2018, up nine points to 62. It's followed by Long Beach, CA, up eight points to 69. "Long Beach added several new bike lanes to its city streets in the last few years and divided the beach path so there are designated lanes for bikers and pedestrians. The path runs along a white sand beach, providing direct access to the Pacific Ocean and the city's popular Belmont Veterans Memorial Pier," said local Redfin agent Costanza Genoese Zerbi. "Although there has been some controversy around adding bike lanes to crowded city streets—some people believe they can cause congestion and safety issues—I count myself among Long Beach residents who take advantage of the sunny Southern California weather and the bike paths." After Long Beach come Corpus Christi, TX (up 8 points to 49); Pittsburgh (up 6 points to 57) and Memphis (up 6 points to 44). To read the full report, please visit: https://www.redfin.com/blog/most-bike-friendly-cities-usa-2020. For Redfin's ranking of the most bikeable Canadian cities of 2020, visit: https://www.redfin.com/blog/most-bike-friendly-cities-canada-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 85 major metro areas across the U.S. and Canada. The company has closed more than $85 billion in home sales.
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NAR Identifies 10 Markets Expected to Outperform Over the Next Three to Five Years
WASHINGTON (December 11, 2019) -- The National Association of Realtors identified 10 markets expected to outperform over the next three to five years. In alphabetical order, the markets are: Charleston, South Carolina Charlotte, North Carolina Colorado Springs, Colorado Columbus, Ohio Dallas-Fort Worth, Texas Fort Collins, Colorado Las Vegas, Nevada Ogden, Utah Raleigh-Durham-Chapel Hill, North Carolina Tampa-St. Petersburg, Florida "Some markets are clearly positioned for exceptional longer-term performance due to their relative housing affordability combined with solid local economic expansion," said NAR's Chief Economist Lawrence Yun. "Drawing new residents from other states will also further stimulate housing demand in these markets, but this will create upward price pressures as well, especially if demand is not met by increasing supply." NAR identified the top 10 metro areas based on a myriad of factors, including domestic migration, housing affordability for new residents, consistent job growth relative to the national average, population age structure, attractiveness for retirees and home price appreciation, among other variables. "Potential buyers in these 10 markets will find conditions especially favorable to purchase a home going into the next decade," said NAR President Vince Malta, broker at Malta & Co., Inc., in San Francisco, CA. "The dream of owning a home appears even more attainable for those who move to or are currently living in these markets." Strong job growth is one factor driving up prices in these markets, with payroll employment rising about 2.5% annually in the last three years, higher than the national rate of 1.6%. In Ogden, Las Vegas, Dallas, and Raleigh, job growth rose nearly 3%. Movers flock to these markets at higher rates than the average of the 100 largest U.S. metro areas. In Colorado Springs, recent movers accounted for 21% of the total population, followed by Fort Collins at 17% and Las Vegas at 16%. These areas attract various age groups. For example, 11% of the people who moved to Tampa were 65 years and older, while 54% of recent movers in Durham were between the ages of 18 and 34. In most of these metro areas, about half of recent movers who are renting can afford to buy a home in those respective markets when compared to the nation's 100 largest metro areas. Homeownership rates in these markets are expected to increase due to the relative affordability. To view NAR's Top 10 Outperforming Markets report, visit https://www.nar.realtor/reports/top-ten-outperforming-metro-markets-report 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.
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Curious Case: A U.S. Housing Market No One Saw Coming
November inventory drops 9.5 percent year-over-year; homes priced below $200,000 decreased by a substantial 16.5 percent SANTA CLARA, Calif., Dec. 9, 2019 -- What a difference a year makes. In November 2018, higher mortgage rates and increasing inventory characterized the U.S. housing market. This November, the number of homes for sale fell nearly 10 percent year-over-year in a market where low interest rates are spurring increased demand, according to the November 2019 Housing Trends report released today by realtor.com®. "As millennials -- the largest cohort of buyers in U.S. history -- embrace homeownership and take advantage of this year's unexpectedly low mortgage rates, demand is outstripping supply, causing inventory to vanish," according to realtor.com senior economist, George Ratiu. "The housing shortage is felt acutely at the entry-level of the market, where most millennials are looking to break into the market for their first home." Ratiu added, "The issue is further compounded by the fact that sellers tend to be more reluctant to list during the colder time of year when the market typically makes a seasonal slowdown." Based on realtor.com's listing data, the shortage of available homes for sale is accelerating. Overall, inventory declined 9.5 percent in November, compared to October's drop of 6.9 percent. November's inventory declines amounted to a loss of 131,000 listings nationwide, compared to this time last year. In the nation's 50 largest metros, inventory declined by 8.8 percent year-over-year. Additionally, the volume of new listings hitting the market has decreased by 7.7 percent since last year, adding to the nation's inventory woes. Finding an affordable home still remains one of the largest obstacles to homebuyers, and is predicted to continue to be a problem for many buyers heading into 2020. The inventory of homes priced below $200,000 decreased by a substantial 16.5 percent year-over-year in November, up from the 15.2 percent decrease seen in October. Inventory decreases were the norm across all price points in November. Mid-tier inventory priced between $200,000 and $750,000 also decreased by 7.4 percent year-over-year compared to October's year-over-year drop of 4.3 percent, while high-end inventory priced above $1 million decreased by 1.7 percent year-over-year, compared to October's year-over-year increase of 1.3 percent. "The inventory decreases seen across all value ranges could in part be attributed to a spill-over effect, as the lack of inventory has pushed buyers up the price chain to stretch their budgets and search for homes above their initial price target," Ratiu noted. The metros with the sharpest drops in inventory were San Diego (-28.1 percent); Phoenix (-24.1 percent); and Rochester, N.Y. (-22.4 percent). Only four of the 50 largest metros saw inventory increase year-over-year. The largest inventory increases were in Las Vegas (+14.4 percent); Minneapolis (+11.5 percent); and San Antonio, Texas (+7.2 percent). Facing even fewer options than last year, eager buyers are acting quickly to close on the few homes that are currently available. During November, home sold in an average of 70 days nationally, two days more quickly than last year. Raleigh, N.C.; Hartford, Conn.; and Birmingham, Ala.; saw the largest declines in days on market with properties spending 10, 10, and 9, fewer days on the market than last year, respectively. Conversely, properties in some of metros found homes sitting on the market longer. Homes in Los Angeles; San Jose, Calif. and Las Vegas sold 20, 12, and 10 days more slowly than last year, respectively. Meanwhile, the national median home price has yet to adjust to the recent inventory declines after a multi-month run up in inventory earlier this year. The median U.S. listing price grew by only 3.6 percent year-over-year, to $309,000 in November, which is less than the 4.3 percent year-over-year increase seen last month. However, of the 50 largest U.S. metros, 43 saw year-over-year gains in median listing prices. Los Angeles (+16.6 percent); Rochester, N.Y. (+12.8 percent); and Birmingham, Ala. (+12.3 percent); saw the highest year-over-year median list price growth in November. Conversely, the steepest price declines were seen in Louisville, Ky. (-4.0 percent); Minneapolis (-2.0 percent); and Houston (-1.6 percent). Metros Seeing the Largest Declines in Inventory   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.
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Home Sellers Will Remain on the Sidelines in 2020
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Redfin Predicts Homebuyers Will Have Fewer Options, Bidding Wars Will Rebound in 2020
Charleston and Charlotte will lead the nation in home-price growth as more people and employers move to affordable Southeast cities SEATTLE, Nov. 25, 2019 -- The housing market will be more competitive in 2020 as the cooldown that began in the second half of 2018 comes to an end, according to new predictions released by Redfin, the technology-powered real estate brokerage. "Low mortgage rates started to revitalize the market at the end of this summer, but we won't see their full impact on demand for housing until next year," said Redfin chief economist Daryl Fairweather, who authored the report. "In 2020, buyers will have fewer homes to choose from than they have in five years. But the return of bidding wars is good news for sellers who may have been holding out this year as the market stabilized. The competition and faster price growth will tempt more homeowners and builders to list homes, which will help improve the balance between supply and demand by the end of the year." Redfin's 2020 housing market predictions: Bidding wars will rebound thanks to low mortgage rates and a lack of homes for sale Low mortgage rates will continue to strengthen homebuying demand, but due to a lack of new homes for sale and homeowners staying put longer, there will be fewer homes on the market in 2020 than in the past five years. More demand and less supply mean bidding wars will rebound in the first quarter. Redfin expects about one in four offers to face bidding wars in 2020 compared to only one in 10 in 2019. This increase in competition will push year-over-year price growth up to 6% in the first half of the year, considerably stronger than the 2% growth seen in the first half of 2019. Supply and demand will become more balanced later in the year as more listings of new and existing homes hit the market and price growth will moderate to 3%. 30-year fixed mortgage rates will stabilize at 3.8% Throughout 2020, 30-year fixed mortgage rates will remain low, hovering around 3.8%. Faced with slowing economic growth, the Federal Reserve will keep interest rates low. Although the housing market is strong, weakness in other sectors, like manufacturing, is pulling down on the economy. Because investors are already bracing for the possibility of a recession, Redfin doesn't expect mortgage rates to fall much lower than 3.5% in 2020 even if the economy weakens. If the economy strengthens, Redfin expects mortgage rates to stay below 4.1%. For the first time, Hispanic Americans will gain more wealth from home equity than white Americans In the next decade, Hispanic Americans will, for the first time, gain more home equity than white Americans. That's because the majority of new homeowners are Hispanic, and home values in Hispanic neighborhoods are increasing faster than in white neighborhoods. There are more Hispanic homeowners in Texas than in any other state, and Texas cities are likely to experience strong gains in home values over the next decade as people move here from more expensive places like San Francisco and Los Angeles. Over time, this will improve economic equality for Hispanic Americans. Climate change will become a bigger financial factor for homebuyers and sellers In 2020, homebuyers and sellers will take the consequences of climate change into account when deciding to buy. The financial costs of climate change are already becoming more tangible as fire and flood insurance premiums rise. Over the next decade, higher insurance premiums in high-risk areas will make housing even less affordable to more people. And in areas with the highest risk, insurers may stop providing insurance altogether, which means it will be nearly impossible to secure a mortgage in those areas. Charleston and Charlotte will lead the nation in home price growth Affordable Southeast cities like Charleston and Charlotte are attracting an increasing number of migrants from expensive cities, which will drive up home price growth in these areas. Charleston saw a 104% annual increase in the number of Redfin users looking to move in, relative to the number of users looking to move out, in the third quarter of 2019, and Charlotte saw a 44% increase. Migrants are attracted to the growing economies of Charleston and Charlotte—Microsoft is spending $23 million to expand its Charlotte campus, and in Charleston, the new Volvo plant is adding thousands of jobs. More city streets will become car-free In 2020, more cities will favor green modes of transit and actively discourage driving. Some cities already have plans in the works—San Francisco's Market Street will transform into a car-free corridor in 2020, and New York City drivers will have to pay to drive into the heart of the city beginning in 2021. In cities that become less car-friendly, those that frequently spend time in the city-center will place more value on a commute that doesn't require a car and move to either a walkable city-center or close to public transit. Meanwhile, some people will choose to avoid the city-center altogether and put a higher value on suburbs where they can work, play and live. To read Redfin's full predictions, please click here. To find out which of the predictions come true and which turn out to be incorrect, follow the Redfin Blog for real-time research on the housing market. About Redfin Redfin is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 85 major metro areas across the U.S. and Canada. The company has closed more than $85 billion in home sales.
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Millennials Still Want Single-Family Homes, Even if it Means a Long Commute
The price premium for single-family homes over condos is increasing in affordable inland areas and declining in expensive areas SEATTLE, Nov. 21, 2019 -- More than 90% of millennial homebuyers would choose a single-family home over an equal-priced unit in a triplex with a shorter commute, according to a new report from Redfin, the tech-powered real estate brokerage. "Even as we've seen a revival in many urban neighborhoods, the American ideal of a detached home with a white picket fence and a private lawn doesn't appear to be changing—at least for the time being," said Redfin chief economist, Daryl Fairweather. "While some cities and states like Minneapolis and Oregon are aiming to create more affordable multi-family housing options by eliminating single-family zoning, as long as Americans are willing to pay a premium for detached homes, developers are likely to continue building them." The August 2019 survey asked more than 1,400 U.S. residents who are thinking of buying or selling a home in the next year to choose a home based on the following hypothetical situation: "You find a single-family home with a backyard for the same price as a unit in a triplex (a building with three attached homes). The triplex is smaller, but meets your space needs, and has a shared backyard and significantly shorter commute. Assume the school quality and safety ratings are identical." The report breaks down the results both by age and geography. 89% of homebuyers would prefer a single-family home with a backyard over a unit in a triplex with a shorter commute. Among millennials, 93% would choose a single-family home, as would the vast majority of all other age groups over 25. Broken down by region, we found that regardless of where people live within the U.S., more than 85% of homebuyers and sellers prefer single-family homes over a unit in a triplex with a shorter commute. The price premium for single-family homes over condos is declining in expensive areas and increasing in affordable inland areas. Nationwide, the price premium for single-family homes over comparable condos—those with similar square footage, number of bedrooms and bathrooms and location—was 16% in 2019, barely changed from 15% in 2013. While the nationwide premium has remained flat, the price premium for single-family homes over condos has generally declined since 2013 in expensive metros like San Jose (single-family homes sell for 25% more than comparable condos, down from 31% in 2013) and Los Angeles (19% premium, down from 27%). At the same time, price premiums have risen in more affordable areas like Las Vegas (17% premium, up from 10%) and Birmingham (29%, up from 15%). "Homebuyers are more willing to settle for a condo or another unit with shared walls if the home itself isn't the defining feature of why they're choosing a city," said Fairweather. "In a sprawling place with an emphasis on private homes like Houston or Las Vegas, people may actually be moving there because there are plenty of affordable, large single-family homes where they can raise a family." Redfin.com users' home search behavior shows more openness to single-family alternatives now compared to 2012. When searching for homes on Redfin.com, 33% of users limited their searches to single-family homes (meaning the searcher excluded condos and townhomes) in the third quarter of 2019, down from 41% in the first quarter of 2012. That decline could reflect the pressure high home prices have been putting on buyers in the last few years. As homebuyers contend with high home prices, they may be more willing to compromise and buy a home with shared walls. Homebuyers want single-family homes, but not necessarily large ones. Although our research indicates that most homebuyers prefer single-family homes, the size of those homes has recently started trending downward after years of going up. The median home size in the U.S. in 1975 was 1,535 square feet. It peaked at 2,467 square feet for the typical home in 2015 and has dropped since then to 2,386 square feet in 2018. To read the full report, complete with metro level data, charts 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 90 major metro areas across the U.S. and Canada. The company has helped customers buy or sell homes worth more than $85 billion.
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Homeowners are Staying in Their Homes Five Years Longer Than in 2010
Increased home tenure leaves first-time homebuyers with fewer options SEATTLE, Nov. 4, 2019 -- The typical American homeowner has spent 13 years in their home, up from eight years in 2010, according to a new report from Redfin, the technology-powered real estate brokerage. Median home tenure increased in all of the 55 metros Redfin analyzed, leading to decreased inventory available for first-time homebuyers in many places. Homeowners have been in their homes the longest in Salt Lake City, Houston, Fort Worth, San Antonio, and Dallas, with homeowners in those metros staying in their homes for more than 20 years on average. "In Dallas, there are many neighborhoods that were built in the 1950s and 1960s where most of today's residents are still the original homeowners," said Dallas Redfin agent Christopher Dillard. "Because prices have been going up, and folks are gaining more and more equity, it's hard to justify selling when there aren't many if any affordable options." Many local governments have put policies in place that reduce property tax burdens for senior citizens, which have made it more affordable for older people to stay in their homes longer. In Texas, where homeowners tend to stay put the longest, homeowners over the age of 65 have the option to defer property taxes until the home is sold. Aging in place has reduced the number of homes for sale Homeowners age 67 to 85 are remaining homeowners longer, causing a shortage of 1.6 million homes, according to a report by Freddie Mac. In San Francisco, the median homeowner has been in their home for 14 years, compared to only 10 years in 2010. At the same time, there are about half as many homes for sale in San Francisco than there were in 2010, and the homes that are for sale are more expensive. The median home price has more than doubled in San Francisco since 2010. That's in part because older San Franciscans who own affordable homes are the ones staying put. In San Francisco, the median Redfin Estimate for homes where the resident hasn't changed in over 20 years is about $122,000 lower than the median Redfin Estimate for homes where the resident has changed in the last five years. That means there are fewer affordable homes for sale for first-time homebuyers, making a market more competitive. In Salt Lake City, where the median home tenure is the highest, the number of homes for sale has declined 59 percent from 2010 to 2019. That has led to a situation where current homeowners are further locked in place because they find it too difficult to sell and buy a home at the same time. "I have a client right now in West Valley who wants to move into the city in a more walkable, higher priced neighborhood," said Salt Lake City Redfin agent Daniel Lopez. "They would need to sell to buy, but are worried about making a competitive offer when they still need to sell their current home. I rarely see offers with home sale contingencies accepted in Salt Lake City because the market is competitive." Homeowners who already live with walkable access to amenities like schools, parks and shops are more likely to stay put in homes. And when homeowners stay put that means fewer homes are for sale. In zip codes with above-average Walk ScoreⓇ ratings for their metro, the median home tenure is 11 months longer and there is more competition for the homes that are listed with homes staying on the market eight fewer days compared to zip codes with below-average Walk Score ratings. That means first-time homebuyers who are still looking to own a home and start a family are relegated to neighborhoods in less walkable exurbs on the outskirts of town. Below is the median home tenure data for each metro included in Redfin's analysis. To read the full report, please visit: 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. For more information or to contact a local Redfin real estate agent, visit www.redfin.com.
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U.S. Housing Inventory Tightens as Competition Heats Up
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Trick or Treat: Nearly 60 Percent of People Who Have Lived in a Haunted House Said They Found Out after Moving In
Thirty-seven percent knew it was haunted before and moved in anyway SANTA CLARA, Calif., Oct. 23, 2019 -- Nearly 60 percent of people who have lived in a haunted house didn't know it was haunted before they moved in, according to the realtor.com fourth annual Haunted Real Estate Report, which was released today. The findings, which might cause a fright, begs the question: would you consider living in a haunted home? The survey of 1,000 people across the United States was conducted earlier this month by Toluna Research through online interviews. Here are some of the spooky findings: Forty-three percent of respondents may have had a ghost as a roommate According to the survey, 58 percent of respondents said they have never lived in a haunted home, 23 percent of respondents said they have lived in one, while 20 percent think they may have lived in a haunted home. Of those who felt certain that they lived in a haunted house, 58 percent had no idea it was haunted before moving in and 37 percent knew it was and decided to go for it anyway. Five percent said maybe. Strange noises and shadows are the most common spooky happenings So what made them think it was haunted? Sixty-five percent of those surveyed said strange noises in the house made them think it was haunted. Fifty-two percent said strange shadows in the house, followed by 48 percent who said items moved on their own, 47 percent said certain rooms felt haunted, 46 percent said they would feel touched, and 44 percent said their home had hot and cold spots. "Moving into a new home is a really exciting time, but finding out that your new abode has an unwanted guest can definitely put a damper on the celebration," according to Nate Johnson, chief marketing officer at realtor.com®. "We conduct this survey annually and it's always interesting to see the results. This year, we were surprised by how many people had unknowingly moved into a haunted house at some point in their lives, and even more so by how many people knew and decided to move in regardless." Majority of people prefer to live ghost free When asked if they would ever consider moving into a haunted house, 54 percent of respondents said there was no way. Twenty-one percent were prepared to dust off the ole' Ghostbusters costume and brave whatever spooky happenings might be plaguing the house, while 21 percent were on the fence and responded with "maybe." Interestingly, survey responses were not that different even if the home buyer didn't actually buy the home. When asked what they would do if they inherited a haunted home, 51 percent of respondents said they would take the money and run by selling it immediately. Just under a quarter -- 23 percent -- would try to flush the ghosts out with a new kitchen or floors by renovating the home. Twenty percent of these brave souls are willing to take the risk and would simply move into their new abode, while 6 percent aren't taking any risks for themselves or others -- they'd tear the place down. But respondents don't mind a neighborhood ghoul While the majority of respondents were against the prospect of choosing to live in a haunted house, the survey found they were much more amenable to living next to one, rather than in one. Nearly 43 percent of respondents were willing to live next to a house they believed was haunted, compared to the 21 percent that would actually be willing to live in one. Still, 31 percent have seen the movies and they just aren't willing to take the risk of living next to a house they believed was haunted. 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.
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Migration Trends Reach Record High as 26% of Home Searchers Look to Change Metros
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CoreLogic Releases Most Recent HPI Forecast Validation Report
Analysis shows 16 metros had forecasts with less than a 1% difference from actual values CoreLogic, a leading global property information, analytics and data-enabled solutions provider, today released its latest CoreLogic HPI Forecast Validation Report that compares its 12-month CoreLogic Home Price Index (HPI) Forecast to the actual CoreLogic Home Price Index. The report compares the changes in national and key metro-level forecasts made in June 2018 to the actual HPI index, which includes data through June 2019. The CoreLogic HPI Forecast is a projection of home prices using the CoreLogic HPI and other economic variables. National values are derived from state-level forecasts by weighing indices according to the number of housing units for each state. Published every six months, the Forecast Validation Report is designed to provide transparency into CoreLogic forecasting abilities. The report showed: Sixteen large metros had forecasts with less than a 1% difference from actual values, including the Phoenix, Houston and Milwaukee metros all coming in within 0.3%. The top 10 major metros all had forecasts within 0.5% of actual values. The national forecast prediction of a 5.7% increase was within 2.4% of the 3.3% increase of the HPI for the 12-month period ending in June 2019. Long-term affordability concerns, coupled with consumer sentiment about the general economic climate along with other economic factors caused actual home prices to increase at a slower rate. The most accurate metro-level forecast was for the Phoenix-Mesa-Scottsdale, AZ area, which at 5.9% came on target of the actual HPI increase of 5.9%. The widest metro gap was in the San Jose, California metro areas, with a 13% over-estimation of actual increase. CoreLogic noted that the variance in this under-valued metro was mainly due to a concern over long-term affordability. Severe inventory shortages and rising interest rates impacted the forecasts of several metros - including the Chicago and San Francisco areas - reflecting the overall market volatility of the past 12 months. Slowing home price appreciation across many markets over the last 12 months caused much more volatility in housing markets than has been observed over the last three years. "The latest HPI Forecast Validation report continues to demonstrate why CoreLogic is the gold standard when it comes to home price forecasting," said Ann Regan, executive, product management for CoreLogic. "While our national forecast results reflect the difficulties of forecasting in an extremely volatile market, our forecasts were still able to provide accurate, region-specific forecasts for major metro areas, providing HPI clients with the reliability they need in the current market." About CoreLogic CoreLogic, 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.
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I Owe U: Student Debt Total Reaches $1.5 Trillion, Nearly Doubles U.S. Housing Market
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Locations Close to Public Transit Boost Residential, Commercial Real Estate Values
New Joint APTA and NAR Study Examines the Relationship between Real Estate Value and Public Transportation in Seven U.S. Metropolitan Regions WASHINGTON (October 14, 2019) -- Neighborhoods located within a half-mile of public transit services outperformed those in areas farther from public transit based on a number of factors, according to a report released today by the American Public Transportation Association and the National Association of Realtors®. "The Real Estate Mantra – Locate Near Public Transportation" highlighted the critical role public transportation plays in determining real estate values, revealing that commercial and residential real estate market sales thrive when residents have mobility options close by. The report explored seven metropolitan regions – Boston; Hartford; Los Angeles; Minneapolis-St. Paul; Phoenix; Seattle; and Eugene, OR – that provide access to heavy rail, light rail, commuter rail and bus rapid transit. Residential properties within these areas had 4-24% higher median sale prices between 2012 and 2016, the report found. Commercial property near public transit also witnessed value gains in the studied cities, where four of the regions saw median sales prices per square foot increase between 5-42%. Transportation costs in transit-oriented areas are significantly lower than in other regions, with an average annual savings of $2,500 to $4,400 for the typical household. One in four households in close proximity to transit does not own a vehicle, according to the study. The seven sample areas were examined by residential and commercial sales performance, rent, neighborhood characteristics, local government interventions and housing affordability. "Public transit's benefits go beyond moving people from point A to point B," said APTA President and CEO Paul P. Skoutelas. "Public transportation is a valuable investment in our communities, our businesses, and our country. Public transportation gets people to jobs and educational opportunities and helps businesses attract employees and customers." "Access to public transportation is an extremely valuable community amenity that increases the functionality and attractiveness of neighborhoods, making nearby communities more desirable places to live, work and raise a family," said NAR 2019 First Vice President Charlie Oppler, who spoke at Monday's press conference along with 2019 New York State Association of Realtors® President Moses Seuram. "The results of our report, conducted over multiple years alongside the American Public Transportation Association, should reiterate to policymakers at all levels of government the importance of investing in modern, efficient infrastructure that facilitates growth and helps our nation keep pace in a rapidly evolving world." Neighborhoods with high-frequency public transportation are in high demand. While property values and rents have risen, contributing to healthy local economies, the rapidly increasing demand for housing near public transit has resulted in constrained housing supplies. "As the conversation surrounding housing affordability continues, public transportation agencies are critical allies in working with elected officials and community leaders in the effort to increase housing opportunities and maximize value around stations," said Skoutelas. To read the full study, visit: NAR.realtor/transportation-and-infrastructure.
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Redfin and LinkedIn Reveal the 5 Best Emerging Tech Hubs for Software Engineers to Buy a Home
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Rising Financial Wealth Boosts Demand for Vacation Homes
WASHINGTON (October 10, 2019) – Increased financial wealth and low mortgage rates boosted the demand for and price of vacation homes, according to the National Association of Realtors® 2019 U.S. Vacation Home Counties Report. Between 2013 to 2018, the median sales price in vacation home counties increased at a slightly higher pace of 36% compared to the pace of increase of all existing and new homes sold, at 31%. Median price increases occurred across both expensive and inexpensive areas. The counties with the highest price increases during this five-year span were in three states: Pennsylvania, which includes Pike and Monroe counties; Wisconsin, which contains Price and Washburn counties; and Massachusetts, which includes Nantucket. Lawrence Yun, NAR's chief economist, says the present figures are telling, especially when compared to data from 10 years prior. "As of 2018, household net worth reached an all-time high of $100.3 trillion – that's nearly double from a decade ago when wealth declined during the recession. Some of this tremendous growth in wealth, although concentrated, increased demand for vacation homes." Although most homebuyers purchase their residence with an intent to use the property as a primary home, that is not the case for all buyers. In fact, a portion of homeowners purchase a second home expecting to use it as a general family vacation spot, as a tenant rental, a means to gain equity, or – upon retirement – a future primary residence. The NAR report uses the U.S. Census Bureau's American Community Survey data to examine "vacation home counties." These areas are counties where the vacant housing for seasonal, recreational or occasional use, made up 20% or more of the county's total housing stock. Of 3,141 counties, 206 counties (6.6%) were identified as vacation home counties. Additionally, NAR identified the most and least expensive and affordable vacation home counties, and exactly who is able to afford to purchase a second home. Top Vacation Home Counties According to the NAR report, the top 26 vacation home counties – the counties with the largest percentages of vacant seasonal, recreational, or occasional use housing units – include those with nationally-known sites, as well as local destinations. Though less populated, this group includes a large number of counties along northern Michigan, Wisconsin, and Minnesota. Leading the list are counties in Massachusetts (Nantucket and Dukes, 56%; Barnstable, 41%), New Jersey (Cape May, 51%), Colorado (Grand, Summit Eagle, Jackson and Pitkin, 51%), Wisconsin (Vilas, Lincoln, Langlade, Forest and Oneida, 43%), and Michigan (Roscommon, Ogemaw, Gladwin, Iosco and Arenac, 42%). "Some people may visualize the common popular vacation destinations in the U.S. when considering a vacation home, such as counties in Florida or California," says Yun. "And although those locations have their share of vacation properties, we see that some homeowners prefer some of the other counties, including those in Massachusetts and New Jersey. These areas are often known for harsh weather conditions, but are popular nonetheless." Some other notable vacation home counties are found in Maine, Pennsylvania, New York, New Hampshire, Maryland, Delaware, North Carolina, Vermont, Florida, California, Georgia, South Carolina, Arizona, Idaho and Oregon. Most Expensive Vacation Home Counties The areas identified as the top 25 most expensive vacation home counties included many well-known summer and winter getaways. Using Black Knight property records data, Nantucket, Mass. emerged as the most expensive vacation home county in 2018, with the median sales price at $1 million. Following were other counties in Massachusetts, including Dukes, a portion of which includes Martha's Vineyard. Other places of note were Colorado, which contains counties like Pitkin, Eagle, Summit and Grand that are popular Rocky Mountain summer and winter destinations; Florida, which includes Monroe and Collier, known respectively for the Florida Keys and Naples; California, which contains the counties of Mono, Alpine and Inyo, among others, all of which are near Yosemite National Park; and Arizona, which includes Coconino county, home of part of the Grand Canyon. Taking into account the 2018 median sales price and the income of a typical family in the top 25 most expensive areas, the typical family – that is, a family earning the median income only – would be unable to afford to purchase a home in these counties. Least Expensive Vacation Home Counties Data from Black Knight property records showed that the median price for a vacation home was usually less than $100,000. The most inexpensive vacation home counties were found in Maine (Aroostook, Piscataquis, Somerset, Franklin, Oxford, Washington and Waldo), New York (Chenango and Franklin), Pennsylvania (McKean, Venango, Clarion, Elk, Potter, Clearfield and Jefferson), Missouri (Miller), and Michigan (Gogebic, Lake, Arenac, Iosco and Cheboygan). The expected annual mortgage on a 30-year mortgage with a 20% down payment for a home purchased at the median sales price is less than $5,000. Under such a scenario, the mortgage payment would account for less than 10% of the income of a typical family that purchased a vacation home in one of the top least expensive vacation destination locations. Owning a second home is more affordable for families living in these particular areas. Other Significant Findings Buyers purchasing a vacation home usually pay all-cash or opt to obtain a mortgage, and typically make a 20% down payment. Recent low mortgage rates made it more affordable to borrow to purchase a second home. Cape May, New Jersey, topped the list of vacation home counties where second home mortgages accounted for the largest share of home purchase loans. Also on that list, among other areas, was California, which has Alpine and Mono counties; New York, which has Hamilton and Delaware counties; and, among others, Colorado, which is the location of Grand and Summit counties. Most of the borrowers who obtained mortgages for second homes earned around $100,000 or more. Among borrowers for second homes, the estimated mortgage payment to income ratio ranged from 4% to 12% in the vacation home counties. The National Association of Realtors® is America's largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.
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Housing Trends Foreshadow Housing Shortage Ahead
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People Who Bought Homes in 2012 Have Earned a Total of $203 Billion in Equity
People who bought a home at the bottom of the market have earned a median $141,000 or 261% in home equity since 2012 SEATTLE, Sept. 26, 2019 -- People who purchased homes in 2012 have earned a total of $203 billion in home equity, according to a new report from Redfin, the technology-powered real estate brokerage. Individually, the typical homeowner who bought the year prices reached their lowest point following the Great Recession has earned $141,000, or 261 percent, in home equity. The typical home that sold in 2012 has increased $110,000 in value, from a median sale price of $210,000 in 2012 to an estimated value of $320,000 in September 2019. The typical 2012 homebuyer started off with $54,000 in home equity and has $195,000 today. The report is based on a Redfin analysis of the home equity earned from roughly 1.4 million homes purchased across 138 markets in the U.S. in 2012. "The opportunity to build wealth through home equity when prices hit their low point was available only to a fortunate subset of Americans who had enough cash for a down payment," said Redfin chief economist Daryl Fairweather. "And now many people who weren't able to buy into homeownership during that window of time find themselves on the other side of the housing market coin: Many areas are just plain unaffordable for people who don't have equity built up to trade in for a new home. And those who are waiting in the wings, hoping to buy a home when the next recession hits, probably won't be as lucky as buyers were in 2012. Even if home prices do come down slightly, the housing market won't be impacted nearly as much as it was during the Great Recession and home equity gains won't be nearly as big." The massive 12-figure total equity growth is driven by large, expensive coastal markets—mostly in California—where home values have increased by at least two-thirds and the typical homeowner has earned more than $300,000 in equity since 2012. The metros with the biggest total home equity gains in dollars are Los Angeles ($15 billion), Seattle ($8 billion) and Oakland ($7.9 billion). The list of places with the biggest percent increases in home equity includes many metros near large U.S. military bases, including Tacoma, Washington (1453%) and Virginia Beach (1333%), home to the largest concentration of military personnel outside of the Pentagon. That commonality is partly explained by the fact that a lot of homebuyers in those areas would have been able to take advantage of a loan from the U.S. Department of Veterans Affairs (known as a VA loan) or from the Federal Housing Administration (FHA), which often have small or no down-payment requirements, meaning their home equity started out particularly low in 2012. "Just like many other places around the country, the Hampton Roads area, which includes Virginia Beach, was hit hard during the Great Recession. But because there's such a large military presence in Virginia Beach and its surrounding cities, our housing market will always be one of the most stable in the country," said local Redfin agent Jordan Hammond. "People in the military are able to obtain VA loans, and military buyers are also often able to obtain low interest rates. That turned out to be hugely beneficial for people in the area who bought homes in the wake of the recession." Ellen Campion, a Redfin agent in Tacoma, said the housing market in her area is large enough that the military population is just one of many factors that have contributed to massive home-equity growth. "Buyers were paying too much in 2005 and 2006, and once the recession hit, a lot of those people unfortunately had their homes foreclosed on," Campion said. "So during and after the recession, folks were desperate and had to sell their homes for less than what they paid, and investors and savvy homebuyers snapped them up, often with the help of FHA loans. Now we're in a situation where it's the best of all worlds for sellers who bought homes back around 2012. The Tacoma market is so hot right now that those sellers are often able to earn six figures by selling average homes." Nine of the 10 metros with the biggest median home equity growth in dollars are in California, led by San Francisco ($741,000), San Jose ($669,000) and San Rafael ($604,000). Seattle ($364,000), is the only non-California metro on the list. Compared with the metros with the highest percent equity growth, these areas all started in 2012 with high home prices, and local homebuyers likely made much higher down payment--close to 20 percent. Since then, Coastal California and Seattle have seen enormous growth in home values, which equates to huge dollar gains in equity. To read the report, including the full methodology and list of metro-level home equity data, please visit: https://www.redfin.com/blog/home-equity-gain-after-great-recession About Redfin Redfin is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 85 major metro areas across the U.S. and Canada. The company has closed more than $85 billion in home sales.
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Median-Priced Homes Remain Unaffordable for Average Wage Earners in 74 Percent of U.S. Housing Markets
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CoreLogic Reports the Negative Equity Share Fell to 3.8% in the Second Quarter of 2019
CoreLogic, a leading global property information, analytics and data-enabled solutions provider, today released the Home Equity Report for the second quarter of 2019. The report shows that U.S. homeowners with mortgages (which account for roughly 63% of all properties) have seen their equity increase by 4.8% year over year, representing a gain of nearly $428 billion since the second quarter of 2018. The average homeowner gained $4,900 in home equity between the second quarter of 2018 and the second quarter of 2019. States that saw the largest gains include Idaho, where homeowners gained an average of $22,100; Wyoming, where homeowners gained an average of $20,400; and Nevada, where homeowners gained an average of $16,800 (Figure 1). From the first quarter of 2019 to the second quarter of 2019, the total number of mortgaged homes in negative equity decreased by 7% to 2 million homes or 3.8% of all mortgaged properties. The number of mortgaged properties in negative equity during the second quarter of 2019 fell by 9%, or 151,000 homes, compared with the second quarter of 2018 when 2.2 million homes, or 4.3% of all mortgaged properties, were in negative equity. "Borrower equity rose to an all-time high in the first half of 2019 and has more than doubled since the housing recovery started," said Dr. Frank Nothaft, chief economist for CoreLogic. "Combined with low mortgage rates, this rise in home equity supports spending on home improvements and may help improve balance sheets of households who could take out home equity loans to consolidate their debt." Negative equity, often referred to as being underwater or upside down, applies to borrowers who owe more on their mortgages than their homes are worth. Negative equity can occur because of a decline in a home's value, an increase in mortgage debt or both. Negative equity peaked at 26% of mortgaged residential properties in the fourth quarter of 2009, based on the CoreLogic equity data analysis, which began in the third quarter of 2009. The national aggregate value of negative equity was approximately $302.7 billion at the end of the second quarter of 2019. This is down quarter over quarter by approximately $2.6 billion, or 0.8%, from $305.3 billion in the first quarter of 2019 and up year over year by approximately $21 billion, or 7.5%, from $281.7 billion in the second quarter of 2018. "Home values have continued to rise in most parts of the country this year and we are seeing the benefit in higher home equity levels. The western half of the U.S. has experienced particularly strong gains in home equity recently," said Frank Martell, president and CEO of CoreLogic. "In July 2019, South Dakota and Connecticut were the only two states to post annual home price declines. These losses mirror the states' home equity performances during the second quarter as both reported negative home equity gains per borrower." For ongoing housing trends and data, visit the CoreLogic Insights Blog. 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.
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U.S. Home Flipping Returns Drop to Nearly Eight-Year Low in Q2 2019
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The "Black Friday" of Homebuying is Almost Here
The first week of Fall is the best time of the year to buy a home. It offers buyers less competition, more price reductions and greater inventory SANTA CLARA, Calif., Sept. 19, 2019 -- Many homebuyers may be ready to give up on their home search for the year, but the best time to buy a home in 2019 is the week of September 22, during which shoppers will find less competition, more price reductions and more inventory to choose from, according to new data released today by realtor.com®, the Home of Home Search. Of the 53 markets in the U.S., 41 reported the week September 22-28 as the best time to buy. According to metro level data analyzed from 2016 to 2018, there is a sweet spot in September when U.S. buyers face 26 percent less competition and there tends to be 6.1 percent more homes on the market, compared to the average week of the year. Nearly 6 percent of homes on the market go through price reductions and tend to be 2.4 percent cheaper than their peak, making this the "Black Friday" of homebuyers, only buyers won't even have to line up overnight to score on these deals. "As summer winds down and kids return to school, many families hit pause on their home search and wait until the next season to start again. With dramatically less competition, persistent buyers will feel the scales tip in their favor as eager sellers begin to cut their prices in an effort to entice a sale," said George Ratiu, senior economist of realtor.com®. "As seasonal inventory builds up and restores itself to more buyer-friendly levels, fall buyers will be in a better position to take advantage of today's low mortgage rates and increased purchasing power." Regionally, these effects are most noticeable in the West where buyers will have nearly 30 percent less competition than the average week. Listing prices are down 4 percent versus their peak and nearly 9 percent of homes will have their prices reduced. Additionally, there will be 22 percent more active listings available to buyers and homes will stay on the market nearly 38 percent longer than their peak week. All in all, this week will be a great time for western U.S. buyers to find a home. On a market by market basis, Seattle leads the nation with a 41.3 percent drop in competition compared to the average week. It is followed by Portland, Ore. (-35.5 percent); Buffalo, N.Y. (-34.6 percent); Milwaukee (-32.8 percent), and Minneapolis (-32.6 percent). This week also sees a large influx of price cuts. Nationally, nearly 6 percent of actively listed homes see their prices reduced in an attempt to sway buyers. This trend is most prevalent in Denver where 11 percent of listings have their prices reduced. Denver is followed by Salt Lake City (10.8 percent), Seattle (10.2 percent), Austin, Texas (9.9 percent) and Portland, Ore., (9.9 percent). More fresh listings entering the market also contribute to making this the best week to buy a home. With 116,000 new listings added to the national inventory, this week has 6.1 percent more listings than the average week and 76 percent more than the start of the year. Seattle leads the nation with 41 percent more listings than the average week. It is followed by Portland, Ore. (30.9 percent), San Jose, Calif. (28.6 percent), Denver (27.2 percent), and San Francisco (25.7 percent). 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®.
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CoreLogic Reports an 11.4% Year-Over-Year Decrease in Mortgage Fraud Risk in the Second Quarter of 2019
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Redfin Report: Rochester, Buffalo and Hartford at Least Risk of a Housing Downturn in the Next Recession
Another recession is unlikely to have a widespread impact on the real estate market, but some parts of the country are at more risk than others SEATTLE, Sept. 6, 2019 -- Rochester, Buffalo and Hartford have the lowest risk of a housing downturn in the next recession, according to a new report from Redfin, the technology-powered real estate brokerage. While the next recession is unlikely to have a large negative impact on the real estate market, some metro areas including Riverside, Phoenix and Miami have the highest risk. Since 1980, there have been five official recessions in the United States. In all but the 2007-2009 Great Recession, inflation-adjusted home prices only declined an average of 2.7 percent from the month before the recession began to the final month of the recession, according to the home price index data from Robert Shiller. With the Great Recession still fresh in Americans' memories, the idea of a housing crash is psychologically linked with an economic recession for many people. But historically, that usually hasn't been the case. The Great Recession is a major outlier in the relationship between home prices and recessions, largely because the overinflated housing market was its major cause. But the housing market, which remains strong, is unlikely to be a culprit or victim of the next recession. "Home prices are high right now, but they're high because there's not enough supply to meet demand, which means there's not a bubble at risk of bursting," said Redfin chief economist Daryl Fairweather. "Most of today's financed homeowners have excellent credit and a cushion of home equity, making them unlikely to default on their mortgage even if their weekly grocery bill grows or their stock portfolio shrinks in the next recession." Fairweather continued, "If the U.S. enters a recession in the next two years, it will likely be caused by the global trade war. U.S. industries that rely on exports, like the automotive industry and the agricultural industry, would be the most vulnerable and susceptible to layoffs. Homeowners who are laid off may not be able to continue covering their monthly mortgage payment and may be forced to sell their homes. And would-be homebuyers won't feel so confident about making a big purchase when they don't feel confident about their job security or their financial wellbeing. That could cause declines in home prices in markets whose economy depends on global trade, but home prices nationwide are likely to hold steady." Whatever does end up causing the next recession, housing markets in certain metro areas are at greater risk of negative impacts like declining prices and a glut of homes for sale. To identify the local housing markets most likely to feel adverse effects from the next recession, we looked at the following factors: Median home sale price-to-household income ratio (weight: 1.5, higher is riskier) Average loan-to-value ratio of recently-purchased homes (weight: 1.5, higher is riskier) Home price volatility, measured by the standard deviation of home prices year-to-year (weight: 1.5, higher is riskier) Share of home sales that are flips (weight: 1.5, higher is riskier since flipping can be volatile in a shaky economy) Diversity of local employment (weight: 1.0, less diversity is riskier) Share of the local economy dependent on exports (weight: 1.0, higher is riskier during a trade war) Share of local households headed by someone age 65 or older (weight: 0.5, higher is riskier) The metro area with the highest risk of a real estate dip during a recession is Riverside, California, with an overall score of 72.8 percent, followed by Phoenix (69.8%) and Miami (69.5%). The areas at most risk are many of the same regions where housing was hit hardest by the Great Recession, clustered in Southern California, the Southwest, and Florida. These are all areas where home prices tend to be more volatile than other parts of the country. This is likely due to their relatively high loan-to-value ratios, and larger share of the market that is dominated by home flippers. These markets tend to attract a lot of investor activity, which can drive prices up, leading local homeowners to take on more debt to afford homes in their area. The metro area with the lowest risk of a real estate dip during a recession is Rochester, New York, with an overall score of 30.4 percent, followed by nearby Buffalo (31.9%) and Hartford, Connecticut (33.9%). The areas with the least risk are heavily clustered in the Northeast and the Midwest. This is due to a number of factors, including more affordable home prices, less investor activity, and local economies that are less prone to volatile boom-bust swings. None of the metro areas in the top 10 with the lowest risk of a housing downturn is west of the Mississippi. The lowest score in the West was Denver, with an overall risk score of 41.5 percent, ranked 12 on the list. The sole metro on the West Coast with a risk score below 50 percent is San Francisco at 42.9 percent, which already began to slow earlier this year and therefore has less risk of a price downturn when the next recession hits. To read the full report, including the full list of metros and their relative risk of a housing downturn in the next recession, please visit: https://www.redfin.com/blog/next-recession-housing-market. About Redfin Redfin is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 85 major metro areas across the U.S. and Canada. The company has closed more than $85 billion in home sales.
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The Top U.S. Destinations For Movers Aren't Where You Think
Medium-sized metros offering relative affordability, strong employment and large boomer populations entice the most out-of-state buyers SANTA CLARA, Calif., Aug. 21, 2019 -- The typical home buyer only moves 15 miles from their current residence, but realtor.com's Top Moving Destinations analysis shows that metros that offer relative affordability, strong employment, and large boomer populations can entice people to pull the trigger on an out-of-state home purchase. Released today, the list is made up of mostly medium-sized markets, including: Charleston, S.C.; Boise, Idaho; Honolulu; Columbia, S.C.; Fort Myers, Fla.; Portland, Maine; Sarasota, Fla.; Greenville, S.C.; Tucson, Ariz.; and Las Vegas. Metros were ranked based on which area received the most out-of-state views on realtor.com® in the second quarter of 2019. Buyers Seek Bargains Without Going Too Far "Home prices have risen for seven consecutive years, far outpacing salary growth. Although interest rates are the lowest they have been in three years, cost has become a deal breaker for many buyers, especially in pricey West Coast metros," said realtor.com® Senior Economist, George Ratiu. "But instead of giving up on the American Dream, many buyers have decided to look for a home in medium-sized metros outside their state that offer price relief, and a similar lifestyle." Seven of the top 10 moving destinations attracted non-local buyers looking at homes with median prices 3 percent to 34 percent less expensive than their home markets, in Q2 2019. However, these destinations are not necessarily cheap; in fact, they are 16 percent higher than the national median of $315,000. But when compared to home prices in their current metro areas, they feel like a steal. For instance, Boise's median listing price of $372,500 looks more attractive compared to Los Angeles's $766,800 and Salt Lake City's $434,900. Movers are also looking to stay relatively close to home by seeking out markets that are just a quick plane ride away. Charleston, the No. 1 moving destination in America, is sought out by buyers in neighboring markets of Charlotte, N.C.; Atlanta; and New York. Boise, No. 2 on the list, is especially attractive to those in Los Angeles, Salt Lake City, and Sacramento, Calif. Booming Jobs and Low Taxes Drive Up Demand The promise of high paying jobs has always been a catalyst for buyer demand, but it's especially true for those considering relocation to a new state. According to realtor.com®'s analysis, the top 10 destinations have an average unemployment rate of 3.3 percent, which is 30 basis points lower than the national average, and 38 basis points below what out-of-state buyers encounter in their home metros. Sweetening the financial deal for out-of-state buyers are the tax incentives in these destinations. Eight of the top 10 are located in states that have lower overall tax burdens compared to the national average of 8.6, including Cape Coral-Fort Myers and North Port-Sarasota, Fla. with a 6.6 percent overall burden; Boise at 7.8 percent; and the three South Carolina metros- Charleston, Greenville and Columbia at 7.6 percent, according to WalletHub. Hot Spots Retirees and Vacationers The majority of the metros on the list are sunny locales that are popular with vacationers and retirees alike, as well as snowbirds escaping the Northern winters. In fact, the average population share of those aged 65-years and older was 19.5 percent among the top 10, compared to 16.2 nationally. The top retiree markets on this list were Sarasota, Fla.; Fort Myers, Fla.; and Tucson, Ariz. whose populations aged 65 years and older accounted for 32.3 percent, 28.7 percent, and 20.0 percent of the population, respectively. "The fact that the majority of the metros on the list are hot spots for retirees signals a shift in boomer preferences from the expensive cities where they built their careers to the more easy-going feel of vacation communities," added Ratiu. "Some of them may be initiating the purchase of their retirement home as a second home, while others may be purchasing it in their post-career stage of life." Additionally, 7.9 percent of homes sold in these markets are secondary homes, compared to the national average of just 2.7 percent. Fort Myers, Fla.; North Port, Fla.; and Tucson, Ariz. had the highest share of secondary home sales among the top 10 with 17.6 percent, 16.4 percent, and 9.2 percent, respectively. For more information, please visit: https://www.realtor.com/research/q2-2019-cross-market-demand-report/ 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.
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U.S. Housing Market Deja Vu
Increased demand spurred by lower interest rates and fewer homes coming to market reverse 10 months of inventory growth SANTA CLARA, Calif., Aug. 13, 2019 -- Lower interest rates are prompting more buyers to come into the market, putting pressure on an already tight U.S. housing market and reversing 10 months of national inventory growth, according to realtor.com's July 2019 Monthly Housing Trend report released today. The report, which tracks key trends across the market, including the national median home price, days on market and inventory, showed flat inventory growth, which could lead to inventory declines sooner than originally predicted. In July, active listings on realtor.com were flat, following slowing growth since the start of the year. Newly listed properties were down 7 percent from a year ago. The national median home price in July was $315,000, up 5.5 percent from a year ago and a decrease from last year's year-over-year growth of 8.7 percent. Additionally, July prices were down 0.2 percent from June, marking the earliest seasonal slowdown in home prices since 2012. The median number of days on market in July was 58, the same as a year ago. "July's data highlight tension in the housing markets between buyers eager to take advantage of lower mortgage rates and potential sellers concerned about slowing price growth," said George Ratiu, realtor.com's senior economist. "The decline in newly listed properties suggests that some would-be sellers are stepping back from the market, during the peak buying season, when most people are searching for their next home." Ratiu noted that although overall housing inventory had been growing, the number of homes in the entry-level segment declined. Now that trends are shifting for the market as a whole, he said challenges for entry-level and first-time buyers are mounting, including faster price growth ahead. The inventory of properties priced below $200,000 in July decreased 9.9 percent year-over-year, while at the same time, the inventory of homes priced above $750,000 increased 6.6 percent. Competition for entry-level homes continues to be tight -- homes priced below $200,000 only spent 56 days on the market, whereas properties priced over $750,000 spent 81 days on the market. Despite these challenges, some millennials are finding success. The share of millennial mortgage originations increased to 46 percent from 43 percent last year, according to realtor.com's second quarter Generational Propensity report. The report found the median home purchased by millennials was priced at $248,000, up 5 percent year-over-year, a bigger increase than either Gen X or boomers had in home purchase price. Looking across generational cohorts, the larger gains in the price of homes purchased by millennials reflect both the intense competition at the entry-level price point and the fact that some millennials have been delaying major life milestones (e.g. starting families, forming households, having children), and are skipping the starter home to purchase larger, trade-up homes. The report also found that while Gen X and boomers have increased their down payment percentages, millennials saw the average down payment slip to 8.2 percent from 8.9 percent a year ago. This increased the size of the typical millennial loan amount to $227,000 from $215,000. Lower mortgage rates are helping to cushion the impact of buying a higher-priced home and making additional debt more affordable. The monthly mortgage amount that millennials paid on a newly purchased home fell to $1,099 from $1,131 year-over-year. 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.
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Redfin Reveals the 6 U.S. Metros Where You Can Retire by Age 40
Honolulu, Boston, and D.C. top the 6 metros where high-earning, aggressive savers can enjoy an early retirement SEATTLE, Aug. 5, 2019 -- Honolulu, Boston, and Washington, D.C., are the top metros where high-earners can retire by age 40, according to a new report from Redfin, the technology-powered real estate brokerage. Redfin determined the list of metros by calculating an estimated budget for individuals who earn a household income in the 75th percentile for their metro, start working at age 22, live in a median-priced two-bedroom condo, have average annual non-housing expenditures and save the rest. Retirees must then maintain the same cost of living by relying on compounded savings and investment accounts from age 40 until age 85. "Many people dream of retirement, especially after a grueling day at the office. But accomplishing it by age 40 can feel especially lofty, short of winning the lottery. But it's not impossible. If you want to make it happen, your best strategy is to focus your efforts on living where you can earn a high income, rather than simply a place with really cheap living expenses," said Redfin chief economist Daryl Fairweather. "Saving up for early retirement requires earning enough to afford to put away thousands of dollars each month. It takes a lot of discipline to maintain such a frugal lifestyle, especially when you can afford not to. But the payoff, for some, to retire decades early might be well worth it." Below are the six U.S. metro areas where early retirement is possible, assuming you meet the following financial criteria: 1. Honolulu, HI Median sale price of a two-bedroom condo: $425,000Total non-housing expenditures: $40,74575th percentile median household income: $184,000Estimated yearly savings needed to retire by 40: $77,806 2. Boston, MA Median sale price of a two-bedroom condo: $614,000Total non-housing expenditures: $45,30175th percentile median household income: $207,500Estimated yearly savings needed to retire by 40: $82,104 3. Washington, D.C. Median sale price of a two-bedroom condo: $325,000Total non-housing expenditures: $50,82075th percentile median household income: $207,000Estimated yearly savings needed to retire by 40: $91,494 4. Chicago, IL Median sale price of a two-bedroom condo: $220,000Total non-housing expenditures: $39,32875th percentile median household income: $152,600Estimated yearly savings needed to retire by 40: $68,222 5. Tampa, FL Median sale price of a two-bedroom condo: $142,500Total non-housing expenditures: $31,52275th percentile median household income: $115,375Estimated yearly savings needed to retire by 40: $52,522 6. Baltimore, MD Median sale price of a two-bedroom condo: $200,000Total non-housing expenditures: $45,87875th percentile median household income: $170,000Estimated yearly savings needed to retire by 40: $73,673 To read the full report, please visit: https://www.redfin.com/blog/best-place-to-retire-early About Redfin Redfin is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 85 major metro areas across the U.S. and Canada. The company has closed more than $85 billion in home sales.
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Big City Metros Fall Off Realtor.com's 2019 Hottest ZIP Codes Report
ZIP code 49505 Grand Rapids, Mich., is ranked No. 1, followed by 68144 Omaha, Neb. and 83704, Boise, Idaho SANTA CLARA, Calif., July 31, 2019 -- The hottest ZIP codes in America are on the move from big cities like San Francisco and New York to quieter metros with a more suburban feel such as Omaha, Neb. and Goffstown, N.H., according to realtor.com's 2019 hottest ZIP codes ranking released today. In its fifth annual report, five ZIP codes in up and coming neighborhoods made their debut on the list boosted by extremely low home prices and even more millennial home buyers. The 2019 hottest ZIP codes America, in rank order, are: 49505 Grand Rapids, Mich.; 68144, Omaha, Neb.; 83704, Boise, Idaho; 66203 Shawnee, Kan.; 14609 Rochester, N.Y.; 48154 Livonia, Mich.; 02176 Melrose, Mass.; 76018 Arlington, Texas; 03045 Goffstown, N.H.; and 80916 Colorado Springs, Colo. Homes in this year's top 10 sell in an average of 17 days, 40 days faster than the rest of the country and 20 days faster than their respective metros, on average. Realtor.com® users view homes in these markets 3 times more often than homes in the rest of the country and 1.9 times more often than in their respective metro areas, on average. Affordability ignites even more demand in smaller, less dense locales As buyers continue to be priced out of big cities, demand is sparking up in smaller, less dense markets where housing is more affordable. Last year, the top 10 hottest ZIP codes in America included towns on the outskirts of some of the largest, most densely populated cities in the country such as New York and San Francisco. But these markets rotated off the list this year to make way for Omaha, Neb. and Manchester, N.H. Smaller metros from previous years such as: Boise, Idaho; Kansas City, Mo. and Colorado Springs, Colo. In fact, this year's top 10 hottest markets have half of the total number of households of the market's on last year's list and 7 percent fewer households per square mile. "Even though buyers are moving to smaller markets, they are looking to retain an urban lifestyle by living closer to the city center. This tells us that today's home buyers are trying to have it all -- proximity to downtown, room to grow, and affordability -- and they're finding it outside of the biggest cities in the U.S.," said Danielle Hale, chief economist for realtor.com®. "The average commute distance from this year's hottest 10 ZIPs to their downtown area is 9 miles, which is 31 percent or 4 miles closer compared to last year's top 10." Newbie ZIPs bring new trends to the top 10 Among the top 10 hottest ZIPs in America, five are making their debut on the list this year, including: No.1 Grand Rapids, Mich. (49505); No. 4 Shawnee, Kan. (66203); No. 5 Rochester, N.Y. (14609); No. 8 Arlington, Texas (76018); and No. 9 Goffstown, N.H. (03045). Although some of the traditional drivers of market hotness are represented in these areas, there are also some emerging trends of extremely low home prices, developing local economies, and even larger populations of millennials. Affordability has been a key factor driving realtor.com®'s hottest ZIP codes for the last five years. But among 2019's new ZIPs, the trend is even more extreme. When compared to the top 10 as a whole the average median listing price for the five new ZIPs is 36 percent less expensive. They are also 32 percent less expensive than both the metro and the national median home price. Although these areas are thriving in many ways, local economic indicators signal these up-and-coming neighborhoods still have a way to go. The median income of the five newbie ZIPs is $64,000, 9 percent lower than the median of the others on the list. But their average unemployment rate is strong at 3.2 percent, which is 0.2 percentage points lower than the average of the returning ZIPs, and 0.4 percentage points lower than the national rate of 3.6 percent. The number of households in these markets is projected to grow by 4.3 percent this year, faster than the national rate of 1.1 percent, but not quite as fast as expected in the returning ZIP codes, projected to grow at a rate of 7.6 percent. Millennials have played a critical part of market hotness for some time, but their role is even larger in these new ZIPs. In fact, on average, the millennial homeownership rate in these areas is 5 percent higher than their returning counterparts and exceeds the national rate by 13 percent. Overall trends driving hotness in the top 10 Among this year's top 10 hottest markets in America, there are some consistent factors driving their popularity, including: large numbers of high earning millennials scooping up homes, relatively affordable home prices and strong local job markets. In the top 10 ZIPs, millennials' salaries are on average, 13 percent greater than the national millennial median income. They also make up the greatest share of homebuyers taking on a mortgage, averaging 39 percent. Part of the appeal of these top 10 ZIPs is their relatively affordable average home price of $272,000, well below the current national median of $316,000. Another factor contributing to these hot housing market is residents have money to spend. On average, resident incomes in each of these areas are 6.5 percent higher than the national median. Additionally, jobs are expected to grow 1.3 percent this year, exceeding the projected national growth of 1.0 percent. 2019 Hottest ZIP Codes in America 1) 49505 - Grand Rapids, Mich. – Western Michigan has once again taken the top spot on realtor.com®'s hottest ZIP codes ranking, this time with ZIP 49505. Located just north of downtown Grand Rapids, this ZIP runs along the Grand River and includes plenty of green space with the Kent Country Club, and four large parks. Its strong school system, which includes City High Middle School (GreatSchools rating of 9/10), attracts many to the family-oriented area. Housing stats: Homes in this Grand Rapids ZIP sell in 10 days on average, with a median listing price of $178,050, which is up 11.3 percent year-over-year. Millennials make up the dominant buyer segment, where they account for 48 percent of new purchase mortgages. Millennials in this Grand Rapids ZIP make slightly less than the national median for millennials at $58,667 and $62,280, respectively. 2) 68144 - Omaha, Neb. – Coming in at No. 2, ZIP 68144 is centrally located just 12 miles west of downtown Omaha, with easy access to the interstate, and borders along Zorinsky Lake. Affordable housing and high-paying jobs at companies like Berkshire Hathaway, Union Pacific Railroad, and Werner Enterprises are attracting many "boomerang buyers" back to the area after living in other more expensive parts of the country. With a solid mix of both high-end and starter homes, access to downtown Omaha, and a strong school system, which includes Harvey Oaks Elementary School (GreatSchools rating of 8/10), this area has earned its spot as one of the hottest ZIPs in the nation. Housing Stats: Homes in 68144 sell in 21 days on average, with a median listing price of $238,950, which is up 6.2 percent over last year. Millennials make up the dominant buying segment in the area, where they account for 43 percent of new purchase mortgages. Millennials in 68144 make significantly more than the national median for millennials at $73,902 and $62,280, respectively. 3) 83704 Boise, Idaho – Boise is a vibrant, active city, with a mild four-season climate that allows residents to enjoy the local mountains, rivers, and lakes year-round, while also establishing itself as a new tech hotspot. ZIP code 83704 sits on Boise's western edge and runs along Route 20. As more Californians seek lower housing costs, many are buying homes in Idaho where the sunny climate and local tech employers, such as Micron Technology, are strong draws. Boise is no stranger to realtor.com®'s Hottest ZIP Codes list, this ZIP was No. 6 in 2018. Housing Stats: Homes in 83704 sell in an average of 14 days, with a median listing price of $289,950, which is up 5.5 percent year-over-year. The dominant buyer segment in the area is slightly older at 35- to 44-years-old. However, buyers aged 25- to 34-years old still make up 28 percent of new purchase mortgages. Millennials in 83704 earn significantly less than the national median for millennials at $50,581 and $63,174, respectively. 4) 66203 Shawnee, Kan. – Sitting southwest of downtown Kansas City, Mo., on the Kansas side, is ZIP 66203 a quintessential Midwestern suburb known as "Old Shawnee." This is 66203's first appearance on the hottest markets, and it offers a walkable downtown with local shops and restaurants as well as affordable home prices. Kansas City has grown in popularity over the years due to its alluring downtown that houses museums, dining, shopping, and extensive nightlife, and 66203 is an affordable alternative to last year's No. 8 ZIP in Overland Park with even easier access to the city. Housing Stats: Homes in 66203 sell in an average of 13 days and have a median listing price of $220,050, which is up 16.4 percent year-over-year. Millennials make up the dominant buyer segment in this area, where they account for 43 percent of new purchase mortgages. Millennials in 66203 earn slightly less than the national median for millennials at $61,582 and $62,280, respectively. 5) 14609 - Rochester, N.Y. – Nestled along the southern shore of Lake Ontario and split in half by the Genesee River is the pictorial city of Rochester, which is home to ZIP 14609 -- a first timer to the list. As a booming area for both medical and education industries, 14609 draws many young professionals with its tree-lined streets, high walkability, and access to nightlife. Rochester Regional Health and the University of Rochester are two of the metro area's largest employers, but Rochester is also home to the headquarters for Wegmans Food Markets, which was ranked No. 3 on Fortune's annual "Best Companies to Work For." Housing Stats: Homes in 14609 sell in 17 days on average and have a median listing price of $125,050, which is up 13.7 percent year-over-year. Millennials make up the dominant buyer segment in the area where they account for 43 percent of new purchase mortgages. However, millennials make significantly less than the national median millennial at $44,438 and $62,280, respectively. 6) 48154 - Livonia, Mich. – A western suburb of the Motor City, Livonia combines the best parts of suburban living with close proximity to the great attractions of Detroit. ZIP 48154 offers an easy 20 mile commute to downtown destinations such as the Detroit Institute of Art and the historic Eastern Market. Livonia also is equally close to many of the major employment centers scattered throughout the broader metro area, such as the headquarters of Ford Motor Company in Dearborn, Mich. Housing Stats: Homes in 48154 sell in an average of 17 days and have a median listing price of $254,950, which is up 6.2 percent year-over-year. Millennials are the dominant buyer segment in the area where they make up 36 percent of new purchase mortgages. Millennials in this Livonia ZIP make significantly more than the national median for millennials at $96,855 and $62,280, respectively. 7) 02176 - Melrose, Mass. – Located 10 miles north of Boston is the quaint gas-lamp lined city of Melrose. Boston's abundance of universities and colleges feed the area's demand for high-paying jobs, especially in pharmaceutical and medical industries where Hallmark Health System and Melrose-Wakefield Hospital are two of the area's largest employers. A strong school system, which includes Hoover Elementary School (GreatSchools rating of 7/10), draws many to the area, but the ZIP of 02176 is beyond most first-time home buyers' budgets, so many turn to renting until they are able to afford purchasing a home. Melrose is no stranger to realtor.com®'s Hottest ZIP Codes list, it was No. 7 in 2016. Housing stats: Homes in Melrose sell in an average of 18 days and have a median listing price of $629,050, down 1.7 percent year-over-year. The dominant buyer segment remains millennials who account for 43 percent of new purchase mortgages. Millennials in this ZIP have a median income of $98,803, which is $36,523 higher than the national median millennial income of $62,280. 8) 76018 - Arlington, Texas – Sitting cozy between Dallas and Fort Worth is the thriving city of Arlington, home to this year's No. 8 hottest ZIP, 76018. This is 76018's first time making it onto realtor.com®'s hottest ZIPs list. ZIP 76018 is seven miles from Globe Life Park - home of the Texas Rangers baseball team, as well as six miles from AT&T Stadium - home of the Dallas Cowboys football team, the most valuable sports franchise in the world. Arlington ISD and the University of Texas at Arlington are two of the area's largest employers. However, ZIP 76018 is only 19 miles from Fort Worth and 25 miles from Dallas, offering a plethora of employment options to those willing to commute. Housing Stats: Homes in this Arlington ZIP sell in 20 days on average and have a median listing price of $215,050, which is up 7.5 percent year-over-year. Millennials make up the dominant buyer segment in this area where they account for 34 percent of new purchase mortgages. Millennials in Arlington also make slightly more than the national median for millennials at $64,023 and $62,280, respectively. 9) 03045 - Goffstown, N.H. – Nestled an hour and a half north of Boston and just west of Manchester, N.H. is the historic, tree-lined town of Goffstown which is home to ZIP 03045. This is 03045's first time making it onto realtor.com®'s hottest ZIP codes list. The area offers residents a close-knit community, complete with parks and outdoors space, and a strong school system which includes Goffstown High School (GreatSchools rating of 7/10). Affordable homes with access to a walkable downtown that is lined with historic brick buildings that house many of the town's restaurants and shops, make it a quintessential New England town. Housing Stats: Homes in this Goffstown ZIP sell in 22 days on average and have a median listing price of $325,050, up 4.9 percent year-over-year. Millennials make up the dominant buyer segment in this area where they account for 43 percent of new purchase mortgages. Millennials in Goffstown earn significantly more than the national median for millenials at $105,449 and $62,280, respectively. 10) 80916 - Colorado Springs, Colo. – Located 70 miles south of Denver on the eastern side of the Rocky Mountains, lies the thriving outdoor-centric city of Colorado Springs with ZIP 80916 sitting on the southeastern portion of the city. This area draws a diverse nature-loving crowd with its affordable housing compared to its sister-city to the north, Denver. Colorado Springs is replete with local breweries and tasting rooms as well as many boutique restaurants that cater to the area's healthy living lifestyle. Major employers for the area include the United States Air Force Academy, Fort Carson, and nearby Peterson Air Force Base. Housing Stats: Homes in this Colorado Springs ZIP sell in an average of 21 days and have a median listing price of $245,050, which is up 2.5 percent year-over-year. Millennials make up the dominant buyer segment in the area, where they account for 34 percent of new purchase mortgages. Millennials in Colorado Springs make significantly less than the national median for millennials at $47,819 and $62,280, respectively. 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.
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Redfin Report: Racial Gaps in Homeownership, Home Equity and Wealth Widened during the Historic Decade-Long Economic Expansion
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Redfin Migration Report: Phoenix, Atlanta, Sacramento, Las Vegas and Austin Continue to Attract Thousands of Homebuyers From Pricey, High-Tax Metros
Phoenix's Arcadia, Sacramento's River Park, and Atlanta's Buckhead are the most popular neighborhoods for transplants SEATTLE, July 30, 2019 -- Twenty-five percent of home searchers looked to move to another metro area in the second quarter of 2019, compared to 24 percent during the same period last year, according to a new report from Redfin, the technology-powered real estate brokerage. The national share of home-searchers looking to relocate has been at this level—the highest on record—since the fourth quarter of 2018. 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 April through June. "People are increasingly looking to leave expensive coastal metros like New York, San Francisco and Los Angeles," said Redfin chief economist Daryl Fairweather. "Lower mortgage rates have made buying a home more affordable, but not affordable enough for typical homebuyers contending these areas' sky-high home prices and taxes. The homebuyers who are heading out of town in search of affordability don't just want to save a few hundred dollars per month, they want to save thousands of dollars per month, and the only way to achieve that kind of cost savings is to move somewhere more affordable." Moving In: Metros with the Highest Net Inflow of Redfin Users Phoenix retained the number-one spot on the list of metro areas with the highest net inflow of Redfin users in the second quarter. 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. The share of homebuyers searching in the Phoenix metro area from other metro areas was 33.7 percent in the second quarter, a slight decline from both a year earlier (34.0%) and the first quarter (34.5%). Most of the top migration destinations are relatively affordable metro areas, especially compared to the places from which they are attracting the most new residents. This is the first time that Boston has made it into the top 10 migration destinations. Most of the interest in Boston is coming from New York, which makes sense considering that Boston has similar job opportunities but sales, income, and property taxes that are all considerably lower than New York. In a separate analysis, Redfin determined the most popular neighborhoods for transplants in each of the top migration destinations, based on the share of Redfin.com home searches by users outside the area. Arcadia, Phoenix; River Park, Sacramento; and Buckhead, Atlanta topped the list of most attractive neighborhoods to newcomers, most of which were suburbs that tended to have higher median home prices than the overall metro area. 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 second quarter. Net outflow is defined as the number of people looking to leave the metro minus the number of people looking to move to the metro. To read the full migration report, including methodology and an interactive map showing the latest search patterns, please visit: https://www.redfin.com/blog/q2-2019-housing-migration-report. For more on the hottest neighborhoods in the top migration destinations, visit: https://www.redfin.com/blog/hottest-neighborhoods-in-cities-people-are-moving-to. About Redfin Redfin is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 85 major metro areas across the U.S. and Canada. The company has closed more than $85 billion in home sales.
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