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Over 1.5 Million Vacant U.S. Homes in Q3 2019 Represent 1.6 Percent of All Single-Family Homes and Condos
Over 9,600 Vacant "Zombie" Foreclosures in the Third Quarter of 2019 IRVINE, Calif. - August 15, 2019 -- ATTOM Data Solutions, curator of the nation's premier property database and first property data provider of Data-as-a-Service (DaaS), today released its Q3 2019 Vacant Property and Zombie Foreclosure Report showing there are over 1.5 million (1,530,563) U.S. single-family homes and condos vacant in the third quarter of 2019, representing 1.6 percent of all homes. The report analyzes publicly recorded real estate data collected by ATTOM Data Solutions — including foreclosure status, equity, and owner-occupancy status — matched against monthly updated vacancy data. (See full methodology enclosed below.) During the third quarter of 2019, over 304,000 homes were in the process of foreclosure, with about 3.2 percent being "zombie" foreclosures. While the count of properties in the process of foreclosure is down by nearly 22 percent since ATTOM's last foreclosure vacancy report in the same period of 2016, the number that sits empty has dropped nearly in half. "The blight of vacant, decaying properties facing foreclosure has declined dramatically across the United States – another good-news offshoot of the housing boom that's gone on for eight years," said Todd Teta, chief product officer with ATTOM Data Solutions. "A handful of areas still face notable problems with homes abandoned by owners after they get hit with foreclosure claims. But with the economy improving and the housing market still hot, an expanding number of neighborhoods across the country face little or no problem with these so-called zombie properties." High-level findings from the report: A total of 9,612 properties facing possible foreclosure have been vacated by their owners nationwide. Washington, D.C. had the highest percentage of zombie foreclosures (12.5 percent). States where the rates were above the national average of 3.2 percent included Oregon (8.8 percent), Maine (8.5 percent), Kansas (7.6 percent) and New Mexico (7.0 percent). The lowest rates – all less than 1.4 percent – were in New Hampshire, Idaho, Colorado, Connecticut and Delaware. New York had the highest actual number of zombie properties (2,428), followed by Florida (1,634), Illinois (985), Ohio (891) and New Jersey (463). Among metropolitan areas with at least 100,000 residential properties, Peoria, IL, had the highest percent of vacant foreclosures (zombies) at 16.5 percent, followed by Wichita, KS (9.5 percent), Syracuse, NY (9.3 percent), Honolulu, HI (8.5 percent) and Youngstown, OH (8.4 percent). Among zip codes with at least 100 properties in pre-foreclosure, the highest rates of owner-vacated properties were concentrated in New York, Florida, Ohio and Illinois. The zip codes with the top percentages were zip code 61605 in the Peoria, IL metropolitan statistical area with 48.6 percent, zip codes 44108 (26.0 percent), 44112 (23.0 percent), and 44105 (19.7 percent), all in the Cleveland, OH, area and rounding out the top five is zip code 14701 in Jamestown, NY with 19.6 percent. The top zombie foreclosure rates in counties with at least 500 properties in foreclosure included Peoria County, IL (21.9 percent); Baltimore City, MD (11.4 percent); Broome County, NY (11.1 percent); Onondaga County, NY (9.6 percent) and Madison County, IL (9.6 percent). The highest levels of vacant investor-owned properties were in Indiana (8.8 percent), Kansas (6.7 percent), Minnesota (6.0 percent), Ohio, (5.9 percent) and Rhode Island (5.8 percent). Report Methodology ATTOM Data Solutions analyzed county tax assessor data for more than 98 million single-family homes and condos for vacancy, broken down by foreclosure status and, owner-occupancy status. Only metropolitan statistical areas with at least 100,000 single-family homes and condos and counties with at least 50,000 single-family homes and condos were included in the analysis. Vacancy data is available here. About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, APIs, market trends, marketing lists, match & append and introducing the first property data deliver solution, a cloud-based data platform that streamlines data management – Data-as-a-Service (DaaS).
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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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When the Back to School Shopping List Includes a House
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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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New ATTOM Data Solutions Analysis Examines the Grocery Store Impact on the U.S. Housing Market
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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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Get Ready to Make a Splash! Realtor.com Reveals the Top 10 Affordable Lake Towns of 2019
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CoreLogic Special Report: The Role of Housing in the Longest Economic Expansion
A 121-Month Evaluation on How the Nation's Real Estate Market Has Impacted the Economy IRVINE, CALIF. (JULY 18, 2019) -- CoreLogic, a leading global property information, analytics and data-enabled solutions provider, today released its special report evaluating "The Role of Housing in the Longest Economic Expansion." This year, the report analyzes the U.S. housing market's impact on the latest 121-month economic expansion – the longest in the nation's history. The report examines the housing economy and looks at the growth of gross domestic product (GDP), unemployment rates and housing activity from June 2009 through July 2019. Key Takeaways The percent of homes with negative equity went from 25.9% in the first quarter of 2010 to 4.1% in the first quarter of 2019. Total home equity hit a record of $15.8 trillion at the end of the first quarter of 2019, up from $6.1 trillion in the first quarter of 2009. Between the first quarter of 2010 and the first quarter of 2019, the average equity per borrower increased from approximately $75,000 to approximately $171,000. Since 2010, the housing flip rate has increased significantly. In the first quarter of 2018, the number of properties bought and sold again within a two-year period reached its highest point at 11.4%. Since June 2009, home prices and rents have continued to grow. Through May 2019, home prices increased a cumulative 50% and single-family rents increased 33% in the United States. Rising employment rates typically have a positive impact on the housing economy as it can lead to an increase in potential home buyers and a decrease in negative equity (often referred to as being underwater or upside down, meaning borrowers owe more on their mortgages than their homes are worth). In the first quarter of 2010, 25.9% of the total number of mortgaged residential properties in the United States were in negative equity. As the market has improved over the past decade, this share dropped to 4.1% in the first quarter of 2019 (Table 1). A strong economy and an increase in total home equity helped to reduce the negative equity share. Total home equity reached a record of $15.8 trillion at the end of the first quarter of 2019, up from $6.1 trillion in the first quarter of 2009. "During the last nine years, the expansion has created more than 20 million jobs, raised family incomes and rebuilt consumer confidence," said Frank Nothaft, chief economist at CoreLogic. "The longest stretch of mortgage rates below 5% in more than 60 years has supplemented these factors. These economic forces have driven a recovery in home sales, construction, prices and home equity wealth." Housing has long been associated with wealth creation in the United States. Home flipping, or the act of buying a property with the intent to sell it quickly for a profit, is a tactic that some homeowners use to generate profit. Since the last recession, the flipping rate has increased significantly: the two-year flip rate reached its highest point in the first quarter of 2018 at 11.4%, up from its lowest level (4.9%) in the third quarter of 2010. (Figure 4) Home prices began falling just before the start of the recession and continued to decline at a more rapid pace throughout 2008 and 2009. However, from June 2009 through May 2019, home prices and rents have continued to grow. Through May 2019, home prices increased a cumulative 50% and single-family rents increased 33% in the United States. In the first quarter of 2019, 1.1 million new owners joined the housing economy, while the number of renters increased by 458,000. (Figure 3) With increasing home prices after the recession, many first-time buyers delayed homeownership, choosing to rent for longer. However, in 2018, millennial buyers – those born from 1981 to 1996 – reversed this trend by becoming the largest cohort for finance-home purchases, accounting for 44% of home-purchase mortgage applications. These millennial buyers are looking for affordability and not buying in the typical coastal cities seen in the past. According to CoreLogic Market Condition Indicators (MCI), in May 2019, four of the top 10 metros for millennial buyers were undervalued (Pittsburgh; Rochester, New York; Wichita, Kansas and Grand Rapids, Michigan), five metros were at value (Buffalo, New York; Milwaukee; Albany, New York; Provo, Utah and Des Moines, Iowa) and one metro was overvalued (Salt Lake City). Metros in California had the lowest percentage of millennials applying for a mortgage. Despite an unemployment rate near a 50-year low, inflation rates below the Federal Reserve Board's 2% target and strong GDP growth (3.1%) in the first quarter of 2019, concerns of a looming recession have been rising. The report explores recent recession indicators and looks at how the housing economy could weather the next dip. To download and read the full special report, click here. About CoreLogic CoreLogic (NYSE: CLGX), the leading provider of property insights and solutions, promotes a healthy housing market and thriving communities. Through its enhanced property data solutions, services and technologies, CoreLogic enables real estate professionals, financial institutions, insurance carriers, government agencies and other housing market participants to help millions of people find, acquire and protect their homes. For more information, please visit www.corelogic.com.
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Realtor Survey Shows Decline in Foreign Investment in U.S. Residential Real Estate
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Realtor.com Predicts Market Shift That Could Impact Buyers Well Into 2020
U.S. Inventory Declines Likely to Return by October SANTA CLARA, Calif., July 9, 2019 -- The housing market is posed for a shift that could affect buyers well into 2020 -- the resurgence of national inventory declines. According to realtor.com's July 2019 Monthly Housing Trend report released today, in just a few months* buyers may begin to see a drop in the number of homes for sale that could lead to the return of bidding wars, stronger price appreciation and quicker home sales. Continuing its unabated record growth, the U.S. median listing price in June reached its likely high point for the year at $316,000, earlier than its usual July peak due to the mismatch of what's available and what buyers want. Nationally, housing inventory grew 2.8 percent year-over-year, an addition of approximately 40,000 listings, down from May's 2.9 percent growth. The slowing of inventory gains first appeared in 2019 with a decline from 6.4 percent growth in January to 5.8 percent in February. It continued throughout the spring with 4.4 percent growth in both March and April, 2.9 percent in May and now 2.8 percent in June. If this trend continues, inventory growth will flatten over the next three months and could hit its first decline in October 2019. "It was only 18 months ago that the number of homes for sale hit its lowest level in recorded history and sparked the fiercest competition among buyers we've ever seen. If the trend we're seeing continues, overall inventory could near record lows by early next year," said Danielle Hale, chief economist for realtor.com®. "So far there's been a lackluster response to low mortgage rates, but if they do spark fresh buyer interest later in the year, U.S. inventory could set new record lows." Part of this slowdown can be attributed to the fact that newly listed homes have either declined or reported meager growth in 2019, such as June's 2.3 percent yearly decrease. According to Hale, the reason why people aren't putting their homes on the market is more difficult to determine. "It's likely a combination of rate-lock, recently decreased consumer confidence and older generations choosing to age in place," she added. Only seven years ago, 30 year fixed mortgage rates reached their lowest point at 3.3 percent since Freddie Mac began tracking this data, which prompted many homeowners to refinance. Although rates are still low, they're currently 50 basis points higher than they were in December 2012 and higher than one third of the weekly rates recorded over the last seven years, which means a substantial number of homeowners have mortgages with rates well below today's levels. If homeowners want to trade up, they would not only have to pay more for a larger home, they would pay more to finance it. Additionally, consumer confidence fell 4.4 percent over the past year, which could reflect consumer concerns over a potential recession or future economic growth. The time properties spent on the market in June 2019 was 56 days, a two-day increase from last year. Additionally, the number of homes with price reductions increased by 8.7 percent compared to the previous year, which means one in five homes on the market this June had a price cut, compared to one in six last year. *Projections based on January-June 2019 inventory trend data and assume no disruption to current trajectory. For more information on realtor.com®'s June housing trend report, please visit: https://www.realtor.com/research/june-2019-data/ Editors note: Realtor.com® is upgrading its database to a new system that allows for more enhanced listings tracking. Market level trend data is being held until the conversion is complete. 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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Median-Priced Homes Not Affordable for Average Wage Earners in 74 Percent of U.S. Housing Markets
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Redfin Report: McAllen, Texas, Salt Lake City and Grand Rapids Have the Highest Homeownership Rates for Single Mothers
31% of single mothers are homeowners nationally, down from nearly 36% in 2010 SEATTLE, June 24, 2019 -- Just 31.1 percent of single mothers nationwide owned homes in 2017, on par with the 2016 rate and down from 35.5 percent in 2010, according to a new report from Redfin, the technology-powered real estate brokerage. At 63.9 percent, the overall homeownership rate for households across the country was more than double that of single mothers, though it was also down from nearly 70 percent in 2010. Over the same time period, the national median home price rose by more than 40 percent. The metros with the highest rates of homeownership among single moms tend to be relatively affordable. McAllen, Texas, where the typical home sells for $165,000, has the highest homeownership rate among metro areas with at least 20,000 single mothers in 2017, with 46.6 percent of single moms owning homes. That's followed by Salt Lake City (41.7%), Grand Rapids (41.5%) and Minneapolis (40.3%). All but two (El Paso and San Antonio) of the top 10 metros for single-mom homeownership have higher-than-national overall homeownership rates as well. The four metros with the lowest rates of single-mom homeownership are all in California: Fresno (20.5%), Los Angeles (20.7%), San Diego (22.4%) and Bakersfield (22.6%). The metros with the lowest rates of homeownership among single mothers all have overall homeownership rates below the national rate. "Although more single moms have entered the workforce since 2015, thanks in part to a growing economy, single mothers haven't yet been able to gain increased wealth through equity from homeownership. That's because in many expensive metros, single moms aren't able to access the benefits of homeownership due to a lack of affordable homes for sale," said Redfin chief economist Daryl Fairweather. "But in areas like Salt Lake City and Minneapolis, single moms are better able to afford a home without a dual income or financial support from a partner. Beyond being a primary source for building wealth, owning a home can provide some necessary stability for children because homeowners have predictable monthly mortgage payments and don't have to worry about a landlord raising rent or selling their home." To read the full report, with additional metro-level data and analysis, please visit: https://www.redfin.com/blog/single-mother-homeownership-rate-us. About Redfin Redfin is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 85 major metro areas across the U.S. and Canada. The company has closed more than $85 billion in home sales.
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Redfin Ranks the Most Affordable Places to Get Married and Buy a Home in the Same Year
For Newlyweds, Cleveland, Detroit and Pittsburgh are the most affordable places to have a wedding and purchase their first home SEATTLE, June 11, 2019 -- Cleveland, Detroit and Pittsburgh are the most affordable places where couples can throw a wedding and also cover a down payment on their first home, according to a new report from Redfin, a technology-powered real estate brokerage. In all three Midwestern metro areas, the average combined cost of a wedding and a down payment is less than $65,000, compared with the national average of more than $109,000. San Francisco, where typical wedding and down payment costs add up to $325,000, is the most expensive place to get married and buy a home, followed by Los Angeles($168,000) and New York($158,000). To determine how much cash couples in different parts of the country would need on hand to throw a wedding and buy their first home, Redfin calculated down payment amounts in 25 metro areas, assuming a 20 percent down payment on the median list price as of April 2019. Redfin paired it with metro-level and national data on wedding costs from WeddingWire, which found the average cost of a wedding, including an engagement ring, ceremony and reception, and honeymoon to be $38,700 in 2018. Here is the full ranking of the most affordable cities to have a wedding and purchase a home, leading up to the most expensive: In expensive coastal metros including Seattle, Boston and San Diego, a down payment alone costs over $100,000, without factoring in a wedding. For couples in these places with visions of a dream wedding, it might be worth spending the money on the party, considering it is roughly half the cost of a down payment, which may be far less attainable. Even in relatively affordable housing markets like Phoenix, Minneapolis or Atlanta, a typical down payment is more than twice as much as an average wedding. If saving for a home is a priority of residents in these areas, skipping the big day and eloping to city hall might be a worthwhile strategy. To read the full report, including personal stories from Redfin employees currently navigating the wedding and home buying process, 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.
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Redfin: Millennials Could Buy Homes 3 Years Faster under Sen. Warren's Student Debt Cancellation Plan
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Newly Listed Homes Get 3.4 Times More Online Views Than Those with a Price Drop
Pricing homes accurately from the start will maximize initial homebuyer interest SEATTLE, May 28, 2019 -- Homes get 3.4 times more online views the day they are listed than they do the day the seller drops the price, according to a new report from Redfin, a technology-powered real estate brokerage. The analysis looked at Redfin.com pageviews for more than 1.2 million listings and found the average number of views each listing received per day on the market, relative to the listing date and the date of the first price drop. "It's critical to price your home to sell from the start," said Redfin chief economist Daryl Fairweather. "Fair or not, buyers judge a home by how many days it has been on the market. A home that has been on the market for more than a few weeks has a scarlet letter on it, and buyers will wonder why no one else wanted to buy it. Dropping the price can help get your home onto the radar of some buyers who are searching for homes priced just below the original price, but you likely won't be able to regain the appeal of a newly listed home. " A home for sale that is viewed by 100 buyers online in its first day receives an average of just 17 views per day after 30 days on the market. Dropping the price only boosts that to 29 views, and the bump only lasts a single day. The day after a price drop, the home's views fall back down to just 18 per day. Online views of home listings drop off steeply after the first day, with half as many visits on day two and a quarter as many after a week on the market. During the four-week period ending May 19, nearly a quarter (24.2%) of homes for sale had a price drop, up from 21 percent a year earlier, but down from the 30 percent record high posted last October. As home sellers this spring adjust to a market that's less favorable to them than it has been in years, it's increasingly important to make a home as appealing as possible to the most serious buyers, who often receive alerts when a home is first listed. "Especially in a market where bidding wars are not the norm, it can be tempting for a seller to price their home a little high to avoid leaving money on the table," explained Seattle-based Redfin listing agent Dorothee Graham. "If we have to drop the price, I'll run a new comparative market analysis (CMA) so the seller can see how much similar homes nearby are listing and selling for. Then I offer to take them in person to tour those properties so they understand where their home should be priced." "I also pull a list of everything available in that price range I'm recommending so they can see what else is out there, regardless of property type, size and condition, because this is how buyers are searching," continued Graham. "We also keep in mind price intervals and how homebuyers tend to search on Redfin and other real estate sites. A seller might want to reduce their price by just $10,000 to $15,000, but I advise that this won't work unless it puts them in a different price bracket. When you do a price drop it has to be meaningful." To read the full report, including the full methodology, please click here. About Redfin Redfin is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 85 major metro areas across the U.S. and Canada. The company has closed more than $85 billion in home sales.
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Redfin Survey: Less than Half of Homebuyers Said Tax Reform Has Affected their Search
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After Amazon HQ2: New York and D.C. Offer a Tale of Two Housing Markets
Arlington, Va. housing market continues to surge while Manhattan has cooled off SANTA CLARA, Calif., May 23, 2019 -- Being named an Amazon HQ2 winner has resulted in dramatically different outcomes for the Arlington, Va. and Manhattan, N.Y. housing markets, according to a recent realtor.com analysis released today. Although the initial announcement instantly fueled the housing markets in both cities, Amazon's later decision to pull out of Queens, N.Y., has cooled the Manhattan market, while Arlington continues to remain hot. Immediately following the November announcement, home sales in both cities jumped 50 percent year-over-year, but their similarities ended there. To date, Arlington has seen six-figure (17 percent) median list price growth of $110,000 and a more than 40 percent drop in inventory, while Manhattan has had a comparatively meager price increase of less than 3 percent growth of $40,000, and a 3 percent decrease in inventory. Another difference is the metros' geographical impact. News of the Arlington headquarters prompted a flurry of activity in the area closest to the new headquarters, but the Queens headquarters spurred growth across the bridge in Manhattan, likely due to anticipated high salaries from Amazon. "With a household name as big as Amazon moving into Arlington's backyard, we expected that home prices were going to increase, but because the number of homes for sale is not keeping up with demand, the price growth we've witnessed so far in both the mid-market and luxury sector has been dramatic," said Danielle Hale, realtor.com®'s chief economist. "Meanwhile, Manhattan's housing market, which boomed in November following the announcement, has cooled off after Amazon decided to pull out of the city." Amazon Effect Increases Home Prices At the time of Amazon's HQ2 announcement in November 2018, Arlington's median home price was $640,000. The median home price in the area has sky-rocketed since then, increasing by a whopping $110,000 or 17.3 percent to $750,000 in April. Comparatively, over the same time frame, the national median list price has only increased $17,000 or 5.5 percent. Conversely, the typical Manhattan home list price was $1.65 million in November. Since the time of the announcement and subsequent pulling out, Manhattan's median list price has increased a pedestrian 2.4 percent to $1.69 million. Sales Surge and Inventory Drops Following Announcement Even as prices are skyrocketing, Arlington's inventory reveals a market that's unable to keep up with the overwhelming demand. According to realtor.com®'s April inventory data, after sales surged, the number of active listings was down 48.2 percent, to less than 400 listings -- a massive year-over-year drop in inventory. Meanwhile in Manhattan, the housing market responded similarly in the early stages, but changed following Amazon's reversal. Initially, after the announcement in November, home sales jumped 52.1 percent year-over-year -- a night and day difference from the 0.7 percent increase Manhattan saw the previous month in October. In February, Manhattan home sales were up 11 percent year-over-year, a healthy increase, but still significantly lower than the area's initial response. In November, Manhattan had 8,275 active listings available for sale. That number dropped to 8,015 in February. Even though more homes were scooped up in Manhattan than in Arlington, it resulted in a much less noticeable, 3.1 percent decrease. Buyers Expand Their Search Area to Find a Home As the number of listings in Arlington dwindles, buyers are broadening their searches to surrounding markets. The number of active listings in the Northern Virginia area fell 22.5 percent since April 2018, and half of all homes sold rapidly in under 34 days. Meanwhile, median list prices were up 2.3 percent year-over-year, and reached $545,000 in April. Amazon's Impact Extends Into Luxury Sector While Arlington's mid-market is thriving, its luxury sector is faring even better. Luxury asking prices in Arlington -- the top 5 percent of home prices -- reached $2.4 million in April, up 22.1 percent year-over-year. At the same time, sales of million-dollar homes increased by 34.8 percent, according to realtor.com®'s most recent sales data. Similarly, luxury prices in the surrounding area of Northern Virginia reached $1.6 million, up 10.5 percent year-over-year, while sales of million-dollar homes increased by 45.7 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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Redfin: Vacant Homes Fetch Less Money and Take Longer to Sell
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Realtors Midyear Forecast: Home Sales Expected to be Stronger
WASHINGTON (May 16, 2019) -- Continued economic expansion, rising home sales and an increase in wage growth that is on par with home price growth are some of the expectations for the second half of 2019, according to speakers at today's residential real estate forum at the 2019 REALTORS® Legislative Meetings & Trade Expo. Dr. Lawrence Yun, Chief Economist at the National Association of Realtors®, delivered his 2019 midyear forecast, which predicted changing future migration patterns as buyers search for more affordable markets. Inventory in the U.S. has grown for eight straight months on a year-over-year basis, and Yun expects that to continue. "Home sales should be much stronger based on the economic fundamentals of jobs, interest rates, population and consumer confidence," said Yun. After several years of wage growth outpacing home price growth, this year both are more closely aligned as average hourly wages accelerate. "With strong job creation, wages are growing at a faster pace. Finally, wages and home prices are aligning," Yun said. "This is good news for employees." He added that this shift is a healthy development toward keeping housing affordability stable. That said, because of significant differences in home prices between metro markets, Yun says there may be a steady shift in the relocation of people and companies into more affordable regions of the country. Housing affordability had been falling according to NAR's Housing Affordability Index. "While affordability has been sliding, it is still better than we saw in the year 2000. This is due to much lower mortgage interest rates today," Yun says. Danielle Hale, Chief Economist at realtor.com®, also spoke and projects that year-over-year inventory growth will be moderate nationwide. Realtor.com® has seen listing prices up 6.9% year-over-year in April. The REALTORS® Affordability Distribution Curve and Score produced by NAR and realtor.com® shows that higher income households have more access to available inventory. "We used to see home price growth only around the coasts, but now we're seeing it throughout the country. Nationwide there are not enough affordable homes on the market, and those numbers have been declining," Hale said. The third panelist—Dr. Johannes Stroebel, associate professor of finance at New York University—discussed a recently developed paper on behavioral economics and housing. His research evaluated how Facebook data and individual beliefs about the local housing market could influence friends' purchase choices. People's beliefs about whether buying a house is a good investment are driven by the house price experiences of their friends, Stroebel said. "Friends experiences are fundamentally related to personal beliefs of the housing market investments and influence personal behavior." According to Stroebel, having Facebook friends who experience a 5% increase in home prices over the past two years can increase the probability that a renter buys a home over the next two years by 3%. "Individuals do discuss property value with their friends, and this changes behavior," he said. Positive experiences were even shown to increase size of a home individuals purchased. "When home prices in socially-connected counties go up, it causes a reaction that changes home prices locally." 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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Redfin Report: Birmingham, Little Rock and Charleston are the Most Affordable Places to Have a Baby
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Redfin Migration Report: Phoenix is Top Destination for People Looking to Leave Expensive, High-Tax Metros
More than one third of people searching Redfin.com for Phoenix homes last quarter were from out of town SEATTLE, May 6, 2019 -- Twenty-five percent of Redfin.com home searchers looked to move to another metro area in the first quarter of 2019, up from 23 percent last year, according to a new report from Redfin, the tech-powered real estate brokerage. The national share of home-searchers looking to relocate currently sits at its highest level on record, tied with 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 January through March. "People are feeling more confident about the economy and now feel financially secure enough to make a cross-country move to a metro where their money will go further," said Redfin chief economist Daryl Fairweather. "Homeownership may be out of reach for current residents of San Francisco or New York, but there are plenty of affordable homes and lower taxes in places like Phoenix, Atlanta and Austin. As more workers move to these places, there is a chicken and egg phenomenon where more companies open offices, which attracts even more workers." Moving In: Metros with the Highest Net Inflow of Redfin Users Phoenix re-took the top spot on the list of metro areas, outranking Sacramento with the highest net inflow of Redfin users in the first 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 net inflow for Phoenix hit 7,949, the highest level on record not only for Phoenix, but for any metro area to date since Redfin began reporting net migration data in early 2017. The share of homebuyers searching in the Phoenix metro area from other metro areas also hit a new high of 34.5 percent in the first quarter, surpassing the previous peak of 34.0 percent in the second quarter of 2018. "It is pretty rare for me to meet a home-buying client who was born or raised in Phoenix or even elsewhere in Arizona," said Phoenix area Redfin agent Heather Corley. "So many people are coming here from expensive cities like Los Angeles, San Francisco and Seattle for our low cost of living and great weather. The trend is really increasing lately thanks to strong job growth and companies such as Allstate, Intel, Boeing, Microsoft and Facebook moving to the area." The uptick in migration is beginning to drive more competition for homes in the Phoenix area. "The rise in out-of-state buyers is definitely driving prices up," explained Corley. "We're seeing a lot more homes for sale that receive multiple offers, and many times we're competing with all-cash buyers." "Many of the buyers I work with are moving away from expensive places in California to escape high taxes, traffic, and natural disasters," said Phoenix area Redfin agent Van Welborn. Vincent Shook, another Phoenix Redfin agent added: "When a California resident visits Phoenix and sees how much more home they can afford here, it really gives them something to think about. Plus, Phoenix property taxes are just so much lower." Moving Out – Metros with the Highest Net Outflow of Redfin Users Perennial sources of out-migration New York, San Francisco, Los Angeles and Washington, D.C., topped the list of metros people looked to leave, posting the highest net outflows in the first quarter. In each of the six metros with the largest outflows—New York, San Francisco, Los Angeles, Washington, D.C., Chicago and Denver—the total net outflow of users was up from the same period a year earlier. To read the full migration report, including methodology and an interactive map of migration destinations and origins, visit: https://www.redfin.com/blog/q1-2019-housing-migration-report. About Redfin Redfin is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 85 major metro areas across the U.S. and Canada. The company has closed more than $85 billion in home sales.
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Affordability in the Top 10 Most Popular Markets for Millennials, According to NAR
WASHINGTON (April 25, 2019) – A wide range of factors contribute to why millennials decide to move to certain areas, remain for an extended period or choose to relocate shortly after their arrival. Job market and affordability in the given location are two of the main reasons that impact millennials the most, according to the National Association of Realtors®' 2019 report, "Most Popular Areas for Millennials: where they move and stay. " The report analyzed employment gains, population trends, income levels and housing conditions in the largest 100 metropolitan statistical areas across the country to identify the most popular areas for millennials. The top 10 metro areas were selected because of their high share of both present millennial residents and recent movers, as well as their favorable employment opportunities. NAR found that Madison, WI, is one of the top destinations for millennials. Seventy-five percent of recent movers to the city have been millennials. Additionally, this segment of the population has mostly elected to remain in the area. Lawrence Yun, NAR's chief economist, says Madison has many attributes that appeal to millennials, including earning potential. As of 2017, the median income for millennials there was $62,000, and $68,500 for millennials who had recently moved to the city. "In comparison to other areas, Madison offers one of the highest wages for millennials," says Yun. "Moreover, this income level combined with the robust employment opportunities and the affordability, make Madison among one of the most appealing locations for millennials who are looking to stay longer and raise families." The report also found that California is a popular home buying destination for millennials, specifically Bakersfield, which is between San Francisco and Los Angeles. Bakersfield - where 28% of millennials live and where 67% move to - is attractive to millennials because it is one of the most affordable metro areas in the state. Yun has called for more West Coast housing and construction. He says Bakersfield's affordable homes makes it inviting to millennials. Of the millennials who most recently moved there, they can afford to purchase nearly 15% of the homes listed for sale. This is in comparison to neighboring Los Angeles, Calif., where millennials can only afford to buy 4% of listed homes. "The increasing employment rate in California is another strong selling point among this generation," says Yun. "While the rate of unemployment in Bakersfield is higher than it is nationwide, we're seeing job growth there pick up at a strong pace. Home building in Bakersfield is rising, too. Many newcomers to San Francisco and Los Angeles do not stay for long because of unaffordability. Millennials moving to Bakersfield meanwhile are looking to take advantage of conditions toward homeownership." NAR research revealed that Oklahoma City, OK, is attractive to millennials looking to purchase a home or who are already in a home. Twenty-nine percent of the city's residents are millennials, while 61% of those who recently moved there are millennials. During the time of the survey, of the properties on the market in Oklahoma City, millennials were in position to afford 30% of those homes. The unemployment rate is less than 3%, and the city experienced the third highest increase in wages among the 100 largest metro areas. "An overwhelming majority of younger and older millennial homebuyers responded that their strong desire to own a home was the primary reason that they purchased their home," says Yun. "As long as supply keeps up to meet demand, and prevents costs from rising too high and too rapidly, these identified metro areas are likely to see an uptick in purchases from millennial homebuyers - including Oklahoma City." Other Notable Findings One out of two people who moved in the 100 largest metro areas was a millennial (54%), and one of four residents was also a millennial (25%). In the top 10 metro areas, millennials can afford to purchase, on average 17% of homes currently listed for sale. In 2017, affordability was low in most of the areas that millennials moved to that year. The median income for millennials who recently moved in the 100 largest metro areas was $53,000. Millennials who moved recently in these areas can afford to purchase nearly one out of four of the homes currently listed for sale (23%). Millennials tend to reside and move to locations and cities where employment is strong. In the majority of the top 10 metro areas, the unemployment rate was lower than the national level in February 2019. Specifically, on average, the unemployment rate was 3.6% in these areas. NAR analyzed recent migration and population trends, employment gains, income levels and housing conditions in the largest 100 metro areas across the country to identify the most popular areas for millennials to move and stay. 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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Updated Realtor.com Forecast Paints Rosier Picture for 2019 Homebuyers
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Homes with Close Proximity to Electric Vehicle Charging Stations List for 1.5 Times More
Realtor.com® analysis finds that you'll pay a premium to live in a metro that accommodates electric vehicles SANTA CLARA, Calif., April 22, 2019 -- A new analysis by realtor.com, the Home of Home Search, released today found that home prices in the nation's top 20 neighborhoods that are most accommodating to electric vehicles are listed 1.5 times higher than their surrounding metro area on average, and 2.6 times higher than the rest of the country. Nine of the top 20 ZIP codes are in California. In honor of Earth Day, realtor.comⓇ used data from OpenChargeMap to track 19,743 charging stations mapped across 6,980 ZIP codes, and then analyzed the housing markets of the top 20 areas with the most electric vehicle charging stations. According to the analysis, the combined median listing price for the top 20 ZIP codes is $782,000, 1.5 times higher than their surrounding metro area on average, and 2.6 times higher than the rest of the country. Half of homes in these ZIP codes sell in 75 days, 15 days slower than their surrounding metro area on average, and 10 days slower than the rest of the country, consistent with sales trends in pricer areas. "Our data shows there's definitely a link between the prevalence of electric vehicle charging stations and higher home prices," says Danielle Hale, chief economist, realtor.com®. "But there's a difference between correlation and causation. The trend we're seeing in the data is most likely a result of the fact that wealthier homeowners are more likely to purchase expensive electric vehicles. But regardless of the cause, if you're shopping for a home in a ZIP with an abundance of electric vehicle charging stations, you'll likely pay a premium." The top 20 markets represented in the data all fall within nine states, with a large majority of the ZIP codes in California. ZIP code 92618 in Irvine, Calif. has the most charging stations, while the top 20 ZIP codes have an average of 30.1 charging stations each. It stands to reason that California leads the nation in charging stations, given electric car sales make up 10 percent of all new cars sold in the state, outpacing all other states in the nation. Beyond Tesla's manufacturing presence in California, there are several contributing factors that have led to increased awareness of EVs in the state, including the state's Zero-Emission Vehicle Program, California's EV rebate, coastal political leanings (ie pro-cleantech, pro-innovation), higher than average wages. Research has shown a connection between the fact that California highways allow EVs to drive in HOV lanes and EV adoption, but this benefit to EV owners is not exclusive to California. Outside of California, the most EV-friendly housing markets can be found in Florida, Georgia, Hawaii, Nevada, New York, Ohio, South Carolina, and Texas. Although significantly more affordable than the majority of the EV-accommodating ZIPS, the analysis found that homes in close proximity to EV charging stations still sell at a premium, with non-California ZIPS seeing median listing prices that are still 1.5 times higher than their surrounding metro median, and 2.0 times higher than the U.S. median listing price, on average. Top 20 ZIP Codes For Electric Vehicles Rank based on Number of EV Charging Stations Per ZIP Code Methodology: Zip codes were ranked by number of EV charging stations located within the zip code. Housing trends such as median listing price come from the realtor.com® residential listings database for listings actively for sale during March 2019. Each zip code reported here represents the top ranked zip code in its respective metropolitan area. Reported averages for the top 20 were weighted by each market's number of active listings during March 2019. EV charging station data from OpenChargeMap was accessed on April 1, 2019 which at the time contained records for nearly 20,000 (19,743) charging stations mapped across the United States in 6,980 ZIP codes. About realtor.com® Realtor.com®, The Home of Home Search℠, offers an extensive inventory of for-sale and rental listings, and access to information, tools and professional expertise that help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today is the trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [NASDAQ: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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West Coast Buyers are Now More Likely to Win the 1st Home They Bid On
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Detroit, Indianapolis and Buffalo Among the Least Disaster-Prone and Most Affordable Places to Live
Redfin Analysis Uses "Natural Disaster Hazard Score" to Rate the 50 Biggest U.S. Metro Areas by Frequency of Earthquakes, Fires, Floods, Tornadoes and Hurricanes SEATTLE, April 11, 2019 -- Providence, Rhode Island, Detroit, Michigan and Hartford, Connecticut are the least disaster-prone metro areas in the country, according to Redfin, the technology-powered real estate brokerage. In a new report, Redfin rated the 50 biggest metro areas according to their relative frequency of five major types of natural disasters—earthquakes, fires, floods, tornadoes, and hurricanes—using a new metric called the "Natural Disaster Hazard Score." Each of the five components is measured on a scale of one to 100, where 100 is the most hazardous metro area for the category and one is the least hazardous. The overall Natural Disaster Hazard Score is an average of the five components' frequencies. Metros with low Natural Disaster Hazard Score ratings tend to have relatively affordable housing markets. Nine of the 10 least hazardous metro areas have median home prices below the $287,400 national median. Salt Lake City is the exception, ranking as the eighth-least hazard-prone metro area with a Natural Disaster Hazard Score of 16 and a median home price of $320,000. Many of the most disaster-prone metros, including Washington, D.C. (52), Los Angeles (52) and New York (41), have home prices well above the national median. These three areas also tend to be near the top of Redfin's list of origins common among online home-searchers looking to relocate to more affordable, inland housing markets, like Las Vegas, which ranks fourth among the safest-rated metros. "When you buy a home you are paying for more than just the house," said Redfin chief economist Daryl Fairweather. "There could be hidden costs associated with natural disasters. If a natural disaster strikes, you may have to pay for damage to your home or for the cost of evacuating your family. And even during times of calm, you may still need to pay for insurance against floods, fire, or earthquakes. Some homes in more hazardous areas might seem more affordable if you are just looking at the sticker price, but they may end up costing more when risks related to natural disasters are factored in." In addition to high home prices in cities like Washington, D.C., Los Angeles and New York, the likelihood of natural disasters may be another factor driving homebuyers away from the coasts. When hurricanes, fires, earthquakes and floods are factored into the equation, the affordable inland metros are even more attractive destinations. Below is a ranking of the 50 largest metro areas from least-to-most hazard-prone, according to Redfin's Natural Disaster Hazard Score: To view the full report, complete with methodology and an interactive map, please visit: https://www.redfin.com/blog/natural-disaster-hazard-score-by-metro-area. About Redfin Redfin is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 85 major metro areas across the U.S. and Canada. The company has closed more than $85 billion in home sales.
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Redfin and Rover Name the 20 Most Dog-Friendly Cities of 2019
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Average 2019 Homebuyer Spends 3 Fewer Days Searching, Tours 1 Less Home Than Last Year
In Philadelphia, buyers this winter found homes 4 weeks faster than 2018, 2 weeks faster in Washington, D.C.Buyers in Atlanta toured 7 fewer homes than a year ago; in Phoenix they saw 4 fewer homes SEATTLE, April 1, 2019 -- It took the typical homebuyer this winter 73 days to find and close on their new home after their first home tour, down from 76 days last year and from a peak of 84 days in winter 2016, according to a report by Redfin, the technology-powered real estate brokerage. Redfin's analysis took into account home touring and offer activity among thousands of people who bought homes with Redfin agents nationwide in the three-month period ending in February over each of the past five years. "This year, there are more homes for sale relative to the number of buyers, so a buyer is more likely to have their first offer accepted, while sellers are having to wait longer for their home to sell," said Redfin chief economist Daryl Fairweather. "It's like a 1950s-era school dance with more boys than girls -- the girls can quickly find a dancing partner, but more boys are waiting around with no one to dance with." Philadelphia (28 days faster), Houston (17 days) and Washington, D.C., (14 days) saw the biggest year-over-year drops in the number of days buyers spent on the market looking for a home. At the other end of the spectrum, Miami (17 days longer) and New York (13 days) saw the biggest jumps in days buyers spent looking for homes. Most of the metro areas where buyers spent more time on the market this year than last year were on the East Coast, while buyers in cooling West Coast markets were able to find homes more quickly. Buyers' Time on Market, Median for 3-Month Period Ending in February Buyers this year are also having to see fewer homes in person and write fewer offers before successfully landing a home. Nationally, buyers toured an average of about 10 homes this winter before closing on a home, and made an average of 1.6 offers, compared to touring about 11 homes and making 1.8 offers a year ago. "The housing market isn't as daunting for first-time homebuyers," added Fairweather. "If you put in a fair offer, there is a good chance that offer will be accepted. Also, because mortgage interest rates are lower than they've been in over a year, homebuying is more affordable, especially in expensive places like San Francisco and San Jose where home prices have fallen." Homebuyers in Atlanta saw the biggest decrease in the number of homes toured before closing on their home. Buyers there toured an average of 12.2 homes in winter before finding a home, down from 18.8 homes a year earlier. Buyers in Phoenix also saw a big reduction, touring an average of 12.4 homes this winter compared to 16.3 last winter. Tours and Offers, Average for 3-Month Period Ending in February To view the full report, complete with additional charts and insights please visit: https://www.redfin.com/blog/homebuyers-finding-homes-faster-2019/. About Redfin Redfin is the technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 85 major metro areas across the U.S. The company has closed more than $60 billion in home sales.
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Thursday is the Best Day to List Your Home, Says Redfin
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Spring Home Shoppers No.1 Competitor: Their Budget
With nearly half of shoppers looking for a home under $200,000 this spring; many expect it will take a year or more to find and close on a home SANTA CLARA, Calif., March 21, 2019 -- This spring's home shoppers expect less competition overall as more inventory continues to hit the market nationwide, but will struggle with affordability as home prices continue to rise, according to new survey data released today by realtor.com®, the Home of Home Search. The survey also found, nearly half of shoppers this spring are looking for homes at or under $200,000, which despite less competition will prove difficult to find, as this one segment of housing has actually experienced the largest inventory decline year-over-year. Realtor.com® conducted the online survey earlier this month, consisting of 1,015 respondents planning to purchase a home in the next 12 months in conjunction with Toluna Research. "The 2019 spring home buying season will be characterized by rising home prices, a moderate pace of home sales, and an influx of inventory," said Danielle Hale, realtor.com®'s chief economist. "More homes on the market and lower mortgage rates will help offset some difficulties associated with price gains, but affordability will remain the primary challenge for shoppers, particularly in lower price segments." When survey respondents were asked whether falling mortgage rates or higher home prices had the greater impact on their search, 38 percent of respondents indicated the rising home prices, 26 percent said falling interest rates, and 35 percent said neither. The largest segment of shoppers heading into this spring have been searching for a home for seven months or more - this is nearly identical to last year. Slightly more than a quarter - 26 percent - have been in the market four to six months, and 34 percent have just entered the market in the last three months. This has flipped from last year when 34 percent had been searching for four to six months, and 26 percent had been searching three months or less. This could be an indication that fewer shoppers started looking in late 2018 due to the mortgage rate spike. But with more overall inventory available to buyers this year, competition is expected to be less intense. When asked how much competition shoppers expect to face this year, just over 60 percent indicated at least some competition, as compared to 70 percent last year. Only 17 percent of this year's shoppers plan to offer more than asking price this year to secure their purchase, down from 26 percent last year. Similarly, 33 percent of shoppers this year expected to put down more than 20 percent, which is significantly less than last year's 40 percent. Only 38 percent plan to check listings websites everyday, compared to 42 percent last year. "The spring homebuying season is an improvement over last year from an inventory perspective nationwide, but would-be buyers still face challenges. This year, shoppers are going to be grappling with their budgets, rather than competition from a horde of other buyers. Instead of worrying about which tactics will help them get ahead, potential buyers will have to decide what they are willing to give up in order to stick to their budget," Hale added. The shift in higher-end buyer mentality is likely attributed to the recent growth in inventory, which has increased six percent year-over-year, according to Hale, and will will give buyers more options to choose from this spring. For example, the number of homes priced at or above $750,000 rose by 11 percent in February. However, the number of homes priced at $200,000 or below dropped by seven percent year-over-year during the same time. The drop in homes under $200,000 is likely to create a difficult environment for entry level home buyers as nearly half of home shoppers this spring are looking for a home at or under $200,000. Alternatively, only six percent of spring shoppers are looking for a home at or above $750,000 -- the price range that saw the largest increase since last year. For more information, about the spring 2019 housing market, please visit: https://www.realtor.com/research/ About realtor.com® Realtor.com®, The Home of Home Search, offers an extensive inventory of for-sale and rental listings, and access to information, tools and professional expertise that help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today is the trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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Vast Majority Think 2019 First Quarter is Good Time to Buy Home, says Realtor Survey
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Attention Sellers: The First Week of April Is the Best Time to List a Home
Homes listed the first week of April see 14 percent more views, 5 percent less competition, sell 6 days faster SANTA CLARA, Calif., March 14, 2019 -- Realtor.com®, The Home of Home Search, today announced the first week of April is the best time to put a home on the market in 2019. By listing during the week of March 31 - April 6, sellers are able to take advantage of a sweet spot in the season that offers high buyer demand, less competition, quick home sales, and strong prices. "June is often considered the peak of home buying season, but our analysis found the first week of April is best for sellers looking to maximize list price, and also reduce the risk of price cuts and competition from other sellers," said Danielle Hale, chief economist for realtor.com®. "Given the time it takes from listing to close, putting a home on the market in early April positions sellers to attract buyers seeking to close and move before the beginning of school year." The analysis is based on trends in median listing prices, views per property on realtor.com, home price drops, median days on market, and number of listings on the market over the last three years. Why the first week of April? The market is bustling with buyers, but the number of homes hasn't peaked yet, which means more demand for every listing. In fact, homes listed the first week of April see 14 percent more views, on average, and 5 percent less competition compared to the rest of the year's weekly average. As a result, homes are likely to sell 6 days, or nearly 9 percent, faster on average. The typical home on the market between March 31 and April 6 is priced nearly 6 percent higher than the beginning of the year. Based on early 2019 data, this could mean an extra $17,000 added to the list price for a typical listing priced just over $306,000 in early April. Although the typical June listing is 7 percent more expensive than the best week to list, waiting until June to list your home could mean a higher likelihood of a price reduction as buyers bow out toward end of summer. In addition to more views, homes listed at the beginning of April are approximately 1 percent less likely to take a price cut, on average compared to the rest of the year. On the flip side, homes listed in June are 1 percent more likely to have their price reduced and see nearly 2 percent fewer listing views than other times of the year, on average. Other factors that favor listing the first week of April Another factor that's likely to boost April buyer demand this year, is the surprising decline in mortgage rates that started in November 2018. Rates are now below 4.5 percent vs. nearly 5.0 percent in November 2018. These lower rates could entice demand earlier than usual and April sellers could see even more buyers trying to take advantage of this temporary window of affordability. See below for a full list of the best time to buy in the top 50 largest U.S. markets. Best Time to List for Top 50 Largest U.S. Metros About realtor.com® Realtor.com®, The Home of Home Search, offers an extensive inventory of for-sale and rental listings, and access to information, tools and professional expertise that help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today is the trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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Redfin Unveils the Best U.S. Cities for Public Transit in 2019
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Homes.com Study: Romantic Breakups Tie with Joblessness in Triggering 'Boomerang' Behavior
NORFOLK, VA (Feb. 04, 2019) – While you're preparing this year's passionate, you're-the-best-thing-that-ever-happened-to-me Valentine's Day tribute for your significant other, here's a sobering thought: One in five adults who return home to live with their parents do so because of a broken heart. According to a Homes.com survey of nearly 1,100 members of the so-called "Boomerang Generation" and their parents, those that return to the nest due to a divorce or partner breakup is roughly the same percentage as those who return because they're out of work. In fact, the collapse of romantic relationships is the #1 move-back-home catalyst for Boomerang-ers ages 26-40 and the #2 incentive overall. More specifically, the survey revealed that: Love gone wrong is the primary reason for cohabiting with Mom and Dad for 33% of 26-30-year-old, 37% of 31-35-year-old and 24% of 36-40-year-old Boomerang-ers, outstripping all other considerations by as many as 14 points. Saving money for a home purchase or other major investment is the #1 motivation cited by Boomerang-ers in the 20-25 year-old cohort, while the need to care for aging parents tops the list for those 41 and older. Joblessness and debt rank just #3 and #4 overall as reasons to rejoin parents, even among 20-25-year-olds. Just 18% of Boomerang-ers in that age group return home because they lost or can't find a job, and 11% because of student loan or other debt. The survey also provides intriguing insights into Boomerang-ers' ages, living quarters, sources of conflict, financial arrangements, and overall rapport with their parental roommates. Among the findings: 16% of Boomerang-ers are 31 and older, with roughly half of this group returning home after living elsewhere for 11 years or more. 45% live in their childhood bedrooms, with the rest having been displaced either by choice or space limitations. 26% live in a guest bedroom, 12% in the basement, 5% in a guest house, 4% in the living room and 2% in the garage. Privacy and noise issues cause the most friction, followed by space constraints, clashes over money, and political disagreements. General tension is also common, with more than one-third reporting "good days and bad days," constant conflict, or difficult relationships dating back to childhood. 25% pay rent to their parents when they move back home, as reported by both parents and children. This is roughly the same across all age groups. The two sides disagree about other aspects of the financial arrangement, suggesting that either parents exaggerate their support or children minimize it. For example, 12% of parents claim they cover all of their child's expenses, but only 5% of Boomerang-ers themselves say their parents foot the entire bill. Similarly, 35% of parents say that each side pays its own bills, but 45% of children make that claim. Parents are generally supportive. Only 13% discourage adult children from returning home to live, and 77% place no time limit on the arrangement. The majority also report a relatively smooth relationship, with 58% of parents and 68% of children saying they get along well or "hardly know they're there." More information about the survey, including charts and graphs detailing key results, can be found at www.blog.homes.com. About Homes.com Homes.com offers today's demanding homebuyers, renters and those somewhere in between a simply smarter home search. With features like Homes.com Match, HomeShare and Snap & Search, homeshoppers now have a more personalized and conversational way to search for their next home. Since its launch over 25 years ago, Homes.com offers real estate professionals brand and property advertising, search engine marketing and instant response lead generation to help them succeed online. For more information, visit Homes.com.
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Equity Rich U.S. Properties Increase to New High in 2018
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Owning a Home Could Help You Get a Date with That Special Someone
Nearly 60 percent of millennial singles indicate homeownership makes a potential mate more attractive SANTA CLARA, Calif., Feb. 7, 2019 -- Realtor.com, the Home of Home Search, today released new survey data that shows owning a home might make you more attractive to that special someone you've had your eye on, especially if they are a millennial or a woman. Singles looking to boost their chances of dating a homeowner may want to considering living in the South or in the Midwest because they are home to the biggest shares of single female and male homeowners, respectively, according to the analysis. "Attractiveness is in the eye of the beholder, and this survey data suggests that many beholders find homeownership attractive, perhaps using it as a signal for financial savviness and success," said Danielle Hale, realtor.com®'s chief economist. "Single Millennials seem to find homeownership in a potential partner especially attractive, even if only one quarter feels that it is important." The survey, which included 500 people who identified as single and was conducted in late January, found that 46 percent of all singles thought homeownership made a potential partner attractive or very attractive. Women were more likely than men to agree with this, as 48 percent of women found it made a potential partner more attractive, versus 43 percent of men. Men, however, were slightly more likely to say that it made their potential partner very attractive. The survey also asked singles how important it was for a potential partner to be a homeowner. Similar to before, women were more likely than men to agree it was either important or very important that their partner was a homeowner. But the gap between genders was wider than when asking about attractiveness of homeowners, coming in at 29 and 19 percent for women and men, respectively. As a whole, 24 percent of single respondents felt it was important for their partner to be a homeowner. Millennials show strong desire for homeownership in their partner Millennials were the most likely to feel that homeownership boosted someone's attractiveness, with nearly 60 percent of the generation agreeing with the statement. Millennials also were the generation most likely to agree that it was either important or very important for their partner to be a homeowner, as indicated by 26 percent. Single male homeownership highest in the Midwest For those looking to find a potential home-owning male partner, the Midwest is going to be the best bet. The market with the greatest share of single male homeowners is Detroit, where they make up 23.4 percent of all males. It was followed by St. Louis with 21.3 percent, Minneapolis with 21.3 percent, Cleveland with 21.2 percent, and Pittsburgh with 19.9 percent.* Detroit, the top market for single men homeowners, has a median home price of $220,000, followed by St. Louis at $198,000, Minneapolis at $353,000, Cleveland at $170,000, and Pittsburgh at $170,000. On average, homes in these markets sell in 82 days, five days faster than the national median of 87 days. These markets have a high volume of young people, and relatively low median listing prices. In markets such as Detroit and St. Louis, with median list prices of $220,000 and $198,000, respectively, the lower price point has helped boost homeownership among singles. Single female homeownership strong in the South and Midwest Single women are one of the fastest growing demographics in the housing market, according to a recent realtor.com analysis. This trend can be seen strongest in Detroit, where single women homeowners makeup 23.1 percent of all women, followed by 21.4 percent in Baltimore, 21.2 percent in Charlotte, N.C., 20.7 percent in Philadelphia and 20.7 percent in Minneapolis. Detroit, the top market for single women homeowners, has a median home price of $220,000, followed by Baltimore at $297,000, Charlotte, N.C. at $320,000, Philadelphia at $250,000, and Minneapolis at $353,000. On average, homes in these markets sell in a rapid 75 days, 12 days faster than the national median of 87 days. Strong job opportunities and growing economies that draw many young professionals to the areas are also helping keep them in these markets as homeowners. Affordable home prices have also helped singles achieve homeownership in these markets. *Homeownership data by gender and relationship status sourced from IPUMS-USA, University of Minnesota, www.ipums.org. Calculations based on ownership among household heads aged 18-54. About realtor.com® Realtor.com®, The Home of Home Search℠, offers an extensive inventory of for-sale and rental listings, and access to information, tools and professional expertise that help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today is the trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.
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Migration Trend Reaches a Record High as 1 in 4 People Searching for a Home Looks to Change Metros
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Generation Z Needs to Start Saving $304 a Month Now to Buy a Home By Age 30
Location will be deciding factor in Generation Z's homeownership success; Midwest and South offer more affordable options SANTA CLARA, Calif., Jan. 31, 2019 -- Nearly 80 percent of Generation Z wants to own a home before age 30, and a new analysis released today by realtor.com®, The Home of Home Search℠, shows they will need to save $304 every month for the next 12 years to buy with a 10 percent down payment plus closing costs on a median priced home. According to the analysis, the median priced home in the U.S. is projected to cost $386,310 in 2031, when today's 18-year-old members of Generation Z turn 30. The analysis, which includes a 13-year forecast for median home prices in top 100 metros and different down payment savings plans, projects Generation Z will need to save the most to purchase a home in San Jose, Calif. where they will need to save $1,962 per month. The next most expensive locale is San Francisco ($1,439/mo.) followed by Los Angeles ($979/mo.), Honolulu ($946/mo.), and Oxnard, Calif. ($877/mo.). According to realtor.com®'s analysis of Optimal Blue mortgage data, in 2018 the typical under-30 home buyer used a seven percent down payment to successfully complete their home purchase. On average, in the top 10 most expensive metros, members of Generation Z will need to save an average of $948 a month, starting on their 18th birthday, to afford a 10 percent down payment and typical closing costs by the time they turn 30 years old. The median priced home in 2019 is expected to cost $265,000, but over the course of the next 12 years, the price is expected to increase nearly 50 percent, specifically another 46 percent to $386,310. This assumes prices grow at a very modest 3.2 percent per year over the next 12 years. "Choosing to live in one of the U.S.'s larger and more expensive metros, especially on the West Coast, is going to make homeownership a difficult task, but that doesn't mean that Gen Z should give up on their dreams," said Danielle Hale, realtor.com®'s chief economist. "The most important thing they can do is start saving as much as possible early on and let compound interest do the heavy lifting for them. They may also want to consider more affordable areas or different down payment amounts. Some widely available programs allow down payments as low as 3 percent, but a lower down payment can mean higher ongoing monthly costs. As with most decisions, there are pros and cons and a buyer needs to think these through to determine what's best for them." Midwest and South offer opportunities for an easier savings plan While the analysis reveals potentially daunting West Coast future home prices and monthly savings amounts, Generation Z can look to the Midwest and South for more affordable housing options. Youngstown, Ohio, topped the list of the most affordable metros, where Generation Z would only have to save $108 per month. It was followed by McAllen, Texas ($111/mo.), Toledo, Ohio ($141/mo.), Wichita, Kan. ($154/mo.), and Little Rock, Ark. ($156/mo.). With an average median home price of $191,381 in 2031 for the top 10 most affordable metros, an 18-year-old member of Generation Z will need to save an average of $150 a month, starting on their 18th birthday, to afford a 10 percent down payment by the time they turn 30. That comes out to saving $798 a month less than the average monthly saving required for the top 10 most expensive metros. 20 percent down payments paint a different picture While 10 percent down or less is far more common among first-time and younger home buyers, some members of Generation Z may want to use a 20 percent down payment to qualify for a lower mortgage rate and have a much lower monthly payment, but that might not be feasible in the nation's most expensive metros. On average, for the 10 most expensive metros in the U.S., Generation Z will need to save $1,645 a month for a 20 percent down payment and closing costs. That is $697 more every month than if they are aiming to put 10 percent down. While 20 percent has historically been the benchmark, this isn't true for first time homebuyers, and Generation Z should consider varying levels of down payments when planning to purchase a home, especially in higher cost metros in the U.S. Methodology: This analysis assumed an 18-year-old member of Generation Z started saving on his or her birthday, contributing the exact amount every month into a savings account with a fixed three percent annual return, compounded monthly. They will make their home purchase in 2031 on their 30th birthday, after making exactly 144 deposits over exactly 12 years. The calculated savings amount required includes money for a downpayment and typical closing costs of about 3.6 percent for first-time home buyers. Forecast median home price data comes from Moody's Analytics (economy.com). About realtor.com® Realtor.com®, The Home of Home Search, offers an extensive inventory of for-sale and rental listings, and access to information, tools and professional expertise that help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today is the trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [NASDAQ: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.
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U.S. Foreclosure Activity Drops to 13-Year Low in 2018
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Renting a Home More Affordable than Buying in 59 Percent of U.S. Housing Markets
Home Prices Outpacing Wages in 80 Percent of the U.S. Housing Markets IRVINE, Calif. – Jan. 10, 2019 — ATTOM Data Solutions, curator of the nation's premier property database, today released its 2019 Rental Affordability Report, which shows that renting a three-bedroom property is more affordable than buying a median-priced home in 442 of 755 U.S. counties analyzed for the report — 59 percent. The analysis incorporated recently released fair market rent data for 2019 from the U.S. Department of Housing and Urban Development, wage data from the Bureau of Labor Statistics along with public record sales deed data from ATTOM Data Solutions in 755 U.S. counties with sufficient home sales data (see full methodology below). "With rental affordability outpacing home affordability in the majority of U.S. housing markets, and home prices rising faster than rental rates, the American dream of owning a home, may be just that — a dream, "said Jennifer von Pohlmann, director of content and PR at ATTOM Data Solutions. "With home price appreciation increasing annually at an average of 6.7 percent in those counties analyzed for this report and rental rates increasing an average of 3.5 percent, coupled with the fact that home prices are outpacing wages in 80 percent of the counties, renting a home is clearly becoming the more attractive option in this volatile housing market." Renting more affordable than buying in nation's most populated counties Renting is more affordable than buying a home in the nation's 18 most populated counties and in 37 of 40 counties with a population of 1 million or more (93 percent) — including Los Angeles County, California; Cook County (Chicago), Illinois; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; and San Diego County, California. Other markets with a population of more than 1 million where it is more affordable to rent than to buy a home included counties in Miami, New York City, Seattle, Las Vegas, San Jose, San Francisco and Boston. Among the 40 U.S. counties analyzed in the report with a population of 1 million or more, the three where it is more affordable to buy a home than rent were Wayne County (Detroit), Michigan; Philadelphia County, Pennsylvania; and Cuyahoga County (Cleveland), Ohio. Buy or Rent in 2019 Heat Map Least affordable rental markets in Northern California, Hawaii, D.C. The report shows that renting a three-bedroom property requires an average of 38.0 percent of weekly wages across the 755 counties analyzed for the report. The least affordable markets for renting are Santa Cruz County, California (81.7 percent of average wages to rent); Honolulu County, Hawaii (74.4 percent); Spotsylvania County, Virginia (73.0 percent); Maui County, Hawaii (69.5 percent); San Benito County, California (68.6 percent); Monroe County, Florida (67.3 percent); Sonoma County (Santa Rosa area), California (66.0 percent); Marin County (San Francisco area), California (65.6 percent); and Kings County, New York (63.7 percent). Most affordable rental markets in Ohio, North Carolina, Wisconsin, Pennsylvania The most affordable markets for renting are Roane County (Knoxville area), Tennessee (19.7 percent of average wages to rent); Peoria County, Illinois (23.8 percent); Mcminn County (Athens), Tennessee (23.8 percent); Green County (Dayton), Ohio (24.2 percent); and Rhea County (Dayton area), Ohio (24.6 percent). Among counties with a population of 1 million or more, those most affordable for renting are Allegheny County (Pittsburgh), Pennsylvania (25.1 percent); Cuyahoga County (Cleveland), Ohio (25.6 percent); Saint Louis County, Missouri (26.4 percent); Oakland County (Detroit area), Michigan (26.7 percent); and Wayne County (Detroit), Michigan (27.7 percent). Rent growth outpacing wage growth in 52 percent of markets Average fair market rents rose faster than average weekly wages in 394 of the 755 counties analyzed in the report (52 percent), including Los Angeles County, California; Cook County (Chicago), Illinois; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; and San Diego County, California. Average weekly wages rose faster than average fair market rents in 361 of the 755 counties analyzed in the report (48 percent), including Kings County (Brooklyn), New York; Queens County, New York; Clark County (Las Vegas), Nevada; Tarrant County (Dallas-Fort Worth), Texas; Santa Clara (San Jose), California; Broward County (Miami), Florida; and Alameda (San Francisco), California. Home prices rising faster than wages in 80 percent of markets Median home prices rose faster than average weekly wages in 601 of the 755 counties analyzed in the report (80 percent), including Los Angeles County, California; Cook County (Chicago), Illinois; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; San Diego County, California; Orange County, California; and Miami-Dade County, Florida. Average weekly wages rose faster than median home prices in 154 of the 755 counties analyzed in the report (20 percent), including Kings County (Brooklyn), New York; Queens County, New York; King County (Seattle), Washington; Suffolk County, New York; and Bronx County, New York. Home prices rising faster than rents in 70 percent of markets Median home prices rose faster than average fair market rents in 531 of the 755 counties analyzed in the report, including Cook County (Chicago), Illinois; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; Kings County (Brooklyn), New York; Queens County, New York; and Riverside County, California. Average fair market rents rose faster than median home prices in 224 of the 755 counties analyzed in the report (30 percent), including Los Angeles County, California; San Diego County, California; Orange County, California; Miami-Dade County, Florida; Dallas County, Texas; and Kings County (Seattle), Washington. About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, APIs, market trends, marketing lists, match & append and more.
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Redfin Predicts 2019 Housing Market Will Be the Coolest in Years
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U.S. Home Affordability Drops to More Than 10-Year Low in Q4 2018
But Affordability Improves From Previous Quarter in 58 Percent of Local Housing Markets; Wage Growth Outpacing Home Price Growth in 22 Percent of Markets, Including San Diego, Brooklyn, Seattle, San Jose and Manhattan IRVINE, Calif. – Dec. 20, 2018 — ATTOM Data Solutions, curator of the nation's premier property database, today released its Q4 2018 U.S. Home Affordability Report, which shows that the U.S. median home price in the fourth quarter was at the least affordable level since Q3 2008 — a more than 10-year low. The report calculates an affordability index based on percentage of income needed to buy a median-priced home relative to historic averages, with an index above 100 indicating median home prices are more affordable than the historic average, and an index below 100 indicating median home prices are less affordable than the historic average. (See full methodology below.) Nationwide, the Q4 2018 home affordability index of 91 was down from an index of 94 in the previous quarter and an index of 106 in Q4 2017 to the lowest level since Q3 2008, when the index was 87. Among 469 U.S. counties analyzed in the report, 357 (76 percent) posted a Q4 2018 affordability index below 100, meaning homes were less affordable than the long-term affordability averages for the county. That was down from a 10-year high of 78 percent of counties posting an affordability index below 100 in Q3 2018. "While poor home affordability continues to cloud the U.S. housing market, there are silver linings in the local data as home price appreciation falls more in line with wage growth," said Daren Blomquist, senior vice president at ATTOM Data Solutions. "Affordability improved from the previous quarter in more than half of all local markets, and one in five local markets saw annual wage growth outpace annual home price appreciation, including high-priced areas such as San Diego, Brooklyn and Seattle." Q4 2018 Home Price Appreciation & Wage Growth Heat Map Home affordability improves from previous quarter in 58 percent of local markets Counter to the national trend, home affordability improved from the previous quarter in 272 of the 469 counties analyzed in the report (58 percent), including Cook County (Chicago), Illinois; Harris County (Houston), Texas; San Diego County, California; Orange County, California; and Miami-Dade County, Florida. Home affordability worsened compared to the previous quarter in 197 of the 469 counties analyzed in the report (42 percent), including Los Angeles County, California; Maricopa County (Phoenix), Arizona; Riverside County, California; San Bernardino County, California; and Clark County (Las Vegas), Nevada. Wages rising faster than home prices in 22 percent of markets Nationwide the median home sales price in Q4 2018 was $241,250, up 9 percent from a year ago, while the annualized average weekly wage of $56,381 was up 3 percent from a year ago. Annual home price appreciation in Q4 2018 outpaced annual average wage growth in 366 of the 469 counties analyzed in the report (78 percent), including Los Angeles County, California; Cook County (Chicago), Illinois; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; and Orange County, California. Counter to the national trend, annual average wage growth outpaced annual home price appreciation in 103 of the 469 counties analyzed in the report (22 percent), including San Diego County, California; Kings County (Brooklyn), New York; King County (Seattle), Washington; Santa Clara County (San Jose), California; and New York County (Manhattan), New York. Highest share of income needed to buy a home in Brooklyn and Bay Area Nationwide, buying a median-priced home in Q4 2018 would require 35.0 percent of an average wage earner's income, above the historical average of 32.0 percent. Counties with the highest share of wages needed to buy a median priced home in Q4 2018 were Kings County (Brooklyn), New York (128.8 percent); Marin County, California (124.1 percent); Santa Cruz County, California (118.2 percent); Monterey County, California (96.9 percent); and San Luis Obispo County, California (94.4 percent). Counties with the lowest share of wages needed to buy a median-priced home in Q4 2018 were Baltimore City, Maryland (13.1 percent); Bibb County (Macon), Georgia (13.5 percent); Clayton County, Georgia (15.5 percent); Peoria County, Illinois (15.7 percent); and Wayne County (Detroit), Michigan (15.9 percent). Buying a home requires income of $100,000 or more in 15 percent of local markets Buying a median-priced home required more than $100,000 in annual income (assuming 3 percent down and a maximum front-end debt-to-income ratio of 28 percent) in 70 of the 469 counties analyzed in the report, led by New York County (Manhattan), New York ($408,977 to buy); San Francisco County, California ($375,491 to buy); San Mateo County, California ($368,242 to buy); Marin County, California ($315,524 to buy); and Santa Clara County (San Jose), California ($308,178 to buy. About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, APIs, market trends, marketing lists, match & append and more.
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Tougher Road Ahead for Home Buyers and Sellers in 2019
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Top 10 Best Days of the Year to Buy a Home
Buyers willing to close the day after Christmas realize biggest discounts; Analysis also looks at best months to buy at the state and metro area levels IRVINE, Calif. — Nov. 20, 2018 — ATTOM Data Solutions, curator of the nation's premier property database, today released an analysis of the best days of the year to buy a home, which shows that only 10 days of the year offer discounts below estimated market value — seven in December, and one each in October, November and February. According to the analysis, buyers willing to close on a home purchase the day after Christmas realize the biggest discounts below full market of any day in the year. This analysis of more than 18 million single family home and condo sales over the past five years is evidence of the hot sellers' market of the past five years. "People closing on a home purchase December 26 were submitting offers around Thanksgiving and starting their home search around Halloween — likely not a common path to home purchase for most buyers and exactly why it's the best time to buy," said Daren Blomquist, senior vice president with ATTOM Data Solutions. "Buyers and investors willing to start their home search right about when stores are setting up Christmas decorations will face less competition and likely be dealing with more motivated sellers, giving them the upper hand in price negotiations." Best Months to Buy The analysis also looked at best months to buy at the national level (December) and at the state and metro level. The states realizing the biggest discounts below full market value were Ohio (-8.8% in January); Michigan (-7.9% in February); Nebraska (-7.3% in December); Tennessee (-6.8% in December); and Delaware (-6.5% in December). The metro areas realizing the biggest discounts below full market value were Dayton (-13.1% in January); Detroit (-12.8% in February); Cleveland (-12.0% in January); Honolulu (-10.3% in June); and Milwaukee (-9.3% in December). Methodology For this analysis ATTOM Data Solutions looked at any calendar day in the last five years (2013 to 2017) with at least 10,000 single family home and condo sales. There were 362 days that matched this criteria, with the four exceptions being Jan. 1, July 4, Nov. 11 and Dec. 25. To calculate the premium or discount paid on a given day, ATTOM compared the median sales price for homes with a purchase closing on that day with the median automated valuation model (AVM) for those same homes at the time of sale. About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, APIs, market trends, marketing lists, match & append and more.
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Opportunity Zones Offer Favorable Real Estate Investing Options in Amazon HQ2 Markets According to ATTOM Analysis
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2019 Forecast: Existing-Home Sales to Stabilize and Price Growth to Continue
BOSTON (November 2, 2017) – Consumers should expect home sales to flatten and home prices to continue to increase, though at a slower pace, according to a residential housing and economic forecast session at NAR's 2018 REALTORS® Conference & Expo. As Lawrence Yun, chief economist at the National Association of Realtors®, presented his 2019 housing and economic forecast, he was joined onstage by Lisa Sturtevant, President of Lisa Sturtevant & Associates, LLC, who discussed the importance of affordable housing in the U.S. Much of Yun's presentation focused on recent declines in home sales, but in the context of long-term trends to illustrate the housing market's actual performance. "Ninety percent of markets are experiencing price gains while very few are experiencing consistent price declines," said Yun. "2017 was the best year for home sales in ten years, and 2018 is only down 1.5 percent year to date. Statistically, it is a mild twinge in the data and a very mild adjustment compared to the long-term growth we've been experiencing over the past few years." As to the possibility that we are currently experiencing a small bubble, Yun was quick to shut down any speculation. "The current market conditions are fundamentally different than what we were experiencing before the recession 10 years ago," said Yun. "Most states are reporting stable or strong market conditions, housing starts are under-producing instead of over-producing and we are seeing historically low foreclosure levels, indicating that people are living within their means and not purchasing homes they cannot afford. This is a stronger, more stable market compared to the loosely regulated market leading up to the bust." Housing affordability was also discussed by both panelists. While the U.S. is experiencing historically normal levels of affordability, potential buyers may be staying out of the market because of perceived problems with affordability. "NAR research shows that a lower percentage of consumers think that now is a good time to buy, while more are indicating that it is a good time to sell," said Yun. "Problems could arise if the market is flooded with too many sellers and not enough buyers. Fortunately, that does not appear to be the case, as indicated by months' supply of inventory at below five months." Sturtevant discussed the importance of homeownership on a social level - how homeowners tend to be in better physical and mental health and have greater opportunity for economic self-sufficiency. Additionally, communities with more homeowners tend to be more economically prosperous and better able to attract and retain workers. "I am a researcher, not an advocate; but the results of my research have compelled me to see the importance of affordable, stable housing, and the positive economic impact to local communities," said Sturtevant. Looking to next year, Yun shared his forecast for home sales and median home prices. "The forecast for home sales will be very boring - meaning stable," said Yun. With a few months of data remaining in 2018, Yun estimates that existing-home sales will finish at a pace of 5.345 million—a decrease from 2017 (5.51 million). In 2019, sales are forecasted to increase to 5.4 million, a 1 percent increase. The national median existing-home price is expected to rise to around $266,800 in 2019 (up 3.1 percent from 2018 this year and $274,000 in 2020. "Home price appreciation will slow down - the days of easy price gains are coming to an end - but prices will continue to rise." All of these forecasts, however, are dependent on higher levels of home production. "All indications are that we have a housing shortage. If you look at population growth and job growth, it is clear that we are not producing enough houses. This is often a local issue, not a national one, so NAR has created a website where local associations and Realtors® can go for information on how to advocate for increased supply in their communities," Said Yun. Commenting on the overall health of the U.S. economy, Yun noted that the economy is "good." He noted that we have low unemployment, record high job openings, historically low jobless claims, job additions for eight straight years and wages beginning to increase. "This type of activity in the economy should support the housing market, even as interest rates rise," said Yun. The National Association of Realtors® is America's largest trade association, representing 1.3 million members involved in all aspects of the residential and commercial real estate industries.
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The Longest Housing Inventory Decline in History Comes to an End
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Single Females Remain a Force in Market, While First-time Buyers Continue to Struggle, According to Realtor 2018 Buyer and Seller Survey
WASHINGTON (October 29, 2018) – Single female buyers continue to be a powerful force in the market, while low inventory, rising interest rates and increasing home prices remain, holding back first-time buyers despite notable interest in buying a home. This is according to the National Association of Realtors®' 2018 Profile of Home Buyers and Sellers, which also identifies numerous current consumer and housing trends, including mounting student debt balances; the impact of pets on home buying decisions; increases in down payments for all buyers; the rising age of repeat buyers; and the fact that a vast number of respondents use a real estate agent to buy or sell a home, which kept for-sale-by-owner transactions at an all-time low. "With the lower end of the housing market – smaller, moderately priced homes – seeing the worst of the inventory shortage, first-time home buyers who want to enter the market are having difficulty finding a home they can afford," said NAR Chief Economist Lawrence Yun. "Homes were selling in a median of three weeks and multiple offers were a common occurrence, further pushing up home prices. These factors contributed to the low number of first-time buyers and the struggles of would-be buyers dreaming of joining the ranks of homeownership." Here are some additional key trends of buyers and sellers detailed in this year's 150-page report. Single Female Buyers continue to be a strong force in the market For the second year in a row, single female buyers accounted for 18 percent of all buyers. The group was the second most common household buyer type behind married couples (63 percent). Single male buyers came in third and accounted for half the number of buyers as their female counterparts (9 percent). However, single males tended to purchase more expensive homes, with a median price of $215,000, compared to single females with a median price of $189,000 (the lowest of all household buyer types). Share of first-time buyers continues to fall The share of first-time home buyers continued a three-year decline, falling 33 percent (34 percent last year). This number has not been 40 percent or higher since the first-time home buyers credit ended in 2010. "Low inventory, rising interest rates and student loan debt are all factors contributing to the suppression of first-time home buyers," said Yun. "However, existing home sales data shows inventory has been rising slowly on a year-over-year basis in recent months, which may encourage more would-be buyers who were previously convinced they could not find a home to enter the market." Buyers continue to rely on agents and the internet to find the right home For the third year in a row, 95 percent of buyers used the internet at some point during their home search process, and 50 percent said that they found the home they eventually purchased online. Eighty-six percent of buyers used a real estate agent in their home search, and repeat buyers were more likely to use an agent than first-timers (87 percent to 86). Overall, 87 percent of buyers ended up purchasing their home through a real estate agent (the same as 2017), as finding the right home and negotiating terms of sale were the top factors buyers desired from their agent. Ninety percent of respondents said they would definitely or probably use their agent again or recommend them to someone else. "With inventory so low, buyers are relying on their agent's knowledge of markets and neighborhoods to find listings, rather than relying only on online searches," said NAR President Elizabeth Mendenhall, a sixth-generation Realtor® from Columbia, Missouri and CEO of RE/MAX Boone Realty. "A Realtor® has years of experience, generating insight and expertise that can help buyers navigate a tight market where buyers are forced to move fast and make competitive bids in order to get their dream home." Student loan debt continues to be an issue Once again, student loan debt stands out as a challenge keeping would-be buyers out of the market. Among the 13 percent of buyers who said saving for a down payment was the most difficult part of the buying process, 50 percent reported that student loan debt had inhibited their ability to save for a home purchase or down payment. Twenty-four percent of all buyers indicated that they have student loan debt, at a median of $28,000, and 40 percent of first-time buyers indicated that they have student loan debt at a median of $30,000. "Even with a thriving economy and an abundance of job opportunities in many markets, monthly student loan payments coupled with sky-high rents and rising home prices make it exceedingly difficult for potential buyers to put aside savings for a down payment," said Yun. Down payments higher for all buyers Overall, buyers paid a median 13 percent down payment, up from 10 percent last year and the highest since 2005. First-time buyers paid a median 7 percent down payment, up from 5 percent last year and the highest since 1997 (9 percent), while repeat buyers paid a median 16 percent, up from last year's 14 percent and the highest since 2010. A majority of buyers ranked their personal savings as the primary source of their down payment (58 percent). Repeat buyers were most likely to use the proceeds from the sale of the previous primary residence (56 percent), while first-time buyers were the most likely to use a gift from a friend or relative (24 percent). Nearly all buyers choose a single-family home A majority of buyers continue to choose a detached, single-family home (82 percent) as opposed to a townhouse or row house (8 percent) or a condo/duplex/apartment unit (4 percent). Median age of repeat home buyers skyrockets; stays flat for first-time buyers For the third straight year, the median age of first-time home buyers was 32 years old. A majority of first-time buyers were married couples (54 percent), followed by single females (18 percent). Their median income was the same as last year's at $75,000, and they spent a median of $203,700 on a home. These buyers were more likely to purchase smaller homes than repeat buyers, with a median size of 1600 square feet. The age of repeat buyers increased to an all-time high of 55 years old (up from 54 last year). A majority of repeat buyers were also married couples (57 percent), followed by single females (18 percent). Their median income increased from $97,500 last year to $100,000 and they spent a median of $280,000 on a home. The median home size remained the same as last year, at 2000 square feet. Pets Influencing Home Buying Decisions Fifteen percent of all buyers said that convenience to vets and/or outdoor space for their pet was a critical factor in determining where they wanted to purchase their home. That number rises to 20 percent, or one-fifth of buyers, for unmarried couples. "NAR conducted a survey on the important role pets play in our home buying decisions and the unique considerations that pet owners face," said Mendenhall. "Realtors® understand that when someone buys a home, they are buying it with the needs of their whole family in mind. And any pet owner will tell you that their animals are an important and beloved part of their family." Downsizing not a trend Only 9 percent of buyers listed downsizing as a factor in their decision to move. In fact, 73 percent of buyers purchased a home that was either larger or similar in size to what they previously owned. "Homeowners that may be looking to downsize tend to be competing for the same homes as first-time buyers, and we are experiencing a scarcity of inventory in those smaller sized, moderately priced homes," said Yun. "These buyers, not finding the smaller home they are looking for, may decide to purchase an equivalently sized home or simply stay put in their current home." FSBOs at record low For-Sale-By-Owner sales accounted for 7 percent of all sales – the lowest number recorded in this survey's history. This number has been steadily declining since a high of 15 percent in 1981, with more and more owners relying on the expertise of an agent to help navigate the complicated process and intricacies of a home sale. NAR mailed a 129-question survey in July 2018 using a random sample weighted to be representative of sales on a geographic basis to 155,250 recent home buyers. Respondents had the option to fill out the survey via hard copy or online; the online survey was available in English and Spanish. A total of 7,191 responses were received from primary residence buyers. After accounting for undeliverable questionnaires, the survey had an adjusted response rate of 4.6 percent. The sample at the 95 percent confidence level has a confidence interval of plus-or-minus 1.15 percent. Recent home buyers had to have purchased a home between July 2017 and June 2018. All information is characteristic of the 12-month period ending in June 2018 with the exception of income data, which are for 2017. The National Association of Realtors® is America's largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.
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20% of Recent Homebuyers Made an Offer Sight-Unseen, Down from 35% Late Last Year
Survey Findings Suggest that Buyers Are Under Less Pressure to Make Hasty Bids as Competition Eases SEATTLE, Oct. 15, 2018 -- One in five recent homebuyers said they made an offer sight-unseen, according to Redfin, the next-generation real estate brokerage. This statistic was discovered from a Redfin-commissioned survey in May of 1,463 people across 14 major markets who had bought a home in the last year. That's down from 35 percent in a similar survey conducted in November, when the share of buyers making sight-unseen offers had been growing consistently for at least a year and a half. When Redfin analysts first noticed in May that the prevalence of sight-unseen offers had returned to 2016 levels, they struggled to pinpoint a clear explanation. At that time, the market was breaking records for price growth, competition and home-selling speeds. Buyers felt pressured to move incredibly quickly to secure the most desirable homes, which were off the market in a matter of days. Making an offer without seeing the home first in person had become an advantageous strategy for buyers in inventory-strapped markets like Denver or Seattle. In July, Redfin first reported that the market was beginning to shift toward buyers' favor, with rising inventory and slowing price growth. Buyers had become more choosy about what homes to move on and were behaving less hasty in making offers. And now, buyers are facing fewer multiple-offer situations, which allows buyers even more time to visit homes in person before making an offer. Redfin analysts now believe that the declining prevalence of sight-unseen offers was likely an early indicator of this changing market. Redfin intends to watch this trend closely and plans to survey homebuyers again this fall to see if the prevalence of sight-unseen offers continues to change. "Now that most homes are staying on the market for longer than a week, there just isn't as much pressure for buyers to make offers so hastily," said Jessie Culbert, a Redfin agent in Seattle. "That's a big change from earlier this year when sellers set offer review deadlines, and they were strict! This meant that whether or not you had time to physically step inside the home, you had to get your offer in on time in order to be considered. Otherwise you would miss out entirely on the opportunity to compete for it." It's also worth pointing out that one in five homebuyers making offers sight unseen is still a lot, and we believe this is a reflection of the fact that technology has made it easier to learn about a home from anywhere with internet access. For example, using Redfin 3D Walkthrough, a buyer can tour a home virtually on their computer or smartphone, seeing the walls, appliances and nooks and crannies from every angle. Additionally, Redfin agents use tools like FaceTime, Skype or YouTube to show homes to customers who aren't able to join them for an in-person tour. This technology is especially useful to homebuyers moving to a new city, who would have to drive for hours or take a flight to see a home. Over time, as technologies continue to advance and people become more comfortable relying on them to make big financial decisions, we expect sight-unseen offers to become more commonplace, even throughout fluctuations in supply and demand. To read the full report, complete with historical survey and methodology, click here. About Redfin Redfin is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $60 billion in home sales.
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U.S. Home Affordability Drops to Lowest Level in 10 Years
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National Housing Inventory Crisis Reaches Inflection Point
U.S. inventory is poised for positive growth boosted by a 5-year high in new listings SANTA CLARA, Calif., Oct. 3, 2018 -- Realtor.com®, the Home of Home Search, today released its September housing report which shows national inventory has started to flatten, signaling a crucial inflection point for the inventory crisis. According to the report, inventory declined a mere 0.2 percent from a year ago and is poised for positive growth ahead, boosted by an 8 percent increase in new listings -- the largest yearly jump since 2013. "After years of record-breaking inventory declines, September's almost flat inventory signals a big change in the real estate market," said Danielle Hale, chief economist for realtor.com®. "Would-be buyers who had been waiting for a bigger selection of homes for sale may finally see more listings materialize. But don't expect the level to jump dramatically. Plenty of buyers in the market are scooping up homes as soon as they're listed, which will keep national increases relatively small for the time being." In September, the U.S. median listing price remained at $295,000, a 7 percent increase year-over-year, but lower than last year's 10 percent increase. Homes continued to sell at a relatively rapid pace of 65 days on average, 4 days faster than last year. More than 465,000 new listings entered the market in September, an 8 percent increase and the biggest yearly jump since 2013. These new listings were 8 percent, or $25,000, cheaper than existing inventory in the market, and 10 percent, or 200 square-feet, smaller than homes already in the market, on average. Although single-family home inventory remained relatively flat, declining by only 1 percent, new inventory growth was found in condominiums and townhomes, which are now up 3 percent year-over-year. The inventory recovery is particularly visible in larger cities. In September, 22 of the 45 largest markets in the U.S. saw year-over-year inventory increases. The five markets that saw the largest inventory jumps were San Jose, Calif.; Seattle; Jacksonville, Fla.; San Diego, and San Francisco, all posting increases of 31 percent or more. Inventory also rose over last year in Chicago, Miami, Dallas, Boston, Los Angeles, and New York. Combined inventory in the 45 largest markets increased 5.6 percent year-over-year on average, the largest yearly increase since realtor.com® started tracking it in 2013. New Listing Growth in Largest 45 Metro Markets* * Excluded: Denver; Columbus, Mo.; and Las Vegas due to MLS feed changes during the period analyzed. About realtor.com® Realtor.com®, The Home of Home Search℠, offers the most comprehensive source of for-sale MLS-listed properties, among competing national sites, and access to the information, tools and professional expertise to help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today is the trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [NASDAQ: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.
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Realtors Chief Economist Reflects on Past Recession, What's Ahead for Housing
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Highest Share of Homeowners Likely to Move in Q3 2018 in Chicago, DC, Orlando, Tampa, Atlanta
Lowest Share of Pre-Movers in Cleveland, Boston, Pittsburgh, Detroit, San Francisco; North Dakota, Illinois, Nevada, Virginia and Colorado the Top Five Pre-Mover States IRVINE, Calif. – Aug. 16, 2018 — ATTOM Data Solutions, curator of the nation's premier property database, today released its Q2 2018 Pre-Mover Housing Index, which shows Chicago, Washington, D.C., Orlando, Tampa-St. Petersburg and Atlanta posted the highest pre-mover index in the second quarter of 2018 — predictive of a high percentage of homeowners moving in the third quarter — among 36 metropolitan statistical areas with at least 500,000 single family homes and condos. Using data collected from purchase loan applications on residential real estate transactions, the ATTOM Data Solutions Pre-Mover Housing Index is based on the ratio of homes with a "pre-mover" indicator to total single family homes and condos in a given geography, indexed off the national average. An index above 100 is above the national average and indicates an above-average ratio of homes that will likely be sold in the next 90 days in a given market (see full methodology below). Among a broader set of 131 metro areas with at least 100,000 single family homes and condos, those posting the highest pre-mover index in Q2 2018 were Wilmington, North Carolina (206); Colorado Springs, Colorado (178); and Manchester-Nashua, New Hampshire (172); followed by Chicago (168) and Washington, D.C. (166). "A higher pre-mover index bodes well for local real estate agents, home improvement stores, moving companies and others that benefit from the halo effect of a home sale," said Daren Blomquist, senior vice president at ATTOM Data Solutions. "Meanwhile markets with a low pre-mover index likely have a scarcity of inventory available to buy or relatively weak demand from prospective buyers — or some combination of both — which is not optimal for businesses that rely on the home sale halo effect." Cleveland, Boston, Pittsburgh post lowest pre-mover indexes among major metros Among the 36 metros with at least 500,000 single family homes and condos, those with the lowest pre-mover index in Q2 2018 were Cleveland, Ohio (38); Boston, Massachusetts (39); Pittsburgh, Pennsylvania (48); Detroit, Michigan (48); and San Francisco, California (49). Among the broader set of 131 metro areas with at least 100,000 single family homes and condos, those with the lowest pre-mover index in Q2 2018 were Providence, Rhode Island (31); Albany, New York (35); San Jose, California (37); Buffalo, New York (38); and Cleveland, Ohio (38). North Dakota, Illinois, Nevada post highest pre-mover indexes among states States with the highest pre-mover index in the second quarter of 2018 — predictive of a high percentage of homeowners moving in the third quarter — were North Dakota (275), Illinois (193), Nevada (164), Virginia (163), and Colorado (147). Other states with a pre-mover index among the 10 highest in Q2 2018 were New Jersey (133), Florida (133), Delaware (130), Maryland (127), and Utah (124). Chicago and DC counties post highest county pre-mover indexes Among 394 counties analyzed in the report, those with the highest pre-mover index in Q2 2018 were Kendall County, Illinois, in the Chicago metro area (461); Albemarle County, Virginia, in the Charlottesville metro area (337); followed by three Virginia counties all in the Washington, D.C. metro area: Loudon County (319), Alexandria City (307); and Spotsylvania County (294). San Francisco and New York City counties post lowest county pre-mover indexes Among the same 394 counties, those with the lowest pre-mover index in Q2 2018 were San Francisco County, California (31); Queens County, New York (33); Westchester County, New York (36); Westmoreland County, Pennsylvania in the Pittsburgh metro area (39); and Cameron County, Texas in the Brownsville-Harlingen metro area (42). Highest share of investment property pre-movers in Memphis, Indianapolis, Knoxville Nationwide 4.6 percent of all single family homes and condos with a pre-mover indicator in Q2 2018 were being purchased as an investment property. Among the 131 metropolitan statistical areas analyzed in the report, the highest share of pre-mover investment homes were in Memphis, Tennessee (21.3 percent); Indianapolis, Indiana (10.9 percent); Knoxville, Tennessee (10.1 percent); Dayton, Ohio (9.4 percent); and Fort Collins-Loveland, Colorado (9.3 percent). Highest share of second home pre-movers in Ocean City, Naples, Myrtle Beach Nationwide 3.2 percent of all single family homes and condos with a pre-mover indicator in Q2 2018 were being purchased as a second home. Among the 131 metropolitan statistical areas analyzed in the report, the highest share of pre-mover second homes were in Ocean City, New Jersey (34.6 percent); Naples-Marco Island, Florida (31.3 percent); Myrtle Beach, South Carolina (25.2 percent); Cape Coral-Fort Myers, Florida (20.9 percent); and Wilmington, North Carolina (15.7 percent). About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, APIs, market trends, marketing lists, match & append and more.
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Best Neighborhoods for Real Estate Buying and Investing
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Who's Closing on a Home in the Most Competitive Market of All-Time?
More than half of those who purchased a home this year paid asking price or less SANTA CLARA, Calif., July 17, 2018 -- Low inventory, rising home prices, and higher interest rates are making it more difficult, but they aren't keeping some people from closing on a home, according to the results of a survey released today by realtor.com, The Home of Home Search. In fact, 34 percent of those who purchased a home were unfazed by price and rate hikes, 51 percent didn't pay above asking, and 42 percent only made one or two offers. The typical profile of a successful buyer in the first half of 2018 is someone who was in the market for six months or less (61 percent), made four or fewer offers (72 percent), and bought a three-bedroom, two-bath home. Those that had an easiest time buying a home were older buyers, above the age of 55 years old, according to the survey that was conducted earlier this month by Harris Research and includes online responses from more than 1,000 people who closed in 2018. "Successful homebuyers in 2018 have been exceptionally well-qualified," said Danielle Hale, chief economist for realtor.com®. "We are seeing the impact of the inventory crisis in the data, and it's holding back home sales. While would-be buyers struggle with limited inventory, rising prices and mortgage rates, those who closed were undeterred by today's buyer frenzy. This is likely attributed to their experience, cash, and perhaps the market they've chosen to buy in." Rising rates and prices impacted the majority of buyers Home prices set new records this spring. Two-thirds of closers revealed their search was impacted by rising prices or rates. In fact, 22 percent indicated increased costs forced them to look for a less expensive home. Nineteen percent said they had to increase their monthly mortgage budget and the same share said they had to look in a different neighborhood. Conversely, 34 percent of those who closed indicated that rising prices and mortgage rates had no impact on their purchase. Fifty-four percent of buyers above 55 years old indicated no impact, while 31 percent of buyers between the ages of 35 and 54 years old, and 23 percent of those 18-34 years old reported this. Most closers didn't pay above asking, but put down more than 20 percent Despite this season's notorious bidding wars, the majority of successful home buyers, 51 percent, didn't have to pay more than asking price. In fact, 28 percent of buyers paid less than asking price and 23 percent paid full asking. This also varied by age, only 24 percent of those over 55 years old paid over asking, compared to 59 percent of those 18-34 years old and 56 percent of those 35-54 years old. Although the majority didn't offer above asking, these successful buyers were able to entice sellers with cash. Mortgage data* from the first half of 2018 shows more than 30 percent of buyers put more than 20 percent down. This data also shows that larger down payments are more common among older buyers with 22 percent of those aged 18-34, 32 percent of those aged 35-54, and 51 percent of those aged 55 and older putting more than 20 percent down. Fast closings with limited number of offers A large share of those who bought in 2018 closed very quickly. In fact, 25 percent of respondents started their search and closed within two months. More than 60 percent closed within six months and only 8 percent took one year or more after starting their search. Older buyers were more likely to close quickly with 34 percent of those 55-plus closing within two months, compared to 23 percent of 35-54-year-olds and 21 percent of 25-34-year-olds. Additionally, nearly half of all buyers, 42 percent, were able close on a home after one to two offers. Fifty-eight percent had to make three or more offers. Again, older buyers came out on top with 64 percent of those 55-plus making only one or two offers, compared to 38 percent of those 35-54 years old and 30 percent of 18-34-year-olds. Additionally, one third of 18-54-year-olds had to make five or more offers. Checking listings websites and cash are the key to getting ahead When buyers were asked about the most effective tactic they used to get ahead, the No. 1 strategy cited was checking listings websites everyday, indicated by 30 percent. Twenty-four percent reported putting more than 20 percent down and the same share reported using all cash, followed by 20 percent of respondents who used each of the following tactics: set a price alert, offered above asking, and used a larger earnest money deposit. For more information, please visit: https://www.realtor.com/research/home-buyers-in-the-most-competitive-market *Mortgage data is sourced from realtor.com® analysis of Optimal Blue mortgage origination data. About realtor.com® Realtor.com®, The Home of Home SearchSM, offers the most comprehensive source of for-sale MLS-listed properties, among competing national sites, and access to information, tools and professional expertise to help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today is the trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [NASDAQ: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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Redfin Survey: 36% of Millennial Homebuyers Took a Second Job to Save for Down Payment; 10% Sold Cryptocurrency
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HOME Survey: Housing and Economic Outlook Remains Steady in Second Quarter of 2018
WASHINGTON (June 21, 2018) — New findings from the National Association of Realtors® show that a high number of Americans, 75 percent, believe that now is a good time to sell a house, while 68 percent think it is a good time to buy. That's according to NAR's second quarter Housing Opportunities and Market Experience (HOME) survey, which also found that a majority of consumers believe prices have and will continue to increase and that homeownership strengthens our nation's communities. Optimism that now is a good time to buy remains stagnant from last quarter; 39 percent strongly agree that now is a good time to buy, while 29 percent moderately agree. Among renters, however, those positive feelings have fallen significantly from 55 percent in the first quarter to 49 percent this quarter. Optimism is highest among older buyers (65 or over) and those living in the South and Midwest regions (73 and 71 percent respectively). NAR Chief Economist Lawrence Yun says affordability and low inventory are eroding buyer confidence. "Inventory remains the driving force in real estate, affecting everything for rising prices to household formation. Improving supply conditions is critical to improving buyer optimism and helping to remove some of the barriers holding back potential first-time buyers." As home prices continue to climb across the country, the number of respondents who believe now is a good time to sell remains high with 46 percent strongly agreeing (up from 42 percent last quarter) and 29 percent moderately agreeing. Twenty-nine percent believe that now is not a good time to sell a home, and that drops to 19 percent for current homeowners. "Hopefully this strong seller optimism will lead to an increase in inventory later on in the year," said Yun. Respondents were also asked about their perception of home prices in their communities. Sixty-eight percent believe that home prices have gone up in their area in the last 12 months, up from 63 percent last quarter. Fifty-five percent also believe that home prices will continue to increase in their communities in the next six months, also up from the previous quarter (53 percent). A near high of 58 percent of households believe that the economy is improving – slightly down from 60 percent last quarter but up from 54 percent last year. People in rural areas are more likely to view the economy as improving (63 percent) than in urban areas (51 percent). The HOME survey's monthly Personal Financial Outlook Index, showing respondents' confidence that their financial situation will be better in six months, dropped slightly from 63.8 in March to 62.1 in June. A year ago, the index was 57.2. Forty-six percent of those surveyed say they do not believe it would be difficult to obtain a mortgage, up from 36 percent last quarter. "This is most likely a reflection of the current positive outlook on the direction of the economy," said Yun. "Healthy job creation and faster wage growth mean that homeownership is viewed as a more attainable goal than it was a year ago." Homeownership's effect on communities, future generations In this quarter's survey, homeowners and non-homeowners were asked if a high rate of homeownership strengthens a community. Sixty-seven percent of those surveyed said that homeownership strengthens communities a great deal, and that number jumps to 76 percent for current homeowners and 77 percent for those 65 and older. "Homeowners are more likely to be involved and engaged in the issues facing their communities, since they tend to be more rooted in the area than renters," said NAR President Elizabeth Mendenhall, a sixth-generation Realtor® from Columbia, Missouri and CEO of RE/MAX Boone Realty. "This involvement – homeowners are more likely than renters to vote, volunteer their time at local charities and support neighborhood upkeep – helps shape and strengthen our nation's communities, as well as drive the national economy." Respondents were also asked if homeownership will be easier or harder to attain for future generations. Seventy-three percent believe that it will be harder for future generations to purchase a home, compared to only 11 percent who think it will be easier. Seventy-four percent of respondents 34 or under believe it will be more difficult to become homeowners. About NAR's HOME survey In April through June, a sample of U.S. households was surveyed via random-digit dial, including a mix of cell phones and land lines. The survey was conducted by an established survey research firm, TechnoMetrica Market Intelligence. Each month approximately 900 qualified households responded to the survey. The data was compiled for this report and a total of 2,707 household responses are represented. The National Association of Realtors® is America's largest trade association, representing 1.3 million members involved in all aspects of the residential and commercial real estate industries.
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Amazon HQ2 Finalists Ranked by Housing Market Health
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Looking Elsewhere: External Searches in California's Hottest Markets More than Double the U.S. Average
Phoenix, Las Vegas and Prescott, Ariz. are Top Destinations for California Expats SANTA CLARA, Calif., May 31, 2018 -- California's housing affordability crisis is prompting residents to look for homes in less expensive areas or outside of the state. New research from realtor.com®, The Home of Home Search℠, reveals affordability issues are driving California residents to search for homes in Phoenix, Las Vegas and Prescott, Ariz., as well as in more affordable California counties. In 16 of California's hottest markets -- including Santa Clara, San Mateo and Los Angeles -- outbound home searches are two times greater than the U.S. average. The analysis examines realtor.com® home searches in the 16 California counties and American Community Survey migration estimates. Search data includes both outbound searches and the ratio of search traffic viewing pages outside of an area versus outside traffic coming in. The ACS data includes the domestic migration ratio, which is the ratio of net migration less international migration, relative to the population. "Our research shows many California residents may have reached their breaking point," said Danielle Hale, chief economist for realtor.com.® "Affordability is pricing them out of the California home market and many are searching for more affordable options in other areas. This exodus could help slow price appreciation in California, but potentially heat up prices and reduce inventory in surrounding markets. If this pattern continues, we could see Californians drive up home prices in parts of Phoenix, Las Vegas and Prescott, Ariz." In addition to Santa Clara, San Mateo and Los Angeles, the top California counties where residents are leaving, according to ACS migration patterns, are split between the Northern and Southern areas of the state. In rank order, they include: Napa, Monterey, Alameda, Marin, Orange, Santa Barbara, San Diego, Imperial, Ventura, San Francisco, Santa Cruz, Tulare, and Sonoma. California median list prices have increased 83 percent over the last six years, to $549,000 from $300,000, outpacing local income growth by three times. According to realtor.com®'s analysis, 52 percent of residents looking outside their county are looking to move outside California to nearby states. The top 10 out of state destinations include, in rank order, Phoenix (Maricopa County, Ariz); Las Vegas (Clark County); Prescott (Yavapai County, Ariz.); Boise (Ada County, Idaho); Reno, (Washoe County, Nev.); Lake Havasu (Mohave County, Ariz.); Pima County, Ariz.; Coeur d'Alene (Kootenai County, Idaho); Austin (Travis County, Texas); and the Big Island (Hawaii County, Hawaii). Most of the counties on this list offer California residents relatively close proximity to California, dry and sunny weather, as well as more affordable home prices. On average, those searching out of state are looking at properties that are 43 percent more affordable than their current county. Additionally, nearly half -- 48 percent -- of those searching outside their county are looking within California. The top 10 in state counties most searched by those looking to leave their county include: Riverside, San Bernardino, Los Angeles, Orange, Sacramento, San Diego, Placer, Contra Costa, El Dorado, and Ventura County. Those searching in other California counties are looking at properties that are on average 17 percent more affordable. Top Destinations by California Market 1. Santa Clara County Out of state destinations:  Arizona, Nevada, Texas and IdahoIn state destinations:  Alameda, Sacramento, San Joaquin, Santa Cruz and Placer counties When looking out of state, shoppers from Santa Clara are looking at far more affordable properties in Maricopa, Ariz.; Clark, Nev.; Washoe, Nev.; Travis, Texas; and Ada, Idaho counties that are $750,000 to $965,000 less than the typical property in Santa Clara. Within California, they are looking at properties in nearby counties of Alameda, Sacramento, San Joaquin, Santa Cruz and Placer that are $509,000 - $894,000 less than the Santa Clara median. 2. San Mateo County Out of state destinations:  Arizona, Nevada, Texas and WashingtonIn state destinations:  Alameda, Contra Costa, Santa Clara, Sacramento, and San Francisco counties San Mateo shoppers are looking at far more affordable counties when shopping out of state. The properties they look at in Maricopa, Ariz.; Clark, Nev.; Washoe, Nev.; Travis, Texas; and King, Wash. counties are $778,000 – $1.1 million less than the typical San Mateo property. Those looking in state are looking in nearby counties of Alameda, Contra Costa, Santa Clara, Sacramento, and San Francisco and considering properties $274,000 - $1.1 million less than the median price in San Mateo. 3. Los Angeles County Out of state destinations:  Nevada, Arizona, and IdahoIn state destinations:  San Bernardino, Riverside, Ventura and Kern counties Angelenos looking out of state are viewing homes priced well below the Los Angeles median. The typical home they view in Clark, Nev.; Maricopa, Ariz.; Yavapai, Ariz.; Mohave, Ariz.; and Ada, Idaho counties is $306,000 - $455,000 below the typical listing at home. Shoppers looking in state are generally looking at properties that are $22,000 - $446,000 less expensive than their current market price. However, homes viewed in nearby Orange County are $34,000 more expensive. 4. Napa County Out of state destinations:  Arizona, Idaho, Nevada, Florida and OregonIn state destinations:  Solano, Sonoma, Sacramento, Lake and El Dorado counties Napa's out of state searchers in Maricopa, Ariz; Ada, Idaho; Washoe, Nev.; Brevard, Fla.; and Deschutes, Ore. counties are looking at properties that are $170,000 to $450,000 less expensive than the market price in Napa. Those looking in nearby California counties of Solano, Sonoma, Sacramento, Lake and El Dorado counties are looking at properties priced $120,000 to $484,000 less than the market price in Napa. 5. Monterey County Out of state destinations:  Arizona, Nevada, and IdahoIn state destinations: San Luis Obispo, Fresno, Santa Cruz, Sacramento and San Diego counties Monterey out of state shoppers are viewing homes in Maricopa, Ariz; Washoe, Nev.; Yuma, Ariz.; Ada, Idaho; and Clark, Nev. that are $494,000 - $749,000 less expensive than the typical listing at home. Those looking to stay in state are looking in counties like San Luis Obispo, Fresno, Santa Cruz, Sacramento and San Diego and specifically at properties that are $314,000 - $664,000 less than the market price in Monterey. 6. Alameda County Out of state destinations: Arizona, Nevada, Idaho, and HawaiiIn state destinations: Contra Costa, San Joaquin, Sacramento, Placer, and El Dorado counties Shoppers are viewing homes in Maricopa, Ariz. and Ada, Idaho well above the local market median which is still a $300,000 - $400,000 bargain compared to Alameda. In Clark and Washoe counties in Nevada and Hawaii, they are viewing homes priced below the local median listing price and between $300,000 and $500,000 below the typical Alameda listing. Within California, they are generally shopping for a home $160,000 - $415,000 below their current median in counties such as Contra Costa, San Joaquin, Sacramento, Placer and El Dorado. 7. Marin County Out of state destinations: Nevada, Arizona, Oregon and IdahoIn state destinations: Sonoma, Contra Costa, Solano and San Francisco counties Out of state shoppers viewing homes in more affordable counties such as Washoe, Nev.; Maricopa, Ariz.; Pima, Ariz.; Deschutes, Ore.; and Ada, Idaho are looking at homes generally priced $621,000 - $1 million less than the typical listing in Marin. Shoppers looking within state are looking at properties in Sonoma, Contra Costa, Solano and San Francisco counties, priced $167,000 - $937,000 less than the market price in Marin. 8. Orange County Out of state destinations: Arizona, Nevada and IdahoIn state destinations: Riverside, Los Angeles, San Bernardino, San Diego and San Luis Obispo The typical Orange County out of state shopper is looking in Maricopa, Ariz.; Clark, Nev.; Yavapai, Ariz.; Ada, Idaho; and Mohave, Ariz. counties at properties that are $442,000 - $592,000 less than the typical property in Orange County. Those looking to stay in state are looking in nearby counties of Riverside, Los Angeles, San Bernardino, San Diego and San Luis Obispo at properties priced $192,000 - $527,000 less than the typical property in Orange County. 9. Santa Barbara County Out of state destinations: Arizona, Nevada and IdahoIn state destinations: San Luis Obispo, Ventura, Los Angeles, Riverside and Kern counties When looking out of state, shoppers from Santa Barbara are looking at far more affordable counties such as Maricopa, Ariz.; Clark, Nev; Yavapai, Ariz.; Kootenai, Idaho; and Mohave, Ariz and view properties that are $481,000 - $661,000 less than the typical property in Santa Barbara. Those looking nearby are interested in the counties of San Luis Obispo, Ventura, Los Angeles, Riverside and Kern and homes priced $47,000 - $667,000 less than the Santa Barbara median price. 10. San Diego County Out of state destinations: Arizona and NevadaIn state destinations: Riverside, San Bernardino, Imperial, Orange County and Los Angeles Out of state shoppers are looking at homes in Maricopa, Ariz.; Clark, Nev.; Yavapai, Ariz.; Mohave, Ariz.; and Pima, Ariz. counties that are priced $324,000 - $444,000 less than the typical property in San Diego. Shoppers viewing properties within state are looking at homes in Riverside, San Bernardino, Orange County, Los Angeles and Imperial counties. The properties they look at in Riverside, San Bernardino and Imperial are $289,000 - $429,000 less expensive than the typical property in San Diego, but in Orange County and Los Angeles, they are $86,000 - $106,000 more than the San Diego median list price. 11. Imperial County Out of state destinations: Arizona and IdahoIn state destinations: San Diego, Riverside, Los Angeles, San Bernardino, and Orange counties Shoppers looking outside of Imperial are viewing significantly more expensive properties than the Imperial housing market. The typical home they are looking at in counties like San Diego, Riverside, Los Angeles, San Bernardino, and Orange is $32,000 - $705,000 more than the median price in Imperial. Out of state shoppers are looking at homes in Yuma, Ariz.; Maricopa, Ariz.; Ada, Idaho; and Coconino priced $15,000 - $179,000 below the typical listing in the Imperial, although the typical home looked at in Yavapai, Ariz. is $71,000 more. 12. Ventura County Out of state destinations: Arizona, Nevada, and IdahoIn state destinations: Los Angeles, Kern, Riverside and San Bernardino counties Out of state Ventura shoppers are looking at less expensive homes in Maricopa, Ariz.; Clark, Nev.; Yavapai, Ariz.; Ada, Idaho; and Mohave, Ariz. counties that are $298,000 - $507,000 less than the typical property in Ventura. Shoppers looking in state are searching in Los Angeles, Kern, Riverside and San Bernardino counties at homes that are $2,000 - $457,000 less than the median price in Ventura, but properties they look at in Santa Barbara County are $152,000 more. 13. San Francisco County Out of state destinations: Arizona, Nevada, Illinois and OregonIn state destinations: Contra Costa, Alameda, San Mateo, Sonoma, and Sacramento When looking out of state, shoppers from San Francisco are looking at properties in Maricopa, Ariz.; Clark, Nev.; Washoe, Nev.; Cook, Ill.; and Multnomah, Ore. counties that are $841,000 - $1.0 million less than the typical property in San Francisco. Those looking in state are typically searching in Contra Costa, Alameda, San Mateo, Sonoma, and Sacramento counties for properties that are $390,000 - $940,000 less than the San Francisco median list price. 14. Santa Cruz County Out of state destinations: Nevada, Arizona, Hawaii, and OregonIn state destinations: Monterey, Placer, El Dorado and San Luis Obispo When looking out of state, shoppers from Santa Cruz are looking at properties in Washoe, Nev.; Maricopa, Ariz.; Hawaii, Hawaii; Douglas, Nev.; and Deschutes, Ore. counties that are $450,000 - $585,000 less than the typical property in Santa Cruz. Properties they look at in state in the nearby counties of Monterey, Placer, El Dorado and San Luis Obispo are typically $313,000 - $480,000 less expensive than the Santa Cruz median price. However, the properties they look at in Santa Clara are $184,000 more expensive than Santa Cruz. 15. Tulare County Out of state destinations: Nevada, Arizona, Kansas and IdahoIn state destinations: Fresno, San Luis Obispo and Los Angeles Very little of Tulare's demand flows out of state but top out of state locations include Nevada, Arizona, Kansas and Idaho. When looking out of state, shoppers from Tulare are looking at properties in Clark, Nev.; Maricopa, Ariz.; Johnson, Kan.; Ada, Idaho; and Yavapai, Ariz. counties that are $11,000 - $111,000 more expensive than the typical property in Tulare. Those looking to remain in state are viewing properties in Fresno, San Luis Obispo and Los Angeles that are $26,000 - $600,000 more expensive than Tulare, but properties in Kings and Kern County are $9,000 - $10,000 less expensive. 16. Sonoma County Out of state destinations: Arizona, Idaho, Oregon and NevadaIn state destinations: Lake, Mendocino, Placer, Sacramento and El Dorado counties When looking out of state, shoppers from Sonoma are looking in Maricopa, Ariz.; Ada, Idaho; Pima, Ariz.; Jackson, Ore.; and Washoe, Nev. counties at properties that are $176,000 - $376,000 less than the typical property in Sonoma. Shoppers looking in state are typically looking in Lake, Mendocino, Placer, Sacramento and El Dorado counties at properties that are $186,000 - $458,000 less than the Sonoma median price. For more California migration data, please visit realtor.com/research. About realtor.com® Realtor.com®, The Home of Home Search℠, offers the most comprehensive source of for-sale MLS-listed properties, among competing national sites, and access to the information, tools and professional expertise to help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today is the trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [NASDAQ: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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Redfin Migration Report: Denver Joins Seattle and San Francisco as a Tech Hub with More People Looking to Move Out than Move In
SEATTLE, May 23, 2018 -- In the first three months of 2018, Denver posted a "net outflow" of Redfin users for the first time, meaning that more Denver-based Redfin users were searching for homes in other metro areas than Redfin users elsewhere looking to move in. This is according to the latest Migration Report by Redfin, the next-generation real estate brokerage. The analysis is based on a sample of more than 1 million Redfin.com users searching for homes across 75 metro areas from January through March. Of all Denverites using Redfin, 20 percent were searching for homes in another metro, up from 15 percent during the same time period a year earlier. Nationally, 23.9 percent of Redfin.com users looked to relocate to another metro area last quarter, up from 19.8 percent a year earlier. Seattle, which is grappling with a controversial tax related to the city's housing crisis, has posted two consecutive quarters of net outflow, based on Redfin user data. In the first quarter, 12 percent of Seattle-based Redfin users were looking in other metro areas, up from 9 percent during the same period last year. "Home searches are a forward-looking indicator of what is likely to happen to a city's population," said Taylor Marr, senior economist at Redfin. "We saw this in 2015 in the Bay Area, when more Bay Area Redfin users were searching elsewhere. By 2016, the U.S. Census Bureau showed San Francisco had lost residents. Now we see signs that Denver and Seattle, cities that once attracted those fleeing high home prices, are becoming unaffordable as well." Below are the metros with the highest net outflows of Redfin users: Census data shows that Denver peaked at 40,000 net domestic migrations in 2015, meaning that many more people moved to Denver than left. Since then, while still positive, the net migration has declined each year. Looking ahead, based on Redfin user search trends, the company expects Denver to see a negative net migration, or a loss of residents, in the 2019 Census. Meanwhile in Seattle, the Census data reveal peak net domestic migration in 2016, a year later than Denver, and the decline in 2017 was less dramatic. Redfin search data, however, shows users increasingly looking to leave the Seattle area. Since October 2017, more Seattleites are looking at homes elsewhere than the other way around. Where are they going? Residents looking to leave Seattle and Denver last quarter were mostly looking in areas that were more affordable and less competitive. Los Angeles looks like an exception on the surface, because the metro area on average is more expensive than Denver and Seattle. However, when they looked at the county level, analysts found that the most common areas homebuyers were looking at were more affordable areas of the LA market, like the Inland Empire (Riverside County, CA). Phoenix was a top destination for both Seattle and Denver last quarter, and had the largest net gain of Redfin users looking to move to the area from elsewhere. This was up significantly—34 percent—from a year ago. Phoenix is also much more affordable, with a median home sale price of $257,000 as of April, compared to $415,000 in Denver and $580,000 in Seattle. Major cities in Texas, as well as Chicago and Portland, are also attractive to those leaving Seattle and Denver. This has resulted in a disbursement of wealth throughout the country to cities that have made it easier to build new housing. Which Cities Will be Next? Below are the 10 metros that are the most likely to receive big inflows of new residents in the next year from expensive coastal markets, based on the number of users looking to relocate there versus leave. With these new residents, economic growth and rising home prices will likely follow, as we saw in Seattle and Denver. The new destinations will be at risk for becoming unaffordable over time as well, unless they build enough new homes to keep up with the influx of people. Cities like Las Vegas, Atlanta and Austin are building thousands of new housing units to accommodate this growth. Meanwhile Sacramento, Portland and San Diego are good examples of markets experiencing early signs of slowing growth, with smaller net inflows of Redfin users in the first quarter of this year than in the same time period in 2017. These metro areas have not expanded housing as rapidly to dampen growth in housing costs. To read the full report, complete with more data and interactive charts, please click here. About Redfin Redfin is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $60 billion in home sales.
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Nevada Leads Nation with Highest Share of Homeowners Likely to Move in Q2 2018
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Housing Economists Call for Increase in Home Construction
WASHINGTON (May 18, 2018) – An increase in housing supply is crucial to the health and sustainability of the real estate market and the economy, according to speakers at a session organized by the REALTOR® University Richard J. Rosenthal Center for Real Estate Studies during the 2018 REALTORS® Legislative Meetings & Trade Expo. The session, "Outlook for Home Prices and Residential Construction," focused on rapidly rising home prices, tight home inventories and whether or not the country is in the middle of a bubble. All three of the panelists agreed that more new home construction is necessary to meet rising demand from increasing household formation and curtail the affordability crisis. "Young adults of today are forming households at a much lower rate than previous generations, and high housing costs contribute to that," said Len Kiefer, deputy chief economist for Freddie Mac. According to Kiefer, one third to three quarters of U.S. markets have an elevated home price-to-income ratio and many major markets, such as Austin, Miami and Portland, are getting close to surpassing their 2008 ratio. "Are we in a bubble? No, not currently," said Kiefer. He outlined ways the current market is different from the one leading to the recession, such as no signs of over leveraging and the very low ratios of household income to debt. The aggregate risk of mortgages in the U.S. is also comparatively low "Those risky loans that contribute to the last bubble have largely gone away in the current market," he said. However, the panelists were quick to point out that just because we are not currently in a bubble does not mean we won't enter one. If supply and demand continues to become more and more out of balance, it could trigger a fast price growth, said NAR Chief Economist Lawrence Yun. "A best-case scenario is largely dependent on new home construction. An increase in inventory will provide some much-needed release," he said. Ken Simonson, chief economist for Associated General Contractors of America, discussed how low employment in construction is also contributing to the lag in new home construction, despite high demand. "Construction saw a 30 percent drop in employment in the previous decade, the largest drop of any industry. They also began laying people off a year before the recession began and did not start hiring again until much later than other industries," said Simonson. This has led to difficulty in bringing skilled laborers back to the industry. "Construction companies are having to hire people with no experience and spend more time and money on training," he said. Material costs have also contributed to the low rate of construction. The price of diesel fuel, which is used in earth moving vehicles and in transporting materials, has risen 42 percent since 2017. The cost of lumber and plywood has also increased 11 percent, copper and brass mill shapes have risen 10 percent and ready-mix concrete has risen 7 percent. The National Association of Realtors® is America's largest trade association, representing 1.3 million members involved in all aspects of the residential and commercial real estate industries.
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Realtor.com Identifies Toughest Housing Markets for Millennials
List includes San Jose, Calif.; Seattle and Salt Lake City, as well as some surprises SANTA CLARA, Calif., April 26, 2018 -- This spring, the largest generation in U.S. history – millennials – is colliding with the toughest home buying season in history, and they will fare better in some markets than others. According to a new analysis released today by realtor.com®, the home of home search, the combination of low inventory, escalating home prices and high demand have made San Jose, Seattle, Salt Lake City, Minneapolis and Omaha, Neb., the toughest areas in the country for millennial buyers this spring. "Millennials want to buy, but record-low inventory is making it extremely difficult," Danielle Hale, chief economist for realtor.com®. "Our analysis shows millennials are facing challenges in both established markets such as San Jose and Seattle, as well as more recently popular areas like Omaha and Salt Lake City. Despite the difficulties, first-timers are optimistic and more than willing to weather the challenges this spring has to offer." Key Dynamics in the Top Five Markets All the markets on the list are millennial hotspots that have attracted 25- to 34-year-olds with strong economies and high-paying jobs. As a result, millennials make up a higher share of the population, at 14.6 percent, compared to 13.4 percent for the U.S. Household income among 25- to 34 year-olds in these five locations is also significantly higher, at roughly $79,000, compared to the U.S. median of $59,800. Additionally, based on realtor.com® search data, millennials in these markets are very interested in buying a home. In the first quarter, they accounted for 25 percent of views, higher than any other age group. However, low inventory levels and high prices are making it tough for these would-be buyers. Nationally, inventory is 35 percent lower than the spring of 2012 and prices have reached a new high of $280,000. The shortage is even more acute in these five metros. Compared to this time last year, active listings in these five metros remain 8 percent lower, age of inventory is 7 percent lower, and list prices are 8 percent higher. Supply is nearly three times lower than the rest of the country, at 5.7 listings versus 16.1 listings per 1,000 households. Additionally, listings in these areas are scarcer and selling faster for more money. In these five metros active listings are 9 percent lower, age of inventory is 13 percent lower, and list prices are 14 percent higher from a year ago. Toughest Housing Markets for Millennials 1. San Jose - The median list price in San Jose is $1,244,000, compared to $280,000 for the U.S. overall. On average, San Jose millennials earn $109,800 annually. Millennials make up 14.3 percent of the total population in San Jose and account for 24.1 percent of total realtor.com® page views in the area. Millennials are flocking to San Jose in hopes of earning the "tech salary" that everyone is chasing. Apple, Adobe, Intel, and NASA are just a few of the companies that call this area home. With San Jose State University and nearby Stanford University, the area is replete with young students and scholars. The inventory shortage is especially significant in the area and is pushing non-tech industry workers to the outskirts. 2. Seattle - The median list price in Seattle is $553,000. On average, millennials earn $78,300. Millennials make up 15.4 percent of the total population in Seattle and account for 24.2 percent of total realtor.com® page views in the area. Big tech employers such as Amazon, Microsoft, and Expedia are a big draw for millennial and non-millennial workers to the Seattle area. Beyond the tech scene, Seattle offers great outdoor spaces, such as Kerry Park and a thriving nightlife in Ballard and Capitol Hill. Despite Seattle's already high home prices, real estate professionals don't see any end in sight given the large amount of tech money flooding into the area. They also report many millennials are spending more than $1,000,000 on their first home due to the high salaries and home prices in the area. 3. Salt Lake City - The median list price in Salt Lake City is $394,000. On average, millennials earn $67,800 annually. Millennials make up 15.5 percent of the total population in Salt Lake City and account for 26 percent of total realtor.com® page views in the area. Salt Lake City offers the perfect blend of city life and the great outdoors for millennial professionals. Intermountain Healthcare Medical Center, University Hospital and the University of Utah are the largest employers in the area, with other notable companies such as Delta Air Lines and eBay. Located just an hour from Park City, residents can spend the morning downtown shopping one of the city's many trendy shopping areas, and be on the slopes by mid-afternoon. However, millennials are struggling to find their place in the hot housing market. Many homes under $350,000 are getting scooped up instantly by older buyers who often have more money. 4. Minneapolis - The median list price in Minneapolis is $283,000. On average, millennials earn $73,600 annually. Millennials make up 13.8 percent of the total population in Minneapolis and account for 25.9 percent of total realtor.com® page views in the area. Minneapolis is the perfect city for millennials who love a mix of natural amenities and urban living. The area is home to 17 Fortune 500 companies, including UnitedHealth Group, Target, Best Buy, and 3M. It's also home to a thriving cycling culture, with the second (only to Portland) most bike commuters of all big cities. The city is relatively affordable, but it's become more difficult for first-time buyers to find homes under $250,000. When they do, they are often outbid by cash offers from boomers. 5. Omaha - The median list price in Omaha is $283,000. On average, millennials earn $63,500 annually. Millennials make up 13.8 percent of the total population in Omaha and account for 25.9 percent of total realtor.com® page views in the area. Millennials are drawn to Omaha for its low cost of living, strong school system, and thriving job market. With schools such as Spring Ridge Elementary, Aldrich Elementary, and Hitchcock Elementary, all of which scored 9/10 by Greatschools.org, the area is great for millennials who want to start families. It offers strong financial, medical and military jobs with companies such as Nebraska Medicine, Taylor Telecommunications, and Union Pacific Railroad Co. Millennials looking to find homes under $250,000 are struggling, but boomers purchasing more expensive homes continue to have success closing. Methodology Realtor.com® analyzed the largest 60 metros in the country with large populations of older millennial markets. Markets were then ranked based on inventory availability and affordability. About realtor.com® Realtor.com® is the home of home search, offering the most comprehensive source of for-sale properties, among competing national sites, and the information, tools and professional expertise to help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today is the trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [NASDAQ: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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U.S. Property Taxes Levied on Single Family Homes in 2017 Increased 6 Percent to More Than $293 Billion
Average Property Tax Was $3,399, Up 3 Percent and Effective Tax Rate of 1.17 Percent; Highest Effective Tax Rates in New Jersey, Illinois, Vermont, Texas, New Hampshire; Average Property Taxes Nearly Twice as High in Politically Blue Counties as in Red Counties IRVINE, Calif. – April 5, 2018 — ATTOM Data Solutions, curator of the nation's premier property database, today released its 2017 property tax analysis for more than 86 million U.S. single family homes, which shows that property taxes levied on single family homes in 2017 totaled $293.4 billion, up 6 percent from $277.7 billion in 2016 and an average of $3,399 per home — an effective tax rate of 1.17 percent. The average property taxes of $3,399 for a single family home in 2017 was up 3 percent from the average property tax of $3,296 in 2016, and the effective property tax rate of 1.17 percent in 2017 was up from the effective property tax rate of 1.15 percent in 2016. The report analyzed property tax data collected from county tax assessor offices nationwide at the state, metro and county levels along with estimated market values of single family homes calculated using an automated valuation model (AVM). The effective tax rate was the average annual property tax expressed as a percentage of the average estimated market value of homes in each geographic area. New Jersey, Illinois, Vermont, Texas, New Hampshire post highest property tax rates States with the highest effective property tax rates were New Jersey (2.28 percent), Illinois (2.22 percent), Vermont (2.19 percent), Texas (2.15 percent), and New Hampshire (2.06 percent). Other states in the top 10 for highest effective property tax rates were Pennsylvania (2.02 percent), Connecticut (1.99 percent), New York (1.92 percent), Ohio (1.72 percent), and Wisconsin (1.67 percent). Among 217 metropolitan statistical areas analyzed in the report with a population of at least 200,000, those with the highest effective property tax rates were Scranton, Pennsylvania (3.93 percent); Binghamton, New York (3.14 percent); Rockford, Illinois (3.03 percent); Rochester, New York (2.93 percent); and El Paso, Texas (2.63 percent). Property taxes increase faster than national average in 58 percent of markets Out of the 217 metropolitan statistical areas analyzed in the report, 125 (58 percent) posted an increase in average property taxes above the national average of 3 percent, including Los Angeles (7 percent increase), Dallas (11 percent increase), Houston (10 percent increase), Philadelphia (4 percent increase), and Miami (5 percent increase). "Across California, it's not the percentage of property tax increase that is as concerning to consumers, as it is the net effect to cash flow, especially for an aging population on fixed incomes," said Michael Mahon, president at First Team Real Estate, covering Southern California. "This erosion of disposable income for many homeowners coupled with an aging housing inventory stock in need of repair across many areas of the state puts some homeowners in a difficult position where they have ample housing equity on paper but aren't able to realize home value gains until a future sale of the property." Other major markets posting an increase in average property taxes that was above the national average were Atlanta (up 4 percent), Boston (up 5 percent), San Francisco (up 6 percent), Riverside-San Bernardino (up 5 percent), and Seattle (up 6 percent). "The increase in property taxes in the Seattle region is not surprising given the number of voter approved measures that add to homeowners' property taxes as well as rising home values," said Matthew Gardner, chief economist at Windermere Real Estate, covering the Seattle housing market. "That said, this rapid rise in values of housing more than offsets this increase — therefore the relatively small effective tax rate. "Passage of the McCleary Bill (to fully fund K-12 basic education) means that 2018 property taxes are going to jump quite dramatically before dropping back in 2019 with the recently passed one-time property tax cut of 30 cents per $1,000 of assessed value," Gardner added. Hawaii, Alabama, Colorado, Tennessee, West Virginia post lowest property tax rates States with the lowest effective property tax rates were Hawaii (0.34 percent); Alabama (0.49 percent); Colorado (0.51 percent); Tennessee (0.56 percent); and West Virginia (0.57 percent). Other states in the top 10 for lowest effective property tax rates were Utah (0.58 percent), Delaware (0.61 percent), South Carolina (0.66 percent), Arkansas (0.68 percent), and Arizona (0.68 percent). Among the 217 metro areas analyzed for the report, those with the lowest effective property tax rates were Honolulu (0.33 percent); Montgomery, Alabama (0.36 percent); Tuscaloosa, Alabama (0.41 percent); Colorado Springs, Colorado (0.42 percent); and Greeley, Colorado (0.45 percent). 9 counties with average annual property taxes of more than $10,000 Among 1,414 U.S. counties with at least 10,000 single family homes, those with the highest average property taxes on single family homes were all in the greater New York metro area, led by Westchester County, New York ($17,179), Rockland County, New York ($12,924), Essex County, New Jersey ($11,878), Bergen County, New Jersey ($11,585), and Nassau County, New York ($11,415). Other counties with average property taxes of more than $10,000 — the cap on state and local tax deductions for federal income taxes under the tax reform legislation signed into law by President Donald Trump in December — on single family homes were Marin County, California ($11,295), Union County, New Jersey ($10,863), Fairfield County, Connecticut ($10,612), and Morris County, New Jersey ($10,294). Average property taxes nearly twice as high in blue counties as in red counties Among the 1,414 U.S. counties analyzed in the report, the average property tax on single family homes in the 327 "blue" counties won by Hillary Clinton in the 2016 presidential election was $4,528, nearly twice the average property tax on single family homes of $2,462 in the 1,087 "red" counties won by Donald Trump. There was not as much difference in the effective property tax rates between the blue counties and red counties because of higher average home values in the blue counties — $377,142 compared to $210,753 in the red counties. The effective property tax rate was 1.20 percent in the politically blue counties compared to a 1.17 percent effective property tax rate in the politically red counties. About ATTOM Data Solutions ATTOM Data Solutions blends property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties multi-sourced from more than 3,000 U.S. counties. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. With more than 29.6 billion rows of transactional-level data and more than 7,200 discrete data attributes, the 9TB ATTOM data warehouse powers real estate transparency for innovators, entrepreneurs, disrupters, developers, marketers, policymakers, and analysts through flexible delivery solutions, including bulk file licenses, APIs and customized reports.
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Redfin Survey: 15 Percent of Respondents Sold Their Home or Did Not Buy Last Year Due to Concerns about Immigration Policies
SEATTLE — Feb. 6, 2018 -- Fifteen percent of respondents to a 2017 housing market sentiment survey said they either sold their home or did not buy one last year because of concerns about how restrictive immigration policies or proposals would affect them, according to Redfin, the next-generation real estate brokerage. From November 1 to December 6, 2017, Redfin commissioned a survey of 4,270 U.S. residents in 14 metropolitan areas who bought or sold a home in the past year, attempted to do so or planned to do so soon. Asked how restrictive immigration policies or proposals affected their decision to buy or sell a home, 8 percent of respondents said they sold their home in the last year because they were worried they wouldn't be able to stay or work in the U.S. much longer. Seven percent did not purchase a home for the same reason. "I've seen buyers finally get offers accepted, only to cancel the contracts," said Gabriella Stwart, a Redfin agent in Bellevue, Washington. "We're having conversations with professionals working at large companies who are eager to sell or not buying because their visas are expiring or close to it and might not be extended." The survey results reveal that housing markets in certain parts of the country are more likely to be affected by immigration policy. Among respondents in the Los Angeles area, 32.7 percent said they sold or did not buy a home because they were worried they wouldn't be able to work or stay in the country much longer. In Baltimore, 18.5 percent said the same, as well as 16.8 percent in San Francisco. Other findings in this first in a series of three reports on this survey include: 18% of millennials who bought a home in the last year now live in the political minority in their new community. 37% of people of color felt they may have been discriminated against when trying to buy a home, down from 43% in a similar survey in May. "The two data points we have about the perception of discrimination in housing reveal just a snapshot of what amounts to a short moment in our country's long history of racial inequality in housing, and change in the actual incidence of such discrimination is likely to happen only slowly over many years," said Nela Richardson, Redfin chief economist. "It's more likely that that the trend we see in this snapshot reveals an aberration last year around the contentious Presidential election, when racial tensions and anxiety about discrimination were heightened. However, when it comes to where people can live, work and go to school, the idea that more than a third of people of color buying a home still don't believe that their money is as good as anyone else's is a massive problem." To read the full report, complete with data, charts and a full methodology, please click here. About Redfin Redfin is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including theRedfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $50 billion in home sales.
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Realtor.com® Predicts the New England Patriots to Triumph in the Super Bowl
Pick based on an analysis of the Boston and Philadelphia housing markets SANTA CLARA, Calif., Jan. 29, 2018 -- Realtor.com® today announced its prediction for a sixth NFL championship for the New England Patriots in Super Bowl LII. Its pick of the Patriots over the Philadelphia Eagles isn't based on defensive schemes or quarterback matchups, but rather a comparison of the strength of each team's respective housing markets. "Although there is no correlation between football and real estate, we made our pick based on what we know best – the housing market," said Nate Johnson, chief marketing officer for realtor.com®. "With strong home prices and fast days on market, there's no question that Boston currently has a more dynamic housing market, which in our minds make it the clear pick for the upcoming game." Both Philadelphia and Boston had strong real estate seasons this year, generating first- down payments and new home turf for thousands of buyers. But Boston showed more potent price yardage overall, with listing prices driving up 8 percent year over year, compared with Philadelphia's 6 percent gains. Boston also showed a faster running game with for sale inventory reaching the end zone and selling in 48 days versus 70 days in Philadelphia. When it comes to inventory declines, Boston dominated with inventory down 18 percent year over year, compared to Philadelphia's 15 percent decline. Realtor.com® made its pick based on a comparison of listing prices, days on market, and inventory from March 2017 through January 2018 for the Philadelphia and Boston metros. About realtor.com® Realtor.com® is the trusted resource for home buyers, sellers and dreamers, offering the most comprehensive source of for-sale properties, among competing national sites, and the information, tools and professional expertise to help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today helps make all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [NASDAQ: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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Strong Demand, Tight Inventory and Unsatisfied Millennials Define Today's "State of the Housing Union"
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Buying a Home More Affordable Than Renting in 54 Percent of U.S. Markets
But 64 Percent of Population Live in Markets More Affordable to Rent Than Buy; Least Affordable Rental Markets Led by Counties in Northern California, DC, Brooklyn; Most Affordable Rental Markets in Alabama, Illinois, Ohio, Tennessee IRVINE, Calif. – Jan. 11, 2018 — ATTOM Data Solutions, curator of the nation's largest multi-sourced property database, today released its 2018 Rental Affordability Report, which shows that buying a median-priced home is more affordable than renting a three-bedroom property in 240 of 447 U.S. counties analyzed for the report — 54 percent. The analysis incorporated recently released fair market rent data for 2018 from the U.S. Department of Housing and Urban Development, wage data from the Bureau of Labor Statistics along with public record sales deed data from ATTOM Data Solutions in 447 U.S. counties with sufficient home sales data (see full methodology below). "Although buying is still more affordable than renting in the majority of U.S. housing markets, that majority is shrinking as home price appreciation continues to outpace rental growth in most areas," said Daren Blomquist, vice president at ATTOM Data Solutions. "Renting has clearly become the lesser of two housing affordability evils in many major population centers, with renting more affordable than buying in 76 percent of counties that have a population of 1 million or more. And when broken down by population rather than number of markets, this data shows that the majority of the U.S. population — 64 percent — live in markets that are more affordable to rent than to buy." Renting more affordable than buying in nation's most populated counties Counter to the overall trend, renting is more affordable than buying a home in the nation's 14 most populated counties and in 30 of 39 counties with a population of 1 million or more (76 percent) — including Los Angeles County, California; Cook County (Chicago), Illinois; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; and San Diego County, California. Other markets with a population of more than 1 million where it is more affordable to rent than to buy a home included counties in Miami, New York City, Seattle, Las Vegas, San Jose, San Francisco and Boston. "The thing about this data that concerns me the most is that it is now more affordable to rent in the greater Seattle area than buy. Even with solid income growth, the rapid rise in home prices is keeping many would-be buyers out of ownership," said Matthew Gardner, chief economist with Windermere Real Estate, covering the Seattle market. "To make matters worse, rapid rental rate growth in the core King County market is forcing many renters to look farther out to find something they can afford. Seattle needs considerably more affordable housing for renters and home buyers alike. Unless something changes, the area will remain very expensive, pricing many buyers out of the market." Among the 39 U.S. counties analyzed in the report with a population of 1 million or more, the nine where it is more affordable to buy a home than rent were Tarrant County (Dallas), Texas; Broward County (Miami), Florida; Bexar County, (San Antonio) Texas; Wayne County (Detroit), Michigan; Philadelphia County, Pennsylvania; Hillsborough County (Tampa-St. Petersburg), Florida; Cuyahoga County (Cleveland), Ohio; Allegheny County (Pittsburgh), Pennsylvania; and Saint Louis County, Missouri. Least affordable rental markets in Northern California, DC, Brooklyn The report shows that renting a three-bedroom property requires an average of 38.8 percent of weekly wages across the 447 counties analyzed for the report. The least affordable markets for renting were Marin County, California (79.5 percent of average wages to rent); Spotsylvania County (Washington, D.C. area), Virginia (75.5 percent); Honolulu County, Hawaii (71.9 percent); Sonoma County (Santa Rosa area), California (67.6 percent); and Kings County, New York (67.4 percent). Most affordable rental markets in Alabama, Illinois, Ohio, Tennessee The most affordable markets for renting were Madison County (Huntsville), Alabama (22.3 percent of average wages to rent); Tazewell County (Peoria), Illinois (23.6 percent); Greene County (Dayton), Ohio (24.1 percent); Sullivan County (Kingsport-Bristol), Tennessee (24.2 percent); and Cuyahoga County (Cleveland), Ohio (24.8 percent). Rents rise faster than wages in 60 percent of markets Average fair market rents rose faster than average weekly wages in 266 of the 447 counties analyzed in the report (60 percent), including Los Angeles County, California; Cook County, Illinois; Harris County, Texas; Maricopa County, Arizona; and San Diego County, California. Average weekly wages rose faster than average fair market rents in 181 of the 447 counties analyzed in the report (40 percent), including King County (Seattle), Washington; Clark County (Las Vegas), Nevada; Bexar County (San Antonio), Texas; Middlesex County (Boston), Massachusetts; and Suffolk County (Long Island), New York. Home prices rising faster than rents in 59 percent of markets Median home prices rose faster than average fair market rents in 263 of the 447 counties analyzed in the report, including Los Angeles County, California; Cook County, Illinois; San Diego County, California; Orange County, California; and Miami-Dade County, Florida. Average fair market rents rose faster than median home prices in 184 of the 447 counties analyzed in the report (41 percent), including Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; Kings County (Brooklyn), New York; Queens County, New York; and Tarrant County, Texas in the Dallas metro area. Methodology For this report, ATTOM Data Solutions looked at 50th percentile average rental data for three-bedroom properties in 2018 from the U.S. Department of Housing and Urban Development, along with Q2 2017 average weekly wage data from the Bureau of Labor Statistics (most recent available) and Q4 2017 home price data from ATTOM Data Solutions publicly recorded sales deed data in 540 counties nationwide. Rental affordability is average fair market rent for a three-bedroom property as a percentage of the average monthly wage (based on average weekly wages). Home buying affordability is the monthly house payment for a median-priced home (based on a 3 percent down payment and including mortgage, property tax, homeowner's insurance and private mortgage insurance) as a percentage of the average monthly wage. About ATTOM Data Solutions ATTOM Data Solutions is the curator of the ATTOM Data Warehouse, a multi-sourced national property database that blends property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, health hazards, neighborhood characteristics and other property characteristic data for more than 150 million U.S. residential and commercial properties. The ATTOM Data Warehouse delivers actionable data to businesses, consumers, government agencies, universities, policymakers and the media in multiple ways, including bulk file licenses, APIs and customized reports.
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Redfin Identifies 25 Neighborhoods That "Have It All": Affordable Homes, Highly Rated Schools, an Easy Commute and Plenty of Inventory
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Redfin Ranks 2017's Most Competitive Neighborhoods for Homebuyers
Nineteen of the Top 25 Most Competitive Neighborhoods Were in the Seattle Area. The Rest Were in San Jose, Boston and Denver. SEATTLE--(Dec. 21, 2017) — The 2017 housing market was the most competitive for homebuyers since 2013, according to a new analysis from Redfin, the next-generation real estate brokerage. Just over half of all offers written by Redfin agents this year encountered competition. That's up from 49 percent in 2016, but below 2013's high of 65 percent. The pace at which homes went off the market made the competition more intense this year. Homes found buyers after a median 45 days on market, six days fewer than 2016. Home-Buying Competition 2014-2017 (Graphic: Business Wire) Forty-one percent of homes that were listed in 2017 were Redfin Hot Homes, a designation earned by homes with 7/10 or higher odds of going under contract within their first 14 days on the market, as determined by Redfin's proprietary algorithm. Grass Lawn in Redmond, Washington earned the distinction of most competitive neighborhood in 2017. Nineteen of the 25 most competitive neighborhoods of 2017 were in the Seattle metro area, where 67 percent of homes listed this year were Hot Homes--the highest share of any market--and 62 percent of offers written by Redfin agents faced bidding wars. Competition was strong across the Seattle market, both in more suburban neighborhoods like Grass Lawn and Crossroads (#3) and more urban neighborhoods like Lower Queen Anne (#13). Several neighborhoods in North Seattle made the ranking, including Pinehurst (#2), Victory Heights (#10) and Licton Springs (#11). In Grass Lawn, 73 percent of homes sold for over asking price and the typical home found a buyer in just six days. The average sale-to-list price ratio was 108.4 percent, an indication that many homes were bid up well-above asking price. "Grass Lawn is so super-competitive because it's very close to the Microsoft campus, and Google is also expanding its footprint in the area. It is a suburban area with mostly older homes," said Redfin Agent Gina Madeya. "The area offers easy access to one of only two freeways that can get you across Lake Washington and into downtown Seattle and it's also a short drive from the shops and restaurants in downtown Redmond and Kirkland." Madeya helped a family purchase a home in Grass Lawn earlier this year. The home, which she says came on the market slightly underpriced at $860,000, was bid up to over $1 million. Her clients were absolutely in love with the home. Their offer wasn't the highest, but they won over the sellers by waiving all contingencies, working with a reputable lender and providing a $100,000 earnest money deposit. "This sounds extreme, but that's what it takes in some neighborhoods because demand is so high for so few homes," says Madeya. "My advice to a Seattle buyer is to get really clear about your full financial capability and your risk tolerance. Find out what you can truly afford and start looking at homes well below that amount, so that when that bidding war inevitably happens, you have some leverage to work with. Get clear early in the search so you and your agent can be more deliberate and strategic." Bidding war strategies often come with risks for the buyer, and Redfin recommends homebuyers speak to an agent to determine the appropriate strategy. A complete methodology and additional insights on 2017 competition, including rankings of major metro areas according to bidding war and Hot Homes frequency, are available here. About Redfin Redfin is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $50 billion in home sales.
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Depleted Housing Market to See Inventory Growth in 2018
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Seriously Underwater U.S. Properties Decrease by 1.4 Million From a Year Ago in Q3 2017
Biggest Year-over-Year Drop in Number of Seriously Underwater Since Q2 2015; Share of Equity Rich Properties Increases to New High of 26 Percent IRVINE, Calif. — Nov. 16, 2017 — ATTOM Data Solutions, curator of the nation's largest multi-sourced property database, today released its Q3 2017 U.S. Home Equity & Underwater Report, which shows that at the end of the third quarter of 2017 there were 4.6 million (4,628,408) U.S. properties that were seriously underwater (where the combined loan amount secured by the property was at least 25 percent higher than the property's estimated market value), down by more than 800,000 properties from the previous quarter and down by more than 1.4 million properties from Q3 2016 — the biggest year-over-year drop since Q2 2015. The 4.6 million seriously underwater properties at the end of Q3 2017 represented 8.7 percent of all U.S. properties with a mortgage, down from 9.5 percent in the previous quarter and down from 10.8 percent in Q3 2016. "Accelerating home price appreciation this year is increasing the velocity at which seriously underwater homeowners are recovering home equity lost during the Great Recession," said Daren Blomquist, senior vice president at ATTOM Data Solutions. "Median home prices nationwide are up 9.4 percent so far in 2017, the fastest pace of appreciation through the first three quarters of a year since 2013. Continued home price appreciation is also helping to grow the number of equity rich homeowners across the country compared to a year ago." 26 percent of U.S. properties were equity rich in Q3 2017 There were more than 14 million (14,030,394) U.S. properties that were equity rich — where the combined loan amount secured by the property was 50 percent or less of the estimated market value of the property — down slightly from the previous quarter but still up by 905,000 compared to a year ago. The 14 million equity rich U.S. properties represented 26.4 percent of all U.S. properties with a mortgage, up from 24.6 percent in the previous quarter and up from 23.4 percent in Q3 2016. Highest share of equity rich properties in Hawaii, California, New York, Oregon, Washington States with the highest share of equity rich properties were Hawaii (41.9 percent); California (41.4 percent); New York (35.7 percent); Oregon (34.0 percent) and Washington (33.6 percent). Among 93 metropolitan statistical areas with a population of 500,000 or more, those with the highest share of equity rich properties were San Jose, California (61.0 percent); San Francisco, California (56.4 percent); Los Angeles, California (45.3 percent); Honolulu, Hawaii (43.9 percent); and Oxnard-Thousand Oaks-Ventura, California (38.7 percent). "The number of Seattle homeowners who are considered "seriously underwater" continues to drop and is now at an all-time low of 3%," said Matthew Gardner, chief economist at Windermere Real Estate, covering the Seattle market. "Thanks to the strong appreciation of home prices in our area, I expect to see this number drop even further as we move into 2018. At the same time, the percentage of "equity rich" homeowners in Seattle continues to rise, reporting a remarkable 103% increase since the end of 2013." Other metros where at least 35 percent of properties were equity rich at the end of Q3 2017 were Seattle, Washington (38.7 percent); San Diego, California (38.3 percent); Portland, Oregon (36.7 percent); Austin, Texas (35.8 percent); and Stockton, California (35.2 percent). Highest share of seriously underwater properties in Baton Rouge, Scranton, Youngstown States with the highest share of seriously underwater properties were Louisiana (19.2 percent); Iowa (14.2 percent); Pennsylvania (14.0 percent); Mississippi (13.8 percent); and Alabama (13.7 percent). Among 93 metropolitan statistical areas with a population of 500,000 or more, those with the highest share of seriously underwater properties were Baton Rouge, Louisiana (20.5 percent); Scranton, Pennsylvania (19.5 percent); Youngstown, Ohio (18.2 percent); New Orleans, Louisiana (17.4 percent); and Dayton, Ohio (16.4 percent). About ATTOM Data Solutions ATTOM Data Solutions is the curator of the ATTOM Data Warehouse, a multi-sourced national property database that blends property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, health hazards, neighborhood characteristics and other property characteristic data for more than 150 million U.S. residential and commercial properties. The ATTOM Data Warehouse delivers actionable data to businesses, consumers, government agencies, universities, policymakers and the media in multiple ways, including bulk file licenses, APIs and customized reports.
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CoreLogic Reports Mortgage Delinquency Rates Lowest in More Than a Decade
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[NAR Infographic] The Anatomy of a First-time Buyer in 2017
WASHINGTON, Nov. 14, 2017 -- Prospective first-time buyers in recent years have had to navigate several obstacles on their path to homeownership, including higher rents and home prices, tight inventory conditions and repaying student loan debt. These impediments are a big reason why first-timers were only 34 percent of all transactions in the National Association of Realtors®' 2017 Profile of Home Buyers and Sellers, which is far below the long-term historical average of 39 percent since the survey debuted in 1981. Amidst these ongoing supply and affordability challenges, here is the typical makeup of a successful first-time buyer: Age – 32 years old Household income – $75,000 Cost of home purchased – $190,000 Down payment amount – 5 percent Student loan debt – $29,000 Type and location of home purchased – Single-family home in a suburban area The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1.3 million members involved in all aspects of the residential and commercial real estate industries.
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First-time Buyers Stifled by Low Supply, Affordability: 2017 Buyer and Seller Survey
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Home Affordability Improves in 60 Percent of U.S. Markets in Q3 2017 Compared to Previous Quarter
Affordability Still Worsens From a Year Ago in 79 Percent of Local Markets; Wage Growth Outpaces Home Price Growth in 48 Percent of Markets Over Past Year; U.S. Home Prices Up 73 Percent, Wages Up 13 Percent Since Q1 2012 IRVINE, Calif. – Oct. 5, 2017 — ATTOM Data Solutions, curator of the nation's largest multi-sourced property database, today released its Q3 2017 U.S. Home Affordability Index, which shows that home affordability in the third quarter improved compared to the previous quarter in 60 percent of 406 U.S. counties analyzed in the report — although affordability was still worse off than a year ago in 79 percent of those counties. The Q3 2017 home affordability index increased compared to the previous quarter (meaning homes were more affordable) in 243 of the 406 counties analyzed in the report (60 percent), including Los Angeles County, California; Cook County (Chicago), Illinois; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; and San Diego County, California. The Q3 2017 home affordability index decreased compared to the previous quarter (meaning homes were less affordable) in 163 (40 percent) of the 406 counties analyzed in the report, including Wayne County (Detroit), Michigan; Middlesex County (Boston), Massachusetts; along with three counties in the New York metro area: Suffolk, Bronx and Westchester. The national home affordability index was 100 in the third quarter of 2017, the lowest national affordability index since Q3 2008, when the index was 86. An index of 100 means the share of average wages needed to buy a median-priced home nationwide in Q3 2017 is on par with historic averages (see full methodology below). "Falling interest rates in the third quarter provided enough of a cushion to counteract rising home prices in most U.S. markets and provide at least some temporary relief for the home affordability crunch," said Daren Blomquist, senior vice president at ATTOM Data Solutions. "More sustainable relief for the affordability crunch, however, will need to be some combination of slowing home price appreciation and accelerating wage growth. Wage growth is outpacing home price growth in about half of all local markets so far this year, an indication that a more sustainable affordability pattern is taking shape in more local markets." Wage growth outpacing home price growth in 48 percent of markets Annual wage growth outpaced annual home price appreciation in 193 of the 406 counties analyzed in the third quarter (48 percent), down from 216 counties (53 percent) in Q2 2017 and down from 205 counties (50 percent) in Q1 2017 — the first time since Q1 2012 that at least half of all markets saw wage growth outpacing home price growth. Counties where wage growth outpaced home price growth in Q3 2017 included Cook County (Chicago), Illinois; Maricopa County (Phoenix), Arizona; Orange County, California; San Bernardino County, California; and Bexar County (San Antonio), Texas. "With Southern California boasting some of the highest average sales prices in the country, our market is a testament to the importance of local community job growth," said Michael Mahon, president at First Team Real Estate, covering Southern California. "Los Angeles County is experiencing a sluggish job creation environment, creating an even wider gap in housing affordability. But in Orange County, where we are seeing local government partnering with business owners on growth incentives and business owner recruitment, we continue to see an economic environment where wage growth is exceeding the annual cost of housing inflation." Since bottoming out nationwide in Q1 2012, median home prices have risen 73 percent while average weekly wages have increased 13 percent over the same period. Counties where home price growth in Q3 2017 outpaced annual wage growth included Los Angeles County, California; Harris County (Houston), Texas; San Diego County, California; Miami-Dade County, Florida; and Kings County (Brooklyn), New York. "Housing affordability continues to be the topic that troubles me more than just about anything else. As the data shows, housing in the Seattle region is considered unaffordable, which is not a great surprise given our robust economy and substantial population growth coming out of California," said Matthew Gardner, chief economist at Windermere Real Estate, covering the Seattle market, where home price appreciation outpaced wage growth in all three counties in the metro area. "The short-term prognosis is not great. Housing starts remain well below the long-term average, and we are not seeing the level of resale home sales that one would normally expect. These factors will cause home prices to keep trending higher and, as long as the economy remains strong, demand will continue to exceed supply." Home prices less affordable than historic averages in 45 percent of markets Home prices were less affordable than their historic affordability averages in 184 out of 406 of the counties analyzed for the index (45 percent), down from 49 percent in the previous quarter but still up from 21 percent a year ago. Counties with the lowest affordability index in Q3 2017 (meaning home prices were least affordable relative to local historic averages) were Lackawanna County (Scranton), Pennsylvania (72); Genesee County (Flint), Michigan (76); Comal County (San Antonio), Texas (77); Brazoria County (Houston), Texas (77); and Parker County (Dallas), Texas (78). Among counties with at least a half-million people, those with the lowest affordability index in Q3 2017 were Montgomery County (Houston), Texas (79); Denver County, Colorado (81); Collin County (Dallas), Texas (82); Travis County (Austin), Texas (83); Wayne County (Detroit), Michigan (83); and Davidson County (Nashville), Tennessee (84). "Home prices are still increasing in Ohio, primarily due to shortage of inventory coupled with high demand, especially among first time homebuyers — mainly due to an increase in employment within the state," said Matthew Watercutter, senior regional vice president and broker of record for HER Realtors, covering the Dayton, Columbus and Cincinnati markets in Ohio, where 16 out 22 counties analyzed (73 percent) were less affordable than historic averages. "Even though the values are increasing, Ohio remains one of the most affordable states in which to live." Buying a home requires highest share of wages in Brooklyn and Bay Area Nationwide, buying a median-priced home in the third quarter of 2017 required 29.5 percent of average wages, on par with the historic average of 29.6 percent. Buying a median-priced home required the highest percentage of average wages in Kings County (Brooklyn), New York (125.8 percent), followed by Marin County (San Francisco), California (104.7 percent); Santa Cruz County, California (101.6 percent); Westchester County, New York (91.0 percent); and New York County (Manhattan), New York (90.8 percent). Buying a median-priced home required the lowest percentage of average wages in Clayton County (Atlanta), Georgia (12.0 percent); Bibb County (Macon), Georgia (12.5 percent); Wayne County (Detroit), Michigan (14.5 percent); Rock Island County, Illinois (14.8 percent); and Allen County (Lima), Ohio (15.0 percent). About ATTOM Data SolutionsATTOM Data Solutions is the curator of the ATTOM Data Warehouse, a multi-sourced national property database that blends property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, health hazards, neighborhood characteristics and other property characteristic data for more than 150 million U.S. residential and commercial properties. The ATTOM Data Warehouse delivers actionable data to businesses, consumers, government agencies, universities, policymakers and the media in multiple ways, including bulk file licenses, APIs and customized reports.
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Realtor.com and Yelp Name the Hottest Hipster Markets in America
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Redfin Names 15 Colleges Where Students Should Buy Real Estate Instead of Rent Dorms
In Addition to Saving Monthly, Students Who Buy Can Build Equity While Earning Their Degrees SEATTLE — At 47 public U.S. colleges, it's more cost effective for a student to buy a condo than rent a dorm room on campus, according to Redfin, the next-generation real estate brokerage. Dorm rooms in the U.S. range in cost from $232 to $1,817 per month, with a median monthly rate of $705. To find out where students could save on housing costs, Redfin compared the monthly dorm rate at 195 U.S. public colleges with the median monthly mortgage on a condo in each of those cities. The top 15 list was ordered by enrollment to show the most popular schools first. Coming in at number one on the list is The University of Arizona in Tucson, which Redfin real estate agent Misty Hurley says isn't surprising. "I've had lots of parents contact me after comparing the cost of renting versus buying a home for their college student," she said. "They're often coming from places like Washington D.C., Los Angeles or Seattle, where home prices are much higher. The median sale price in Tucson is $195,000, so well below the national median sale price of $293,000 that Redfin reported in August." Rounding out the top five list were Georgia State University, the University of South Carolina, Kent State University and Louisiana State University, all of which are in cities with median home prices below the national average. In addition to saving on monthly housing costs in these cities, there are other perks to purchasing real estate. "Homeownership can be a great way to build wealth," said Hurley. "Students will build equity that they can one day use as a downpayment on a move-up home or to pay off student loans. If they choose not to sell right away, they'll have a piece of property that's ripe for renting, as there are always new college students looking for rentals." Read the full report here. About Redfin Redfin is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $50 billion in home sales.
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Outlook Remains Bright for Commercial Real Estate Despite Price Plateau
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[Infographic] The Road to the Big Game: Where 52 Shows Up in Real Estate
WASHINGTON, Sept. 7, 2017 -- Football fans around the country will be gathering in front of a TV this week to catch their favorite team in action for the first time this season. To celebrate the start of the journey to the 52nd championship game in February, the National Association of Realtors® is throwing an accurate spiral of recent real estate facts with the number 52: 52 is the median age of repeat buyers 52 percent of renters think it's a good time to buy a home 52 percent of foreign buyers purchased a home in the suburbs 52 percent of buyers said most difficult step was finding the right property 52 percent of millennials found their real estate agent through a referral The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing more than 1.2 million members involved in all aspects of the residential and commercial real estate industries.
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Redfin Predicts the Hottest Neighborhoods to Close Out 2017
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Redfin Migration Report: Home Affordability Continued to Shape Migration Currents as Homebuyers Looked to Leave Expensive Coastal Cities in the Second Quarter
The Bay Area, New York and Los Angeles ranked highest for net outflow of home searchers SEATTLE — Twenty-one percent of Redfin.com users in the second quarter of 2017 searched mostly for homes outside the metro where they reside, slightly up from 20 percent in the first quarter, according to the latest migration report from Redfin, the next-generation real estate brokerage. The Redfin Migration Report analyzed a sample of more than one million Redfin.com users searching for homes across 75 metro areas during the peak of the homebuying season from April through June. Redfin used IP addresses to identify the metros where home searchers likely reside and compared that to where users were searching for homes. While 79 percent of Redfin.com home searchers looked to stay in their current metro, several key trends emerged among those looking to move to another metro: There continued to be significant migration within the state of California, with the most common search patterns being buyers looked to leave the Bay Area and Los Angeles, heading to Sacramento and San Diego. Several Rust Belt metros saw more than a quarter of local homebuyers looking at homes outside their metro with Chicago being the top destination. Metros in the South and the Sunbelt remained popular destinations for migrants from expensive coastal cities. Chicago, Boston and Seattle again had the highest share of residents looking to stay in their current metros. "Home searches are early indicators of home sales. The migration patterns in our report closely correlate to actual purchases made by Redfin home-buying customers within and across metros," said Taylor Marr, a Redfin data scientist who conducted the underlying research. "Buyers who can't afford a home in their current city are exploring what is available elsewhere," said Marr. "We are already seeing strong buyer demand and competition in mid-tier cities like Sacramento, Phoenix and Atlanta. As home searches evolve into purchase offers and home sales, we anticipate prices and competition will continue to grow in those markets."     To read the full report, complete with an interactive data map of metro-to-metro migration trends and full methodology, click here. About Redfin Redfin is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $50 billion in home sales.
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Realtor.com® Survey Provides Insight into Underlying Causes of Inventory Shortage
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Pending Home Sales Recover in June, Grow 1.5 Percent
WASHINGTON (July 31, 2017) — After declining for three straight months, pending home sales reversed course in June as all major regions, except for the Midwest, saw an increase in contract activity, according to the National Association of Realtors®. The Pending Home Sales Index, a forward-looking indicator based on contract signings, climbed 1.5 percent to 110.2 in June from an upwardly revised 108.6 in May. At 0.5 percent, the index last month increased annually for the first time since March. Lawrence Yun, NAR chief economist, says the bounce back in pending sales in most of the country in June is a welcoming sign. "The first half of 2017 ended with a nearly identical number of contract signings as one year ago, even as the economy added 2.2 million net new jobs," he said. "Market conditions in many areas continue to be fast paced, with few properties to choose from, which is forcing buyers to act almost immediately on an available home that fits their criteria." Added Yun, "Low supply is an ongoing issue holding back activity. Housing inventory declined last month and is a staggering 7.1 percent lower than a year ago." Yun does note that there could potentially be a sliver of increased hope in the months ahead for prospective first-time buyers, who continue to struggle reaching the market1. Sales to investors last month were the lowest of the year (13 percent), which helped push all cash transactions to 18 percent – the smallest share since June 2009 (13 percent). "It appears the ongoing run-up in price growth in many areas and less homes for sale at bargain prices are forcing some investors to step away from the market," said Yun. "Fewer investors paying in cash is good news as it could mean a little less competition for the homes first-time buyers can afford. However, the home search will still likely be a strenuous undertaking in coming months because supply shortages in most areas are most severe at the lower end of the market." Heading into the second half of the year, Yun expects existing-home sales to finish around 5.56 million, which is an increase of 2.6 percent from 2016 (5.45 million). The national median existing-home price this year is expected to increase around 5 percent. In 2016, existing sales increased 3.8 percent and prices rose 5.1 percent. The PHSI in the Northeast inched forward 0.7 percent to 98.0 in June, and is now 2.9 percent above a year ago. In the Midwest the index decreased 0.5 percent to 104.0 in June, and is now 3.4 percent lower than June 2016. Pending home sales in the South rose 2.1 percent to an index of 126.0 in June and are now 2.6 percent above last June. The index in the West grew 2.9 percent in June to 101.5, but is still 1.1 percent below a year ago. The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
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Realtor.com® Names the Top 10 Affordable Towns with the Best Elementary Schools
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Realtor.com® Appoints Danielle Hale as Chief Economist
SANTA CLARA, Calif., July 25, 2017 -- Realtor.com®, a leading online real estate destination operated by News Corp subsidiary Move, Inc., today announced the appointment of veteran housing economist Danielle Hale as its chief economist. "We are incredibly proud to welcome Danielle to the realtor.com® family," said Nate Johnson, chief marketing officer for realtor.com®. "Danielle's in-depth housing market knowledge and research experience will help us hone and grow our research capabilities so we can leverage realtor.com®'s vast housing database to provide even more insights to homebuyers, sellers and dreamers, and professionals." As chief economist, Hale is responsible for developing and translating real estate trend data into consumer and industry insights. She also is tasked with leading a team of the industry's best analysts and economists with the goal of providing deeper and broader housing insights to people throughout the home journey. "Realtor.com®'s economics and research operation has emerged as a leading resource for valuable, actionable, and reliable housing market information," said Hale. "I look forward to working with the tremendously talented team to provide consumers and industry professionals with the tools and expertise they need to navigate the real estate world during this period of unprecedented competition and demand." Hale joins realtor.com® after nearly a decade as an economist and policy researcher at the National Association of REALTORS®. As managing director of housing research, Hale oversaw the production of closely followed housing market data, including NAR's monthly pending and existing home sales indices and quarterly home price reports. Hale previously served as manager of tax policy research, leading research projects on topics including how federal, state and local policies impact the real estate market. "Danielle possesses a rare talent for applying rigorous statistical analysis in all her work along with the ability to communicate the results to everyday people," said Lawrence Yun, chief economist for the National Association of REALTORS®. "She will be a valuable asset to realtor.com® and for consumers." Before joining the National Association of REALTORS® as an economist in 2008, Hale spent three years at the American Enterprise Institute, where she produced research and managed its executive office's communications. Her work during that time included research contributions to Dr. Allan Meltzer's A History of the Federal Reserve, Volume II (University of Chicago Press, 2010). Hale earned a bachelor's degree in International Affairs and Economics and a master's degree in Applied Economics from Florida State University. To read a Home Made post featuring a Q&A with Danielle Hale, click here. About realtor.com® Realtor.com® is the trusted resource for home buyers, sellers and dreamers, offering the most comprehensive source of for-sale properties, among competing national sites, and the information, tools and professional expertise to help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today helps make all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [NASDAQ: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.
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Foreign U.S. Home Sales Dollar Volume Surges 49 Percent to Record $153 Billion
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84 Percent of Americans See Homeownership as Good Investment, Affordability a Growing Concern
WASHINGTON (July 12, 2017) — According to the National Association of Realtors®' 2017 National Housing Pulse Survey, concerns over housing affordability show clear demographic divides especially among unmarried and non-white Americans. More than five out of 10 unmarried and non-white Americans view the lack of available affordable housing as a big problem, compared to only 40 percent of married and white Americans. The survey, measures consumers' attitudes and concerns about housing issues in the nation's 25 largest metropolitan statistical areas and found that 84 percent of Americans now believe that purchasing a home is a good financial decision - the highest number since 2007. Yet six in 10 said that they are concerned about affordability and the rising cost of buying a home or renting in their area. Housing affordability was ranked fourth in the top-five issues Americans face in their area behind the lack of affordable health care; low wages and debt making it hard to save; and heroin and opioid drug abuse, and ahead of job layoffs and employment. Nationally, 44 percent of respondents categorized the lack of available affordable housing as a very big or fairly big problem. In the top 25 densest markets, more than half see the lack of affordable housing as a big problem, an increase of 11 percentage points from the 2015 National Housing Pulse Survey. Low-income Americans, renters and young women most acutely feel the housing pinch. There is also greater concern about affordable housing among the working class (65 percent) than for public servants such as teachers, firefighters or police (55 percent). "Despite the growing concern over affordable housing, this survey makes it clear that a strong majority still believe in homeownership and aspire to own a home of their own. Building equity, wanting a stable and safe environment, and having the freedom to choose their neighborhood remain the top reasons to own a home," says NAR president William E. Brown, a second-generation Realtor® from Alamo, California and founder of Investment Properties. Eight out of 10 believe that the most important financial reason to own a home is that the money spent on housing goes towards building equity rather than to a property owner. Paying off a mortgage and owning a home by the time you retire is the next most important financial reason for buying a home followed by ownership being a good investment opportunity to build long-term wealth and increase net worth. When asked about the amount of down payment needed for a mortgage, four in 10 respondents believe that a down payment of 15 percent or more is necessary. Seventy percent feel that a reasonable down payment should be 10 percent or less, according to the survey. Misperceptions about higher down payment requirements were most prevalent in bigger cities and by older adults. Apparent confusion about down payment requirements most likely added to non-owners concerns about affordability. NAR's Profile of Home Buyers and Sellers found that the median down payment for first-time buyers has been 6 percent for three straight years and 14 percent for repeat buyers in three of the past four years. Over 50 percent of respondents strongly agree that homeownership helps build safe and secure neighborhoods and provides a stable and safe environment for children and family members. The survey also found that four in 10 Americans say paying their rent or mortgage is a strain on their budget. Those most likely to say their mortgage is a strain have incomes under $60,000, are residents of New York City or the Pacific coast, are under the age of 50 and non-white. Just over half, 51 percent, of respondents said they were willing to strain their budget for a better living environment and would pick a neighborhood with better schools and job opportunities even if housing prices are a bigger strain on their budget. Those most willing to strain their budget are disproportionately married, upper income and living in the suburbs. Overspending on homes is more prevalent in Northeastern cities (36 percent), the Mountain West (34 percent) and the Pacific coast (33 percent). The 2017 National Housing Pulse Survey is conducted by American Strategies and Myers Research & Strategic Services for NAR's Housing Opportunity Program, which aims to position, educate and help Realtors® promote housing opportunities in their community, in both the rental and homeownership sectors of the market. The telephone survey polled 1,500 adults nationwide and has a margin of error of plus or minus 2.5 percentage points. The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
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Survey: 1 in 3 Recent Homebuyers Made an Offer Sight-Unseen, Up From Nearly 1 in 5 a Year Ago
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NAR Midyear Forecast: Existing-Home Sales Poised to Climb 3.5 Percent in 2017
  WASHINGTON (May 18, 2017) – The multi-year stretch of robust job gains along with improving household confidence are expected to guide existing-home sales to a decade high in 2017, but supply and affordability headwinds and modest economic growth are holding back sales and threatening to keep the nation's low homeownership rate subdued. That's according to speakers at a residential real estate forum here at the 2017 REALTORS® Legislative Meetings & Trade Expo. Lawrence Yun, chief economist of the National Association of Realtors®, presented his 2017 midyear forecast and was joined onstage by Jonathan Spader, senior research associate at the Joint Center for Housing Studies at Harvard University, and Mark Calabria, chief economist and assistant to Vice President Mike Pence. Spader's presentation addressed past and projected movements in the homeownership rate, and Calabria dove into why reversing weak productivity and the low labor force participation rate are necessary to boost the economy. The first quarter was the best quarterly existing sales pace in exactly a decade (5.62 million), and Yun expects activity to stay on track and finish around 5.64 million – the best since 2006 (6.47 million) and 3.5 percent above 2016. With several metro areas seeing hefty price growth, the national median existing-home price is expected to rise around 5 percent this year. "The housing market has exceeded expectations ever since the election, despite depressed inventory and higher mortgage rates," said Yun. "The combination of the stock market being at record highs, 16 million new jobs created since 2010, pent-up household formation and rising consumer confidence are giving more households the assurance and ability to purchase a home." Although sales are currently running at a decade high, Yun believes the healthy labor market should be generating even more activity. However, listings in the lower- and mid-market price range are scant and selling fast, and homebuyers are discovering they can afford less of what's on the market based on their income. "We have been under the 50-year average of single-family housing starts for 10 years now," said Yun. "Limited lots, labor shortages, tight construction lending and higher lumber costs are impeding the building industry's ability to produce more single-family homes. There's little doubt first-time buyer participation would improve and the homeownership rate would rise if there was simply more inventory." Housing construction has been uneven so far this year, but Yun does anticipate starts to jump 8.4 percent to 1.27 million. However, this is still under the 1.5 million new homes needed to make up for the insufficient building in recent years. New single-family home sales are likely to total 620,000 this year, up 8.4 percent from 2016. Addressing the nation's low homeownership rate, Spader said substantial uncertainty exists about its future direction. He cited foreclosure-related housing exits from older adults and delayed buying from younger households as the primary causes in the downward trend since the downturn. He said the good news is that while there was growth in homeowner households in 2016, an aging population, changes in family type and increasing diversity by race and ethnicity all pose as headwinds going forward. Spader's 2025 projection puts the homeownership rate in a range of 61.0 – to – 65.1 percent. "Stagnant household incomes, rising rental costs, student loan debt and limited supply have all contributed to slower purchasing activity," said Spader. "When the homeownership rate stabilizes, there will be an increase in homeowner households. Young and minority households' ability to reach the market will play a big role in how much the actual rate can rise in coming years." Calabria's presentation focused on his thoughts of what can be done to jump-start economic growth. He attributed prolonged weak productivity and the low labor participation rate as the primary reasons why the current economic expansion is the slowest since World War II. "A strong labor market will drive a strong housing market, but you can't have a strong housing market without a strong economic foundation," said Calabria. "The recovery has been uneven with roughly 70 counties making up roughly half of all job growth. The White House's proposed plans to cut corporate and individual tax cuts will help large and small businesses grow, hire and ultimately contribute to more households buying homes as more money goes into their pockets." Although Yun said economic growth in the first quarter was "a huge disappointment" at 0.7 percent (first estimate), he anticipates that an increase in consumer spending and more homebuilding should provide enough fuel for gross domestic product to finish slightly higher, at 2.2 percent, than a year ago (1.6 percent). Yun believes the rising interest rate environment is here to stay as the Federal Reserve slowly begins unwinding its balance sheet. He foresees two more short-term rate hikes by the end of this year and for mortgage rates to average around 4.30 percent before gradually climbing towards 5.0 percent by the end of 2018. "There was a lot of uncertainty at the start of the year, but a very strong first quarter sets the stage for a modest sales increase compared to last year," said Yun. "However, prices are still rising too fast in many areas and are outpacing incomes. That is why housing starts need to rise to alleviate supply shortages. There will be more sales if there's a meaningful bump in new and existing inventory." Members of the media are invited to attend the upcoming Sustainable Homeownership Conference on June 9 at University of California's Memorial Stadium in Berkeley. In celebration of Homeownership Month, the conference brings together experts to examine housing trends and real estate's positive impacts. 2017 NAR President Bill Brown, NAR Chief Economist Dr. Lawrence Yun and Berkeley Hass Real Estate Group Chair Ken Rosen are among the prominent experts scheduled to speak. To register, click here. The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
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