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Real estate agent survey reveals how home builders can increase sales
Dallas area agents want the same access to new homes they have for existing homes DALLAS, TX - September 2, 2020 -- A new study shows real estate agents would sell more new homes if they were as easy to show as other homes listed for sale. HomesUSA.com, America's number one brokerage for new home sales, polled more than 4,000 agents who sold both new and resale homes in the Dallas-Ft. Worth area. A vast majority (86 percent) of agents responding said they would sell more new homes if they could show them outside of regular builder hours. The survey also found that two digital real estate tools widely used to expedite showings by agents of existing homes are needed to increase agent sales of new homes. Three-in-four agents (74 percent) said if builders provided electronic key boxes and an online scheduling service, they would sell more new homes. HomesUSA.com CEO Ben Caballero is a current Guinness World Record title holder who set a new record for home sales in Dallas-Ft. Worth last year. He says builders are missing a massive opportunity by not offering agents easier access. "Real estate agents are nearly unanimous in what builder can do to help them sell new more homes. Agents need more flexibility scheduling and showing new homes," said Caballero. Agents pay additional fees to use these digital products, as these showing technologies enable them to be more productive. However, builders do not use these digital services with their new home offerings. This puts an unnecessary obstacle that discourages agents from showing new homes, the survey found. "The first rule of selling is to make buying easy," Caballero, who has sold more new homes than any other real estate agent in history, said. "Every impediment an agent encounters in showing a home reduces the foot traffic in that home. Unfortunately, some builders tell me that they would rather lose a sale than lose control of access to their homes." Caballero notes that it wasn't too long ago when as buyer's agent had to call the listing agent to schedule showings and then pick up a key from them. Today, these outdated practices have been replaced by technology that is used universally in real estate, except for home builders. Online showing services can allow agents to schedule showings before or after builder hours and at times builders typically make homes available to buyers. HomesUSA.com's Caballero, says that based on his experience working with 60+ builder clients throughout Texas, most builders choose the wrong agent incentives. "Builders spend a tremendous amount of money on bonuses, trips, and other perks to encourage agents to sell their homes," Caballero said. "Most overlook a simple, easy, and inexpensive way to motivate agents to sell their homes. Builders can save a lot of money by allowing agents the same flexibility they have when selling existing homes." The survey found that 91 percent of agents agreed that "a scheduling service is the best way to schedule showings." Nearly nine out of ten (89 percent) agreed that "electronic boxes are the most convenient way to access homes." "It's common for builders to offer a financial incentive – a bonus – to a real estate agent for selling a new home. But the survey shows that access to a new home is far more important to an agent than a bonus," Caballero added. Over half of agents surveyed say they are not strongly influenced by a bonus to show a home. "Bonuses are expensive. It's much less expensive for a builder to allow agent to use keyboxes and online scheduling services that agents are accustomed to using," he added. About Ben Caballero and HomesUSA.com® Ben Caballero, founder and CEO of HomesUSA.com, holds the current Guinness World Record title for "Most annual home sale transactions through MLS by an individual sell side real estate agent." Ranked by REAL Trends as America's top real estate agent for home sales since 2013, Ben is the most productive real estate agent in U.S. history. He is the only agent to exceed $1 billion in residential sales transactions in a single year, a feat first achieved in 2015 and repeated each year through 2018 when he achieved more than $2 billion. An award-winning innovator and technology pioneer, Ben works with more than 60 home builders in Dallas-Fort Worth, Houston, Austin, and San Antonio. His podcast series is available on iTunes and Google Play. An infographic illustrating Ben's sales production is here. Learn more at HomesUSA.com |Twitter: @bcaballero - @HomesUSA | Facebook: /HomesUSAdotcom.
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COVID-19 Impacts Homebuyer Preferences But Not Budgets: Homes.com Survey
Over 40% Seek Different Features, 80% Have Same or Increased Price Range Norfolk, VA (July 29, 2020) -- The COVID-19 pandemic has changed many of the features desired by U.S. homebuyers and increased the dependence on virtual tours; however, it has had little impact on homebuying budgets, according to a Homes.com survey of over 1,000 consumers who have purchased a home during the coronavirus outbreak or plan to purchase before the end of the year. Fully 80% of survey respondents reported that their homebuying budgets had either remained the same or increased since the start of the pandemic, indicating that consumers remain committed to investing in homeownership despite possible anxiety over the challenging economic conditions caused by the pandemic. Overall, 35- to 44-year-olds were the most likely to report a decrease in their budgets, but the impact varied by geography. Most of the respondents who did lower their price targets in the Western states were Generation Z (18-24) buyers, while those in the Northeast were in the Millennial and Generation X age range (24-44). The survey also found that: Over 40% of respondents have changed the features they want in a home because of COVID-19, including adding a home office (30%), larger square footage (27%), enclosed backyard (27%) and/or closed floor plan (15%) to their wish list. These shifts may reflect the realities of today's work-from-home and e-learning needs. Over half of respondents planning to purchase a home before the end of the year have used virtual tours in their search, with roughly one-third having viewed 1-3 homes and one-fourth viewing 11+ homes through virtual tools. One-third of those who have purchased in the last four months utilized these live video tours or virtual open houses. More people indicated they were moving because they wanted a less populated area (16%) than moving for a job (14%), retirement (11%), or wanting a better school system for their children (8%). The most common reason for moving was the need to upsize for a growing family (25%). 37% of respondents have purchased in the last four months and 44% plan to purchase before the end of the year, demonstrating that homeownership remains a strong imperative even during the pandemic. 33% of those who have purchased or plan to purchase a home are aged 18-34, supporting earlier Homes.com surveys indicating that Gen Z is highly committed to early homeownership. Overall, the largest number of buyers or potential buyers (40%) are located in the South, with the rest split between the Midwest (25%), West (22%) and Northeast (13%). 51% are looking for existing single-family detached homes, followed by new construction single-family detached (20%), condominium (14%) and townhouse (11%). "The pandemic has changed what 'home' means for many families and how they search for them," said Homes.com president David Mele. "Even in the midst of those changes, our survey confirms that consumer commitment to homeownership remains the same." More information about the Homes.com 2020 Consumer Homebuyer survey can be found at https://go.homes/COVID19Buyers About Homes.com Homes.com offers today's demanding homebuyers, renters, and those somewhere in between a simply smarter home search with a more personalized and conversational way to find 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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W+R Studios announces results of inaugural '2020 Survey of Best Practices for CMAs and Listing Presentations'
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Sixty-Five Percent of Those Who Attended an Open House Within the Last Year Would Do So Now Without Hesitation
WASHINGTON (June 1, 2020) -- A majority of people -- 65% -- who attended an open house within the last year would do so now without hesitation, according to survey data released by the National Association of Realtors®. The series of surveys, which explored how home buyers and sellers want to safely handle home sales transactions during the coronavirus pandemic, were conducted by the research firm Engagious for NAR as the association kicks off National Homeownership Month. "The real estate industry – and our country – has endured some very challenging times for several months, but we're seeing signs of progress and we are earnestly hoping the worst is behind us," said NAR President Vince Malta, broker at Malta & Co., Inc., in San Francisco, CA. "While we celebrate Homeownership month, we embrace today's version of homeownership and the unique paths homeowners take to realize their dream. For prospective buyers, the desire to own a home remains strong and the guidance, expertise and professionalism Realtors® provide is more important now than ever." The series of biweekly national surveys collected information on consumer attitudes about working with real estate professionals during the coronavirus pandemic. Several survey highlights include: Approximately half of buyers (47%) and sellers (53%) said that during the current pandemic, relying upon a real estate professional when searching for or selling a home is much more important than before. A majority of buyers (54%) and sellers (62%) said that particularly during the pandemic, a real estate agent's guidance is especially valued. Almost 6 in 10 buyers and sellers – 59% and 58%, respectively – believed that buying and selling real estate is an essential service. About half of buyers – 51% – said an agent can help buyers glean more valuable information from online listings than buyers could uncover on their own. More than half of buyers – 56% – believed an agent can save a buyer the time and stress of weeding through online listings. View the survey report here. The National Association of Realtors® is America's largest trade association, representing more than 1.4 million members involved in all aspects of the residential and commercial real estate industries.
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Nearly 3 in 4 Realtors This Week Report Sellers Haven't Lowered Listing Prices to Attract Buyers, Suggesting Calmness and No Panic Selling by Homeowners
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A Quarter of Realtors This Week Report Homes Coming Under Contract Without Buyers First Visiting the Property
WASHINGTON (April 16, 2020) -- A quarter of Realtors with clients putting contracts on homes this week had at least one do so without physically seeing the property, according to a new survey from the National Association of Realtors. For those clients, the median amount of homes toured -- either virtually or in person -- before putting a contract on a home was just three. NAR's 2019 Profile of Home Buyers and Sellers found buyers typically looked at nine homes before placing a contract on a home. "Expect second-quarter home sales activity to slow down with the broad observance of stay-at-home orders, but sales will pick up when the economy reopens as many potential home buyers and sellers indicate they're still in the market or will be in a couple of months," said NAR Chief Economist Lawrence Yun. "Home prices remain stable as deals continue to happen with the growing use of new technology tools. Remarkably, 10% of Realtors® report the same level or even more business activity now than before the economic lockdown." NAR's latest Economic Pulse Flash Survey – conducted April 12-13, 2020 – asked members about how the coronavirus outbreak has impacted the residential and commercial real estate markets. Several highlights include: A third of Realtors® – 33% – reported no closing delays. For those reporting delays, the top reasons listed included delays in financing, appraisals and home inspections. Residential tenants are facing rent payment issues, but many delayed payment requests are being accommodated. Forty-one percent of property managers reported being able to accommodate tenants who cannot pay rent and about a quarter of individual landlords – 24% – said the same. NAR also today released its 2020 Down Payment Expectations & Hurdles to Home Ownership report, which offers home buyer, consumer, and Realtor® perspectives on down payments and family involvement in the home buying process. Several highlights include: Nearly a quarter of Millennials – 24% – received down payment assistance from a parent or relative. A majority of Realtors® – 65% – said that in the last five years they've had clients receive down payment assistance from a parent or relative. View NAR's 2020 Down Payment Expectations & Hurdles to Home Ownership report here View NAR's Economic Pulse Flash Survey full report here. View NAR's Weekly Housing Market Monitor here The National Association of Realtors® is America's largest trade association, representing more than 1.4 million members involved in all aspects of the residential and commercial real estate industries.
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NAR Survey Finds Nearly Half of Realtors Say Home Buyer Interest Has Decreased Due to the Coronavirus Outbreak
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Redfin Ranks the Most Walkable U.S. Cities of 2020
SEATTLE, Feb. 10, 2020 -- New York, San Francisco and Boston are the most walkable cities in the U.S. in 2020, according to a new ranking from Redfin, the technology-powered real estate brokerage. Those three cities, along with Philadelphia, Miami, Chicago, Washington, D.C., Seattle and Oakland, have reigned as the nine most walkable in the U.S. for the last five years. Long Beach, CA has been number 10 since it overtook Baltimore in 2016. The ranking was determined using data from Walk Score®, a Redfin company that rates the walkability of cities, neighborhoods and addresses. Cities where daily errands do not require a car score 90 points and above, a score of 70 to 89 points means most errands can be accomplished on foot and a score of 50 to 69 indicates that some errands can be completed on foot. Below is Redfin's latest ranking of the top 10 U.S. cities (with populations of more than 300,000) for walking: Biggest Walk Score changes Since Redfin last published Walk Score rankings in 2017, Miami and Washington, D.C. each lost about 1.5 points, and New York lost about one, but each retained its place in the rankings. Oakland; Long Beach, CA; Portland, OR and Omaha, which each picked up around two points, had the biggest Walk Score increases since 2017. "A lot of my homebuying clients seek out walkable neighborhoods in Long Beach because it's a way to get a small-town feeling in a big city. In certain neighborhoods, people run into each other all the time because they're out running errands, walking the dog or keeping an eye on neighborhood kids playing outside," said local Redfin agent Costanza Genoese-Zerbi. "Second Street, Belmont Shore, Belmont Heights, Naples, Alamitos Heights and Belmont Park, all of which are within walking distance of schools, stores, restaurants and parks, have become more and more popular over the last few years." Baltimore, which lost four points to hit 65, saw the biggest Walk Score decline of any U.S. city. It's followed by Bakersfield, CA and San Antonio, which each dropped three points to 34 and 35, respectively. To read the full report, please visit: https://www.redfin.com/blog/most-walkable-us-cities-2020 For a ranking of the most walkable Canadian cities of 2020, visit: https://www.redfin.com/blog/most-walkable-canadian-cities-2020 About Redfin Redfin is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 90 major metro areas across the U.S. and Canada. The company has helped customers buy or sell homes worth more than $85 billion.
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New Study Shows Property Buyers and Sellers Overwhelmingly Prefer Listings with 3D Tours
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Realtors Announce Partnership with Census Bureau in Promotion of 2020 Census
WASHINGTON (January 13, 2020) -- The United States Census Bureau has designated the National Association of Realtors as a National Partner for the upcoming 2020 Census. With the Bureau seeking to enlist the support of various national organizations, NAR is asking the 1.4 million Realtors nationwide to help drive Census participation in their respective communities. "NAR is able to provide tremendous value to our members because of the research we produce examining trends in communities across this country. But the usefulness of that information relies on current, accurate data from the federal government," said NAR President Vince Malta, broker at Malta & Co., Inc., in San Francisco. "Full participation in the Census is in many ways the only way to ensure that data is correct." In addition to determining appropriate Congressional representation, roughly $1.5 trillion is allocated to states and localities annually based off of Census results – delivering funds for roads, hospitals, schools and countless other public services. More specifically, this year's results will influence the allocation of $93.5 billion to Federal Direct Student Loans, $19.3 billion to Section 8 Housing Choice Vouchers and $12 billion to the National School Lunch Program. With this partnership, the Bureau will provide Realtors® with promotional materials that emphasize the importance of responding to the 2020 Census, which NAR members and partners are being asked to share with clients and neighbors. Last week, the House Oversight and Government Reform Committee reviewed some of the challenges associated with accurately securing this information at its hearing, Reaching Hard-to-Count Communities in the 2020 Census. Notices about the 2020 Census will be mailed in mid-March, and the Census Bureau will offer a guide in roughly 60 different languages. This year will mark the first time the questionnaire can be completed online, while options to respond over the phone and through the mail will still be available. In addition, NAR is reminding its members and U.S. residents that the Bureau will never ask for bank account or social security numbers, donations or anything on behalf of a political party, and strict federal law protects the confidentiality of Census responses. The National Association of Realtors® is America's largest trade association, representing more than 1.4 million members involved in all aspects of the residential and commercial real estate industries. For more information on NAR's efforts to promote Census participation please visit: https://www.nar.realtor/census.
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Fourth Quarter Good Time to Buy and Sell Home, Realtor Survey Says
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CFPB Releases New Report Exploring Differences between Large and Small Mortgage Servicers
Washington, D.C. -- The Consumer Financial Protection Bureau released today a report examining the differences between large and small mortgage servicers. The report explores the role servicers of different sizes play in the mortgage market where size is defined by the number of loans serviced. Because of differences in the resources, capabilities, customer base, and business models of financial institutions of varying sizes, the impact of consumer finance regulations can vary as well. The report finds that smaller servicers, such as community banks and credit unions, play an outsize role in rural areas, that the loans they service are less likely to be sold to Fannie Mae or Freddie Mac or to be government-backed, and that during the financial crisis they experienced lower delinquencies. Key findings in the report include: 74 percent of borrowers with mortgages at small servicers said having a branch or office nearby was important in how they chose their mortgage lender, compared to 44 percent at large servicers; delinquency rates on loans at servicers of all sizes increased substantially starting in 2008, but peak delinquency rates were much lower for small servicers than for large and mid-sized servicers; and smaller servicers have a greater share of mortgages in non-metro or completely rural counties. A link to the report may be found here. The Consumer Financial Protection Bureau is a 21st century agency that helps consumer finance markets work by regularly identifying and addressing outdated, unnecessary, or unduly burdensome regulations, by making rules more effective, by consistently enforcing federal consumer financial law, and by empowering consumers to take more control over their economic lives. For more information, visit consumerfinance.gov.
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Families Using Creativity When Buying, Selling Homes: 2019 Buyer and Seller Survey
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Redfin Survey: Homebuyers and Sellers Say Rising Home Prices Have Made Their Lives Worse, and They Support Policies to Make Homes More Affordable
SEATTLE, Oct. 22, 2019 -- Homebuyers and sellers are nearly twice as likely to support policies designed to keep homes affordable as they are to support policies designed to strengthen home values, according to a new report from Redfin, the technology-powered real estate brokerage. The report's findings are based on a June Redfin-commissioned survey of more than 3,000 U.S. residents who bought or sold a primary residence in the last year, or plan to in the next 12 months. As cities across the country grapple with an ongoing housing affordability crisis, solutions in the form of policy proposals have become a topic of local and national debate, with presidential candidates and community and business leaders on both sides of the political aisle weighing in. In general, homebuyers and sellers support policies that help would-be homebuyers struggling to afford a home over policies that benefit existing homeowners or investors and home-flippers. Respondents are nearly twice as likely to support policies designed to keep homes affordable as they were to support policies designed to strengthen home values. Nearly half of respondents said rising home prices over the past decade have made their life worse, while just 16% said rising home prices made their life better. 63% of respondents believe the government should provide down payment assistance to working-class families buying their first home. Respondents were more likely to support policies designed to limit investors' ability to buy homes to flip or rent out. Buyers and sellers value home affordability When asked about policies meant to lift up home values or keep homes affordable, 34 percent of respondents said they support policies designed to keep homes affordable, compared with 19 percent who prefer policies meant to strengthen home values. Thirty-seven percent said they support both types of policies, reflecting the moral dilemma this topic can present to homeowners who are financially motivated to grow their often biggest asset, but also care about the continued affordability and livability of the community in which they have invested. Rising home prices negatively affecting homebuyers and sellers Redfin asked respondents how each of a handful of changes to the economy over the last decade have affected their life. Nearly half (46 percent) said rising home prices made their life worse, compared to just 16 percent who said that rising home prices made their life better. Homeowners who bought at the bottom of the market in 2012 have collectively earned $203 billion in home equity. However, first-time homebuyers struggle to afford homes at current-day prices. Down payment assistance has broad support When asked whether the government should or should not provide down payment assistance to working-class families buying their first home, the majority of respondents (63 percent) said they believe the government should provide down payment assistance. Seventy-six percent of African Americans respondents said that the government should provide down payment assistance, which was the highest percentage of any racial group. Presidential candidates Elizabeth Warren and Kamala Harris have policies that increase government aid going to down payment assistance for first-time homebuyers in historically red-lined neighborhoods to boost African American homeownership. Redlined neighborhoods were minority neighborhoods that were historically denied mortgage loans. Some buyers and sellers want to put limits on investors Redfin asked respondents whether they would support policies that limit investors' ability to buy homes to flip or rent out or if they would support policies that make it easier for investors to buy homes to flip or rent out. Respondents preferred policies that limit investors. Thirty-three percent of respondents said they support policies that limit investors' ability to buy homes to flip or rent out compared to only 25 percent of respondents who said they support policies designed to make it easier for investors to buy homes to flip or rent out. To read the full report, including graphs and survey methodology, please visit: https://www.redfin.com/blog/Support-For-Keeping-Homes-Affordable. About Redfin Redfin is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 85 major metro areas across the U.S. and Canada. The company has closed more than $85 billion in home sales. For more information or to contact a local Redfin real estate agent, visit www.redfin.com.
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Locations Close to Public Transit Boost Residential, Commercial Real Estate Values
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Home Improvement Projects Are Worth Cost and Time, Says Realtor Survey
WASHINGTON (October 3, 2019) – Homeowners who decide to undergo a home improvement project, whether it be interior or exterior modifications, often find that the task was worth the investment and time, according to a new report from the National Association of Realtors®, with insights from the National Association of the Remodeling Industry. The 2019 Remodeling Impact Report, an examination of 20 projects, surveyed Realtors®, consumers who have taken on home renovation projects and members of the National Association of the Remodeling Industry. The report examines a variety of remodeling projects, using responses to rank the appeal of a given project, rank the value of the project in terms of resale and determine its overall functionality. The findings also reveal the reasons for remodeling, the success of taking on the various projects and the increased happiness reported in the home upon completion of the job. After completing a remodeling project, 74% of owners have a greater desire to be in their home, 65% say they experience increased enjoyment, and 77% feel a major sense of accomplishment, according to the survey. Additionally, 58% report a feeling of happiness when they see their completed projects, while 38% say they have a feeling of satisfaction. "Realtors® and homeowners alike recognize the value of taking on a major home remodeling project," said NAR President John Smaby, a second-generation Realtor® from Edina, Minnesota, and broker at Edina Realty. "While these tasks can be time-consuming and costly, the projects are well worth the temporary inconveniences, as this report shows, and the final products ultimately reward us, with feelings of accomplishment, satisfaction and higher home values." NAR calculated what it refers to as a "Joy Score" for each project. The score is based on the happiness homeowners reported with their renovations; the more pleased with a given project, the better the Joy Score, with the highest possible score being 10. Interior projects that received some of the higher Joy Scores are complete kitchen renovations, closet renovations, full interior and individual room paint jobs, kitchen upgrades and basement conversions to living areas. Exterior jobs with the highest Joy Scores were new fiberglass or steel front doors, new vinyl and wood windows and new roofing. "The NAR report shows us that people often remodel for resale purposes, but it also reminds us that homeowners remodel, too, with the desire to make a home their own," said Lawrence Yun, NAR chief economist. Kitchen Renovation A complete kitchen renovation received a top Joy Score of 10. Ninety-three percent of those polled said they have a greater desire to be at home since the completion of their kitchen, and 95% said they have an increased sense of enjoyment when at home. "The kitchen is a space homeowners frequent regularly throughout the course of the day," Yun noted. "So when that area is remodeled to owners' exact preferences – as they enter and exit the room – they continually experience the satisfaction of a job well done." The most important result of a kitchen renovation is improved functionality and livability, according to 46% of those polled. As to the reasons why they decided to take on the project, 24% say they wanted to upgrade worn-out surfaces and materials. Another 20% report they had recently moved into their home and had a desire to customize the kitchen to their particular tastes. "Kitchens serve as the "heart of the home" for many, and whether you like to entertain or cook, updating a kitchen ensures greater access and use as homeowners age, especially when the upgrades take accessibility into account," said NARI 2019-2020 President of the Board, Robert Kirsic, (CKBR) certified kitchen and bath remodeler. "No matter the size of the kitchen, a certified professional can guide the design and build process in a way that will yield joy and happiness for the homeowner." Closet Renovation Upgrading home closets was another task that received a 10 Joy Score. This is due in part to the inconvenience of a disorganized closet, which is something a homeowner encounters daily, often at the start of their day. When a closet renovation is finished, the sense of achievement is immediate. Thusly, 68% of those surveyed say they feel a major sense of accomplishment when they think about the completed project. Nearly three-quarters, 72%, report having a greater desire to be at home since finishing the job. With a closet redesign, 56% say the most important result is better functionality and livability. Fifty-four percent say the top reason for doing the job was the need to improve organization and storage. Fifteen percent answered that it was time for a change. Full Interior Paint Job Completing a full interior paint job in the home scored a 9.8 Joy Score. A finished paint job is usually visible in every room in a home, which speaks to how important a task this is to respondents. A vast majority, 88%, say they have a greater desire to be home since having their home freshly painted. Eighty-six percent report feeling a major sense of accomplishment when they think of the project. New Fiberglass Front Door As mentioned, the installation of fiberglass front doors is a highly rated exterior project, receiving a Joy Score of 9.7. Seventy-nine percent of polled homeowners say they have had a greater desire to be at home upon completion of the job. Sixty-seven percent say they have an increased sense of enjoyment when they are at home, and another 69% state that they feel a major sense of accomplishment when they think of the completed project. New Vinyl Windows New vinyl windows also received a very high Joy Score, 9.6, while 42% of those surveyed say the most important result is improved functionality and livability. As for the top reasons for doing the job, 47% say they had a desire to improve their home's energy efficiency and 23% say they wanted to upgrade worn-out surfaces, finishes and materials. Cost Recovered Remodelers often take on projects with resale in mind, rather than their own home preferences. The report found the top projects for recovering cost are new roofing, hardwood floor refinishing, and new hardwood floor installation. NARI Remodelers estimate that new roofing costs $7,500, and Realtors® estimate that new roofing helps sellers recover $8,000, on average. That equates to 107% of value recovered from the project. Lastly, NARI Remodelers estimate that new wood flooring costs $4,700, with Realtors® estimating the project helps sellers recover $5,000, or a 106% value recovery. NARI Remodelers estimate that hardwood floor refinishing costs $2,600, and Realtors® estimate that the hardwood floor refinishing would help sellers recover $2,600. "Using a trusted, professional remodeler paves the way for a successful project outcome," said NARI CEO, David R. Pekel, MCR, UDCP, CAPS. "NARI members adhere to our code of ethics, and work to design the best solution for homeowners to deliver satisfaction." About NAR's Survey In June and July of 2019, homeownership site HouseLogic.com surveyed consumers regarding the last remodeling project they undertook. A total of 2,193 respondents took the online survey. The Joy Score was calculated by combining the share who were happy and those who were satisfied when seeing their completed project and dividing the share by 10 to create a ranking between 1 and 10. Higher Joy Scores indicate greater joy from the project. In March and June 2019, NARI emailed a cost survey to its 4,400 members. A total of 378 responses were received. The survey had an adjusted response rate of 11.6%. Respondents were asked to consider certain parameters. In July 2019, NAR emailed an interior remodeling project survey to a random sample of 52,491 members. A total of 2,485 responses were received. The survey had an adjusted response rate of 4.7%, (see report for full methodology). 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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More than Half Say 'Now Is a Good Time to Buy,' According to Realtor Survey
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Redfin Survey: 38% of Homebuyers and Sellers Hesitant to Move to a Place Where They'd Be in the Political Minority
Just 22% would be hesitant about moving to a place where they'd be in the racial minority SEATTLE, Sept. 20, 2019 -- Thirty-eight percent of homebuyers and sellers would be hesitant about moving to an area where most residents have differing political views from their own, down from 41 percent in 2017 and 42 percent in 2016, according to a new report from Redfin, the technology-powered real estate brokerage. They're much more likely to be open to the idea of moving to a place where they'd be in the racial, ethnic or religious minority, with just 22 percent saying they'd be hesitant about it. The report's findings are based on a June Redfin-commissioned survey of more than 3,000 U.S. residents who bought or sold a primary residence in the last year, or plan to in the next 12 months. Where possible and applicable, results were compared with those from similar past surveys. "This decade's tumultuous political climate has widened the aisle between parties not only in Congress and the voting booth, but in our nation's communities," said Redfin chief economist Daryl Fairweather. "While the share of homebuyers and sellers who hesitate about moving to a place where most people have different ideologies has been declining, I imagine tensions will start to flare again as we head into the 2020 election year. As more people—especially young professionals—head inland from blue coastal cities seeking affordability in smaller inland metros, it's likely they will seek out communities where they'll live, work and send their kids to school with like-minded people. We expect to see red places in the middle of the country become redder and the blues bluer as the migration trends we've been reporting continue." Sixteen percent of respondents would be enthusiastic about moving to an area where most residents have differing political views, a notable increase from 9 percent in 2017 and 8 percent in 2016. Nearly half of homebuyers and sellers—46 percent—would be neutral at the prospect. Broken down by age, 23 percent of respondents aged 25 to 34 would be enthusiastic about moving to an area where most residents do not share their political views, a higher share than any other age group. Just 6 percent of people aged 65 and over would be enthusiastic at the prospect. When the responses are broken down by race, 40 percent of white homebuyers and sellers said they'd be hesitant about moving to an area where most residents have different political views, a higher share than any other racial group. Black and African American respondents were most likely to be enthusiastic at the prospect (22 percent reported enthusiasm, versus 14 percent of white respondents). Non-white respondents to the surveys included people who indicated their race was black or African American, East Asian or Asian American, Latinx or Hispanic American, Middle Eastern or Arab American and Native American. Young people are most likely to be enthusiastic about moving to an area where most people are a different race than they are Twenty-nine percent of homebuyers and sellers would be enthusiastic about moving to an area where they'd be in the racial, ethnic or religious minority. A smaller share—22 percent—would feel hesitant at the prospect, and just about half of respondents said they feel neutral about it. The June 2019 survey was the first time Redfin asked this question. Forty-one percent of people under 25 years old would feel enthusiastic about moving to an area where most residents are a different race, ethnicity or religion than they are, more than any other age group. The older the respondent, the less likely they were to say they'd be enthusiastic about moving to a place where they would find themselves in the minority, with just 16 percent of people aged 65 and older reporting enthusiasm. Forty-three percent of black or African American people would be enthusiastic about moving to an area where most residents are of a different race, ethnicity or religion, a higher share than any other respondent racial group. White respondents were the least likely to say they'd be enthusiastic about moving to a place where they'd be in the minority, with just 26 percent indicating that response. Just 10 percent of black or African American respondents said they would be hesitant to move to an area where they'd be in the minority, less than any other group, versus 25 percent of white respondents, more than any other group. It's possible respondents felt more comfortable expressing their hesitancy about moving to a place where they'd be in the political minority than moving to a place where they'd be in the racial minority, as it has become acceptable and common place to openly avoid interaction with people of different political opinions. To read the full report, including graphs, please visit: https://www.redfin.com/blog/housing-race-politics-study 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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Home Buyers Gear Up for Potential 2020 Recession
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Redfin Report: Racial Gaps in Homeownership, Home Equity and Wealth Widened during the Historic Decade-Long Economic Expansion
U.S. home prices have risen 73% since 2010, but the resulting home equity gains haven't benefited black Americans, whose homeownership rate fell to a record low in the second quarter SEATTLE, July 31, 2019 -- Homeowners in primarily white neighborhoods gained an average of $70,000 more in home equity than homeowners in primarily black neighborhoods from 2012 to 2018, according to a new report from Redfin, the technology-powered real estate brokerage. In part as a result of the inequality in homeownership and home-equity gains, black Americans have seen their median net worth decline in the past decade while for white Americans it rose by double digits. While U.S. home prices have risen 73 percent since the first quarter of 2010, homeownership rates among all Americans dropped 3 percentage points to 64.1%. Still, 73.1 percent of white Americans owned homes as of the second quarter of 2019, compared with a record-low of 40.6 percent for black Americans and 46.6 percent for Hispanic & Latino Americans. The resulting 32.5 percentage-point gap in homeownership between black and white Americans is 3.6 points wider than it was at the beginning of 2010. Meanwhile the homeownership gap between white and Hispanic & Latino Americans widened by half a point. "With higher unemployment rates and less wealth to begin with, black Americans were less able to buy homes even when prices were at their lowest point, meaning many missed out on opportunities to build wealth and put down roots in their communities through homeownership," said Redfin chief economist Daryl Fairweather. "The growing racial homeownership gap has widened the wealth gap, as home equity remains one of the most significant wealth-building tools. And now, with higher home prices and tighter lending standards than before the housing crash of 2008, it's more difficult than ever for minorities to break into the housing market. That's likely to contribute to growing economic inequality in the U.S." Redfin compiled data on homeownership rates, home equity, net worth and unemployment by race. The already-large homeownership gap between black and white Americans has widened since 2010 The homeownership rate for black Americans dropped 5 percentage points to 40.6% in the second quarter of 2019 from 45.6% in the first quarter of 2010. The rate for white Americans dropped just 1.4 percentage points, from 74.5% to 73.1%, over the same time period. The homeownership rate for Hispanic & Latino people fell 1.9 points (from 48.5% to 46.6%). The nationwide rate dropped 3 points to 64.1%. The homeownership gap between black and white Americans has widened over the last decade to a 32.5 percentage-point gap in the second quarter of 2019, from a 28.9 percentage-point gap in the first quarter of 2010. The homeownership rate remained over 70% for white Americans from 2010 through the first quarter of 2019, but it never surpassed the 50% threshold for black Americans. Homeowners in majority-black neighborhoods experienced significantly smaller home-equity gains in dollars than those in majority-white neighborhoods from 2012 to 2018 Homeowners in primarily black neighborhoods saw smaller dollar gains in home equity ($120,800) from 2012 to 2018 (the most recent full year for which data is available) than those in Hispanic/Latino and white neighborhoods. Homeowners in primarily white neighborhoods saw a gain of $190,935 during the same time period, and they started and ended with the most equity in dollars. Homeowners in primarily Hispanic & Latino communities gained $206,000 in equity. Home prices in majority-black neighborhoods rose 24.9% from 2012 to 2018, higher than the 21% gain for Hispanic & Latino communities and the 12.5% gain for white communities. Homeowners in majority-black neighborhoods saw the biggest percentage gain in equity (213%), but started with substantially lower equity in the homes than white and Hispanic & Latino neighborhoods. The home-equity gap between black and white Americans widened slightly from 2012 to 2018, from $67,229 to $70,135. Home-equity gains for black Americans haven't translated into an increase in net worth The median net worth for black Americans dropped 2.8% to $17,100 in 2016 (the most recent full year for which data is available) from $17,600 in 2010. That leaves the typical black American more than $10,000 short of the 20% down payment ($27,980) likely needed to purchase a median-priced home in Detroit, one of the most affordable major housing markets in the U.S. Median net worth rose 18.5% to $171,000 during the same period for white Americans. The net-worth gap between black and white Americans increased 22.8% to $153,900 in 2016 from $125,300 in 2010. Hispanic & Latino Americans saw their median net worth increase by 15.1% over the six year period to $20,600, also well below the typical down payment for a home in Detroit. In 2010, the ratio of white to black net worth was 8:1. By 2016, the ratio had widened to 10:1. The unemployment rate for black Americans is nearly double the rate for white Americans The unemployment rate for black Americans dropped 10.5 percentage points to 6% in June 2019 from 16.5% in January 2010, while the rate for white Americans fell 5.5 percentage points to 3.3% over the same time period. The unemployment gap between black and white Americans has narrowed substantially since the beginning of 2010, from a 7.7 percentage-point gap to a 2.7-point gap. To read the full report, including charts and methodology, please visit: https://www.redfin.com/blog/black-americans-homeownership-rate. About Redfin Redfin is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 85 major metro areas across the U.S. and Canada. The company has closed more than $85 billion in home sales.
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Redfin Releases National Survey on the State of the Real Estate Profession
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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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Gap Widens Between What Buyers Want and What's for Sale
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Generation Z Seeks Diverse Neighborhoods in Homebuying Decisions
Homes.com Survey Reveals Striking Demographic Shifts in Home Purchase Patterns AUSTIN, Texas, June 25, 2019 -- Generation Z, 18- to 24-year-olds who are entering the age bracket for first-time homebuying, is the first generation in American history with a preference for buying homes in culturally diverse neighborhoods, according to a recent Homes.com survey. Polling more than 1,000 young adults in the Gen Z age bracket, the survey is the first to examine how Generation Z and millennial habits differ across several facets of homebuying. The survey found that 58% of future Gen Z homebuyers prefer a diverse community compared to 12% who prefer a homogeneous neighborhood. Gen Z's commitment to diversity has important ramifications for national housing policy, cross-cultural enrichment, and the evolution of a post-racial definition of the American Dream. "Generation Z is more multicultural than ever before, with demographics that include the largest percentage of Hispanics and non-Hispanic blacks at 22% and 15%, respectively. Our survey suggests that their preferences will have a substantial impact on homebuying patterns," said David Mele, president of Homes.com. "That, in turn, may create a new dynamic where diverse communities thrive more than ever before." The Gen Z homeownership survey also found that: The vast majority of Gen Z-ers expect to buy a home. 86% of respondents reported they plan to become homeowners someday. Only 5% don't, and the remaining 9% are unsure. Since Gen Z is even larger than the millennial generation, strong home demand can be expected for many years to come. Most expect to buy their first homes before age 35. Specifically, 14% anticipate purchasing homes between ages 18-24, 48% from 25-29, and 25% between 30-34. If they succeed, they will follow the same schedule as Generation X and Baby Boomers. They will also achieve a much higher homeownership rate than millennials, who were stymied by high unemployment and low-income levels for young workers from 2008 to 2013. 'A place to call home' and investment value are among the top reasons to buy. The fact that half want to buy because they believe owning a home is a good investment reflects how far the wealth-building aspects of homeownership have rebounded since the housing crash of 2008 when less than 1% of first-time buyers said financial security was their primary purchase motivation. Having a good home for pets ranked as the #3 reason to buy, outstripping safety and a sense of community as key incentives. Proximity to work is Generation Z's top priority in selecting a place to live. When asked to rank the most important considerations in deciding where to live, proximity to work (71%) as well as to friends and family (52%) surpassed urban location (25%), proximity to shopping (24%) and access to nightlife (12%). That means that employers located in suburban and ex-urban areas will find it easier to attract Gen Z employees. Four in 10 are concerned they won't earn enough to qualify for a mortgage. Even though most are years away from buying a home, Generation Z is more worried about making enough income to afford a home in five or 10 years than about their ability to save for a down payment or pay off student loan debt. Gen Z-ers have misconceptions about down payments. Despite the availability of lower-cost down payments like those required with 3.5% FHA loans, many young homebuyers believe they will need to save for two or three years to meet down payment obligations unless they get financial help from friends and family. That scenario is unlikely unless they live in an expensive market or don't use a low down payment loan. "With Gen Z poised to become the next wave of homebuyers, it's important to look at how their attitudes and behaviors will affect the homebuying process," Mele noted. "The insights provided by this survey can help agents anticipate and prepare for the changes that will occur as this age group begins their home search." View the full results of the Homes.com survey at http://go.homes/gen-z. About Homes.com Homes.com offers today's demanding homebuyers, renters and those somewhere in between a simply smarter home search. With smart search features like Homes.com Snap & Search, home shoppers 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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HOME Survey: More Say Now Is a Good Time to Sell a Home
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Realtors Release First Profile on LGB Buyers and Sellers
WASHINGTON (June 6, 2019) -- June is national LGBT Pride Month, and in recognition, the National Association of Realtors has released its first-ever Profile of Lesbian, Gay and Bisexual Buyers and Sellers. The report, which utilizes four years of data from NAR's Profile of Home Buyers and Sellers, analyses the differences between LGB and other buyers and sellers. The report found that all groups — those identifying LGB and heterosexual — were most likely to purchase real estate because of a desire to own their own home. "The American Dream of homeownership traverses across the spectrum of our society — including sexual orientation — and Realtors® always have and will continue to advocate so that anyone who wants to, and is capable of purchasing a home, is able to do so," said NAR President John Smaby, a second-generation Realtor® from Edina, Minnesota and broker at Edina Realty. "Realtors® have always embraced the significance of the protections secured by the Fair Housing Act, and have encouraged efforts to extend them by amending our Code of Ethics in 2009 to prohibit discriminations based on sexual orientation and gender identity." Home Buyer/Seller Characteristics Bisexual home buyers were the most likely to indicate they were first-time homebuyers (58%), followed by lesbian and gay buyers (36%) and heterosexuals (32%). Bisexuals were also the youngest buyers, a median age of 36 years old, and had the lowest median income of $62,400. In comparison, lesbian and gay buyers were the oldest buyers at 45 years old. Heterosexual buyers reported a median age of 44 and a median income of $91,200, similar to $92,900 for lesbian and gay buyers. In addition to being the most likely to identify as first-time home buyers, bisexual sellers were the most likely to identify as first-time home sellers at 50%. Lesbian/gay and heterosexual first-time sellers each registered at 36%. "The number of home buyers and sellers who identify as lesbian, gay or bisexual has remained steady at 4% since we first included the question in our HBS survey in 2015," said Dr. Lawrence Yun, NAR chief economist. "Given that Millennials now make up 37% of home buyers and attitudes regarding sexual orientation continue to shift even among Generation Z, we expect to see this percentage increase in future surveys as younger generations are more likely to self-identify as LGB." Bisexual home buyers were less likely to identify as white/Caucasian than lesbian/gay or heterosexual buyers (77%, compared to 88% and 85%, respectively), and were nearly twice as likely to identify as Hispanic than both groups (13% compared to 7%). Fourteen percent of bisexual buyers were born outside of the U.S., versus 7% of lesbian and gay buyers. Eight percent of bisexual buyers reported speaking a primary household language other than English, more than lesbian and gay buyers (4%) and heterosexual buyers (2%). More than one-third of bisexual buyers identified as single females (38%), while a quarter of lesbian and gay buyers identified as single men (25%). Lesbian and gay buyers were also the group most likely to identify as an unmarried couple at 22%, compared to 15% of bisexual buyers and 7% of heterosexual buyers. Heterosexual buyers were the most likely to identify as a married couple (66%), followed by lesbian and gay buyers (38%) and bisexual buyers (34%). While heterosexual buyers were the most likely to have children in their households (38%), bisexual buyers were nearly three times as likely to have children in their households compared to lesbian and gay buyers (29% to 11%). Characteristics of Homes Purchased Bisexual buyers purchased the smallest and oldest homes, with a median square footage of 1,840 square feet and median year built of 1966. Lesbian and gay buyers followed with a median square footage of 1,900 and a median year built of 1974, while heterosexual buyers purchased the largest and newest homes (2,060 median square feet, 1985 median year). Bisexual buyers were the most likely to purchase a detached single-family home (86%), while lesbian and gay buyers were the least likely (79%). Heterosexual buyers were the most likely to purchase a multi-generational home at 13%, compared to 10% of LGB buyers. Lesbian and gay buyers were most likely to purchase in an urban area or a city center (28%), while bisexual buyers were most likely to buy a home in a small town (22%). All sexual orientations were equally likely to purchase in a resort or recreation area, 2%. Bisexual buyers were most likely to have made at least one compromise in their home purchase, most likely on the price (28%), style of home (23%) or distance from their jobs (23%). Lesbian and gay buyers were the least likely to have compromised on convenience to schools (7%). The data used for the report is an aggregation of data from responses from the 2015 through 2018 NAR Profile of Home Buyer and Sellers, totaling 22,521 responses. Four percent of all respondents identified as lesbian, gay or bisexual (3% and 1%, respectively), making for a total sample size of 918 LGB buyers and sellers. 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 Survey: Less than Half of Homebuyers Said Tax Reform Has Affected their Search
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Redfin Report: Birmingham, Little Rock and Charleston are the Most Affordable Places to Have a Baby
Southern metros top Redfin's ranking of places where childcare, healthcare, and upgrading to a home with an additional bedroom cost the least in an infant's first yearA baby's first year costs the most in Washington, D.C., Boston and Worcester, due to higher childcare costs SEATTLE, May 9, 2019 -- Birmingham, Alabama is the most affordable place in the country to raise an infant, costing an average of $16,383 in the first year, according to a new analysis from Redfin, the tech-powered real estate brokerage. The analysis calculated the cost of moving up from a two-bedroom single-family home to a comparable three-bedroom single-family home, or from a one-bedroom to a comparable two-bedroom condo, in 79 U.S. metro areas. Redfin added the difference in annual mortgage payments to average yearly childcare costs for the state in which the metro is located, plus uniform healthcare and baby item expenses, to come up with the total cost. Southern metros dominated the ranking of the most affordable places for a baby's first year, with Little Rock, Arkansas ranking second at $16,585 and Charleston, South Carolina coming in third at $16,566. Washington, D.C., where parents spend an average of $35,017 during a baby's first year, is the most expensive metro in the country to raise an infant, followed by Boston($31,307) and Worcester, Massachusetts($30,610). Ben Price, a Redfin agent in Birmingham, moved to the area from Chicago partly because it's a more affordable place to raise children. "With three active kids in the Chicago suburbs, my wife and I found that we were always behind, both in time and finances. The cost of living with three children was too much to handle," Price said. "At first, my wife was reluctant to consider moving to a more affordable area—but then I showed her homes for sale in Birmingham on Redfin.com. When she saw how much more house we could afford there without sacrificing in terms of school ratings, she was in. Now we own a five-bedroom, five-bathroom home in Birmingham, more than we could afford in expensive parts of the country." In Birmingham, just $1,378, or 8.4 percent, of the total cost of a baby's first year represents the annual difference in mortgage payments between a typical two-bedroom home and a three-bedroom home, while $5,858 is the cost of childcare. And in D.C., the upgrade from two to three bedrooms accounts for just $2,204, or 9.3 percent, of the total, with childcare coming in at an average of $23,666 per year. Even in expensive metros like San Jose, the $3,745 cost of upgrading from a two- to three-bedroom home is significantly lower than the $16,542 annual cost of childcare. "The most costly part of adding to your family is the time put into taking care of a new baby, whether it's you or your childcare provider," said Redfin chief economist Daryl Fairweather. "If you decide to stay at home to take care of your baby, you may have to forego income and pause your career progression. If you hire a nanny, you will need to pay them a competitive wage. And if you happen to find an affordable daycare provider, you may have to sit on a waitlist until a spot opens up for your child. That extra room for a nursery is a relatively small monthly expense compared to childcare, no matter where you live." Because childcare makes up such a significant portion of the cost of a baby's first year, the places with the most expensive childcare are the ones where it costs the most to raise a baby. For instance, Washington, D.C., where a baby's first year is most expensive, is the most costly metro in the country for childcare, and Birmingham is the least expensive for both. However, that pattern doesn't hold true in every area. Childcare in Dayton, Ohio costs about $1,000 less per year on average than it does in Grand Rapids, Michigan. But upgrading from a two-bedroom to a three-bedroom home will cost about $1,200 more per year in Dayton, which makes it a more expensive place to have a baby. "In the D.C. area, finding a home for a family in the city is becoming increasingly unaffordable, particularly in the neighborhoods with highly rated schools," said local Redfin agent David Ehrenberg. "But one thing to keep in mind is that while paying for infant childcare is costly, the city of D.C. may be less expensive than its surrounding suburbs once the child is a bit older. D.C. public schools offer free pre-K for three and four-year-olds, while local Maryland and Virginia counties do not." To read the report, including the full ranking and methodology, please click here. About Redfin Redfin is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 85 major metro areas across the U.S. and Canada. The company has closed more than $85 billion in home sales.
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Realtors Survey Shows Median Income Jumped 5%, More Women Joining Industry
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REALTORS and Social Media: Latest RPR Survey Reveals Trends
CHICAGO (April 23, 2019) – Realtors Property Resource, a wholly owned subsidiary of the National Association of REALTORS, is pleased to announce the results of its 2019 REALTOR® Social and Digital Media Report. The report includes findings from a survey of over 650 REALTORS concerning how they use social and digital media to market themselves and build their businesses. Of 651 REALTORS surveyed, almost 74% indicated that awareness is the main reason they look to social media to boost their marketing tactics. An overwhelming majority of respondents, nearly 65%, plan to commit more time to social and digital media. And just over 62% have more of their marketing budget earmarked towards social media for the coming year. "Social and digital media should play a huge role in any agent's marketing efforts," says Reggie Nicolay, RPR Vice President of Marketing. "Raising awareness of yourself and your services via channels such as Facebook, Instagram and email are the new normal in real estate marketing. It really comes down to fishing where the fish are, and the sea is full of social media users." Facebook and Instagram are the most popular social outlets for REALTORS®. Interestingly, Instagram edged out LinkedIn, which was 2017's second most used platform. Property listings are the most popular form of social media posts for real estate professionals, with local events and buying tips coming in second and third. When it comes to the type of content and format that REALTORS® are posting, photos are the number one choice, followed up by video and other content links. When it comes to digital media, email is far and away the big winner, with over 78% of REALTORS® saying the use it as their digital marketing tool of choice. Texting, videos and eNewsletters rounded out the other top digital media deliverables. Additional 2019 REALTOR®Social and Digital Media Report key findings include: Over 60 percent of respondents said they will commit more time to social and digital media in the coming year 57 percent of REALTORS® spend 1-4 hours per week on their social media presence Almost 58 percent of REALTORS® spend 1-4 hours per week on their digital marketing efforts To read the complete study results, view the PDF.
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Realtors Report Value in Promoting Green Features in Both Residential and Commercial Listings
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Spring Home Buyers Eye Homes in Need of Renovation
Nearly 60 percent of 2019 home buyers are considering a home that needs renovations; 95 percent expect a little TLC will result in a positive return on their investment SANTA CLARA, Calif., April 15, 2019 -- Nearly 60 percent of all spring home shoppers are considering a home that needs renovating, as rising home prices and limited entry-level inventory continue to be a hurdle, according to realtor.com®'s spring home buyer survey announced today. Just over half of home buyers considering a home that needs some TLC are willing to spend more than $20,000 on the renovation, while the vast majority - 95 percent of them - are optimistic they will get a positive return on their renovation investment. Realtor.com® conducted the online survey through Toluna Research in March, consisting of 1,015 respondents planning to purchase a home in the next 12 months. "The combination of rising home prices and limited entry-level homes for sale is prompting many home shoppers to consider homes that need renovating," said Danielle Hale, realtor.com®'s chief economist. "Replete with inspiration at their fingertips - like Pinterest, Instagram, and various home renovation TV shows - some home shoppers are comfortable tackling home renovation jobs to find a home that balances their needs with their budget." According to the survey, roughly three out of five home shoppers under 55 years-old are considering a home this spring that needs renovating. Middle-aged shoppers, 35-54 years-old, were the most likely to consider a home that needs renovating, at 65 percent. Middle-aged shoppers are more likely to be current homeowners and their experience with maintaining and improving their existing home may give them the confidence to tackle renovations, especially when motivated by trying to find a home that fits their needs within their budget, Hale noted. Just 59 percent of younger home shoppers aged 18-34 years-old, who are less likely to be current owners, are considering a home in need of renovation. Less than a third of buyers older than 55 years-old would consider a home that needs renovations. Just over half of spring home shoppers considering homes in need of renovation - 51 percent - are willing to spend more than $20,000 on their home renovation. Twenty eight percent are willing to spend up to $10,000, and 22 percent are willing to spend between $10,001 and $20,000. According to realtor.com data, a major kitchen remodel will cost around $66,000, while a minor remodel will cost around $22,000. Similarly, an upscale bathroom remodel will cost you around $64,000, while a midrange bathroom remodel runs about $20,000. While home renovations can be costly, home shoppers are optimistic they will get a positive return on their investment. According to the survey, 95 percent of home shoppers considering a home that needs renovations expect a positive return of some sort on their investment. Nearly a quarter - 24 percent - expect a positive return of more than 50 percent. A kitchen upgrade was the No.1 home renovation chosen by nearly 30 percent of respondents considering homes that need to be renovated. This is not particularly surprising since both this year and last year an updated kitchen was first among the top three features sought by potential home shoppers. A kitchen upgrade was followed by a bathroom renovation at just over a quarter - 26 percent, and new wood flooring at 20 percent. Eighteen percent considered a hardwood flooring refinish, and the same share considered a complete overhaul kitchen renovation. Among spring home shoppers considering a home in need of renovation, nearly 60 percent said home renovation television has made them more optimistic regarding home renovations, according to realtor.com's survey. Whether it is seeing the project unfold in a tidy 30 minute segment, or just getting inspired by the before and after shots, home shoppers are turning to home renovations to make their dream home when finding one as-is turns out to be difficult. 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. Property Taxes Levied on Single Family Homes in 2018 Increased 4 Percent to More than $304 Billion
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Gen Xers' Adult Children Influence Their Buying Decisions, Younger Millennials Become Buying Force According to Realtor Report
WASHINGTON (April 1, 2019) – One in six Gen Xers purchased a multi-generational home, overtaking younger boomers as the generation most likely to do so; with 52 percent of those Gen X buyers indicating that they did so because their adult children have either moved back or never left home. This is according to the National Association of Realtors®' 2019 Home Buyer and Seller Generational Trends study, which evaluates the generational differences of recent homebuyers and sellers. The report also found that older millennials who bought a multi-generational home, at 9 percent, were most likely to do so in order to take care of aging parents (33 percent), or to spend more time with those parents (30 percent). "The high cost of rent and lack of affordable housing inventory is sending adult children back to their parents' homes either out of necessity or an attempt to save money," says Lawrence Yun, NAR chief economist. "While these multi-generational homes may not be what a majority of Americans expect out of homeownership, this method allows younger potential buyers the opportunity to gain their financial footing and transition into homeownership. In fact, younger millennials are the most likely to move directly out of their parents' homes into homeownership, circumventing renting altogether." Millennials as a whole accounted for 37 percent of all buyers, making them the most active generation of buyers for the sixth consecutive year. 2019 is the first year the report separated younger and older millennials, accounting for 11 and 26 percent of buyers respectively. This separation was deemed necessary as younger millennials now account for a larger buying share than the silent generation (7 percent). Gen X buyers were the second largest group of buyers (24 percent), followed by younger boomers (18 percent) and older boomers (14 percent). Dividing millennials into younger and older cohorts highlights the disparities between the two age groups, and paints a picture of older millennials that is much closer to Gen Xers and younger boomers. Older millennials have a median household income of $101,200 and purchase homes with a median price of $274,000, comparable to Gen Xers ($111,100 income, $277,800 median home price) and younger boomers ($102,300, $251,100 respectively). Yun says this is to be expected as millennials continue to age and advance through various stages of their lives and careers. "Older millennials are now entering the prime earning stages of their careers, and the size and costs of homes they purchase reflect this. Their choices are falling more in line with their Gen X and boomer counterparts." Younger millennials, meanwhile, are purchasing the least expensive homes and smallest homes ($177,000 and 1,600 square feet), meaning they face the greatest challenge in finding affordable inventory. They also report a median household income of $71,200. Downsizing to a smaller home is not currently common among any of the generations. Sellers over the age of 54 only downsize by a median of 100 to 200 square feet. Gen Xers and boomers who may have been interested in downsizing could have been hindered by a lack of smaller inventory; or may have been impeded by the increase in multi-generational living these generations are reporting to accommodate the needs of adult children and aging parents. Student loan debt remains a barrier to homeownership Older millennials and Gen Xers carry the most substantial amount of student loan debt, with a median amount of $30,000. Younger millennials rank second with a median amount of $21,000. However, younger millennials are the most likely to have student loan debt, with 47 percent indicating that they carry some amount of student loan debt, while only 42 percent of older millennials and 27 percent of Gen Xers report student loan debt. Younger and older boomers also report carrying student loan debt but a lower amount, 10 and 4 percent respectively. Younger millennials were the most likely to say saving for a down payment was the most difficult task in the home process, 26 percent. Among them, student loan debt delayed their home purchase (61 percent); however, they indicated that this particular debt only delayed them a median of two years − the shortest delay of all generations. "These buyers are the most likely to receive some or all of their down payment as a gift from family or friends, usually their parents," says Yun. "This could explain why their debt is not holding them back from homeownership as long as other generations, who are less likely to receive down payment assistance." Homebuyer household compositions shift from married couples While the majority of buyers in all age groups are married couples, single buyers and unmarried couples continue to make a mark on the real estate market. Single females accounted for 25 percent of all younger boomers and silent generation buyers. "Many of these buyers are entering the market after a divorce, which is the case for younger boomers, or the death of a spouse in the case of those in the silent generation," says Yun. While only 8 percent of buyers as a whole were unmarried couples, they accounted for 20 percent of all younger millennial homebuyers, compared to 13 percent for older millennials, 8 percent for Gen Xers, 4 percent for both younger and older boomers and 3 percent for the silent generation. A majority of buyers and sellers work with a real estate agent, regardless of age. Buyers and sellers across all age groups continue to seek the assistance of a real estate agent when buying and selling a home. At 92 percent, younger millennials were the most likely to purchase a home through a real estate agent. "Help understanding the buying process" was cited as the top benefit younger millennials said their agent provided (87 percent). Across all generations, 87 percent of all buyers purchased their home through a real estate agent. Gen Xers were the largest group of sellers, accounting for one-quarter of all sellers. They were also most likely to have wanted to sell earlier but could not because their home was worth less than their mortgage; 15 percent reported they were in this situation. Ninety-two percent of all sellers used an agent during their home selling process, with older millennials and Gen Xers most likely to have used a full-service agent who offered a broad range of services and managed most aspects of the sale. "Consumers of all ages understand that working with a Realtor® is the advantage they need to compete in this fast-moving, constantly evolving real estate market," said NAR President John Smaby, a second-generation Realtor® from Edina, Minnesota and broker at Edina Realty. "Buying a home is an exciting, complicated and sometimes daunting process, and Realtors® have the knowledge and expertise to guide buyers and sellers through this experience." 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 homebuyers. 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 5.6 percent. The sample at the 95 percent confidence level has a confidence interval of plus-or-minus 1.10 percent. The recent homebuyers 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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Vast Majority Think 2019 First Quarter is Good Time to Buy Home, says Realtor Survey
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More Than 80 Percent of Realtors Say Staged Houses Help Buyers Visualize Them as Homes
WASHINGTON (March 14, 2019) – As the spring home buying season kicks off, a new survey from the National Association of Realtors® shows that 83 percent of buyers' agents say that staging makes it easier for buyers to visualize a property as their future home, according to NAR's 2019 Profile of Home Staging, www.nar.realtor/reports/profile-of-home-staging (link is external). "Buying a house is more than a financial decision; it is an emotional decision as well. Buyers aren't just making an investment in a property, they are purchasing a place to call home; to raise their children; to begin a new chapter; or to retire to a new season of life," said NAR President John Smaby, a second-generation Realtor® from Edina, Minnesota and broker at Edina Realty. "Realtors® understand the importance of making a residential property as welcoming and appealing as possible to potential buyers. While every Realtor® doesn't use staging in every situation, the potential value it brings is clear to both homebuyers and sellers." According to the report, more than half of sellers' agents said that staging a home decreases the amount of time a home spends on the market, with 25 percent saying that it greatly decreases the time and 28 percent saying it slightly decreases the time. The report contains a new section called "Buyer Expectations," which focuses on how home buying television shows are impacting Realtors®' businesses as well as homebuyers' views on the home buying process. Thirty-eight percent of respondents say that television shows that display the home buying process have had an impact on their business, while 32 percent say they witnessed no impact and 31 percent say they do not know if they have an impact. The report found that a median of 20 percent of buyers were disappointed by how homes look compared to homes they see on television shows. Thirty-nine percent of respondents stated that buyers found the home buying process to be more difficult than their expectations. A median of 10 percent of respondents cited that buyers felt homes should look the way they do when staged on TV shows. Among these respondents, 40 percent of buyer' agents said staging has an effect on most buyers, while 52 percent stated that staging has an effect on some buyers' opinion of a home. Only 6 percent said that it has no impact on buyers. Realtors® who represent buyers report that the living room is the most important room in a home to stage (47 percent). Buyers' agents say the next most important rooms are the master bedroom (42 percent) and then the kitchen (35 percent); sellers' agents agree with those rooms, but in reverse order. The guest bedroom is considered the least important room to stage. Forty-four percent of buyers' agents report that staging a home increased the financial offer on a home. Twenty-five percent say staging a home increases its dollar value by 1 to 5 percent and 12 percent said that it increases the dollar value 6 to 10 percent. Twenty-nine percent of buyers' agents stated it has no impact on dollar value. Only 1 percent of buyers' agents felt that staging has a negative impact on a home's dollar value. Sellers' agents report even more value added from staging: 22 percent reported an increase of 1 to 5 percent in dollar value offered by buyers, 17 percent reported an increase of 6 to 10 percent, 5 percent reported an increase of 11 to 15 percent and 2 percent reported an increase of 16 to 20 percent. In fact, no sellers' agents reported a negative impact from home staging. When deciding which homes to stage, 28 percent of sellers' agents say they stage all of their clients' homes before listing them. Forty-five percent of sellers' agents said they do not stage homes before listing them, but they recommend sellers declutter their homes and fix any faults within the property. Thirteen percent said they only stage homes that are difficult to sell, and 7 percent stage only homes in higher price brackets. "Realtors® have the expertise and local market knowledge to know which properties and specific rooms will benefit the most from staging, which is why working with a Realtor® is so vital for sellers in today's housing market," says Smaby. Who pays for the home staging? The seller pays before listing the home 18 percent of the time, sellers' agents in will personally provide funds to stage the home in 26 percent of cases, and in 17 percent of occasions, agents will offer home staging services. In addition to staging, agents recommended sellers take these important actions: Ninety-five percent recommend decluttering the home, 89 percent recommend an entire home cleaning and 83 percent recommend removing pets from the home during showings. Other pre-sale projects include carpet cleaning, depersonalizing the home and making minor repairs. In February 2019, NAR invited a random sample of 48,728 active Realtor® members to fill out an online survey. A total of 2,076 useable responses were received for an overall response rate of 4.2 percent. At the 95 percent confidence level, the margin of error is plus-or-minus 2.15 percent. 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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Contactually's 2018 State of Customer Relationship Management Report Reveals Best Practices for Real Estate Agents
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Realtors Property Resource Releases the 2018 State of the Listing Presentation
Findings show relationships and home valuations are key for successful listing presentations CHICAGO –– Realtors Property Resource (RPR), a wholly-owned subsidiary of the National Association of REALTORS, announces the results of the 2018 REALTOR State of the Listing Presentation. The report includes findings from a survey of more than 450 REALTORS and reveals trends on what sellers want from a listing presentation. According to the study, most REALTORS® still give listing presentations in-person. This is indicative of the value REALTORS® place on client relationships, also evidenced in follow up methods post-presentation. The majority of REALTORS® choose to follow up via phone call, as opposed to an email. These personal interactions prove successful, as nearly half of respondents said a listing presentation results in a signed contract 76 to 100 percent of the time. The survey also revealed home valuations are, perhaps, the most crucial part of a listing presentation for both REALTORS® and sellers. Eight out of 10 respondents agreed it is extremely important to provide an accurate valuation to a seller in the listing presentation. More than 40 percent of sellers request a valuation ahead of the listing presentation. Half of REALTORS® include a valuation in their pre-listing package, and nearly 80 percent always provide one during the listing presentation. "The survey indicates home valuations are the subject of one of the most-asked questions during a listing presentation," said Reggie Nicolay, RPR vice president of marketing. "Valuations are confusing to many sellers, and a listing presentation is the perfect opportunity for REALTORS® to educate clients on how valuations are calculated." Additional key findings from the 2018 REALTOR® State of the Listing Presentation Report include: An overwhelming majority (93 percent) of REALTORS® hold their listing presentations face-to-face. A majority follow up via a phone call, with over 40 percent even sending a handwritten note. 84 percent of REALTORS® agree that it is extremely important to present an accurate valuation model in the first meeting with a seller. 21 percent of REALTORS® report the top questions they are asked during a listing presentation are questions about home value. Additionally, 19 percent said the top questions are about how much the home will sell for or the listing price. RPR provides REALTORS® with many tools to increase the effectiveness of their listing presentations, including customizable property reports and comparable market analysis. To aid REALTORS® in conversations about valuations, RPR also offers the Realtors Valuation Model®. RVMs allow REALTORS® to estimate valuations based on factors AVMs do not take into account, thereby showcasing their expertise in the industry. To view the full report, visit https://narrpr.box.com/s/mslwsbbo6bk2s5el3eq3ow0byx01xl4h. To learn more about RPR, visit blog.narrpr.com. About Realtors Property Resource® Realtors Property Resource, LLC® (RPR®), a wholly owned subsidiary of the NATIONAL ASSOCIATION OF REALTORS®, is an exclusive online real estate database created to support the core competence of its members. The parcel centric database, covering more than 160 million residential and commercial U.S. properties, provides REALTORS® with the analytical power to help clients make informed decisions while increasing efficiency in the marketplace. For more on RPR, visit blog.narrpr.com.
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Homeownership Part of American Dream; Housing Costs Deterrent for Non-Owners
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Redfin Survey: Gen-Xers and Older Millennials Believe Stocks Are a Better Investment than Real Estate
35-44 year olds were hit hardest by the housing bust just as they reached prime first-time homebuying age SEATTLE, Jan. 7, 2019 -- Less than half of homebuyers and sellers between the ages of 35 and 44 believe that real estate is a better long-term investment than the stock market, according to a survey from Redfin, the next-generation real estate brokerage. In December 2018, Redfin surveyed more than 2,600 people nationwide who at the time bought or sold a home in the last year, attempted to do so, or had plans to buy or sell in the near future. Buyers who reached the median first-time homebuyer age of 31 years old between 2008 and 2012 during the Great Recession and housing market collapse are now 37 to 41 years old. Redfin's survey results show that this was the only age group that has less confidence in real estate as an investment than the stock market. Just 48 percent of homebuyers and sellers in this age group believe that real estate is a better long-term investment than the stock market. "The oldest Millennials and youngest Gen-Xers entered their late twenties or early thirties during the housing crash, which explains why they are more skeptical about investing in real-estate," said Redfin chief economist Daryl Fairweather. "This generation experienced a major setback during the housing bust, which hit just as they were most likely to be getting married, starting a family, and becoming a first time homeowner. Looking into the future, we expect to see homeownership increase as Millennials enter prime home-buying age. This is because Millennials have a more favorable opinion of real estate as an investment than Gen-Xers, and Millennials are a larger group than Gen-Xers." In every other age group, buyers and sellers who believe that real estate is a better long-term investment outnumbered those who believe the stock market is better. Younger Baby Boomers, respondents aged 55 to 64, were the most optimistic about real estate as an investment. For the complete report 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 #1 brokerage website in the United States 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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Homeowners Love Their D.I.Y. Remodels, Says Realtor Survey
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Majority Feel 2018 Fourth Quarter is Good Time to Buy Home, says Realtor Survey
WASHINGTON (December 18, 2018) – New findings from a National Association of Realtors® survey show that despite a favorable view on the economy and the direction of home prices, the sentiment on home buying continued to diminish at the close of 2018 – though a majority still think it is a good time to buy. Consumer sentiment about home buying weakened in the fourth quarter with only 34 percent strongly indicating it is now a good time to buy, down from 39 percent in the third quarter and 43 percent one year ago. The percentage of those who believe that is not a good time to buy was unchanged in the fourth quarter, remaining at 37 percent, though up from 28 percent one year ago. NAR's fourth quarter Housing Opportunities and Market Experience (HOME) survey also found that a majority of those polled, 59 percent, believe that the economy is improving. Optimism is the greatest among those who earn $50,000 or more. Fifty-three percent of those in urban areas said the economy is improving, compared to 71 percent of respondents in rural areas. NAR's chief economist Lawrence Yun says rapid price increases have affected the marketplace. "Consistently fast-rising home prices well in excess of income growth over recent years have left buyers frustrated while slowly enticing would-be sellers to consider listing." From 2012 to 2018, median home prices rose 44 percent, while average hourly wage earnings increased by just 16 percent. NAR's most recent survey asked about home prices over the last 12 months. Sixty-three percent of respondents feel that prices have increased in their communities over the last 12 months, down from the third when 70 percent of respondents believed that prices had increased. Thirty percent feel housing prices within their communities have remained the same. Americans living in the West, those with annual incomes of over $100,000 and those 45 to 54 years of age are most likely to report that prices have increased in their neighborhoods. Additionally, 67 percent of homeowners, 56 percent of renters and 50 percent of those living with someone else also felt home prices in their communities increased. Forty percent of those earning less than $50,000 reported that home prices had stayed the same. The national median home price as of October was $255,400, compared to $382,900 in the West. Respondents were also asked for their views on home prices in the next six months. Forty-one percent predict home prices in their communities will stay the same, unchanged from last quarter but up slightly from 40 percent in 2018's second quarter. Of those who said the economy is advancing, 59 percent live in the West, which Yun found interesting. "The West region has a strong job-creating economy, yet it is the West region showing the weakest buyer sentiment because the West region is the least affordable," said Yun. Among those who do not presently own a home, 29 percent of those polled said that it would be very difficult to qualify for a mortgage and 30 percent believe that it would be somewhat difficult given their current financial situation (compared to 28 and 31 percent last quarter). Yun says some of the fourth quarter findings imply that the softening home buying sentiment is less a result of potential buyers holding off purchases in anticipation of lower home prices, but more related to concerns over qualifying for a higher mortgage and the lack of access to affordable home listings. "Perhaps some communities designated as Opportunity Zones can draw real estate developers using tax incentives to build affordable housing," Yun said. About NAR's HOME survey From October through December, 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 representing a total of 2,710 household responses. 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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Technology, Realtor Use: Both Large Part of Home Buyer Process
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Realtors More Likely to Donate Annually than Most Americans, According to Survey
WASHINGTON (December 5, 2018) – Eighty-two percent of Realtors® donate money to charitable causes every year, compared to the national average of 56.6 percent of Americans who do so, according to a new report from the National Association of Realtors®. The Community Aid and Real Estate Report, known as the CARE Report, provides insight on the monetary and volunteer contributions that general members at-large, broker-owners and Association Executives of Multiple Listing Services give to society. The report found that all three of these groups donate money and volunteer significant amounts of time in their communities while supporting their local Realtor® Associations. Compared to the general members at-large, 81 percent of broker-owners donate money on an annual basis, while 90 percent of AEs or MLS staff donate each year. According to the report's findings, four-fifths of NAR's members reported that being involved in their community is an important component of their business plan. "The findings in this report highlight what we've known all along - that Realtors® go above and beyond to serve their neighbors," said NAR President John Smaby, a second-generation Realtor® from Edina, Minnesota and broker at Edina Realty. "Realtors® across the country not only work to help people achieve the American dream, but they also work hard to make a difference in our communities and make them better places to live." When it comes to volunteering, 85 percent of AEs and MLS staff report that they volunteer on a monthly basis for a median amount of 10 hours. Seventy-seven percent of broker-owners volunteered on a monthly basis for a median amount of 10 hours, followed by 66 percent of members at-large for a median of eight hours. In comparison, just 6.1 percent of Americans volunteer on a regular basis. Of those who donate money annually, broker-owners give a median amount of $1,950, the most of the three groups. AEs and MLS staff who donate contribute a median amount of $1,250 a year, and general members give $1,000 annually. Realtor® associations also donated to their communities, with a median annual amount of $5,000 to their communities and $2,500 to NAR. Eighty-nine percent of AE or MLS staff responded that their associations held a fundraiser for their community last year, with 54 percent holding three or more. Eighty percent of broker-owners indicated that they encourage their agents to be involved in their communities and sixty-four percent of general members at-large reported that their firms encourage them to volunteer. In 2019, NAR will also be celebrating the 20th year of the Good Neighbor Awards, which recognizes Realtors® who make extraordinary commitments to improving the quality of life in their communities. Since its inception, the Good Neighbor Awards has recognized more than 200 Realtors® for their charitable service, and awarded $1.2 million in grant money. For more information, go to nar.realtor/gna. Seventy-five percent of respondents identified as general members at-large, 20 percent as broker-owners and six percent as AEs or MLS staff. The survey was sent out in June 2018 to 162,474 people, 120,000 were randomly selected Realtors® who are not Brokers of Record and 40,000 were sent to a random sampled of Designated Realtors®. A total of 4,095 people responded. The margin of error for the survey is +/-1.5 percentage points at the 95% confidence level. 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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Single Females Remain a Force in Market, While First-time Buyers Continue to Struggle, According to Realtor 2018 Buyer and Seller Survey
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Three out of Four People Believe They Have Good Neighbors
Realtor.com®'s 2018 Good Neighbors Report finds that good neighbors don't need to be friendly, but should be quiet and respectful of property SANTA CLARA, Calif., Oct. 18, 2018 -- Three out of four people believe they have good neighbors, according to realtor.com®'s new Good Neighbor Report. All demographics agreed that the ideal neighbor is trustworthy, quiet, friendly and respectful, but there's no need to maintain a close friendship in order to be considered a 'good neighbor'. The new report, prepared by Harris Interactive, surveyed more than 1,000 participants across the U.S. "While it's true that some people focus on what annoys them about their neighbor, it's a welcome surprise to see that people generally think positively of their neighbors," said Nate Johnson, chief marketing officer at realtor.com®. "Trust and dependability plays an integral part in helping a neighborhood feel like 'home'. Building it can be as easy as stopping by to say hello." While 77 percent of those surveyed are generally satisfied with their neighbors, women (8 percent) are the most likely to say they do not have good neighbors while 20 percent aren't sure whether or not they have good neighbors. The Gen Z demographic is most likely to be unsure of whether or not they have good neighbors at 21 percent, compared to their Gen X (17 percent) and Gen Y (13 percent) counterparts. Trust thy neighbor, and keep the noise down Across all demographics, being trustworthy (59 percent) and quiet (50 percent) are the most important qualities a neighbor can have, even trumping friendliness (46 percent). Females in particular considered 'trustworthy' as a must-have trait in a good neighbor, as well as those older than 35 years of age (63 percent and 62 percent, respectively). Millennials and Gen Z respondents (age groups 18-34) and older adults ages 55+ tend to care most about having friendly neighbors, with 48 percent and 49 percent, respectively, seeing it as a top trait. The least appreciated quality for all groups surveyed was having a close friendship with a neighbor. Only 9 percent of women see close friendship as a must-have for good neighbors, while men rate it somewhat higher, at 20 percent. When it came to ranking a neighbor's worst traits, however, untrustworthiness came in at third place (54 percent). Sixty-seven percent view being disrespectful of property as the worst trait a potential neighbor can have, followed by loud (60 percent). Being nosy, messy, and unfriendly round out the list of undesirable qualities. Welcome others as you would have them welcome you Welcoming new residents to the neighborhood can establish an amicable rapport from the get-go. Certain practices are preferred by almost everyone, but the report shows that neighbors don't always follow through with welcoming residents the way they themselves would like to be welcomed to a new area. The most common welcoming method preferred by 65 percent of survey participants? Just a simple introduction. However, only 46 percent of respondents reported that their neighbors stopped by for a quick greeting, and 39 percent were never welcomed to the neighborhood in any fashion. 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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Realtors View Technology as Increasingly Valuable for Business, Competition
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Realtors Help Families Navigate Back-to-School Home Shopping
WASHINGTON (September 6, 2018) – Buying and moving into a new home is already a complicated process, but moving with children adds an entirely different set of requirements and stresses. The National Association of Realtors®' 2018 Moving with Kids report explores the unique needs of homebuyers and sellers with children under 18. "Buying a house is rarely just a financial transaction, especially when children are involved," said NAR President Elizabeth Mendenhall, a sixth-generation Realtor® from Columbia, Missouri and CEO of RE/MAX Boone Realty. "Parents are choosing the home they will raise their kids in, the schools their sons and daughters will attend and the neighborhood where they will play and make friends. Realtors® help buyers navigate every emotional and financial factor to ensure families find their dream home." When choosing a home, buyers with children tend to purchase larger homes than their child-free counterparts. The average buyer with children under 18 purchases a 2,100-square-foot home with 4 bedrooms and 2 bathrooms, while the average buyer with no children chooses a 1,750-square-foot home with 3 bedrooms and 2 bathrooms. Both groups prefer a single-family, detached house. Unsurprisingly, schools play a critical factor in the purchasing decisions of buyers with children. Fifty percent of buyers with children say the quality of a neighborhood’s school district is important, compared to 11 percent of buyers without children. Convenience and proximity to schools is also a crucial consideration to buyers with children, with 45 percent saying it is important factor. Just six percent of buyers without children agreed. More than a quarter of all buyers with children, 27 percent, said childcare expenses delayed the process of buying a home. Those expenses also have an impact on the buying process, forcing buyers with children to make compromises on the house they purchase. Thirty percent of these buyers compromised on the size of their home, 29 percent compromised on the price of the home and 22 percent on the condition of the home. Buyers with and without children equally relied on the help of an agent during the home buying process, with 87 percent of all buyers purchasing their home through a real estate agent. When it comes to selling a home, 24 percent of those with children choose to sell because their house is too small. Only 8 percent of people without children at home sold their house for the same reason. This is further demonstrated when sellers were asked what they want most from their agent. Sellers with children want their agents to sell their home within a specific timeframe (22 percent), more so than sellers without children (20 percent). However, sellers both with and without children expect their agents to provide a broad range of services and manage most aspects of their home sale, 80 and 79 percent respectively. For sellers with children, urgent is the word that most often describes their selling situation: 26 percent of sellers with children qualified their need to sell as 'very urgently' and needed to sell their home as quickly as possible. Compare that to only 14 percent of sellers without children.
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Home Buyers Forego Garages for School Districts
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Realtors Survey Shows Rising Membership, Younger Agents Joining Industry
WASHINGTON (July 19, 2018) — The income and sales volume of National Association of Realtors® members dropped slightly over the last year, but membership increased as younger members continue to enter the industry, according to the 2018 National Association of Realtors® Member Profile. This past year, there was a rise in new members from 1.22 million in March 2017 to 1.30 million in April 2018. The profile found that 29 percent of members have less than two years of experience, an increase from 28 percent. "While inventory shortages continue and home prices remain high, NAR has seen a whopping 6 percent increase in membership over the last year. Younger Americans are seeking business opportunities that working in real estate provides, but the overall trend is a slightly older age profile," Lawrence Yun, NAR chief economist stated. The survey's results are representative of the nation's 1.3 million Realtors®; members of NAR account for about half of all active real estate licensees in the U.S. Realtors® go beyond state licensing requirements by subscribing to NAR's Code of Ethics and standards of practice and committing to continuing education. Demographic Characteristics of Realtors® Realtors®' median age was 54 this year, slightly up from the last two years, at 53. Sixty-three percent of Realtors® are female, and the typical Realtor® is a 54-year-old white female who attended college and is a homeowner. The most common first careers reported are in management, business or finance, or in sales and retail, both at 16 percent. Only five percent of Realtors® reported real estate was their first career; 72 percent said that real estate was their only occupation, and that number jumps to 82 percent among members with 16 or more years of experience. Sixty-five percent of Realtors® are licensed sales agents (same as last year), 21 percent hold broker licenses (down from 22 percent), and 15 percent hold broker associate licenses (same as last year). New members tended to be more diverse than more experienced members; 25 percent of members with two years of experience or less were minorities, up from 22 percent last year. Business Activity of Realtors® According to the survey, the main factors that limit potential clients in completing transactions are difficulty finding the right property (35 percent), housing affordability (17 percent), and difficulty in obtaining mortgage financing (12 percent). Impacted by low inventory, the typical number of transactions decreased slightly from 12 transactions in 2016 to 11 transactions in 2017. Despite rising home prices again in 2017, the median brokerage sales volume decreased to $1.8 million in 2017 from $1.9 million in 2016. "A familiar story lingers from last year, as limited inventory continues to plague many housing markets across the country. For the fifth year in a row, the difficulty finding the right property has surpassed the difficulty in obtaining a mortgage as the most cited reason limiting potential homebuyers," said Yun. The typical Realtor® earned 12 percent of their business from repeat clients and customers (compared to 13 percent in 2017) and 17 percent through referral from past clients and customers (compared to 18 percent in 2017). Realtors®' web presence and use of social media has increased in recent years as a valuable marketing tool to reach clients and build online communities. Sixty-eight percent of members reported having their own website, the same number as last year. Members continue to be more comfortable with using the latest technology on a daily basis as 71 percent of members were on Facebook for professional use and 59 percent were on LinkedIn (same as last year). Finally, 80 percent reported that they are certain they would remain in the real estate business, while those who were newest to the profession were least certain they would remain; 5 percent of all members were uncertain whether they would remain in the business. Office and Firm Affiliation of Realtors® The survey looked at office and firm affiliation for members and found that over half of Realtors® continue to report that they work for an independent company. Fifty-eight percent of those are licensed as brokers and broker associates (up from 56 percent in 2017), and 49 percent are licensed as sales agents, an increase of one percent since 2017. Nearly nine in 10 members are independent contractors at their firms, the same as last year. Forty-four percent of members worked at one office firm while a quarter of members worked at a firm with two to four offices. The typical member had been with their current firm for four years. The 2018 National Association of Realtors® Member Profile is based on a survey of 200,964 members, which generated 12,495 usable responses, representing an adjusted response rate of 6.2 percent. Information about compensation, earnings, sales volume and number of transactions is characteristics of calendar year 2017, while all other data are representative of member characteristics in early 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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Consumer Interest Trends Towards Sustainability, say Realtors
WASHINGTON (April 24, 2018) — As consumer demand trends toward green and sustainable home features, Realtors® continue to work to promote environmentally responsible features and business practices. Sixty-one percent of Realtors® reported that consumers are interested in sustainability according to the National Association of Realtors®' REALTORS® and Sustainability 2018 report. The report, which stems from NAR's Sustainability Program, surveyed Realtors® about sustainability issues in the residential and commercial real estate markets and the preferences they are seeing in consumers in their communities. "Consumers continue to make it clear that environmentally friendly features and neighborhoods are an important factor in deciding where and what home to buy," said NAR President Elizabeth Mendenhall, a sixth-generation Realtor® from Columbia, Missouri and CEO of RE/MAX Boone Realty. "Realtors® are leaders in the conversation about real estate sustainability, energy conservation and resource efficiency, and will continue to promote environmentally conscious strategies and best practices that benefit not just our clients, but also our communities." Seventy-one percent of agents and brokers reported that promoting energy efficiency in listings is either somewhat or very valuable. When asked what they consider to be the top market issues and considerations regarding sustainability, agents and brokers listed understanding lending options for energy upgrades or solar panels (36 percent), improving the energy efficiency of existing housing stock (34 percent) and the lack of information and materials provided to real estate professionals (30 percent). The survey asked Realtors® how comfortable they are answering questions about home performance and efficiency; 39 percent said they are comfortable or extremely comfortable. Forty percent of respondents say they are confident or extremely confident in their ability to connect clients with green lenders. To account for growing consumer interest, 40 percent of respondents reported that their Multiple Listing Service, or MLS, have green data fields, compared to only 15 percent that do not. Among those that do have green data fields, 37 percent of respondents use them to promote green features, 27 percent to promote energy information and 16 percent to promote green certifications. A majority of respondents (80 percent) said that solar panels are available in their market, and 39 percent said that solar panels increased the perceived property value. Twenty-three percent of brokers indicated that tiny homes – homes that are 600 square feet or less – are available in their market. The transportation and commuting features that Realtors® stated are very or somewhat important to their clients include easy access to highways (82 percent), short commute times and distance to work (81 percent) and walkability (51 percent). For the first time questions about commercial real estate were included in the survey. Seventy percent of agents and brokers indicated that promoting energy efficiency in their commercial listings was very or somewhat valuable. The top building features that clients specified as very or somewhat important to their agents or brokers are utility/operation costs (80 percent), efficient use of lighting (64 percent) and indoor air quality (62 percent). NAR initiated the Sustainability Program as a platform for dialogue on sustainability for Realtors®, brokers, allied trade associations, and consumers. The program's efforts focus on coordination and articulation of NAR's existing sustainability resources, while also supporting a growing area of interest for consumers, helping members to assist home buyers and sellers. The REALTOR® Sustainability Program invited a sample of 112,220 active Realtors® to participate in an online survey pertaining to sustainability issues facing consumers and the industry, resulting in 6,834 usable responses. NAR plans to use this report to better benchmark Realtor® understanding of sustainability and create resources to help Realtors® better serve clients surrounding sustainability topics. 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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Millennial Buyers Feel the Brunt of Rate and Price Hikes
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Rising Rents Push Millennials to Become Homeowners
SANTA CLARA, Calif., March 30, 2018 -- This year, the typical spring buyer is on the hunt for a three bedroom, two bathroom home with a garage and up-to-date kitchen, according to a new survey released today from realtor.com®, a leading online real estate destination. The survey also revealed family needs and rising rents are motivating millennials to get into the market, while 55+ buyers are looking for privacy and comfort in their new home. "Although record-low inventory and high prices make this housing market unique, some classic features still top most shoppers' wish lists," said Danielle Hale, chief economist for realtor.com®. "At the same time, we found some clear differences in priorities. For instance, older buyers are concerned with privacy and being able to age comfortably, while millennials place more emphasis on family needs, stability, and personal expression." Based on online survey of more than 1,000 active buyers conducted in early March by Toluna Research, the survey provides insight into both the most sought after homes as well as the motivations underpinning what shoppers are looking for. Majority of buyers want space, multiple bathrooms, and a garage The survey found many commonalities among homebuyers of all ages. In fact, 44 percent of all respondents said they are looking for a three-bedroom home and 93 percent of respondents want at least two bathrooms. Additionally, 27 percent of all buyers rate a garage as one of the most important home features, ahead of an updated kitchen, 24 percent, and open floor plan, 20 percent. Older Buyers Want Privacy and Comfort; Millennials Favor Family and Self-Expression According to the survey, more than 20 percent of buyers 55 years and older said that privacy – having a space solely of their own – was their main goal for purchasing a home. That was followed by their motivation for physical comforts at 18 percent and stability, at 15 percent. By contrast, family needs took precedence for younger buyers. Fulfilling family needs took the top spot for millennial buyers, at 17 percent, followed by stability at 14 percent and personal expression at 13 percent. Only 12 percent of buyers younger than 55 cited privacy as their chief priority. Only 9 percent of 35- to 54-year-old buyers and 6 percent of 55+ cited personal expression as a main goal for purchasing a home. For Millennials, the Rent is Too High Twenty-three percent of buyers between 18 and 34 years old reported rising rent as a trigger for their desire to purchase a home – more than any other option. This corresponds with steep increases in rents across the country in recent years, especially in many high-cost urban areas that have become magnets for millennials. HUD data shows that rents were up in 85 of the top 100 metro areas, including 9 metros where rents were up by double-digit percent from a year ago. Millennials Like Contemporary and Colonial Homes; Older Buyers Prefer Ranches Among millennials who expressed a home-style preference – 11 percent didn't – contemporary and colonial homes took the top spots, each favored by 10 percent of respondents. On the other hand, ranches are the most popular home style for buyers 55 and older, favored by 28 percent, followed distantly by contemporary homes at 12 percent. Only 6 percent of millennials favor ranch homes. For the full results, please click here. Information about realtor.com®'s 2017 home buyer preference survey is available 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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Redfin Survey: 35% of Recent Homebuyers Bid on a Home Before Seeing it in Person
45% of Millennial Homebuyers Made an Offer Sight-Unseen; More than Half of Respondents in Los Angeles Did So SEATTLE, Feb. 26, 2018 -- Thirty-five percent of people who bought a home last year said they made an offer without first seeing it in person, according to a late-2017 survey commissioned by Redfin, the next-generation real estate brokerage. That's up from 33 percent in May 2017, and 19 percent in June 2016. This is based on a Redfin-commissioned survey conducted in November and December 2017, which included responses from 1,503 people who purchased a home in the previous 12 months. Today's report is the final issue of a three-part series on the results of the survey. The first and second reports focused on politics and the housing market. Millennial homebuyers were even more likely to make an offer sight-unseen, with 45 percent in November and 41 percent in May saying they had done so. These results likely reflect millennials' comfort relying on information they find online about homes for sale, neighborhoods they might not have visited in person, and the home-buying process in general. More than half (57%) of respondents who bought a home in Los Angeles last year made an offer sight-unseen. The prevalence of foreign investors in L.A. may have played a role in sight-unseen offers' popularity there. The market-by-market breakdown below shows that the trend was also driven by buyers in other competitive California metros, with 46 percent in San Diego and 44 percent in San Francisco having done so. People who can't get in to tour a home right away because they're busy or relocating from out of town often rely on tools like Redfin 3D Walkthrough and FaceTime® to explore the home itself, and the vast array of statistics, reviews, maps and articles online that can help a prospective buyer understand what it's like to live in a neighborhood. However, in the case of offering sight-unseen, the agent can be a buyer's greatest resource. Angela Hunter, a Redfin agent in Omaha, worked with a family relocating from Jacksonville, Florida to Offutt Air Force Base in Bellevue, Nebraska. "This family had a only a few weeks to find a home and they did not want to live on-base or rent," Hunter said. "Because the wife was 8 months pregnant at the time, they needed a move-in ready home within 20 minutes of the base. While conducting video tours with them, I was very careful to explain things that they would not be able to experience virtually, like the sounds, smells, and textures. I pointed out flaws that are hard to detect through video so that nothing would be a surprise to them once they visited in person. It's not the easiest way to shop for a home, but together we found the perfect match." With no end to the housing shortage in view and more millennials entering the housing market, the trend toward sight-unseen bids is likely to grow in 2018. To read the full report, complete with data, charts and a 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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Redfin Survey: Just 6% of Homebuyers Would Cancel Plans to Buy if Mortgage Rates Surpassed 5%
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Coldwell Banker Global Luxury Releases Annual Review of Luxury Real Estate in 2017
"The Report" Profiles Nearly 50 Power Markets in Luxury Real Estate and Highlights Markets to Watch MADISON, N.J., Feb. 13, 2018 -- Today, Coldwell Banker Real Estate LLC and the Coldwell Banker Global Luxury® program released "The Report," which profiles nearly 50 "Power Markets" where affluent buyers are flocking for lifestyle and culture. "Power Markets" include both well-established and unexpected luxury markets based on indicators such as airport accessibility, ease of doing business, a prestige brand presence and a housing stock that prioritizes privacy, views and exclusivity. Beyond providing a behind-the-scenes look into the nation's leading luxury real estate markets, insights collected from The Report's Power Markets list have uncovered the stories behind certain standout markets, and why a few unexpected markets might become the next up and coming hot spots for luxury real estate. To narrow down the top five Power Markets to Watch for Buyers and Sellers, as well as other key trends for affluent investors, the Coldwell Banker Global Luxury® program collaborated with The Institute for Luxury Home Marketing to analyze the top 5 percent and 10 percent of active and sold listings in 2017. Top 5 Luxury Buyer "Power Markets" to Watch in 2018 Boca Raton, Fla. Miami, Fla. Park City, Utah Santa Barbara, Calif. Scottsdale, Ariz. Top 5 Luxury Seller "Power Markets" to Watch in 2018 Denver, Colo. Nashville, Tenn. San Francisco, Calif. Seattle, Wash. Silicon Valley, Calif. Based on the median prices for the top 10 percent of homes sold in the Power Markets, key findings include: Shortest Days on Market: Seattle boasted the shortest median days on market - nine days - for single family homes. Silicon Valley and Washington, D.C. were tied for first place for condos, both with a median of nine days on market. Seattle came in third for condos at 14 median days on market. Most Affordable (Price per Square Foot): The most affordable luxury market for single family homes is tech center Raleigh-Durham, N.C., where the median price per square foot is $171. For condos, Detroit suburbs in Oakland County, Mich. have the lowest median price per square foot at $196. Most Expensive (Price per Square Foot): On the other end of the spectrum, the most expensive market is the Los Angeles-Beach area, which includes neighboring towns such as Santa Monica and Malibu, where the median price per square foot for the top five percent of single family homes is $2,044. Aspen and Vail, Colo. took the top spot for condos at $1,497 median price per square foot. On Amazon's HQ2 Radar: Amazon has launched a high-profile quest to find its second corporate headquarters, which is likely to bring an influx of investment and new residents to the selected market. A staggering 14 out of 20 Amazon HQ2 finalists are also in The Report's Power Markets, including Atlanta, Austin, Boston, Chicago, Dallas, Denver, Fairfax, Va. (NOVA), Los Angeles, Miami, Montgomery County, Md., Nashville, New York City, Raleigh and Washington, D.C, signaling enormous potential for growth in these already burgeoning markets over the coming years. "The gold mine of insights derived from The Report provide us with a comprehensive birds-eye view of what's happening in luxury real estate," said Charlie Young, president and CEO of Coldwell Banker Real Estate LLC. "Prices leveled off from the record-breaking increases we saw from 2014 to 2016, with inventory of single-family-detached luxury homes rising 30 percent last year. And while luxury real estate in the United States has always been a tale of two coasts, we were pleased to uncover many up-and-coming luxury hubs across the country, including tech towns like Raleigh-Durham and cultural capitals like Nashville, shaking things up in the luxury market." "Coldwell Banker is proud to unveil The Report, a one-of-a-kind report that blends industry data with insights from our greatest resource, our Luxury Property Specialists across the country," said Craig Hogan, vice president of luxury for Coldwell Banker Real Estate LLC. "We found that luxury real estate was strong, stable and consistent in 2017. This market intelligence is critical for agents based in both established and unexpected luxury hubs, especially as they gear up for what is expected to be another strong year in luxury real estate in 2018." About The Report Designed to be a definitive guide for international high-end property buying and selling, The Report adds insider intelligence to strong industry research by combining anecdotal insights from local market experts affiliated with the Coldwell Banker® brand, as well as The Institute for Luxury Home Marketing, Wealth-X, Unique Homes and other leading luxury insiders. More information on the following can be found in the full report. Significant trends from the Power Markets 2017 landmark listings and sales Growth drivers among ultra-high-net-worth growth Top luxury property must haves Domestic and internationals spotlights About Coldwell Banker Global Luxury® Launched in early 2017, the Coldwell Banker Global Luxury® program legacy traces its roots to Coldwell Banker Previews International® and the Previews® program, a world leader in luxury real estate since 1933. Coldwell Banker Global Luxury Property Specialists are an exclusive group within the Coldwell Banker organization, making up under ten percent of independent sales associates affiliated with the brand worldwide. Coldwell Banker Global Luxury Property Specialists conducted approximately 25,000 transactions of homes priced at $1 million or more in 2016. On average, the Coldwell Banker brand handles approximately $130 million in luxury home sales every day. Coldwell Banker and the Coldwell Banker logo are registered mark owned by Coldwell Banker Real Estate LLC. Coldwell Banker Global Luxury and the Coldwell Banker Global Luxury logo are service marks owned by Coldwell Banker Real Estate LLC. Each office is independently owned and operated.
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Teams: Why they form, what's working and how they succeed
If you are in a team, or teams are a big force in your market, this is worth your attention. We are sharing information with hundreds of teams, their agents and those who compete with teams. The focus is on how they outpaced other segments in growth and the impact on the real estate profession. We'll be sharing what we learn on new team structures, systems and geographic expansion. We'll also unpack what is making teams thrive - and the best strategies to compete with teams, join one or grow one. Take the MVP team quiz today, and get the findings, attend a private webinar and receive a discount coupon from realtor.com!
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New consumer research from Realsuite resets the bar for real estate agents
White paper gives agents key insights to level up through technology and service SANTA CLARA, Calif., Jan. 18, 2018 -- Move, Inc. today released new consumer research and insight from the team behind Realsuite, its new brand and business solutions platform for real estate professionals that underscores the importance of finding the right balance between personalization and automation in serving today's clients. The white paper, titled Shift Happens: How to capture, communicate and close in today's "on demand" world, puts today's best practices under the microscope, revealing new perspective around buyer and seller expectations at each stage in the journey. It also uncovers stark realities about some of the most common practices within the customer lifecycle, making the case that business-as-usual in today's market is anything but. To download the white paper, visit www.realsuite.io/research. The proprietary insight combines the findings from two research initiatives conducted in 2017 among nationally representative samples of consumers who purchased or sold a home, were currently searching for a new home, or submitted an inquiry on realtor.com, together with data and case studies from business, industry and academia. Among the insights: Just 14 percent of consumers are likely to respond to a communication they perceive to be an automated reply Three of the top five qualifiers consumers use when selecting an agent cannot be replaced by technology Consumers want more transparency every step of the way, and three out of four buyers want an online system to track the offer-to-close process Agents' insider knowledge such as upcoming assessments, HOA fees and neighborhood detail is just as critical to buyers as pricing trends, recent sales and days on market "This is a critical time for real estate professionals," said Luke Glass, executive vice president, industry platforms for Move, which also operates leading online real estate destination realtor.com® under a perpetual license from the National Association of Realtors®. "The emergence of technology and automation onto the scene has greatly improved the real estate process in some ways, yet these findings reveal that many agents are failing to leverage technology or to use it properly at key points along the journey, to the detriment of the agent-client relationship." At the same time, the research also underscores that the agent's personal knowledge and touch remains a vital and irreplaceable part of the process. Together, the insights present the case for incorporating technology with personalized service, in order to meet the bar of consumer expectation and deliver optimal value. "Finding the right balance between automation and personalization is critical to an agent's ability to deliver an exceptional experience, yield more closed business and bring more repeat and referral business into the pipeline," said Glass. The "Realsuite platform offers a single solution to help them with this balance and empower them to spend more time with their clients, doing what they do best." Move has owned or operated some of the best-known professional software brands in the real estate industry including Top Producer, FiveStreet and Reesio and has aligned with leading SaaS providers for increasingly seamless productivity offerings over the years. In 2016, Move set a new benchmark in end-to-end technology services by forging lead-to-commission integrations linking lead routing and response, CRM, transaction management, forms, esignature software and accounting systems. Move unveiled the Realsuite platform and beta experience in the fall of 2017, and currently has more than 1,100 beta participants. For more information about RealsuiteSM, visit www.realsuite.io. About Move, Inc. Move, Inc., a subsidiary of News Corp [NASDAQ: NWS, NWSA] [ASX: NWS, NWSLV], provides unsurpassed real estate information, tools and professional expertise across a family of websites and mobile experiences for consumers and real estate professionals. The Move network includes realtor.com® as well as Doorsteps®, Moving.com™ and SeniorHousingNet℠, and offers a complete solution of software products and services to help real estate professionals serve their clients and grow their businesses in a digital world.
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Millennials and Silent Generation Drive Desire for Walkable Communities, Say Realtors
WASHINGTON (December 19, 2017) — It is no longer just millennials propelling interest in walkable communities. According to a new report from the National Association of Realtors®, members of the silent or greatest generation, those born before 1944, also prefer smaller homes in neighborhoods with easy walks to shops and restaurants. The 2017 National Community and Transportation Preference Survey, which polled adults from across the U.S. about what they are looking for in a community, found that 62 percent of millennials and 55 percent of the silent generation prefer walkable communities and short commutes, even if it means living in an apartment or townhouse. Gen-Xers and baby boomers still show a strong preference toward suburban living, with 55 percent of both groups saying that they have no problem with a longer commute and driving to amenities if it means living in a single-family, detached home. "Realtors® understand that when people buy a home, they are not just looking at the house, they are looking at the neighborhood and the community," said NAR President Elizabeth Mendenhall, a sixth-generation Realtor® from Columbia, Missouri and CEO of RE/MAX Boone Realty. "While the idea of the 'perfect neighborhood' is different for every homeowner, more Americans are expressing a desire to live in communities with access to public transit, shorter commutes and greater walkability. Realtors® work tirelessly at improving their communities through smart growth initiatives that help transform public spaces into these walkable community centers." According to the survey, the majority of Americans, 53 percent, would prefer to live in communities containing houses with small yards but within easy walking distance of the community's amenities, as opposed to living in communities with houses that have large yards but they have to drive to all amenities. This up from 48 percent in 2015. However, responders with school-age kids in the home, regardless of their generation, show a greater preference for conventional suburban communities. Sixty percent of all responders with kids in school said they prefer larger homes and yards that require driving, and that number jumps to 63 percent for millennials with kids in school. The survey also found that a majority of Americans, 88 percent, are very or somewhat satisfied with the quality of life in their communities, and 51 percent of those people believe that the walkability of their neighborhood contributes to that quality of life. The report found that women, particularly young women, prioritize walkability and public transit more than older or younger men. Fifty-four percent of young women said that sidewalks and places to take walks is a very important factor in deciding where to live, and 39 percent said the same about having public transit nearby. However, when it comes to a short commute to work, youth was a greater indicator of preference than gender; 49 percent of young women and 48 percent of young men said being within a short commute to work was a very important factor in deciding where to live. While 60 percent of adults surveyed live in detached, single-family homes, 21 percent of those respondents said they would rather live in an attached home and have greater walkability. Sixty percent of those surveyed also said that they would be willing to pay a little or a lot more to live within walking distance of parks, shops and restaurants. When selecting a new home, respondents indicated that they would like choices when it comes to their community's transportation options. Eighty-six percent of survey participants said that sidewalks are a positive factor when purchasing a home, and 80 percent place importance on being within easy walking distance of places. When it comes to respondents' thoughts on transportation priorities for the government, 73 percent indicated that maintaining and repairing roads and bridges should be a high priority, with expanding roads to help alleviate or reduce congestion as the next highest priority, at 54 percent. The survey of 3,000 adult Americans living in the 50 largest metropolitan areas was conducted by American Strategies and Meyers Research in September 2017. 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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HOME Survey: Housing and Economic Optimism Cools at Year's End
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[Infographic] Homeowners Say Changing Homeownership's Tax Incentives Restricts Mobility, Causes Financial Strain
WASHINGTON (December 12, 2017) – An overwhelming majority of homeowners would take advantage of the mortgage interest deduction and state and local property tax deductions if they were to purchase a new home, and a notable share said that the proposed changes to these tax incentives would affect their budget and desire to move in the future. This is according to new data from the National Association of Realtors®' fourth quarter Housing Opportunities and Market Experience (HOME) survey. The findings clearly indicate that the proposed changes in the current House and Senate tax reform bills undercut the incentive of owning a home and would have a detrimental effect on many homeowners' financial situation and future desire to move: 85 percent would deduct both mortgage interest and property taxes if they bought a new home If changes to these deductions were made: 48 percent would experience financial strain 30 percent would be reluctant to move "Homeownership is an aspirational goal for millions of Americans, but getting there isn't always easy. Middle-class families count on tax incentives like the mortgage interest deduction and the state and local tax deduction to make homeownership a more affordable prospect," said NAR President Elizabeth Mendenhall, a sixth-generation Realtor® from Columbia, Missouri and CEO of RE/MAX Boone Realty. "Realtors ® will continue to advocate for these and other important provisions as the tax reform debate continues." The remaining findings from NAR's fourth quarter HOME survey will be released Monday, Dec.18. 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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Redfin Predicts Homebuyers Will Leave High-Tax States in 2018 If SALT Deductions Are Eliminated
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CoreLogic Reports Homeowner Equity Increased by Almost $871 Billion in Q3 2017
December 07, 2017, Irvine, Calif. – CoreLogic®, a leading global property information, analytics and data-enabled solutions provider, today released its Q3 2017 home equity analysis which shows that U.S. homeowners with mortgages (roughly 63 percent of all homeowners*) have collectively seen their equity increase 11.8 percent year over year, representing a gain of $870.6 billion since Q3 2016. Additionally, homeowners gained an average of $14,888 in home equity between Q3 2016 and Q3 2017. Western states led the increase, while no state experienced a decrease. Washington homeowners gaining an average of approximately $40,000 in home equity and California homeowners gaining an average of approximately $37,000 in home equity (Figure 1). On a quarter-over-quarter basis, from Q2 2017** to Q3 2017, the total number of mortgaged homes in negative equity decreased 9 percent to 2.5 million homes, or 4.9 percent of all mortgaged properties. Year over year, negative equity decreased 22 percent from 3.2 million homes, or 6.3 percent of all mortgaged properties, from Q3 2016 to Q3 2017. "Homeowner equity increased by almost $871 billion over the last 12 months, the largest increase in more than three years," said Dr. Frank Nothaft, chief economist for CoreLogic. "This increase is primarily a reflection of rising home prices, which drives up home values, leading to an increase in home equity positions and supporting consumer spending." Negative equity, often referred to as being "underwater" or "upside down," applies to borrowers who owe more on their mortgages than their homes are worth. Negative equity can occur because of a decline in a home’s value, an increase in mortgage debt or both. Negative equity peaked at 26 percent of mortgaged residential properties in Q4 2009 based on CoreLogic equity data analysis, which began in Q3 2009. The national aggregate value of negative equity was approximately $275.7 billion at the end of Q3 2017. This is down quarter over quarter by approximately $9.1 billion, or 3.2 percent, from $284.8 billion in Q2 2017 and down year over year by approximately $9.5 billion, or 3.3 percent, from $285.2 billion in Q3 2016. "While homeowner equity is rising nationally, there are wide disparities by geography," said Frank Martell, president and CEO of CoreLogic. "Hot markets like San Francisco, Seattle and Denver boast very high levels of increased home equity. However, some markets are lagging behind due to weaker economies or lingering effects from the great recession. These include large markets such as Miami, Las Vegas and Chicago, but also many small- and medium-sized markets such as Scranton, Pa. and Akron, Ohio." *Homeownership mortgage source: 2016 American Community Survey. **Q2 2017 data was revised. Revisions with public records data are standard, and to ensure accuracy, CoreLogic incorporates the newly released public data to provide updated results. For ongoing housing trends and data, visit the CoreLogic Insights Blog: http://www.corelogic.com/blog. About CoreLogic CoreLogic (NYSE: CLGX) is a leading global property information, analytics and data-enabled solutions provider. The company's combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.
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Experts Highlight Mix of Challenges, Bright Spots for Homeownership at Realtors, S&P Global Joint Event
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zavvie Releases First HyperLocal Real Estate Survey Results
WAV Group research shows "great disconnect" as huge opportunity emerges Denver, CO – December 4, 2017 – Real estate brokers and agents recognize that above all else, consumers want neighborhood expertise. But so far, they have not adapted their marketing practices to embrace the HyperLocal movement sweeping real estate. That's the findings of a new research study released today by zavvie, Colorado's hottest new real estate tech startup. The results from real estate's first HyperLocal Survey, commissioned by zavvie and conducted by leading real estate research and consulting firm, WAV Group, found that a stunning 95% of agents, teams and broker-owners and real estate execs say local market knowledge is either "Very Important" or "Extremely Important" to their consumer clients. Two-in-three say it is "Extremely Important." But as Lane Hornung, CEO and Co-founder of zavvie points out, there is a "great disconnect" that emerges from the HyperLocal study. "Agents, teams and broker-owner and execs are saying one thing, and are doing another," said Hornung. "The survey clearly shows their marketing activities are not consistent with HyperLocal being an actual priority." Hornung explains that HyperLocal agents and teams focus their marketing activities specifically on a neighborhood or group of neighborhoods, which Hornung says is generally defined as 3,000 homes or about 10,000 people. "But when we asked how many actually specialize in neighborhoods, just 12 percent raised their hand," he said. "In fact, the study found that most real estate professionals are doing the exact opposite of HyperLocal marketing: they are casting the largest net, trying to throw draw their marketing circle as broad as possible." Highlights of the survey results are available at http://www.zavvie.com/hyperlocalsurveyhighlights. Not Local Enough More than 60% of individual agents and 65% of teams say they "specialize" in a large regional or metro area. "It's an oxymoron to specialize in a metro area," added Stefan Peterson, COO of zavvie, who co-founded the company with Hornung. "You can't even specialize in a city or a town – its just too big of an area, geographically to be a 'go-to expert' that knows every single home in that size of a market. Yet that's what folks were claiming," he said. More evidence of this disconnect between the views of agents, teams and brokerages and their behaviors is shown by how few agents and teams report using HyperLocal marketing tools that let them share their expertise, such as "Nextdoor," a "Blog" or a "Neighborhood Website." "All of these are core tools of a typical HyperLocal agent's marketing system," said Peterson. Yet the survey found only 7% have a Blog, only 15% have a Neighborhood Website, and fewer than one in five (17%) are on Nextdoor. Yet, more than a third — 38% of all respondents — said they were "Extremely Knowledgeable" about local happenings, events, and changes that affect the real estate market, that was described in the survey as: "No one is more 'in the know' than I am." Moreover, 42% said they were "Very Knowledgeable." "This begs the question, 'If all of these agents, teams and brokerages have all this local knowledge, how is anyone going to know it if they are not sharing it in a Blog or on Nextdoor?'" Peterson said. HyperLocal Highly Valued Agents, teams and broker-owners and execs place tremendous value on local customer reviews from sites such as Zillow, Yelp, Nextdoor and Google. More than 60% said reviews on these sites were "Very Important" or "Extremely Important." Moreover, 73% said Facebook is their number one marketing tool they use to connect with customers in their local farm area. Yet once again, there is a disconnect between agent, team and broker-owner and real estate executive beliefs and their behaviors, as evident in the survey's social media findings. Some 44% of agents and 50% of teams said that social media is only "Somewhat Important" or "Not Important" to their business. Moreover, two social media tools landed in the bottom five marketing tools that agents use to connect with customers in their local farm area; Instagram was selected by only about 1 in 10 and Twitter was selected by only about 1 in 20. "The truth is, for busy agents, social media and HyperLocal marketing tools and activities such as Neighborhood Websites and Blogs are hard — they typically take a considerable amount of time and resources in order to create and maintain," said Peterson. "But for those who invest the time and the effort, the deeper data we collected, which we will release with a new HyperLocal Marketing White Paper early next year, shows that HyperLocal marketing delivers significant results for those that employ it." The most encouraging sign in the survey, Hornung said, was the overall positive response to interest in "an automated social media platform focused specifically on the local neighborhoods. " More than two-thirds of respondents expressed some interest or said they are very interested, with an additional 13.5% said they are "extremely interested." "This suggests the great disconnect the survey identifies may be very well related to the amount of effort and discipline a HyperLocal marketing focus requires," Hornung said. "So if brokerages and teams can deploy an "easy button" for HyperLocal marketing, it sounds like they not only want to, they will." About the HyperLocal Survey The study was conducted from September 28 to October 2, 2017, with a single email invitation sent to active individual agents, teams and broker-owners and execs. More than 425 responses were received with 350 complete responses for all survey questions. There were responses from 350 real estate professionals, including individual agents (52%), broker-owners and real estate executives (33.5%), team members (10%) and other industry professionals (5.5%). About zavvie zavvie is the nation's first HyperLocal marketing platform, the place where savvy, trusted local real estate agents go to tap into the most powerful way for a real estate agent to grow and maintain a successful real estate business. zavvie delivers to brokerages, teams and agents, a complete social media and HyperLocal system for top agents to build their listing business and make – or keep –them the dominant agent in their neighborhood. Discover more at zavvie.com.
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First-time Buyers Stifled by Low Supply, Affordability: 2017 Buyer and Seller Survey
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70 Percent of Realtors® Self-initiated Real Estate Career, Identify People Skills as Most Important
WASHINGTON, Oct. 18, 2017 -- The majority of Realtors® self-initiated their career in real estate and identify strong people skills as the most important trait to be a successful agent, according to the National Association of Realtors® new research report, Choosing a Career in Real Estate: A Perspective on Gender, Race and Ethnicity. The Choosing a Career in Real Estate report was developed to discover how and why Realtors®, members of the National Association of Realtors®, chose real estate as a career and to examine gender, race and ethnicity in real estate. "A career in real estate offers a work environment and diversity of opportunity that attracts all types of individuals, and the report's findings are a reflection of that," says NAR president William E. Brown, a second-generation Realtor® from Alamo, California and founder of Investment Properties. "That being said, NAR remains committed to ensuring that its membership continues to reflect America's growing diversity." Choosing a Career in Real Estate According to the report, nearly 70 percent of Realtors® self-initiated their career in real estate based on interest in the industry, and almost 20 percent were referred by a friend. Sixty-nine percent of males self-initiated their career compared to 65 percent of females, and 20 percent of women were referred by a friend, compared to 18 percent of men. Seventy-five percent of Black and African American members self-initiated their career in real estate – more than any other ethnic group – while 27 percent of Asian and Pacific Islander members had their career in real estate referred by a friend, also more than any other group. Attractive Aspects of Real Estate Nearly seven in 10 Realtors® found flexible hours to be the most attractive aspect about being a real estate agent, followed by interest in the industry (64 percent), working with people (54 percent), entrepreneurial field (50 percent) and salary possibilities (49 percent). The report also surveyed Realtors® about important skills to possess to be successful in real estate. People skills (86 percent), self-motivation (84 percent) and negotiation skills (73 percent) ranked as the most important skills in residential real estate, while negotiation skills (69 percent), problem solving skills (63 percent) and analytical reasoning (62 percent) were viewed as the top skills for commercial real estate professionals. The report also surveyed members on whether they began their career in real estate or if they transitioned into their current position from another industry, and the majority of Realtors® (82 percent) started their professional career doing something outside of real estate. Real estate is more often the second career for females (51 percent) and the third career for males (36 percent). Sixty-one percent of Black and African American members stated that real estate is more often a second career, more than any other ethnic group. Male members were more likely to have a previous career in management or sales, and in contrast, female members were more likely to have a previous career in management, office support and education. Income Females make up 63 percent of NAR's membership and those who work exclusively in residential have a median gross income from real estate of $46,700, compared to $54,600 for men. Women tend to be younger in age and more likely to work part-time. When it comes to residential business activity, women had a median of eight sales transactions, compared to seven for men. Asian and Pacific Islander members working exclusively in residential real estate have the highest median gross annual income of all ethnic groups at $56,800, followed by White and Caucasian members at $54,200, Hispanic and Latino members at $41,700, and Black and African American at $23,000. Those who work in dual specialties, both residential and commercial, tend to have higher gross median incomes at $89,300. Specialty Seventy percent of female members work exclusively in residential real estate, compared to 45 percent of male members. Fifteen percent of males work exclusively in commercial real estate, compared to only 4 percent of females. Hispanic and Latino members make up the largest share of those working exclusively in residential real estate (71 percent), and Asian and Pacific Islander members make up the largest share working in both commercial and residential real estate (37 percent). Twelve percent of White and Caucasian members work only in commercial real estate, compared to 3 percent or less for all other ethnic groups. Dual specialists typically have 10 residential transactions and one commercial transaction. Dual specialists tend to have more experience in residential real estate than those working exclusively in residential real estate and are more likely than others to work in small towns, rural areas and resort areas. Race and Ethnicity in Real Estate Comparing the activity of each ethnic group in real estate, the report finds that White and Caucasian members make up 82 percent of all NAR members and had the most transactions and highest sales volume. Asian and Pacific Islander members had the highest median gross income, sold the most expensive homes and had the highest median dollar value of residential sales transactions. They also had the second highest median years of experience (10 years) and the second largest group of members over 60 years in age (29 percent). Black and African American members have the lowest median gross income and sell the least expensive homes, however, they make up the largest group working less than 20 hours a week and are also the largest group to receive less than half their overall income from residential real estate. These findings indicate that the income of Black and African American members is more diversified outside the industry, and that real estate is only a part-time source of income. Hispanic and Latino members are the largest group specializing exclusively in residential real estate (71 percent), the largest group with less than one year of experience (25 percent) and are the youngest members. Hispanics and Latino members have the second most median residential sales transactions and sold the third most expensive homes, according to the report. NAR offers many resources to promote diversity in its Realtor® membership through its Equal Opportunity and Cultural Diversity program, including education, grants, partnerships and events. The NAR Diversity Initiative Grant Program provides grants to help fund outreach efforts to minority consumers and bring more diversity into Realtor® membership and leadership. NAR's diversity course, At Home with Diversity, gives Realtors® tools and training to better serve today's diverse consumers. NAR has also successfully built partnerships with housing groups and professional real estate organizations representing the multicultural community. Choosing a Career in Real Estate: A Perspective on Gender, Race and Ethnicity report was based on a survey sent from March to April 2017 to 144,000 members of the National Association of Realtors®. A representative sample of 6,363 members responded to the survey, an adjusted response rate of 4.4 percent. 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 Survey Indicates Haunted Homes Don't Always Have to be a Deal Breaker
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Homeowners Who Remodel Gain Equity and Enjoyment, Say Realtors
WASHINGTON (September 28, 2017) — Homeowners who take on remodeling projects gain not only equity and more resale value in their home, they are also more likely to find satisfaction and enjoyment from their home, according to a new report from the National Association of Realtors®, with insights from the National Association of the Remodeling Industry. The 2017 Remodeling Impact Report, the second of its kind from NAR, surveyed Realtors®, consumers who have completed remodeling projects, and members of the National Association of the Remodeling Industry. The report reveals the top remodeling projects, as well as well as the increased value – both financially and emotionally – that specific projects bring to homeowners once completed. After completing a remodeling project, 75 percent of owners have a greater desire to be in their home, 65 percent say they have increased enjoyment in their home, and 77 percent feel a major sense of accomplishment when thinking of their completed project. Fifty-six percent felt happy when they see their completed projects, and 39 percent say they feel satisfied. "Realtors® understand which remodeling projects and home upgrades will bring the most value to homeowners, whether they are remodeling with the hope of impressing potential buyers, bringing in higher offers or gaining more equity in the home," said NAR President William E. Brown, a Realtor® from Alamo, California and founder of Investment Properties. "Realtors® also understand that many of these projects are undertaken solely to get more enjoyment from spending time at home. No matter the objectives, Realtors® have unique and invaluable insights into how renovations and remodeling will bring the most benefit to homeowners." Interior projects. For owners looking to sell their home, Realtors® named complete kitchen renovations, kitchen upgrades, bathroom renovations and new wood flooring as the interior projects that most appeal to potential buyers. When asked which interior projects yield the largest financial return upon resale, Realtors® named hardwood floor refinishing (recovers 100 percent of project costs upon resale), new wood flooring (91 percent of costs recovered) and insulation upgrades (76 percent of costs recovered). Bathroom renovations and adding a new bathroom yielded the smallest financial return upon resale, recouping approximately 50 percent of project costs. Exterior projects. When it comes to exterior projects, Realtors® said new roofing will recover 109 percent of costs upon resale, more than any other project in the report. New roofing was also named the exterior project that most appeals to buyers, followed by new vinyl windows, a new garage door and new vinyl siding. Brown also reminds consumers that exterior projects are just as, if not more, important than interior projects when it comes time to sell. "A home's exterior is its first impression to potential buyers, so any project that improves curb appeal will yield plenty of bang for the buck," he said. Satisfaction from projects. When it comes to the enjoyment homeowners get from projects, several projects received a perfect Joy Score of 10; Joy Scores range from 1 and 10, and higher figures indicate greater joy from the project. Projects with a perfect Joy Score of 10 included both interior and exterior project of all price ranges, such as a new master/owner's suite, with an estimated cost of $125,000 for a fully makeover, and new steel front doors, with an estimated cost of $2,000. While Americans spent $340 billion on home remodeling in 20151, many homeowners find the idea of attempting a remodeling project too overwhelming to take on. Thirty-five percent of homeowners in the U.S. said they would rather move than remodel their current home. Owners in urban areas are the least likely to take on a project, with only 52 percent saying they would be willing to remodel their home, compared to 55 percent in suburban areas and 70 percent for owners in rural areas. "Even though a remodeling project may seem overwhelming at the onset, working with a professional, qualified remodeler who has the required experience and training can make a big difference," said Tom Miller, president of the National Association of the Remodeling Industry. "This year's report confirms how remodeling can increase home value and day-to-day enjoyment. I can't emphasize enough how important it is to work with a contractor you can trust who adheres to a strict code of ethics and can help define a realistic budget. Get the project done right with a NARI member contractor." 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. The National Association of the Remodeling Industry is the medium for business development, a platform for advocacy and the principal source for industry intelligence. NAR connects homeowners with its professional members and provides tips and tricks so that the consumer has the positive experience of remodeling done right.
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Consumers are Navigating Tides of the U.S. Real Estate Market in New Homeowner Sentiment Survey
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HOME Survey: Economic and Financial Outlook, Attitudes About Home Buying and Selling on the Rise
WASHINGTON (September 25, 2017) — Existing-homes sales have retreated in four of the past five months, but new survey findings from the National Association of Realtors® indicate it is not because of a lack of confidence from consumers about buying and selling a home, or based on their views about the direction of the economy and their finances. That's according to NAR's third quarter Housing Opportunities and Market Experience (HOME) survey, which also found that two-thirds of households think saving for a down payment is challenging, and roughly half of renters expect to pay more in rent next year. This quarter, there appears to be a revival from renters that now is a good time to buy a home. After dipping to roughly half of renters last quarter (52 percent), the share who believe now is a good time climbed to 62 percent (60 percent a year ago). Overall, current homeowners (80 percent), households with higher incomes and those living in the more affordable Midwest and South regions are the most optimistic about buying right now. Amidst the steady gains in home values seen in many parts of the country, the share of homeowners that believe now is a good time to sell is also inching higher. Eighty percent of homeowners think now is a good time to list their home for sale (a new survey high), which is up from last quarter (75 percent) and even more so than a year ago (67 percent). Lawrence Yun, NAR chief economist, says it is great news that homebuyer and seller optimism is advancing, but it remains unclear if it will actually translate to more sales. "The housing market has been in a funk since early spring because of the ongoing scarcity of new and existing homes for sale," he said. "The pace of new home construction has not meaningfully broken out this year, and not enough homeowners at this point have followed through with their belief that now is a good time to sell. As a result, home shoppers have seen limited options, stiff competition and weakening affordability conditions." Added Yun, "Buyer demand is robust this fall, but the disappointing reality is that sales will continue to undershoot their full potential until supply levels significantly improve." Economic and financial outlook brightens More households this quarter (57 percent) believe the economy is improving compared to the second quarter (54 percent) and a year ago (48 percent). Continuing the complete reversal from a year ago, those living in rural and suburban areas were more optimistic about the economy than respondents residing in urban areas. A majority of homeowners and those with incomes above $50,000 also had a positive outlook on the economy. The rebound in economic confidence this quarter are also giving households increased assurances about their financial situation. The HOME survey's monthly Personal Financial Outlook Index, showing respondents' confidence that their financial situation will be better in six months, jumped from 57.2 in June to 62.0 in September. A year ago, the index was 58.6. "Jobs are plentiful, wage growth is finally showing signs of life, home values are up considerably in the past five years and the stock market is at record highs," said Yun. "The economy is not perfect, and growth overall is still sluggish, but the financial health of the typical household looks as healthy as it has since the recession." Most renters likely to continue renting – even if their rent increases This quarter, non-homeowners were asked if they expect their rent to increase over the next year, and given their current financial situation, what impact paying more in rent would have on their living arrangements. Roughly half of current renters expect to pay more in rent next year (51 percent). If in fact their rent does increase, most will either resign their lease anyway (42 percent) or move to a cheaper rental. Only 15 percent of respondents will consider buying a home. "Even though the typical down payment of a first-time buyer has been 6 percent for three straight years, two-thirds of respondents indicated that saving for one is difficult right now," said Yun. "Rents and home prices have outpaced incomes in the past few years, and this is undoubtedly impacting their ability to put aside savings for a home purchase, even if they increasingly believe it's a good time to buy. Heading into next year, higher home prices and limited inventory in the affordable price range will likely continue to hold back a share of renters who would prefer to be homeowners." About NAR's HOME survey In July through early September, 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 2,709 household responses are represented. 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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Student Debt Delaying Millennial Homeownership by 7 Years
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New Think Tank Group Identifies Solutions to Evolve the MLS
SAN JUAN CAPISTRANO, CA (SEPTEMBER 07, 2017) - Despite the fact that real estate Multiple Listing Services (MLS) are critical to the real estate industry, much of their structure and technology is inefficient and outdated. However, 28 real estate brokers and leaders have proposed solutions to transform the MLS of today into the future. These findings are being released today in an all-encompassing new study, the "MLS 2020 Agenda." The study was commissioned by The MLS RoundTable, a new think tank comprised of seven of the foremost MLS member organizations – including the nation's three largest – which collectively serve approximately 300,000 real estate professionals. T3 Sixty, the leading management consulting company in the real estate industry, undertook the study. The "MLS 2020 Agenda" features the frank opinions from leaders representing the most important MLS constituents, from customers and MLS leaders, to real estate brokers/owners like Lennox Scott and Helen Hanna Casey, technology vendors like CoreLogic and Black Knight, association leaders like the newly appointed CEO of the National Association of Realtors, Bob Goldberg, as well as other large players such as Zillow, The Realty Alliance and the Real Estate Standards Organization (RESO). "We are well beyond disruption," says David Charron, Chief Strategy Officer of Bright MLS and spokesperson for The MLS RoundTable. "MLSs can no longer stand down while their brokers continue to bear the brunt of the challenges facing our industry," said Kathy Condon, CEO of MLS Property Information Network and past president of CMLS. "We must keep building on the solid foundation of MLS and the brokers we serve," Tom Hurdelbrink, CEO of Northwest MLS added. The MLS RoundTable is a consortium of MLS organizations desirous to do exactly that and ensure that the MLS industry safeguards real estate professionals who are at the forefront of the conversation with the consumer. The study encourages greater cooperation throughout the real estate industry to benefit real estate professionals and consumers. "The study pinpoints solutions for addressing the key issues the MLS industry is wrestling with," says Stefan Swanepoel, CEO of T3 Sixty, and author of the study, the DANGER Report and the annual Swanepoel Trends Report. "Making the MLS more current and relevant for real estate professionals will have to include leveraging more present-day technologies, improving data standards and accelerating consolidation" he said. "There is seldom consensus on anything in our industry these days," says Art Carter, CEO of California Regional MLS, the nation's second largest MLS in the nation. "The MLS RoundTable hopes to bridge that gap." The 40-page study can be downloaded at http://www.MLS2020Agenda.com. About The MLS Roundtable: The MLS RoundTable is a consortium of MLS organizations. The charter members are: Bright MLS - 85,000+ subscribers (represented by Tom Phillips, CEO and David Charon CSO) CRMLS - 81,000+ subscribers (represented by Art Carter, CEO) CarolinaMLS - 11,000+ subscribers (represented by Anne Marie DeCatsye, CEO) MLS PIN - 35,000+ subscribers (represented by Kathy Condon, CEO) MRED - 43,000+ subscribers (represented by Rebecca Jensen, CEO) NWMLS - 25,000+ subscribers (represented by Tom Hurdelbrink, CEO) RealTracs - 13,000+ subscribers (represented by Stuart White, CEO) More information at http://www.MLSroundtable.com. About T3Sixty: Today's global real estate economy requires visionary leadership. T3 Sixty provides business leaders with the knowledge, best practices and support to reshape their business by providing a 360-degree approach to real estate franchises and brokerage companies, MLS organizations, and technology companies with extensive research, strategic analysis and management consultancy. For more information visit http://www.t3sixty.com.
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New Survey from Cartus Shows Employee Relocation Trends are Changing Shape
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Technology, Inventory and Competition Among Firms' Top Challenges: Realtors® Survey
WASHINGTON (August 22, 2017) – Keeping up with technology, maintaining sufficient inventory, competition from nontraditional participants and profitability are among the biggest challenges for real estate firms, according to the National Association of Realtors® 2017 Profile of Real Estate Firms. Conversely, for a third year in a row, the survey found the vast majority of firms have an optimistic outlook for the future of the industry's growth. Although expectations have slightly decreased from last year's survey, firms remain confident and expect profitability from all real estate activities to increase or stay the same over the next year. "Real estate firms continue to have a very positive outlook on the state of the industry. As the survey found, 90 percent of real estate firms expect net income to increase or remain the same over the next year," says NAR president William E. Brown, a second-generation Realtor® from Alamo, California and founder of Investment Properties. "But for the second year in a row, low inventory and high prices have led to a slight decrease in real estate firms' sales volume." The report is based on a survey of firm executives who are members of the National Association of Realtors® and provides insight into the business characteristics and activity of firms, benefits and education provided to agents and outlook for the future. Real estate firms are sensing strengthened competition this year, as 50 percent of firms expect competition to increase in the next year from non-traditional market participants, up from 43 percent in 2016. Half of firms expect competition during the same period to increase from virtual firms (up from 47 percent in 2016), while only 15 percent expect competition will increase from traditional brick-and-mortar firms. "There is no doubt that the real estate industry is rapidly changing, and with it comes growing competition," said NAR CEO Bob Goldberg. "To stay ahead of this evolution and succeed in a more competitive market, NAR is establishing a new Strategic Business and Technology group to focus on business and technology solutions that ensure the role of the Realtor® is essential to the consumer." According to the survey, 60 percent of commercial firms expect profitability from all real estate activities to increase in the next year, compared to 64 percent in 2016. Residential real estate firms are more optimistic compared to commercial firms; 62 percent of firms expect profitability to improve, compared to 65 percent in 2016. The typical residential real estate firm's brokerage sales volume was $6.2 million in 2016 (down from $6.3 in 2015), while the typical commercial real estate firm's brokerage sales volume was $4.0 million in 2016 (down from $4.5 in 2015). The survey found that the size of the firm has an impact on sales volume. Firms with only one office, typically with 2 full-time licensed agents, had a median brokerage sales volume of $4.3 million in 2016, compared to $4.5 million in 2015. Large firms, those with four or more offices and typically with 81 full-time licensed agents, had a median brokerage sales volume of $235.0 million in 2016, compared to $203.8 million in 2015. The survey states that 43 percent of firms reported they are actively recruiting sales agents in 2017, down from 47 percent in 2016. This is more common among residential firms (49 percent) than commercial firms (29 percent) and more common among firms with four offices or more (84 percent) than firms with one office (36 percent). Real estate firms typically had 30 percent of their customer inquiries from past client referrals, another 30 percent from repeat business from past clients, 20 percent from their website or social media, and 1 percent through open houses. Firms also predicted the effect different generations of homebuyers would have on the industry. Fifty-two percent of firms are concerned with Gen Y/millennials' ability to buy a home, 34 percent of firms are concerned with millennials' view of homeownership, and 32 percent of firms are concerned about the recruitment of millennial and Gen X real estate professionals. The survey also asked about professional volunteer work and supporting the local community. Eight out of 10 firms encourage their agents to volunteer in the local community (similar to 2016): 43 percent at the local association of Realtors®, 25 percent at the state association of Realtors® and 18 percent with NAR. According to the study, residential firms (82 percent) are more likely to encourage agents to volunteer compared to commercial firms (79 percent). The NAR 2017 Profile of Real Estate Firms was based on an online survey sent in July 2017 to a national sample of 165,598 executives at real estate firms. This generated 6,073 useable responses with a response rate of 3.7 percent. 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 Finds REALTORS® Plan to Spend More Time, Money on Digital Marketing Initiatives
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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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Responsive Relationship, Effective Marketing Crucial for Home Buyer-Seller Satisfaction, J.D. Power Finds
Century 21 Ranks Highest among First-Time Home Buyers and Sellers for Fourth Consecutive Year COSTA MESA, Calif., Aug. 1, 2017 — Realtors who invest time and effort in their relationship with home buyers and those who effectively market on behalf of sellers earn the highest levels of customer satisfaction, according to the J.D. Power 2017 Home Buyer/Seller Satisfaction Study, released today. According to the National Association of Realtors (NAR), current home sales reflect the best quarterly existing sales pace in a decade and are poised to climb 3.5% in 2017,1 a strong indicator that now is the time to capitalize on the market, especially with first-time buyers. The study, now in its 10th year, measures satisfaction with the nation's largest real estate companies among customers in four segments: first-time buyers; repeat buyers; first-time sellers; and repeat sellers. Overall satisfaction is measured across four factors of the home-buying experience: agent/salesperson; real estate office; closing process; and variety of additional services. In the home-selling experience, the same four factors are evaluated plus a fifth factor, marketing. Satisfaction is measured on a 1,000-point scale. "With the real estate market remaining strong, it is more important than ever that agents, buyers and sellers focus on the trade basics, especially for first-timers," said Greg Truex,senior director of the at-home practice at J.D. Power. "When agents remain transparent, informative and responsive, they can greatly impact customer satisfaction and increase agent reputation and recommendations." Following are some key findings of the study: Updated and consistent marketing strategies are key: An agent's relationship with a buyer is the most important factor in determining customer satisfaction. For sellers, marketing of the home is the most important factor, as it is the most visible way for the seller to gauge the agent's support. First-time buyers are most impressed: Overall satisfaction with real estate companies is higher among first-time buyers, compared with satisfaction among repeat buyers or sellers. The average overall satisfaction score among first-time home buyers is 857, and is slightly lower (842) among first-time home sellers. Hand-holding is worth it: Satisfaction is strongly influenced by the amount of time agents invest in keeping customers informed vs. when they are not kept informed. Among first-time buyers and sellers, satisfaction is 117 points higher among buyers (874 vs. 757, respectively) and 93 points higher among sellers (859 vs. 766, respectively). Among repeat buyers and sellers, satisfaction is 210 points higher among buyers and 192 points higher among sellers when they receive a timely response to questions and concerns vs. when they do not (870 vs. 660 and 862 vs. 670, respectively). Word-of-mouth is still vital: First-time home buyers and sellers report good reputation and recommendations from friends, family and colleagues as the two main reasons for selecting a real estate company. More than one-third (35%) of first-time buyers and 44% of first-time sellers indicate they chose their real estate company based on its reputation, while 24% of first-time buyers and 17% of first-time sellers made their selections based on recommendations. First-Time Home-Buyer Satisfaction Ranking Century 21 (867) ranks highest for a fourth consecutive year and performs particularly well in the agent/salesperson, closing process and variety of additional services factors. Berkshire Hathaway HomeServices (862) ranks second and performs particularly well in the real estate office factor. Repeat Home-Buyer Satisfaction Ranking Keller Williams (863) ranks highest and performs particularly well in the closing process, real estate office and variety of additional services factors. Coldwell Banker (857) ranks second. First-Time Home-Seller Satisfaction Ranking Century 21 (859) ranks highest for a fourth consecutive year and performs particularly well in all five factors in the segment. Repeat Home-Seller Satisfaction Ranking Berkshire Hathaway HomeServices (858) ranks highest and performs particularly well in the agent/salesperson, marketing and closing process factors. Century 21 (846) ranks second and performs particularly well in variety of additional services. The 2017 Home Buyer/Seller Satisfaction Study includes 5,117 evaluations from 4,170 customers who bought and/or sold a home between March 2016 and April 2017. The study was fielded in March-April 2017. For more information about the J.D. Power Home Buyer/Seller Satisfaction Study, click here. J.D. Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable J.D. Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, J.D. Power is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. J.D. Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.
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Realtors® Report Finds 11 Percent Increase in Commercial Member Income, 19 Percent Increase in Sales Transaction Volume
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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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Chase, Google Track Down Where Buyers Start Their House Hunt
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Foreign U.S. Home Sales Dollar Volume Surges 49 Percent to Record $153 Billion
WASHINGTON (July 18, 2017) – Fueled by a substantial increase in sales dollar volume from Canadian buyers, foreign investment in U.S. residential real estate skyrocketed to a new high, as transactions grew in each of the top five countries where buyers originated. This is according to an annual survey of residential purchases from international buyers released today by the National Association of Realtors®, which also revealed that nearly half of all foreign sales were in three states: Florida, California and Texas. NAR's 2017 Profile of International Activity in U.S. Residential Real Estate found that between April 2016 and March 2017, foreign buyers and recent immigrants purchased $153.0 billion of residential property, which is a 49 percent jump from 2016 ($102.6 billion) and surpasses 2015 ($103.9 billion) as the new survey high. Overall, 284,455 U.S. properties were bought by foreign buyers (up 32 percent from 2016), and purchases accounted for 10 percent of the dollar volume of existing-home sales (8 percent in 2016). "The political and economic uncertainty both here and abroad did not deter foreigners from exponentially ramping up their purchases of U.S. property over the past year," said Lawrence Yun, NAR chief economist. "While the strengthening of the U.S. dollar in relation to other currencies and steadfast home-price growth made buying a home more expensive in many areas, foreigners increasingly acted on their beliefs that the U.S. is a safe and secure place to live, work and invest." Although China maintained its top position in sales dollar volume for the fourth straight year, the significant rise in foreign investment in the survey came from a massive hike in activity from Canadian buyers. After dipping in the 2016 survey to $8.9 billion in sales ($11.2 billion in 2015), transactions from Canadians this year totaled $19.0 billion – a new high for Canada. Yun attributes this notable rise in activity to Canadians opting to buy property in U.S. markets that are expensive but still more affordable than in their native land. While much of the U.S. continues to see fast price growth, home price gains in many cities in Canada have been steeper, especially in Vancouver and Toronto. "Inventory shortages continue to drive up U.S. home values, but prices in five countries, including Canada, experienced even quicker appreciation," said Yun. "Some of the acceleration in foreign purchases over the past year appears to come from the combination of more affordable property choices in the U.S. and foreigners deciding to buy now knowing that any further weakening of their local currency against the dollar will make buying more expensive in the future." Foreign buyers typically paid $302,290, which was a 9.0 percent increase from the median sales price in the 2016 survey ($277,380) and above the sales price of all existing homes sold during the same period ($235,792). Approximately 10 percent of foreign buyers paid over $1 million, and 44 percent of transactions were all-cash purchases (50 percent in 2016). Foreign sales rise in top five countries; three states account for nearly half of all purchases Buyers from China exceeded all countries by dollar volume of sales at $31.7 billion, which was up from last year's survey ($27.3 billion) and topped 2015 ($28.6 billion) as the new survey high. Chinese buyers also purchased the most housing units for the third consecutive year (40,572; up from 29,195 in 2016). Rounding out the top five, the sales dollar volume from buyers in Canada ($19.0 billion), the United Kingdom ($9.5 billion), Mexico ($9.3 billion) and India ($7.8 billion) all increased from their levels one year ago. This year's survey once again revealed that foreign buying activity is mostly confined to three states, as Florida (22 percent), California (12 percent) and Texas (12 percent) maintained their position as the top destinations for foreigners, followed by New Jersey and Arizona (each at 4 percent). Florida was the most popular state for Canadian buyers, Chinese buyers mostly chose California, and Texas was the preferred state for Mexican buyers. Sales to resident foreigners and non-residents each reach new peak The upswing in foreign investment came from both recent immigrants and non-resident foreign buyers as each increased substantially to new highs. Sales to foreigners residing in the U.S. reached $78.1 billion (up 32 percent from 2016) and non-resident foreign sales spiked to $74.9 billion (up 72 percent from 2016). "Although non-resident foreign purchases climbed over the past year, it appears much of the activity occurred during the second half of 2016," said Yun. "Realtors® in some markets are reporting that the effect of tighter regulations on capital outflows in China and weaker currencies in Canada and the U.K. have somewhat cooled non-resident foreign buyer interest in early 2017." Looking ahead, Yun believes the gradually expanding U.S. and global economies should keep foreign buyer demand at a robust level. However, it remains to be seen if both the shortage of homes for sale and economic and political headwinds end up curbing sales activity to foreigners. "Stricter foreign government regulations and the current uncertainty on policy surrounding U.S. immigration and international trade policy could very well lead to a slowdown in foreign investment," said Yun. NAR's 2017 Profile of International Activity in U.S. Residential Real Estate, conducted April 10 through May 1, surveyed a sample of Realtors ® to measure the share of U.S. residential real estate sales to international clients, and to provide a profile of the origin, destination, and buying preferences of international clients, as well as the challenges and opportunities faced by Realtors® in serving foreign clients. The survey presents information about transactions with international clients during the 12-month period between April 2016 and March 2017. A total of 5,998 Realtors® responded to the 2017 survey. The 2017 Profile of International Activity in U.S. Residential Real Estate can be ordered by calling 800-874-6500, or online at www.nar.realtor/prodser.nsf/Research. The report is free to NAR members and accredited media and costs $149.95 for non-members. 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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Home Staging Decreases Time on the Market, Finds Realtors® Report
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Survey: 1 in 3 Recent Homebuyers Made an Offer Sight-Unseen, Up From Nearly 1 in 5 a Year Ago
SEATTLE — June 28, 2017 — Thirty-three percent of people who bought a home in the last year made an offer without first seeing the home in person, according to a May survey of 3,350 homebuyers and sellers commissioned by Redfin, the next-generation real estate brokerage. In a similar survey last year, 19 percent of buyers said they had offered sight-unseen. Among recent Millennial homebuyers, 41 percent had done so. Five other major findings include: Affordable housing was the most prevalent economic concern, cited by 40 percent of buyers; rising prices caused 21 percent to search in other metro areas where homes cost less. Forty-one percent of buyers would be hesitant to move to a place where people have different political views from their own. Orders restricting immigration influenced the buying and selling plans of 52 percent of Arab, Asian and Latino respondents; 45 percent of minority buyers felt that sellers and their agents may have been less eager to work with them because of their race. Buyers remain resilient amid the prospect of rising mortgage rates. Just 5 percent said they'd cancel their plans if rates surpass 5 percent. Fifty-one percent of buyers and 46 percent of sellers saved money on real estate commissions. "Millennials are already starting to set trends in the real estate industry," said Redfin chief economist Nela Richardson. "They are three times more likely than Baby Boomers to make an offer sight-unseen, and they're more likely than older buyers and sellers to negotiate commission savings. Despite their tech-savvy confidence, politics are seeping into Millennials' decisions about where to live; nearly half cited hesitations about moving to a place where their neighbors wouldn't share their views." For the full report including more findings, charts and a detailed 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 $40 billion in home sales.
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71 Percent of Homeowners Believe It's a Good Time to Sell; Economic and Financial Confidence Dips: Realtors® HOME Survey
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Redfin Study: Middle-Class African-American and Hispanic Families Virtually Priced Out of Homeownership in Hot West Coast Markets
Fewer than five percent of homes for sale in Denver, Los Angeles, Portland, San Francisco, San Diego and Phoenix were affordable on median African-American and Hispanic household incomes in 2016 SEATTLE — June 1, 2017 — In 2016, just 18 percent of homes for sale in the 30 largest U.S. metros were affordable for middle-class Hispanic families and 14 percent were affordable for African-American families, according to a new study by Redfin, the next-generation real estate brokerage. Both rates were down 11 percentage points from 2012. This is compared to 30 percent affordable for those earning the median income for white households, down 12 percentage points since 2012. Housing affordability declined over the same four-year period for the middle class as a whole, as home prices increased by 26 percent and household incomes edged up by less than 2 percent nationally. In 2012, 44 percent of homes for sale were affordable on a middle-class income; that share fell to 32 percent in 2016. The study also found that in 2016, middle-class African-American and Hispanic families were virtually priced out of homeownership in Denver, Los Angeles, Portland, San Francisco, San Diego and Phoenix. In each of those metros, fewer than 5 percent of homes on the market were affordable on the median household incomes for African Americans and Latinos. Still, Denver was home to the smallest racial gap in housing affordability in 2016. Less than 2 percent of homes for sale there were affordable to families earning the median income for African-American and Hispanic households, compared to just 8.3 percent for families earning the median income for white households. The racial affordability gap was largest in Minneapolis, where the typical white family could afford 66 percent of the homes for sale, compared to 5.2 percent and 24.8 percent for families earning the median income for African-American and Hispanic households. Among the 30 largest metros, Las Vegas had the largest declines in affordability for families making the median African American (-26.5 points) or Hispanic (-24.6 points) household incomes from 2012 to 2016. Also during this period, metros known for their relative affordability, like Atlanta, Tampa and Kansas City, saw double-digit declines in the share of listings that were affordable on African American and Hispanic median incomes. St. Louis was the only metro that saw increases in affordability for both Hispanic (+5.4 points) and African-American families (+4.3 points). Interestingly, St. Louis was also the only metro where overall middle-class affordability, including for median-income white households, did not change significantly over this time period. The Upshot "American cities are at risk of losing both the economic and racial diversity that has been their hallmark," said Redfin chief economist Nela Richardson. "Middle-class homebuyers are being priced out of America's largest cities at an alarming rate, as the home affordability gap gets wider. Given the significantly lower rates of homeownership among African-American and Hispanic families, the reduction in affordable listings has even more dire consequences for income inequality when broken out by race." But there are solutions, according to Richardson. "For one, federal and state governments can do much more to be influential in local housing policy," said Richardson. "That's where the crisis starts–at the neighborhood level–when people vote against inclusionary zoning policies, making it difficult or impossible to build higher-density, affordable housing in a community. Federal and states governments can reward communities that change to inclusionary zoning practices by offering them infrastructure investments to improve the neighborhoods. That way, inclusionary zoning is more appealing to longtime residents." To read the full report with a complete breakdown of affordability changes by race, animated data visualizations and a link to the original data spreadsheet, please click here. About RedfinRedfin 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. 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 $40 billion in home sales through 2016.
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Utilities Add 25 Percent to U.S. Homeownership Costs According to New Research from ATTOM Data Solutions and UtilityScore
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Realtors® Survey: Led By China, Foreign Investment in U.S. Commercial Real Estate on the Rise
WASHINGTON (June 6, 2017) — One-fifth of surveyed Realtors® practicing in commercial real estate closed a sale with an international client in 2016, and as foreign investors flock to smaller-sized commercial properties in secondary and tertiary markets, many Realtors® are confident that increased sales and leasing activity will occur in 2017. This is according to the 2017 Commercial Real Estate International Business Trends survey released today by the National Association of Realtors®, which analyzed cross-border commercial real estate transactions made by Realtors® during 2016. Most Realtors® who specialize in commercial real estate reside in smaller commercial markets where the typical deal is less than $2.5 million. Similar to NAR survey findings on foreign purchases of residential real estate in recent years, China was the top country of origin in both buying and selling commercial real estate in 2016, and Florida was the top destination of choice for international clients. NAR's 2017 Profile of International Activity in U.S. Residential Real Estate is scheduled for release this summer. Lawrence Yun, NAR chief economist, says the appetite for U.S. commercial real estate property was strong from foreigners last year and shows little signs of slowing in 2017. "Multiple years of steady job growth and the strengthening U.S. economy – albeit at a modest pace – makes commercial property a safe bet for global investors looking to diversify their portfolios and generate returns outside their country of origin," he said. "While Class A asset prices in many large markets have surpassed pre-crisis levels, Realtors® in many middle-tier and smaller markets stand to benefit from the increased interest from foreign and domestic commercial property investors." Added Yun, "Forty percent of Realtors® expect an increase in foreign buying clients this year. The healthy labor markets and lower property prices in smaller markets are poised to make up a larger share of activity." Of the 69 percent of Realtors® who indicated they completed a commercial real estate transaction last year, 20 percent reported closing a deal for an international client. Realtors® completed a median of one buyer-side international deal and two seller-side international transactions. The typical buyer-side sales price was $1,000,000, and the median seller-side price was $550,000. Additionally, 22 percent of Realtors® said they completed a lease agreement on behalf of a foreign client. The median gross lease value for international lease transactions was $105,000, with most space typically under 2,500-square-feet. Nearly two-thirds of commercial foreign buyer and seller clients were non-resident foreigners. The top countries of origin for buyers were China (17 percent), Mexico (14 percent) and the United Kingdom and Venezuela (both at 7 percent), while sellers were typically from China (17 percent) or Brazil, Canada, France and Mexico (all at 10 percent). Florida and Texas were the top two states where foreigners purchased and sold commercial property last year, with California being the third most popular buyer destination and Michigan ranking as the third top state where foreigners sold real estate. The survey also found that foreign buyers of commercial property typically bring more cash to the table than those purchasing residential real estate. Sixty percent of international transactions were closed with cash, while NAR's 2016 residential survey found that exactly half of buyers paid in cash. For those not using all cash, 34 percent of commercial deals involved debt financing from U.S. sources. An overwhelming majority of buyers either purchased commercial space for investment purposes or acquired it for business use. "Nearly half of Realtors® reported that they experienced a greater number of international clients looking to buy commercial space over the past five years," said Yun. "Economic expansion has slowly chugged along since the downturn, but in comparison to the rest of the world, the U.S. remains one of the most attractive and safest bets for investors. There's little evidence this will change anytime soon." NAR's second quarter Commercial Real Estate Outlook, released last month, offers overall projections for four major commercial sectors and analyzes quarterly data in the office, industrial, retail and multifamily markets. The NAR commercial community includes commercial members, real estate boards, committees, subcommittees and forums; and NAR commercial affiliate organizations – CCIM Institute, Institute of Real Estate Management, Realtors® Land Institute, Society of Industrial and Office Realtors®, and Counselors of Real Estate. Approximately 70,000 NAR members specialize in commercial real estate brokerage and related services including property management, counseling and appraisal. In addition, more than 200,000 members are involved in commercial transactions as a secondary business. 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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