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Coldwell Banker Global Luxury Releases The Report: State of Luxury Real Estate 2019
"The Report" Profiles 65 Power Markets in Luxury Real Estate and Spotlights Domestic and Global Markets to Watch MADISON, N.J., Feb. 12, 2019 -- Today, Coldwell Banker Real Estate LLC and the Coldwell Banker Global Luxury® program released "The Report: State of Luxury 2019," which profiles 65 "Power Markets" where the wealthiest and most powerful players tend to own property. See the full list of Power Markets at blog.coldwellbankerluxury.com/TheReport2019. "Power Markets" include both well-established and unexpected luxury markets offering a range of lifestyle amenities, cultural experiences and educational opportunities. Key indicators of "power" status include airport accessibility, ease of doing business, a prestige brand presence and a housing stock that prioritizes privacy, views and exclusivity. To narrow down the top ten Power Markets for Buyers and Sellers in 2018, 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 2018.* 2018 Top 5 Luxury Buyer "Power Markets" in Review Maui, Hawaii Palm Beach, Fla. Washington, D.C. Kauai, Hawaii Brooklyn, N.Y. 2018 Top 5 Luxury Seller "Power Markets" in Review LA Valley, Calif. Detroit, Mich. Las Vegas, Nev. Boulder, Colo. Raleigh, N.C. Based on the median prices for the top 10 percent of homes sold in the Power Markets, key findings include: Shortest Days on Market: Raleigh-Durham, N.C. boasted the shortest median days on market - three days - for single family homes. For condos, Silicon Valley had the shortest median days on market at nine days. Most Affordable (Price per Square Foot): Collin County, Texas and Ft. Worth, Texas were tied for the most affordable luxury markets for single family homes, where the median price per square foot was $165. For condos, Orlando, Fla. had the lowest median price per square foot at $156. Most Expensive (Price per Square Foot): On the flip side, the most expensive market is the Los Angeles-Beach area, which includes coastal cities such as Santa Monica, Malibu and Manhattan Beach, where the median price per square foot was $1,398. Vail, Colo. took the top spot for condos at $1,629 median price per square foot. Evolving Market: Staten Island, N.Y. stands out as an Evolving Market for its striking value compared to the other four boroughs of New York City, as the proximity to Manhattan and Brooklyn appeals to many buyers who work or own businesses in these surrounding boroughs. 2018 saw impressive sold prices of single-family homes – 134 of the 139 homes closed above $1 million, four of which closed above $2 million. "There are hotbeds of luxury home sales at the million-dollar price point and higher across the North American luxury market, and The Report provides high-level data on the markets to watch," said Charlie Young, president and CEO of Coldwell Banker Real Estate LLC. "While there was a moderation in the pace of luxury home sales in 2018, luxury market prices have held their ground since the housing boom began in 2013. When you take the long view, the luxury real estate picture is steady and stable." "Now in its second year, The Report is an all-encompassing, timely resource for Coldwell Banker Global Luxury Property Specialists to prepare for the year ahead in luxury real estate," said Craig Hogan, vice president of luxury for Coldwell Banker Real Estate LLC. "Our data confirms that wealthy individuals' preferences are shifting, but demand for high-end properties remains high. Luxury home prices fluctuated month to month in 2018, but from a long-term perspective, sales were strong and stable." 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 2018 landmark listings and sales Trends driving the ultra-high-net-worth population Top luxury property must-haves Domestic and global 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 30,700 transactions of homes priced at $1 million or more in 2018, with an average sales price of $1.9 million. On average in 2018, the Coldwell Banker brand sells approximately $161.8 million in $1 million or more luxury homes every day. Coldwell Banker®, the Coldwell Banker logo, Coldwell Banker Global Luxury® and the Coldwell Banker Global Luxury logo are registered service marks owned by Coldwell Banker Real Estate LLC. Coldwell Banker Real Estate LLC fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Each office is independently owned and operated.
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REAL Trends and Inside Real Estate Release Study on Flawlessly Executing a New Tech Platform
"A Journey to Tech Perfection" case study follows Miami-based brokerage, The Keyes Company, through its tech goal setting and marketing plan for agent adoption of the kvCORE platform. DENVER (February 12, 2019)—Today, REAL Trends Inc., in partnership with Inside Real Estate, released "A Journey to Technology Perfection," an exclusive case study featuring The Keyes Company and their near flawless rollout of a technology platform that had record numbers of agent adoption. REAL Trends and Inside Real Estate set out to answer an age-old problem for brokerages: Agent adoption with technology implementation. What the two companies found in the case study were four main pain points outlined by The Keyes Company and how they were determined to fix these setbacks. "With the lead landscape changing, we needed to take control of our destiny away from the major portals," says Keyes CEO Mike Pappas. "To do that, we needed a smart CRM to handle longer-term relationships with our clients and leads. Without being able to engage in the process using a tech platform actively, we were losing a lot of opportunities." The Keyes Company shares their technology journey by first identifying their pain points and then outlining a plan on how to address them. They knew that it was important to find a technology partner that was flexible to their needs and able to integrate with all their other tools. This, they believed, would increase agent adoption. Technology implementation strategy is not a one-size-fits-all solution. It took The Keyes Company nearly nine months from the time they signed with kvCORE to the system running. With three brands and over 4,000 agents, it was important to The Keyes Company and to Inside Real Estate to manage the project effectively to increase agent adoption. What Keyes also solved was the agent adoption problem by offering a smooth, well-thought-out rollout of the platform. Within three months, about 90 percent of their agents had logged in to the system. "Our lead cost went from $100 to $150 per lead to under $10 per lead," says Pappas. To find out how they set their goals, determined pain points and organized a smooth rollout, download the case study, "A Journey to Tech Perfection," for free at https://www.realtrends.com/inside-real-estate. "We had all the tools, but we weren't setting it up in a way that the lead generation was what it should be. It was too difficult for agents to manage." —Wendi Iglesias, CIO of The Keyes Company About The Keyes Company The Keyes Company was founded in 1926 by Ken Keyes during Florida's early boom years. The South Florida firm survived the Great Miami hurricane of 1926 and the Great Depression and was sold to Ted Pappas in the 1960s. In 1992, Ted's sons Mike and Tim Pappas bought the company. Mike serves as the chief executive officer, while Tim is senior vice president. Despite many acquisitions over the years, the company remains family-owned. They now have four different brands that they operate with 58 offices from the Homestead area up through Volusia County, Florida. They have a little over 3,500 sales associates. About Inside Real Estate Inside Real Estate is among the fastest-growing real estate software companies in the industry and serves over 140,000 agents, teams, and brokers throughout the U.S. and Canada. The company is the developer of the kvCORE Platform, the only comprehensive brokerage platform that singlehandedly serves the needs of the broker, office manager, team lead and agent. To cater to the unique needs of every business, 50+ deep integrations and vetted partner solutions are available to platform users through the Marketplace, the cloud-based integration center for Inside Real Estate. For standalone teams with brokerages not supported by kvCORE, the k+ TEAM Platform is available with features designed specifically for the team business model. To learn more about Inside Real Estate Inside solutions visit insiderealestate.com. About REAL Trends REAL Trends has been The Trusted Source for news, analysis and information about the residential real estate industry since 1987. We are a privately-held communications and consulting company based in Colorado. REAL Trends' areas of expertise include operational analysis, valuations, merger and acquisition advisory services, consumer and business research and strategic planning. Residential real estate leaders find timely and trusted information and analysis through our yearly event—Gathering of Eagles—our monthly newsletter and other publications. Visit REAL Trends at www.realtrends.com
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Redfin to Host Symposium on Race and Real Estate in Seattle on September 6
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EXIT Realty Corp. International Releases White Paper on Mergers and Acquisitions in Real Estate Brokerage
Mississauga, ON, June 14, 2018 -- Today's real estate market is equally primed for those real estate broker/owners who want their company to be acquired by another and for those wishing to acquire an existing company. EXIT Realty Corp. International, a real estate franchisor with brokerage locations across the U.S. and Canada, today released a white paper entitled, "Mergers & Acquisitions in Real Estate Brokerage" which examines the reasons for an existing real estate brokerage to acquire another, for a brokerage to consider becoming acquired and best practices to help ensure a successful outcome for everyone involved. According to the National Association of REALTORS® 2017 Profile of Real Estate Firms, 79% of real estate firms are comprised of a single office, typically with 3 full-time licensees, causing many broker/owners to lament their lack of inventory, their relevance in the market and their ability to stay current with technology. Owners of larger operations often share these concerns. In addition, the industry's population is aging. According to NAR's 2017 Member Profile, the median age of a REALTOR® is 53 with 30% over the age of 60 and only 4% under age 30. Many broker/owners do not have a solid exit strategy which adequately prepares them for retirement. The author of the white paper is EXIT Realty Corp. International's CEO, Tami Bonnell. As a 30+ year veteran of the real estate industry, Bonnell was instrumental in building three major brands and has successfully negotiated more than 100 mergers/acquisitions. Bonnell shares her expertise and case studies in the white paper which can be downloaded at www.exitrealty.com/whitepapers. According to the industry experts at T3 Sixty, $2 billion was invested in the real estate technology space last year. "While it's important for companies to be high tech, relationships matter most so it's equally important to be high touch," says Bonnell. "Even with advances in artificial intelligence and artificial valuation models, I believe that most of the business will continue to be transacted by real estate professionals. Technology will not replace real estate agents, but real estate agents who do not use technology effectively will be replaced by those who do. Many smaller companies can't afford the technology, are afraid of it, or don't want the responsibility of keeping abreast of the latest innovations. Now is the time to make a move." Bonnell will explore the subject of real estate brokerage mergers and acquisitions during a live webinar on Tuesday, June 19th at 4:00 pm and 7:00 pm ET. Those interested in attending are welcome to register here. About EXIT Realty EXIT is a proven real estate business model that has to-date paid out more than a third of a billion dollars in single-level residual income to its associates across the U.S. and Canada. EXIT Realty's Expert Marketing Suite™ including geolocation Smart Sign™ technology gives home sellers the edge in a competitive marketplace. A portion of every transaction fee collected by EXIT Realty Corp. International is applied to its charitable fund. To-date, $4 million has been pledged to charity. For more information, please visit www.exitrealty.com.
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The Marketing Divide: 2018 Real Estate Marketing Analysis
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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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HOME Survey: Housing and Economic Sentiment on Divergent Paths in Early 2018
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[VIDEO] Rachel Adams Lee on realtor.com's Teams Study
Teams: see the latest data from an active team study conducted by realtor.com through NAR. See the results in this upcoming webinar if teams are at all active in your area!
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CoreLogic Special Report: Evaluating the Housing Market Since the Great Recession
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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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Most Renters Want to Own a Home; Lifestyle Changes Are Top Motivation to Buy
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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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What Drives Double Digit Team Growth -- and How This Affects You
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Impact of Teams: Join One, Start One or Compete Like One
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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American Homebuyers are Ready to Embrace Virtual Reality, According to Coldwell Banker Real Estate Survey
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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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5 Root Causes for U.S.'s Depressed Homeownership Rate: New Study
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Consumers Show Preference for Independent Real Estate Brands
CHICAGO – (5/31/17) – In a recent survey of more than 3,000 U.S. homeowners, consumers indicated a strong preference for working with sales associates affiliated with local independent brands. More than 88% said they preferred working with an agent with a "well-known, local real estate company," while 12% preferred those affiliated with a national franchise. This was one of several responses describing how today's consumers buy and sell real estate as part of a broad-based, wide-ranging U.S. consumer segmentation study conducted on behalf of Leading Real Estate Companies of the World® (LeadingRE) by McKee Wallwork + Co. and Decision Analyst. This particular finding on the appeal of independent brokerages is supported by another third-party source, the REAL Trends 500 ranking of the top 500 residential real estate firms in the U.S. The data collected from brokerages around the country indicates that LeadingRE produced 25.7% of the total sales units among the top 500 brokerages in the U.S., outselling any single franchise network, and that has been the case for more than 10 consecutive years. LeadingRE members also represented 14 of the top 25 firms in the U.S. in sales volume for 2016. In terms of total sales for all brokerages in each network, LeadingRE's residential real estate firms outperformed their nearest network competitor by $62 billion, producing 1.1 million sales units valued at $368 billion in home sales. "Year after year, the independent firms that comprise our network demonstrate their market leadership locally and collectively as an international community focused on delivering the most exceptional customer experiences," said LeadingRE President/CEO Pam O'Connor. "This is consistent with the growth in popularity of local restaurants, locally-branded divisions of major hotel franchisors, and other locally-sourced retail goods and services that offer the brand differentiation and community roots that appeal to many of today's consumers as compared to big box brands of the past." Figures for the top 500 firms are verified and published by REAL Trends each April. Figures for total sales of all networks are estimated by using average sales units per agent for each network's firms in the REAL Trends 500, multiplied across each network's entire agent population. With member firms in 65 countries, Leading Real Estate Companies of the World® selects only the highest quality, market-leading independent companies for membership and supports them with its robust referral network, award-winning professional development programs, Luxury Portfolio marketing program, and events providing meaningful connections to people and opportunities worldwide.
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Walk Score Ranks the Most Walkable Cities of 2017
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Survey Reports 12 Percent Jump in REALTOR® Business Activity
  WASHINGTON (May 11, 2017) — After a slip in business in 2015, the National Association of Realtors® Member Profile found that the income and sales volume of Realtor® members increased in 2016. The median gross income of Realtors® increased 8 percent in 2016 as the typical member had the highest number of transactions in recent years. Despite Realtors® continuing to cite inventory shortages, transactions grew to 12 per agent, the highest since 2014 when the typical agent had 11. The median sales volume for Realtors® also grew from $1.8 million in 2015 to $1.9 million in 2016. Median income increased too, from $39,200 in 2015 to $42,500 in 2016; the median gross income of Realtor® households also increased from $98,300 in 2015 to $111,400 last year. The Member Profile is representative of the nation's 1.2 million Realtors®; members of NAR account for more than half of the approximately 2.2 million 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. Lawrence Yun, NAR chief economist, says business activity for Realtors® grew last year because of higher demand, even amid a rise in membership. "The return of pre-recession market levels and rising home sales and prices have led to increased business activity among Realtors® and an increase in Realtor® membership. It is a highly entrepreneurial business, with some members earning six-figure incomes while others were barely scratching out less than $10,000," Yun said. Income and Expenses of Realtors® The latest survey revealed that 24 percent of members make under $10,000, and 24 percent make above $100,000. It is not surprising that median gross income and the number of transactions generally increase with experience; last year, Realtors® in business for more than 16 years earned a median income of $78,850 (up from $73,400 in 2015) and had 15 transactions, the same number as 2015. Realtors® with 2 years or less experience had a median gross income of $8,930, an increase from $7,400 in 2015, and had 4 transactions. Income also varied by license type, as members licensed as brokers earned $69,640 in 2016, while the median earnings for sales agents was $31,670. Demographic Characteristics of Realtors® In the past year, there was a continued rise in new members, from 1.16 million Realtors® in March 2016 to 1.22 million in March 2017. The typical member has 10 years of real estate experience (unchanged from a year ago). Younger members continue to enter the industry, as this year's survey found that 28 percent have less than two years of experience, an increase from 17 percent in 2015. Members with less than one year of experience made up 20 percent of membership, an almost 10-percentage point increase from 2015. Broker-owners, managers, and appraisers had the most experience, while sales agents were typically the newest to the field with six years of experience. "It has become evident over the last few years that individuals are realizing the many benefits and business opportunities that working in real estate provides. The increase in business Realtors® are experiencing reflects the continued value they bring to their clients and communities across the country," said NAR President William E. Brown, a second-generation Realtor® from Alamo, California and founder of Investment Properties. Despite more younger members joining the association last year, the median age of Realtors® remained at 53 again last year; the lowest median age was in 2008 at 52 years. "The leveling in age may be attributed both to older members retiring and to more new, younger entrants to the business," Brown said. This year, only 30 percent of members are over 60 years old, and 4 percent are less than 30 years old, which is consistent with last year. Twelve percent of members who have two years or less of experience are under 30 years of age. The typical Realtor® is a 53-year-old female who attended college and is a homeowner; women represent 63 percent of Realtors®, accounting for 58 percent of brokers and 67 percent of sales agents. Sixty-five percent of members are licensed as sales agents; 22 percent are brokers, and 15 percent are broker associates (some hold more than one license). Thirteen percent of members have one personal assistant, while 3 percent have two or more personal assistants. Business Activity of Realtors® According to the survey, there are multiple factors that limit potential clients in completing transactions.  The top reason cited by Realtors® was difficulty finding the right property (36 percent), housing affordability (16 percent), and difficulty in obtaining mortgage financing (14 percent). "Limited inventory and rising prices were large factors affecting the real estate market across the country over the last year, so it is no surprise that these same market conditions were cited in the survey as having the largest impact on Realtors®' ability to help their client complete a transaction." said Yun. Repeat business and referrals continue to be important sources of income for Realtors®, especially those with more experience. Realtors® with 16 or more years of experience reported 61 percent of business was from repeat customers or referrals. Office and Firm Affiliation of Realtors® Over half of Realtors® report that they work for an independent company. Fifty-six percent of those are licensed as brokers and broker associates, down 4 percent since 2015, and 48 percent are licensed as sales agents, also down 4 percent since 2015. Nearly nine in 10 members are independent contractors at their firms. The 2017 National Association of Realtors® Member Profile is based on a survey of 165,424 members, which generated 12,685 usable responses, representing an adjusted response rate of 7.7 percent. Information about compensation, earnings, sales volume and number of transactions is characteristics of calendar year 2016, while all other data are representative of member characteristics in early 2017. 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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Report Reveals Insights from the Emerging Luxury Consumer
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Redfin Survey: One in Four Home Sellers Report Having No Concerns About Selling
SEATTLE — May 1, 2017 — One in four home sellers said they have no concerns about selling this spring, according to an April survey of nearly 900 homeowners conducted by Redfin, the next-generation real estate brokerage. The 179 survey respondents who indicated that their home was currently listed for sale or that they were planning to list in the coming year (considered "home sellers" for reporting purposes) ranked "none" as their most common response when asked to select their top three concerns about selling. In a similar survey conducted in January, this response was the eighth-most common, with 16 percent of sellers choosing it. Last month, 18 percent of sellers expressed concern about finding another home to buy, down from 24 percent in January. "Despite strong sentiment among current home sellers, the numbers show prospective sellers have been very slow to list their homes. New listings dropped 2.3 percent in the first three months of the year compared to the same period last year," said Redfin chief economist Nela Richardson. "Would-be sellers are likely waiting for prices to peak; they're trying to time the market to fetch the largest possible gain. Whether the confidence of the current cohort of sellers translates into more new listings in the coming months is the number one question that determines whether 2017 will be a good year or a great year." Other findings that reveal a high level of confidence among sellers this spring include: 21.1 percent of sellers said they would price high since negotiations are inevitable, up from 15.4 percent in January. Still, most sellers reported that they would price in the mid-range according to comparable homes. When asked about the balance of power in their market, 20 percent said sellers have all the power, up from 13.1 percent in January. To read the full report, complete with charts and insights from Redfin real estate agents, click here. About the SurveyRedfin's survey was conducted between Apr. 12 and Apr. 17, and includes responses from 896 homeowners in 38 states and Washington, D.C. Of this group of respondents, 179 either said their home was currently listed for sale or expressed plans to sell within the next year, and are therefore considered "home sellers" for the purpose of this report. 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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RPR Releases 2017 REALTOR® Mobile Usage Report
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Realtor.com® Consumer Survey Identifies Home Shoppers' Preferences in 2017
  SANTA CLARA, Calif., April 12, 2017 -- Ranch-style homes, large backyards and updated kitchens top shoppers' wish lists this spring, according to realtor.com®'s home buyer survey. More than half of home seekers are looking for a three-bedroom home, while 75 percent of shoppers are considering a two-bathroom home. Realtor.com® is a leading online real estate destination operated by News Corp subsidiary Move, Inc. The survey, based on March data from shoppers on realtor.com®, provides insight into home buying trends in 2017 by analyzing what features shoppers are looking for this spring and summer - the peak home buying seasons. "The insights from our most recent consumer survey provide a glimpse into what buyers are looking at today," said Sarah Staley, housing expert for realtor.com®. "While we often think of dream homes as being big and bold, that's not what we're hearing from potential buyers today. These insights can help guide potential sellers in deciding which rooms or features to invest in before listing their homes." Following are key findings of the realtor.com® home buyer survey. Complete survey findings can be viewed at http://research.realtor.com/spring-home-shoppers. Large backyards, garages and updated kitchens top list of most searched attributes All age groups are looking for some combination of a backyard, garage and updated kitchen. Unsurprisingly younger homebuyers who are more likely to have young children in the house are particularly excited about finding a large yard. These age groups are also most interested in living in a good school district. The least-searched features were a guesthouse, mother-in-law suite, solar panels and a "man cave." Ranch-style homes and kitchens rule in 2017 Ranch homes led shoppers' rankings of desired home styles by far, with 42 percent of shoppers looking for a ranch home. No other style of home broke 29 percent, although contemporary came close with 28 percent, followed by Craftsman and Colonial styles. Eighty percent of shoppers ranked the kitchen as one of their three favorite rooms in their home. Kitchens were followed by master bedroom (49 percent) and living room (42 percent) among most age groups. Although, shoppers over 55 years old preferred garages over living rooms. Privacy ranks as shoppers' top goal for buying, largely driven by buyers over age 45 Most shoppers cite privacy as their top goal when searching for a home. Shoppers want to have a space that is solely their own. This preference can be attributed to mostly buyers between 45 and 64 years old, for whom privacy tends to beat out other preferences such as stability, family needs and financial investment. Millennial shoppers cite family needs as the primary reason for entering the housing market As millennial buyers prioritize family needs, it is no surprise that most millennials cited life events like increasing family size and getting married or moving in with a partner as their primary triggers for finding a new home. Shoppers age 35-44 are also focused on family needs. Most of this group cited better school districts or changing family circumstances as their primary reasons for purchasing a new home. Shoppers over age 45 are looking to downsize, as all age groups above 45 cited planning for retirement as their primary motive for finding a new house. Desire for single-family home rises with age Among younger buyers, many of whom are buying starter homes, 40 percent of shoppers were looking for townhouses and row houses. As shoppers age, however, that number declines and single-family homes are a clear preference. The older the age group is, the less likely they are to consider a townhouse and the more likely they are to prefer a single-family home. 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 subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS.® For more information, visit realtor.com®.
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Affordability, Tight Supply Cause Vacation Home Sales to Plummet in 2016; Investment Sales Climb 4.5%
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Majority of Realtors® Say Clients Interested in Sustainability
  WASHINGTON (April 6, 2017) — Growing consumer interest and demand for greener, more sustainable properties is driving a dialogue between Realtors® and homebuyers and sellers. Over half of Realtors® find that consumers have interest in real estate sustainability issues and practices, according to the National Association of Realtors®' recent REALTORS® and Sustainability report. The report, stemming from NAR's new Sustainability Program, surveyed Realtors® about sustainability issues facing consumers in the real estate market and ways Realtors® are setting their own goals to reduce energy usage. "As consumers' interest in sustainability grows, Realtors® understand the necessity of promoting sustainability in their real estate practice, such as marketing energy efficiency in property listings to homebuyers," said NAR President William E. Brown, a Realtor® from Alamo, California and founder of Investment Properties. "The goal of the NAR Sustainability Program is to provide leadership and strategies on topics of sustainability to benefit members, consumers and communities." To meet growing consumer interest, more Multiple Listing Services are incorporating data entry fields to identify a property's green features; 43 percent of respondents report their MLS has green data fields, and only 19 percent do not. Realtors® see great value in promoting energy efficiency in listings with seven out of 10 feeling strongly about the benefits in promoting those features to clients. The survey asked respondents about renewable energy and its impact on the real estate market. A majority of agents and brokers (80 percent) said that solar panels are available in their market; forty-two percent said solar panels increased the perceived property value. Twenty-four percent of brokers said that tiny homes were available in their market, compared to 61 percent that reported tiny homes were not yet available. When asked about involvement with clients and green properties, 27 percent of agents and brokers were involved with 1 to 5 properties that had green features in the last 12 months. Seventy percent of members worked with no properties that had green features, leaving a great deal of room for future growth. The home features that Realtors® said clients consider as very or somewhat important include a home's efficient use of lighting (50 percent), a smart/connected home (40 percent), green community features such as bike lanes and green spaces (37 percent), landscaping for water conservation (32 percent), and renewable energy systems such as solar and geothermal (23 percent). When it comes to the sustainable neighborhood features for which clients are looking, 60 percent of Realtors® listed parks and outdoor recreation, 37 percent listed access to local food and nine percent listed recycling. The transportation and commuting features of a community that Realtors® listed as very or somewhat important to their clients included walkability (51 percent), public transportation (31 percent) and bike lanes/paths (39 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. To further position NAR as a leader in real estate sustainability topics with consumers, Realtors®, brokers and allied trade associations, the REALTOR® Sustainability Program surveyed Realtors® pertaining to sustainability issues facing consumers and the industry. NAR plans to use this report to better benchmark Realtor® understanding of sustainability. The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing over 1.2 million members involved in all aspects of the residential and commercial real estate industries.
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Redfin Quantifies the Effect of Public Transportation Access on Home Prices
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CoreLogic Issues US Residential Foreclosure Crisis Decade in Review
  IRVINE, Calif., March 14, 2017—CoreLogic®, a leading global property information, analytics and data-enabled solutions provider, today released a 10-year retrospect of the U.S. residential foreclosure crisis, "United States Residential Foreclosure Crisis: 10 Years Later." The report examines the path of the residential foreclosure crisis beginning with the relatively healthy years early in the 2000s, through the peak of the crisis, to present day. The country has started to normalize, recording approximately 22,000 completed foreclosures a month. Completed foreclosures reflect the total number of homes lost to foreclosure. The foreclosure crisis began in some parts of the country as early as 2007 and later peaked nationwide in September 2010, with approximately 120,000 completed foreclosures occurring during that single month. Throughout the crisis years, CoreLogic monitored completed foreclosures, the foreclosure inventory and the serious delinquency rate. Many economists mark the beginning of the foreclosure crisis with the collapse of two Bear Stearns subprime funds in June 2007, with the crisis deepening as a result of the Lehman Brothers bankruptcy in September 2008. Since the beginning of 2007, there have been approximately 7.8 million completed foreclosures nationally. Beginning in Q2 2004 when homeownership rates peaked, there have been approximately 8.6 million homes lost to foreclosure. At the end of 2016, the national foreclosure inventory, which reflects all homes in some stage of the foreclosure process, included approximately 336,000, or 0.9 percent, of all homes with a mortgage compared with 1.4 million homes, or 3.3 percent, at the peak of the residential foreclosure crisis in September 2010. "The country experienced a wild ride in the mortgage market between 2008 and 2012, with the foreclosure peak occurring in 2010," said Dr. Frank Nothaft, chief economist for CoreLogic. "As we look back over 10 years of the foreclosure crisis, we cannot ignore the connection between jobs and homeownership. A healthy economy is driven by jobs coupled with consumer confidence that usually leads to homeownership." During the housing crisis, CoreLogic also reported the number of mortgages in serious delinquency, defined as 90 days or more past due, including loans in foreclosure or REO. The delinquency rate (payments past due by 30, 60 or 90 days) continues to be a leading indicator of troubled markets. At the end of 2016, 1 million mortgages, or 2.6 percent of homes with a mortgage, were in serious delinquency, compared to the serious delinquency peak of 3.7 million mortgages, or 8.6 percent of homes with a mortgage, were in serious delinquency, in January 2010. In recent years, the decline in serious delinquencies has been geographically broad throughout the country with year-over-year decreases from December 2015 to December 2016 in 48 states and the District of Columbia. Highlights of the Residential Foreclosure Crisis: The national completed foreclosure total peaked in 2010 with approximately 1.2 million foreclosures for the year; closely followed by just over 1 million completed foreclosures in 2009. From the peak in 2010, the completed foreclosures steadily declined each year, dropping by nearly 100,000 completed foreclosures per year through 2016. The state with the highest percent of mortgages in the foreclosure inventory was Florida, during June 2011, with 12.5 percent of homes in some stage of the foreclosure process. Of the 10 largest Core Based Statistical Areas (CBSAs) as measured by population, Miami-Miami Beach-Kendall, FL had the highest percent of all homes with a mortgage in the foreclosure inventory at its peak in February 2011. *2016 data was revised. Revisions are standard, and to ensure accuracy CoreLogic incorporates newly released data to provide updated results. **Unemployment data provided by the Bureau of Labor Statistics (BLS). City boundaries may not be identical as CoreLogic uses Core Based Statistical Areas (CBSAs) as defined by the Office of Management and Budget (OMB). Methodology The data in this report represents foreclosure activity reported through December 2016. This report separates state data into judicial versus non-judicial foreclosure state categories. In judicial foreclosure states, lenders must provide evidence to the courts of delinquency in order to move a borrower into foreclosure. In non-judicial foreclosure states, lenders can issue notices of default directly to the borrower without court intervention. This is an important distinction since judicial states, as a rule, have longer foreclosure timelines, thus affecting foreclosure statistics. A completed foreclosure occurs when a property is auctioned and results in the purchase of the home at auction by either a third party, such as an investor, or by the lender. If the home is purchased by the lender, it is moved into the lender's real estate-owned (REO) inventory. In "foreclosure by advertisement" states, a redemption period begins after the auction and runs for a statutory period, e.g., six months. During that period, the borrower may regain the foreclosed home by paying all amounts due as calculated under the statute. For purposes of this Foreclosure Report, because so few homes are actually redeemed following an auction, it is assumed that the foreclosure process ends in "foreclosure by advertisement" states at the completion of the auction. The foreclosure inventory represents the number and share of mortgaged homes that have been placed into the process of foreclosure by the mortgage servicer. Mortgage servicers start the foreclosure process when the mortgage reaches a specific level of serious delinquency as dictated by the investor for the mortgage loan. Once a foreclosure is "started," and absent the borrower paying all amounts necessary to halt the foreclosure, the home remains in foreclosure until the completed foreclosure results in the sale to a third party at auction or the home enters the lender's REO inventory. The data in this report accounts for only first liens against a property and does not include secondary liens. The foreclosure inventory is measured only against homes that have an outstanding mortgage. Generally, homes with no mortgage liens are not subject to foreclosure and are, therefore, excluded from the analysis. Approximately one-third of homes nationally are owned outright and do not have a mortgage. CoreLogic has approximately 85 percent coverage of U.S. foreclosure data. 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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Survey: Most Home Sellers Tried To Negotiate Real Estate Agent Commissions Last Year
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NAR HOME Survey: Economic, Financial Optimism Surges; Renters Lukewarm About Buying
  WASHINGTON (March 15, 2017) — Multiple years of uninterrupted job gains and hope that the best is yet to come in 2017 are igniting consumer confidence across the country, and especially in rural and middle America, according to new consumer survey findings from the National Association of Realtors®. The survey additionally found a growing disparity among renters who think it's a good time to buy and homeowners who think it's a good time to sell. In NAR's ongoing quarterly Housing Opportunities and Market Experience (HOME) survey, respondents were asked about their confidence in the U.S. economy and various questions about their housing expectations. In the first three months of 2017, the share of households believing the economy is improving soared to its highest share in the survey's five-quarter history (62 percent), and is up from 54 percent last quarter and 48 percent in March 2016. In an extraordinary reversal from previous quarters, NAR Chief Economist Lawrence Yun says the surge in positive sentiment about the economy is primarily from respondents living in the Midwest (67 percent; 51 percent last quarter) and rural areas (63 percent; 43 percent last quarter). Last March, only 49 percent of Midwesterners and 35 percent of those living in rural areas thought the economy was improving. "Confidence levels generally rise after a presidential election as the nation hopes for the best. Even though it is a highly polarized country, consumers for the most part have upbeat feelings about the economy right now," he said. "Stronger business and consumer morale typically lead to even more hiring and spending, which in turn encourages more households to make big decisions like buying a home. These positive developments would be especially good news for prospective homebuyers in the more affordable Midwest region." Higher confidence in the economy is also translating to better feelings about households' 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 to its highest reading in the survey, climbing to 62.6 in March from 59.8 in December 2016. A year ago, the index was 58.1. Affordability and inventory challenges dimming renter optimism On the cusp of the busy spring season, most households believe now is a good time to buy a home. However, confidence continues to trickle backwards among renters. Fifty-six percent of renters said now is a good time to buy, which is down both from last quarter (57 percent) and a year ago (62 percent). Eighty percent of homeowners (78 percent in December 2016; 82 percent in March 2016) think now is a good time to make a home purchase. Younger households, renters and those living in the costlier West region – where prices continue to spike – are the least optimistic. "Inventory conditions are even worse than a year ago and home prices and mortgage rates are on an uphill climb," added Yun. "These factors are giving many renter households a pause about it being a good time to buy, even as their job prospects improve and wages grow. Unless there's a significant boost in supply levels this spring, these constraints will unfortunately slow or delay some prospective buyers' pursuit of purchasing a home." Led by the West, more homeowners view selling favorably right now One promising trend that could alleviate supply shortages is the notable bump in the share of respondents this quarter who believe now is a good time to sell a home. Sixty-nine percent of homeowners think now is a good time to sell, which is up from last quarter (62 percent) and a year ago (56 percent). Continuing the trend over the past year, those in the West continue to be the most likely to think now is a good time to sell (77 percent), while also being the least likely to think it's a good time to buy (61 percent). NAR President William E. Brown, a Realtor® from Alamo, California, says homeowners looking to trade up or move down this spring could find themselves in a tricky spot without careful planning and a reliable expert on their side. "Demand far outpaces supply in many parts of the country right now, which means homeowners will likely sell their home much quicker than the time it takes to buy another," he said. "Before listing, it's best to have a carefully crafted plan in place. In addition to assisting in the hunt for a new home, a Realtor® is an invaluable negotiating partner in the common situation where a buyer's new home purchase is contingent upon selling their property currently up for sale." About NAR's HOME survey In January through early March, a sample of U.S. households was surveyed via random-digit dial, including half via cell phones and the other half via 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 2,698 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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NAR Survey Finds Gen X on the Mend; More Children Living with Millennials and Boomers
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Independent Study Finds Redfin Estimate to be Most Accurate Among Top Automated Home-Value Estimates
SEATTLE -- Redfin, the next-generation real estate brokerage, today announced the findings of a comprehensive, independent study that found that the Redfin Estimate more accurately predicted the value of thousands of homes for sale than estimates from other leading providers of public home-value estimates. Of the more than 5,000 home sales evaluated in the study, 64 percent sold within 3 percent of the price predicted by Redfin, compared to 29 percent for Zillow and 16 percent for Homes.com. The median error rate of the home-value estimate was 2.06 percent for Redfin, 5.95 percent for Zillow and 10.26 percent for Homes.com. Redfin commissioned independent research company SSRS to conduct the study. SSRS is an award-winning social science and market research firm with widely cited research on topics including the presidential election, government-provided health insurance, mobile e-commerce, immigration, opioid abuse, perceptions of disabled veterans and racial attitudes among children. The firm's clients and partners include the Harvard T.H. Chan School of Public Health, the Pew Research Center, the George W. Bush Presidential Center, the Sesame Street Workshop, the Atlantic and The New York Times. "Our findings are clear: Redfin performed significantly better than Zillow and Homes.com at predicting home-sale prices," said Dr. Aniruddha Banerjee, SSRS's senior vice president of advanced analytics. "We hope that others attempt to replicate our results. Our methodology for coming to this conclusion was consistent with the rigorous approaches taken at academic institutions." Comparison of Redfin, Zillow and Homes.com Home-Value Estimates "Artificial intelligence is now being applied to the most fundamental questions in commerce, government and society, to make startlingly accurate predictions about global temperatures, stock-market prices, political movements and, for individual Americans, the value of their homes," said Adam Wiener, Redfin's executive in charge of data science. "And this is not like earlier victories for artificial intelligence, like beating a chess champion or winning at Jeopardy; it has supreme practical value for someone trying to make big decisions about what she can afford and where to live. What's most compelling about these predictions is not just their practical value, but that they can be proven right or wrong. When Redfin or another application says a listing is worth $325,000, we don't have to argue about who was right, we just have to wait for the final sale." Study Methodology Each Sunday through Thursday between Oct. 19 and Nov. 30, 2016, for the 194 census-defined U.S. metropolitan areas where Redfin has listing and estimate data, Redfin sent SSRS a file including all residential homes that had a new sale pending. From this file, SSRS randomly selected 500 to 1,000 homes each day, until by Nov. 30 a total of 24,789 pending sales were under evaluation. The homes in this sample spanned 7,531 postal codes and 189 census-defined metropolitan areas, and included single-family homes, townhouses, co-ops and condominiums. Within 36 hours of being notified about the pending sale of a home, SSRS noted the home-value estimates from Redfin, Zillow and Homes.com. When the home sold and its sale price was published, SSRS then compared the estimated values with the actual sales price. 6,338 had closed by November 30. 5,661, or 89 percent of the closed sales, had home-value estimates from both Zillow and Redfin. 5,074, or 80 percent, had home-value estimates from both Homes.com and Redfin. Why the Redfin Estimate is Accurate To calculate the Redfin Estimate, Redfin evaluates billions of data points using proprietary machine-learning software running on next-generation cloud technology. Because Redfin is a broker, the company has complete access to the Multiple Listing Services used by real estate agents to describe properties in extensive detail, with each MLS tracking different attributes of a home that Redfin can use to calculate a more accurate estimate, such as whether a home is located on the water, has a view or faces a busy street. The Redfin Estimate error rate is dynamic and fluctuates depending on the data available at a given time. Redfin posts the most current national and local error rates on the Redfin Estimate page. The error rate updates daily for on-market homes and weekly for off-market homes. The Redfin Estimate is available for more than 65 million homes in major U.S. metropolitan areas. Zillow estimates the value of more than 100 million homes, covering areas beyond those major metros. Homes.com does not publish its estimate coverage. To view the full study, 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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NAR, Realtor.com® Identify Growing Rift Between Housing Availability and Affordability
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When Buying, Selling and Renovating, it’s an Animal House, Say Realtors®
  WASHINGTON (February 13, 2017) — When making decisions about buying, selling or renovating their homes, Americans, by and large, take their pets' needs into account, according to a new report from the National Association of Realtors®. The 2017 Animal House: Remodeling Impact report found that 81 percent of respondents said that animal-related considerations play a role when deciding on their next living situation. "In 2016, 61 percent of U.S. households either have a pet or plan to get one in the future, so it is important to understand the unique needs and wants of animal owners when it comes to homeownership " said NAR President William E. Brown, a Realtor® from Alamo, California and founder of Investment Properties. "Realtors® understand that when someone buys a home, they are buying it with the needs of their whole family in mind; ask pet owners, and they will enthusiastically agree that their animals are part of their family." In fact, according to the survey, 99 percent of pet owners said they consider their animal part of the family, and this becomes apparent in the sacrifices pet owners are willing to make when it comes to buying and selling homes. Eighty-nine percent of those surveyed said they would not give up their animal because of housing restrictions or limitations. Twelve percent of pet owners have moved to accommodate their animal, and 19 percent said that they would consider moving to accommodate their animal in the future. Realtors® who were surveyed indicated that one-third of their pet-owning clients often or very often will refuse to make an offer on a home because it is not ideal for their animal. Realtors® also noted that 61 percent of buyers find it difficult or very difficult to locate a rental property or a homeowners association that accommodates animals. When it comes to selling, 67 percent of Realtors® say animals have a moderate to major effect on selling a home. Approximately two-thirds of Realtors® say that they advise animal owning sellers to always replace thing in the home damaged by an animal, have the home cleaned to remove any animal scents and to take animals out of the home during an open house or showing. Nearly half of all survey respondents, 52 percent, indicated that they had completed a home renovation project specifically to accommodate their animal. Of those who undertook projects, 23 percent built a fence around their yard, 12 percent added a dog door and 10 percent installed laminate flooring. Ninety-four percent of consumers indicated that they were satisfied with their renovation; 58 percent indicated they have a greater desire to be at home and 62 percent enjoy spending more time at home since completing their renovation. When it comes to the enjoyment homeowners gain from these projects, fencing in a yard and installing laminated floors rated highest, both receiving Joy Scores of 9.4; Joy Scores range between 1 and 10, and higher figures indicate greater joy from the project. Adding a dog door came in a close second with a Joy Score of 9.2. A majority of surveyed animal owners, 83 percent, indicated that they own a dog, which helps explain the overwhelming popularity of dog-related renovation projects. Forty-three percent of those surveyed said they own a cat, 9 percent own a bird, reptile, amphibian, arthropod, small mammal, or miniature horse, 8 percent a fish and 5 percent own a farm animal. NAR members were also surveyed about their relationships with animals, with 80 percent of Realtors® considering themselves animal lovers and 68 percent indicating that they have pets of their own. Twelve percent of Realtors® surveyed volunteer for an organization that helps animals, and 21 percent plan to volunteer in the future. The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing more than 1.2 million members involved in all aspects of the residential and commercial real estate industries.
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Redfin Names the Best Cities for Living Without a Car
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Solar Power is an Untapped Resource in These 10 Cities
SEATTLE--The Northeast region of the United States may not seem like an ideal area for solar power, but there is actually a lot of untapped solar potential in that part of the country. Redfin, the next-generation real estate brokerage, teamed up with Sun Number, a U.S. Dept. of Energy SunShot-funded startup that has developed a patented, automated process for analyzing the solar potential of rooftops, to find out which U.S. cities have the most untapped solar potential. The company, which assigns cities a Sun Number based on a scale of 1 to 100, looked at cities with an average Sun Number above 70 in the Northeast. Redfin then looked at those areas with the lowest percentage of homes mentioning "solar panels" in their listing description to come up with the top 10 cities for untapped solar potential. "Buying a solar energy system will likely increase your home's value," says the Department of Energy. "A recent study found that solar panels are viewed as upgrades, just like a renovated kitchen or a finished basement, and home buyers across the country have been willing to pay a premium of about $15,000 for a home with an average-sized solar array. Additionally, there is evidence that homes with solar panels sell faster than those without." Here are the 10 cities in the Northeast U.S. with the most untapped solar potential: Providence, Rhode Island Rochester, New York Syracuse, New York Worcester, Massachusetts Buffalo, New York Boston, Massachusetts Newark, New Jersey August, Maine Albany, New York Concord, New Hampshire To read the full report, complete with more information on each city, please click here. About Redfin Corporation 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 highly accurate automated home-value estimate. 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 $31 billion in home sales and saved customers more than $335 million in fees through 2015.
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NAR Finds Real and Imaginary Barriers Holding Back Prospective Homebuyers
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Redfin Predicts the Hottest Neighborhoods of 2017
SEATTLE — Jan. 19, 2017 — Redfin, the next-generation real estate brokerage, today announced its annual list of neighborhoods across the country it predicts will be the hottest this year, topped by Bushrod in Oakland. To rank the neighborhoods that are heating up the most, the brokerage analyzed hundreds  of millions of pageviews to Redfin.com and homes that users favorited to monitor for price and status changes. The analysis also takes into account insights from Redfin real estate agents who specialize in neighborhoods across these 39 major U.S. metros. High-growth job centers are driving this year's list of hottest neighborhoods; the top three hottest neighborhoods all sit close to San Francisco and Seattle. But while home prices continue to rise in the centers of these booming tech cities, homebuyers are increasingly focusing their searches in neighboring cities like Oakland, Bellevue and Sunnyvale. Redfin real estate agents explain that these communities offer homebuyers the best balance of everything: quick access to  public transit, trendy shopping and dining options, plus larger move-in ready homes with charm and price tags that are a little easier to bear. "Bushrod is a quaint enclave of homes with unique character nestled between the more established (and expensive) area of Rockridge and the increasingly trendy hot spot of Temescal. From Bushrod you can walk to some of the Bay Area's best  restaurants on College Ave. It's also walking distance to either the Ashby or Rockridge BART stations," said Redfin real estate agent Tom Hendershot. "Homebuyers often come to the area hoping to find something in Rockridge and ultimately realize they can have an even better lifestyle at a lower cost in Bushrod. This may not last for long though -- a two-bedroom starter home in this neighborhood recently sold for $200,000 over the list price and was off the market in 10 days." Other neighborhoods that made the top 10 list, such as Eliot in Portland, Hollywood Park in Sacramento and Treme in New Orleans, are located in second-tier cities, which Redfin predicted would be particularly popular in 2017. Many of those  neighborhoods also feature renovated homes that preserve the nature and charm of the area while offering updated amenities. "Redfin research shows that over the past five years, home prices in urban cores have shot up 50 percent faster than in the metro areas as a whole," said Redfin chief economist Nela Richardson. "Our data on homebuyer activity shows that this year people are bypassing the most expensive areas in the center city in search for high-end amenities and  renovated homes that are a few train or bus stops outside the city limits. The hottest neighborhoods of 2017 will be those edge communities that deliver urban convenience at prices that are closer to earth." To view the full report, complete with analysis and rankings for the top three hottest neighborhoods in each of the 39 metros, click here. Customizable data on all of the metros Redfin tracks in this report is available to view and download on Redfin's Data Center. 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 highly accurate automated home-value estimate. 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 $31 billion in home sales and saved customers more than $335 million in fees through 2015. For more information or to contact a local Redfin real estate agent, visit www.redfin.com.
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Among Top Home Buyer Challenges for 2017, Rising Mortgage Rates Are Dampening First-Time Buyer Plans for Spring
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Real Estate Leaders Identify Pivotal Business Challenges for 2017
January 16, 2017 – Bellevue, WA – As they grow less confident in the economy, top real estate executives at firms of all sizes find themselves united by a key concern for 2017: Agent recruitment and retention. In the latest Imprev Thought Leader survey, 85% of participants agree that recruiting more agents is their most critical business challenge. The challenge continues when it comes to reaching younger agents; over 52% ranked "attracting younger agents" among their top concerns. A broker owner of a major franchise office in Minnesota gives depth to his recruiting worries: "Recruiting is and always has been our biggest challenge. While we continue to grow, it's never at the pace we want it to be. While recruiting younger, less-experienced agents has improved for us this year, we've noticed increased difficulty in recruiting the top talent." Many boutique firms are also worried about the competition for talent. In Southern California, a leader of a smaller brokerage laments that her top recruiting challenge is "being able to offer agents alternative motivation to stay or join our firm. We are a family-run boutique business and cannot compete with the money of the heavily-backed firms." Agent productivity is also top of mind for the top real estate executives and broker owners surveyed. 44% of participants rank "getting agents to use broker-provided technology" as their next critical business concern—beating out lead generation (34%) and lead follow-up (36%). A broker owner in California struggles to get "user adoption of tools that will help agents communicate with their clients," while a Dallas-area broker owner says, "We feel confident in our technology we have in place; we need to continue to teach and train for this technology." When it comes to technology, leaders face a myriad of challenges. More than half of survey respondents rank "getting our systems to work together" as their most critical technology challenge for 2017. It's a struggle to have "technology that is cohesive," says a broker owner at a top Southwestern Florida brokerage. Better technology integration isn't their only worry. Leaders said having "systems for more effectively competing against the RE portals for generating leads" (44%) and "increasing mobile capabilities for agents" (36%) are their next pressing concerns. A Houston, Texas broker running a major franchise office shares his goal of seeing "seamless integration of the transaction, from agent to corporate to closing, and simplified use of mobile devices to enter all data across the company," while the leader of smaller Florida brokerage notes her battle is to "stay on top of technology to compete with bigger brokers." "Real estate leaders clearly believe that the technology they provide to their agents is widely underused," says Renwick Congdon, Chief Executive Officer of Imprev. "So how does the industry begin to improve agent adoption? By reducing complexity. Systems need to seamlessly fit into the agent's business and process. Integrated and connected platforms—rather than 'apps' and standalone solutions—are imperative to successfully compete with the portals." Beautifully summing up the struggle to stay relevant in an ever-growing competitive landscape, a broker owner of a large franchise office in Nevada says her top concern is "ensuring we remain relevant to our agents and that we are leading them toward the future, rather than having the future 'happen' and we weren't prepared." The annual Imprev Thought Leader Real Estate Confidence study, one of the most comprehensive in real estate, was created in 2012 by Imprev to provide insight on key business challenges top executives and broker owners face, encouraging an exchange of ideas and solutions among industry thought leaders. This latest study was conducted from October 18 to November 1, 2016, polling nearly 240 real estate leaders who represent brokerages responsible for more than half of all U.S. residential real estate transactions last year. 26% represent firms with 100 agents or fewer; 42% represent firms with 101 to 500 agents; 17% represent firms with 501 to 1,000 agents; and 15% of the respondents represented firms with more than 1,000 agents. Survey demographics show 31% of participants are female and 69% are male. More than one-third are 61 years old or older, 32% are ages 51 to 60, 23% are ages 41 to 50, 8% are ages 31 to 40, and 1% are under the age of 30. You can view the first round of findings from this latest study here. About Imprev Imprev, Inc. provides Automated Marketing Services, including Listing Automation, agent recruiting, email campaigns, and Marketing Centers for many of the largest and most respected brands in real estate. Imprev's unique, integrated solution drives synergy between the broker and agent's marketing—empowering agents to effortlessly promote their listings, brands, and brokerages through custom digital, social media, and print creative. Established in 2000, Imprev is headquartered in Bellevue, Washington. Discover more at www.imprev.com.
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Survey Finds Voice Control Next Big Thing in Smart Home Technology
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Home Sales Expected to Expand Modestly in 2017 as Affordability Pressures Temper Buyer Enthusiasm
  WASHINGTON (December 14, 2016) — Existing-home sales are forecast to muster only a small gain in 2017 because of increasing mortgage rates and shrinking consumer confidence that now is a good time to buy a home, according to new consumer survey findings and a 2017 housing forecast update from the National Association of Realtors®. In NAR's fourth quarter Housing Opportunities and Market Experience (HOME) survey, respondents were asked about their confidence in the U.S. economy and their housing expectations in 2017. With the calendar turning to a new year in a couple weeks, the survey found that a majority of households believes now is a good time to buy a home. However, confidence has retreated by a considerable amount amongst renters. Fifty-seven percent of renters said now is a good time to buy, which is down from 60 percent in September and 68 percent a year ago. Seventy-eight percent of homeowners (unchanged from September; 82 percent in December 2015) think now is a good time to make a home purchase. Lawrence Yun, NAR chief economist, says declining affordability in many parts of the country is behind the weakening morale. "Rents and home prices outpacing incomes and scant supply in the affordable price range has been a prominent headwind for many prospective buyers this year," he said. "Making matters worse, the unwelcoming reality of higher mortgage rates since the election is likely further holding back confidence. Younger households, renters and those living in the costlier West region — where prices have soared in recent months — are the least optimistic about buying." Even with this year's slow dip in buyer enthusiasm, existing-sales are still expected to close 2016 3.3 percent higher than 2015 and reach around 5.42 million — the best year since 2006 (6.47 million). In 2017, sales are forecast to grow roughly 2 percent to around 5.52 million. The national median existing-home price is expected to rise to around 5 percent this year and 4 percent in 2017. By the end of next year, mortgage rates are expected to reach around 4.6 percent, and the Federal Reserve is expected to raise the Fed funds rate a few more times to 1.25 percent. "Although the economy is expected to continue to expand with around 2 million net new job creations, existing home sales are expected to see little expansion next year because of affordability tensions from rising mortgage rates and prices continuing to outpace income growth," said Yun. Despite these headwinds, Yun is hopeful that the continued job growth, any economic stimulus from the new administration and more millennials reaching their prime buying years will keep demand for the most part on solid footing. The key will ultimately come down to what the housing market desperately needs: more inventory. However, more expensive mortgage rates could also slow the pace of homeowners listing their home for sale. "Some would-be sellers may be reluctant to move up or trade down — especially if they've refinanced in recent years," said Yun. "That's why it's extremely necessary for homebuilders to step-up their production of homes catered to buyers in the affordable price range. Otherwise the nation's low homeownership rate will struggle to shift higher in 2017." NAR President William E. Brown, a Realtor® from Alamo, California, says buyers searching for available homes in a tight market next year can get ahead by working with a Realtor® who's very familiar with the buyers' targeted area. "A Realtor® will have their pulse on current market conditions and can ensure a buyer is only searching for and making offers on a home that fits within the budget." Brighter enthusiasm about the direction of the economy, personal financial outlook mostly unchanged This quarter's survey found that another full year of robust job gains and lower unemployment is finally translating into stronger confidence about the economy. The share of households believing the economy is improving has increased quite a bit (to 54 percent) since the third quarter (48 percent), and is currently at its highest share since the survey's debut a year ago. The most optimistic about the economy are those under the age of 44, living in urban areas and with higher incomes. The HOME survey's monthly Personal Financial Outlook Index, 2 showing respondents' confidence that their financial situation will be better in six months, has picked up a tad (to 59.8 in December) since September (58.6) and is mostly in line with the sentiment from respondents a year ago (59.6). In 2016, the index was its highest in May (61.1). Roughly two-thirds think it's a good time to sell, most expect prices to hold steady or increase With price growth holding steady in most of the country since the summer, roughly the same amount of homeowners (62 percent) believe it is a good time to sell compared to the third quarter of this year (63 percent). As has been the case all year, respondents in the West continue to be the most likely to think now is a good time to sell, while also being the least likely to think it's a good time to buy. Mirroring current conditions in most markets and unchanged from last quarter, nearly all of those surveyed (91 percent) believe that prices will stay the same or rise in their community in the next six months. Respondents living in suburban areas, renters and those from the West are most likely to believe prices will go up in their communities. About NAR's HOME survey In October through early December 2016, a sample of U.S. households was surveyed via random-digit dial, including half via cell phones and the other half via 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 2,776 household responses are represented. The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing over 1.2 million members involved in all aspects of the residential and commercial real estate industries.
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Interest Rates Are on the Minds of Consumers in Berkshire Hathaway HomeServices’ Latest Homeowner Sentiment Survey
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Real Trends Releases 2016 Brokerage Performance Study
  Castle Rock, Colorado – DECEMBER 8, 2016 — REAL Trends, the trusted source for news, research and information about the real estate brokerage industry, recently released its 2016 Online Performance Study, a practical guide to technology and marketing for real estate brokerages. The study is broken down to show how technology and marketing intersect with each step of the real estate process—starting before consumers know they are ready to look for a home and culminating with clients for life and relationship management strategies to implement long after the sale. New this year will be expanded areas on video, social media, predictive marketing and online reputation management. Some highlights include: Website stickiness. One of the strongest correlations to the overall effectiveness and stickiness of your website is the average time spent on site. In this study, the average of the sample was 289 seconds, or 4 minutes and 49 seconds, with a high of 416 seconds (6 minutes 56 seconds) and a low of 79 seconds (1 minute and 19 seconds). Facebook is king. Looking deeper at the social side of traffic generation, there still isn't much of a conversation outside of Facebook, with 97 percent of brokers' traffic generated from the most popular social network. LinkedIn was a surprise second at 1.4 percent, followed by Yelp (0.48%), Twitter (0.38%), Pinterest (0.36%) and Instagram (0.07%) Predictive marketing is hot. Target real estate intenders—people who have visited or shown interest in real estate. With predictive marketing, you can predict this behavior based on the sites they visited, contextual behavior or social activity. You may also target people who are real estate professionals or interested in a real estate career. You can hone in on certain key leading activities that will likely lead the consumer to make a real estate decision and more. To order the REAL Trends 2016 Online Performance Study, click here.
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Survey: Nearly 50 Percent of Homeowners Do Not Have a 'Go-To' Real Estate Agent
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Consumers and Realtors Show Greater Interest in Smart Home Technologies, Certifications
  WASHINGTON (November 30, 2016) — As smart homes become more popular among consumers, buyers and sellers are showing greater interest in those homes and smart-home technologies and Realtors® in a certification to acknowledge their experience and expertise in those features. This is according to the National Association of Realtors®' inaugural Smart Homes and Realtors® report, which found that Realtors® are becoming more interested in a smart home certification, despite the fact that only 15 percent of agents are receiving questions about smart home technology from their clients. According to the report, which analyzed the importance of smart home technology to Realtors®, 42 percent of respondents stated they are interested in acquiring a smart home certification, while 22 percent are not interested and 36 percent were undecided. "More homeowners are adopting smart-home technology and that will likely impact buyers' purchase decisions in the future. While consumer interest in this trend is still developing, Realtors® are becoming well-versed in successfully marketing smart homes and their features, such as devices and appliances," said NAR President William E. Brown, a Realtor® from Alamo, California and founder of Investment Properties, a division of his family real estate business. Of the respondents who are interested in a smart home certification, 23 percent of agents have one-year experience or less, whereas 54 percent have more than 16 years of experience. There is greater interest in a smart home designation for agents over 55 years of age (47 percent), compared to agents 45 years or younger (30 percent). In terms of smart home devices, 37 percent of Realtors® said clients find smart locks to be very important, followed by lights at 29 percent and thermostats at 26 percent. Forty-three percent said clients were neutral about the importance of voice control features and 38 percent for smart appliances and doorbells. When it comes to the importance of smart home functions to their clients, 80 percent of Realtors® see security as very or somewhat important. Nearly half of Realtors® view privacy as a very important smart home function to their clients, while 30 percent see it as somewhat important. Four in ten Realtors® see both cost savings and energy savings to be very important to their clients and 38 percent see comfort to be a very important smart home function. According to the report, slightly more than half of Realtors®' clients were not familiar with what's available for smart home technology. Nearly 40 percent of Realtors® discussed security and privacy issues with their clients followed by technology cost at 31 percent and interoperability at 6 percent. Of the many types of smart home technologies available, 42 percent of Realtors® said clients were most interested in smart home devices, followed by whole home technology (22 percent) and smart home technology for specific rooms (13 percent); 41 percent of clients were not interested in any of these technologies. "As smart home technologies evolve, it's extremely important that our members are aware of what's available and what advantages and challenges these devices provide," said Mark Lesswing, chief technology officer at NAR. "The work we're doing at NAR's Center for Realtor® Technology is key to this understanding. This report helps us understand how our work is impacting our members." The mission of NAR's Center for Realtor® Technology is to track emerging technologies that will affect real estate, educate its members, advocate for the proper use of technology, and innovate when there is a gap between what is needed and what is available. In 2015, CRT established a lab to investigate smart home/internet of things devices, renewable energy, urban agriculture and building materials, as well as any other emerging technologies as they become evident. CRT is working with national laboratories, universities, government and non-governmental organizations, and vendors to help promote NAR as an agent for technology research and innovation. CRT plans to use this report to benchmark its efforts in educating members on smart home technology. The goal is to help Realtors® help their clients better understand the market and advocate for their proper and safe use of these products and devices. To find out about other initiatives from NAR's Center for Realtor® Technology & CRT Labs, visit https://crtlabs.org. The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing over 1.1 million members involved in all aspects of the residential and commercial real estate industries.
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New CoreLogic Analysis Shows the Number of Homes Damaged by a Large Earthquake Impacting Northern and Southern California Simultaneously Could More than Double
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Redfin Study: Have Stocks or Housing Recovered More Since the Great Recession?
SEATTLE — Nov. 14, 2016 — The typical stock portfolio offered a higher return on investment than the typical home from January 2010 to May 2016, according to Redfin, the next-generation real estate brokerage. In partnership with investment advisory firm FutureAdvisor, Redfin's latest analysis compared gains in median home prices with returns on a median stock portfolio in 24 major U.S. metro areas. While there were slight variations, a median financial portfolio earned between 63 and 70 percent since 2010 in each of the 24 metros studied, offering a higher rate of return than the housing market in all but four metros. The exceptions were Miami (where home prices increased 73.3%) and three metros in Northern California: San Jose (74.7%), San Francisco (72.7%) and Oakland (67.6%). These were all housing markets where prices skyrocketed and crashed the most during the bubble years. Other metros, such as Philadelphia (home prices up 11%) and Baltimore (11.4%), have had a more steady recovery. Their residents would have had a much higher return investing in stocks than in the housing market during this time. However, a great deal of value can be derived from a home purchase beyond its price appreciation. "There are pros and cons to any investment, but real estate is unique in that it offers the advantage of forced savings through the monthly mortgage payment," said Redfin chief economist Nela Richardson. "The fact that homeowners build an increasing share of equity just by paying their mortgages every month enforces a savings discipline on consumers that is absent in stocks. For this reason, real estate historically has served as the primary engine of wealth creation, particularly for the middle class." In most cities, multi-family buildings, condos and co-ops had higher appreciation than single-family homes. The best time to buy in 2010 was December, with home prices appreciating 46 percent since then, compared to just 36.8 percent for homes purchased in June of that year. To read the full report, complete with additional data, visualizations and analysis, visit here. About Redfin Corporation 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 highly accurate automated home-value estimate. 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 $31 billion in home sales and saved customers more than $335 million in fees through 2015. For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. About FutureAdvisor FutureAdvisor is an award-winning digital advisory firm based in San Francisco serving clients nationwide. With a focus on collaborating with major financial institutions, FutureAdvisor's technology helps firms provide financial advice digitally to their customers. Their software actively monitors and manages clients existing 401(k)s, IRAs and taxable accounts from a household-wide, long-term perspective. FutureAdvisor was awarded the World Economic Forum's Technology Pioneer award in 2015, and Euromoney's Best American Wealth Management Innovator award in 2014. They were acquired by BlackRock in October 2015 as part of BlackRock Solutions,® which offers risk management, advisory and enterprise investment system services to a broad base of institutional investors. For more information, visit www.futureadvisor.com.
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Just-Released FHA Report Shows Fresh Opportunity to Make Homeownership More Affordable
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NAR 2017 Forecast: Existing-Home Sales Up; A Turning Point for First-time Buyers
  ORLANDO, Fla. (November 4, 2016) – More millennials entering their prime homebuying years, rising household formation, and continued job gains boosting overall demand are expected to be behind the slight increase in existing-home sales in 2017, according to a residential housing and economic forecast session here at the 2016 REALTORS® Conference & Expo. Lawrence Yun, chief economist of the National Association of Realtors®, presented his 2017 housing and economic forecast and was joined onstage by Dennis Lockhart, president and CEO of the Federal Reserve Bank of Atlanta, who discussed the economic conditions that he believes support what will be a "net positive" for the housing sector. Heading into the final months of data for 2016, Yun expects existing-home sales to finish at a pace of about 5.36 million – the best year since 2006 (6.47 million). In 2017, sales are forecast to grow roughly 2 percent to around 5.46 million, and then with a more prominent jump of 4 percent in 2018 (5.68 million). The national median existing-home price is expected to rise to around 4 percent both this year and in 2017. In front of a packed room of thousands of Realtors® and industry guests, Yun and Lockhart both commented that the housing market this year has been a mixed bag of positives and challenges. "The gradually expanding economy, multiple years of steady job creation and mortgage rates under 4 percent all contributed to sizeable interest in buying a home this year," said Yun. "However, it's evident that demand and sales slightly weakened over the summer as stubbornly low supply limited buyers' choices, accelerated price growth and hindered some consumers' belief that now is a good time to buy a home." Lockhart remarked on current inventory levels impacting affordability. Citing limited land availability, shortages in construction labor and tight credit for homebuilders, Lockhart said these factors are contributing to the overall supply shortages for affordable housing. Looking to next year, Yun thinks the tight supply and affordability issues affecting buyers in many markets will very slowly but surely start to abate. As housing starts steadily increase, both he and Lockhart are optimistic that housing demand will include leading-edge millennial households finally dipping their toes into the market at a growing rate. In NAR's recently released 2016 Profile of Home Buyers and Sellers, the median age of first-time buyers was 32. According to Yun, while repaying student debt, shaky job prospects after the recession and marrying and having children later in life have delayed first-time buyers' ability and willingness to buy, the wave of potential buyers entering their 30's is increasing considerably in coming years. "NAR surveys from both current renters and recent buyers prove that there's an overwhelmingly strong desire among the younger generation to own a home of their own," said Yun. "The housing market over the next couple of years should get a big lift in demand from these new buyers. The one caveat is it's essential that there's enough new and existing supply at entry-level prices for them to reach the market." Lockhart remarked, "The coming years of housing demand will be millennial-driven and will support the single-family sector." Yun anticipates housing starts to jump 5.3 percent next year to 1.22 million. However, this is still under the 1.5 million new homes needed to make up for the shortfall in recent years and keep up with the growing demand. New single-family home sales are likely to total 570,000 this year and rise to around 620,000 in 2017. "Multi-family housing construction has dominated the building landscape in recent years and only recently started to level off," said Yun. "Hopefully this is a sign that homebuilders will begin to significantly shift their focus to single-family housing. Both a large bump in new homes and homeowners selling is needed to get supply levels at healthier levels." Commenting on the overall health of the U.S. economy, Yun noted that continued overseas instability and flat business investment will lead to an unsatisfactory year of expansion. Although a boost in exports fueled economic growth to just a tick under 3 percent in the third quarter (first estimate), GDP for all of 2016 is still expected to be under 3 percent for the eleventh straight year. "While the gains have been uneven by state, region and even gender, the 15 million jobs created since 2010 have bolstered consumer spending and housing demand," said Yun. "Over the next two years, the economy will likely stay on a path of around 2 percent growth with a tightening labor market and stronger inflation." "The pace of job gains has been stronger than economic growth the last two years," remarked Lockhart. "The housing sector has challenges, but the industry's near-term outlook is one of continued improvement." Yun foresees a gradual uptick in borrowing costs heading into next year. By the end 2017, he expects rates to be around 4.5 percent. Lockhart also anticipates a gradual uptick in rates in the next two years, but said the economy currently does not call for a quickly rising rate environment. "Increasing mortgages rates have the potential to further dent affordability in markets where supply struggles to recover to more balanced levels," said Yun. "Despite these likely pressures, the increase in home sales next year will be supported by the continued release of pent-up demand and the beginning of stronger participation from first-time buyers." The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.
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First-time Buyers, Single Women Gain Traction in NAR’s 2016 Buyer and Seller Survey
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CoreLogic Data Shows 1.8 Million Homes in 13 Western US States at Severe Risk of Wildfire
  October 26, 2016, Irvine, Calif. – According to new data released today by CoreLogic®, 1.8 million single-family homes across 13 states in the western U.S. are currently designated as Extreme or High risk of wildfire damage, representing a combined total reconstruction cost value (RCV) of almost $500 billion. An additional 27 million properties, with an estimated RCV of $6.7 trillion, fall into the Moderate or Low risk category. The CoreLogic Wildfire Risk analysis designates risk levels as Extreme, High, Moderate and Low based on a numeric risk score ranging from 1 to 100 assigned to individual properties. This score indicates the level of susceptibility to wildfire, as well as the risk associated with the property being located in close proximity to adjacent high-risk properties or areas. This proximity designation is important since wildfire can easily expand to surrounding properties and cause significant damage even if the original property was not considered high risk. At the state level, California and Texas rank first and second for the total number of homes in the Extreme wildfire risk category due to a large number of residential properties in these states combined with the proximity of high-risk vegetation and terrain. Combining both the High and Extreme categories, California tops the list with 645,445 properties at risk, followed by Texas (532,317) and Colorado (195,601). Table 3 shows that California also has the highest RCV in each of the top two risk levels at more than $250 billion, followed by Texas and Colorado at almost $94 billion and $54 billion, respectively. Of the 258 Core Based Statistical Areas (CBSA) that were analyzed based on wildfire risk, Riverside-San Bernardino-Ontario, Calif. ranks first for the most number of homes at Extreme risk with 51,775 properties falling into this category, followed by Sacramento-Roseville-Arden-Arcade, Calif. (41,937) and Denver-Aurora-Lakewood, Colo. (33,226). In terms of RCV, Sacramento-Roseville-Arden-Arcade, Calif. edges out Riverside-San Bernardino-Ontario, Calif. by almost 1 billion dollars at $16.4 billion compared with more than $15.3 billion. The full 2016 wildfire report can be found here. 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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The Foreclosure Gender Gap: Foreclosure Rates Higher for Male Homeowners than Female Homeowners
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Realtor.com Consumer Survey Reveals First Look into 2017 Home Buying Season
  SANTA CLARA, Calif., Oct. 19, 2016 -- The 2017 home buying season will be characterized by a large increase in first time home buyers, increasing affordability issues among buyers, and high demand for suburban homes, according to realtor.com®'s Active Home Shopper Report released today. Realtor.com® is a leading online real estate destination operated by News Corp subsidiary Move, Inc. The study, based on September survey data of active shoppers on realtor.com®, provides insight into future home buying trends in 2017 by analyzing responses from consumers who plan to purchase homes in the Spring or Summer of 2017, peak seasons for home purchases. Significant findings from the survey include a potentially large increase in first time home buyers in 2017, capable of rising to 52 percent of all buyers next year, from 33 percent in 2016. Affordability, down payments, and credit scores are starting to challenge limited inventory as the No. 1 barrier to home ownership. Suburban homes are the most preferred as 43 percent of first time home buyers have a stated preference for the suburbs, likely due to their desire for safe neighborhoods, privacy and to meet the needs of their growing families. 1.  First time home buyers could make up over half of the 2017 home buyer population The most notable characteristic of the 2017 home buying season is expected to be the large number of first time home buyers entering the market. According to the survey, first time home buyers now make up 52 percent of prospective buyers looking to purchase in 2017. Last year, 33 percent of shoppers planning to purchase in 2016 were first timers. Millennials are leading the pack with 61 percent of these first-time homebuyers under age 35. Top reasons cited by millennials for buying include getting married or moving in with a partner, growing tired of their current living space, and planning to increase family size. "This represents an 'oh shift' moment in housing," said Jonathan Smoke, chief economist for realtor.com®. "With so many first time buyers in the market, competition will be even fiercer next year for affordable starter homes in the suburbs. Those looking to buy may want to consider a winter home purchase in order to avoid bidding wars and higher prices spurred by a potential increase in millennial buyers." 2. Affordability and mortgage qualification expected to replace lack of inventory as the largest barrier to home ownership In 2016, 40 percent of home shoppers cited lack of inventory as the largest barrier to home ownership, but realtor.com® reports this will potentially shift to affordability and mortgage qualification issues as more first time home buyers enter the market. Of first time home buyers planning to purchase next spring surveyed in September, 37 percent indicated their largest impediment to home ownership is the down payment and 30 percent cited finding a house within their budget. 3. Safe neighborhoods, more living space, and larger yards top list of key home attributes First-time homebuyers cite safety, more living space, and larger yards as the key features for their new homes.  This is consistent with their top goals of buying: attaining privacy and addressing the needs of their families.  A third top objective of first time buyers is to make a financial investment that will grow over time. As millennials marry and move in with partners, reasons to purchase are driven by actual or planned growth in their families, and they show strong preference for single family homes (39 percent) or townhomes (34 percent) and away from multi-family homes (15 percent), condos (10 percent), or mobile homes (2 percent). 4. Competition for the suburbs is expected to heat up With families and safety on the brain, it's no surprise that first time home buyers identified the suburbs as their No. 1 preferred location. In fact, 50 percent of all respondents identified suburban areas as their preferred location. For boomers, their desire for the suburbs can likely be attributed to their desire to be close to family and friends. Data also show younger homebuyers are more likely than their older counterparts to prefer urban living, the second-most common location preference among millennials after suburbs. 5. Spring and summer will continue to be the hottest times to buy a house in 2017 A majority of all survey respondents were beginning the housing search at the time of the survey and planned to purchase in seven months or longer, indicating spring and summer will continue as the top seasons to buy and sell homes. Realtor.com® found that 73 percent of respondents had been considering homeownership for less than three months and did not expect to purchase a home immediately. 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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Outdoor Remodeling Projects See High Happiness and Financial Returns, Say Realtors
  WASHINGTON (September 27, 2016) — Homeowners looking to tackle a remodeling project should head outside, according to a new report from the National Association of Realtors® and National Association of Landscape Professionals. The 2016 Remodeling Impact Report: Outdoor Features shows that not only can outdoor remodeling projects add value to a home on resale, but they can also bring advantages to homeowners planning to stay in their homes in the form of increased happiness. "Realtors® understand the importance of curb appeal because when it is time to sell, a home's exterior is its first impression to potential buyers," said NAR President Tom Salomone, broker-owner of Real Estate II Inc. in Coral Springs, Florida. "Realtors® also know that these projects - from flowerbeds to fire pits - can bring homeowners who have no plans to sell even more enjoyment and satisfaction in their home." According to the report, which analyzes the reasons why homeowners complete outdoor remodeling projects and the value - both financially and emotionally - the finished projects bring to the homeowner, taking care of your home's lawn will bring the most bang for the buck. Looking at the outdoor projects that produce the largest financial windfalls at resale, Realtors® ranked seeding lawn the highest, recovering 417 percent of the project cost at resale. Seed lawn is followed by implementing a standard lawn care program (303 percent of cost recovered) and updating landscaping with sod lawn (143 percent recovered) as the most cost-effective projects. When it comes to the enjoyment homeowner's gain from these projects, a new pool comes in at number one, receiving a perfect Joy Score of 10; Joy Scores range between 1 and 10 and higher figures indicate greater joy from the project. Ninety-five percent of homeowners who completed a pool project said they have a greater desire to be at home, 90 percent felt a major sense of accomplishment, and 80 percent have an increased sense of enjoyment when they are at home. However, Realtors® estimate that homeowners will only recoup 50 percent of the cost on resale, making it one of the least profitable projects in the report. The next most appealing project is an overall landscape upgrade - with a Joy Score of 9.8 - followed by a new wood deck, with a Joy Score of 9.7. When asked why homeowners took on these projects, the most common response was to add features to their home and improve livability. "Homeowners looking to take on large, expensive outdoor projects should do so for themselves, for the enjoyment they and their family will gain from the finished results, and not only to improve the value of their home for when they sell. Smaller projects will bring potential sellers the most value back upon resale – and have the benefit of costing less up front," said Salomone. "This report validates that outdoor remodeling and landscaping improvements are a necessity when it comes to improving your home's resale value," said Missy Henriksen, vice president, public affairs, NALP. "Homeowners working with a landscape professional to embark on renovations — whether that means enhancing their turf and growing a lush lawn, rehauling their entire landscape, or incorporating new features, like patios and exterior fireplaces — can rest assured that they are making a smart, worthwhile investment. Further, that investment is coupled with the immediate happiness received by beautiful landscaping and the long-term enjoyment of outdoor living spaces, which are priceless." The National Association of Landscape Professionals is the trade association for the landscape industry, which employs nearly 1 million landscape, lawn care, irrigation and tree care professionals who create and maintain healthy green spaces for the benefit of society and the environment. Member companies specialize in lawn care, landscape design and installation, landscape maintenance, tree care, irrigation and water management, and interior plantscaping. The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing more than 1.1 million members involved in all aspects of the residential and commercial real estate industries.
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NAR Study Finds Real Estate Firms Have Positive Outlook, Despite Sales Volume Decrease
  WASHINGTON (September 20, 2016) – The vast majority of real estate firms have an optimistic outlook for the future of the industry's profitability and growth, according to the National Association of Realtors® 2016 Profile of Real Estate Firms. Profitability expectations have declined from the 2015 survey, mainly due to inventory shortages and home-price growth, but real estate firms remain confident about their overall future profitability. 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. "For a second year in a row, a majority of real estate firms have a positive outlook on profitability, with 91 percent of all firms expecting their net income to increase or remain the same over the next year," said NAR President Tom Salomone, broker-owner of Real Estate II, Inc. in Coral Springs, Florida. "Although there is an overwhelmingly positive outlook, low inventory and high prices have led to an overall decrease in real estate firm's sales volume since last year's report. High home prices are holding back first-time buyers and low inventory means fewer sales at a time of increased Realtor® membership." In 2016, 64 percent of firms expect profitability (net income) from all real estate activities to increase in the next year, down from 68 percent in 2015. Sixty-seven percent of commercial real estate firms expect profitability to improve (down from 75 percent in 2015), as well as 70 percent of large firms with four or more offices expect profitability to improve (down from 79 percent in the previous year). Residential firms are a little less optimistic as 65 percent expect to see an increase in their net income. According to the report, the typical residential real estate firm's brokerage sales volume was $6.3 million, while the typical commercial real estate firm's brokerage sales volume was $4.5 million. The size of the firm has a large impact on its sales volume; firms with one office had median brokerage sales of $4.5 million in 2015, while those with four or more offices had median brokerage sales of $203.8 million in 2015. Forty-three percent of real estate firms expect competition to increase in the next year from non-traditional firms, down from 45 percent in 2015. Forty-six percent of firms see competition from virtual firms increasing (up from 41 percent in 2015), while only 17 percent expect competition increasing from traditional brick-and-mortar firms. The sense of competition has fueled more recruitment since the 2015 survey. Forty-seven percent of firms reported they are actively recruiting sales agents in 2016, up from 44 percent in 2015. This is more common with residential firms (51 percent) than commercial firms (32 percent) and more common among offices with four offices or more (88 percent) than firms with one office (39 percent). Real estate firms are also seeing a growth in agents. Seventy-eight percent of real estate firms have a single office; these offices typically include three full-time real estate licensees, up from two in 2015. This growth mirrors the growth in membership data found in NAR's 2016 Member Profile, which found that 20 percent of members had one year or less experience, rising from 11 percent in 2015. The study also found that firms had 30 percent of their customer inquiries from past client referrals, 30 percent from repeat business from past clients, 10 percent from their websites, 7 percent through social media and 2 percent from open houses. When asked what they see as the biggest challenges in the next two years, firms cited profitability (49 percent), keeping up with technology (48 percent), maintaining sufficient inventory (48 percent) and recruiting younger agents (36 percent).  Firms also predicted the effect different generations of homebuyers will have on the industry.  According to the study, 48 percent of firms are concerned with Generation Y's ability to buy a home due to stagnant growth, the job market and their debt to income ratios.  Forty-six percent of firms are concerned about the recruitment of Gen Y and Gen X real estate professionals. The study also asked about professional volunteer work and supporting the local community. Eighty-two percent of firms encourage their agents to volunteer in the local community, 48 percent at the local association of Realtors®, 28 percent at the state association of Realtors® and 19 percent with NAR. According to the study, residential firms are more likely than commercial firms to encourage agents to volunteer. The NAR 2016 Profile of Real Estate Firms was based on an online survey sent in July 2016 to a national sample of 147,835 executives at real estate firms. This generated 4,567 useable responses with a response rate of 3.1 percent. The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.
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Affordability Concerns, Uncertainty about Down Payment Requirements Ensnaring Renters, Latest HOME Survey Shows
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Realtors Help Consumers Make Smart Back-to-School Home Shopping Decisions
  WASHINGTON (August 12, 2016) — In some school districts across the country, kids are already heading back to school after the summer break. While households with children commonly choose to buy a home in the late spring to get settled in before the new school season starts, rising home prices and a lack of homes for sale may mean more families have been forced to continue their house hunt into fall. "In a fast moving market with fewer homes for sale and rising prices, more buyers find themselves in need of a real estate professional to help them find the right home and guide them through each step of the process," said National Association of Realtors® President Tom Salomone, broker-owner of Real Estate II Inc. in Coral Springs, Florida. "Despite recent industry reports to the contrary, busy families require hands on attention and unparalleled transaction and local market knowledge and regularly turn to full-service agents, who provide a broad range of services and manage most aspects of a home purchase and sale." The median days on market to find a buyer was 32 days in May (the shortest time on record) and 34 days in June (tied with June 2015). Fewer and faster selling houses on the market translate into more pressure to make quick decisions, and despite advances in online real estate information and technology, the vast majority of consumers still prefer buying and selling a home through a real estate professional because it saves them time and makes the process less stressful. While more than 8 in 10 buyers worked with an agent to purchase a home last year, according to NAR's 2015 Profile of Home Buyers and Sellers, agent use is even higher among buyers ages 36 to 50 (87 percent) and 35 and younger (89 percent) - the demographics most likely to have school-aged children. "Buyers with children have a slightly harder time finding the right property, likely because of their desire to purchase a home that best meets their family's needs or is in their preferred school district; 53 percent of families with children cited finding the right property as the hardest step in the buying process compared to 50 percent of buyers without children," said Salomone. In many cases, families are looking to move because their current home is too small (cited most at 29 percent for families with children at home compared to only 9 percent with no children at home); a job relocation (23 percent), or a change in their family situation such as birth of another child, marriage or divorce (12 percent). The typical homebuyer with children bought a 2,100-square-foot detached single-family home with four bedrooms and two full bathrooms. Nearly 80 percent of recent sellers worked with an agent that provided a full range of services; only 9 percent received a limited set of services and 12 percent of sellers worked with an agent to list their home on the multiple-listing service and received few if any additional services. Sixty-two percent of sellers with children at home negotiated their agents compensation compared to 68 percent of sellers with no children at home. When choosing a buyer's agent, parents with children under 18 at home want someone who can provide more mobile-ready, easy-to-access information; 71 percent said it was important when choosing an agent that he or she sends postings as soon as a property is listed or its status changes; sends property info and communicates via text (59 percent); sends market reports on recent listings and sales (55 percent); sends emails about specific needs (56 percent); and has a mobile site to show properties (30 percent). When it comes to seller's agents, twice as many parents with children at home needed to sell their home urgently compared to those with no children at home (24 percent compared to 12 percent), perhaps to time transactions around the school season. It makes sense then, that sellers with children at home placed a higher priority on selling their home within a specific timeframe (22 percent) and help pricing it competitively (19 percent); compared to sellers with no children at home (20 percent and 15 percent, respectively). Busy parents also rely more on referrals for finding their seller's agent; 46 percent of sellers with children at home first found their agent through a referral from a friend, neighbor or relative compared to only 40 percent of sellers with no children at home. When it comes to the home search, for buyers with children under the age of 18 living in their home, it's no surprise that the quality of the school district and convenience to schools was a strong influencing factor of their neighborhood choice. Recent buyers with children cited quality of the school district an influencing factor (at 50 percent compared to 11 percent with no children in home), as well as convenience to schools (at 46 percent compared to 6 percent). "If you are thinking of buying or selling a home this fall, don't be intimidated by the market or process while kids are back in school; overall, the fundamentals of the market are strong," said Salomone. "A Realtor® helps get sellers ready to sell and buyers ready to buy – whether or not they have children – and knows the ins and outs of the real estate transaction the market where you want to buy or sell." For charts about families with children who are buying or selling a home, visit www.realtor.org/reports/moving-with-kids. The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing over 1 million members involved in all aspects of the residential and commercial real estate industries.
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Affordability, Student Debt Causing Chasm about Buying between Homeowners, Renters
  WASHINGTON (July 13, 2016) — Despite lackluster economic growth and stark home-price appreciation in several parts of the country in recent months, roughly three-quarters of surveyed households still believe now is a good time to buy a home, but there's a considerable gap in morale between homeowners and renters, according to the latest installment of the National Association of Realtors® Housing Opportunities and Market Experience (HOME) survey. The survey also found that roughly half of young adults with student debt are uncomfortable about taking on a mortgage. In NAR's second quarter HOME consumer survey, respondents were asked about their confidence in the U.S. economy and various questions about their housing expectations, including questions on if carrying student debt is tempering their ability and appetite to take on mortgage debt. Through the first half of the year, NAR's survey found that the share of homeowners and renters who believe now is a good time to buy a home is mostly holding steady, with 80 percent of homeowners (82 percent in March) and 62 percent of renters (unchanged from last quarter) saying it's a good time to buy. However, the share of renters who think so is down from 68 percent in December 2015, and those under 35 were the least confident that now is a good time to buy. Lawrence Yun, NAR chief economist, says the survey brings to focus the ongoing disparity in buyer confidence between current homeowners and renters. "Existing-home prices surpassed their all-time peak this spring and have climbed on average over 5 percent nationally through the first five months of the year and even faster in areas with severe supply shortages," he said. "Most homeowners appear to realize that if they're ready to sell, they'll likely find a buyer rather quickly and be able to use the sizeable equity they've accumulated in recent years towards their next home purchase. Meanwhile, renters interested in buying continue to face minimal choices, strong competition and home prices growing faster than their incomes." Adds Yun, "Given these affordability pressures, it's no surprise respondents earning over $100,000 and those living in the Midwest — the most affordable region of the country — are the most optimistic about buying right now." This quarter's HOME survey also revealed that carrying student debt is causing many to be uneasy about taking on additional debt. According to the survey, roughly two-thirds of non-homeowners and half of respondents under 35 with student debt said they aren't comfortable also having a mortgage. Furthermore, of those with student debt, non-homeowners and younger adults were less likely to believe they'd be able to qualify for a mortgage if they applied. "It's becoming very evident from this survey and our research released last month that the financial and emotional impact of repaying student debt is contributing to a delay in purchasing a home for many would-be buyers," adds Yun. "At a time of quickly rising rents, mortgage rates at all-time lows and increasing housing wealth, a lot of young adults in their prime buying years are struggling to enter the market and are ultimately missing out on the stability and wealth accumulation that owning a home can provide." Mostly unchanged attitudes about direction of U.S. economy, personal financial outlook A tick under half of all households in the survey believe the economy is improving (49 percent), which is mostly unchanged since the inaugural HOME survey in December 2015. Renters, respondents living in urban areas, and those in the West were the most optimistic. On the other hand, nearly two-thirds of those living in rural areas don't believe the economy is improving. Reflecting somewhat lessening confidence that respondents' financial situation will be better in six months, the HOME survey's monthly Personal Financial Outlook Index of all households slightly decreased (to 57.7 in June) since March (58.1), but is unchanged from June 2015. Expanding belief that now is a good time to sell With strong price growth prevalent in most of the country and homes selling at a quickened pace, more current homeowners (61 percent) believe it is a good time to sell compared to the first quarter of this year (56 percent). Respondents in the West were once again the most likely to think now is a good time to sell, while also being the least likely to think now is a good time to buy. "More homeowners acknowledging this pent-up demand may perhaps mean we begin to see more supply come online in the near future," adds Yun. When asked about their outlook for home prices in their community in the next six months, almost all believe that prices will stay the same or rise (93 percent), which is consistent with last quarter (91 percent). Respondents from the West, those living in urban areas and renters are most likely to believe prices will go up in their communities. About NAR's HOME survey In April through early June 2016, a sample of U.S. households was surveyed via random-digit dial, including half via cell phones and the other half via 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 2,714 household responses are represented. The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing over 1.1 million members involved in all aspects of the residential and commercial real estate industries.
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71 Percent Believe Student Debt Delays Homeownership
  WASHINGTON (June 13, 2016) — Seventy-one percent of non-homeowners repaying their student loans on time believe their debt is stymieing their ability to purchase a home, and slightly over half of all borrowers say they expect to be delayed from buying by more than five years. This is according to a new joint survey on student loan debt and housing released today by the National Association of Realtors® and SALT®, a consumer literacy program provided by nonprofit American Student Assistance®. The results also revealed that student debt postponed four in 10 borrowers from moving out of a family member's household after graduating college. Nearly three-quarters of non-homeowners polled in the survey believe their student loan debt is delaying them from buying a home. Broken down by each generation and debt amount, the percent share is the highest among older millennials approximately aged 26 to 35 (79 percent) and those with $70,000 to $100,000 in total debt. Regardless of the outright amount of student debt, more than half of non-homeowners in each generation report that it's postponing their ability to buy. The survey, which only polled student debt holders current in their repayment, yielded responses from borrowers with varying amounts of debt from mostly a four-year public or private college. Forty-three percent of those polled had between $10,001 and $40,000 in student debt, while 38 percent had $50,000 or more. The most common debt amount was $20,000 to $30,000. Lawrence Yun, NAR chief economist, says the survey findings bring to light the magnitude student debt is having on the housing market and the budget of even those financially able to make on-time payments. While obtaining a college degree increases the likelihood of stable employment and earning enough to buy a home, many graduating with this debt are putting homeownership on the backburner in part because of the multiple years it takes to pay off their student loans at an interest rate that's oftentimes nearly double current mortgage rates. "A majority of non-homeowners in the survey earning over $50,000 a year – which is above the median U.S. qualifying income needed to buy a single-family home – reported that student debt is hurting their ability to save for a down payment," he said. "Along with rent, a car payment and other large monthly expenses that can squeeze a household's budget, paying a few hundred dollars every month on a student loan equates to thousands of dollars over several years that could otherwise go towards saving for a home purchase." Among non-homeowners who believe student debt is delaying their ability to buy, over three-quarters – including over 80 percent of millennials – said their delay is because they can't save for a down payment. Additionally, 69 percent don't feel financially secure enough to buy, and 63 percent can't qualify for a mortgage because of high debt-to-income ratios. A little over a majority of those polled (52 percent) expect to be delayed by more than five years from purchasing a home because of repaying their student debt. One in five anticipates being held back three to five years as well as over 60 percent of baby boomers. Not surprisingly, those with higher amounts of student loan debt and those with lower incomes expect to be delayed the longest. "Realtors® work closely with our clients and consumers everyday; we understand the severity of the problem. This is not an abstract issue for us. This is why Realtors® are leading the real estate industry in the discussion of student loan debt and its impact on housing by generating the most encompassing research on this topic," said NAR Vice President Sherri Meadows, a Realtor® from Ocala, Florida. Student debt preventing many young adults from leaving the nest Mirroring other recent data on young Americans being more likely to live with their parents than in any other living situations, almost half (46 percent) of young millennials polled currently live with family (both paying and not paying rent). Furthermore, 42 percent of respondents indicated student debt delayed their decision to move out of their family member's home after college. Highlighting the difficulty many college graduates faced finding employment either before or immediately after the Great Recession, those who graduated six to 10 years ago had the longest delay, with 33 percent saying it took more than two years to move out of a family home. "Nearly three-quarters of older millennials, many of whom graduated at the peak or immediately after the downturn, said their ability to purchase a home is affected by student debt," added Yun. "Add in the detrimental effects of low inventory as well as rents and home price growth outpacing wages and it's mainly why the share of first-time buyers remains at its lowest point in nearly three decades." Student debt holding back some would-be sellers The survey also found that student debt is affecting overall housing supply by holding back some current homeowners who otherwise would like to sell. Nearly a third of current homeowners (31 percent) said their student debt is postponing them from selling their home and purchasing a new one. Of those, 18 percent believe it is too expensive to move and upgrade to a new home, 7 percent have problems with their credit caused by student loan debt, and 6 percent are underwater because student debt has limited their ability to pay more than the minimum payment on their mortgage. "It is imperative to the nation's economy that we find immediate and practical solutions to financially empower the 43 million Americans with student debt," said SALT® President John Zurick. "SALT® is committed to demystifying the college financing process by giving consumers information, instruction and individualized advice. No one should fail to realize the full potential of their formal education simply because of finances. We invite the higher education community, the U.S. government, the private sector and others to join with us in this movement." In April 2016, SALT® distributed a 33 question survey co-written with NAR to 75,000 student loan borrowers who are current in repayment. A total of 3,230 student loan borrowers completed the survey. The survey had a response rate of 4.3 percent. All information is characteristic of April 2016, with the exception of income data, which is reflective of 2015. The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.
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