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Realtor.com 2022 Forecast Update: Real Estate Gets a Refresh from the Frenzy
Active listings will grow 15.0% year-over-year as the inventory recovery accelerates in 2H 2022; higher home sales prices (+6.6%) and mortgage rates (to 5.5%) add to affordability issues SANTA CLARA, Calif., June 13, 2022 -- As rising inflation and mortgage rates bring U.S. housing demand back from the 2021 frenzy, Realtor.com®'s newly-updated 2022 forecast predicts inventory will grow double-digits over 2021 and offer buyers a better-than-expected chance to find a home. Home sales will hit the second-highest level in 15 years, trailing only the 2021 pace, as rising incomes combined with higher housing costs continue to present a mixed bag of affordability issues. The updated forecast anticipates a summer break from a feverish pace of home sales that will provide space for active listings to grow at a faster year-over-year pace than originally projected (+15.0% vs. +0.3%). Combined with returning seasonality and builders ramping up production, these trends could lead to a refresh of the housing market by as early as this fall. "Financial conditions have shifted in a big way since the end of 2021 and the housing market is adjusting accordingly. As Americans grapple with higher prices for everyday expenses while today's buyers face housing costs that are up 50% from a year ago, recent home sales data shows some are taking a step back from the market," said Danielle Hale, Chief Economist for Realtor.com®. "Our updated 2022 forecast anticipates that demand will continue decelerating through the summer, providing breathing room for the inventory recovery to accelerate. As a result, this fall could be an opportune time to find a home – for both first-time and repeat buyers alike. Still, preparation will be key throughout 2022, as it continues to be a seller's market and asking prices remain high. For buyers who choose to wait until later in the year, take that time to assess your budget so you're set up with a strong financial footing whenever you're ready to move forward." Realtor.com® 2022 Housing Forecast – Mid-Year Update While Americans have faced a whirlwind of changes so far this year, a changing economic landscape is the biggest driver of updates to Realtor.com®'s 2022 housing forecast. Inflation has made a more significant and long-standing impact on real estate markets than was anticipated six months ago, and is reflected in trends like rapidly-climbing mortgage rates. Combined with record-high home listing prices and rents, home shoppers are feeling the strain on their budgets. As a result, buyer demand has been softening this Spring from its early 2022 surge. Higher costs will continue to challenge 2022 buyers, as mortgage rates have already far surpassed Realtor.com®'s earlier prediction of 3.6% and home sale price growth year-over-year is expected to more than double its originally-forecasted pace (+6.6% vs. 2.9%). At the same time, Realtor.com®'s updated projection for year-end 2022 mortgage rates (5.5%) anticipates that rates have largely adjusted for the bulk of expected 2022 Fed hikes. The rapid shifts in the economic landscape have some silver linings when it comes to housing affordability. With the unemployment rate near 50-year lows, employers are feeling the pressure to compete for talent, driving wage growth upwards from earlier year-over-year predictions (+3.8% vs. +3.3%). The competitive labor market may also give some buyers more negotiating power on workplace flexibility, creating more opportunities to relocate to relatively affordable housing markets. In fact, data from the first quarter of 2022 showed that 40.5% of Realtor.com® home shoppers viewed listings located outside of their current state, up from 33.4% in 2020. Overall, the updated 2022 forecast reflects a housing market that is charting a path toward more sustainability, relative to the past two years of ups and downs. Home sales are still projected to hit a near record-high pace in 2022 despite trailing 2021 levels (-6.7%) and their original forecast (+6.6%), while the projected homeownership rate will hold roughly steady (65.6% vs. 65.8%). For many Americans, housing affordability will remain a significant obstacle as demand continues to outmatch supply, although by a smaller margin than in recent years. Buyers struggling with higher housing costs can find resources via sites like Realtor.com®, including its down payment assistance tool. About Realtor.com® Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 25 years ago, and today through its website and mobile apps offers a marketplace where people can learn about their options, trust in the transparency of information provided to them, and get services and resources that are personalized to their needs. Using proprietary data science and machine learning technology, Realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, Realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com.
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Properties Online Adds New Real Estate Trends Feature to Its Award-Winning Real Estate Website Builder
Properties Online, Inc. has launched a new module for their website builder, RealEstateSites.com, that will enable agents to build market trend reports for their local area. Santa Rosa, CA, June 07, 2022 -- Knowing what is happening in today's real estate market is critical to both home buyers and sellers. Market trends can let homeowners know if they are headed into a slowdown, and help an agent set reasonable expectations. To that end, Properties Online, Inc. has launched a new module for their website builder, RealEstateSites.com, that will enable agents to build market trend reports for their local area. Real estate professionals can create a trend report based off a zip code, a metro area, a county, a state or you can create a national trend report. Additionally, the agent can compare their primary market with other markets. For example, an a­gent can build a market trend for Sonoma, CA, and compare it to the County of Sonoma, as well as the State of California. What's great is the information will automatically update each month and show statistics from the previous month so the trend report is always current. "We are thrilled to be able to add this feature to our current list of added value items at no additional cost to our clients," says Amanda Cornelius, founder and CEO of Properties Online, Inc. "We have a several new features we hope to launch later this year to help agents capture more leads while serving their clients using our products and services." Market data is pulled from Realtor.com real estate data library and is based on the most comprehensive and accurate database of MLS-listed for-sale homes in the industry. We aggregate and analyze data from hundreds of sources and produce hundreds of metrics for multiple markets, and curate figures and trends where possible for reliability and comparability. Additional tools included with the website solution from RealEstateSites.com include: Single Property Websites Listing Videos Lead Capture Landing Pages Social Sharing Tools Video Content Buyers and Sellers Reports Unlimited Pages Optional UserWay's Accessibility Widget View the new market trends report pages here. About Properties Online, Inc. Founded in 2001, Properties Online is dedicated to helping real estate professionals grow their businesses by offering innovative and invaluable technology tools. The company's web-based software products include, ListingDomains.com, ListingsUnlimited.com, RealEstateSites.com, PropertiesOnline.com, and TextAnnounce.com. Their products are used by more than 100,000 real estate professionals nationwide.
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New HomeJab study shows impact of COVID-19 on real estate agent marketing spending trends
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Realtor.com Forecasts the Best Markets for First-Time Homebuyers in 2022
Struggling to buy your first home? Try Magna, Utah; Chalco, Neb. or Mauldin, S.C., where young homebuyers have a better shot at success SANTA CLARA, Calif., Jan. 10, 2022 -- With 2022 shaping up to be another challenging year for hopeful homebuyers, Realtor.com ran the numbers to find the best markets for people looking to buy their first home this year. The first annual Best Markets for First-Time Homebuyers Report predicts the cities and towns with the best combination of quality of life and affordability that young homebuyers are looking for. What is it that makes these markets great for first-time homebuyers? They have strong job markets, short commute times, plenty of places to eat and drink, a younger population, affordability, and more homes to choose from. The 2022 top 10 markets, in ranked order, are: Magna, Utah, Chalco, Neb., Mauldin, S. C., Beech Grove, Ind., Portsmouth, Va., Cottage Grove, Wis., Grimes, Iowa, Kuna, Idaho, Ferndale, Mich. and Maitland, Fla. "Buying a first-home is always a challenging undertaking, and it's been an especially tough couple years for first-time buyers, many of whom are struggling to find a home that's within their budget or win in a competitive bidding situation," said Realtor.com® Chief Economist Danielle Hale. "With this in mind, and the fact that remote work has given people more flexibility in where they live, we wanted to identify markets where first timers have a chance to become homeowners and find a great quality of life." Here are some of the reasons these markets are attractive to first-time homebuyers: More homes to choose from – The best markets boast almost twice the number of homes for sale than the national average, in 2021 these markets had 72.9 active listings per 1,000 households compared to the national rate of 44.9. Buyers looking for lots of options should check out Kuna, Idaho, which has the most choice on the list with 160 active listings per 1,000 households. Lots of young people – The 10 best markets for first-time homebuyers all have a younger population than the country overall. Specifically, these areas have an average of 15.2% of residents who are between the ages of 25-34 years old compared to 13.5% of the country overall. The youngest city on the list is Maitland, Fla. where you'll find that 17.5% of the population are young adults. Plenty to eat and drink – Lifestyle is important to a lot of first-time homebuyers and the best markets also include plenty of options for a night out on the town nearby. Our top places for first time homebuyers are located in metros that have an average of 5.3 food and drink establishments per 1,000 households in the broader metro area, higher than other affordable places on our list, which average 5.0. Foodies can head to Magna in the Salt Lake City metro area, which has the most spots to dine out or grab a drink at 5.8 per 1,000 households. More affordable homes – Sticking to a budget can be tricky for many first-time homebuyers, but the best markets have options for the cost-conscious. By comparing the typical home list price to the average income for young adults, Realtor.com® determined that the home-price-to-income ratio in the best markets (3.9) was much lower than the national rate (5.0). Home shoppers who are looking for affordability can head to Chalco, Neb. or Ferndale, Mich., which offer the most affordability on the list. Lots of good jobs – A healthy job market is important when finding a place to settle down, and the best markets are in metro areas that have lots of jobs to offer. These metro areas have a forecasted unemployment rate of just 2.7%, well below the national average of 3.6%. If job selection is at the top of the wish-list, buyers can check out Chalco, Neb. in the Omaha metro area and Cottage Grove, Wis. in the Madison metro area which both have a forecasted unemployment rate of just 2.2%. Strong local housing markets – All of the cities on the list are located within metro areas that are forecasted to have strong home sales and price growth. Sales in these surrounding metro areas are projected to grow at 10.2% in 2022, much faster than the national average of 6.6%. Prices are expected to rise by 5.4%, which is significantly higher than the national average rate of 2.9%. Magna, Utah, which is in the Salt Lake City metro, has the highest expected sales growth rate of 15.2% and the highest expected price growth of 8.5%. Shorter commutes – No one wants to spend hours a day in the car or on a train, and the best markets offer jobs that are close to home. In fact, the average commute time in these markets is 26 minutes – that's 4 minutes faster than the national average. If you're looking for a short commute, try Grimes, Iowa, where locals typically get to work in just 23 minutes. First-time homebuyers can visit Realtor.com® to learn more about the buying process, find out how much they can afford, and even get connected to a lender to get pre-approved for a mortgage. And to stay competitive in this fast-moving market, shoppers can set a price alert so they know as soon as a home that fits their wish list hits the market and use Realtor.com®'s collaborate and share features to quickly get feedback from friends and family. Realtor.com® 2022 10 Best Markets for First-Time Homebuyers: 1. Magna, Utah Coming in at No. 1, Magna, Utah is located near Salt Lake City, which was named Realtor.com®'s No. 1 Top Market for 2022. Magna's easy access to the lakes and mountains are a huge draw for outdoor enthusiasts and its close proximity to the city offers lots of jobs without a long commute. New home construction is booming in Magna, providing more options for home shoppers. The area has a fast-growing tech industry and is also an attractive destination for nature lovers who have the ability to work remotely. As such, it has seen a large influx of out-of-state transplants since the pandemic began. 2. Chalco, Neb. In the No. 2 spot, Chalco, Neb., is located just outside of Omaha. The Omaha area is home to 4 Fortune 500 companies including Berkshire-Hathaway, offering lots of job opportunities. Locals enjoy leisure time at the Chalco Hills Recreation Area, a popular destination for hiking, biking and kayaking. There are also 9 universities and colleges in the area, including University of Nebraska Omaha and Creighton University. 3. Mauldin, S. C. At No. 3 on the list is Mauldin, South Carolina, where first-time buyers will find small town southern charm and natural attractions combined with a short commute to Greenville's downtown area, airport and strong jobs market. Residents have plenty to do in Mauldin itself, from its Sports and Cultural Centers to a booming restaurant scene, including local favorites Wholly Smoke BBQ and Dillard's Ice Cream. For young families, Mauldin also has top-rated schools like Monarch Elementary. 4. Beech Grove, Ind. Landing at the No. 4 spot is Beech Grove, Ind. Known for a strong sense of community, Beech Grove is a city in its own right – literally – as the market is an "excluded city" with a separate government and police department from the nearby Indianapolis metro area. Home shoppers looking for a sense of nightlife will find plenty of restaurants in the Main Street downtown area, 24/7 bowling at Beech Grove Bowl and local craft breweries like Scarlet Grove. For families, Beech Grove has good public schools like Acton Elementary, as well as top-rated private schools, including Cathedral High. 5. Portsmouth, Va. Taking the No. 5 place on the list is Portsmouth, Va. Located just across the Elizabeth River from Norfolk, Va., this little town offers affordable home prices at $215,000 – well below the national average of $332,000 – and is within driving distance of a variety of outdoor activities such as water sports, boating, skiing, snowboarding, and hiking. Home to the Norfolk Naval Shipyard and The U.S. Coastguard Portsmouth, it has a large military population and offers many job opportunities in defense and related industries. Norfolk Southern and NASA Langley Research Center are two big employers in the area. 6. Cottage Grove, Wis. The sixth best market for first-time homebuyers is Cottage Grove, Wis. Just 15 miles outside Madison, this hidden gem offers residents close proximity to city jobs with a slower pace of life. The town itself offers a variety of charming shops and restaurants and is within a few minutes of the two prominent golf courses in the area – The Oaks Golf Course and Door Creek Golf Course. When looking for nightlife, residents turn to Madison for its restaurant and bar scene and daytime activities such as boating on Lake Mendota and Lake Monona and visiting the popular Olbrich Botanical Gardens. 7. Grimes, Iowa Landing in the No. 7 spot, Grimes, Iowa is located just west of Des Moines. The area's low cost of living and strong job market make it an attractive spot for young people. Many residents are pleased to learn that they can buy a home for not too much more than the cost of renting. Popular activities include cheering on the Iowa State University football and basketball teams. Grimes is just a short trip to Des Moines where locals can enjoy the arts and many cultural activities. Those looking to start a family will appreciate the highly rated schools such as Webster Elementary School. 8. Kuna, Idaho No. 8 on the list is Kuna, Idaho, located just outside of Boise. Locals love the area's great access to outdoor activities, beautiful surroundings and friendly people. While the Boise housing market has been booming, young homebuyers are likely to have better luck in Kuna than some of the surrounding towns. The area experienced an influx of transplants from areas like Calif. and Wash. who are drawn to the lower cost of living, great quality of life and good schools including Falcon Ridge Public Charter. 9. Ferndale, Mich. In 9th place is Ferndale, Mich. This city is attractive to first-time buyers because of its diversity, vibrant downtown area and great restaurants. It is well-known to locals for its thriving LGBTQ+ community. Ferndale's proximity to Detroit and low price point make it attractive to first-time buyers looking to break into the housing market. Ferndale has recently experienced an influx of buyers from nearby states like Illinois and Ohio who appreciate the low cost of living. 10. Maitland, Fla. Rounding out the top 10 is Maitland, Fla. Located near Orlando, Maitland is home to a number of popular lakes and offers a wide range of homes, many of which are on large lots. The town's good schools, such as Dommerich Elementary, are a draw for first-time homebuyers who often have young children. During the pandemic the area saw a lot of transplants from places such as Calif., N.Y. and Boston, many of whom are taking advantage of remote work – the area is also home to a number of workers from Disney and Amazon. Realtor.com® Best Markets for First-Time Homebuyers Ranked *Methodology Realtor.com® ranked 1,112 cities and places with a population of more than 5,000 based on the following criteria, capping the list at one city per metro to allow for a greater diversity of options across the country: The share of 25-34 year-olds in the local population. The availability of homes for sale, measured by active listings per 1,000 existing households. A measure of affordability, estimated by the ratio of listing prices to gross incomes of 25-34 year-olds in each city. A measure of job opportunities, estimated by the unemployment rate of each city's surrounding metro area. The average commute time to work. A measure of the amenities in an area, estimated by the count of food and drink establishments per 1,000 households in the city's surrounding metro area. Forecasted metro home sales and home price growth in 2022. The inventory of homes for sale and local median listing prices are from Realtor.com® December 2020 to November 2022 listing data. The cities and towns are defined as postal codes mapped to Census Designated places and reflect approximate but not true city or town boundaries. The population, household count, household income, and average commute time data were sourced from 2021 and 2022 Claritas estimates based on Census Bureau data. The stated forecasted unemployment rates are Moody's Analytics projections of U.S. Bureau of Labor Statistics Local Area Unemployment Statistics. Counts of food and beverage establishments are from 2018 County Business Patterns data. About Realtor.com® Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 25 years ago, and today through its website and mobile apps offers a marketplace where people can learn about their options, trust in the transparency of information provided to them, and get services and resources that are personalized to their needs. Using proprietary data science and machine learning technology, Realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, Realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com®.
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Leading Economic and Housing Experts Predict Multiple Fed Interest Rate Hikes, Slowing Inflation and Home Price Growth in 2022
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Realtor.com Forecasts the Top Housing Markets of 2022
Salt Lake City, Utah; Boise, Idaho and Spokane, Wash. are anticipated to see the highest home price appreciation and sales growth in 2022 SANTA CLARA, Calif., Dec. 7, 2021 -- Driven by strong local economies, tech sector job growth and relative affordability, Realtor.com forecasts its Top Housing Markets of 2022 will lead the nation in listing price appreciation and home sales growth next year. Concentrated in the Mountain West, Midwest and New England, this year's top 10 in rank order are: Salt Lake City, Utah, Boise, Idaho, Spokane, Wash., Indianapolis, Ind., Columbus, Ohio, Providence, R.I., Greenville, S.C., Seattle, Wash., Worcester, Mass. and Tampa, Fla. (See below for full ranking of the 100 largest U.S. markets). Based on the 2022 Realtor.com® local housing forecast, the areas on this list are expected to see the strongest combined growth in home sales and listing prices among the 100 largest U.S. metros. In fact, home sales across the top 10 markets are forecasted to grow by 11.6% year-over-year in 2022, which is nearly two-times the national home sales growth projection (6.6%). Additionally, average home prices in the top 10 are expected to increase 7.4% – more than double the national pace (+2.9%). "This year's list spans a variety of geographic hotspots, reflecting how pandemic trends like the rise in remote work are enabling many homebuyers to explore new areas where their budgets stretch further. The top 10 markets share a number of commonalities that are driving demand from millennial remote workers to retirees alike, including those from major coastal metros," said Realtor.com® Chief Economist Danielle Hale. "With thriving local economies, low unemployment rates, convenient access to the outdoors and relatively affordable housing, many of the top markets offer the best of both small town quality of life and big city job security. Home shoppers in these areas may still be able to find good value even as listing prices are expected to climb in 2022, but getting a leg up on the competition will be key. For buyers with more flexible timelines – such as those making a move from a big city – offering a couple extra months on the closing date could sweeten the deal for sellers who also need to buy their next home." Key trends expected to drive growth in housing hotspots Tech jobs without the crowds: Homebuyers can find more breathing room in this year's top housing markets relative to the 100 largest U.S. metros, at an average 60 fewer people per square mile, without having to sacrifice big city job opportunities. A common trend among the top 10 markets is a strong job market, with a lower average unemployment rate (4.1%) than the top 100 overall (5.1%) and higher average job growth (3.4% vs. 2.5%). Additionally, half of the top 10 have a higher share of STEM jobs than the 100 metro average (6.5%), at over 7% each in emerging hubs like Salt Lake City, Boise and Columbus, as well as in more traditional tech city, Seattle. Magnets for big city remote workers: On top of having strong local job markets, the top 10 markets are attracting remote workers. In fact, LinkedIn data shows the share of job seekers applying for remote work roles in metros like Boise and Spokane is at least 6.8% higher than the national average. With the rise in workplace flexibility during the pandemic, these workers are likely looking for a chance to escape city life while continuing to make a big city salary. In six of the top 10 markets, over half of recent home shopping traffic on Realtor.com® originated from outside the market, including from major metros like New York, San Francisco and Boston. Hotspots for both millennials and retirees: With more than 45 million Americans at typical first-time buying ages, millennials will be key drivers of 2022 housing demand nationwide and the top markets are no exception. In fact, those aged 25-34 represent a slightly higher share of the population in the areas on this year's list (15.6%) compared to the top 100 (14.9%). Top markets Seattle, Columbus and Salt Lake City have an 18% share of younger millennials each. At the same time, many of these areas are popular retirement destinations, which means older generations will also play a key role in these markets. In four of the top 10, seniors aged 65-plus account for nearly one-third of households, led by Tampa at 32%. Relatively affordable home prices that are projected to rise: When compared to the 100 largest U.S. metros, median listing prices in the top 10 markets are an average of 8.6% higher and 2021 sales prices are projected to rise at a double-digit pace over 2020 (+14.1%). Despite this, half still have more affordable prices than the typical U.S. home, and the other half have lower-prices than key big-city feeder markets of home shoppers in the top 10. Additionally, because homes in these markets are relatively larger than the 100-metro average, by as much as 297 square feet in an area like Spokane, some buyers could potentially still find more house for their money. Even so, with top 10 home prices expected to rise 7.4% in 2022, affordability will be increasingly important to buyers in these areas. Realtor.com® 2022 Top Housing Markets 1. Salt Lake City, Utah 2021 median home price1: $564,062Forecasted 2022 home sales change: +15.2%Forecasted 2022 home price change: +8.5%Forecasted 2022 combined sales and price change: +23.7% Salt Lake City took the No. 1 spot on this year's top market list. Located on the Northern side of the state, Salt Lake is an outdoor enthusiast's dream with its close proximity to some of the best skiing, hiking, fishing, mountain biking in the country. Since the beginning of the pandemic, remote work has prompted an influx of transplants from California and Colorado looking for affordable homes, low cost of living and good schools. Lehi, Utah, also known as Silicon Slopes for its booming tech industry, is just 25 miles away from Salt Lake and home to SanDisk, Adobe and eBay facilities. 1 For the 12-month period ending November 30, 2021 2. Boise, Idaho 2021 median home price: $503,959Forecasted 2022 home price change: +17.9%Forecasted 2022 home sales change: +7.9%Forecasted 2022 combined sales and price change: +20.8% Boise, Idaho is No. 2 on Realtor.com®'s top markets of 2022 list. Also, driven by a combination of remote work and a desire for outdoor activities such as hiking, skiing, snowshoeing, Boise has become a relocation destination for California transplants. It has a booming job market with employers like Micron Technology, Albertsons, and Boise State University. Great restaurants, bars, and shops line its vibrant downtown area which draws a crowd of all ages and walks of life. The Boise River Greenbelt runs through the east side of the city and includes a series of tree-dotted trails and parks hugging the water's edge. 3. Spokane, Wash. 2021 median home price: $419,803Forecasted 2022 home sales change: +12.8%Forecasted 2022 home price change: +7.7%Forecasted 2022 combined sales and price change: +20.5% Located near the Idaho border, Spokane takes the No. 3 spot on this year's list. With the Spokane River running through the city, residents can take part in an abundance of waterfront activities, while less rain and more sun than nearby Seattle means the best of warmer months and winter fun. With easy access to amenities, restaurants and nightlife in downtown areas like Riverside, Spokane offers homebuyers both the luxuries of a bigger city and a relatively low cost of living, including more affordable housing, than nearby Seattle, Portland and Tacoma. It has a concentration of well-ranked public schools, including Libby Center and Wilson Elementary, making it an attractive option for young families – perhaps those settling down after attending one of the many surrounding universities like Gonzaga, or Whitworth. 4. Indianapolis, Ind. 2021 median home price: $272,401Forecasted 2022 home sales change: +14.8%Forecasted 2022 home price change: +5.5%Forecasted 2022 combined sales and price change: +20.4% Like many of the cities on Realtor.com®'s 2022 ranking, No. 4 market Indianapolis has a small town feel despite being the 15th largest U.S. city. The market has an 8% lower cost of living than the national average, including low taxes, as well as the ability to get pretty much anywhere in the entire city within about an hour. It is also home to the top-rated Indianapolis Colts and annual big-draw sporting events like the Indianapolis 500 and the NCAA tournaments, and multiple universities like Indiana-Purdue and Butler. With relatively spacious homes and affordable prices, Indianapolis is drawing in buyers who are finding a good sense of community in areas like Carmel, Zionsville and Noblesville, as well as property investors. 5. Columbus, Ohio 2021 median home price: $298,523Forecasted 2022 home sales change: +13.7%Forecasted 2022 home price change: +6.3%Forecasted 2022 combined sales and price change: +20.0% Coming in at No. 5, Columbus is Ohio's capital and its fastest-growing city. The market is attracting a number of transplants from more expensive areas in the West, a trend that has accelerated with the rise in remote work. Also home to Realtor.com®'s No. 6 Hottest ZIP Code in 2021 (ZIP 43228 Lincoln Village), people are drawn to Columbus's booming job market, low cost of living and top-rated schools like New Albany High. Large employers in the area include L Brands, the parent company of Victoria's Secret and Bath & Body Works, as well as Nationwide Insurance. Locals enjoy cheering on the Ohio State Buckeyes and visiting parks like Hoover Reservoir and Alum Creek for water sports. 6. Providence, R.I. 2021 median home price: $419,813Forecasted 2022 home sales change: +8.1%Forecasted 2022 home price change: +9.5%Forecasted 2022 combined sales and price change: +17.7% Providence has landed in the No. 6 spot on this year's list. Rhode Island's capital city is known for its hospitals and universities, being home to eight of each, including Ivy League Brown University. Providence also has great public schools including Classical High School. Residents enjoy the city's central location with easy access to Boston and New York without the high price tags. Providence is also known for great restaurants, nightlife and art, including its famous WaterFire installation. 7. Greenville, S.C. 2021 median home price: $305,078Forecasted 2022 home sales change: +11.4%Forecasted 2022 home price change: +5.7%Forecasted 2022 combined sales and price change: +17.1% Greenville, at No. 7, offers low income and property taxes, small-town flavor, incredible weather and access to the great outdoors, with multiple local spots for walking, kayaking and hiking. In the center of downtown Greenville, Falls Park is host to restaurants, breweries and shopping, and offers spectacular views of Reedy River Falls from the Liberty Bridge. Greenville offers easy access to popular vacation destinations like the Smoky Mountains, Hilton Head and Myrtle Beach. While the area is experiencing lots of new construction growth, home prices are still relatively affordable. Plus, Greenville has its own booming economy, including big employers like BMW and Michelin, and a variety of public, charter, private and religious schools. 8. Seattle, Wash. 2021 median home price: $666,754Forecasted 2022 home sales change: +9.6%Forecasted 2022 home price change: +7.5%Forecasted 2022 combined sales and price change: +17.1% Landing on the list of homebuyer hotspots for the second year in a row is Seattle, which has seen an influx of Californians. As the headquarters of big companies like Amazon, Starbucks and Expedia, many new residents have relocated to Seattle for high-paying job opportunities during the pandemic. Perhaps making up for a higher-than-average cost of living, the "Emerald City" offers great weather across seasons and easy access to nature, with multiple lakes, islands, the Puget Sound, and even ski resorts and nearby wine country. While the Seattle suburbs are drawing in buyers who want more space, schools across the region are top notch. Plus, the city boasts the top-ranked University of Washington. 9. Worcester, Mass. 2021 median home price: $397,188Forecasted 2022 home sales change: +8.4%Forecasted 2022 home price change: +8.2%Forecasted 2022 combined sales and price change: +16.6% At No. 9 on this year's list is Worcester, the second largest city in Mass and home to Realtor.com®'s No. 7 Hottest ZIP Code in 2021 (ZIP 01757). At the heart of the state, Worcester offers easy access to interstate highways via the Mass Pike as well as a commuter train to Boston, as well as relatively affordable housing, top-rated schools and easy access to the outdoors. The city is also going through a massive redevelopment surrounding the opening of the Worcester Red Sox's Polar Park. Combined with a vibrant cultural and arts scene and a strong jobs market fueled by local employers like UMass Medical School, Worcester is attracting young buyers, including graduates from surrounding colleges like Clark and Holy Cross. 10. Tampa, Fla. 2021 median home price: $335,814Forecasted 2022 home sales change: +9.6%Forecasted 2022 home price change: +6.8%Forecasted 2022 combined sales and price change: +16.4% Rounding out Realtor.com®'s 2022 top markets is Tampa at No. 10. Located along Florida's Gulf Coast, Tampa's beautiful beaches, great weather and year-round living make it a popular destination for vacationers and retirees. But Tampa also has plenty to offer young professionals and families, from good schools and low-cost of living, including no state income taxes, to relatively affordable housing and plentiful new construction within reasonable commuting distance of the downtown area. With the rise of remote work during the pandemic, Tampa real estate activity is booming as buyers migrate from big cities like New York and Chicago. Realtor.com® 2022 Housing Forecast – 100 Largest U.S. Metros (Ranked) *Methodology Realtor.com®'s model-based forecast uses data on the housing market and overall economy to estimate 2022 values for these variables for the 100 largest U.S. metropolitan statistical areas by population size. These markets are then ranked by combined forecasted growth in home prices and sales. In cases of a tie, forecasted year-over-year sales growth was used as a tiebreaker. About Realtor.com® Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 25 years ago, and today through its website and mobile apps offers a marketplace where people can learn about their options, trust in the transparency of information provided to them, and get services and resources that are personalized to their needs. Using proprietary data science and machine learning technology, Realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, Realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com.
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Realtor.com 2022 Housing Forecast Reveals a Whirlwind Year Ahead for Buyers, Especially First-Timers
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'For Sale By Owner' Listings Tend to Be Used by Rural and Lower-Income Sellers
Over three-year period, 4-6% of all monthly listings nationwide were offered directly by owners SEATTLE, Nov. 23, 2021 -- A recent report released by Zillow highlights trends in homes listed as "For Sale By Owner" (FSBO), which are advertised and sold directly by owners without enlisting the services of an agent. Over the past three years, FSBOs have made up 4-6% of all home listings nationally, which translated to roughly 63,000 homes for sale during September 2021. The research also found that FSBOs are most common in rural areas and tend to be more affordable. "Our research shows that homes put on the market directly by owners are a small but consistent part of the housing ecosystem," said Zillow economist Alexandra Lee. "We see that these types of listings are more heavily used by rural, lower-income sellers, a demographic that appears to value flexibility to sell their home on their own terms." The research found that in 2021, 24% of rural sellers did not use an agent, compared to 16% of suburban and 20% of urban sellers. Additionally, across all markets, FSBOs are listed at prices 18% lower than properties represented by agents. This trend is likely attributable to location and size of the home, rather than the home being sold at a discounted price. The median listed price for a FSBO home is $292,810. The median price of a home listed with a seller's agent is $355,777. FSBOs can be found in every state in the country, providing an option for some buyers searching for a home at a lower price point. For instance, in states like New York, Illinois and Montana, FSBOs are 19-25% less expensive than non-FSBO properties. States with the largest share of FSBO properties are concentrated in the Midwest and South. FSBOs make up at least 10% of all homes for sale in Iowa, Mississippi, Nebraska, Kentucky, Arkansas, Oklahoma and West Virginia. The data shows homeowners with lower incomes are more likely to sell their properties directly. For instance, a household earning less than $50,000 annually is almost twice as likely to sell a home without an agent than a household earning over six figures. Around a quarter (24%) of sellers earning less than $50,000 sold their home without the help of an agent over the past three years. While more FSBOs are generally in rural areas, FSBOs can still be found at lower prices than traditionally listed properties in a number of large, populated U.S. metro areas. In 23 of the largest 50 metros, FSBOs are priced lower than agent listings. Looking closer at these figures, the research shows that homes for sale by the owner in Indianapolis, St. Louis, Atlanta and San Antonio had the largest price differential — FSBOs in these markets were listed at 10% less than traditionally listed properties in these markets. The research also found that due to structural inequities in income and, in turn, home value and type, sellers of color are slightly less likely to report using an agent. On average over the past three years, 79% of Black sellers and 76% of Latinx sellers report enlisting an agent to help sell their home. White sellers reported using an agent 83% of the time. Overall, FSBOs are used for all home types, but are most popular for sellers of smaller home types like townhomes, row houses, duplexes, triplexes, mobile homes and manufactured homes. The steady and consistent prevalence of FSBO listings underscores the importance of this option as one of many in today's housing market. About Zillow Group Zillow Group, Inc. (NASDAQ: Z and ZG) is reimagining real estate to make it easier to unlock life's next chapter. As the most-visited real estate website in the United States, Zillow® and its affiliates offer customers an on-demand experience for selling, buying, renting or financing with transparency and nearly seamless end-to-end service. Zillow Offers® buys and sells homes directly in dozens of markets across the country, allowing sellers control over their timeline. Zillow Home Loans™, our affiliate lender, provides our customers with an easy option to get pre-approved and secure financing for their next home purchase. Zillow recently launched Zillow Homes, Inc., a licensed brokerage entity, to streamline Zillow Offers transactions.
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34% of Recent Movers Live in Single-Income Households, Up From 29% Before the Pandemic
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Impacts of Student Loan Debt on Homebuying Uncovered at Realtor Policy Forum
WASHINGTON (October 13, 2021) -- Top experts from the housing and higher-education fields joined policy thought leaders from the National Association of Realtors on Wednesday to discuss the current student loan debt crisis and how it affects the economy, housing market, and debt holders. The event explored the findings of NAR's September report, The Impact of Student Loan Debt. For the past eight years, NAR has been collecting and examining research to measure the impact of student loan debt on future homebuyers. The report uncovered that student loan debt is one of the most significant hurdles for potential buyers and their ability to purchase a home. "Today's millennials are drowning in student loan debt. After our research, we can now say with certainty that student loan debt is making it difficult to buy a home," said NAR Vice President of Policy Advocacy Bryan Greene to open the event. "We know that homeownership is the ticket to wealth and equity. Many are concerned that to address student loan debt, we would have to take the load off students and on put it on taxpayers. Others advocate help from private employers. We need to talk about all options and explore what reforms are possible." Fifty one percent of student loan holders say their debt delayed them from purchasing a home. NAR's Vice President of Demographics and Behavioral Insights, Jessica Lautz, took the time to explore and explain the research the association has recently done. "We first started researching this topic because of NAR member's children – they couldn't afford a home because of the burden of student loan debt. We knew they weren't alone because there are 40 million Americans holding student loan debt," said Lautz. "Half of non-owners say student loan debt is delaying them from buying a home. We asked participants in our research to pretend they paid off their student loan debt – they said the first thing they would invest in is long-term savings and the second would be buying a home. So, we know they want to get into homeownership, but they are having a hard time getting there." The Mortgage Bankers Association (MBA) spoke about today's competitive housing market. Detailing that in the current market candidates are faced with other buyers offering all-cash offers and a competitive bidding process. In result of intense competition, MBA supports assistance in down payment which is clearly needed for first time homebuyers specially in low-income areas. Senior Vice President of Public Policy for the National Fair Housing Alliance, Nikitra Bailey, went on to outline how student loan debt has a disproportionate effect on people of color. NAR's research shows White student debt holders (30%) are less likely than Black (47%) or Hispanic (47%) debt holders to say they are currently incurring student loan debt for themselves. "Today Black homeownership is as low as it was when discrimination was legal," said Bailey. "After 20 years of taking out student loans, Blacks still owe 95% of the balance of the debt and are more likely to default. Post-secondary education is now a necessity to succeed, yet a degree is not a shield from racial disparity. Our proposed Down Payment Targeted Assistance Program addresses student loan debt as a burden that leads to the lack of ability to save for a down payment, mostly among Blacks and Latinos. And our Keys Unlock Dreams Initiative will help close the racial wealth and homeownership gap." Rachel Fishman, Deputy Director for Research, Higher Education at New America was able to explain to the audience the burden on parents who take out Parent PLUS loans. These federal loans continue to be an in between space where parents take on the student loan debt of their child. "When we talk about student loan debt we talk about the student, but we need to start correlating the family," said Fishman. "My hope is to raise awareness about this issue… to start addressing the root cause of debt – food insecurity, housing affordability, childcare. Families are juggling these things on balance sheets along with student loan debt. Among other recommendations, we seriously need to address college affordability for a four-year degree." The last speaker for the event was Ben Kaufman, Head of Investigations & Senior Policy Advisor at the Student Borrower Protection Center. He closed the forum with statistical intel that outlined the chronological timeline showing the increasing financial instability that student loan debt is creating in this country and how it is standing in the way of people being able to purchase a home. "Student loan debt has exploded in the US. There are more people borrowing, and they are borrowing more. People think of a student loan debt holder as young person, but actually two-thirds of borrowers are over the age of 30," said Kaufman. "Even before COVID, the rate of delinquency on student loans was higher than the delinquency on mortgages at the peak of the financial crisis. Before COVID, a borrower was defaulting on a student loan every 26 seconds. So much of this is policy choices, for generations every single day in Washington all levels of government have been making decisions on this. It is imperative to claim your seat at the table so your voices can be heard. If your voices were heard from the onset, I don't think we would see the consequences we see today." The National Association of Realtors® is America's largest trade association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industries.
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CoreLogic Investor Homebuying Report Shows Slowing Purchase Activity Amid Shifting Market Dynamics: A Decade in Review
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Illinois, Florida and New Jersey Dominate Markets Most at Risk from Damage Related to Coronavirus Pandemic
Chicago Area and East Coast States Remain More Exposed to Pandemic's Impact During Second Quarter of 2021; Most Vulnerable Areas Are More Scattered Around Nation Than in Prior Quarter; Western States Continue to Have Most Favorable Market Conditions IRVINE, Calif. -- July 22, 2021 -- ATTOM, curator of the nation's premier property database, today released its second-quarter 2021 Coronavirus Report spotlighting county-level housing markets around the United States that are more or less vulnerable to the impact of the ongoing Coronavirus pandemic, still endangering the U.S. economy. The report shows that states along the East Coast, as well as Illinois, were most at risk in the second quarter of 2021 – with clusters in New Jersey, Delaware, the Chicago area and central Florida – while the West remained far less exposed. But the 50 most at-risk counties around the U.S. were spread over a wider area than in the first quarter of 2021, as most states had no more than two counties in the top group in the most recent time period. The report reveals that Florida, New Jersey, other East Coast states and Illinois had 37 of the 50 counties most exposed to the potential economic impact of the pandemic in the second quarter of 2021. They included seven counties in the Chicago metropolitan area, four near New York City, all three in Delaware and four in central Florida. However, only Florida, New Jersey, Illinois, Louisiana and Delaware had more than two counties in the top 50, compared to eight states in the first quarter of 2021. The top 50 were scattered across 18 states in the second quarter, compared to 15 the prior time period. The only three western counties in the top 50 during the second quarter of this year were in northern California and southern Arizona. Markets were considered more or less at risk based on the percentage of homes facing possible foreclosure, the portion with mortgage balances that exceeded the estimated property value and the percentage of average local wages required to pay for major home ownership expenses on median-priced houses or condominiums. The conclusions are drawn from an analysis of the most recent home affordability, equity and foreclosure reports prepared by ATTOM. Rankings were based on a combination of those three categories in 564 counties around the United States with sufficient data to analyze in first and second quarters of 2021. Counties were ranked in each category, from lowest to highest, with the overall conclusion based on a combination of the three ranks. See below for the full methodology. The findings follow a year when the national housing market continued its decade-long boom even amid the pandemic, with median single-family home prices rising more than 10 percent across much of the country. While small indicators of a possible slowdown have emerged in 2021 in the form of declining home affordability and slumping investor activity, fuel for further price gains has come from the pandemic receding, employment growing and the broader economy improving. Still, the pandemic remains a threat to the economy and the housing market as new virus variants appear and clusters of virus cases continue to plague pockets of the country. "The Coronavirus pandemic is easing, and the U.S. economy is gradually coming back to life, which suggests that the nation's housing market will indeed escape any major damage from the crisis. No major signs are showing anything different at this point. Nevertheless, the pandemic is still out there and remains a potent threat to home sales and values, as well as to the broader economy," said Todd Teta, chief product officer with ATTOM. "Amid a generally upbeat outlook, we continue to see areas that appear more at risk for a fall, especially in specific areas of the East Coast and Midwest. As we have throughout the pandemic, we will keep a close eye on those areas in case the situation worsens and the pandemic surges again." Most vulnerable counties clustered around Chicago, New York City, Delaware and central Florida Eighteen of the 50 U.S. counties most vulnerable in the second quarter of 2021 to housing market troubles connected to the pandemic (from among the 564 counties with enough data to be included in the report) were in metropolitan areas around New York, NY, and Chicago, IL, as well in Delaware and central Florida. They included seven that cover Chicago (Cook County) and its suburbs (De Kalb, Kane, Kendall, Lake, McHenry and Will counties) and four in the New York City metropolitan area (Ocean, Passaic and Sussex counties in New Jersey and Orange County in New York). The four in central Florida were Highlands County (Sebring), Indian River (Vero Beach), Lake County (outside Orlando) and Osceola County (Kissimmee). All three Delaware counties – New Castle (Wilmington), Kent (Dover) and Sussex (Georgetown) – made the top 50 list as well in the second quarter of 2021. Additional counties in Florida, New Jersey and Illinois also made the top-50 list. Those in Florida were Bay County (Panama City), Clay County (outside Jacksonville) and Marion County (Ocala), FL, while those in New Jersey included Atlantic County (Atlantic City), Cumberland County (Vineland), Gloucester County (outside Philadelphia, PA), Mercer County (Trenton) and Warren County (near Allentown, PA). Others in Illinois were Kankakee County, Madison County (outside St. Louis, MO), Saint Clair County (outside St. Louis, MO) and Tazewell County (outside Peoria). In addition, Louisiana had three counties in the top 50 during the second quarter – Bossier Parish (Shreveport), Livingston Parish (outside Baton Rouge) and Tangipahoa Parish (north of New Orleans). The only western counties among the top 50 most at risk from problems connected to the Coronavirus outbreak in the second quarter of 2021 were Butte County (Chico), CA; Humboldt County (Eureka), CA and Mohave County, AZ (outside Las Vegas, NV). Higher levels of unaffordable housing, underwater mortgages and foreclosure continue to appear in most-at-risk counties Major home ownership costs (mortgage payments, property taxes and insurance) on median-priced single-family homes consumed more than 30 percent of average local wages in 23 of the 50 counties that were most vulnerable to market problems connected to the virus pandemic in the second quarter of 2021. At least 15 percent of mortgages were underwater in the first quarter of 2021 (the latest data available on owners owing more than their properties are worth) in 33 of the 50 most at-risk counties. Nationwide, 10 percent of mortgages fell into that category. Those with the highest underwater rates among the 50 most at-risk counties were Saint Clair County (outside St. Louis, MO) (43.6 percent of mortgages underwater); Delaware County, PA (outside Philadelphia) (36.4 percent); Muscogee County (Columbus), GA (29 percent); Monroe County (Stroudsburg), PA (28.2 percent) and Kankakee County, IL (27.1 percent). More than one in 2,500 residential properties faced a foreclosure action in the second quarter of 2021 in 40 of the 50 most at-risk counties. Nationwide, one in 4,046 homes were in that position. (Foreclosure actions have dropped about 80 percent over the past year amid a federal moratorium on lenders taking back properties from homeowners behind on their mortgages during the virus pandemic.) The highest rates in the top 50 counties were in Gloucester County, NJ (outside Philadelphia) (one in 747 residential properties facing possible foreclosure); Cumberland County (Vineland) NJ (one in 773); Tazewell County, IL (outside Peoria) (one in 905); Tangipahoa Parish (north of New Orleans) (one in 1,129) and Ocean County (Toms River), NJ (one in 1,336). Counties least at-risk concentrated in South and Midwest Thirty-six of the 50 counties least vulnerable to pandemic-related problems from among the 564 included in the second-quarter report were in the South and Midwest. Texas had 13 of the 50 least at-risk counties, including five in the Dallas metropolitan area (Collin, Dallas, Denton, Ellis and Tarrant counties) and two in the Austin metro area (Travis and Williamson counties). Minnesota had five, including four in the Minneapolis metro area (Dakota, Hennepin, Ramsey and Scott counties). Others among the top-50 least at-risk counties with a population of 500,000 or more included Harris County (Houston), TX; Middlesex County, MA (outside Boston); Salt Lake County (Salt Lake City), UT; Macomb County, MI (outside Detroit) and Suffolk County (Boston), MA. Less-vulnerable counties again have lower levels of unaffordable housing, underwater mortgages and foreclosure activity Major home ownership costs (mortgage, property taxes and insurance) on the median-priced single-family home consumed less than 30 percent of average local wages in 44 of the 50 counties that were least at-risk from market problems connected to the virus pandemic in the second quarter of 2021. More than 15 percent of mortgages were underwater in the first quarter of 2021 (with owners owing more than their properties are worth) in none of the 50 least at-risk counties. Those with the lowest rates in those counties were Washington County, WI (outside Milwaukee) (1.9 percent underwater); Chittenden County (Burlington), VT (2.9 percent); Salt Lake County (Salt Lake City), UT (3.6 percent); Dallas County, TX (3.7 percent) and Tarrant County (Fort Worth), TX (4.1 percent). More than one in 2,500 residential properties faced a foreclosure action in the second quarter of 2021 in none of the 50 least at-risk counties. Those with the lowest rates in those counties included Missoula County, MT (no residential properties facing possible foreclosure); Chittenden County (Burlington), VT (one in 69,734); Olmstead County (Rochester), MN (one in 65,380); Davidson County (Nashville), TN (one in 44,624) and Rutherford County (Murfreesboro), TN (one in 39,564). Report methodology The ATTOM Special Coronavirus Market Impact Report is based on ATTOM's second-quarter 2021 residential foreclosure and home affordability reports and first-quarter 2021 underwater property report. (Press releases for those reports show the methodology for each.) Counties with sufficient data to analyze were ranked based on the percentage of residential properties with a foreclosure filing during the second quarter of 2021, the percentage of average local wages needed to afford the major expenses of owning a median-priced home in the second quarter of 2021 and the percentage of properties with outstanding mortgage balances that exceeded their estimated market values in the first quarter of 2021. Ranks then were added up to develop a composite ranking across all three categories. Equal weight was given to each category. Counties with the lowest composite rank were considered most vulnerable to housing market problems. Those with the highest composite rank were considered least vulnerable. About ATTOM ATTOM provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes, and enhances the real estate data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 20TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, property data APIs, real estate market trends, and more. Also, introducing our latest solution, that offers immediate access and streamlines data management – ATTOM Cloud.
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Wall Street Journal and Realtor.com Release Summer 2021 Emerging Housing Markets Index Report
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Realtor.com Survey Shows More than 40% of Aspiring Gen Z Homeowners Plan to Buy Within the Next Five Years
Nearly half of future Gen Z homebuyers see themselves living in the suburbs SANTA CLARA, Calif., June 24, 2021 -- Nearly three-quarters of Gen Z prefers home buying over renting long-term, with a significant number of these aspiring homeowners planning to enter the housing market within the next five years. However, as many Gen Zers are either in their college years or just starting their careers in the face of the pandemic's economic uncertainties, job stability is their No. 1 barrier to buying, according to a new Realtor.com® survey released today. Between the ages of 18 and 25, the oldest members of Gen Z are in the phase of life where they are beginning to plan for the future and homeownership is a top priority, according to a Realtor.com®'s survey of more than 700 members of Generation Z who have never purchased a home, via HarrisX. Nearly two-thirds (64%) of Gen Zers said their COVID experience has not impacted their homeownership plans. More than one-quarter of those surveyed feel even more strongly about buying a home as a result of the pandemic. "Gen Z values homeownership. However, the oldest members of this generation are just entering the professional stage of life and not yet in a financial position to make a big play as first-time buyers – especially in the current housing market, which is challenging even older generations who have had many more years to save for a down payment," said George Ratiu, Senior Economist, Realtor.com®. "With nearly three-quarters of those surveyed preferring to buy versus renting long-term, the housing industry should be prepared for millions of Gen Z buyers to bring a new wave of demand along a similar stage-of-life timeline as the millennial generation before them." What Gen Z desires from homeownership Among surveyed Gen Zers who prefer buying versus renting long-term, half say owning a home is important to ensuring their family has room to grow into. However, with the vast majority not yet in an established relationship, 40% said now isn't the right time to buy because they don't know exactly what their future housing needs will be. In terms of when aspiring Gen Z homeowners think they'll be ready to buy, 43% say within the next five years. Roughly the same amount (44%) expect to enter the housing market within the next five to 10 years. Long-term, nearly half (49%) of future Gen Z homebuyers see themselves living in the suburbs and 19% plan to live in a rural area, both of which typically offer more spacious abodes. The remaining one-in-three surveyed prefer urban city life. Gen Z is currently career- and finances-focused Given more than one-third of Gen Z is still in their college years, Realtor.com®'s survey shows their current priorities are building their careers and the financial foundation needed to purchase a home. When asked what is preventing Gen Z from buying now, half of future homeowners said the No. 1 barrier is job stability. Among those who prefer buying over renting long-term, just under two-thirds said they would be searching for a home right now if they had enough money for a down payment. Aspiring Gen Z homeowners are taking action to address these barriers. While only 43% are currently employed, nearly half (45%) of those surveyed are already saving toward buying a home. At the same time, the vast majority (75%) of Gen Z did not move home during the pandemic to save on rent. Among those who did move home, just 17% saved money to put toward a down payment. "When it comes to where Gen Z homebuyers are deciding to live now and in the future, affordability is key," said Rachel Stults, deputy editor of Realtor.com®. "From exploring metros that offer both jobs and more affordable housing, to saving for a down payment, Gen Z homebuyers know how crucial it is to have a financial leg up when it comes time to buy. If they can learn anything from the experience of the millennial generation before them, it's the importance of laying the groundwork so that they can act quickly on a home in their budget. Prospective buyers should also plan for what they'll do if mortgage rates increase or other housing market conditions change quickly, particularly coming out of the pandemic. In short, whether they plan to buy in two years or 10 years, prospective Gen Z homeowners should be thinking several steps ahead." Future homebuyers can get a head start by using Realtor.com® resources like its News & Insights site and Home Made blog. The Realtor.com® Mortgage Calculator can also help home shoppers stay on top of financial factors like mortgage rates and associated costs of buying a home. Methodology: Realtor.com® commissioned HarrisX to conduct a national survey of consumers. This survey was conducted online within the United States from March 26 - April 7, 2021. The survey was conducted among 3,998 adults by HarrisX. The sampling margin of error of this poll is plus or minus 1.6 percentage points. The results reflect a nationally representative sample of adults. Results were weighted for age, gender, region, race/ethnicity, and income where necessary to align them with their actual proportions in the population. In addition to the general population, an oversample was collected for Gen Z not yet in the housing market. The oversample was weighted to align with the original sample. There are 708 Gen Z respondents, defined as those aged 25 and under who have never bought a home and are not planning to in 2021, with a margin of error of plus or minus 3.1 percentage points. About Realtor.com® Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, Realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, Realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit Realtor.com®.
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Unusual Decline in Showings Reported for May Compared to April, Although Buyer Activity Remains at an All-time High Per Data from ShowingTime
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Millennials Dominate Buying Market, Generation Z Now Active Buyers, Says NAR Report
WASHINGTON (March 16, 2020) -- The popularity of multigenerational homes increased over the last year, as a rising number of homebuyers purchased larger residences compared to prior years, including millennials who continue to make up the largest share of homebuyers at 37%. This finding is revealed in the National Association of Realtors®' most recent study on the characteristics of homebuyers, the 2021 Home Buyers and Sellers Generational Trends report.1 Millennials have been the largest share of buyers since NAR's 2014 report. The most recent data shows that 82% of younger millennials and 48% of older millennials were first-time homebuyers, more than other age groups. According to the study, during the last year, 18% of homebuyers between the ages of 41 to 65 purchased a multigenerational home – a home that will house adult siblings, adult children, parents or grandparents. "There are a variety of reasons why large families and extended families are opting to live together, one of which is that it's a great way to save money," said Jessica Lautz, NAR's vice president of demographics and behavioral insights. "Also, in light of the pandemic, many grandparents and older relatives found that being under a single roof – quarantining with family rather than away – worked out better for them." Homebuyers ages 75 to 95 were the second most likely to purchase a multigenerational home, and were most likely to purchase senior-related housing, at 27%. With inventory levels being alarmingly low in recent years and even dropping to record-low levels last year, a number of would-be homebuyers consequently had difficulties finding adequate housing options. Nearly six in 10 homebuyers between the ages of 22 to 40 said just finding the right property was the most challenging step in the buying process. More than half of all homebuyers (53%) cited finding the right property as the most difficult step. Twenty-eight percent of homebuyers between the ages of 22 to 30 – those who make up younger millennial buyers – lived with parents, relatives or friends before purchasing. This is higher than any other generation. Living with family first tends to allow flexibility toward saving for a downpayment and finding a home, given the low housing inventory. Twenty percent of homebuyers between the ages of 22 to 30 were unmarried, a decline from 21% from a year ago. Additionally, 22% of homebuyers between the ages of 66 and 74 were single women. "Single women remain a large buying force," said Lautz. "A number of divorced women and those who were recently widowed purchased a home without the help of a spouse or roommate." In terms of buyer characteristics, 19% of older boomers – buyers between the ages of 66 and 74 – and 18% of Generation Xers – buyers ages 41 to 55 – were most likely to purchase a new home to prevent having to do renovations or avoid plumbing or electricity problems, and these buyers prioritized having the ability to choose and customize design features. Seventeen percent of buyers who are part of the silent generation – those between the ages of 75 to 95 – purchased newly-built homes. These buyers were least likely to compromise in their home search and least likely to purchase a detached single-family home. As is always the case in real estate, location proved to be an important component among buyers. Fifty-four percent of homes purchased by homebuyers ages 31 to 40 – older millennials – were located in a suburb or subdivision. Out of this age group, 69% said the quality of the neighborhood influenced their neighborhood selection. That sentiment was shared by buyers ages 22 to 30 to the tune of 65%. However, an even stronger factor among this 22-to-30 age bracket was "convenience to workplace," as 74% cited that when deciding on a neighborhood, proximity to where they worked was imperative. "The younger millennials overwhelmingly answered that they prefer to live closer to work, as many don't want a long commute and this was evident in their buying habits," said Lautz. "Additionally, both of these groups also placed a high value on being close to family and friends as 57% said that dynamic factored into what neighborhood they ultimately chose." Lautz added that older boomers and those in the silent generation were similarly heavily influenced by a desire to be close to family and friends. Forty-seven percent of both generations cited this as a factor in neighborhood selection. Older boomers (35%) and the silent generation (36%) also valued their neighborhood being close to areas in which they could shop, and both groups (28% and 31%, respectively) stated that proximity or convenience to a health care facility was an influential factor in choosing a neighborhood. Among all sellers, the most commonly cited reason for wanting to sell their residence was a desire to move closer to friends and family (15%), followed by the home being too small (14%) and a change in family situation (12%). In the midst of the pandemic, the usefulness of virtual tours skyrocketed, especially among 22- to 40-year-old buyers. "Homebuying aside, this segment of the population was already accustomed to doing research online," said Lautz. "So, to see them really embrace virtual tours and virtual open houses was a given, nonetheless, real estate agents are the top information source, and the data shows these buyers ultimately used agents to purchase a home." Out of all buyers, 88% cited a real estate agent as an information source they used during their home search, but that share rises to 91% among younger millennial buyers ages 22 to 30. Two percent of all buyers and sellers were from Generation Z. "Buyers used all tools available to them – whether it be a mobile device, yard sign or an online video – but at some point, nearly all buyers turned to an experienced agent to assist with the transaction," said Lautz. "This is especially true among younger millennial consumers as they are likely first-time buyers and need help navigating the market and all steps involved in the process." Buyers from all generations – more than half (51%) – primarily wanted their agent's help to find the right home to buy. Homebuyers also called on agents to help with brokering the terms of their sale and to aid with price negotiations. According to the NAR report, the oldest and youngest age groups, those 66 and older, as well as those ages 22 to 30, were more likely to want their agent's assistance with paperwork. In terms of selling and consistent across all age groups, nine in 10 home sellers worked with an agent to sell their home. "Realtors® continue to be an integral part of both the homebuying and the home selling process," said NAR President Charlie Oppler, a Realtor® from Franklin Lakes, N.J., and the CEO of Prominent Properties Sotheby's International Realty. "Buyers and sellers should understand that we can assist with every part of the real estate transaction, from finding or listing a property, securing a loan and sorting through the exhaustive paperwork." The largest share of all home sellers were baby boomers, at 43%. Sellers aged 55 and younger often upgraded to a larger and more expensive home while staying relatively close to their prior home. Sellers 56-years and older regularly purchased a similarly-sized home, but less expensive than the home they sold by moving farther. Overall, sellers stayed in their previous home for a median of 10 years before selling, with a median of six years among sellers ages 31 to 40, and a median of 16 years among sellers 66 and older. Recently sold homes were generally on the market for a median of three weeks. Lautz explained that homes moved off the market so quickly because of the ongoing home inventory shortage. The limited supply of houses for sale also contributed to sellers being able to recoup so much on their transactions, according to Lautz. Sellers made a median of $66,000 in equity from their sale. Methodology NAR mailed a 131-question survey in July 2020 using a random sample weighted to be representative of sales on a geographic basis to 132,550 recent homebuyers. Respondents had the option to complete the survey via hard copy or online; the online survey was available in English and Spanish. A total of 8,212 responses were received from primary residence buyers. After accounting for undeliverable questionnaires, the survey had an adjusted response rate of 6.2%. The sample at the 95% confidence level has a confidence interval of plus-or-minus 1.08%. The recent homebuyers had to have purchased a primary residence home between July 2019 and June 2020. All information is characteristic of the 12-month period ending July 2020 with the exception of income data, which are for 2019. The National Association of Realtors® is America's largest trade association, representing more than 1.4 million members involved in all aspects of the residential and commercial real estate industries.
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East Coast Housing Market Continues to Dominate Areas Most Vulnerable to Coronavirus Impact
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Is the Beach So Last Year?
Realtor.com report: "Snowbirds" typically searching for sun are favoring nearby ski towns more than ever as they look to escape closer to home SANTA CLARA, Calif., Jan. 15, 2021 -- Searches of homes in ski towns were up nearly 36% year-over-year in the fourth quarter of 2020, according to a new report from realtor.com®. Much of the increased demand is coming from residents of cold weather, Northern states, often referred to as Snowbirds, as they search for homes with outdoor recreation options closer to home during pandemic. "Historically, residents of the Midwest and Northeast have shown a preference for warmer cities, and contributed to much of the out-of-state demand in homes in sunny states, such as Florida," said realtor.com® Chief Economist Danielle Hale. "This year, we found that Snowbirds' interest in ski towns increased more than interest from other areas across the country. It's not surprising. Americans are increasingly searching for getaways that are within driving distance. Skiing is done outdoors and generally at a distance from others, making it a relatively safe sport during the pandemic. Many of these areas offer year-round outdoor activities, making them summer destinations as well." The analysis examined the home searches of residents from 10 "Snowbird" markets to nearly 200 resort-linked ski towns. It found residents of eight of these markets -- Boston; Chicago; Columbus, Ohio; Indianapolis; New York; Philadelphia; Providence, R.I. and Minneapolis -- were showing record interest in ski towns. The exceptions were Baltimore and Detroit, where searches for ski towns were still up year-over-year, but lower than the rest of the U.S. market overall. Views to ski towns from residents of Snowbird metros were up 44.5% in the fourth quarter year-over-year, higher than the 35.7% increase recorded nationwide. Overall, the top 10 ski towns that showed the greatest increase in home shopper interest from Snowbirds averaged a 127% increase in searches in the fourth quarter of 2020 compared to last year. Seven of the 10 top ski towns seeing the largest percentage increase in searches were located in Northeast and Midwest. Ranked in order of percentage increase, the top 10 ski towns in the fourth quarter of 2020 were: 1. Union Dale, Pa. Increase in searches (y/y): 225% Median list price: $185,000 Home to Elk Mountain Ski Resort, which offers 180 skiable acres and 27 trails, Union Dale is an alternative to the more touristy Poconos. It is less than a three-hour drive from both Philadelphia and New York City and just over 30 minutes from Scranton, Pa., the setting for the popular television sitcom, The Office. Scranton is one of the largest cities in Pennsylvania, giving Union Dale residents nearby access to water activities on Lake Scranton, minor league baseball and a vibrant art and restaurant scene. 2. Choteau, Mont. Increase in searches (y/y): 143% Median list price: $174,500 On the path between the Glacier and Yellowstone National Parks at the foot of the Rocky Mountain Front, Choteau provides a small town feel and a wide range of recreational activities from exploring ancient paleontology sites to golfing, hiking, boating, fishing and hunting. Ear Mountain, Freezout Lake and the Teton River are just a few of the area's scenic attractions. Teton Pass Ski Resort, about 20 miles north of Choteau, offers skiing and snowboarding. Great backcountry skiing and snowboarding are also nearby. 3. North Creek, N.Y. Increase in searches (y/y): 132% Median list price: $272,000 Home to the Gore Mt. Ski Center, North Creek is a mecca for outdoor activities, including downhill and backcountry skiing and snowshoeing in the winter and whitewater rafting, hiking, biking, fishing and camping in warmer months. North Creek is located near Lake George and is a four-drive from New York City. Owned by the State of New York and operated by Olympic Regional Development Authority, the Gore Mountain ski area has been expanded in recent years, which has resulted in an influx of private investment in new businesses as well as several new housing developments. 4. Eden, Utah Increase in searches (y/y): 122% Median list price: $1,190,000 Situated along the Ogden River at an elevation of 4,941 feet, downtown Eden is just 30 minutes from Salt Lake City and three world-class ski resorts -- Snowbasin, Powder Mountain and Nordic Valley. Its small town charm includes historic 25th Street, which is lined with shops and restaurants. At the end of 25th Street is Union Station, which houses a vintage car museum, art gallery and a collection of historical trains. In addition to skiing and snowboarding in the winter, Eden offers year-round outdoor activities, including golfing, hiking and biking trails. 5. Windham, N.Y. Increase in searches (y/y): 118% Median list price: $692,000 Windham is located in the Catskill Mountains, just 2.5 hours north of New York City, making it a perfect weekend getaway. It's known for Windham Mountain Resort, with ski trails, terrain parks and a mountain bike park. Area trails include the multi-use Windham Path, passing streams and a covered bridge, and the Escarpment Trail to the summit of Windham High Peak. The Five State Lookout offers far-reaching views of the Hudson River Valley and surrounding mountain ranges. 6. Boone, Iowa Increase in searches (y/y): 113% Median list price: $165,000 Named for the youngest son of Daniel Boone, this Central Iowa town is located about 40 miles north of Des Moines. The town grew rapidly following the arrival of the railroad in 1866, which easily connected it to Chicago to the east, Omaha to the west, St. Louis to the south and Minneapolis to the north. Today, Boone's close proximity to the Des Moines River and abundant parks makes it a good destination for outdoor activities year-round. In addition to hiking at Ledges State Park and skiing, snowboarding and tubing at Seven Oaks, the Boone & Scenic Valley Railroad's dinner train is a great way to enjoy a meal while viewing the changing of the leaves. 7. Otis, Mass. Increase in searches (y/y): 113% Median list price: $402,000 Otis is located in the Berkshires in western Massachusetts. Known for outdoor activities like hiking and water sports, as well as cultural experiences, the Berkshires is a two-hour drive from Boston and only three hours from New York City. This picturesque town is nestled along several lakes and ponds along the slopes of the Berkshire Range. Otis is home to Otis Range, a family-friendly ski resort, several campgrounds and forest preserves, and is a great starting point for hiking with the Taconic, Appalachian and Berkshire ranges all in the vicinity. 8. Lakeside, Mont. Increase in searches (y/y): 105% Median list price: $972,500 The cozy town of Lakeside lines the northwest shores of Flathead Lake at the base of Blacktail Mountain. It is just south of Kalispell and about two hours north of Missoula and is known for entertaining tourists who come to visit the Flathead area and Glacier National Park. Lakeside offers four seasons and something for everyone, including skiing the slopes of Blacktail Mountain and sailing and boating on Flathead Lake as well as biking, camping and horseback riding and a lively cultural and restaurant scene. 9. Paoli, Ind. Increase in searches (y/y): 103% Median list price: $135,000 Home to Paoli Peaks Mountain Resort, the town of Paoli is about 100 miles south of Indianapolis. Paoli was first settled in the early 1800s and holds the distinction of playing a role in the Underground Railroad. Today, Paoli is a close knit community that offers residents a suburban rural mix. In addition to skiing, snowboarding and tubing, Paoli is close to French Lick, which is known for its historic mineral springs. 10. Boyne Falls, Mich. Increase in searches (y/y): 100% Median list price: $321,700 Named for the falls on the nearby Boyne River, this small northern Michigan community is nestled along Lake Charlevoix, which has been named by USA Today as one of the Best Lakes in America. Surrounded by a rolling countryside, Boyne Falls is home to several ski resorts and recreation areas that offer four seasons of outdoor recreation from downhill and cross country skiing, snow biking, snowshoeing and ice skating at Boyne Mountain to golf, ziplining and biking. Nearby Deer Lake offers canoeing, swimming and boating. Methodology: Realtor.com® analyzed search activity to 180 towns with populations of at least 1,000 people and at least one ski resort. Towns are defined by ZIP code and will not match municipal boundaries. The analysis also was narrowed to explore searches from residents of 10 Snowbird metros, which are defined as Northeast and Midwest markets with the highest search traffic to warmer-climate vacation or second home markets. About realtor.com® Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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63% of 2020 Homebuyers Made an Offer Sight Unseen, Shattering Previous Record
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More than a Third of Young Americans are More Interested in Smart Home Technology Due to the Pandemic
Technology for safety and security, energy efficiency, and entertainment and relaxation top consumers' stay-at-home wish lists SANTA CLARA, Calif. -- A new survey from realtor.com found that interest in smart home technology has increased since the pandemic began. A quarter (25%) of Americans said they are more interested in smart home technology now that they're spending more time at home and 41% of smart home technology owners have bought at least one device or feature since the pandemic began. These numbers were even higher for 18-34 year-olds, with 37% showing increased interest and 48% of current owners having purchased at least one device or feature since the start of the pandemic. Realtor.com® and YouGov surveyed more than 2,000 Americans between Dec. 3-7 about their thoughts on smart home technology. More than half (57%) of all Americans and 61% of younger Americans (18-34 year-olds) already own some smart home technology. The most commonly owned products were: smart TVs (36%), smart home speakers (22%), smart doorbells (12%), robot vacuums (10%) and connected climate control systems/smart thermostats (10%). "The survey results show that many Americans, and especially younger people, are leveraging smart home technologies to enhance their quality of life, even more so now that most of us re-shaped our homes into live, work, learn and play spaces," said realtor.com®. Senior Economist, George Ratiu. "In a year defined by a global pandemic, and fraught with civil unrest and economic volatility, it's not surprising that people are prioritizing the safety and security of their home, their finances, and having a comfortable place to relax and unwind." Safety and security are top priorities Survey respondents were particularly interested in technology that enhances the safety and security of their home. Specifically: When asked to select just one smart home feature to add to their home, a high-tech security system ranked first (21%) When choosing a smart home feature that would make a new home most desirable, two of the most popular responses were a smart doorbell with camera (36%) and a high-tech security system (34%) A larger share of respondents were willing to pay more for a home with a high-tech security system (21%) and a smart doorbell with a camera (21%) When asked to describe a futuristic home, 22% selected a 'fortress of safety' that can protect against climate-related challenges Energy efficiency and environmentally-friendly features rank high When describing a futuristic home with smart features, the most popular selection by far (35%) was a green, energy-efficient home. Further: When asked which feature would make a new home more desirable, solar roof tiles (37%), a home battery pack to store solar energy (32%), and standalone solar panels (24%) were among the top responses Many consumers would be willing to pay more for these green features that could have a return on investment (24%, 20%, and 17%, respectively) When asked to pick just one smart home feature that would improve their current living space, a connected climate control system/smart thermostat (17%) was the second most popular choice At-home entertainment and relaxation are more important than ever 2020 was a year with many outside stressors, which led respondents to think about their home as a place for relaxation and entertainment. As such: When asked which features would make a new home more desirable, 26% said a high-tech home theater, and 18% want TVs that pop up out of dressers or drop down from the ceiling Eighteen percent signaled that a sleep sanctuary with ambient sound, soothing music and a bed that automatically adjusts for the perfect night's sleep would be among the features which could most improve their current living space Fifteen percent selected a high-tech massage chair, and Six percent of respondents were interested in an automatic cocktail maker Methodology: Realtor.com® commissioned YouGov America to conduct the survey. All figures, unless otherwise stated, are from YouGov America. The total sample size was 2,284 adults. Fieldwork was undertaken Dec. 3-7, 2020. The survey was carried out online. The figures have been weighted and are representative of all U.S. adults (aged 18+). About realtor.com® Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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Realtor.com Top Housing Markets: Tech Hubs and State Capitals Will Dominate 2021
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Pending Sales Return to Typical Seasonal Trend, Still Up 28% From 2019
Home prices rose 16% from a year earlier, and new listings were up 9% SEATTLE, Dec. 4, 2020 -- The median home sale price increased 16% year over year to $322,828, the highest on record, according to a new report from Redfin, the technology-powered real estate brokerage. Below are other key housing market takeaways for 400+ U.S. metro areas during the 4-week period ending November 29. Pending home sales were up 28% year over year even as the number of pending sales steeply declined during the week of Thanksgiving, following the typical seasonal trend. In the single week ending November 15, pending sales were up 25% from the same week a year earlier. New listings of homes for sale were up 9% from a year earlier. The number of new listings was the lowest it has been since the first week of May. Active listings (the number of homes listed for sale at any point during the period) fell 29% from 2019 to a new all-time low. 42% of homes that went under contract had an accepted offer within the first two weeks on the market. The average sale-to-list price ratio, which measures how close homes are selling to their asking prices, rose to 99.5%—an all-time high and 1.5 percentage points higher than a year earlier. For the week ending November 29, the seasonally adjusted Redfin Homebuyer Demand Index was up 28% from pre-pandemic levels in January and February. Mortgage purchase applications increased 9% week over week (seasonally-adjusted) and were up 28% from a year earlier (unadjusted) during the week ending November 27. For the week ending December 3, 30-year mortgage rates dropped to 2.71%, another new all-time low. Rates have been below 3% since late July. "Sellers took the week off for Thanksgiving, but buyers were still out there searching for homes despite the lack of new listings," said Redfin chief economist Daryl Fairweather. "Sellers continue to be in the driver's seat when it comes to pricing. And with mortgage rates hitting new record lows nearly every week recently, buyers are tolerant of higher prices. The lack of new listings will put a lid on home sales through the end of year. The few desirable homes put on the market will receive competitive bids, while sellers who don't get any bites from buyers will give up and take their homes off the market." To view the full report, including charts and methodology, please click here. About Redfin Redfin is a technology-powered residential real estate company, redefining real estate in the consumer's favor in a commission-driven industry. We do this by integrating every step of the home buying and selling process and pairing our own agents with our own technology, creating a service that is faster, better and costs less. We offer brokerage, iBuying, mortgage, and title services, and we also run the country's #1 real estate brokerage search site, offering a host of online tools to consumers, including the Redfin Estimate. We represent people buying and selling homes in over 90 markets in the United States and Canada. Since our launch in 2006, we have saved our customers over $800 million and we've helped them buy or sell more than 235,000 homes worth more than $115 billion.
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Realtor.com 2021 Housing Forecast: Sellers Will Get Top Dollar as Buyers Struggle with Affordability
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Rent Declines Accelerate in Tech Hubs as Remote Work Prompts the Desire for More Space
Rents continue their downward spiral throughout the San Francisco Bay Area along with Manhattan, Boston, Seattle and Washington, D.C. SANTA CLARA, Calif., Nov. 13, 2020 -- Rents in the nation's tech hubs continued their descent in October, falling by one-third for a studio apartment in San Francisco year-over-year, according to the realtor.com monthly rental report released today. The report also showed that while the declines have begun to slow down nationally, renters are seeking both affordability and more space the longer they work from home. Nationally, rental growth rates are still far below where they were pre-COVID, but declines are starting to lessen. The median studio unit rent in October was $1,316, down 0.8% year-over-year. The median one-bedroom rent in October was $1,495, up 1.1% year-over-year. The median two-bedroom rent continued to increase in October. At $1,869, it was up 2.6% year-over-year, approaching its pre-COVID annual growth rate of 3.5%. "The combination of tech companies extending their work from home policies through mid-2021 or even indefinitely, and the desire for more space, especially with the weather cooling, is putting pressure on rents in the most expensive urban metros and tech hubs," said realtor.com® Chief Economist Danielle Hale®. "Just as we saw with buyers, many renters appear to be looking to escape their urban life altogether, while others are looking for more space. Nationwide, rents for two-bedroom units have begun to bounce back and if the trend continues, price growth could return to pre-COVID levels early next year." San Francisco led the nation in declines with monthly rents falling 33.3%, 26.3% and 23.4% for studio, one-bedroom and two-bedrooms units year-over-year, respectively. Rents for studios and one-bedrooms in nearby Santa Clara and San Mateo counties also saw double-digit decreases in October. Outside of the Bay Area, Manhattan, Boston, Seattle, and Washington, D.C. were among the metros seeing the largest year-over-year declines. These markets also represent some of the most expensive cities in the country, giving rents the most room to fall. In October, the median studio rent in Manhattan was $2,395, down 20.0% year-over-year, accelerating from 15.4% a month earlier. One-bedroom rents in Manhattan were $3,250, down 16.7% compared to last year, and accelerating from a decrease of 11.7% in September. Two-bedroom rents in Manhattan were $5,333 in October, down 11.1% compared to last year, accelerating from a 4.1% decline a month earlier. Top 10 markets with largest one-bedroom rent decreases in October Top 10 markets with largest two-bedroom rent decreases in October Methodology: Rental units include apartment communities as well as private rentals (condos, townhomes, single-family homes). National rents were calculated by averaging the medians of the 100 largest counties, except for studios, which were based on 94 of those counties with at least 20 studio listings. About realtor.com® Realtor.com® makes buying, selling and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.
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U.S. Properties with Foreclosure Filings on the Rise as Pandemic Remains a Threat to Economy
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Realtor.com Survey Finds Ghosts and Goblins Don't Have Homeowners Hanging a For Sale Sign
Most who believe their house is haunted are perfectly fine with a few bumps in the night SANTA CLARA, Calif., Oct. 14, 2020 -- Haunted houses are popular attractions this time of year, but most Americans say they wouldn't consider living in one. However, a majority of those who believe they currently live in a home that is haunted say the spooky happenings they've experienced are not reason enough to move, according to realtor.com®'s annual Halloween survey released today. Survey results from more than 2,000 Americans reveal that 13% believe they currently live in a home that is haunted, and a majority of them -- 54% -- knew or suspected the house was haunted before moving in. Although nearly two-thirds (62%) of respondents indicated they'd be unlikely to consider living in a house that was rumored to be haunted, a majority (56%) of Americans who believe their home is haunted have not considered moving. "Haunted houses typically draw big crowds this time of year, but we wanted to see how many people actually believe they live in one," said Lexie Holbert, realtor.com® housing and lifestyle expert. "Although only a small percentage of respondents indicated they believe their home is haunted, it was surprising to see how many are perfectly comfortable sharing their space with spirits from the world beyond." Just where are these haunted houses? The West led the nation with the most respondents who believe they live in a home that is haunted at 18%, followed by 13% in the Northeast, 11% in the Midwest and 10% in the South. Of those who suspected their house was haunted prior to moving in, Northeasterners were most comfortable living with spirits at 76%, followed by those in the West at 57%, the South at 51% and 35% in the Midwest. What is it about a house that makes it haunted? Asked to select all the spooky happenings that made them think their home was haunted, strange noises topped the list at 44%. This was followed by: Shadows -- 38% Hot and cold spots -- 37% The feel of certain rooms -- 34% Odd pet behavior -- 30% Items moving and the feel of being touched -- 29% (tie) Levitating objects -- 17% Interestingly, the survey found the denizens of the netherworld don't necessarily make their presence known in the same manner throughout the country. Regionally, here's what topped the list of ghoulish sensory exploits: Northeast: Feel of the room (41%), shadows (34%), strange noises (33%) Midwest: Strange noises (57%), shadows (37%), items moving and hot and cold spots (36%) (tie) South: Strange noises (58%), shadows (48%), the feel of a certain room (44%) West: Hot and cold spots (38%), strange noises and shadows (33%) (tie), the feeling of being touched (28%) Who's more apt to buy a haunted house and at what price? For most respondents, buying a haunted house is not something they see themselves doing. Fifty-four percent of men said they were unlikely to ever consider living in a house that was rumored to be haunted, compared to 70% of women. By age, those aged 55 and over were most unlikely to consider living in a haunted house (64%), followed closely by those aged 18-34 at 62% and 35-54-year-olds at 59%. Regionally, 66% of respondents in the Northeast said they were unlikely to consider living in a haunted home, while 65% of those living in the Midwest and South and 52% in the West said they were unlikely to. When asked at what level of discount they would need to purchase a haunted house, 39% of those between the ages of 18-34, 33% aged 35-54 and 24% aged 55 and over said the discount would need to be greater than 10%. However, 37% of those 55+, 28% aged 35-54 and 23% aged 18-34 said no discount would be enough to live in a haunted house. About realtor.com® Realtor.com® makes buying, selling and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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Northeastern Housing Markets Remain Most at Risk of Economic Impact from Coronavirus Pandemic
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Realtor.com Red Versus Blue Report: Blue State Americans Are Searching For Homes In Swing States; What Does That Mean For The Presidential Election?
Americans are migrating from Democratic urban areas to more affordable suburbs and rural areas that lean Republican. But will they turn any red states blue? SANTA CLARA, Calif., Oct. 6, 2020 -- The ongoing trend of Americans migrating from densely populated typically Democratic urban areas to more affordable suburbs and rural areas that historically lean more Republican could potentially have an impact on the outcome of the upcoming presidential election, according to a new analysis released today by realtor.com®. The report reveals that the majority of out of town searches for homes in the battleground states of Florida, Michigan, Pennsylvania and Wisconsin come from states and counties that lean blue. The analysis examines the searches of home shoppers on realtor.com® looking outside their local market over the last three years. For the purpose of this study, the analysis assumes the political affiliation of the home searchers is proportional to the distribution of their county of origin during the 2016 presidential election. It does not account for changes in political affiliation, other factors that may cause someone to shift their allegiances, or the migration of renters, who tend to move more frequently. "For years homebuyers have looked from urban areas to more suburban and rural areas to find the affordability that makes buying a home possible. The additional time at home and flexibility to work remotely as a result of the pandemic have further fueled this trend," said realtor.com® Chief Economist Danielle Hale. "Although many factors will ultimately influence voting decisions, what we may learn in just a little over a month is whether these shoppers ended up changing the results in the states they moved into, or not. We know a number of blue staters' interest in swing state moves; but we just don't know how many of them actually did move, and whether they themselves vote Democratic or Republican." According to the analysis, which examined all 50 states and the District of Columbia, the majority of out of town searches for homes in Florida, Michigan, Pennsylvania and Wisconsin -- four of the 13 identified by a Politico analysis as battleground states -- are coming from states and counties that lean blue. These search patterns also indicate that, with the exception of Georgia, the 30 states that went red in 2016 may be impacted one way or another by blue staters moving in. At the same time, eight blue states and the District of Columbia are seeing an influx of people from states that are red. "A critical question - as blue staters move to swing or red states, are they Democratic voters seeking out a more suburban or rural lifestyle, or are they Republican voters wanting to move out of a more Democratic neighborhood or do their political opinions shift as they move to areas that have traditionally supported Republican candidates? We may know how to better answer these questions, once the votes are counted," said Hale. Out of state searches in the four potential swing states Florida (Red in 2016 and considered a toss up state in the upcoming election by Politico) Realtor.com® analysis: The biggest share of non-local home searches in Florida are coming from Georgia (a red state in 2016) followed by New York, New Jersey, Illinois and California, all blue states in 2016. At the county level, the highest share of non-local searches in the state come from all blue counties -- Dekalb County, Ga., Cook County, Ill., Fulton County, Ga., New York County, N.Y. and Essex County, N.Y. Michigan (Red in 2016 and considered to be leaning blue in the upcoming election by Politico) Realtor.com® analysis: The biggest share of non-local home searches in Michigan are coming from Ohio, Illinois, California, Georgia and Florida. Although only two of the top viewing states are blue, the highest share of non-local searches are from blue counties -- Cook County, Ill., Summit County, Ohio, Dekalb County, Ga., Cuyahoga County, Ohio and Franklin County, Ohio. Pennsylvania (Red in 2016 and considered to be leaning slightly blue in the upcoming election by Politico) Realtor.com® analysis: The biggest share of non-local home searches in Pennsylvania are coming from New York, New Jersey, Maryland, Ohio and Virginia. Of these five states, only Ohio was red in 2016. At the county level, the highest share of non-local searches in the state come from all blue counties, Washington, D.C., New York County, N.Y., Essex County, N.J., Kings County, N.Y. and Montgomery County, Md. Wisconsin (Red in 2016 and considered to be a toss up in the upcoming election by Politico) Realtor.com® analysis: The biggest share of non-local home searches in Wisconsin are coming from Illinois, Minnesota, Pennsylvania, Iowa and California, three of which (Illinois, Minnesota and California are blue states). At the county level, four of the five highest share of non-local searches in the state come from blue counties -- Cook County, Ill., Lake County, Ill., Hennepin County, Minn. and Bucks County, Pa. The exception is McHenry County, Ill. Editor's note: This analysis is not a prediction of the outcome of the election. Whether these home searches benefit either political party depends on factors that cannot be accurately measured: first, realtor.com® does not have data on how many of these searches actually resulted in a move to a new market, though these searches have historically correlated well with migration patterns; and second, there is no way to determine the political leanings or party affiliation of those who do cross-market searches and/or ultimately move. About realtor.com® Realtor.com® makes buying, selling and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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Realtor.com Weekly Housing Report: Nearly 400,000 Fewer Homes Have Been Listed Since the Start of the Pandemic
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Rental Beast September Market Report: Conversation with Brian Horrigan, Chief Economist at Loomis Sayles
September 23, 2020 -- In conjunction with our regular monthly Market Report, Rental Beast interviewed Brian Horrigan, Chief Economist at Loomis Sayles, a Boston-based investment management firm with more than $310 billion in assets under management, to discuss economic trends and COVID-driven real estate developments. Rental Beast spoke with Horrigan on the 19th anniversary of the September 11th attacks, and Horrigan draws enlightening parallels between the economic conditions following 9/11, and today's COVID pandemic. Horrigan explains that 9/11 permanently changed the way airport security is handled. Similarly, he expects the pandemic to have long-term effects on where we work and where we live. Although COVID-19 restrictions will eventually ease, Horrigan expects many companies will adopt a permanent hybrid work from home model. "Extended lockdowns forced millions of employees to experience working from home for the first time, and many workers found that a work from home model resulted in both more productive working hours, and the ability to spend more time with family and pursuing other interests," says Horrigan. "Even after restrictions are eased, many employees may not want to return to pre-pandemic routines and will make future real estate decisions without considering proximity to the office." Since mid-March, Rental Beast's Rental Inquiry data has shown renters moving away from urban centers to the suburbs. Horrigan emphasizes that, for millennials in their prime family formation years, the pandemic has highlighted the risks of urban living. Horrigan comments on the rise in millennial-driven suburban living, saying, "Even before the onset of the COVID-19 pandemic, many millennials left cities in search of suburban affordability and space. And, with the spike in urban violence, fear of COVID-19 contagion, and concern of future outbreaks, the number of millennials interested in non-urban living options will continue to rise." However, Horrigan is careful to point out, "This is not all bad news for urban centers. Cities will need to re-define themselves, and we may see more commercial projects pivot towards residential activity in order to address major pre-pandemic issues, including poor housing availability and affordability." But, as developers look ahead to new projects, a lack of available land near city centers will push development further away from major metro areas. If Horrigan's theory plays out, a combination of more work from home opportunities and millennial-driven suburban development may result in more affordable housing options in urban centers. While much of the resale and rental market is, in Horrigan's words, "Go, go, go," homeownership and rentals in city cores have been compromised. He emphasizes that it took most cities decades to develop the levels of safety and vibrancy needed to attract and keep residents. "COVID is dramatically changing these dynamics. Major cities will need years to repair the damage done." Rental Beast's August 2020 data reflects slowing interest in the urban rental market. In this report, we evaluate exclusive data from five major U.S. cities: Atlanta, Boston, Chicago, Miami, and Philadelphia. We track year-over-year (YOY) changes in Rental Inquiries and Rental Concessions in each city to gain a picture of market conditions. Rental Inquiries Rental Inquiry Volume Continues to Fall in Most Markets Rental Inquiries are prospective tenants actively seeking to rent an available property in our database. Rental Inquiry volume typically follows a predictable seasonal pattern—Rental Beast data from previous years show a high volume of Rental Inquiries during the summer months, as renters hoping to move in the fall begin their apartment search. Departures from such patterns serve as powerful, quantifiable early indicators of a shift in the rental marketplace and are more powerful predictors of future transactional activity than traditional rental information, such as average rent. Rental Beast monitors all inquiries to available listings on the Rental Beast website and listings syndicated to our partner sites including Facebook Marketplace and Realtor.com. August was yet another month of high anxiety for renters. Americans continued to process powerful economic and social factors, including the expiration of the CARES Act, ongoing confusion about school re-opening plans, numerous social reform protests, amped up messaging ahead of the U.S. presidential election, and, of course, the continued effects of COVID-19. In August, Rental Inquiries were down YOY in three out of five markets surveyed. Boston, Miami and Atlanta all recorded significant YOY declines, while Chicago and Philadelphia registered YOY increases: Chicago and Philadelphia registered positive YOY Rental Inquiry results, with gains of 144% and 32%, respectively. Despite health, economic, and social challenges, August represented the 4th consecutive month of positive YOY Rental Inquiry results in Chicago. Rental Beast had the opportunity to discuss the state of the Chicagoland rental market with Chicago real estate leader and CEO of Exit Strategy Realty, Nick Libert. Libert, who has a successful track record of working with both homebuyers and renters, explains that due to historically low interest rates more Chicagoans are considering homeownership, many for the 1st time. This desire for homeownership has driven his 2020 business to record levels. However, a key factor in the growth of the for-sale market is job security. Conversely, some clients must adjust their housing plans due to layoffs. Libert shares that some clients who were in the market to buy a home decided to rent due to recent furloughs. Other potential homebuyers choose to continue renting in pursuit of better deals on home prices—Libert adds that many of his clients who may be financially positioned to purchase a home are choosing to rent, waiting for lower home prices while the economic fallout from COVID-19 persists. For three of the past four months, Philadelphia recorded positive YOY Rental Inquiries as the city of Brotherly Love continues to benefit from renters moving out of NYC in pursuit of more space and lower costs. August represents the eighth consecutive month that both Boston and Miami reported negative YOY Rental Inquiry rates—down 65% and 62%, respectively. Atlanta also reported a 53% decline, continuing the city's nearly year-long trend of negative YOY Rental Inquiries. Like most major metros, many of Boston's large office complexes sit empty as companies re-think their real estate needs. While the shift to virtual models by Boston's universities and large corporate employers has dampened rental demand, Horrigan is optimistic that Boston will recover more quickly. "Unlike many other cities across the US, Boston crime-rates have remained relatively low, suggesting a smoother road to recovery." Like Boston, Miami recorded negative YOY Rental Inquiry rates, as tourism continues to suffer under COVID-19 restrictions. Rental Concessions Rental Concessions Settle in Some Markets While Remaining Prevalent in Others Rental Concessions are compromises landlords make to original rent terms in the hope of filling a vacancy more quickly. Rental Concessions can include monetary compensation, a discount, or various goods and services. For August, Rental Concessions dropped in Philadelphia, Chicago, and Atlanta, while Boston and Miami registered YOY increases: Throughout August, anxious landlords and tenants hoped for guidance from Congress about new rent relief measures. Absent further guidance, landlords continued to slow the pace of Rental Concessions with the following YOY declines: Philadelphia (-99%), Chicago (-54%), and Atlanta (-14%). "Lawmakers in Congress and the Administration need to come back to the table and work together on comprehensive legislation that protects and supports tens of millions of American renters by extending unemployment benefits and providing desperately needed rental assistance," said Doug Bibby, National Multifamily Housing Council President. Boston & Miami landlords continue to offer Rental Concessions to prospective tenants. Boston Rental Concessions were up 99% YOY for August, while Miami posted a 82% YOY increase. Pre-COVID, Boston landlords rarely offered Rental Concessions. However, landlords have quickly adjusted to reduced demand by offering high concessions. Ishay Grinberg, Rental Beast's founder and CEO, comments, "As a landlord, I want to make sound financial decisions while still attracting the best residents. I don't want to lower rents, because it will be very difficult to raise them to market value later. Offering Rental Concessions strikes the right balance—they help landlords fill vacancies, and tenants benefit from some financial relief." About Rental Beast Rental Beast is a SaaS platform that simplifies the leasing process with an end-to-end platform and maintains a highly accurate database of over eight million off-MLS rental properties. With active listings in 19 markets across the United States, and 5 additional markets opening within the next 30 days, Rental Beast's Data Services Group tracks various rental trends in its markets across the nation.
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Homebuyers on a $2,500 Monthly Budget Can Afford $33,000 More with Low Mortgage Rates, But Higher Home Prices Cancel Out Increase
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West Coast, Best Coast, No More?
Millennials trade glitz and glam of downtown for affordability and more space to raise a family; West Coast is absent from annual Hottest ZIPs ranking SANTA CLARA, Calif., Aug. 18, 2020 -- East Coast markets flexed their dominance while West Coast markets failed to make the cut in realtor.com's 2020 Hottest ZIP Codes released today. In its sixth annual report, millennials continue to migrate away from the nation's urban centers in search of affordable housing and space to raise a family. The 2020 hottest ZIP codes in America, in rank order, are: 80911 Colorado Springs, Colo.; 43068 Reynoldsburg, Ohio; 14617 Rochester, N.Y.; 02176 Melrose, Mass.; 04106 South Portland, Maine; 66614 Topeka, Kan.; 03051 Hudson, N.H.; 01602 Worcester, Mass.; 22152 Springfield, Va.; and 27604 Raleigh, N.C. Among this year's top 10 hottest markets in America, a few consistent factors are driving their popularity, including: easy access to both downtown amenities and outdoor space, relative affordability with a strong local economy, and a large number of millennial homebuyers. Homes in this year's hottest ZIPs sell in an average of 18 days, 51 days faster than the rest of the country and 27 days faster than their respective metros, on average. Realtor.com® users view homes in these markets 4.3 times more often than homes in the rest of the country and 2.2 times more often than in their respective metro areas, on average. These housing markets are also 29% less dense (households per sq. mile) than the nation's top 50 largest metros. "This year's hottest ZIP codes lean noticeably toward the East Coast. Nothing west of the Rocky Mountains made the list," according to realtor.com® Chief Economist Danielle Hale. "But when you view the list through the lens of affordability, the picture becomes more clear. As the largest generation in U.S. history continues to advance toward life milestones -- settling down, marriage, parenthood -- the need for space and affordable housing outshines the bright lights in expensive urban areas like New York or Los Angeles. While we've seen millennials moving in this direction for a few years now, all the extra time at home spent trying to work, learn, and play in response to the pandemic has heightened these preferences, and put the trend toward extra space and affordability on fast-forward." East Coast dominates hottest ZIPs Half of this year's hottest ZIPs reside in the Northeast, including Rochester, Melrose, South Portland, Hudson, and Worcester. Demand for these markets was driven by a lack of affordability in nearby larger urban cores such as New York and Boston where prices have sky-rocketed and increased space is a luxury many can't afford. Further south, but still along the East Coast, are Springfield and Raleigh. Although many of these markets were hit by the COVID-19 pandemic first, they were also some of the first to recover, which allowed buyers to come out in force to make up for lost time during the typical spring home buying season. Pent up demand has helped catapult these markets to the top of the list where homes are flying off the market 3.4 times faster than the average home. Millennials attracted by affordability As millennials continue to seek more bang for their buck, demand is sparking up in smaller, less dense markets where housing is more affordable and being a millennial homeowner is more than just a pipe dream. In fact, the average millennial homeownership rate in this year's hottest ZIPs is 53%, compared to 43% for the rest of the country. In part, this is because millennials are thriving in these areas. The average household income for millennials in the hottest ZIPs is $82,011, 27% greater than the national median of $64,670. Millennials in these markets aren't only doing well compared to millennials in other areas, they are doing well compared to other generations as well, including Baby Boomers. In each of the 10 hottest ZIPs, millennials make up the greatest share of mortgage originations. The average share of originations for millennials is 38% in the hottest ZIPs, compared to 27% for 35 to 44 year olds. 2020 Hottest ZIP Codes in America 1) 80911, Colorado Springs, Colo. -- ZIP 80911 is located on the southern edge of Colorado Springs and about 1.5 hours from Denver. The area is known for its great weather with over 300 days of sunshine a year, easy access to the outdoors such as Garden of the Gods Park, and vibrant downtown including a robust art scene. The area is also home to the brand new United States Olympic & Paralympic Museum, which just opened in July. This area offers residents a great quality of life including affordable homes, especially compared to nearby Denver, and strong schools such as Martin Luther King Jr Elementary School (GreatSchools rating 8/10). Last year, ZIP 80916, also located in Colorado Springs, was ranked No. 10 overall. Housing Stats: Homes in ZIP 80911 spend an average of 13 days on market, 20 days less than the Colorado Springs metro on a whole and 58 days less than the national median. The median listing price is $287,000, up 6.5% year-over-year, but 39% lower than the metro and 13% lower than the national median. Seventy-seven percent of residents in ZIP 80911 are homeowners and millennial homeownership is 62%. 2) 43068, Reynoldsburg, Ohio -- ZIP 43068 is located less than a 30-minute drive to the east of Columbus, Ohio. The area attracts young and growing families with its quiet suburban feel while still having easy access to downtown Columbus and all it has to offer. The area boasts a strong school system including Reynoldsburg High School, which is rated a 9/10 by GreatSchools. Additionally, with its close proximity to The Ohio State University, the area keeps a youthful vibe with lots to do, all within a short drive. For those not wanting to head into Columbus, Reynoldsburg offers residents plenty of dining and shopping choices in its revitalized downtown. Seventy percent of residents live within one mile of downtown Main Street. Housing Stats: Homes in ZIP 43068 spend an average of 17 days on market, 28 days less than the Columbus metro and 52 days less than U.S. The median priced home is $204,000, 37% less than the metro and 38% less than the national median. Fifty-six percent of residents in this ZIP are homeowners and millennial homeownership is 38%. 3) 14617 Rochester, N.Y. -- ZIP 14617 is located along the Genesee River and southern shore of Lake Ontario. The area's massive revitalization, especially along the riverfront, has boosted its popularity with young millennials who want to take advantage of downtown's amenities including boutique shopping and great restaurants. Rochester is New York's third largest metro area and includes a blend of history and innovation. The area is also drawing young families with its strong school system including Iroquois Middle School (GreatSchools rating 8/10). Rochester is no stranger to realtor.com®'s Hottest ZIPs list, last year ZIP 1460 ranked No. 5. Housing stats: Homes in ZIP 14617 sell in an average of 18 days, 26 days faster than the Rochester metro as a whole and 51 days faster than the national median. The median listing price is $162,000, up 16.6% year-over-year, but 35% lower than the metro and 51% lower than the national median. Eighty percent of residents in this ZIP are homeowners and millennial homeownership is 82%. 4) 02176 Melrose, Mass. -- ZIP 02176 is located just 10 miles north of Boston. The area boasts a historic downtown, desirable school system which includes Horace Mann Elementary School (GreatSchools rating 9/10) and easy access to public transportation. The town attracts many young families who are looking for more space but still want to enjoy a quick commute to Boston. Locals enjoy boating and stand-up paddle boarding on nearby Spot Pond, the downtown with its boutique shops and restaurants and easy access to green space including the Fells Reservation with great hiking trails. Melrose is a veteran on the Hottest ZIPs list, it ranked No. 7 in 2019. Housing stats: Homes in Melrose sell in an average of 19 days, 26 days faster than the metro and 50 days faster than the national median. The median listing price is $644,000, 2% higher than the metro and 95% higher than the national median. Sixty-three percent of residents in this ZIP are homeowners and millennial homeownership is 46%. 5) 04106 South Portland, Maine -- ZIP 04106 is located on scenic Casco Bay and is part of South Portland. It offers a slightly more affordable option compared to the city of Portland, while still being close to downtown and its world-class restaurants. South Portland is a short drive from Portland Head, Maine's oldest and the country's most-photographed lighthouse. They don't call it "vacationland" for nothing -- South Portland also boasts beautiful beaches, miles of rocky coastline, friendly atmosphere and the ability to walk almost anywhere. The community attracts a lot of families and people looking to escape bigger cities like Boston and New York. Housing stats: Homes in ZIP 04106 spend an average of 21 days on the market, seven days more than last year, but 38 days less than the Portland metro overall. The median list price is $377,000 up 4.2% year-over-year. Asking prices are 9% lower than the metro overall, but 14% higher than the U.S. median. Fifty seven percent of residents in this ZIP are homeowners and millennial homeownership rate is 36%. 6) 66614 Topeka, Kan. -- ZIP 66614 is located on the western side of Topeka, the state capital of Kansas. The area is known for the landmark U.S. Supreme Court case Brown v. Board of Education that declared segregation in public schools to be unconstitutional. While government, healthcare and education are some of the ZIP's largest employers, Topeka is home to a number of manufacturing and distribution centers, including Target, Frito-Lay Inc, Mars Chocolate and Goodyear Tire. In particular, ZIP 66614 is attracting both move up and first-time home buyers with its affordability and close proximity to the area's new shopping and entertainment as well as easy access to Kansas City that is within an hour's drive. Housing stats: Homes in ZIP 66614 sell in 19 days on average, 19 days faster than the metro and 50 days faster than the national median. The median listing price is $184,000, 14% more than the metro, but 44% lower than the national median. Sixty-two percent of residents in the ZIP are homeowners and millennial homeownership is 45%. 7) 03051 Hudson, N.H. -- ZIP 03051 is located in Hudson, N.H., less than an hour north of Boston. Many families looking to escape the busy Boston area head just over the border to the quiet area. Known as "tax-free" New Hampshire, locals enjoy a lower cost of living with no state income or sales tax. Nestled along the Merrimack River, Hudson offers lots of space with easy access to major freeways that lead to the lakes region, skiing or the seacoast. Visitors and locals with a taste for adrenaline enjoy checking out the local indoor skydiving and surfing facility, as well as outdoor activities like hiking, biking and snowmobiling. Housing stats: Homes in ZIP 03051 sell in 22 days on average, 22 days faster than the metro and 46 days faster than the national median. The median listing price is $350,000, 12% lower than metro as a whole. Seventy-eight percent of residents in this ZIP are homeowners and millennial homeownership is 33%. 8) 01602 Worcester, Mass. -- ZIP code 01602 is located on the western side of Worcester, just an hour outside of Boston. It's known for its historic homes, culturally diverse population and highly rated schools, such as Midland Street and West Tatnuck, both rated 8/10 by GreatSchools. Worcester State University is located in the heart of the ZIP and is one of the largest employers in the area, along with Becker College and Worcester Polytechnic Institute. Worcester is a hot spot for families and retirees looking for three or four bedroom homes, but increasing home prices have pushed it out of reach for many first time home buyers. Housing stats: Homes in Worcester spend an average 21 days on market, 31 days less than the metro as a whole and 48 days less than the national median. The median listing price is $318,000, 14% lower than metro as a whole and 4% lower than the national median. Sixty-three percent of residents in this ZIP are homeowners and millennial homeownership is 50%. 9) 22152 Springfield, Va. -- ZIP 22152 is located just inland of the Potomac River, while offering easy access for those working in and around Fort Belvoir, Pentagon City, Arlington, Alexandria, Va., D.C., and National Landing, the home of the new Amazon headquarters. This ZIP offers a mix of townhomes and single-family homes that provide options for both first-time and move-up buyers as well as considerable green space with Pohick Creek Stream Valley Park to the east and Lake Accotink Park to the north. The highly rated West Springfield High School (GreatSchools rating of 8/10), recently redeveloped Springfield Town Center and close proximity to Burke Town Center and Kingstowne are big draws for buyers to the area. Housing stats: Homes in ZIP 22152 sell in an average of seven days, 32 days faster than the metro area and 62 days faster than the national median. The median listing price is $553,000, 8% higher than the rest of the metro and 68% higher than the national median. Eighty percent of residents in this ZIP are homeowners and millennial homeownership is 66%. 10) 27604 Raleigh, N.C. -- ZIP 27604 is located on the north side of Raleigh and reaches all the way into downtown. The area boasts a high quality of living due to its affordability, and that helps draw many buyers from more expensive cities. Raleigh offers its residents all the amenities that come with a large city, but with a small town vibe and plenty of Southern hospitality. Buyers looking to move to the area will have to pledge their allegiance to one of the many incredible local basketball programs that include Duke University, North Carolina State University, and the University of North Carolina at Chapel Hill. Housing stats: Homes in this ZIP sell in an average of 25 days, 32 days faster than the metro as a whole and 44 days faster than the national median. The median listing price is $273,000, 27% lower than the metro and 17% lower than the national median. Fifty-four percent of residents in this ZIP are homeowners and millennial homeownership is 42%. Methodology Realtor.com® analyzed 20,000 ZIP codes based on the time it takes properties to sell and how frequently homes are viewed in each ZIP code from April-June 20, 2020. Eligible ZIP codes had at least 13 active listings each month to calculate a Hotness ranking. Limited to one ZIP code per metropolitan area. About realtor.com® Realtor.com® makes buying, selling and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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People Are Searching in the Suburbs More Than Ever Before
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COVID-19 Impacts Homebuyer Preferences But Not Budgets: Homes.com Survey
Over 40% Seek Different Features, 80% Have Same or Increased Price Range Norfolk, VA (July 29, 2020) -- The COVID-19 pandemic has changed many of the features desired by U.S. homebuyers and increased the dependence on virtual tours; however, it has had little impact on homebuying budgets, according to a Homes.com survey of over 1,000 consumers who have purchased a home during the coronavirus outbreak or plan to purchase before the end of the year. Fully 80% of survey respondents reported that their homebuying budgets had either remained the same or increased since the start of the pandemic, indicating that consumers remain committed to investing in homeownership despite possible anxiety over the challenging economic conditions caused by the pandemic. Overall, 35- to 44-year-olds were the most likely to report a decrease in their budgets, but the impact varied by geography. Most of the respondents who did lower their price targets in the Western states were Generation Z (18-24) buyers, while those in the Northeast were in the Millennial and Generation X age range (24-44). The survey also found that: Over 40% of respondents have changed the features they want in a home because of COVID-19, including adding a home office (30%), larger square footage (27%), enclosed backyard (27%) and/or closed floor plan (15%) to their wish list. These shifts may reflect the realities of today's work-from-home and e-learning needs. Over half of respondents planning to purchase a home before the end of the year have used virtual tours in their search, with roughly one-third having viewed 1-3 homes and one-fourth viewing 11+ homes through virtual tools. One-third of those who have purchased in the last four months utilized these live video tours or virtual open houses. More people indicated they were moving because they wanted a less populated area (16%) than moving for a job (14%), retirement (11%), or wanting a better school system for their children (8%). The most common reason for moving was the need to upsize for a growing family (25%). 37% of respondents have purchased in the last four months and 44% plan to purchase before the end of the year, demonstrating that homeownership remains a strong imperative even during the pandemic. 33% of those who have purchased or plan to purchase a home are aged 18-34, supporting earlier Homes.com surveys indicating that Gen Z is highly committed to early homeownership. Overall, the largest number of buyers or potential buyers (40%) are located in the South, with the rest split between the Midwest (25%), West (22%) and Northeast (13%). 51% are looking for existing single-family detached homes, followed by new construction single-family detached (20%), condominium (14%) and townhouse (11%). "The pandemic has changed what 'home' means for many families and how they search for them," said Homes.com president David Mele. "Even in the midst of those changes, our survey confirms that consumer commitment to homeownership remains the same." More information about the Homes.com 2020 Consumer Homebuyer survey can be found at https://go.homes/COVID19Buyers About Homes.com Homes.com offers today's demanding homebuyers, renters, and those somewhere in between a simply smarter home search with a more personalized and conversational way to find their next home. Since its launch over 25 years ago, Homes.com offers real estate professionals brand and property advertising, search engine marketing, and instant response lead generation to help them succeed online. For more information, visit Homes.com.
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Remote Work to Drive Home Purchase Decisions in the Next Six Months
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Realtor.com Weekly Recovery Report: Record Breaking Traffic Signals Summer Buying Season is Here
But buyers continue to face significant headwinds of record-low inventory SANTA CLARA, Calif., July 9, 2020 -- Summer home buying season is off to a roaring start. As buyers flooded into the market, realtor.com monthly traffic hit an all-time high of 86 million unique users in June 2020, breaking May's record of 85 million unique users. Realtor.com® daily traffic also hit its highest level ever of 7 million unique users on June 25, signaling that despite the global pandemic buyers are ready to make a purchase. The realtor.com® Housing Market Recovery Index reached 97.8 nationwide for the week ending July 4, posting the largest weekly increase since the index was introduced. The week's 2.1 point increase over the prior week brings the index just 2.2 points below the pre-COVID baseline. However, supply remains the biggest factor slowing the recovery; total listings remain 31 percent lower than last year and more listings will need to enter the market for sustained improvement in home sales. "The consistent, record-level homebuyer interest we've detected on realtor.com® over the last five weeks is setting up the tightest summer homebuying season on record," said Javier Vivas, director of economic research for realtor.com®. "All-time low mortgage rates and easing job losses have boosted buyer confidence back to pre-pandemic levels. With supply at record lows , the backlog of demand portends increased competition and a seller's market in the weeks ahead. While buyers are back, growth in home sales this summer will be constrained by the slow return of sellers and the limited amount of homes hitting the market. Key Findings: Local Recovery: Regionally, the West (index 104.4) continues to lead the recovery with the overall index now visibly above the pre-COVID benchmark. The Northeast (index 102.1) also surpassed the recovery baseline last week, and continues to improve. The South (index 96.4) and Midwest (index 95.4) are still lagging but are now back on a steady recovery path. Locally, an additional two markets have crossed the recovery benchmark this week, taking the total number of markets above the January baseline to 14, the highest since the early pandemic period. The overall recovery index is showing greatest recovery in Boston, San Francisco, Denver, Philadelphia, and Los Angeles, with growth in demand and the pace of sales surpassing pre-COVID benchmarks. Total inventory was down 31 percent. The number of homes for sale dropped over last week again even though new listings are improving. More home buyers are taking advantage of low mortgage rates and putting a dent in inventory. New listings are down 4 percent. Fourth of July celebrations falling on a weekend as opposed to midweek boosted the natural pace of new listings. However, we expect the improvement to return to last week's level next week. More sellers will need to enter the market to see sustained improvement during this summer. Median listing prices continue growing at 6.2 percent over last year, faster than the pre-COVID pace. Time on market is now just three days slower than last year as the still-limited number of homes for sale forces buyers to make faster decisions than in the early pandemic period. The market is picking up speed given the surge in buyers but still limited in home sellers. Realtor.com® Recovery Index by Metro Weekly listings data Weekly Recovery index data Methodology: The Weekly Housing Index leverages a weighted average of realtor.com® search traffic, median list prices, new listings, and median time on market and compares it to the January 2020 market trend, as a baseline for pre-COVID market growth. The overall index is set to 100 in this baseline period. The higher a market's index value, the higher its recovery and vice versa. About realtor.com® Realtor.com® makes buying, selling and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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Key Housing Indicators Begin to Turn Around in May
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Homes.com Traffic Trends Point to Emerging Recovery
A mere five months after the world was introduced to COVID-19, the impact has already left a permanent mark on each of us. Historical viewpoints describing this unusual period will be formed based on the stories currently being recorded and archived for future generations. While the historical impact will be measured over years, the economic impact is being felt in real time. Unprecedented business shutdowns and historic job losses have interrupted economic activity across nearly every industry. Some will recover more quickly than others. Fortunately we are already seeing signs of housing demand being unleashed and an early recovery emerging. The three traffic metrics we monitor most closely at Homes.com are site visits, engagement, and requests for information. The first variable, site visits, is the equivalent of customers walking through our door, while engagement measures their activity on the site, including page views. Strong metrics in these first two categories typically result in increased requests for information, driving business to our broker and agent advertising partners. During the peak of stay-at-home orders, weekly visits to Homes.com declined by as much as 35%, measured against the weeks leading up to the outbreak. This is a significant decline, especially during the time of year when housing demand typically picks up for the spring and summer. Thankfully, the bounce back seems to have occurred as quickly as the decline. Accurately measuring pent up demand is an inexact science, but it appears to be accelerating an emerging recovery. The following analysis shows the decline and recovery of Homes.com traffic measured against the "Pre-Pandemic Phase" from February 3rd through March 8th, the 5-week period leading up to widespread stay-at-home orders. Interestingly, while the number of customers walking through our doors at Homes.com declined by nearly a quarter during the Outbreak Phase, site engagement remained fairly high, dropping by only 4%, as requests for information, a measure of intent to buy in the near term, fell by 13%. This early trend of steady site engagement proved to be a strong indicator of pent up demand. As traffic returned during the Recovery Phase, and is now flat with the Pre-Pandemic level, engagement has soared by 15%, and intent to buy in the near term is back to slightly above Pre-Pandemic levels. Also encouraging, first time mortgage applications are up 9% year over year, after being down 35% just six weeks ago. During conventional economic cycles, pent up demand builds during a recession alongside high savings rates. Once confidence returns and a recovery starts, pent up demand is released and consumers spend more. While this is certainly not a conventional cycle, these Homes.com metrics are a strong indication that pent up demand is driving a recovery of housing activity: a positive sign we are heading towards a promising summer season for the real estate industry. To view the original post, visit the Homes.com blog.
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Unprecedented Turnaround in Home Showing Activity Seen in April and May as Agents, Buyers and Sellers Adjust to Virtual Showings
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Hopeful Home Shoppers Rev Their Engines at the Starting Line
Realtor.com users saving and sharing more listings; relying on virtual tours to prepare SANTA CLARA, Calif., May 18, 2020 -- Increased activity on realtor.com suggests that home shoppers are gearing up for a later than usual homebuying season. Realtor.com® listing visits, saves and shares are all up significantly since the first wave of shelter-in-place orders took effect on March 16; especially for those listings with virtual tours. Consumer survey data shows virtual tours have become an essential part of the home search process and will likely remain so even after in-person open houses resume across the country. Listing visits, saves and shares up significantly More than 70 percent of realtor.com® users surveyed registered on the site so that they could save homes as a way to track price reductions and make a shortlist of homes to tour post COVID-19. Additionally, since March 16: Listing views for single family homes and condos are up 30 percent; Saved homes are up 76 percent; Shared homes are up 95 percent; and Time spent per unique user is up 14 percent. "Data suggests that home shoppers who had paused their search are now picking it back up, and the spring homebuying season won't be lost, but merely pushed into the summer months," said Danielle Hale, Chief Economist, realtor.com®. "Tools such as virtual tours and Livestream Open Houses are enabling consumers to safely continue their home search while maintaining social distancing guidelines and have proven to be very popular with consumers." Virtual shopping technology is here to stay Since shelter-in-place orders began, the growth rate of visits to listings with virtual tours has been twice as high as those without. User visits were also 29 percent higher for listings featuring virtual tours, with those listings generating increased engagement and greater likelihood of a consumer connecting with an agent about the home. "While many consumers don't see virtual tours as a replacement for in-person viewings, they have emerged as a valuable tool to learn more about a home, see details up close and help narrow down the search. We believe virtual tours will remain an integral part of the home search, even when shoppers feel more comfortable visiting homes in-person again," said Hale. A survey of realtor.com® users found that: Two thirds (64 percent) had taken a virtual tour, and of those, 45 percent prefer listings that offer virtual tours; Sixty five percent of home buyers believe that virtual tours will continue to be a great resource in their home shopping process even after the pandemic; and An additional 8 percent think virtual tours can be a replacement for in-person tours. When asked what they like about virtual tours, top responses include: They help me eliminate homes that aren't for me (52 percent); They help me see the details of a home without having to step inside (43 percent); They help me create a shortlist of homes I want to see in person (38 percent); and They allow me to see more homes more quickly, without having to drive around to open houses (30 percent). Visit realtor.com®'s COVID-19 recovery site for information, resources and tools: https://www.realtor.com/covid-19/recovery About realtor.com® Realtor.com® makes buying, selling and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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Realtor.com Forecasts a Year of Ups and Downs for Housing Market
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New Listings Fall Nearly 45 Percent in April as Coronavirus Keeps Sellers on the Sidelines
April data shows asking prices flatten as homes linger on the market longer SANTA CLARA, Calif., May 5, 2020 -- Newly listed homes dropped 44.1 percent in April -- historically one of the busiest months for residential real estate -- an indication sellers decided to wait and see how market conditions play out over the coming months, according to realtor.com's April Monthly Housing Trends Report, released today. The report offers the first full month of data showing the impact the COVID-19 pandemic is having on residential real estate throughout the U.S. The significant decrease in new listings adds a new dimension to the nation's inventory-starved housing market. The Northeast -- the region hit hardest by the COVID-19 pandemic -- saw the greatest decline in new listings at 59.4 percent. It was followed by declines of 49.5 percent in the Midwest, 44.1 percent in the West, and 31.4 percent in the South. "The good momentum we saw at the start of the year has helped to somewhat insulate the housing market from the coronavirus' negative impact on buyer and seller confidence across the U.S. Although we saw sharp drops in new listings, an increase in the time it takes to sell a home and a flattening of prices in April, May is likely to see some of these metrics worsen," said realtor.com® Chief Economist Danielle Hale. She added, "Just how significantly the housing market is impacted by the pandemic will depend on how effective the country is at containing the virus and how the economy responds. If all goes well, we could see buyers returning to the market aggressively this summer to make up for the spring they lost." The combination of a decline in new listings and many sellers opting to delist their properties pushed the total number of homes for sale across the U.S. down 15.3 percent year-over-year. April's drop in inventory amounted to a loss of 189,000 listings compared to this time last year. Within the nation's 50 largest metros, inventory declined by 16 percent overall, and none of the 50 metros saw an increase in inventory over last year. The metros with the biggest declines in inventory were Milwaukee-Waukesha-West Allis, Wis. (-46.1 percent); Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md. (-38.7 percent); and Providence-Warwick, R.I.-Mass. (-29.3 percent). Days on market increased in April Homes sold in 62 days on average nationally in April, four days slower than April 2019. This is likely an indication that buyers also have decided to step back to see if economic conditions will improve over the coming months. Weekly data suggests May could see homes sitting even longer. During the week ending on April 25, homes spent an average of nine days more on the market than the same week last year. Additionally, social distancing measures and stricter mortgage lending criteria have made viewing a home and qualifying for a mortgage more difficult, which could continue to extend the amount of time a property sits on the market. Metros with the greatest increase in days on market were led by Buffalo-Cheektowaga-Niagara Falls, N.Y. (+24 days); Detroit-Warren-Dearborn, Mich. (+22 days); and Pittsburgh, Pa, (+15 days). Typical home asking prices flatten Nationally, the median listing price grew 0.6 percent year-over-year to $320,000. However, this was notably slower than March's price growth rate of 3.8 percent. This trend is driven by diminished seller expectations and by a shift in the mix of homes for sale. All of the nation's most expensive large metros have seen newly listed homes drop by 40 percent or more. Some lower-priced large metros have seen large declines in newly listed homes, but others have seen much more moderate reductions. Of the nation's 50 largest metros, 47 saw prices decelerate compared to March. The steepest price declines were seen in Dallas-Fort Worth-Arlington, Texas (-5.7 percent); Seattle-Tacoma-Bellevue, Wash. (-4.5 percent); and Chicago-Naperville-Elgin, Ill.-Ind.-Wis. (-4.4 percent). *Some data points for Los Angeles have been excluded due to data unavailability. EDITOR'S NOTE: The realtor.com economics team is continually tracking the impact of the coronavirus pandemic on the U.S. economy and housing market. The team's reports and analysis are available here. About realtor.com® Realtor.com® makes buying, selling and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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Nearly 3 in 4 Realtors This Week Report Sellers Haven't Lowered Listing Prices to Attract Buyers, Suggesting Calmness and No Panic Selling by Homeowners
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U.S. Housing Markets Vulnerable to Coronavirus Impact Clustered in Northeast and Florida
Nearly Half of the 50 Most Vulnerable Counties in New Jersey and Florida; Midwest and West Regions Less At Risk of Housing-Market Challenges IRVINE, Calif. -- April 7, 2020 -- ATTOM Data Solutions, curator of the nation's premier property database and first property data provider of Data-as-a-Service (DaaS), today released a Special Report spotlighting county-level housing markets around the United States that are more or less vulnerable to the impact of the Coronavirus pandemic. The report shows that the Northeast has the largest concentration of the most at-risk counties, with clusters in New Jersey and Florida, while the West and Midwest have the smallest. The report reveals that housing markets in 14 of New Jersey's 21 counties are among the 50 most vulnerable in the country to the economic impact of the Coronavirus. The top 50 also include four in New York, three in Connecticut and 10 from Florida, but only one in California, none in other West Coast states and only one in the Southwest. Markets are considered more or less at risk based on the percentage of housing units receiving a foreclosure notice in Q4 2019, the percent of homes underwater (LTV 100 or greater) in Q4 2019, and the percentage of local wages required to pay for major home ownership expenses. Rankings are based on a combination of those three categories in 483 counties around the United States with sufficient data to analyze. Counties were ranked in each category, from lowest to highest, with the overall conclusions based on a combination of the three rankings. See below for the full methodology. "It's too early to tell how much effect the Coronavirus fallout will have on different housing markets around the country. But the impact is likely to be significant from region to region and county to county," said Todd Teta, chief product officer with ATTOM Data Solutions. "What we've done is spotlight areas that appear to be more or less at risk based on several important factors. From that analysis, it looks like the Northeast is more at risk than other areas. As we head into the Spring home buying season, the next few months will reveal how severe the impact will be." High-level findings from the analysis: New Jersey and Florida have 24 of the 50 most vulnerable counties from among the 483 included in the report. The 14 counties in New Jersey include five in the New York City suburban area: Bergen, Essex, Passaic, Middlesex and Union counties. The 10 counties in Florida are concentrated in the northern and central sections of the state, including Flagler, Lake, Clay, Hernando and Osceola counties. New York counties among the top 50 most at risk include Rockland County, in the New York City metropolitan area; Orange County, in the Poughkeepsie metro area; Rensselaer County, in the Albany metro area; and Ulster County, west of Poughkeepsie. Other southern counties that are in the top 50 are spread across Delaware, Maryland, North Carolina, South Carolina, Louisiana and Virginia. Among the counties analyzed, only two in the West and five in the Midwest (all in Illinois) rank among the top 50 most at risk from problems connected to the Coronavirus outbreak. The two western counties are Shasta County, CA, in the Redding metropolitan statistical area and Navajo County, AZ, northeast of Phoenix. The midwestern counties are McHenry County, IL; Kane County, IL; Will County, IL and Lake County, IL, all in the Chicago metro area; and Tazewell County, IL, in the Peoria metro area. Counties in the top 50 with a population of at least 500,000 people include Bergen, Camden, Essex, Middlesex, Ocean, Passaic and Union counties in New Jersey; Lake, Will and Kane counties in Illinois; Delaware County, PA; Prince George's County, MD; and Broward County, FL. Texas has 10 of the 50 least vulnerable counties from among the 483 included in the report, followed by Wisconsin with seven and Colorado with five. The 10 counties in Texas include three in the Dallas-Fort Worth metro area (Dallas, Collin and Tarrant counties) and two in the Midland-Odessa area (Ector and Midland counties). Eighteen of the 50 least at-risk counties have a population of at least 500,000, led by Harris County (Houston), TX; Dallas County, TX; King County (Seattle), WA; Tarrant County (Fort Worth), TX; and Santa Clara County, CA, in the San Jose metro area. Counties where median prices ranging from $160,000 to $300,000 comprise 36 of the top 50 counties most vulnerable to the impact of the Coronavirus. Counties with median home prices below $160,000 or above $300,000 make up 14 of the top 50 most vulnerable to the impact of the Coronavirus. Those with median prices below $160,000 are among the most affordable in the nation to local wage earners, while those where median prices exceed $300,000 have some homes with the highest equity and smallest foreclosure rates. Report methodology The ATTOM Data Solutions Special Coronavirus Market Impact Report is based on ATTOM's fourth-quarter 2019 residential foreclosure and underwater (LTV 100 or more) property reports and first-quarter 2020 home affordability report. Counties with sufficient data to analyze were ranked based on the percentage of properties with a foreclosure filing during the fourth quarter of 2019, the percentage of properties with outstanding mortgage balances that exceeded estimated market values in the fourth quarter of 2019, and the percentage of average local wages need to afford the major expenses of owning a median-priced home in the first quarter of 2020. Ranks then were added up to develop an overall ranking across all three categories. Equal weight was given to each category. Counties with the lowest composite ranks were considered most vulnerable to housing market problems. Those with the highest composite ranks were considered least vulnerable. About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, property data APIs, real estate market trends, marketing lists, match & append and introducing the first property data delivery solution, a cloud-based data platform that streamlines data management – Data-as-a-Service (DaaS).
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March Housing Trends Provide First Glimpse of COVID-19 Impact on U.S. Housing Market
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Redfin Reports How U.S. Cities Will Fare in the Coronavirus Recession
Affordable homes and low exposure to volatile industries should help some metros weather the storm SEATTLE, March 31, 2020 -- Affordable East Coast and Midwest cities have the lowest overall economic risk in the 2020 recession that began in March, according to a new report from Redfin, the technology-powered real estate brokerage. The one-two punch of the coronavirus (COVID-19) and an oil price war between Saudi Arabia and Russia has rapidly brought to reality a possibility that seemed remote just a few months ago, but the impact in the real estate market is likely to be short-lived and much less extreme than the 2008 Great Recession. Rochester, Hartford, and Raleigh have the lowest overall economic risk in this recession, while Los Angeles, Miami, and San Diego have the highest risk, based on a late March 2020 analysis by Redfin economists. Housing is Well Positioned to Weather This Storm Because the housing market was strong going into the 2020 recession, there's currently no reason to expect a major crash in home prices. In fact, the driving factors for this 2020 recession are unrelated to real estate, which is just one of the reasons at this time Redfin believes fallout in the U.S. real estate market will be mild, and nowhere near the catastrophe of the 2008 Great Recession. "The housing market came into this turmoil in a strong position, with a very low supply of homes for sale and record levels of home equity," said Redfin lead economist Taylor Marr. "Home equity can function as a rainy day fund. Homeowners can weather a storm of falling home values without the pressure to walk away from their home. They can also better handle a loss of income if they can tap into their equity with a home equity line of credit (HELOC). This stabilizes the market, preventing an influx of supply from foreclosures, which would further cause prices to fall in a vicious cycle. Additional government support provided through the stimulus bill CARES Act and a moratorium on foreclosures can also prevent a falling out during this pandemic." To evaluate the potential impact of the 2020 recession on the local economies of the 49 largest U.S. cities, Redfin analyzed a variety of general factors, as well as some specific to this recession, such as rates of leisure and hospitality employment, debt-to-income ratios, number coronavirus cases and air transportation employment. Metros With Lowest Economic Risk in the Coronavirus 2020 Recession High Debt, High Density and Expensive Housing Make Some Cities More Susceptible While many cities are expected to weather the 2020 recession, some will be harder hit than others. Because the impacts on other, non-housing sectors of the economy, especially employment, are likely to be very large, some metro areas face a greater economic risk during the 2020 recession. Those that are hit the hardest overall are also likely to be more at risk of a real estate downturn. "Some cities have factors that make them more susceptible to losing their footing and are likely to be hard hit," continued Marr. "Amidst rapidly rising layoffs, it will be especially difficult to sell a home in these markets, and yet buyers will likely find limited options as sellers delay listing, leaving the housing market in a standstill. Federal support will help cushion the fall, but in these areas it will take significantly longer to recover." The cities most likely to face economic risk tend to be those with high home prices, high levels of personal debt, and large numbers of people employed in the hospitality industry, which applies to most of the big cities in the West. San Jose (48.4%) is the only metro area in the West with a recession risk score below 50%. The metro area with the highest risk of economic damage during this coronavirus recession is Los Angeles, with an overall score of 77.6%, followed by Miami (76.8%) and San Diego (75.2%). Chicago and Denver stand out as unusual among the 10 metros at greatest risk as, unlike most others on the list, neither is a typical "boom-bust" town. Both have relatively high population density, large employment bases in air transportation and a large rate of existing coronavirus cases, which drove up their overall risk scores. To read the full report, complete with metro rankings and methodology, please click here About Redfin Redfin is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 90 major metro areas across the U.S. and Canada. The company has helped customers buy or sell homes worth more than $115 billion.
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NAR Survey Finds Nearly Half of Realtors Say Home Buyer Interest Has Decreased Due to the Coronavirus Outbreak
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Exclusive Podcast Interview with NAR Chief Economist on Coronavirus Impact
National Association of REALTORS ® Chief Economist, Dr. Lawrence Yun, addresses the outlook of real estate markets in a special episode of "The Brian Buffini Show" podcast CARLSBAD, Calif., March 19, 2020 -- Chief economist and senior vice president of research for the National Association of REALTORS® (NAR), Dr. Lawrence Yun, will discuss the impact of COVID-19 on real estate and the economy in an exclusive interview with real estate leader, Brian Buffini, on The Brian Buffini Show podcast. Available Thursday, March 19, the two experts will weigh in on the state of the housing market, the short/long-term outlook and how real estate agents can safely serve their clients and community. In a wide-ranging interview covering a variety of topics, Dr. Yun reveals his belief that a vibrant real estate market should emerge after the coronavirus threat subsides, "even if it takes a little longer to contain it, there are such solid fundamentals for the real estate market, things will play out very well over the long haul." Buffini advises real estate professionals to be a reliable source of market information for their clients and use the downtime to enhance their professional skills. He wants everyone to realize that "The sky is not falling. This is a difficult time, but in many ways, it could be our finest hour." Dr. Lawrence Yun is a renowned leader in real estate and economics. His extensive research fuels major reports for NAR, which serves a membership of more than 1.4 million real estate agents. During this interview, respected industry guru Brian Buffini complements Yun with his more than 30 years of real estate expertise, providing much needed clarity in the midst of an uncertain economic situation. The Brian Buffini Show podcast is now in its 4th year of providing real estate professionals and consumers with Brian's insightful observations, along with the views his well-known guests. The podcast has become recognized as one of the most influential in the industry, with over 7 million downloads. What: "This Too Shall Pass: An Interview with Dr. Lawrence Yun," The Brian Buffini Show special episode Who: Lawrence Yun, Chief Economist for the National Association of REALTORS®, and Brian Buffini, Founder and Chairman of Buffini & Company Where: https://www.thebrianbuffinishow.com/ When: Available Thursday, March 19, 2020 @ 12:01 a.m. About Buffini & Company Buffini & Company is the largest coaching and training company in North America. Founded by real estate legend and master motivator Brian Buffini, the company provides a unique and highly-effective lead generation system. Buffini & Company's comprehensive business coaching, training programs and cutting-edge content have helped more than 3 million professionals in 37 countries improve their business, increase net profit and enhance their quality of life. Buffini & Company is headquartered in Carlsbad, California. For more information, please email [email protected] About Brian Buffini Brian Buffini, chairman and founder for Buffini & Company, was born and raised in Dublin, Ireland, emigrated to San Diego, California, in 1986 where he became the classic American rags-to-riches story. Discovering real estate, Brian quickly became one of the nation's top real estate agents working a non-traditional methodology based on building long-term relationships with clients. Today, he travels the world sharing a message of encouragement about how to "live the good life." His wit, wisdom and motivational style make him a dynamic speaker and podcast host, adept at helping people tap into their full potential and achieve their dreams. He is a New York Times, Amazon and Wall Street Journal best-seller with his latest book, "The Emigrant Edge." Learn more at brianbuffini.com.
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What Makes Buyers Fall in Love with a Home?
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Redfin Ranks the Most Walkable U.S. Cities of 2020
SEATTLE, Feb. 10, 2020 -- New York, San Francisco and Boston are the most walkable cities in the U.S. in 2020, according to a new ranking from Redfin, the technology-powered real estate brokerage. Those three cities, along with Philadelphia, Miami, Chicago, Washington, D.C., Seattle and Oakland, have reigned as the nine most walkable in the U.S. for the last five years. Long Beach, CA has been number 10 since it overtook Baltimore in 2016. The ranking was determined using data from Walk Score®, a Redfin company that rates the walkability of cities, neighborhoods and addresses. Cities where daily errands do not require a car score 90 points and above, a score of 70 to 89 points means most errands can be accomplished on foot and a score of 50 to 69 indicates that some errands can be completed on foot. Below is Redfin's latest ranking of the top 10 U.S. cities (with populations of more than 300,000) for walking: Biggest Walk Score changes Since Redfin last published Walk Score rankings in 2017, Miami and Washington, D.C. each lost about 1.5 points, and New York lost about one, but each retained its place in the rankings. Oakland; Long Beach, CA; Portland, OR and Omaha, which each picked up around two points, had the biggest Walk Score increases since 2017. "A lot of my homebuying clients seek out walkable neighborhoods in Long Beach because it's a way to get a small-town feeling in a big city. In certain neighborhoods, people run into each other all the time because they're out running errands, walking the dog or keeping an eye on neighborhood kids playing outside," said local Redfin agent Costanza Genoese-Zerbi. "Second Street, Belmont Shore, Belmont Heights, Naples, Alamitos Heights and Belmont Park, all of which are within walking distance of schools, stores, restaurants and parks, have become more and more popular over the last few years." Baltimore, which lost four points to hit 65, saw the biggest Walk Score decline of any U.S. city. It's followed by Bakersfield, CA and San Antonio, which each dropped three points to 34 and 35, respectively. To read the full report, please visit: https://www.redfin.com/blog/most-walkable-us-cities-2020 For a ranking of the most walkable Canadian cities of 2020, visit: https://www.redfin.com/blog/most-walkable-canadian-cities-2020 About Redfin Redfin is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 90 major metro areas across the U.S. and Canada. The company has helped customers buy or sell homes worth more than $85 billion.
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U.S. Housing Supply Reaches New Low
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Could January be the New April for Home Shopping?
A new realtor.com analysis says "yes" in 20 large metro areas SANTA CLARA, Calif., Dec. 18, 2019 -- Historically, April launched the kickoff of the home shopping season as buyers would come out of their winter hibernation looking for their new home. However, the spring shopping season now starts in January for many of the nation's largest markets, according to new research released today by realtor.com. The analysis is based on average monthly views per listing on realtor.com® from 2015 to 2019. In 2015, the peak month for average views per listing on realtor.com® was April, while January lagged behind by a substantial 16 percent. In contrast, for 2019, the month of January fell 1 percent below February for most monthly views per listing on realtor.com®. And January surged to the top in 20 of the 100 largest metro areas, including New York, Los Angeles, Chicago, Dallas, Houston, Seattle, San Francisco, Atlanta, San Jose, Calif., and Denver. In 2018, that was true for just three of the top 100 metros. "As shoppers modify their strategies for navigating a housing market that has become more competitive due to rising prices and low inventory, the search for a home is beginning earlier and earlier," said realtor.com® Senior Economist George Ratiu. "With housing inventory across the U.S. expected to reach record lows in 2020, we expect to see this trend continue into the new year." As of November, the number of homes for sale across the country was down 9.5 percent year-over-year. Additionally, the inventory of entry-level homes priced below $200,000 shrunk by an astonishing 16.5 percent year-over-year. The shift to January's newfound popularity does not mean that the other prime spring months have become less competitive. Realtor.com® data shows that views per listing used to ramp up into spring, but now competition starts high in January and stays high. For example, in 2018, March, the most competitive month, had 21 percent more views per listing than the least competitive month, January. In 2019, that gap between most-and least-competitive months narrowed to a difference of just six percent. What used to be a lopsided bias for April is now a feverish search starting in January, staying consistently competitive across the first four months of the year as hopeful homebuyers look for just the right home. Locally, Seattle had the greatest spike in home shopping in January 2019, with views per property 32 percent higher than the next-highest month. McAllen-Edinburg-Mission, Texas; San Francisco; Atlanta; and San Jose, Calif. metros rounded out the top five markets where January was the most competitive month in 2019. Top Markets Where January was the Most Competitive Month in 2019 Methodology Views per listing are defined as the average monthly page views per property listed for sale on realtor.com®, cited here at the national and metro area levels. About realtor.com® Realtor.com®, The Home of Home Search, offers the most MLS-listed for-sale listings among national real estate portals, and access to information, tools and professional expertise that help people move confidently through every step of their home journey. Through its Opcity platform, realtor.com® uses data science and machine learning to connect consumers with a real estate professional based on their specific buying and selling needs. Realtor.com® pioneered the world of digital real estate 20 years ago, and today is a trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.
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Expect Continued Economic Growth, Slower Real Estate Price Gains and Small Chance for Recession in 2020, According to Group of Top Economists
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Low Inventory Drives Home Buyers to Explore Big City Alternatives
Boise, Idaho, McAllen, Texas and Tucson, Ariz. top realtor.com's list of markets set to sizzle in 2020 SANTA CLARA, Calif., Dec. 12, 2019 -- While the U.S. housing market is expected to cool in 2020, certain markets will remain steadfast, fueled by strong local economies, job creation, and available inventory, especially at the entry-level price point. Topping next year's housing markets list are Boise, Idaho, McAllen, Texas, and Tucson, Ariz., according to realtor.com's analysis of the 100 largest metros released today. Based on realtor.com®'s analysis of projected home sales and price data, this year's list highlights the trend of people moving from expensive coastal cities to more affordable areas inland. In fact, nine out of 10 of 2020's hottest markets are not on the coast -- a significant change from last year when four out of 10 markets were on or near the water. This trend is particularly noticeable in Boise, which jumped from the No. 8 position last year to the top spot for 2020. Boise is seeing an influx of out-of-state buyers looking to enjoy the city's amenities at a lower price point compared with places such as California. In the top 10 markets, home sales are expected to increase by 2.4 percent and prices by 3.1 percent on average year-over-year. This is in contrast to a 1.8 percent decrease in home sales and a 0.8 percent increase in sales prices nationwide, according the realtor.com® 2020 housing forecast. Top 10 markets in 2020 Boise, Idaho McAllen-Edinburg-Mission, Texas Tucson, Ariz. Chattanooga, Tenn. Columbia, S.C. Rochester, N.Y. Colorado Springs, Colo. Winston-Salem, N.C. Charleston-North Charleston, S.C. Memphis, Tenn. "Many of the markets on this year's list are late bloomers in the current housing cycle, meaning they still have plenty of inventory and prices are within reach -- a rare combination in recent years," said George Ratiu, senior economist, realtor.com®. "Additionally, a number of the top markets in 2020 are welcoming an influx of buyers from nearby large cities that have become crowded, expensive and lack sufficient inventory." Buyers have more choice With inventory at historically low levels nationwide, home ownership has become challenging, especially for first-time buyers. In fact, this year's list represents the nation's only markets which retain sufficient inventory, especially at the entry level price point. The search for affordability has attracted a large number of buyers into these markets, with active listings decreasing 11 percent year-over-year. However, in many of the top 10 markets, constricted supply is a relatively new issue and the total stock of inventory remains plentiful and in a good position to absorb growth. Sister cities Many of the markets on this year's list are smaller cities that are handling overflow from nearby larger cities that have become crowded and unaffordable. For example, Colorado Springs is becoming a respite from Denver's pricey housing market and Memphis and Chattanooga are affordable options for people looking for Nashville alternatives. University towns Interestingly, the majority of top markets are home to a college or university. This is likely due to the fact that many schools are creating incubators to nurture entrepreneurs and start-ups, helping to fuel local job markets. Rochester, N.Y., for example, is home to two large universities and is benefiting from this trend. Retirement boom Cities like Tucson, Ariz., Winston-Salem, N.C., Columbia, S.C. and Charleston, S.C. have become popular retirement destinations. Many baby boomers are looking to spend their golden years in a warmer climate and escape the high property tax rates that are common in the Northeast. Arizona, North Carolina and South Carolina do not tax Social Security retirement benefits, making these states attractive to older buyers. "As a whole, millennials are driving the housing market, but what's interesting in this year's list is that not all of our cities fall into that category. In fact, only half of this year's top 10 are millennial markets and the other half are being driven by retirees and mid-lifers leaving more expensive coastal cities," added Ratiu. 1. Boise, Idaho Median home price: $295,000 Home price change: +8.1 percent Sales change: +0.3 percent Combined sales and price growth: +8.4 percent Idaho's capital city has seen a boom in population over recent years, having nearly doubled in size since 1990. Many of the city's newcomers are transplants from more expensive coastal cities. Boise is home to a mild four-season climate with a vibrant community that actively takes advantage of the area's easy access to mountains, rivers, lakes and parks. A strong school system, thriving job market and top-notch healthcare draw a diverse crowd to Idaho's capital. A favorable tax structure -- which includes relatively low sales and property tax and no state Social Security tax -- as well as relatively affordable housing has made this area popular for retirees as well as young professionals. Boise is no stranger to realtor.com®'s Top Markets List, it was No. 8 in 2019. 2. McAllen-Edinburg-Mission, Texas Median home price: $152,000 Home price change: +4.0 percent Sales change: +4.4 percent Combined sales and price growth: +8.4 percent Nestled along the Rio Grande and Mexico border in the southern tip of Texas sit the cities of McAllen, Edinburg and Mission. The area has a rich heritage which can be felt throughout and is home to the National Butterfly Center and annual Citrus Fiesta. Affordability is a main driver for many people moving to the area from other parts of Texas and the country -- in fact, McAllen is one of the most affordable markets in the country, with a median home price of just $152,000. Emerging job opportunities coupled with the fact that Texas does not have a state income tax is drawing many young professionals to the area. 3. Tucson, Ariz. Median home price: $230,000 Home price change: +3.3 percent Sales change: +3.4 percent Combined sales and price growth: +6.6 percent Many people are flocking to Tucson, which boasts warm temperatures and 286 days of sunshine each year. The sun-baked city is one of the most popular retirement destinations in the country, however, it is also drawing the younger generation, as the city is home to The University of Arizona. Additionally, large companies including Amazon, Texas Instruments and Caterpillar have recently moved to or expanded within Tucson, creating many new job opportunities. After taking a large hit during the 2008 recession, the area's housing market has bounced back stronger than ever. Sellers are hesitant to put their homes on the market as they feel there is still room for prices to grow. 4. Chattanooga, Tenn. Median home price: $189,000 Home price change: +3.6 percent Sales change: +2.0 percent Combined sales and price growth: +5.6 percent Set along the Tennessee River in the foothills of the Appalachian Mountains sits the lively city of Chattanooga with all its Southern charm. The area still prides itself on its small town roots, but also offers residents robust nightlife with a plethora of boutique bars and cozy restaurants. Tennessee has no state income tax, which draws many young professionals and businesses to the area. After Nashville's real estate market took off, investors began looking for other opportunities within Tennessee, and this led many to Chattanooga, which also ranked No. 4 on 2019's Top Markets list. 5. Columbia, S.C. Median home price: $178,000 Home price change: -0.2 percent Sales change: +5.5 percent Combined sales and price growth: +5.3 percent The historically rich city of Columbia is South Carolina's state capital, and holds tight to its small-town roots. Columbia offers residents a high quality of life while housing remains relatively affordable. The city is known for being famously hot, but the weather isn't the only thing heating up. New construction is booming in Columbia and buyers from all over the country are migrating to the area. Columbia is also home to the University of South Carolina, making it a great area for young professionals who enjoy the energy of a college campus. 6. Rochester, N.Y. Median home price: $149,000 Home price change: +0.4 percent Sales change: +4.7 percent Combined sales and price growth: +5.1 percent New York state's third-largest metro boasts a mix of history and innovation. The city is home to two major universities -- The University of Rochester and Rochester Institute of Technology -- that consistently produce top talent and entrepreneurs. It also boasts several medical facilities such as Rochester Regional Health and large employers such as Wegmans, Paychex and Xerox. Despite a healthy job market, the area still enjoys relatively low housing prices. Former home to pioneers and independent thinkers like Susan B. Anthony and Frederick Douglass, Rochester has worked hard to preserve and honor its landmarks. The city's downtown recently underwent a revitalization which is attracting a new group of younger residents who enjoy the area's breweries, art and jazz scene. 7. Colorado Springs, Colo. Median home price: $312,000 Home price change: +6.3 percent Sales change: -1.4 percent Combined sales and price growth: +4.9 percent Recently named the most desirable place to live in the country by U.S. News and World Report, Colorado Springs' residents enjoy an outstanding quality of life with low living costs and easy access to the Rocky Mountains. Colorado Springs has a strong job market and a highly educated workforce in aerospace, defense, cybersecurity and technology. Major employers include Lockheed Martin, Oracle, Hewlett Packard and Progressive Insurance. Residents enjoy the city's beautiful scenery and more than 70 art galleries. Colorado Springs has become a great alternative for those priced out of Denver. Given the close proximity, some choose to live in Colorado Springs and commute to Denver. 8. Winston-Salem, N.C. Median home price: $169,000 Home price change: +0.5 percent Sales change: +3.6 percent Combined sales and price growth: +4.1 percent The fifth largest city in North Carolina, Winston-Salem has become a cultural hub for fine arts and theater. The revitalization of its downtown has added a number of hotels, restaurants and apartment complexes that make it attractive to millennials and retirees alike. This led The New York Times and The Wall Street Journal to rank the city second in their respective lists of most livable downtowns in America. Wake Forest University and several small colleges attract a young crowd, but the city has also been named one of the best places to retire in the U.S. by CBS Moneywatch. Many of the area's residents refer to themselves as "half-backers" or people who moved from the Northeast to Florida, but decided to settle "half of the way" back to be closer to friends and family. 9. Charleston-North Charleston, S.C. Median home price: $270,000 Home price change: +1.9 percent Sales change: +1.2 percent Combined sales and price growth: +3.1 percent South Carolina's largest city is defined by cobblestone streets, horse-drawn carriages and pastel antebellum houses. The historic port city is consistently named one of the best small cities in the world by Conde Nast and the "World's Best City" by Travel + Leisure. Home to Charleston Air Force base and several universities, Charleston attracts a diverse group of residents who enjoy the state's low property tax rates. Major employers in the area include Boeing, Walmart, Bosch and Medical University of South Carolina. Residents and tourists alike enjoy the city's many restaurants and close proximity to the beach. 10. Memphis, Tenn. Median home price: $188,000 Home price change: +3.0 percent Sales change: +0.1 percent Combined sales and price growth: +3.1 percent Elvis's hometown is home to several major employers including FedEx, AutoZone, ServiceMaster, International Paper and First Horizon National, making it an attractive market for jobs and real estate. It's also a great place for millennials and good for singles looking to mingle, as more than half of the city's adult population is not married. Locals enjoy the short commute times, great music scene, culture and professional sports including the NBA's Grizzlies. The most populous city in Tennessee, Memphis is considered a hub for transportation with a bustling airport and easy access to four major freeways. The city also houses about two dozen college campuses along with tourism attractions like Beale Street, Graceland and the National Civil Rights Museum. For more information and methodology, click here. *Median home prices based on the January-August 2019 period. **Home price and sales change are year-over-year estimates through the end of 2020. About realtor.com® Realtor.com®, The Home of Home Search, offers the most MLS-listed for-sale listings among national real estate portals, and access to information, tools and professional expertise that help people move confidently through every step of their home journey. Through its Opcity platform, realtor.com® uses data science and machine learning to connect consumers with a real estate professional based on their specific buying and selling needs. Realtor.com® pioneered the world of digital real estate 20 years ago, and today is a trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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iBuyers Rapidly Snap Up Market Share Across Southern Metros, Redfin Finds
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NAR Identifies 10 Markets Expected to Outperform Over the Next Three to Five Years
WASHINGTON (December 11, 2019) -- The National Association of Realtors identified 10 markets expected to outperform over the next three to five years. In alphabetical order, the markets are: Charleston, South Carolina Charlotte, North Carolina Colorado Springs, Colorado Columbus, Ohio Dallas-Fort Worth, Texas Fort Collins, Colorado Las Vegas, Nevada Ogden, Utah Raleigh-Durham-Chapel Hill, North Carolina Tampa-St. Petersburg, Florida "Some markets are clearly positioned for exceptional longer-term performance due to their relative housing affordability combined with solid local economic expansion," said NAR's Chief Economist Lawrence Yun. "Drawing new residents from other states will also further stimulate housing demand in these markets, but this will create upward price pressures as well, especially if demand is not met by increasing supply." NAR identified the top 10 metro areas based on a myriad of factors, including domestic migration, housing affordability for new residents, consistent job growth relative to the national average, population age structure, attractiveness for retirees and home price appreciation, among other variables. "Potential buyers in these 10 markets will find conditions especially favorable to purchase a home going into the next decade," said NAR President Vince Malta, broker at Malta & Co., Inc., in San Francisco, CA. "The dream of owning a home appears even more attainable for those who move to or are currently living in these markets." Strong job growth is one factor driving up prices in these markets, with payroll employment rising about 2.5% annually in the last three years, higher than the national rate of 1.6%. In Ogden, Las Vegas, Dallas, and Raleigh, job growth rose nearly 3%. Movers flock to these markets at higher rates than the average of the 100 largest U.S. metro areas. In Colorado Springs, recent movers accounted for 21% of the total population, followed by Fort Collins at 17% and Las Vegas at 16%. These areas attract various age groups. For example, 11% of the people who moved to Tampa were 65 years and older, while 54% of recent movers in Durham were between the ages of 18 and 34. In most of these metro areas, about half of recent movers who are renting can afford to buy a home in those respective markets when compared to the nation's 100 largest metro areas. Homeownership rates in these markets are expected to increase due to the relative affordability. To view NAR's Top 10 Outperforming Markets report, visit https://www.nar.realtor/reports/top-ten-outperforming-metro-markets-report The National Association of Realtors® is America's largest trade association, representing more than 1.4 million members involved in all aspects of the residential and commercial real estate industries.
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Brian Buffini Reveals 2020 Real Estate Market Outlook
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Redfin Report: Bidding Wars Remain at 10-Year Low in November
Nationally, just 10% of Redfin homebuying offers faced competition SEATTLE, Dec. 9, 2019 -- Ten percent of offers written by Redfin agents on behalf of their homebuying customers faced a bidding war in November, down from 29% a year earlier and hovering at the 10-year low for the 5th consecutive month, according to a new report from Redfin. This rate is likely to remain low through the end of the year, and begin rising again in early 2020. San Francisco was the only market that remained somewhat competitive in November. The bidding war rate there was 30%, down from 53% a year earlier and down from 34% in October. The month-over-month decline of 3.7 points was slightly below the 2010-2018 average October-to-November decline of 4.6 points. "Almost every home for sale that is in a great location and priced competitively is still receiving multiple offers," said San Francisco Redfin agent Miriam Westberg. "One home we made an offer on last week had 25 other offers! However, homebuyers definitely feel like they can be more selective this year, so homes that don't check every single box may only get a single offer, and tend to take a longer time to sell." Competition was scarce everywhere else in the country, with no other market seeing a bidding war rate higher than 17%. The bidding war rate hit its lowest point in at least five years in November in Chicago, Houston, Portland, OR and Los Angeles. "Even though the number of homes for sale has been falling faster than we normally see this time of year, buyers just aren't feeling any sense of urgency right now," said Redfin chief economist Daryl Fairweather. "The supply and demand data still says that it's a seller's market, but homebuyers working with Redfin agents in places like Portland and Denver are feeling and acting like they're in control. Most of the homes that they are seeing are simply not worth getting into a bidding war over, so they're more than willing to wait until the new year in the hopes that more homes will hit the market." 2019 as a whole has been a welcome reprieve from the frenzied market of years prior, but with fewer new listings hitting the market and more homes selling quickly after being listed, 2020 may be shaping up to swing the pendulum back in the other direction. Houston was the least competitive market in November, with just 1.4% of offers facing a bidding war. Miami was barely above that at 1.7% and Raleigh was the third least competitive market with 2.6% of offers facing competition. Rate of Bidding Wars by Metro Area: November 2019 To read the full report, please click here. About Redfin Redfin is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 85 major metro areas across the U.S. and Canada. The company has closed more than $85 billion in home sales.
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Curious Case: A U.S. Housing Market No One Saw Coming
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Home Sellers Will Remain on the Sidelines in 2020
Realtor.com forecast predicts inventory to evaporate making it more challenging for buyers to find a home despite attractive interest rates SANTA CLARA, Calif., Dec. 4, 2019 -- At a time when millennials are reaching key life milestones, the U.S. housing market will continue to slow in 2020 as inventory reaches historic lows and economic uncertainty prompts consumers to pull back on their spending, according to the realtor.com 2020 housing forecast released today. The forecast predicts that despite some relief from new construction, moderating home prices and relatively low interest rates, first-time buyers will continue to struggle with affordability. Sellers will contend with flattening price growth and slowing activity. These trends will drive existing home sales down 1.8 percent to 5.23 million. Highlights of the realtor.com® 2020 forecast include: Home prices will flatten, increasing just 0.8 percent nationwide. Prices will decline in more than 25 percent of the 100 largest metros, including Chicago, Dallas, Las Vegas, Miami and San Francisco. Inventory shortages will prevail and could reach historic lows, especially the entry-level category. Mortgage rates will remain reasonable, averaging 3.85 percent throughout the year. Affordability will remain a key driver for buyers, benefitting mid-sized markets. Millennials – with the oldest members approaching 40 and the biggest cohort turning 30 in 2020 – will surpass 50 percent of all home purchase mortgages. With little incentive to sell, baby boomers will continue to hold onto their homes, while Gen X is more likely to upsize, freeing up some entry level inventory. "Housing remains a solid foundation for the U.S. economy going into 2020," said George Ratiu, senior economist at realtor.com®. "Although economic output is expected to soften – influenced by clouds of uncertainty in the global outlook, business investment and trade – real estate fundamentals remain entangled in a lattice of continuing demand, tight supply and disciplined financial underwriting. Accordingly, 2020 will prove to be the most challenging year for buyers, not because of what they can afford, but rather what they can find." What will 2020 be like for buyers? Buying a home in 2020 will be a mixed bag. It will offer more opportunities for some as the supply of new homes begins to offset inventory pressure that has built over the last four years, interest rates remain reasonable and home prices flatten. The broad price moderation will continue to make mid-sized markets in the Midwest and South attractive. However, the construction of new homes in 2019 was largely isolated to upper-tier of housing and that is unlikely to ease conditions for first-time homebuyers. Additionally, while qualifying for a mortgage could be easier on paper due to stabilizing prices and a still relatively low rate environment, the total number of homes available for sale will hit a record low. What will 2020 be like for sellers? Sellers in 2020 will grapple with dormant price growth and slowing activity, which will require a greater level of patience and a thoughtful approach to pricing. Entry-level home sellers can expect steady competition for their homes, which will keep prices firm. Upper-tier housing is expected to be softer as properties will likely sit on the market longer, requiring greater incentives to close deals. As the market moves toward a more balanced scenario, sellers who adjust to local market conditions can expect to benefit from continuing demand. Forecasted key 2020 housing trends Millennials expand their domination of the market – Demand from those born between 1981-1997 will reach new highs in 2020 with millennials accounting for more than 50 percent of all mortgages by the spring. Several factors are at play here. In 2020, the largest cohort of millennials – 4.8 million of them – will turn 30, a time when many purchase their first home, while the oldest members of the generation will reach 39, often a point when many look to move from the city to the suburbs for family-friendly amenities. The largest generation in history will consolidate their top spot in mortgage originations and effectively outnumber Gen X and baby boomers combined in their share of purchases. Growing economic uncertainty – Although a recession isn't likely in 2020, the economy will show signs of softening. The pullback in business spending is expected to lead to a slowdown in consumer spending. Housing remains the largest single consumer expense, making home-buying activity a major contributor to the U.S. economy and a bellwether for economic expectations. Rising uncertainty about the economic outlook will dampen consumer enthusiasm about spending, leading to a decline in sales and an increase in homeowners' tenure. Low inventory – Despite increases in new construction, next year will once again fail to bring a solution to the inventory shortage that has plagued the housing market since 2015. Inventory could reach a historic low as a steady flow of demand, especially for entry level homes, and declining seller sentiment combine to keep a lid on sales transactions. With housing prices expected to stabilize and concern over economic uncertainty, there will be little incentive for baby boomers to sell in the coming year. The younger Gen X is more likely to upsize and free up entry level homes, but not fast enough to ease inventory woes. Affordability brings secondary markets to the center stage – As buyers are priced out of suburban environments near large metropolitan areas, they will begin searching for family-friendly lifestyles in other metros or across state lines. Cities in Arizona, Nevada and Texas will continue to benefit from shoppers looking for more affordable alternatives to California. Meanwhile, home seekers from expensive Northeast markets will find the warmer options in the Carolinas, Georgia and Florida attractive. Midwest markets will become more attractive, as buyers will find the affordable housing and solid, diversified economies of Ohio, Indiana and Kansas compelling. Election will be 2020 wild card – Along with the presidential election, there will be candidates running for 35 of the 100 seats in the U.S. Senate, along with 435 seats in the House of Representatives. The 2020 elections will be closely watched by consumers and businesses for indications of potential changes. Although the outcome of the presidential election is not directly tied to the performance of the housing market, business optimism and investments, along with consumer confidence and spending do influence economic output, and can also influence housing activity. Looking at housing trends over the past three decades, the pace of sales, price and inventory are intertwined with economic performance – employment, wages, and interest rates. Realtor.com® 2020 Housing Market Forecast Sale and Price Forecast for 100 Largest Markets About realtor.com® Realtor.com®, The Home of Home Search℠, offers the most MLS-listed for-sale listings among national real estate portals, and access to information, tools and professional expertise that help people move confidently through every step of their home journey. Through its Opcity platform, realtor.com® uses data science and machine learning to connect consumers with a real estate professional based on their specific buying and selling needs. Realtor.com® pioneered the world of digital real estate 20 years ago, and today is a trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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Redfin Predicts Homebuyers Will Have Fewer Options, Bidding Wars Will Rebound in 2020
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U.S. Housing Inventory Tightens as Competition Heats Up
Interest rates are making it cheaper to buy a home, if you can find one SANTA CLARA, Calif., Oct. 31, 2019 -- The U.S. housing market showed signs of becoming increasingly competitive as inventory continued to tighten with a drop of nearly 98,000 listings, compared to this time last year, according to realtor.com's October 2019 housing trend report* released today. At the same time, the inventory shortage compounded as homes flew off the market at a faster pace than last year, making it harder for would-be buyers to enter the market despite favorable interest rates. "Owning a home continues to be a priority for buyers, as we head into the cooler months of the year. Driven by the tailwind of sub-4 percent mortgage rates, the steady demand for housing is drying market inventory at an accelerating pace," according to realtor.com® Senior Economist George Ratiu. "With dwindling supply, prices maintain their upward pressure, deepening the affordability challenges for first-time buyers." Spurred by low mortgage rates, the uptick in demand this past spring gobbled up available inventory leaving the U.S. market depleted. Nationally, inventory decreased 6.9 percent in October, an acceleration from September's 4.1 percent drop. This decline amounted to a loss of 98,000 listings, compared to a year ago. Additionally, the volume of new listings hitting the market has decreased by 3.4 percent since last year. Entry-level inventory saw the largest declines, with the number of homes priced under $200,000 dropping by 15.2 percent year-over-year. Meanwhile, mid-tier inventory priced between $200,000 and $750,000 dropped by 4.3 percent year-over-year. The inventory of the nation's most expensive homes saw a slight increase as the inventory of homes selling for more than $750,000 increased by 1.3 percent year-over-year. In the nation's 50 largest metros, inventory declined by 5.3 percent year-over-year. The metros which saw the biggest drop in inventory were San Diego-Carlsbad, Calif. (-20.1 percent), Rochester, N.Y. (-20.1 percent), and Phoenix-Mesa-Scottsdale, Ariz. (-20.0 percent). In addition to having less inventory compared to last year, homes also sold more quickly. Nationally, homes sold in 66 days in October, three days faster than last year. Raleigh, N.C. (60 days); Hartford-West Hartford-East Hartford, Conn. (64 days); and Birmingham-Hoover, Ala. (67 days) saw the largest decreases in days on market with properties spending 11, 9 and 9 fewer days on the market than last year, respectively. On the flip-side, properties in Los Angeles-Long Beach, Anaheim, Calif. (55 days); San Jose-Sunnyvale-Santa Clara, Calif. (42 days), and Las Vegas-Henderson-Paradise, Nev. (49 days); sold 14, 11, and 11 days more slowly, respectively. The U.S. median listing price continues to increase due to solid demand, growing by 4.3 percent year-over-year, to $312,000 in October. Of the 50 largest U.S. metros, 43 saw year-over-year gains in median listing prices. Birmingham-Hoover, Ala. (+15.4 percent); Los Angeles-Long Beach-Anaheim, Calif. (+13.9 percent); and Phoenix-Mesa-Scottsdale, Ariz. (+13.0 percent); posted the highest year-over-year median list price growth in October. The steepest declines in median list price were seen in Minneapolis-St. Paul-Bloomington, Minn.-Wis. (-2.9 percent), Louisville/Jefferson County, Ky.-Ind. (-2.9 percent) and Houston-The Woodlands-Sugar Land, Texas (-1.6 percent). *Editor's Note With the release of its October 2019 housing trends report, realtor.com® incorporated a new and improved methodology for capturing and reporting housing inventory trends and metrics. The new methodology uses the latest and most accurate data mapping of listing statuses to yield a cleaner and more consistent measurement of active listings at both the national and local level. The new methodology also allows realtor.com® to achieve more consistency and stability in measurements across markets and in each market over time. As a result of these changes, the data released today will not be directly comparable with previous releases and realtor.com® economics blog posts. However, future data releases, including historical data, will consistently apply the new methodology. About realtor.com® Realtor.com®, The Home of Home Search, offers the most MLS-listed for-sale listings among national real estate portals, and access to information, tools and professional expertise that help people move confidently through every step of their home journey. Through its Opcity platform, realtor.com® uses data science and machine learning to connect consumers with a real estate professional based on their specific buying and selling needs. Realtor.com® pioneered the world of digital real estate 20 years ago, and today is a trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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Migration Trends Reach Record High as 26% of Home Searchers Look to Change Metros
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CoreLogic Releases Most Recent HPI Forecast Validation Report
Analysis shows 16 metros had forecasts with less than a 1% difference from actual values CoreLogic, a leading global property information, analytics and data-enabled solutions provider, today released its latest CoreLogic HPI Forecast Validation Report that compares its 12-month CoreLogic Home Price Index (HPI) Forecast to the actual CoreLogic Home Price Index. The report compares the changes in national and key metro-level forecasts made in June 2018 to the actual HPI index, which includes data through June 2019. The CoreLogic HPI Forecast is a projection of home prices using the CoreLogic HPI and other economic variables. National values are derived from state-level forecasts by weighing indices according to the number of housing units for each state. Published every six months, the Forecast Validation Report is designed to provide transparency into CoreLogic forecasting abilities. The report showed: Sixteen large metros had forecasts with less than a 1% difference from actual values, including the Phoenix, Houston and Milwaukee metros all coming in within 0.3%. The top 10 major metros all had forecasts within 0.5% of actual values. The national forecast prediction of a 5.7% increase was within 2.4% of the 3.3% increase of the HPI for the 12-month period ending in June 2019. Long-term affordability concerns, coupled with consumer sentiment about the general economic climate along with other economic factors caused actual home prices to increase at a slower rate. The most accurate metro-level forecast was for the Phoenix-Mesa-Scottsdale, AZ area, which at 5.9% came on target of the actual HPI increase of 5.9%. The widest metro gap was in the San Jose, California metro areas, with a 13% over-estimation of actual increase. CoreLogic noted that the variance in this under-valued metro was mainly due to a concern over long-term affordability. Severe inventory shortages and rising interest rates impacted the forecasts of several metros - including the Chicago and San Francisco areas - reflecting the overall market volatility of the past 12 months. Slowing home price appreciation across many markets over the last 12 months caused much more volatility in housing markets than has been observed over the last three years. "The latest HPI Forecast Validation report continues to demonstrate why CoreLogic is the gold standard when it comes to home price forecasting," said Ann Regan, executive, product management for CoreLogic. "While our national forecast results reflect the difficulties of forecasting in an extremely volatile market, our forecasts were still able to provide accurate, region-specific forecasts for major metro areas, providing HPI clients with the reliability they need in the current market." About CoreLogic CoreLogic, the leading provider of property insights and solutions, promotes a healthy housing market and thriving communities. Through its enhanced property data solutions, services and technologies, CoreLogic enables real estate professionals, financial institutions, insurance carriers, government agencies and other housing market participants to help millions of people find, acquire and protect their homes. For more information, please visit www.corelogic.com.
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Housing Trends Foreshadow Housing Shortage Ahead
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The Top U.S. Destinations For Movers Aren't Where You Think
Medium-sized metros offering relative affordability, strong employment and large boomer populations entice the most out-of-state buyers SANTA CLARA, Calif., Aug. 21, 2019 -- The typical home buyer only moves 15 miles from their current residence, but realtor.com's Top Moving Destinations analysis shows that metros that offer relative affordability, strong employment, and large boomer populations can entice people to pull the trigger on an out-of-state home purchase. Released today, the list is made up of mostly medium-sized markets, including: Charleston, S.C.; Boise, Idaho; Honolulu; Columbia, S.C.; Fort Myers, Fla.; Portland, Maine; Sarasota, Fla.; Greenville, S.C.; Tucson, Ariz.; and Las Vegas. Metros were ranked based on which area received the most out-of-state views on realtor.com® in the second quarter of 2019. Buyers Seek Bargains Without Going Too Far "Home prices have risen for seven consecutive years, far outpacing salary growth. Although interest rates are the lowest they have been in three years, cost has become a deal breaker for many buyers, especially in pricey West Coast metros," said realtor.com® Senior Economist, George Ratiu. "But instead of giving up on the American Dream, many buyers have decided to look for a home in medium-sized metros outside their state that offer price relief, and a similar lifestyle." Seven of the top 10 moving destinations attracted non-local buyers looking at homes with median prices 3 percent to 34 percent less expensive than their home markets, in Q2 2019. However, these destinations are not necessarily cheap; in fact, they are 16 percent higher than the national median of $315,000. But when compared to home prices in their current metro areas, they feel like a steal. For instance, Boise's median listing price of $372,500 looks more attractive compared to Los Angeles's $766,800 and Salt Lake City's $434,900. Movers are also looking to stay relatively close to home by seeking out markets that are just a quick plane ride away. Charleston, the No. 1 moving destination in America, is sought out by buyers in neighboring markets of Charlotte, N.C.; Atlanta; and New York. Boise, No. 2 on the list, is especially attractive to those in Los Angeles, Salt Lake City, and Sacramento, Calif. Booming Jobs and Low Taxes Drive Up Demand The promise of high paying jobs has always been a catalyst for buyer demand, but it's especially true for those considering relocation to a new state. According to realtor.com®'s analysis, the top 10 destinations have an average unemployment rate of 3.3 percent, which is 30 basis points lower than the national average, and 38 basis points below what out-of-state buyers encounter in their home metros. Sweetening the financial deal for out-of-state buyers are the tax incentives in these destinations. Eight of the top 10 are located in states that have lower overall tax burdens compared to the national average of 8.6, including Cape Coral-Fort Myers and North Port-Sarasota, Fla. with a 6.6 percent overall burden; Boise at 7.8 percent; and the three South Carolina metros- Charleston, Greenville and Columbia at 7.6 percent, according to WalletHub. Hot Spots Retirees and Vacationers The majority of the metros on the list are sunny locales that are popular with vacationers and retirees alike, as well as snowbirds escaping the Northern winters. In fact, the average population share of those aged 65-years and older was 19.5 percent among the top 10, compared to 16.2 nationally. The top retiree markets on this list were Sarasota, Fla.; Fort Myers, Fla.; and Tucson, Ariz. whose populations aged 65 years and older accounted for 32.3 percent, 28.7 percent, and 20.0 percent of the population, respectively. "The fact that the majority of the metros on the list are hot spots for retirees signals a shift in boomer preferences from the expensive cities where they built their careers to the more easy-going feel of vacation communities," added Ratiu. "Some of them may be initiating the purchase of their retirement home as a second home, while others may be purchasing it in their post-career stage of life." Additionally, 7.9 percent of homes sold in these markets are secondary homes, compared to the national average of just 2.7 percent. Fort Myers, Fla.; North Port, Fla.; and Tucson, Ariz. had the highest share of secondary home sales among the top 10 with 17.6 percent, 16.4 percent, and 9.2 percent, respectively. For more information, please visit: https://www.realtor.com/research/q2-2019-cross-market-demand-report/ About realtor.com® Realtor.com®, The Home of Home Search℠, offers the most MLS-listed for-sale listings among national real estate portals, and access to information, tools and professional expertise that help people move confidently through every step of their home journey. Through its Opcity platform, realtor.com® uses data science and machine learning to connect consumers with a real estate professional based on their specific buying and selling needs. Realtor.com® pioneered the world of digital real estate 20 years ago, and today is a trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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Realtor.com Predicts Market Shift That Could Impact Buyers Well Into 2020
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Homes Becoming More Affordable Despite Rising Prices
National median listing price sets new record at $315,000; 74 of nation's 100 largest metros become more affordable than last year SANTA CLARA, Calif., June 6, 2019 -- Nearly three-quarters of the 100 largest U.S. metros -- including some of the priciest like San Jose, Calif., and San Francisco -- are more affordable than this time last year, despite a continued upward swing in median home prices, according to two new research reports released today by realtor.com. The trends are based on realtor.com's May 2019 monthly housing trend report and REALTORS and realtor.com Affordability Distribution Curve and Score Report, which showed increasing inventory, rising wages, and declining mortgage rates have offset slowing price increases in some local areas, making a larger share of homes affordable to buyers -- especially in the mid-to upper-tier price range. Realtor.com® May data shows the U.S. median listing price continued its upward hike, increasing 6 percent year-over-year to $315,000 -- a new record high. However, the 6 percent year-over-year increase in the median listing price was the slowest pace of growth since April 2015. National inventory grew by 3 percent, and homes typically spent 53 days on the market--one day less than last May. The most dramatic change in the U.S. housing market landscape is affordability, which realtor.com® defines as the share of for-sale homes a buyer is able to afford in their market at their income. Driven by inventory growth and lower mortgage rates, 74 out of the nation's 100 largest metros became more affordable in April 2019 compared to the previous year. This trend is a rapid acceleration from last month when only 44 metros were more affordable than the previous year. "Lower mortgage rates, higher wages and more homes for sale have helped counteract rising home prices, and ultimately, made it so that buyers are able to afford more than last year," said Danielle Hale, realtor.com®'s chief economist. "However, the boost in affordability has yet to translate into more home sales perhaps because--while the shift in trend is welcome, the current monthly savings are small and some buyers may be waiting for markets to tip further in their favor." Compared to national trends, the 10 markets with the greatest increases in affordability were San Jose, Calif.; Des Moines, Iowa; San Francisco; Lakeland, Fla.; Atlanta; Portland, Ore.; Cape Coral, Fla.; Austin, Texas; and Dallas. These markets are distinguished by rising incomes, decreasing listing prices, and a significant increase in available homes for sale. On average, incomes grew an estimated 6 percent year-over-year, compared to the 3.5 percent increase the top 100 largest metros saw. At the same time, median home listing prices fell an average of 2 percent, and inventory increased an average of 26 percent. This compared to 4.4 percent price and 6.5 percent inventory growth in the top 100 metros. Hale added, "Despite the encouraging trends, entry-level buyers will likely continue to struggle to find homes in their price range as the majority of the inventory gains continue to be in mid-to upper-tier homes in more expensive markets." In April, the number of homes priced above $750,000 -- more than double the national median -- increased 11 percent year-over-year, while the number homes priced below $200,000 decreased by 8 percent year-over-year. Similarly, increases in affordability are predominantly focused in pricier markets, especially along the West Coast. For example, San Jose, one of the nation's most expensive metros, saw the greatest boost in affordability, but it was principally driven by improvements for 80th and 90th percentile income earners. Meaning, San Jose became more affordable compared to this time last year, but the majority of affordability increases were only felt by the area's top income earners. For more information, please visit: https://www.realtor.com/research/may-2019-data Metros With Greatest Increases in Affordability About realtor.com® Realtor.com®, The Home of Home Search, offers the most MLS-listed for-sale listings among national real estate portals, and access to information, tools and professional expertise that help people move confidently through every step of their home journey. Through its Opcity platform, realtor.com® uses data science and machine learning to connect consumers with a real estate professional based on their specific buying and selling needs. Realtor.com®pioneered the world of digital real estate 20 years ago, and today is a trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.
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REALTORS and Social Media: Latest RPR Survey Reveals Trends
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Spring Home Buyers Eye Homes in Need of Renovation
Nearly 60 percent of 2019 home buyers are considering a home that needs renovations; 95 percent expect a little TLC will result in a positive return on their investment SANTA CLARA, Calif., April 15, 2019 -- Nearly 60 percent of all spring home shoppers are considering a home that needs renovating, as rising home prices and limited entry-level inventory continue to be a hurdle, according to realtor.com®'s spring home buyer survey announced today. Just over half of home buyers considering a home that needs some TLC are willing to spend more than $20,000 on the renovation, while the vast majority - 95 percent of them - are optimistic they will get a positive return on their renovation investment. Realtor.com® conducted the online survey through Toluna Research in March, consisting of 1,015 respondents planning to purchase a home in the next 12 months. "The combination of rising home prices and limited entry-level homes for sale is prompting many home shoppers to consider homes that need renovating," said Danielle Hale, realtor.com®'s chief economist. "Replete with inspiration at their fingertips - like Pinterest, Instagram, and various home renovation TV shows - some home shoppers are comfortable tackling home renovation jobs to find a home that balances their needs with their budget." According to the survey, roughly three out of five home shoppers under 55 years-old are considering a home this spring that needs renovating. Middle-aged shoppers, 35-54 years-old, were the most likely to consider a home that needs renovating, at 65 percent. Middle-aged shoppers are more likely to be current homeowners and their experience with maintaining and improving their existing home may give them the confidence to tackle renovations, especially when motivated by trying to find a home that fits their needs within their budget, Hale noted. Just 59 percent of younger home shoppers aged 18-34 years-old, who are less likely to be current owners, are considering a home in need of renovation. Less than a third of buyers older than 55 years-old would consider a home that needs renovations. Just over half of spring home shoppers considering homes in need of renovation - 51 percent - are willing to spend more than $20,000 on their home renovation. Twenty eight percent are willing to spend up to $10,000, and 22 percent are willing to spend between $10,001 and $20,000. According to realtor.com data, a major kitchen remodel will cost around $66,000, while a minor remodel will cost around $22,000. Similarly, an upscale bathroom remodel will cost you around $64,000, while a midrange bathroom remodel runs about $20,000. While home renovations can be costly, home shoppers are optimistic they will get a positive return on their investment. According to the survey, 95 percent of home shoppers considering a home that needs renovations expect a positive return of some sort on their investment. Nearly a quarter - 24 percent - expect a positive return of more than 50 percent. A kitchen upgrade was the No.1 home renovation chosen by nearly 30 percent of respondents considering homes that need to be renovated. This is not particularly surprising since both this year and last year an updated kitchen was first among the top three features sought by potential home shoppers. A kitchen upgrade was followed by a bathroom renovation at just over a quarter - 26 percent, and new wood flooring at 20 percent. Eighteen percent considered a hardwood flooring refinish, and the same share considered a complete overhaul kitchen renovation. Among spring home shoppers considering a home in need of renovation, nearly 60 percent said home renovation television has made them more optimistic regarding home renovations, according to realtor.com's survey. Whether it is seeing the project unfold in a tidy 30 minute segment, or just getting inspired by the before and after shots, home shoppers are turning to home renovations to make their dream home when finding one as-is turns out to be difficult. About realtor.com® Realtor.com®, The Home of Home Search, offers an extensive inventory of for-sale and rental listings, and access to information, tools and professional expertise that help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today is the trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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Gen Xers' Adult Children Influence Their Buying Decisions, Younger Millennials Become Buying Force According to Realtor Report
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Millennials Now Taking on More Mortgages than Any Other Generation
Millennials now represent 42 percent of all new home loans, and are buying outside major metro areas, study shows SANTA CLARA, Calif., Feb. 20, 2019 -- Realtor.com®, the Home of Home Search, today released new survey data revealing members of the millennial generation have increased their home buying purchase power and now boast the largest share of new home loans by dollar volume, larger than both Generation X and the baby boomer generation. These insights, based on a realtor.com® analysis of residential mortgage loan originations from Optimal Blue, show that while the median home buying price millennials take on is still lower than that of Generation X or baby boomers, millennials are showing interest in more affordable markets. Additionally, millennials are making lower down payments and taking on larger mortgages when compared to Gen Xers and baby boomers.   "Millennials are getting older, with better jobs and deeper pockets, allowing them to expand their collective purchase power, and hence, their footprint in the market," said Javier Vivas, director of economic research at realtor.com®. "The stereotype that millennials primarily choose to buy homes and live in large metro areas isn't the reality. Results show millennials' expansion is more heavily conditioned by affordability than in prior years, so their eyes are set on less traditional secondary markets where homes and jobs are now available and plentiful." Affordability is such a key factor for millennial home buyers that this generation is moving to places previous generations have not, like Buffalo, N.Y., the top affordable market for millennials, according to this study. Millennials Now Have More Buying Power Millennials are still primarily in the life stage that requires starter homes. Despite a lower median purchase price ($238,000) than the two generations before them, (with baby boomers and Gen Xers spending an average of $264,000 and $289,000, respectively), millennials are increasing their purchase price at a faster rate than previous generations, indicative of this generation starting to move beyond starter homes. Since early 2017, millennials have been the largest mortgage purchasers by the number of loans originated, surpassing Generation X as the leader in January 2017. As 2018 came to a close, millennials took on nearly half (45 percent) of all new mortgages, compared to 36 percent for Generation X, and 17 percent for baby boomers. In November 2018, millennials finally overtook Generation X as having the largest share of new loans by dollar volume, with a share of 42 percent in December, compared to a share of 40 percent for Generation X and 17 percent for baby boomers. This indicates millennials are willing to take on larger mortgages than any other generation to fulfill their dreams of homeownership. Millennial Home Buying is Driven by Affordability In addition to increasing their buying power and taking on larger mortgages, the data shows millennials have consistently made lower down payments than other generations since 2015. While other generations have increased their down payments in response to rising prices, millennials have not been able to increase their down payments as much as older generations. Millennial down payments averaged 8.8 percent in December 2018, compared to 11.9 percent for Generation X and 17.7 percent for the more equity-rich baby boomers. Given that the majority of millennial home buyers are searching for their first homes and do not bring equity from a previous home, it's no surprise they are putting down smaller down payments. This is likely a driver of their activity in more affordable markets, where their money goes further. Top U.S. Markets for Home Buyers Varies by Generation Within the last year, millennials have moved to affordable areas with strong job markets where they have more buying power. At the end of 2018, the median price of a mortgaged home purchased by millennials was $238,000, $26,000 less than the median price of a home mortgaged by baby boomers ($264,000) and $51,000 than Generation X ($289,000). The top five markets where millennials now generate more than 50 percent of the mortgages and their share grew by more than four percent are: Buffalo, N.Y. Pittsburgh Milwaukee Cincinnati Columbus, Ohio As members of Generation X are in their prime income-earning years, they purchased homes in strong job markets and secondary home markets, with five of the 10 markets on the list having unemployment rates higher than the national rate of 3.7 percent. The top five markets where Gen X purchased a large and/or growing share of homes are: Los Angeles Providence, R.I. Bridgeport, Conn. Jacksonville, Fla. Atlanta Many boomers are retired or rapidly approaching retirement, and therefore, showed a strong preference for buying homes in markets within primarily low-tax states or markets that are lower-cost than nearby metros, presumably to maintain wealth earned during their working years throughout their senior years. The top five markets where boomers made up a large and/or growing share of mortgaged purchases are: Knoxville, Tenn. Sacramento, Calif. Memphis, Tenn. Oklahoma City Riverside, Calif. About realtor.com® Realtor.com®, The Home of Home Search℠, offers an extensive inventory of for-sale and rental listings, and access to information, tools and professional expertise that help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today is the trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [NASDAQ: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.
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Homes.com Study: Romantic Breakups Tie with Joblessness in Triggering 'Boomerang' Behavior
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Owning a Home Could Help You Get a Date with That Special Someone
Nearly 60 percent of millennial singles indicate homeownership makes a potential mate more attractive SANTA CLARA, Calif., Feb. 7, 2019 -- Realtor.com, the Home of Home Search, today released new survey data that shows owning a home might make you more attractive to that special someone you've had your eye on, especially if they are a millennial or a woman. Singles looking to boost their chances of dating a homeowner may want to considering living in the South or in the Midwest because they are home to the biggest shares of single female and male homeowners, respectively, according to the analysis. "Attractiveness is in the eye of the beholder, and this survey data suggests that many beholders find homeownership attractive, perhaps using it as a signal for financial savviness and success," said Danielle Hale, realtor.com®'s chief economist. "Single Millennials seem to find homeownership in a potential partner especially attractive, even if only one quarter feels that it is important." The survey, which included 500 people who identified as single and was conducted in late January, found that 46 percent of all singles thought homeownership made a potential partner attractive or very attractive. Women were more likely than men to agree with this, as 48 percent of women found it made a potential partner more attractive, versus 43 percent of men. Men, however, were slightly more likely to say that it made their potential partner very attractive. The survey also asked singles how important it was for a potential partner to be a homeowner. Similar to before, women were more likely than men to agree it was either important or very important that their partner was a homeowner. But the gap between genders was wider than when asking about attractiveness of homeowners, coming in at 29 and 19 percent for women and men, respectively. As a whole, 24 percent of single respondents felt it was important for their partner to be a homeowner. Millennials show strong desire for homeownership in their partner Millennials were the most likely to feel that homeownership boosted someone's attractiveness, with nearly 60 percent of the generation agreeing with the statement. Millennials also were the generation most likely to agree that it was either important or very important for their partner to be a homeowner, as indicated by 26 percent. Single male homeownership highest in the Midwest For those looking to find a potential home-owning male partner, the Midwest is going to be the best bet. The market with the greatest share of single male homeowners is Detroit, where they make up 23.4 percent of all males. It was followed by St. Louis with 21.3 percent, Minneapolis with 21.3 percent, Cleveland with 21.2 percent, and Pittsburgh with 19.9 percent.* Detroit, the top market for single men homeowners, has a median home price of $220,000, followed by St. Louis at $198,000, Minneapolis at $353,000, Cleveland at $170,000, and Pittsburgh at $170,000. On average, homes in these markets sell in 82 days, five days faster than the national median of 87 days. These markets have a high volume of young people, and relatively low median listing prices. In markets such as Detroit and St. Louis, with median list prices of $220,000 and $198,000, respectively, the lower price point has helped boost homeownership among singles. Single female homeownership strong in the South and Midwest Single women are one of the fastest growing demographics in the housing market, according to a recent realtor.com analysis. This trend can be seen strongest in Detroit, where single women homeowners makeup 23.1 percent of all women, followed by 21.4 percent in Baltimore, 21.2 percent in Charlotte, N.C., 20.7 percent in Philadelphia and 20.7 percent in Minneapolis. Detroit, the top market for single women homeowners, has a median home price of $220,000, followed by Baltimore at $297,000, Charlotte, N.C. at $320,000, Philadelphia at $250,000, and Minneapolis at $353,000. On average, homes in these markets sell in a rapid 75 days, 12 days faster than the national median of 87 days. Strong job opportunities and growing economies that draw many young professionals to the areas are also helping keep them in these markets as homeowners. Affordable home prices have also helped singles achieve homeownership in these markets. *Homeownership data by gender and relationship status sourced from IPUMS-USA, University of Minnesota, www.ipums.org. Calculations based on ownership among household heads aged 18-54. About realtor.com® Realtor.com®, The Home of Home Search℠, offers an extensive inventory of for-sale and rental listings, and access to information, tools and professional expertise that help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today is the trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.
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Migration Trend Reaches a Record High as 1 in 4 People Searching for a Home Looks to Change Metros
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Generation Z Needs to Start Saving $304 a Month Now to Buy a Home By Age 30
Location will be deciding factor in Generation Z's homeownership success; Midwest and South offer more affordable options SANTA CLARA, Calif., Jan. 31, 2019 -- Nearly 80 percent of Generation Z wants to own a home before age 30, and a new analysis released today by realtor.com®, The Home of Home Search℠, shows they will need to save $304 every month for the next 12 years to buy with a 10 percent down payment plus closing costs on a median priced home. According to the analysis, the median priced home in the U.S. is projected to cost $386,310 in 2031, when today's 18-year-old members of Generation Z turn 30. The analysis, which includes a 13-year forecast for median home prices in top 100 metros and different down payment savings plans, projects Generation Z will need to save the most to purchase a home in San Jose, Calif. where they will need to save $1,962 per month. The next most expensive locale is San Francisco ($1,439/mo.) followed by Los Angeles ($979/mo.), Honolulu ($946/mo.), and Oxnard, Calif. ($877/mo.). According to realtor.com®'s analysis of Optimal Blue mortgage data, in 2018 the typical under-30 home buyer used a seven percent down payment to successfully complete their home purchase. On average, in the top 10 most expensive metros, members of Generation Z will need to save an average of $948 a month, starting on their 18th birthday, to afford a 10 percent down payment and typical closing costs by the time they turn 30 years old. The median priced home in 2019 is expected to cost $265,000, but over the course of the next 12 years, the price is expected to increase nearly 50 percent, specifically another 46 percent to $386,310. This assumes prices grow at a very modest 3.2 percent per year over the next 12 years. "Choosing to live in one of the U.S.'s larger and more expensive metros, especially on the West Coast, is going to make homeownership a difficult task, but that doesn't mean that Gen Z should give up on their dreams," said Danielle Hale, realtor.com®'s chief economist. "The most important thing they can do is start saving as much as possible early on and let compound interest do the heavy lifting for them. They may also want to consider more affordable areas or different down payment amounts. Some widely available programs allow down payments as low as 3 percent, but a lower down payment can mean higher ongoing monthly costs. As with most decisions, there are pros and cons and a buyer needs to think these through to determine what's best for them." Midwest and South offer opportunities for an easier savings plan While the analysis reveals potentially daunting West Coast future home prices and monthly savings amounts, Generation Z can look to the Midwest and South for more affordable housing options. Youngstown, Ohio, topped the list of the most affordable metros, where Generation Z would only have to save $108 per month. It was followed by McAllen, Texas ($111/mo.), Toledo, Ohio ($141/mo.), Wichita, Kan. ($154/mo.), and Little Rock, Ark. ($156/mo.). With an average median home price of $191,381 in 2031 for the top 10 most affordable metros, an 18-year-old member of Generation Z will need to save an average of $150 a month, starting on their 18th birthday, to afford a 10 percent down payment by the time they turn 30. That comes out to saving $798 a month less than the average monthly saving required for the top 10 most expensive metros. 20 percent down payments paint a different picture While 10 percent down or less is far more common among first-time and younger home buyers, some members of Generation Z may want to use a 20 percent down payment to qualify for a lower mortgage rate and have a much lower monthly payment, but that might not be feasible in the nation's most expensive metros. On average, for the 10 most expensive metros in the U.S., Generation Z will need to save $1,645 a month for a 20 percent down payment and closing costs. That is $697 more every month than if they are aiming to put 10 percent down. While 20 percent has historically been the benchmark, this isn't true for first time homebuyers, and Generation Z should consider varying levels of down payments when planning to purchase a home, especially in higher cost metros in the U.S. Methodology: This analysis assumed an 18-year-old member of Generation Z started saving on his or her birthday, contributing the exact amount every month into a savings account with a fixed three percent annual return, compounded monthly. They will make their home purchase in 2031 on their 30th birthday, after making exactly 144 deposits over exactly 12 years. The calculated savings amount required includes money for a downpayment and typical closing costs of about 3.6 percent for first-time home buyers. Forecast median home price data comes from Moody's Analytics (economy.com). About realtor.com® Realtor.com®, The Home of Home Search, offers an extensive inventory of for-sale and rental listings, and access to information, tools and professional expertise that help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today is the trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [NASDAQ: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.
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Average U.S. Home Seller Profits at 12-Year High of $61,000 in 2018
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Number of Homes for Sale Is Up, But Fewer Homes Are Affordable to Middle Class Buyers
Affordability Keeps Many Homes Out of Reach for the Average Homebuyer, Even As Inventory Rises SEATTLE, Jan. 23, 2019 -- Although the supply of homes for sale is up in many markets, both the number and share of homes that are affordable to a typical household has decreased from a year ago, according to a new report from Redfin, the next-generation real estate brokerage. The report considers all homes that were active on the market at any point in 2018 and 2017 and calculates the share of homes in each metro area that were affordable during each year to a household making the median income in that metro area. Just 14 percent of homes that were on the market in 2018 in the San Jose metro area were affordable on the median household income in the area of $117,000. This is a big drop from 2017, when 26 percent of homes that were for sale were affordable. In Los Angeles, 16 percent of homes for sale were affordable in 2018, down from 20 percent in 2017. In Seattle the share of affordable homes for sale dropped from 58 percent in 2017 to 46 percent in 2018. Home price gains and interest rate increases through 2018 combined to considerably reduce home affordability. Although the number of homes for sale is increasing, the number of affordable homes on the market has decreased in most metro areas. "Homeownership is increasingly out of reach for the typical American," said Redfin chief economist Daryl Fairweather. "Over the last few years builders have focused on luxury homes, and there hasn't been enough construction of affordable starter homes." In many metro areas, even as the number of homes for sale has increased, the number of affordable homes for sale has shrunk over the past year. In the San Diego area, there were 10 percent more homes for sale during 2018 than 2017, but the number of affordable homes for sale fell 16 percent. In the Seattle metro, there were 4 percent more homes for sale, but the number of affordable homes for sale fell 17 percent. Although the share of homes for sale that were affordable on a median income fell from 2017 to 2018 in all 49 of the metro areas we analyzed, there were a few metro areas where the number of affordable homes for sale increased, including Hartford, CT (+19%), Jacksonville, FL (+9%) and Nashville, TN (+4%). Homebuyers looking for affordable options still have plenty of choices in metro areas like St. Louis (84%), Minneapolis (82%) and Pittsburgh (82%). Strong growth in jobs and wages may also help buyers make up some lost ground as well. "We expect builders to shift their attention to more affordable homes during 2019," added Fairweather, "which along with rezoning efforts by local governments should reduce this pressure to some degree over time." To read the full report, including a table of the number and share of affordable homes for sale in each major metro area, please click here. About Redfin Redfin is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 85 major metro areas across the U.S. The company has closed more than $60 billion in home sales.
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Redfin Ranks the 10 Hottest Affordable Neighborhoods of 2019
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Homeownership Part of American Dream; Housing Costs Deterrent for Non-Owners
WASHINGTON (January 14, 2019) – Homeowners and non-homeowners both strongly consider homeownership part of the American Dream. That is according to new consumer survey data from the National Association of Realtors®, which revealed that among those polled, approximately 75 percent of non-homeowners believe homeownership is part of their American Dream, while nine in 10 current homeowners said the same. NAR's Aspiring Home Buyers Profile analyzed 2018 quarterly consumer insights from its Housing Opportunities and Market Experience (HOME) survey to capture the housing expectations and sentiments of non-homeowners – both renters and those living with a family member. When non-homeowners were asked for the chief reason why they currently do not own a home, most respondents said it was because they were currently unable to afford a mortgage. Over the last quarter of 2018, 43 percent of non-owners said they did not own a home because they were not in a position to purchase, which was down from the third quarter of 2018, when 49 percent of non-homeowners answered the same. Also in the 4th quarter, 33 percent of non-homeowners said they do not own because current life circumstances are not suitable for ownership, while 16 percent said they need the flexibility of renting. In addition, the survey looked at the main reason why non-homeowners would buy a home in the future. Throughout 2018, 28 to 31 percent of non-owners each quarter said an improvement in their financial situation would be the top reason that would encourage them to buy a home in the future. In each quarter, 26 to 30 percent of non-owners said a change in lifestyle – such as getting married, starting a family or retiring – would be the primary reason they would make a future home purchase. Lawrence Yun, NAR chief economist, says unaffordable housing has caused a number of potential buyers to hold off on purchasing a new home. "The lack of affordable and moderately priced homes has forced non-homeowners to delay achieving that part of the American Dream. However, as the survey confirms, significant lifestyle changes like marriage or starting a family often spur non-owners to pursue home-ownership." For this year's survey, homeowners and non-owners were also asked about adult family or friends moving into their homes, the span of time this individual(s) lived within the household, and if they thought about moving to a new home because of the change. According to the survey, 11 percent of homeowners had an adult child move into their residence, while 5 percent of non-owners had an adult move into their home. Of those who had someone move into their home, 44 percent said that the individual intended to live with them for over one year or to stay permanently. Forty-four percent of non-owners reported that the individual planned on living with them for between six months to one year. Eighty-eight percent of those surveyed who had someone move into their home reported that their living situation remained acceptable and therefore did not warrant consideration of moving into a different home. Twelve percent said they did consider moving or ultimately did move due to their home situation changing. "While home sales were slightly down in 2018, there is still a sizable pent-up housing demand. Economic growth, interest rates, and the supply of moderately priced-homes will dictate how well the real estate industry will do this year," said Yun." About NAR's HOME survey In each quarter of 2018, a sample of U.S. households was surveyed via random-digit dial, including half via cell phones and the other half via landlines. The survey was conducted by established survey research firm, TechnoMetrica Market Intelligence. A total of 8,140 household responses are represented. The National Association of Realtors® is America's largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.
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Renting a Home More Affordable than Buying in 59 Percent of U.S. Housing Markets
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Women, Millennials, and Hispanics Will Shape the Future of Housing
Ten of the top 20 and seven of the top 10 fastest-growing buyer first names are predominantly millennial female names SANTA CLARA, Calif., Jan. 9, 2019 -- The future of real estate will be significantly influenced by women, millennials and Hispanics, according to realtor.com®'s analysis of first names on 2018 home sales deeds. Single women are one of the fastest-growing demographics in the housing market, according to the data. Although older Baby Boomer and Silent Generation women are leading the charge, the increase in deeds with female names is particularly visible when comparing genders within the millennial generation. Looking solely at names with a peak year between 1981 and 1997, millennial female names are outpacing millennial male names, with home sales with female names beating male name home sales by 1.5 percent (6.9 percent versus 4.4 percent on average year-over-year, respectively). Seven of the top 10 fastest growing buyer names are predominately millennial female names, and all of them peak in the 1980s and 1990s.   Overall, Hannah, Austin, Alexis, Logan, and Taylor -- of which three are predominantly female names -- were the top five fastest growing first names on home sales deeds in 2018, with their frequency seeing an average increase of 22 percent from 2017. While Michael, John, David, James, and Robert were still the top five first names on sale deeds by sheer volume, these names saw a 3 to 5 percent decline over 2017. "First names associated with women -- especially millennial women -- saw a significantly faster level of home sales growth in 2018, giving us a sneak peek of homeownership trends in 2019," said Javier Vivas, director of economics research at realtor.com®. "Hispanics and millennials names overall also saw a surge in home purchases last year. If these buyers can continue to break through the affordability barrier, they are likely to make up a larger share of owners than ever before and dominate the market for years to come." Millennials are NOT the rent generation In 2018, home sales with millennial names increased 5.3 percent, followed by Gen X names at 0.8 percent. Names of Boomers (born 1946 to 1964) and the Silent Generation (born before 1945) fell 2 percent and 3.5 percent, respectively. Geographically, millennial buyer names are particularly overrepresented in Kansas, Indiana, Louisiana, Missouri, and Utah - states where housing affordability remains above national levels - confirming that jobs and availability of entry level homes act as magnets for young buyers. The rise of Hispanic influence Deed data also shows a growth in Hispanic names. In 2018, home sales associated with traditionally Hispanic names and partially Hispanic names increased 4.1 percent and 3.7 percent, respectively year-over-year. While sales with non-Hispanic names remained virtually flat at 0.1 percent year-over-year. Notably, 26 of the top 100 fastest-growing names are traditionally of Hispanic origin. Within this category, Hispanic buyer names skew slightly older than their non-Hispanic counterparts, with a median birth year of 1979 and 1982 respectively. Geographically, Hispanic buyer names are naturally concentrated in the South and Southwest. California, Texas, Nevada, New Mexico, and Arizona are among the top states, unsurprising given their proximity to Central America. On the East Coast, sales to buyers with Hispanic names are overrepresented in Florida, Illinois, and New Jersey, where demand for homes from domestic and international buyers of South American and Caribbean origin tends to be concentrated. About realtor.com® Realtor.com®, The Home of Home Search℠, offers an extensive inventory of for-sale and rental listings, and access to information, tools and professional expertise that help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today is the trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [NASDAQ: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.
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Potential Home Buyers Lose Interest as Showing Activity Drops Broadly with Consecutive Monthly Declines; Trend Likely to Continue into 2019
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Redfin Predicts 2019 Housing Market Will Be the Coolest in Years
Among seven predictions for the new year, Redfin forecasts that the homeownership rate will rise SEATTLE, Dec. 19, 2018 -- Redfin today released its seven predictions for the housing market in 2019. "We predict that the housing market will continue to cool into the first half of 2019," said Redfin chief economist Daryl Fairweather, who authored today's report. "Inventory will rise back up to 2017 levels, and price growth, while likely still positive, will be the lowest we've seen since 2014 or possibly even 2011. Investors and house-flippers will back away from the cooling market, and real estate companies that buy homes from consumers to quickly sell at a profit (including our own RedfinNow) will face their first serious test. Tech companies and local governments will continue to go head to head on local housing issues." Redfin's Predictions for 2019: The housing market will continue to cool. Redfin's forecasts have price growth settling around 3 percent in the first half of the new year, down from 7 percent in the first half of 2018, but there is a real chance prices will fall below 2018 levels. A still-growing economy and increased access to credit will support more homebuyer demand, but higher interest rates will make home-buying more expensive, so it's hard to say whether home sales will stay down or rebound next year. The homeownership rate will continue to rise. Homebuyers will enjoy more inventory and less competition from speculators and house-flippers, which will lead to more people enjoying the benefits of homeownership. Homeownership has been consistently growing from its post-recession valley of 63 percent in 2016 to above 64 percent this year. We predict the homeownership rate will grow more rapidly in 2019. It will cost more to borrow, but more people will have access to credit for home-buying. A mortgage-rate increase to 5.5 percent by the end of 2019 from the sub-5 percent level where rates have been hovering in recent months would mean about a $100 increase in monthly mortgage payments on a $300,000 home. Lenders will also feel the effects of rising rates, which will increase their costs of lending and dampen demand for their services. This will motivate lenders to expand their customer base to low-income borrowers and first-time homebuyers. But of course, lenders will charge more for these loans--both to cover the risk of lending to borrowers with less-than-perfect credit and to cover their own costs of borrowing. A cooling housing market will dampen economic growth only slightly. In 2019, the economy will most likely grow, but a cooler housing market will contribute less to the overall economy. Even if residential investment (which includes money spent on construction, renovations, and real estate commissions) were to fall by 10 percent, total economic activity would be impacted by 1 to 2 percent. That isn't enough to cause a recession as long as the rest of the economy keeps growing. Fewer homes will be built, but more builders will focus on starter homes. In 2019, homebuilders will be more cautious about building during a cooling market and focus on building starter homes that are easier to sell than luxury homes. The per-unit value of single-family residential building permits has already flattened, and we predict per-unit values of building permits will decline in 2019. Another factor in 2019 will be low unemployment, which will finally cause wages to rise for low-income workers. This will impact both the supply of and demand for housing. On the supply side, higher labor costs will limit the number of homes built. Meanwhile, higher wages will be a boon to demand for starter-homes among working-class Americans. Institutional buying will face its first serious test. If home-buying demand falters due to higher interest rates and stock-market volatility, institutional buyers who made money from nearly every sale in a rising market with low interest rates could start to face losses, or may demonstrate more discipline than other housing investors. If i-buying works in a bear market as well as it has in a bull market, instant offers could become a major, permanent sector within the real estate economy. If it doesn't, a lot of money is going to sink into the sand. Tech and local government will go head-to-head on housing. Cities have been struggling with the double-edged sword of tech-company-driven prosperity and inequality. Growing cities will have to start building more housing now if they don't want to face the affordability and homelessness problems that established tech hubs like Seattle and San Francisco are currently facing. To read the full report, complete with data, charts and additional insights, please click here. The predictions above and in the linked blog post reflect the beliefs of Redfin's economics team about the overall housing market. They are not intended as historical information or future guidance to the investment community and shouldn't be relied on for those purposes. About Redfin Redfin is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $60 billion in home sales.
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U.S. Home Affordability Drops to More Than 10-Year Low in Q4 2018
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Leading iBuyers Selling Nearly One in 10 Homes to Institutional Investors According to New ATTOM Data Solutions Analysis
Top Three Buying Entities Related to Companies Purchasing Single Family Homes as Rentals IRVINE, Calif. — Nov. 29, 2018 — ATTOM Data Solutions, curator of the nation's premier property database, today released an analysis that shows that nearly one in 10 homes sold so far in 2018 by the nation's two leading iBuyers — Opendoor and Offerpad — were purchased by institutional investor entities buying at least 10 homes. According to the analysis, a total of 743 homes sold by the two iBuyers — companies that buy directly from homeowners via all-cash offers — were purchased by institutional investors so far in 2018, representing 9.6 percent of all sales by those two iBuyers combined. That is up from 293 institutional investor purchases representing 6.6 percent of the iBuyer sales in 2017, and 65 institutional investor purchases representing 3.9 percent of the iBuyer sales in 2016. "Tight inventory is a common challenge facing both individual and institutional single family rental investors across the country," said Daren Blomquist, senior vice president with ATTOM Data Solutions. "Meanwhile the appetite for more SFR inventory continues to grow as a new wave of institutional capital builds. Industry innovators are rising to meet this challenge through a variety of inventory-inducing channels, including off-market, build-to-rent, and iBuyer initiatives." Top Three Buying Entities The top three institutional buying entities — CERBERUS SFR HOLDINGS LP, CSH PROPERTY ONE LLC, and TAH HOLDING LP — all appear to be related to companies purchasing single family homes as rentals. These institutional investors may be turning to iBuyers as a source of inventory even as other sources of inventory such as foreclosures have largely dried up in recent years. Institutional investor purchases represented just 2.3 percent of all U.S. home sales so far in 2018, down from 2.9 percent in 2017 and down from a peak of 7.4 percent in 2012, according to the ATTOM analysis. "There are a lot of buyers, both big and small, looking to grow their SFR portfolios and inventory is very tight. This is leading to creative ways to find new product — from build-to-rent programs, off-market inventory programs and iBuyer initiatives," said Kevin Ortner, CEO with Renters Warehouse, a company that manages more than 22,000 SFR properties in 42 states. "There are several firms positioning themselves to be able to help bring supply to meet the demands of investors, and I expect that will continue to grow. I'm also seeing investment in technology and data across the space allowing greater scale, efficiencies and insights." "A properly priced rental home today, there is almost limitless demand for it," said Gary Beasley, CEO and co-founder with Roofstock, an online marketplace for SFR properties that itself is working on ways to create SFR inventory for both retail buyers and institutional buyers. "We have to get creative about how to attract this inventory, and if it isn't available to create it." Methodology ATTOM Data Solutions analyzed public record sales deed data from its nationwide property data warehouse for sales by entities associated with Opendoor and Offerpad, broken down by purchase entity. Purchase entities that bought at least 10 homes from the two iBuyers combined were considered institutional investors. For overall home sales, ATTOM considered any entity buying 10 or more properties in a calendar year as an institutional buyer. About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, APIs, market trends, marketing lists, match & append and more.
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Tougher Road Ahead for Home Buyers and Sellers in 2019
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Redfin Report: These 8 Inland Housing Markets are Heating Up as the Coasts Cool
These affordable metro areas are seeing a growing share of homes selling quickly and for above-list price SEATTLE, Nov. 9, 2018 -- While expensive coastal markets like Seattle and San Jose are cooling off, some smaller, affordable inland metro areas are heating up, according to Redfin, the next-generation real estate brokerage. Wilmington, Delaware, Philadelphia and Atlanta lead the handful of metro areas where supply is shrinking, leaving more homes to go under contract within days, and for above-list price than a year ago. To identify the markets that are still heating up, Redfin ranked the top 25 metro areas with populations of at least 500,000 people according to three indicators of a competitive seller's market, based on data for the four weeks ending October 14, compared with the same period a year earlier: Declines in the number of homes for sale (inventory) Increases in the share of homes going under contract within two weeks of their market debut Increases in the share of homes selling for more than their list price Housing markets that are heating up the most Contrast the numbers above with markets like Seattle, San Jose and Portland, where inventory has been increasing by double digits, and the shares of homes going under contract quickly is shrinking. Homes in the metro areas that are heating up are also considerably less expensive than not only the hot coastal markets, but also than the national median price of about $300,000. Plus, except for Atlanta and Philadelphia, all of the heating-up metro areas are smaller, with populations under 2 million. Atlanta is also a top migration destination, moving up from #5 among long-distance Redfin.com user searches in the third quarter of 2017 to #2 in the third quarter this year. "Competition in Wilmington has become fierce and often buyers have to offer over asking and compete against three to six other offers," said local Redfin agent Claryssa McEnany. "I'm working with several buyers moving to the area from New Jersey who have expressed that they want to escape the higher property taxes that they can no longer fully deduct." Markets like Wilmington are still deep in seller's market territory, "Too many sellers are staying put!" according to McEnany. "Buyers are motivated and want to move now but there just aren't enough homes available." In the face of the inventory shortage that has been worsening since early 2016, some of McEnany's clients are choosing to expand their search area or make more compromises to get into a home. It's likely that even if the real estate slowdown becomes more widespread, these inexpensive markets will continue to show strength thanks to their big advantage in affordability. To read the full report, complete with additional data, please click here. About Redfin Redfin is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $60 billion in home sales.
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Affordability, Disruption and Rising Interest Rates Lead Top 10 Issues Facing Real Estate
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2019 Forecast: Existing-Home Sales to Stabilize and Price Growth to Continue
BOSTON (November 2, 2017) – Consumers should expect home sales to flatten and home prices to continue to increase, though at a slower pace, according to a residential housing and economic forecast session at NAR's 2018 REALTORS® Conference & Expo. As Lawrence Yun, chief economist at the National Association of Realtors®, presented his 2019 housing and economic forecast, he was joined onstage by Lisa Sturtevant, President of Lisa Sturtevant & Associates, LLC, who discussed the importance of affordable housing in the U.S. Much of Yun's presentation focused on recent declines in home sales, but in the context of long-term trends to illustrate the housing market's actual performance. "Ninety percent of markets are experiencing price gains while very few are experiencing consistent price declines," said Yun. "2017 was the best year for home sales in ten years, and 2018 is only down 1.5 percent year to date. Statistically, it is a mild twinge in the data and a very mild adjustment compared to the long-term growth we've been experiencing over the past few years." As to the possibility that we are currently experiencing a small bubble, Yun was quick to shut down any speculation. "The current market conditions are fundamentally different than what we were experiencing before the recession 10 years ago," said Yun. "Most states are reporting stable or strong market conditions, housing starts are under-producing instead of over-producing and we are seeing historically low foreclosure levels, indicating that people are living within their means and not purchasing homes they cannot afford. This is a stronger, more stable market compared to the loosely regulated market leading up to the bust." Housing affordability was also discussed by both panelists. While the U.S. is experiencing historically normal levels of affordability, potential buyers may be staying out of the market because of perceived problems with affordability. "NAR research shows that a lower percentage of consumers think that now is a good time to buy, while more are indicating that it is a good time to sell," said Yun. "Problems could arise if the market is flooded with too many sellers and not enough buyers. Fortunately, that does not appear to be the case, as indicated by months' supply of inventory at below five months." Sturtevant discussed the importance of homeownership on a social level - how homeowners tend to be in better physical and mental health and have greater opportunity for economic self-sufficiency. Additionally, communities with more homeowners tend to be more economically prosperous and better able to attract and retain workers. "I am a researcher, not an advocate; but the results of my research have compelled me to see the importance of affordable, stable housing, and the positive economic impact to local communities," said Sturtevant. Looking to next year, Yun shared his forecast for home sales and median home prices. "The forecast for home sales will be very boring - meaning stable," said Yun. With a few months of data remaining in 2018, Yun estimates that existing-home sales will finish at a pace of 5.345 million—a decrease from 2017 (5.51 million). In 2019, sales are forecasted to increase to 5.4 million, a 1 percent increase. The national median existing-home price is expected to rise to around $266,800 in 2019 (up 3.1 percent from 2018 this year and $274,000 in 2020. "Home price appreciation will slow down - the days of easy price gains are coming to an end - but prices will continue to rise." All of these forecasts, however, are dependent on higher levels of home production. "All indications are that we have a housing shortage. If you look at population growth and job growth, it is clear that we are not producing enough houses. This is often a local issue, not a national one, so NAR has created a website where local associations and Realtors® can go for information on how to advocate for increased supply in their communities," Said Yun. Commenting on the overall health of the U.S. economy, Yun noted that the economy is "good." He noted that we have low unemployment, record high job openings, historically low jobless claims, job additions for eight straight years and wages beginning to increase. "This type of activity in the economy should support the housing market, even as interest rates rise," said Yun. The National Association of Realtors® is America's largest trade association, representing 1.3 million members involved in all aspects of the residential and commercial real estate industries.
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Zealous Gen Z: Saving Early to Be Homeowners by Age 25
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Automated Cars, Micro-Mobility to Impact the Future of Transportation, Say Realtors
BOSTON (November 4, 2018) — Industry experts and researchers discussed the future of mobility and its impact on real estate during the Emerging Business & Technology Forum at the 2018 REALTORS® Conference & Expo in Boston. "It is important to think not just about what is here now, but looking at what is coming five to 10 years from now," said Chad Curry, director of Center for REALTORS® Technology at the National Association of Realtors®. "Many things are coming that are going to reshape our industry and reshape the land that we hold so dear." Automobiles have shaped the way we build cities, roads and houses. The rise of the automobile led to the rise of suburbs and a commuting population. However, by the year 2030 it is predicted 70 percent of the world's population will live in urban environments. But what does that mean for cars and how we move people going forward? "In the 1990's, 95 percent of 16 year-olds had a driver's license. Today, that number is just 76 percent," said Curry. "Today's youth are already finding new ways to move around that don't involve a privately owned vehicle." While ride-sharing services like Uber and Lyft are responsible for a large percentage of alternative transport, micro-mobility, such as bike and scooter shares, are beginning to rise in popularity. LimeBike, a scooter and bike share company, has been valued at $1 billion and is currently deployed in 65 cities. The increase in micro-mobility has encouraged cities to create multimodal roads that accommodate cars, buses, bikes, scooters and pedestrians. Panelists also discussed the rise of driverless cars. Legislation regarding driverless cars is currently being crafted or debated in a majority of U.S. states, meaning this new technology could soon have a genuine impact on our nation's mobility. "Automated cars won't simply help alleviate traffic, but will also make roads safer," said Benjamin Lewis, a panelist and innovation manager and future of mobility expert for Liberty Mutual Insurance. "The overwhelming number of crashes, 94 percent, are attributed to human error. A reduction in human error will lead to fewer accidents, deaths and injuries. Drunk, distracted and tired driving will be a thing of the past." Cars are currently designed with one person in mind – the driver. The driver needs to be able to see the road ahead and behind them, they need to be able to steer and reach the break and gas pedals. However, that design could change with the driverless revolution. "Cars could be designed to be used as mass transit in the morning and moving lounges in the evening," said Curry. "They could be turned into small mobile offices – are we looking at the real estate office of the future?" The National Association of Realtors® is America's largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.
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The Longest Housing Inventory Decline in History Comes to an End
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20% of Recent Homebuyers Made an Offer Sight-Unseen, Down from 35% Late Last Year
Survey Findings Suggest that Buyers Are Under Less Pressure to Make Hasty Bids as Competition Eases SEATTLE, Oct. 15, 2018 -- One in five recent homebuyers said they made an offer sight-unseen, according to Redfin, the next-generation real estate brokerage. This statistic was discovered from a Redfin-commissioned survey in May of 1,463 people across 14 major markets who had bought a home in the last year. That's down from 35 percent in a similar survey conducted in November, when the share of buyers making sight-unseen offers had been growing consistently for at least a year and a half. When Redfin analysts first noticed in May that the prevalence of sight-unseen offers had returned to 2016 levels, they struggled to pinpoint a clear explanation. At that time, the market was breaking records for price growth, competition and home-selling speeds. Buyers felt pressured to move incredibly quickly to secure the most desirable homes, which were off the market in a matter of days. Making an offer without seeing the home first in person had become an advantageous strategy for buyers in inventory-strapped markets like Denver or Seattle. In July, Redfin first reported that the market was beginning to shift toward buyers' favor, with rising inventory and slowing price growth. Buyers had become more choosy about what homes to move on and were behaving less hasty in making offers. And now, buyers are facing fewer multiple-offer situations, which allows buyers even more time to visit homes in person before making an offer. Redfin analysts now believe that the declining prevalence of sight-unseen offers was likely an early indicator of this changing market. Redfin intends to watch this trend closely and plans to survey homebuyers again this fall to see if the prevalence of sight-unseen offers continues to change. "Now that most homes are staying on the market for longer than a week, there just isn't as much pressure for buyers to make offers so hastily," said Jessie Culbert, a Redfin agent in Seattle. "That's a big change from earlier this year when sellers set offer review deadlines, and they were strict! This meant that whether or not you had time to physically step inside the home, you had to get your offer in on time in order to be considered. Otherwise you would miss out entirely on the opportunity to compete for it." It's also worth pointing out that one in five homebuyers making offers sight unseen is still a lot, and we believe this is a reflection of the fact that technology has made it easier to learn about a home from anywhere with internet access. For example, using Redfin 3D Walkthrough, a buyer can tour a home virtually on their computer or smartphone, seeing the walls, appliances and nooks and crannies from every angle. Additionally, Redfin agents use tools like FaceTime, Skype or YouTube to show homes to customers who aren't able to join them for an in-person tour. This technology is especially useful to homebuyers moving to a new city, who would have to drive for hours or take a flight to see a home. Over time, as technologies continue to advance and people become more comfortable relying on them to make big financial decisions, we expect sight-unseen offers to become more commonplace, even throughout fluctuations in supply and demand. To read the full report, complete with historical survey and methodology, click here. About Redfin Redfin is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $60 billion in home sales.
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National Housing Inventory Crisis Reaches Inflection Point
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Millennial Homebuyers Are Driving Realtor.com's 2018 Hottest ZIP Codes in America Report
Kentwood, Mich. leads the list for the first time, while Rochester, N.Y. and Worthington, Ohio get a bump in demand SANTA CLARA, Calif., Sept. 26, 2018 -- Realtor.com®, the Home of Home Search℠, today announced its fourth annual list of the Hottest ZIP Codes in America. The new list shows high-income millennials are helping to drive a nearly 10 percent increase in how fast homes are sold in the most popular areas of the country, which spans emerging suburban areas near Silicon Valley, throughout the Midwest, and on the East Coast. As millennials get older, move out on their own and buy homes, they are driving demand for homes in smaller, more suburban locales. Some of the new areas making this year's list include: No 1. Kentwood, Mich. (49508); No. 5 Peabody, Mass. (01960); No. 6 Boise, Idaho (83704); No. 9 Rochester, N.Y. (14624); and No. 10 Upper Montclair, N.J. (07043). Back by popular demand, the following areas are among the ZIP codes returning to the list this year: Colorado Springs, Colo. (80922) moved to No. 2 from No. 7 in 2017; Watauga, Texas (76148) moved to No. 3 from No. 1 in 2017 and 2016; Castro Valley, Calif. (94546) moved to No. 4 from No. 6 in 2017; Worthington, Ohio (43085) moved to No. 7 from No. 2 in 2015; and Overland Park, Kan. (66210) was ranked No. 8 this year and in 2017. "When it comes to choosing a home of their own, millennials are looking for opportunity and they're finding it in affordable suburbs," said Danielle Hale, chief economist for realtor.com®. "These hot housing markets are attracting the attention of hard-working, high-earning 25-to-34-year-olds who are drawn by their relative affordability, strong local economies, and outdoor and cultural amenities." Realtor.com®'s 2018 Top 10 Hottest ZIP Codes Realtor.com® analyzed 32,000 ZIP codes based on the time it takes properties to sell and how frequently homes are viewed in each ZIP code on realtor.com®. One ZIP code was included per metro area. How hot are these ZIP codes? Homes in this year's top 10 hottest markets sell in an average of 20 days, 46 days faster than the rest of the country, 25 days faster than their respective metro areas, and 18 days faster than their respective counties. Realtor.com® users view homes in these markets four times more often than homes in the rest of the country, 2.3 times more often than their respective metro areas, and 1.9 times more often than their respective counties. The average views per property for these 10 ZIPs on realtor.com® are up 14 percent compared to last year. In addition, home list prices in nine of the 10 markets are appreciating on a yearly basis, and in some cases they're doing so rapidly. Five of the 10 ZIPs saw double-digit growth in asking prices — faster than the national rate of 8.4 percent. What's making these ZIP codes hot this year?: Homes are relatively affordable. The median price for a home in these markets is $358,000, and top markets are almost all more affordable than their surrounding area -- only 43085 (Worthington, Ohio) and 07043 (Upper Montclair, N.J.) are exceptions. In addition, five of the top 10 ZIPs have median listing prices that are lower than the U.S. overall and eight have prices that are lower than their respective metro and county areas. Residents are employed at higher rates and tend to earn more. Household incomes in eight of the top 10 ZIPs are greater than the national median of $61,000. In total, the average household income in the top 10 ZIPs is $83,000, 1.4 times the national rate. In addition, the 10 ZIP codes are located in counties with an average unemployment rate of 3.6 percent, which is 30 basis points lower than the U.S. unemployment rate of 3.9 percent. A total of 83,000 jobs will be created this year in these markets combined*, which indicates a growth rate of 2.2 percent, significantly above the national growth rate of 1.8 percent. Millennials, in particular, are doing well. In eight out of the top 10 ZIPs, the median household income for 25 to 34 year olds is 1.3 times higher than the national median, $78,000 versus $60,000, respectively. Millennials hold the lion share of purchases. Mortgage originations in nine of the top 10 counties of these top 10 ZIPs are strongly dominated by millennials (25 to 34 year olds), which have a greater share of mortgage originations (34 percent) than the next largest group (35 to 44 year olds) with 31 percent. Buyers have their credit buttoned up. The homebuyers in the counties where these ZIPs are located have an average FICO score of 729, higher than the national average of 720. Market Highlights – Top 10 ZIP Codes 1. 49508 – Kentwood, Mich. – Although neighboring ZIP code 49548 was ranked No. 3 on the list last year, this is 49508's first appearance. Located just 15 miles southeast of Grand Rapids and 30 miles from beautiful Lake Michigan, is the quiet suburban town of Kentwood. The area is known for its tree lined streets, close knit community, affordable homes, and quick commute to Grand Rapids, where Spectrum Health, Meijer, and Mercy General Health Partners are the major employers. Young families are drawn to this affordable neighborhood because of its strong schools, such as Discovery Elementary, which has GreatSchools rating of 8/10. Key housing stats: Average home listing views in ZIP 49508 are up 4 percent over last year, with homes receiving nearly four times more views than those in the rest of the country. Homes in Kentwood sell in 14 days, 52 days faster than the rest of the U.S., with a median list price of $193,168, up 9.5 percent over last year. A pocket of relative affordability, prices in 49508 are 33 percent lower than the surrounding county. Kent County is expected to add 8,000 jobs this year, an increase of 2.3 percent. 2. 80922 – Colorado Springs, Colo. – Located 60 miles south of Denver on the eastern side of the Rocky Mountains, lies the thriving outdoor centric city of Colorado Springs. This area draws a diverse nature-loving crowd with its affordable housing compared to its sister-city to the north, Denver. Colorado Springs is replete with local breweries and tasting rooms such as the Goat Patch Brewing Co. and Trail's End self-pouring taproom, as well as many boutique restaurants that cater to the area's popular healthy living lifestyle. With areas such as Garden of the Gods and Pike's Peak, there are always trails and parks to get outside and explore. Major employers in the area include the United States Air Force at its Academy and other area bases, as well as UC Memorial Hospital North. Housing stats: The number of households in this ZIP grew by 21 percent from 2010 to 2018, with a home ownership rate of 80 percent among all age groups and 68 percent among millennials. Reflecting the high concentration of military service members in the area, 40 percent of new mortgages in El Paso County are guaranteed by the U.S. Department of Veterans Affairs. Homes in 80922 sell in 15 days, about 19 days faster than the rest of El Paso County, with a median list price of $297,811, up 9.7 percent over last year. El Paso County is expected to add 8,300 jobs this year, an increase of 2.6 percent. 3. 76148 Watauga, Texas – Located just 10 miles up on the northern edge of Fort Worth is the family-friendly suburb of Watauga. This area caters to young families that want easy access to all the amenities and entertainment that Fort Worth has to offer, while giving budget-savvy buyers the most bang for their buck. Younger families are also drawn to Watauga for its strong schools, such as Grace E. Hardeman Elementary, which has a GreatSchools rating of 8/10. This ZIP also ranks highest in the state in the Human Rights Campaign's Municipal Equality Index (MEI), which scores the ways cities support the LGBT people who live and work there. Major employers in the area include American Airlines, Texas Health Resources, and Lockheed Martin Aeronautics company. Housing stats: The dominant buyer segment in Watauga is millennials, who hold 33 percent of new purchase mortgages in the ZIP and have an 65 percent home ownership rate, compared to 42 percent in Tarrant County. Millennials in 76148 also earn slightly more than the median household overall. Homes in Watauga sell in 15 days, 3 percent faster than last year, with a median list price of $183,576, up 16.2 percent over last year. Tarrant County is expected to add 28,400 jobs this year, an increase of 2.8 percent. 4. 94546 Castro Valley, Calif. – Situated 15 miles south of Oakland is the East Bay neighborhood of Castro Valley. This quiet neighborhood is known for its relative affordability with homes costing 5 percent less than the rest of the county and 17 percent less than the broader metro area. It is also known for its excellent school system, such as Proctor Elementary, which has a GreatSchools rating of 9/10. The relaxed area caters to young professionals working in San Francisco, Oakland, and Berkeley because of its BART (Bay Area Rapid Transport) access. Castro Valley exudes local pride with activities such as the Fall Festival in September, Barks & Boos around Halloween, Light Parade in November, and Castro Valley Street Eats with food trucks from spring to autumn. Housing stats: Millennials make up 38 percent of the new purchase mortgage share in ZIP 94546, while the dominant buyer group skews slightly older at 35-44 years of age. Homes in Castro Valley sell in just 16 days, about 50 days faster than the rest of the country. Listings in this ZIP have a median list price of $784,238, up 7.6 percent over last year. While this is notably above the U.S. median of $287,036, it is significantly more affordable than nearby San Francisco priced at $944,000 (up 7.3 percent) and Silicon Valley at $1.2 million (up 25.9 percent). While Alameda County is expected to add only 3,700 jobs this year, an increase of 0.5 percent, the unemployment rate of 3.0 percent is well below the U.S. level of 3.9 percent. 5. 01960 Peabody, Mass. – Located just inland of Salem and 15 miles northeast of Boston, this small but vibrant community is known for its rich industrial history. Peabody features great public schools, such as John E. McCarthy School which has a GreatSchools rating of 8/10, and Brooksby Farm – a 200-acre working farm. The area is also headquarters to Analogic Corporation and Tradewin Consulting Services, which are some of the largest employers in Peabody. Housing stats: The dominant buyer segment in ZIP 01960 is 35-44-year-olds, while millennials (25-34-years-old) hold 32 percent of recently purchased mortgages in the area. With a median household income of $73,312, millennials in 01960 have a higher income than the typical household. Homes in Peabody sell in 20 days, 46 days more quickly than the rest of the country, with a median list price of $424,685, up 8.4 percent compared to last year. Essex County is expected to add 9,000 jobs this year, an increase of 2.2 percent. 6. 83704 Boise, Idaho – Boise is a vibrant, active city, with a mild four-season climate that allows residents to enjoy the local mountains, rivers, and lakes year-round. Plus, the Snake River Valley allows for a rich soil that provides distinctive, award-winning vintage wines from local vineyards, while the local brewery scene has been growing. Boise was also just named one of Money Magazine's Best Places to Live. Ada County ranks among the top five most popular markets for Bay Area Californians searching for homes out-of-state. As more Californians are moving away from San Francisco, Silicon Valley, and California's wine country, many are seeking homes in Idaho where the sunny climate and local tech employers, such as Micron Technology, are strong attractors. Housing stats: Millennials make up 27 percent of the new mortgage share in Ada County, while the dominant buyer group skews slightly older at 35-44 years of age. Homes in 83704 sell in 23 days, about 43 days faster than the rest of the country. Listings this year have a median list price of $251,324, up 16.2 percent over last year. Ada County is expected to add 6,400 jobs this year, an increase of about 2.8 percent, which is extraordinary considering the already low unemployment rate of 2.5 percent. 7. 43085 Worthington, Ohio – Nestled between two highways 12 miles directly north of Columbus, sits the close-knit community of Worthington. The area attracts young and growing families that want homes in a quiet neighborhood without giving up their access to downtown Columbus, Ohio. Being so close to The Ohio State University, Worthington is an affluent neighborhood, known for its particularly strong schools, such as Evening Street Elementary and Phoenix Middle School, both of which have a GreatSchools rating of 9/10. Additionally, the area has a strong sense of community with its Farmers Market, Craft Arts Crawl, as well as its many dining and boutique shopping options. Housing stats: The number of households in this ZIP grew by 9 percent from 2010 to 2018, with an above-average home ownership rate of 74 percent among all age groups and 52 percent among millennials. Homes in Worthington sell in 25 days, about 11 days faster than the rest of the county and 41 days faster than the U.S., with a median list price of $291,305, up 0.8 percent over last year. Franklin County is expected to add 13,500 jobs this year, an increase of 2 percent. 8. 66210 Overland Park, Kan. – Sitting just 11 miles south of Kansas City on the Kansas side of the border, is the thriving neighborhood of Overland Park. Though it is a suburb of Kansas City, it is also the second most populous city in the state. The area boasts a plethora of outdoor options including the Overland Park Arboretum and Botanical Gardens, as well as many hiking trails. Overland Park was just named one of Money Magazine's Best Places to Live. The area is great for both young and growing families as it offers affordable homes, 34 percent less expensive than Johnson County, Kansas as a whole. Overland Park is also home to an excellent school system that includes Harmony Middle School and Lakewood Elementary School, both of which have a GreatSchools rating of 10/10. Housing stats: Millennials continue to be the dominant buying group in the area, holding 36 percent of recently purchased mortgages in Johnson County and high-credit buyers are the norm with an average FICO of 737 compared with 720 for the U.S. as a whole. Homes in Overland Park sell in 24 days, one day slower than last year but still 42 days faster than the U.S., with a median list price of $261,927, up 14 percent over last year. While Johnson County is expected to add just 3,600 jobs this year, an increase of 1.1 percent, this is notable given the low 2.9 percent unemployment rate. 9. 14624 Rochester, N.Y. – Sitting on the southern shore of Lake Ontario is the diverse community of Rochester. The area is a close-knit community known for its plethora of beautiful parks and water features, and has been nicknamed "Flower City USA" because of the many lilacs throughout its parks. Rochester's workforce, which was previously known for its print and film services because of Kodak's former headquarters, has shifted toward health systems and higher education, with Strong Memorial Hospital and the University of Rochester being two of the area's largest employers. Along with the revitalization of downtown, the area has seen an influx in millennial home buyers purchasing in the Rochester downtown area and surrounding suburbs over the recent years. Housing stats: Homes in this ZIP are relatively affordable, priced 28 and 27 percent less than the county and metro, respectively, which have kept buyer interest high and growing. Home listing views for this ZIP have increased 51 percent over last year. Household incomes in 14624 are higher than typical U.S. incomes and homes are priced 54 percent below the typical U.S. listing, creating a great opportunity for buyers. This explains the high home ownership rates – 80 percent for all households and 64 percent for millennial households. Millennials make up the largest share of recently purchased mortgages in Monroe County at 33 percent. Homes typically sell within 22 days in this ZIP, about 29 percent faster than last year and 44 days faster than the U.S., with a median list price of $131,964. Housing interest in this ZIP has remained strong despite a roughly average growth in jobs of 0.6 percent over last year. 10. 07043 Upper Montclair, N.J. – Sitting about 14 miles west of the Hudson River and nestled at the foot of the First Watchung Mountain, is the vibrant community of Upper Montclair. The area caters to those looking to raise a family in a quiet neighborhood, while still having easy commutes to New York City and Newark, N.J. The area is a small, wealthy township where the median income of $176,182, is nearly triple the U.S. median income of $61,045. This thriving arts community is also home to the Montclair Art Museum, Montclair State University, global cuisine, and a funky downtown. Housing stats: Homes in ZIP 07043 sell in 22 days, about 23 percent faster than last year, with a median list price of $762,350, up 6 percent over last year. Homeownership rates in this ZIP are high for all households (83 percent) and millennials (51 percent). The dominant buyer segment in Essex County skews slightly older (35-44 year olds), while millennials hold 31 percent of new purchase mortgages. Recent job growth in the local area has been limited at 0.1 percent, but the labor market is powered by its larger neighbors -- New York and Newark, N.J. *Source: U.S. Bureau of Labor Statistics (BLS); Moody's Analytics Forecasted Realtor.com's 2018 Top 50 Hottest ZIP codes For more information about the list, please visit: https://www.realtor.com/research/hottest-zip-codes-2018/. To watch a video about realtor.com's hottest markets index, click here. About realtor.com® Realtor.com®, The Home of Home Search℠, offers an extensive inventory of for-sale and rental listings, and access to information, tools and professional expertise that help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today is the trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.
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Realtors View Technology as Increasingly Valuable for Business, Competition
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Home Price Cuts Increase, but Still Not Buyer's Market
SANTA CLARA, Calif., Aug. 29, 2018 -- Realtor.com® today announced the findings of its August housing trend report which revealed a surge in price cuts and the second largest drop in the U.S. median list price in three years. Although competition between buyers remained stiff and list prices continue to rise, the report also revealed a slowdown in price growth and easing of inventory declines. "Buyers, exhausted by bidding wars and little choice in inventory, could finally catch a break," said Danielle Hale, chief economist for realtor.com®. "An increase in price cuts suggests that sellers are starting to become more flexible, especially in pricey markets. However, affordability is a concern in most areas which continue to be sellers' markets. Fierce competition and low inventory continue to push up prices. While buyers are gaining leverage in some markets, we are still far from a true 'buyer's market.'" The median listing price in the U.S. decreased by $4,000 in August, dropping to $295,000 from a record-high of $299,000 in July. This is the second largest monthly list price drop since August 2015. While prices are still 7 percent higher than they were one year ago, the year-over-year increase is smaller than the 10 percent year-over-year gain seen last August. The deceleration in price growth was also observed in the larger markets. The average yearly growth in median list prices in the largest 45 markets combined was 6 percent, down from 8 percent this time last year. Meanwhile, price cuts are on the rise, especially in pricey markets where inventory is rising. The proportion of listings that feature price cuts rose 1.5 percentage points in the last year to 19.1 percent in August. The share of price cuts among listings is now 1.5 times more prevalent than in August 2012 when 13 percent of listings featured price discounts. This upward movement was more pronounced in major metropolitan areas in the last year including: Seattle with an 8 percent increase in cuts; San Jose with a 7 percent increase; and a 5 percent increase in San Diego, Riverside, Indianapolis and Los Angeles. In fact, 39 of the 45 largest markets saw an increase in the share of price cuts over last year. As predicted in the realtor.com® 2018 housing forecast, the rate of inventory decline slowed, with only 2 percent fewer for-sale listings on the market than there were in August 2017. Inventory increased 2 percent over July, in line with the typical seasonal increase. The trend continues to gain strength as the last week of August saw the first year-over-year increase in inventory in four years. Approximately 488,000 new listings entered the market during August. San Jose, Seattle and San Diego were the three markets with the biggest inventory jumps over last year, all posting increases of 28 percent or more. Price Gains and Price Cuts in Largest 45 U.S. Metros* * Excluded: Denver, Columbus, Las Vegas due to MLS feed changes during the period analyzed. Realtor.com® tracks national housing trends as well as data for the 500 largest U.S. metros. For August trend data, please visit: https://realtor.com/research/data. About realtor.com® Realtor.com®, The Home of Home Search℠, offers an extensive inventory of for-sale and rental listings, and access to the information, tools and professional expertise to help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today is the trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.
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Housing Inventory Up In High-Priced Markets
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Home Buyers Forego Garages for School Districts
SANTA CLARA, Calif., July 24, 2018 -- Today's seller's market is forcing buyers to make compromises, but new survey data from realtor.com®, The Home of Home Search, shows buyers remain steadfast in their desire for their preferred school districts. In fact, they are willing to give up two of their most desired home features -- a garage and updated kitchen -- to get into the school district they want. "Most buyers understand that they may not be able to find a home that covers every single item on their wish list," said Danielle Hale, chief economist for realtor.com®. "But our survey shows that school districts are an area where many buyers aren't willing to compromise. For many buyers, 'location, location, location,' means 'schools, schools, schools.'"   The online survey was conducted earlier this month by Harris Research of more than 1,000 people who closed on a home in 2018. Three-quarters of respondents indicated schools were important in their search The majority of successful buyers surveyed, 73 percent, indicated school boundaries were important to their search, with 39 percent indicating very important and 34 percent important. Only 18 percent said they were unimportant or very unimportant, and 9 percent of buyers were neutral on the question. The desire for particular schools varied significantly by life stage and age. Ninety-one percent of buyers with children said that school boundaries were important or very important, compared to 34 percent of those without children. Similarly, younger buyers were more likely to say that schools were important. Eighty-four percent of those 35-54 years old and 86 percent of those 18-34 years old indicated they were important, compared to 37 percent of buyers 55-plus. More than half of older buyers 55-plus said school boundaries were unimportant or very unimportant. Buyers compromise on their top home features for good schools Seventy-eight percent of buyers for whom schools were important and who were able to get into their preferred district said they had to compromise on home features; 22 percent did not. The features they most commonly reported giving up were a garage (19 percent), a large backyard (18 percent), an updated kitchen (17 percent), desired number of bedrooms (17 percent), and an outdoor living area (16 percent). According to realtor.com's spring home buyer survey a garage was the No. 1 feature home buyers were looking for this year, followed by an updated kitchen, and an open floor plan. Older buyers were less likely to say they had to compromise with 42 percent of buyers 55-plus reporting they made no compromises, compared to 21 percent of 35-54 year-old buyers and 17 percent of buyers aged 18-34. Buyers define good schools by test scores and accelerated programs Test scores were the factor most often selected by buyers as a hallmark of a good school (59 percent), followed by having accelerated programs (53 percent), arts and music (49 percent), diversity (43 percent), and before- and after-school programs (41 percent). Younger buyers were more likely than older buyers to cite diversity as a factor that makes for a good school -- 49 percent for 18-34 year-olds, compared to 37 percent for 55-plus. More older buyers placed importance on whether a school has accelerated programs -- 62 percent for 55-plus vs. 50 percent for buyers under 55. Buyers looking for homes in a specific district or school boundary, can search specifically within these parameters on realtor.com.® Buyers simply enter the name of a school or district into the search box on the realtor.com® home page. Homes within the area are then presented on a map with a "pin" showing the school name and location. For more information about the survey, please visit: https://www.realtor.com/research/home-buyers-forego-garages-for-school-districts About realtor.com® Realtor.com®, The Home of Home SearchSM, offers the most comprehensive source of for-sale MLS-listed properties, among competing national sites, and access to information, tools and professional expertise to help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today is the trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [NASDAQ: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.
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