You are viewing our site as an Agent, switch your view below:

Agent | Broker     Reset Filters to Default
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®.
MORE >
REALTORS and Social Media: Latest RPR Survey Reveals Trends
CHICAGO (April 23, 2019) – Realtors Property Resource, a wholly owned subsidiary of the National Association of REALTORS, is pleased to announce the results of its 2019 REALTOR® Social and Digital Media Report. The report includes findings from a survey of over 650 REALTORS concerning how they use social and digital media to market themselves and build their businesses. Of 651 REALTORS surveyed, almost 74% indicated that awareness is the main reason they look to social media to boost their marketing tactics. An overwhelming majority of respondents, nearly 65%, plan to commit more time to social and digital media. And just over 62% have more of their marketing budget earmarked towards social media for the coming year. "Social and digital media should play a huge role in any agent's marketing efforts," says Reggie Nicolay, RPR Vice President of Marketing. "Raising awareness of yourself and your services via channels such as Facebook, Instagram and email are the new normal in real estate marketing. It really comes down to fishing where the fish are, and the sea is full of social media users." Facebook and Instagram are the most popular social outlets for REALTORS®. Interestingly, Instagram edged out LinkedIn, which was 2017's second most used platform. Property listings are the most popular form of social media posts for real estate professionals, with local events and buying tips coming in second and third. When it comes to the type of content and format that REALTORS® are posting, photos are the number one choice, followed up by video and other content links. When it comes to digital media, email is far and away the big winner, with over 78% of REALTORS® saying the use it as their digital marketing tool of choice. Texting, videos and eNewsletters rounded out the other top digital media deliverables. Additional 2019 REALTOR®Social and Digital Media Report key findings include: Over 60 percent of respondents said they will commit more time to social and digital media in the coming year 57 percent of REALTORS® spend 1-4 hours per week on their social media presence Almost 58 percent of REALTORS® spend 1-4 hours per week on their digital marketing efforts To read the complete study results, view the PDF.
MORE >
Spring Home Buyers Eye Homes in Need of Renovation
MORE >
Gen Xers' Adult Children Influence Their Buying Decisions, Younger Millennials Become Buying Force According to Realtor Report
WASHINGTON (April 1, 2019) – One in six Gen Xers purchased a multi-generational home, overtaking younger boomers as the generation most likely to do so; with 52 percent of those Gen X buyers indicating that they did so because their adult children have either moved back or never left home. This is according to the National Association of Realtors®' 2019 Home Buyer and Seller Generational Trends study, which evaluates the generational differences of recent homebuyers and sellers. The report also found that older millennials who bought a multi-generational home, at 9 percent, were most likely to do so in order to take care of aging parents (33 percent), or to spend more time with those parents (30 percent). "The high cost of rent and lack of affordable housing inventory is sending adult children back to their parents' homes either out of necessity or an attempt to save money," says Lawrence Yun, NAR chief economist. "While these multi-generational homes may not be what a majority of Americans expect out of homeownership, this method allows younger potential buyers the opportunity to gain their financial footing and transition into homeownership. In fact, younger millennials are the most likely to move directly out of their parents' homes into homeownership, circumventing renting altogether." Millennials as a whole accounted for 37 percent of all buyers, making them the most active generation of buyers for the sixth consecutive year. 2019 is the first year the report separated younger and older millennials, accounting for 11 and 26 percent of buyers respectively. This separation was deemed necessary as younger millennials now account for a larger buying share than the silent generation (7 percent). Gen X buyers were the second largest group of buyers (24 percent), followed by younger boomers (18 percent) and older boomers (14 percent). Dividing millennials into younger and older cohorts highlights the disparities between the two age groups, and paints a picture of older millennials that is much closer to Gen Xers and younger boomers. Older millennials have a median household income of $101,200 and purchase homes with a median price of $274,000, comparable to Gen Xers ($111,100 income, $277,800 median home price) and younger boomers ($102,300, $251,100 respectively). Yun says this is to be expected as millennials continue to age and advance through various stages of their lives and careers. "Older millennials are now entering the prime earning stages of their careers, and the size and costs of homes they purchase reflect this. Their choices are falling more in line with their Gen X and boomer counterparts." Younger millennials, meanwhile, are purchasing the least expensive homes and smallest homes ($177,000 and 1,600 square feet), meaning they face the greatest challenge in finding affordable inventory. They also report a median household income of $71,200. Downsizing to a smaller home is not currently common among any of the generations. Sellers over the age of 54 only downsize by a median of 100 to 200 square feet. Gen Xers and boomers who may have been interested in downsizing could have been hindered by a lack of smaller inventory; or may have been impeded by the increase in multi-generational living these generations are reporting to accommodate the needs of adult children and aging parents. Student loan debt remains a barrier to homeownership Older millennials and Gen Xers carry the most substantial amount of student loan debt, with a median amount of $30,000. Younger millennials rank second with a median amount of $21,000. However, younger millennials are the most likely to have student loan debt, with 47 percent indicating that they carry some amount of student loan debt, while only 42 percent of older millennials and 27 percent of Gen Xers report student loan debt. Younger and older boomers also report carrying student loan debt but a lower amount, 10 and 4 percent respectively. Younger millennials were the most likely to say saving for a down payment was the most difficult task in the home process, 26 percent. Among them, student loan debt delayed their home purchase (61 percent); however, they indicated that this particular debt only delayed them a median of two years − the shortest delay of all generations. "These buyers are the most likely to receive some or all of their down payment as a gift from family or friends, usually their parents," says Yun. "This could explain why their debt is not holding them back from homeownership as long as other generations, who are less likely to receive down payment assistance." Homebuyer household compositions shift from married couples While the majority of buyers in all age groups are married couples, single buyers and unmarried couples continue to make a mark on the real estate market. Single females accounted for 25 percent of all younger boomers and silent generation buyers. "Many of these buyers are entering the market after a divorce, which is the case for younger boomers, or the death of a spouse in the case of those in the silent generation," says Yun. While only 8 percent of buyers as a whole were unmarried couples, they accounted for 20 percent of all younger millennial homebuyers, compared to 13 percent for older millennials, 8 percent for Gen Xers, 4 percent for both younger and older boomers and 3 percent for the silent generation. A majority of buyers and sellers work with a real estate agent, regardless of age. Buyers and sellers across all age groups continue to seek the assistance of a real estate agent when buying and selling a home. At 92 percent, younger millennials were the most likely to purchase a home through a real estate agent. "Help understanding the buying process" was cited as the top benefit younger millennials said their agent provided (87 percent). Across all generations, 87 percent of all buyers purchased their home through a real estate agent. Gen Xers were the largest group of sellers, accounting for one-quarter of all sellers. They were also most likely to have wanted to sell earlier but could not because their home was worth less than their mortgage; 15 percent reported they were in this situation. Ninety-two percent of all sellers used an agent during their home selling process, with older millennials and Gen Xers most likely to have used a full-service agent who offered a broad range of services and managed most aspects of the sale. "Consumers of all ages understand that working with a Realtor® is the advantage they need to compete in this fast-moving, constantly evolving real estate market," said NAR President John Smaby, a second-generation Realtor® from Edina, Minnesota and broker at Edina Realty. "Buying a home is an exciting, complicated and sometimes daunting process, and Realtors® have the knowledge and expertise to guide buyers and sellers through this experience." NAR mailed a 129-question survey in July 2018 using a random sample weighted to be representative of sales on a geographic basis to 155,250 recent homebuyers. Respondents had the option to fill out the survey via hard copy or online; the online survey was available in English and Spanish. A total of 7,191 responses were received from primary residence buyers. After accounting for undeliverable questionnaires, the survey had an adjusted response rate of 5.6 percent. The sample at the 95 percent confidence level has a confidence interval of plus-or-minus 1.10 percent. The recent homebuyers had to have purchased a home between July 2017 and June 2018. All information is characteristic of the 12-month period ending in June 2018 with the exception of income data, which are for 2017. The National Association of Realtors® is America's largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.
MORE >
Millennials Now Taking on More Mortgages than Any Other Generation
MORE >
Homes.com Study: Romantic Breakups Tie with Joblessness in Triggering 'Boomerang' Behavior
NORFOLK, VA (Feb. 04, 2019) – While you're preparing this year's passionate, you're-the-best-thing-that-ever-happened-to-me Valentine's Day tribute for your significant other, here's a sobering thought: One in five adults who return home to live with their parents do so because of a broken heart. According to a Homes.com survey of nearly 1,100 members of the so-called "Boomerang Generation" and their parents, those that return to the nest due to a divorce or partner breakup is roughly the same percentage as those who return because they're out of work. In fact, the collapse of romantic relationships is the #1 move-back-home catalyst for Boomerang-ers ages 26-40 and the #2 incentive overall. More specifically, the survey revealed that: Love gone wrong is the primary reason for cohabiting with Mom and Dad for 33% of 26-30-year-old, 37% of 31-35-year-old and 24% of 36-40-year-old Boomerang-ers, outstripping all other considerations by as many as 14 points. Saving money for a home purchase or other major investment is the #1 motivation cited by Boomerang-ers in the 20-25 year-old cohort, while the need to care for aging parents tops the list for those 41 and older. Joblessness and debt rank just #3 and #4 overall as reasons to rejoin parents, even among 20-25-year-olds. Just 18% of Boomerang-ers in that age group return home because they lost or can't find a job, and 11% because of student loan or other debt. The survey also provides intriguing insights into Boomerang-ers' ages, living quarters, sources of conflict, financial arrangements, and overall rapport with their parental roommates. Among the findings: 16% of Boomerang-ers are 31 and older, with roughly half of this group returning home after living elsewhere for 11 years or more. 45% live in their childhood bedrooms, with the rest having been displaced either by choice or space limitations. 26% live in a guest bedroom, 12% in the basement, 5% in a guest house, 4% in the living room and 2% in the garage. Privacy and noise issues cause the most friction, followed by space constraints, clashes over money, and political disagreements. General tension is also common, with more than one-third reporting "good days and bad days," constant conflict, or difficult relationships dating back to childhood. 25% pay rent to their parents when they move back home, as reported by both parents and children. This is roughly the same across all age groups. The two sides disagree about other aspects of the financial arrangement, suggesting that either parents exaggerate their support or children minimize it. For example, 12% of parents claim they cover all of their child's expenses, but only 5% of Boomerang-ers themselves say their parents foot the entire bill. Similarly, 35% of parents say that each side pays its own bills, but 45% of children make that claim. Parents are generally supportive. Only 13% discourage adult children from returning home to live, and 77% place no time limit on the arrangement. The majority also report a relatively smooth relationship, with 58% of parents and 68% of children saying they get along well or "hardly know they're there." More information about the survey, including charts and graphs detailing key results, can be found at www.blog.homes.com. About Homes.com Homes.com offers today's demanding homebuyers, renters and those somewhere in between a simply smarter home search. With features like Homes.com Match, HomeShare and Snap & Search, homeshoppers now have a more personalized and conversational way to search for their next home. Since its launch over 25 years ago, Homes.com offers real estate professionals brand and property advertising, search engine marketing and instant response lead generation to help them succeed online. For more information, visit Homes.com.
MORE >
Owning a Home Could Help You Get a Date with That Special Someone
MORE >
Migration Trend Reaches a Record High as 1 in 4 People Searching for a Home Looks to Change Metros
Seattle reclaims its migration-destination status while Denver secures its spot on the 'moving out' list SEATTLE, Jan. 30, 2019 -- Twenty-five percent of home searchers looked to move to another metro area in the fourth quarter of 2018, up from 23 percent the year before, according to a new report from Redfin, the next-generation real estate brokerage. The national share of home searchers looking to relocate has been steadily increasing since Redfin began reporting on migration in early 2017 and currently sits at its highest level on record. The latest migration analysis is based on a sample of more than 1 million Redfin.com users who searched for homes across 87 metro areas from October through December. Moving Out – Metros with the Highest Net Outflow of Redfin Users San Francisco, New York, Los Angeles, Washington, D.C. and Denver posted the highest net outflows in the fourth quarter. Net outflow is defined as the number of people looking to leave the metro minus the number of people looking to move in to the metro. A net outflow means there are more people looking to leave the area than people looking to move in, while a net inflow means more people are looking to move in than leave. Outflows on the upswing In San Francisco, New York, Denver and Washington, D.C., outflows were up dramatically from a year earlier. Of all San Francisco Bay Area residents using Redfin, 24 percent were searching for homes in another metro, up from 19 percent during the same time period a year earlier. Denver made the biggest move up the list from a year earlier, flipping from modest net inflows and outflows throughout 2017 to strong net outflows through late 2018. Last quarter, 24 percent of Denverites on Redfin.com searched for homes outside the area, up from 17 percent a year earlier. Moving In – Metros with the Highest Net Inflow of Redfin Users Seattle's net inflow surged to make it the fifth-most popular migration destination in the fourth quarter, behind nearby Portland and the relatively affordable metros--Sacramento, Phoenix and Atlanta--that have long dominated this list. Although the number of home sales in Seattle was sharply declining at the end of the year (down 22 percent in December), search interest is still high. Washington State's lack of an income tax may be helping Seattle to continue attracting people, as new tax policies enacted just over a year ago favor areas where homebuyers can avoid hitting the $10,000 SALT cap. "In both Seattle and Denver prices were growing rapidly in 2017 and early 2018 to the point that buyers backed off in the second half of 2018," said Redfin chief economist Daryl Fairweather. "However, people looking to leave high-tax metros for a city with mountain views and top-notch hiking are more likely to pick Seattle over Denver because Washington State doesn't have an income tax. In fact, the top destination for Denverites looking to leave is Seattle." In Sacramento, which has been at number one or number two on the inbound migration list every quarter since our inaugural 2017 report, "the biggest thing is the affordability of homes here, especially compared to markets like the Bay Area," said Redfin agent Jim Hamilton. "The market has softened in the Bay Area, but not as much yet in Sacramento, so buyers are moving here to capitalize on their equity and put a substantial down payment or even pay cash." To read the full report, complete with additional data, interactive migration maps and methodology, please click here. About Redfin Redfin is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including 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. For more information or to contact a local Redfin real estate agent, visit www.redfin.com.
MORE >
Generation Z Needs to Start Saving $304 a Month Now to Buy a Home By Age 30
MORE >
Average U.S. Home Seller Profits at 12-Year High of $61,000 in 2018
Median Home Sale Prices Hit an All-Time High at $248,000 in 2018; Homeowners Staying Put Longer as Average Homeownership Tenure Rises to New High IRVINE, Calif. – Jan. 31, 2019 — ATTOM Data Solutions, curator of the nation's premier property database, today released its Year-End 2018 U.S. Home Sales Report, which shows that home sellers in 2018 realized an average home price gain since purchase of $61,000, up from $50,000 last year and up from $39,500 two years ago in 2016 to the highest level since 2006 — a 12-year high. That $61,000 average home seller profit represented an average 32.6 percent return on investment compared to the original purchase price, up from 27.0 percent last year and up from 21.9 percent in 2016 to the highest average home seller ROI since 2006. "While 2018 was the most profitable time to sell a home in more than 12 years, those along the coasts, reaped the most gains. However, those are the same areas where homeowners are staying put longer," said Todd Teta, chief product officer at ATTOM Data Solutions. "The economy is still going strong and home loan rates remain historically low. But there are potential clouds on the horizon. The effects of last year's tax cuts are wearing off as limits on homeowner tax deductions are in place and mortgage rates are ticking up ever so slowly, so this could dampen the potential for home price gains in 2019." Among 217 metropolitan statistical areas with a population greater than 200,000 and sufficient historical data, the highest returns on investment were almost exclusively in western states, with concentrations along areas of the west coast. Those with the highest average home seller ROI were San Jose, California (108.8 percent); San Francisco, California (78.6 percent); Seattle, Washington (70.7 percent); Merced, California (66.4 percent); and Santa Rosa, California (66.1 percent). "Home price growth in the Seattle area has started to soften, something that home buyers have been waiting for, and a trend that we can expect to continue in the coming year," said Matthew Gardner, chief economist at Windermere Real Estate, covering the Seattle market. "Seattle is still benefitting from buyers moving here from more expensive markets, such as California, but the market cannot solely depend on this demographic. My forecast for 2019 is that it will be a year of movement back to balance, which is a very positive thing." Historical U.S. Home Seller Gains San Jose and Las Vegas lead major metros in home price appreciation The U.S. median home price in 2018 was $248,000, up 5.5 percent from 2017 to a new all-time high. Annual home price appreciation in 2018 slowed slightly compared to the 7.1 percent in 2017. Among 127 metropolitan statistical areas with a population of 200,000 or more and sufficient home price data, those with the biggest year-over-year increase in home prices were Mobile, Alabama (up 21 percent); Flint, Michigan (up 19 percent); San Jose, California (up 18.9 percent); Atlantic City, New Jersey (up 16.4 percent) and Las Vegas, Nevada (up 13.5 percent). Along with San Jose and Las Vegas, other major metro areas with a population of at least 1 million with a double-digit percentage increase in home prices in 2018 were Grand Rapids, Michigan (up 10.6 percent); San Francisco, California (up 10.3 percent); Columbus, Ohio (up 10.1 percent); and Atlanta, Georgia (up 10.1 percent). 88 of the 127 metros (69 percent) reached new record home price peaks in 2018, including Los Angeles, Dallas-Fort Worth, Houston, Atlanta, and Boston. Homeownership tenure at new record high nationwide, down in Vallejo, Reno, Tucson Homeowners who sold in the fourth quarter of 2018 had owned their homes an average of 8.30 years, up from 8.13 years in the previous quarter and up from 7.95 years in Q4 2017 to the longest average home seller tenure as far back as data is available, Q1 2000. Average U.S. Homeownership Tenure Counter to the national trend, 16 of the 108 metro areas analyzed in the report posted a year-over-year decrease in average home seller tenure including: Vallejo-Fairfield, California (down 5 percent); Reno, Nevada (down 3 percent); Redding, California (down 2 percent); Panama City, Florida (down 2 percent); Chattanooga, Tennessee (down 2 percent); Eugene, Oregon (down 2 percent); Crestview-Fort Walton Beach, Florida (down 1 percent); Tucson, Arizona (down 1 percent), Punta Gorda, Florida (down less than 1 percent); Manchester-Nashua, New Hampshire (down less than 1 percent); and Truckee, California (down less than 1 percent). Nearly three in 10 home buyers made all-cash purchases in 2018 Nationwide all-cash purchases accounted for 27.8 percent of single-family home and condo sales in 2018, unchanged from 2017 but down from its peak in 2011 at 38.4 percent. However, this is still well above the pre-recession average of 18.7 percent between 2000 and 2007. Among 200 metropolitan statistical areas with a population of at least 200,000 and sufficient cash sales data, those with the highest share of all-cash purchases in 2018 were Montgomery, Alabama (53.6 percent); Naples, Florida (52.5 percent); Macon, Georgia (50.8 percent); Cape Coral-Fort Myers, Florida (45.4 percent); and North Port-Sarasota, Florida (45.4 percent). U.S. distressed sales share drops to 11-year low, up in 8 states Distressed home sales — including bank-owned (REO) sales, third-party foreclosure auction sales, and short sales — accounted for 12.4 percent of all U.S. single family home and condo sales in 2018, down from 14.0 percent in 2017 and down from a peak of 38.6 percent in 2011. Counter to the national trend, the share of distressed sales increased in 2018 in Kansas (up 13 percent); Louisiana (up 13 percent); Wisconsin (up 2 percent); Kentucky (up 2 percent); Maine (up 1 percent); Colorado (up 1 percent); Indiana (up 1 percent); and West Virginia (up 1 percent). Among 209 metropolitan statistical areas with a population of at least 200,000 those with the highest share of distressed sales in 2018 were Atlantic City, New Jersey (37.2 percent); Montgomery, Alabama (25.2 percent); Trenton, New Jersey (23.8 percent); Youngstown, Ohio (23.6 percent); and Rockford, Illinois (22.1 percent). Among 53 metropolitan statistical areas with a population of at least 1 million, those with the highest share of distressed sales in 2018 were Philadelphia, Pennsylvania (20.7 percent); Baltimore, Maryland (19.9 percent); Cleveland, Ohio (19.4 percent); Memphis, Tennessee (19.1 percent); and Providence, Rhode Island (18.3 percent). U.S. Total Distressed Sales Institutional investors dropped for the fifth straight year Institutional investors nationwide accounted for 2.7 percent of all single-family home and condo sales in 2018, down from 3.0 percent in 2017. Among 200 metropolitan statistical areas with a population of at least 200,000 and sufficient institutional investor sales data, those with the highest share of institutional investor sales in 2018 were Montgomery, Alabama (9.6 percent); Memphis, Tennessee (8.1 percent); Columbia, South Carolina (7.6 percent); Birmingham, Alabama (7.1 percent); Atlanta, Georgia (7.0 percent); and Charlotte, North Carolina (6.5 percent). Historical U.S. Home Sales By Type Texas metro areas dominated list with the most FHA sales in 2018 Nationwide buyers using Federal Housing Administration (FHA) loans accounted for 10.6 percent of all single-family home and condo purchases in 2018, down from 13.6 percent in 2017 to the lowest level since 2007. Among 200 metropolitan statistical areas with a population of at least 200,000 and sufficient FHA buyer data, 6 out of the top 10 metro areas with the highest share of FHA sales were in Texas. Those with the highest share of FHA buyers in 2018 were McAllen, Texas (26.3 percent); El Paso, Texas (25.3 percent); Amarillo, Texas (23.0 percent); Beaumont-Port Arthur, Texas (22.7 percent); and Elkhart, Indiana (21.5 percent). About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, APIs, market trends, marketing lists, match & append and more.
MORE >
Number of Homes for Sale Is Up, But Fewer Homes Are Affordable to Middle Class Buyers
MORE >
Redfin Ranks the 10 Hottest Affordable Neighborhoods of 2019
Most of the Country's Most Popular Affordable Neighborhoods are in Baltimore and Philadelphia SEATTLE, Jan. 15, 2019 -- Expensive coastal hubs remain the most coveted places to live, but neighborhoods in Baltimore and Philadelphia are gaining popularity as the most desired affordable neighborhoods in 2019, according to new reports from Redfin, the next-generation real estate brokerage. Redfin's Hottest Affordable Neighborhoods report is an adaptation of the annual Hottest Neighborhoods report, which tracks year-over-year growth in listing views and favorites on Redfin.com and incorporates Redfin agent insights to see which neighborhoods are growing in popularity. The Hottest Affordable Neighborhoods report determines which hot neighborhoods are within reach for the average homebuyer by incorporating a price cap of $294,000, the national median home price. This year, the hottest neighborhoods within reach are concentrated mostly in Baltimore and Philadelphia, two metro areas that are often considered affordable alternatives to Washington, D.C. and New York. Neighborhoods in Chicago, the Portland, Oregon and Boston metro areas and San Antonio also show up in the rankings. In the Baltimore area, the neighborhoods that appear in the rankings this year are all on the outskirts of the city in areas that are attractive to move-up buyers. "A lot of people are moving away from the city center into places that feel more like suburbs," said Redfin agent Rebecca Hall. "They're moving to areas that don't feel as dense; they have more of a neighborhood feel and that's really appealing to homebuyers. You can get larger single-family homes rather than the row houses Baltimore is known for, and they're less expensive. Some of these pockets are also known for desirable charter schools." Below is the complete list of Redfin's hottest affordable neighborhoods of the year. All statistics on median sale price, average sale-to-list price ratio and percent of homes that sold above list price are from November 2018. 1. McKinley Park, Chicago, IL Median sale price: $270,000Median sale price for metro area: $230,000Average sale-to-list price ratio: 97.9%Percent of homes that sold above list price: 35.1% "Homebuyers are flocking to McKinley Park because it's just south of Pilsen, which is one of the trendiest neighborhoods in the country, and it's just west of long-established Bridgeport. People who are priced out of Pilsen are looking in McKinley Park," said Redfin agent Niko Voutsinas. "People who live there have have excellent connectivity to downtown because it's right off the L and the expressway. The neighborhood has a beautiful park with public amenities, a pond and an outdoor swimming pool." 2. East Mount Airy, Philadelphia, PA Median sale price: $200,000Median sale price for metro area: $199,000Average sale-to-list price ratio: 98%Percent of homes that sold above list price: 28.1% "East Mount Airy is attractive to homebuyers because it's close to the center of the city and transit options. It's also near Fairmount Park, which is one of the largest urban green spaces in the country. Compared to other neighborhoods in Philadelphia, homes tend to be reasonably priced and they're larger with lots of character," said Elizabeth Tumasz, a Philadelphia Redfin agent. "Easy access to cafes, shopping, co-ops and bookstores is an added bonus." 3. Parkville, Baltimore, MD Median sale price: $204,900Median sale price for metro area: $270,000Average sale-to-list price ratio: 98.2%Percent of homes that sold above list price: 24% "Parkville is popular for people who want to live slightly outside the city of Baltimore. People appreciate that they're not too far from downtown, but the property taxes are less expensive and the homes tend to be larger," said Redfin agent Juliana Weaver. "There are also a lot of cute Cape Cod style homes in the area, so I always recommend Parkville to people looking for that type of home." 4. Hamilton, Baltimore, MD Median sale price: $159,500Median sale price for metro area: $270,000Average sale-to-list price ratio: 98.5%Percent of homes that sold above list price: 31.6% "Over the last few years, a lot of homes in the Hamilton area have been renovated and that trend is expected to continue. There's still a lot of room for it to grow," said Redfin agent Juliana Weaver. "The neighborhood is known for smaller single-family homes with small yards at a slightly lower price point than is typical for Baltimore. People love the neighborhood because there are a lot of local restaurants and small business." 5. Fircrest, Vancouver, WA (Portland, OR metro area) Median sale price: $282,500Median sale price for metro area: $385,000Average sale-to-list price ratio: 100.1%Percent of homes that sold above list price: 20% "This area is a mix of new construction and older homes with large yards that have been fixed up, and both options tend to be affordable," said Redfin agent Rebecca Thompson. "It's an easy commute for people who work in Portland, the homes aren't cookie-cutter and it's definitely getting more popular among buyers." 6. Bustleton, Philadelphia, PA Median sale price: $248,250Median sale price for metro area: $199,000Average sale-to-list price ratio: 98.1%Percent of homes that sold above list price: 29.4% "Bustleton is located in the far northeastern part of Philadelphia. It's attractive because properties tend to be priced lower than those in the center of the city. It's close to shopping centers and it's also close to public transportation and major highways, which makes for an easy commute to the center of the city," said Redfin agent Elizabeth Tumasz. "Homebuyers like the area because they can stay in the city and still get that suburban feel. Homes in Bustleton tend to have nice, grassy yards, and there are a lot of coffee shops, restaurants and parks in the area." 7. Linthicum, Baltimore, MD Median sale price: $271,000Median sale price for metro area: $270,000Average sale-to-list price ratio: 99.4%Percent of homes that sold above list price: 37% "Linthicum is a small suburb located just outside Baltimore, and it's becoming increasingly popular for homebuyers," said Redfin agent Debra Morin. "It's a quiet, well-established community with a small-town feel and several walking and running trails, including Andover Park and the BWI trail. Linthicum has relatively affordable housing and it's close to Baltimore Washington International Airport, with easy access to public transit and major highways." 8. Lowell, Boston, MA Median sale price: $249,250Median sale price for metro area: $471,100Average sale-to-list price ratio: 102.5%Percent of homes that sold above list price: 38.9% "Lowell is an interesting area because it was known for textile mills back in its heyday, but it has struggled to find its footing in more recent times. But now we're seeing investors putting their money back into the area, with UMass and big-name local investors putting millions to work," said Redfin agent David Pollack. "It has a great downtown area with a lot of restaurants and bars, and it's home to a folk festival, a favorite in the summer. There's a commuter rail that takes you right into Boston, and it's also home to a minor league baseball team that brings in crowds. But you still get a lot of bang for your buck in Lowell, especially compared to bordering towns." 9. Fox Chase, Philadelphia, PA Median sale price: $219,000Median sale price for metro area: $199,000Average sale-to-list price ratio: 98.4%Percent of homes that sold above list price: 30.2% "Fox Chase is in Philadelphia, but it definitely has a suburban feel with a lot of ranch-style houses and twin homes with front yards. A lot of them have garages, too" said Redfin agent Michael Severns. "The neighborhood is perfect for people who commute into the city because it has easy access to main thoroughfares like the Roosevelt Corridor and Highway 611. A lot of people who grew up closer to the city in places like Fishtown and Kensington eventually search for homes a little bit further out in Fox Chase." 10. Beacon Hill, San Antonio, TX Median sale price: $213,264Median sale price for metro area: $220,000Average sale-to-list price ratio: 98.5%Percent of homes that sold above list price: 46.2% "Beacon Hill combines old San Antonio charm with 21st century urban living," said Perry Sanders, a Redfin agent who works in the area. "The architecture includes a mix of single-family homes, condominiums and townhouses. Combine that with Beacon Hill's plentiful shops and eateries, and you quickly understand why the neighborhood has gained popularity in recent years—a trend that's likely to continue." The full Hottest Affordable Neighborhoods report, complete with research methodology, is available here. To read the full Hottest Neighborhoods report, including a list of the top three neighborhoods in each of 41 major metro areas, 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.
MORE >
Homeownership Part of American Dream; Housing Costs Deterrent for Non-Owners
MORE >
Renting a Home More Affordable than Buying in 59 Percent of U.S. Housing Markets
Home Prices Outpacing Wages in 80 Percent of the U.S. Housing Markets IRVINE, Calif. – Jan. 10, 2019 — ATTOM Data Solutions, curator of the nation's premier property database, today released its 2019 Rental Affordability Report, which shows that renting a three-bedroom property is more affordable than buying a median-priced home in 442 of 755 U.S. counties analyzed for the report — 59 percent. The analysis incorporated recently released fair market rent data for 2019 from the U.S. Department of Housing and Urban Development, wage data from the Bureau of Labor Statistics along with public record sales deed data from ATTOM Data Solutions in 755 U.S. counties with sufficient home sales data (see full methodology below). "With rental affordability outpacing home affordability in the majority of U.S. housing markets, and home prices rising faster than rental rates, the American dream of owning a home, may be just that — a dream, "said Jennifer von Pohlmann, director of content and PR at ATTOM Data Solutions. "With home price appreciation increasing annually at an average of 6.7 percent in those counties analyzed for this report and rental rates increasing an average of 3.5 percent, coupled with the fact that home prices are outpacing wages in 80 percent of the counties, renting a home is clearly becoming the more attractive option in this volatile housing market." Renting more affordable than buying in nation's most populated counties Renting is more affordable than buying a home in the nation's 18 most populated counties and in 37 of 40 counties with a population of 1 million or more (93 percent) — including Los Angeles County, California; Cook County (Chicago), Illinois; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; and San Diego County, California. Other markets with a population of more than 1 million where it is more affordable to rent than to buy a home included counties in Miami, New York City, Seattle, Las Vegas, San Jose, San Francisco and Boston. Among the 40 U.S. counties analyzed in the report with a population of 1 million or more, the three where it is more affordable to buy a home than rent were Wayne County (Detroit), Michigan; Philadelphia County, Pennsylvania; and Cuyahoga County (Cleveland), Ohio. Buy or Rent in 2019 Heat Map Least affordable rental markets in Northern California, Hawaii, D.C. The report shows that renting a three-bedroom property requires an average of 38.0 percent of weekly wages across the 755 counties analyzed for the report. The least affordable markets for renting are Santa Cruz County, California (81.7 percent of average wages to rent); Honolulu County, Hawaii (74.4 percent); Spotsylvania County, Virginia (73.0 percent); Maui County, Hawaii (69.5 percent); San Benito County, California (68.6 percent); Monroe County, Florida (67.3 percent); Sonoma County (Santa Rosa area), California (66.0 percent); Marin County (San Francisco area), California (65.6 percent); and Kings County, New York (63.7 percent). Most affordable rental markets in Ohio, North Carolina, Wisconsin, Pennsylvania The most affordable markets for renting are Roane County (Knoxville area), Tennessee (19.7 percent of average wages to rent); Peoria County, Illinois (23.8 percent); Mcminn County (Athens), Tennessee (23.8 percent); Green County (Dayton), Ohio (24.2 percent); and Rhea County (Dayton area), Ohio (24.6 percent). Among counties with a population of 1 million or more, those most affordable for renting are Allegheny County (Pittsburgh), Pennsylvania (25.1 percent); Cuyahoga County (Cleveland), Ohio (25.6 percent); Saint Louis County, Missouri (26.4 percent); Oakland County (Detroit area), Michigan (26.7 percent); and Wayne County (Detroit), Michigan (27.7 percent). Rent growth outpacing wage growth in 52 percent of markets Average fair market rents rose faster than average weekly wages in 394 of the 755 counties analyzed in the report (52 percent), including Los Angeles County, California; Cook County (Chicago), Illinois; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; and San Diego County, California. Average weekly wages rose faster than average fair market rents in 361 of the 755 counties analyzed in the report (48 percent), including Kings County (Brooklyn), New York; Queens County, New York; Clark County (Las Vegas), Nevada; Tarrant County (Dallas-Fort Worth), Texas; Santa Clara (San Jose), California; Broward County (Miami), Florida; and Alameda (San Francisco), California. Home prices rising faster than wages in 80 percent of markets Median home prices rose faster than average weekly wages in 601 of the 755 counties analyzed in the report (80 percent), including Los Angeles County, California; Cook County (Chicago), Illinois; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; San Diego County, California; Orange County, California; and Miami-Dade County, Florida. Average weekly wages rose faster than median home prices in 154 of the 755 counties analyzed in the report (20 percent), including Kings County (Brooklyn), New York; Queens County, New York; King County (Seattle), Washington; Suffolk County, New York; and Bronx County, New York. Home prices rising faster than rents in 70 percent of markets Median home prices rose faster than average fair market rents in 531 of the 755 counties analyzed in the report, including Cook County (Chicago), Illinois; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; Kings County (Brooklyn), New York; Queens County, New York; and Riverside County, California. Average fair market rents rose faster than median home prices in 224 of the 755 counties analyzed in the report (30 percent), including Los Angeles County, California; San Diego County, California; Orange County, California; Miami-Dade County, Florida; Dallas County, Texas; and Kings County (Seattle), Washington. About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, APIs, market trends, marketing lists, match & append and more.
MORE >
Women, Millennials, and Hispanics Will Shape the Future of Housing
MORE >
Potential Home Buyers Lose Interest as Showing Activity Drops Broadly with Consecutive Monthly Declines; Trend Likely to Continue into 2019
South Region records second month of decreasing activity vs. 2017, while the West, Midwest and Northeast continue to report reduced showing activity compared to 2017's record numbers Dec. 21, 2018, Chicago, IL – Buyer traffic across the U.S. declined 5.4 percent year over year in November, continuing its decline over the prior year and marking the second month in a row showing activity was down in each region and in the U.S. as a whole, according to the ShowingTime Showing Index®. The West Region had the biggest year-over-year decline, with November showing traffic off 12.4 percent vs. November 2017. The Midwest was next with an 8.4 percent year-over-year decline, its fourth consecutive month of decreasing demand. The South Region dropped 5.0 percent, while the Northeast declined 2.0 percent. "We are ending the year with demand going down year over year across the U.S., particularly in the West and the Midwest," said ShowingTime Chief Analytics Officer Daniil Cherkasskiy. "It's important to be careful when looking at showing traffic in the slow season, but the trends we observed in 2018 point to a further slowdown in demand in 2019's busy season. That should relieve upward pressure on home prices and possibly lead to a buildup of inventory." The ShowingTime Showing Index, the first of its kind in the residential real estate industry, is compiled using data from property showings scheduled across the country on listings using ShowingTime products and services, which facilitate more than 4 million showings each month. Released on or around the 20th each month, the Showing Index tracks the average number of appointments received on an active listing during the month. Local MLS indices are also available for select markets and are distributed to MLS and association leadership. To view the full report, visit www.showingtime.com/showingtime-showing-index/. About ShowingTime ShowingTime is the leading showing management and market stats technology provider to the residential real estate industry, with more than 1.2 million active listings subscribed to its services. Its MarketStats division provides interactive tools and market reports for MLSs, associations, brokers, agents and other real estate companies, along with recruiting software that enables brokers to identify top agents. Its showing products take the inefficiencies out of the appointment scheduling process for real estate agents, buyers and sellers. ShowingTime products are used in more than 250 MLSs representing over 950,000 real estate professionals across the U.S. and Canada.
MORE >
Redfin Predicts 2019 Housing Market Will Be the Coolest in Years
MORE >
U.S. Home Affordability Drops to More Than 10-Year Low in Q4 2018
But Affordability Improves From Previous Quarter in 58 Percent of Local Housing Markets; Wage Growth Outpacing Home Price Growth in 22 Percent of Markets, Including San Diego, Brooklyn, Seattle, San Jose and Manhattan IRVINE, Calif. – Dec. 20, 2018 — ATTOM Data Solutions, curator of the nation's premier property database, today released its Q4 2018 U.S. Home Affordability Report, which shows that the U.S. median home price in the fourth quarter was at the least affordable level since Q3 2008 — a more than 10-year low. The report calculates an affordability index based on percentage of income needed to buy a median-priced home relative to historic averages, with an index above 100 indicating median home prices are more affordable than the historic average, and an index below 100 indicating median home prices are less affordable than the historic average. (See full methodology below.) Nationwide, the Q4 2018 home affordability index of 91 was down from an index of 94 in the previous quarter and an index of 106 in Q4 2017 to the lowest level since Q3 2008, when the index was 87. Among 469 U.S. counties analyzed in the report, 357 (76 percent) posted a Q4 2018 affordability index below 100, meaning homes were less affordable than the long-term affordability averages for the county. That was down from a 10-year high of 78 percent of counties posting an affordability index below 100 in Q3 2018. "While poor home affordability continues to cloud the U.S. housing market, there are silver linings in the local data as home price appreciation falls more in line with wage growth," said Daren Blomquist, senior vice president at ATTOM Data Solutions. "Affordability improved from the previous quarter in more than half of all local markets, and one in five local markets saw annual wage growth outpace annual home price appreciation, including high-priced areas such as San Diego, Brooklyn and Seattle." Q4 2018 Home Price Appreciation & Wage Growth Heat Map Home affordability improves from previous quarter in 58 percent of local markets Counter to the national trend, home affordability improved from the previous quarter in 272 of the 469 counties analyzed in the report (58 percent), including Cook County (Chicago), Illinois; Harris County (Houston), Texas; San Diego County, California; Orange County, California; and Miami-Dade County, Florida. Home affordability worsened compared to the previous quarter in 197 of the 469 counties analyzed in the report (42 percent), including Los Angeles County, California; Maricopa County (Phoenix), Arizona; Riverside County, California; San Bernardino County, California; and Clark County (Las Vegas), Nevada. Wages rising faster than home prices in 22 percent of markets Nationwide the median home sales price in Q4 2018 was $241,250, up 9 percent from a year ago, while the annualized average weekly wage of $56,381 was up 3 percent from a year ago. Annual home price appreciation in Q4 2018 outpaced annual average wage growth in 366 of the 469 counties analyzed in the report (78 percent), including Los Angeles County, California; Cook County (Chicago), Illinois; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; and Orange County, California. Counter to the national trend, annual average wage growth outpaced annual home price appreciation in 103 of the 469 counties analyzed in the report (22 percent), including San Diego County, California; Kings County (Brooklyn), New York; King County (Seattle), Washington; Santa Clara County (San Jose), California; and New York County (Manhattan), New York. Highest share of income needed to buy a home in Brooklyn and Bay Area Nationwide, buying a median-priced home in Q4 2018 would require 35.0 percent of an average wage earner's income, above the historical average of 32.0 percent. Counties with the highest share of wages needed to buy a median priced home in Q4 2018 were Kings County (Brooklyn), New York (128.8 percent); Marin County, California (124.1 percent); Santa Cruz County, California (118.2 percent); Monterey County, California (96.9 percent); and San Luis Obispo County, California (94.4 percent). Counties with the lowest share of wages needed to buy a median-priced home in Q4 2018 were Baltimore City, Maryland (13.1 percent); Bibb County (Macon), Georgia (13.5 percent); Clayton County, Georgia (15.5 percent); Peoria County, Illinois (15.7 percent); and Wayne County (Detroit), Michigan (15.9 percent). Buying a home requires income of $100,000 or more in 15 percent of local markets Buying a median-priced home required more than $100,000 in annual income (assuming 3 percent down and a maximum front-end debt-to-income ratio of 28 percent) in 70 of the 469 counties analyzed in the report, led by New York County (Manhattan), New York ($408,977 to buy); San Francisco County, California ($375,491 to buy); San Mateo County, California ($368,242 to buy); Marin County, California ($315,524 to buy); and Santa Clara County (San Jose), California ($308,178 to buy. About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, APIs, market trends, marketing lists, match & append and more.
MORE >
Leading iBuyers Selling Nearly One in 10 Homes to Institutional Investors According to New ATTOM Data Solutions Analysis
MORE >
Tougher Road Ahead for Home Buyers and Sellers in 2019
Mortgage rates and home prices to rise; home sales will decline 2.2 percentHigh-end inventory gains expected in parts of West Coast, New England, Tennessee SANTA CLARA, Calif., Nov. 28, 2018 -- Rising rates and home prices will make it more difficult to buy or sell a home next year, according to realtor.com's 2019 housing forecast. The 2019 housing market see modest inventory gains, but with mortgage rates expected to hit 5.5 percent by the end of the year, monthly mortgage payments will rise 8 percent, putting home ownership more out of reach, especially for younger Gen-Z, Millennial and other first-time homebuyers. Upscale homes in high-growth markets, however, will provide more opportunities for buyers. Other findings of the realtor.com® 2019 housing forecast include: Home price growth will continue to slow, with a forecasted increase of 2.2 percent; Inventory increases will remain moderate with less than a 7 percent increase; High-priced markets will buck the trend, with double digit inventory gains; Millennials will account for 45 percent of mortgages in 2019 vs. 17 percent for Boomers; New tax plan will be good for renters, mixed for homeowners. "Inventory will continue to increase next year, but unless there is a major shift in the economic trajectory, we don't expect a buyer's market on the horizon within the next five years," said Danielle Hale, chief economist for realtor.com®. "Unfortunately for buyers, it's only going to get more costly to buy, especially the most-demanded entry level real estate. To be successful, buyers should think through how they'll adapt to higher rates and prices." What will 2019 be like for buyers? Buying a home will be an even more expensive undertaking in 2019 as mortgage rates and home prices increase. Buyers who are able to stay in the market will find less competition as more buyers are priced out, but feel an increased sense of urgency to close before it gets even more expensive. Their largest struggle next year will be reconciling wants, needs and budget versus the heavy competition of 2018. Although the number of homes for sale is increasing, which is an improvement for buyers, the majority of new inventory is focused in the mid-to higher-end price tier, not entry-level. Rising mortgage rates and prices will keep a lot of new inventory out of their budget and make it especially tough for first time home buyers. What will 2019 be like for sellers? Although it remains a seller's market, sellers will need to be mindful of their increasing competition and shouldn't necessarily expect to name their price and get it in full -- a change from the past few years. Above-median priced sellers, may find it will take longer to sell and require offering incentives, such as price cuts or other offerings. With less demand in the market, there will be fewer bidding wars and multiple offers. However, with inventory expected to remain limited in most markets, sellers who price competitively can still walk away with a handsome amount of profit, but not the price jumps observed in previous years. Key Housing Trends of 2019 Modest inventory gains continue; high-end inventory growth spreads. Inventory hit the lowest level in recorded history last winter, but finally bottomed out and reached positive territory in October. National inventory increases will remain low in 2019 at less than 7 percent. In the majority of markets, the number of homes being put on the market or newly constructed has increased slightly, while the pace of sales has slowed slightly, which has helped stop the inventory decline. But the inventory increases or slowing price increases necessary for a more widespread sales gain are not forecasted to happen in 2019. While the situation is not getting worse for buyers, it's also not improving notably in the majority of markets. High-priced markets are a different story. The majority of the inventory gains have been in upscale homes in high-growth markets, which suggests higher prices are incentivizing sellers. Next year, realtor.com® forecasts more high-end inventory growth in major metros with the largest increases expected in: San Jose-Sunnyvale-Santa Clara, Calif.; Seattle-Tacoma- Bellevue, Wash.; Worcester, Mass.-Conn.; Boston-Cambridge-Newton, Mass.-N.H.; and Nashville-Davidson-- Murfreesboro--Franklin, Tenn. all of which could see double digit gains in inventory in 2019. Soft home sales continue. After the best sales year in a decade in 2017, home sales are on track for a mild year-over-year decline in 2018, which is likely to extend into 2019 with a 2.0 percent decline. Although long-term desire to own a home remains strong, especially among younger Gen-z and millennials, the market challenges that make owning a home difficult continue to keep out first-time buyers, locking them out not only of their home, but also of the wealth by equity generation that owning provides. Millennials purchase the most homes. Millennials will continue to make up the largest segment of buyers next year, accounting for 45 percent of mortgages, compared to 17 percent of Boomers, and 37 percent of Gen Xers. While first-time buyers will struggle next year, older millennial move-up buyers will have more options in the mid-to upper-tier price point and will make up the majority of millennials who close in 2019. Looking forward, 2020 is expected to be the peak millennial home buying year with the largest cohort of millennials turning 30 years old. Millennials are also likely to make up the largest share of homebuyers for the next decade as their housing needs adjust over time. Tax plan remains a wild card for housing: In April 2019, taxpayers will go through the income tax process for the first time since the new tax plan. For most renters, the results will be good: lower rates and a higher standard deduction should amount to lower tax bills. For homeowners, it's a mixed bag. Some will benefit from lower rates and a higher standard deduction, but many others will find limited itemized deductions and personal exemptions mean a higher tax bill. Despite the fact that 2017 home sales were the highest they've been in over a decade, sales in 2018 started to decline immediately following the tax plan. While many factors influence home sales, it could be the case that without homeownership incentives some renters are holding off on buying. How the market will react in 2019 remains a wildcard for housing. For more information, please visit: https://www.realtor.com/research/2019-national-housing-forecast/ 2019 Housing Market Forecast Sales and Price Forecast for 100 Largest Markets *Forecast data was compiled before the announcement of Amazon HQ2, which is likely to have a significant impact on each city's housing market. 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®.
MORE >
Redfin Report: These 8 Inland Housing Markets are Heating Up as the Coasts Cool
MORE >
Affordability, Disruption and Rising Interest Rates Lead Top 10 Issues Facing Real Estate
BOSTON (November 4, 2018) – Housing affordability, disruptive technology and rising interest rates were just some of the issues the Counselors of Real Estate named most likely to affect the real estate industry during a session titled "Update: The Top Ten Impacts on Real Estate 2018-2019" at NAR's 2018 REALTORS® Conference & Expo. Each year CRE members pool their research, analysis and information to develop a Top Ten Issues Affecting Real Estate list and the substantiation that validates it. This list identifies the most pressing trends and challenges that will impact the housing and commercial real estate market now and in the years to come. "Real estate touches every American, from every part of the country and every walk of life," said panelist Hugh Kelly, of Hugh F. Kelly Real Estate Economics. "The concerns facing the real estate industry are our common concerns." CRE divided the list into two groups: issues the organization believes the industry needs to be thinking about in the coming year and issues that will be important over the next 10 years. Here are the two lists: Current Issues Interest Rates & the Economy Politics & Political Uncertainty Housing Affordability Generational Change/Demographics E-commerce & Logistics "When it comes to politics, CRE tries to illuminate rather than advocate," said Kelly. "However, we think it is obvious that the dysfunctional state of our political discourse and our unwillingness to compromise on issues stand in the way of problem-solving – problems like the ones on this list." Longer-term Issues Infrastructure Disruptive Technology Natural Disasters & Climate Change Immigration Energy & Water "It is widely known and documented that as infrastructure deteriorates, so do the local neighborhoods and communities," said panelist Julie Melander, Vice President-Portfolio Management at Carter Validus. "The reverse is also true; in regions where infrastructure is invested in we see a growth in population, an increase in business investment and a rise in property values." 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.
MORE >
2019 Forecast: Existing-Home Sales to Stabilize and Price Growth to Continue
MORE >
Zealous Gen Z: Saving Early to Be Homeowners by Age 25
Gen Z-ers are two times more likely than previous generations to be saving or plan on saving for a home by age 25 SANTA CLARA, Calif., Nov. 1, 2018 -- Generation Z is ambitious about homeownership, and it shows through their savings habits. According to realtor.com®, Gen Z-ers (ages 18 to 24) interested in homeownership are two times more likely than previous generations to be saving or plan to be saving for a home by age 25 - and two of five Gen Z-ers are aiming to become homeowners by that age. These insights are the result of a survey realtor.com® conducted in conjunction with Harris Interactive, which included responses from 3,372 people Americans across Generation X (ages 35 - 50), millennials/Generation Y (ages 25 - 34) and Generation Z, to better understand the generational differences in relation to homeownership and aspirations. "Gen Z-ers don't just want to become homeowners; they want to do it at a younger age and we found that they're saving or planning to save for it accordingly," said Danielle Hale, chief economist at realtor.com®. "Their desire for homeownership may be similar to that of millennials and Gen X-ers, but graduating into one of the best labor markets in generations might give them the boost they need. Only time will tell if Gen Z-ers are able to achieve their ambitious goals." Generation Z's homeownership fervor closely resembles that of millennials and Generation X, as 79 percent are certain they want to (or already do) own a home, compared to 82 percent for both Gen Y and Gen X. A larger share of Gen Z-ers are open-minded and may be interested in pursuing homeownership sometime in the future (17 percent), compared to millennials (13 percent) and Gen X-ers (11 percent). Accordingly, Gen Z-ers who answered "yes" or "maybe" to desiring homeownership are more than twice as likely to have started or plan to start saving for a home before age 25 (74 percent), compared to what Gen Y (33 percent) and Gen X (33 percent) actually reported accomplishing. Overall, only 4 percent of Gen Z-ers are sure that they don't want to own a home, on par with Gen Y (5 percent) and Gen X (6 percent). The expenses associated with homeownership are the biggest deterrent across all generations, especially for Gen Z-ers (48 percent vs. millennials at 31 percent and Gen X-ers at 42 percent). The second most-cited reason Generation Z didn't want to be a homeowner was that they were not yet ready to settle down in one place (25 percent). Customization is king, especially for Generation Z Generation Z is least likely to become or plan to become a homeowner for investment purposes (29 percent) or tax benefits (16 percent). Instead, they cite wanting to customize their space (61 percent) as the top reason for homeownership, and tied with millennials for wanting to raise their family in a home they owned (55 percent). Why do/did you want to become a homeowner?* *Asked only of those who answered "yes" or "maybe" to desiring homeownership A little help from the parents isn't off the table Gen Z-ers are the most optimistic about getting financial assistance from their parents to reach their homeownership goals, with 56 percent saying "maybe" or "yes" to expecting or receiving financial help from family. Interestingly, Generation Z's parents are the least likely to have received family assistance from relatives. Gen X-ers were least likely to expect or have received help from their family (59 percent no), and millennials are split down the middle (50 percent no, 50 percent yes/maybe). With a head-start on savings and potentially greater access to family support, this up-and-coming generation could be better prepared to invest in real estate. Did you/do you expect financial assistance from your family or relatives? 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®.
MORE >
Automated Cars, Micro-Mobility to Impact the Future of Transportation, Say Realtors
MORE >
The Longest Housing Inventory Decline in History Comes to an End
SANTA CLARA, Calif., Oct. 31, 2018 -- National housing inventory grew by 2 percent, or 25,000 listings, in October after four years of severe inventory declines, according to realtor.com®'s October housing report released today. New listings that hit the market in October were 8 percent cheaper than existing homes for-sale, which may be an early indicator that more affordable inventory is on the way for first-time home buyers. In October, the U.S. median listing price remained at $295,000, a 7 percent increase year-over-year, but lower than last year's 10 percent increase. Homes continued to sell at a relatively rapid pace of 68 days, five days faster than last year. New listings grew 4 percent in October and were on average 8 percent or $25,000 cheaper than existing inventory, and on average 10 percent, or 190 square-feet, smaller. The fastest inventory growth was found in condominiums and townhomes, which are now up 7 percent year-over-year, compared to single family homes which are up 1 percent. "Buyers have been struggling for four years to find homes in their price range, while dealing with bidding wars and multiple offer situations," said Danielle Hale, chief economist for realtor.com®. "The inventory increase will not solve the problem overnight, but it should provide some relief to those still in the market, especially if the growth we're seeing in more affordable homes and condos holds steady. However, affordability is still an issue with increasing mortgage rates and prices keeping many would-be buyers on the sidelines." For the first time since 2014, the inventory recovery is spreading and the majority of large markets are seeing more listings than last year. In October, 26 of the 45 largest markets in the U.S. saw year-over-year inventory increases, up from 22 markets last month. The five markets that saw the largest inventory jumps were San Jose, Calif.; Seattle; San Francisco; San Diego; and Nashville, Tenn. all of which posted increases of 32 percent or more. Combined inventory in the 45 largest markets increased 6 percent year-over-year on average, higher than the national rate of 2 percent, indicating greater growth in inventory in urban sectors. 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®.
MORE >
20% of Recent Homebuyers Made an Offer Sight-Unseen, Down from 35% Late Last Year
MORE >
National Housing Inventory Crisis Reaches Inflection Point
U.S. inventory is poised for positive growth boosted by a 5-year high in new listings SANTA CLARA, Calif., Oct. 3, 2018 -- Realtor.com®, the Home of Home Search, today released its September housing report which shows national inventory has started to flatten, signaling a crucial inflection point for the inventory crisis. According to the report, inventory declined a mere 0.2 percent from a year ago and is poised for positive growth ahead, boosted by an 8 percent increase in new listings -- the largest yearly jump since 2013. "After years of record-breaking inventory declines, September's almost flat inventory signals a big change in the real estate market," said Danielle Hale, chief economist for realtor.com®. "Would-be buyers who had been waiting for a bigger selection of homes for sale may finally see more listings materialize. But don't expect the level to jump dramatically. Plenty of buyers in the market are scooping up homes as soon as they're listed, which will keep national increases relatively small for the time being." In September, the U.S. median listing price remained at $295,000, a 7 percent increase year-over-year, but lower than last year's 10 percent increase. Homes continued to sell at a relatively rapid pace of 65 days on average, 4 days faster than last year. More than 465,000 new listings entered the market in September, an 8 percent increase and the biggest yearly jump since 2013. These new listings were 8 percent, or $25,000, cheaper than existing inventory in the market, and 10 percent, or 200 square-feet, smaller than homes already in the market, on average. Although single-family home inventory remained relatively flat, declining by only 1 percent, new inventory growth was found in condominiums and townhomes, which are now up 3 percent year-over-year. The inventory recovery is particularly visible in larger cities. In September, 22 of the 45 largest markets in the U.S. saw year-over-year inventory increases. The five markets that saw the largest inventory jumps were San Jose, Calif.; Seattle; Jacksonville, Fla.; San Diego, and San Francisco, all posting increases of 31 percent or more. Inventory also rose over last year in Chicago, Miami, Dallas, Boston, Los Angeles, and New York. Combined inventory in the 45 largest markets increased 5.6 percent year-over-year on average, the largest yearly increase since realtor.com® started tracking it in 2013. New Listing Growth in Largest 45 Metro Markets* * Excluded: Denver; Columbus, Mo.; and Las Vegas due to MLS feed changes during the period analyzed. About realtor.com® Realtor.com®, The Home of Home Search℠, offers the most comprehensive source of for-sale MLS-listed properties, among competing national sites, and access to the information, tools and professional expertise to help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today is the trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [NASDAQ: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.
MORE >
Millennial Homebuyers Are Driving Realtor.com's 2018 Hottest ZIP Codes in America Report
MORE >
Realtors View Technology as Increasingly Valuable for Business, Competition
WASHINGTON (September 18, 2018) — As technology continues to transform and modernize the real estate industry, Realtors®, members of the National Association of Realtors®, are focused on adapting to and remaining at the forefront of this change. Last month, NAR kicked-off the inaugural Innovation, Opportunity & Investment Summit in San Francisco, where Realtors® joined real estate technology companies and the investment community to discuss evolutions in real estate technology and strategies for Realtors® to keep up with these trends. "During the iOi Summit, Realtors® collaborated with leading technology firms to identify Realtor®-friendly technology tools and resources. The summit is a part of an ongoing process of creating a dynamic, competitive real estate market that will help NAR advance our members-first mission for years to come," said NAR CEO Bob Goldberg. Following the iOi Summit, NAR developed a survey focused on Realtors® day-to-day use of technology and analyzed ways technology continues to change how Realtors® and real estate businesses operate. According to the 2018 REALTOR® Technology Survey, Realtors® have spent countless hours and millions of dollars advancing real estate technologies and keeping up with the latest trends in order to further their business. "The iOi Summit and the Realtor® Technology Survey are both initiatives that help us better understand Realtors® use of technology, embrace change and identify the business technology tools of the future. Both are part of my vision as CEO, advocating for technologies that are Realtor®-centric and ensure a competitive market for consumers throughout the real estate transaction," said Goldberg. According to the survey, Realtors® continue to find the most value in current technology tools that increase efficiency and enhance remote work capabilities. The three most valuable technology tools Realtors® used in their businesses, excluding email and cell phones, were local MLS websites/apps (64 percent), lockbox/smart key devices (39 percent), and social media platforms (28 percent). As the real estate market becomes more dynamic and competitive with advances like smart technology, Realtors® are becoming more familiar with smart home and Internet connected devices. Realtors® always stay in touch with the latest trends buyers want in their homes. The survey found that Realtors® are most familiar with security devices (19 percent), home-connected wearable devices (12 percent), and home comfort devices (12 percent). While the majority of agents are satisfied with the technology tools provided by their broker, they do want some additional tools. When asked what additional technology tools Realtors® would like to see their broker provide in the future, respondents most wanted to see predictive analytics (36 percent), CRM tools (35 percent), and transaction management software (25 percent). According to the survey, 41 percent of Realtors® were somewhat satisfied with MLS-provided technology and nearly 29 percent were extremely satisfied with their MLS's technology offerings. Only two percent of respondents do not use any of the technology tools or services that their MLS offers. The tech tools that have given respondents or their agents the highest number of quality business leads in the last year were social media (47 percent), their MLS site (32 percent), their brokerage's website (29 percent), and listing aggregator sites (29 percent). The 2018 Realtor® Technology Survey was based on data collected in March 2018. The survey was e-mailed to NAR members, including Realtor® brokers, managers and agents, and generated 2,525 usable responses. The survey is available at https://www.nar.realtor/reports/realtor-technology-survey. 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.
MORE >
Home Price Cuts Increase, but Still Not Buyer's Market
MORE >
Housing Inventory Up In High-Priced Markets
One third of the largest 45 U.S. metros saw a yearly increase in inventory in July SANTA CLARA, Calif., Aug. 1, 2018 -- Realtor.com® today released its July 2018 monthly housing trend report, which revealed a quiet inventory turnaround in high-priced local markets as U.S. home prices and time on market continued to set records. Silicon Valley is leading the rebound as the San Jose metro surged with 44 percent more inventory than a year ago -- a quick about-face from its May inventory declines. The inventory turnaround is concentrated in high-priced markets. Nationally, inventory of homes listed above $350,000 is up 5.7 percent, while inventory of homes below $200,000 is down 15.6 percent, and inventory of homes between $200,000 to $350,000 is virtually flat, slipping just 0.6 percent. In the 45 largest metros, prices are significantly higher in markets where inventory is rising -- an average of $494,000 -- compared to markets where inventory is still dropping -- an average of $302,000. Additionally, inventories are up the most in markets that have seen sustained price growth which is now starting to slow. The U.S. median listing price remained at an all-time high of $299,000 in July, unchanged from June and 9 percent higher than last year. Homes sold in an average of 59 days, 5 days faster than last year. Overall, U.S. active housing inventory is not yet growing, but showed evidence of shifting gears, posting only a 4 percent decline year-over-year -- significantly slower than the 8 percent average decline seen over the last 12 months. Furthermore, 16 major metros saw an increase in their yearly inventory levels. "July inventory growth is in high-priced, competitive markets, and often at the pricier end of these markets," said Danielle Hale, chief economist for realtor.com®. "It's not just California markets that have seen an increase in inventory, markets on both coasts and in the South reported inventory increases in July." Locally, this deceleration of inventory declines was even more pronounced. In July, the 45 largest markets in the country showed no change in inventory on average year-over-year, in stark contrast with last July's 11 percent decline in these same markets. In addition to San Jose, inventory increased in Seattle, and Providence increasing 44 percent, 29 percent and 23 percent, respectively. Other major markets that showed gains included: Dallas (15 percent), San Francisco (10 percent), Boston (5 percent), and New York (2 percent). "Although signs of an inventory turnaround are encouraging, whether they mean good news for buyers remains to be seen. These areas are seeing more new listings and some construction growth, but high prices and fast-selling homes are causing some buyer hesitation which is reflected in fewer home sales," added Hale. *Excluded: Denver, Columbus, Las Vegas, Nashville and Birmingham data is under revision and excluded due to MLS feed changes. Adjusted: Washington and Baltimore inventory trends are adjusted to show total listing movement instead of active listing movement due to MLS feed changes. Active listings are non-pending, for-sale home listings. Realtor.com® tracks national housing trends as well as data for the 500 largest U.S. metros. For July 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.
MORE >
Home Buyers Forego Garages for School Districts
MORE >
Who's Closing on a Home in the Most Competitive Market of All-Time?
More than half of those who purchased a home this year paid asking price or less SANTA CLARA, Calif., July 17, 2018 -- Low inventory, rising home prices, and higher interest rates are making it more difficult, but they aren't keeping some people from closing on a home, according to the results of a survey released today by realtor.com, The Home of Home Search. In fact, 34 percent of those who purchased a home were unfazed by price and rate hikes, 51 percent didn't pay above asking, and 42 percent only made one or two offers. The typical profile of a successful buyer in the first half of 2018 is someone who was in the market for six months or less (61 percent), made four or fewer offers (72 percent), and bought a three-bedroom, two-bath home. Those that had an easiest time buying a home were older buyers, above the age of 55 years old, according to the survey that was conducted earlier this month by Harris Research and includes online responses from more than 1,000 people who closed in 2018. "Successful homebuyers in 2018 have been exceptionally well-qualified," said Danielle Hale, chief economist for realtor.com®. "We are seeing the impact of the inventory crisis in the data, and it's holding back home sales. While would-be buyers struggle with limited inventory, rising prices and mortgage rates, those who closed were undeterred by today's buyer frenzy. This is likely attributed to their experience, cash, and perhaps the market they've chosen to buy in." Rising rates and prices impacted the majority of buyers Home prices set new records this spring. Two-thirds of closers revealed their search was impacted by rising prices or rates. In fact, 22 percent indicated increased costs forced them to look for a less expensive home. Nineteen percent said they had to increase their monthly mortgage budget and the same share said they had to look in a different neighborhood. Conversely, 34 percent of those who closed indicated that rising prices and mortgage rates had no impact on their purchase. Fifty-four percent of buyers above 55 years old indicated no impact, while 31 percent of buyers between the ages of 35 and 54 years old, and 23 percent of those 18-34 years old reported this. Most closers didn't pay above asking, but put down more than 20 percent Despite this season's notorious bidding wars, the majority of successful home buyers, 51 percent, didn't have to pay more than asking price. In fact, 28 percent of buyers paid less than asking price and 23 percent paid full asking. This also varied by age, only 24 percent of those over 55 years old paid over asking, compared to 59 percent of those 18-34 years old and 56 percent of those 35-54 years old. Although the majority didn't offer above asking, these successful buyers were able to entice sellers with cash. Mortgage data* from the first half of 2018 shows more than 30 percent of buyers put more than 20 percent down. This data also shows that larger down payments are more common among older buyers with 22 percent of those aged 18-34, 32 percent of those aged 35-54, and 51 percent of those aged 55 and older putting more than 20 percent down. Fast closings with limited number of offers A large share of those who bought in 2018 closed very quickly. In fact, 25 percent of respondents started their search and closed within two months. More than 60 percent closed within six months and only 8 percent took one year or more after starting their search. Older buyers were more likely to close quickly with 34 percent of those 55-plus closing within two months, compared to 23 percent of 35-54-year-olds and 21 percent of 25-34-year-olds. Additionally, nearly half of all buyers, 42 percent, were able close on a home after one to two offers. Fifty-eight percent had to make three or more offers. Again, older buyers came out on top with 64 percent of those 55-plus making only one or two offers, compared to 38 percent of those 35-54 years old and 30 percent of 18-34-year-olds. Additionally, one third of 18-54-year-olds had to make five or more offers. Checking listings websites and cash are the key to getting ahead When buyers were asked about the most effective tactic they used to get ahead, the No. 1 strategy cited was checking listings websites everyday, indicated by 30 percent. Twenty-four percent reported putting more than 20 percent down and the same share reported using all cash, followed by 20 percent of respondents who used each of the following tactics: set a price alert, offered above asking, and used a larger earnest money deposit. For more information, please visit: https://www.realtor.com/research/home-buyers-in-the-most-competitive-market *Mortgage data is sourced from realtor.com® analysis of Optimal Blue mortgage origination data. About realtor.com® Realtor.com®, The Home of Home SearchSM, offers the most comprehensive source of for-sale MLS-listed properties, among competing national sites, and access to information, tools and professional expertise to help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today is the trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [NASDAQ: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
MORE >
[Infographic] Housing Market Movers: Baby Boomers
MORE >
Foreign Investment in U.S. Commercial Real Estate Remains Strong, China and Mexico Top Investors
WASHINGTON (June 28, 2018) — Nearly one-fifth of Realtors® practicing in commercial real estate closed a sale with an international client in 2017, and 35 percent said they have experienced an increase in the number of international clients in the past five years, according to a report from the National Association of Realtors®. NAR's 2018 Commercial Real Estate International Business Trends report analyzed cross-border commercial real estate transactions made by Realtors® during 2017. The study found that most Realtors® who specialize in commercial real estate reside in smaller commercial markets where the typical deal is less than $2.5 million. "The profile of smaller commercial markets is continuing to rise as many foreign investors are attracted to smaller-sized properties in secondary and tertiary markets, bringing Realtors® confidence that increased sales and leasing activity will continue to occur in 2018," said Lawrence Yun, NAR chief economist. "Since 2016, world economies have regained their footing and have pressed toward higher ground. Global economic output increased in 2017, and commercial real estate continues to be a healthy investment for global investors," Yun added. Of the 59 percent of Realtors® who indicated they completed a commercial real estate transaction last year (69 percent in 2016), 18 percent reported closing a deal for an international client (20 percent in 2016). Among survey respondents who closed an international transaction, 46 percent closed a buyer-side transaction, 13 percent a seller-side transaction and the remainder closed both types of transactions. Over 60 percent of buyer-side sales were transactions with foreign buyers who primarily reside abroad. Most seller-side transactions (57 percent) were of properties sold by clients who were temporarily residing in the U.S. on non-immigrant visas. Nineteen percent of Realtors® said they completed a lease agreement on behalf of a foreign client, down from 22 percent in 2016. The median gross lease value for international lease transactions was $200,000 ($105,000 in 2016) with most space typically under 2,500 square feet. The top countries of origin for buyers were China (20 percent), Mexico (11 percent), Canada (8 percent) and the United Kingdom (6 percent). While sellers were typically from Mexico (20 percent), China (15 percent), and Brazil and Israel (both at 10 percent). Florida and Texas were the top two states where foreigners purchased and sold commercial property last year, with California being the third most popular buyer and seller destination. International commercial buyer and seller transactions typically tend to be at the higher end of the market. Last year, the median international buyer-side transaction was $975,000 and a median seller-side transaction was $1 million, while the median commercial transaction was $625,000. "Realtors®' international clients found U.S. commercial real estate markets to be a good value in 2017. About seven in 10 respondents reported that international clients view U.S. prices to be about the same or less expensive than prices in their home country," Yun stated. The survey also found that foreign buyers of commercial property typically bring more cash to the table than those purchasing residential real estate. Seventy percent of international transactions were closed with cash, while NAR's 2017 residential survey found that half of buyers paid in cash. For those not using all cash, 25 percent of commercial deals involved debt financing from U.S. sources. A majority of buyers purchased commercial space for rental property (39 percent) or for business investment purposes (34 percent). NAR's commercial community includes commercial members, real estate boards, committees, advisory boards and forums; and NAR commercial affiliate organizations – CCIM Institute, Institute of Real Estate Management, Realtors® Land Institute, Society of Industrial and Office Realtors®, and Counselors of Real Estate. Approximately 80,000 NAR members specialize in commercial real estate brokerage and related services including property management, land counseling and appraisal. In addition, more than 200,000 members are involved in commercial transactions as a secondary business. 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.
MORE >
Housing Prices Hit New Highs, but Show Signs of Deceleration, Realtor.com May Housing Data Indicates
MORE >
Redfin Migration Report: Denver Joins Seattle and San Francisco as a Tech Hub with More People Looking to Move Out than Move In
SEATTLE, May 23, 2018 -- In the first three months of 2018, Denver posted a "net outflow" of Redfin users for the first time, meaning that more Denver-based Redfin users were searching for homes in other metro areas than Redfin users elsewhere looking to move in. This is according to the latest Migration Report by Redfin, the next-generation real estate brokerage. The analysis is based on a sample of more than 1 million Redfin.com users searching for homes across 75 metro areas from January through March. Of all Denverites using Redfin, 20 percent were searching for homes in another metro, up from 15 percent during the same time period a year earlier. Nationally, 23.9 percent of Redfin.com users looked to relocate to another metro area last quarter, up from 19.8 percent a year earlier. Seattle, which is grappling with a controversial tax related to the city's housing crisis, has posted two consecutive quarters of net outflow, based on Redfin user data. In the first quarter, 12 percent of Seattle-based Redfin users were looking in other metro areas, up from 9 percent during the same period last year. "Home searches are a forward-looking indicator of what is likely to happen to a city's population," said Taylor Marr, senior economist at Redfin. "We saw this in 2015 in the Bay Area, when more Bay Area Redfin users were searching elsewhere. By 2016, the U.S. Census Bureau showed San Francisco had lost residents. Now we see signs that Denver and Seattle, cities that once attracted those fleeing high home prices, are becoming unaffordable as well." Below are the metros with the highest net outflows of Redfin users: Census data shows that Denver peaked at 40,000 net domestic migrations in 2015, meaning that many more people moved to Denver than left. Since then, while still positive, the net migration has declined each year. Looking ahead, based on Redfin user search trends, the company expects Denver to see a negative net migration, or a loss of residents, in the 2019 Census. Meanwhile in Seattle, the Census data reveal peak net domestic migration in 2016, a year later than Denver, and the decline in 2017 was less dramatic. Redfin search data, however, shows users increasingly looking to leave the Seattle area. Since October 2017, more Seattleites are looking at homes elsewhere than the other way around. Where are they going? Residents looking to leave Seattle and Denver last quarter were mostly looking in areas that were more affordable and less competitive. Los Angeles looks like an exception on the surface, because the metro area on average is more expensive than Denver and Seattle. However, when they looked at the county level, analysts found that the most common areas homebuyers were looking at were more affordable areas of the LA market, like the Inland Empire (Riverside County, CA). Phoenix was a top destination for both Seattle and Denver last quarter, and had the largest net gain of Redfin users looking to move to the area from elsewhere. This was up significantly—34 percent—from a year ago. Phoenix is also much more affordable, with a median home sale price of $257,000 as of April, compared to $415,000 in Denver and $580,000 in Seattle. Major cities in Texas, as well as Chicago and Portland, are also attractive to those leaving Seattle and Denver. This has resulted in a disbursement of wealth throughout the country to cities that have made it easier to build new housing. Which Cities Will be Next? Below are the 10 metros that are the most likely to receive big inflows of new residents in the next year from expensive coastal markets, based on the number of users looking to relocate there versus leave. With these new residents, economic growth and rising home prices will likely follow, as we saw in Seattle and Denver. The new destinations will be at risk for becoming unaffordable over time as well, unless they build enough new homes to keep up with the influx of people. Cities like Las Vegas, Atlanta and Austin are building thousands of new housing units to accommodate this growth. Meanwhile Sacramento, Portland and San Diego are good examples of markets experiencing early signs of slowing growth, with smaller net inflows of Redfin users in the first quarter of this year than in the same time period in 2017. These metro areas have not expanded housing as rapidly to dampen growth in housing costs. To read the full report, complete with more data and interactive charts, please click here. About Redfin Redfin is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $60 billion in home sales.
MORE >
Realtors Midyear Forecast: Home Sales, Prices to Rise Despite Inventory, Affordability Challenges
MORE >
Realtor.com Identifies Toughest Housing Markets for Millennials
List includes San Jose, Calif.; Seattle and Salt Lake City, as well as some surprises SANTA CLARA, Calif., April 26, 2018 -- This spring, the largest generation in U.S. history – millennials – is colliding with the toughest home buying season in history, and they will fare better in some markets than others. According to a new analysis released today by realtor.com®, the home of home search, the combination of low inventory, escalating home prices and high demand have made San Jose, Seattle, Salt Lake City, Minneapolis and Omaha, Neb., the toughest areas in the country for millennial buyers this spring. "Millennials want to buy, but record-low inventory is making it extremely difficult," Danielle Hale, chief economist for realtor.com®. "Our analysis shows millennials are facing challenges in both established markets such as San Jose and Seattle, as well as more recently popular areas like Omaha and Salt Lake City. Despite the difficulties, first-timers are optimistic and more than willing to weather the challenges this spring has to offer." Key Dynamics in the Top Five Markets All the markets on the list are millennial hotspots that have attracted 25- to 34-year-olds with strong economies and high-paying jobs. As a result, millennials make up a higher share of the population, at 14.6 percent, compared to 13.4 percent for the U.S. Household income among 25- to 34 year-olds in these five locations is also significantly higher, at roughly $79,000, compared to the U.S. median of $59,800. Additionally, based on realtor.com® search data, millennials in these markets are very interested in buying a home. In the first quarter, they accounted for 25 percent of views, higher than any other age group. However, low inventory levels and high prices are making it tough for these would-be buyers. Nationally, inventory is 35 percent lower than the spring of 2012 and prices have reached a new high of $280,000. The shortage is even more acute in these five metros. Compared to this time last year, active listings in these five metros remain 8 percent lower, age of inventory is 7 percent lower, and list prices are 8 percent higher. Supply is nearly three times lower than the rest of the country, at 5.7 listings versus 16.1 listings per 1,000 households. Additionally, listings in these areas are scarcer and selling faster for more money. In these five metros active listings are 9 percent lower, age of inventory is 13 percent lower, and list prices are 14 percent higher from a year ago. Toughest Housing Markets for Millennials 1. San Jose - The median list price in San Jose is $1,244,000, compared to $280,000 for the U.S. overall. On average, San Jose millennials earn $109,800 annually. Millennials make up 14.3 percent of the total population in San Jose and account for 24.1 percent of total realtor.com® page views in the area. Millennials are flocking to San Jose in hopes of earning the "tech salary" that everyone is chasing. Apple, Adobe, Intel, and NASA are just a few of the companies that call this area home. With San Jose State University and nearby Stanford University, the area is replete with young students and scholars. The inventory shortage is especially significant in the area and is pushing non-tech industry workers to the outskirts. 2. Seattle - The median list price in Seattle is $553,000. On average, millennials earn $78,300. Millennials make up 15.4 percent of the total population in Seattle and account for 24.2 percent of total realtor.com® page views in the area. Big tech employers such as Amazon, Microsoft, and Expedia are a big draw for millennial and non-millennial workers to the Seattle area. Beyond the tech scene, Seattle offers great outdoor spaces, such as Kerry Park and a thriving nightlife in Ballard and Capitol Hill. Despite Seattle's already high home prices, real estate professionals don't see any end in sight given the large amount of tech money flooding into the area. They also report many millennials are spending more than $1,000,000 on their first home due to the high salaries and home prices in the area. 3. Salt Lake City - The median list price in Salt Lake City is $394,000. On average, millennials earn $67,800 annually. Millennials make up 15.5 percent of the total population in Salt Lake City and account for 26 percent of total realtor.com® page views in the area. Salt Lake City offers the perfect blend of city life and the great outdoors for millennial professionals. Intermountain Healthcare Medical Center, University Hospital and the University of Utah are the largest employers in the area, with other notable companies such as Delta Air Lines and eBay. Located just an hour from Park City, residents can spend the morning downtown shopping one of the city's many trendy shopping areas, and be on the slopes by mid-afternoon. However, millennials are struggling to find their place in the hot housing market. Many homes under $350,000 are getting scooped up instantly by older buyers who often have more money. 4. Minneapolis - The median list price in Minneapolis is $283,000. On average, millennials earn $73,600 annually. Millennials make up 13.8 percent of the total population in Minneapolis and account for 25.9 percent of total realtor.com® page views in the area. Minneapolis is the perfect city for millennials who love a mix of natural amenities and urban living. The area is home to 17 Fortune 500 companies, including UnitedHealth Group, Target, Best Buy, and 3M. It's also home to a thriving cycling culture, with the second (only to Portland) most bike commuters of all big cities. The city is relatively affordable, but it's become more difficult for first-time buyers to find homes under $250,000. When they do, they are often outbid by cash offers from boomers. 5. Omaha - The median list price in Omaha is $283,000. On average, millennials earn $63,500 annually. Millennials make up 13.8 percent of the total population in Omaha and account for 25.9 percent of total realtor.com® page views in the area. Millennials are drawn to Omaha for its low cost of living, strong school system, and thriving job market. With schools such as Spring Ridge Elementary, Aldrich Elementary, and Hitchcock Elementary, all of which scored 9/10 by Greatschools.org, the area is great for millennials who want to start families. It offers strong financial, medical and military jobs with companies such as Nebraska Medicine, Taylor Telecommunications, and Union Pacific Railroad Co. Millennials looking to find homes under $250,000 are struggling, but boomers purchasing more expensive homes continue to have success closing. Methodology Realtor.com® analyzed the largest 60 metros in the country with large populations of older millennial markets. Markets were then ranked based on inventory availability and affordability. About realtor.com® Realtor.com® is the home of home search, offering the most comprehensive source of for-sale properties, among competing national sites, and the information, tools and professional expertise to help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today is the trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [NASDAQ: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
MORE >
Realtors Property Resource (RPR) Sees Record Usage
MORE >
Millennial Buyers Feel the Brunt of Rate and Price Hikes
Debt and smaller down payments leave millennials vulnerable to an already challenging market SANTA CLARA, Calif., April 4, 2018 -- As interest rates and home prices continue to rise, millennial home buyers are more likely than older buyers to adjust what they are shopping for, according to a new survey released today from realtor.com®, a leading online real estate destination. Two factors contributing to this market sensitivity are millennials' likelihood to carry more student loan and other debt and put less down than other buyers. According to the online survey of more than 1,000 active buyers conducted in March by Toluna Research, 79 percent and 83 percent of respondents of all ages, respectively, said rising interest rates and home prices will impact their home search. That rises to 92 and 93 percent for buyers ages 18 to 34 years old. Only 17 percent and 21 percent of all buyers indicated prices and rates would have no impact. "Existing debt and lower down payments leave younger shoppers more exposed than others to the impact of rising mortgage rates and record-high home prices," said Danielle Hale, chief economist for realtor.com®. "These obstacles won't prevent millennials from finding and buying homes, but most will have to adapt to these challenging market conditions by adjusting their home search." Rising prices and interest rates impact the majority of buyers When asked how their search would be impacted by rising prices, 41 percent indicated they have to buy a smaller home, 35 percent need to look for a less expensive home, 34 percent have to look in a different neighborhood, 33 percent need to put down a larger down payment, and 31 percent have to increase their monthly mortgage budget. Survey data also shows rising rates have a greater impact on millennials than on buyers 55 years or older. As a result of rising rates, 37 percent of millennials said that they have to look for a less expensive home, compared to 24 percent of buyers 55 and older. Thirty-five percent of millennials have to look in a different neighborhood, compared to 18 percent of those 55+. Thirty-three percent of millennials have to look for a smaller home, compared to 23 percent of boomers. Millennial buyers carry more debt than others Millennial buyers are also more likely to report carrying each of the seven categories of debt realtor.com® inquired about – often by a significant margin. Of those between the ages of 18 and 34 years old, 78 percent have credit card debt, 68 percent have a car loan, 62 percent have a personal loan, 62 percent have mortgage debt, 57 percent have home equity loans, and 61 percent have student loans. This is notably higher than 35-54 years old who reported: 72 percent credit card debt, 59 percent car loan, 55 percent have a personal loan, 60 percent mortgage debt, 49 percent home equity loan, and 49 percent student loans. Or those 55+ who indicated: 45 percent credit card debt, 30 percent car loan, 12 percent personal loan, 32 percent mortgage debt, 11 percent home equity loans and 9 percent student loans. Millennials put the least amount down When all respondents were asked how much cash they are planning to put down on their purchase, 32 percent indicated they are putting down less than 10 percent of their purchase price. Seventeen percent said 16 to 20 percent of the price and 15 percent indicated 11 to 15 percent of the purchase price. A down payment of less than 10 percent was most common for the millennial generation with 37 percent of buyers aged 18-34 reporting this. They were followed by 34 percent of 35-54 year-olds and 20 percent of those 55 years or older. Millennials were also the least likely to put more than 20 percent of their purchase price down with roughly one in four among 18 to 34 year-olds putting more than 20 percent down, followed by one in three among 35 to 54 year-olds, and one in two among 55+ buyers. Full results are available here. Realtor.com® also recently surveyed house hunters about what they are looking for in a home. It also surveyed buyers about the hotly competitive spring buying season. About realtor.com® Realtor.com® is the trusted resource for home buyers, sellers and dreamers, offering the most comprehensive source of for-sale properties, among competing national sites, and the information, tools and professional expertise to help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today helps make all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [NASDAQ: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.
MORE >
Rising Rents Push Millennials to Become Homeowners
MORE >
Millennials Lead All Homebuyers, Even as Some Can't Escape Their Parents
WASHINGTON (March 14, 2018) — Home purchases by millennials ticked up over the past year, but inventory constraints and higher housing costs kept their overall activity subdued and prevented some from leaving the more affordable confines of their Gen X and baby boomer parents' homes. This is according to the National Association of Realtors® 2018 Home Buyer and Seller Generational Trends study, which evaluates the generational differences of recent home buyers and sellers. The survey additionally found that millennial buyers prioritize living close to friends and family over a home's location and proximity to schools, and an overwhelming majority used a real estate agent to buy or sell a home. Slightly more than a third of all home purchases were made by millennials over the past year (36 percent; 34 percent in 2017), which kept them as the most active generation of buyers for the fifth consecutive year. Gen X buyers ranked second (26 percent; 28 percent in 2017), followed by younger (18 percent) and older baby boomers (14 percent) and the Silent Generation, those born between 1925 and 1945 (6 percent; 8 percent in 2017). According to Lawrence Yun, NAR chief economist, this year's survey findings reveal both what it takes to be a successful millennial buyer in today's housing market, as well as why, even though sales to millennials reached an all-time survey high, stubbornly low inventory conditions pushed home prices out of reach for many. As a result, the overall share of millennial buyers remains at an underperforming level. Revealing the greater purchasing power needed over the past year, the typical millennial buyer in the survey had a higher household income ($88,200) than a year ago ($82,000) and purchased the same-sized home (1,800-square-feet) at a more expensive price ($220,000; $205,000 in 2017). Millennials also had higher student debt balances than in last year's survey, and slightly more of them said saving for a down payment was the most difficult task in buying a home. “Realtors® throughout the country have noticed both the notable upturn in buyer interest from young adults over the past year, as well as mounting frustration once they begin actively searching for a home to buy," said Yun. “Prices keep rising for the limited number of listings on the market they can afford, which is creating stark competition, speedy price growth and the need to save more in order to buy." Added Yun, “These challenging market conditions have caused – and will continue to cause – many aspiring millennial buyers to continue renting unless more Gen Xers decide to sell, and entry-level home construction picks up significantly." Other key findings and notable generational trends of buyers and sellers in this year's 144-page survey include: Younger boomers and Gen X buyers increasingly have children and parents living at home Similar to previous years, younger boomers were the most likely to purchase a multi-generational home (20 percent), with a noteworthy rise in those indicating the top reason they did was for their adult children (above 18 years old) to live at home (39 percent; 30 percent in 2017), as well as their parents (22 percent; 18 percent in 2017). The survey also found a growing a share of Gen X buyers buying for multi-generational purposes (15 percent; 12 percent in 2017), with a big jump in the top reason being for their adult children (35 percent; 26 percent in 2017) and parents living with them (30 percent; 19 percent in 2017). “Costly rents and growing student debt balances appear to make living at home more appealing, affordable and increasingly more common among young adults just entering the workforce," said Yun. “Even in situations where three generations are all cramped under the same roof, it can significantly help some millennials eventually transition straight to homeownership. Eighteen percent of millennial buyers in the survey said their family home was their previous living arrangement." Friends and family matter for buyers both young and old When deciding where to buy a home, quality of the neighborhood is the factor most influencing buyers of all ages, followed closely by convenience to a job for those up to working age (millennials to younger boomers). Interestingly, even more than the location and quality of a school, recent millennial buyers were just as likely as older boomers and the Silent Generation (at 43 percent) to consider proximity to friends and family. “The sense of community and wanting friends and family nearby is a major factor for many homebuyers of all ages," said Yun. “Similar to Gen X buyers who have their parents living at home, millennial buyers with kids may seek the convenience of having family nearby to help raise their family." Millennials buying condos in the city at a very low rate The share of millennial buyers with at least one child continues to grow, at 52 percent in this year's survey and up from 49 percent a year ago and 43 percent in 2015. With the need for a larger house at an affordable price, over half of millennials bought in a suburban location (52 percent), while also being more likely than Gen Xers and younger boomers to choose a home in a small town. After climbing as high as 21 percent in 2015, only 15 percent of recent millennial buyers purchased a home in an urban area. Led by Gen X (86 percent) and millennial buyers (85 percent), a detached single-family home continues to be the primary type of property purchased, and older and younger boomers were the most likely to buy a multi-family home. Only 2 percent of millennial buyers over the past year bought a condo. “While there is an overall trend among households young and old to migrate towards urban areas, the very low production of new condos means there are few affordable options for buyers – especially millennials," said Yun. Regardless of age, most buyers and sellers work with a real estate agent Buyers and sellers across all age groups continue to seek the assistance of a real estate agent when buying and selling a home. At 90 percent, millennials were the most likely to purchase a home through a real estate agent, and help understanding the buying process was cited as the top benefit millennials said their agent provided (75 percent). Overall, at least 84 percent in every other generation worked with an agent to close the deal. On the seller side, Gen X and older boomers were the most likely to use an agent (91 percent), followed closely by millennials (90 percent) and younger boomers (88 percent). The near universal use of an agent to sell a home helped keep for-sale-by-owner transactions at their lowest share ever for the third straight year (8 percent). “Especially in today's fast-moving housing market, consumers of all ages want a Realtor® to guide them through the exhilarating, yet nerve-wracking experience of buying or selling a home," said NAR President Elizabeth Mendenhall, a sixth-generation Realtor® from Columbia, Missouri and CEO of RE/MAX Boone Realty. NAR mailed a 131-question survey in July 2017 using a random sample weighted to be representative of sales on a geographic basis to 145,800 recent home buyers. Respondents had the option to fill out the survey via hard copy or online; the online survey was available in English and Spanish. A total of 7,866 responses were received from primary residence buyers. After accounting for undeliverable questionnaires, the survey had an adjusted response rate of 5.6 percent. The sample at the 95 percent confidence level has a confidence interval of plus-or-minus 1.10 percent. The recent home buyers had to have purchased a home between July 2016 and June 2017. All information is characteristic of the 12-month period ending in June 2017 with the exception of income data, which are for 2016. 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.
MORE >
Home Shoppers Move Beyond the Suburbs
MORE >
Redfin Survey: 35% of Recent Homebuyers Bid on a Home Before Seeing it in Person
45% of Millennial Homebuyers Made an Offer Sight-Unseen; More than Half of Respondents in Los Angeles Did So SEATTLE, Feb. 26, 2018 -- Thirty-five percent of people who bought a home last year said they made an offer without first seeing it in person, according to a late-2017 survey commissioned by Redfin, the next-generation real estate brokerage. That's up from 33 percent in May 2017, and 19 percent in June 2016. This is based on a Redfin-commissioned survey conducted in November and December 2017, which included responses from 1,503 people who purchased a home in the previous 12 months. Today's report is the final issue of a three-part series on the results of the survey. The first and second reports focused on politics and the housing market. Millennial homebuyers were even more likely to make an offer sight-unseen, with 45 percent in November and 41 percent in May saying they had done so. These results likely reflect millennials' comfort relying on information they find online about homes for sale, neighborhoods they might not have visited in person, and the home-buying process in general. More than half (57%) of respondents who bought a home in Los Angeles last year made an offer sight-unseen. The prevalence of foreign investors in L.A. may have played a role in sight-unseen offers' popularity there. The market-by-market breakdown below shows that the trend was also driven by buyers in other competitive California metros, with 46 percent in San Diego and 44 percent in San Francisco having done so. People who can't get in to tour a home right away because they're busy or relocating from out of town often rely on tools like Redfin 3D Walkthrough and FaceTime® to explore the home itself, and the vast array of statistics, reviews, maps and articles online that can help a prospective buyer understand what it's like to live in a neighborhood. However, in the case of offering sight-unseen, the agent can be a buyer's greatest resource. Angela Hunter, a Redfin agent in Omaha, worked with a family relocating from Jacksonville, Florida to Offutt Air Force Base in Bellevue, Nebraska. "This family had a only a few weeks to find a home and they did not want to live on-base or rent," Hunter said. "Because the wife was 8 months pregnant at the time, they needed a move-in ready home within 20 minutes of the base. While conducting video tours with them, I was very careful to explain things that they would not be able to experience virtually, like the sounds, smells, and textures. I pointed out flaws that are hard to detect through video so that nothing would be a surprise to them once they visited in person. It's not the easiest way to shop for a home, but together we found the perfect match." With no end to the housing shortage in view and more millennials entering the housing market, the trend toward sight-unseen bids is likely to grow in 2018. To read the full report, complete with data, charts and a full methodology, click here. About Redfin Redfin is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $50 billion in home sales.
MORE >
Is Salt Lake City the 'Next Denver'?
MORE >
Redfin Survey: 15 Percent of Respondents Sold Their Home or Did Not Buy Last Year Due to Concerns about Immigration Policies
SEATTLE — Feb. 6, 2018 -- Fifteen percent of respondents to a 2017 housing market sentiment survey said they either sold their home or did not buy one last year because of concerns about how restrictive immigration policies or proposals would affect them, according to Redfin, the next-generation real estate brokerage. From November 1 to December 6, 2017, Redfin commissioned a survey of 4,270 U.S. residents in 14 metropolitan areas who bought or sold a home in the past year, attempted to do so or planned to do so soon. Asked how restrictive immigration policies or proposals affected their decision to buy or sell a home, 8 percent of respondents said they sold their home in the last year because they were worried they wouldn't be able to stay or work in the U.S. much longer. Seven percent did not purchase a home for the same reason. "I've seen buyers finally get offers accepted, only to cancel the contracts," said Gabriella Stwart, a Redfin agent in Bellevue, Washington. "We're having conversations with professionals working at large companies who are eager to sell or not buying because their visas are expiring or close to it and might not be extended." The survey results reveal that housing markets in certain parts of the country are more likely to be affected by immigration policy. Among respondents in the Los Angeles area, 32.7 percent said they sold or did not buy a home because they were worried they wouldn't be able to work or stay in the country much longer. In Baltimore, 18.5 percent said the same, as well as 16.8 percent in San Francisco. Other findings in this first in a series of three reports on this survey include: 18% of millennials who bought a home in the last year now live in the political minority in their new community. 37% of people of color felt they may have been discriminated against when trying to buy a home, down from 43% in a similar survey in May. "The two data points we have about the perception of discrimination in housing reveal just a snapshot of what amounts to a short moment in our country's long history of racial inequality in housing, and change in the actual incidence of such discrimination is likely to happen only slowly over many years," said Nela Richardson, Redfin chief economist. "It's more likely that that the trend we see in this snapshot reveals an aberration last year around the contentious Presidential election, when racial tensions and anxiety about discrimination were heightened. However, when it comes to where people can live, work and go to school, the idea that more than a third of people of color buying a home still don't believe that their money is as good as anyone else's is a massive problem." To read the full report, complete with data, charts and a full methodology, please click here. About Redfin Redfin is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including theRedfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $50 billion in home sales.
MORE >
Realtor.com's 2018 Housing Insights Showcase Opportunities for Builders at The NAHB International Builders' Show
MORE >
Millennials and Silent Generation Drive Desire for Walkable Communities, Say Realtors
WASHINGTON (December 19, 2017) — It is no longer just millennials propelling interest in walkable communities. According to a new report from the National Association of Realtors®, members of the silent or greatest generation, those born before 1944, also prefer smaller homes in neighborhoods with easy walks to shops and restaurants. The 2017 National Community and Transportation Preference Survey, which polled adults from across the U.S. about what they are looking for in a community, found that 62 percent of millennials and 55 percent of the silent generation prefer walkable communities and short commutes, even if it means living in an apartment or townhouse. Gen-Xers and baby boomers still show a strong preference toward suburban living, with 55 percent of both groups saying that they have no problem with a longer commute and driving to amenities if it means living in a single-family, detached home. "Realtors® understand that when people buy a home, they are not just looking at the house, they are looking at the neighborhood and the community," said NAR President Elizabeth Mendenhall, a sixth-generation Realtor® from Columbia, Missouri and CEO of RE/MAX Boone Realty. "While the idea of the 'perfect neighborhood' is different for every homeowner, more Americans are expressing a desire to live in communities with access to public transit, shorter commutes and greater walkability. Realtors® work tirelessly at improving their communities through smart growth initiatives that help transform public spaces into these walkable community centers." According to the survey, the majority of Americans, 53 percent, would prefer to live in communities containing houses with small yards but within easy walking distance of the community's amenities, as opposed to living in communities with houses that have large yards but they have to drive to all amenities. This up from 48 percent in 2015. However, responders with school-age kids in the home, regardless of their generation, show a greater preference for conventional suburban communities. Sixty percent of all responders with kids in school said they prefer larger homes and yards that require driving, and that number jumps to 63 percent for millennials with kids in school. The survey also found that a majority of Americans, 88 percent, are very or somewhat satisfied with the quality of life in their communities, and 51 percent of those people believe that the walkability of their neighborhood contributes to that quality of life. The report found that women, particularly young women, prioritize walkability and public transit more than older or younger men. Fifty-four percent of young women said that sidewalks and places to take walks is a very important factor in deciding where to live, and 39 percent said the same about having public transit nearby. However, when it comes to a short commute to work, youth was a greater indicator of preference than gender; 49 percent of young women and 48 percent of young men said being within a short commute to work was a very important factor in deciding where to live. While 60 percent of adults surveyed live in detached, single-family homes, 21 percent of those respondents said they would rather live in an attached home and have greater walkability. Sixty percent of those surveyed also said that they would be willing to pay a little or a lot more to live within walking distance of parks, shops and restaurants. When selecting a new home, respondents indicated that they would like choices when it comes to their community's transportation options. Eighty-six percent of survey participants said that sidewalks are a positive factor when purchasing a home, and 80 percent place importance on being within easy walking distance of places. When it comes to respondents' thoughts on transportation priorities for the government, 73 percent indicated that maintaining and repairing roads and bridges should be a high priority, with expanding roads to help alleviate or reduce congestion as the next highest priority, at 54 percent. The survey of 3,000 adult Americans living in the 50 largest metropolitan areas was conducted by American Strategies and Meyers Research in September 2017. The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1.3 million members involved in all aspects of the residential and commercial real estate industries.
MORE >
18 Bitcoins will Buy the Average American Home
MORE >
Tax Bill Raises Concerns about Homeownership; Most Will Change Buying or Selling Plans
Nearly one in three say they will buy a home "faster;" Majority support doubling the standard deduction and the increase in child tax credits SANTA CLARA, Calif., Dec. 21, 2017 -- A new nationwide consumer survey from realtor.com® shows that the Tax Cuts and Jobs Act passed by Congress on Dec. 20 is raising anxiety about owning a home, with a majority of respondents reporting that the tax bill makes them either "concerned" (36.2 percent) or "very concerned" (17.2 percent) about being a homeowner. In contrast, less than a quarter of respondents said that the bill makes them feel "positive" (15.0 percent) or "very positive" (7.2 percent) about homeownership. Only 22.9 percent said that the tax bill would not change their plans to purchase, while 57.1 percent said that the bill would not change their plans to sell. The Tax Cuts and Jobs Act will provide many people with higher after-tax incomes, which is expected to put upward pressure on home prices and mortgage rates. It caps the mortgage interest rate deduction at $750,000 and increases the standard deduction, which will eliminate the tax benefits of homeownership for many people and could decrease sales and home prices in expensive areas. "The bill will have a significant impact on the housing market and overall economy, so it makes sense that people are wondering what it means to them," said realtor.com® Senior Economist Joseph Kirchner, Ph.D. "Some house hunters – particularly wealthy buyers – will see an increase in after-tax income making an already tough housing market even more competitive. This increased demand could drive prices up even higher than they are already. And changes in the deductibility of mortgage interest and state and local taxes could cause challenges for many homeowners." The findings are part of an online survey of 2,324 randomly selected online respondents across the U.S. conducted on behalf of realtor.com® between Dec. 18 and 19. Survey Highlights Most and least favored aspects of the bill Nearly doubling the standard deduction and increasing child tax credits: 26.1 percent positive, 25.4 percent very positive Elimination of the mortgage interest rate deduction on second homes: 12.4 percent very positive, 18.5 percent positive Elimination of the deduction for personal casualty losses: 36.4 percent very negative, 20.1 percent negative The bill will increase the deficit by $1.5 trillion over 10 years, according to the Joint Committee on Taxation: 37.6 percent very negative, 13.8 percent negative Expected impact of implementation "How will the tax bill likely influence your home sale this year?" No impact: 57.1 percent I will sell faster: 13.9 percent Other: 11.4 percent I will sell slower: 10.0 percent I will postpone my home sale: 7.6 percent "What likely impact will the tax bill have on your plans to buy a home this year?" I will buy faster: 29.2 percent No impact: 22.9 percent I will buy slower: 18.5 percent I will purchase a less expensive home: 14.2 percent I will postpone my plans to buy this year: 12.0 percent I will purchase in a different location: 2.3 percent Other: .9 percent About realtor.com® Realtor.com® is the trusted resource for home buyers, sellers and dreamers, offering the most comprehensive source of for-sale properties, among competing national sites, and the information, tools and professional expertise to help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today helps make all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [NASDAQ: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.
MORE >
CFPB Launches New Mortgage Performance Trends Tool for Tracking Delinquency Rates
MORE >
Redfin: Migration Patterns Show More People Leaving Politically Blue Counties
People are moving to purple and red counties, where homes are more affordable SEATTLE — In the first half of 2017, 7.4 percent more people moved out of politically blue counties than to them, according to a new analysis from Redfin, the next-generation real estate brokerage. Red counties saw about 1 percent more people moving in than moving out. Purple counties, where there's a more balanced share of Democrats and Republicans, saw 3.9 percent more migrants moving in than out. Redfin data showing migration of users by political makeup. (Graphic: Business Wire) The trend is even more pronounced in swing states, which saw blue counties lose 9.2 percent more people than they gained, while Republican counties gained 2.3 percent more than they lost. Redfin analyzed Redfin.com user search data, comparing where prospective homebuyers currently live to where they are searching for a home to buy. Redfin's user data covers more than 72 percent of the voting age population and is concentrated in urban metropolises, which gives the company a specific and recent look at where residents of blue counties are looking to move. Counties were classified as "blue" if the Democratic candidate for 2016 won by more than 20 percentage points and vice versa for "red" counties. High housing costs in blue counties are driving this trend. Nationwide, the average home in a blue county costs around $360,000—more than 62 percent more than that of homes in red counties ($223,000). "As blue counties are becoming increasingly less affordable, we see a great number of residents moving to red counties where they can afford the lifestyle they want," said Redfin chief economist Nela Richardson. "At Redfin, we see this as a sign of hope for a less divided country, where people with differing views gain better understanding and tolerance of each other through sheer proximity." However, politics can be a key factor for people in deciding where to move. A Redfin survey found that 41 percent of recent homebuyers reported hesitations about moving to a place where most people have political views different from their own. In contrast, fewer than one in 10 respondents was enthusiastic about moving to a different political climate, with the remaining half neutral. While the evidence that people will continue to self-sort by political beliefs is strong, Redfin contends that the housing affordability crisis in the bluest counties is unprecedented. With no sign of a drastic drop in prices anytime soon, there's an argument that many more people, regardless of politics, will move to where they can buy a comfortable home. To read the report, complete with data, interactive visuals and methodology, click here. About RedfinRedfin is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $50 billion in home sales.For more information or to contact a local Redfin real estate agent, visit www.redfin.com.
MORE >
Realtor.com and Yelp Name the Hottest Hipster Markets in America
MORE >
Consumers are Navigating Tides of the U.S. Real Estate Market in New Homeowner Sentiment Survey
Homeownership remains a priority as people adjust to inventory and price conditions; Boomers and others share why they're holding on to their homes; buyers are getting creative to stand apart from the competition IRVINE, Calif.--Homeownership remains a priority for younger consumers despite tight housing inventory and stiff competition for homes – conditions that are driving up prices in many markets. In Berkshire Hathaway HomeServices' latest Homeowner Sentiment Survey released today, a full 71% of prospective homeowners – a demographic composed largely of Millennials – believe now is a good time to buy a home and 63% remain steadfast in their ideal preferences for a home. Not surprisingly, consumers are gaining a deeper understanding of market conditions: 72% of prospective homebuyers acknowledge that homebuying has become increasingly competitive with a shortage of listings in many markets across the U.S.; 76% of prospective Millennial buyers expressed concern of overpaying for a home; and 76% said finding a competitively priced home is a challenge. Several factors have contributed to the current housing shortage in many markets. For starters, new construction ground to a halt during the Great Recession while population growth and household formation continue to blossom. Builders are increasingly hitting stride on new construction projects in a wider range of price points but demand still outstrips supply in markets such as Miami, Philadelphia, Chicago, Los Angeles and San Francisco. The vast Baby Boomer generation has contributed to the shortage as many are reluctant to sell. In the survey, 73% of Boomers said they hesitate to list their homes because home values are rising. Another factor reflects convenience. Four out of five Boomers said they would rather not shop for a new property at the moment. "The world seems to be waiting on Millennials to make a move in all facets of their lives," said Gino Blefari, president and CEO of Berkshire Hathaway HomeServices. "Our data suggests younger generations remain very positive about homeownership and remain in the game in markets where competition for good, reasonably priced homes can be tough." Blefari said rising home prices likely will move more Boomers off the fence as they retire, downsize and move to other markets. "Home values have mostly recovered from the downturn and homeowners may have more equity than they're aware," he explained. "Equity gives people latitude to make important changes in their lives." Buyers Stand Apart with Creativity Increased competition has sparked creativity among consumers looking to stand apart in the market. 45% of prospective homeowners say they are willing to cover closing costs. 36% of Millennial buyers will send a personal letter to sellers. 58% of Millennials said they would plunk down more of an earnest deposit to show their commitment to sellers. 31% of Millennials indicated they would offer above asking price to secure their home. "Sure, it can be competitive to secure a good, reasonably priced home," Blefari said. "To win, consumers must work with a skilled agent who understands the market and will recommend the best ways to secure a home at a fair price." Fueling Optimism Overall, consumer favorability toward real estate and its prospects remains high, as lower mortgage rates and the prospects of rising home values continue to buoy enthusiasm. A full 72% of current homeowners expressed a favorable feeling toward the real estate market, with 51% pointing to low mortgage rates and 44% citing price appreciation for their optimism. Respondents also showed a greater understanding of mortgage rates with 61% of prospective buyers and 63% of current homeowners expressing confidence in their knowledge of current rate levels, jumps of 2 and 4 percentage points, respectively, from the spring Homeowner Sentiment Survey. "Historically low mortgage rates continue making homeownership achievable for many Americans," said Blefari. "We believe mortgage rates will remain within a range of current low levels for the foreseeable future." Berkshire Hathaway HomeServices Homeowner Sentiment Survey Methodology Interviews with 2,518 respondents were conducted online by Edelman Intelligence in July 2017. Respondents captured were either current homeowners (individuals who currently own a home as a primary residence) or prospective homeowners (individuals who do not currently own a home and are likely to buy a home as their primary residence in the next six months). The margin of error is +/-2.18% for current homeowners and +/- 4.38% for prospective homeowners. The full survey details are available upon request. About Berkshire Hathaway HomeServices Berkshire Hathaway HomeServices, based in Irvine, CA, is a real estate brokerage network built for a new era in real estate. The network, among the few organizations entrusted to use the world-renowned Berkshire Hathaway name, brings to the real estate market a definitive mark of trust, integrity, stability and longevity. Visit berkshirehathawayhs.com.
MORE >
Home Prices Rising Twice as Fast in U.S. Cities with Highest Natural Hazard Risk Than in Lowest-Risk Cities
MORE >
Redfin Data Reveals Single Women Build Less Home Equity Over Time Than Single Men
New Orleans Was the Only Metro Where Women Fared Better Than Men; Single Women Built 8 Percent More Home Equity Than Single Men Over Five Years SEATTLE — For every dollar of home equity single men earned over five years, single women earned just 92 cents, according to a new report by Redfin, the next-generation real estate brokerage. Redfin looked at 199,387 homes sold in 18 of the largest metros in 2012, of which 39.9 percent were purchased by single women. On those home purchases, women earned a median $171,313 of home equity over five years compared to $186,403 of equity earned by men—a difference of $15,090 or 8.1 percent. To calculate home equity, Redfin added the initial equity from the down payment and the principal paid on the mortgage to the appreciation of the home since purchase date. Appreciation was determined by subtracting the original purchase price of the home from the current Redfin Estimate. New Orleans, LA was the only metro where women actually earned more home equity than men. Over the five-year period, single women there earned $8,784 or 8 percent more home equity than single men. Omaha, NE was the next best with women earning 0.5 percent less equity than men. Portland, OR (0.8% less); Denver, CO (2.0% less); and Oakland, CA (2.0% less) rounded out the top five best places for single female home equity. Of all the metros Redfin looked at, the gender equity gap was largest in Seattle, WA, where women earned 6.3 percent or $20,983 less equity over the five-year period. Columbus, OH (6.2% less); Baltimore, MD (6.2% less); San Francisco (6.0% less); and San Diego (5.8% less) topped the list of metros where single women fare worse compared to single men. The disparity in home equity can be attributed to several different factors including the pay gap, lower down payments made by women and higher student debt among women. "Despite differences in equity appreciation, purchasing a home can help level the playing field between men and women," said Redfin chief economist Nela Richardson. "Homeownership remains the single biggest engine for middle-class workers to create wealth over the long term. In addition to setting labor standards that encourage pay equity, more can and should be done at the federal and local levels to support female homeownership through affordable housing policies like downpayment assistance." To read the full report, complete with tips for single women homebuyers, click here. About Redfin Redfin is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $50 billion in home sales.
MORE >
New Survey from Cartus Shows Employee Relocation Trends are Changing Shape
MORE >
Redfin Migration Report: Home Affordability Continued to Shape Migration Currents as Homebuyers Looked to Leave Expensive Coastal Cities in the Second Quarter
The Bay Area, New York and Los Angeles ranked highest for net outflow of home searchers SEATTLE — Twenty-one percent of Redfin.com users in the second quarter of 2017 searched mostly for homes outside the metro where they reside, slightly up from 20 percent in the first quarter, according to the latest migration report from Redfin, the next-generation real estate brokerage. The Redfin Migration Report analyzed a sample of more than one million Redfin.com users searching for homes across 75 metro areas during the peak of the homebuying season from April through June. Redfin used IP addresses to identify the metros where home searchers likely reside and compared that to where users were searching for homes. While 79 percent of Redfin.com home searchers looked to stay in their current metro, several key trends emerged among those looking to move to another metro: There continued to be significant migration within the state of California, with the most common search patterns being buyers looked to leave the Bay Area and Los Angeles, heading to Sacramento and San Diego. Several Rust Belt metros saw more than a quarter of local homebuyers looking at homes outside their metro with Chicago being the top destination. Metros in the South and the Sunbelt remained popular destinations for migrants from expensive coastal cities. Chicago, Boston and Seattle again had the highest share of residents looking to stay in their current metros. "Home searches are early indicators of home sales. The migration patterns in our report closely correlate to actual purchases made by Redfin home-buying customers within and across metros," said Taylor Marr, a Redfin data scientist who conducted the underlying research. "Buyers who can't afford a home in their current city are exploring what is available elsewhere," said Marr. "We are already seeing strong buyer demand and competition in mid-tier cities like Sacramento, Phoenix and Atlanta. As home searches evolve into purchase offers and home sales, we anticipate prices and competition will continue to grow in those markets."     To read the full report, complete with an interactive data map of metro-to-metro migration trends and full methodology, click here. About Redfin Redfin is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $50 billion in home sales.
MORE >
Realtors® Report Finds 11 Percent Increase in Commercial Member Income, 19 Percent Increase in Sales Transaction Volume
MORE >
84 Percent of Americans See Homeownership as Good Investment, Affordability a Growing Concern
WASHINGTON (July 12, 2017) — According to the National Association of Realtors®' 2017 National Housing Pulse Survey, concerns over housing affordability show clear demographic divides especially among unmarried and non-white Americans. More than five out of 10 unmarried and non-white Americans view the lack of available affordable housing as a big problem, compared to only 40 percent of married and white Americans. The survey, measures consumers' attitudes and concerns about housing issues in the nation's 25 largest metropolitan statistical areas and found that 84 percent of Americans now believe that purchasing a home is a good financial decision - the highest number since 2007. Yet six in 10 said that they are concerned about affordability and the rising cost of buying a home or renting in their area. Housing affordability was ranked fourth in the top-five issues Americans face in their area behind the lack of affordable health care; low wages and debt making it hard to save; and heroin and opioid drug abuse, and ahead of job layoffs and employment. Nationally, 44 percent of respondents categorized the lack of available affordable housing as a very big or fairly big problem. In the top 25 densest markets, more than half see the lack of affordable housing as a big problem, an increase of 11 percentage points from the 2015 National Housing Pulse Survey. Low-income Americans, renters and young women most acutely feel the housing pinch. There is also greater concern about affordable housing among the working class (65 percent) than for public servants such as teachers, firefighters or police (55 percent). "Despite the growing concern over affordable housing, this survey makes it clear that a strong majority still believe in homeownership and aspire to own a home of their own. Building equity, wanting a stable and safe environment, and having the freedom to choose their neighborhood remain the top reasons to own a home," says NAR president William E. Brown, a second-generation Realtor® from Alamo, California and founder of Investment Properties. Eight out of 10 believe that the most important financial reason to own a home is that the money spent on housing goes towards building equity rather than to a property owner. Paying off a mortgage and owning a home by the time you retire is the next most important financial reason for buying a home followed by ownership being a good investment opportunity to build long-term wealth and increase net worth. When asked about the amount of down payment needed for a mortgage, four in 10 respondents believe that a down payment of 15 percent or more is necessary. Seventy percent feel that a reasonable down payment should be 10 percent or less, according to the survey. Misperceptions about higher down payment requirements were most prevalent in bigger cities and by older adults. Apparent confusion about down payment requirements most likely added to non-owners concerns about affordability. NAR's Profile of Home Buyers and Sellers found that the median down payment for first-time buyers has been 6 percent for three straight years and 14 percent for repeat buyers in three of the past four years. Over 50 percent of respondents strongly agree that homeownership helps build safe and secure neighborhoods and provides a stable and safe environment for children and family members. The survey also found that four in 10 Americans say paying their rent or mortgage is a strain on their budget. Those most likely to say their mortgage is a strain have incomes under $60,000, are residents of New York City or the Pacific coast, are under the age of 50 and non-white. Just over half, 51 percent, of respondents said they were willing to strain their budget for a better living environment and would pick a neighborhood with better schools and job opportunities even if housing prices are a bigger strain on their budget. Those most willing to strain their budget are disproportionately married, upper income and living in the suburbs. Overspending on homes is more prevalent in Northeastern cities (36 percent), the Mountain West (34 percent) and the Pacific coast (33 percent). The 2017 National Housing Pulse Survey is conducted by American Strategies and Myers Research & Strategic Services for NAR's Housing Opportunity Program, which aims to position, educate and help Realtors® promote housing opportunities in their community, in both the rental and homeownership sectors of the market. The telephone survey polled 1,500 adults nationwide and has a margin of error of plus or minus 2.5 percentage points. The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
MORE >
71 Percent of Homeowners Believe It's a Good Time to Sell; Economic and Financial Confidence Dips: Realtors® HOME Survey
MORE >
NAR Midyear Forecast: Existing-Home Sales Poised to Climb 3.5 Percent in 2017
  WASHINGTON (May 18, 2017) – The multi-year stretch of robust job gains along with improving household confidence are expected to guide existing-home sales to a decade high in 2017, but supply and affordability headwinds and modest economic growth are holding back sales and threatening to keep the nation's low homeownership rate subdued. That's according to speakers at a residential real estate forum here at the 2017 REALTORS® Legislative Meetings & Trade Expo. Lawrence Yun, chief economist of the National Association of Realtors®, presented his 2017 midyear forecast and was joined onstage by Jonathan Spader, senior research associate at the Joint Center for Housing Studies at Harvard University, and Mark Calabria, chief economist and assistant to Vice President Mike Pence. Spader's presentation addressed past and projected movements in the homeownership rate, and Calabria dove into why reversing weak productivity and the low labor force participation rate are necessary to boost the economy. The first quarter was the best quarterly existing sales pace in exactly a decade (5.62 million), and Yun expects activity to stay on track and finish around 5.64 million – the best since 2006 (6.47 million) and 3.5 percent above 2016. With several metro areas seeing hefty price growth, the national median existing-home price is expected to rise around 5 percent this year. "The housing market has exceeded expectations ever since the election, despite depressed inventory and higher mortgage rates," said Yun. "The combination of the stock market being at record highs, 16 million new jobs created since 2010, pent-up household formation and rising consumer confidence are giving more households the assurance and ability to purchase a home." Although sales are currently running at a decade high, Yun believes the healthy labor market should be generating even more activity. However, listings in the lower- and mid-market price range are scant and selling fast, and homebuyers are discovering they can afford less of what's on the market based on their income. "We have been under the 50-year average of single-family housing starts for 10 years now," said Yun. "Limited lots, labor shortages, tight construction lending and higher lumber costs are impeding the building industry's ability to produce more single-family homes. There's little doubt first-time buyer participation would improve and the homeownership rate would rise if there was simply more inventory." Housing construction has been uneven so far this year, but Yun does anticipate starts to jump 8.4 percent to 1.27 million. However, this is still under the 1.5 million new homes needed to make up for the insufficient building in recent years. New single-family home sales are likely to total 620,000 this year, up 8.4 percent from 2016. Addressing the nation's low homeownership rate, Spader said substantial uncertainty exists about its future direction. He cited foreclosure-related housing exits from older adults and delayed buying from younger households as the primary causes in the downward trend since the downturn. He said the good news is that while there was growth in homeowner households in 2016, an aging population, changes in family type and increasing diversity by race and ethnicity all pose as headwinds going forward. Spader's 2025 projection puts the homeownership rate in a range of 61.0 – to – 65.1 percent. "Stagnant household incomes, rising rental costs, student loan debt and limited supply have all contributed to slower purchasing activity," said Spader. "When the homeownership rate stabilizes, there will be an increase in homeowner households. Young and minority households' ability to reach the market will play a big role in how much the actual rate can rise in coming years." Calabria's presentation focused on his thoughts of what can be done to jump-start economic growth. He attributed prolonged weak productivity and the low labor participation rate as the primary reasons why the current economic expansion is the slowest since World War II. "A strong labor market will drive a strong housing market, but you can't have a strong housing market without a strong economic foundation," said Calabria. "The recovery has been uneven with roughly 70 counties making up roughly half of all job growth. The White House's proposed plans to cut corporate and individual tax cuts will help large and small businesses grow, hire and ultimately contribute to more households buying homes as more money goes into their pockets." Although Yun said economic growth in the first quarter was "a huge disappointment" at 0.7 percent (first estimate), he anticipates that an increase in consumer spending and more homebuilding should provide enough fuel for gross domestic product to finish slightly higher, at 2.2 percent, than a year ago (1.6 percent). Yun believes the rising interest rate environment is here to stay as the Federal Reserve slowly begins unwinding its balance sheet. He foresees two more short-term rate hikes by the end of this year and for mortgage rates to average around 4.30 percent before gradually climbing towards 5.0 percent by the end of 2018. "There was a lot of uncertainty at the start of the year, but a very strong first quarter sets the stage for a modest sales increase compared to last year," said Yun. "However, prices are still rising too fast in many areas and are outpacing incomes. That is why housing starts need to rise to alleviate supply shortages. There will be more sales if there's a meaningful bump in new and existing inventory." Members of the media are invited to attend the upcoming Sustainable Homeownership Conference on June 9 at University of California's Memorial Stadium in Berkeley. In celebration of Homeownership Month, the conference brings together experts to examine housing trends and real estate's positive impacts. 2017 NAR President Bill Brown, NAR Chief Economist Dr. Lawrence Yun and Berkeley Hass Real Estate Group Chair Ken Rosen are among the prominent experts scheduled to speak. To register, click here. The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
MORE >
Realtor.com® Consumer Survey Identifies Home Shoppers' Preferences in 2017
MORE >
Redfin Survey: Supply Shortage is Home Sellers' Greatest Challenge This Year
SEATTLE--The greatest challenge for home sellers this year is finding another home to buy, according to a survey by Redfin, the next-generation real estate brokerage In a March survey of more than 800 Redfin real estate agents, 65.6 percent said that low inventory was the greatest challenge for sellers in their markets. "It's a seller's market, but the catch is, most sellers need to buy as well," said Eileen Lorway, a Redfin real estate agent in the Boston area. "This is a conversation I have with many clients at our first meeting. We discuss options like 'seller to find suitable housing' contingencies for the sale contract, 'purchase contingent on sale of current home' options for the buy offer, rental options, stay-with-family options and bridge loans. Sellers who are buying need to think outside the box a little bit. It's not easy, but we often do end up closing on sale and purchase on the same day." "I also encourage sellers who are also buyers to think about selling first. They should consider temporary rental options, or moving in with relatives after they sell. Then they will be able to take the time they need to find their dream house, know exactly what they'll have to work with financially, and won't end up adding unnecessary contingencies to offers, which will give them a better chance to get the home," said Lorway. Most agents reported that homes were selling faster than this time last year and that competition was more intense. Among respondents, 57.2 percent had already been involved in at least one instance of a home receiving 10 or more offers this year. And only 1.8 percent of agents had yet to be involved in a bidding war. Despite Intense Competition, Buyers Are Having Success with Less than 20 Percent Down Half of agents reported that the typical down payment for successful buyers in their market was less than 20 percent, meaning there are other ways to make an offer competitive, like working with a reputable local lender who can guarantee to the seller's agent that the loan will be approved quickly, and building a rapport with the seller. "I recently had an FHA-backed offer with 3.5 percent down beat out four other offers, each of which had conventional 20-percent down loans," said Redfin real estate agent Tim Zielonka of Chicago. "The sellers were at the showing. I introduced them to the buyers and pointed out that both were huge enthusiasts of both vintage bicycles and classic cars, which put them at ease with one another and enabled them to form a natural connection. Had they not discovered this shared interest, my clients may not have gotten the property." To read the full report, complete with more analysis, charts, detailed survey results and methodology, please click here. About Redfin Redfin is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $40 billion in home sales through 2016.
MORE >
Canadian Home Searches Spike in Response to U.S. Election Results
MORE >
Realtors Can Gain a Competitive Edge by Understanding Real Estate’s Top Issues in 2017
  ORLANDO, Fla. (November 6, 2016) – Housing affordability, demographic shifts and e-commerce's impact on retail spaces are among the top pressing issues Realtors® should be knowledgeable about heading into 2017. That's according to a forum on the emerging trends affecting real estate at the 2016 REALTORS® Conference & Expo. Providing their timely insights on residential and commercial real estate were two speakers with leadership roles from the Counselors of Real Estate®: Scott Muldavin, 2017 chair, and Peter Burley, chair of the group's external affairs committee. For the past five years, the committee has identified and released a top 10 list of the issues and developments that will define the real estate industry in the upcoming year. Muldavin and Burley launched into the interactive discussion by talking about the current global and domestic opportunities and threats. Geopolitical and economic uncertainty, volatility in the energy markets and weaker trade volume could slow U.S. growth and lead to fewer job gains in the year ahead. These set of dominoes – if prominent and prolonged – could have the potential to eventually trickle down and impact residential housing. "The good news is that even with U.S. economic expansion at around 2 percent, the U.S. is still outperforming other major countries around the world," said Muldavin. Burley pointed out that demographic shifts are also poised to transform the real estate industry now that millennials have taken over baby boomers as the largest generation. With a growing share of millennials now entering their mid-30s, an increasing number of them will be getting married and eventually having children. This points to strengthening demand for buying a home. Meanwhile, baby boomers' tendencies to age in place creates opportunities for commercial real estate in the form of medical and assisted living facilities development. On the topic of housing affordability, Burley said the lack of new supply coming onto the market has made purchasing a home more expensive. Furthermore, younger and older buyers are competing for the minimal available inventory in many of the same places. Adding more pressure is that while apartment construction has ramped up, rents are still outpacing incomes in many communities. This only adds to the pressure of aspiring homebuyers trying to save enough money for a down payment. "Home prices have outstripped incomes and it makes it very challenging for millennials looking to buy," Burley said. "As a result, rental demand is expected to remain very strong." The added pressure on suburbs to become more urbanized was also discussed during the session. According to Burley, cities are expanding as people prefer to live in or immediately near urban cities. Those living in the suburbs still want to be within distance of walkable areas with a plethora of activities and unique experiences. This has resulted in the suburbs striving to become more urban-like with mixed-used developments and office space. "Suburban areas are adding urban amenities so that there's an environment where people can live, work and play right outside of the core part of the city," added Burley. In the commercial real estate retail sector, the rapid rise in online shopping has led to major retailers adjusting accordingly by closing stores and shrinking their store footprints. One emerging trend in the industry is smaller "showroom" space with an online component where consumers can buy at the store and have the item shipped to their home within a few days. Another shift is that many new commercial construction projects are mixed-use developments with a variety of retail, food and housing. Muldavin said that there's huge opportunity in secondary and tertiary markets for this type of development because retailers strive to be near walkable residential areas. According to CRE, the full top 10 issues affecting real estate going into 2017 are: The changing global economy Debt capital market retrenchment Demographic shifts Densification/urbanization The political environment Housing affordability and credit constraints The disappearing middle class Energy The sharing and virtual economy The rise of experiential retail "Realtors® are futurists in the sense that you're advising someone what may happen in the next few years as they're in the process of buying or selling a home," Muldavin said to the crowd full of Realtors® in attendance. "Understanding these top 10 issues can increase your value to your clients while giving you a competitive advantage within your market." The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.
MORE >
71 Percent Believe Student Debt Delays Homeownership
MORE >
NAR Generational Survey: Millennials Increasingly Buying in Suburban Areas
  WASHINGTON (March 9, 2016) – A growing share of homebuyers are millennials, and more of them are purchasing single-family homes outside of urban areas, according to the2016 National Association of Realtors® Home Buyer and Seller Generational Trends study, which evaluates the generational differences1 of recent home buyers and sellers. The survey additionally found that although student loan debt is more prevalent among millennial buyers, they aren’t the generation with the largest student debt balances. The share of millennials buying in an urban or central city area decreased to 17 percent (21 percent a year ago) in this year’s survey, and fewer of them (10 percent) purchased a multifamily home compared to a year ago (15 percent). Overall, the majority of buyers in all generations continue to purchase a single-family home in a suburban area, and the younger the buyer, the older the home they purchased. Lawrence Yun, NAR chief economist, says while millennials may choose to live in an urban area as renters, the survey reveals that most aren’t staying once they’re ready to buy. “The median age of a millennial homebuyer is 30 years old, which typically is the time in life where one settles down to marry and raise a family,” he said. “Even if an urban setting is where they’d like to buy their first home, the need for more space at an affordable price is for the most part pushing their search further out.” Adds Yun, “Furthermore, limited inventory in millennials’ price range, minimal entry-level condo construction and affordability pressures make buying in the city extremely difficult for most young households.” For the third straight year, the largest group of recent buyers were millennials, who composed 35 percent of all buyers (32 percent in 2014), more than the combined amount of younger and older boomers (31 percent). Generation X were 26 percent of buyers, and the Silent Generation made up 9 percent. Financing the Purchase This year’s survey underlined the challenges debt had on some buyers’ ability to purchase a home. While debt delayed saving for a down payment for a median of four years for all buyers, the number of years postponed increased from three years for millennials to six years for older boomers. Among the share of buyers who said saving for a down payment was the most difficult task, millennials were most likely to cite student debt (53 percent) as the debt that delayed saving, while credit card debt was indicated more by Gen X (44 percent) and younger boomers (36 percent). According to Yun, student debt is likely impacting more than just the millennial generation’s ability to buy a home. “Whether it’s from financing their own education or borrowed for their children, it’s somewhat surprising to see a higher median amount of student debt among Gen X ($28,000) and younger boomer buyers ($29,100) compared to millennials ($25,000),” adds Yun. “One of the many reasons housing supply has been subdued in recent years may be because a segment of homeowners have decided to delay trading up or moving down in order to pay down their debt, including from student loans.” This year’s study found that 86 percent of all buyers in the past year financed their purchase (88 percent a year ago). Younger buyers who financed their home purchase most often relied on savings for their down payment, whereas older buyers were more likely to use proceeds from the sale of a primary residence. Overall, the median downpayment ranged from 7 percent for millennial buyers to 21 percent for older boomers and the Silent Generation. Nearly a quarter (23 percent) of millennials cited a gift from a relative or friend – typically their parents – as a source of their down payment. Characteristics of Buyers The median income of millennial homebuyers in this year’s survey was $77,400 ($76,900 in 2014), and they typically bought a 1,720-square foot home costing $187,400 ($180,900 a year ago). The typical Gen X buyer was 42 years old, had a median income of $104,700 ($104,600 a year ago) and typically purchased the largest home compared to other generations (2,200-square feet), costing $263,200 ($250,000 last year). Generation X buyers (71 percent) were the most likely to be married, younger boomers had the highest share of single female buyers (20 percent), and 12 percent of millennial buyers were an unmarried couple. This year’s survey found that the millennial generation’s desire to own a home of their own as the primary reason for their purchase is increasing, up to 48 percent (39 percent a year ago). The desire for a larger home was the highest among Gen X buyers (16 percent), and older boomers (at 20 percent) were the most likely to buy because of retirement. Searching for and Buying a Home Nearly all buyers predominantly used the Internet and a real estate agent during the home search process. Eighty-seven percent of millennials and Gen X buyers used an agent, and they were also the most likely to use mobile or tablet applications and mobile or tablet search engines during their search. Gen X buyers were the most likely to visit an open house. NAR President Tom Salomone, broker-owner of Real Estate II Inc. in Coral Springs, Florida, says buyers of all ages continue to seek the advice and guidance of Realtors®. “Supply shortages, strong competition and rising home prices in today’s market can make buying a home very stressful,” he said. “While the Internet is the initial go-to destination to search for available listings, consumers want the expertise and insights of a Realtor® to help them find the right home within their budget.” Gen X buyers represented the largest share of single-family homebuyers at 89 percent (85 percent a year ago), and younger boomers were the most likely to purchase a townhouse or row house (9 percent). A combined 3 percent of millennial buyers bought an apartment, condo or duplex in a building with two or more units (7 percent a year ago). Among the biggest factors influencing neighborhood choice, millennials were most influenced by the quality of the neighborhood (63 percent) and convenience to jobs (60 percent); convenience to schools was most desired by Gen X buyers, and proximity to friends and family by the Silent Generation. Characteristics of Sellers Those more likely to be trading up (Gen X homeowners) or trading down (older boomers) represented the largest share of sellers in the past year, at 25 percent and 24 percent, respectively. Millennials – also likely to be move-up buyers – stayed in their home the shortest amount of time before selling (five years). Even though younger sellers were more likely to need a larger home or move because of job relocation, older boomers were far more likely to move further away. Sellers overall moved a median distance of 20 miles, with older boomers traveling the furthest at 75 miles. Across every generation at 88 percent or above, sellers overwhelmingly used a real estate agent or broker to sell their home. When asked what sellers wanted most from their real estate agent, younger sellers were more likely to want their agent to help price their home competitively or sell within a specific timeframe, whereas help finding a buyer was desired more by younger and older boomers. In July 2015, NAR mailed out a 128-question survey using a random sample weighted to be representative of sales on a geographic basis to 94,971 recent home buyers. The recent home buyers had to have purchased a primary residence home between July 2014 and June 2015. A total of 6,406 responses were received from primary residence buyers. After accounting for undeliverable questionnaires, the survey had an adjusted response rate of 6.7 percent. All information is characteristic of the 12-month period ending in June 2015 with the exception of income data, which are for 2014. The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.
MORE >
Commercial Real Estate Experts: Moderate Expansion, Easing Prices Expected in 2016
MORE >
Swanepoel T3 Group Releases 11th Annual Trends Report
February 1, 2016 - Orange County, Calif.—Swanepoel T3 Group has, for over 18 years, identified, researched and analyzed over 125 changes and innovations impacting real estate. T3 provides the most comprehensive and largest number of studies in the residential real estate brokerage industry and publishes the findings through a suite of reports, including the annual Swanepoel Trends Report, the Swanepoel Power 200, the T3 Tech Guide, and the DANGER Reports. In its 11th year, the 2016 edition of the Swanepoel Trends Report (RealSure Publishing; softcover; 188 pages, 11 chapters) is a far-reaching report that focuses on the shaping of the home buying process. The Report this year takes a deep dive into predictive analytics, societal housing shifts, half a dozen new technology innovations, the re-engineering of the MLS, and setting the correct expectations with consumers. The full list of the Top 10 Trends for 2016 are: Trend 10 - What Millennials Really Want in Housing Trend 9 - Setting Appropriate Consumer Experiences Trend 8 - Competing with New Lead Conversion Rules Trend 7 - The Arrival of Smart Home Technologies Trend 6 - How Portals Worldwide are Reshaping the Real Estate Industry Trend 5 - Battle Continues: Independent Contractor Status vs. Employees Trend 4 - Rebuilding the Real Estate Enterprise with New Technology Trend 3 - Defending Your Turf with Predictive Analytics Trend 2 - How Organized Real Estate is Reinventing an Industry Trend 1 - Innovating and Managing Real Estate Big Data The number one trend in 2016 is how "Project Upstream" is challenging the current property listing process and strategy, and how this initiative plans to consolidate big data and simplify the transactional process of marketing a home for sale. The Report outlines an industry-wide "Implementation Roadmap" for all participants including UpstreamRE, the company tasked to manage the implementation; REALTORS Property Resource®, the company commissioned to build the system; the National Association of REALTORS®, the company funding the project; and the brokers and agents who will ultimately be the users of the system. Stefan Swanepoel, CEO of the Swanepoel T3 Group, New York Times best-selling author, and author of 30+ books said, "real estate history is littered with examples of great ideas that suffered poor implementation. Let's hope this does not become another footnote of failure." Swanepoel added, "Project Upstream addresses some of the biggest conflicts in the residential real estate brokerage industry but it has major hurdles to overcome, and we will be tracking the project closely." The Report, without mentioning any candidates, or picking sides, provides a refreshing analysis how the upcoming presidential election will impact the industry. "Whichever party-Republican or Democratic-wins the election, the new president will impact the real estate industry for more than just the next four years, most likely for more than a decade to come. We investigate the most likely scenarios and key issues to watch." To obtain your copy of the 11th annual Swanepoel Trends Report, visit retrends.com. About Swanepoel T3 Group The Swanepoel T3 Group is the leading real estate trends research company and has since 1998 published various awarding winning books and reports including: annual Swanepoel Trends Report, the annual Swanepoel Power 200, the T3 Tech Guide, the industry-wide studies known as the D.A.N.G.E.R. Report (Definitive Analysis of Negative Game Changers Emerging in Real Estate). The group also hosts the annual T3 Summit (USA), annual T3 Canadian Summit, and the annual T3 Fellows Retreats.
MORE >
Coldwell Banker Real Estate Survey Finds Nearly Half of Americans Will Have Smart Home Technology by the End of 2016
MORE >
Buying More Affordable Than Renting in 58 Percent of U.S. Markets According to 2016 Rental Affordability Analysis
IRVINE, CA--(December 23, 2015) - RealtyTrac®, the nation's leading source for comprehensive housing data, today released its 2016 Rental Affordability Analysis, which shows that buying is still more affordable than renting in 58 percent of U.S. housing markets despite home price appreciation outpacing rent growth in 55 percent of markets. The report also shows that the rise in rents is outpacing weekly wage growth in 57 percent of markets. The analysis included recently released rental data from the U.S. Department of Housing and Urban Development, wage data from the Bureau of Labor Statistics along with public record sales deed data from RealtyTrac in 504 counties with a population of at least 100,000 (see full methodology below). "Renters in 2016 will be caught between a bit of a rock and a hard place, with rents becoming less affordable as they rise faster than wages, but home prices rising even faster than rents," said Daren Blomquist, vice president at RealtyTrac. "In markets where home prices are still relatively affordable, 2016 may be a good time for some renters to take the plunge into homeownership before rising prices and possibly rising interest rates make it increasingly tougher to afford to buy a home." Rents rising faster than wages, slower than home prices Rents on three-bedroom properties will increase an average of 3.5 percent in 2016 compared to 2015 across all 504 counties analyzed, according to the HUD data. Meanwhile, average weekly wages in the second quarter of 2015 (the most recent wage data available) were up an average of 2.6 percent from a year ago and median home prices were up an average of 5.0 percent in the third quarter of 2015 compared to a year ago across all 504 counties. Markets with the biggest increase in rents are counties in Sumter, South Carolina, Burlington, North Carolina, Goldsboro, North Carolina, Houma-Thibodaux, Louisiana, and Missoula, Montana. Among counties with a population of at least 1 million, those with the biggest increases in rents are Santa Clara County, California in the San Jose metro area (up 9.3 percent); Travis County, Texas in the Austin metro area (up 8.0 percent); San Diego County, California (up 7.5 percent); Cook County, Illinois in the Chicago metro area (up 7.3 percent); and Bexar County, Texas in the San Antonio metro area (up 7.2 percent). Markets with the biggest decrease in rents are counties in Johnson City, Tennessee, Abilene, Texas, California-Lexington Park, Maryland, Ithaca, New York, and Roseburg, Oregon. Among counties with a population of at least 1 million, those with the biggest decreases in rents are Suffolk and Nassau counties in Long Island, New York (both down 6.8 percent); Clark County, Nevada in the Las Vegas metro area (down 1.4 percent); Sacramento County, California (down 0.4 percent); and Contra Costa County, California in the San Francisco metro area (down 0.3 percent). Buying more affordable than renting in 58 percent of markets Across all 504 counties analyzed, average wage earners will need to spend 37 percent of their income on rents for a three-bedroom property in 2016, slightly less than the 38 percent of income to make monthly house payments -- assuming a 3 percent down payment and including mortgage, taxes, insurance and mortgage insurance -- on a median priced home on average across all 504 counties. Renting was more affordable than buying in 213 of the 504 counties analyzed (42 percent), including counties in Los Angeles, Houston, San Diego, New York City (Brooklyn), and Dallas. Buying was more affordable than renting in 291 counties (58 percent) including counties in Chicago, Phoenix, Miami, the Inland Empire of Southern California, Las Vegas and Detroit. "Low interest rates and reasonable housing prices make South Florida ripe for buying. Our rental rates have risen dramatically, now with low down payment options available it is a good time to lock in long term low interest rates," said Mike Pappas, CEO and president of the Keyes Company, covering the South Florida market. "A strong local economy and lack of inventory have continued to drive prices higher and higher. That said, the further you travel from the job centers, there are some sub-markets where it's actually more affordable to buy than rent," said Matthew Gardner, chief economist at Windermere Real Estate, covering the Seattle market where it is more affordable to rent than buy. "But as our transit infrastructure improves over time, I believe the pace of home price growth will pick up in these areas too." Least Affordable and Most Affordable Rental Markets The least affordable markets for rents (where average wage earners need to spend the highest percentage of their income on renting a three-bedroom property) in 2016 are counties in Honolulu, Washington, DC, New York City, and the Northern California metros of Salinas, Santa Cruz and San Francisco. In all of the top five least affordable rental markets, average rents represent more than 60 percent of average wages. The most affordable markets for rents in 2016 are counties in Huntsville, Alabama, Peoria, Illinois, Davenport, Iowa, Atlanta, Georgia, and Pittsburgh, Pennsylvania. In all of the top five most affordable rental markets, average rents represent 25 percent or less of average wages. "Northern Colorado is experiencing similar increases in property values and rents as the Denver metro area. One of the largest factors to consider as a renter is when to jump on the home buying wagon and begin investing in what is for many the largest assets anyone can own," said Al Detmer, broker associate at RE/MAX Alliance, covering the Greeley market in Colorado. "If a buyer waits just one year to purchase they can loose buying power combined with a simple quarter point interest hike and now what they could have purchased similar to what their renting in size fit and finish just went out the window. Renters now is the right time to buy!" Best and Worst Rental Markets for Millennials Out of 52 counties where the share of the millennial population (born between 1979 and 1993) increased at least 10 percent during the housing crisis, from 2008 to 2013, the most affordable were Fulton County, Georgia, in the Atlanta metro; Durham County, North Carolina in the Durham metro; Harris County, Texas in the Houston metro; Dallas County, Texas, in the Dallas metro; and Mecklenburg County, North Carolina, in the Charlotte metro. Average rents accounted for 27 percent or less of average wages in all of the top five most affordable rental markets for millennials. Other "millennial magnet" markets where average rents represent less than 30 percent of average wages included counties in Columbus, Ohio; St. Louis; Indianapolis; Milwaukee; Kansas City; Nashville; Little Rock, Oklahoma City; Minneapolis; Des Moines; Richmond, Virginia; Portland; and Philadelphia. Among the 52 counties with at least a 10 percent increase in the share of millennials between 2008 and 2013, the least affordable for renters were Kings County, New York (Brooklyn); Queens County, New York (Queens); Virginia Beach City, Virginia; Onslow County, North Carolina in the Jacksonville metro; and San Francisco County. Average rents in all five of these markets require more than 43 percent of average wage earner's income. Other "millennial magnet" markets where rents represent more than one-third of average wages include counties in Panama City, Florida; Seattle; Clarksville, Tennessee; Orlando; Fayetteville, North Carolina; Portland; Charleston, South Carolina; Baltimore; Denver, New Orleans; and Austin, Texas. "The aggressive growth of companies like Amazon, and the arrival of several Silicon Valley newcomers like Facebook, Google, and Apple have made Seattle an increasingly popular spot for Millennials. Not only do many of these Millennials have stable employment, but strong job prospects going forward, and a rosy outlook for future salary growth," continued Gardner. Methodology For this report, RealtyTrac looked at 50th percentile average rental data for 3-bedroom properties in 2016 from the U.S. Department of Housing and Urban Development, along with Q2 2015 average weekly wage data from the Bureau of Labor Statistics (most recent available) and year-to-date home price data from RealtyTrac publicly recorded sales deed data in 504 counties nationwide. Rental affordability is average monthly wage (extrapolated from average weekly wages) as a percentage of average rent. Home buying affordability is the average monthly wage (extrapolated from average weekly wages) as a percentage of the monthly house payment for a median priced home (based on a 3 percent down payment and including mortgage, property tax, homeowner's insurance and private mortgage insurance). About RealtyTrac RealtyTrac is a leading supplier of U.S. real estate data, with nationwide parcel-level records for more than 129 million U.S. parcels that include property characteristics, tax assessor data, sales and mortgage deed records, Automated Valuation Models (AVMs) and 20 million active and historical default, foreclosure auction and bank-owned properties. RealtyTrac's housing data and foreclosure reports are relied on by the Federal Reserve, U.S. Treasury Department, HUD, numerous state housing and banking departments, investment funds as well as millions of real estate professionals and consumers, to help evaluate housing trends and make informed decisions about real estate.
MORE >
Despite Interest Rate Hike by U.S. Federal Reserve, Majority of Current Home Shoppers Still Plan to Purchase
MORE >
San Francisco, L.A., Boston Top Experts' List of Potential Bubble Markets
  SEATTLE, Dec. 9, 2015 -- A third of the experts surveyed in the latest Zillow® Home Price Expectations Survey said the San Francisco housing market is in a bubble, and another 20 percent believe the market is at-risk for bubble conditions within the next year. The survey, sponsored quarterly by Zillow and conducted by Pulsenomics LLC, asked more than 100 panelists about their expectations for the housing market. Of those, 66 answered a question about bubble conditions in 20 local housing markets. The survey responses revealed that some housing experts are concerned about over-valuation in some of the nation's hottest housing markets – and that there is significant disagreement among experts about whether the rapid home-value growth in those markets puts consumers at risk. "A handful of markets – especially the Bay Area – are very hot right now, and it's possible home values may actually begin to fall somewhat in these places as more residents are priced out amidst rising affordability concerns, especially when interest rates rise," said Zillow Chief Economist Dr. Svenja Gudell. "Whether those local conditions constitute a 'bubble' is up for debate, even among economists. Without 20/20 hindsight, it's difficult to identify bubbles as they're happening, but it is very clear that nationally we are not seeing a return of the conditions that caused the last national bubble. Tighter lending restrictions today mean we aren't seeing buyers get loans they realistically can't pay back, like we did in years past. It's significant that some experts are starting to worry about bubble conditions, but in my opinion, there's no real danger of a severe crash like the one we all remember from the last decade." Some experts said they think bubble conditions are already present in Miami, Los Angeles, Houston, San Diego, and Seattle. A quarter of respondents said they think there is significant risk of a housing bubble in the next three years in Boston. (The same number of panelists said there is no risk of a bubble in Boston in the next five years). The bubble fears are coming to the surface even as home values overall are expected to gradually level off over the next several years. The ZHPE panel projects an annual growth rate of 3.9 percent through the end of 2015 – a gradual slowing of the U.S. housing market. Over the next five years, among all 108 panel respondents, the expected average annual home-value appreciation rate is now just over three percent. This scenario would result in a national median home value of more than $215,000 by the end of 2020. "The long-term outlook for U.S. home values has diminished to a three-year low, and a clear-cut consensus among the experts remains elusive, even at the national level," said Pulsenomics Founder Terry Loebs. "Based on the projections of the most optimistic forecasters, home values nationally will increase 4.7 percent next year and surpass their May 2007 peak levels in April 2017. In contrast, the data collected from the panel's most pessimistic respondents expect only 2.3 percent appreciation for next year, and even more subdued appreciation thereafter – a path that would delay the market's eclipse of the bubble peak until September 2019. The divergence of expert views regarding the existence of regional price bubbles and the path of future home values is a reminder that the U.S. housing sector has yet to fully heal more than eight years after the epic bust, and that significant risks have re-emerged within certain large metropolitan area housing markets." About Zillow Zillow® is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and knowledge around the place they call home, and connecting them with the best local professionals who can help. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow's Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of economists and data analysts produce extensive housing data and research covering more than 450 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. Zillow also sponsors the bi-annual Zillow Housing Confidence Index (ZHCI) which measures consumer confidence in local housing markets, both currently and over time. Launched in 2006, Zillow is owned and operated by Zillow Group (NASDAQ: Z and ZG), and headquartered in Seattle. Zillow is a registered trademark of Zillow, Inc. About Pulsenomics: Pulsenomics LLC (www.pulsenomics.com) is an independent research and consulting firm that specializes in data analytics, new product and index development for institutional clients in the financial and real estate arenas. Pulsenomics also designs and manages expert surveys and consumer polls to identify trends and expectations that are relevant to effective business management and monitoring economic health. Pulsenomics LLC is the author of The Home Price Expectations Survey™, The U.S. Housing Confidence Survey, and The U.S. Housing Confidence Index. Pulsenomics®, The Housing Confidence Index™, and The Housing Confidence Survey™ are trademarks of Pulsenomics LLC.
MORE >
Realtor.com® 2016 Housing Forecast Predicts Healthy Market with New Construction Driving Highest Level of Home Sales Since 2006
MORE >
Lack of Affordable Options Will Drive First-Time Buyers Out to the Suburbs in 2016
  SEATTLE, November 30, 2015 — Deteriorating housing affordability will drive 2016 housing trends. A lack of affordable homes near city centers will push new and first-time homebuyers to suburbs that feel like walkable, amenity-rich mini-cities. Rising rents will force more young renters to wait longer before buying a home. And the looming threat of rising mortgage interest rates will slowly erode some of the terrific mortgage affordability the market has enjoyed for the past few years. Zillow's 2016 Housing Market Predictions The median age of first-time buyers will reach new highs in 2016 as millennials put off homeownership and other major life decisions. Growth in home values will outpace incomes, especially for low-income Americans. In 2016, those whose incomes fall in the bottom third of all incomes will be priced out of homeownership and unable to afford even the least expensive homes on the market. Rising rents won't let up in 2016, and will continue to set new records. The next year will bring the least affordable median rents ever. As affordable housing close to city centers grows increasingly scarce, people will move farther out. Dense, walkable suburbs with an urban feel – especially those that offer good access to the city – will be 2016's new hot spots. The median expectation of more than 100 economic and housing experts surveyed in the latest Zillow® Home Price Expectations Survey was for home values to grow about 3.5 percent in 2016. Statement from Zillow Chief Economist Dr. Svenja Gudell: "Rents will continue to increase at a brisk rate in 2016, but many potential first-time buyers are living in hot markets where buying a home is really expensive. In 2016, we'll start to see more people in hot coastal markets forced to move farther from the core of the city to find housing. When they get there, they'll be looking for amenity-rich suburbs – mini-cities, with walkable cores and an urban feel. "As renters gradually transition into homeowners, the historically low homeownership rate should stop falling quite as quickly as it has been. However, the median age of first-time homebuyers – already the highest it has ever been at about 33 – will climb higher. Millennials want to buy, but they are waiting longer than previous generations. "All of this will happen against a backdrop of slowly increasing interest rates. That will make some homeowners think twice about selling, and many of them will decide to remodel their current homes instead." About Zillow Zillow® is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and knowledge around the place they call home, and connecting them with the best local professionals who can help. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow's Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of economists and data analysts produce extensive housing data and research covering more than 450 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. Zillow also sponsors the bi-annual Zillow Housing Confidence Index (ZHCI) which measures consumer confidence in local housing markets, both currently and over time. Launched in 2006, Zillow is owned and operated by Zillow Group (NASDAQ:Z and ZG), and headquartered in Seattle. Zillow is a registered trademark of Zillow, Inc.
MORE >
One in Three Regret DIYing a Home Improvement Project
MORE >
First-time Buyers Fall Again in NAR Annual Buyer and Seller Survey
  WASHINGTON (November 5, 2015) — The share of first–time buyers declined for the third consecutive year and remained at its lowest point in nearly three decades as the overall strengthening pace of home sales over the past year was driven more by repeat buyers with dual incomes, according to an annual survey released today by the National Association of Realtors®. The survey additionally found that nearly 90 percent of all respondents worked with a real estate agent to buy or sell a home; which pushed for–sale–by–owner transactions to their lowest share ever. The 2015 National Association of Realtors® Profile of Home Buyers and Sellers continues a long–running series of large national NAR surveys evaluating the demographics, preferences, motivations, plans and experiences of recent home buyers and sellers; the series dates back to 1981. Results are representative of owner–occupants and do not include investors or vacation homes. In this year's survey, the share of first–time buyers* declined to 32 percent (33 percent a year ago), which is the second–lowest share since the survey's inception (1981) and the lowest since 1987 (30 percent). Historically, the long–term average shows that nearly 40 percent of primary purchases are from first–time home buyers. Lawrence Yun, NAR chief economist, says the housing recovery's missing link continues to be the absence of first–time buyers. "There are several reasons why there should be more first–time buyers reaching the market, including persistently low mortgage rates, healthy job prospects for those college–educated, and the fact that renting is becoming more unaffordable in many areas," he said. "Unfortunately, there are just as many high hurdles slowing first–time buyers down. Increasing rents and home prices are impeding their ability to save for a down payment, there's scarce inventory for new and existing–homes in their price range, and it's still too difficult for some to get a mortgage." Yun says this year's survey perhaps offers additional clues to why fewer first–time buyers are reaching the market. "First–time buyers reported that debt (all forms) delayed saving for a down payment for a median of three years, and among the 25 percent who said saving was the most difficult task, a majority (58 percent) said student loans delayed saving," he said. "With a median amount of student loan debt for all buyers at $25,000, it's likely some younger households with even higher levels of debt can't save for an adequate down payment or have decided to delay buying until their debt is at more comfortable levels." Characteristics of Buyers With strong price growth in many markets and fewer first–time buyers, the results in this year's survey reveal a market with a higher share of married couples 67 percent (up from 65 percent last year) who have higher household income than previous years. Married repeat buyers have the highest income among all buyers ($108,600), while the share of single female buyers decreased from 16 percent to 15 percent and male buyers remained flat at 9 percent. "Similar to some of the obstacles facing first–time buyers, tighter credit conditions and having less purchasing power than households with dual incomes likely led to the share of single–female buyers declining to its lowest since 2001 (also 15 percent)," adds Yun. Unchanged from a year ago, 13 percent of survey respondents were multi–generational households, including adult children, parents and/or grandparents. Eighteen percent of buyers identified as military veterans, 8 percent as an unmarried couple and 3 percent as active–duty service members. The median age of first–time buyers was 31, unchanged for the last three years, and the median income was $69,400 ($68,300 in 2014). The typical first–time buyer purchased a 1,620–square–foot home (1,570 in 2014) costing $170,000, while the typical repeat buyer was 53 years old and earned $98,700 ($95,000 in 2014). Repeat buyers purchased a median 2,020–square–foot home costing $246,400. When asked about the primary reason for purchasing, more first–time buyers in this year's survey (64 percent) cited a desire to own their own home as the primary reason compared to a year ago (53 percent). For repeat buyers, desire to own a home of their own and wanting to own a larger home were both the top reason given (each at 13 percent). Nearly half of all buyers (46 percent) said the timing was just right and they were ready to purchase a home. According to the survey, buyers continue to view buying a home as a good financial investment. Up from last year (79 percent), 80 percent of recent buyers said it was a good investment, and 43 percent believe it's better than stocks. Looking ahead, first–time buyers plan to stay in their home for 10 years and repeat buyers plan to hold their property for 15 years. Financing the Purchase An overwhelming majority of recent buyers (86 percent versus 88 percent in 2014) still financed their purchase, despite above–normal activity from all–cash buyers likely pushing the percent share down. Younger buyers were more likely to finance, and the median down payment ranged from 6 percent for first–time buyers to 14 percent for repeat buyers. Almost half (45 percent) of first–time buyers in this year's survey said the mortgage application and approval process was much more or somewhat more difficult than expected. Ninety–one percent of all buyers chose a fixed–rate mortgage, with 23 percent financing their purchase with a low–down payment Federal Housing Administration–backed mortgage, down from 43 percent five years ago. Eleven percent financed using the Veterans Affairs loan program with no down payment requirements. In addition to using their own savings for their down payment (81 percent), first–time buyers used a variety of outside resources, including a gift from a friend or relative (27 percent), and selling stocks or bonds and tapping into a 401(k) fund (both at 8 percent). For repeat buyers, the proceeds from the sale of their primary residence (53 percent) was the top source for their down payment, up from 47 percent last year and 40 percent in 2012. "With first–time buyers stuck on the sidelines, the majority of sales activity in most parts of the country is coming from pent–up sellers taking advantage of rising home values in their neighborhoods and using their equity to trade up or move down," added Yun. Searching for and Buying a Home While more home buyers used the Internet as the first step of their search than any other option (42 percent), real estate agents remain an integral part of the home search process. Eighty–eight percent of buyers who searched for homes online ended up purchasing through an agent. NAR President Chris Polychron, executive broker with 1st Choice Realty in Hot Springs, Ark., says the two most popular resources used during the home search process continue to primarily be online websites (89 percent) and real estate agents (87 percent). "Although buyers between the ages of 18–24 were the most likely to use an agent (90 percent), over 85 percent of buyers in each of the other age categories also used an agent during their home search," he said. "With tight inventory conditions leading to stiff competition in several parts of the country and what's found online sometimes not entirely accurate, buyers are turning to Realtors® for expert advice and assistance in navigating today's fast–moving housing market." In recent years, the home search resource that's gaining the most popularity is mobile or tablet applications, steadily increasing from 45 percent in 2013 to 61 percent in this year's survey. Other noteworthy results included yard signs (51 percent) and open houses (48 percent). With tight inventory conditions prevalent in many markets, buyers moved faster than in previous years to find the house they purchased, typically taking 10 weeks (for the second consecutive year). From 2009 to 2013, the typical home search process took 12 weeks. A detached single–family home continues to be the most common type of home bought (83 percent), while purchases of townhouses or row houses remained unchanged from a year ago at 7 percent. Eighty–nine percent of buyers with children under the age of 18 purchased a detached single–family home compared to 80 percent of buyers with no children in their home. Overall, the typical home purchased during the survey period was built in 1991 and had three bedrooms and two bathrooms. Slightly more buyers in this year's survey purchased a home in a suburb or subdivision (52 percent) compared to a year ago (50 percent). The remaining bought in a small town (20 percent), urban area (14 percent), rural area (13 percent) or resort/recreation area (2 percent). Recent buyers also moved further from their previous residence this past year at a median distance of 14 miles (12 miles in 2014). Similar to previous years, the biggest factors influencing neighborhood choice were quality of the neighborhood (59 percent), convenience to jobs (44 percent) and overall affordability of homes (38 percent). Unmarried couples were the most likely to cite convenience to entertainment and leisure activities (26 percent), and single women were the most likely to cite convenience to friends and family as an influencing factor (43 percent). Characteristics of Sellers Eighty–nine percent of sellers sold their home with an agent. Only 8 percent were by for–sale–by–owner sales, which is down from 9 percent the last three years and the lowest share ever recorded since the survey's 1981 inception. "Although the Internet and digital technology have created several channels for sellers to market their listings to a wider cast of potential buyers, the preference to use a Realtor® to sell a home has never been stronger," says Polychron. Overall, the typical seller over the past year was 54 years old (unchanged from 2014; up from 49 in 2010), was married (77 percent), had a household income of $104,100 ($96,700 in 2014), and was in the home for 9 years before selling — a year earlier than 2014's all–time high for tenure in home (10 years). Fewer sellers this past year (14 percent) wanted to sell earlier but were stalled because their home had been worth less than their mortgage (17 percent a year ago). Sellers realized a median equity gain of $40,000 ($30,100 in 2014) — a 23 percent increase (17 percent last year) over the original purchase price. Sellers who owned their home for one to seven years all reported roughly selling their homes for $30,000 to $35,000 more than they purchased it. Underlining the price swings during the downturn, equity gains fell to $3,000 for owners who bought between eight and 10 years ago. Homes sold after 21 years reported a price gain of $138,000. The median time on the market for recently sold homes remained at four weeks for the second year in a row, again highlighting the persistently low inventory in several markets. Sellers moved a median distance of 20 miles (70 percent stayed in the same state) and the top reason given for selling their home was it being too small (16 percent). A combined 66 percent of responding sellers found a real estate agent through a referral by a friend, neighbor or relative, or used their agent from a previous transaction. Furthermore, the responses reveal client referrals and repeat business remain the predominant source of business for real estate agents, with most sellers (84 percent) indicating they would definitely (67 percent) or probably (17 percent) recommend their agent for future services. NAR mailed a 128–question survey in July 2015 using a random sample weighted to be representative of sales on a geographic basis. A total of 6,406 responses were received from primary residence buyers. After accounting for undeliverable questionnaires, the survey had an adjusted response rate of 6.7 percent. The recent home buyers had to have purchased a home between July of 2014 and June of 2015. All information is characteristic of the 12–month period ending in June 2015 with the exception of income data, which are for 2014. The 2015 NAR Profile of Home Buyers and Sellers can be ordered by calling 800–874–6500, or online at www.realtor.org/prodser.nsf/Research. The study costs $19.95 for NAR members and $249.95 for non–members. The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing over 1.1 million members involved in all aspects of the residential and commercial real estate industries.
MORE >
There Goes the Neighborhood: Tech Workers' Silicon Valley Home Values Are Outpacing Neighbors'
MORE >
Realtor.com® Survey Finds Home Enthusiasts Prefer Natural, Comfortable Spaces
SAN JOSE, California, October 26, 2015 — Long-gone are the days of the Hollywood-inspired homes exuding sophistication and "look, but don't touch elegance," according to realtor.com® visitors, who selected Inviting, Rustic and Beachside Charm as three favorite home designs for 2015. The top design preferences, announced today by realtor.com®, a leading online real estate destination operated by News Corp subsidiary Move, Inc., indicate a shift in home design trends that mirror today's lifestyle. The consumer insight was gathered as part of the realtor.com® "Get This Look" promotion, which invited visitors to vote for their favorite look as part of an opportunity to win a $45,000 home makeover by television host and lifestyle expert Jennifer Farrell. "We are seeing a shift in home design trends – leaving behind the glitz and glam for a more natural look – whether that may be a rugged barn with many textures or a serene beach-like feel," said Farrell. "Today's style reflects today's lifestyle and we've found that having a space for entertaining family and friends all year round is the number one trend." The Inviting living space, which is described as a welcoming atmosphere that includes fun barware, plenty of seating and a gather-worthy kitchen that can serve as the life of the party, received 23 percent of the more than 100,000 votes cast by realtor.com® visitors. This was followed by Rustic at 22 percent and Beachside Charm, at 21 percent. Those who prefer a Rustic look favor natural elements: wood, stone, water and light. This style takes traditionally organic materials from the outside inside for a perfect balance. Also taking on a relaxed and casual feel, the Beachside Charm look is airy and breezy, incorporating terracotta tile, patio umbrellas, sundecks and scattered shells to make home owners and their visitors kick back and feel like they are miles away from the hustle and bustle of life's daily pressures. Regal, a grand look with fine fabrics and antiques, was selected fourth among realtor.com® visitors, followed by concrete jungle Urban, eclectic Mid-Century Modern, and slinky and engaging Earthy. The soft satin and candlelight ambiance found in glamour designs finished last in place. Follow the realtor.com® "Get This Look" sweepstakes, sponsored in part by Bankrate, by visiting the realtor.com® News & Advice page to watch Grand Prize winner, Lillian Lightner's home makeover. It is one of many resources available to home buyers and sellers to help them make their dream home become a reality. About Move, Inc. and realtor.com® Move, Inc. operates the realtor.com® website and mobile experiences, which provide buyers, sellers and renters of homes with the information, tools and professional expertise they need to discover and create their perfect home. News Corp acquired Move in November 2014, and realtor.com® quickly established itself as the fastest growing online real estate service provider in the first half of 2015 as measured by comScore.
MORE >
HUD Secretary Julián Castro to Join Realtor.com® Chief Economist Jonathan Smoke to Discuss Millennial Housing in Online Town Hall
MORE >
More than a Quarter of U.S. Homes Lost Value in the Last Year
  SEATTLE, Sept. 22, 2015 — More than a quarter of homes across the country lost value over the past year, despite the ongoing housing market recovery, according to the Zillow® August Real Estate Market Report. Some markets have already surpassed home values reached at the height of the housing bubble, while other markets are struggling to leave the recession behind. Nationally, homes appreciated 3.3 percent from a year ago, rising to a Zillow Home Value Index of $180,800. The national growth rate has leveled off over the past five months, suggesting the housing recovery is ending and the market is returning to normal. However, 27.9 percent of homes lost value over the past year. Before the housing market crashed, an average of 21.2 percent of homes were losing value. In December 2008, 81.6 percent of homes lost value, the highest amount during the recession. Markets on the East Coast and in the Midwest had the highest share of homes that lost value. A staggering 48.1 percent of homes in Baltimore decreased in value over the past year. Philadelphia (43.4 percent) and Washington, DC (41.2 percent) also had large shares of homes losing value. Conversely, few homes lost value in hot markets like Denver, Dallas, San Jose, and San Francisco, which all saw double-digit home value growth over the past year. Less than five percent of homes in Denver (1.5 percent) and Dallas (4 percent) were worth less in August 2015 than they were a year ago. "We're not going in reverse, but we are hitting the brakes a bit in some markets," said Zillow Chief Economist Dr. Svenja Gudell. "It's easy to say the recession is over when a third of the biggest markets are more expensive now than ever before, but we're still seeing a number of homes losing value. The reality is there are still areas lagging behind in the recovery." Renters looking to become homeowners may find more opportunities in slower markets like Philadelphia. According to the January 2015 Zillow Housing Confidence Index, when home values there were growing at 2.8 percent annually, eight percent of renters in the area said they planned to buy within a year. This jumped to 18 percent in the most recent survey, when home value growth was nearly flat at 0.3 percent. Rents are still growing faster than home values. The Zillow Rent Index rose 3.8 percent on an annual basis to $1,381, giving potential buyers another reason to consider entering the market.   About Zillow Zillow® is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and knowledge around the place they call home, and connecting them with the best local professionals who can help. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow's Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of economists and data analysts produce extensive housing data and research covering more than 450 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. Zillow also sponsors the bi-annual Zillow Housing Confidence Index (ZHCI) which measures consumer confidence in local housing markets, both currently and over time. Launched in 2006, Zillow is owned and operated by Zillow Group (NASDAQ:Z and ZG), and headquartered in Seattle.
MORE >
Homeowners Wary of Housing Market's Future
MORE >
The Official Deeper Dive into the Dangers, Threats and Opportunities in the Real Estate Industry
The award winning 2015 Swanepoel Trends Report (Bronze Medalist - 2015 Axiom Business Book Award) provides a business comprehensive analyzes overview of most important trends, shifts, danger and opportunities in the real estate industry. We have been writing about them since the Real Estate Confronts Reality in 1997! This year we are celebrating our 17th year of real estate publications and the 10th edition of our annual Swanepoel TRENDS Report. Listed below are the chapters we address in this year's Trends Report: Race to Online Supremacy - Down to the Dominant Two. Now What? Vulnerability of the MLS - Project Upstream and other Covert Operations. What are the Most Likely Scenarios? Consumer Complaints - Examining the Impact of the CFPB. Are you ready for October 1st? Amateurs, Order Takers or Professionals - Are We Changing or Just Staying the Same? The Next Surge of Innovations - How Will Digital Natives Drive the Next Surge of Innovations? Independent Contractors - Will the Legal Battles Create a Industry Game Changer? Leadership Retirement Wave - Are There Sufficient CEO Succession Plans in Place? August and September are the final months to get the 2015 Swanepoel Trends Report before writing starts on the 2016 edition. Get your copy today!
MORE >
Sellers Still Rule in Bay Area; Gaining Power in Denver, Seattle, Dallas-Fort Worth
MORE >
Renting Less Affordable Than Buying in Most U.S. Markets But Not Where Millennials Are Moving Most
IRVINE, Calif. – Dec. 23, 2014 — RealtyTrac®, the nation's leading source for comprehensive housing data, today released an analysis of fair market rents and median home prices in more than 500 U.S. counties, which shows that buying is still more affordable than renting in the majority of U.S. housing markets, while the opposite is true in markets with the biggest increase in the millennial share of the population over the last six years. RealtyTrac analyzed 2015 fair market rental data recently released by the U.S. Department for Housing and Urban Development for three-bedroom properties in 543 counties nationwide with a population of at least 100,000. In the 473 counties with sufficient rental and home price data, the fair market rent for a three-bedroom property in 2015 will require an average of 27 percent of median household income, while buying a median-priced home requires an average of 25 percent of median household income based on the median sales price in November. Buying a median-priced home was more affordable than renting a three-bedroom property in 68 percent of the counties analyzed, representing 57 percent of the total population in those counties. But in the 25 counties with the biggest increase in millennials between 2007 and 2013, fair market rents for a three-bedroom property in 2015 will require 30 percent of the median household income on average while buying a median-priced home requires 36 percent of median household income on average. For the analysis millennials were defined as anyone born between 1977 and 1992. "First-time buyers and potential boomerang homebuyers are stuck between a rock and a hard place in today's housing market: many of the markets with the jobs and amenities they want have hard-to-afford rents and even harder-to-afford home prices; while the more affordable markets have fewer well-paying jobs and tend to be off the beaten path," said Daren Blomquist, vice president at RealtyTrac. "Those emerging markets with the combination of good jobs, good affordability and a growing population of new renters and potential first-time homebuyers represent the best opportunities for buy-and-hold real estate investors to buy low and benefit from rising rents in the years to come." Rental trends in markets with biggest increase in millennial population The top markets with the biggest increase in the percentage of millennials over the past seven years were counties in Washington D.C., San Francisco and Denver, all of which saw an increase of more than 50 percent in the share of the population that is millennials. Other markets in the top 25 for biggest increase in millennials included counties in New York, Nashville, Portland, St. Louis, Seattle, Charlotte, Minneapolis, Indianapolis, Atlanta, Orlando, Austin, Des Moines and Midland, Texas. The average 2015 fair market rent in these top 25 counties is $1,459, 19 percent above the national average for all counties analyzed. On average 2015 fair rents increased 3 percent from a year ago in these counties, with the standouts being Denver County and Midland County, Texas, both of which saw fair market rents increase more than 20 percent. Median home prices increased 8 percent from a year ago in these counties on average compared to an average 7 percent increase among all counties analyzed nationwide. The average unemployment rate among these counties was 5.2 percent in October compared to an average of 5.5 percent for all counties analyzed. Markets with biggest jumps in fair market rents The top counties in terms of increasing fair market rents on three-bedroom properties were in Williamsport, Pa., Elizabethtown, Ky., and Midland, Texas, all of which saw an increase of 24 percent or more in fair market rents compared to 2014. Williamsport and Midland are both experiencing oil and gas booms facilitated by fracking, and Elizabethtown is home to the Fort Knox U.S. Army post. Other markets among the top 25 for increasing rents included counties in Denver, Colo., Asheville, N.C., Chicago and Santa Barbara, Calif. The average 2015 fair market rent in these top 25 counties is $1,327, 8 percent above the national average for all counties analyzed. Among these counties, 2015 fair market rent on a three-bedroom property will require 25 percent of median household income on average while buying a median-priced home requires 27 percent of median household income on average. The average unemployment rate among these counties was 4.9 percent compared to an average of 5.5 percent unemployment rate among all counties analyzed. Median home prices increased 7 percent from a year ago in these counties on average, the same as the average for all counties analyzed. Markets with biggest drops in fair market rents The top markets with the biggest decreases in fair market rents on three-bedroom properties were in Sumter, S.C., Las Cruces, N.M., and Longview, Texas. All three saw fair market rents decrease at least 13 percent from 2014 to 2015. Other markets in the top 25 for decreasing rents included counties in several college towns: Bloomington, IL, Champaign-Urbana, IL, College Station, Texas, Terre Haute, Ind., along with Las Vegas. "Inventory of single-family rentals are at an all-time high in Washoe County, keeping rental rates flat in 2014," said Craig King, COO of Chase International, covering the Lake Tahoe and Reno, Nev., markets. "With our Tesla announcement and other companies to follow we see a strong rental market in the immediate years ahead. We have had a growing population of renters in the millennial demographic range. Going forward, they are prime buying candidates." The average 2015 fair market rent in these top 25 counties is $1,023, 16 percent below the national average for all counties analyzed. Among these counties, 2015 fair market rent on a three-bedroom property will require 29 percent of median household income on average while buying a median-priced home requires 23 percent of median household income on average. The average unemployment rate among these counties was 6.7 percent compared to an average of 5.5 percent unemployment rate among all counties analyzed. Median home prices increased 4 percent from a year ago in these counties on average, compared to an average increase of 7 percent for all counties analyzed. Least affordable rental markets The top counties where fair market rents were least affordable as a percentage of median household income were in New York, Baltimore, Philadelphia, Miami, Virginia Beach, San Francisco, Eureka, Calif., and Los Angeles. Fair market rents required at least 40 percent of median household income in all of the 10 least affordable counties. "With interest rates still at record lows, the buy analysis is compelling for many renters," said Mike Pappas, CEO and president of the Keyes Company, covering the South Florida market. "We are beginning to see those who lost their homes in the great recession re-enter the purchase market. Coupled with the re-emergence of the low down payment loans and the aging of the millennials – 2015 bodes well for an improving purchase market." "We are starting to see the millennials entering into the housing market in the more affordable areas," said Chris Pollinger, senior vice president of sales at First Team Real Estate, covering the Southern California market, where renting is substantially more affordable in coastal markets but where buying is more affordable in some markets further inland. "We are still five to seven years from seeing the millennials enter into the housing market in the more affluent coastal areas." Other markets among the top 25 for least affordable fair market rents were in Tampa, St. Louis, New Orleans, Richmond, Va., Atlanta, San Diego, Sacramento and Orlando. The average 2015 fair market rent in these top 25 counties is $1,686, 38 percent above the national average for all counties analyzed. Among these counties, 2015 fair market rent on a three-bedroom property will require 42 percent of median household income on average while buying a median-priced home requires 44 percent of household income on average. The average unemployment rate among these counties was 6.5 percent compared to an average of 5.5 percent among all counties analyzed. Median home prices increased 3 percent from a year ago in these counties on average, compared to an average 7 percent increase for all counties analyzed. Most affordable rental markets The top counties where fair market rents were most affordable as a percentage of median household income were in Columbus, Ohio, Indianapolis and Nashville. Fair market rents required less than 15 percent of median household income in parts of these markets. "Across Ohio we have experienced an increased demand with rentals due to a growing job market and affordable rental rates throughout the state," said Michael Mahon, executive vice president at HER Realtors, covering the Cincinnati, Columbus and Dayton markets. "As many consumers remain optimistic over job and income stability, many are still repairing credit issues and paying down debt incurred over recent past years economic concerns. Particular focus is on the millennial demographic whom appear to be taking advantage of renting available homes while seeking greater personal financial security by redirecting down payment funds to paying off targeted debt such as student loans." Other markets among the top 25 for most affordable fair market rents included counties in Atlanta, Cincinnati, Milwaukee, and Houston. The average 2015 fair market rent in these top 25 counties is $1,019, 17 percent above the national average for all counties analyzed. Among these counties, 2015 fair market rent on a three-bedroom property will require 26 percent of median household income on average while buying a median-priced home requires 12 percent of household income on average. The average unemployment rate among these counties was 5.8 percent compared to an average of 5.5 percent among all counties analyzed. Median home prices increased 6 percent from a year ago in these counties on average, compared to an average increase of 7 percent for all counties analyzed. Report Methodology Fair market rents for 2015 and 2014 were obtained for the U.S Department of Housing and Urban Development, which publishes the numbers each year using a methodology designed to identify the 40th percentile rent, the dollar amount below which 40 percent of the standard-quality rental housing units are rented. See full HUD methodology. In most states, the median sales price for this analysis was derived from sales deeds recorded at the county level. In some states known as non-disclosure states (AK, ID, IN, KS, LA, ME, MS, MO, MT, NM, ND, TX, UT, WY) where the median price is not consistently available from the sales deed, median list prices were used. Annual median household income data came from the U.S. Census Bureau for 2000 to 2012. Annual median household income for 2013 to 2014 was estimated based upon 2000 to 2012 numbers and then adjusted for current market conditions. In calculating average house payments, fixed 30 year mortgage rates were obtained from Freddie Mac for every month. It was assumed that the average borrower would make a 20 percent down payment, the mortgage term would be 30 years, and insurance combined with property tax would be 1.39 percent of the value of the home. Rental affordability rates for this analysis are the annualized 2015 fair market rent for a three-bedroom property divided by the annual median household income. Affordability rates for purchasing a home for this analysis are the percentage of median household income needed to make monthly house payments on a median-priced residential property in each given county based on November 2014 median sales prices. About RealtyTrac RealtyTrac is a leading supplier of U.S. real estate data, with nationwide parcel-level records for more than 129 million U.S. parcels that include property characteristics, tax assessor data, sales and mortgage deed records, Automated Valuation Models (AVMs) and 20 million active and historical default, foreclosure auction and bank-owned properties. RealtyTrac's housing data and foreclosure reports are relied on by the Federal Reserve, U.S. Treasury Department, HUD, numerous state housing and banking departments, investment funds as well as millions of real estate professionals and consumers, to help evaluate housing trends and make informed decisions about real estate.
MORE >
Baby boomers still play active role in housing market, C.A.R. survey finds
MORE >
In Most Major Markets, Negative Equity Has Fallen By Half Since Peak of Crisis
SEATTLE, Dec. 17, 2014 -- The number of U.S. homeowners upside down on their mortgages has fallen by more than 40 percent since early 2012, according to the third quarter Zillow® Negative Equity Reporti. More than 7 million Americans who at one point owed more on their mortgages than their homes were worth have escaped -- either by paying down their mortgage balance, short sale and foreclosure or because their home values improved. Roughly 8.7 million homeowners remain trapped underwater on their mortgages, but the negative equity rate has halved since 2012 in the markets hit hardest by the recession. Declining negative equity will have a ripple effect in the housing market, allowing previously stuck homeowners to list their homes for sale and adding to overall for-sale inventory just as millennial buyers are expected to begin to enter the market en masse in coming months and years. This new inventory will also help slow home value appreciation, which has been fueled by high demand for homes and low supply. The negative equity rate fell to 16.9 percent of all homeowners with a mortgage in the third quarter, down from 21 percent in the third quarter of 2013. It is expectedii to fall to 15.2 percent by the end of the third quarter of 2015. The effective negative equity rate, including homeowners without enough equity to realistically afford the costs of selling and buying a new home, was 35 percent in the third quarter. "The market has made terrific strides since bottoming out in late 2011 and early 2012, with millions of underwater homeowners freed in just the past few years, and millions more set to surface in coming months and years," said Zillow Chief Economist Dr. Stan Humphries. "Looking at negative equity helps us understand so many of the currently out-of-whack dynamics in the housing market, including low inventory, rapid home value appreciation and weak sales volumes. None of these problems will be solved overnight, in large part because negative equity will likely be a part of the housing market for years, and easily into the next decade in some hard-hit areas. But we're moving in the right direction, and time will heal all wounds." Owners of less expensive homes were more likely to be underwater in the third quarter than owners of more expensive homes – in some cases, much more likely. In Detroit, for example, 49.2 percent of homes valued in the bottom price tieriii were underwater, while just 7.6 percent of the area's highest-priced homes were upside down. Similarly, in Chicago, 41.4 percent of bottom-tier homes were in negative equity, compared to 23.9 percent of middle-tier homes and 10.4 percent of top-tier homes. Nationwide, 27.4 percent of bottom-tier homes were in negative equity in the third quarter, compared to 15.7 percent of middle-tier homes and 9.3 percent of top-tier homes. About Zillow, Inc. Zillow, Inc. operates the largest home-related marketplaces on mobile and the web, with a complementary portfolio of brands and products that help people find vital information about homes, and connect with the best local professionals. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow's Chief Economist Dr. Stan Humphries. Dr. Humphries and his team of economists and data analysts produce extensive housing data and research covering more than 450 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. Zillow also sponsors the bi-annual Zillow Housing Confidence Index (ZHCI) which measures consumer confidence in local housing markets, both currently and over time. The Zillow, Inc. portfolio includes Zillow.com®, Zillow Mobile, Zillow Mortgage , Zillow Rentals, Zillow Digs®, Postlets®, Diverse Solutions®, Mortech®, HotPads™, StreetEasy® and Retsly™. The company is headquartered in Seattle.
MORE >
21 Percent of U.S. Housing Markets Now Less Affordable Than Their Historical Averages According to New RealtyTrac Report Analyzing Early Warning Signs of Possible Home Price Bubbles
MORE >
In 2015, Millennials Will Be Biggest Home Buying Group and Rents Will Grow Faster Than Home Values
SEATTLE, Dec. 2, 2014 -- Zillow predicts a big year for home buyers in 2015, with more millennials entering the market amid rising rents. Zillow's annual housing predictions also identify the five best housing markets for first-time homebuyers this coming year. 2015 Predictions U.S. rents will outpace home values by the end of the year Builders will begin constructing more, less expensive homes Millennials will overtake Generation X as the largest group of homebuyers Homebuyers will have more negotiating power in 2015 2015's Best Housing Markets for First-Time Homebuyers First-time homebuyers will be a critical part of the housing market next year, and certain markets will have more favorable conditions than others for buyers looking for that perfect entry-level home1. Markets most favorable to first-time buyers are those with strong income growth among 23-34 year olds, significant growth in the number of entry-level homes on the market and home prices that won't take a big chunk out of buyers' paychecks. Zillow predicts the best markets for first-time buyers in 2015 will be: Nationwide, home values will increase by 2.5 percent while rents will grow around 3.5 percent. "Home value appreciation will continue to cool down, from roughly 6 percent now to around 2.5 percent by the end of 2015. But rents will see no such slowdown, and will continue to grow around 3.5 percent annually throughout 2015. As renters' costs keep going up, I expect the allure of fixed mortgage payments and a more stable housing market will entice many more otherwise content renters into the housing market." – Dr. Stan Humphries, Zillow chief economist Builders will begin constructing more, less expensive homes. "In recent years, home builders seem to have made a conscious decision to sell fewer, more expensive homes instead of more, cheaper homes. In 2015, that will change, especially as demand moves toward the lower end of the market as millennials begin buying en masse. New home sales volume has been stuck around the 450,000 per year mark. In order to break out and get that number above 500,000, builders are going to have to start to build cheaper homes, which will help to narrow the price gap between new and existing homes and contribute to more rapid inventory gains." – Dr. Stan Humphries, Zillow chief economist By the end of 2015, millennial buyers (under the age of 35) will become the largest group of buyers, overtaking Gen X (35-50 years old). "Roughly 42 percent of millennials say they want to buy a home in the next one to five years, compared to just 31 percent of Generation X, and by the end of 2015 millennials will become the largest home-buying age group. The lack of home-buying activity from millennials thus far is decidedly not because this generation isn't interested in homeownership, but instead because younger Americans have been delaying getting married and having children, two key drivers in the decision to buy that first home. As this generation matures, they will become a home-buying force to be reckoned with." – Dr. Stan Humphries, Zillow chief economist In general, buyers will get back more leverage in the market. "Since the recovery began in earnest in late 2012, buyers have really taken it on the chin, forced to contend with low inventory, tight credit, bidding wars and intense competition from investors and all-cash buyers. But next year we'll start to see things really turn around. More inventory will continue to come on line, putting the competitive pressure on sellers for a change. This more balanced market will be smoother sailing for everyone, both for buyers in search of a competitive advantage, and for sellers who turn around and become buyers themselves." – Dr. Stan Humphries, Zillow chief economist About Zillow Zillow, Inc. operates the largest home-related marketplaces on mobile and the Web, with a complementary portfolio of brands and products that help people find vital information about homes, and connect with the best local professionals. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow's Chief Economist Dr. Stan Humphries. Dr. Humphries and his team of economists and data analysts produce extensive housing data and research covering more than 450 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. Zillow also sponsors the bi-annual Zillow Housing Confidence Index (ZHCI) which measures consumer confidence in local housing markets, both currently and over time. The Zillow, Inc. portfolio includes Zillow.com®, Zillow Mobile, Zillow Mortgages, Zillow Rentals, Zillow Digs®, Postlets®, Diverse Solutions®, Mortech®, HotPads™, StreetEasy® and Retsly™. The company is headquartered in Seattle.
MORE >
Commercial Real Estate Demand is Holding Steady Despite Overseas Concerns
MORE >
Pending Home Sales Slow in October but Remain Higher Than a Year Ago
  WASHINGTON (November 26, 2014)—Pending home sales declined in October but remained at a healthy level of activity and are above year-over-year levels for the second straight month, according to the National Association of Realtors®. The Pending Home Sales Index, a forward-looking indicator based on contract signings, decreased 1.1 percent to 104.1 in October from an upwardly-revised 105.3 in September, but is 2.2 percent higher than October 2013 (101.9). The index is above 100—considered an average level of contract activity—for the sixth consecutive month. Lawrence Yun, NAR chief economist, says despite October's modest decline, contract signings have remained at a healthy pace now for six straight months. "In addition to low interest rates, buyers entering the market this autumn are being lured by the increase in homes for sale and less competition from investors paying in cash," he said. "Demand is holding steady but would be more robust if it weren't for lagging wage growth and tight credit conditions that continue to hamper those individuals looking for relief from rising rents." The median existing-home price for all housing types in October was $208,300, which is 5.5 percent above October 2013. Monthly median price growth has averaged 5.8 percent in 2014 (through October) after averaging 11.5 percent last year. "The increase in median prices for existing-homes has leveled off, representing a healthier pace that has kept affordability in-check for buyers in many parts of the country while giving more previously stuck homeowners with little or no equity the ability to sell," says Yun. Yun says evidence of rising home prices allowing more willing homeowners the ability to sell can be found in NAR's annual survey released earlier this month, which revealed that the typical seller over the past year was in their home for 10 years before selling—an all-time survey high for tenure of home. NAR also recently released its economic and housing forecast for 2015 and 2016. Yun is forecasting existing-home sales this year to fall slightly below 2013 (5.1 million) to 4.9 million, and then increase to 5.3 million next year and 5.4 million in 2016. Yun expects the national median existing-home price to rise 4 percent both next year and in 2016. The PHSI in the Northeast inched 0.5 percent to 87.9 in October, and is now 3.4 percent above a year ago. In the Midwest the index slightly declined 0.6 percent to 100.6 in October, and is now 3.0 percent below October 2013. Pending home sales in the South decreased 1.0 percent to an index of 118.3 in October, but is still 3.9 percent above last October. The index in the West fell 3.2 percent in October to 98.1, but remains 4.1 percent above a year ago. The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.
MORE >
Top Real Estate Execs' Confidence Continues to Cool for U.S. Housing Market
MORE >
NAR Annual Survey Reveals Notable Decline in First-Time Buyers
  WASHINGTON, DC, Nov 3, 2014 -- Despite an improving job market and low interest rates, the share of first-time buyers fell to its lowest point in nearly three decades and is preventing a healthier housing market from reaching its full potential, according to an annual survey released today by the National Association of Realtors®. The survey additionally found that an overwhelming majority of buyers search for homes online and then purchase their home through a real estate agent. The 2014 National Association of Realtors® Profile of Home Buyers and Sellers continues a long-running series of large national NAR surveys evaluating the demographics, preferences, motivations, plans and experiences of recent home buyers and sellers; the series dates back to 1981. Results are representative of owner-occupants and do not include investors or vacation homes. The long-term average in this survey, dating back to 1981, shows that four out of 10 purchases are from first-time home buyers. In this year's survey, the share of first-time buyers* dropped 5 percentage points from a year ago to 33 percent, representing the lowest share since 1987 (30 percent). Lawrence Yun, NAR chief economist, says there are many obstacles young adults are enduring on their path to homeownership. "Rising rents and repaying student loan debt makes saving for a downpayment more difficult, especially for young adults who've experienced limited job prospects and flat wage growth since entering the workforce," he said. "Adding more bumps in the road, is that those finally in a position to buy have had to overcome low inventory levels in their price range, competition from investors, tight credit conditions and high mortgage insurance premiums." Yun adds, "Stronger job growth should eventually support higher wages, but nearly half (47 percent) of first-time buyers in this year's survey (43 percent in 2013) said the mortgage application and approval process was much more or somewhat more difficult than expected. Less stringent credit standards and mortgage insurance premiums commensurate with current buyer risk profiles are needed to boost first-time buyer participation, especially with interest rates likely rising in upcoming years." The household composition of buyers responding to the survey was mostly unchanged from a year ago. Sixty-five percent of buyers were married couples, 16 percent single women, 9 percent single men and 8 percent unmarried couples. In 2009, 60 percent of buyers were married, 21 percent were single women, 10 percent single men and 8 percent unmarried couples. Thirteen percent of survey respondents were multi-generational households, including adult children, parents and/or grandparents. The median age of first-time buyers was 31, unchanged from the last two years, and the median income was $68,300 ($67,400 in 2013). The typical first-time buyer purchased a 1,570 square-foot home costing $169,000, while the typical repeat buyer was 53 years old and earned $95,000. Repeat buyers purchased a median 2,030-square foot home costing $240,000. When asked about the primary reason for purchasing, 53 percent of first-time buyers cited a desire to own a home of their own. For repeat buyers, 12 percent had a job-related move, 11 percent wanted a home in a better area, and another 10 percent said they wanted a larger home. Responses for other reasons were in the single digits. According to the survey, 79 percent of recent buyers said their home is a good investment, and 40 percent believe it's better than stocks. Financing the Purchase Nearly nine out of 10 buyers (88 percent) financed their purchase. Younger buyers were more likely to finance (97 percent) compared to buyers aged 65 years and older (64 percent). The median downpayment ranged from 6 percent for first-time buyers to 13 percent for repeat buyers. Among 23 percent of first-time buyers who said saving for a downpayment was difficult, more than half (57 percent) said student loans delayed saving, up from 54 percent a year ago. In addition to tapping into their own savings (81 percent), first-time buyers used a variety of outside resources for their loan downpayment. Twenty-six percent received a gift from a friend or relative -- most likely their parents -- and 6 percent received a loan from a relative or friend. Ten percent of buyers sold stocks or bonds and tapped into a 401(k) fund. Ninety-three percent of entry-level buyers chose a fixed-rate mortgage, with 35 percent financing their purchase with a low-downpayment Federal Housing Administration-backed mortgage (39 percent in 2013), and 9 percent using the Veterans Affairs loan program with no downpayment requirements. "FHA premiums are too high in relation to default rates and have likely dissuaded some prospective first-time buyers from entering the market," says Yun. "To put it in perspective, 56 percent of first-time buyers used a FHA loan in 2010. The current high mortgage insurance added to their monthly payment is likely causing some young adults to forgo taking out a loan." Searching for and Buying a Home Buyers used a wide variety of resources in searching for a home, with the Internet (92 percent) and real estate agents (87 percent) leading the way. Other noteworthy results included mobile or tablet applications (50 percent), mobile or tablet search engines (48 percent), yard signs (48 percent) and open houses (44 percent). According to NAR President Steve Brown, co-owner of Irongate, Inc., Realtors® in Dayton, Ohio, although more buyers used the Internet as the first step of their search than any other option (43 percent), the Internet hasn't replaced the real estate agent's role in a transaction. "Ninety percent of home buyers who searched for homes online ended up purchasing their home through an agent," he said. "In fact, buyers who used the Internet were more likely to purchase their home through an agent than those who didn't (67 percent). Realtors® are not only the source of online real estate data, they also use their unparalleled local market knowledge and resources to close the deal for buyers and sellers." When buyers were asked where they first learned about the home they purchased, 43 percent said the Internet (unchanged from last year, but up from 36 percent in 2009); 33 percent from a real estate agent; 9 percent a yard sign or open house; 6 percent from a friend, neighbor or relative; 5 percent from home builders; 3 percent directly from the seller; and 1 percent a print or newspaper ad. Likely highlighting the low inventory levels seen earlier in 2014, buyers visited 10 homes and typically found the one they eventually purchased two weeks quicker than last year (10 weeks compared to 12 in 2013). Overall, 89 percent were satisfied with the buying process. First-time buyers plan to stay in their home for 10 years and repeat buyers plan to hold their property for 15 years; sellers in this year's survey had been in their previous home for a median of 10 years. The biggest factors influencing neighborhood choice were quality of the neighborhood (69 percent), convenience to jobs (52 percent), overall affordability of homes (47 percent), and convenience to family and friends (43 percent). Other factors with relatively high responses included convenience to shopping (31 percent), quality of the school district (30 percent), neighborhood design (28 percent) and convenience to entertainment or leisure activities (25 percent). This year's survey also highlighted the significant role transportation costs and "green" features have in the purchase decision process. Seventy percent of buyers said transportation costs were important, while 86 percent said heating and cooling costs were important. Over two-thirds said energy efficient appliances and lighting were important (68 and 66 percent, respectively). Seventy-nine percent of respondents purchased a detached single-family home, 8 percent a townhouse or row house, 8 percent a condo and 6 percent some other kind of housing. First-time home buyers were slightly more likely (10 percent) to purchase a townhouse or a condo than repeat buyers (7 percent). The typical home had three bedrooms and two bathrooms. The majority of buyers surveyed purchased in a suburb or subdivision (50 percent). The remaining bought in a small town (20 percent), urban area (16 percent), rural area (11 percent) or resort/recreation area (3 percent). Buyers' median distance from their previous residence was 12 miles. Characteristics of Sellers The typical seller over the past year was 54 years old (53 in 2013; 46 in 2009), was married (74 percent), had a household income of $96,700, and was in their home for 10 years before selling -- a new high for tenure in home. Seventeen percent of sellers wanted to sell earlier but were stalled because their home had been worth less than their mortgage (13 percent in 2013). Yun attributes the increase in seller's age and tenure in home to rebounding home prices. "Faster price appreciation this past year finally allowed more previously stuck homeowners with little or no equity the ability to sell after waiting the last few years," he said. Sellers realized a median equity gain of $30,100 ($25,000 in 2013) -- a 17 percent increase (13 percent last year) over the original purchase price. Sellers who owned a home for one year to five years typically reported higher gains than those who owned a home for six to 10 years, underlining the price swings since the recession. The median time on the market for recently sold homes dropped to four weeks in this year's report compared to five weeks last year, indicating tight inventory in many local markets. Sellers moved a median distance of 20 miles and approximately 71 percent moved to a larger or comparably sized home. A combined 60 percent of responding sellers found a real estate agent through a referral by a friend, neighbor or relative, or used their agent from a previous transaction. Eighty-three percent are likely to use the agent again or recommend to others. For the past three years, 88 percent of sellers have sold with the assistance of an agent and only nine percent of sales have been for-sale-by-owner, or FSBO sales. For-sale-by-owner transactions accounted for 9 percent of sales, unchanged from a year ago and matching the record lows set in 2010 and 2012; the record high was 20 percent in 1987. The share of homes sold without professional representation has trended lower since reaching a cyclical peak of 18 percent in 1997. Factoring out private sales between parties who knew each other in advance, the actual number of homes sold on the open market without professional assistance was 5 percent. The most difficult tasks reported by FSBOs are getting the right price, selling within the length of time planned, preparing or fixing up the home for sale, and understanding and completing paperwork. NAR mailed a 127-question survey in July 2014 using a random sample weighted to be representative of sales on a geographic basis. A total of 6,572 responses were received from primary residence buyers. After accounting for undeliverable questionnaires, the survey had an adjusted response rate of 9.4 percent. The recent home buyers had to have purchased a home between July of 2013 and June of 2014. Because of rounding and omissions for space, percentage distributions for some findings may not add up to 100 percent. All information is characteristic of the 12-month period ending in June 2014 with the exception of income data, which are for 2013. The 2014 NAR Profile of Home Buyers and Sellers can be ordered by calling 800-874-6500, or online at www.realtor.org/prodser.nsf/Research. The study costs $19.95 for NAR members and $249.95 for non-members. The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries. *Survey results represent owner-occupants and differ from separately reported monthly findings from NAR's Realtors® Confidence Index, which include all types of buyers. Investors are under-represented in this annual study because survey questionnaires are mailed to the addresses of the property purchased and generally are not returned by absentee owners. Results include both new and existing homes. Information about NAR is available at www.realtor.org. This and other news releases are posted in the "News, Blogs and Videos" tab on the website. Some statistical data in this release, as well as other tables and surveys, are posted in the "Research and Statistics" tab.
MORE >
Millions of Potential New Households Waiting Out the Recovery
MORE >
Fastest Moving Markets Are Home to High Populations of Engineers and Baby Boomers
SAN JOSE, CA, October 20, 2014 -- As real estate enters the seasonally slower fall, properties in 12 major metro areas are still selling quickly, less than two months on the market, according to the realtor.com® September National Housing Trend Report released today. These markets also demonstrate strength in standard economic indicators and share unexpected commonalities, including large populations of engineers and baby boomers. The 12 markets include: Oakland, CA San Jose, CA San Francisco, CA Denver, CO Washington, DC-MD-VA-WV(DC) Seattle-Bellevue-Everett, WA Houston, TX Los Angeles-Long Beach, CA Austin-San Marcos, TX Omaha, NE-IA(NE) San Diego, CA Melbourne-Titusville-Palm Bay, FL "When we see homes moving quickly in a particular market, we expect the trend to be supported by signs of local health like growth in economic production and employment," said Jonathan Smoke, chief economist for realtor.com®. "This month, we also observed more out of the ordinary trends including high proportions of math and science professionals, as well as baby boomers in each of the fast moving markets. As the technology industry grows and aging baby boomers decide to make housing moves to support their retirement, we'll continue to see strong housing demand associated with these factors." Markets with the Fastest Median Age of Inventory Income and occupation: Each market can be considered a land of opportunity with higher median incomes and larger proportions of six-figure salaries when compared to national averages. When examining local occupation distributions, these markets have more architects and engineers as well as professionals in the computer and mathematical industries. These fields represent 4.3 percent of occupations across the U.S., but in these markets account for 7.4 percent of careers. Age demographics: The U.S. population of 65 years and older is forecasted to grow by 18 percent by 2019, which will have significant impact on the real estate market as baby boomers make retirement-related housing decisions. In these markets the population over 65 is expected to see growth between 19 to 35 percent – well above the national average – in the next five years. The Palm Bay market is the only exception with projected growth of 15 percent. Gross domestic product (GDP): These fast moving markets are in full economic recovery or expansion mode when considering local estimated GDP, employment growth and declines in unemployment. The Washington, D.C. market is the weakest of the 12 markets, but likely due to the impact of sequestration. The Denver, Austin, and Houston areas top the list with the largest gains in GDP and employment. Population and household formation: All markets showed substantial growth from a population and household formation perspective. With the exception of the Palm Bay market, the population in every market grew faster than the national population between 2010 and 2014. Additionally, when reviewing Nielsen's five-year population growth forecast, all of the markets have a higher projected population growth than the U.S. overall. National Housing Indicators for September 2014 On a national level, median age of inventory is lower than last year with a reduced number of homes on the market. In September, homes spent approximately 90 days on the market, which is three days less compared to this time last year. Median listing prices held steady for the fourth consecutive month, maintaining a 7.7 percent gain year-over-year. According to the National Association of REALTORS®, inventory continued to demonstrate persistently low months' supply at five and a half months as compared with normal levels of six to seven months. New homes months' supply was even lower at nearly five months in August. "To truly relieve the inventory shortage on a sustained basis, new home construction needs to rise by at least 50 percent from the current levels," said Lawrence Yun, chief economist for the National Association of REALTORS®. For the complete realtor.com® September National Housing Trend Report, please visit: http://www.realtor.com/data-portal/realestatestatistics How Data Is Collected Realtor.com® regularly tracks real estate data and develops monthly reports featuring the number of listings, median age of inventory, and median list price across the U.S. and in specific markets, as well as provides year-over-year and month-over-month changes. These reports are the only ones pulled directly from the realtor.com® database, where 90 percent of listings are updated every 15 minutes from more than 800 multiple listing services (MLS). We regularly review and update historical data to provide the most accurate and comprehensive market information. As a result, some markets may be subject to periodic adjustments in data. For more information about Move, visit www.move.com or one of its many online real estate properties including realtor.com®. Supporting Resources Read more about realtor.com® Follow @realtordotcom on Twitter Like realtor.com® on Facebook Download realtor.com® mobile apps About Move, Inc. and realtor.com® Move, Inc. (NASDAQ: MOVE), a leading provider of online real estate services, operates realtor.com®, which connects people to the essential, accurate information needed to identify their perfect home and to the REALTORS® whose expertise guides consumers through buying and selling. As the official website for the National Association of REALTORS®, realtor.com® empowers consumers to make smart home buying, selling and renting decisions by leveraging its direct, real-time connections with more than 800 multiple listing services (MLS) via all types of computers, tablets and smart telephones. Realtor.com® is where home happens. Move's network of websites provides consumers a wealth of innovative tools and accurate information including Doorsteps®, HomeInsightSM, SocialBiosSM, Moving.com™, SeniorHousingNetSM, homefairSM and Relocation.com. Move supports real estate agents and brokerages by providing many services to grow their businesses, including ListHub™, the nation's leading listing syndicator and centralized intelligence platform for the real estate industry; TigerLead®; Top Producer® Systems; and FiveStreetSM; as well as many free services. Move is based in the heart of the Silicon Valley — San Jose, CA.
MORE >
RealtyTrac 2014 Election Housing Market Scorecard Shows Near 50-50 Split Between Housing Markets That Are Better Off Than Two Years Ago and Those That Are Worse Off or Toss-Ups
MORE >
High Negative Equity Among Gen X Homeowners Causing Housing Market Gridlock
SEATTLE, August 26, 2014 -- Generation X homeowners are far more likely to be underwater on their mortgage than millennial and Baby Boomer homeowners, a generational block that could limit the market for years, according to the second quarter Zillow® Negative Equity Report. The overall national negative equity rate fell to 17 percent in the second quarter, with more than 8.7 million homeowners with a mortgage owing more than their home was worth. Approximately 42.6 percent of Generation X homeowners (those aged from 35 to 49) are underwater on their mortgage, compared to 15.3 percent of millennial homeowners (20-34 years old) and 31.1 percent of Baby Boomers (50-64 years old). Because it is very difficult for an underwater homeowner to list their home for sale, the wide disparities among generations stand to have ripple effects throughout the housing market. Baby Boomers may not be able to find move-up buyers for their homes as Gen X remains stuck, and millennials can't move into the more affordable starter homes currently occupied by Gen X. In general, the least expensive homes most likely to be sought by millennial and first-time buyers are more likely to be underwater than middle and top-tier homes. Among all homes with a mortgage nationwide, 28.2 percent valued within the bottom third of home values were underwater in the second quarter, compared to 15.8 percent of homes in the middle tier and 9.2 percent in the top tierii. Nationwide, more than one-third of homeowners with a mortgage (34.8 percent) are effectively underwater, unable to sell their homes for enough profit to comfortably meet expenses related to selling a home and afford a down payment on a new one. "On the surface, the housing recession did not overtly impact millennials' housing wealth to the degree it did Generation X and the Baby Boomers, as most millennials were likely too young to have purchased a home during the bubble years," said Zillow Chief Economist Dr. Stan Humphries. "But as this huge generation begins to consider buying homes, they're entering a market still very much in recovery and far from anyone's definition of normal. Because so many homes are stuck in negative equity or are effectively underwater, the inventory of homes for sale is severely constrained, leading to more competition for those that are available. And millennials likely don't have the resources to compete with cash offers or engage in bidding wars. The reality is, negative equity is part of the new normal, and finding creative solutions to keeping homes affordable, available and accessible to this generation will be critical going forward." The national negative equity rate fell from 23.8 percent in the second quarter of last year and 18.8 percent in the first quarter. Negative equity will continue to recede as home values keep growing, though at a slower pace because the rate of home value growth is slowing and expected to continue to slow. Looking ahead, the national negative equity rate is expected to fall to 14.9 percent of all homeowners with a mortgage by the end of the second quarter of 2015, according to the Zillow Negative Equity Forecast. About Zillow, Inc. Zillow, Inc. (NASDAQ: Z) operates the largest home-related marketplaces on mobile and the Web, with a complementary portfolio of brands and products that help people find vital information about homes, and connect with the best local professionals. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow's Chief Economist Dr. Stan Humphries. Dr. Humphries and his team of economists and data analysts produce extensive housing data and research covering more than 450 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. Zillow also sponsors the bi-annual Zillow Housing Confidence Index (ZHCI) which measures consumer confidence in local housing markets, both currently and over time. The Zillow, Inc. portfolio includes Zillow.com®, Zillow Mobile, Zillow Mortgage , Zillow Rentals, Zillow Digs®, Postlets®, Diverse Solutions®, Agentfolio®, Mortech®, HotPads™, StreetEasy® and Retsly™. The company is headquartered in Seattle.
MORE >