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Homebuying Costs Aren't Coming Down in 2023
Buyers will face home price increases nationally (+5.4%) and in all of the 100 largest markets in 2023, but those who can afford to persist will find more inventory than last year (+22.8%) SANTA CLARA, Calif., Nov. 30, 2022 -- Amid higher mortgage rates and budgets squeezed by inflation, homebuyers looking for affordability in 2023 will find that prices aren't coming down, according to the Realtor.com® 2023 Housing Forecast released today. Instead, with the housing market beginning a gradual adjustment that could last through 2025, what next year will offer buyers is less competition for a growing number of for-sale homes. Overall in 2023,1 Realtor.com® forecasts that buyers and sellers can expect: Average mortgage rates of 7.4%, with early 2023 hikes followed by a slight retreat to 7.1% by year-end. Home sales prices won't come down, but growth will moderate to a single-digit yearly pace (+5.4%) for the first time since 2020. Rents (+6.3% year-over-year) will outpace home prices and likely hit new highs, further adding to budget pressures – especially for first-time buyers. An increase in existing homes for sale (+22.8% year-over-year), as the inventory refresh that began last summer accelerates. Home sales will decline 14.1% year-over-year to 4.53 million, the lowest level since 2012 (see table below). "Compared to the wild ride of the past two years, 2023 will be a slower-paced housing market, which means drastic shifts like price declines may not happen as quickly as some have anticipated. It will be a challenging year for both buyers and sellers, but an important one in setting the stage for home sales to return to a sustainable pace over the next two to three years," said Danielle Hale, Chief Economist for Realtor.com®. "With mortgage rates continuing to climb as the Fed navigates the economy to a soft-ish landing, higher costs will lead to fewer closings, but that doesn't mean homebuying will stop entirely in 2023. Americans who are determined to make a move will find that staying up-to-date on the market, flexibility, creativity and a healthy dose of patience will go a long way toward success in the year ahead." Key 2023 housing trends and wildcards A second wind in the second half. Although home sales are expected to slow overall in 2023, Realtor.com®'s forecast points to the possibility of a second wind in buying activity in the second half of the year. With mortgage rate hikes projected to continue through March, the Spring season will likely be less busy than in a typical year as buyers and sellers recalibrate their expectations around smaller budgets. This break could provide space for demand to renew as mortgage rates dip later in the year, when home shoppers will also have more options and bargaining power. A trifecta of budget barriers awaits buyers. In 2023, incomes are expected to grow (+3.9%), but not enough to offset higher mortgage rates (7.4%) and home prices (+5.4%), creating a trifecta of budget barriers. The typical monthly mortgage payment will be $2,430, 28% higher than in 2022, which will likely price many home shoppers out of the market. This will especially be a concern for first-time buyers. As rents will likely reach new highs, it will leave less room for saving towards a down payment. At the same time, some home shoppers may consider exploring new financial options like adjustable rate mortgages (ARMs), a trend that has already begun to take shape in 2022. It isn't '08. During the mid-2000s housing boom, home sales were elevated for more than five years, and it took another five years for home sales to recover from the economic aftermath. Comparatively, mortgage rate hikes have brought a quicker but less dramatic end to the recent frenzy, during which buyers have been better qualified than in '08. Moving forward, home price growth will slow and may even decline periodically as prices largely stabilize over the next two-to-three years. The homeownership rate is predicted to hold in 2023. Some homeowners could still make bank. In 2023, the typical homeowner is projected to gain $25,650 in equity as prices keep rising. With real estate wealth already much higher than pre-COVID, these trends offer a positive reality check for sellers who have been increasingly pessimistic about entering the market as listing prices have pulled back from last year's peak. While bidding wars won't be the norm in 2023, sellers who have owned their home for a longer period of time are still likely to make a profit. And those living in relatively affordable areas may still command offers above asking, driven by continued home shopper interest in relocating to lower-priced markets. 2023 puts the "wild" in wildcards: Political and economic events can always shake up the housing outlook, as was the case with major financial shifts in 2022. Along with factors including supply chain disruptions and the conflict in Ukraine, markets have largely begun to adjust for these changes, such as with the Fed's efforts to combat inflation with rate hikes. As such, forecasted 2023 housing trends don't anticipate a major shakeup like a recession, but it's still a possibility. Buyers and sellers should keep an eye out for risk signs like a substantial weakening in the jobs market, beyond the mild uptick in unemployment that is projected, as businesses are potentially disrupted by shifting geopolitical, financial and economic conditions. Although a potential recession may lead to lower mortgage rates, ultimately buyers' purchasing power would suffer. And for sellers, this would likely mean less demand and potential price drops. "Of the many factors that are expected to affect the housing market in 2023, affordability tops the list of issues most likely to make or break buyers' plans. Still, our forecast does offer promise for home shoppers who are well-prepared. Tools like Realtor.com®'s Buying Power can help you understand how various rate changes and options impact your budget, and seamlessly integrate into the home search experience to help you stay on track financially," Hale added. 2023 Forecasted Housing Metrics & Historical Data – National 2023 Forecasted Housing Metrics – 100 Largest U.S. Metros (in alphabetical order) Methodology Realtor.com®'s model-based forecast uses data on the housing market and overall economy to estimate values for these variables in the year ahead. About Realtor.com® Realtor.com® is an open real estate marketplace built for everyone. Realtor.com® pioneered the world of digital real estate more than 25 years ago. Today, through its website and mobile apps, Realtor.com® is a trusted guide for consumers, empowering more people to find their way home by breaking down barriers, helping them make the right connections, and creating confidence through expert insights and guidance. For professionals, Realtor.com® is a trusted partner for business growth, offering consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com.
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Redfin Reports Square Footage Is Now Worth More in the Suburbs Than Cities
As remote work continues to attract Americans to the suburbs, prices in cities are falling quickly from their peak as the overall housing market cools amid rapidly rising mortgage rates SEATTLE -- As home prices fall fastest in cities and mortgage rates rise, the value of a square foot in the suburbs has caught up with that of urban centers. That's according to a new report from Redfin, the technology-powered real estate brokerage, which found that space in suburban homes was worth more than space in urban homes in September for the first time since Redfin started tracking this data in 2018. The typical home in suburban neighborhoods nationwide was worth $206 per square foot during the four weeks ending September 25, just slightly higher than $205 in urban neighborhoods. Price growth is falling much faster in urban areas than other types of neighborhoods amid the overall housing-market slowdown. In urban neighborhoods nationwide, price per square foot increased 3.5% year over year–that's still up from a year ago, but down significantly from its pandemic peak. That's much smaller than the 9.5% growth in suburban areas. It grew 8.4% to $180 in rural areas. Price per square foot is a valuable tool for comparing price growth across different neighborhood types because it's a direct comparison of how the value of space is changing in one neighborhood type versus another. Growth in overall home-sale prices is also slowing fastest in cities. The typical home in urban areas nationwide sold for $310,000, up 2.7% from a year earlier. That's compared with a 6.6% increase to $385,000 in the suburbs and 4% to $333,000 in rural neighborhoods. Homes are the least expensive in urban areas because they're typically the smallest. Although space now costs just as much in the suburbs as it does in urban neighborhoods, moving farther from city centers has historically meant that homebuyers could get more space for their money. That mindset is still common, and today's house hunters are searching for deals as high mortgage rates, inflation and high home prices cut into their budgets. Another reason why price growth is slowing particularly fast in cities is because it rose so much last year. "Urban home prices soared in 2021 as homebuyers gravitated back to city centers as the pandemic waned and affluent Americans–motivated by record-low rates–decided they wanted the best of both worlds: Homes with plenty of space for working from home, but located in walkable areas near shops and restaurants," said Redfin Senior Economist Sheharyar Bokhari. "Today's buyers can't afford everything on their wish list, so many are prioritizing space over walkability." "Urban neighborhoods will likely see prices–and price per square foot–fall on a year-over-year basis before suburbs and rural areas," Bokhari continued. "House hunters may want to shift their search to urban neighborhoods, where they may find lower prices to help counteract the costliness of today's mortgage rates. And now that space is just as valuable in the suburbs, it's less likely that they'll sacrifice space." Housing activity has slowed in all three neighborhood types since the market started cooling in the spring. Home sales are down more than 15% year over year in urban, suburban and rural areas as many prospective buyers are priced out of the market. Sellers are pulling back, too, with new listings down at least 7% in all neighborhood types. Price per square foot is down 6% in the Bay Area's urban neighborhoods Price per square foot has declined from a year ago in urban parts of nine of the 91 metros in this analysis. Urban neighborhoods in the San Francisco metro saw their median price per square foot decline 6.2% year over year in the 12 weeks ending September 25. Though that's the biggest dip of the metros in this analysis, urban San Francisco homes still cost $976 per square foot–the most expensive in the U.S. by far. "Many Bay Area residents thought buying a home would never be in the cards, but that's changing now that prices are coming down and competition is rare," said Oakland Redfin agent Ken Hogan. "Buyers are savvy now. They're often able to negotiate prices down and even get things to sweeten the deal like sellers paying for closing costs or repairs, perks we haven't seen since the 2008 recession. For the buyers who can afford high mortgage rates, it's a good time to negotiate." Next comes New Orleans, which saw a 6% drop to $187 per square foot. It's followed by Philadelphia (3.2% decline to $188), New York (2.7% decline to $557) and Oakland, CA (2.2% decline to $603). Price per square foot also dropped in urban parts of Pittsburgh, Boise, ID, Chicago and Washington, D.C. San Francisco, New Orleans and Oakland are the only metros in the U.S. that saw their overall sale prices decline in September. Price per square foot rose most in Florida city centers Price per square foot increased most from a year ago in urban parts of Florida, especially in places hit hard by Hurricane Ian in September. In urban neighborhoods in Cape Coral, price per square foot rose 31.4% to $278 in the 12 weeks ending September 25. It's followed by North Port (27.9% to $444), Lakeland (25.1% to $201), Tampa (22.4% to $272), Fort Lauderdale (22.2% to $300) and Orlando (19.3% to $219). Cape Coral, North Port and Tampa have consistently been among the places with the nation's highest price growth this year as scores of homebuyers move into coastal Florida from other parts of the U.S. The area is popular with remote workers, retirees and second-home buyers even though it faces a high risk of climate-related disasters such as hurricanes. View the full report, including charts and metro-level data, here. About Redfin Redfin is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country's #1 real-estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 6,000 people.
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Millennial and Gen Z Renters Have Inflation Rates Above 11%, Compared with 8.5% For the Typical American
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'Shrinkflation' hits $1 million homes, down 397 square feet since 2020
Market share of $1 million-plus homes more than doubled during the pandemic SEATTLE, Aug. 30, 2022 -- Sales of homes costing $1 million more than doubled over the past three years, but as with many products in the grocery store, buyers are getting less than they used to, according to a new analysis by Zillow. Million-dollar homes are getting smaller. Homes that sold at or near $1 million contracted nearly 500 square feet, from a peak of 3,021 in the middle of 2020 to a valley of 2,530 in early 2022, according to floor plan data for Zillow listings. Home size bounced back before July and is now 2,624 square feet, down 397 square feet from the 2020 peak. "Buyers with seven-figure budgets shopping for homes during the pandemic were doing so coming off the longest period of economic growth in U.S. history and with the help of historically low interest rates," said Anushna Prakash, economic data analyst at Zillow. "Sales for expensive homes soared while buyers in the heat of competition accepted smaller layouts." The typical home in the $1 million range shrank in nearly every major metropolitan area. The largest declines are found in Phoenix — down 1,116 square feet from 2019 to 2022 — and Nashville, where these homes lost 1,019 square feet. Floor plans grew in just two major metros: by a closet in Minneapolis (36 square feet), and by at least a room and a half in St. Louis (406). The size of a $1 million home dropped in nearly every major metropolitan area Overall home sales were elevated during the pandemic, but have slowed in recent months as affordability challenges have pushed many buyers to the sidelines. The recent move of the market toward rebalancing has shifted competition away from mid- and high-tier properties, and back to the most affordable homes. Sales for homes priced at $1 million or more rose from 43,421 in the second quarter of 2019 to 90,110 in 2022, a new record volume. These once-rare digs also constitute a much greater portion of the total market. As home values skyrocketed across the country, the share of single-family homes that sold for $1 million or more has more than doubled, moving from 2.7% in 2019 to 2.5% in 2020 to 6.4% now. Portland led major metros in sales volume increase: The number of $1 million-plus sales soared by 253% since mid-2019. Austin, where home values are up 71% since mid-2019, saw sales jump by 220%. The only metro that witnessed a decline in the volume of transactions with a $1 million-plus price tag was Boston, where the share fell by 32%. Boston and other major East Coast metros had relatively low appreciation over the past three years compared to other regions. Portland, Austin and Riverside are where sales of $1 million-plus homes have risen the most since 2019. Sales rose the least in San Jose and San Francisco, and fell in Boston. One million dollars in San Jose will buy just three bedrooms, two bathrooms and just shy of 1,400 square feet of living space — about $715 per square foot, the highest amount among major metros. For context, a typical single-family home in San Jose was valued at over $1.5 million in July. Far from an exclusive membership, homes costing $1 million or more are the norm in the San Jose area, comprising 72% of the country's most expensive market. Those looking for the most bang for their million bucks should head to Hartford, Connecticut, then to the Midwest. Among the 50 major metros included in the study, Hartford has the lowest price per square foot at $205, followed closely by Indianapolis, Oklahoma City, Kansas City and Cincinnati. Though options in that range are limited in these areas, it's hard to deny the opulence afforded by the expense, with square footage upward of 4,500. *Table ordered by market size Methodology One million-dollar homes are defined as single-family homes that sold for between $950,000 and $1,050,000. Condominiums are excluded to better control for composition of homes across markets. One million-dollar-plus homes are defined as single-family homes that sold for $1,000,000 or more. Additionally, metropolitan areas that had fewer than 30 sales of $1 million homes in a quarter are excluded from the analysis, due to limited observations from which to draw trends. About Zillow Group Zillow Group, Inc. (NASDAQ: Z and ZG) is reimagining real estate to make it easier to unlock life's next chapter. As the most visited real estate website in the United States, Zillow® and its affiliates offer customers an on-demand experience for selling, buying, renting or financing with transparency and ease. Zillow Group's affiliates and subsidiaries include Zillow®, Zillow Premier Agent®, Zillow Home Loans™, Zillow Closing Services™, Trulia®, Out East®, ShowingTime®, Bridge Interactive®, dotloop®, StreetEasy® and HotPads®. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org).
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Bargaining Power is Back; 92% of Recent Sellers Accepted Buyer-Friendly Terms
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Redfin Reports an Uptick in Searches and Tours Highlight Buyers' Mortgage-Rate Sensitivity
Since mortgage rates came down from their June high, measures of early demand like online real estate searches and home tours have ticked up and/or stabilized SEATTLE -- A half-point drop in mortgage rates is drawing some homebuyers back to the market, according to a new report from Redfin, the technology-powered real estate brokerage. Redfin's Homebuyer Demand Index—a measure of requests for home tours and other home-buying services from Redfin agents—has increased 15 points since the week of June 19, reversing a 10-week trend of decreasing demand that began in mid-April. Searches of homes for sale on Google have also risen 11 percent since late May, and touring levels have been relatively stable for the past two weeks. However, the uptick in early demand has not carried through to home-purchase contracts or sales. Pending home sales are down, few homes are being listed, and inventory is piling up as homes take longer to sell. Home-sale prices continue to decline, with the year-over-year growth rate falling to 9%, its lowest level since August 2020. "The housing market seems to be settling into an equilibrium now that demand has leveled off," said Redfin chief economist Daryl Fairweather. "We may still be in for some surprises when it comes to inflation and rate hikes from the Fed, but for now an ease in mortgage rates has brought some relief to buyers who were reeling from last month's rate spike. Although the number of sales is down considerably from last year, first time-homebuyers with not a lot of cash are welcoming the decline in competition, and anyone who intends to stay in their home for many years doesn't need to worry about these short-term fluctuations in home prices." In reaction to this week's economic news, Redfin Deputy Chief Economist Taylor Marr added: "Whether we label the current economy a recession doesn't matter much except for sentiment. The under-the-hood stats—on consumption, real income and inflation—significantly worsened last quarter. Weaker economic growth and poor consumer sentiment are weighing on both homebuyers and sellers. The upside is that mortgage rates fall when the potential for economic growth is weak. This could help bring more rate-sensitive homebuyers off the fence to move forward with a purchase." Leading indicators of homebuying activity: For the week ending July 28, 30-year mortgage rates fell to 5.3%. This was down from a 2022 high of 5.81% but up from 3.11% at the start of the year. Fewer people searched for "homes for sale" on Google—searches during the week ending July 23 were down 26% from a year earlier, but are up 11% since late May. The seasonally-adjusted Redfin Homebuyer Demand Index was down 14% year over year during the week ending July 24, but has risen 15 points since the week of June 19. Touring activity as of July 10 was down 4% from the start of the year, compared to an 18% increase at the same time last year, according to home tour technology company ShowingTime. Mortgage purchase applications were down 18% from a year earlier during the week ending July 22, while the seasonally-adjusted index was down 1% week over week. Key housing market takeaways for 400+ U.S. metro areas: Unless otherwise noted, this data covers the four-week period ending July 24. Redfin's weekly housing market data goes back through 2015. The median home sale price was up to $384,871, up 9% year over year, the slowest growth rate since August 2020. Prices fell 2.9% from the peak during the four-week period ending June 19. A year ago they rose 0.9% during the same period. The median asking price of newly listed homes increased 14% year over year to $395,925, but was down 3% from the all-time high set during the four-week period ending May 22. Last year during the same period median prices were down just 1.1%. The monthly mortgage payment on the median asking price home hit $2,336 at the current 5.3% mortgage rate, up 42% from $1,648 a year earlier, when mortgage rates were 2.8%. That's down slightly from the peak of $2,482 reached during the four weeks ending June 12. Pending home sales were down 15% year over year. New listings of homes for sale were down 6% from a year earlier. Active listings (the number of homes listed for sale at any point during the period) rose 4% year over year—the largest increase since August 2019. 40% of homes that went under contract had an accepted offer within the first two weeks on the market, down from 45% a year earlier. 27% of homes that went under contract had an accepted offer within one week of hitting the market, down from 32% a year earlier. Homes that sold were on the market for a median of 20 days, up from 18 days a year earlier and up from the record low of 16 days set in May and early June. Days on market is increasing off its low point for the year faster than it did in 2021, up 4 days in the past eight weeks, compared to a 3 day increase in the eight weeks after the low point in 2021. 47% of homes sold above list price, down from 53% a year earlier. On average, 7.5% of homes for sale each week had a price drop, a record high as far back as the data goes, through the beginning of 2015. The average sale-to-list price ratio, which measures how close homes are selling to their asking prices, declined to 101.1%. In other words, the average home sold for 1.1% above its asking price. This was down from 102% a year earlier. View the full report, including charts and methodology, here. About Redfin Redfin is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country's #1 real-estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 6,000 people.
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Texas home builders are being 'whiplashed,' says US No. 1 agent
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Realtor.com 2022 Forecast Update: Real Estate Gets a Refresh from the Frenzy
Active listings will grow 15.0% year-over-year as the inventory recovery accelerates in 2H 2022; higher home sales prices (+6.6%) and mortgage rates (to 5.5%) add to affordability issues SANTA CLARA, Calif., June 13, 2022 -- As rising inflation and mortgage rates bring U.S. housing demand back from the 2021 frenzy, Realtor.com®'s newly-updated 2022 forecast predicts inventory will grow double-digits over 2021 and offer buyers a better-than-expected chance to find a home. Home sales will hit the second-highest level in 15 years, trailing only the 2021 pace, as rising incomes combined with higher housing costs continue to present a mixed bag of affordability issues. The updated forecast anticipates a summer break from a feverish pace of home sales that will provide space for active listings to grow at a faster year-over-year pace than originally projected (+15.0% vs. +0.3%). Combined with returning seasonality and builders ramping up production, these trends could lead to a refresh of the housing market by as early as this fall. "Financial conditions have shifted in a big way since the end of 2021 and the housing market is adjusting accordingly. As Americans grapple with higher prices for everyday expenses while today's buyers face housing costs that are up 50% from a year ago, recent home sales data shows some are taking a step back from the market," said Danielle Hale, Chief Economist for Realtor.com®. "Our updated 2022 forecast anticipates that demand will continue decelerating through the summer, providing breathing room for the inventory recovery to accelerate. As a result, this fall could be an opportune time to find a home – for both first-time and repeat buyers alike. Still, preparation will be key throughout 2022, as it continues to be a seller's market and asking prices remain high. For buyers who choose to wait until later in the year, take that time to assess your budget so you're set up with a strong financial footing whenever you're ready to move forward." Realtor.com® 2022 Housing Forecast – Mid-Year Update While Americans have faced a whirlwind of changes so far this year, a changing economic landscape is the biggest driver of updates to Realtor.com®'s 2022 housing forecast. Inflation has made a more significant and long-standing impact on real estate markets than was anticipated six months ago, and is reflected in trends like rapidly-climbing mortgage rates. Combined with record-high home listing prices and rents, home shoppers are feeling the strain on their budgets. As a result, buyer demand has been softening this Spring from its early 2022 surge. Higher costs will continue to challenge 2022 buyers, as mortgage rates have already far surpassed Realtor.com®'s earlier prediction of 3.6% and home sale price growth year-over-year is expected to more than double its originally-forecasted pace (+6.6% vs. 2.9%). At the same time, Realtor.com®'s updated projection for year-end 2022 mortgage rates (5.5%) anticipates that rates have largely adjusted for the bulk of expected 2022 Fed hikes. The rapid shifts in the economic landscape have some silver linings when it comes to housing affordability. With the unemployment rate near 50-year lows, employers are feeling the pressure to compete for talent, driving wage growth upwards from earlier year-over-year predictions (+3.8% vs. +3.3%). The competitive labor market may also give some buyers more negotiating power on workplace flexibility, creating more opportunities to relocate to relatively affordable housing markets. In fact, data from the first quarter of 2022 showed that 40.5% of Realtor.com® home shoppers viewed listings located outside of their current state, up from 33.4% in 2020. Overall, the updated 2022 forecast reflects a housing market that is charting a path toward more sustainability, relative to the past two years of ups and downs. Home sales are still projected to hit a near record-high pace in 2022 despite trailing 2021 levels (-6.7%) and their original forecast (+6.6%), while the projected homeownership rate will hold roughly steady (65.6% vs. 65.8%). For many Americans, housing affordability will remain a significant obstacle as demand continues to outmatch supply, although by a smaller margin than in recent years. Buyers struggling with higher housing costs can find resources via sites like Realtor.com®, including its down payment assistance tool. About Realtor.com® Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 25 years ago, and today through its website and mobile apps offers a marketplace where people can learn about their options, trust in the transparency of information provided to them, and get services and resources that are personalized to their needs. Using proprietary data science and machine learning technology, Realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, Realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com.
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Properties Online Adds New Real Estate Trends Feature to Its Award-Winning Real Estate Website Builder
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New HomeJab study shows impact of COVID-19 on real estate agent marketing spending trends
Study reveals stark geographic differences for real estate photography orders Cherry Hill, NJ - March 17, 2022 -- A new study of real estate photography data from HomeJab finds a significant geographic difference in the amount of marketing dollars agents spent before the pandemic for listings and the amount they spent coming out of the height of the COVID-19 outbreak. HomeJab, which provides real estate agents on-demand professional real estate photography, 3D virtual tours, aerial, and other visual production services in every major US market and all 50 states, studied more than 43,000 real estate photography assignments from 2017 to 2021 in five regions: Midwest, Northeast, Southeast, Southwest, and West. The new HomeJab research found: Real estate agents in the West, Northeast, and Midwest are spending more for real estate listing photography services coming out of the pandemic than before the start of the pandemic: West: Up nearly 9 percent (8.7%) Northeast: +7.5% Midwest: +5.6% Real estate agents in the Southwest and Southeast either spent more or modestly less for real estate listing photography services since the pandemic began: Southwest: -0.6% Southeast: +2.8% Nationwide, the average real estate listing photography services order was up 5.9% from post-pandemic orders, and now average $229 per order. Real estate agents in the West spend the most for real estate listing photography services, averaging $279 per order. Midwest real estate agents spend the least, averaging $200 per order, or nearly 40% less than real estate agents in the West. Northeast real estate agents spend the second least amount, averaging $225 an order. Southeast and Southwest real estate agents' average spend for real estate listing photography services average $229 and $235, respectively. "Professional real estate listing photography orders by real estate agents clearly remained a vital marketing investment in many of the hottest markets during the COVID-19 outbreak," said Joe Jesuele, founder and CEO of HomeJab. "Our research shows that during a time when homes were flying off the shelves, and multiple offers hit a new high, agents still understood the power of visual images for their real estate marketing," Jesuele added. The HomeJab study also examined trends in all 50 states and found: Prominent "Blue states"* show significant increases in marketing spend for real estate listing photography services since the pandemic began, including: New York: +27.9% Massachusetts: +18.5% California: +9.7% Illinois: +7.7% Prominent "Red states"* show either decreases or modest increases in marketing spend for real estate listing photography services since the pandemic began, including: South Carolina: -23.4% North Carolina: -16.5% Texas: -0.1% Florida: +6.3% For Jesuele, the fact that prominent Red states spent less was not surprising. "The banning of Open Houses happened faster and lasted longer in Blue states," he observed. "Red states were not as dependent on 3D tours and other photography services that helped remote buyers make home purchases. Buyers and sellers in Blue states it appears needed these services," he added. Another recent HomeJab study revealed that COVID-19 dramatically impacted the popularity of video/3D shoots for new property listings. A free copy of the new HomeJab study is available here. *Note: State classification is based on the last US Senate election in 2021 and includes only states where HomeJab had at least 400 comparison orders from 2017-2021. About the Study HomeJab, which has professional photographers available in all 50 states, studied over 43,000 real estate photography assignments placed by real estate agents between 2017 and 2021. About HomeJab HomeJab is America's most popular and reliable on-demand professional real estate photography and video service for real estate pros. Lightning-fast high-end visual production offerings also include immersive 3D interactive tours, floor plan creation, affordable virtual staging, and turnkey aerial services. A one-stop-shop for real estate listings, HomeJab.com features affordable and customizable shoots that create the most engaging visual content for faster home sales and enrich the listing agent's personal brand. HomeJab is available in every major US market in all 50 states and Puerto Rico, Jamaica, and Toronto. Learn more at HomeJab.com.
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Realtor.com Forecasts the Best Markets for First-Time Homebuyers in 2022
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Leading Economic and Housing Experts Predict Multiple Fed Interest Rate Hikes, Slowing Inflation and Home Price Growth in 2022
NAR unveils top 10 housing market "hidden gems" for 2022 during association's Real Estate Forecast Summit WASHINGTON (December 15, 2021) -- Expect slower housing price appreciation, easing inflation and rising interest rates in 2022, according to a survey of more than 20 top U.S. economic and housing experts. Lawrence Yun, NAR chief economist and senior vice president of research, unveiled the consensus forecast today during NAR's third annual year-end Real Estate Forecast Summit. For 2022, the group of experts predicted that annual median home prices will increase by 5.7%, inflation will rise 4% and the Federal Open Market Committee will twice increase the federal funds rate by 0.25%. "Overall, survey participants believe we'll see the housing market and broader economy normalize next year," Yun said. "Though forecasted to rise 4%, inflation will decelerate after hefty gains in 2021, while home price increases are also expected to ease with an annual appreciation of less than 6%. Slowing price growth will partly be the consequence of interest rate hikes by the Federal Reserve." Yun forecasts U.S. GDP to grow at the typical historical pace of 2.5%, barring any major, widespread transmission of the omicron COVID-19 variant. He expects the 30-year fixed mortgage rate to increase to 3.5% as the Fed raises interest rates to control inflation but noted this is lower than the pre-pandemic rate of 4%. The housing market performed better than it has in 15 years in 2021, with an estimated 6 million existing-home sales. As mortgage rates tick up slightly, Yun predicts existing-home sales will decline to 5.9 million in 2022. He also forecasts a modest increase in housing starts to 1.67 million as the pandemic's supply chain backlogs subside. Top 10 Housing Market "Hidden Gems" in 2022 NAR identified 10 housing markets as "hidden gems" that are expected to experience stronger price appreciation relative to other markets in 2022. In alphabetical order, the markets are as follows: Dallas-Fort Worth, Texas Daphne-Fairhope-Farley, Alabama Fayetteville-Springdale-Rogers, Arkansas-Missouri Huntsville, Alabama Knoxville, Tennessee Palm Bay-Melbourne-Titusville, Florida Pensacola-Ferry Pass-Brent, Florida San Antonio-New Braunfels, Texas Spartanburg, South Carolina Tucson, Arizona "The housing sector performed spectacularly in 2021 in many markets, with huge gains achieved in places like Austin, Boise and Naples," Yun said. "Several markets did reasonably well in 2021, but not as strong as the underlying fundamentals suggested. Therefore, in 2022, these ‘hidden gem' markets have more room for growth." NAR considered a market a hidden gem based on two categories: 1) if the market's ratio of median home price to median family income is in the lower half of the 379 metro areas analyzed and 2) if the following seven indicators reflecting the strength of housing demand for that market are in the upper half of metro areas – wage growth, job growth, ratio of the change in population to the sum of housing permits, population growth, net domestic migration, percentage of the population ages 25 to 44, and the percentage of households with broadband service. NAR's top 10 list only includes metro areas with populations of at least 200,000. To view NAR's Top 10 Housing Market Hidden Gems report, click here. The National Association of Realtors® is America's largest trade association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industries.
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Realtor.com Forecasts the Top Housing Markets of 2022
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Realtor.com 2022 Housing Forecast Reveals a Whirlwind Year Ahead for Buyers, Especially First-Timers
2022 will be very competitive as home sales hit a 16-year high and trends like workplace flexibility enable more homebuyer success SANTA CLARA, Calif., Dec. 1, 2021 -- Americans will have a better chance to find a home in 2022, but will face a competitive seller's market as first-time buyer demand outmatches the inventory recovery, according to the Realtor.com 2022 Housing Forecast. Additionally, with listing prices, rents and mortgage rates all expected to climb while incomes rise, 2022 will present a mixed bag of housing affordability challenges and opportunities. "Whether the pandemic delayed plans or created new opportunities to make a move, Americans are poised for a whirlwind year of home buying in 2022. With more sellers expected to enter the market as buyer competition remains fierce, we anticipate strong home sales growth at a more sustainable pace than in 2021," said Realtor.com® Chief Economist Danielle Hale. "Affordability will increasingly be a challenge as interest rates and prices rise, but remote work may expand search areas and enable younger buyers to find their first homes sooner than they might have otherwise. And with more than 45 million millennials within the prime first-time buying ages of 26-35 heading into 2022, we expect the market to remain competitive." Realtor.com® forecasts strong 2022 home sales and competition, as first-time buyers overwhelm recovering inventory levels Realtor.com® forecasts 2022 home sales (+6.6% year-over-year) will hit their highest level in 16 years as buyers remain active and for-sale inventory begins to recover from recent steep declines. 2022 buyers will face a competitive seller's market, with record-high listing prices, fast-paced sales and limited for-sale home options as existing-home listings continue to lag behind pre-COVID levels. The new construction supply gap of 5.2 million new homes may shrink somewhat in 2022 as builders continue to ramp up production with a projected increase of 5% year-over-year. With prospective sellers planning to increasingly enter the market this winter, Americans can look forward to more opportunities to make a successful home purchase. Affordability will be a growing consideration as mortgage rates and home prices rise, but a growing economy, strong employment market and workplace flexibility will enable more home shoppers to successfully buy their first homes without breaking their budgets. Additionally, with rents forecasted to grow at a faster annual pace (+7.1%) than for-sale home prices (+2.9%) in 2022, homebuying may become the more affordable option, when compared to renting, in many markets. Despite the challenging market, the homeownership rate is expected to grow slightly in 2022 (65.8%). 2022 housing trends reflect new homebuying opportunities combined with the past decade of growing challenges Millennials fuel fierce first-time buying competition for limited inventory through 2025: Millennial housing demand has been rising for years, but the pandemic ignited a first-time buying frenzy as the decade-long housing shortage converged with new opportunities for young buyers to pursue their first homes. Recent survey data shows millennials account for over half (53%) of prospective buyers who plan to purchase their first home within the next year. Despite positive signs of inventory's return to growth in 2022, this first-time buyer demand is expected to outmatch both new and existing-home inventory. As a result, home shoppers will face fierce competition in 2022 – and for at least the next three years as millennials finish their first time buying years, the relatively smaller Gen Z population increasingly enters the housing market, and more older Americans begin downsizing for retirement. Housing affordability issues will be a mixed bag: While historically-low mortgage rates helped buyers better manage monthly housing costs in 2021, affordability will be an important consideration in 2022 as mortgage rates climb and home prices continue to rise 2.9%. However, a number of factors will help keep homeownership in reach for many buyers, including expected income growth of 3.3% by year end and declining unemployment, expected to drop from a projected 4.8% in the last three months of 2021 to 3.5% during the same time period in 2022. Additionally, with rental prices expected to surge in 2022 as they catch-up from below-average growth seen during COVID, many markets may offer more affordable monthly first-time buying costs relative to rents. Shifting workplace dynamics create new homebuying opportunities: From workplace flexibility to higher incomes, 2022 will see employees call the shots on issues that will play an increasingly important role in the housing market. As the economy grows and unemployment declines, bigger paychecks will enable buyers to compete even as housing costs rise, while more power to negotiate flexible workplace arrangements will allow home shoppers to explore lower-priced housing markets further from expensive city centers. In fact, recent survey data shows nearly one-in-five prospective sellers (19%) are looking to move because they no longer need to live near the office, up from just 6% in the spring. COVID compounds demand for more space – both inside and outside the home: Demand for more space has been a consistent trend throughout the pandemic and one that is expected to carry into 2022. With the number of Realtor.com® viewers of suburban home listings rising 42.1% since the onset of COVID, the suburbs will continue to be more popular than big urban metros as home shoppers search for relatively affordable and larger homes. Recent data suggests builders will account for buyer preferences for more space in their 2022 production plans as new single-family homes have begun to get larger. However, with demand expected to outpace new construction growth and the typical 2,000 square foot single-family home price still rising at a double-digit annual pace in October (+16.7%), buyers may have to sacrifice extra space in order to afford a home in their desired area. Homeowner diversity will play an increasingly important role in the market: With U.S. demographic diversity increasing in younger generations, populations like Hispanic Americans will play a growing role in the 2022 housing market. Although they are underrepresented among homebuyers relative to their share of the population, the number of hispanic home shoppers is rising at a faster pace than non-Hispanics. Additionally, as the majority of new hispanic homeowners fell in the critical first-time buyer category, the population will increasingly drive housing demand and impact the homeownership rate in 2022 and beyond. "Our Housing Forecast suggests that we're in store for another dynamic year of activity, but 2022 will also come with growing pains as we navigate the path forward from the height of the pandemic toward a new normal," said George Ratiu, Manager of Economic Research for Realtor.com®. "With most real estate markets expected to be competitive in 2022, it's important to remember that you're in the driver's seat of your real estate journey. The bottom line for buyers is to make sure you're comfortable with your timeline and budget – and especially for younger buyers making this massive financial decision for the first time. For sellers, take into account your local market conditions as well as the likely increase in the number of homes for sale, and price yours competitively. The good news is that sites like Realtor.com® provide more advanced digital real estate tools than ever before, including personalized matching to high-quality real estate agents in your local area, to help you chart the best path forward for you and your family." Homebuyers can use Realtor.com® tools like its affordability calculator to get a sense of how much they can afford in the 2022 housing market, as well as the Realtor.com® app to set up personalized searches and price alerts on new listings matching their criteria. Additionally, sellers can use Realtor.com® resources like My Home and Seller's Marketplace to explore multiple home valuations, instant offers from Opendoor, the Knock Home Swap™ for those buying a next home at the same time, and more. Realtor.com® 2022 Housing Forecast – 100 Largest U.S. Metros (in alphabetical order) Methodology Realtor.com®'s model-based forecast uses data on the housing market and overall economy to estimate values for these variables in the year ahead. About Realtor.com® Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 25 years ago, and today through its website and mobile apps offers a marketplace where people can learn about their options, trust in the transparency of information provided to them, and get services and resources that are personalized to their needs. Using proprietary data science and machine learning technology, Realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, Realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com.
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'For Sale By Owner' Listings Tend to Be Used by Rural and Lower-Income Sellers
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34% of Recent Movers Live in Single-Income Households, Up From 29% Before the Pandemic
More than three-quarters of respondents report feeling happier after relocating SEATTLE, Nov. 8, 2021 -- More than one-third (34%) of people who moved during the coronavirus pandemic live in a home where only one adult has a full-time job, according to a new report from Redfin, the technology-powered real estate brokerage. By comparison, just 29% lived in a single-income household before the pandemic. This is based on an August 2021 Redfin survey of 1,023 U.S. residents who have moved to a new home since March 2020. As the portion of people living in single-income households increased, the share living in dual-income households declined. Slightly more than half (58%) of the recent movers Redfin surveyed live in a home with two adults working a full-time job, down from 62% before the pandemic. "While some people chose to move down to a single-income household, others had no choice," Redfin Deputy Chief Economist Taylor Marr said. "Thousands of Americans lost their jobs during the pandemic, and scores of parents had to leave the workforce when daycares and schools shut down. Most workers are rethinking where their careers fall on life's priority list." Remote work during the pandemic also enabled many families to relocate to more affordable places, where it's often more feasible to live in a home with just one income. In the third quarter, 30% of Redfin.com users were looking to move to a new metro area, up from 26% before the pandemic. Among the most popular destinations were Atlanta, San Antonio and Tampa, FL—all metros with median home sale prices below the national level. "A lot of the families that were able to move down to one income during the pandemic were high earners," Marr said. "High earners tend to have the flexibility to work remotely, which means it's easier for them to relocate to a more affordable place where only one adult needs to work full time. Lower-wage workers who are still required to show up in person, such as restaurant and grocery staff, are less likely to have the opportunity to move." A pandemic retirement boom may have also contributed to the increase in the share of single-income households. The pandemic drove more than 3 million baby boomers into early retirement, according to a study by the Federal Reserve Bank of St. Louis. 83% of Recent Movers Are Happier After Relocating More than three-quarters (83%) of respondents said they are at least a little happier after moving. Just 7% reported being less happy and 11% said their happiness is about the same. Austin, TX has seen an influx of out-of-towners move in during the pandemic. Many of them actually grew up in the area, left for a job, and are now able to come back and live near family, according to local Redfin real estate agent Debbie Newby. "A majority of my buyers today are Texas natives who are thrilled to be coming home," Newby said. "I recently worked with one young couple who had been living in the Bay Area and working in tech. The wife grew up in Austin and wanted to move back to be closer to her family members, one of whom was ill. They bought a home Near Zilker Park in January and are now working remotely. They're ecstatic to be in Austin." While Austin home prices have soared well above the national median during the pandemic, the Texas metro remains more affordable than major coastal hubs including San Francisco and New York. "Most people who move relocate to somewhere less expensive," Marr said. "Moving tends to make people happier because it means they're getting more bang for their buck—frequently in the form of additional space, better weather and schools, or a shorter commute to their workplace." View the full report, including graphs and methodology, here. About Redfin Redfin is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country's #1 real-estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 6,000 people.
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Impacts of Student Loan Debt on Homebuying Uncovered at Realtor Policy Forum
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CoreLogic Investor Homebuying Report Shows Slowing Purchase Activity Amid Shifting Market Dynamics: A Decade in Review
Report shows small investors make up a more significant share of real estate purchases Significant migration out of California pushes investor activity to more affordable areas IRVINE, Calif., August 30, 2021 -- CoreLogic, a leading global property information, analytics and data-enabled solutions provider, shared its Investor Homebuying report highlighting home U.S. purchase trends between 2011 and 2020. In the report, CoreLogic investigates activity nationally by both price tier and investor size and looks at which regions have had the most and least activity. A decade ago, there was a flurry of home purchase activity following the 2006 housing market crash as investors began capitalizing on low-cost, high-growth properties. However, this purchase activity peaked in 2018 and since then, the pace of investment has slowed. In 2019, the investment rate (the share of home purchases made by investors) in the U.S. housing market was 16.3%, and by 2020, it had slowed to 15.5%. Despite the decreasing rates, overall, investors have maintained a strong presence in the market during the last 10 years. Smaller investors are making up a more significant share of investors than at any point in the past and continue to gain their market share at the expense of their larger counterparts. This is likely due to large out-migration from expensive areas to more affordable ones, allowing smaller investors to snap up properties at lower rates. "At this critical juncture — the first year into the new decade and continually moving farther away from the pandemic — when the hot housing market cools down, we may see investor activity increase as they try to buy more properties at lower prices," said Molly Boesel, principal economist at CoreLogic. "Although investors seem to have given some of their coveted market share to buyers, it's hard to say how long this trend will last — or what the long-term implications will be on a larger scale." State and Metro Takeaways California dominated investor activity in 2011, with Los Angeles, San Jose, San Diego, San Francisco, Sacramento, Stockton and Riverside all in the top 10 areas with the highest investor activity. Despite this, no California metro areas made the top 10* in 2020. Cities in the Mountain West, the western Midwest and the South led investment activity by 2020, and investment has grown in metro areas like Boise, Idaho; Phoenix and Salt Lake City, as they tend to have lower prices and growing populations fueled by out-migration in California. Download the report here. Methodology: This report uses the industry-leading CoreLogic public record database. An investor is defined as an entity (individual or corporate) who retained three or more single-family properties simultaneously within the past 10 years. This report enhances the definition of an investor purchase that was introduced in a 2019 CoreLogic report. The previous report identified an investor purchase by looking for a corporate or non-individual identifier on the deed. Examples include LLCs, CORPs, and INCs, to name a few. This report includes those purchases but in addition, uses probabilistic record linkage methods to identify more investor purchases by seeing how many properties a person with the same name and address retains at any one time. About CoreLogic CoreLogic is a leading global property information, analytics and data-enabled solutions provider. The company's combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.
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Illinois, Florida and New Jersey Dominate Markets Most at Risk from Damage Related to Coronavirus Pandemic
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Wall Street Journal and Realtor.com Release Summer 2021 Emerging Housing Markets Index Report
Second quarterly report includes new data points on real estate taxes, and surfaces 13 new markets in the top 20, with Billings, MT, coming in at number one. NEW YORK and SANTA CLARA, Calif., July 20, 2021 -- The Wall Street Journal and Realtor.com today released the WSJ/Realtor.com Summer 2021 Emerging Housing Markets Index. The index ​analyzes key housing market data, as well as economic vitality and lifestyle metrics, to surface emerging housing markets that offer a high quality of life and are expected to see future home price appreciation. The Top-20 Emerging Markets for Summer 2021 are: Billings, Mont. Coeur d'Alene, Idaho Fort Wayne, Ind. Rapid City, S.D. Raleigh, N.C. Portland-South Portland, Maine Waco, Texas Johnson City, Tenn. Bangor, Maine Huntsville, Ala. Topeka, Kan. Jefferson City, Mo. Elkhart-Goshen, Ind. Colorado Springs, Colo. Eureka-Arcata-Fortuna, Calif. Springfield, Ohio Manchester-Nashua, N.H. Concord, N.H. Burlington, N.C. Elizabethtown-Fort Knox, Ky. Beginning this quarter, the index's methodology will include real estate tax data to offer a more comprehensive look at property ownership in each city. Areas with higher effective real estate taxes are ranked lower, while areas with lower effective real estate taxes are ranked higher. The addition of this metric generally boosted the ranking of areas in the South and West and caused many metro areas in the Northeast and Midwest, as well as Texas and Alaska, to be ranked lower. Taking a Deeper Dive Into the Top Markets: Returning Markets: The list saw 7 repeat markets among the top 20 including last quarter's number one spot, Coeur D'Alene, ​ID, and the new number one market, Billings, MT. Biggest Movers: Three markets among the top 20 jumped roughly 100 spots from last quarter. The biggest mover, Huntsville, AL, shot up 214 spots this quarter. Unemployment Improved: Across the 300 markets, unemployment dropped from 6.3% on average in the first quarter to 5.5% on average in the second quarter. Several of the returning top markets saw even stronger improvements. Smaller Markets Continue to Rank Well: Similar to last quarter, the top 20 emerging housing markets list is dominated by smaller markets. The average population size among the top 20 was just over 300,000, placing them overwhelmingly in the smaller half of the top markets. The largest market on the list is Raleigh, NC, which with a population of 1.4 million, is slightly smaller than last quarter's largest market that made the top 20, Austin, TX (2.2 million). Hot Real Estate Markets, but Affordable Home Prices Mean Room to Rise: The top 20 markets have a median listing price of $349,900 compared with a median of $361,900 in the top 300 largest U.S. markets. These lower prices mean that there is more room for home prices to grow, with prices in the top-20 areas increasing 13.7% year over year compared with 8.0% on average among all 300 areas evaluated. Markets Falling Out of the Top-20: In general, the markets that fell out of the top 20 didn't fall far. Nine of the 13 are still within the top 50, 11 of 13 are within the top 60, and 12 of 13 are within the top 100. The addition of real estate taxes to the index was not helpful for Madison, WI, which dropped 22 spots in the ranking due to that inclusion, alone. Read the full report here. Methodology: The ranking evaluates the 300 most populous core-based statistical areas, as measured by the U.S. Census Bureau, and defined by March 2020 delineation standards for eight indicators across two broad categories: real estate market (50%) and economic health & quality of life (50%). Each market is ranked on a scale of 0 to 100 according to the category indicators, and the overall index is based on the weighted sum of these rankings. The real estate market category indicators are: real estate demand (16.6%), based on average unique viewers per property; real estate supply (16.6%), based on median days on market for real estate listings, median listing price trend (16.6%). The economic and quality of life category indicators are: unemployment (6.25%); wages (6.251%); regional price parities (6.25%); the share of foreign born (6.25%); small businesses (6.25%); amenities (6.25%), measured as per capita "everyday splurge" stores in an area; commute (6.25%); and estimated effective real estate taxes (6.25%). About The Wall Street Journal The Wall Street Journal is a global news organization that provides leading news, information, commentary and analysis. Published by Dow Jones, The Wall Street Journal engages readers across print, digital, mobile, social, and video. Building on its heritage as the preeminent source of global business and financial news, the Journal includes coverage of U.S. & world news, politics, arts, culture, lifestyle, sports, and health. It holds 38 Pulitzer Prizes for outstanding journalism. About Realtor.com® Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, Realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, Realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit Realtor.com®.
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Realtor.com Survey Shows More than 40% of Aspiring Gen Z Homeowners Plan to Buy Within the Next Five Years
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Unusual Decline in Showings Reported for May Compared to April, Although Buyer Activity Remains at an All-time High Per Data from ShowingTime
113 markets – led again by Denver and Seattle – recorded double-digit showings per listing in May, down from 146 markets in April but still well ahead of last year's pace CHICAGO - (June 22, 2021) -- ShowingTime, the residential real estate industry's leading showing management and market stats technology provider, found that although May buyer traffic declined compared to April, it remains elevated from the same time last year, according to the ShowingTime Showing Index®. Of the 30 busiest markets for showings across the U.S., 28 recorded month-over-month declines from April. The exceptions were Orlando, Fla., and Raleigh, N.C., which were unchanged. Jackson, Tenn., bucked the trend, recording an 11 percent increase in the average number of showings per listing. May's ebb in traffic suggests the U.S. residential real estate market is adjusting and stabilizing, as inventory levels begin to rise again. "It's common for showing traffic to reach a high point in April and remain there for a couple of months," said ShowingTime President Michael Lane. "The unusual May decline doesn't take away from the fact that showings continue to be at an all-time high, with year-over-year traffic up nearly 65 percent in some regions of the country." Showings increased 49.6 percent year-over-year in the U.S., with the Northeast region leading the way with a 63.5 percent increase compared to last May. It was followed closely by the West's increase of 60.5 percent, while the South increased 43.7 percent and the Midwest was up 40.7 percent year over year. "Although showing traffic continues at a historic pace, we saw a substantial month-to-month decrease from April's levels," said ShowingTime Chief Analytics Officer Daniil Cherkasskiy. "As we stated last month, even if demand begins to weaken, we'll still be far from a buyer's market since the demand for real estate remains at an unprecedented level." May marks the one-year point in which showing activity resumed in earnest after pandemic-induced drops. The infusion of additional inventory should come as a relief to buyers. The ShowingTime Showing Index is compiled using data from more than six million property showings scheduled across the country each month on listings using ShowingTime products and services. The Showing Index tracks the average number of appointments received on active listings during the month. About ShowingTime ShowingTime is the residential real estate industry's leading showing management and market stats technology provider, with more than 1.5 million active listings subscribed to its services. Its products are used in 370 MLSs representing 1.4 million real estate professionals across the U.S. and Canada. Contact us at [email protected]
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Millennials Dominate Buying Market, Generation Z Now Active Buyers, Says NAR Report
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East Coast Housing Market Continues to Dominate Areas Most Vulnerable to Coronavirus Impact
Counties Most At Risk in Fourth Quarter of 2020 Remain Concentrated in States Running from Connecticut through Florida; New York City, Philadelphia and Chicago Areas Have Biggest Clusters of High-Risk Counties; West Region Remains Less Vulnerable IRVINE, Calif. - Jan. 21, 2021 -- ATTOM Data Solutions, curator of the nation's premier property database, today released its fourth-quarter 2020 Special Coronavirus Report spotlighting county-level housing markets around the United States that are more or less vulnerable to the impact of the virus pandemic. The report shows that pockets of the Northeast and other parts of the East Coast remained most at risk in the fourth quarter – with clusters in the New York City and Philadelphia, PA areas – while the West continued to be less vulnerable. The report reveals that New Jersey, Illinois, California, Louisiana, New York, Florida and Maryland had 40 of the 50 counties most vulnerable to the economic impact of the pandemic in the fourth quarter of 2020. They included eight suburban counties in the New York City metropolitan area, four around Philadelphia, PA, and two near Washington, D.C. Another six sat in the Chicago, IL, suburbs and two were in the St. Louis, MO area. Five of the seven western counties in the top 50 during the fourth quarter were in northern California, while Illinois had eight of the nine midwestern counties among those most vulnerable. Outside of Florida and Maryland, the only southern state with more than two counties in the top 50 was Louisiana. Fourth-quarter trends generally continued those found in the third quarter of 2020, but with different concentrations around several major metropolitan areas. The number of counties among the top 50 most at-risk was up from five to eight in the New York, NY, area and from three to six in the Chicago, IL, area, but down from four to two in the Washington, D.C., region and from four to one in the Baltimore, MD area. Markets are considered more or less at risk based on the percentage of homes facing possible foreclosure, the portion with mortgage balances that exceed the estimated property value and the percentage of average local wages required to pay for major home ownership expenses. The conclusions are drawn from an analysis of the most recent home affordability, equity and foreclosure reports prepared by ATTOM. Rankings were based on a combination of those three categories in 499 counties around the United States with sufficient data to analyze in the fourth quarter. Counties were ranked in each category, from lowest to highest, with the overall conclusion based on a combination of the three ranks. See below for the full methodology. The findings come as the national housing market continues to withstand the effect of the virus pandemic while also remaining vulnerable to a fall. Home values shot up in 2020 by more than 10 percent in about three-quarters of the country, even as significant portions of the economy were shut down or idled, spiking unemployment. But amid a halting economic recovery, the ongoing market boom faces major questions connected to how long the pandemic will last, whether another recession looms and if a surge of buyers seen last year continues. "Areas of the U.S. most at risk from damage connected to the Coronavirus pandemic spread out somewhat in the fourth quarter of 2020. But they still fell mainly along the East Coast, with significant pockets in certain areas, while other parts of the country seem to be less vulnerable," said Todd Teta, chief product officer with ATTOM Data Solutions. "This report is not a sign that any area actually took a fall in the fourth quarter. It's more a gauge of areas that may be more vulnerable if the market falters. In the coming months, much will depend on whether the country can halt the pandemic. We will continue to keep a close watch on home sales and prices to see how everything shakes out in 2021 and if changes hit different regions in different ways." Most vulnerable counties clustered around New York City, Philadelphia and Chicago Eighteen of the 50 U.S. counties most at-risk in the fourth quarter of 2020 from housing market troubles connected to the pandemic (from among the 499 counties with enough data to be included in the report) were in metropolitan statistical areas around New York, NY, Philadelphia, PA, and Chicago, IL. They included eight in or near the New York City suburbs (Bergen, Essex, Ocean, Passaic and Sussex counties in New Jersey, along with Dutchess, Orange and Rockland counties in New York), and four around Philadelphia, PA (Burlington, Camden and Gloucester counties in New Jersey plus Delaware County, PA). The other six were in the Chicago, IL, suburbs (DuPage, Kane, Kendall, Lake, McHenry and Will counties). The New York and Chicago metropolitan areas saw increases from the third quarter of 2020 in the numbers of counties in the top 50 list. While seven of Connecticut's eight counties made the top 50 list in the third quarter of 2020, just two did in the fourth quarter – Litchfield and Windham counties. The number of counties on the list in the Baltimore, MD, metro area also fell notably in the fourth quarter, from four to one (Carroll County) and dropped from four to two in the Washington, D.C, area (Charles County, MD, and Prince George's County, MD). The only western counties among the top 50 most at risk from problems connected to the Coronavirus outbreak in the fourth quarter of 2020 were Butte County (Chico), CA; El Dorado County, CA (outside Sacramento); Humboldt County (Eureka), CA; Madera County, CA (outside Fresno); San Bernardino County, CA; Shasta County (Redding), CA; and Santa Fe County, NM. Louisiana also had four counties in the top 50 during the fourth quarter – Caddo Parish (Shreveport), Livingston Parish (outside Baton Rouge), Orleans Parish (New Orleans) and Tangipahoa Parish (north of New Orleans). Florida had another three – Bay County (Panama City) Charlotte County (outside Fort Myers) and Flagler County (outside Daytona Beach). Higher levels of unaffordable housing, underwater mortgages and foreclosure activity in most-at-risk counties Major home ownership costs (mortgage payments, property taxes and insurance) consumed more than 30 percent of average local wages in 36 of the 50 counties that were most vulnerable to market problems connected to the virus pandemic in the fourth quarter of 2020. The highest percentages in those counties were in Rockland County (65 percent of average wages needed for major ownership costs); El Dorado County, CA, (outside Sacramento) (57.8 percent); Bergen County, NJ (outside New York City) (55.3 percent); Delaware County, PA (outside Philadelphia) (52 percent) and Beaufort County (Hilton Head), SC (51.7 percent). Nationwide, major expenses on the median-priced home typically consumed 29.6 percent of average wages. At least 15 percent of mortgages were underwater in the third quarter of 2020 (the latest data available on owners owing more than their properties are worth) in 33 of the 50 most at-risk counties. Nationwide, 12.3 percent of mortgages fell into that category. Those with the highest underwater rates in those counties were Lowndes County (Valdosta), GA (36.8 percent of mortgages underwater); Hardin County, KY (outside Louisville) (32.8 percent); Cumberland County (Vineland), NJ (30.8 percent); Caddo Parish (Shreveport), LA (28.6 percent) and Atlantic County (Atlantic City), NJ (27.8 percent). More than one in 2,500 residential properties faced a foreclosure action in the third quarter of 2020 (the latest available data) in 29 of the 50 most at-risk counties. Nationwide, one in 5,048 homes were in that position. (Foreclosure actions dropped about 80 percent last year amid a federal moratorium on banks taking back properties from homeowners behind on their mortgages during the virus pandemic.) Those with the highest rates in those counties were Hardin County, KY (outside Louisville) (one in 1,032 residential properties facing possible foreclosure); Onslow County (Jacksonville), NC (one in 1,090); Caddo Parish (Shreveport), LA (one in 1,361); Saint Clair County, IL (outside St. Louis, MO) (one in 1,409) and Livingston Parish, LA (outside Baton Rouge) (one in 1,562). Counties least at-risk concentrated in Colorado, Massachusetts, Minnesota and Texas Eighteen of the 50 counties least vulnerable to pandemic-related problems from among the 499 included in the fourth-quarter report were in Colorado, Massachusetts, Minnesota and Texas. They were concentrated in the Denver, Boston, Minneapolis, Houston and Dallas metro areas. The largest of the 50 least at-risk counties were Harris County (Houston), TX; King County (Seattle), WA; Clark County (Las Vegas), NV; Tarrant County (Fort Worth), TX and Middlesex County, MA (outside Boston). Others among the 50 least at-risk counties with a population of at least 500,000 included Hennepin County (Minneapolis), MN; Suffolk County (Boston), MA; Essex County, MA (outside Boston); Norfolk County, MA (outside Boston) and Denver County, CO. Lower levels of unaffordable housing, underwater mortgages and foreclosure activity in less vulnerable counties Major home ownership costs (mortgage, property taxes and insurance) consumed less than 30 percent of average local wages in 33 of the 50 counties that were least at-risk from market problems connected to the virus pandemic in the fourth quarter of 2020. The lowest percentages in those counties were in Marion County (Indianapolis), IN (18.6 percent of average local wages required for major ownership costs); Benton County (Rogers), AR (19.6 percent); Potter County (Amarillo), TX (20.4 percent); Niagara County (Niagara Falls), NY (20.5 percent) and Macomb County, MI (outside Detroit) (20.6 percent). More than 15 percent of mortgages were underwater in the third quarter of 2020 (with owners owing more than their properties are worth) in none of the 50 least at-risk counties. Those with the lowest rates in those counties were Chittenden County (Burlington), VT (3.5 percent); King County (Seattle), WA (4.8 percent); Washington County, OR (outside Portland) (4.8 percent); Marion County (Salem), OR (5.2 percent) and Boulder County, CO (5.2 percent). More than one in 2,500 residential properties faced a foreclosure action in the third quarter of 2020 in none of the 50 least at-risk counties. Those with the lowest rates in those counties included Eau Claire County, WI (no residential properties facing possible foreclosure); Norfolk County, MA (outside Boston) (one in 277,275); Marion County (Salem) OR (one in 125,190); Clark County (Las Vegas), NV (one in 88,856); Suffolk County (Boston), MA (one in 83,310) and Middlesex County, MA (outside Boston) (one in 79,073). Report methodology The ATTOM Data Solutions Special Coronavirus Market Impact Report is based on ATTOM's third-quarter 2020 residential foreclosure and underwater property reports and fourth-quarter 2020 home affordability report. (Press releases for those reports show the methodology for each.) Counties with sufficient data to analyze were ranked based on the percentage of residential properties with a foreclosure filing during the third quarter of 2020, the percentage of properties with outstanding mortgage balances that exceeded estimated market values in the third quarter of 2020 and the percentage of average local wages need to afford the major expenses of owning a median-priced home in the fourth quarter of 2020. Ranks then were added up to develop a composite ranking across all three categories. Equal weight was given to each category. Counties with the lowest composite rank were considered most vulnerable to housing market problems. Those with the highest composite rank were considered least vulnerable. About ATTOM 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 20TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, property data APIs, real estate market trends, marketing lists, match & append and introducing the first property data delivery solution, a cloud-based data platform that streamlines data management – Data-as-a-Service (DaaS).
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Is the Beach So Last Year?
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63% of 2020 Homebuyers Made an Offer Sight Unseen, Shattering Previous Record
About 1 in 10 home tour requests to Redfin agents are for a remote video tour SEATTLE, Jan. 14, 2021 -- Nearly two thirds (63%) of people who bought a home last year made an offer on a property that they hadn't seen in person, the highest share since at least 2015. That's up from 32% a year earlier, and 45% in July, which was previously the high point, according to a new report from Redfin, the technology-powered real estate brokerage. Redfin's report is based on a survey it commissioned in November and December of more than 1,900 homebuyers across 32 major markets. "The virtual home tour is here to stay," said Redfin chief economist Daryl Fairweather. "Homebuyers who are searching for a home out of town and don't have the time or ability to view the home in person will use virtual tours as their primary means of viewing a home. The increased use of this technology, coupled with more people relocating, mean the sight-unseen trend will continue, and the majority of homebuyers will make offers sight unseen during their search for a home in 2021." Video tours with a Redfin agent have surged this year, from less than 1% of Redfin tour requests at the beginning of 2020 to about 1 in 10 today. Similarly, monthly views of 3D walkthroughs on Redfin.com have increased 563% since February. "Live-video home tours have gone from futuristic fantasy to an everyday part of the homebuying process," said Connecticut-based Redfin agent, Mary Ellen Wisneski. "Over video I'm able to show my buyers closeups of anything in the home and describe peculiar details they can't experience in 3D walkthroughs or photographs—it's like they are actually there with me." Much of this virtual homebuying activity is being fueled by a surge in migration as remote work becomes much more common. In 2020, 27.8% of Redfin.com users were looking to relocate, an all-time high and up 2.3 percentage points from 25.5% in 2019. To read the full report, please click here. About Redfin Redfin is a technology-powered residential real estate company, redefining real estate in the consumer's favor in a commission-driven industry. We do this by integrating every step of the home buying and selling process and pairing our own agents with our own technology, creating a service that is faster, better and costs less. We offer brokerage, iBuying, mortgage, and title services, and we are the #1 nationwide brokerage website, offering a host of online tools to consumers, including the Redfin Estimate. We represent people buying and selling homes in over 90 markets in the United States and Canada. Since our launch in 2006, we have saved our customers over $800 million and we've helped them buy or sell more than 235,000 homes worth more than $115 billion.
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More than a Third of Young Americans are More Interested in Smart Home Technology Due to the Pandemic
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Realtor.com Top Housing Markets: Tech Hubs and State Capitals Will Dominate 2021
Sacramento, Calif., San Jose, Calif. and Charlotte, N.C. are forecasted to see the highest home price appreciation and sales growth in 2021 SANTA CLARA, Calif., Dec. 7, 2020 -- Millennial homebuyers, relative affordability, and strong local economies will drive realtor.com's Top Markets of 2021 to lead the nation in a year when real estate is expected to be strong coast to coast. This year's list in rank order includes: Sacramento, Calif., San Jose, Calif., Charlotte, N.C., Boise, Idaho, Seattle, Phoenix, Harrisburg, Pa., Oxnard, Calif., Denver, and Riverside, Calif. (see below for full 100 market ranking). Based on realtor.com®'s local market forecast, the areas on this list are expected to see the strongest home price and sales growth in the U.S. in 2021. In fact, home prices across the top 10 markets are forecasted to increase by 6.9% and sales by 13.1% year-over-year, which is significantly higher than the national projection of 5.7% price appreciation and 7.0% sales growth. "This past year, we've all become more reliant on technology to work, learn, and maintain personal connections. The technology hubs that make this possible are thriving, as are their housing markets," said realtor.com®'s Chief Economist, Danielle Hale. "Additionally, the relative stability of government jobs in the past year has driven home prices and sales in several state capitals to the top. Home buyers, particularly younger first-time buyers, looking in one of these markets should expect rising prices and heavy competition. Meanwhile, sellers will remain in a position of power, but will find themselves on the other side of the bargaining table when buying their next home." Tech Titans A common driver of this year's top markets is the prevalence of high paying tech jobs. Tech salaries in Sacramento, San Jose, Boise, Denver, and Seattle have driven home prices through the roof over the last several years and this trend is expected to continue in 2021. Additionally, areas such as Charlotte and Phoenix are quickly establishing themselves as rising tech hubs with a plethora of jobs in technology, as well as education, government and healthcare. In fact, the projected unemployment rate for 2021's top markets is 7.9% compared to the national average of 8.2%. Tech-related jobs make up an average of 8.7% of the workforce in this year's top markets list compared to 6.4% of the U.S. as a whole. Relative Affordability Home prices in eight of the top 10 markets are more expensive than the average of the top 100 markets. But many are relatively affordable when compared to their nearby counterparts or offer significantly more square footage for a similar price. For example, buyers priced out of New York ($216 per sq.ft.) can find increased space and affordability in Harrisburg ($122 per sq.ft.), while buyers in Sacramento ($284 per sq.ft.) can get more bang for their buck than nearby San Francisco ($679 per sq.ft.). This is also true when comparing Oxnard ($413 per sq.ft.) and Riverside ($247 per sq.ft.) with Los Angeles ($556 per sq.ft.). Millennial Magnets On average, the top 10 markets have a larger share of millennials (14.1%) than the U.S. as a whole (13.5%). A market's ability to lure millennials is a good indicator of the livability of the area including: job opportunities, dining, and entertainment. However, when it comes to millennials purchasing homes in the top 10, two trends are emerging. In half of this year's top markets, including: Charlotte, Boise, Phoenix, Harrisburg and Riverside, millennials are already homeowners and expected to make the majority of the home purchases that drive home price growth and sales. In the other group of markets, such as San Jose, Seattle, and Denver, the high cost of living has made homeownership a difficult accomplishment, not only for millennials but for all generations. The high number of millennials in the market shows how popular these markets have become, but older, more financially established generations will be the ones purchasing the majority of the homes next year. State Capitals Half of the top markets are state capitals, including: Sacramento, Boise, Phoenix, Harrisburg and Denver. The strong government presence in these areas offers stability for their local economy and jobs markets. This is especially important after a year when a global pandemic has significantly disrupted local economies across the nation. On top of the government jobs, these areas also have strong job diversity in both the public and private sectors, including education, healthcare, technology, manufacturing and military, which is positioning them for solid growth in the future. The average GDP growth rate for the top markets is forecasted to be 5.34% in 2021, versus 4.85% for the top 100 metros. 2021 Top Markets 1. Sacramento Median home price: $554,050 Home price change: +7.4 percent Sales change: +17.2 percent Combined sales and price growth: +24.6 percent Sacramento takes first place on this year's top markets list. Due to the increased freedom to work remotely, buyers from the San Francisco Bay Area are flocking to California's state capital for the increased affordability, without having to completely uproot their lives in Northern California. The area draws a diverse crowd ranging from first time homebuyers to empty nesters looking to downsize. Many young families are also drawn to Sacramento for the area's strong school system, including West Campus high school which has a 99% graduation rate and received a 10/10 on greatschools.org. When residents want a change of scenery, it's a short trip to Lake Tahoe, wine country or San Francisco. 2. San Jose Median home price: $1,199,050 Home price change: +10.8 percent Sales change: +10.8 percent Combined sales and price growth: +21.6 percent Also located in Northern California, San Jose is the largest city in Silicon Valley. Apple, Google, Facebook, Linkedin and even realtor.com® are all within commuting distance of San Jose. Unsurprisingly, the area's strong economy and top notch school system, including Lynbrook High School (10/10 greatschools.org), lure top tech talent from all over the country. Those looking for a change of scenery can easily drive to San Francisco or the nearby mountains. Without a ton of room for new construction, inventory in the area is tight, so serious buyers should expect to pay above asking price. 3. Charlotte Median home price: $368,819 Home price change: +5.2 percent Sales change: +13.8 percent Combined sales and price growth: +19.0 percent Rounding out the top three on this year's top markets list is Charlotte. The area's high quality of life, great weather, strong school system including Providence High (10/10 greatschools.org) and rich history draw a diverse mix of both young and old buyers. Millennials are beginning to transition from the downtown city center toward the suburbs as they raise families and take advantage of the increased affordability and extra space. With access to both the beach and mountains, Charlotte has something for everyone, including kayaking along the Catawba River and hiking the Carolina Thread Trail. Housing supply has been tight, but new construction is booming as builders try to meet current demand. Charlotte was No. 7 on 2018's top markets list. 4. Boise Median home price: $445,000 Home price change: +9.1 percent Sales change: +9.8 percent Combined sales and price growth: +18.9 percent Idaho's capital city is firmly establishing itself as a rising tech hub in the U.S. The area's high quality of life and strong economy draw people from all over the country, with the biggest influx coming from Washington, Oregon and California. This trend has accelerated as the ability to work remotely has drawn many young workers looking for a slower pace of life, increased affordability, and access to the area's many outdoor amenities. Boise offers residents a mild four season climate, a vibrant revitalized downtown with plenty of entertainment, as well as a plethora of restaurants and boutique shopping. Outdoor enthusiasts are drawn to the area's adrenaline pumping outdoor activities such as white water rafting and four different ski resorts. New construction has been booming in Boise over the past few years as builders scramble to keep up with rising demand. Boise is no stranger to realtor.com®'s Top Markets list, it was No. 1 in 2020 and No. 8 in 2019. 5. Seattle Median home price: $629,050 Home price change: +9.7 percent Sales change: +8.9 percent Combined sales and price growth: +18.6 percent Coming in fifth is Seattle, which is home to some of America's largest and most well known companies including: Amazon, Starbucks, Costco, Microsoft and Nordstrom. The area's booming tech scene, high quality of life, and access to both the water and mountains draws a crowd from all over the country. New and growing families will find a strong school system, including Greenwood Elementary School which scored a perfect 10/10 on greatschools.org, as well as four other schools which received scores of 9/10. Driven by high home prices and the desire for more space, buyers are beginning to search for homes further from the downtown center. This is especially true for first time homebuyers. 6. Phoenix Median home price: $412,260 Home price change: +7.0 percent Sales change: +11.4 percent Combined sales and price growth: +18.4 percent Arizona's state capital has become a magnet for both younger buyers looking to take advantage of the affordable cost of living, as well as retirees who want to soak up the sun. Recently, the area has seen a large influx of people from pricey West Coast markets -- San Francisco, Seattle and Portland. While builders have struggled to meet the rising demand for housing, Phoenix set a record for new home permits in March, April and May, so new inventory is on the way. Phoenix offers residents all the big city amenities of shopping, dining and entertainment, without the traffic of larger metropolitan cities. Additionally, those who want to get out and hit the golf course have over 400 courses to choose from. Phoenix is a business friendly city and has a diverse list of large employers in both the public and private sectors from education, government and healthcare to technology, manufacturing and military. Phoenix was No. 5 on 2019's top markets list. 7. Harrisburg Median home price: $262,000 Home price change: +3.8 percent Sales change: +14.4 percent Combined sales and price growth: +18.2 percent The state capital of Pennsylvania has become a hot spot for buyers looking for the quiet suburban lifestyle, more space, and increased affordability. Harrisburg is centrally located near New York, Baltimore, Washington D.C., Pittsburgh and Philadelphia. Millennials in particular have been drawn to the area as both first time homebuyers and move-up buyers looking for more space for their growing families. Harrisburg boasts a strong job market not only for government employees working at the state capital, but those in healthcare and shipping industries as well. One of the biggest draws to the area is the ability to go from downtown, to the suburbs, to more rural areas, in under 15 minutes. 8. Oxnard Median home price: $824,000 Home price change: +5.5 percent Sales change: +12.5 percent Combined sales and price growth: +18.0 percent Located north of Los Angeles on the Pacific Coast is Oxnard, Calif. The area is a mix of farmland and Pacific Coast beaches, such as Hollywood Beach -- a second home market for wealthy Angelanos looking for a break from the hustle and bustle of city life. Farmers in the area grow strawberries and lima beans and the annual Strawberry Festival is a big draw for Southern California locals. Thanks to its affordability, the area has seen a boost in demand from buyers seeking relief from Los Angeles and Orange County home prices. Beach homes in the area are significantly more affordable than those in Malibu or Santa Monica, making this a popular alternative for buyers hoping to get more bang for their buck. 9. Denver Median home price: $520,000 Home price change: +5.4 percent Sales change: +12.5 percent Combined sales and price growth: +17.9 percent Colorado's state capitol is located just outside of the Rocky Mountains. The area's housing market has been red-hot for the last several years and builders have struggled to keep up with the high demand for housing. Though the city is rapidly expanding, it still holds much of its Old West charm, and its cost of living remains relatively affordable compared to other Western markets. Many of Denver's residents are outdoor enthusiasts who love to take advantage of the area's easy access to mountains, rivers and lakes. No matter the season, there is an outdoor activity closeby. Denver's high quality of life is a major draw for many residents, as well as all the amenities of downtown. With boutique shopping, dining, and endless entertainment, the area has been supremely popular with millennials. Due to the area's spike in demand, home prices have grown rapidly, causing many first time home buyers to search further out from the downtown center. 10. Riverside Median home price: $475,050 Home price change: +5.5 percent Sales change: +12.4 percent Combined sales and price growth: +17.9 percent Located in the Inland Empire, Riverside, Calif., is named for its location along the Santa Ana River. Riverside draws many people who want to take advantage of Southern California's temperate weather, but don't want to pay Los Angeles or Orange County home prices. Riverside is centrally located, just 30 minutes to the beach, mountains or desert, making it a great location for anyone that loves to be outdoors. Additionally, it's in close proximity to Southern California's attractions of Disneyland in Anaheim, skiing in the San Bernardino Mountains, wine tasting in Temecula or the endless entertainment in Los Angeles. Due to Southern California's high cost of living, Riverside's relative affordability and strong school system including Riverside Stem Academy (9/10 greatschools.org), have made it a popular destination for first time homebuyers, growing families, and retirees. 2021 Top Housing Markets Ranked About realtor.com® Realtor.com® makes buying, selling and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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Pending Sales Return to Typical Seasonal Trend, Still Up 28% From 2019
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Realtor.com 2021 Housing Forecast: Sellers Will Get Top Dollar as Buyers Struggle with Affordability
2021 is full of wildcards including COVID-19 and the possibility of a double dip recession SANTA CLARA, Calif., Dec. 2, 2020 -- Amid COVID-19 uncertainty, 2021 will be a robust sellers market as home prices hit new highs (+5.7%) and buyer competition remains strong, according to the realtor.com 2021 housing forecast released today. Inventory is expected to make a slow but steady comeback, which will give buyers some relief. However, increasing interest rates and prices will make affordability a challenge throughout the year. "The 2021 housing market will be much more 'normal' than the wild swings we saw in 2020. Buyers may finally have a better selection of homes to choose from later in the year, but will face a renewed challenge of affordability as prices stay high and mortgage rates rise," said realtor.com® Chief Economist, Danielle Hale. "With less cash and no home equity, millennial and Gen Z first-time buyers will be impacted the most by rising home prices and interest rates. While waiting until the fall or winter months of 2021 may mean more home options to choose from, buyers who can find a home to buy earlier in the year will likely see lower prices and mortgage rates." Realtor.com® 2021 Housing Market Forecast Realtor.com® forecasts mortgage rates will continue to hover near 3% then slowly rise to 3.4% by the end of the year. Home sales are expected to increase 7% and new construction will increase 9% over the previous year. However, the strength of the 2021 housing market is highly dependent on the containment of COVID-19 pandemic and staving off a double dip recession. What 2021 will be like for buyers? Buyers will find some relief in 2021 as more homes hit the market, but many will struggle with affordability as home prices continue to rise. Mortgage rates will slowly rise toward 3.4% and will no longer help offset the record breaking prices. Additionally, the time it takes to sell a home will slow from late 2020's frenzy, but fast sales will remain in many parts of the country, which will be particularly difficult for first-time buyers learning the ins and outs of homebuying. What will 2021 be like for sellers? Sellers will continue to hold the upper hand throughout 2021 as the number of buyers in the market outweighs the number of homes for sale. Home prices won't grow as fast as they did in 2020, but steady increases will continue to push home prices to new highs. Additionally, sellers can expect their home to sell relatively quickly in 2021, so having their next home lined up will be key. Many sellers are also buyers themselves, so they will struggle with the same issues when it comes to purchasing their next home. Forecast key 2021 housing trends Millennials continue to drive the market while Gen-Z become market players - The largest generation in history, millennials, will continue to shape the housing market as they outnumber Gen-X and Baby Boomers. Older millennials will likely be trade-up buyers while the larger, younger segment of the generation age into their key home buying years. Meanwhile, Gen-Z will begin to make their presence known in 2021 as they compete with younger millennials for entry-level homes. The oldest members of Gen-Z will turn 24 in 2021 and their impact on the market will only continue to grow from here. Affordability becomes a growing obstacle - Buyers in 2020 received a huge boost in affordability as mortgage rates pushed to new lows throughout the year, however, a lack of inventory and strong demand drove prices up, erasing most of the boost. As mortgage rates are no longer able to counteract rising home prices, affordability will be tested for buyers across the board in 2021. Home price increases are expected to slow as affordability gets stretched throughout the year. Buyers will need to act with a sense of urgency if they want to lock in a low rate before home prices increase even more in 2021. Inventory will begin the slow road toward recovery - A lack of homes for sale has plagued the U.S. housing market for the last five years. The problem only intensified in 2020, in large part due to an estimated shortfall of nearly 4 million newly constructed homes heading into the year, as well as sellers pulling back due to COVID-19. The number of homes for sale is expected to slowly rebound in 2021, but the road to recovery will be long because the market has to make up for multiple years of declines. Additional homes hitting the market will offer buyers some relief in 2021, but it won't be enough to tip the scales in favor of buyers. As inventory slowly begins to replenish and buyer demand for homes remains steady, sellers will continue to be in the driver's seat. Suburbs will shine if remote work stays around - As COVID-19 lockdowns gripped many of the nation's largest cities, buyers flocked to nearby suburbs in search of increased space. Now, more and more workers are finding the freedom to work remotely. This has sparked intense interest in suburban homes, further exaggerating a trend that had been slowly emerging over the last couple of years. The big question is what demand will look like once a coronavirus vaccine is widely available. If companies require workers to return to the office, demand may wane. Conversely, if companies commit long-term to remote work, demand for these homes could see an additional boost in 2021. Wildcards that could shake things up in 2021 COVID-19 - The deck is stacked with wildcards for 2021. The most impactful will be the U.S.'s ability to control and contain the spread of COVID-19 as well as distribute a vaccine. Additional lockdowns and quarantines could put a dent in housing inventory and sales, slowing the market and putting increased pressure on buyers. Conversely, if a vaccine is rolled out quickly, it could lead to better than expected sales and a strong increase for home prices and inventory. Either way, COVID-19 will have a large impact on the U.S. housing market in 2021. Double dip recession - The possibility of a double dip recession is still in play for 2021. As the U.S. continues in a K-shape recovery, a gap is widening between those with and without jobs as well as industries recovering well versus those seeing continued lack of business. In the short term, this could lead to less consumer spending which could more broadly impact businesses and economic growth. In the long term, this could impact the U.S. housing market as "would-be" buyers disappear from the market, cooling demand and driving down home prices. The current question is how long the K-shape can diverge before the impact begins to cascade into the broader economy and other previously less-affected sectors such as housing. 2021 Metro Housing Forecast (Top 100) About realtor.com® Realtor.com® makes buying, selling and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.
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Rent Declines Accelerate in Tech Hubs as Remote Work Prompts the Desire for More Space
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U.S. Properties with Foreclosure Filings on the Rise as Pandemic Remains a Threat to Economy
11,673 U.S. Properties Received a Foreclosure Filing in October 2020, Up 20 Percent from Last Month; Foreclosure Rates Highest in South Carolina, Nebraska and Alabama; Foreclosure Starts Uptick Monthly in North Carolina, Ohio and Illinois IRVINE, Calif. - November 10, 2020 -- ATTOM Data Solutions, licensor of the nation's most comprehensive foreclosure data and parent company to RealtyTrac, a foreclosure listings portal, today released its October 2020 U.S. Foreclosure Market Report, which shows there were a total of 11,673 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — in October 2020, up 20 percent from a month ago but down 79 percent from a year ago. "It's a little surprising to see foreclosure activity increasing in spite of the various foreclosure moratoria that are in place," said Rick Sharga, executive vice president of RealtyTrac, an ATTOM Data Solutions company. "It's likely that many of these properties were already in the early stages of default prior to the pandemic, or are vacant and abandoned, which makes them candidates for expedited foreclosure actions." South Carolina, Nebraska and Alabama post highest state foreclosure rates Nationwide one in every 11,683 housing units had a foreclosure filing in October 2020. States with the highest foreclosure rates were South Carolina (one in every 6,133 housing units with a foreclosure filing); Nebraska (one in every 6,246 housing units); Alabama (one in every 6,660 housing units); Louisiana (one in every 7,078 housing units); and Florida (one in every 7,208 housing units). Among the 220 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in October 2020 were Peoria, IL (one in every 1,543 housing units with a foreclosure filing); Champaign, IL (one in every 1,674 housing units); Beaumont, TX (one in every 1,880 housing units); Birmingham, AL (one in every 1,993 housing units); and Houma, LA (one in every 2,964 housing units). Those metropolitan areas with a population greater than 1 million that posted the worst foreclosure rates in October 2020, including Birmingham, AL, were Cleveland, OH (one in every 4,511 housing units); Jacksonville, FL (one in every 5,119 housing units); New Orleans, LA (one in every 6,397 housing units); and Miami, FL (one in every 6,794 housing units). Foreclosure starts increase monthly nationwide A total of 6,042 U.S. properties started the foreclosure process in October 2020, up 21 percent from last month but down 79 percent from a year ago. While foreclosure starts are down annually in many states across the nation, a few states did see annual increases in foreclosure starts in October 2020, including Idaho (up 109 percent) and Nebraska (up 56 percent). Those states that posted the greatest monthly increases and that had 200 or more foreclosure starts in October 2020, included North Carolina (up 294 percent); Ohio (up 74 percent); Illinois (up 30 percent); New York (up 24 percent); and South Carolina (up 18 percent). Among metropolitan areas with a population greater than 1 million, those with the greatest number of foreclosure starts in October 2020 were New York, NY (485 foreclosure starts); Chicago, IL (240 foreclosure starts); Los Angeles, CA (196 foreclosure starts); Miami, FL (151 foreclosure starts); and Houston, TX (143 foreclosure starts). "It's probably not a surprise that almost all of the metro areas where foreclosure activity increased on a month-over-month basis are also places where unemployment rates are higher than the national average, and in many cases have been hotspots of COVID-19 infections," Sharga noted. "Still, it's important to keep the numbers in context – even with these increases, overall foreclosure actions are still below last year's levels by about 80%." Bank repossessions see a 28 percent increase from last month Lenders foreclosed (REO) on a total of 2,577 U.S. properties in October 2020, up 28 percent from last month but down 81 percent from a year ago. States that posted the greatest number of completed foreclosures (REOs) in October 2020, included Alabama (268 REOs filed); Florida (261 REOs filed); California (194 REOs filed); Texas (186 REOs filed); and Pennsylvania (145 REOs filed). Among the metropolitan areas with a population greater than 1 million, those with the greatest number of REOs filed in October 2020, included Birmingham, AL (233 REOs filed); Philadelphia, PA (98 REOs filed); New York, NY (97 REOs filed); Chicago, IL (62 REOs filed); and Miami, FL (52 REOs filed). About ATTOM Data Solutions ATTOM Data Solutions provides foreclosure data licenses that can power various enterprise industries including real estate, insurance, marketing, government, mortgage and more. ATTOM multi-sources from 3,000 counties property tax, deed, mortgage, 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. About RealtyTrac (Powered by ATTOM's Property Data) RealtyTrac.com is the premier foreclosure listing and search portal for investors and consumers looking to gain a competitive edge in the distressed market. Realtytrac.com grants access to insight that is typically only available to real estate professionals.
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Realtor.com Survey Finds Ghosts and Goblins Don't Have Homeowners Hanging a For Sale Sign
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Northeastern Housing Markets Remain Most at Risk of Economic Impact from Coronavirus Pandemic
Most Vulnerable Counties in Third Quarter of 2020 Concentrated in States Running from Connecticut through Maryland; New York City, Baltimore, Washington, D.C. and Now Philadelphia Among Areas with Clusters of High-Risk Counties; Midwest Joins the West as Regions Less at Risk of Housing-Market Problems IRVINE, Calif. -- Oct. 8, 2020 -- ATTOM Data Solutions, curator of the nation's premier property database and first property data provider of Data-as-a-Service (DaaS), today released its third-quarter 2020 Special Report spotlighting county-level housing markets around the United States that are more or less vulnerable to the impact of the Coronavirus pandemic. The report shows that pockets of the Northeast and Mid-Atlantic regions were most at risk in the third quarter – with clusters in the New York City, Baltimore, Philadelphia and Washington, D.C. areas – while the West and now Midwest are less vulnerable. The report reveals that Connecticut, New York, New Jersey, Pennsylvania, Maryland and Delaware had 32 of the 50 counties most vulnerable to the economic impact of the pandemic in the third quarter. They included five suburban counties in the New York City metropolitan area, four around Washington, D.C., four around Philadelphia, PA, four around Baltimore, MD, and seven of Connecticut's eight counties. The only four western counties among the top 50 were in northern California and Hawaii, while Illinois had the only six in the Midwest. Another eight were loosely scattered across five southern states – Florida, Louisiana, North Carolina, Texas and Virginia. Third quarter trends generally continued from those found in the first and second quarters of 2020, but with different concentrations around several major metropolitan areas. The number of counties among the top 50 most at-risk was down from 11 to five in the New York City area, and from eight to three in the Chicago, IL, area, but up from two to four in the Baltimore region. Markets are considered more or less at risk based on the percentage of homes currently facing possible foreclosure, the portion of homes with mortgage balances that exceed the estimated property value, and the percentage of local wages required to pay for major home ownership expenses. The conclusions are drawn from an analysis of the most recent home affordability index, equity and foreclosure reports prepared by ATTOM. Rankings are based on a combination of those three categories in 487 counties around the United States with sufficient data to analyze. Counties were ranked in each category, from lowest to highest, with the overall conclusion based on a combination of the three ranks. See below for the full methodology. The findings come as the national housing market has largely staved off the effect of the virus pandemic. While home values have dipped in some areas of the nation, counties generally have seen prices rise 7 percent to 15 percent since the third quarter of 2019. But the market remains exposed due to high unemployment and other damage that has spread through the United States economy as the virus has surged throughout the country this year. "The U.S. housing market continues to show remarkable resilience during a time of widespread economic trouble and high unemployment stemming from the virus pandemic. But amid continued price gains, pockets around the country face greater risk of a fall, especially in and around the Northeast," said Todd Teta, chief product officer with ATTOM Data Solutions. "There is much uncertainty ahead, especially if another virus wave hits. We will continue to closely monitor home prices and sale patterns to see if, how and where the pandemic starts rattling local markets." Most vulnerable counties clustered around New York City, Baltimore, Philadelphia, Washington, D.C, and Chicago. Twenty of the 50 U.S. counties most at-risk in the third quarter of 2020 from housing-market troubles connected to the pandemic (among the 487 counties with sufficient data) were in the metropolitan statistical areas around New York, NY; Philadelphia, PA; Baltimore, MD; Washington, D.C., and Chicago, IL. They included five in the New York City suburbs (Bergen, Essex, Passaic and Sussex counties in New Jersey, along with Orange County, NY) and four around Philadelphia (Burlington, Camden and Gloucester counties in New Jersey, plus Bucks County, PA). Another four counties found most at risk are in the Baltimore metro area: Anne Arundel, Baltimore, Carroll and Howard counties. The three around Chicago are Lake, McHenry and Will counties. Seven of Connecticut's eight counties also are in the top 50, including Fairfield, Litchfield, Middlesex, New Haven, New London, Tolland and Windham counties. The only western counties among the top 50 most at risk from problems connected to the Coronavirus outbreak in the third quarter of 2020 were Humboldt County (Eureka), CA; Butte County (Chico), CA; Shasta County (Redding), CA, and Hawaii County, HI. Florida also had three counties in the top 50: Charlotte County (outside Fort Myers), Flagler County (outside Daytona Beach) and Highlands County (Sebring). Higher levels of unaffordable housing, underwater mortgages and foreclosure activity in most-at-risk counties Major home ownership costs (mortgage, property taxes and insurance) consumed more than 30 percent of average local wages in 35 of the 50 counties that were most vulnerable to market problems connected to the virus pandemic in the third quarter of 2020. The highest percentages were in Bergen County, NJ (outside New York City) (51 percent of the average local wage required for major ownership costs); Passaic County, NJ (outside New York City) (50 percent); Comal County, TX (outside San Antonio) (48 percent); Carroll County, MD (outside Baltimore) (46 percent); and Hawaii County, HI (46 percent). Among all counties in the report, major expenses on the median-priced home typically consumed 32 percent of the average local wage. At least 15 percent of mortgages were underwater in the second quarter of 2020 (the latest data available on owners owing more than their properties are worth) in 37 of the 50 most at-risk counties. Nationwide, 13 percent of mortgages fell into that category. Those with the highest underwater rates were Cumberland County (Vineland), NJ (34 percent); Saint Clair County, IL (outside St. Louis, MO) (33 percent); Lackawanna County (Scranton), PA (31 percent); Monroe County, PA (outside Wilkes-Barre) (30 percent) and Madison County, IL (outside St. Louis, MO) (29 percent). More than one in 2,500 residential properties faced a foreclosure action in the second quarter of 2020 (the latest available data) in 36 of the 50 most at-risk counties. Nationwide, about one in 4,449 homes were in that position. (Foreclosure actions have dropped about 80 percent this year amid a foreclosure moratorium on banks taking back properties from homeowners behind on their mortgages.) Those with the highest rates were in Saint Tammany Parish, LA (outside New Orleans) (one in 755 properties facing possible foreclosure); Tazewell County, IL (outside Peoria) (one in 816); Madison County, IL (outside St. Louis, MO) (one in 875); Saint Clair County, IL (outside St. Louis, MO) (one in 1,007) and Kent County (Dover), DE (one in 1,069). "While it's unlikely that we'll see a return to the historically high levels of foreclosure activity we saw during the Great Recession, it's a near-certainty that the number of defaults will increase once the foreclosure moratoria have been lifted, and the CARES Act forbearance program expires," said Rick Sharga, executive vice president of RealtyTrac, an ATTOM Data Solutions company. "It's also likely that foreclosures will be concentrated in markets where there's a dual-trigger – for example, stubbornly high unemployment rates, and homeowners who are underwater on their loans." Counties least at-risk concentrated in Colorado, Indiana, Missouri, Texas and Wisconsin Twenty-five of the 50 least-vulnerable counties from among the 487 included in the third-quarter report were in Colorado, Indiana, Missouri, Texas and Wisconsin. The largest populated counties included Tarrant County (Fort Worth), TX; Travis County (Austin), TX; Marion County (Indianapolis), IN; Denver County, CO, and Arapahoe County, CO (outside Denver). Others among the 50 least at-risk counties with a population of at least 500,000 included Middlesex County, MA (outside Boston); Hennepin County (Minneapolis), MN; Fairfax County, VA (outside Washington, DC); Mecklenburg County (Charlotte), NC, and Wake County (Raleigh), NC. Lower levels of unaffordable housing, underwater mortgages and foreclosure activity in less-vulnerable counties Major home ownership costs (mortgage, property taxes and insurance) consumed less than 30 percent of average local wages in 28 of the 50 counties that were least at-risk from market problems connected to the virus pandemic in the third quarter of 2020. The lowest percentages were in Winnebago County (Oshkosh), WI (20 percent of the average local wage required for major ownership costs); Marion County (Indianapolis), IN (20 percent); Macomb County, MI (outside Detroit) (21 percent); Saint Clair County, MI (outside Detroit) (21 percent) and Benton County (Rogers), AR (21 percent). At least 15 percent of mortgages were underwater in the second quarter of 2020 (with owners owing more than their properties are worth) in only one of the 50 least at-risk counties. Those with the lowest rates were Chittenden County (Burlington), VT (3 percent); Washington County, WI (outside Milwaukee) (4 percent); Travis County (Austin), TX (5 percent); Multnomah County (Portland), OR (5 percent) and Boulder County, CO (5 percent). More than one in 2,500 residential properties faced a foreclosure action in the second quarter of 2020 in none of the 50 least at-risk counties. Those with low foreclosure rates included Davidson County (Nashville), TN (one in 50,975 properties facing possible foreclosure); Sheboygan County, WI (one in 50,939); Potter County (Amarillo), TX (one in 49,656); Suffolk County (Boston), MA (one in 47,605) and Washoe County (Reno), NV (one in 38,791). Report methodology The ATTOM Data Solutions Special Coronavirus Market Impact Report is based on ATTOM's second-quarter 2020 residential foreclosure and underwater property reports and third-quarter 2020 home affordability report. (Press releases for those reports show the methodology for each.) Counties with sufficient data to analyze were ranked based on the percentage of *properties with a foreclosure filing during the second quarter of 2020, the percentage of properties with outstanding mortgage balances that exceeded estimated market values in the second quarter of 2020 and the percentage of average local wages need to afford the major expenses of owning a median-priced home in the third quarter of 2020. Ranks then were added up to develop a composite ranking across all three categories. Equal weight was given to each category. Counties with the lowest composite rank were considered most vulnerable to housing market problems. Those with the highest composite rank were considered least vulnerable. About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, property data APIs, real estate market trends, marketing lists, match & append and introducing the first property data delivery solution, a cloud-based data platform that streamlines data management – Data-as-a-Service (DaaS).
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Realtor.com Red Versus Blue Report: Blue State Americans Are Searching For Homes In Swing States; What Does That Mean For The Presidential Election?
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Realtor.com Weekly Housing Report: Nearly 400,000 Fewer Homes Have Been Listed Since the Start of the Pandemic
Overall market strength shows slight improvement over last week due to the containment of natural disasters SANTA CLARA, Calif., Sept. 24, 2020 -- Since the beginning of the COVID pandemic in March, nearly 400,000 fewer homes have been listed compared to last year, leaving a gaping hole in the U.S. housing inventory, according to realtor.com's Weekly Housing Report for the week ending Sept. 19. As a result, home prices are accelerating at double last year's pace while homes sell 12 days faster than last year, on average. "Sellers are more reluctant to list their home given the uncertainty over the economy and the pandemic environment. Buyers on the other hand, especially hungry first timers, remain largely unfazed by the challenges, and are motivated by low mortgage rates and the fear of missing out on the right home," said Javier Vivas, director of economic research for realtor.com®. "The majority of sellers are also buyers, so even as new listings hit the market, another buyer is also added. Adding to the inventory issues, thousands of previously vacant homes, such as second homes and rentals, have been reoccupied by their owners during the pandemic, effectively taking them off the market." Number of homes on the market remains woefully behind last year Since mid-March (the beginning of the COVID pandemic), a total of 2.91 million unique properties have been put on the market for sale. This is approximately 390,000 fewer homes than the 3.30 million listed during the same period last year. As of this week, the number of homes on the market is down 39% compared to last year. With the typical seasonal slowdown approaching, relief in terms of more available homes for sale is unlikely. The number of new listings hitting the market this week was down 15% compared to last year, a slight improvement over last week's decline of 17%. The slight uptick was likely a result of having a full work week compared to the short holiday week (Labor Day), as well as better containment of wildfires on the West Coast. Home prices continued to see record breaking growth Median listing prices continued to grow at last week's record breaking pace of 11.1% year-over-year. This is more than double January 2020's price acceleration and the 19th week in a row of price acceleration. Homes are selling even faster than last week Homes are selling in 53 days, which is 12 days faster on average than this time last year, and one day faster than last week. The rapid turnover is fueling home sales, and keeping the market from stalling. With buyer demand showing no signs of cooling, homes are expected to continue flying off the market, despite a depleted supply. Housing market strengthens after last week's disasters Realtor.com® tracks the overall strength of the housing market through its proprietary Housing Market Recovery Index, which compares real-time key indicators including trends in number of searches on realtor.com®, median listing prices, the number of newly listed homes, and the time it takes to sell to January 2020, prior to the pandemic. This week, the index was 107.2 points, 1.0 point stronger than last week and 7.2 points stronger than it was pre-COVID. The slight improvement over last week can be attributed to the containment of fire and hurricane damage, which had weakened levels of supply.   About realtor.com® Realtor.com® makes buying, selling and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.
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Rental Beast September Market Report: Conversation with Brian Horrigan, Chief Economist at Loomis Sayles
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Homebuyers on a $2,500 Monthly Budget Can Afford $33,000 More with Low Mortgage Rates, But Higher Home Prices Cancel Out Increase
Historically low rates are motivating homebuyers even though prices were up 8.2% year over year in July, effectively cancelling out the 6.9% increase in purchasing power SEATTLE, Sept. 3, 2020 -- A homebuyer with a $2,500 monthly housing budget can afford a home priced $33,250 higher than a year ago, thanks to historically low mortgage rates, according to a new report from Redfin, the technology-powered real estate brokerage. At a 3% mortgage interest rate—roughly the average 30-year fixed rate for July and August 2020—a homebuyer can afford a $516,500 home on $2,500 per month, up from the $483,250 they could afford on the same budget when the average was 3.77% in July 2019. The $33,250 rise in purchasing power from last year (from $483,250 to $516,500) is a 6.9% increase. The 8.2% year-over-year home-price increase in July, the largest rise in more than two years, was higher. Historically low mortgage rates are responsible for both: They push up homebuyer demand, which leads to an uptick in home prices. Those are the intended results, as the Fed is using low interest rates to stimulate the economy during the pandemic-driven recession. "Low mortgage rates are motivating many people to purchase a home, particularly those who want more space to work from home," said Redfin chief economist Daryl Fairweather. "But because there hasn't been an increase in the number of homes for sale since rates started dropping with the onset of the pandemic, many buyers end up competing for the same homes, driving up prices. Those competing forces make the current market a wash for many buyers looking for single-family homes in competitive areas. Buyers searching for condos can find a better deal, both on overall price and mortgage payments, because most condos are less competitive than single-family homes as people move out of densely populated urban areas." The continuing housing supply shortage means there are fewer affordable homes for sale for someone with a $2,500 monthly budget than last year. In July 2020, 70.6% of homes nationwide were affordable on that budget, down slightly from 71.9% in July 2019. Despite bigger budgets, buyers have fewer options in many metros There were fewer homes for sale on a $2,500 monthly budget than last year in the majority of metros Redfin analyzed. Salt Lake City (-5.2 percentage points), Kansas City (-3.7), Austin (-3.2) and Boston (-3) saw the biggest declines in the share of affordable homes for sale. Miami (+2.1), Jacksonville (+2), Columbus (+2) and Milwaukee (+2) experienced the biggest increases. In Providence, Rhode Island, where the share of affordable homes has declined 1.5 percentage points since last year, Redfin agent Lisa Bernardeau says low rates are the primary motivation for buyers right now. "Back in June, homebuyers thought they could take advantage of low rates and get a good deal because of the pandemic. Now they're seeing that's not the case because inventory is so tight and there's so much competition, but most buyers are still powering through. Regardless of high prices, a lot of buyers have been watching the market and they don't want to miss out on historically low rates or risk prices going even higher. Low interest rates are the number one driver right now." To view the full report, including charts and methodology, please click here. About Redfin Redfin is a technology-powered residential real estate company, redefining real estate in the consumer's favor in a commission-driven industry. We do this by integrating every step of the home buying and selling process and pairing our own agents with our own technology, creating a service that is faster, better and costs less. We offer brokerage, iBuying, mortgage, and title services, and we also run the country's #1 real estate brokerage search site, offering a host of online tools to consumers, including the Redfin Estimate. We represent people buying and selling homes in over 90 markets in the United States and Canada. Since our launch in 2006, we have saved our customers over $800 million and we've helped them buy or sell more than 235,000 homes worth more than $115 billion.
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West Coast, Best Coast, No More?
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People Are Searching in the Suburbs More Than Ever Before
Remote work, desire for more space is driving home shoppers to less dense, relatively nearby metros SANTA CLARA, Calif., Aug. 10, 2020 -- America is looking to move again, and the COVID-19 pandemic is influencing the U.S. housing market both in terms of where people are searching and what they are searching for, according to realtor.com®'s quarterly Cross Market Demand Report, which measures search data to provide insight into where shoppers are looking for their next home. After an initial shift in search habits at the onset of the coronavirus in the U.S., home shoppers looking outside their current metro area for homes have surpassed pre-COVID levels, and more are increasingly setting their sights on the suburbs. During the second quarter of 2020, 51% of views from urban residents of the U.S.' 100 largest metros went to suburban properties in their metros, an all-time high since realtor.com® began tracking metro level search data in 2017. "We see lingering effects of the coronavirus on shopping behavior and preferences. In the Northeast, especially, people are now as likely as before the pandemic to be looking for a home in a market that's not where they currently live. However, those looking elsewhere are much more likely to be looking in smaller, nearby markets," said realtor.com® Chief Economist Danielle Hale. "With remote work more common and accepted, it seems that people are looking to locate further from the office either to enjoy more space at a better price, or get closer to nature in the mountains or at the beach. At this point, they are not venturing too far away." The search data analysis reinforces the findings of a recent realtor.com® Harris X consumer survey of 2,000 active home shoppers, which indicated that home purchase decisions are being influenced by consumers' ability to work remotely, desire for more space and their willingness to commute longer to get what they want in a home. Northeastern markets heat up as search activity is shifting to smaller, less dense areas Following a decline in searchers looking outside their local market during the second quarter, Northeastern markets saw an uptick in interest in July. This activity was primarily driven by residents of the region's larger metros looking in smaller, nearby bedroom communities or vacation home markets such as East Stroudsburg, Penn, Bridgeport-Stamford-Norwalk, Conn. and Atlantic City and Ocean City, N.J. The same trend was evident in the New York metro area, where demand grew in outer-lying counties, such as Nassau and Suffolk County, N.Y., and Monmouth and Ocean County, N.J., but decreased slightly in Manhattan and the Bronx. Remote work policies could influence the West With many tech companies extending their work from home policies and employees anticipating that their employers will afford more flexibility for remote working, the potential exists for home shoppers to search farther from home as the year progresses. During the second quarter, people looking for homes in Seattle, Portland, Los Angeles and San Diego from outside markets cooled, while Riverside-San Bernardino, San Francisco, and Sacramento saw an improvement in out-of-market home-buying interest. Demand in Riverside was heavily driven by Los Angeles residents, while the market also saw demand from San Diego searchers. Sacramento homes were primarily viewed by home shoppers from San Francisco, San Jose and Los Angeles, which could be prompted by remote workers seeking affordability and more space. San Francisco's out-of-market demand, however, counters these broader trends. Interest in San Francisco was primarily driven by San Jose, perhaps as nearby shoppers see an opportunity to get into the pricey, exclusive market. South and Midwest cool as COVID cases heat up While the Southeast, especially South Florida and the states of Texas, Mississippi, Alabama, Georgia and South Carolina saw an increased interest from searchers in other markets during the second quarter, out of market searches slowed in July as the region battled a spike in COVID-19 cases. At the same time, some of the region's largest metros, including Atlanta, Dallas, Houston, Miami and Tampa, saw inbound searches decrease in July compared to the second quarter. The Midwest saw increasing out of market shopping interest before the pandemic hit, but has failed to recapture that strength since. Midwestern metropolitan areas saw the rate at which home shoppers searched outside their home metros almost consistently decrease since February, other than a small improvement in May. This signals that Midwestern metros are likely still struggling to return to normal, and is consistent with concern for emerging COVID hot-spots in the region and pre-pandemic job market weakness. For more information, read the full report here. About realtor.com® Realtor.com® makes buying, selling and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.
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COVID-19 Impacts Homebuyer Preferences But Not Budgets: Homes.com Survey
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Remote Work to Drive Home Purchase Decisions in the Next Six Months
More than half of those currently working from home are doing so because of COVID SANTA CLARA, Calif., July 29, 2020 -- Many families quickly adjusted their current living space to accommodate working from home, but those who expect the change to be permanent are likely to pull the trigger on a new home purchase in the next six months, according to a realtor.com® HarrisX survey of active home shoppers released today. Of the 2,000 home shoppers surveyed in June who plan to purchase a home in the next year, 63 percent of those currently working from home indicated their decision to buy a new house was a result of their ability to work remotely. Nearly 40 percent of those who said remote work was fueling their search expected to purchase a home within four to six months, and 13 percent said changes related to COVID prompted their desire to purchase a new home. Having a home office is very important for people who work remotely, but not at the exclusion of more conventional features. Over 20 percent of respondents who are buying because of remote work say that having a home office is important to them and a home office was the most chosen new home feature. Similar to overall home buyers, the five next most popular features were a garage, a quiet location, an updated kitchen, a large backyard, and an open floor plan. "The ability to work remotely is expanding home shoppers' geographic options and driving their motivation to buy, even if it means a longer commute, at least in the short term," said realtor.com® Senior Economist George Ratiu. "Although it's too early to tell what long-term impact the COVID-era of remote work will have on housing, it's clear that the pandemic is shaping how people live and work under the same roof." Today's remote work snapshot According to the data, nearly 40 percent of currently employed respondents are currently working from home as a result of COVID. Thirty-five percent of respondents were remote employees before COVID happened and 28 percent are still going into their place of employment. When given the choice of working remotely or in an office setting 52 percent of remote workers indicated they prefer to work from home. Interestingly, 39 percent prefer to work in an office setting and 9 percent said it makes no difference to them. Accommodating remote work at home With entire families at home, finding a quiet place for work or school has been challenging for many. Fifty percent of respondents do the majority of their work in a home office. Fifteen percent work in their bedroom, 13 percent in the living room, 12 percent at the kitchen table and 7 percent move from room to room depending on where their family is. In order to accommodate work from home, 45 percent of respondents converted a room in their home to an office. Thirty-six percent created a home office space and 28 percent updated their existing office space with a new monitor, chair, etc. Only 7 percent have not made any accommodations or already had a good office set up at home. Majority of respondents anticipate some aspect of remote work in the future With many companies and schools pushing back return dates, especially as new COVID outbreaks continue to increase across certain regions of the country, 53 percent anticipated that they will be working in an office full-time. Approximately one in five, 22 percent, of those surveyed expect a mix of in-office and remote work, while 14 percent responded they don't anticipate ever returning to the office. Flexibility also seemed an option among survey respondents, with 63 percent indicating that their employer will be open to remote work in some capacity. Of these respondents, 40 percent stated that their employer permitted a mix of office and remote work and 16 percent said their employer permitted remote work entirely. Only 37 percent indicated they are required to be in the office full time. Of those stating that they will resume going into the office either full or part time, 40 percent anticipated it would be within the next three months, while 46 percent thought it would be within the next three to six months. Thirteen percent thought they would return in 2021 and 2 percent said never. For more information about realtor.com's remote work survey, please click here. About realtor.com® Realtor.com® makes buying, selling and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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Realtor.com Weekly Recovery Report: Record Breaking Traffic Signals Summer Buying Season is Here
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Key Housing Indicators Begin to Turn Around in May
Data shows new listings and asking price trends strengthen after bottoming out in April SANTA CLARA, Calif., June 4, 2020 -- The U.S. housing market likely reached its low point during mid-April with constrained new inventory and minimal price growth. Signs of recovery emerged in late April and strengthened in May, setting the stage for continued growth over the summer, according to realtor.com®'s May Monthly Housing Trends report issued today. The data show the national median listing price hit a new all-time high of $330,000 in May, despite rising just 1.6 percent year-over-year. This price growth was an improvement over April's 0.6 percent year-over-year growth which was the slowest pace in the past three years. Additionally, the weekly progression of data showed that price growth and new inventory trends improved. The median list price began the month up 1.4 percent and strengthened throughout the month, increasing 3.1 percent during the last week of May. New listings were down 29.1 percent the week ending May 9, but recovered to down 22.9 percent by the week of May 30. While still well-below last year's levels, the rate of decline in newly listed properties has improved dramatically from a drop of 44.1 percent year-over-year in April to down 29.4 percent in May. Despite these positive trends, COVID-related challenges linger; homes were on the market 15 days longer than this time last year. "May's home price data demonstrate the underlying strength of the U.S. housing market despite the challenges brought by the COVID-19 pandemic," said realtor.com® Chief Economist Danielle Hale. "The fact that home prices are at an all-time high shows that the momentum the market had prior to the pandemic has helped to keep buyer and seller expectations stable. Ongoing inventory shortages, that continue to worsen, also push home prices higher even while homes sell more slowly." "As a sense of normalcy returns, we expect to see a shortened, but strong summer home selling season, as long as seller confidence continues to improve and more homes are listed for sale," Hale added. Listing Prices Hit New High Despite COVID-19 Thirty-five of the nation's top 50 metros saw the median listing price grow on a year-over-year basis, up from 30 metros in April. Based on this trend, listing prices could reach new highs throughout the summer home buying season when prices typically see their yearly seasonal peak. Los Angeles-Long Beach-Anaheim, Calif. (+14.9 percent), Pittsburgh, Pa. (+14.0 percent); and Cincinnati, Ohio-Ky.-Ind. (+12.1 percent); posted the highest year-over-year median list price growth in May. The steepest price declines were seen in Detroit-Warren-Dearborn, Mich. (-3.4 percent); San Antonio-New Braunfels, Texas (-3.2 percent); and Seattle-Tacoma-Bellevue, Wash. (-3.1 percent). For-Sale Homes Still in Short Supply, but New Listings Trend Improves National inventory continued to be constrained, down nearly 20 percent over last year, as seller reactions to COVID-19 exaggerated the housing market's already insufficient supply of homes. At the same time, the month of May ended with an improvement in the new listings trend--smaller declines--in 45 of the 50 largest U.S. markets compared to last month. This signals that sellers are starting to return to the marketplace, which is needed to restore inventory levels for healthy market conditions. Within the nation's 50 largest metros, inventory declined by 21.9 percent year-over-year, a greater rate than April's 16 percent decline. The metros which saw the largest declines in inventory were largely those hardest hit by COVID-19 along the East Coast, including: Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md. (-38.6 percent); Providence-Warwick, R.I.-Mass. (-35.8 percent); and Baltimore-Columbia-Towson, Md. (-34.5 percent). This month, none of the largest 50 metros saw an inventory increase on a year-over-year basis and 43 out of the 50 saw greater yearly inventory declines than last month. COVID-19 Extends Days on Market Homes continue to sell more slowly than last year due to stay at home orders and modified behavior resulting from COVID-19. The typical home is now selling in 71 days, which is more than two weeks slower than last year. Within the nation's 50 largest metros, the typical home sold in 58 days, 13 days more slowly, on average, compared to last year. Among the largest metropolitan areas, homes in areas hit hardest by COVID-19 saw the greatest increase in time spent on the market, including: Buffalo-Cheektowaga-Niagara Falls, N.Y. (+34 days); Pittsburgh, Pa. (+33 days); and Detroit-Warren-Dearborn-Mich. (+32 days). Metros With Largest Decline in New Listings EDITOR'S NOTE: The realtor.com economics team is continually tracking the impact of the coronavirus pandemic on the U.S. economy and housing market. The team's reports and analysis are available here. About realtor.com® Realtor.com® makes buying, selling and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.
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Homes.com Traffic Trends Point to Emerging Recovery
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Unprecedented Turnaround in Home Showing Activity Seen in April and May as Agents, Buyers and Sellers Adjust to Virtual Showings
Showing Traffic Matches Prior-Year Levels in Many Markets According to Latest ShowingTime Data; Tech-Facilitated Showings, Loosening of Stay-at-Home Restrictions Account for Improvements May 21, 2020 - Showing activity continued an impressive turnaround after an historic spring collapse, led in part by loosening restrictions and increased adoption of virtual showing technology, according to data from ShowingTime. In early April, 42 states had issued stay-at-home orders, though by mid-May, the number of states where only essential businesses were permitted to remain open had dropped to 21. The Department of Homeland Security lists real estate as an essential service, though local guidelines take precedence. "The beginning of April marked the absolute bottom of per capita real estate activity since the Great Depression as three-quarters of buyer traffic evaporated, yet that was immediately followed by an unprecedented turnaround," said ShowingTime Chief Analytics Officer Daniil Cherkasskiy. "We've seen a significant rebound in May as rapidly returning buyer traffic concentrates on the subdued levels of inventory." The data also show that listings that have gone under contract since the onset of the COVID-19 pandemic have required 40 percent fewer showings. "The probability of going under contract for listings coming on the market has been remarkably stable after the first week of April," Cherkasskiy said. "This suggests that buyers who were still trying to see homes in April were, on average, more determined to complete the transaction." The upswing in showing activity correlates with an increasing rate of adoption of technology, with more and more agents conducting showings virtually. Since introducing a "virtual showing" option within its showing management products in early April, ShowingTime has seen tens of thousands of showings conducted exclusively online. ShowingTime also introduced ShowingTime LIVE, an all-in-one showing and video platform that enables agents and their buyers to use ShowingTime's mobile app for live, one-on-one interactive video showings. ShowingTime LIVE is currently available in select markets, and will be available throughout the U.S. and Canada in June. "We're continuing to see great resilience in the industry, which can be attributed to agents' willingness to expand their view of how showings can be conducted," said ShowingTime President Michael Lane. "The data we're seeing indicate an impressive rate of adoption of virtual showings. With the introduction of ShowingTime LIVE, we're able to help agents get buyers into properties in a safe manner." In Michigan, state officials updated their guidance on May 7 and declared real estate an essential business. As a result, the state's showing activity jumped dramatically, recovering to a normal springtime run-rate in just eight days. It could signal how other states will fare following similar actions and loosening of restrictions. As anticipated, Showing Index® data in April revealed flagging activity on a year-over-year basis. Nationally, showing activity dropped 42.1 percent year over year in April, with the Northeast Region's 51.2 percent fall the most significant of all four regions. The Midwest's 41.4 percent year-over-year dip came next, followed by a 36.7 percent decline in activity in the West. The South's 33.6 percent fall in activity rounded out the year-over-year decreases in buyer traffic. 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, providing a benchmark to track buyer demand. ShowingTime facilitates more than five million showings each month. Released monthly, the Showing Index tracks the average number of appointments received on active listings 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 showingtime.com/showingtime-showing-index/ About ShowingTime ShowingTime is the residential real estate industry's leading showing management and market stats technology provider, with more than 1.2 million active listings subscribed to its services. Its showing products and services simplify the appointment scheduling process for real estate professionals, buyers and sellers, resulting in more showings, more feedback and more efficient sales. Its MarketStats division provides interactive tools and easy-to-read market reports for MLSs, associations, brokers, agents and other real estate companies, as well as a recruiting tool for brokers. ShowingTime products are used in 370 MLSs representing one million real estate professionals across the U.S. and Canada. For more information, contact us at [email protected]
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Hopeful Home Shoppers Rev Their Engines at the Starting Line
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Realtor.com Forecasts a Year of Ups and Downs for Housing Market
Home sales to fall 15 percent in 2020 as prices flatten and mortgage rates end the year under 3 percent SANTA CLARA, Calif., May 13, 2020 -- Driven by pent up buyer demand and low interest rates, home sales in the U.S. will rebound in late summer and early fall as fears of the coronavirus begin to wane before experiencing a downturn again later in the year, according to a revised 2020 housing forecast released today by realtor.com®. The updated forecast finds that despite an uptick in transactions during the third quarter largely driven by millennials, home sales will be down 15 percent year-over-year. The forecast also expects home prices to flatten nationally as demand shifts to the secondary markets, which offer buyers more affordability and space. According to realtor.com® Chief Economist Danielle Hale, the path forward for home sales will resemble a W shape with homes sales rebounding in July, August, and September as fears of the coronavirus taper off and buyers return to the market to make up for the lost spring homebuying season before dipping again in the final months of the year as virus infections spike again and the lingering impact of the high unemployment rates are felt. "The U.S. housing market started 2020 with substantial momentum. With some of the best home sales and housing starts in more than a decade, our biggest challenge going into the spring home-buying season was a lack of for sale homes. The coronavirus pandemic has kept both buyers and sellers on the sidelines, preserving market balance, for now," Hale said. "As cities and states begin the slow process of reopening, we're going to see a see-saw recovery with ups and downs that will favor the nation's secondary markets in the short-term." Hale added, "The pandemic is leaving an imprint on the fabric of American life, culture, and preferences which we could see for years to come. After experiencing life under quarantine, many buyers are searching for affordability and greater space, which is driving demand out of the nation's largest metros and into surrounding smaller towns." The updated forecast projects mortgage rates to drop to new lows below 3 percent by the end of the year, primarily driven by an accommodating Fed and tepid economic outlook. Although rates will be favorable, the qualifying criteria will be tougher than normal as lenders seek to mitigate their own risks amid the unfolding economic uncertainty globally. The stricter qualifying criteria will require buyers to have higher credit scores in addition to more cash for down payments. Shopping around for the best rates and terms will be particularly important over the next year. Home prices are projected to flatten, increasing just 1.1 percent for the calendar year and possibly registering small declines by the end of 2020. With many sellers remaining on the sideline and a decline in housing starts, inventory will remain constricted. Under normal market conditions, prices would be expected to skyrocket as inventory evaporates, but buyer demand is expected to see-saw throughout the year as secondary waves of coronavirus infections continue to spread throughout the U.S. During these periods, sales are forecasted to take a hit as sellers de-list properties and buyer demand abates. Buyers will have difficulty finding available homes for sale Although qualifying for a loan will be more stringent, finding a home for sale will still remain the largest hurdle this year. The number of new homes for sale was down 45 percent year-over-year in April. However, with home prices expected to remain relatively stable, potential home buyers should have less competition from all cash investment buyers unlike the 2008 recession where they dominated the market. Buyers should expect periods of very low inventory turnover, especially if subsequent COVID-19 flare-ups occur, creating a 'what you see is what you get' environment. In some areas, buyers may find sellers leaning heavily on digital technology, such as virtual tours, instead of hosting traditional open houses. Determined buyers may need to be prepared to pull the trigger on a home sight unseen. Sellers will take a step back from the market Sellers are expected to face their own array of challenges in 2020. A well priced home would normally generate multiple offers, however, that may not be the case this year. Many sellers, who will also be subsequent buyers, will find the slower pace of sales and longer time on market have made timing a sale and a corresponding home purchase increasingly difficult compared to prior years. A lack of new homes for sale this spring -- traditionally the busiest time of year for real estate -- has signaled that sellers have adopted a certain level of patience in listing their homes. Market Drivers Baby Boomers - Many Baby Boomers, who have already held onto properties longer than expected, may decide to postpone their home sale another year until things begin to normalize. This will further constrict the number of homes for sale. The Baby Boomer generation may see their share of home purchases dwindle in 2020 as members of the generation step back from the marketplace. Millennials - Millennials will continue to be a dominant buying force in the market. Because millennials are making home purchases from a less discretionary perspective, they will continue to grow their share of home purchases. Millennials are projected to make up 50 percent of home purchases in 2020, but this number could grow if older generations decide to step back from the market. Secondary Markets - Secondary markets throughout the U.S. with resilient jobs markets could see greater than normal demand as buyers continue to search for affordability and additional space. As these markets heat up, we also expect to see a change to the mix of homes available for sale nationwide. As the mix of homes for sales shifts, we could see the national listing price decline to reflect the change towards more affordable homes. Election - The 2020 presidential election will continue to be a wild card this year. Historically, economic strength is a good predictor of how people will vote. Global Economy - The global economy will be key to watch this year. The U.S. is heavily dependent on imports and exports, so if the global economy is struggling, the U.S. will feel that impact. As the U.S. and the rest of the world continue to fight the COVID-19 pandemic, economic health here and abroad will be extremely important. EDITOR'S NOTE: The realtor.com economics team is continually tracking the impact of the coronavirus pandemic on the U.S. economy and housing market. The team's reports and analysis are available here. About realtor.com® Realtor.com® makes buying, selling and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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New Listings Fall Nearly 45 Percent in April as Coronavirus Keeps Sellers on the Sidelines
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Nearly 3 in 4 Realtors This Week Report Sellers Haven't Lowered Listing Prices to Attract Buyers, Suggesting Calmness and No Panic Selling by Homeowners
WASHINGTON (April 23, 2020) -- Nearly 3 in 4 Realtors currently working with sellers this week -- 74% -- reported their clients haven't reduced listing prices to attract buyers, according to a new survey from the National Association of Realtors. This suggests interested home sellers are remaining calm and avoiding panic selling during the uncertain economic environment brought about by the coronavirus pandemic. "Consumers are mostly abiding by stay-in-shelter directives, and it appears the current decline in buyer and seller activity is only temporary, with a majority ready to hit the market in a couple of months," said NAR Chief Economist Lawrence Yun. "The housing market faced an inventory shortage before the pandemic. Given that there are even fewer new listings during the pandemic, home sellers are taking a calm approach and appear unwilling to lower prices to attract buyers during the temporary disruptions to the economy." NAR's latest Economic Pulse Flash Survey – conducted April 19-20, 2020 – asked members how the coronavirus outbreak has impacted the residential and commercial real estate markets. Several highlights include: More than a quarter of Realtors® – 27% – said they were able to complete nearly all aspects of transactions while respecting social distancing. The most common technology tools used to communicate with clients are e-signatures, social media, messaging apps and virtual tours. Residential tenants are facing rent payment issues, but many delayed payment requests are being accommodated. Forty-seven percent of property managers reported being able to accommodate tenants who cannot pay rent, a 6% increase from a week ago. Nearly a quarter of individual landlords – 24% – said the same, unchanged from last week. NAR also today released its 2020 Animal House: Pets in the Home Buying and Selling Process report, which analyzes Realtor® recommendations and actions taken by home buyers and sellers to best accommodate their pets and present their homes in the best light. Several highlights include: More than 4 in 10 U.S. households – 43% – would be willing to move to better accommodate their pets, demonstrating that this is a priority among consumers. Almost 1 in 5 recent home buyers – 18% – said it was very important that their new neighborhood is convenient to a vet or near outdoor space for their pets. A majority of Realtors®' clients – 68% – said a community's animal policy influenced their decision to rent or buy. "As households in the U.S. pursue comfort, companionship, and home entertainment, animal shelters were cleared out in many cities," said Jessica Lautz, NAR vice president of demographics and behavioral insights. "These pet adoptions could lead to future home sales as families seek to accommodate the best living spaces for their four-legged family members." View NAR's 2020 Animal House: Pets in the Home Buying and Selling Process report. View NAR's Economic Pulse Flash Survey full report. View NAR's Weekly Housing Market Monitor here. The National Association of Realtors® is America's largest trade association, representing more than 1.4 million members involved in all aspects of the residential and commercial real estate industries.
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U.S. Housing Markets Vulnerable to Coronavirus Impact Clustered in Northeast and Florida
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March Housing Trends Provide First Glimpse of COVID-19 Impact on U.S. Housing Market
Signs of softening price growth and slower buyer activity began to emerge in last two weeks of March despite an overall decrease in inventory, higher listing prices and fewer days on market SANTA CLARA, Calif., April 2, 2020 -- The U.S. housing market began to show signs of slowing in the second half of March as the year-over-year decline in inventory softened, the number of newly listed properties declined and prices decelerated compared to earlier in the month, according to realtor.com's March Housing Trends Report released today. The monthly report provides the first data-based glimpse into the impact the COVID-19 pandemic could have on residential real estate as the market enters the spring home-buying season. Due to the strong start to the month, the total number of homes for sale in March overall declined 15.7 percent from the same time a year ago, a faster rate of decline compared to the 15.3 percent drop in February. This amounts to 191,000 fewer homes for sale year-over-year. The impact of COVID-19 materialized in the latter half of March. While the last full week of February showed inventory declining by 16.8 percent -- the largest year-over-year decrease since April 2015, the weeks ending March 21 and 28, respectively, declined at a slower pace of 15.2 percent each on a year-over-year basis. "Our inventory and listing data can provide some early insight into how housing markets may be impacted by COVID-19, but the situation and reactions to it are still rapidly evolving," said realtor.com® Chief Economist Danielle Hale. "The U.S. housing market had a good start to the year. Despite still-limited homes for sale, buyers were buying and builders were building. The pandemic and virus-fighting measures appear to be disrupting that initial momentum as both buyers and sellers adopt a more cautious posture." Although there is not enough movement in weekly data to provide insight into shifts in days on market, the progression of weekly data hints that sellers may be rethinking or postponing their plans to list their home for sale in response to COVID-19. In the weeks ending March 21 and March 28, the volume of newly listed properties decreased by 13.1 percent and 34.0 percent, respectively compared to the prior year. This is in line with recent surveys of agents and consumers that report declining interest among potential homebuyers and homesellers. While far from foreshadowing price declines, price growth decelerated during the weeks ending March 21 and March 28 as compared to earlier in the first two weeks of the month. During the last two weeks of March, the median U.S. listing price increased by 3.3 percent and 2.5 percent year-over-year respectively, the slowest pace of growth this year, and the slowest since realtor.com began tracking in 2013. March Housing Trends Inventory declines continued to impact the housing market in March. The metros which saw the largest declines in inventory were Phoenix-Mesa-Scottsdale, Ariz. (-42.2 percent); Milwaukee-Waukesha-West Allis, Wis. (-36.2 percent); and San Diego-Carlsbad, Calif. (-33.4%). Only Minneapolis-St. Paul-Bloomington, Minn.-Wis. (+3.6 percent) saw inventory increase over the year. Consistent with the first two months of 2020, March saw homes selling more quickly than last year as an early home buying season began in the U.S. The typical home sold in 60 days, four days faster than last year. Properties in Miami-Fort Lauderdale-West Palm Beach, Fla.; Pittsburgh and St. Louis, Mo.-Ill.; spent the most time on the market, selling in 86, 78 and 65 days, respectively. Meanwhile, properties in San Jose-Sunnyvale-Santa Clara, Calif.; Denver-Aurora-Lakewood, Colo.; and Washington-Arlington-Alexandria, DC-Va.-Md.-W. Va., sold most quickly, spending 24, 26 and 29 days on the market, respectively. Listing prices grew at a slightly decelerating pace of 3.8 percent compared to February's 3.9 percent. Of the 50 largest metros, 45 continued to see year-over-year gains in median listing prices. Pittsburgh (+17.9 percent); Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md. (+14.0 percent); and Memphis, Tenn.-Miss.-Ark. (+12.7 percent) posted the highest year-over-year median list price growth in March. The steepest price declines were seen in Dallas-Fort Worth-Arlington, Texas (-2.7 percent); Minneapolis-St. Paul-Bloomington, Minn.-Wis. (-1.4 percent); ; and Houston-The Woodlands-Sugarland, Texas (-1.4 percent). *Some data points for Los Angeles have been excluded due to data unavailability. EDITOR'S NOTE: The realtor.com economics team is continually tracking the impact of the coronavirus pandemic on the U.S. economy and housing market. The team's reports and analysis are available here. About realtor.com® Realtor.com® makes buying, selling and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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Redfin Reports How U.S. Cities Will Fare in the Coronavirus Recession
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NAR Survey Finds Nearly Half of Realtors Say Home Buyer Interest Has Decreased Due to the Coronavirus Outbreak
WASHINGTON (March 19, 2020) -- Nearly half of Realtors -- 48% -- said home buyer interest has decreased due to the coronavirus outbreak, according to a new survey from the National Association of Realtors. That percentage tripled from a week ago when it stood at 16%. Almost seven in 10 Realtors -- 69% -- said there's no change in the number of homes on the market due to the coronavirus outbreak, down from 87% a week ago. "The decline in confidence related to the direction of the economy coupled with the unprecedented measures taken to combat the spread of COVID-19, including major social distancing efforts nationwide, are naturally bringing an abundance of caution among buyers and sellers," said NAR Chief Economist Lawrence Yun. "With fewer listings in what's already a housing shortage environment, home prices are likely to hold steady. The temporary softening of the real estate market will likely be followed by a strong rebound once the economic 'quarantine' is lifted, and it's critical that supply is sufficient to meet pent-up demand." NAR's latest Economic Pulse Flash Survey – conducted March 16-17, 2020 – asked members questions about how the coronavirus outbreak, including the significant declines in stock market values and mortgage interest rates, has impacted home buyer and seller interest and behavior as well as new commercial clients who want to lease and purchase property. With respect to the coronavirus, several highlights of the member survey include: 45% of members said the stock market correction and lower mortgage rates roughly balanced out, noting no significant change in buyer behavior. The majority of members, 61%, reported no change in sellers removing homes from the market, down from 81% a week ago. Four in 10 members said home sellers have not changed how their home is viewed while it remains on the market. One week ago, nearly eight in 10 members – 77% – said the same. More than half of commercial members, 54%, have seen a decline in leasing clients, up from 18% of commercial members last week. Eighty-three percent of commercial buildings have changed practices, with the most common being offering more hand sanitizer, more frequent building cleanings, and increasing numbers of tenants working remotely. View NAR's Economic Pulse Flash Survey full report here. The National Association of Realtors® is America's largest trade association, representing more than 1.4 million members involved in all aspects of the residential and commercial real estate industries.
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Exclusive Podcast Interview with NAR Chief Economist on Coronavirus Impact
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What Makes Buyers Fall in Love with a Home?
This Valentine's Day realtor.com® looks at the country's most loved home features SANTA CLARA, Calif., Feb. 11, 2020 -- What makes someone fall in love with a home? Across the U.S., people swoon over fabulous pools, stunning water views and ever-sexy storage space, but a new analysis released today by realtor.com® reveals what really makes home shoppers' hearts skip a beat. Realtor.com® analyzed keyword home search data in each U.S. state to determine regional must-have features when searching for a home. According to the data, Mainers want to go "upta camp," a local term used for a cabin or cottage. Oklahomans are looking for storm shelters, and California loves solar power. In Hawaii, where real estate prices are sky-high and leaseholds are part of the for-sale market, home shoppers are searching for "fee simple" homes to ensure they own the land and the building in their little piece of paradise. Additionally, D.C. residents want to be near the Metro, the city's local public transportation system, Pennsylvanians want parking; and in New York, where outdoor space can be hard to come by, residents would love to have a balcony. "While some of the country's most-loved home features, such as accessory dwelling units or lakefront properties, will likely fetch a premium on the open market, others are more matters of the heart," said George Ratiu, senior economist, realtor.com®. "Maybe you grew up in a certain style of home or have always dreamed of having a big yard -- everyone's vision of home is unique and being able to search for what makes a house perfect for you can help you find true love in a new home." If the shed's a-rockin' Topping the list of most-loved features are the makings for man-caves, she-sheds, workshops and granny pods. Popular search terms in this category include in-law apartment, barn, ADU, casita and RV parking. Residents in 13 states, including Arizona, Idaho, Louisiana, Massachusetts, Mississippi, Montana, Nevada, New Jersey, New Mexico, Oregon, Texas, Utah and Washington, all want alternative living spaces. Whether it's because they love being in close proximity to their relatives or because they love the extra rental income, separate spaces are a top must-have item. Don't come a-knockin' Unsurprisingly, people in many states love their privacy -- acreage, fenced yard, room for horses and a country setting all make the top searched feature list. Home shoppers in six states -- Alaska, Illinois, Iowa, Vermont, Wisconsin and Wyoming -- all want room to roam and some real separation from the neighbors. Take my breath away With a large number of baby boomers reaching retirement age, America has fallen out of love with having to climb stairs. Residents in nine states -- Colorado, Delaware, Georgia, Kentucky, Maryland, North Dakota, Ohio, Rhode Island and Virginia -- don't want anything to do with multi-level homes. Top searches in these states include first-floor master, ranch, rambler and single-level. Beauty is in the eye of the beholder For some, the old adage rings true that real estate is all about location, location, location. In Arkansas, Florida, Minnesota, Missouri, Tennessee and West Virginia, having a heavenly location with beautiful views topped the must-have list. Home buyers in these states are searching for a lake view, canal, dock, lakeshore and river access as their favorite features. For others, it's all about looks. For example, in states like Connecticut and New Hampshire that have a lot of older homes, people are looking for contemporary style, while South Carolinians love traditional brick facades and Texans prefer a modern aesthetic. Most Searched Home Features For more information, read the full report here. Methodology: The top features were derived from realtor.com® home keyword search data between April 2019 and December 2019, generating a list of twenty features per state. The most searched for term from each state was selected, omitting the responses that appeared consistently across states. About realtor.com® Realtor.com® makes buying, selling and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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Redfin Ranks the Most Walkable U.S. Cities of 2020
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U.S. Housing Supply Reaches New Low
Inventory continued to fall and prices rose in January setting the stage for a competitive homebuying season SANTA CLARA, Calif., Feb. 7, 2020 -- National housing inventory declined 13.6 percent in January, the steepest year-over-year decrease in more than 4 years, pushing the supply of for sale homes in the U.S. to its lowest level since realtor.com® began tracking the data in 2012, according to the website's January Monthly Housing Trends Report released today. Based on realtor.com®'s analysis, January's steep year-over-year decline amounted to a national loss of 164,000 listings, tightening the grip of the housing shortage plaguing the U.S. Based on realtor.com® data, it shows no signs of easing in the near future as the volume of newly listed properties also declined by 10.6 percent since last year. "Homebuyers took advantage of low mortgage rates and stable listing prices to drive sales higher at the end of 2019, further depleting the already limited inventory of homes for sale. With fewer homes coming up for sale, we've hit another new low of for sale-listings in January," according to Danielle Hale, realtor.com®'s chief economist. "This is a challenging sign for the large numbers of Millennial and Gen Z buyers coming into the housing market this homebuying season as it implies the potential for rising prices and fast-selling homes—a competitive market. In fact, markets such as San Jose in Northern California, which saw inventory down nearly 40 percent last month, are also seeing prices grow by 10 percent while homes are selling at a blistering pace of 51 days." The supply shortage is found at every price tier throughout the U.S., but it is especially pronounced at the entry-level. In January, properties priced under $200,000 declined by 19 percent, an acceleration compared to December's decline of 18.1 percent. The decline in inventory of mid-tier properties priced between $200,000 and $750,000 also accelerated, to a decline of 12 percent year-over-year, compared to December's 10.2 percent decline. Even upper-tier properties priced at more than $750,000 declined by 5.9 percent year-over-year compared to December's decline of 4.4 percent. As inventory reached its lowest point on record, both listing prices and days on market reacted to the imbalance of supply and demand. The median U.S. listing price grew by 3.4 percent year-over-year, to $299,995 in January, while prices in 18 metros grew by more than 10 percent. Of the 50 largest metros, 46 saw year-over-year gains in median listing prices, with Philadelphia as the nation's standout with a 16.0 percent increase over last year. Additionally, with the lack of supply, homes are selling in an average of 86 days, two days more quickly than January of last year. Where Housing Supply Changed the Most The metros which saw the largest declines in housing inventory were San Jose-Sunnyvale-Santa Clara, Calif. (-37.3 percent); Phoenix-Mesa-Scottsdale, Ariz. (-35.4 percent); and San Diego-Carlsbad, Calif. (-34.0 percent). Other markets across the country where housing supply had sharp declines included Denver-Aurora-Lakewood, Colo. (-28.8 percent); Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md. (-27.8 percent); and Cincinnati, Ohio-Ky.-Ind. (-24.4 percent). Only two of the 50 largest metros saw inventory increase year-over-year: Minneapolis-St. Paul-Bloomington, Minn.-Wis. (+9.4 percent); and San Antonio-New Braunfels, Texas (+8.4 percent). Where Prices Changed the Most Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md. (+16.0 percent); Rochester, N.Y. (+15.0 percent); and Phoenix-Mesa-Scottsdale, Ariz. (+14.5 percent) posted the highest year-over-year median list price growth in January. Other markets across the country where housing prices shot up included Memphis, Tenn.-Miss.-Ark. (+13.7 percent); and Indianapolis-Carmel-Anderson, Ind. (+12.9 percent). The steepest price declines were seen in Louisville/Jefferson County, Ky.-Ind. (-4.0 percent); Minneapolis-St. Paul-Bloomington, Minn.-Wis. (-2.0 percent); and Houston-The Woodlands-Sugarland, Texas (-1.9 percent). However, each of these markets saw yearly price declines decelerate compared to December. Where Days on Market Changed the Most Hartford-West Hartford-East Hartford, Conn.; Raleigh, N.C.; and Oklahoma City, Okla.; saw the largest decreases in days on market with properties spending 13, 13, and 12 fewer days on the market than last year, respectively. Other markets across the country where houses sold faster than last year included Austin-Round Rock, Texas (-9 days); Minneapolis-St. Paul-Bloomington, Minn.-Wis. (-6 days); and Orlando-Kissimmee-Sanford, Fla. (-6 days). Meanwhile, properties in Las Vegas-Henderson-Paradise, Nev.; Boston-Cambridge-Newton, Mass.-N.H.; and Detroit-Warren-Dearborn, Mich. sold 7, 7, and 6 days more slowly, respectively. Metros Seeing the Largest Declines in Inventory About realtor.com® Realtor.com® makes buying, selling and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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Expect Continued Economic Growth, Slower Real Estate Price Gains and Small Chance for Recession in 2020, According to Group of Top Economists
WASHINGTON (December 11, 2019) -- A group of top economists arrived at a consensus 2020 economic and real estate forecast today at the National Association of Realtors' first-ever Real Estate Forecast Summit. The economists who gathered at NAR's Washington, D.C. headquarters expect the U.S. economy to continue expanding next year while projecting real estate prices will rise and reiterating that a recession remains unlikely. These economists predicted a 29% probability of a recession in 2020 with forecasted Gross Domestic Product growth of 2.0% in 2020 and 1.9% in 2021. The group expects an annual unemployment rate of 3.7% next year with a small rise to 3.9% in 2021. When asked if the Federal Open Market Committee will change the federal funds rate in 2020, 69% of the economists said they expect no change, while 31% expect the committee will lower the rate next year. The average annual 30-year fixed mortgage rates of 3.8% and 4.0% are expected for 2020 and 2021, respectively. Annual median home prices are forecasted to increase by 3.6% in 2020 and by 3.5% in 2021. "Real estate is on firm ground with little chance of price declines," said NAR's Chief Economist Lawrence Yun. "However, in order for the market to be healthier, more supply is needed to assure home prices as well as rents do not consistently outgrow income gains." Apartment rents are expected to rise 3.8% and 3.6%, respectively, in 2020 and 2021. According to the group of economists, annual commercial real estate prices will climb 3.6% in 2020 and 3.4% in 2021. "Residential and commercial real estate investment remains attractive as we approach the start of a new decade," said NAR President Vince Malta, broker at Malta & Co., Inc., in San Francisco, CA. "Increased home building can serve as a stimulator for the overall economy, and we strongly encourage more homes to be built as buyer demand remains strong." The 2019 NAR Real Estate Forecast Summit consensus forecasts are compiled as averages of the responses of 14 leading economists who participated during the summit. The survey was conducted from December 2-5, 2019. The National Association of Realtors® is America's largest trade association, representing more than 1.4 million members involved in all aspects of the residential and commercial real estate industries.
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Low Inventory Drives Home Buyers to Explore Big City Alternatives
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iBuyers Rapidly Snap Up Market Share Across Southern Metros, Redfin Finds
Raleigh Overtakes Phoenix as the New Hotspot for iBuyer Activity in the Third Quarter SEATTLE, Dec. 11, 2019 -- iBuyers purchased 3.1% of the homes sold during the third quarter of 2019 across 18 markets, up from 1.6% a year earlier, according to a new analysis from Redfin, the tech-powered real estate brokerage. The markets where iBuyers had the largest market share were Raleigh (6.8%), Phoenix (5.1%), Atlanta (4.4%) and Charlotte (4.3%). The term "iBuyer" (short for instant buyer) is used to describe real estate companies, such as RedfinNow, that use technology to make quick cash offers and purchase homes directly from homeowners. They then quickly update and resell the homes. The Redfin analysis, the first in what will be a quarterly report on iBuyer activity, looked at home sales in the third quarter across 18 metro areas where iBuyer purchases accounted for at least 1% of the market. Redfin analyzed public records on the home purchases and sales of the four largest iBuyers: Opendoor, Zillow, Offerpad and RedfinNow. Raleigh unseated Phoenix—birthplace of the iBuyer movement—as the biggest market for iBuyers in the second and third quarters. The share of homes purchased by iBuyers increased the most in Houston, where iBuyers bought 3.8% of the homes in the third quarter of 2019, up from just 0.1% a year prior. Jacksonville saw the second-largest increase, up to 3.0% from 0%. The third-largest jump was in Raleigh, where iBuyer market share rose to 6.8% up from 3.8%. "iBuyers are concentrating their efforts in southern markets where both home sales and prices are poised for strong growth," said Redfin chief economist Daryl Fairweather. "We think that iBuyers are likely to accelerate home sales in these markets. Homeowners who may have been reluctant to sell because they didn't want to deal with the hassle may be persuaded by the convenience of an iBuyer sale." The markets where iBuyers are currently doing the most business are those where the typical home is priced at or below the national median ($313,200 in October). Affordable homes tend to sell more quickly than more expensive homes, which allows iBuyers to move through their housing inventory and buy additional homes more quickly, refining their process with every home they sell. The median price of homes sold by iBuyers fell in 17 of 18 markets in the third quarter compared to a year earlier, despite the overall price of homes increasing in every market. Phoenix was the only market where the median iBuyer sale price was unchanged. Market Share and Median Sale Price in Areas Where iBuyers Have at Least 1% Share Homes sold by iBuyers in the third quarter stayed on the market for a median of 28 days, down from 74 days a year prior. This large decline is likely due to the iBuyers improving their processes and becoming better at pricing homes to sell. Redfin has not seen a similar decline in days on market in the market as a whole. Homes sold by iBuyers spent less time on market than the typical home in 13 of the 18 metros. The three metro areas with the largest difference in days on market were Raleigh (33 days faster), Charlotte (33 days) and Nashville (30 days). The outliers where iBuyer homes took longer to sell were Portland, OR—where iBuyer homes spent 13 more days on the market than the median for the metro—Sacramento (11 days), Minneapolis (6 days), Denver (5 days) and Austin (3 days). The buying and selling activity of iBuyers can be difficult to assess because each company purchases a home as an entity (such as a corporation, partnership or LLC) and each iBuyer can have multiple purchasing entities of different names. The analysis identifies these entities to the extent possible, but there may have been iBuyer purchases in the quarter that Redfin was not able to connect to an iBuyer. To read the full report complete with local market data, charts and full methodology, visit: https://www.redfin.com/blog/ibuyer-real-estate-q3-2019 About Redfin Redfin is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 90 major metro areas across the U.S. and Canada. The company has helped customers buy or sell homes worth more than $85 billion.
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Brian Buffini Reveals 2020 Real Estate Market Outlook
Real estate industry disruption starts with unhappy customers, not technology CARLSBAD, Calif., Dec. 11 2019 -- Real estate industry legend Brian Buffini has revealed that exceptional skills, service and training are must-have qualities for real estate agents looking to succeed in a market ripe with customer dissatisfaction. In his free broadcast, Brian Buffini's Bold Predictions, Buffini used his more than 30 years of real estate experience to outline the state of the market, industry and agent in 2020, ultimately explaining why it is critical for real estate agents to step up their service game in the new year. "Disruption starts with unhappy customers, not technology," Brian Buffini, Founder and Chairman of Buffini & Company, says. "The business must shift its focus back to prioritizing customer experience in 2020. To achieve this, agents will need to boost their skills, become total pros and provide superior service." Buffini also predicts a solid economy moving into 2020, without an imminent recession threat. He forecasts the real estate industry will see an expansion of teams, but slowing profits for local brokerages. Again, he attributes these changes to customers who are unhappy with their service and overwhelmed by conflicting media narratives on where the economy is going. To remedy this, Buffini advises real estate agents to talk with clients to separate market facts from feelings. Each year, Chairman of Buffini & Company, Brian Buffini, reveals his top predictions for the national market and the real estate industry as a whole in a broadcast aired exclusively online. His track record has been remarkable; among other events, he predicted the Great Recession, the impending automation of the industry, and the inventory shortage. About Buffini & Company Buffini & Company is the largest coaching and training company in North America. Founded by real estate legend and master motivator Brian Buffini, the company provides a unique and highly-effective lead generation system. Buffini & Company's comprehensive business coaching and training programs have helped more than 3 million professionals in 37 countries improve their business, increase net profit and enhance their quality of life. Buffini & Company is headquartered in Carlsbad, California. Learn more at buffiniandcompany.com.
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Redfin Report: Bidding Wars Remain at 10-Year Low in November
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Curious Case: A U.S. Housing Market No One Saw Coming
November inventory drops 9.5 percent year-over-year; homes priced below $200,000 decreased by a substantial 16.5 percent SANTA CLARA, Calif., Dec. 9, 2019 -- What a difference a year makes. In November 2018, higher mortgage rates and increasing inventory characterized the U.S. housing market. This November, the number of homes for sale fell nearly 10 percent year-over-year in a market where low interest rates are spurring increased demand, according to the November 2019 Housing Trends report released today by realtor.com®. "As millennials -- the largest cohort of buyers in U.S. history -- embrace homeownership and take advantage of this year's unexpectedly low mortgage rates, demand is outstripping supply, causing inventory to vanish," according to realtor.com senior economist, George Ratiu. "The housing shortage is felt acutely at the entry-level of the market, where most millennials are looking to break into the market for their first home." Ratiu added, "The issue is further compounded by the fact that sellers tend to be more reluctant to list during the colder time of year when the market typically makes a seasonal slowdown." Based on realtor.com's listing data, the shortage of available homes for sale is accelerating. Overall, inventory declined 9.5 percent in November, compared to October's drop of 6.9 percent. November's inventory declines amounted to a loss of 131,000 listings nationwide, compared to this time last year. In the nation's 50 largest metros, inventory declined by 8.8 percent year-over-year. Additionally, the volume of new listings hitting the market has decreased by 7.7 percent since last year, adding to the nation's inventory woes. Finding an affordable home still remains one of the largest obstacles to homebuyers, and is predicted to continue to be a problem for many buyers heading into 2020. The inventory of homes priced below $200,000 decreased by a substantial 16.5 percent year-over-year in November, up from the 15.2 percent decrease seen in October. Inventory decreases were the norm across all price points in November. Mid-tier inventory priced between $200,000 and $750,000 also decreased by 7.4 percent year-over-year compared to October's year-over-year drop of 4.3 percent, while high-end inventory priced above $1 million decreased by 1.7 percent year-over-year, compared to October's year-over-year increase of 1.3 percent. "The inventory decreases seen across all value ranges could in part be attributed to a spill-over effect, as the lack of inventory has pushed buyers up the price chain to stretch their budgets and search for homes above their initial price target," Ratiu noted. The metros with the sharpest drops in inventory were San Diego (-28.1 percent); Phoenix (-24.1 percent); and Rochester, N.Y. (-22.4 percent). Only four of the 50 largest metros saw inventory increase year-over-year. The largest inventory increases were in Las Vegas (+14.4 percent); Minneapolis (+11.5 percent); and San Antonio, Texas (+7.2 percent). Facing even fewer options than last year, eager buyers are acting quickly to close on the few homes that are currently available. During November, home sold in an average of 70 days nationally, two days more quickly than last year. Raleigh, N.C.; Hartford, Conn.; and Birmingham, Ala.; saw the largest declines in days on market with properties spending 10, 10, and 9, fewer days on the market than last year, respectively. Conversely, properties in some of metros found homes sitting on the market longer. Homes in Los Angeles; San Jose, Calif. and Las Vegas sold 20, 12, and 10 days more slowly than last year, respectively. Meanwhile, the national median home price has yet to adjust to the recent inventory declines after a multi-month run up in inventory earlier this year. The median U.S. listing price grew by only 3.6 percent year-over-year, to $309,000 in November, which is less than the 4.3 percent year-over-year increase seen last month. However, of the 50 largest U.S. metros, 43 saw year-over-year gains in median listing prices. Los Angeles (+16.6 percent); Rochester, N.Y. (+12.8 percent); and Birmingham, Ala. (+12.3 percent); saw the highest year-over-year median list price growth in November. Conversely, the steepest price declines were seen in Louisville, Ky. (-4.0 percent); Minneapolis (-2.0 percent); and Houston (-1.6 percent). Metros Seeing the Largest Declines in Inventory   About realtor.com® Realtor.com®, The Home of Home Search, offers the most MLS-listed for-sale listings among national real estate portals, and access to information, tools and professional expertise that help people move confidently through every step of their home journey. Through its Opcity platform, realtor.com® uses data science and machine learning to connect consumers with a real estate professional based on their specific buying and selling needs. Realtor.com® pioneered the world of digital real estate 20 years ago, and today is a trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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Home Sellers Will Remain on the Sidelines in 2020
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Redfin Predicts Homebuyers Will Have Fewer Options, Bidding Wars Will Rebound in 2020
Charleston and Charlotte will lead the nation in home-price growth as more people and employers move to affordable Southeast cities SEATTLE, Nov. 25, 2019 -- The housing market will be more competitive in 2020 as the cooldown that began in the second half of 2018 comes to an end, according to new predictions released by Redfin, the technology-powered real estate brokerage. "Low mortgage rates started to revitalize the market at the end of this summer, but we won't see their full impact on demand for housing until next year," said Redfin chief economist Daryl Fairweather, who authored the report. "In 2020, buyers will have fewer homes to choose from than they have in five years. But the return of bidding wars is good news for sellers who may have been holding out this year as the market stabilized. The competition and faster price growth will tempt more homeowners and builders to list homes, which will help improve the balance between supply and demand by the end of the year." Redfin's 2020 housing market predictions: Bidding wars will rebound thanks to low mortgage rates and a lack of homes for sale Low mortgage rates will continue to strengthen homebuying demand, but due to a lack of new homes for sale and homeowners staying put longer, there will be fewer homes on the market in 2020 than in the past five years. More demand and less supply mean bidding wars will rebound in the first quarter. Redfin expects about one in four offers to face bidding wars in 2020 compared to only one in 10 in 2019. This increase in competition will push year-over-year price growth up to 6% in the first half of the year, considerably stronger than the 2% growth seen in the first half of 2019. Supply and demand will become more balanced later in the year as more listings of new and existing homes hit the market and price growth will moderate to 3%. 30-year fixed mortgage rates will stabilize at 3.8% Throughout 2020, 30-year fixed mortgage rates will remain low, hovering around 3.8%. Faced with slowing economic growth, the Federal Reserve will keep interest rates low. Although the housing market is strong, weakness in other sectors, like manufacturing, is pulling down on the economy. Because investors are already bracing for the possibility of a recession, Redfin doesn't expect mortgage rates to fall much lower than 3.5% in 2020 even if the economy weakens. If the economy strengthens, Redfin expects mortgage rates to stay below 4.1%. For the first time, Hispanic Americans will gain more wealth from home equity than white Americans In the next decade, Hispanic Americans will, for the first time, gain more home equity than white Americans. That's because the majority of new homeowners are Hispanic, and home values in Hispanic neighborhoods are increasing faster than in white neighborhoods. There are more Hispanic homeowners in Texas than in any other state, and Texas cities are likely to experience strong gains in home values over the next decade as people move here from more expensive places like San Francisco and Los Angeles. Over time, this will improve economic equality for Hispanic Americans. Climate change will become a bigger financial factor for homebuyers and sellers In 2020, homebuyers and sellers will take the consequences of climate change into account when deciding to buy. The financial costs of climate change are already becoming more tangible as fire and flood insurance premiums rise. Over the next decade, higher insurance premiums in high-risk areas will make housing even less affordable to more people. And in areas with the highest risk, insurers may stop providing insurance altogether, which means it will be nearly impossible to secure a mortgage in those areas. Charleston and Charlotte will lead the nation in home price growth Affordable Southeast cities like Charleston and Charlotte are attracting an increasing number of migrants from expensive cities, which will drive up home price growth in these areas. Charleston saw a 104% annual increase in the number of Redfin users looking to move in, relative to the number of users looking to move out, in the third quarter of 2019, and Charlotte saw a 44% increase. Migrants are attracted to the growing economies of Charleston and Charlotte—Microsoft is spending $23 million to expand its Charlotte campus, and in Charleston, the new Volvo plant is adding thousands of jobs. More city streets will become car-free In 2020, more cities will favor green modes of transit and actively discourage driving. Some cities already have plans in the works—San Francisco's Market Street will transform into a car-free corridor in 2020, and New York City drivers will have to pay to drive into the heart of the city beginning in 2021. In cities that become less car-friendly, those that frequently spend time in the city-center will place more value on a commute that doesn't require a car and move to either a walkable city-center or close to public transit. Meanwhile, some people will choose to avoid the city-center altogether and put a higher value on suburbs where they can work, play and live. To read Redfin's full predictions, please click here. To find out which of the predictions come true and which turn out to be incorrect, follow the Redfin Blog for real-time research on the housing market. About Redfin Redfin is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 85 major metro areas across the U.S. and Canada. The company has closed more than $85 billion in home sales.
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U.S. Housing Inventory Tightens as Competition Heats Up
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Migration Trends Reach Record High as 26% of Home Searchers Look to Change Metros
Boston tops list of U.S. migration destinations ahead of more affordable inland metros SEATTLE, Oct. 18, 2019 -- Twenty-six percent of home searchers looked to move to another metro area in the third quarter of 2019, up from 25 percent the year before, according to a new report from Redfin, the technology-powered real estate brokerage. This is a new all-time high for the national share of home-searchers looking to relocate, likely driven by those leaving expensive metros in search of more affordable homes. 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 July through September. Moving In — Metros with the Highest Net Inflow of Redfin Users After two quarters at the top of our list of metro areas with the highest net inflow of Redfin users, Phoenix fell to number three in the rankings in the third quarter, passed by Boston at number one and Sacramento at number two. A net inflow means more people are looking to move in than leave, while a net outflow means there are more people looking to leave than people looking to move in. Seventeen percent of homebuyers searching in the Boston metro area were looking from other metro areas in the third quarter, up from both a year earlier (12.0%) and the second quarter (14.1%). New York continues to be the top origin city for people looking to move to Boston, and Boston is the top destination for people looking to leave New York. "There is a sense here in New York that the sky has been falling for our housing market all year," said Redfin New York market manager Nick Boniakowski. "People fleeing NYC aren't looking for a rural life, they are fleeing the high costs. Boston presents a slightly more accessible cost of living, while still providing urban quality of life that many desire today. Boston is appealing because it's close and there are similar employment opportunities." Boston's rise to the top of the migration list is unusual, since most of the top destinations in recent years have been more affordable metro areas. However, relative to New York City, Boston's lower sales taxes, income taxes, and property taxes are likely a big factor driving people to make the move between the two cities. Six of the top ten migration destinations have median prices below the national median, and only San Diego has a higher median price than Boston. The second quarter was the first time since Redfin began tracking migration data that Boston has been in the top 10 migration destinations. It debuted in the second quarter at number nine on the list before shooting all the way up to number one in the third quarter. Most of the interest in Boston continues to come from New York. Boston's lower sales, income, and property taxes are likely a big factor driving people to move there from New York. Moving Out — Metros with the Highest Net Outflow of Redfin Users The list of metros people most-often looked to leave was once again topped by New York, San Francisco, Los Angeles and Washington, D.C. in the third quarter. Net outflow is defined as the number of people looking to leave the metro minus the number of people looking to move to the metro. "Homebuyers are leaving expensive metros for affordable metros and as a result there are fewer and fewer homes for sale in more affordable parts of the country," said Redfin chief economist Daryl Fairweather. "In San Francisco, for example, inventory has been rising because there aren't many San Franciscans who can afford the high prices. San Franciscans are moving to Sacramento where homes are much more affordable, and that, combined with a lack of new listings, has caused inventory to decline in Sacramento." To read the full report, including additional data and an interactive migration map, please visit: https://www.redfin.com/blog/q3-2019-housing-migration-report. About Redfin Redfin is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 85 major metro areas across the U.S. and Canada. The company has closed more than $85 billion in home sales.
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CoreLogic Releases Most Recent HPI Forecast Validation Report
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Housing Trends Foreshadow Housing Shortage Ahead
Low mortgage rates shrink entry-level and mid-tier inventory levels in September 2019 SANTA CLARA, Calif., Oct. 8, 2019 -- Nearly two years after U.S. housing inventory hit its lowest levels in recorded history, the market is showing signs it may be headed for another shortage, according to realtor.com's September 2019 housing trend report released today. Data show increased demand from lower mortgage rates prompted a 10 percent year-over-year decrease in available homes under $200,000 and halted 18 months of inventory gains in the mid-market last month. National inventory of homes for sale continued to decline in September, posting a 2.5 percent decrease over this time last year, and a faster rate of decline compared to August's 1.8 percent decrease. Driven by strong demand and short supply, entry-level homes priced below $200,000 have been steadily decreasing since May of 2014, which continued in September with a yearly decline of 9.8 percent. After 18 months of solid inventory growth, mid-market homes priced between $200,000 and $750,000 -- which make up the largest segment of inventory -- flatlined in September with 0 percent growth and are poised for their first decline next month. "Buyers looking for their next home have faced the headwinds of tight inventory and a competitive market this year. While lower mortgage rates and the arrival of fall promised a reprieve, conditions continue to tighten as demand remains strong. September inventory trends, especially in the mid-market, may be the canary in the coal mine that we could be headed for even lower levels of inventory in early 2020," according to George Ratiu, senior economist for realtor.com®. Finding an affordable home has been a challenge for buyers in recent years, but mid-market inventory in particular has seen some relief in the last 18 months. This month's data shows that recovery has halted, which should translate into increased competition for move-up buyers, not just first-time buyers. "The mid-tier of housing represents nearly 60 percent of homes for sale on the market, making it a solid indicator of how tight inventory levels are in the U.S. After more than a year and a half of solid growth in this segment, we're seeing inventory levels stall out and flat-line. If, or better yet, when inventory in this segment begins to take a downturn, the vast majority of homebuyers are going to feel its effects as their options rapidly dwindle," said Ratiu. Homes listed over $750,000 continued to grow by 4.7 percent year-over-year. However, if strong homebuying demand, fueled by lower interest rates, continues to persist into the fall, the inventory of homes in this upper-tier price range could also see declines by February of the coming year. Price gains continued to moderate this month. The median U.S. home list price was $305,000 in September, 4.3 percent higher than this time a year ago. However, price growth is slower than last September, when the median list price grew by 7.3 percent. The pace of sales also remained at near record highs.The median age of properties on realtor.com® in September reached 65 days. The typical property spent one more day on the market compared to last September and two more than last month, in keeping with the seasonal trend of buying activity slowing in the fall. About realtor.com® Realtor.com®, The Home of Home Search, offers the most MLS-listed for-sale listings among national real estate portals, and access to information, tools and professional expertise that help people move confidently through every step of their home journey. Through its Opcity platform, realtor.com® uses data science and machine learning to connect consumers with a real estate professional based on their specific buying and selling needs. Realtor.com® pioneered the world of digital real estate 20 years ago, and today is a trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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Realtor.com Predicts Market Shift That Could Impact Buyers Well Into 2020
U.S. Inventory Declines Likely to Return by October SANTA CLARA, Calif., July 9, 2019 -- The housing market is posed for a shift that could affect buyers well into 2020 -- the resurgence of national inventory declines. According to realtor.com's July 2019 Monthly Housing Trend report released today, in just a few months* buyers may begin to see a drop in the number of homes for sale that could lead to the return of bidding wars, stronger price appreciation and quicker home sales. Continuing its unabated record growth, the U.S. median listing price in June reached its likely high point for the year at $316,000, earlier than its usual July peak due to the mismatch of what's available and what buyers want. Nationally, housing inventory grew 2.8 percent year-over-year, an addition of approximately 40,000 listings, down from May's 2.9 percent growth. The slowing of inventory gains first appeared in 2019 with a decline from 6.4 percent growth in January to 5.8 percent in February. It continued throughout the spring with 4.4 percent growth in both March and April, 2.9 percent in May and now 2.8 percent in June. If this trend continues, inventory growth will flatten over the next three months and could hit its first decline in October 2019. "It was only 18 months ago that the number of homes for sale hit its lowest level in recorded history and sparked the fiercest competition among buyers we've ever seen. If the trend we're seeing continues, overall inventory could near record lows by early next year," said Danielle Hale, chief economist for realtor.com®. "So far there's been a lackluster response to low mortgage rates, but if they do spark fresh buyer interest later in the year, U.S. inventory could set new record lows." Part of this slowdown can be attributed to the fact that newly listed homes have either declined or reported meager growth in 2019, such as June's 2.3 percent yearly decrease. According to Hale, the reason why people aren't putting their homes on the market is more difficult to determine. "It's likely a combination of rate-lock, recently decreased consumer confidence and older generations choosing to age in place," she added. Only seven years ago, 30 year fixed mortgage rates reached their lowest point at 3.3 percent since Freddie Mac began tracking this data, which prompted many homeowners to refinance. Although rates are still low, they're currently 50 basis points higher than they were in December 2012 and higher than one third of the weekly rates recorded over the last seven years, which means a substantial number of homeowners have mortgages with rates well below today's levels. If homeowners want to trade up, they would not only have to pay more for a larger home, they would pay more to finance it. Additionally, consumer confidence fell 4.4 percent over the past year, which could reflect consumer concerns over a potential recession or future economic growth. The time properties spent on the market in June 2019 was 56 days, a two-day increase from last year. Additionally, the number of homes with price reductions increased by 8.7 percent compared to the previous year, which means one in five homes on the market this June had a price cut, compared to one in six last year. *Projections based on January-June 2019 inventory trend data and assume no disruption to current trajectory. For more information on realtor.com®'s June housing trend report, please visit: https://www.realtor.com/research/june-2019-data/ Editors note: Realtor.com® is upgrading its database to a new system that allows for more enhanced listings tracking. Market level trend data is being held until the conversion is complete. About realtor.com® Realtor.com®, The Home of Home Search℠, offers the most MLS-listed for-sale listings among national real estate portals, and access to information, tools and professional expertise that help people move confidently through every step of their home journey. Through its Opcity platform, realtor.com® uses data science and machine learning to connect consumers with a real estate professional based on their specific buying and selling needs. Realtor.com® pioneered the world of digital real estate 20 years ago, and today is a trusted resource for home buyers, sellers and dreamers by making all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com.
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Homes Becoming More Affordable Despite Rising Prices
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REALTORS and Social Media: Latest RPR Survey Reveals Trends
CHICAGO (April 23, 2019) – Realtors Property Resource, a wholly owned subsidiary of the National Association of REALTORS, is pleased to announce the results of its 2019 REALTOR® Social and Digital Media Report. The report includes findings from a survey of over 650 REALTORS concerning how they use social and digital media to market themselves and build their businesses. Of 651 REALTORS surveyed, almost 74% indicated that awareness is the main reason they look to social media to boost their marketing tactics. An overwhelming majority of respondents, nearly 65%, plan to commit more time to social and digital media. And just over 62% have more of their marketing budget earmarked towards social media for the coming year. "Social and digital media should play a huge role in any agent's marketing efforts," says Reggie Nicolay, RPR Vice President of Marketing. "Raising awareness of yourself and your services via channels such as Facebook, Instagram and email are the new normal in real estate marketing. It really comes down to fishing where the fish are, and the sea is full of social media users." Facebook and Instagram are the most popular social outlets for REALTORS®. Interestingly, Instagram edged out LinkedIn, which was 2017's second most used platform. Property listings are the most popular form of social media posts for real estate professionals, with local events and buying tips coming in second and third. When it comes to the type of content and format that REALTORS® are posting, photos are the number one choice, followed up by video and other content links. When it comes to digital media, email is far and away the big winner, with over 78% of REALTORS® saying the use it as their digital marketing tool of choice. Texting, videos and eNewsletters rounded out the other top digital media deliverables. Additional 2019 REALTOR®Social and Digital Media Report key findings include: Over 60 percent of respondents said they will commit more time to social and digital media in the coming year 57 percent of REALTORS® spend 1-4 hours per week on their social media presence Almost 58 percent of REALTORS® spend 1-4 hours per week on their digital marketing efforts To read the complete study results, view the PDF.
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Spring Home Buyers Eye Homes in Need of Renovation
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Gen Xers' Adult Children Influence Their Buying Decisions, Younger Millennials Become Buying Force According to Realtor Report
WASHINGTON (April 1, 2019) – One in six Gen Xers purchased a multi-generational home, overtaking younger boomers as the generation most likely to do so; with 52 percent of those Gen X buyers indicating that they did so because their adult children have either moved back or never left home. This is according to the National Association of Realtors®' 2019 Home Buyer and Seller Generational Trends study, which evaluates the generational differences of recent homebuyers and sellers. The report also found that older millennials who bought a multi-generational home, at 9 percent, were most likely to do so in order to take care of aging parents (33 percent), or to spend more time with those parents (30 percent). "The high cost of rent and lack of affordable housing inventory is sending adult children back to their parents' homes either out of necessity or an attempt to save money," says Lawrence Yun, NAR chief economist. "While these multi-generational homes may not be what a majority of Americans expect out of homeownership, this method allows younger potential buyers the opportunity to gain their financial footing and transition into homeownership. In fact, younger millennials are the most likely to move directly out of their parents' homes into homeownership, circumventing renting altogether." Millennials as a whole accounted for 37 percent of all buyers, making them the most active generation of buyers for the sixth consecutive year. 2019 is the first year the report separated younger and older millennials, accounting for 11 and 26 percent of buyers respectively. This separation was deemed necessary as younger millennials now account for a larger buying share than the silent generation (7 percent). Gen X buyers were the second largest group of buyers (24 percent), followed by younger boomers (18 percent) and older boomers (14 percent). Dividing millennials into younger and older cohorts highlights the disparities between the two age groups, and paints a picture of older millennials that is much closer to Gen Xers and younger boomers. Older millennials have a median household income of $101,200 and purchase homes with a median price of $274,000, comparable to Gen Xers ($111,100 income, $277,800 median home price) and younger boomers ($102,300, $251,100 respectively). Yun says this is to be expected as millennials continue to age and advance through various stages of their lives and careers. "Older millennials are now entering the prime earning stages of their careers, and the size and costs of homes they purchase reflect this. Their choices are falling more in line with their Gen X and boomer counterparts." Younger millennials, meanwhile, are purchasing the least expensive homes and smallest homes ($177,000 and 1,600 square feet), meaning they face the greatest challenge in finding affordable inventory. They also report a median household income of $71,200. Downsizing to a smaller home is not currently common among any of the generations. Sellers over the age of 54 only downsize by a median of 100 to 200 square feet. Gen Xers and boomers who may have been interested in downsizing could have been hindered by a lack of smaller inventory; or may have been impeded by the increase in multi-generational living these generations are reporting to accommodate the needs of adult children and aging parents. Student loan debt remains a barrier to homeownership Older millennials and Gen Xers carry the most substantial amount of student loan debt, with a median amount of $30,000. Younger millennials rank second with a median amount of $21,000. However, younger millennials are the most likely to have student loan debt, with 47 percent indicating that they carry some amount of student loan debt, while only 42 percent of older millennials and 27 percent of Gen Xers report student loan debt. Younger and older boomers also report carrying student loan debt but a lower amount, 10 and 4 percent respectively. Younger millennials were the most likely to say saving for a down payment was the most difficult task in the home process, 26 percent. Among them, student loan debt delayed their home purchase (61 percent); however, they indicated that this particular debt only delayed them a median of two years − the shortest delay of all generations. "These buyers are the most likely to receive some or all of their down payment as a gift from family or friends, usually their parents," says Yun. "This could explain why their debt is not holding them back from homeownership as long as other generations, who are less likely to receive down payment assistance." Homebuyer household compositions shift from married couples While the majority of buyers in all age groups are married couples, single buyers and unmarried couples continue to make a mark on the real estate market. Single females accounted for 25 percent of all younger boomers and silent generation buyers. "Many of these buyers are entering the market after a divorce, which is the case for younger boomers, or the death of a spouse in the case of those in the silent generation," says Yun. While only 8 percent of buyers as a whole were unmarried couples, they accounted for 20 percent of all younger millennial homebuyers, compared to 13 percent for older millennials, 8 percent for Gen Xers, 4 percent for both younger and older boomers and 3 percent for the silent generation. A majority of buyers and sellers work with a real estate agent, regardless of age. Buyers and sellers across all age groups continue to seek the assistance of a real estate agent when buying and selling a home. At 92 percent, younger millennials were the most likely to purchase a home through a real estate agent. "Help understanding the buying process" was cited as the top benefit younger millennials said their agent provided (87 percent). Across all generations, 87 percent of all buyers purchased their home through a real estate agent. Gen Xers were the largest group of sellers, accounting for one-quarter of all sellers. They were also most likely to have wanted to sell earlier but could not because their home was worth less than their mortgage; 15 percent reported they were in this situation. Ninety-two percent of all sellers used an agent during their home selling process, with older millennials and Gen Xers most likely to have used a full-service agent who offered a broad range of services and managed most aspects of the sale. "Consumers of all ages understand that working with a Realtor® is the advantage they need to compete in this fast-moving, constantly evolving real estate market," said NAR President John Smaby, a second-generation Realtor® from Edina, Minnesota and broker at Edina Realty. "Buying a home is an exciting, complicated and sometimes daunting process, and Realtors® have the knowledge and expertise to guide buyers and sellers through this experience." NAR mailed a 129-question survey in July 2018 using a random sample weighted to be representative of sales on a geographic basis to 155,250 recent homebuyers. Respondents had the option to fill out the survey via hard copy or online; the online survey was available in English and Spanish. A total of 7,191 responses were received from primary residence buyers. After accounting for undeliverable questionnaires, the survey had an adjusted response rate of 5.6 percent. The sample at the 95 percent confidence level has a confidence interval of plus-or-minus 1.10 percent. The recent homebuyers had to have purchased a home between July 2017 and June 2018. All information is characteristic of the 12-month period ending in June 2018 with the exception of income data, which are for 2017. The National Association of Realtors® is America's largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.
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Millennials Now Taking on More Mortgages than Any Other Generation
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Homes.com Study: Romantic Breakups Tie with Joblessness in Triggering 'Boomerang' Behavior
NORFOLK, VA (Feb. 04, 2019) – While you're preparing this year's passionate, you're-the-best-thing-that-ever-happened-to-me Valentine's Day tribute for your significant other, here's a sobering thought: One in five adults who return home to live with their parents do so because of a broken heart. According to a Homes.com survey of nearly 1,100 members of the so-called "Boomerang Generation" and their parents, those that return to the nest due to a divorce or partner breakup is roughly the same percentage as those who return because they're out of work. In fact, the collapse of romantic relationships is the #1 move-back-home catalyst for Boomerang-ers ages 26-40 and the #2 incentive overall. More specifically, the survey revealed that: Love gone wrong is the primary reason for cohabiting with Mom and Dad for 33% of 26-30-year-old, 37% of 31-35-year-old and 24% of 36-40-year-old Boomerang-ers, outstripping all other considerations by as many as 14 points. Saving money for a home purchase or other major investment is the #1 motivation cited by Boomerang-ers in the 20-25 year-old cohort, while the need to care for aging parents tops the list for those 41 and older. Joblessness and debt rank just #3 and #4 overall as reasons to rejoin parents, even among 20-25-year-olds. Just 18% of Boomerang-ers in that age group return home because they lost or can't find a job, and 11% because of student loan or other debt. The survey also provides intriguing insights into Boomerang-ers' ages, living quarters, sources of conflict, financial arrangements, and overall rapport with their parental roommates. Among the findings: 16% of Boomerang-ers are 31 and older, with roughly half of this group returning home after living elsewhere for 11 years or more. 45% live in their childhood bedrooms, with the rest having been displaced either by choice or space limitations. 26% live in a guest bedroom, 12% in the basement, 5% in a guest house, 4% in the living room and 2% in the garage. Privacy and noise issues cause the most friction, followed by space constraints, clashes over money, and political disagreements. General tension is also common, with more than one-third reporting "good days and bad days," constant conflict, or difficult relationships dating back to childhood. 25% pay rent to their parents when they move back home, as reported by both parents and children. This is roughly the same across all age groups. The two sides disagree about other aspects of the financial arrangement, suggesting that either parents exaggerate their support or children minimize it. For example, 12% of parents claim they cover all of their child's expenses, but only 5% of Boomerang-ers themselves say their parents foot the entire bill. Similarly, 35% of parents say that each side pays its own bills, but 45% of children make that claim. Parents are generally supportive. Only 13% discourage adult children from returning home to live, and 77% place no time limit on the arrangement. The majority also report a relatively smooth relationship, with 58% of parents and 68% of children saying they get along well or "hardly know they're there." More information about the survey, including charts and graphs detailing key results, can be found at www.blog.homes.com. About Homes.com Homes.com offers today's demanding homebuyers, renters and those somewhere in between a simply smarter home search. With features like Homes.com Match, HomeShare and Snap & Search, homeshoppers now have a more personalized and conversational way to search for their next home. Since its launch over 25 years ago, Homes.com offers real estate professionals brand and property advertising, search engine marketing and instant response lead generation to help them succeed online. For more information, visit Homes.com.
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Owning a Home Could Help You Get a Date with That Special Someone
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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.
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Generation Z Needs to Start Saving $304 a Month Now to Buy a Home By Age 30
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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.
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Number of Homes for Sale Is Up, But Fewer Homes Are Affordable to Middle Class Buyers
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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.
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Homeownership Part of American Dream; Housing Costs Deterrent for Non-Owners
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Renting a Home More Affordable than Buying in 59 Percent of U.S. Housing Markets
Home Prices Outpacing Wages in 80 Percent of the U.S. Housing Markets IRVINE, Calif. – Jan. 10, 2019 — ATTOM Data Solutions, curator of the nation's premier property database, today released its 2019 Rental Affordability Report, which shows that renting a three-bedroom property is more affordable than buying a median-priced home in 442 of 755 U.S. counties analyzed for the report — 59 percent. The analysis incorporated recently released fair market rent data for 2019 from the U.S. Department of Housing and Urban Development, wage data from the Bureau of Labor Statistics along with public record sales deed data from ATTOM Data Solutions in 755 U.S. counties with sufficient home sales data (see full methodology below). "With rental affordability outpacing home affordability in the majority of U.S. housing markets, and home prices rising faster than rental rates, the American dream of owning a home, may be just that — a dream, "said Jennifer von Pohlmann, director of content and PR at ATTOM Data Solutions. "With home price appreciation increasing annually at an average of 6.7 percent in those counties analyzed for this report and rental rates increasing an average of 3.5 percent, coupled with the fact that home prices are outpacing wages in 80 percent of the counties, renting a home is clearly becoming the more attractive option in this volatile housing market." Renting more affordable than buying in nation's most populated counties Renting is more affordable than buying a home in the nation's 18 most populated counties and in 37 of 40 counties with a population of 1 million or more (93 percent) — including Los Angeles County, California; Cook County (Chicago), Illinois; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; and San Diego County, California. Other markets with a population of more than 1 million where it is more affordable to rent than to buy a home included counties in Miami, New York City, Seattle, Las Vegas, San Jose, San Francisco and Boston. Among the 40 U.S. counties analyzed in the report with a population of 1 million or more, the three where it is more affordable to buy a home than rent were Wayne County (Detroit), Michigan; Philadelphia County, Pennsylvania; and Cuyahoga County (Cleveland), Ohio. Buy or Rent in 2019 Heat Map Least affordable rental markets in Northern California, Hawaii, D.C. The report shows that renting a three-bedroom property requires an average of 38.0 percent of weekly wages across the 755 counties analyzed for the report. The least affordable markets for renting are Santa Cruz County, California (81.7 percent of average wages to rent); Honolulu County, Hawaii (74.4 percent); Spotsylvania County, Virginia (73.0 percent); Maui County, Hawaii (69.5 percent); San Benito County, California (68.6 percent); Monroe County, Florida (67.3 percent); Sonoma County (Santa Rosa area), California (66.0 percent); Marin County (San Francisco area), California (65.6 percent); and Kings County, New York (63.7 percent). Most affordable rental markets in Ohio, North Carolina, Wisconsin, Pennsylvania The most affordable markets for renting are Roane County (Knoxville area), Tennessee (19.7 percent of average wages to rent); Peoria County, Illinois (23.8 percent); Mcminn County (Athens), Tennessee (23.8 percent); Green County (Dayton), Ohio (24.2 percent); and Rhea County (Dayton area), Ohio (24.6 percent). Among counties with a population of 1 million or more, those most affordable for renting are Allegheny County (Pittsburgh), Pennsylvania (25.1 percent); Cuyahoga County (Cleveland), Ohio (25.6 percent); Saint Louis County, Missouri (26.4 percent); Oakland County (Detroit area), Michigan (26.7 percent); and Wayne County (Detroit), Michigan (27.7 percent). Rent growth outpacing wage growth in 52 percent of markets Average fair market rents rose faster than average weekly wages in 394 of the 755 counties analyzed in the report (52 percent), including Los Angeles County, California; Cook County (Chicago), Illinois; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; and San Diego County, California. Average weekly wages rose faster than average fair market rents in 361 of the 755 counties analyzed in the report (48 percent), including Kings County (Brooklyn), New York; Queens County, New York; Clark County (Las Vegas), Nevada; Tarrant County (Dallas-Fort Worth), Texas; Santa Clara (San Jose), California; Broward County (Miami), Florida; and Alameda (San Francisco), California. Home prices rising faster than wages in 80 percent of markets Median home prices rose faster than average weekly wages in 601 of the 755 counties analyzed in the report (80 percent), including Los Angeles County, California; Cook County (Chicago), Illinois; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; San Diego County, California; Orange County, California; and Miami-Dade County, Florida. Average weekly wages rose faster than median home prices in 154 of the 755 counties analyzed in the report (20 percent), including Kings County (Brooklyn), New York; Queens County, New York; King County (Seattle), Washington; Suffolk County, New York; and Bronx County, New York. Home prices rising faster than rents in 70 percent of markets Median home prices rose faster than average fair market rents in 531 of the 755 counties analyzed in the report, including Cook County (Chicago), Illinois; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; Kings County (Brooklyn), New York; Queens County, New York; and Riverside County, California. Average fair market rents rose faster than median home prices in 224 of the 755 counties analyzed in the report (30 percent), including Los Angeles County, California; San Diego County, California; Orange County, California; Miami-Dade County, Florida; Dallas County, Texas; and Kings County (Seattle), Washington. About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, APIs, market trends, marketing lists, match & append and more.
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Women, Millennials, and Hispanics Will Shape the Future of Housing
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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.
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Redfin Predicts 2019 Housing Market Will Be the Coolest in Years
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U.S. Home Affordability Drops to More Than 10-Year Low in Q4 2018
But Affordability Improves From Previous Quarter in 58 Percent of Local Housing Markets; Wage Growth Outpacing Home Price Growth in 22 Percent of Markets, Including San Diego, Brooklyn, Seattle, San Jose and Manhattan IRVINE, Calif. – Dec. 20, 2018 — ATTOM Data Solutions, curator of the nation's premier property database, today released its Q4 2018 U.S. Home Affordability Report, which shows that the U.S. median home price in the fourth quarter was at the least affordable level since Q3 2008 — a more than 10-year low. The report calculates an affordability index based on percentage of income needed to buy a median-priced home relative to historic averages, with an index above 100 indicating median home prices are more affordable than the historic average, and an index below 100 indicating median home prices are less affordable than the historic average. (See full methodology below.) Nationwide, the Q4 2018 home affordability index of 91 was down from an index of 94 in the previous quarter and an index of 106 in Q4 2017 to the lowest level since Q3 2008, when the index was 87. Among 469 U.S. counties analyzed in the report, 357 (76 percent) posted a Q4 2018 affordability index below 100, meaning homes were less affordable than the long-term affordability averages for the county. That was down from a 10-year high of 78 percent of counties posting an affordability index below 100 in Q3 2018. "While poor home affordability continues to cloud the U.S. housing market, there are silver linings in the local data as home price appreciation falls more in line with wage growth," said Daren Blomquist, senior vice president at ATTOM Data Solutions. "Affordability improved from the previous quarter in more than half of all local markets, and one in five local markets saw annual wage growth outpace annual home price appreciation, including high-priced areas such as San Diego, Brooklyn and Seattle." Q4 2018 Home Price Appreciation & Wage Growth Heat Map Home affordability improves from previous quarter in 58 percent of local markets Counter to the national trend, home affordability improved from the previous quarter in 272 of the 469 counties analyzed in the report (58 percent), including Cook County (Chicago), Illinois; Harris County (Houston), Texas; San Diego County, California; Orange County, California; and Miami-Dade County, Florida. Home affordability worsened compared to the previous quarter in 197 of the 469 counties analyzed in the report (42 percent), including Los Angeles County, California; Maricopa County (Phoenix), Arizona; Riverside County, California; San Bernardino County, California; and Clark County (Las Vegas), Nevada. Wages rising faster than home prices in 22 percent of markets Nationwide the median home sales price in Q4 2018 was $241,250, up 9 percent from a year ago, while the annualized average weekly wage of $56,381 was up 3 percent from a year ago. Annual home price appreciation in Q4 2018 outpaced annual average wage growth in 366 of the 469 counties analyzed in the report (78 percent), including Los Angeles County, California; Cook County (Chicago), Illinois; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; and Orange County, California. Counter to the national trend, annual average wage growth outpaced annual home price appreciation in 103 of the 469 counties analyzed in the report (22 percent), including San Diego County, California; Kings County (Brooklyn), New York; King County (Seattle), Washington; Santa Clara County (San Jose), California; and New York County (Manhattan), New York. Highest share of income needed to buy a home in Brooklyn and Bay Area Nationwide, buying a median-priced home in Q4 2018 would require 35.0 percent of an average wage earner's income, above the historical average of 32.0 percent. Counties with the highest share of wages needed to buy a median priced home in Q4 2018 were Kings County (Brooklyn), New York (128.8 percent); Marin County, California (124.1 percent); Santa Cruz County, California (118.2 percent); Monterey County, California (96.9 percent); and San Luis Obispo County, California (94.4 percent). Counties with the lowest share of wages needed to buy a median-priced home in Q4 2018 were Baltimore City, Maryland (13.1 percent); Bibb County (Macon), Georgia (13.5 percent); Clayton County, Georgia (15.5 percent); Peoria County, Illinois (15.7 percent); and Wayne County (Detroit), Michigan (15.9 percent). Buying a home requires income of $100,000 or more in 15 percent of local markets Buying a median-priced home required more than $100,000 in annual income (assuming 3 percent down and a maximum front-end debt-to-income ratio of 28 percent) in 70 of the 469 counties analyzed in the report, led by New York County (Manhattan), New York ($408,977 to buy); San Francisco County, California ($375,491 to buy); San Mateo County, California ($368,242 to buy); Marin County, California ($315,524 to buy); and Santa Clara County (San Jose), California ($308,178 to buy. About ATTOM Data Solutions ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, APIs, market trends, marketing lists, match & append and more.
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Leading iBuyers Selling Nearly One in 10 Homes to Institutional Investors According to New ATTOM Data Solutions Analysis
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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®.
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Redfin Report: These 8 Inland Housing Markets are Heating Up as the Coasts Cool
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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.
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2019 Forecast: Existing-Home Sales to Stabilize and Price Growth to Continue
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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®.
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Automated Cars, Micro-Mobility to Impact the Future of Transportation, Say Realtors
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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®.
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