A home’s price isn’t the only factor to consider when calculating the cost of a home. Things like mortgage rates, potential maintenance and upkeep, property taxes, and insurance are all part of the equation. However, the listed price is still the main factor, and it’s the easiest to measure. Because of this, prospective homebuyers are always thinking about where home prices are headed. New numbers from ATTOM Data Solutions offer homebuyers some good news. According to their Q3 2018 U.S. Home Sales Report, home prices only rose 1 percent in the third quarter and are now up 4.8 percent from last year. That’s the slowest price appreciation since 2016. The report found that price increases slowed in 74 of the 150 metro areas analyzed, including Chicago, Los Angeles, Dallas-Fort Worth, Houston, and Miami. Despite the encouraging news, however, not all housing markets are cooling down. In fact, some metros continue to see double-digit gains year-over-year, while others are seeing as little as 3% or lower price gains. Housing markets differ vastly from metro to metro, so it’s best to research the area. More here.
During the spring and summer, homes were selling fast. So fast that the typical home was on the market less than a month. And while home buyers should still expect desirable homes to go quickly, there may be some relief in sight. New numbers from the National Association of Realtors show that the majority of homes are now on the market a little more than a month. Properties typically sold in 32 days in September, an improvement from August when homes moved in just 29 days. Lawrence Yun, NAR’s chief economist, says a trend may be developing. “There is a clear shift in the market with another month of rising housing inventory on a year over year basis, though seasonal factors are leading to a third straight month of declining inventory,” Yun said. “Homes will take a bit longer to sell compared to the super-heated fast pace seen earlier this year.” At the current sales pace, there is a 4.4-month supply of available homes for sale. A 6-month supply is generally considered a healthy market. More here.
Affordability is always a top concern for people thinking about buying a house. Of course, there are other factors that are important when deciding to move or not. But what you can or can’t afford is the biggest. After all, if you don’t have enough for a down payment or couldn’t keep up with the mortgage on a new place, it doesn’t really matter how close to the office it is or in what school district. And affordability is always changing. A new report from the National Association of Realtors’ consumer website is good news for prospective home buyers. The report shows that the number of homes for sale saw its largest year-over-year gain in five years. This is important because in today’s market, home price increases are being driven by the low inventory of for-sale homes. In other words, since there are more home buyers than homes, sellers can demand a higher price. As more homes become available, home buyers will have more choices and price increases will begin to slow. The fact that inventory is up 8 percent over the year before and is showing signs of additional gains means there may be relief on the way for […]
Naturally, potential home buyers become more concerned about affordability conditions as prices rise. And since the past few years have seen that happen, there’s been increasing concern about whether or not now is a good time to buy a house. That’s not to say there hasn’t been demand for homes. In fact, there are plenty of interested home buyers and not enough homes to accommodate them, which is why prices have been rising in the first place. But recently, there’s been more data suggesting that home prices are beginning to soften. In fact, one recent report shows that 26.6 percent of homes listed for sale in September dropped their price, which is a nearly 5 percent increase from the same time last year. That’s good news for home buyers, as is the fact that price drops have been showing year-over-year improvement since the end of March. Affordability may, once again, be moving in a more balanced direction and one that benefits home buyers. More here.
When it comes to real estate, most people know that location is key. Market conditions differ from one neighborhood to the next. But location isn’t the only thing affecting the conditions you’ll encounter when shopping for a house to buy. Your price range will also have something to do with it. Luxury homes aren’t simply more expensive; they’re in a completely different market than regular homes. The National Association of Realtors’ consumer website recently released its 2018 Luxury Home Index and the results show that luxury home buyers face a far different market than home buyers who are looking for a more affordable home. That’s because, while overall home price increases are showing signs of slowing down, the luxury home market is gaining speed. In fact, according to the index, there are a rising number of areas with double-digit price growth from the same time last year. In Sarasota, the nation’s fastest-growing luxury market, prices are up 21 percent from last year. Another difference between the overall market and the luxury market is the fact that higher-end homes stay on the market longer. Luxury homes in the 90 counties analyzed were on the market a median of 121 days. More here.
Choosing a house to buy is an important decision. After all, you’re committing a lot of money and several years of your life to a particular property. And so, home buyers tend to know what they want, whether it be a large kitchen, an appealing outdoor space, or an ample amount of storage. However, the large majority of home buyers spend too little time looking at the neighborhood of their potential home. And, make no mistake, the neighborhood you move to will play an essential role in how much you enjoy your new home. Surrounding amenities, schools, and safety are just a few of the factors that can lead to a case of buyer’s remorse. And, according to a recent survey, there are lot of home buyers who’ve experienced just that. In fact, 36 percent of respondents said they’d have chosen a different neighborhood had they known more about the one they moved to. The reason this is so common is because most home buyers do very little neighborhood research before purchasing their home. For example, less than half of recent home buyers searched photos of different parts of the neighborhood, visited hot spots, researched police reports, or took a […]
A new Harvard Business School paper uses Yelp data to find that the entry of each Starbucks into a ZIP code is associated with a 0.5 percent increase in housing prices within a year. “The presence of a Starbucks is far less important than whether the community has people who consume Starbucks,” the paper found. The economists say the study is the first of its kind to track gentrification using a platform such as Yelp, a potential new tool for policymakers hoping to monitor housing prices. Each new Starbucks boosts the value of housing prices in a neighborhood. And not by an insignificant amount. This data point is revealed in a broader study on gentrification by the Harvard Business School that relied on information from Yelp, the online restaurant review platform, and the United States Census. A new Starbucks introduced into a ZIP code is associated with a 0.5 percent increase in housing prices within a year, the paper found. It’s not clear whether housing prices are rising due to the Starbucks opening itself or simply because more affluent customers that would go to the coffee chain have moved into the area. Harvard economics professor Edward Glaeser said Yelp data […]
Mortgages originated to finance apartments and other income-producing properties managed to generate a small year-to-year increase in the first half, even though there are declines in some parts of the market. A 2% year-to-date increase puts commercial and multifamily mortgage originations on track to at least match 2017’s volume, in line with the Mortgage Bankers Association’s projections. “Commercial and multifamily real estate borrowing and lending continue to track with last year’s level,” Jamie Woodwell, the MBA’s vice president for commercial real estate research, said in a press release. “Investor demand for multifamily properties and hotels are helping push originations higher.” Hotel originations are up 31% year-to-date and multifamily loans are up 17%. Fannie Mae and Freddie Mac are supporting multifamily with a 14% increase in activity over last year through the first half. While certain multifamily submarkets could experience moderation, multifamily overall is expected to continue to see strong demand through year-end and into early 2019, according to a separate midyear forecast by Freddie Mac. Industrial originations are on par with last year, according to the MBA. But there are declines in the following sectors: office (3%), retail (11%) and health care (30%). Like the government-sponsored enterprises, life insurance companies are […]
New home sales broke out of the up-one-month, down the next pattern they have adopted since March, and not in a good way. The Census Bureau and Department of Housing and Urban Development reported that sales of newly constructed single-family homes retreated further in July, declining 1.7 percent on top of a 5.3 percent loss in June. Sales during the month were estimated at a seasonally adjusted rate of 627,000 compared to a revised (from 631,000) pace of 638,000 units in June. Despite the decline, sales are still a healthy 12.8 percent higher than in July 2017. That rate was estimated at 556,000 units. Analysts polled by Econoday had been looking for a sales rate between 630,000 and 660,000. The consensus was 649,000 units. On a non-seasonally adjusted basis there were 53,000 homes sold. The June estimate was 58,000 and there were 48,000 units sold in July 2017. Through the end of July sales have totaled 401,000 compared to 374,000 during the same period in 2017. Prices reversed direction from the previous two month when both median and average prices were lower than the same month in 2017. The median price of a home sold during July was $328,700 compared to $322,900 12 months […]
Published 8:30 AM ET Wed, 15 Aug 2018 Reuters U.S. retail sales rose more than expected in July as households boosted purchases of motor vehicles and clothing, suggesting the economy remained strong early in the third quarter. The Commerce Department said on Wednesday retail sales increased 0.5 percent last month. But data for June was revised lower to show sales gaining 0.2 percent instead of the previously reported 0.5 percent rise. Economists polled by Reuters had forecast retail sales nudging up 0.1 percent in July. Retail sales in July increased 6.4 percent from a year ago. Excluding automobiles, gasoline, building materials and food services, retail sales advanced 0.5 percent last month after a downwardly revised 0.1 percent dip in June. These so-called core retail sales correspond most closely with the consumer spending component of gross domestic product. Core retail sales were previously reported to have been unchanged in June. Consumer spending is being supported by a tightening labor market, which is steadily pushing up wages. Tax cuts and higher savings are also underpinning consumption. July’s increase in core retail sales suggested the economy started the third quarter on solid footing after logging its best performance in nearly four years in the second […]