Portland Home Values Rise 15 Percent

San Francisco and San Jose are no longer among the top appreciating U.S. housing markets

By Jeff Sorg, OnlineEd Blog

housing graph 3(September 22, 2016) – U.S. home values are up 5 percent over the past year, to a Zillow Home Value Index (ZHVI) of $188,100, according to the August Zillow® Real Estate Market Reports.

Home values have been growing at a 5 percent annual rate since the beginning of the year. The most recent income data released by the Censusiii shows incomes rising by 5.2 percent, which is good news for those looking to break into the housing market. For the first time since 2011, incomes have been appreciating faster than home values.

Inventory is beginning to pick back up from the lows experienced at the beginning of the year, but there are still 5 percent fewer homes for sale than a year ago. Going forward, as more homes start to become available, home value growth may ease. Zillow predicts home value growth to slow down to a 2.7 percent appreciation rate by this time next year.

For the sixth straight month, Portland, Dallas, Seattle and Denver reported the highest year-over-year home value appreciation among the 35 largest U.S. metros, with home value growth in the double-digits. In Portland, home values rose almost 15 percent, to a median home value of $338,900.

While home values continue to rise in tech-centers San Francisco and San Jose, they’ve slowed considerably since last year. Median home values in both markets are up about 6 percent over the past year, compared to over 12 percent in 2015. No longer are these two metros among the top appreciating U.S. housing markets.

“The housing market is starting to smooth out ever-so-slightly, as the peak home shopping season winds down,” said Zillow Chief Economist Dr. Svenja Gudell. “This is good news for frenzied buyers tired of tight inventory, rapidly rising home prices and intense competition. Inventory, while still down nationwide and in most areas, is actually starting to rise in a handful of markets, including the Bay Area, Texas and parts of the Southwest. Rent growth has slowed considerably from just a few years ago, giving renters a chance to save enough to buy a home. But make no mistake, it’s still tough out there for buyers, especially in Western markets like Seattle, Denver and Portland that have strong job growth. Things won’t switch from a sellers’ market to a buyers’ market overnight, but conditions are starting to improve.”

Rents continue to rise, though not as quickly as home values. Last year at this time, rents were up over 6 percent, but are now appreciating by just 1.7 percent, to a Zillow Rent Index (ZRI) of $1,405.

Of the 35 largest U.S. metros, Seattle, Portland, Sacramento and San Diego reported the highest year-over-year rent appreciation. Rents in Seattle have seen the fastest annual appreciation for the third month in a row, up almost 10 percent over the past year to a median of $2,067 per month.

In Portland, the median rent rose to $1,777 per month, up 7 percent over the past year. In Sacramento and San Diego, rents are up 5.5 and 5 percent, respectively.

 

Metropolitan Area Zillow Home

Value Index (ZHVI)

Year-Over-Year ZHVI Change Zillow Rent Index (ZRI) Year-Over-Year ZRI Change Year-Over-Year Inventory Change
United States $             188,100 5.1% $         1,405 1.7% -5.4%
New York/Northern New Jersey $             389,000 3.3% $         2,399 2.5% -11.7%
Los Angeles-Long Beach-Anaheim, CA $             574,600 5.2% $         2,593 4.7% 0.6%
Chicago, IL $             201,300 4.5% $         1,643 -0.2% -11.5%
Dallas-Fort Worth, TX $             193,900 12.0% $         1,543 3.6% -20.6%
Philadelphia, PA $             210,000 2.9% $         1,578 1.3% -13.3%
Houston, TX $             174,000 7.1% $         1,576 0.5% 7.4%
Washington, DC $             370,100 2.1% $         2,121 0.5% -15.0%
Miami-Fort

Lauderdale, FL

$             239,300 9.0% $         1,885 4.2% 14.1%
Atlanta, GA $             168,400 7.5% $         1,314 3.5% -8.6%
Boston, MA $             398,200 5.6% $         2,310 3.9% -26.4%
San Francisco, CA $             809,500 6.0% $         3,406 4.8% 1.8%
Detroit, MI $             129,600 6.8% $         1,171 2.5% -17.8%
Riverside, CA $             313,400 7.0% $         1,736 3.4% -0.7%
Phoenix, AZ $             223,100 7.5% $         1,297 4.2% 8.3%
Seattle, WA $             397,800 11.3% $         2,067 9.7% -6.0%
Minneapolis-St Paul,

MN

$             229,300 6.2% $         1,540 2.5% -2.7%
San Diego, CA $             516,200 5.2% $         2,427 4.9% 13.0%
St. Louis, MO $             144,000 5.3% $         1,128 0.5% -13.2%
Tampa, FL $             170,500 9.8% $         1,332 3.3% -10.1%
Baltimore, MD $             252,700 2.5% $         1,731 0.6% -10.4%
Denver, CO $             341,400 10.7% $         2,013 4.1% 7.4%
Pittsburgh, PA $             131,200 4.6% $         1,100 -0.5% 3.7%
Portland, OR $             338,900 14.8% $         1,777 7.4% -12.4%
Charlotte, NC $             164,400 7.1% $         1,237 1.7% -10.3%
Sacramento, CA $             345,100 7.1% $         1,681 5.5% -6.4%
San Antonio, TX $             153,600 6.4% $         1,317 0.9% 25.2%
Orlando, FL $             189,000 8.1% $         1,372 2.8% -10.8%
Cincinnati, OH $             145,100 4.6% $         1,239 0.2% -15.7%
Cleveland, OH $             129,000 3.4% $         1,146 1.3% -12.7%
Kansas City, MO $             150,700 5.2% $         1,235 2.3% -23.6%
Las Vegas, NV $             206,800 7.8% $         1,237 2.0% 32.7%
Columbus, OH $             157,000 3.0% $         1,293 2.0% -16.6%
Indianapolis, IN $             131,700 -1.6% $         1,196 0.4% -24.7%
San Jose, CA $             945,700 5.8% $         3,517 3.8% 12.9%
Austin, TX $             255,900 8.6% $         1,713 2.0% 11.1%

[Source: Zillow®]

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Zillow® is a registered trademark of Zillow, Inc.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers, visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

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Appraisals Continue to Fall Below Homeowner Value Perceptions

The trend of owners overestimating their home’s value when refinancing continued in August

By Jeff Sorg, OnlineEd Blog

(September 20, 2016) –  According to a recent report by Quicken Loans, appraisals across the country were an average of 1.56 percent lower than what refinancing homeowners expected in August, based on the company’s national Home Price Perception Index (HPPI).

The Quicken Loans Home Value Index (HVI), which measures home value changes exclusively through appraisals, moved higher yet in August. Home values increased 1.73 percent over the previous month while jumping 8.13 percent higher than August 2015, according to the national HVI.

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For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers, visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

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Oh, Happy Day! Speckled Granite and Dark Wood Headed Out of Style

Tuxedo Cabinets, Hidden Appliances and Wood Paneling Among Top Kitchen Trends for 2016

By Jeff Sorg, OnlineEd Blog

canstockphoto22337149dark-wood-kitchen(September 16, 2016) – Tuxedo or two-toned painted cabinets, hidden appliances and wood paneling, like shiplap, are the biggest kitchen trends for 2016, according to the latest Zillow Digs® Home Trend Forecast, a one-of-a-kind report combining data from a survey of interior design experts and an analysis of popular photos on Zillow Digs.

“Homeowners today want an open and thoughtfully designed kitchen that blends seamlessly with the rest of the home’s design aesthetic,” says Kerrie Kelly, Zillow Digs home design expert. “From hidden appliances to beautifully painted cabinets in complementing colors, homeowners want their kitchen to be stylish enough for entertaining, yet welcoming and functional for everyday use.”

Top Kitchen Trends for 2016:

  1. Tuxedo Kitchen Cabinets
    Long gone are the days of perfectly matching cabinetry. Homeowners are starting to take bigger design risks in the kitchen. Expect to see a rise in tuxedo, or two-toned painted cabinets where the top and bottom doors are painted in complimentary colors such as navy blue and soft gray or beige.
  2. Hidden Appliances
    While stainless steel appliances are still a popular choice, they can feel cold and industrial at times. Over the next year, experts predict a rise in hidden appliance solutions, such as microwave drawers or covered refrigerators, for a kitchen aesthetic that’s more approachable and comfortable.
  3. Wood Paneling
    It’s no secret that homeowners love farmhouse kitchens. Experts predict wood paneling or shiplap, often painted in white, to start popping up in anything from backsplashes to ceilings, bringing a comfortable yet chic design aesthetic to the kitchen.
  4. Mixed Hardware Finishes
    Homeowners are becoming comfortable using hardware finishes other than stainless steel, and are even mixing and matching metals for a more eclectic look. From gold to rose gold or black, beautiful hardware accents “look like jewelry for the kitchen,” says design expert, Jamie Beckwith of Beckwith Interiors.

Fads to Forget:

  1. Speckled Granite
    Homeowners are no longer limited to granite, which can stain and can be hard to maintain. Brown and tan speckled granite, specifically, is phasing out as more countertop materials and styles become available. Quartz, marble and even butcher block are rising in popularity.
  2. Short Cabinets
    Tall cabinetry gives the illusion that a kitchen is bigger and brighter, so experts predict homeowners to replace shorter top row cabinets with ones that are flush with the ceiling.
  3. Dark Brown Wood and Paint Colors
    Light and bright kitchens will only continue to pick up steam over the next year, meaning dark or cherry wood cabinets will continue to fade out of style.

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Zillow® is a Registered Mark of Zillow, Inc. Visit Zillow.com.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers, visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

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Categories: Mortgage, Real Estate Tags: , ,

CFPB Fines Wells Fargo $100 Million for Opening Covert Credit Card Accounts

Spurred by sales targets and compensation incentives, employees boosted sales figures by covertly opening accounts and funding them by transferring funds without consumer consent

By Jeff Sorg, OnlineEd Blog

(September 8, 2016) – In a press release today, the Consumer Financial Protection Bureau (CFPB) announced that is has fined Wells Fargo Bank, N.A. $100 million for the widespread illegal practice of secretly opening unauthorized deposit and credit card accounts. Spurred by sales targets and compensation incentives, employees boosted sales figures by covertly opening accounts and funding them by transferring funds from consumers’ authorized accounts without their knowledge or consent, often racking up fees or other charges. According to the bank’s own analysis, employees opened more than two million deposit and credit card accounts that may not have been authorized by consumers. Wells Fargo will pay full restitution to all victims and a $100 million fine to the CFPB’s Civil Penalty Fund. The bank will also pay an additional $35 million penalty to the Office of the Comptroller of the Currency, and another $50 million to the City and County of Los Angeles.

“Wells Fargo employees secretly opened unauthorized accounts to hit sales targets and receive bonuses,” said CFPB Director Richard Cordray. “Because of the severity of these violations, Wells Fargo is paying the largest penalty the CFPB has ever imposed. Today’s action should serve notice to the entire industry that financial incentive programs, if not monitored carefully, carry serious risks that can have serious legal consequences.”

According to today’s enforcement action, thousands of Wells Fargo employees illegally enrolled consumers in these products and services without their knowledge or consent in order to obtain financial compensation for meeting sales targets. The Dodd-Frank Wall Street Reform and Consumer Protection Act prohibits unfair, deceptive, and abusive acts and practices. Wells Fargo’s violations include:

  • Opening deposit accounts and transferring funds without authorization:According to the bank’s own analysis, employees opened roughly 1.5 million deposit accounts that may not have been authorized by consumers. Employees then transferred funds from consumers’ authorized accounts to temporarily fund the new, unauthorized accounts. This widespread practice gave the employees credit for opening the new accounts, allowing them to earn additional compensation and to meet the bank’s sales goals. Consumers, in turn, were sometimes harmed because the bank charged them for insufficient funds or overdraft fees because the money was not in their original accounts.
  • Applying for credit card accounts without authorization: According to the bank’s own analysis, Wells Fargo employees applied for roughly 565,000 credit card accounts that may not have been authorized by consumers. On those unauthorized credit cards, many consumers incurred annual fees, as well as associated finance or interest charges and other fees.
  • Issuing and activating debit cards without authorization: Wells Fargo employees requested and issued debit cards without consumers’ knowledge or consent, going so far as to create PINs without telling consumers.
  • Creating phony email addresses to enroll consumers in online-banking services: Wells Fargo employees created phony email addresses not belonging to consumers to enroll them in online-banking services without their knowledge or consent.

The full text of the CFPB’s Consent Order can be found at:http://files.consumerfinance.gov/f/documents/092016_cfpb_WFBconsentorder.pdf

[Source: CFPB press release]

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For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers, visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

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Categories: Mortgage, Real Estate Tags: , ,

Homeowners Confident About Current Market but Renters Worry

A majority of homeowners believe now is a good time to sell

By Jeff Sorg, OnlineEd Blog

canstockphoto5341747confidence level(September 2, 2016) – According to the latest Zillow® Housing Confidence Index, homeowners are feeling more confident that now is a good time to sell, but renters are feeling uncertain they’ll be able to afford to buy.

Just 38 percent of renters surveyed said now is a good time to buy a home, and 70 percent of homeowners said now is a good time to sell. This confidence among homeowners is on the rise, with the most confident homeowners concentrated in Western and Southwestern cities.

“The overall health of the housing market looks great at first glance, but dig a bit deeper you’ll find inequality between renters and homeowners,” said Zillow Chief Economist Dr. Svenja Gudell. “Even though the majority of homeowners are confident and believe now is a good time to sell, they’re holding off because they expect home values to continue to appreciate and want to ride the wave. They also don’t want to turn around and become buyers in a competitive market. On the flip side, renters aren’t nearly as confident as homeowners — they’re discouraged by the shrinking number of homes for sale and rapidly rising prices. As housing gets more and more expensive, these trends are not sustainable in the long-run, especially once mortgage rates start to rise.”

The semi-annual U.S. Housing Confidence Survey (HCS), sponsored by Zillow and conducted by Pulsenomics LLC, asks 10,000 renters and homeowners about the condition of their local real estate market, their expectations for home value growth and affordability in the future, and their views on homeownership.

Housing confidence among homeowners continues to exceed that of renters in each of the metro areas surveyed. This gap is smallest in Miami and largest in Seattle, which has the highest year-over-year rent appreciation of the 35 largest U.S. metros and rapidly rising home values, up 11 percent over the past year.

“During the past two years, housing confidence has increased in all but two of the metro areas that we study,” said Terry Loebs, the founder of Pulsenomics LLC. “Rising home equity levels, healthy housing market expectations among millennials, and resilient homeownership aspirations among minority groups have all been factors in the robust readings of overall U.S. housing confidence. However, within certain metro areas and market segments, key sentiment indicators have begun to fade. Our measure of housing market expectations among residents of the largest and most expensive U.S. cities has actually fallen this year, and within most metro areas, the anxieties of prospective home buyers continue to rise. These and other signals in the ZHCI data suggest that home price appreciation and housing confidence could weaken in the coming months.”

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For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers, visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

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Average Fixer-Upper Saves Buyers Just 8% For Renovations

canstockphoto29690433 fixer upperThe median fixer-upper would save buyers only $11,000

By Jeff Sorg, OnlineEd Blog

(September 1, 2016) – Fixer uppers are appealing to some who think they can make a sizeable savings or profit with a flip, but according to a recent report by Zillow Digs® the average 8% discount these buyers save on price might not even cover necessary renovation costs. The median fixer-upper would save buyers only $11,000 for renovations, the report says.

Zillow Digs analyzed nearly 70,000 listings for fixer-uppers from around the country to see how their list prices compared to their estimated values. If renovation costs exceed the home’s discount, then it may be more cost-effective to buy a similar home that doesn’t require renovations. Fixer-uppers were identified based on listing description keywords that signaled the home needs work, like “TLC,” “good bones” and “fixer-upper.”

“Fixer-uppers can be a great deal, and they allow buyers to incorporate their personal style into a home while renovating, but it’s still a good idea to do the math before making the leap,” says Svenja Gudell, Zillow chief economist. “While an 8 percent discount or $11,000 in upfront savings on a fixer-upper is certainly a good chunk of change, it likely won’t be enough to cover a kitchen remodel, let alone structural updates like a new roof or plumbing, which many of these properties may require.”

[Source: Zillow]

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Zillow and Zillow.com are registered trademarks of Zillow, Inc.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers, visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

Home Values Rise for 48th Straight Month – Portland, OR Tops List at 14.7%

 Portland, OR reported the highest year-over-year home value appreciation

By Jeff Sorg, OnlineEd Blog

rising housing prices 1(August 18, 2016) –  National home values appreciated for the 48th straight month this July to a Zillow Home Value Index (ZHVI) of $187,300, according to the Zillow® Real Estate Market Reports.

Home values are up 5 percent over the past year and have been consistently climbing since August 2012, but remain 4.7 percent below peak, which was hit in April 2007 when the median home value was $196,600.

Portland, Dallas, and Denver reported the highest year-over-year home value appreciation among the 35 largest metros across the country. In Portland, home values rose almost 15 percent to a median value of $334,900. Home values in Dallas and Denver appreciated 11.9 and 11.3 percent, respectively.

In notoriously expensive San Francisco, home values have been slowing since the beginning of the year. In January, home values were up almost 12 percent year-over-year and are now appreciating at about half that pace, up 6.6 percent over the past year.

“The consistent rise in home values that we’ve been seeing for the past four years masks a number of region-specific trends that have taken place over the past few months,” said Zillow Chief Economist Dr. Svenja Gudell. “In most areas, the market is being driven mainly by a strong labor market and tight supply, especially among entry-level homes that first-time buyers are after. But some markets – especially the red-hot Pacific Northwest – are adding more jobs and attracting more residents, putting the pressure on home values and rents. The Bay Area and Southern California are still growing at a faster pace than the nation as a whole, but growth rates have come back to earth a bit after several years of rapid growth. And markets in other regions, like the Northeast, keep steadily chugging along. All housing is local, and as the local economies in individual metros ebb and flow, housing will follow suit. More than at any time since the boom and bust, we’re seeing a housing market that is driven by local fundamentals, and not by national trends.”

Rents across the country rose 2 percent over the past year, to a Zillow Rent Index(ZRI) of $1,408 — this is the 47th straight month rents have appreciated.

Of the 35 largest U.S. metros, Seattle, Portland and San Francisco reported the highest year-over-year rent appreciation. In Seattle, rents rose almost 10 percent, to a median rent price of $2,052 per month, while rents in Portland rose just over 8 percent.

In San Francisco, the median rent price rose to $3,407 per month, the second highest of all U.S. metros, right after San Jose, CA. Rents in San Francisco appreciated 6 percent over the past year.

Metropolitan Area Zillow Home Value Index (ZHVI) Year-Over-Year ZHVI Change  Peak ZHVI Change from Peak Zillow Rent Index (ZRI) Year-Over-Year ZRI Change
United States $           187,300 5.1% $      196,600 -4.7% $         1,408 2.2%
New York/Northern New Jersey $           387,800 3.4% $      445,200 -12.9% $         2,411 3.2%
Los Angeles-Long Beach-Anaheim, CA $           572,400 5.3% $      604,000 -5.2% $         2,585 4.7%
Chicago, IL $           199,800 4.0% $      247,000 -19.1% $         1,645 0.3%
Dallas-Fort Worth, TX $           191,500 11.9% $      191,500 0.0% $         1,543 4.0%
Philadelphia, PA $           209,200 3.0% $      230,600 -9.3% $         1,582 2.0%
Houston, TX $           173,500 7.6% $      173,500 0.0% $         1,581 1.5%
Washington, DC $           368,600 1.7% $      427,600 -13.8% $         2,123 0.7%
Miami-Fort Lauderdale, FL $           237,300 9.3% $      305,100 -22.2% $         1,887 4.8%
Atlanta, GA $           167,300 7.5% $      174,500 -4.1% $         1,311 3.9%
Boston, MA $           396,300 5.8% $      396,300 0.0% $         2,308 4.5%
San Francisco, CA $           807,800 6.6% $      807,800 0.0% $         3,407 6.2%
Detroit, MI $           128,300 6.2% $      157,100 -18.3% $         1,175 2.8%
Riverside, CA $           311,700 7.1% $      403,900 -22.8% $         1,738 4.0%
Phoenix, AZ $           221,900 8.0% $      273,600 -18.9% $         1,298 4.8%
Seattle, WA $           394,600 11.3% $      394,600 0.0% $         2,052 9.9%
Minneapolis-St Paul, MN $           228,400 6.2% $      240,500 -5.0% $         1,541 3.0%
San Diego, CA $           513,600 5.4% $      543,700 -5.5% $         2,424 5.0%
St. Louis, MO $           143,100 5.0% $      158,900 -9.9% $         1,135 1.5%
Tampa, FL $           168,800 9.4% $      214,200 -21.2% $         1,332 3.7%
Baltimore, MD $           253,000 2.8% $      289,100 -12.5% $         1,735 1.0%
Denver, CO $           339,600 11.3% $      339,600 0.0% $         2,013 5.1%
Pittsburgh, PA $           131,000 4.7% $      131,000 0.0% $         1,113 1.8%

Portland, OR

$           334,900

14.7%

$      334,900

0.0%

$         1,772

8.2%

Charlotte, NC $           163,400 6.8% $      163,400 0.0% $         1,240 2.3%
Sacramento, CA $           343,000 7.0% $      420,800 -18.5% $         1,675 5.6%
San Antonio, TX $           152,900 6.6% $      152,900 0.0% $         1,318 1.5%
Orlando, FL $           187,500 7.8% $      256,200 -26.8% $         1,370 3.2%
Cincinnati, OH $           144,700 4.9% $      144,700 0.0% $         1,241 0.4%
Cleveland, OH $           128,800 3.5% $      145,400 -11.4% $         1,148 1.6%
Kansas City, MO $           150,000 5.2% $      159,500 -6.0% $         1,240 2.7%
Las Vegas, NV $           204,700 7.2% $      304,700 -32.8% $         1,238 2.6%
Columbus, OH $           156,900 3.6% $      156,900 0.0%

(Article source: Zillow®)

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Zillow® is a registered trademark of Zillow, Inc.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers, visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

July 2016 Housing Starts Climb 5.6% Over July 2015

New residential construction report for July 2016

By Jeff Sorg, OnlineEd Blog

housing graph 3(August 18, 2016) – The U.S. Census Bureau and the Department of Housing and Urban Development jointly announced the following new residential construction statistics for July 2016:

BUILDING PERMITS Privately-owned housing units authorized by building permits in July were at a seasonally adjusted annual rate of 1,152,000. This is 0.1 percent (±1.2%)* below the revised June rate of 1,153,000, but is 0.9 percent (±1.5%)* above the July 2015 estimate of 1,142,000. Single-family authorizations in July were at a rate of 711,000; this is 3.7 percent (±1.4%) below the revised June figure of 738,000. Authorizations of units in buildings with five units or more were at a rate of 411,000 in July.

HOUSING STARTS Privately-owned housing starts in July were at a seasonally adjusted annual rate of 1,211,000. This is 2.1 percent (±8.8%)* above the revised June estimate of 1,186,000 and is 5.6 percent (±14.7%)* above the July 2015 rate of 1,147,000. Single-family housing starts in July were at a rate of 770,000; this is 0.5 percent (±8.6%)* above the revised June figure of 766,000. The July rate for units in buildings with five units or more was 433,000.

HOUSING COMPLETIONS Privately-owned housing completions in July were at a seasonally adjusted annual rate of 1,026,000. This is 8.3 percent (±8.9%)* below the revised June estimate of 1,119,000, but is 3.2 percent (±11.2%)* above the July 2015 rate of 994,000. Single-family housing completions in July were at a rate of 743,000; this is 0.4 percent (±8.8%)* below the revised June rate of 746,000. The July rate for units in buildings with five units or more was 275,000

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All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

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States Urge Rule to Prevent Banks from Forcing Customers into Binding Arbitration

States Ask the CFPB to Protect Banking Consumers’ Access to Justice

By Jeff Sorg, OnlineEd Blog

canstockphoto7251937 arbitration clause(August 17, 2016) – –– Attorney General Karl A. Racine today joined his peers from 18 states in sending a letter to the Consumer Financial Protection Bureau (CFPB) urging the agency to adopt rules that would limit the use of arbitration clauses in consumer financial products and services contracts and increase transparency in the arbitration process overall. Use of these clauses can effectively prevent consumers from suing their bank or other financial institution over wrongdoing.

Many contracts required to purchase common consumer financial products, like credit cards and bank accounts, include these mandatory arbitration clauses. The clauses prevent consumers from joining class action lawsuits – making it more difficult for consumers to sue corporations, particularly if the individual amounts of money in dispute are relatively small. In March 2015, the CFPB released a study that showed that very few consumers ever bring – or think to bring – individual actions against their financial service providers either in court or arbitration.

“Consumers must have reasonable access to courts when they have been wronged by their bank,” Attorney General Racine said. “The ever-increasing use of binding arbitration agreements has severely reduced the ability of consumers to protect themselves by going to court. We are urging the CFPB to adopt these rules to provide much-needed oversight and help retain consumers’ access to the justice system.”

The letter was co-authored by Attorney General Racine and his counterparts in California, Massachusetts, and New York. The letter, joined by 15 other states, urges the CFPB to adopt rules that would protect consumers by preventing financial companies from including mandatory arbitration clauses that prohibit class action lawsuits. The proposed rules would also require financial companies that use arbitration clauses to submit data to the CFPB concerning arbitration claim filings and awards, enabling the CFPB to better monitor and evaluate the impact of arbitration clauses on consumers.

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For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers, visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

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Zillow Says Rising Sea Levels Threaten to Put 2 Million Homes Underwater

Sea level expected to rise six feet by 2100 endangering 2% of housing stock 

By Jeff Sorg, OnlineEd Blog

canstockphoto14640424 house floating(August 3, 2016) – Nearly 2 million U.S. homes would be lost if the oceans rise by six feet as scientists expect by the year 2100, according to a new Zillow® analysis. The endangered homes represent just under two percent of the national housing stock, and are worth a cumulative $882 billion.

New research published in the scientific journal Nature found that sea levels could rise six feet by the year 2100, mostly due to melting Antarctic ice sheets. This new estimate nearly doubles previous expectations for rising oceans.

Using data from the National Oceanic and Atmospheric Administration, Zillow identified which homes would be affected by the predicted six-foot rise in ocean levels.

More than half of all homes that would be lost are in Florida, and they account for nearly half of the lost housing value as well. In all, one in eight Florida homes would be lost. More than 9 percent of homes in Hawaii would be underwater; 81 percent of those are in the capital city of Honolulu. Thirty-six coastal cities would be entirely underwater, and nearly 300 cities would lose at least half their homes.

The at-risk homes along the waterfront are 58 percent more valuable than the average U.S. home. The biggest difference in home values is in Maine, where homes at the water’s edge are worth $436,798, more than three times the statewide median home value of $138,900. By contrast, homes at risk of rising oceans are less valuable than the typical home in Hawaii, Maryland, Washington, and Oregon.

“As we move through this century, homeowners will have to consider another factor when it comes to their homes – whether rising sea levels have any impact on them,” said Zillow Chief Economist Dr. Svenja Gudell. “It’s easy to think about how the ocean levels can affect the coasts in an abstract sense, but this analysis shows the real impact it will have on nearly two million homeowners – and most likely more by the time we reach 2100 – who could lose their homes.”

Among coastal states, Pennsylvania, Oregon and California have the lowest share of homes at risk of being underwater. Just 0.1 percent of homes in Pennsylvania would be lost if the ocean level rises six feet.

State  Number of Homes at Risk of Being Underwater Percent of Homes at Risk of Being Underwater  Total Value of Homes at Risk of Being Underwater  Median Value of Home at Risk of Being Underwater
United States 1,867,801 1.9%  $882 billion $296,296
California 42,353 0.4%  $49.2 billion $891,269
Texas 46,804 0.6%  $12 billion $195,029
New York 96,708 2.1%  $71 billion $495,712
Florida 934,411 12.6%  $412.6 billion $262,626
Pennsylvania 2,661 0.1%  $730 million $188,505
Georgia 24,379 0.7%  $10.2 billion $291,409
North Carolina 57,259 1.6%  $20.6 billion $266,693
New Jersey 190,429 7.3%  $93.1 billion $365,233
Virginia 46,287 1.8%  $14.4 billion $252,985
Washington 31,235 1.3%  $13.8 billion $291,965
Massachusetts 62,069 3.1%  $51.2 billion $551,866
Maryland 64,299 3.1%  $19.6 billion $233,937
Alabama 12,735 0.8%  $3.8 billion $234,987
South Carolina 83,833 4.4%  $45 billion $369,047
Louisiana 80,080 5.9%  $13.2 billion $139,042
Oregon 4,959 0.4%  $1 billion $179,424
Connecticut 18,173 1.6%  $13.2 billion $414,616
Mississippi 5,572 0.7%  $1 billion $148,161
Hawaii 37,556 9.1%  $25.3 billion $475,345
Maine 5,412 1.0%  $3.1 billion $436,798
New Hampshire 4,064 0.7%  $1.7 billion $337,320
Rhode Island 4,853 1.5%  $2.9 billion $454,559
Delaware 11,670 3.1%  $3.6 billion $261,802

Source: Zillow

 

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For more information about Zillow® please visit their website. Zillow® is a registered Trademark.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers, visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark