IMPORTANT DEADLINE FOR REALTORS® – Get Your Ethics Course Completed!

The National Association of REALTORS® has moved their Code of Ethics requirement to a 2-year cycle ending December 2018.

By Jeff Sorg, OnlineEd Blog

(November 8, 2018)

(PORTLAND, Ore.) OnlineEd – REALTORS® are required to complete ethics training of not less than 2 hours, 30 minutes of instructional time within two-year cycles. The training must meet specific learning objectives and criteria established by the National Association of REALTORS®. This current cycle began on January 1, 2017, and ends December 31, 2018.  Training must be repeated each cycle to help all members understand and follow NAR’s Code of Ethics and Standards of Practice.

OnlineEd has courses approved in many states to be used to satisfy the NAR requirement and for continuing education for license renewal. These courses emphasize the standards of ethical conduct in the practice of real estate based on the National Association of Realtors® Code of Ethics and Standards of Practice and on federal and state laws governing conduct applicable to the practice of real estate.

For more information about OnlineEd course offerings, please view the course catalog for your state at www.OnlineEd.com.

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OnlineEd blog postings are the personal opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party when professional advice is needed.

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

Oregon Real Estate Agency Requires Principal Broker Advanced Practices Course

Principal brokers with a license expiration date after July 1, 2019, renewing a for the first time must take the 27-hour Principal Broker Advanced Practices course.

By Jeff Sorg, OnlineEd Blog

(November 2, 2018)

(PORTLAND, Ore.) OnlineEd – Principal brokers with a license expiration date after July 1, 2019, who will be renewing their active license for the first time, will have to take the 27-hour Principal Broker Advanced Practices course. If the first principal broker license renewal was in inactive status and the principal broker wants to reactivate it for the first time on or after July 1, 2019, they will have to take the 27-hour Principal Broker Advanced Practices course. The 3-hour Law and Rule Required Course (LARRC) is also required to renew or reactivate the license. Except for LARRC, if the principal broker already completed regular continuing education, it will not count if for renewing active for the first time, or if reactivating after an inactive first renewal, on or after July 1, 2019.

Exclusively for OnlineEd customers who completed their regular continuing education with OnlineEd during their first Principal Broker license renewal cycle who cannot use that education for their renewal, they may qualify with OnlineEd to have their previous purchase credited against the $229 price of the OnlineEd 27-hour Principal Broker Advanced Practices course.

Law and Rule Required Course (LARRC) is another 3-hour course that is required for all license renewals. Together, Principal Broker Advanced Practices and Law and Rule Required Course will complete the required 30-hours of education needed to renew a principal broker license. Law and Rule Required Course is free at OnlineEd to all Oregon real estate licensees, whether property manager, broker or principal broker.

The Oregon Real Estate Agency has eight required course categories for Principal Broker Advanced Practices. These topics are:

Module 1: Brokerage Practices, covering business registration and planning
Module 2: Supervising and Managing Real Estate Licensees
Module 3: Affirmative Duties of Agent and Agency Relationships
Module 4: Advertising Rules
Module 5: Property Management
Module 6: Clients’ Trust Accounts
Module 7: Records and Record Maintenance
Module 8: Professional Real Estate Activity

The OnlineEd course divides each topic into smaller learning segments that cover specific facts, information, and details. Each module is populated with learning assessments to help learners comprehend presented information and a 60-question final exam at the end of the course. As with any Oregon continuing education course, Principal Broker Advanced Practices is required to be time-monitored. Once the learner completes all course elements and has spent the minimum necessary time logged into the course, the course final exam is made available. The final exam is not timed, requires a minimum passing score of 75%, and can be taken as many times as necessary to achieve a passing score. After successfully completing the final exam for this 27-hour course, a course completion certificate is generated. This certificate should be printed and kept by licensees in their education files as proof of meeting the OREA-required first-time renewal education course. You are not required to send this certificate to the Agency but must have it available for the Agency for three years after it is used for license renewal.

To sign up for the OnlineEd Principal Broker Advanced Practices course, please visit the OnlineEd web site.

 

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OnlineEd blog postings are the opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party when professional advice is needed.

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

Buyers Gain Negotiating Power in Some Markets

Zillow research reveals hot markets where competition is letting up just in time for buyers to get ahead of rising rents and mortgage rates.

By Jeff Sorg, OnlineEd Blog

(October 30, 2018)

SEATTLEOct. 30, 2018 /PRNewswire/ — After years of competitive bidding wars and rising prices, a Zillow® data analysis shows it might finally be a good time to buy a home in many U.S. markets.

Zillow researchers looked at three factors to determine which of the largest U.S. housing markets are becoming more buyer-friendly and found that some previously prohibitively competitive markets – including Seattle and Las Vegas – have turned into the best places for buyers this winter.

The three buyer-boosting metrics we considered are:

  • An increase in the share of listings with a price cut. Price cuts indicate homes are sitting on the market longer – which means more options for buyers, less competition for homes and more room for buyers to negotiate. Many recently white-hot markets have seen large jumps in the share of for-sale listings with a price cut.
  • Projected increase in rent appreciation over the next year. Rent appreciation has slowed recently, but as mortgage affordability deteriorates due to rising mortgage rates, rents could begin to increase again as some would-be buyers put their buying plans on hold. We know that nearly half of renters consider buying while they’re looking for a home, and the potential of rising rents also factors in to when it’s a good time to buy.
  • Affordability relative to the past. We looked for markets where mortgage affordability is poor – but not worse than it was historically. With interest rates on the rise, and mortgage affordability already closing in on its historic norm, prepared buyers may want to enter the market before housing payments become historically unaffordable.

Based on those factors, these are the best places for buyers this winter:

  1. Orlando
  2. Boston
  3. Seattle
  4. Las Vegas
  5. Charlotte
  6. Columbus
  7. Portland
  8. Sacramento
  9. Minneapolis
  10. Dallas

“The housing market always lets up a little in the fall, when kids are back in school and the home shopping season wraps up for the holidays,” said Zillow Senior Economist Aaron Terrazas. “But this fall and winter are shaping up to be more favorable for those buyers who have struggled to get into the housing market for several years amid red-hot competition. Mortgage rates are rising, but will climb much further in 2019 and early 2020. As purchase affordability deteriorates, expect rents to pick back up as some would-be buyers put their plans on ice. Renters who were thinking of buying and decided to hold off may want to take another look this winter, as a steady clip of mortgage rate increases chips away at affordability and more homes become available on the market.”

[Source: Zillow press release]

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Zillow is a registered trademark of Zillow, Inc.

OnlineEd blog postings are the personal opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party when professional advice is needed.

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

Purpose and Scope of the CMA (Comparative Market Analysis)

The Licensee’s Duty of Care Requires a CMA Before a Seller Lists or a Buyer Offers.

By Jeff Sorg, OnlineEd Blog

(October 25, 2018)

(Portland, Ore.) OnlineEd® – As a part of a licensee’s fiduciary duty of care, a Comparative (or Competitive) Market Analysis (CMA) should be prepared before a listing price is established with a seller or before an offer is prepared for a buyer. The CMA price is established by comparing the subject property to similar properties actively on the market, listings that have expired without selling, listings that have an accepted offer and are in pending sale status, and listings that have closed escrow and are in sold status.

A CMA is NOT an appraisal; rather it is a written analysis by a real estate licensee relating to the probable sale or offering price for a specific piece of real estate in an identified real estate market. A CMA is specifically used for assisting a buyer in arriving at an offering price or for assisting a seller in arriving at a listing price.

CAUTION: A CMA is limited to establishing the asking or offering price for a specific property for a specific client. Any activity that attempts to establish a value for property for any purpose outside of this limited scope does not fall under the definition of a CMA and requires a licensed appraiser.

A CMA has no required format and can be as simple as a written opinion of a listing or offering price, or can include a more detailed analysis that would review and analyze comparables or details of adjustments. One item that absolutely should be included in the CMA is a disclaimer that a CMA is NOT an appraisal.

EXAMPLE: “This analysis has NOT been performed in accordance with the uniform standards of professional appraisal practice that require real property valuers to act as unbiased, disinterested third parties with impartiality, objectivity, and independence and without accommodation of personal interest. It is not to be construed as an appraisal and may not be used as such for any purpose.”

A detailed CMA is more or less capsulized information comparing the subject property to comparable properties. The information sets forth the number of bedrooms and bathrooms, approximate square footage, the size of major rooms, amenities (fireplaces, swimming pool, etc.) age, property tax amounts, lot size, the presence or absence of a garage, and so forth. To get a complete picture of the marketplace, the information for the CMA is collected on available listings, pending sales, sales that occurred within a reasonable time based on current market conditions, as well as information about listings that did not sell during their listing period (expired listings). A CMA can include an area as narrow as one or two streets surrounding the property, or as broad as an entire neighborhood or subdivision but it is important that comparables be located as close to the subject property as possible, whenever possible.

For sellers, the currently available listings are competition for the seller’s property. How the seller’s property will be priced relative to the competition will be critical to the ultimate success of the agent’s marketing efforts undertaken to sell the property. Pending sales will represent the most recent sales activity in the area. Since the actual sale price of a pending sale is not made public until it closes, the sales price is not known at the time of the CMA and the neighborhood grapevine should not be relied on since a combination of wishful thinking and enthusiasm can result in a rumor that a listing sold for an inflated price. All that can reasonably be relied on by the broker preparing the CMA is the last listed price and the actual sale price may be greater or lesser than the listed price.

WARNING: A listing agent should never disclose the pending sales price just in case the sale does not close and the property comes back on the market.

When analyzing comparable sold properties, some issues should be taken into account. For example, in a slow market, it may be necessary to use properties that sold 12 to 18 months ago and, in a fast market, using properties that sold only 3 months back will be a better indicator of the current marketplace. However, whenever there is an adequate number of sales in a more limited period, these sales should be used. Expired listings usually indicate the highest price range for the subject property, since the most common reason a listing expires without selling is that it was overpriced for present market conditions.

In evaluating the sold price for comparables, inferences can be made about the selling price based on the market history of the listing. This analysis should include such factors as:

  • how long it took to find a buyer for the property;
  • if the price was reduced to stimulate an offer;
  • did the seller receive multiple offers at the same time;
  • did the seller pay any buyer closing costs or make other financial concessions; and
  • any other information that is available by making inquiries of the listing licensee.

A CMA does not include factors that affect perception. Perception is the key difference between why one house with identical features will command a higher price than a perceived twin. Because perception alters reality, perception is a crucial consideration in understanding the buying and selling process beyond a CMA – in other words, price will ultimately be determined by the emotional impact the property has on a particular buyer. These emotions tend to be based on subjective elements such as curb appeal, interior decor, colors, views, light, and room flow.

The CMA will usually include a brief statement by the licensee suggesting a “reasonable” or “suggested” listing price or price range. This statement is usually a combination of fact and subjective opinion based on the licensee’s “feel” for the current market. Estimating a probable sale price based on a CMA involves a certain amount of subjectivity and is easiest when done in neighborhoods of tract housing with little style and size variation from house to house.

A licensee’s knowledge of the local market could affect the accuracy of a CMA. For example, unless a licensee is familiar with or has seen the comparable listings used in the CMA, it is difficult to draw the correct conclusion for a probable sale price. In analyzing CMA data, the licensee should at least drive by the properties discussed in the CMA to get an understanding of how they compare to the subject.

Sellers and buyers should carefully analyze their CMAs, giving special attention to the sold listings. Sold and closed listings are the most reliable indicator of what the market will bear price-wise, and market price is ultimately determined by how much a willing buyer will pay for a property and how little a willing seller will take for the property. These price opinions are always influenced and adjusted by the sales dates of the comparables. In other words, a property that sold yesterday wouldn’t need to be adjusted based on its sales date but one that sold eight months prior would either need to be adjusted up or down based on current market pricing trends.

CAUTION: When preparing a CMA, avoid using “appraisal” and “value.” These words are reserved for licensed appraisers and

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OnlineEd blog postings are the personal opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party when professional advice is needed.

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

Categories: Real Estate

FHA To Require Second Appraisal For Certain Reverse Mortgages

 Where a second appraisal is required, lenders must use the lower value of the two appraisals.

By Jeff Sorg, OnlineEd Blog

(October 2, 2018)

(WASHINGTON) HUD – The Federal Housing Administration (FHA) announced that it will begin requiring lenders originating new Home Equity Conversion Mortgages (HECMs), commonly referred to as reverse mortgages, to provide a second property appraisal under certain circumstances. FHA is instructing lenders to provide a second independent property appraisal in cases where FHA determines there may be inflated property valuations.

FHA’s new requirement takes effect for case numbers assigned on or after October 1, 2018 through September 30, 2019. FHA will periodically review this guidance and, based on the results, may renew these requirements beyond fiscal year 2019. Read FHA’s Mortgagee Letter.

FHA will perform a risk assessment of appraisals submitted for use in new HECM originations. Based on the outcome of that assessment, FHA may require a second appraisal be obtained prior to approving the reverse mortgage for an insurance endorsement. Under the new policy, lenders must not approve or close a HECM before FHA has performed the collateral risk assessment and, if required, a second appraisal is obtained. Where a second appraisal is required by FHA, lenders must use the lower value of the two appraisals.

The appraisal validation policy announced today will further reduce risks to FHA’s Mutual Mortgage Insurance Fund (MMIF) and protect the health of the HECM program. The financial soundness of FHA’s reverse mortgage program is contingent on an accurate determination of a property’s value and condition. The property value is used to determine the amount of equity that is available to the borrower and it is also used by FHA to determine the amount of insurance benefits paid to a mortgagee.

In a 2017 evaluation, the U.S. Department of Housing and Urban Development (HUD) found higher-than-expected losses in the HECM program could be attributed in part to “optimistic estimates of collateral value driven by exaggerated property appraisals when the loan was originated.”

FHA is addressing the accuracy of appraised property values due to continuing volatility in the HECM program. Last year, FHA’s Fiscal Year 2018 Annual Report to Congress found the agency’s reverse mortgage portfolio had a negative capital ratio of 19.84 percent and a negative net worth of $14.5 billion. To begin to address the financial solvency of the program, FHA instituted several reforms to the HECM program to improve its financial health and to ensure reverse mortgages remain a resource to allow senior borrowers to remain in their homes and age in place. FHA is continuing to analyze the impact of these reforms and expects to provide an assessment in its Annual Report on the financial status of the MMIF.

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OnlineEd blog postings are the personal opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party when professional advice is needed.

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

Experts Predict a Buyers Market in 2020

Despite slowing home-value appreciation, it could take until 2020 to see the market change.

By Jeff Sorg, OnlineEd Blog

(August 28, 2018)

According to the 2018 Q3 Zillow® Home Price Expectations Survey,  sellers will continue to have more negotiating power than buyers, at least until 2020. The quarterly survey is sponsored by Zillow and conducted by Pulsenomics LLC, an independent research firm that specializes in data analytics. The survey questioned over 100 real estate experts for their predictions about the housing market.

Survey data found the market might be shifting toward buyers, with three out of four economists surveyed saying the market would shift – but not until 2020 or later. Also according to the Zillow article Home-Value Growth is Slowing in Several Hot Markets,  home values have slowed in more than half the 35 largest metros, and price cuts are now commonplace.

The largest share (43%) of respondents surveyed believed that the national housing market will shift over to a buyers market in 2020. Respondents also believe the Midwest will shift to a buyers market in 2019, a year before the rest of the country.

[Source: To get more information about this article, please visit the original Zillow press release: http://zillow.mediaroom.com/index.php?s=28775&item=137419]

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Zillow® is a registered trademark of Zillow, Inc.  Pulsenomics LLC (www.pulsenomics.com) is an independent research firm that specializes in data analytics.

OnlineEd blog postings are the personal opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party when professional advice is needed.

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

Categories: Real Estate

Existing Home Sales Slip Again in July

Year-over-year price gains hit 77 months in a row

By Jeff Sorg, OnlineEd Blog

(August 23, 2018)

(PORTLAND, Ore.) – Existing-home sales fell in July 2018 to their slowest pace since February 2016, according to a report by the National Association of Realtors®(NAR). Also according to the report, the West was the only major region with an increase in sales last month.

The median price for all housing types was up 4.5% in July to $269,900 marking the 77th month in a row of year-over-year price gains but July also marked the fourth straight month for falling home sales

Lawrence Yun, NAR chief economist, says the continuous solid gains in home prices have now steadily reduced demand. “Led by a notable decrease in closings in the Northeast, existing home sales trailed off again last month, sliding to their slowest pace since February 2016 at 5.21 million,” he said. “Too many would-be buyers are either being priced out or are deciding to postpone their search until more homes in their price range come onto the market.”

Average market time reported by NAR sits at just 27 days, which is up from 26 days in June 2018 but down 30 days from 2017.

To read the complete NAR report, please visit their National Association of REALTORS Newsroom.

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REALTOR® is a Registered Trademark of the National Association of Realtors®.

OnlineEd blog postings are the personal opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party when professional advice is needed.

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

National Housing Market Experiencing More Price Cuts

Home value growth is slowing in almost half of the 35 largest U.S. metros

By Jeff Sorg, OnlineEd Blog

(August 16, 2018)

(SEATTLE) Zillow®/PRNewswire – The share of home listings with a price cut is greater now than a year ago in two-thirds of the nation’s largest housing markets, according to a new Zillow® analysis. The share of listings with a price cut increased the most in markets along with West Coast, with the median amount of the price cut remaining steady across the U.S. for the past several years, at about 3 percent.

In San Diego, 20 percent of all listings had a price cut in June 2018, up from 12 percent a year ago. In Seattle, still one of the nation’s fastest appreciating housing markets despite a recent slowdown, 12 percent of all listings had a price cut in June, the greatest share since October 2014. Portland, Sacramento, Calif. and Riverside, Calif. also experienced an increase in the share of listings with a price cut compared to a year ago.

The share of listings with a price cut is on the rise across the U.S., as well. About 14 percent of all listings had a price cut in June, up from a recent low of 11.7 percent at the end of 2016. Since the beginning of the year, the share of listings with a price cut increased 1.2 percentage points, the greatest January-to-June increase ever reported, and more than double the January-to-June increase last year.

Nationally, price cuts are more common among higher-priced listings. The share of higher-priced listings with a price cut rose 0.9 percentage points since the beginning of the year, to 16.2 percent, while the share of lower-priced listings with a price cut fell 0.1 percentage points, to 11.2 percent. Higher-priced listings have seen a disproportionately large increase in price cuts in 23 of the 35 largest metros since the beginning of the year.

U.S. home values rose 8.3 percent over the past year to a median home value of $217,300. While home value growth isn’t slowing down nationally, it is slowing in some of the nation’s hottest housing markets. In almost half of the 35 largest markets, home value growth is appreciating more slowly now than at the beginning of the year. The median home value in Seattle rose 11.4 percent over the past year, but the annual growth rate was close to 14 percent at the beginning of the year.

“The housing market has tilted sharply in favor of sellers over the past two years, but there are very early preliminary signs that the winds may be starting to shift ever-so-slightly,” said Zillow senior economist Aaron Terrazas. “A rising share of on-market listings are seeing price cuts, though these price cuts are concentrated at the most expensive price-points and primarily in markets that have seen outsized price gains in recent years. It’s far too soon to call this a buyer’s market, home values are still expected to appreciate at double their historic rate over the next 12 months, but the frenetic pace of the housing market over the past few years is starting to return toward a more normal trend.”

There are fewer listings with a price cut in some of the nation’s more affordable housing markets. San Antonio, Phoenix, Philadelphia and Houston reported fewer listings with a price cut in June than a year ago. In San Antonio, where the median home value is $185,000, 17.8 percent of all listings had a price cut in June, down from about 20 percent of listings a year ago.

Zillow forecasts home value growth across the U.S. to slow to a 6.6 percent annual appreciation rate over the next year. Among the 35 largest metros, home value growth in San Jose, Calif., Indianapolis and Charlotte, N.C. are forecasted to slow the most.

Metropolitan Area Share of
Listings with a
Price Cut –
January 2018
Share of
Listings
with a Price
Cut  – June
2018
Share of
Listings
with a
Price Cut –
June 2017
Median
Percent of
Price
Reduction
– June
2018
YoY
Home
Value
Growth –
January
2018
YoY
Home
Value
Growth
– June
2018
Home
Value
Growth
Forecast
Over the
Next Year
United States 13.0% 14.2% 13.4% 2.9% 7.7% 8.3% 6.6%
New York, NY 12.0% 13.3% 11.2% 3.6% 7.6% 6.7% 6.8%
Los Angeles-Long

Beach-Anaheim, CA

11.1% 14.1% 11.5% 2.6% 7.7% 7.6% 12.1%
Chicago, IL 15.9% 19.4% 16.5% 2.7% 5.9% 5.8% 7.1%
Dallas-Fort Worth,
TX
15.1% 18.8% 15.3% 2.3% 11.0% 11.6% 7.8%
Philadelphia, PA 17.2% 16.2% 17.9% 3.1% 7.3% 5.9% 6.6%
Houston, TX 16.3% 17.9% 19.0% 2.6% 4.1% 5.8% 1.5%
Washington, DC 13.9% 15.4% 16.0% 2.5% 3.9% 4.2% 3.8%
Miami-Fort

Lauderdale, FL

13.7% 14.9% 13.4% 2.9% 7.2% 7.7% 5.4%
Atlanta, GA 11.0% 13.9% 13.2% 2.4% 8.9% 11.6% 6.9%
Boston, MA 11.7% 13.3% 11.6% 3.0% 7.3% 7.2% 8.1%
San Francisco, CA 6.5% 7.7% 7.6% 4.2% 9.3% 11.0% 7.5%
Detroit, MI 13.9% 16.2% 15.1% 3.5% 9.4% 9.7% 9.0%
Riverside, CA 12.4% 16.4% 11.9% 2.2% 8.3% 7.4% 1.7%
Phoenix, AZ 17.3% 17.8% 19.9% 1.6% 7.6% 8.0% 3.7%
Seattle, WA 6.9% 12.0% 6.9% 3.1% 13.6% 11.4% 7.1%
Minneapolis-St Paul,

MN

11.3% 13.6% 13.7% 2.9% 7.7% 7.6% 6.1%
San Diego, CA 12.3% 20.0% 12.0% 2.3% 7.9% 6.6% 4.7%
St. Louis, MO 15.3% 15.3% 14.5% 3.1% 5.7% 5.5% 4.9%
Tampa, FL 18.6% 22.2% 20.2% 2.4% 10.8% 10.9% 7.5%
Baltimore, MD 16.3% 18.2% 18.7% 2.8% 3.6% 5.0% 4.8%
Denver, CO 10.9% 15.1% 15.2% 2.2% 7.7% 7.4% 5.1%
Pittsburgh, PA 15.2% 14.7% 15.4% 3.7% 6.6% 7.9% 4.6%
Portland, OR 12.8% 17.4% 12.7% 2.6% 5.7% 5.9% 2.7%
Charlotte, NC 11.9% 15.4% 11.2% 2.4% 9.7% 11.0% 3.3%
Sacramento, CA 12.3% 16.7% 12.2% 2.4% 8.7% 6.4% 4.9%
San Antonio, TX 18.4% 17.8% 20.2% 2.1% 6.5% 5.6% 2.7%
Orlando, FL 14.8% 19.2% 18.8% 2.3% 10.0% 9.7% 6.5%
Cincinnati, OH

(Source: Zillow Press Release)

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Zillow is a registered trademark of Zillow, Inc.

OnlineEd blog postings are the personal opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party when professional advice is needed.

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

Buyers Are Paying a Smaller Premium for Waterfront Living

Waterfront home price premium drops 18% since 2012

By Jeff Sorg, OnlineEd Blog

(July 20, 2018)

(SEATTLE) PRNewswire- The premium for living on the water isn’t as high it used to be. Homes along the water sold for a 36 percent premium in the first quarter of 2018, according to a new Zillow® analysis. The extra cost for waterfront living is at its lowest level since the second quarter of 2002, and below the average premium since 1996 of 41 percent.

Across the country, waterfront homes tend to have higher prices than similar homes in the same area, but the gap has closed over the past several years. The typical U.S. home has more than recovered from the recession, but waterfront homes have not.

Zillow defines waterfront homes as those where the homeowner can get to the water’s edge, whether it is a lake, river, or ocean, without leaving their property. This analysis compares sale prices for waterfront homes with homes in the same metro that have similar physical features, but do not have waterfront access.

“Buyers are willing to pay extra for features that add a unique benefit to a home, and being right on the water’s edge is one of them,” said Zillow Senior Economist Aaron Terrazas. “These homes are relatively rare, making up only a small portion of the housing market, and that scarcity keeps prices high. With inventory as low as it is, buyers are spending more just to get into the market, which has narrowed the gap somewhat between waterfront homes and inland homes. Still, having waterfront access is incredibly appealing for many buyers, and even as environmental risk factors like rising sea levels and storm surges gain more attention and make some buyers more cautious in the homes they consider, the premium for waterfront homes is likely to endure.”

Markets with the Highest Premium for Waterfront Living

Metro Median Value of a
Waterfront Home
Average Sales Premium
for Waterfront Homes
Since 1996
Share of Homes that
are Waterfront
Homes
Jacksonville, Fla. $ 633,700 72% 0.27%
Cleveland, Ohio $ 463,100 68% 0.12%
Denver, Colo. $ 843,100 52% 0.04%
Baltimore, Md. $ 361,300 52% 0.04%
Milwaukee, Wisc. $ 569,800 50% 0.32%

Waterfront properties are most valuable in Los Angeles, where the typical home on the water is worth $2,018,200. In three other West Coast markets – San Francisco, Seattle, and San Diego – the median value of a waterfront home is also above $1 million.

Buyers looking for a waterfront home will have the most options in Miami, where 5.9 percent of all homes offer waterfront living.

Metropolitan Area Median Value of
Waterfront Home
Average Sales Premium
for Waterfront Homes
Sold Since 1996 (%)
Share of Homes
That Are
Waterfront Homes
United States $ 426,300 41 0.47%
Atlanta $ 644,800 34 0.08%
Austin $ 572,500 42 0.16%
Baltimore $ 361,300 52 0.04%
Boston $ 463,700 11 0.06%
Charlotte $ 697,600 41 1.03%
Chicago $ 279,000 21 0.21%
Cincinnati $ 166,600 5 0.04%
Cleveland $ 463,100 68 0.12%
Columbus $ 372,300 41 0.10%
Dallas-Fort Worth $ 410,300 41 0.08%
Denver $ 843,100 52 0.04%
Houston $ 364,000 35 0.30%
Indianapolis $ 493,000 42 0.16%
Jacksonville $ 633,700 72 0.27%
Kansas City $ 379,000 31 0.09%
Los Angeles-Long Beach-
Anaheim
$ 2,018,200 14 0.05%
Memphis $ 398,300 6 0.08%
Miami-Fort Lauderdale $ 369,300 38 5.86%
Milwaukee $ 569,800 50 0.32%
Minneapolis-St. Paul $ 483,500 32 0.13%
Nashville $ 381,300 22 0.08%
New York / Northern New
Jersey
$ 665,700 26 0.18%
Orlando $ 357,600 27 0.70%
Philadelphia $ 185,400 9 0.03%
Phoenix $ 413,600 29 0.11%
Pittsburgh $ 153,300 -11 0.04%
Portland $ 625,900 24 0.22%
Riverside $ 446,200 25 0.38%
Sacramento $ 763,100 47 0.35%
San Diego $ 1,014,800 27 0.72%
San Francisco $ 1,175,000 8 0.48%
Seattle $ 1,024,300 47 0.66%
Tampa $ 496,200 39 3.31%
Virginia Beach $ 487,700 36 0.97%
Washington, D.C. $ 469,500 30 0.13%

Zillow is a registered trademark of Zillow, Inc.

 

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OnlineEd blog postings are the personal opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party when professional advice is needed.

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

Housing Starts Plummet 12%

Housing Starts Collapse in June

By Jeff Sorg, OnlineEd Blog

(July 18, 2018)

(Washington, D.C.) US Department of HUD – The U.S. Census Bureau and the U.S. Department of Housing and Urban Development jointly announced the following new residential construction statistics for June 2018. Here’s how they stack up:

Building Permits
Privately-owned housing units authorized by building permits in June were at a seasonally adjusted annual rate of 1,273,000. This is 2.2 percent (±1.2 percent) below the revised May rate of 1,301,000 and is 3.0 percent (±1.1 percent) below the June 2017 rate of 1,312,000. Single-family authorizations in June were at a rate of 850,000; this is 0.8 percent (±1.5 percent)* above the revised May figure of 843,000. Authorizations of units in buildings with five units or more were at a rate of 387,000 in June.

Housing Starts
Privately-owned housing starts in June were at a seasonally adjusted annual rate of 1,173,000. This is 12.3 percent (±8.3 percent) below the revised May estimate of 1,337,000 and is 4.2 percent (±10.2 percent)* below the June 2017 rate of 1,225,000. Single-family housing starts in June were at a rate of 858,000; this is 9.1 percent (±8.8 percent) below the revised May figure of 944,000. The June rate for units in buildings with five units or more was 304,000.

Housing Completions
Privately-owned housing completions in June were at a seasonally adjusted annual rate of 1,261,000. This is 0.0 percent (±11.3 percent)* below the revised May estimate of 1,261,000, but is 2.2 percent (±14.5 percent)* above the June 2017 rate of 1,234,000. Single-family housing completions in June were at a rate of 862,000; this is 2.3 percent (±8.4 percent)* below the revised May rate of 882,000. The June rate for units in buildings with five units or more was 393,000.

[View the complete report.]

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OnlineEd blog postings are the personal opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party when professional advice is needed.

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