Tag Archives: home price statistics

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]

###

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

Redfin Study: Middle-Class African-Americans and Hispanics Priced Out of Hot West Coast Markets

Fewer than five percent of homes for sale in Portland, Los Angeles, and Denver were affordable on median African-American and Hispanic incomes in 2016

By Jeff Sorg, OnlineEd Blog

(June 30, 2017)

canstockphoto1334948soldsignIn 2016, just 18 percent of homes for sale in the 30 largest U.S. metros were affordable for middle-class Hispanic families and 14 percent were affordable for African-American families, according to a new study by Redfin (www.redfin.com). Both rates were down 11 percentage points from 2012. This is compared to 30 percent affordable for those earning the median income for white households, down 12 percentage points since 2012.

Housing affordability declined over the same four-year period for the middle class as a whole, as home prices increased by 26 percent and household incomes edged up by less than 2 percent nationally. In 2012, 44 percent of homes for sale were affordable on a middle-class income; that share fell to 32 percent in 2016.

The study also found that in 2016, middle-class African-American and Hispanic families were virtually priced out of homeownership in Denver, Los Angeles, Portland, San Francisco, San Diego and Phoenix. In each of those metros, fewer than 5 percent of homes on the market were affordable on the median household incomes for African Americans and Latinos.

Still, Denver was home to the smallest racial gap in housing affordability in 2016. Less than 2 percent of homes for sale there were affordable to families earning the median income for African-American and Hispanic households, compared to just 8.3 percent for families earning the median income for white households. The racial affordability gap was largest in Minneapolis, where the typical white family could afford 66 percent of the homes for sale, compared to 5.2 percent and 24.8 percent for families earning the median income for African-American and Hispanic households.

Among the 30 largest metros, Las Vegas had the largest declines in affordability for families making the median African American (-26.5 points) or Hispanic (-24.6 points) household incomes from 2012 to 2016.

Also during this period, metros known for their relative affordability, like Atlanta, Tampa and Kansas City, saw double-digit declines in the share of listings that were affordable on African American and Hispanic median incomes.

St. Louis was the only metro that saw increases in affordability for both Hispanic (+5.4 points) and African-American families (+4.3 points). Interestingly, St. Louis was also the only metro where overall middle-class affordability, including for median-income white households, did not change significantly over this time period.

“American cities are at risk of losing both the economic and racial diversity that has been their hallmark,” said Redfin chief economist Nela Richardson. “Middle-class homebuyers are being priced out of America’s largest cities at an alarming rate, as the home affordability gap gets wider. Given the significantly lower rates of homeownership among African-American and Hispanic families, the reduction in affordable listings has even more dire consequences for income inequality when broken out by race.”

[Source: Redfin news release]

###

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

Summer is the Best Time to Buy

Most inventory and price cuts occur in August and September

By Jeff Sorg, OnlineEd Blog

(April 5, 2017)

canstockphoto2590514 sun flowers 4(SEATTLE, May 4, 2017) PRNewswire — Patience pays off for home buyers. The best time to buy a home is late summer when there are the most options and frequent price cuts.

As summer approaches, overall inventory of homes for sale is down 5.3 percent from a year ago, signaling another competitive home shopping season for buyers this year. Even in markets that have seen a recent uptick in the number of homes for sale, inventory is still well below the levels of five years ago.

A new Zillow® analysis shows that there are more homes for sale at the end of summer than at any other time of year, giving buyers the greatest selection. In most major metros, August had more for-sale listings than any other month. In Los Angeles, for example, there were about 8,000 more homes for sale in August than in April. In Seattle, the difference was about 5,000 listings.

At the same time, price cuts are more common as home sellers start to worry about not selling their homes. Across the country, 15 percent of listings in August have had price reductions. In most large markets, buyers are most likely to find a home with a reduced price tag in either August or September.

The home shopping process can be stressful for buyers. On average, buyers spend more than four months shopping for a home, and put in at least two offers before buying, according to the 2016 Zillow Group Report on Consumer Housing Trends. Buyers who have been unsuccessful so far may find better luck in the later months of the summer.

“In such a competitive housing market, it’s easy for buyers to get frustrated when they are putting in multiple offers without success,” said Zillow Chief Economist Dr. Svenja Gudell. “Buyers who start their home search in the spring may still be looking months later – but for those who can wait it out, the end of summer will bring more favorable conditions. Homes that may have been overpriced earlier in the year are more likely to have a price reduction, and those listings passed over in earlier months may look better with a fresh perspective.”

Spring traditionally kicks off the home shopping season – most new listings hit the market during these months. April in particular had more new listings than any other month in 2016.  However, shopping in spring can be competitive, and these homes are more likely to sell for a premium. Homes listed in late spring sell faster and for a $1,500 premium on average, according to Zillow’s Best Time to List analysis.

Share of Active Listings with a Price Cut – 2016

Metropolitan Area March April May June July August September October
United States 12.6% 12.8% 12.8% 14.3% 14.4% 15.1% 14.3% 13.0%
New York/Northern New Jersey 11.5% 12.2% 12.3% 13.2% 12.3% 11.9% 12.5% 11.2%
Los Angeles-Long Beach-Anaheim, CA 10.8% 10.3% 10.7% 12.6% 13.2% 14.3% 13.5% 11.9%
Chicago, IL 13.2% 15.9% 16.2% 18.6% 18.6% 19.7% 19.9% 18.2%
Dallas-Fort Worth, TX 10.6% 11.2% 11.6% 13.7% 15.2% 16.4% 15.4% 14.5%
Philadelphia, PA 17.5% 18.5% 18.1% 20.1% 19.3% 19.0% 21.0% 19.7%
Houston, TX 17.1% 16.5% 14.7% 17.2% 19.1% 18.2% 18.2% 17.2%
Washington, DC 13.4% 15.4% 16.3% 17.8% 17.7% 17.1% 17.2% 16.8%
Miami-Fort Lauderdale, FL 14.1% 13.1% 12.1% 12.4% 11.8% 12.1% 11.8% 10.8%
Atlanta, GA 11.6% 12.1% 12.0% 13.3% 14.1% 14.6% 14.0% 13.6%
Boston, MA 10.8% 11.4% 12.5% 14.3% 13.4% 14.2% 14.6% 16.4%
San Francisco, CA 6.8% 7.6% 9.0% 10.3% 11.2% 12.3% 10.9% 10.1%
Detroit, MI 14.9% 13.9% 14.8% 17.5% 18.9% 20.8% 18.9% 17.6%
Riverside, CA 13.8% 12.5% 11.8% 13.0% 13.5% 14.6% 13.6% 12.8%
Phoenix, AZ 21.6% 19.3% 18.7% 18.7% 18.5% 19.4% 19.3% 19.8%
Seattle, WA 6.3% 7.0% 7.7% 9.3% 10.8% 12.1% 11.7% 9.2%
Minneapolis-St Paul, MN 12.8% 13.0% 13.7% 16.4% 17.2% 18.9% 18.6% 17.3%
San Diego, CA 12.9% 12.6% 12.6% 13.7% 14.9% 15.5% 12.7% 8.3%
St. Louis, MO 14.5% 15.3% 15.3% 17.1% 16.9% 17.9% 17.3% 15.7%
Tampa, FL 16.3% 15.6% 14.0% 14.4% 14.1% 14.6% 15.2% 14.6%
Baltimore, MD 16.1% 17.2% 17.7% 19.1% 19.6% 19.2% 19.9% 19.8%
Denver, CO 8.3% 9.3% 10.4% 13.5% 14.2% 15.3% 12.9% 9.1%
Pittsburgh, PA 14.4% 15.1% 15.7% 16.5% 17.4% 17.8% 17.9% 16.3%
Portland, OR 7.2% 8.2% 9.6% 11.4% 13.2% 15.3% 15.2% 13.0%
Charlotte, NC 11.3% 11.5% 11.5% 12.3% 12.9% 13.5% 11.8% 9.6%
Sacramento, CA 8.7% 9.9% 11.0% 12.3% 14.0% 14.6% 13.0% 8.6%
San Antonio, TX 14.3% 15.2% 15.9% 16.8% 19.4% 20.0% 17.9% 16.9%
Orlando, FL 15.9% 15.7% 13.3% 14.2% 14.8% 14.6% 15.1% 14.1%
Cincinnati, OH 13.5% 14.8% 13.7% 16.1% 16.0% 16.7% 15.8% 13.7%
Cleveland, OH 14.1% 13.6% 13.9% 15.9% 15.9% 17.5% 17.0% 16.2%
Kansas City, MO 11.7% 11.9% 12.0% 14.2% 15.0% 15.9% 15.3% 14.8%
Las Vegas, NV 13.0% 12.7% 12.1% 12.5% 13.6% 16.0% 15.3% 14.2%
Columbus, OH 11.5% 11.3% 11.5% 12.9% 14.4% 15.3% 14.8% 12.9%
Indianapolis, IN 13.0% 12.3% 13.1% 14.9% 16.0% 17.7% 16.9% 16.3%
San Jose, CA 7.7% 8.5% 9.9% 12.0% 11.9% 13.9% 13.1% 12.1%
Austin, TX 12.4% 13.1% 13.7% 15.3% 17.3% 17.0% 16.8% 14.1%

For the full data, visit Zillow Research: http://www.zillow.com/research/strategy-best-time-to-buy-15066/

###

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

NAR Reports Sales Decline to Lowest Level in 9 Months

(c) Can Stock Photo(Jeff Sorg, OnlineEd) –  The National Association of Realtors® is reporting that existing-home sales declined in January to their lowest rate in nine months. All major regions experienced declines in January, with the Northeast and West seeing the largest, but sales remain higher than a year ago by 3.2% .

Total existing-home sales are completed transactions that include single-family homes, townhomes, condominiums and co-ops, fell 4.9 percent to a seasonally adjusted annual rate of 4.82 million in January, the lowest since last April at 4.75 million, from an upwardly-revised 5.07 million in December.

Lawrence Yun, NAR chief economist, says the housing market got off to a somewhat disappointing start to begin the year with January closings down throughout the country. “January housing data can be volatile because of seasonal influences, but low housing supply and the ongoing rise in home prices above the pace of inflation appeared to slow sales despite interest rates remaining near historic lows,” he said. “Realtors® are reporting that low rates are attracting potential buyers, but the lack of new and affordable listings is leading some to delay decisions.”

To view the complete report, click here.

 

###

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

  This article was published on February 24, 2015. All information contained in this posting is deemed correct and current as of this date, but is not guaranteed by the author and may have been obtained by 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.

Existing Home Sales Experience First Year-Over-Year Increase Since October 2013

(c) Can Stock Photo(Jeff Sorg, OnlineEd) – The National Association of REALTORS today is reporting that existing home sales rose in October for the second straight month and are now above year-over-year levels for the first time in a year.

Lawrence Yun, NAR Chief Economist, says the housing market this year has been a tale of two halves. “Sales activity in October reached its highest annual pace of the year as buyers continue to be encouraged by interest rates at lows not seen since last summer, improving levels of inventory and stabilizing price growth,” he said. “Furthermore, the job market has shown continued strength in the past six months. This bodes well for solid demand to close out the year and the likelihood of additional months of year-over-year sales increases.”

 

 

###

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

This article was published on September 18, 2014. All information contained in this posting is deemed correct and current as of this date, but is not guaranteed by the author and may have been obtained by 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.

Year-Over-Year Home Prices Rose by 5.6 % in September 2014, CoreLogic Reports

(c) Can Stock Photo(Jeff Sorg, OnlineEd®) –  On November 14, 2014 CoreLogic® released its September CoreLogic Home Price Index (HPI®) report. The report shows home prices nationwide, including distressed sales, increased by 5.6 percent in September 2014 when compared to September 2013. This change represents 31 months of consecutive year-over-year increases in home prices nationally. On a month-over-month basis, home prices nationwide, including distressed sales, dropped by 0.1 percent in September 2014 compared to August 2014.

All states showed year-over-year price appreciation in September.  Michigan and Montana showed double-digit year-over-year growth. The HPI reached new highs in a total of five states: Colorado, Nebraska, North Dakota, South Dakota and Texas.

“There has been a clear bifurcation in home price growth for lower-end versus upper-end properties in 2014,” said Sam Khater, deputy chief economist at CoreLogic. “As of December 2013, both lower-end and upper-end property prices were up 9.7 percent on a year over year basis. As of September, lower-end prices were up 9.4 percent but upper-end prices were up only 4.5 percent.”

“Home prices continue to rise compared with this time last year but the rate of growth is clearly slowing as we exit 2014,” said Anand Nallathambi, president and CEO of CoreLogic. “With more positive macro-economic trends emerging in the U.S., we are forecasting moderate price growth for 2015.”

View the complete report at CoreLogic.

###

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

  This article was published on November 18, 2014. All information contained in this posting is deemed correct and current as of this date, but is not guaranteed by the author and may have been obtained by 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.