Tag Archives: housing market

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

Housing Sentiment at New Survey High

Share of consumers say it’s a good time to sell – buyer sentiment weakens

By Jeff Sorg, OnlineEd Blog

(January 9, 2018)

canstockphoto367977sold(WASHINGTON, DC) Fannie Mae – The Fannie Mae Home Purchase Sentiment Index® (HPSI) rose 3.7 points in January to 89.5, reversing the decrease seen last month and reaching a new all-time survey high. The increase can be attributed to increases in five of the six HPSI components. The net share of respondents who said now is a good time to buy a home increased 3 percentage points compared to December. Additionally, the net share who reported that now is a good time to sell a home increased 4 percentage points and is now up 23 percentage points year over year. The net share who said home prices will go up in the next 12 months increased 8 percentage points in January, while Americans also expressed a greater sense of job security, with the net share who say they are not concerned about losing their job increasing 5 percentage points. Finally, the net share of consumers who said mortgage rates will go down over the next 12 months increased 2 percentage points in January, while the net share reporting that their income is significantly higher than it was 12 months ago remained flat.

“HPSI rebounded from last month’s dip to a new survey high in January, in large part due to the spike in consumers’ net expectations that home prices will increase over the next year,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Results may continue to fluctuate over the coming months as consumers sort out the implications of the newly passed tax legislation on their household finances. Over the past year, continued home price growth has helped spur a sizable increase in the net share of consumers who say it’s a good time to sell a home but also a modest weakening in the net share who say it is a good time to buy. At the start of 2018, it is still too early to determine the overall effect of the new tax legislation on housing, and we will need to see whether positive impacts on both housing demand and supply materialize in the coming months.”

HOME PURCHASE SENTIMENT INDEX – COMPONENT HIGHLIGHTS

Fannie Mae’s 2017 Home Purchase Sentiment Index (HPSI) increased in January by 3.7 points to 89.5. The HPSI is up 6.8 points compared with the same time last year.

  • The net share of Americans who say it is a good time to buy a home rose 3 percentage points to 27%, reversing some of last month’s decline.
  • The net share of those who say it is a good time to sell rose 4 percentage points to 38%. The share who said it is a good time to sell reached a new survey high of 65%.
  • The net share of Americans who say home prices will go up rose 8 percentage points to 52% in January, reaching a new survey high. The percentage who said home prices will go up reached a new survey high of 58%.
  • The net share of those who say mortgage rates will go down over the next 12 months rose 2 percentage points to -50%.
  • The net share of Americans who say they are not concerned about losing their job rose by 5 percentage points to 73%.
  • The net share of Americans who say their household income is significantly higher than it was 12 months ago remained at 16% from last month.

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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.

OnlineEd® is a registered Trademark

Refinances Rise to 40% of Total Loans

Closing rates increased across the board with closing rates on all loans increasing from 70.9 percent to 71.2 percent

By Jeff Sorg, OnlineEd Blog

(January 18, 2018)

canstockphoto10268206housepriceincrease(PLEASANTON, Calif.) Ellie Mae – The percentage of refinances rose to 40 percent of all closed loans, up 1 percent from the month prior according to the December Origination Insight Report from Ellie Mae®, the leading cloud-based platform provider for the mortgage finance industry. The percentage of FHA refinances increased to 25 percent of closed loans in the month, up 1 percentage point, and the percentage of conventional refinances increased to 47 percent of closed loans in December, up from 45 percent the month prior.

In December, closing rates increased across the board with closing rates on all loans increasing from 70.9 percent to 71.2 percent, closing rates on refinances increasing from 65.1 percent to 65.6 percent, and closing rates on purchases increasing from 75.5 percent to 76.1 percent. Closing rates also increased across FHA, conventional and VA loans for both purchases and refinances.

“As we closed out 2017 we saw an increase in the percentage of refinances due to seasonality as fewer purchases take place in the fourth quarter, and likely homebuyers were taking advantage of the mortgage deductibility limit before it decreased to $750,000 on December 15th,” said Jonathan Corr, president and CEO of Ellie Mae. “We probably can also attribute some of the increase in closing rates to last-minute efforts by borrowers to close loans before the tax changes took effect.”

Other statistics of note in December included:

  • The percentage breakdown of all closed loans remained steady with conventional loans at 66 percent, FHA loans at 20 percent and VA loans at 10 percent.
  • Closing time for all loans increased slightly to 44 days, up 1 day from the month prior.
  • 30-year interest rates increased to 4.280 from 4.240 the month prior.
  • The percentage of ARMs held steady at 5.6 percent.

The Origination Insight Report mines data from a robust sampling of approximately 80 percent of all mortgage applications that were initiated on the Encompass® all-in-one mortgage management solution. Ellie Mae believes the Origination Insight Report is a strong proxy of the underwriting standards employed by lenders across the country.

In addition to the Origination Insight Report, Ellie Mae also distributes data from its monthly Ellie Mae Millennial Tracker on the first Wednesday of each month. The Ellie Mae Millennial Tracker focuses on mortgage applications submitted by borrowers born between the years 1980 and 1999.

MONTHLY ORIGINATION OVERVIEW FOR DECEMBER 2017

December
2017*
November
2017*
6 Months Ago
(Jun 2017)*
1 Year Ago
(Dec. 2016)*
Closed Loans
Purpose
Refinance 40% 39% 32% 46%
Purchase 60% 61% 68% 54%
Type
FHA 20% 20% 22% 20%
Conventional 66% 66% 64% 66%
VA 10% 10% 10% 9%
Days to Close
All 44 43 43 50
Refinance 41 40 41 52
Purchase 46 45 43 48
Percentage of ARM and Fixed Loan Volume
ARM % 5.6% 5.6% 5.9% 4.6%
30-Year Rate
Average 4.280% 4.240% 4.270% 4.050%

*All references to months should be read as month ended.

PROFILES OF CLOSED AND DENIED LOANS FOR DECEMBER 2017
Closed First-Lien Loans (All Types)
FICO Score (FICO) 722
Loan-to-Value (LTV) 79
Debt-to-Income (DTI) 25/39

More information and analysis of closed and denied loans by loan purpose and investor are available in the full report at http://www.elliemae.com/about-us/news-reports/ellie-mae-reports/.

To get a meaningful view of lender pull-through, Ellie Mae reviewed a sampling of loan applications initiated 90 days prior—or the September 2017 applications—to calculate an overall closing rate of 71.2 percent in December 2017 (see full report).

ABOUT THE ELLIE MAE ORIGINATION INSIGHT REPORT

The Origination Insight Report focuses on loans that closed in a specific month and compares their characteristics to similar loans that closed three and six months earlier. The closing rate is calculated on a 90-day cycle rather than on a monthly basis because most loan applications typically take one-and-a-half to two months from application to closing. Loans that do not close could still be active applications or applications withdrawn by consumers or denied for incompleteness or non-qualification.

The Origination Insight Report details aggregated anonymized data pulled from Ellie Mae’s Encompass origination platform.

[Source: Ellie Mae 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.

OnlineEd® is a registered Trademark

For-Sale Homes Hitting the Market is Dropping at its Fastest Pace in Almost Four Years

The number of single-family home rentals has increased by 6.2 million since 2005, one of the reasons why inventory remains low

By Jeff Sorg, OnlineEd Blog

(June 26, 2017)

sad disappointed coupleZillow® is reporting that the number of for-sale homes coming onto the market is dropping at its fastest pace in almost four years, according to their May Zillow® Real Estate Market Reports. Homes are staying on the market for the fewest days Zillow ever reported.

Across the country, home shoppers will have 9 percent fewer homes to choose from than a year ago, which is the greatest drop in inventory since August 2013 when inventory was down over 10 per cent. Homes are staying on the market for just 77 days.

 

The median home value across the country is $199,200, up 7.4 percent since this time last year. Seattle, Dallas and Tampa, Fla. reported the highest year-over-year home value appreciation among the 35 largest U.S. metros. In Seattle, home values rose almost 13 percent to a median value of $440,100. Home values in Dallas and Tampa are up about 11 percent since this time last year.

“On the demand side, simple demographic change is contributing to incredibly high demand as Millennials reach their prime home-buying years and begin to enter the market in droves. This is coupled with relatively low levels of new home construction on the supply side insufficient to keep pace with demand, and what is built is largely priced beyond the reach of many of the first-time and entry-level home buyers in the market. Thousands of single-family homes that were once bought and sold every few years prior to the recession have now been converted into rental properties by investors, trading hands much less frequently and further contributing to inventory shortages. And finally, in some still hard-hit markets, negative equity is likely keeping many homeowners of lower-end homes from listing their home for sale because they can’t afford to profitably do so. There is no silver bullet that will clear the market of all of these issues, and buyers frustrated by the status quo will likely have to remain patient and be ready to pounce once that perfect home does become available,” said Zillow Chief Economist Dr. Svenja Gudell.

 

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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.

OnlineEd® is a registered Trademark

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.

OnlineEd® is a registered Trademark

Homes are Flying Off the Market Faster Than Any Time Since 2010

 Homes are selling fast in spite of low supply

By Jeff Sorg, OnlineEd Blog

canstockphoto1864187moneywoman(July 22, 2016) Zillow –  Homes are selling an average of a week faster than they did a year ago, according to the June Zillow® Real Estate Market Reports.

Tight inventory continues to be a major factor for home shoppers. The supply of homes for sale is nearly 5 percent lower than it was a year ago, and 38 percent lower than its peak level in 2011. With fewer available options, home shoppers are moving quickly to buy homes, with the average U.S. home closing after 78 days on the market. The 78-day average includes the time it takes to close, which is usually one or two months after the home goes under contract, which means that homes are pending within about a month of being listed.

The length of time homes remain on the market before selling has been steadily decreasing since 2010 when homes took an average of five months to sell.

The low inventory and quick-moving market combine to create a competitive home shopping market, especially for potential buyers looking for less expensive homes. The most expensive third of the market has experienced the smallest drop in available inventory compared to the rest of the market.

“Homes are selling faster than ever as the home shopping season hits its peak,” said Zillow Chief Economist Dr. Svenja Gudell. “If you’re looking for a home, be prepared to move quickly. Adding to this difficult buying environment is low inventory – there simply aren’t many homes to choose from. And while this looks like a good time to be a seller, potential move-up buyers may hesitate to list their homes and become buyers. Until the supply increases, it will remain a tough market to find a home.”

The limited supply of homes is driving home values higher. The average U.S. home is worth $187,000, a 5.4 percent increase from June 2015. Home values have been rising at 5 percent or faster on an annual basis for the past eight months.

Metropolitan Area Median Days on Market 1-Year Change in Days on Market 1-Year Inventory Change (%) June Zillow Home Value Indexiii
United States 78 -8 -4.7% $187,000
New York/Northern New Jersey 157 -6 -9.2% $386,800
Los Angeles-Long Beach-Anaheim, CA 64 0 -7.6% $572,400
Chicago, IL 97 -6 -13.3% $198,200
Dallas-Fort Worth, TX 56 6 -20.5% $189,500
Philadelphia, PA 98 -15 -10.2% $208,500
Houston, TX 70 1 4.4% $172,900
Washington, DC 68 -5 -12.1% $368,700
Miami-Fort Lauderdale, FL 103 5 13.5% $235,500
Atlanta, GA 76 -6 -6.4% $166,700
Boston, MA 71 -2 -23.2% $394,400
San Francisco, CA 43 1 4.4% $812,300
Detroit, MI 84 -9 -16.5% $127,300
Riverside, CA 77 -3 -6.5% $309,400
Phoenix, AZ 70 0 8.9% $221,400
Seattle, WA 47 -3 -15.0% $392,000
Minneapolis-St Paul, MN 75 -5 -0.9% $227,400
San Diego, CA 61 -4 10.3% $512,900
St. Louis, MO 74 -4 -13.3% $142,500
Tampa, FL 78 -10 -8.9% $167,700
Baltimore, MD 99 -7 -11.6% $251,400
Denver, CO 52 0 4.4% $338,500
Pittsburgh, PA 97 -15 2.1% $130,400
Portland, OR 51 -4 -23.7% $330,800
Charlotte, NC 70 -15 -11.5% $162,300
Sacramento, CA 55 -4 -13.7% $341,900
San Antonio, TX 69 -4 20.4% $152,300
Orlando, FL 81 -7 -12.3% $186,400
Cincinnati, OH 83 -8 -20.4% $143,800
Cleveland, OH 93 -1 -20.2% $128,500
Kansas City, MO 70 -5 -26.1% $149,100
Las Vegas, NV 73 1 13.8% $203,800
Columbus, OH 74 -3 -14.4% $156,000
Indianapolis, IN 85 -11 -22.2% $130,200
San Jose, CA 43 4 15.2% $957,900
Austin, TX 57 -1 1.1% $252,900

Article source: Zillow

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Zillow® is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and knowledge around the place they call home, and connecting them with the best local professionals who can help. Zillow is a registered trademark of Zillow, Inc. For more information about Zillow, please visit www.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.

OnlineEd is a registered trademark

Zillow Launches Best Time to List Tool

New tool helps homeowners and brokers identify the optimal time to list a home for sale

By Jeff Sorg, OnlineEd Blog

canstockphoto1578542spring flowers(March 2, 2016) – A recent analysis by Zillow® discovers that, nationally, homes sold between May 1 through May 15 sell around 18.5 days faster and for 1 percent more than the average listing.

“The housing market today is heavily influenced by low inventory,” said Zillow chief economist Dr. Svenja Gudell. “Faced with increasingly competitive markets, many buyers are forced to consider several homes and make multiple offers, elongating the home shopping experience. By listing homes further into the shopping season, sellers may attract buyers who are increasingly eager to purchase and may be more willing to pay a premium for the home.”

Zillow also announced the launch of Best Time to List, a new tool that helps homeowners and brokers identify the optimal time to list a home for sale in their area. This new tool estimates how the timing of a listing will influence the final sale price.

Brokers can use this information to have a more informed conversation with their sellers to determine the best time to put their home on the market.

The chart below is the result of the current Best Time To Sell analysis from Zillow:

Metro Area Ideal Timeframe to List Home Days SoldFaster than Average Average Sales

Premium (%)

Average Sales Premium ($)
United States  May 1 – 15 18.5 0.9% $1,700
NewYork/NorthernNew Jersey  May 1 – 15 16.5 0.6% $2,400
Los Angeles-LongBeach-Anaheim,CA  May 16 – 31 12.5 0.9% $5,300
Chicago, IL  May 1 – 15 22.5 1.2% $2,400
Dallas-Fort Worth,TX  May 1 – 15 11.5 1.1% $2,000
Philadelphia, PA  May 1 – 15 12.75 0.7% $2,000
Houston, TX  June 1 – 15 12.75 0.7% $1,200
Washington, DC  April 16 – 30 18.0 1.1% $4,100
Miami-FortLauderdale, FL  April 16 – 30 16.25 0.9% $2,000
Atlanta, GA  April 1 – April 15 19.5 1.4% $2,200
Boston, MA  May 16 – 31 12.0 1.3% $5,200
San Francisco, CA  May 16 – 31 7.5 1.5% $12,200
Detroit, MI  May 1 – 15 19.5 1.6% $2,000
Riverside, CA  May 1 – 15 15 1.0% $2,900
Phoenix, AZ  May 1 – 15 12.5 1.2% $2,600
Seattle, WA  May 1 – 15 20.0 1.2% $2,600
Minneapolis-StPaul, MN  May 1 – 15 19.25 2.0% $4,300
San Diego, CA  March 16 – 31 13 1.0% $5,200
St. Louis, MO  March 16 – 31 17.75 1.2% $1,700
Tampa, FL  May 1 – 15 20 0.9% $1,500
Baltimore, MD  May 1 – 15 22.5 1.1% $2,800
Denver, CO  May 16 – 31 10 1.3% $4,300
Pittsburgh, PA  May 1 – 15 19.5 0.8% $1,000
Portland, OR  May 1 – 15 17.5 1.8% $5,500

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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 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.

Highlights From the REALTOR Confidence Index

November’s decline represented a 10.5 percent drop from October’s downwardly revised total of 5.32 million

By Jeff Sorg, OnlineEd Blog

canstockphoto5341747confidence level(Janury, 5 2016) –  The REALTOR Confidence Index is released for November 2015. TRID, which became effective October 3, 2015, seems to be causing delayed closings, throwing a percentage of November sales into December. These are the highlights:

  • REALTORS® confidence and traffic indices indicate no substantial change in market activity in November 2015 compared to October 2015.
  • Compared to a year ago, market activity improved.
  • Sustained job creation, the low interest rate environment, and measures to reduce the cost of borrowing and make credit more accessible to responsible borrowers continue to bolster the housing market recovery.
  • However, the implementation of the TILA/RESPA Integrated Disclosure (TRID) regulations on October 3, 2015, appears to be delaying the settlement of contracts and impacting sales.
  • First-time home buyers accounted for 30 percent of sales, essentially unchanged from the previous months’ figures.
  • It typically took another 40 days to close a sale, up from 35 days in July 2015.
  • Tight inventories, decreased affordability, and more stringent credit standards continued to be reported as key issues affecting sales, especially of first-time homebuyers.

Get the complete report here: http://www.realtor.org/reports/realtors-confidence-index

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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 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.

Zillow: Lack of Affordable Options Will Drive First-Time Buyers Out to the Suburbs in 2016

Growth in home values will outpace incomes, especially for low-income Americans

By Jeff Sorg, OnlineEd Blog

suburban homes(November 30, 2015) – Zillow is predicting that continued deteriorating housing affordability will drive 2016 housing trends. Among those predictions, a lack of affordable homes near city centers will push new and first-time homebuyers to suburbs that feel like walkable, amenity-rich mini-cities. Rising rents will force more young renters to wait longer before buying a home. And the looming threat of rising mortgage interest rates will slowly erode some of the terrific mortgage affordability the market has enjoyed for the past few years.

Zillow’s 2016 Housing Market Predictions:

  • The median age of first-time buyers will reach new highs in 2016 as millennials put off homeownership and other major life decisions;
  • Growth in home values will outpace incomes, especially for low-income Americans.
  • Incomes falling in the bottom third of all incomes will be priced out of homeownership and unable to afford even the least expensive homes on the market;
  • Rising rents won’t let up in 2016, and will continue to set new records. The next year will bring the least affordable median rents ever;
  • As affordable housing close to city centers grows increasingly scarce, people will move farther out. Dense, walkable suburbs with an urban feel – especially those that offer good access to the city – will be 2016’s new hot spots;
  • The median expectation of more than 100 economic and housing experts surveyed in the latest Zillow® Home Price Expectations Survey was for home values to grow about 3.5 percent in 2016.

Zillow Chief Economist Dr. Svenja Gudell says, “Rents will continue to increase at a brisk rate in 2016, but many potential first-time buyers are living in hot markets where buying a home is really expensive. In 2016, we’ll start to see more people in hot coastal markets forced to move farther from the core of the city to find housing. When they get there, they’ll be looking for amenity-rich suburbs – mini-cities, with walkable cores and an urban feel.

“As renters gradually transition into homeowners, the historically low homeownership rate should stop falling quite as quickly as it has been. However, the median age of first-time homebuyers – already the highest it has ever been at about 33 – will climb higher. Millennials want to buy, but they are waiting longer than previous generations.

“All of this will happen against a backdrop of slowly increasing interest rates. That will make some homeowners think twice about selling, and many of them will decide to remodel their current homes instead.”

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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 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.

Residential Loan Originations Increase 17 % In Q1 From A Year Ago Despite 6 % Drop From Previous Quarter

IRVINE, Calif. – May 14, 2015 — RealtyTrac® (www.realtytrac.com), the nation’s leading source for comprehensive housing data, today released its Q1 2015 U.S. Residential Loan Origination Report, which shows that 1,551,865 loans were originated on single family homes and condos in the first quarter, down 6 percent from the previous quarter but up 17 percent from a year ago.

The total dollar volume of loans originated in the first quarter was $377 billion, down 1 percent from the previous quarter but up 32 percent from a year ago. Refinance originations represented nearly $256 billion in the first quarter, 67.8 percent of total loan origination dollar volume, and purchase loan originations represented $121 billion, 32.2 percent of total origination dollar volume. As a share of total loan origination dollar volume, purchase originations reached a recent peak of 49.2 percent in the second quarter of 2014 followed by three consecutive quarters of decreasing share.

Of the nearly 1.6 million loan originations in the first quarter, 471,822 were purchase loan originations, down 25 percent from the previous quarter and up less than 1 percent from a year ago. There were 1,080,043 refinance originations in the first quarter, an increase of 6 percent from the previous quarter and an increase of 27 percent from a year ago.

“A dip in interest rates early in the year combined with lowered mortgage insurance premiums for FHA loans breathed some life back into the refinancing market in the first quarter,” said Daren Blomquist, vice president at RealtyTrac. “Meanwhile the purchase loan market remained largely missing in action despite tepid growth from a year ago. The prime buying season still remains ahead, providing some hope that first-time homebuyers and other traditional buyers relying on traditional financing will come out of the woodwork in greater numbers in the coming months.”

Markets with biggest increases in loan originations in California, Florida, Massachusetts – Metro areas with a population of at least 500,000 and the biggest increase in loan originations from a year ago were San Jose (up 72 percent), San Diego (up 64 percent), Oxnard-Thousand Oaks-Ventura, California (up 64 percent), Palm Bay-Melbourne-Titusville, Florida (up 61 percent), and Boston (up 54 percent).

Other major markets among the top 20 for biggest year-over-year increase in loan originations included Salt Lake City (up 53 percent), San Francisco (up 49 percent), Los Angeles (up 48 percent), Denver (up 44 percent), Seattle (up 40 percent), Portland (up 39 percent), Bridgeport, Connecticut (up 38 percent), and Richmond, Virginia (up 35 percent).

Markets with biggest increases in purchase loan originations in Florida, Ohio, Missouri – Metro areas with a population of at least 500,000 and the biggest increase in purchase loan originations from a year ago were Palm Bay-Melbourne-Titusville, Florida (up 72 percent), Dayton, Ohio (up 62 percent), Toledo, Ohio (up 36 percent), Tampa (up 32 percent), and Kansas City (up 32 percent).

Other major markets among the top 20 for biggest year-over-year increase in purchase loan originations from a year ago included Salt Lake City (up 18 percent), Orlando (up 17 percent), Atlanta (up 15 percent), Jacksonville, Florida (up 14 percent), St. Louis (up 13 percent), Miami (up 13 percent) and Phoenix (up 13 percent).

The loan origination increase was led by VA, HELOC and FHA – There were a total of 995,968 conventional loan originations (backed by Fannie and Freddie) in the first quarter, representing 64.2 percent of all loan originations. Conventional loan originations decreased 5 percent from the previous quarter but were up 13 percent from a year ago. Conventional purchase loan originations in the first quarter decreased 27 percent from the previous quarter and were down 2 percent from a year ago, while conventional refinance originations increased 10 percent from the previous quarter and were up 21 percent from a year ago.

There were a total of 200,178 FHA loan originations in the first quarter, representing 12.9 percent of all loan originations. FHA loan originations increased 4 percent from the previous quarter and were up 18 percent from a year ago. FHA purchase loan originations in the first quarter decreased 19 percent from the previous quarter but were still up 5 percent from a year ago, while FHA refinance loan originations jumped 34 percent from the previous quarter and were up 30 percent from a year ago.

There were a total of 99,555 Veterans Administration loans originated in the first quarter, representing 6.4 percent of all loan originations. VA loan originations in the first quarter were down 5 percent from the previous quarter but up 57 percent from a year ago. VA purchase loan originations in the first quarter decreased 25 percent from the previous quarter but were still up 4 percent from a year ago, while VA refinance originations increased 12 percent from the previous quarter and were up 119 percent from a year ago.

There were a total of 238,359 Home Equity Lines of Credit originated in the first quarter, representing 15.4 percent of all loan originations. HELOC originations were down 17 percent from the previous quarter but still increased 32 percent from a year ago.