Tag Archives: housing prices

The US Housing Market Gains Nearly $11 Trillion Since Bottoming Out in 2012

Four of the ten most valuable housing markets are in California – Los Angeles, San Francisco, San Jose, and San Diego

By Jeff Sorg, OnlineEd Blog

(January 3, 2019)

(SEATTLE) Jan. 3, 2019 /PRNewswire/ – The U.S. housing market is more valuable than ever, worth a cumulative $33.3 trillion in 2018. Since the market hit its lowest point in 2012, it has gained $10.9 trillion in value, and is now worth $4 trillion more than it was at the peak of the housing bubble.

A home is the single largest source of wealth for many households, and the collapse of the housing market and subsequent recession demonstrated the importance of housing to the overall U.S. economy.

The California housing market accounts for nearly one-third of the value gained during the nationwide housing recovery. The Golden State’s total housing value has grown by $3.7 trillion since early 2012. It is the only state that has gained more than $1 trillion in value since the market fell.

Ten states have yet to regain the value lost during the Great Recession. Despite holding the number two spot when it comes to dollar contribution to the national housing recovery (a contribution of $937.9 billion, or 8.6 percent of the overall recovery), the total value of all the homes in Florida is still $263.9 billion below its peak level.

“Seen from the rearview mirror, 2018 was a year of unusually strong, stable home value growth across the country,” said Zillow® Senior Economist Aaron Terrazas. “But cracks in the foundation are clearly starting to emerge. During the second half of the year, appreciation slowed sharply in the priciest corners of the country while it picked up in affordable hotspots. Periods of stability often precede periods of instability, and the outlook for 2019 is certainly both cloudier and blurrier than the outlook a year ago. Housing wealth may have touched new highs this year, but home value gains don’t translate into dollars in the bank account unless homeowners opt to sell or borrow against their home and, in contrast to previous housing booms, many Americans have been more reluctant in recent years to spend against their home’s worth. Moving toward an uncertain future, that may prove to be a prescient choice.”

In 2018, the national housing market gained $1.9 trillion in value, or 6.2 percent over the past year.

The New York/Northern New Jersey area is the single most valuable metro, worth $3 trillion, or 9.1 percent of the national housing market. Four California markets – Los AngelesSan FranciscoSan Jose, and San Diego – are among the 10 most valuable metros in the country.

Las VegasSan Jose, and Atlanta gained the most value in 2018 among the 35 largest metros, with each market seeing double-digit growth. Chicago’s housing value saw only minimal gains, up 1.6 percent, or $12.5 billion.

State

2018 Cumulative
Value

Value Gained
Throughout Recovery

Share of Recovery
Value

United States

$33.3 trillion

$10.9 trillion

n/a

Alabama

$295.8 billion

$57.4 billion

0.5%

Alaska

$81.2 billion

$10.4 billion

0.1%

Arizona

$708.1 billion

$296.3 billion

2.7%

Arkansas

$145 billion

$26.1 billion

0.2%

California

$7.9 trillion

$3.7 trillion

33.4%

Colorado

$833.8 billion

$343.3 billion

3.1%

Connecticut

$443.3 billion

$31.4 billion

0.3%

Delaware

$97.9 billion

$20.3 billion

0.2%

District of
Columbia

$131.8 billion

$40.1 billion

0.4%

Florida

$2.4 trillion

$937.9 billion

8.6%

Georgia

$717.4 billion

$275.6 billion

2.5%

Hawaii

$348.3 billion

$109.5 billion

1.0%

Idaho

$151.7 billion

$66 billion

0.6%

Illinois

$952.2 billion

$183.6 billion

1.7%

Indiana

$387.7 billion

$87.9 billion

0.8%

Iowa

$191.4 billion

$49.3 billion

0.5%

Kansas

$180.8 billion

$29.6 billion

0.3%

Kentucky

$244.3 billion

$59.1 billion

0.5%

Louisiana

$263.8 billion

$55.9 billion

0.5%

Maine

$167.4 billion

$44.7 billion

0.4%

Maryland

$675.8 billion

$124 billion

1.1%

Massachusetts

$1.1 trillion

$320.5 billion

2.9%

Michigan

$738.2 billion

$292.9 billion

2.7%

Minnesota

$510.8 billion

$159.9 billion

1.5%

Mississippi

$147 billion

$14.6 billion

0.1%

Missouri

$421.6 billion

$97.6 billion

0.9%

Montana

$98.5 billion

$21.2 billion

0.2%

Nebraska

$120.2 billion

$33.6 billion

0.3%

Nevada

$322.5 billion

$174.2 billion

1.6%

New Hampshire

$156 billion

$43.5 billion

0.4%

New Jersey

$1.1 trillion

$182.7 billion

1.7%

New Mexico

$139.8 billion

$19.6 billion

0.2%

New York

$2.5 trillion

$672 billion

6.1%

North Carolina

$805 billion

$204.7 billion

1.9%

North Dakota

$54.4 billion

$17.5 billion

0.2%

Ohio

$695 billion

$172.5 billion

1.6%

Oklahoma

$200 billion

$41.2 billion

0.4%

Oregon

$451.8 billion

$182.9 billion

1.7%

Pennsylvania

$942.8 billion

$160.4 billion

1.5%

Rhode Island

$111.6 billion

$27.6 billion

0.3%

South Carolina

$332.5 billion

$86.5 billion

0.8%

South Dakota

$56.3 billion

$14.7 billion

0.1%

Tennessee

$469.1 billion

$144.4 billion

1.3%

Texas

$1.7 trillion

$495.2 billion

4.5%

Utah

$339.2 billion

$140.4 billion

1.3%

Vermont

$60 billion

$6.1 billion

0.1%

Virginia

$912.5 billion

$158.6 billion

1.5%

Washington

$1 trillion

$471.2 billion

4.3%

West Virginia

$83.9 billion

$18 billion

0.2%

Wisconsin

$465.5 billion

$117.6 billion

1.1%

Wyoming

$52 billion

$10.3 billion

0.1%

 

 

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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.

Zillow is a registered trademark of Zillow, Inc.

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

National Home Prices NSA Index Reaches New Highs as Momentum Continues

U.S. National Home Price NSA Index reported a 6.1% annual gain in August, up from 5.9% in the previous month

By Jeff Sorg, OnlineEd Blog

(November 1, 2017)

(NEW YORK, OCTOBER 31, 2017) – S&P Dow Jones Indices today released the latest results for the S&P CoreLogic Case-Shiller Indices, the leading measure of U.S. home prices. Data released today for August 2017 shows that home prices continued their rise across the country over the last 12 months. More than 27 years of history for these data series is available, and can be accessed in full by going to www.homeprice.spdji.com. Additional content on the housing market can also be found on S&P Dow Jones Indices’ housing blog: www.housingviews.com.

YEAR-OVER-YEAR
The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 6.1% annual gain in August, up from 5.9% in the previous month. The 10-City Composite annual increase came in at 5.3%, up from 5.2% the previous month. The 20-City Composite posted a 5.9% year-over-year gain, up from 5.8% the previous month. Seattle, Las Vegas, and San Diego reported the highest year-over-year gains among the 20 cities. In August, Seattle led the way with a 13.2% year-over-year price increase, followed by Las Vegas with an
8.6% increase, and San Diego with a 7.8% increase. Nine cities reported greater price increases in the year ending August 2017 versus the year ending July 2017. The below charts compare year-over-year returns for Seattle and Las Vegas with different ranges of housing prices (tiers).

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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

Stats Say The Best Time to List is in Early May

On average homes listed in early May sell nine days faster and for one percent more 

OnlineEd Blog

canstockphoto1864187moneywoman(March 2, 2017) – Zillow– Listing a home toward the end of spring significantly increases a seller’s chances of selling their home faster and for more money, according to new analysis from Zillow. Nationally, homes listed from May 1 through May 15, sell around nine days faster and for nearly 1 percent more than the average listing. In 20 of the 25 largest metro areas, the best month to list is late spring, in either April or May.

Housing market dynamics, including low inventory, make the buying season more pronounced in some parts of the country. Sellers in the highly competitive Seattle, Portland, Ore., and Denver markets saw between a 1.5 and 2.5 percent boost to final sale prices when they listed in early May. The lack of new homes for sale in these markets elongates the home-buying season as many buyers are forced to consider several homes and make multiple offers. Less than half of buyers got the first home on which they made an offer, according to the Zillow Group Report on Consumer Housing Trends.

Weather patterns also affect the exact best window to sell in different areas. Sellers in Texas, California and Florida will find themselves with more flexibility in list timeframe, as many regions without distinct climate changes show little variation in sale price based on listing month.

“With 3 percent fewer homes on the market than last year, 2017 is shaping up to be another competitive buying season,” said Zillow Chief Economist Dr. Svenja Gudell. “Many home buyers who started looking for homes in the early spring will still be searching for their dream home months later. By May, some buyers may be anxious to get settled into a new home— and will be more willing to pay a premium to close the deal.”

Additionally, listing on different days of the week can impact the number of buyers who will view the new listing. Listings that appear on Zillow on Saturday earn an average of 20 percent more views in the first week on market than early-in-the-week listings; similarly, Friday listings on Zillow earn 14 percent more views that those published on Monday.

To apply this analysis to individual homes, homeowners can use Best Time to List, a tool that estimates how much the timing of a listing will influence the final sale price for their home and their own market. Registered Zillow users access the tool by clicking the “Sell Your Home” tab on the home details page of their home, and obtain valuable information to pair with the expertise of a local real estate agent when determining the best time to put their home on the market.

Metro Area Ideal
Timeframe to
List Home
Days Sold
Faster than
Average
Average Sales
Premium (%)
Average Sales
Premium ($)
Ideal Day of the
Week to  List
United States  May 1 – 15 9 0.8% $1,500 Saturday
New York/Northern New Jersey May 1 – 15 7.5 0.7% $2,600 Saturday
Los Angeles-Long Beach-Anaheim, CA  April 16 – 30 15 1.0% $5,600 Friday
Chicago, IL  May 1 – 15 12.5 1.3% $2,500 Friday
Dallas-Fort Worth, TX  May 1 – 15 9 1.3% $2,400 Saturday
Philadelphia, PA  May 1 – 15 9.75 1.0% $2,000 Friday
Washington, DC April 1 – April 15 15 1.2% $4,500 Thursday
Miami-Fort Lauderdale, FL  March 1 – 15 8 0.7% $1,500 Saturday
Atlanta, GA  April 1 – April 15 19 1.4% $2,200 Friday
Boston, MA  April 16 – 30 13.5 1.2% $4,500 Wednesday
San Francisco, CA  May 16 – 31 5.5 1.3% $10,200 Friday
Detroit, MI  March 16 – 31 17.5 1.5% $1,900 Sunday
Riverside, CA  April 1 – 15 15 1.1% $3,400 Friday
Phoenix, AZ  April 16 – 30 14.5 0.8% $1,700 Saturday
Seattle, WA  May 1 – 15 15 2.5% $9,300 Thursday
Minneapolis-St Paul, MN  May 16 – 31 6 1.4% $3,200 Friday
San Diego, CA  April 1 – 15 13 1.3% $6,200 Saturday
St. Louis, MO  May 1 – 15 10.5 1.3% $1,800 Saturday
Tampa, FL  March 1 – 15 10.5 0.9% $1,500 Saturday
Baltimore, MD  April 1 – 15 21.5 0.9% $2,300 Saturday
Denver, CO  May 1 – 15 8 1.7% $5,600 Friday
Pittsburgh, PA  March 16 – 31 17 0.9% $1,100 Saturday
Portland, OR  May 1 – 15 16.5 2.0% $6,300 Friday
Charlotte, NC May 1 – 15 12.25 1.1% $1,700 Saturday
Sacramento, CA April 1 – 15 17.5 2.0% $6,600 Saturday
San Jose, CA May 1 – 15 9 1.6% $14,900 Wednesday

[Source: Zillow media 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

Housing Prices Reach Near Pre-Crash Levels

The U.S. index is only 1.8 percent below its March 2007 peak

By Jeff Sorg, OnlineEd Blog, July 27, 2015

rising housing prices 1Washington, D.C. – U.S. house prices rose in May, up 0.4 percent on a seasonally adjusted basis from the previous month, according to the Federal Housing Finance Agency’s monthly House Price Index (HPI). The previously reported 0.3 percent change in April was revised upward to reflect a 0.4 percent change.

The Federal Housing Finance Agency calculates their Housing Price Index using home sales price information from mortgages sold to or guaranteed by Fannie Mae and Freddie Mac. From May 2014 to May 2015, house prices were up 5.7 percent. The U.S. index is 1.8 percent below its March 2007 peak and is roughly the same as the April 2006 index level.

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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 and current as of the date of posting, 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.