Tag Archives: housing

Homeless Population Increases as Rents Rise

Portland and Seattle have declared states of emergency in response to the number of people experiencing homelessness

By Jeff Sorg, OnlineEd Blog

canstockphoto8313695evicted(PORTLAND, Aug. 3, 2017/Zillow®/) Rising rents urban areas are creating crisis levels of homelessness that will continue or accelerate as rents rise, Zillow® research has found. The connection between homelessness and increasing rents is especially strong in places that are already facing rapidly growing homeless populations: New York, Los Angeles, Washington, D.C. and Seattle.

A five percent increase in New York rents over the next year would force almost 3,000 more people into homelessness, according to a new analysis from Zillow. In Los Angeles, the homeless population would grow by roughly 2,000, and Seattle would see its homeless population increase by nearly 260.

Relying solely on the number of homeless people counted during a one-night survey is an imperfect method. Previous research has found that as few as 59 percent of unsheltered homeless people are included in a given count.

Rents are at record highs across the country, and income growth did not keep pace as rents grew, making paying the rent increasingly unaffordable. Seattle and Portland, Ore. have declared states of emergency in response to the number of people experiencing homelessness. The median rent payment in Los Angeles requires 49 percent of the typical household income, leaving little opportunity to save in case of an unexpected medical bill, or loss of a job – events which could push a family into homelessness.

“We’ve seen so much pressure in rental housing markets that it’s created a rental affordability crisis that has spilled over into a homelessness crisis at lower income levels,” said Zillow Senior Economist Dr. Skylar Olsen. “Often, the rental demand in these markets isn’t being met with a sufficient supply. There are several cities grappling with this problem, but there is no one-size-fits-all solution for everyone. This report puts a number on the link between rising rents and homelessness, highlighting the very real human impact that rent increases are having across the country.”

 

[Source: Zillow 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

Pending Home Sales Weaken

Pending home sales fell 2.8% in January in the National Association of Realtors® Pending Home Sales Index

OnlineEd Blog

arrow, grey, downWASHINGTON D.C. (February 27, 2017) — Insufficient supply levels led to a lull in contract activity in the Midwest and West, which dragged down pending home sales in January to their lowest level in a year, according to the National Association of Realtors®.

The Pending Home Sales Index,* a forward-looking indicator based on contract signings, decreased 2.8 percent to 106.4 in January from an upwardly revised 109.5 in December 2016. Although last month’s index reading is 0.4 percent above last January, it is the lowest since then.

Lawrence Yun, NAR chief economist, says home shoppers in January faced numerous obstacles in their quest to buy a home. “The significant shortage of listings last month along with deteriorating affordability as the result of higher home prices and mortgage rates kept many would-be buyers at bay,” he said. “Buyer traffic is easily outpacing seller traffic in several metro areas and is why homes are selling at a much faster rate than a year ago 1. Most notably in the West, it’s not uncommon to see a home come off the market within a month.”

According to Yun, interest in buying a home is the highest it has been since the Great Recession. Households are feeling more confident about their financial situation, job growth is strong in most of the country, and the stock market has seen record gains in recent months. While these factors bode favorably for increased sales in coming months, buyers are dealing with challenging supply shortages that continue to run up prices in many areas.

“January’s accelerated price appreciation 2 is concerning because it’s over double the pace of income growth and mortgage rates are up considerably from six months ago,” said Yun. “Especially in the most expensive markets, prospective buyers will feel this squeeze to their budget and will likely have to come up with additional savings or compromise on home size or location.”

Existing-home sales are forecast to be around 5.57 million this year, an increase of 2.2 percent from 2016 (5.45 million). The national median existing-home price this year is expected to increase around 4 percent. In 2016, existing sales increased 3.8 percent and prices rose 5.1 percent.

“Sales got off to a fantastic start in January, but last month’s retreat in contract signings indicates that activity will likely be choppy in coming months as buyers compete for the meager number of listings in their price range,” added Yun.

The PHSI in the Northeast rose 2.3 percent to 98.7 in January and is now 3.6 percent above a year ago. In the Midwest, the index fell 5.0 percent to 99.5 in January and is now 3.8 percent lower than January 2016.

Pending home sales in the South inched higher (0.4 percent) to an index of 122.5 in January and are now 2.0 percent above last January. The index in the West dropped 9.8 percent in January to 94.6, and is now 0.4 percent lower than a year ago.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.2 million members involved in all aspects of the residential and commercial real estate industries.

[Source: NAR 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

Home Purchase Sentiment Index Drops Again

Consumers Say Now is a Good Time to Buy or Sell a Home

(November 9, 2016) – WASHINGTON, DC – The Fannie Mae Home Purchase Sentiment Index® (HPSI) dipped 1.1 points to 81.7 in October, the third decrease in as many months. Four of the six components that comprise the HPSI fell during the month. The share of consumers reporting significantly higher income over the past year experienced the largest drop, decreasing eight percentage points on net. The net share of consumers expecting home prices to go up in the next year fell three percentage points, and those who expect mortgage rates to drop and those who are confident about not losing their job each dropped by one percentage point in October. However, more consumers said they believe now is a good time to buy and a good time to sell a home – increasing two and four points on net, respectively.

“The HPSI fell in October for the third straight month from its record high in July, reaching the lowest level since March. Recent erosion in sentiment likely reflects, in part, enhanced uncertainty facing consumers today,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Since July, more consumers, on net, have steadily expected mortgage rates to rise and home price appreciation to moderate. Furthermore, consumers’ perception of their income over the past year deteriorated sharply in October to the worst showing since early 2013, weighing on the index. However, this component of the HPSI is volatile from month to month, and the firming trend in wage gains from the October jobs report, if sustained, may foreshadow an improving view in the near future.”

Source: Fannie Mae news 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

Half of Today’s Home Buyers are Under 36

Millennials driving the housing market

By Jeff Sorg, OnlineEd Blog

canstockphoto36767385-millennial-male-1(October 18, 2016) –  Half of today’s U.S. home buyers are under 36 and reflect an increasingly racially diverse middle-class according to the first annual Zillow Group Report on Consumer Housing Trends.

As the U.S. housing market nears full recovery and the Millennial generation matures, 47 percent of people buying and 63 percent of those selling a home are doing so for the first time. These new buyers, sellers, and homeowners have old-fashioned aspirations, seeking a home that is both a good investment and a reflection of themselves. And they instinctively turn to internet research and social networks on and offline, approaching home ownership with both savviness and caution.

The 200-page Zillow Group Report on Consumer Housing Trends, which is free and available to the public, is a deep dive into the characteristics, aspirations and priorities of U.S. consumers when it comes to their homes. The report challenges longstanding conventional wisdom across all generations and sheds light on major demographic and economic trends and how they will affect the future of real estate.

“We knew the Millennial generation was playing an increasingly large role in the housing market,” said Zillow Chief Economist Dr. Svenja Gudell, “But this consumer research allows us to get a fascinating, behind-the-scenes look at how their expectations and approach are playing out in the housing market. These young adults came of age during a recession, but they are buying their first homes in a high-priced and fast-paced market. They’re using every available resource, including online research and real estate professionals, and taking on the challenge with gusto.”

“Young home buyers and sellers share their grandparents’ romantic notions about homeownership, and we’re finally seeing their home buying dreams come true in the data,” said Jeremy Wacksman, Zillow Group chief marketing officer. “These savvy consumers are doing things differently: they juggle shopping for homes to buy and rent at the same time, and they bring deep research and their vast social networks to the process.”

Here are some key findings from the report:

  • While shopping for a home, 52 percent of buyers said they also considered renting, and only 46 percent of buyers got the first home on which they made an offer, demonstrating that in today’s fast-moving market, disappointment and competition are now part of the process.
  • While 56 percent of buyers save up for a down payment a little at a time, 32 percent find savings are not enough and rely on other sources, such as gifts, loans, and cashing in their retirement savings.
  • Millennials, who will define the future of real estate, include their social networks in their real estate transactions and expect their real estate agents to help with more than logistics – looking to them for strategic advice and remodeling ideas.
  • First-time buyers rent longer than previous generations. When they do buy, they typically spend just as much as Baby Boomers on a home that is only slightly smaller than homes purchased by repeat buyers.
  • It’s not just Millennials who are shopping online for real estate. Nine out of 10 buyers and sellers under 65 depend on both real estate agents and online sites and apps.
  • Most Americans (83 percent) want a single-family home, and more than half (52 percent) live in the suburbs. Of home-owning Millennials, 47 percent live in the suburbs.
  • Renters are disproportionately women and people-of-color, and most make less than $50,000 a year. Their top concerns are budget, safety, and finding a home that allows pets.
  • The first annual Zillow Group Report is the largest-ever survey of U.S. home buyers, sellers, owners and renters, and asked more than 13,000 U.S. residents aged 18 to 75 about their homes – how they search for them, pay for them, maintain and improve them, and what frustrations and aspirations color their decisions.

Source: Zillow Group

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Zillow® is a Registered Mark 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

Housing Status Quo Not Working and Voters Blame Banks

“It’s too difficult for people like me to buy a home”

By Jeff Sorg, OnlineEd Blog

canstockphoto23094189reportgraph1(July 27, 2016) – According to a recent report by Schoen Consulting, voters believe that the housing status quo is not working, especially for people of color, and they blame banks and the federal government for not helping with policies to help with homeownership, affordable housing, and more lending. Additionally, a majority 53% of American voters believe that “It’s too difficult for people like me to buy a home,” and 41% of likely voters agree that “Banks don’t want to provide mortgages to people like me.” View or download the report here.

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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

Real Estate Firms Are Confident About Future Profitability

The demand for real property is back, says NAR Report

By Jeff Sorg, OnlineEd Blog

WASHINGTON D.C. (August 6, 2015) –Real estate firms are confident in the industry’s future growth and their increasing profitability, according to the 2015 National Association of Realtors® Profile of Real Estate Firms.

canstockphoto11275276“A majority of firms have a positive view of the future, with 95 percent of all firms expecting their net income to either increase or stay the same in the next year,” said NAR President Chris Polychron, executive broker with 1st Choice Realty in Hot Springs, Ark. “The improving economy continues to fuel job growth, and while some markets are still recovering, the demand for real property is back, and prospects are looking good for the real estate industry.”

The annual survey found that commercial firms are the most optimistic, with 75 percent expecting net income to increase, and 22 percent anticipating it to stay the same. Residential firms are only slightly less optimistic; 69 percent report that they expect to see an increase in their net income next year, 25 percent expect it to stay the same, and 6 percent predict a decrease. Only 3 percent of commercial firms predict a decrease in net income in the next year.

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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.

Millennials Willing to Sacrifice Starbucks Visits To Finance Home Purchase

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Millennials are ready to give up some conveniences in order to finance a home purchase

(Washington DC, July 14, 2015) — A majority of millennials (ages 24-34) are willing to sacrifice modern day conveniences like cell phones, internet, cable and Starbucks in order to save for a down payment on a home. A new survey from the Collingwood Group shows 65% of millennials polled are somewhat to very likely to give up on at least one of the above to finance a home purchase. But when it comes to financing their first homes millennials (also known as “generation Y”) think more like their parents. The Collingwood Group survey finds close to 75% of millennials would be more comfortable applying for a mortgage with a traditional bank over an alternative lender:

And despite the millennial generation’s internet focus, they are not willing to pay more for a streamlined, online mortgage process. Interestingly, if millennials had already gone through the mortgage application process, they were slightly more inclined to pay more for a more streamlined process (23% vs 21%). Instead, just like previous generations it’s the cost that matters most to them.

The survey further questions perceptions that millennials prefer city life with close to 70% of those surveyed saying they prefer buying their first home in the suburbs. The Colllingwood Group Chairman Tim Rood says, “It’s fascinating that millennials want to live in the city while they’re single but want the American Dream of white picket fences and yards when they are ready to buy, according to our exclusive poll. That is so critical given the ambiguity and fear that millennials will get hooked on urban conveniences and abandon the suburbs, leaving baby boomers and other downsizing households in the lurch.”

He adds, “The data on millennials that own their home (23%) who would pay more for a better process is also notable. On the most expensive purchase of their lives they are willing to pay more because the current process is so God awful.” Rood notes, “Price matters to millennials who have lower incomes and more debt and the mortgage industry MUST figure out ways to become more efficient and streamline operations to reduce costs. The whole process is clearly ripe for disruption.”

The poll was conducted July 5-8, 2015 among a random group of 650 people.

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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.

  This article was published on July 1, 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.

 

Home Sales Slow in April, But Remain up From a Year Ago

(c) Can Stock Photo(Jeff Sorg, OnlineEd) –  Despite properties typically selling faster than at any time since July 2013, existing–home sales slowed in April but remained above an annual sales pace of five million for the second straight month, according to the latest report from the National Association of Realtors®. All major regions except for the Midwest experienced sales declines in April.

Total existing-home sales declined 3.3 percent in April, but have increased year–over–year for seven consecutive months and are still 6.1 percent above a year ago, according to the latest report from the  National Association of Realtors®

“April’s setback is the result of lagging supply relative to demand and the upward pressure it’s putting on prices,” said Lawrence Yun, NAR chief economist.” However, the overall data and feedback we’re hearing from Realtors® continues to point to elevated levels of buying interest compared to a year ago. With low interest rates and job growth, more buyers will be encouraged to enter the market unless prices accelerate even higher in relation to incomes.”

Properties sold in April faster (39 days) than at any time since July 2013 (42 days) and the second shortest time (37 days in June 2013) since NAR began tracking in May 2011.

“Housing inventory declined from last year and supply in many markets is very tight, which in turn is leading to bidding wars, faster price growth and properties selling at a quicker pace,” says Yun. “To put it in perspective, roughly 40 percent of properties sold last month went at or above asking price, the highest since NAR began tracking this monthly data in December 2012.”

NAR President Chris Polychron, executive broker with 1st Choice Realty in Hot Springs, Ark., cautions that closings for some home sales could drag after August 1 and into the fall as lenders transition to the new closing procedures and documentation required by the Consumer Financial Protection Bureau’s Real Estate Settlement and Procedures Act and Truth in Lending Act, or RESPA–TILA, integrated disclosure rule. “There likely will be bumps in the closing process while all parties get used to the new requirements,” he said. “We hope that the move away from the HUD–1 is smooth, but even if only 10 percent of transactions experience closing issues, that’s as many as 40,000 transactions a 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.

  This article was published on May 21, 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.

 

 

 

Generational Housing Course Helps Agents to Learn About Each Generation in Today’s Marketplace

ghs logo (Jeff Sorg, OnlineEd) – Specific age groups have common life experiences and influences that affect their needs and wants, and the way they approach major life decisions. Each generation is also affected differently by changes in financing, retirement systems, estate planning, tax laws, and housing design and location. And there is little doubt that the current economic turmoil is having different effects on each generation as they pass through their unique stage of life.

A private designation course is being offered through the Generational Housing Specialist website to educate the real estate licensees about generational differences in housing. The course encompasses the past 100 years of real estate to fully understand the generational shifts that have occurred on a recurring basis and that offer an explanation of the effects of peer personalities on the current five different generations that make up today’s real estate market. As part of the education required to earn the GHS™, the real estate professional will review the characteristics of each generation, their motivations, and the factors that enter into the purchase and sale of real property. These studies will take the student through today’s challenging economic times and explore the trends that are taking us into the future.

These are the five generations studied in the course:

  1. Millennials – an emerging market buying earlier than any generation that has gone before. Its members include many foreign born.
  2. Generation X – they are the most active buyers, but housing choices have changed to accommodate more family time and lessen commutes.
  3. Boomers -these buyers are in their highest earning years, but not all share the prosperity. Investments in real estate and the stock market have been depleted because of the Great Recession.
  4. Silents -the highest homeownership rates and with large equity. The Silents tend to be conservative and stable although some are upgrading as they down-size.
  5. G.I. Generation – the original seniors, many now lost to us.

The Generational Housing Specialist (GHS) course offered through http://www.ghsdesignation.com/buyghs.html is a timely designation course that gives insights into how the personalities, attitudes and preferences of home buyers, and the consuming public, come to be defined by their generational identification. The course encompasses the past 100 years of real estate to fully understand the generational shifts that have occurred on a recurring basis and that offer an explanation of the effects of peer personalities on the current five different generations that make up today’s real estate market. As part of the education required to earn the GHS™, the real estate professional will review the characteristics of each generation, their motivations, and the factors that enter into buying and selling real estate.

As part of a special promotion with GHS, OnlineEd customers will receive a $100 discount through this special link.

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This article was published on August 16, 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.

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