Tag Archives: statistics

Home Value Appreciation Has Slowed Each Month This Year

Annual home value appreciation decreased for the seventh straight month in July

(August 16, 2019)

SEATTLE, Aug. 16, 2019 /PRNewswire/ — U.S. home value growth continues to slow, according to the July Zillow® Real Estate Market Reportⁱ. The typical U.S. home is worth $229,000, up 5.2% from a year ago – this is the smallest annual appreciation since October 2015. Last year at this time, home values rose 7.7% year-over-year. Still, home values are up 0.3% month-over-month, an indication that values are stabilizing after a period of relatively extreme growth rather than headed for a sustained downturn.

Among the 50 largest U.S. markets, home values have grown the most in Salt Lake City (up 9.4% since July 2018), Indianapolis (up 8.1%) and Charlotte (up 7.3%), although growth is slowing in each of these metros. Only New Orleans, Birmingham and Oklahoma City saw home values appreciate at a greater rate than a year ago.

Home values have fallen year-over-year in California’s San Francisco Bay Area, home to the two most expensive markets in the country. The value of the typical home fell 10.5% in San Jose and 1.1% in San Francisco. A year ago, home values were growing 24% annually in San Jose, a 34.5 percentage point difference.

“As talk builds of a potential recession in the next year or two, housing remains fairly stalwart,” said Zillow Director of Economic Research Skylar Olsen. “The slowing appreciation is ultimately a good sign that the market is adjusting in response to the growing unaffordability of down payments, while low mortgage rates are keeping those with the required savings interested despite softer growth out the gate. The uptick in the rate of homes coming onto the market – a good and true increase in supply – should be a boon to those inventory-starved home buyers still searching near the close of home shopping season. While buyers are catching a break, renters have seen prices continue their steady upward climb, presenting yet another obstacle in the quest to save for that down payment.”

The median U.S. rent rose 1.9% year-over-year to $1,592ⁱⁱ. For the eighth consecutive month, rents rose the most in Phoenix (up 6.1% from a year ago), followed by Las Vegas (up 5.9%). Rents fell in only three of the 50 largest markets – Houston, Buffalo and Baltimore.

Inventory grew 1.3% annually, reversing four straight months of declines. There are 19,978 more homes for sale than this time last year. New listings drove the inventory growth in July, up 5.7% from a year ago.

Mortgage rates listed on Zillow fell lower in July. Rates ended the month at 3.72%, down 23 basis points from July 1. Zillow’s real-time mortgage rates are based on thousands of custom mortgage quotes submitted daily to anonymous borrowers on the Zillow Mortgages site and reflect the most recent changes in the market.

Metropolitan Area	Zillow Home Value Index, July 2019	ZHVI Year-over-Year Change, July 2019	ZHVI Year-over-Year Change, July 2018	Zillow Rent Index, July 2019	ZRI Year-over-Year Change, July 2019	Inventory Year-over-Year Change, July 2019
United States	$229,000	5.2%	7.7%	$1,592	1.9%	1.3%
New York, NY	$442,800	3.2%	5.5%	$2,279	2.3%	4.8%
Los Angeles-Long Beach-Anaheim, CA	$650,600	0.9%	6.3%	$2,599	1.3%	11.3%
Chicago, IL	$225,200	2.1%	5.3%	$1,615	1.3%	6.9%
Dallas-Fort Worth, TX	$243,500	5.1%	11.8%	$1,439	1.5%	12.3%
Philadelphia, PA	$233,300	2.1%	5.3%	$1,497	2.5%	-4.8%
Houston, TX	$206,400	3.4%	6.1%	$1,378	-0.5%	5.5%
Washington, DC	$407,700	2.1%	3.8%	$1,971	2.0%	-8.8%
Miami-Fort Lauderdale, FL	$284,300	3.2%	8.2%	$1,851	2.2%	3.8%
Atlanta, GA	$220,300	6.9%	11.8%	$1,454	4.1%	8.3%
Boston, MA	$463,300	1.9%	6.2%	$2,416	2.2%	8.4%
San Francisco, CA	$938,100	-1.1%	9.4%	$3,166	1.2%	21.5%
Detroit, MI	$162,900	4.6%	9.4%	$1,211	2.3%	17.4%
Riverside, CA	$371,500	3.3%	7.3%	$1,907	4.3%	-1.6%
Phoenix, AZ	$267,500	4.5%	7.7%	$1,401	6.1%	-2.9%
Seattle, WA	$489,500	0.5%	8.7%	$2,036	2.4%	14.3%
Minneapolis-St Paul, MN	$272,000	4.3%	6.6%	$1,494	0.6%	4.9%
San Diego, CA	$591,500	1.1%	6.1%	$2,519	3.1%	6.0%
St. Louis, MO	$167,700	3.5%	5.5%	$1,009	1.3%	-15.0%
Tampa, FL	$216,400	5.0%	10.6%	$1,392	3.7%	2.8%
Baltimore, MD	$267,100	0.7%	4.9%	$1,605	-0.1%	-4.0%
Denver, CO	$409,200	3.0%	6.7%	$1,781	1.5%	26.9%
Pittsburgh, PA	$144,700	2.5%	7.3%	$1,102	1.8%	-15.0%
Portland, OR	$396,700	1.5%	5.3%	$1,647	0.7%	3.1%
Charlotte, NC	$210,600	7.3%	10.2%	$1,322	3.5%	6.2%
Sacramento, CA	$411,300	2.7%	5.4%	$1,788	3.5%	0.8%
San Antonio, TX	$195,600	5.0%	5.7%	$1,215	0.3%	17.9%
Orlando, FL	$240,000	5.1%	9.4%	$1,414	3.5%	4.5%
Cincinnati, OH	$170,400	5.4%	6.3%	$1,145	3.2%	-8.3%
Cleveland, OH	$147,100	4.2%	6.6%	$1,071	4.1%	-1.3%
Kansas City, MO	$191,900	4.7%	9.5%	$1,121	1.0%	N/A
Las Vegas, NV	$279,100	5.1%	13.6%	$1,329	5.9%	53.5%
Columbus, OH	$193,800	6.5%	7.9%	$1,183	0.6%	-3.3%
Indianapolis, IN	$167,300	8.1%	9.6%	$1,100	1.0%	N/A
San Jose, CA	$1,144,800	-10.5%	24.0%	$3,338	0.5%	32.6%
Austin, TX	$312,300	4.7%	6.2%	$1,586	2.1%	-4.9%
Virginia Beach, VA	$229,800	1.5%	2.8%	$1,335	1.1%	-9.6%
Nashville, TN	$255,700	4.0%	9.8%	$1,445	1.3%	14.6%
Providence, RI	$295,100	3.4%	7.3%	$1,427	3.2%	-3.7%
Milwaukee, WI	$232,500	4.5%	5.2%	$1,094	2.5%	15.3%
Jacksonville, FL	$214,400	5.5%	10.5%	$1,348	3.9%	-2.1%
Memphis, TN	$141,000	5.1%	8.3%	$1,047	4.2%	-10.6%
Oklahoma City, OK	$148,400	4.0%	2.9%	$937	1.8%	-11.5%
Louisville-Jefferson County, KY	$164,400	5.5%	5.7%	$1,087	1.4%	-1.2%
Hartford, CT	$229,100	0.2%	2.5%	$1,334	1.1%	-4.4%
Richmond, VA	$232,000	4.0%	5.3%	$1,323	1.3%	N/A
New Orleans, LA	$176,000	2.7%	0.0%	$1,274	0.5%	0.4%
Buffalo, NY	$161,400	4.4%	6.7%	$1,015	-0.3%	-1.2%
Raleigh, NC	$269,100	5.2%	5.6%	$1,286	1.0%	0.6%
Birmingham, AL	$148,700	6.9%	5.5%	$1,058	2.3%	-5.9%
Salt Lake City, UT	$373,200	9.4%	11.3%	$1,494	1.7%	20.3%

[Source: Zillow press release]

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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 Angeles, San Francisco, San Jose, and San Diego – are among the 10 most valuable metros in the country.

Las Vegas, San 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

Existing Home Sales Slip Again in July

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

By Jeff Sorg, OnlineEd Blog

(August 23, 2018)

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

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

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

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

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

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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.

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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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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.

OnlineEd® is a registered Trademark

Buyers Are Paying a Smaller Premium for Waterfront Living

Waterfront home price premium drops 18% since 2012

By Jeff Sorg, OnlineEd Blog

(July 20, 2018)

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

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

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

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

Markets with the Highest Premium for Waterfront Living

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

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

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

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

Zillow is a registered trademark of Zillow, Inc.

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

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

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Housing Starts Plummet 12%

Housing Starts Collapse in June

By Jeff Sorg, OnlineEd Blog

(July 18, 2018)

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

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

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

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

[View the complete report.]

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

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

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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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)

(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.

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Nearly One Quarter of 2017 Home Sales Were Above the Asking Price

The typical price increase for homes that sold above the listed price was 3.1 percent

By Jeff Sorg, OnlineEd Blog

(January 12, 2018)

(SEATTLE, Jan. 11, 2018 /PRNewswire/) — Buyers paid more than the asking price in nearly one quarter (24 percent) of U.S. home sales in 2017, netting sellers an additional $7,000 each. Five years ago, 17.8 percent of final sale prices were higher than the asking price, according to a new Zillow® analysis.

Over the past year the American housing market has been struck by the combination of strong demand and limited supply. Young adult renters are increasingly feeling confident enough to buy, but they are entering a market with very few homes for sale, as inventory has been steadily declining for almost three years. Low-interest rates have buoyed buyers’ budgets, raising the limits on what they can afford – and may be willing – to pay.

Homes sell quickly in such a competitive market, with the typical U.S. home selling in 80 days, including the time it takes to close on the sale. In San Jose, San Francisco and Seattle, the average home sells in less than 50 days. Fierce competition means buyers may not win a home on their first offer. The typical buyer spends more than four months home shopping and has to make multiple offers before an offer is accepted, according to the 2017 Zillow Group Consumer Housing Trends Report.

“Low-interest rates and strong labor markets with high-paying jobs have allowed home buyers in some of the country’s priciest housing markets to bid well over asking price,” said Zillow Senior Economist Aaron Terrazas. “In the booming tech capitals of the California Bay Area and Pacific Northwest, paying above list price is now the norm. In the face of historically tight inventory, buyers have had to be more aggressive in their offers. We don’t expect this inventory crunch to ease meaningfully in 2018, meaning buyers will be facing many of the same struggles this year.”

In San Jose, Calif., San Francisco, Salt Lake City and Seattle, more than half of all homes sold last year went for above the list price. The average home sold above list in San Jose netted sellers an additional $62,000, the largest difference between list and sale price of the metros analyzed.

Over the past five years, Seattle saw the greatest increase in the share of sales that were above the asking price, from 20 percent of home sales in 2012 to 52 percent of sales in 2017. The amount over asking price grew as well, from 2.5 percent to 5.3 percent above the listed price.

Miami homes were least likely to sell for more than the listed price last year, followed by Virginia Beach and New Orleans.

Metropolitan Area	Share of Sales Above List Price – 2012	Share Of Sales Above List Price – 2017	Median Amount Paid Over List Price – 2017 (%)	Median Amount Paid Over List Price – 2017 ($)
United States	17.8%	24.1%	3.1%	$7,000
New York / Northern New Jersey	6.8%	20.2%	3.3%	$12,000
Los Angeles, CA	27.0%	37.5%	2.6%	$14,100
Chicago, IL	13.1%	18.5%	2.6%	$5,100
Dallas, TX	35.0%	38.9%	5.7%	$12,023
Philadelphia, PA	6.1%	16.8%	2.4%	$5,100
Houston, TX	27.2%	32.6%	5.0%	$9,796
Washington, DC	18.8%	25.4%	1.9%	$6,100
Miami, FL	19.0%	11.8%	4.2%	$9,100
Atlanta, GA	19.3%	19.6%	2.4%	$5,000
Boston, MA	13.4%	40.6%	3.7%	$15,001
San Francisco, CA	43.0%	64.5%	6.0%	$41,000
Detroit, MI	22.6%	24.0%	2.8%	$5,000
Riverside, CA	32.8%	28.8%	1.8%	$5,100
Phoenix, AZ	29.0%	16.0%	1.8%	$3,600
Seattle, WA	20.3%	52.4%	5.3%	$20,100
Minneapolis, MN	16.3%	35.3%	3.0%	$6,100
San Diego, CA	24.4%	32.1%	2.1%	$10,100
Saint Louis, MO	13.5%	26.2%	4.3%	$6,748
Tampa, FL	13.5%	15.6%	2.7%	$5,000
Baltimore, MD	10.0%	19.5%	2.2%	$5,100
Denver, CO	17.9%	39.5%	2.9%	$10,000
Pittsburgh, PA	7.6%	13.7%	2.7%	$4,100
Portland, OR	19.6%	41.0%	3.1%	$10,100
Charlotte, NC	9.4%	27.0%	2.7%	$5,000
Sacramento, CA	34.6%	41.2%	2.5%	$9,000
San Antonio, TX	38.9%	42.2%	5.8%	$10,913
Orlando, FL	22.3%	16.9%	2.6%	$5,000
Cincinnati, OH	9.3%	16.4%	2.3%	$3,500
Cleveland, OH	8.6%	18.8%	3.2%	$4,300
Kansas City, MO	31.5%	37.8%	4.4%	$7,500
Las Vegas, NV	31.4%	25.4%	2.2%	$5,000
Columbus, OH	10.1%	32.9%	3.0%	$5,100
Indianapolis, IN	34.5%	24.4%	4.1%	$5,846
San Jose, CA	49.1%	68.5%	6.8%	$62,000
Austin, TX	36.3%	32.7%	6.3%	$15,311

Zillow is a registered trademark of Zillow, Inc.

SOURCE Zillow

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HUD Reports Home Sales Rise 26.6 Percent (±16.6 percent)

Median Sale Price Hits $377,100

By Jeff Sorg, OnlineEd Blog

(December 22, 2017)

(WASHINGTON, D.C. – HUD) Sales of new single-family houses in November 2017 were at a seasonally adjusted annual rate of 733,000. This is 17.5 percent (±10.4 percent) above the revised October rate of 624,000 and is 26.6 percent (±16.6 percent) above the November 2016 estimate of 579,000.

The median sales price of new houses sold in November 2017 was $318,700. The average sales price was $377,100.

The seasonally adjusted estimate of new houses for sale at the end of November was 283,000. This represents a supply of 4.6 months at the current sales rate.

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