Tag Archives: zillow

Rents Expected to Flatten in 2016

Hot markets are still going to be hot in 2016, but rents won’t rise as quickly as they have been

By Jeff Sorg, OnlineEd Blog

for rent(January 25, 2016) – Zillow® is predicting that rent appreciation will level off in 2016, slowing to an annual rate of just 1.1 percent by December 2016.  The national Zillow Rent Index at the end of 2016 is projected to be $1,396 — compared to $1,381 in December 2015.

Even with the slowdown, rents will remain unaffordable in many of the major markets across the U.S., especially on the West Coast. Renters in San Francisco and Los Angeles can expect to spend 40 percent of their income on a rental payment.

“Hot markets are still going to be hot in 2016, but rents won’t rise as quickly as they have been,” said Zillow Chief Economist Dr. Svenja Gudell. “The slowdown in rental appreciation will provide some relief for renters who’ve been seeing their rents rise dramatically every single year for the past few years. However, the situation remains tough on the ground: rents are still rising and renters are struggling to keep up.”

Other highlights:

  • Zillow expects rental appreciation to slow down most significantly in Nashville, Tenn., San Francisco, Portland, Ore. and Denver.
  • Rents in San Francisco saw 12.5 percent appreciation in 2015. Zillow forecasts rent in San Francisco will grow half as fast in 2016 — 5.9 percent.
  • The slowdown in rental appreciation indicates that supply of new multi-family homes is catching up to demand.
  • Substantial new housing supply is becoming available in Atlanta, Denver, Portland, Seattle, and other markets.

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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 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.

Homes Appreciate More Rapidly When Close to a Trader Joe’s or Whole Foods

Grocery stores and home values are definitely related

By Jeff Sorg, OnlineEd Blog

grocery fruits(January 25, 2016) – According to Zillow your local grocery market has a lot to do with what happens in your local housing market.

Specifically, Zillow found that homes grow more rapidly in value if they are closer to a Trader Joe’s or Whole Foods. Between 1997 and 2014, homes near the two grocery chains were consistently worth more than the median U.S. home. By the end of 2014, homes within a mile of either store were worth more than twice as much as the median home in the rest of the country.

“The grocery store phenomenon is about more than groceries,” said Rascoff, Zillow Group CEO. “It says something about the way people want to live – in the type of neighborhood favored by the generations buying homes now. Today’s homebuyers seek things in neighborhoods that weren’t even in real estate agents’ vocabularies a generation ago: walkability, community, new urbanism – and maybe we should add words like sustainable seafood and organic pears.”

Zillow analyzed the values of millions of homes near dozens of Trader Joe’s and Whole Foods to conclude that grocery stores and home values are definitely related.

  • According to the Zillow analysis, the median home within a mile of a future Whole Foods store appreciates more slowly than other homes in the same city before the store opens. In the months before the stores open, the trend reverses and flips, so that after the stores’ opening dates, homes near Whole Foods appreciate more quickly than other area homes.
  • Homes near future Trader Joe’s locations were appreciating at close to the same rate as other homes in the same city before the stores opened. After the opening date, however, Zillow found a clear boost in home appreciation rates. Two years after a Trader Joe’s opened, the median home within a mile of the store had appreciated 10 percentage points more than homes in the city as a whole over the previous year.
  • The analysis clearly shows that homes near the stores appreciate more quickly than homes in the city as a whole. That means the two brands are very good at choosing locations that will appreciate faster in the future, or are

Zillow is a registered trademark of Zillow, Inc.

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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 Predicts Hottest Housing Markets for 2016

Topping the list is Denver, followed by Seattle and Dallas-Fort Worth, all of which are major tech towns; Portland, Ore. lands at number 10

By Jeff Sorg, OnlineEd Blog

top ten list(January 12, 2016) –  It’s a new year and everyone is making their predictions about housing. And Zillow® is no different. On Tuesday Zillow announced its predictions for the ten hottest housing markets in 2016. Topping their list is Denver, followed by Seattle and Dallas-Fort Worth. Other places that made the list are Utah markets Ogden and Salt Lake City, along with Omaha, Nebraska, Boise, Idaho and Portland, Oregon holds the number 10 spot with a forecast 5% appreciation in 2016.

Zillow economists looked at home value appreciation, low unemployment rates, and strong income growth as factors to determine which markets will be hot. Omaha has the lowest unemployment rate of the ten hottest markets, at just 2.9 percent. Denver saw home values rise 16 percent in 2015, and Zillow is forecasting them to rise another 5 percent in 2016.

 

Zillow’s Top 10 Housing Markets for 2016:

  1. Denver, Colo.
  2. Seattle, Wash.
  3. Dallas-Fort Worth, Texas
  4. Richmond, Va.
  5. Boise, Idaho
  6. Ogden, Utah
  7. Salt Lake City, Utah
  8. Omaha, Neb.
  9. Sacramento, Calif.
  10. Portland, Ore.

“Trendy tech centers like San Francisco, Seattle and Denver hogged the spotlight in 2015. But this year, the markets that shine brightest will be those that manage to strike a good balance between strong income growth, low unemployment and solid home value appreciation,” said Zillow Chief Economist Dr. Svenja Gudell. “As the job market continues to hum and opportunity becomes more widespread, the best housing markets are no longer limited to the coasts or one-industry tech towns. This year’s hottest markets have something for everyone, whether they’re looking for somewhere to raise a family or start their career.”

Three variables influenced Zillow’s hot market predictions: Zillow’s Home Value Forecasti, which forecasts the change in the Zillow Home Value Index over the next 12 months, recent income growth, and current unemployment rates. Those three variables were then scaled and combined to form a ‘hotness score,’ producing the top ten list.

 

Metropolitan Area Forecasted Home Value Appreciation Income Growth Unemployment Rate
Denver 5.0% 1.1% 3.1%
Seattle 5.4% 1.1% 4.5%
Dallas-Fort Worth 5.6% 1.1% 4.0%
Richmond 2.2% 1.2% 4.4%
Boise 4.7% 1.0% 3.3%
Ogden 4.9% 1.0% 3.4%
Salt Lake City 4.4% 1.0% 3.1%
Omaha 3.2% 1.1% 2.9%
Sacramento 5.1% 1.1% 5.5%
Portland 5.0% 1.0% 5.0%

 

Zillow is a registered trademark of Zillow, Inc.

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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.

“Price This Home” Lets Sellers Create Their Own Custom Value Estimates

Sellers select for-sale and recently sold homes that best match theirs to arrive at the customized value estimate

By Jeff Sorg, OnlineEd Blog

value drawing(December 15, 2015) – Zillow® has announced its release of Price This Home, a new tool that enables home sellers to create a custom, value estimate for their home based on comparable home sales and listings, personal knowledge of their home and surrounding neighborhoods, and local market conditions.

Zillow promotes that along with the [help] of a real estate agent, Price This Home helps sellers understand what their home is worth in the current market by allowing them to quickly and easily compare their own home with homes currently on the market, as well as those that have recently sold. This seems to mean that the prudent broker had better check Zillow comps before engaging in value discussions with sellers.

“Deciding to sell a home can be stressful, and many homeowners spend a lot of time researching home values and market conditions before contacting their agent,” said Jeremy Wacksman, Zillow chief marketing officer. “Price This Home is an excellent tool in those early days. It shows sellers how their home stacks up against other homes on the market, and allows them to provide extra information to create a more customized value estimate.”

The Price This Home feature uses the home’s Zestimate®, Zillow’s estimated market value determined by using the Zillow’s computer generated algorithm, as a base and allows the owner to select information to get a more customized value estimate. To create a Price This Home value estimate, homeowners take several steps.

  • Verify their home facts are correct by claiming their home on Zillow and updating facts like numbers of bedrooms or square footage.
  • Select from a list provided by Zillow, of for-sale and recently sold homes that are similar to their own home, based on location, square footage, number of bedrooms and bathrooms, curb appeal and interior condition, and eliminate those that are not.
  • Since no two homes are exactly the same, Price This Home clearly shows sellers the differences between their home and the comps they have chosen, and how those differences impact the value estimate.
  • Once comparable homes have been chosen, Zillow provides a private estimate to the homeowner, and helps connect the homeowner with a real estate agent to help list their home.

Many buyers and sellers use the Zestimate, Zillow’s computer generated algorithm, as a starting point for determining a home’s value. Zestimates are displayed on over 100 million homes nationwide. This new tool is designed specifically for homeowners who are preparing to sell to privately show them what their home is worth based on comparable for-sale, and recently sold homes.

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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.

Condo Appreciation Outpaces Single-Family Homes

Limited inventory of  homes, popularity of urban life cause runaway condo appreciation

By Jeff Sorg, OnlineEd Blog

housing graph 3(October 27, 2015) –   Condos are appreciating at a rate of 5.1 percent, compared to the 3.7 percent appreciation among single-family homes. Condos are appreciating faster than single-family homes where job markets are thriving or urban renewal is underway, according to the third quarter Zillow® September Real Estate Market Report[i].

According to Zillow, during the Great Recession the typical single-family home lost 20 percent of value; from peak to bottom, the typical condo lost 33.2 percent of its value. In September, according to Zillow’s data, condos are appreciating faster than single-family homes in nearly two-thirds of the top 35 most populated housing markets.

“The housing bust hit condo values hard, and over the past few years, buying a condo wasn’t always considered a good investment compared to a single family home,” said Zillow Chief Economist Dr. Svenja Gudell. “But that’s changing, and condos increasingly represent a strong-performing, often affordable choice, particularly for first-time buyers interested both in homeownership and in keeping a lower-maintenance, city lifestyle.”

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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.

Inventory Down Year-Over-Year for Fifth Straight Month

Inventory of all homes for sale nationwide fell 6.5 percent year-over-year

By Jeff Sorg, OnlineEd Blog

forsale family at signSEATTLE, Wash. (July 30, 2015)  – There were fewer homes for sale in June than there were a year ago, increasing competition for potential buyers this home shopping season. Most of these declines were among the lowest-valued homes sought by first-time homebuyers, according to the first quarter Zillow® Real Estate Market Report.

In the lowest-priced third of homes for sale, the inventory homes on the market fell year-over-year in 28 of the nation’s 35 largest metro areas. By comparison, among the highest-priced homes, inventory fell year-over-year in only 10 of the nation’s largest metro areas.

The total number of homes listed for sale on Zillow in June was down 6.5 percent year-over-year but was up 2.1 percent on a monthly basis. Large metros where inventory has increased the most annually include Austin (up 30.3 percent), Atlanta (22.4 percent) and Washington, DC (18.9 percent).

“Historically low mortgage rates continue to keep overall ownership affordability very good by historical standards, making it a great time to buy a home, especially with rent becoming increasingly unaffordable,” said Zillow Chief Economist Stan Humphries. “Finding a house is the last hurdle for many buyers who have saved a down payment and gotten pre-approved for a mortgage. But low inventory levels like those we’re seeing across the country can bring the home-buying process to a screeching halt. In many markets, there just isn’t a lot to choose from in terms of homes on the market.”

Overall, home values in the United States rose 3.3 percent from June 2014, and 0.3 percent from May to a Zillow Home Value Index of $180,100. As home values continue to rise, buyers are faced with more challenges in a tighter market, especially in hot markets like Denver, which saw the highest home value appreciation from last year, surpassing even San Jose and San Francisco.

Rents have also continued to rise in the second quarter, up 4.3 percent from this time last year to a Zillow Rent Index of $1,369.

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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.

Rents Higher Than Ever Before, Rental Crisis Worsens

rising rents(Jeff Sorg, OnlineEd) – In April, rents grew at four percent year-over-year, overtaking home values, which appreciated at an annual rate of three percent. According to April Zillow® Real Estate Market Reports, soaring rents outpaced home values in April for the first time in years, further deepening a “rental crisis” and signaling that home values are growing at a more normal pace.

Home values in April ticked slightly upward from March, to a national Zillow Home Value Index of $178,400 ­– a three percent increase over last April. The Zillow Rent Index (ZRI) rose four percent year-over-year, to $1,364.

The switch comes after years of rapid home-value increases sped along by the improving economy. U.S. home values peaked in 2007, and then crashed during the Great Recession between 2008 and 2010. Since then, they have risen rapidly, returning to their peak levels in many markets.U.S. homebuyers can expect to spend about 15.3 percent of their income each month on a typical house payment. Renters can expect to spend about 30 percent on a monthly rent payment.

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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.

California Regional MLS, Realogy, Keller Williams Establish Direct Feeds With Zillow

(Jeff Sorg, OnlineEd) –  Zillow Group today announced that the largest multiple listing service in the country, California Regional MLS, along with 17 additional MLS partners, have signed agreements to send their listings directly to Zillow® and Trulia®. This brings thousands of new listings directly to both sites. Two of the largest real estate franchisors in the country, Realogy and Keller Williams also established direct feeds to assure the flow of their listings remain uninterrupted.

Some of other new partners include:

  • Alaska MLS – Anchorage, Alaska
  • California Regional Multiple Listing Service, Inc. – Los Angeles, Calif.
  • Golden Isles Association of REALTORS® – Brunswick, Ga.
  • Greater Lansing Association of REALTORS – Greater Lansing, Mich.
  • Greater Las Vegas Association of REALTORS – Las Vegas, Nev.
  • Gulf Coast MLS – Mobile, Ala.
  • MIBOR Service Corporation – Indianapolis, Ind.
  • Middle Georgia MLS – Macon, Ga.
  • North Central Mississippi Realtors – Oxford, Miss.
  • North Carolina Mountains MLS – Fletcher, NC
  • Northern New England Real Estate Network– Concord, NH
  • Northwest Mississippi Association of REALTORS – Nesbit, Miss.
  • Russellville BOR – Russellville, Ark.
  • Santa Fe Association of REALTORS Inc. – Santa Fe, NM
  • South Central Board of REALTORS – Rolla, Mo.
  • Tillamook County MLS – Tillamook, Ore.
  • Western Arizona Realtors Data Exchange – Lake Havasu City, Ariz.
  • West Central Association of Realtors MN – Willmar, Minn.

 

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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 March 13, 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.

Zillow Unveils New National TV Spot “Lake House”

(Jeff Sorg, OnlineEd®) –  Zillow® released its fifth TV spot as part of the company’s award-winning “Find Your Way Home” national advertising campaign. The spot debuted on national broadcast during the 87th Academy Awards on Sunday, Feb. 22, 2015 on ABC.

The  TV ad, titled “Lake House,” tells the story of a modern home search, including how Zillow® shoppers use mobile devices and to technology drive the way they shop for homes today.

Take a look at the ad 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.

  This article was published on February 24, 2015. All information contained in this posting is deemed correct and current as of this date, but is not guaranteed by the author and may have been obtained by third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.