NAR President Charlie Oppler
Marc Landis
Dan Wagner
Credit: Zumper
Untying business growth from the housing market cycle
Lenders need to be able to grow their business in a way that is not linear and is not tied to the market cycles – leveraging automation technology can help.
Table of Contents
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For an experienced real estate agent to help guide you home, call Wanda Kubat-Nerdin - Wanda Can! | Rock Real Estate Sales Consultant in sunny Southern Utah | 435.632.9374
“This house is the best investment we’ve ever made!” My dadBut I wanted to know: is that true? Is a house really an investment? More importantly, how can you ask yourself the same question and figure out if buying or renting and investing makes better sense for you?
Year | Debt ($) | Interest Paid ($) |
---|---|---|
Mar 2002 | 280,000 | 0 |
2003 | 277,893 | 14,651 |
… | ||
2020 | 183,890 | 300,496 |
Sep 2020 | 176,618 | 309,983 |
Year | Debt ($) | 7% Loan ($) | 4% Refi Loan ($) |
---|---|---|---|
Mar 2002 | 280,000 | 0 | |
2003 | 277,893 | 14,651 | |
… | |||
2013 | 237,890 | 179,637 | 14,301 |
… | |||
2020 | 202,959 | 179,637 | 76,305 |
Sep 2020 | 198,604 | 179,637 | 82,338 |
Year | Property Taxes ($) | Tax Assessment ($) |
---|---|---|
2020 | 6,098 | 589,140 |
2019 | 6,034 | 577,450 |
2018 | 5,709 | 526,150 |
2017 | 5,783 | 514,030 |
2016 | 5,887 | 518,080 |
2015 | 5,882 | 512,420 |
2014 | 5,842 | 505,760 |
2013 | 5,947 | 493,550 |
2012 | 5,602 | 453,600 |
2011 | 5,872 | 457,000 |
2010 | 5,798 | 451,300 |
2009 | 5,736 | 441,900 |
2008 | 5,774 | 457,500 |
2007 | 5,458 | 527,300 |
2006 | 6,337 | 612,200 |
2005 | 5,522 | 533,500 |
2004 | 5,308 | 512,800 |
2003 | 4,520 | 436,700 |
2002 | 3,891 | 375,900 |
Total | 107,000 |
Description | Value ($) |
---|---|
Home Sale | 665,941 |
Income tax deduction | 36,144 |
Debt | (280,000) |
7% Loan Interest | (179,637) |
4% Refi Interest + Fee | (82,338) |
Property Taxes | (107,000) |
HOA Fees | (22,422) |
Home Insurance | (20,520) |
Buyer’s Agent | (19,998) |
Closing Costs | (6,659) |
Maintenance & Improvement | (126,000) |
Initial Downpayment (20%) | (70,000) |
Downpayment Opportunity Cost | (203,727) |
Total homeownership cost | (416,216) |
Rent & Invest | Buy | |
---|---|---|
Initial cost ($) | (1,950) | (70,000) |
222-month cost ($) | (538,350) | (537,917) |
Investment earnings, stocks | 198,052 | 0 |
Investment earnings, home1 | 0 | 395,428 |
Security deposit return | 1,950 | 0 |
Net | (340,298) | (212,489) |
What do you think drives people to decide to rent or buy? Which is healthier for those on a path to financial independence? Let us know in the comments!
]]>The Refinance Index fell by 7 percent but was 52 percent higher than the same week in 2019. Refinancing continues to dominate the action, although its share of total applications was down from 64.3 percent during the week ended September 18 to 63.3 percent.
The Purchase Indexdecreased 2 percent on both an adjusted and unadjusted basis from the previous week but was 22 percent higher than the same week one year ago. An unbroken string of annual increases now dates back to the week ended May 22.
Refi Index vs 30yr Fixed
Purchase Index vs 30yr Fixed
"First off, we're not really seeing a big enough drop in either side of the application numbers to label it as anything other than normal volatility in the bigger picture," according to MBS Live CEO Matt Graham. "But if there is a cause and effect relationship here, it's that refinance activity is being pulled forward aspeople have rushed to get applications and locks in before getting hit with the new adverse market fee. This primarily took place on the week of 9/14 through 9/18 as that's when a majority of lenders began to re-implement the adverse market fee. A bit of a drop off in the following week (i.e. last week) is a logical consequence. Incidentally, it also helps explain the relative surge in applications reported last week."
"Mortgage rates decreased last week, with the 30-year fixed rate mortgage declining 5 basis points to 3.05 percent - the lowest in MBA's survey. Despite the decline in rates, refinances fell over 6 percent, driven by a 9 percent drop in conventional refinance applications," said Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting. "There are indications that refinance rates are not decreasing to the same extent as rates for home purchase loans, and that could explain last week's decline in refinances. Many lenders are still operating at full capacity and working through operational challenges, ultimately limiting the number of applications they are able to accept."
Added Kan, "Purchase applications also decreased last week, but activity was still at a strong year-over -year growth rate of 22 percent. Even as pent-up demand from earlier in the year wanes, there continues to be action in the higher price tiers, with the average loan balance remaining close to an all-time survey high."
The FHA share of total applications increased to 11.4 percent from 10.1 percent the previous week and the VA share decreased to 11.9 percent from 12.0 percent. The USDA share of total applications was 0.5 percent. The average size of the week's loans was $321100 compared to $324,000 a week earlier. Purchase loans averaged $370700, down from $371,000.
Except for 15-year fixed-rate mortgages (FRM) both contract and effective rates moved lower. The average contract interest rate for 30-year FRM with balances at or below the conforming limit of $510,400 decreased to 3.05 percent from 3.10 percent, with points increasing to 0.52 from 0.46.
Jumbo 30-year FRM, loans with origination balances above the conforming limit, had an average rate of 3.33 percent, down from 3.35 percent the prior week. Points declined to 0.39 from 0.42.
The rate for 30-year FRM backed by the FHA decreased to 3.15 percent with 0.43 point from 3.23 percent with 0.37 point.
Fifteen-year FRM rates increased an average of 1 basis point to 2.65 percent. Points grew to 0.49 from 0.47 and the effective rate increased.
The average contract interest rate for 5/1 adjustable rate mortgages (ARMs) decreased to 2.95 percent from 3.19 percent, with points decreasing to 0.55 from 0.64. The ARM share of activity remained unchanged at 2.2 percent of total applications.
MBA says a further decline in loans serviced for the GSEs, took the total number of mortgage loans in active forbearance plans down to 3.4 million last week. The percentage of all loans in plans dropped 6 basis points to 6.93 percent. By stage, 30.26 percent of total loans in forbearance are in their initial forbearance plan while 68.37 percent are in a forbearance extension. The remaining 1.37 percent have reentered their plans.
The share of Fannie Mae and Freddie Mac loans in forbearance dropped for the 16th week in a row to 4.46 percent - a 9-basis-point improvement. The forborne percentage of Ginnie Mae (FHA/VA) and portfolio/private label securities (PLS) were both unchanged, at 9.15 percent and 10.52 percent, respectively. The percentage of loans in forbearance for depository servicers decreased 7 basis points to 7.11 percent, and the percentage of loans in forbearance for independent mortgage bank (IMB) servicers dipped 3 basis points to 7.23 percent.
"The share of loans in forbearance continues to decline and is now at a level not seen since mid-April. Many homeowners with GSE loans are exiting forbearance into a deferral plan and resuming their original mortgage payment but waiting to pay the forborne amount until the end of the loan," said Mike Fratantoni, MBA's Senior Vice President and Chief Economist. "However, the overall picture is still somewhat of a mixed bag. The recent uptick in forbearance requests, particularly for those with FHA or VA loans, is leaving the Ginnie Mae share elevated, as the pace of new requests meets or exceeds the pace of exits."
Added Fratantoni, "The continued churn in the job market is likely keeping many homeowners who have been in forbearance reluctant to exit, given the level of economic uncertainty."
MBA's latest Forbearance and Call Volume Survey covers the period from September 14 through September 20 and represents 74 percent of the first-mortgage servicing market (37.1 million loans).
]]>Year over year, home values are up 5.1% in August, the largest annual rise since March 2019. Markets with the highest year-over-year increases in home values were Phoenix (10.5%), San Jose (10.3%) and Seattle (9.2%). The smallest year-over-year gains in home values among major metros were seen in Chicago (1.9%), New York (2.3%) and San Francisco (2.7%).
"American home shoppers faced an historic shortage of listings to choose from this summer, and that scarcity is now reflected in rapidly appreciating home values after a sluggish start to the home shopping season this spring," said Zillow economist Jeff Tucker. "Builders are racing to catch up with demand, and rising prices should encourage more potential sellers to come off the sidelines and list. Still, the shortage of inventory should keep housing markets unusually tilted in sellers' favor this autumn."
Nationwide, demand continues to outpace supply. Homes continue to fly off the market at a record pace and inventory is contracting, according to the most recent Zillow weekly housing market data. Listings' typical time on the market was 14 days, as of the week ending Sept. 12. That's 14 days faster than the year before.
Looking forward, upward price pressure seems likely to continue at least through the fall, thanks to the large inventory deficit. Purchase demand is holding steady at high levels, reflected in strong pending sales data, perhaps due to delayed purchases from earlier this spring and summer. Given that the housing market typically begins to cool off by late August, this stable volume of sales looks even more impressive: pending sales were up a whopping 23.3% year over year in the week ending September 12.
The Fed expects to keep interest rates near zero through at least 2023, and allow periods of higher inflation, in an effort to revive the economy. This news reinforces the Federal Reserve's commitment to keeping credit flowing using a broad policy toolkit that included purchases of mortgage-backed securities this year. In that context there is little reason to expect mortgage rates to rise significantly any time soon, which should help keep buyers active.
While the for-sale market has strengthened since April, the rental market has softened. The U.S. has seen yearly rent price appreciation decline every month since the pandemic began, dropping from 3.8% year-over-year rent growth in February to just 0.7% in August. The typical U.S. rent was $1,771 in August, down 0.3% from July, which is the largest monthly decrease seen since September 2017.
"Rents softened further this August, especially in New York and the San Francisco Bay Area," Tucker said. "Rental demand has been battered by still-elevated unemployment as well as some renters opting out of expensive markets with their ability to work remotely during the pandemic. The rental market may also be feeling an early gust of demographic headwinds, as the bumper crop of Millennials in their early 30s begin making the leap to homeownership."
Compared to last year, typical rent is down 4.6% in New York, 4% in San Francisco and 3.8% in San Jose. In Boston, the fifth most expensive metro within the top 50, rents are down 2.8% since last year. Typical rents in Washington, D.C., Chicago, Austin, Houston, and Denver also declined since last year. The softening is especially pronounced in areas where higher shares of college students typically live.
Meanwhile, rents in Midwestern and Sun Belt cities are making headlong strides upwards. Memphis leads the way with 8.3% rent appreciation since last year, and has seen monthly increases throughout the pandemic. Phoenix rents bounced back with 1.1% month-over-month growth in August after posting negative figures in April and May.
Mortgage rates listed by third-party lenders on Zillow started the month at 3.1% and rose to twin peaks of 3.17% on Aug. 12 and Aug. 28. High volatility in mid-August led to a minimum of 2.97% on Aug. 13. August closed with rates at 3.12%. Zillow's real-time mortgage rates are based on thousands of custom mortgage quotes submitted daily to anonymous borrowers on the Zillow Group Mortgages site by third-party lenders and reflect recent changes in the market2.
Metropolitan Area* |
Zillow Home Value Index (ZHVI), August 2020 |
ZHVI - YoY Change, August 2020 |
Total Inventory - YoY Change, Week Ending Sept. 12 |
Zillow Observed Rent Index (ZORI), August 2020 |
ZORI - YoY Change, August 2020 |
United States |
$256,663 |
5.1% |
-29.4% |
$1,771 |
0.7% |
New York/Newark, NY/NJ |
$493,579 |
2.3% |
-13.4% |
$2,716 |
-4.6% |
Los Angeles, CA |
$706,714 |
5.9% |
-23.8% |
$2,627 |
0.0% |
Chicago, IL |
$246,357 |
1.9% |
-26.9% |
$1,791 |
-1.0% |
Dallas-Fort Worth, TX |
$261,739 |
4.1% |
-29.0% |
$1,620 |
1.1% |
Philadelphia, PA |
$262,437 |
5.1% |
-37.8% |
$1,620 |
1.3% |
Houston, TX |
$222,936 |
3.1% |
-25.8% |
$1,537 |
-0.6% |
Washington, DC |
$452,030 |
5.1% |
-33.1% |
$2,161 |
-1.2% |
Miami-Fort Lauderdale, FL |
$310,471 |
4.1% |
-9.6% |
$1,947 |
1.2% |
Atlanta, GA |
$251,454 |
5.7% |
-25.3% |
$1,609 |
3.3% |
Boston, MA |
$514,321 |
4.9% |
-24.2% |
$2,490 |
-2.8% |
San Francisco, CA |
$1,127,066 |
2.7% |
1.5% |
$3,167 |
-4.0% |
Detroit, MI |
$188,420 |
4.3% |
-36.4% |
$1,316 |
2.5% |
Riverside, CA |
$400,664 |
5.7% |
-46.7% |
$2,097 |
5.5% |
Phoenix, AZ |
$312,317 |
10.5% |
-21.8% |
$1,521 |
5.7% |
Seattle, WA |
$559,226 |
9.2% |
-26.7% |
$2,000 |
0.4% |
Minneapolis-St. Paul, MN |
$305,202 |
5.4% |
-25.6% |
$1,602 |
1.5% |
San Diego, CA |
$643,903 |
5.9% |
-36.7% |
$2,422 |
1.8% |
St. Louis, MO |
$187,795 |
5.0% |
-31.5% |
$1,155 |
2.7% |
Tampa, FL |
$242,924 |
7.2% |
-31.9% |
$1,580 |
4.1% |
Baltimore, MD |
$302,464 |
2.9% |
-44.4% |
$1,732 |
0.3% |
Denver, CO |
$458,600 |
4.5% |
-31.1% |
$1,821 |
-0.1% |
Pittsburgh, PA |
$167,172 |
5.2% |
-24.5% |
$1,148 |
1.1% |
Portland, OR |
$429,608 |
5.3% |
-31.0% |
$1,688 |
1.3% |
Charlotte, NC |
$249,960 |
8.0% |
-39.7% |
$1,520 |
1.9% |
Sacramento, CA |
$444,733 |
5.7% |
-41.1% |
$1,908 |
4.3% |
San Antonio, TX |
$211,964 |
3.2% |
-23.4% |
$1,395 |
1.5% |
Orlando, FL |
$266,005 |
5.4% |
-13.7% |
$1,619 |
1.1% |
Cincinnati, OH |
$197,135 |
7.2% |
-37.4% |
$1,293 |
2.9% |
Cleveland, OH |
$168,298 |
6.7% |
-38.3% |
$1,166 |
2.8% |
Kansas City, MO |
$214,639 |
6.3% |
-42.4% |
$1,251 |
4.3% |
Las Vegas, NV |
$302,071 |
4.0% |
-22.5% |
$1,478 |
3.0% |
Columbus, OH |
$222,467 |
7.1% |
-37.8% |
$1,356 |
4.6% |
Indianapolis, IN |
$192,677 |
7.9% |
-40.2% |
$1,340 |
4.8% |
San Jose, CA |
$1,224,366 |
10.3% |
-19.0% |
$3,129 |
-3.8% |
Austin, TX |
$357,346 |
6.1% |
-32.2% |
$1,598 |
-0.8% |
Virginia Beach, VA |
$252,041 |
4.8% |
-36.3% |
$1,413 |
3.8% |
Nashville, TN |
$289,792 |
5.9% |
-17.2% |
$1,620 |
2.4% |
Providence, RI |
$333,191 |
5.7% |
-36.5% |
$1,635 |
4.4% |
Milwaukee, WI |
$212,166 |
7.5% |
-8.2% |
$1,147 |
2.6% |
Jacksonville, FL |
$240,785 |
4.8% |
-33.1% |
$1,419 |
3.2% |
Memphis, TN |
$164,254 |
8.5% |
-40.6% |
$1,396 |
8.3% |
Oklahoma City, OK |
$165,014 |
6.0% |
-33.9% |
$1,096 |
2.0% |
Louisville, KY |
$189,706 |
6.8% |
-41.8% |
$1,098 |
4.4% |
Hartford, CT |
$246,821 |
4.0% |
-40.4% |
$1,428 |
3.9% |
Richmond, VA |
$256,417 |
4.6% |
-35.1% |
$1,355 |
3.0% |
New Orleans, LA |
$215,218 |
5.7% |
-42.3% |
$1,470 |
0.5% |
Buffalo, NY |
$183,071 |
5.2% |
-32.4% |
$1,116 |
4.5% |
Raleigh, NC |
$292,160 |
4.5% |
-37.7% |
$1,546 |
1.8% |
Birmingham, AL |
$174,875 |
7.0% |
-33.7% |
$1,152 |
4.0% |
Salt Lake City, UT |
$405,189 |
7.9% |
-41.4% |
$1,461 |
1.3% |
* |
Table ordered by market size |
1 The Zillow Real Estate Market Reports are a monthly overview of the national and local real estate markets. The reports are compiled by Zillow Real Estate Research. For more information, visit www.zillow.com/research/. The data in Zillow's Real Estate Market Reports are aggregated from public sources by a number of data providers for 928 metropolitan and micropolitan areas dating back to 1996. Mortgage and home loan data are typically recorded in each county and publicly available through a county recorder's office. Methodologies and all current monthly data at the national, state, metro, city, ZIP code and neighborhood level can be accessed at www.zillow.com/research/data.
2 Zillow Group Marketplace, Inc. is a licensed mortgage broker, NMLS #1303160.
About Zillow
Zillow, the most visited real estate website in the U.S., is building an on-demand real estate experience. Whether selling, buying, renting or financing, customers can turn to Zillow's businesses to find and get into their next home with speed, certainty and ease.
In addition to for-sale and rental listings, Zillow Offers buys and sells homes directly in dozens of markets across the country, allowing sellers control over their timeline. Zillow Home Loans, our affiliate lender, provides our customers with an easy option to get pre-approved and secure financing for their next home purchase.
Millions of people visit Zillow Group sites every month to start their home search, and now they can rely on Zillow to help them finish it — with the same confidence, ease and empowerment they've come to expect from real estate's most trusted brand.
Zillow is owned and operated by Zillow Group, Inc. (NASDAQ:Z and ZG).
SOURCE Zillow
The National Association of Home Builders and Wells Fargo Housing Market Index rose five points to 83 in September – the highest score the series has seen since its inception 35 years ago, according to a release from NAHB on Wednesday. Based on a scale from zero to 100, the index gauges builder perceptions of current single-family home sales and sales expectations for the coming six months.
In September, all HMI indices, including current sales conditions, sales expectations and traffic of prospective buyers, reported their highest readings ever, the release said.
Regionally, the West continued to see the greatest confidence in the three-month moving averages – jumping seven points to 85. Following suit, the South rose eight points to 79, the Northeast gained 11 points up to 76 and the Midwest increased nine to 72. Month-over-month, however, regional confidence gains slowed from the double-digit spikes August saw.
For months now HousingWire has reported evidence that an urban exodus is underway and NAHB chief economist Robert Dietz furthered that narrative on Wednesday, saying a growing number of builders throughout the country reported calls from customers in high-density markets asking about relocation.
According to Dietz, a shift toward suburbia coupled with low interest rates is keeping home builders busy. So busy in fact, that residential construction employment rose by 27,700 in August to 2.9 million, according to the Bureau of Labor Statistics.
While construction employment is booming, in a release from Sept. 4, Dietz noted the lumber industry has only gained roughly half of the jobs it originally lost due to the pandemic.
“Historic traffic numbers have builders seeing positive market conditions, but many in the industry are worried about rising costs and delays for building materials, especially lumber,” said NAHB chairman Chuck Fowke. “More domestic lumber production or tariff relief is needed to avoid a slowdown in the market in the coming months.”
With growing demand for lumber, insufficient supply and 20% tariffs put in place on Canadian supply, escalating prices are putting pressure on an already volatile situation. Since mid-April, lumber prices are now up 170% – piling more than $16,000 on top of the price of a typical family home, Dietz said.
]]>First-time homebuyer activity decreased mostly in part due to the economic effects of the pandemic, but it still remains the most active segment in the purchase space of the housing market.
During the second quarter, 539,000 single-family homes were purchased by first-time homebuyers, down 4.6% compared to last year, according to Genworth Mortgage Insurance. This represented 40% of single-family homes purchased during Q2, Genworth said.
Compared to the first quarter of this year, it is an 18% drop.
“The COVID-19 pandemic pushed the U.S. economy into the sharpest recession on record in March,” Tian Liu, Genworth’s chief economist said. “The housing market also began correcting in April, resulting in an 18% decrease in the number of first-time homebuyers in the second quarter compared to the first quarter. A quick rebound in May moderated the market decline.”
Although buyer purchasing power has increased, many may not be able to find a home that’s affordable due to high home prices as a result of low inventory.
In 35 states and Puerto Rico, there were fewer first-time homebuyers in the second quarter of 2020 than the second quarter of the prior year. In 15 states and Washington, D.C., there were actually more first-time homebuyers reported.
The report also noted that first-time homebuyers relied on smaller down payments for their mortgages.
Overall, 449,000 first-time homebuyers used some form of low down payment mortgage products to finance their home purchase in the second quarter, roughly 83% of all first-time homebuyers. That’s a record, according to Genworth.
Between April and June, Genworth researchers found that the number of rate locks by first-time homebuyers increased by 55% and no states reported negative growth.
Rate locks of over 100% between April and June happened in New York, Pennsylvania, New Jersey and Michigan.
Liu said that despite the challenge the pandemic handed first-time homebuyers, credit availability was maintained in the housing finance system, as the private mortgage insurance industry played a huge role.
“The main reasons that the housing finance system has largely maintained credit availability to date include a focus on prudent underwriting, having adequate capital in the financial system, a significant presence for the agency market that will take credit risk during periods of market stress, and continued investment in technology to make the industry capacity more elastic,” Liu said.
]]>Data from The Chronicle of Higher Education and Davidson College show 44% of U.S. colleges and universities are operating fully or primarily online for the Fall semester, while only 27% are offering classes fully or primarily in person. A new Zillow® analysis shows reduced demand in this largely remote environment is having a noticeable impact on rents in ZIP codes in which at least 20% of the population is college students, who make up about 8% of the U.S. rental market in a typical yeari.
In these neighborhoods with a high share of college students, average rent prices were growing 4.7% year over year in February. By August, when many students would typically move back near campus, rents were down 0.5% from the year before, marking the first time since at least 2017 -- the earliest Zillow data is available -- in which college-area rents were lower than the previous year. Meanwhile, rents in ZIP codes with a lower share of college students were up 2.6% annually.
In May, the average rent was only 1% lower in college areas than non-college areas. By August, that gap had widened to 3.4% as rents continued to fall in college areas but rose elsewhere. That's the furthest college-area rents have fallen below rents elsewhere since at least 2017.
Pricier areas with a high share of college students are often seeing steeper rent declines. For example, the average rent is down 7% year over year in Boston's 02115 ZIP code that includes Northeastern University, which is made up of about 60% college students, and down 5% in the 94704 ZIP code in Berkeley, Calif., with about 70% of the population being college students.
"The softening rental market across the country is more stark in college neighborhoods as pandemic-mandated campus closures and opportunities to complete courses online have provided motivation for young people to move back home," said Zillow senior economist Cheryl Young. "With many leases ending at the end of the summer or the beginning of the fall, we can expect even greater impacts in the months ahead. The good news for rental owners is administrators seem to be itching to bring students back to campus as soon as they can do so safely, so it's possible this will be a relatively short-term shock to rent prices."
Rising unemployment and campus closures, among other factors, pushed about 2.7 million American adults to move back in with parents or grandparents last spring. Those numbers dwindled during the summer months, but there were still 2 million more 18- to 25-year-olds living at home in August than there were a year earlier, an 11% increase. The jump in the share of these college-age Americans living at home was sharpest among Black and Asian and Pacific Islander young adults. Nearly two-thirds (65.7%) of Black 18- to 25-year-olds were living at home in August, up from 56.5% last year.
With demand for rentals softening, landlords are offering discounts or other incentives as they strive to attract new tenants. Rent concessions on Zillow listings across the country are nearly twice as common as they were in February. Even small discounts or short-lived vacancies can have a big impact on landlords -- previous Zillow research has shown rental owners typically spend more than half of their rental income on fixed costs of property ownership such as mortgage payments, property taxes and insurance.
College Areas |
Non-College Areas |
|||
Month |
Average Rent |
Average Rent - YoY Change |
Average Rent |
Average Rent - YoY Change |
February 2020 |
$1,809 |
4.7% |
$1,825 |
3.3% |
May 2020 |
$1,800 |
1.5% |
$1,819 |
1.2% |
August 2020 |
$1,787 |
-0.5% |
$1,851 |
2.6% |
About Zillow
Zillow, the most visited real estate website in the U.S., is building an on-demand real estate experience. Whether selling, buying, renting or financing, customers can turn to Zillow's businesses to find and get into their next home with speed, certainty and ease.
In addition to for-sale and rental listings, Zillow Offers buys and sells homes directly in dozens of markets across the country, allowing sellers control over their timeline. Zillow Home Loans, our affiliate lender, provides our customers with an easy option to get pre-approved and secure financing for their next home purchase.
Millions of people visit Zillow Group sites every month to start their home search, and now they can rely on Zillow to help them finish it — with the same confidence, ease and empowerment they've come to expect from real estate's most trusted brand.
Zillow is owned and operated by Zillow Group, Inc. (NASDAQ:Z and ZG).
i Source: U.S. Census Bureau, 2018 American Community Survey
SOURCE Zillow
Residential sell and lease-back company EasyKnock has added another product to its portfolio. ReLEASE provides homeowners with the option to sell their home and rent it back from EasyKnock as long as they would like, the company said.
“We’re launching this product today because Americans need options now,” EasyKnock CEO Jarred Kessler said in a statement. “Historically, financing options have been limited and lending standards have not worked in favor of the consumer. EasyKnock is here to change this with solutions that help a wider range of homeowners achieve their goals. We want homeowners to feel their financial circumstances do not have to define them.”
The product is now available for qualified homeowners in Florida, Michigan, Arizona, Colorado, North Carolina, Tennessee, Utah, Texas, and Georgia. ReLEASE is the third solution EasyKnock offers to homeowners.
Sell and Stay and MoveAbility are its other products available to homeowners. Sell and Stay offers homeowners longer-term lease options with the opportunity to buy back their home, while MoveAbility enables greater flexibility for homeowners who want to sell but are waiting for the right time to move.
EasyKnock says hassle-free options provide customers with a competitive price on their house and can close in as few as seven days.
“As the nation faces a rise in forbearance and as credit inevitably tightens, U.S. homeowners are in greater need of flexible financial solutions,” the company said in a release. “With EasyKnock, customers can use the value of their home to pay down personal debt, invest in a business, diversify retirement portfolios, make a down payment on a new home, or relocate.”
Last month, Viola FinTech added $5 million to EasyKnock’s Series B funding round, bringing it to $25 million. Kessler said this round of funding with Viola FinTech will assist consumers who have faced economic uncertainty because of the pandemic.
]]>A new Zillow® analysis shows mid-sized1 cities like Boise, Syracuse, and Portland (ME) are now leading the country as the top markets poised for growth, replacing expensive coastal metros such as San Francisco and Seattle that have led the way in the past. Many of these markets also happen to offer home shoppers more space for their money, as the coronavirus pandemic has reshaped where and how people want to live.
The analysis weighs a variety of factors to show demand in the market, and continued opportunity for growth. Those include recent and forecasted home value growth, the share of homes sold above list price, and how quickly homes sell.
Home shopper behavior continues to evolve throughout the pandemic, but many are reconsidering their home's functionality or dreaming of more space -- factors which might drive their next move. A recent Zillow survey2 found nearly one-third of Americans who could occasionally work remotely said they would consider moving in order to live in a larger home (30%), have a home with more rooms (29%), and have a home with a dedicated office space (31%).
As remote work opens up more opportunities for home ownership, many first-time buyers may seek out a starter home in a more affordable area. These are the top dozen mid-sized metros that offer more space for growing families and big-city amenities for urbanites.
1. Boise, Idaho
Population: 616,5613; typical home value: $334,965
Boise, Idaho, is an up-and-coming city drawing young professionals, families, and retirees alike. Home values are strong and continue to rise, increasing 11.8% from last year, and are expected to grow 5.6% into next year. Buyers are snatching up houses in record time here, with the typical home going under contract in as little as five days.
"Boise offers that small-town feel people crave from the movies, and has something for everyone," says Michael Edgar, owner of Michael Ryan Real Estate, who relocated to Boise in 2003 from California. "There's an abundance of outdoor activities right outside your doorstep, plenty of restaurants to choose from, and not a lack of career opportunities. Its affordability makes it a great place to raise kids, retire, or work remotely."
Boise, which was an under-the-radar hot market last year, offers both a bustling downtown, with quiet neighborhoods and access to outdoor recreation.
2. Huntsville, Ala.
Population: 417,593; typical home value: $203,242
Huntsville, known as Rocket City, is home to the U.S. Space and Rocket Center. Home values have also skyrocketed, increasing 11.5% compared to last year, and home values are forecasted to increase 5% over the next year.
3. Ogden, Utah
Population: 597,159; typical home value: $344,816
Ogden offers the benefits of urban life with easy access to the outdoors. The demand in this market is strong, with 41.5% of homes selling above list price -- helping sellers who want to trade up and signaling there are buyers eager to settle in Ogden. Zillow is forecasting home values in Ogden will increase 4.6% in the next year, showing the demand for this market is here to stay.
4. Spokane, Wash.
Population: 527,753; typical home value: $293,655
Spokane has seen accelerating home value growth, increasing 9.5% from a year prior. The Spokane market is hot for sellers, with 45.1% of homes selling above list price. Competition for homes here may be attributed, in part, to the metro's vibrant downtown, trail system and growing microbrewery and winery scene.
5. York, Pa.
Population: 434,972; typical home value: $195,837
York is the oldest city on this list, dating back to 1777 as the first U.S. capital. Today, York has a suburban feel mixed with its history, and sales of these architecturally unique homes do not appear to be slowing down anytime soon. Home sales increased a whopping 75.7% from the previous month, and are 17.7% above last year's levels.
6. Colorado Springs, Colo.
Population: 645,613; typical home value: $336,927
Colorado Springs' hot housing market bumps it up the list, with home values sharply increasing and poised to continue strong growth. Home values have seen a 9.5% increase from last year, and are forecasted to grow 4.8% over the next year. Home sales are up 17.8% above last year's levels.
"If you love the outdoors and you love biking, hiking, camping and all the things that come with the Colorado lifestyle, you'll love the Springs," said Jacob Mueller, a Colorado Springs native and a Zillow Premier Agent with Atlas Real Estate. "You can get into the mountains really easily and that's very attractive. The city is also experiencing tremendous economic growth, so people can grow their careers here without having to leave for a bigger city."
7. Lancaster, Pa.
Population: 519,445; typical home value: $242,009
Homes are flying off the market in the growing city of Lancaster, and home sales continue to boom. Sales are up 78.6% from last month, with homes typically going under contract in 7 days. With its proximity to city hubs and great walkability, Lancaster offers wide open spaces, with proximity to plenty of bars and restaurants.
8. Modesto, Calif.
Population: 514,453; typical home value: $340,762
Homes in Modesto are in high demand, with 39.1% selling above the list price -- indicating buyers are competing to put down roots in this agricultural hub. Homes are only on the market for 7 days before going under contract, and home values here are forecasted to increase 4% over the next year.
9. Syracuse, N.Y.
Population: 662,577; typical home value: $154,596
Syracuse is the market to watch in upstate New York. Home values here continue to appreciate, and are 6.8% above last year's levels, and projected to increase 4% by this time next year.
"Syracuse offers a great quality of life at a reasonable cost," said R.J. Long, managing partner at Coldwell Banker Prime Properties in New York state. "It's got gorgeous hills and terrain, and proximity to the water with the Great Lakes and the Finger Lakes nearby. It offers beautiful homes, good jobs and it's accessible from anywhere in the state."
10. Visalia, Calif.
Population: 442,179; typical home value: $232,800
Visalia is a vibrant community with a small-town feel and a gateway to the outdoors. Home values continue to climb here, up 7.5% since last year. Home value growth is forecasted to continue into next year, expected to rise another 4.3%. Additionally, more than one out of every three of homes on the market sell above list price, indicating buyers are ready to settle down in this community.
11. Portland, Maine
Population: 514,098; typical home value: $334,650
"For those looking for an arts and foodie-driven lifestyle on the ocean, Portland can't be beat," says Nate Wildes, Executive Director of the nonprofit Live and Work in Maine. "Portland offers the Maine quality of life, matched with a uniquely quaint urban experience and genuine sense of place. The communities of greater-Portland are a thriving destination."
Home values in this seaport metro continue to grow, up 7.5% from last year and are expected to see 3.9% growth into next year. There are very eager buyers ready to make Portland home, with nearly 40% of homes selling above list price.
12. Lansing, Mich.
Population: 464,036; typical home value: $170,011
Rounding out the list is Michigan's capital, Lansing, where buyers are active and ready to secure their next home. Monthly sales are increasing at a rapid pace, up about 68% from the previous month, and 40% of homes are selling above the listed price.
Methodology
"Mid-Sized Markets" are metropolitan areas ranked by size between 76-125 of all U.S metros. The analysis of these metros weighted five variables equally to determine the list:
About Zillow
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In addition to for-sale and rental listings, Zillow Offers buys and sells homes directly in dozens of markets across the country, allowing sellers control over their timeline. Zillow Home Loans, our affiliate lender, provides our customers with an easy option to get pre-approved and secure financing for their next home purchase.
Millions of people visit Zillow Group sites every month to start their home search, and now they can rely on Zillow to help them finish it — with the same confidence, ease and empowerment they've come to expect from real estate's most trusted brand.
Zillow is owned and operated by Zillow Group, Inc. (NASDAQ:Z and ZG).
1 Mid-size cities are ranked by size between 75-125 of all U.S metros
2 This survey was conducted online within the United States by The Harris Poll on behalf of Zillow from May 4-6, 2020 among 2,065 U.S. adults ages 18 and older. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact press@zillow.com.
3 Population data are the most recent numbers from the 2010 Census
SOURCE Zillow
About a year ago, RE/MAX agent Ken Flaspohler took on what he said is the most exciting luxury listing he’s ever had. Hidden somewhere in rural Kansas and nestled 15 stories below the ground, the listing consists of condos constructed in a repurposed Atlas missile silo.
The exact location wasn’t shared with HousingWire, or even posted on the listing site, but Flaspohler said keeping the location information low key is what comes with the territory.
The site’s developer, Larry Hall, purchased the silo in 2008, then remodeled it into the survival bunker it is now. Surrounded by concrete walls that are nine feet thick, Flaspohler said the over 20,000-square-foot space consists of individual condos with their own kitchenette and bathrooms.
What was once used by the U.S. Air Force for missile storage has been transformed into a luxury, secluded living experience.
“People say this looks like it’s out of the Jetsons,” Flaspohler said.
According to the listing site: “Survival Condos run from $1.5 mil to $4.5 mil and most banks will not finance. You must be liquid to become an owner.”
Other features in the silo include a library, his and hers workout rooms and steam rooms, a bar, an inground swimming pool, a hospital and dental room, a dog park and a media room.
Flaspohler, a RE/MAX agent based in Kansas City, has been in real estate since 1986. He said this listing is like nothing he has ever taken on before. Taking shelter in place to a whole new level, residents can survive in the missile silos for up to five years, if needed.
“This is not your typical second home to have,” Flaspohler said. “[It’s] in case you feel like there could be something, like maybe a little bit of what we’re going through now, a pandemic or a world event that might require maybe a little extra caution and safety.”
Running water is connected to underground wells that run through the silo’s treatment plant, and there are wind turbines and diesel generators that create power.
The silo also has its own aquaponic system, where the community can grow its own vegetables.
Since the pandemic hit., Flaspohler said that there has been a lot of interest in the listing, bringing people from all over the country to take a tour.
“At the beginning of COVID, people weren’t quite sure what was going to happen…and I don’t think it got as bad as maybe people might have thought at the beginning of COVID, so it seems [interest] kind of tapered off a little bit. And then I don’t know why now, [interest] picked up here in the last month,” Flaspohler said.
As for how this compares to other listings he’s had, Flaspohler said this one is basically similar to a condo in Kansas City, but has a higher quality of “extras” and prices.
“I’ve been doing this since 1986, and certainly sold houses, farms, land, a couple of buildings,” Flaspohler said. “This was just such a unique property. I knew I was going to enjoy working on because it’s such a unique property.”
]]>Zillow and Redfin are among the companies that are signing on to The Board Challenge, a pledge to add a Black member to their board of directors within one year.
Rolled out this week, the Board Challenge is part of a movement to increase diversity and inclusion since the death of George Floyd at the hands of police officers in Minneapolis in May.
“The perspectives and ideas we listen to, and the voices we elevate, will determine the future of our industries, our companies, and ultimately our world,” Zillow Cofounder and CEO Rich Barton said in a statement. “It’s obvious that Black people are underrepresented in corporate boardrooms and other positions of leadership and power. It is something we don’t talk about enough.”
According to the Wall Street Journal, data from Boardlist shows about 66% of Fortune 500 company board members are white men and 18% are white women; 9% are Black men and women.
PwC’s 2019 Annual Corporate Directors Survey reports that 94% of directors agree that board diversity brings unique perspectives to the boardroom, while 87% thinking board diversity enhances board performance and 76% say it enhances company performance.
In a LinkedIn post, Barton said that Zillow has been sharing its workforce diversity and pay equity data since 2016, to “hold ourselves accountable to do better for our own team members.”
Zillow has had a spot open on its board since former CEO Spencer Rascoff stepped down in April, a spot Barton said he is actively looking to fill.
“The search for a Black director is already well underway at Zillow, and we’re very excited about the talented candidates we’ve been able to talk to,” Barton said.
Also listed as a supporter of the Board Challenge, Redfin’s CEO Glenn Kelman has been vocal about Redfin’s effort to add diversity to staff as well as anti-discriminatory practices.
“We just recruited a new director to our board, which was just another reminder of how many fantastic candidates of color there are for roles at the most senior levels,” Redfin CEO Glenn Kelman said in a statement to HousingWire.
“Diversity is crucial to one of a board’s foundational responsibilities, to ensure the company is fairly run,” Kelman said. “This fairness depends not just on our board’s decision-making, but also on employees’ confidence in that decision-making. No matter how hard we try to be an open company, it can be daunting for any employee to escalate a problem to the board, but especially for an employee of color who doesn’t see a director with the life experiences to process that problem.”
Other supporters of the Board Challenge include United Airlines, Sonos and Uber, to name a few.
]]>In the ultra-competitive Westchester market, the odds were stacked against Heather Harrison and her client. A stately suburban home that was listed on Tuesday already had 30 showings lined up for that upcoming Saturday.
“I put in a full price offer at $1.275 million, that was the asking price,” Harrison said. “The client went to highest and best on Monday at 5 p.m., and I counseled my client to bid accordingly, waive his mortgage contingency, then we bid $1.45 million and we got it.”
With the suburbs seeing record volume, agents and brokers like Harrison, who runs Compass’ operations in Westchester alongside her husband Zach, are counseling their clients on how to prevail in a fierce bidding war.
According to Redfin, offers on single-family homes in August were most likely to be involved in a bidding war, at 56.6% of offers, followed by townhomes at 54.7% and condos at 41.3% – 54.5% of offers overall engaged in bidding wars.
With record-low interest rates, paltry inventory and a surge in buyers, agents are advising clients to be extraordinarily aggressive to win.
“You’ve got to really advise your clients appropriately, quickly and make sure that they know there’s not even a week to come see the property – you’ve got to go,” Harrison said. “The property comes on within 24 hours, and if it meets your buyers criteria you want to get them out to see it.”
When it comes to counseling a client through a bidding war, education is paramount, Harrison said. Prospective buyers need to be armed with as much data as possible about the market they’re targeting. Another critical element, according to agents, is not to make the deals contingent upon things like inspections and not to “nickel and dime” the client. That will set the prospective buyer apart, Harrison said.
“I’ve also been encouraging them to write kind of like a love letter so to speak to the sellers, so they’re not just like an offer on a piece of paper, they’re giving a little color about themselves, why they’re moving, why they like their house, and giving a picture of them so that the sellers can feel good about who they’re selling to and it’s not just about the numbers,” Harrison said.
Susan Hamblen, broker and owner of Long Island-based EXIT Realty Achieve, said that her agents are slammed with business, and homes that are “priced right” are getting offers within the first 24 hours.
“Homes are going $40,000 to $60,000 over ask, easily,” Hamblen said, attributing the bidding wars partly to the influx of buyers from New York City. “We have about two months of inventory and the buyer demand is just crazy.”
Eugene Cordano, vice president and director of sales at Halstead in New Jersey, said that in his market, bidding wars have triggered offers between 15% and 20% over asking, across all home prices.
To that tune, Cordano agreed with Harrison that it’s important to stick out in a bidding war.
“The old axioms of real estate do not change,” Cordano said. “But the highest bid does not always prevail.”
The influx of buyers from New York City to New Jersey at the beginning of April through June meant that there was more money to spend on homes.
“For our seller-clients, we were counseling them on how the buyers waive appraisals or waive mortgage contingencies,” Cordano said. “With the influx of New York City buyers bidding these houses up, oftentimes waiving the financing/mortgage/appraisal contingencies was not a difficult thing to ask for and most of them did that.”
When it comes to buyers, it’s a different story.
“If the buyer really wanted that home, it was often, “How do we structure this offer to make sure that it stands out and wins the day?’” Cordano said. “That’s not a scientific process. Sometimes that is something that’s very emotionally driven, or driven to the point where the buyer really wants it and is just willing to pay and will offer, either in price or in terms, something that will win the day versus all the other buyers that were there.”
Vickie Mox, an agent with RE/MAX Dallas Suburbs, covers the Collin County area, north of Dallas. She said the surrounding towns are busiest right now.
The Dallas suburbs of Frisco and Plano are the hottest because they have low rates of inventory and are priced to sell, spurring bidding wars, Mox said.
“Houses that are more unique with large lots and that have been totally updated [sell quicker], and there’s nothing for the buyer to do but move in,” Mox said. “[That listing] could conceivably have 10 offers, and that’s usually between the price range $250,000 to $400,000.”
Once you get over $400,000 there are fewer buyers and there’s less demand for the property, according to Mox.
“But a $500,000 house could have multiple offers if it has everything the buyers are looking for which is being updated to a large yard or a three-car garage, in the right neighborhood and right school district,” she said.
In Colorado Springs, which Redfin said recently has the No. 1 hottest ZIP code right now, there could be at least three to five offers on a home in the first 48 to 72 hours of being listed, according to Keller Williams Associate Broker Scott Sanchez.
“The typical thing here in the Springs has been a $10,000-plus minimum to go over list price,” Sanchez told HousingWire.
“Maybe two years ago it was kind of common for five grand over, maybe $10,000 tops,” Sanchez said. “Last year, you start getting into the $10,000 to $15,000 range and this year it’s been $20,000 on the good homes that are well marketed and even if they’re priced up, they still will get 20 grand over.”
Bidding wars aren’t necessarily uncommon for Peck Barham, a real estate agent at TeamBarham, Keller Williams Homewood outside Birmingham, Alabama, but not at this rate.
“We haven’t seen [bidding] quite like this,” Barham said. “I think in August something like 600 homes went under contract in a three-week period, which for Birmingham is a lot. That’s a lot of homes going real fast.”
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