The National Association of Realtors(NAR) recently released their latest Existing Home Sales Report, which revealed that homes were on the market for an average of 28 days in June. This is a slight increase from the 27 days reported in May, but down from 34 days reported a year ago.
54% of homes across the country were on the market for less than a month in June!
Among the 27 states with homes selling in 30 days or less are Washington, Utah, California, and Colorado. The map below was created using results from NAR’s Monthly Realtors Confidence Index Survey.
Buyer demand is increasing as theinventory of homes available for sale remains low. If you are thinking about listing your home for sale this year, let’s meet up so I can help you take advantage of current market conditions!
Spring is traditionally the busiest season for real estate. Buyers, experiencing cabin fever all winter, emerge like flowers through the snow in search of their dream home. Homeowners, in preparation for the increased demand, are enticed to list their house for sale and move on to the home that will better fit their needs.
NewdatafromCoreLogicshows that even though buyers came out in force, as predicted, homeowners did not make the jump to list their home in the second quarter of this year. Frank Nothaft,Chief Economist for CoreLogichad this to say,
“The growth in sales is slowing down, and this is not due to lack of affordability, but rather a lack of inventory. As of Q2 2017, the unsold inventory as a share of all households is 1.9 percent,which is the lowest Q2 reading in over 30 years.”
CoreLogic’s President & CEO,Frank Martell added,
“Home prices are marching ever higher,up almost 50 percent since the trough in March 2011.
While low mortgage rates are keeping the market affordable from a monthly payment perspective, affordability will likely become a much bigger challenge in the years ahead until the industry resolves the housing supply challenge.”
Overall inventory across the United States is down for the 25thconsecutive month according to the latestreportfrom theNational Association of Realtorsand now stands at a 4.3-month supply.
Real estate is local.
Market conditions in the starter and trade-up home markets are in line with the median US figures, but conditions in the luxury and premium markets are following an opposite path. Premium homes are staying on the market longer with ample inventory to suggest a buyer’s market.
Buyers are out in force, and there has never been a better time to move-up to a premium or luxury home. If you are considering selling your starter or trade-up home and moving up this year, let’s get together to discuss the exact conditions in our area.
Recent headlines exclaimed the homeownership rate, asreported by theCensus Bureau, rose again in the second quarter of 2017. What didn’t get much attention in the reports is that the homeownership rate for American households under the age of 35 increased a full percentage point from last quarter’s 34.3% to 35.3%. Millennials proved to have the highest increase of any age group.
This came as a surprise to some considering Millennials have come to be known as the “renter” generation. However, a new study byFirst American,6 Trends Poised to Reshape Homeownership Demand,revealed reasons why homeownership numbers will continue to increase for Millennials.
Millennials are the most educated generation in the U.S.
Why does that matter? First American explains:
“Our model shows that, all other factors being equal, the likelihood of homeownership increases by 3 percent for those that earn a bachelor’s degree over those with a high school degree. The likelihood of homeownership jumps another 3 percent for those that earn a graduate degree.”
The more educated, the better the likelihood for homeownership. And, as we mentioned: Millennials are the most educated generation in the U.S.
Homes & marriage go together
Marriage is a key determinate in homeownership. According to an analysis byFirst American, the homeownership rate is 30% higher among married couples compared to non-married households.
Millennials have put off marriage in the pursuit of higher education. As this group ages, more and more will marry and purchase a home.
Parents buy houses
According to the study:
“The homeownership rate is 1.7% higher for households with one or two children compared to households with no children, and it is 5.4 percent higher for households with three or more children.”
The report goes on to say that as Millennials grow older there may be an increase in not just marriage but also in married couples with children. That will probably also create a “corresponding” increase in homeownership demand.
Wages and the economy
The study goes on to explain that recent gains in income growth and a strengthening economy will also help all generations (including Millennials) be more willing and able to purchase a new home.
We guess the time has come to announce –Here come the Millennials!!
Buyer Demand Continues Outpacing the Supply of Homes for Sale
Buyer Demand Continues Outpacing the Supply of Homes for Sale
The price of any item is determined by the supply of that item, as well as the market demand. TheNational Association of REALTORS(NAR) surveys “over 50,000 real estate practitioners about their expectations for home sales, prices and market conditions” for their monthly REALTORS Confidence Index.
Their latest edition sheds some light on the relationship between Seller Traffic (supply) and Buyer Traffic (demand).
The map below was created after asking the question: “How would you rate buyer traffic in your area?”
The darker the blue, the stronger the demand for homes in that area. Only three states had a ‘stable’ demand level.
The index also asked: “How would you rate seller traffic in your area?”
As you can see from the map below, 21 states report a ‘weak’ sellers traffic, 25 states report a ‘stable’ sellers traffic, only 4 states and DC report a ‘strong’ sellers traffic. Meaning there are far fewer homes on the market than what is needed to satisfy the buyers who are out looking for their dream homes.
Looking at the maps above, it is not hard to see why prices are appreciating inmany areasof the country. Until the supply of homes for sale starts to meet the buyer demand, prices will continue to increase. If you are debating listing your home for sale, let’s get together to help you capitalize on the demand in the market now!
U.S. Housing Inventory Hits a New Low… List Your House TODAY!
U.S. Housing Inventory Hits a New Low… List Your House TODAY!
Everysummer, families across the country decide if this will be the year they sell their current house and move into their dream home.
Mortgage rateshave hovered around 4% for all of 2017, forcing buyers off the fence and into the market, resulting in incredibly strong demand RIGHT NOW!! At the same time, inventory levels of homes for sale have dropped dramatically as compared to this time last year.
Truliareportedthat “U.S. home inventory has tumbled 8.9% over the pastyearand has now fallen for nine consecutive quarters.” There is now 20% less inventory than there was five years ago.
Here is a chart showing the decrease in inventory levels by category:
Demand for your home is very strong right now while your competition (other homes for sale) is at a historically low level. If you are thinking of selling in 2017, now may be the perfect time.
Contact me for my no-cost assistance and expertise in outperforming the market when selling your home.
Average Time to Close: 45 Days
Average Time to Close: 45 Days
DAILY REAL ESTATE NEWS | THURSDAY, JUNE 16, 2016
For home buyers financing a home purchase, they should expect about 45 days to close, according to the latest Origination Insight Report from Ellie Mae. Last month the average closing time was 44 days.
VA loans rose from 48 days in April to 49 days in May, according to the report.
The closing rate for all loans in May rose to 70 percent. Purchase closing rates were 75 percent and refinancing closing rates rose to 67 percent.
Borrowers’ continued to have high credit scores. For conventional loans, 82 percent of the borrowers had credit scores over 700. On the other hand, only 39 percent of borrowers with FHA loans had credit scores higher than 700.
Overall, mortgages for home purchases are accounting for more originations. Purchase mortgages rose to 62 percent of all closed loans in May, marking the first time since August 2015 it reached over 60 percent.
Indeed, inventory of homes priced between $500,000 to $750,000 increased nearly 16 percent in March compared to a year ago, according to data from NAR. What’s more, inventory for real estate priced more than $1 million increased 12.6 percent year-over-year.
As more expensive homes linger on the market, buyers are finding more bargaining power.
For sellers, this may be a tough realization that the power is shifting. Shannon Baird, a broker with Living Room Realty in Portland, Ore., says that a major challenge is changing the mindset of home sellers who are hearing news of quick sales and bidding wars. But that’s not the case in the upper price bracket in many markets.
Stock market volatility has made some wealthy buyers more cautious to jump into a big home purchase at the moment. Also, fewer foreign buyers are on the market as the dollar strengthens, says Lawrence Yun, NAR’s chief economist.
“The stock market has come back up, but we don’t know yet if that means the upper-end home buying market will begin to return,” Yun says.
Fannie Mae’s Home Purchase Sentiment Index zoomed to an all-time high in May as consumers get more upbeat about their paychecks and home selling. In May, the index reached a reading of 85.3, which follows an 18-month low reached in March.
Three of six components the index measures registered increases last month, led by a 7 percentage point increase in the number of consumers reporting significantly higher income than a year ago. Also, the number of consumers who expect home prices to increase over the next 12 months rose 5 percentage points. Consumers were also upbeat that mortgage rates would decrease over the next year as well.
That said, the index indicator on whether it’s a “good time to buy” dropped 1 percentage point to an all-time survey low in May.
“Continued home price appreciation has been squeezing housing affordability, driving a two-year downward trend in the share of consumers who think it’s a good time to buy a home,” says Doug Duncan, senior vice president and chief economist at Fannie Mae. “The current low mortgage rate environment has helped ease this pressure, and fewer than half of consumers expect rates to go up in the next year. While the May increase in income growth perceptions could provide further support to prospective home buyers as the spring/summer homebuying season gains momentum, the effect may be muted by May’s discouraging jobs report.”
Here’s a closer look at additional findings from Fannie Mae’s latest index reading:
29 percent of Americans say now is a good time to buy a home, a drop of 1 percentage point from March and an all-time survey low for the second consecutive month.
52 percent of consumers believe now is a good time to sell a home – an all-time survey high.
42 percent of Americans believe that home prices will go up.
72 percent of Americans say they are not concerned with losing their job, a drop of 2 percentage points from March.
18 percent of Americans say their household income is significantly higher than it was a year ago, up 7 percentage points from March and at an all-time survey high.
Sellers Happy, But Home Buyers Are Frustrated- WHY?
Sellers Happy, But Home Buyers Are Frustrated
DAILY REAL ESTATE NEWS | TUESDAY, MAY 10, 2016
The number of home buyers who say now is a good time to buy dipped to an all-time survey low in Fannie Mae’s latest Home Purchase Sentiment Index. Meanwhile, home owners who say now is a good time to sell soared to an all-time survey high.
The disconnect in the market is likely partially due to the limited number of homes for sale in many markets, allowing sellers to face less competition and ask for higher home prices. On the other hand, home buyers are having fewer choices and stuck paying higher prices, sometimes in multiple-bid situations.
Indeed, “we can partially attribute the sizable gain in April in home selling optimism both to a correction for last month’s unexpected dip and to typical seasonal strength in housing activity in the spring and summer,” says Doug Duncan, senior vice president and chief economist at Fannie Mae. “Even after accounting for these factors, continued tight housing supply has led to renewed strength in home price appreciation, making selling a home a more attractive prospect this year in particular. This improved sentiment could provide an extra boost of much-needed supply for the spring selling season.”
Some highlights from Fannie Mae’s latest Home Purchase Sentiment Index:
30% of Americans say now is a good time to purchase a home, a drop of 3 percentage points from the previous month and now at an all-time survey low.
15% of Americans say now is a good time to sell a home, now at an all-time survey high.
More consumers think home prices will rise over the next 12 months compared to March, and slightly fewer consumers also expect mortgage rates to go up over the next year.
The percentage of respondents who say they are not concerned with losing their job increased 6 percentage points to 74%, nearly a 7 percentage point decrease in March.
The percentage of respondents who say their household income is significantly higher than it was 12 months ago held at 11%.
One of our favorite things about Atlanta is that it is always changing. There is always a new restaurant to try, a new neighborhood to explore, a new neighbor to meet. Real estate in Atlanta is no different, with new construction and renovations happening constantly. Despite the changing nature of Atlanta as a city, we have identified four trends in Atlanta real estate that show no signs of stopping.
1- Multifamily developments thrive Intown: Homebuyers seeking a single family home might want to focus their search outside of the Perimeter. New construction Intown is, and will continue to be, primarily condo and townhome focused. Luckily, homebuyers looking for Intown single family homes can look to the huge inventory of renovation-ready homes, or look to Intown suburbs, such as Brookhaven or South of I-20, for new construction Intown.
2- Buyers love South of I-20: Buyers are flocking to neighborhoods like Kirkwood, Adair Park, Capitol View, Edgewood and West End for the affordable housing and vibrant communities. Redevelopment in the area has made South Atlanta an incredibly desirable area for buyers looking for high walkability and who are drawn to perks of the area, such as the Beltline. With Georgia State University’s redevelopment of Turner Field, the sky is truly the limit for the neighborhoods south of I-20.
3- Millenial homebuyers: Millenials were slow out of the gate to buy homes. High unemployment and student loan debt have prevented Gen Y from buying where their older counterparts were able. However, Atlanta is well known for being millennial-friendly. Realtor.com sites Atlanta as the number one location for millennial homebuyers thanks to the availability of jobs and affordability of the housing market in Atlanta.
4– Mixed use developments OTP: Live, work, play developments are hot, hot, hot! The developments that have now become a staple of Intown Atlanta life (hello, Ponce City Market, Atlantic Station, etc.) have officially made their way OTP, most notably with Alpharetta’s wildly popular The Avalon. Suburban residents have spoken and developers have taken note; there are plenty of mixed-used developments planned for 2016 outside of I-285.