Nationally: Has the Inventory Crunch Begun to Subside? National Association of REALTORS® | July 30, 2018
Contract signings rose in all four major regions across the U.S. last month, a sign that dwindling home sales—which have plagued the market at an unusual time of year this summer—will reverse course in the coming months, the National Association of REALTORS® reports.
NAR’s Pending Home Sales Index, a forward-looking indicator based on contract signings, increased 0.9 percent month over month in June to a reading of 106.9. “After two straight months of declines in pending home sales, home shoppers in a majority of markets had a little more success finding a home to buy last month,” says NAR Chief Economist Lawrence Yun. “The positive forces of faster economic growth and steady hiring are being met by the negative forces of higher home prices and mortgage rates. Even with slightly more homeowners putting their home on the market, inventory is still subpar and not meeting demand. As a result, affordability constraints are pricing out some would-be buyers and keeping overall sales activity below last year’s pace.”
Despite last month’s rise, contract signings are still down 2.5 percent compared to a year ago, NAR reports. Nevertheless, Yun says the worst of the supply crunch may now have passed. In June, existing inventory was up slightly on an annual basis, marking the first increase in three years. Several large metros saw year-over-year surges in inventory levels last month:
Portland, Oregon.: +24 percent
Providence, Rhode Island: +20 percent
Seattle, Washington: +19 percent
Nashville, Tennessee: +17 percent
San Jose, California: +15 percent
“Home price growth remains swift, and listings are still going under contract at a robust pace in most of the country, which indicates that even with rising inventory in many markets, demand still significantly outpaces what’s available for sale,” Yun says. “However, if this trend of increasing supply continues in the months ahead, prospective buyers will hopefully begin to see more choices and softer price growth.”
U.S. News Reveals Best Places to Live List U.S. News & World Report article by Daily Real Estate News | April 11, 2018
Austin, Texas, ranked number one for the second year in a row as the top place to live in the United States, according to new rankings released by U.S. News & World Report. The magazine ranks the 125 largest metros based on affordability, employment prospects, and quality of life each year.
“When deciding on a place to settle down, it’s important to understand that where a person lives can impact their well-being,” says Kim Castro, executive editor at U.S. News. “The top-ranked places are areas where citizens can feel the most fulfilled socially, physically, and financially.”
Markets with the Most Rapid Home Sales realtor.com article by Daily Real Estate News | March 13, 2018
In some markets, homes are selling at record speeds. Realtor.com®’s research team scoured the listing data to find which markets are seeing the quickest sales, based on the median number of days on the market.
The number of days spent on the market is important for sellers and prospective buyers to know, says realtor.com®’s chief economist Danielle Hale.
“That info can give home buyers an idea of how much competition they face, how limited homes are in the market, and how quickly they need to make a decision if they find a home they like,” says Hale. For sellers, it can give them an idea of how long they may have to move elsewhere.
The median number of days on the market nationwide is dropping due to an imbalance in many places in the low supply of homes compared to high demand from buyers.
Out of the nation’s 300 largest metros, realtor.com®’s research team found that the following places saw the lowest number of days on the market for its homes for sale: (Note: realtor.com® limited its ranking to one metro per state for geographic diversity.)
Target Markets for Investors in 2017 Article by Daily Real Estate News | January 18, 2017
For prime investment locations, it may be time to look South. Forbes teamed up with Local Market Monitor, a company that tracks more than 300 housing markets, to uncover the top cities for investors in the new year. The markets that dominate this year’s list reflect two major benefits: affordability and growth.
If you are planning on making an investment, either by buying a home or by buying a rental property, these are really good markets,” says Ingo Winzer, Local Market Monitor CEO. “These are markets where… you are probably going to get a good return and you are not taking an extraordinary risk.”
Dallas topped this year’s list. Home prices there average $233,000, up nearly 4 percent from a year ago. Yet, the city’s housing market is still considered underpriced by 3 percent compared to its historic average. Local Market Monitor predicts home prices in Dallas to increase 31 percent by 2020, due to a boom in job and population growth.
Here are the 15 cities investors could do particularly well in this year, according to the study:
Dallas, TX: 31% (the percentage increase predicted for home prices by 2020)
50 Markets Ranked: Where Does Yours Fall? Article by Daily Real Estate News | October 25, 2016
Who has the hottest single-family housing market this fall? Fort Lauderdale, Fla., according to a new report released by Ten-X, an online real estate marketplace. Ten-X ranked the 50 largest single-family housing markets for fall 2016 based on current and forecasted fundamentals.
Florida markets continue to dominate its list for the second consecutive season.
“Florida’s housing market continues to set the pace for the nation, with five of the top 10 metros on our report,” says Rick Sharga, Ten-X executive vice president. “While all of the top five markets took substantial hits during the housing crash, especially Las Vegas, the continued road to recovery for these destination cities is looking even brighter.”
The five single-family markets topping Ten-X’s list for this fall are: Fort Lauderdale, Fla.; Palm Beach County, Fla.; Tampa, Fla.; Orlando; and Las Vegas.
The rankings factor in pricing, sales, permit activity, and economic growth, population growth.
The number of homes where sellers have cut their asking price is up 17.6 percent, according to a ZipRealty survey that analyzed MLS-listed properties in 26 markets.
“In more than half of the surveyed markets, sellers are averaging at least two reductions in price,” says John Oldham, director of marketing for ZipRealty. “Inventory has grown throughout much of the year. As sellers face the pressure of more buying options, they seem to be discounting to attract buyers resulting in list prices being cut for over 46 percent of the homes.”
The median reduction amount has averaged 1.7 percent to $19,088.
Florida leads the nation in the largest percentage of discounts to the original list price, with Orlando (12.5 percent discount), Jacksonville (12.1 percent), and Miami/Ft. Lauderdale/Palm Beach (11.9) leading the pack.
The top 5 markets with the largest overall median price reduction in absolute dollars include:
San Francisco: $32,500 median price reduction
Orange County, Calif.: $31,000
San Diego: $29,100
Miami/Ft. Lauderdale/Palm Beach: $25,000
Source: “ZipRealty’s Monthly Price Reduction Index Reports Double Digit Increase in Number of Price Reduced Home Listings Over Last Year,” ZipRealty (Feb. 10, 2011); Blog distribution provided by Kenneth Bargers and Bargers Solutions residential real estate services located in Nashville, Tennessee
Foreign investors are swarming Miami, buying up property and paying with cash.
Individual investors from Argentina, Canada, Columbia, France, Israel, Italy, Norway, and Venezuela are investing in what they see as a fire sale of U.S. property.
“I have never seen such a high concentration of foreign nationals acquiring real estate,” says Peter Zalewski, who has been in real estate for 15 years and founded Condo Vultures, a consulting and brokerage firm. “Eighty percent of the sales in downtown Miami are foreign-based. This is unprecedented.”
Practitioners say they are also seeing similar sales in Seattle, Washington, D.C., New York, Las Vegas, Los Angeles, and San Francisco.
To meet demand, real estate brokers are hiring sales associates who can speak multiple languages and are investing in overseas marketing tools.