Daily Archives: March 20, 2018

Homebuyers Should Expect to Have Less Choice and Pay More This Spring

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Tight inventory and rapid price gains could make finding a home harder

Columbus, OH – March 19, 2018 (PRNewswire) Finding a home to buy is getting more difficult according to the latest Nationwide Health of Housing Markets Report (HoHM Report). High demand and an ultra-low level of homes for sale is driving rapid price increases and – more importantly for prospective buyers – less time on the market.

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“As we head into spring and the traditional season when sales heat up, buyers will find that desirable homes won’t be on the market for long,” said David Berson, Nationwide senior vice president and chief economist. “Today, the average home is on the market almost half the length of time that it was six years ago. Of course, that is good news for people looking to sell their home.”

HoHM report data show that the average home was on the market – the time from listing to signing a contract – for 67 days in 2017. That time is cut in half in the nation’s hottest markets. The typical home in Denver or Colorado Springs, for instance, was only on the market for about 33-34 days in 2017.

Other notable markets with low averages are:

  • San Francisco-Redwood City, Calif. (35 days)
  • San Diego-Carlsbad, Calif. (37 days)
  • Portland, Ore. (38 days)
  • Dallas-Plano-Irving, Texas (40 days)
  • Kansas City (41 days)

“Average days on the market across the country are extraordinarily low, especially in certain hot markets,” said Berson. “When you factor in the nationwide trend of rapidly increasing prices, it’s going to be a more difficult market for homebuyers this year.”

National outlook remains positive

Despite rapid price growth and affordability concerns, Berson remains positive on the national housing market outlook.

“Household formations have offset much of the negative price impacts,” he said. “The labor market is strong, and wages are increasing. Affordability remains a concern, especially for entry-level homebuyers in today’s low-inventory conditions, but most indicators point to healthy, sustainable local markets with only a few extreme exceptions.”

Four of the top 10 metro areas in the index are in Pennsylvania, and two of the top three are in Illinois. In order, the top 10 are: Johnstown, Pa.; Carbondale-Marion, Ill.; Springfield, Ill.; Farmington, N.M.; New Bern, N.C.; Chambersburg-Waynesboro, Pa.; Pittsburgh, Pa.; Auburn-Opelika, Ala.; Harrisburg-Carlisle, Pa.; and, Erie, Pa.

Delinquency rates throughout Florida and along the gulf coast of Texas spiked in 2017 Q4, likely an aftereffect of hurricanes that hit both areas in 2017. Four Texas MSAs, including Houston, were in the bottom 10 markets.

In order, the bottom 10 are: Victoria, Texas; Rapid City, S.D.; Sherman-Denison, Texas; Beaumont-Port Arthur, Texas; Anchorage, Alaska; Houston-Sugar Land, Texas; Pueblo, Colo.; Brunswick, Ga.; Rochester, Minn.; and, Coeur d’Alene, Idaho.

More information about the HoHM Report, including the methodology used, can be found at blog.nationwide.com/housing. The HoHM Report is released on a quarterly basis online and in print.

About Nationwide
Nationwide, a Fortune 100 company based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the U.S. and is rated A+ by both A.M. Best and Standard & Poor’s. The company provides a full range of insurance and financial services, including auto, commercial, homeowners, farm and life insurance; public and private sector retirement plans, annuities and mutual funds; banking and mortgages; excess & surplus, specialty and surety; pet, motorcycle and boat insurance. For more information, visit www.nationwide.com.

Nationwide, Nationwide is on your side and the Nationwide N and Eagle are service marks of Nationwide Mutual Insurance Company.

Contact:

Ryan Ankrom
(614) 249-5145
ryan.ankrom@nationwide.com

Jordan Fisher
(312) 240-2951
jordan.fisher@edelman.com

Inventory Limits February Home Sales While Pushing Up Prices

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March 2018 RE/MAX National Housing Report on MLS Data from 52 Metro Areas

Denver, CO – March 19, 2018 (PRNewswire) One word sums up February home sales across the country – inventory. The lack of homes for sale continues to be the key factor as February marks the third consecutive month of year-over-year declines in home sales, coupled with quick sales and record prices. To access the housing report infographic, visit: https://rem.ax/2phKHWT.

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According to the March RE/MAX National Housing Report, home sales dropped 0.2% from February 2017, while the Days on Market average of 62 days was the lowest of any February in the report’s nine-year history.

“We shared our outlook of the real estate market in the new year and it seems that even two months into 2018 we’re already seeing records break,” said RE/MAX CEO Adam Contos. “The February 2018 median sales price of $228,700 marks the 22nd consecutive month of year-over-year price increases.”

The Months Supply of Inventory was 3.1 – also a RE/MAX National Housing Report February record – and underscored an average decline in inventory of 13.7% among the 52 markets reporting.

“While the hot markets like Denver and San Francisco continue to see low supplies of inventory, we’re also watching more homebuyers migrate into unexpected markets,” added Contos. “In one year, Billings, Montana, saw a 59 percent increase in home sales, along with Boise, Idaho, with a 25 percent increase in sales.”

Out of 52 markets, 18 metro areas saw double-digit percentage increases in median sales price year-over-year. While only two metros saw a year-over-year decrease in median sales price – Albuquerque, NM, and Burlington, VT.

Closed Transactions
Of the 52 metro areas surveyed in February 2018, the overall average number of home sales increased +3.5% compared to January 2018 and decreased -0.2% compared to February 2017. Twenty-six of the 52 metro areas experienced an increase in sales year-over-year including, Billings, MT, +59.2%, Boise, ID, +25.4%, Burlington, VT, +20.4%, Milwaukee, WI, +19.6% and Richmond, VA, at +13.2%

Median Sales Price – Median of 52 metro median prices
In February 2018, the median of all 52 metro Median Sales Prices was $228,700, up +2.3% from January 2018 and up +8.1% from February 2017. Two metro areas saw a year-over-year decrease in Median Sales Price, Albuquerque, NM, -0.2% and Burlington, VT, -5.2%. Eighteen metro areas increased year-over-year by double-digit percentages, with the largest increases seen in Las Vegas, NV, +15.6%, San Francisco, CA, +15.5%, Seattle, WA, +15.4%, Pittsburgh, PA, +14.8% and Minneapolis, MN, +13.3%.

Days on Market – Average of 52 metro areas
The average Days on Market for homes sold in February 2018 was 62, up two days from the average in January 2018, and down six days from the February 2017 average. The metro areas with the lowest Days on Market were Las Vegas, NV, and San Diego, CA, at 36, Denver, CO, and Nashville, TN, both at 35, and Seattle, WA, at 33. The highest Days on Market averages were in Wilmington, DE, at 117, Wichita, KS, at 101, Washington, D.C., at 99 and Tulsa, OK, at 93. Days on Market is the number of days between when a home is first listed in an MLS and a sales contract is signed.

Months Supply of Inventory – Average of 52 metro areas
The number of homes for sale in February 2018 was down -1.0% from January 2018, and down -13.7% from February 2017. Based on the rate of home sales in February, the Months Supply of Inventory decreased to 3.1 from January 2018 at 3.4, as well as decreased compared to February 2017 at 3.6. A 6.0-months supply indicates a market balanced equally between buyers and sellers. In February 2018, 48 of the 52 metro areas surveyed reported a months supply at or less than 6.0, which is typically considered a seller’s market. The metro areas that saw a months supply above 6.0, which is typically considered a buyer’s market, were Miami, FL, at 7.0, New Orleans, LA, at 6.8, Augusta, ME, at 6.5 and Burlington, VT, at 6.4. The markets with the lowest Months Supply of Inventory continued to be in the west with Denver, CO, and Seattle, WA, at 1.0 and San Francisco, CA, at 1.1.

For specific data in this report or to request an interview, please contact newsroom@remax.com.

About the RE/MAX Network:
RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. Over 115,000 agents provide RE/MAX a global reach of more than 100 countries and territories. Nobody sells more real estate than RE/MAX, when measured by residential transaction sides. RE/MAX, LLC, one of the world’s leading franchisors of real estate brokerage services, is a wholly-owned subsidiary of RMCO, LLC, which is controlled and managed by RE/MAX Holdings, Inc. (NYSE: RMAX). With a passion for the communities in which its agents live and work, RE/MAX is proud to have raised more than $167 million for Children’s Miracle Network Hospitals® and other charities. For more information about RE/MAX, to search home listings or find an agent in your community, please visit www.remax.com. For the latest news about RE/MAX, please visit www.remax.com/newsroom.

Description
The RE/MAX National Housing Report is distributed each month on or about the 15th. The first Report was distributed in August 2008. The Report is based on MLS data in approximately 52 metropolitan areas, includes all residential property types, and is not annualized. For maximum representation, many of the largest metro areas in the country are represented, and an attempt is made to include at least one metro from each state. Metro area definitions include the specific counties established by the U.S. Government’s Office of Management and Budget, with some exceptions.

Definitions
Transactions are the total number of closed residential transactions during the given month. Months Supply of Inventory is the total number of residential properties listed for sale at the end of the month (current inventory) divided by the number of sales contracts signed (pended) during the month. Where “pended” data is unavailable, this calculation is made using closed transactions. Days on Market is the number of days that pass from the time a property is listed until the property goes under contract for all residential properties sold during the month. Median Sales Price is the median of the median sales prices in each of the metro areas included in the survey.

MLS data is provided by contracted data aggregators, RE/MAX brokerages and regional offices. While MLS data is believed to be accurate, it cannot be guaranteed. MLS data is constantly being updated, making any analysis a snapshot at a particular time. Every month the RE/MAX National Housing Report re-calculates the previous period’s data to ensure accuracy over time. All raw data remains the intellectual property of each local MLS organization.

Realtors® Urge Permanent Mortgage Forgiveness Debt Exclusion

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Washington, D.C. – March 14, 2018 (nar.realtor) The exclusion for forgiven home mortgage debt following a foreclosure, short sale or loan modification should be made permanent to provide relief to troubled borrowers and minimize the damage to families, neighborhoods and communities.

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That’s according to testimony (link is external) today from the National Association of Realtors® before the U.S. House Ways and Means Subcommittee on Tax Policy at a hearing evaluating recently expired tax provisions.

NAR has long advocated for mortgage forgiveness tax relief, policy that was first established in 2007 at the onset of the housing and economic downturn and that has expired and been extended several times; most recently, early in 2018, it was retroactively extended to cover 2017. Without the exclusion, the debt that lenders forgive is considered taxable income and adds a tax burden at a time when an individual or family has experienced a true economic loss. NAR believes most of these people are already in financial distress and likely unable to pay additional taxes.

“The exclusion for mortgage debt cancellation delivers a huge dose of fairness. When the investment in a home goes well, and the owner sells at a gain, the tax code generously waives capital gains up to $500,000,” said Realtor® Barry Grooms, 2018 vice president of Florida Realtors®, who testified on NAR’s behalf. “But what happens when things go sour, equity is lost and the family is forced to sell short? Up through last year, the exclusion stepped in and relieved the often-impossible tax burden. If allowed to expire, we are left with a tax policy that rewards good fortune but piles on when the tables are turned. This is neither fair nor smart.”

© National Association of REALTORS® Barry Grooms giving NAR testimony at the House Ways and Means Committee on Wednesday, March 14, 2018.

© National Association of REALTORS® Barry Grooms giving NAR testimony at the House Ways and Means Committee on Wednesday, March 14, 2018.

While the home equity situation in America is much better today and the volume of short sales and foreclosures has receded from record highs, there are still about 2.5 million homes underwater, according to industry data. This is down considerably from the downturn, when as many as a quarter of mortgaged homes in the U.S. had negative equity. Nonetheless, there are still a significant number of individuals struggling to keep up with their mortgage payments, and the exclusion is vital for lessening the financial impacts of a foreclosure, short sale or loan restructure and saving distressed families from a dire hardship.

© National Association of REALTORS® Rep. Vern Buchanan (R-Fla.), chairman of the U.S. House Ways and Means Subcommittee on Tax Policy, speaking with Realtor(R) Barry Grooms.

© National Association of REALTORS® Rep. Vern Buchanan (R-Fla.), chairman of the U.S. House Ways and Means Subcommittee on Tax Policy, speaking with Realtor(R) Barry Grooms.

In his testimony, Grooms urged Congress to make mortgage cancellation relief a permanent provision since the exclusion has already expired, leaving the future of troubled borrowers in serious doubt.

“Cases of negative home equity will ebb and flow as well, even with a stronger economy,” said Grooms. “This is why we need a permanent exclusion to minimize the damage to families, neighborhoods and communities.”

Additional information on NAR’s mortgage debt cancellation tax relief efforts is available at www.nar.realtor/topics/mortgage-debt-cancellation-relief.

The National Association of Realtors® is America’s largest trade association, representing 1.3 million members involved in all aspects of the residential and commercial real estate industries.