Total existing-home sales increased 2.0% to a seasonally adjusted annual rate of 5.48 million in October from a downwardly revised 5.37 million in September. After last month’s increase, sales are at their strongest pace since June (5.51M), but still remain 0.9% below a year ago.
– Homes in more than half of the nation’s largest metros gained more than $10,000 in value in the last year, according to Zillow’s Housing Market Reports
– Nationally, home values rose 6.5 percent over the past year to a Zillow Home Value Index of $203,400 (ZHVI).
– The median-priced U.S. home is worth $12,500 more than it was in October 2016.
– Home values in booming West Coast markets have gained the most value over the last year. San Jose, Calif. home values rose $118,200 over past year, and Seattle home values rose $48,100.
– Homes in more than half of the nation’s largest metros are currently worth more than they were prior to the onset of the Great Recession.
– Rents across the country are up 2.2 percent year-over-year, to a Zillow Rent Index (ZRI) of $1,432 per month. Rents in Sacramento, Calif. and Riverside, Calif. are appreciating the fastest.
Seattle, WA – Nov. 22, 2017 (PRNewswire) Home values are setting new records, and homes are gaining thousands of dollars in value every month. The national median home value is $12,500 more than it was just one year ago, according to the October Zillow® Real Estate Market Report(i).
More than half of the nation’s largest markets are worth more than they were prior to the onset of the Great Recession. Home values in San Jose, Calif. gained the most in value over the last year, with homes worth 12.3 percent more than they were in October 2016, which translates to a $118,200 increase. Seattle – 11.7 percent – and Las Vegas – 11.2 percent – also saw double-digit home value appreciation over the past year.
Limited housing supply and heavy demand continue to play a role in driving up home prices. There are 11.7 percent fewer homes for sale in the U.S. than a year ago. Inventory has dropped most significantly in San Jose, San Francisco and San Diego over the past year. In San Jose, there are 60.4 percent fewer homes on the market than at this time last year. In San Francisco and San Diego there are 32 and 31 percent fewer homes fewer homes for sale, respectively.
“We are in the midst of an inventory crisis that shows no signs of waning, impacting potential buyers all across the country,” said Zillow Chief Economist Dr. Svenja Gudell. “Home values are growing at a historically fast pace, and those potential buyers want to get in the market while they still can. But with homes gaining so much value in just one year, buyers – especially first-time buyers – have to set aside more and more money for a down payment just to keep up with them. Unfortunately, there’s just not enough homes for sale, and demand will continue to drive prices higher until we reach a better balance between supply and demand.”
Annual rent appreciation grew for the sixth consecutive month, with rents increasing 2.2 percent from last October to a Zillow Rent Index(ii) of $1,432.
Mortgage rates(iii) on Zillow ended the month of October at 3.73 percent. Rates reached a monthly high of 3.82 percent near the end of the month, and the lowest rate of the month was 3.68 percent. Zillow’s real-time mortgage rates are based on thousands of custom mortgage quotes submitted daily to anonymous borrowers on the Zillow Mortgages site and reflect the most recent changes in the market.
Zillow is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and knowledge around the place they call home, and connecting them with the best local professionals who can help. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow’s Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of economists and data analysts produce extensive housing data and research covering more than 450 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. Launched in 2006, Zillow is owned and operated by Zillow Group, Inc. (NASDAQ: Z and ZG), and headquartered in Seattle.
Zillow is a registered trademark of Zillow, Inc.
(i) 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. All current monthly data at the national, state, metro, city, ZIP code and neighborhood level can be accessed at www.zillow.com/local-info/ and www.zillow.com/research/data.
(ii) The Zillow Rent Index (ZRI) is the median Rent Zestimate® (estimated monthly rental price) for a given geographic area on a given day, and includes the value of all single-family residences, condominiums, cooperatives and apartments in Zillow’s database, regardless of whether they are currently listed for rent. It is expressed in dollars.
(iii) Mortgage rates for a 30-year fixed mortgage
(iv) The Zillow Home Value Index (ZHVI) is the median estimated home value for a given geographic area on a given day and includes the value of all single-family residences, condominiums and cooperatives, regardless of whether they sold within a given period. It is expressed in dollars, and seasonally adjusted.
Washington, D.C. – November 21, 2017 (nar.realtor) Existing-home sales increased in October to their strongest pace since earlier this summer, but continual supply shortages led to fewer closings on an annual basis for the second straight month, according to the National Association of Realtors®.
Total existing-home sales(1), https://www.nar.realtor/existing-home-sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 2.0 percent to a seasonally adjusted annual rate of 5.48 million in October from a downwardly revised 5.37 million in September. After last month’s increase, sales are at their strongest pace since June (5.51 million), but still remain 0.9 percent below a year ago.
Lawrence Yun, NAR chief economist, says sales activity in October picked up for the second straight month, with increases in all four major regions. “Job growth in most of the country continues to carry on at a robust level and is starting to slowly push up wages, which is in turn giving households added assurance that now is a good time to buy a home,” he said. “While the housing market gained a little more momentum last month, sales are still below year ago levels because low inventory is limiting choices for prospective buyers and keeping price growth elevated.”
Added Yun, “The residual effects on sales from Hurricanes Harvey and Irma are still seen in parts of Texas and Florida. However, sales should completely bounce back to their pre-storm levels by the end of the year, as demand for buying in these areas was very strong before the storms.”
The median existing-home price(2) for all housing types in October was $247,000, up 5.5 percent from October 2016 ($234,100). October’s price increase marks the 68th straight month of year-over-year gains.
Total housing inventory(3) at the end of October decreased 3.2 percent to 1.80 million existing homes available for sale, and is now 10.4 percent lower than a year ago (2.01 million) and has fallen year-over-year for 29 consecutive months. Unsold inventory is at a 3.9-month supply at the current sales pace, which is down from 4.4 months a year ago.
Properties typically stayed on the market for 34 days in October, which is unchanged from last month and down from 41 days a year ago. Forty-seven percent of homes sold in October were on the market for less than a month.
Realtor.com®’s Market Hotness Index, measuring time on the market data and listings views per property, revealed that the hottest metro areas in October were San Jose-Sunnyvale-Santa Clara, Calif.; Vallejo-Fairfield, Calif.; San Francisco-Oakland-Hayward, Calif.; San Diego-Carlsbad, Calif.; and Boston-Cambridge-Newton, Mass.
“Listings — especially those in the affordable price range — continue to go under contract typically a week faster than a year ago, and even quicker in many areas where healthy job markets are driving sustained demand for buying,” said Yun. “With the seasonal decline in inventory beginning to occur in most markets, prospective buyers will likely continue to see competitive conditions through the winter.”
According to Freddie Mac, the average commitment rate (link is external) for a 30-year, conventional, fixed-rate mortgage rose to 3.90 percent in October (matches highest rate since June) from 3.81 percent in September. The average commitment rate for all of 2016 was 3.65 percent.
First-time buyers were 32 percent of sales in October, which is up from 29 percent in September but down from 33 percent a year ago. NAR’s 2017 Profile of Home Buyers and Sellers — released last month(4)— revealed that the annual share of first-time buyers was 34 percent.
NAR President Elizabeth Mendenhall, a sixth-generation Realtor® from Columbia, Missouri and CEO of RE/MAX Boone Realty, says the pending tax reform legislation in both the House and Senate is a direct attack on homeowners and homeownership, with the result being a tax increase on millions of middle-class homeowners in both large and small communities throughout the U.S.
“Making changes to the mortgage interest deduction, eliminating or capping the deduction for state and local taxes and modifying the rules on capital gains exemptions poses serious harm to millions of homeowners and future buyers,” said Mendenhall. “With first-time buyers struggling to reach the market, Congress should not be creating disincentives to buy and sell a home. Furthermore, adding $1.5 trillion to the national debt will raise future borrowing costs for our children and grandchildren.”
All-cash sales were 20 percent of transactions in October, unchanged from September and down from 22 percent a year ago. Individual investors, who account for many cash sales, purchased 13 percent of homes in October, down from 15 percent last month and unchanged from a year ago.
Distressed sales(5) — foreclosures and short sales — were 4 percent of sales in October, unchanged from last month and down from 5 percent year ago. Three percent of October sales were foreclosures and 1 percent were short sales.
Single-family and Condo/Co-op Sales
Single-family home sales climbed 2.1 percent to a seasonally adjusted annual rate of 4.87 million in October from 4.77 million in September, but are still 1.0 percent under the 4.92 million pace a year ago. The median existing single-family home price was $248,300 in October, up 5.4 percent from October 2016.
Existing condominium and co-op sales increased 1.7 percent to a seasonally adjusted annual rate of 610,000 units in October (unchanged from a year ago). The median existing condo price was $236,800 in October, which is 6.9 percent above a year ago.
October existing-home sales in the Northeast rose 4.2 percent to an annual rate of 740,000, (unchanged from a year ago). The median price in the Northeast was $272,800, which is 6.6 percent above October 2016.
In the Midwest, existing-home sales inched forward 0.8 percent to an annual rate of 1.31 million in October, but are still 1.5 percent below a year ago. The median price in the Midwest was $194,700, up 7.1 percent from a year ago.
Existing-home sales in the South increased 1.9 percent to an annual rate of 2.16 million in October, but are still 1.8 percent lower than a year ago. The median price in the South was $214,900, up 4.6 percent from a year ago.
Existing-home sales in the West grew 2.4 percent to an annual rate of 1.27 million in October, and are now 0.8 percent above a year ago. The median price in the West was $375,100, up 7.8 percent from October 2016.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.3 million members involved in all aspects of the residential and commercial real estate industries.
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NOTE: For local information, please contact the local association of Realtors® for data from local multiple listing services. Local MLS data is the most accurate source of sales and price information in specific areas, although there may be differences in reporting methodology.
1. Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings from Multiple Listing Services. Changes in sales trends outside of MLSs are not captured in the monthly series. NAR rebenchmarks home sales periodically using other sources to assess overall home sales trends, including sales not reported by MLSs.
Existing-home sales, based on closings, differ from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which account for more than 90 percent of total home sales, are based on a much larger data sample – about 40 percent of multiple listing service data each month – and typically are not subject to large prior-month revisions.
The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.
Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos.
2. The median price is where half sold for more and half sold for less; medians are more typical of market conditions than average prices, which are skewed higher by a relatively small share of upper-end transactions. The only valid comparisons for median prices are with the same period a year earlier due to seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if additional data is received.
The national median condo/co-op price often is higher than the median single-family home price because condos are concentrated in higher-cost housing markets. However, in a given area, single-family homes typically sell for more than condos as seen in NAR’s quarterly metro area price reports.
3. Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982 (prior to 1999, single-family sales accounted for more than 90 percent of transactions and condos were measured only on a quarterly basis).
4. Survey results represent owner-occupants and differ from separately reported monthly findings from NAR’s Realtors® Confidence Index, which include all types of buyers. Investors are under-represented in the annual study because survey questionnaires are mailed to the addresses of the property purchased and generally are not returned by absentee owners. Results include both new and existing homes.
5. Distressed sales (foreclosures and short sales), days on market, first-time buyers, all-cash transactions and investors are from a monthly survey for the NAR’s Realtors® Confidence Index, posted at Realtor.org.
NOTE: NAR’s Pending Home Sales Index for October is scheduled for release on November 29, and Existing-Home Sales for November will be released November 29; release times are 10:00 a.m. ET.
South Region rebounds from Hurricane Irma; overall market continues to see increased demand
Chicago, IL – Nov. 21, 2017 (PRNewswire) Home showings on the national level posted a 8.9 percent year-over-year increase in October, according to the November 2017 ShowingTime Showing Index.
The South Region had the highest year-over-year increase in showings, recording an 11.6 percent rise in showings compared to October 2016, negating concerns that buyers would be hesitant to engage in the market following Hurricane Irma’s impact in Florida and South Carolina. The Northeast Region increased 10.2 percent, while the Midwest Region posted an 8.1 percent increase. The West Region saw a 5.5 percent increase.
“As usual, showing traffic is entering the regular seasonal slowdown,” ShowingTime Chief Analytics Officer Daniil Cherkasskiy said. “But despite the time of year and the concerns raised after last month’s demand decreased by 10 to 30 percent in some southern markets following Hurricane Irma, buyers in the South Region have quickly returned to the market as buyer interest has rebounded to pre-hurricane levels.”
The ShowingTime Showing Index, the first of its kind in the residential real estate industry, is compiled using data from property showings scheduled across the country on listings using ShowingTime products and services, which facilitates more than 4 million showings each month. It tracks the average number of appointments received on an active listing during the month. The Showing Index, released the third week of each month, will eventually be released on a weekly basis.
ShowingTime is the leading market stats and showing management technology provider to the residential real estate industry. Its MarketStats division provides interactive tools and easy-to-read market reports for MLSs, associations, brokers, agents and other real estate companies. Its showing products and services take the inefficiencies out of the appointment scheduling process for real estate professionals, buyers and sellers, resulting in more showings, more feedback and quicker sales. ShowingTime products are used by 180-plus MLSs and associations representing more than 900,000 real estate professionals across the U.S. and Canada. Visit www.showingtime.com.
Analysis of 2017 foreclosures real estate market and forecast for 2018
Miami, FL – Nov. 20, 2017 (PRNewswire) The following is an analysis on the 2017 foreclosure market and the future in 2018 from BankForeclosuresSale.com.
With 2017 coming to an end, real estate investors and homebuyers alike are taking a look back at the development of the foreclosure market over the past 10 months. They’re also turning their attention to the 2018 market, with a focus on market trends, recent changes in real estate law, and if the political landscape will have any impact.
“It’s important for real estate investors and homebuyers to have a clear understanding of the foreclosure market, as past data and current trends can have a big impact on future decisions,” said Simon Campbell, Foreclosure Specialist of Bankforeclosuressale.com. “Even when the market appears to be steady, one thing we’ve seen in the past is that things don’t always stay the same for long.”
According to ATTOM Data Solutions, a provider of publicly recorded tax, deed, mortgage and foreclosure data, there were 424,800 foreclosure filings on United States properties during the first six months of 2017, signifying a decrease of 20 percent from the same period of 2016.
While the overall national trend was a decrease in foreclosure filings, some states and cities bucked the trend with an increase in activity. Here are some key data points provided by ATTOM:
Eight states, along with Washington, D.C., saw a year over year increase in foreclosures during the fix six months of the year.
Washington, D.C. experienced the largest increase, with foreclosure activity jumping 60 percent over the previous year.
Of the 217 metropolitan areas included in the report, 28 experienced an increase in foreclosures, with Oklahoma City leading the way at 22 percent.
New Jersey had the highest foreclosure rate during the first half of the year, with 0.99 percent of properties with a foreclosure.
The highest metro foreclosure rates belong to Atlantic City, New Jersey at 1.71 percent of properties, followed by Trenton, Philadelphia, Chicago and Pennsylvania.
Daren Blomquist, senior vice president with ATTOM Data Solutions, added the following in regards to the market in general:
“Although foreclosures are fading overall, there has been a notable an uptick in foreclosures completed by some non-bank entities — counter to the sharp downward foreclosure trend among big banks and government-backed loans.”
2018: A Big Year for the Real Estate Market
The Great Recession finally came to an end in 2009, after millions upon millions of Americans were forced into foreclosure.
According to Fannie Mae, the waiting period following a foreclosure is seven years, with the agency noting the following: “A seven-year waiting period is required, and is measured from the completion date of the foreclosure action as reported on the credit report or other foreclosure documents provided by the borrower.”
With this seven-year period coming to an end for those who faced foreclosure toward the end of the Great Recession, there’s reason to believe that the real estate market could pick back up.
Campbell said, “There’s no way of knowing if these buyers will dip their toes into the homeowner pool once again, but the possibility is definitely there. This alone could have a big impact on the real estate market as a whole in the year to come.”
To learn more about the foreclosure listings market or to search for foreclosed homes please visit Bankforeclosuressale.com online.
The November 2017 RE/MAX National Housing Report infographic shows housing market trends throughout 53 metro areas. The report is based on MLS information, includes all residential properties and is not annualized.