National Home Values Surpass Peak

– The median home value across the country is now $198,000, 1 percent higher than peak value hit in April 2007, according to the April Zillow® Real Estate Market Reports

– National home values have returned to peak value for the first time in over a decade.

– U.S. home values rose 7.3 percent over the past year to a Zillow Home Value Index (ZHVI) of $198,000. During the housing boom, home values hit a peak of $196,600.

– Rents rose 0.7 percent over the past year to a Zillow Rent Index (ZRI) of $1,412 per month. Rents in Seattle and Sacramento, Calif. are rising the most.

– There are almost 8 percent fewer homes on the market this year than last, with Minneapolis, Columbus, Ohio and Seattle reporting the greatest drop in inventory.

– Mortgage rates on Zillow ended April at 3.83 percent, down from a high of 3.88 percent in the first few weeks of the month.

Seattle, WA – May 25, 2017 (PRNewswire) National home values have surpassed the peak hit during the housing bubble and are at their highest value in more than a decade, according to the April Zillow® Real Estate Market Reports(i). The median home value in the U.S. is now $198,000, 1 percent higher than peak value hit in 2007.

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Home values across the country rose 7.3 percent since last April, the strongest rate of appreciation in more than 10 years. Seattle, Dallas and Tampa reported the greatest home value growth over the past year. Home values in Seattle rose almost 12 percent, to a median home value of $432,300. Dallas and Tampa home values rose 11 percent year-over-year.

When the housing market crashed a decade ago, home values plummeted and it has taken about 10 years for median home values to reach prior peaks. However, some markets’ median home values recovered more quickly than others. Among the 32 largest U.S. metros, 10 markets saw their median home value exceed prior bubble peaks more than a year ago, while 17 have yet to regain peak value.

“Now that the typical U.S. home is worth more than ever, people may be tempted to ask if we’re in another national housing bubble,” said Zillow Chief Economist Dr. Svenja Gudell. “We aren’t in a bubble, and won’t be entering one anytime soon. There are big differences between the market then and the market now: Then, loose credit, speculation and overbuilding were ingredients in a recipe for disaster. Now, healthy home buyer demand is being driven largely by a stable economy and demographic tailwinds, which is exactly what we would expect in a healthy market. Supply has been slow to catch up to this demand, which is causing home values to grow at a faster clip than we might otherwise expect. Beyond that, the market’s fundamentals look largely healthy. Homes are largely more affordable in most markets today than they were prior to the bust, and will remain so for the foreseeable future, even if mortgage rates rise. Americans clearly continue to see the value in homeownership, especially young Americans, which bodes well for the future.”

Median rent across the nation rose 0.7 percent since last April, to a median payment of $1,412 per month. Seattle, Sacramento, Calif. and Los Angeles reporting the greatest year-over-year rent appreciation among the 35 largest U.S. metros. Rents in Seattle are up 6 percent to a Zillow Rent Index(ii) (ZRI) of $2,114. Rents in Sacramento are up almost 5 percent, while Los Angeles rents are up 4 percent.

One of the greatest hurdles for home shoppers this summer will be low inventory. There are 8 percent fewer homes on the market than a year ago, with Minneapolis, Columbus, Ohio and Seattle reporting the greatest drop. There are 27 percent fewer homes on the market than a year ago in Minneapolis and Columbus, and 20 percent fewer in Seattle.

In April, mortgage rates(iii) on Zillow ended at 3.83 percent, the lowest month-ending rate since October 2016. Mortgage rates in April hit a high of 3.88 percent in the first few weeks of the month(iv), with the month low at 3.74 percent(v). 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.

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About Zillow

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 (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) Rates for a 30-year fixed mortgage.

(iv) Month highs occurred on April 3rd, 5th and 10th.

(v) Month low occurred on April 18th.

(vi) 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.

One In Four U.S. Housing Markets Less Affordable Than Historic Affordability Averages In First Quarter Of 2017

U.S. Affordability Index Drops to a More Than 8-Year Low Despite Annual Wage Growth Outpacing Home Price Growth in 53 of Local Markets

Irvine, CA – March 30, 2017 (PRNewswire) ATTOM Data Solutions, curator of the nation’s largest fused property database, today released its Q1 2017 U.S. Home Affordability Index, which shows that one in every four county housing markets analyzed for the report were less affordable than their historic affordability averages in the first quarter of 2017.

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A total of 95 counties out of 379 counties analyzed for the report (25 percent) posted an affordability index below 100 in Q1 2017 — the highest share of markets below the normal affordability index of 100 since Q4 2009. An affordability index below 100 means that the share of averages wages needed to buy a median-priced home is above the historic average for a given market.

Nationally the affordability index in the first quarter of 2017 was 103, down from 108 in the previous quarter and down from 119 a year ago to the lowest level since Q4 2008 — a more than eight-year low.

“Home affordability continued to worsen in the first quarter, not surprising given the continued strong growth in home prices combined with the recent rise in mortgage rates,” said Daren Blomquist, senior vice president at ATTOM Data Solutions. “Stronger wage growth is the silver lining in this report, outpacing home price growth in more than half of the markets for the first time since Q1 2012, when median home prices were still falling nationwide.”

More than 43 percent of average wages needed to buy a home in 97 counties

Average wage earners would need to spend more than 43 percent of their income — the maximum debt-to-income ratio allowed for a “qualified mortgage” under guidelines from the Consumer Financial Protection Bureau (CFPB) — to buy a median-priced home in 97 of the 379 counties (26 percent) analyzed for the report.

“Many homebuyers have been priced out of the Seattle housing market, forcing them to buy in other counties and commute,” said Matthew Gardner, chief economist at Windermere Real Estate, covering the Seattle housing market, where all three counties in the metro area posted worsening affordability compared to a year ago. “The data also shows that the affordability level in King County has eroded to levels we haven’t seen since 2010. Moreover, I believe that it will get worse before it gets better thanks to our growing population, inadequate infrastructure, and land constraints.”

Least affordable and most affordable counties

Average wage earners would need to spend more than 100 percent of their income to buy a median-priced home in five of the 379 counties analyzed. View full report for the list.

Average wage earners would need to spend less than 15 percent of their income to buy a median-priced home in 12 of the 379 counties analyzed. View full report for the list.

“Consumer confidence is increasing, as we are seeing a year-over-year wage increase. The wage increase, coupled with shortage of inventory, is creating a market where we are seeing median home prices increase over historic pricing,” said Matthew Watercutter, senior regional vice president and broker of record for HER Realtors, covering the Dayton, Columbus and Cincinnati markets in Ohio. “This is good news for sellers, but there is still great news for buyers. The percentage of wages needed to buy have decreased, which shows the median wages are growing at a faster pace than the sales prices.”

Wage growth outpaces home price growth in 53 percent of counties
Annual wage growth outpaced annual growth in median home prices in 199 of the 379 counties (53 percent) analyzed in the report. It was the highest percentage of counties with wage growth outpacing home price growth since home prices bottomed out nationwide in Q1 2012.

Affordability improves from a year ago in 9 percent of counties
Counter to the national trend, affordability improved compared to a year ago in 35 of the 379 counties (9 percent) analyzed in the report. Annual wage growth outpaced home price growth in all 35 of the counties with improving affordability.

View full report for more details and report methodology.

About ATTOM Data Solutions
ATTOM Data Solutions is the curator of the ATTOM Data Warehouse, a multi-sourced national property database that blends property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, health hazards, neighborhood characteristics and other property characteristic data for more than 150 million U.S. residential and commercial properties.

Media Contact:
Jennifer von Pohlmann
(949) 502-8300, ext. 139
jennifer.vonpohlmann@attomdata.com

Home Prices at New High in February Amid Record Low Inventory

RE/MAX National Housing Report on MLS Data from 53 Metro Areas

Denver, CO – March 17, 2017 (PRNewswire) February home prices reached a new high as steady demand combined with record low inventory drove prices up, according to this month’s RE/MAX National Housing Report that surveys 53 metro areas.

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Last month saw a negligible decline (-0.02%) in home sales from February 2016, which posted the most sales in the nine-year history of the report. Less than half of the markets experienced an increase in sales year-over-year.

Meanwhile, active inventory reached a record low for February, dropping 17.9% year-over-year. This marks the 100th consecutive month of year-over-year declines dating back to October 2008.

As a result, the Median Sales Price of $212,000 – another February record – was up 6% year-over-year. This is the 11th consecutive month of year-over-year price increases.

Homes sold faster last month, with average Days on Market dropping from 75 in February 2016 to 68 last month. For this month’s housing report infographic click here.

“Inventory, not the rise in interest rates, remains the principal constraint on home sales,” said Dave Liniger, RE/MAX CEO, Chairman of the Board and Co-Founder. “The resale market is driven dramatically by the availability of new homes. Most U.S. markets have a high demand for new home construction, and although it’s good to see housing starts trending upward, we still need more.”

Closed Transactions:

Of the 53 metro areas surveyed in February 2017, the overall average number of home sales decreased 0.02% compared to February 2016. Of the 53 metro areas, 23 experienced an increase in sales year-over-year, with nine experiencing double-digit increases. The markets with the largest increase in sales included Trenton, NJ +26.2%, Nashville, TN +19.4%, Las Vegas, NV +18.2%, Wichita, KS +14.6% and Birmingham, AL +13.3%.

Median Sales Price – Median of 53 metro median prices:

In February 2017, the median of all 53 metro Median Sales Prices was $212,000, up 1.4% from January 2017 and up 6.0% from February 2016. Only six metro areas saw year-over-year decreases or remained unchanged, with 16 rising by double-digit percentages. The largest double-digit increases were seen in Fargo, ND +19.9%, Burlington, VT +18.4%, Tampa, FL +15.9%, Indianapolis +14.3% and Dallas/Ft. Worth, TX +13.9%.

Days on Market – Average of 53 metro areas:

The average Days on Market for homes sold in February 2017 was 68, up two days from the average in January 2017, but down seven days from the February 2016 average. The three metro areas with the lowest Days on Market were San Francisco, CA at 32, Omaha, NE at 34 and Denver, CO at 38. The highest Days on Market averages were in Augusta, ME at 147 and Chicago, IL at 109. 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 53 metro areas:

The number of homes for sale in February 2017 was down 2.2% from January 2017, and down 17.9% from February 2016. Based on the rate of home sales in February, the Months Supply of Inventory was 3.6, compared to January 2017 at 3.8 and February 2016 at 4.0. A 6.0-month supply indicates a market balanced equally between buyers and sellers. In February 2017, 45 of the 53 metro areas surveyed reported a months supply of less than 6.0, which is typically considered a seller’s market. The remaining eight saw a months supply above 6.0, which is typically considered a buyer’s market. The markets with the lowest Months Supply of Inventory continued to be in the west, with both Denver, CO and Seattle, WA at 1.0 and San Francisco, CA at 1.1.

Contact:

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 110,000 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 $150 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 53 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.

Florida’s Housing Market: More Sales, Rising Prices in January 2017

ORLANDO, Fla., Feb. 22, 2017 /PRNewswire/ — Florida’s housing market reported more closed sales, higher median prices, increased pending sales and more new listings in January, according to the latest housing data released by Florida Realtors®. Sales of single-family homes statewide totaled 16,779 last month, up 5.2 percent from January 2016.

“Florida’s housing market continues to show positive momentum,” said 2017 Florida Realtors President Maria Wells, broker-owner with Lifestyle Realty Group in Stuart. “While existing inventory remains tight, Realtors® across the state are reporting interest from both buyers and sellers – and with interest rates expected to rise over the next few months, now is certainly a good time to take action. On the buyer front, new pending sales for existing single family homes in January increased 3.8 percent year-over-year; pending sales for townhouse-condo units increased 6.5 percent. On the sellers’ side, new listings for single-family homes rose 7.6 percent year-over-year, while new townhouse-condo listings ticked up 0.9 percent.

“When market conditions are tight, consumers can get ahead by working with a Realtor who’s an expert in the local area,” Wells said. “A Realtor will have the knowledge needed to help both buyers and sellers through the complex homebuying process.”

Home sellers continued to get more of their original asking price at the closing table in January: Sellers of existing single-family homes received 95.6 percent (median percentage) of their original listing price, while those selling townhouse-condo properties received 94.6 percent (median percentage).

The statewide median sales price for single-family existing homes last month was $220,000, up 10.1 percent from the previous year, according to data from Florida Realtors research department in partnership with local Realtor boards/associations. The statewide median price for townhouse-condo properties in January was $161,000, up 6.6 percent over the year-ago figure. January marked the 62nd month in a row that statewide median prices for both sectors rose year-over-year. The median is the midpoint; half the homes sold for more, half for less.

According to the National Association of Realtors® (NAR), the national median sales price for existing single-family homes in December 2016 was $233,500, up 3.8 percent from the previous year; the national median existing condo price was $221,600. In California, the statewide median sales price for single-family existing homes in December was $509,060; in Massachusetts, it was $355,000; in Maryland, it was $269,319; and in New York, it was $240,000.

Looking at Florida’s townhouse-condo market, statewide closed sales totaled 7,209 last month, up 6.2 percent compared to January 2016. Closed sales data reflected fewer short sales and cash-only sales last month: Short sales for townhouse-condo properties declined 47.7 percent while short sales for single-family homes dropped 36.3 percent. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

“Florida’s markets for existing homes are off to a good start in 2017,” said Florida Realtors® Chief Economist Dr. Brad O’Connor. “Throughout much of this housing cycle, growth in single-family home sales has outpaced that of condos and townhouses, but in January – for the first time since November 2015 – this was not the case, though one month’s worth of data alone doesn’t indicate a long-term trend.

Also, new listings of single-family homes were up in January compared to last year, including in the $150,000 to $250,000 range where inventory is sorely needed throughout the state. That said, inventory was still down overall in this range, as this segment of the market remains in high demand throughout the state.”

Inventory dipped to a 4.2-months’ supply in January for single-family homes and was at a 6.4-months’ supply for townhouse-condo properties, according to Florida Realtors.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.15 percent in January 2016, up significantly from the 3.87 percent average recorded during the same month a year earlier.

To see the full statewide housing activity reports, go to Florida Realtors Media Center at media.floridarealtors.org and look under Latest Releases, or download the January 2017 data report PDFs under Market Data at: media.floridarealtors.org

Florida Realtors® serves as the voice for real estate in Florida. It provides programs, services, continuing education, research and legislative representation to its 165,000 members in 55 boards/associations. Florida Realtors® Media Center website is available at media.floridarealtors.org.

Experts: Rising Mortgage Rates Will Have a Significant Impact on 2017 Housing Market

Housing experts also cited low inventory as an important driver of the market

Seattle, WA – Feb. 10, 2017 (PRNewswire) Increasing mortgage rates and their impact on affordability will be the most significant force driving the 2017 housing market, according to the latest Zillow® Home Price Expectations Survey(i).

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The quarterly survey, sponsored by Zillow and conducted by Pulsenomics LLC, asked more than 100 housing experts and economists what factors would have the greatest impact on U.S. housing this year. The most frequent answer was rising mortgage rates and their impact on mortgage affordability, with more than half of panelists selecting it(ii).

The survey respondents ranked low inventory and shifting demographics, as millennials age into their prime home-buying years and the housing needs of aging Baby Boomers change, as the next most important factors for the 2017 housing market.

Buyers and homeowners have been able to take advantage of historically low mortgage rates on purchase or refinance loans for the past several years, but rates jumped following the presidential election in November, and have since hovered around 4 percent. In December, the Federal Reserve voted to raise the federal funds rate – which can influence mortgage rates – by 25 basis points for the second time in the last decade and set expectations for the possibility of a more aggressive rate hike cycle throughout 2017(iii). Similarly, home price appreciation accelerated at the end of the year, and income growth is not keeping pace.

With both mortgage rates and home values rising, paying for a home with a mortgage becomes more expensive and requires a larger percentage of income each month. But since mortgage rates have been at historical lows for several years, and recent increases have been relatively small, they have not yet had significant effects on home value appreciation. For buyers of the median U.S. home, valued at $193,800, an increase from 4 percent to 4.25 percent would only increase their monthly mortgage payments by $23(iv).

As rates rise, though, monthly payments for homes will increase, and buyers’ budgets will be more strained. Since 77 percent of buyers use a mortgage to finance their purchase(v), this will affect the majority of buyers, and the market will not be able to sustain the more rapid home value appreciation we have seen in the past few years. Most experts believe there won’t be a significant slowdown in appreciation until rates reach 5.5 percent, which isn’t likely to happen this year. Zillow expects the conventional 30-year fixed mortgage rate to be closer to 4.75 percent by the end of 2017.

“Rising mortgage rates, inventory shortages and demographic shifts will be the main drivers of the U.S. housing economy this year, especially for first-time buyers who will face tougher competition for entry-level homes and often operate with a tighter budget than move-up buyers,” said Zillow Chief Economist Dr. Svenja Gudell. “When you combine higher mortgage rates with increasing home values, mortgage affordability starts to suffer, and buyers will have to spend more and more on their monthly payments. This makes it even more important for buyers to prepare their finances, and shop around to make sure they are getting the best possible rate.”

Another potential effect of rising mortgage rates is their influence on current homeowners, who may decide not to sell their homes to avoid needing a new mortgage at a higher rate, leading to more constrained inventory. More than half of the respondents (56 percent) in this survey said this “mortgage rate lock-in” is already or will have a meaningful impact on the housing market.

Home values rose 6.8 percent in 2016. Overall, the experts surveyed predict home prices will rise 4.6 percent in 2017, then slow to 3 percent annual growth by 2019.

“Compared to their outlook in our previous survey just a few months ago, most of our panelists now expect somewhat stronger home value appreciation this year and next, as tight inventory conditions persist,” said Pulsenomics founder Terry Loebs. “However, longer-term, the consensus still calls for decelerating prices, with the most pessimistic quartile of experts continuing to project negative inflation-adjusted returns for U.S. housing beyond 2017. The specter of rising mortgage rates and other affordability hurdles are clearly impacting these home value projections.”

Zillow

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 (NASDAQ: Z and ZG), and headquartered in Seattle.

Zillow is a registered trademark of Zillow, Inc.

About Pulsenomics:

Pulsenomics LLC (www.pulsenomics.com) is an independent research and consulting firm that specializes in data analytics, new product and index development for institutional clients in the financial and real estate arenas. Pulsenomics also designs and manages expert surveys and consumer polls to identify trends and expectations that are relevant to effective business management and monitoring economic health. Pulsenomics LLC is the author of The Home Price Expectations Survey™, The U.S. Housing Confidence Survey, and The U.S. Housing Confidence Index. Pulsenomics®, The Housing Confidence™ Index, and The Housing Confidence™ Survey are trademarks of Pulsenomics LLC.

(i) This edition of the Zillow® Home Price Expectations Survey surveyed 108 experts between January 25 and February 6, 2017. The survey was conducted by Pulsenomics LLC on behalf of Zillow, Inc. and asked the experts about their expectations for the housing market.

(ii) Panelists could select up to three factors for this question

(iii) http://money.cnn.com/2016/12/14/news/economy/federal-reserve-rate-hike-december

(iv) Effect of a 25-basis point increase in mortgage rates, assuming 30-year fixed rate increases from 4 percent to 4.25 percent, with a 20 percent down payment, on the median home value of $193,800.

(v) Zillow Group Report on Consumer Housing Trends

2017 Housing Market Forecast with NAR Chief Economist Lawrence Yun

In November, the National Association of REALTORS held a Facebook Live event with Lawrence Yun, the chief economist and senior vice president of Research at the National Association of REALTORS®, where he discussed what real estate pros can expect in housing in 2017.