The State of the U.S. Advertising Market

According to PwC’s latest Entertainment & Media Outlook, online advertising in the United States is poised for further growth in the next few years. PwC estimates that internet ad revenue could grow to $116.2 billion a year by 2021, up from $86.4 billion this year.

Fortunately for traditional media outlets, i.e. TV and radio broadcasters, newspaper and magazine publishers, advertising is not a zero sum game and a dollar spent online is not necessarily pried away from a dying newspaper. In fact, traditional media outlets are profiting from the digital ad boom themselves.

As our chart illustrates, print publishers as well as TV and radio broadcasters are expected to generate a significant chunk of their ad revenue online by 2021.

The State of the U.S. Advertising Market

The Best (And Worst) Cities for Renters

At a time when huge numbers of young people can’t afford to buy their own home, the rental market is booming. The alternative for the so-called Generation Rent isn’t exactly attractive either, though. As more and more people flock to the major cities for bigger salaries and better opportunities, property owners are able to cash in on an often out of control rental market.

The rent burden can be measured by looking at the share of the average household income that the typical rent eats into each month. As our infographic below shows, based on data from RENTCafé the worst place for renters is Mexico City. With an oppressive 60 percent of earnings going to the landlord.

Further north in the U.S., the situation isn’t too much better. With 59 percent of the average salary being poured into rent in Manhattan, the New York borough is the second worst place on the list to be a renter. Those looking to move to LA and San Francisco should be prepared to kiss goodbye to 47 and 41 percent of their pay packet, respectively. Of the cities focused on here, Chicago would be the best bet, at 38 percent.

RENTCafé’s benchmark for burden-free rent is 30 percent. With this in mind, Germany’s cool capital Berlin might be a good option. Alternatively, the city with the best ratio was found to be Kuala Lumpur. Anyone renting in the Malaysian capital will be free to spend up to as much as 80 percent of their income as they so desire.

This chart shows the share of household income required to pay rent in selected cities in 2017.

Infographic: The Best (And Worst) Cities for Renters | Statista You will find more statistics at Statista

California Pending Home Sales Lose Steam for Fourth Straight Month in April, C.A.R. Reports

Los Angeles, CA – May 24, 2017 (PRNewswire-USNewswire) Consistent with the slowdown in April’s closed escrow sales, which declined from the previous month and year, low housing inventory and eroding affordability suppressed pending home sales for the fourth straight month, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.

CAR Logo

C.A.R.’s April Market Pulse Survey** saw mixed results as REALTORS® reported an increase in floor calls for the fourth straight month, but less open house traffic, and no change in listing appointment activity compared with the previous month.

Pending home sales data:

  • Based on signed contracts, year-over-year statewide pending home sales declined for the fourth straight month in April on a seasonally adjusted basis, with the Pending Home Sales Index (PHSI)* declining 7.4 percent from 122.8 in April 2016 to 113.7 in April 2017. On a monthly basis, California pending home sales increased 5.9 percent from the March index of 107.4.
  • April’s year-over-year pending sales decline is the largest since July 2014, when sales decreased 9.1 percent from the previous year. The quickening pace of pending sales declines provides further evidence that the typically busy spring home buying season may underperform, primarily due to demand outstripping the supply of active listings, which was 10.5 percent lower than in April a year ago.
  • At the regional level, Southern California was the most resilient region in the state, where pending sales held on for a modest decline of 2.8 percent, aided in large part by a 2 percent increase in Riverside County and a 1.1 percent uptick in Orange County. San Diego posted a double-digit decline of 11.1 percent. Los Angeles County saw pending sales decline 4.7 percent, and San Bernardino pending sales fell 4 percent.
  • At the opposite end of the spectrum, the San Francisco Bay Area bore the brunt of the slowdown. On a year over year basis, pending sales in April were 17.1 percent below where they were in April 2016. San Francisco, San Mateo, and Santa Clara all posted double-digit declines in pending sales (down 16.1 percent, 12.2 percent, 14.6 percent, respectively) as inventories remained between 1.8 and 2 months of supply with median prices of more than $1 million.
  • The Central Valley also posted a double-digit decline of 11.2 percent in April. Despite the rebounding energy sector and relative affordability, Kern County saw pending sales shrink by 15.5 percent from April 2016. However, Fresno, Kings, Madera, and Merced were already seeing closed sales begin to stumble back in March, and this weak reading on pending sales suggests that the sluggishness of sales will persist in the Central Valley over the near term as well.
  • In C.A.R.’s newest market indicator of future price appreciation, Market Velocity – home sales relative to the number of new listings coming on line each month to replenish that sold inventory – suggests that price growth will begin to accelerate this summer. With demand remaining strong and inventories tightening further, price pressure will get more intense over the next six months and that median price growth may accelerate into the high single digits through the fall. Market Velocity is strongly correlated with increases/decreases in price growth with a roughly three- to six-month lag time.

Year-to-Year Change in Pending Sales by County/Region

Chart

April REALTOR® Market Pulse Survey**:

Entering the spring homebuying season, California REALTORS® responding to C.A.R.’s April Market Pulse Survey said their expectations for market conditions of the next year declined from April as they experienced less open house traffic, fewer multiple offers, more price reductions, and no change in listing appointment activity compared with March.

  • The share of homes selling above asking price dipped from 32 percent a year ago to 31 percent in April, while the share of properties selling below asking price slipped to 38 percent from 40 percent in April 2016. The remaining 31 percent sold at asking price, up from 28 percent in April 2016.
  • For homes that sold above asking price, the premium paid over asking price was essentially unchanged from a year ago, at 10 percent.
  • The 38 percent of homes that sold below asking price sold for an average of 17 percent below asking price in April, compared to 12 percent a year ago.
  • The share of properties receiving multiple offers declined in April after trending higher for three straight months. About two-thirds of properties sold (68 percent) received multiple offers in April, down from 69 percent in April 2016.
  • The share of properties receiving three or more offers in April was 44 percent, compared to 45 percent a year ago.
  • Only homes priced $500,000-$749,000 and $2 million and higher posted gains in receiving three or more offers compared with last year, rising from 53 percent to 61 percent, and 50 percent and 63 percent, respectively.
  • After falling for four consecutive months, listing price reductions rose to 26 percent in April, up from 23 percent in April 2016.
  • A lack of available inventory continued to be the top concern for 48 percent of REALTORS®, the highest level recorded. Eroding housing affordability/high interest rates concerned 19.5 percent of REALTORS®. Inflated home prices/housing bubble was cited by 19.5 percent of REALTORS®. A slowdown in economic growth, lending and financing, and policy and regulations rounded out REALTORS®’ remaining biggest concerns.
  • REALTORS®’ expectations of market conditions over the next year remained high at an index of 64, up from an index of 60 a year ago.

Graphics (click links to open):

*Note: C.A.R.’s pending sales information is generated from a survey of more than 70 associations of REALTORS® and MLSs throughout the state. Pending home sales are forward-looking indicators of future home sales activity, offering solid information on future changes in the direction of the market. A sale is listed as pending after a seller has accepted a sales contract on a property. The majority of pending home sales usually become closed sales transactions one to two months later. The year 2008 was used as the benchmark for the Pending Homes Sales Index. An index of 100 is equal to the average level of contract activity during 2008.

**C.A.R.’s Market Pulse Survey is a monthly online survey sent to more than 10,000 California REALTORS® to measure data about their last closed transaction and sentiment about business activity in their market area for the previous month. More than 400 REALTORS® responded.

Leading the way…® in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with more than 190,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

5 Tips for Buyers in a Tight Housing Market

Washington, DC – May 12, 2017 (nar.realtor) When inventory is low, home prices tend to go up. Attempting to purchase a house in this type of market can make the already complex process of buying a home even more overwhelming. To help buyers successfully get through the buying process in a tight inventory market with as little stress and difficulty as possible, the National Association of Realtors® has these five suggestions and an infographic:

Tips For Buying In a Tight Market Infographic

1. Determine and stick to a budget. Before beginning the house hunting process, prospective homebuyers should receive preapproval from one or more lenders to verify the amount of money they are qualified to borrow. Then, after taking into account additional costs of ownership such as taxes, utilities and insurance, buyers should determine a final budget they can comfortably afford. When listings are scarce, bidding wars can drive up prices, so buyers must be prepared to walk away if the asking price surpasses their budget.

2. Identify desired neighborhoods and home wants versus needs. When housing inventory is tight, buyers may need to compromise on what they believe they want from a home. Certain wants, such as stainless appliances or hardwood floors, can be added later. However, if a buyer wants to be in a specific school district or have a decent sized backyard, those cannot be addressed later and must be taken into account during the house hunting process.

3. Be ready to make a decision quickly. In a seller’s market, homes rarely stay on the market long, so when a house that is in their budget and checks off all of their needs come along, buyers should not hesitate. Buyers should be ready to submit an offer quickly, or they may risk missing out on the home altogether.

4. Bid competitively and limit contingencies. It is tempting to submit a low offer as a starting bid, but in a seller’s market buyers need to put forward their highest offer from the very beginning or they are likely to lose out on the home. It is also important to remember that in multiple bidding situations it is not always the highest offer that is most attractive to the seller but the one with the fewest contingencies. Removing restrictions related to the sale of a current home and being flexible with things like the move-in date can make a bid stand out to a seller.

5. Work with a Realtor®. All real estate is local, so it is important to work with an agent who is a Realtor®, a member of the National Association of Realtors®, and who is familiar with the areas and neighborhoods the homebuyers are considering. Realtors® are the most trusted resource for real estate information and have unparalleled knowledge of their communities; they can give buyers the competitive advantage needed in a tight market.

For more information on buying a home in a seller’s market, visit NAR’s comprehensive website for homeowners, www.houselogic.com/buy (link is external).

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

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Media Contact:

Jane Dollinger
(202) 383-1042
Email

Strong March Home Sales, Low Inventory Means Tougher Market for Buyers

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

Denver, CO – April 14, 2017 (PRNewswire) March launched the home-buying season with post-recession records for increasing home sales and prices and decreasing inventory, according to this month’s RE/MAX National Housing Report that surveys 53 metro areas.

Last month, home sales were 6.6% higher than the nine-year-old report’s previous March record, set in 2016. Thirty-eight of the 53 metro areas in the report showed year-over-year increases.

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Meanwhile, Months Supply of Inventory dropped below three months for the first time in the history of the report, indicating a market that greatly favors sellers, as six months is considered a balanced market.

Active inventory continued to decline, dropping 17% year-over-year. As a result, the Median Sales Price of $225,000—also a March record—was up 11% year-over-year. This was the 12th consecutive month of year-over-year price increases.

Homes continued selling faster last month, with the average Days on Market dropping to 64, compared to 68 in February 2017 and 71 in March 2016. For this month’s housing report infographic, click here.

REMAX National Housing Report April 2017 Infographic

“We expect a seasonal uptick in sales this time of year and March certainly met and somewhat exceeded that expectation,” said Dave Liniger, RE/MAX CEO, Chairman of the Board and Co-Founder. “We don’t anticipate the tightening inventory to ease up in most markets until new home construction can catch up to its pre-recession pace. Until then, sellers will enjoy a fast-paced market and buyers will need to work with their agents to get in the right home.”

Closed Transactions
Of the 53 metro areas surveyed in March 2017, the overall average number of home sales increased 6.6% compared to March 2016. Of the 53 metro areas, 38 experienced an increase in sales year-over-year, with 16 experiencing double-digit increases. The markets with the largest increase in sales included Richmond, VA +23.3%, Wilmington/Dover, DE +22.6%, Trenton, NJ +19.7%, Las Vegas, NV +15.3% and Chicago, IL +14.8%.

Median Sales Price – Median of 53 metro median prices
In March 2017, the median of all 53 metro Median Sales Prices was $225,000, up 7.1% from February 2017 and up 11.0% from March 2016. Only four metro areas saw year-over-year decreases, with 15 rising by double-digit percentages. The largest double-digit increases were seen in Manchester, NH +15.9%, Orlando, FL +13.7%, Charlotte, NC +13.3%, Trenton, NJ +12.8% and Nashville, TN +12.8%.

Days on Market – Average of 53 metro areas
The average Days on Market for homes sold in March 2017 was 64, down four days from the average in February 2017, and down seven days from the March 2016 average. The three metro areas with the lowest Days on Market were San Francisco, CA and Omaha, NE both at 27 and Denver, CO at 32. The highest Days on Market averages were in Augusta, ME at 159 and Burlington, VT at 118. 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 March 2017 was up 1.2% from February 2017, but down 17.0% from March 2016. Based on the rate of home sales in March, the Months Supply of Inventory was 2.7, compared to February 2017 at 3.6 and March 2016 at 3.2. This is the first time in the history of the RE/MAX National Housing Report that months supply has hit below 3.0. A 6.0-month supply indicates a market balanced equally between buyers and sellers. In March 2017, 52 of the 53 metro areas surveyed reported a months supply of less than 6.0, which is typically considered a seller’s market. At 6.3, Burlington, VT was the only metro area to see 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 Seattle, WA at 0.9, San Francisco, CA and Denver, CO both at 1.0.

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.