Follow the Money – How Recent Buyers Purchased Their Home (NAR Infographic)

Here is a look at how recent buyers purchased their home:

Median purchase price – $235,000
Obtained a mortgage – 88%
Down payment amount – 10 percent
Down payment sources – savings (59 percent); sales proceeds from previous home (38 percent)
Received down payment help from family/friends – 16 percent
Obtaining a mortgage was not difficult/easier than expected – 66 percent

For more Information read the 2017 Profile of Home Buyers and Sellers.

Real Estate Infographic

Nearly One Quarter of 2017 U.S. Home Sales Were Above the Asking Price

– On average, homes that sold above their list price went for $7,000 over the asking price

– The share of U.S. home sales that were above the listed price increased from 17.8 percent in 2012 to 24.1 percent in 2017.

– The typical price increase for homes that sold above the listed price was 3.1 percent.

– More than half of home sales in San Jose, San Francisco, Salt Lake City and Seattle went for more than the listed prices.

Seattle, WA – Jan. 11, 2018 (PRNewswire) Buyers paid more than the asking price in nearly one quarter (24 percent) of U.S. home sales in 2017, netting sellers an additional $7,000 each. Five years ago, 17.8 percent of final sale prices were higher than the asking price, according to a new Zillow® analysis(i).

Over the past year the American housing market has been struck by the combination of strong demand and limited supply. Young adult renters are increasingly feeling confident enough to buy, but they are entering a market with very few homes for sale, as inventory has been steadily declining for almost three years. Low interest rates have buoyed buyers’ budgets, raising the limits on what they can afford – and may be willing – to pay.

Homes sell quickly in such a competitive market, with the typical U.S. home selling in 80 days, including the time it takes to close on the sale. In San Jose, San Francisco and Seattle, the average home sells in less than 50 days. Fierce competition means buyers may not win a home on their first offer. The typical buyer spends more than four months home shopping and has to make multiple offers before an offer is accepted, according to the 2017 Zillow Group Consumer Housing Trends Report.

“Low interest rates and strong labor markets with high-paying jobs have allowed home buyers in some of the country’s priciest housing markets to bid well over asking price,” said Zillow Senior Economist Aaron Terrazas. “In the booming tech capitals of the California Bay Area and Pacific Northwest, paying above list price is now the norm. In the face of historically tight inventory, buyers have had to be more aggressive in their offers. We don’t expect this inventory crunch to ease meaningfully in 2018, meaning buyers will be facing many of the same struggles this year.”

In San Jose, Calif., San Francisco, Salt Lake City and Seattle, more than half of all homes sold last year went for above the list price. The average home sold above list in San Jose netted sellers an additional $62,000, the largest difference between list and sale price of the metros analyzed.

Over the past five years, Seattle saw the greatest increase in the share of sales that were above the asking price, from 20 percent of home sales in 2012 to 52 percent of sales in 2017. The amount over asking price grew as well, from 2.5 percent to 5.3 percent above the listed price.

Miami homes were least likely to sell for more than the listed price last year, followed by Virginia Beach and New Orleans.

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

CoreLogic Reports Fourth Consecutive Month with More Than 6 Percent Year-Over-Year Home Price Growth in November

  • Washington, Nevada, Utah and Idaho Posted 12-Month Price Gains of 10 Percent or More in November
  • Lack of Affordable Housing Stock Keeps Home Price Index High in Many Markets
  • Home Prices Projected to Increase by 4.2 Percent by November 2018

Irvine, CA – January 2, 2018 (BUSINESS WIRE) CoreLogic® (NYSE: CLGX), a leading global property information, analytics and data-enabled solutions provider, today released its CoreLogic Home Price Index (HPI™) and HPI Forecast™ for November 2017, which shows home prices are up both year over year and month over month. Home prices nationally increased year over year by 7 percent from November 2016 to November 2017, and on a month-over-month basis home prices increased by 1 percent in November 2017 compared with October 2017,* according to the CoreLogic HPI.

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Looking ahead, the CoreLogic HPI Forecast indicates that home prices will increase by 4.2 percent on a year-over-year basis from November 2017 to November 2018, and on a month-over-month basis home prices are expected to decrease by 0.4 percent from November 2017 to December 2017. The CoreLogic HPI Forecast is a projection of home prices using the CoreLogic HPI and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state.

“Rising home prices are good news for home sellers, but add to the challenges that home buyers face,” said Dr. Frank Nothaft, chief economist for CoreLogic. “Growing numbers of first-time buyers find limited for-sale inventory for lower-priced homes, leading to both higher rates of price growth for ‘starter’ homes and further erosion of affordability.”

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According to CoreLogic Market Condition Indicators (MCI) data, an analysis of housing values in the country’s 100 largest metropolitan areas based on housing stock, 37 percent of metropolitan areas have an overvalued housing stock as of November 2017. The MCI analysis categorizes home prices in individual markets as undervalued, at value or overvalued by comparing home prices to their long-run, sustainable levels, which are supported by local market fundamentals such as disposable income. Also, as of November, 36 percent of the top 100 metropolitan areas were undervalued and 26 percent were at value (this percent share is based on 99 markets for this report since data for Honolulu is currently unavailable). When looking at only the top 50 markets based on housing stock, 50 percent were overvalued, 14 percent were undervalued and 36 percent were at value. The MCI analysis defines an overvalued housing market as one in which home prices are at least 10 percent higher than the long-term, sustainable level, while an undervalued housing market is one in which home prices are at least 10 percent below the sustainable level.

“Without a significant surge in new building and affordable housing stock, the relatively high level of growth in home prices of recent years will continue in most markets,” said Frank Martell, president and CEO of CoreLogic. “Although policymakers are increasingly looking for ways to address the lack of affordable housing, much more needs to be done soon to see a significant improvement over the medium term.”

*October 2017 data was revised. Revisions with public records data are standard, and to ensure accuracy, CoreLogic incorporates the newly released public data to provide updated results.

Methodology

The CoreLogic HPI™ is built on industry-leading public record, servicing and securities real-estate databases and incorporates more than 40 years of repeat-sales transactions for analyzing home price trends. Generally released on the first Tuesday of each month with an average five-week lag, the CoreLogic HPI is designed to provide an early indication of home price trends by market segment and for the “Single-Family Combined” tier representing the most comprehensive set of properties, including all sales for single-family attached and single-family detached properties. The indexes are fully revised with each release and employ techniques to signal turning points sooner. The CoreLogic HPI provides measures for multiple market segments, referred to as tiers, based on property type, price, time between sales, loan type (conforming vs. non-conforming) and distressed sales. Broad national coverage is available from the national level down to ZIP Code, including non-disclosure states.

CoreLogic HPI Forecasts™ are based on a two-stage, error-correction econometric model that combines the equilibrium home price—as a function of real disposable income per capita—with short-run fluctuations caused by market momentum, mean-reversion, and exogenous economic shocks like changes in the unemployment rate. With a 30-year forecast horizon, CoreLogic HPI Forecasts project CoreLogic HPI levels for two tiers—“Single-Family Combined” (both attached and detached) and “Single-Family Combined Excluding Distressed Sales.” As a companion to the CoreLogic HPI Forecasts, Stress-Testing Scenarios align with Comprehensive Capital Analysis and Review (CCAR) national scenarios to project five years of home prices under baseline, adverse and severely adverse scenarios at state, Core Based Statistical Area (CBSA) and ZIP Code levels. The forecast accuracy represents a 95-percent statistical confidence interval with a +/- 2.0 percent margin of error for the index.

Source: CoreLogic

The data provided are for use only by the primary recipient or the primary recipient’s publication or broadcast. This data may not be resold, republished or licensed to any other source, including publications and sources owned by the primary recipient’s parent company without prior written permission from CoreLogic. Any CoreLogic data used for publication or broadcast, in whole or in part, must be sourced as coming from CoreLogic, a data and analytics company. For use with broadcast or web content, the citation must directly accompany first reference of the data. If the data are illustrated with maps, charts, graphs or other visual elements, the CoreLogic logo must be included on screen or website. For questions, analysis or interpretation of the data, contact Lori Guyton at lguyton@cvic.com or Bill Campbell at bill@campbelllewis.com. Data provided may not be modified without the prior written permission of CoreLogic. Do not use the data in any unlawful manner. The data are compiled from public records, contributory databases and proprietary analytics, and its accuracy is dependent upon these sources.

About CoreLogic

CoreLogic (NYSE: CLGX) is a leading global property information, analytics and data-enabled solutions provider. The company’s combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.

CORELOGIC, the CoreLogic logo, CoreLogic HPI, CoreLogic HPI Forecast and HPI are trademarks of CoreLogic, Inc. and/or its subsidiaries.

Contacts

CoreLogic
For real estate industry and trade media:
Bill Campbell
(212) 995-8057
bill@campbelllewis.com

or

For general news media:
Lori Guyton
(901) 277-6066
lguyton@cvic.com

Florida Housing Market – Sales, Median Prices Rise in October

Orlando, FL – November 21, 2017 (PRNewswire) The impact of Hurricane Irma on Florida’s housing market resolved by the end of October, according to the latest housing data released by Florida Realtors®. Sales, median prices, new listings and new pending sales rose even as the inventory of for-sale properties remained constrained in many areas. Sales of single-family homes statewide totaled 20,543 last month, up 2 percent compared to October 2016.

Florida Realtors Logo

“Home purchases stalled by Hurricane Irma striking Florida in September resumed – and many of those sales closed in October,” said 2017 Florida Realtors President Maria Wells, broker-owner with Lifestyle Realty Group in Stuart. “Areas hit hardest by the hurricane will still take time to recover, but in other parts of the state, real estate activity has returned. Sellers were ready to put their homes on the market in October, with new listings for single-family existing homes up 9.8 percent year-over-year; new listings for existing condo-townhouse properties rose 14.6 percent.

“Wherever you are, there is a local Realtor who can help you understand local market conditions and prepare for a successful home sale or home purchase.”

The statewide median sales price for single-family existing homes last month was $235,558, up 7.1 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 condo-townhouse properties in October was $170,000, up 5.2 percent over the year-ago figure. October was the 70th 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 September 2017 was $246,800, up 5.6 percent from the previous year; the national median existing condo price was $231,300. In California, the statewide median sales price for single-family existing homes in September was $555,410; in Massachusetts, it was $380,000; in Maryland, it was $277,746; and in New York, it was $257,500.

Looking at Florida’s condo-townhouse market, statewide closed sales totaled 8,116 last month, up 2.2 percent compared to October 2016. Closed sales data reflected fewer short sales and foreclosures last month: Short sales for condo-townhouse properties declined 22.5 percent and foreclosures fell 42.8 percent year-to-year; short sales for single-family homes dropped 36.7 percent and foreclosures fell 42.3 percent year-to-year. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

“Last month, we talked about how it’s not uncommon for Florida to see a quick rebound in sales of existing homes the month after a hurricane,” said Florida Realtors® Chief Economist Dr. Brad O’Connor. “And, according to the latest data, that’s exactly what happened in the Sunshine State in October. Both single-family home and condo-townhouse sales rose, boosted in part by closings that otherwise would have been completed in September if not for delays brought about by Hurricane Irma.

“Because of the length of the home-selling process, we’ll likely see some reverberations of Irma’s impact statewide for a couple more months, but October’s statistics are very encouraging.”

October’s for-sale inventory remained tight with a 3.8-months’ supply for single-family homes and a 5.6-months’ supply for condo-townhouse properties, according to Florida Realtors.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.90 percent in October 2017; it averaged 3.47 percent during the same month a year earlier.

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

Florida Realtors® serves as the voice for real estate in Florida. It provides programs, services, continuing education, research and legislative representation to its 170,000 members in 54 boards/associations. Florida Realtors® Media Center website is available at http://media.floridarealtors.org.

Understanding Buyer Preferences and Local Price Trends Can Help Realtors® Gain a Competitive Advantage

Chicago, IL – November 4, 2017 (nar.realtor) Rising home prices amidst tight inventory conditions are creating challenging conditions for home shoppers, but understanding recent buyer preferences, and becoming knowledgeable of where buyers may see the best return on their purchase over time, can ensure real estate professionals are providing irreplaceable value to help their clients achieve their goals.

NAR logo

That is according to speakers at a buyer preferences session organized by the REALTOR® University Richard J. Rosenthal Center for Real Estate Studies here at the 2017 REALTORS® Conference & Expo.

NAR’s Jessica Lautz, managing director of survey research and communications, discussed the characteristics of today’s successful first-time buyers and the supply and affordability obstacles they face trying to reach the market. She was joined by William Doerner, a senior economist at the Federal Housing Finance Agency, who shared insights on home price trends across the country, and explained how brokers and agents can use FHFA’s local home price indices to get a better pulse on price movements in their markets.

Lautz kicked off the session dispelling some often-repeated myths about the real estate market, including millennials not wanting to own a home, consumers buying everything online and the internet replacing word of mouth when it comes to finding a real estate agent. She explained that household formation and more sales are being driven by the growth in minority households and millennials being the largest generation.

Unfortunately, Lautz said, these factors are not translating to more sales to first-time buyers. She referenced findings from NAR’s 2017 Profile of Home Buyers and Sellers, which found that first-timers were only 34 percent of transactions over the past year, which is below the long-term historical average of 39 percent since 1981. Furthermore, those who successfully entered the market needed higher incomes, saw homes sell quickly and had difficulty saving for a down payment because of higher prices and repaying student debt.

“Low inventory remains a top struggle that is holding first-time buyers from reaching the market,” said Lautz. “Because of rising prices, successful buyers today typically have a lot higher of an income than they did 10 years ago.”

Doerner in his remarks agreed that buyer demand is holding steady, but tight inventory conditions in many areas are causing home prices to rise consistently. He explained that the good news is that new inventory is showing some signs of slowly picking up, but overall supply is still below historical levels.

“Regional price gains did taper a bit earlier this year, but our data shows that price movements really vary even within a city,” said Doerner. He said FHFA’s data on local price indices, available at www.fhfa.gov/hpi (link is external), is valuable information for real estate professionals when helping buyers understand potential areas where they can get the best value for their purchase.

Sharing insights gathered from FHFA’s price data, Doerner pointed out that price appreciation over the past 25 years has been the most sustainable in the downtown areas of large cities. Additionally, during downturns, properties closer to central business districts in larger cities have seen smaller price declines. “Our findings show that as close to the center of a city as possible can be where buyers typically get the best return on a home purchase over time,” he said.

According to Lautz, regardless of the location where home shoppers are looking to buy, nearly all go online first during their search. However, NAR survey findings show buyers overwhelmingly value face-to-face interactions, want honesty and integrity, and seek a real estate professional who can lend them their knowledge in today’s challenging housing market. That is why agent-assisted sales remain at an all-time high.

“For instance, there’s a lack of knowledge among non-homeowners about how much they need for a down payment. Eighty-seven percent of those recently surveyed said they believe you need 10 percent or more,” said Lautz. “In reality, the typical amount put down by recent first-timers was 5 percent. It’s important to really hit home with clients that low down payment programs are available to help them purchase a home.”

Added Lautz, “Ultimately, nearly all current renters consider homeownership as part of their American Dream and want to own a home in the future. A Realtor®, a member of NAR, now more than ever, is crucial to helping today’s buyers and sellers succeed.”

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.

U.S. Home Sellers Realized Average Price Gain Of $44,000 In First Quarter Of 2017, Highest Since Q3 2007

Average Homeownership Tenure Backs Off Record High in Q4 2016, Still Up From Year Ago; Distressed Sale Share Declines Annually for 23rd Consecutive Quarter

Median Prices Above Pre-Recession Peaks in 54 Percent of Markets

Irvine, CA – April 27, 2017 (PRNewswire) ATTOM Data Solutions, curator of the nation’s largest multi-sourced property database, today released its Q1 2017 U.S. Home Sales Report, which shows that homeowners who sold in the first quarter realized an average price gain of $44,000 since purchase, representing an average 24 percent return on the purchase price — the highest average price gain for home sellers in terms of both dollars and percent returns since Q3 2007.

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Meanwhile, the report also shows that homeowners who sold in the first quarter had owned an average of 7.97 years, down slightly from a record-high average homeownership tenure of 8.00 years in Q4 2016 but still up from 7.68 years in Q1 2016. Homeownership tenure averaged 4.26 years nationwide between Q1 2000 and Q3 2007, prior to the Great Recession.

“The first quarter of 2017 was the most profitable time to be a home seller in nearly a decade, and yet homeowners are continuing to stay put in their homes longer before selling,” said Daren Blomquist, senior vice president with ATTOM Data Solutions. “This counterintuitive combination is in part the result of the low inventory of move-up homes available for current homeowners, while also perpetuating the scarcity of starter homes available for first-time homebuyers.

“The average homeownership tenure was down from a year ago in nine of the 66 markets we analyzed, including Memphis, Dallas, Boston, Portland and Tampa,” Blomquist added.

Markets with biggest home seller price gains

Among 97 metropolitan statistical areas with at least 1,000 home sales in Q1 2017 (and with previous sales price information available), those with the highest average price gain since purchase realized by home sellers during the quarter were San Jose, California ($356,500 average price gain); San Francisco, California ($276,750 average price gain) and Los Angeles, California ($187,000 average price gain).

“Across our Southern California markets, low listing inventory has continued to drive multiple-offer scenarios,” said Michael Mahon, president at First Team Real Estate covering the Southern California market. “We have noticed many buyers now leveraging investment accounts, as well as some leverage of reverse mortgages, to enable their ability to negotiate in competitive multiple-offer scenarios. This level of competition, as well as continued signals of a growth economy, has created momentum particularly in the luxury market of over $1 million in sales price.”

Metro areas with the highest percent return on the previous purchase price were San Jose, California (71 percent average ROI); San Francisco, California (65 percent); and Seattle, Washington (56 percent);

“Thanks to Seattle’s robust economic and job growth, home prices continue to rise at well above average rates and have now surpassed their pre-housing bubble peak. Because of this, it’s no surprise that distressed sales continue to fall,” said Matthew Gardner, chief economist at Windermere Real Estate, covering the Seattle market. “The increase in all-cash home sales in Seattle is likely not a result of investors, but rather all-cash buyers who are using this tactic to win homes in what it is a hyper-competitive housing market.”

Cash sales share down from a year ago, still above pre-recession levels

All-cash sales represented 30.0 percent of all single family and condo sales in Q1 2017, up from 29.1 percent in the previous quarter but down from 32.1 percent in Q1 2016. The 30.0 percent share in the first quarter was well below the peak of 44.7 percent in Q1 2011 but was still above the pre-recession average of 20.4 percent from Q1 2000 to Q3 2007.

“With a stronger market and overall sales increasing, we are seeing a decrease in foreclosure sales across the markets we serve, as well as seeing a decrease in institutional investors purchasing homes,” said Matthew Watercutter, senior regional vice president and broker of record for HER Realtors, covering the Dayton, Columbus and Cincinnati markets in Ohio. “With the stronger market and availability of money from institutional lenders such as mortgage companies and credit unions, we are seeing a decrease in cash purchases, as more properties are being sold to owner occupants and fewer to investors.”

View the full report 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