Redfin: Home Prices Jumped in February as Sales Were Constrained by a Double-Digit Inventory Dip

Affordability Pressures Mount amid Rising Mortgage Rates

Seattle, WA – March 16th, 2017 (BUSINESS WIRE) U.S. home prices rose 7.2 percent in February, which marked 60 consecutive months of annual increases since home prices bottomed in early 2012, according to Redfin (www.redfin.com), the next-generation real estate brokerage.

Redfin_logo

Home sales gained a modest 1.8 percent, constrained by a continuing inventory shortage. The number of homes for sale fell 12.9 percent year over year in February, the third month in a row that inventory declined by double digits. Housing affordability pressures are increasing, especially for first-time buyers, amidst continuously increasing prices and the Federal Reserve’s recent announcement of an interest rate hike. However, rising prices may lead more homeowners to list their homes this spring.

“The total level of home equity reached a new peak at the close of 2016, according to recent Fed data,” said Redfin chief economist Nela Richardson. “While great for homeowners, continuously strong price growth across the U.S. since 2012 has posed significant challenges for first-time buyers, especially given such low supply in affordable price-tiers. There is a silver lining on the horizon, however. Rising prices and increased equity may tip the scales for homeowners who have been delaying their decision to move up, which could add much-needed starter-home inventory to the market.”

Despite affordability concerns and low inventory, February still proved to be a strong month for buyer demand. Market speed increased again, making for the fastest February Redfin recorded since 2010. The typical home that sold last month went under contract in 60 days, eight days faster than one year prior. Nearly 15 percent of all homes listed for sale in February were off the market within two weeks, up from 11.7 percent last year.

Regional February Highlights

Competition

  • Seattle, WA was the fastest market, with nearly half of all homes pending sale in just 12 days, down from 13 days from a year earlier. Oakland, CA and Denver, CO were the next fastest markets with 15 and 18 median days on market, followed by San Jose, CA (21) and San Francisco, CA (28).
  • Competition was fierce in San Jose, CA where 63.1% of homes sold above list price, followed by 62.0% in San Francisco, CA, 59.1% in Oakland, CA, 49.3% in Seattle, WA, and 36.3% in Tacoma, WA.

Prices

  • Portsmouth, NH had the nation’s highest price growth, rising 21.4% since last year to $285,000. Deltona, FL had the second highest growth up 20.1%, followed by Tampa, FL (18.8%), Jacksonville, FL (18.7%), and Ogden, UT (17.2%).
  • Prices dropped in four metros, including Baton Rouge, LA (-4.2%), Wilmington, DE (-2.5%), Honolulu, HI (-1%), and Pittsburgh, PA (-0.8%).

Sales

  • 17 out of 90 metros saw sales surge by double digits from last year. Charleston, SC led the nation in year-over-year sales growth, up 39.2%, followed by St. Louis, MO, up 30%. Fort Myers, FL rounded out the top three with sales up 25.2% from a year ago.
  • Albany, NY saw the largest dip in sales since last year, falling 22.5%. Home sales in Portsmouth, NH declined by 22.4% as well.

Inventory

  • Rochester, NY had the largest decrease in overall inventory, falling 42.4% since last February. Buffalo, NY (-37.8%), Seattle, WA (-35.3%), and Omaha, NE (-34.7%) also saw far fewer homes available on the market than a year ago.
  • Provo, UT had the highest increase in the number of homes for sale, up 30.7% year over year, followed by Knoxville, TN (21.6%) and New Orleans, LA (16.1%).

To read the full report, complete with data and charts, please click here.

About Redfin

Redfin (www.redfin.com) is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer’s favor. Founded by software engineers, Redfin has the country’s #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry’s lowest published error rate. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $40 billion in home sales through 2016.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To view Redfin’s press center, click here.

Contacts

Redfin Journalist Services:
Jeffery Marino
(206) 588-6863
press@redfin.com

Realogy Announces Plans For Development Of Integrated Learning Institute To Enhance Sales Agent And Broker Productivity

Company Appoints Industry Veteran Bryon Ellington to Lead Strategic Learning Initiatives for its Franchise and Company-Owned Brokerage Operations

Madison, NJ – Feb. 1, 2017 (PRNewswire) Realogy Holdings Corp. (NYSE: RLGY) today announced its plans for the development of a new, integrated learning institute for its leading real estate franchise brands and NRT, its company-owned brokerage business. The new learning center of excellence will operate under the direction of Bryon Ellington, who today was appointed as senior vice president of learning for Realogy.

realogy_logo

Ellington comes to Realogy after serving in a number of key senior executive roles at Keller Williams Realty, Inc., where he has worked for the past 15 years. Most recently, Ellington served as the company’s chief learning officer since 2014, where he was credited with building and implementing its learning platform.

Bryon Ellington

Bryon Ellington

Going forward, Ellington will lead the effort to integrate and strengthen the learning and development resources from across NRT-owned brokerages and the Realogy Franchise Group brands, which include Better Homes and Gardens® Real Estate, CENTURY 21®, Coldwell Banker®, Coldwell Banker Commercial®, ERA® and Sotheby’s International Realty®. As part of its strategy, Realogy also has engaged Miller Heiman Group, a leading sales performance company, to collaborate on the development of a world-class learning platform. Realogy intends for its integrated learning institute to offer customized learning opportunities serving new and experienced sales agents and brokerage managers affiliated with Realogy’s franchise brands and company-owned brokerages.

QUOTES:

“We view learning as a strategic asset, and we are making a strong investment in creating a world-class learning platform across our franchise brands and NRT. We look forward to Bryon Ellington’s leadership to help guide our learning initiatives in the future.” – John Peyton, President and Chief Operating Officer, Realogy Franchise Group

“Realogy’s commitment to creating a learning and development center of excellence will help enable our brokerages to enhance their respective agent value propositions and provide their affiliated sales agents and brokerage managers with a competitive edge.” – Ryan Gorman, Chief Strategy & Operating Officer, NRT LLC

With a background in education and technology, Ellington began his real estate career in 2002 with Keller Williams. In 2016, he was nationally recognized by Training Magazine with its Emerging Training Leader award. Ellington previously served as the company’s chief operating officer for its international master franchising efforts and spent four years as the company’s chief products officer. In his earlier years in the industry, he served as director of research, development and implementation and as an agent sales and technology curriculum team leader. Ellington received his bachelor’s degree and teaching certificate in secondary education from the University of Texas, and an MBA in Entrepreneurship from the Acton School of Business in Austin.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements include, but are not limited to, statements related to Realogy’s development of an integrated learning institute and platform to enhance sales agent and broker productivity. These forward-looking statements involve known and unknown risks, uncertainties and other factors discussed in Realogy’s filings with the SEC. Any forward-looking statements speak only as of the date of this press release and, except to the extent required by applicable securities laws, Realogy expressly disclaims any obligation to update or revise any of them to reflect actual results, any changes in expectations or any change in events. For additional information concerning risks, uncertainties and other factors that may cause actual results to differ from those anticipated in the forward-looking statements, and risks to our business in general, please refer to Realogy Holdings Corp.’s SEC filings, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2015 and its quarterly report on Form 10-Q for the quarterly period ended September 30, 2016.

About Realogy Holdings Corp.

Realogy Holdings Corp. (NYSE: RLGY) is a global leader in residential real estate franchising and brokerage with many of the best-known industry brands including Better Homes and Gardens® Real Estate, CENTURY 21®, Coldwell Banker®, Coldwell Banker Commercial®, The Corcoran Group®, ERA®, Sotheby’s International Realty® and ZipRealty®. Collectively, Realogy’s franchise system members operate approximately 13,650 offices with more than 268,000 independent sales associates conducting business in 111 countries and territories around the world. NRT LLC, Realogy’s company-owned real estate brokerage, is the largest residential brokerage company in the United States, operates under several of Realogy’s brands and also provides related residential real estate services. Realogy also owns Cartus, a prominent worldwide provider of relocation services to corporate and affinity clients, Title Resource Group (TRG), a leading provider of title, settlement and underwriting services and ZapLabsSM, its innovation and technology development subsidiary. Realogy is headquartered in Madison, New Jersey.

Media Contact:

Mark Panus
(973) 407-7215
mark.panus@realogy.com

Tom Ferry Discusses 3 Steps To Have Your Best Year Ever

Tom Ferry is committed to making this his best year ever! The following video is filled with valuable and actionable steps to increase your business:

  • 3 things you should be doing this year
  • A proven script and why you should call every lead in your database
  • How accountability can help you achieve exponential growth

For more information click here.

Manhattan Rents Grow Faster Than Sales Prices in November

Fewest rentals discounted and highest rent increase in the Upper Manhattan submarket, according to the November 2016 StreetEasy Market Reports

New York, NY – Dec. 29, 2016 (PRNewswire) Key facts for November 2016:

  • Manhattan’s median monthly rent grew 1.9 percent year-over-year to $3,245, led by 6.4 percent growth in Upper Manhattan. Upper Manhattan rentals also had the smallest share of inventory discounted (29.9 percent).
  • Median resale price in Manhattan rose 0.5 percent year-over-year to $979,791, the slowest pace of price growth since January 2011.
  • Brooklyn’s median rent increased 0.9 percent year-over-year to $2,870. Median rent in the North Brooklyn submarket declined 1.9 percent. North Brooklyn had the highest share of rentals discounted last month (48 percent).
  • Brooklyn’s median resale price grew 3.6 percent year-over-year to $562,663. North Brooklyn was the only submarket in the borough where resale prices declined (-2.8 percent).

Manhattan rent growth outpaced resale price growth in November across all submarkets. Upper Manhattan led, comprised of Harlem, Washington Heights, Hamilton Heights and Manhattanville, remained the least expensive submarket but had the highest rent increases:

chart-1

The North Brooklyn submarket was the only area across both boroughs where resale prices and rents declined year-over-year in November:

chart-2

The fall season yielded little relief for renters in Manhattan, where rent growth outpaced resale price growth in November, according to the November 2016 StreetEasy® Market Reports(i).

In Manhattan, median monthly rent grew 1.9 percent year-over-year to $3,245, as measured by the StreetEasy Rent Indices(ii). Median rent in the Upper Manhattan submarket remained the least expensive in the borough, but increased the most of any submarket in Manhattan and Brooklyn, rising 6.4 percent year-over-year to $2,449(iii). Rents grew the least in the Upper East Side submarket, up 0.4 percent year-over-year to $2,714.

Nearly 43 percent of rental units in Manhattan received a discount in November. Renters shopping in Upper Manhattan neighborhoods, such as Harlem, Washington Heights and Inwood, were the least likely to see units discounted – less than a third of rental inventory in the area was discounted in November (29.9 percent). This was the lowest share of rental discounts among Manhattan submarkets. The Downtown submarket had the most discounts at a share of 47.3 percent, followed by the Upper West Side submarket (47.2 percent).

In Brooklyn, median rent increased 0.9 percent year-over-year to $2,870, the slowest pace of rent growth since November 2010. Rents in the South Brooklyn submarket remained the least expensive in the borough, but rose 4.3 percent to $1,709. Those seeking rentals in North Brooklyn received a little relief, with rents declining 1.9 percent to $3,079. The median rent in North Brooklyn, which is comprised of Williamsburg, East Williamsburg and Greenpoint, remained the most expensive in Brooklyn, but was the only submarket in either borough where rents declined.

Fewer rentals received discounts in Brooklyn than Manhattan, with 41.7 percent of Brooklyn rental inventory discounted in November. Nearly half of all rental listings in North Brooklyn (48 percent) were discounted last month, followed by Northwest Brooklyn (46 percent). South Brooklyn had the smallest share of rental inventory discounted (30.8 percent).

The sales market cooled in November, with the Manhattan median resale price rising only 0.5 percent year-over-year to $979,791 – about a quarter of the rate of rent growth. This was the slowest pace of price growth since January 2011. Resale prices in Upper Manhattan remained the fastest-growing among submarkets in the borough, up 5.9 percent year-over-year. Midtown resale prices increased 1.1 percent, while the Upper West Side submarket remained flat year-over-year and resale prices in both Downtown and Upper East Side declined 0.6 percent.

In Brooklyn, median resale price rose 3.6 percent year-over-year to $562,663, the slowest pace of price growth since September 2012. Resale prices in the Prospect Park submarket jumped 15.9 percent year-over-year to $881,672, surpassing North Brooklyn as the most expensive submarket in the borough.

“Heading into winter, the rental market typically slows down and landlords are eager to fill vacancies, presenting renters with potential opportunities to negotiate,” said StreetEasy economist Krishna Rao. “This year, Upper Manhattan is bucking that trend. If you are shopping for a rental apartment in that area, don’t expect competition to ease up much this winter. Come prepared with checkbook in hand.”

The complete StreetEasy Market Reports for Manhattan and Brooklyn with additional analysis, neighborhood data and graphics can be viewed at streeteasy.com/blog/market-reports.

chart

About StreetEasy:

StreetEasy is New York City’s leading local real estate marketplace on mobile and the web, providing accurate and comprehensive for-sale and for-rent listings from hundreds of real estate brokerages throughout New York City and the major NYC metropolitan area. StreetEasy adds layers of proprietary data and useful search tools to help home shoppers and real estate professionals navigate the complex real estate markets within the five boroughs of New York City, as well as Northern New Jersey and the Hamptons.

Launched in 2006, StreetEasy is based in the Flatiron neighborhood of Manhattan. StreetEasy is owned and operated by Zillow Group (NASDAQ: Z and ZG).

StreetEasy is a registered trademark of Zillow, Inc.

(i) The StreetEasy Market Reports are a monthly overview of the Manhattan and Brooklyn sales and rental markets. Every three months, a quarterly analysis is published. The report data is aggregated from public recorded sales and listings data from real estate brokerages that provide comprehensive coverage of Manhattan and Brooklyn, with most metrics dating back to 1995 in Manhattan and 2005 in Brooklyn. The reports are compiled by the StreetEasy Research team. For more information, visit http://streeteasy.com/blog/market-reports/. StreetEasy tracks data for all five boroughs within New York City, but currently only produces reports for Manhattan and Brooklyn.

(ii) Median resale prices are measured by the StreetEasy Price Indices. Also referred to as the StreetEasy Manhattan Price Index (MPI) and StreetEasy Brooklyn Price Index (BPI), the metrics are monthly indices that track changes in resale prices of condo, co-op, and townhouse units. Each index uses a repeat-sales method of comparing the sales prices of the same properties since January 1995 in Manhattan and January 2005 in Brooklyn. Given this methodology, each index accurately captures the change in home prices by controlling for the varying composition of homes sold in a given month. Data on sales of homes is sourced from the New York City Department of Finance. Full methodology here: http://streeteasy.com/blog/methodology-streeteasy-price-indices/

(iii) StreetEasy’s Upper Manhattan submarket is comprised of the following neighborhoods: East Harlem, West Harlem, Central Harlem, Inwood, Washington Heights, Hamilton Heights and Manhattanville.

Pending Home Sales Backpedal in November

Washington, D.C. – December 28, 2016 (Realtor.org) Pending home sales dipped in November to their lowest level in nearly a year as the brisk upswing in mortgage rates and not enough inventory dispirited some would-be buyers, according to the National Association of Realtors. Only the Northeast saw monthly and annual pending sales gains last month.

NAR logo

The Pending Home Sales Index,* a forward-looking indicator based on contract signings, declined 2.5 percent to 107.3 in November from 110.0 in October. After last month’s decrease in activity, the index is now 0.4 percent below last November (107.7) and is at its lowest reading since January (105.4).

Lawrence Yun

Lawrence Yun

Lawrence Yun, NAR chief economist, says ongoing supply shortages and the surge in mortgage rates took a small bite out of pending sales in November. “The budget of many prospective buyers last month was dealt an abrupt hit by the quick ascension of rates immediately after the election,” he said. “Already faced with climbing home prices and minimal listings in the affordable price range, fewer home shoppers in most of the country were successfully able to sign a contract.”

With 2017 at the doorstep, Yun says higher borrowing costs somewhat cloud the outlook for the housing market. This was evident in NAR’s most recent HOME survey, which found that confidence amongst renters about now being a good time to buy has diminished since the beginning of the year(1). The good news, according to Yun, is that the impact of higher rates will be partly neutralized by stronger wage growth as a result of the 2 million net new job additions expected next year.

“Healthy local job markets amidst tight supply means many areas will remain competitive with prices on the rise. Those rushing to lock in a rate before they advance even higher will probably have few listings to choose from,” said Yun. “Some buyers will have to expand the area of their home search or be forced to delay in order to save a little more money for their down payment.”

Existing sales are still expected to close out 2016 at a pace of around 5.42 million, which will eclipse 2015 (5.25 million) as the highest since 2006 (6.48 million). In 2017, sales are forecast to grow roughly 2 percent to around 5.52 million. The national median existing-home price is expected to increase to around 5 percent this year and 4 percent in 2017.

“Much more robust new home construction is needed to relieve inventory shortages and lessen the affordability pressures present throughout the country,” added Yun.

The PHSI in the Northeast nudged forward 0.6 percent to 97.5 in November, and is now 5.7 percent above a year ago. In the Midwest the index declined 2.5 percent to 103.5 in November, and is now 2.4 percent lower than November 2015.

Pending home sales in the South decreased 1.2 percent to an index of 118.7 in November and are now 1.3 percent lower than last November. The index in the West fell 6.7 percent in November to 101.0, and is now 1.0 percent below a year ago.

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.

# # #

1. According to NAR’s fourth quarter Housing Opportunities and Market Experience (HOME) survey, 57 percent of renters said now is a good time to buy, which is down from 60 percent in September and 68 percent in December 2015.

* The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined. By coincidence, the volume of existing-home sales in 2001 fell within the range of 5.0 to 5.5 million, which is considered normal for the current U.S. population.

Media Contact:

Adam DeSanctis
(202) 383-1178
Email

Don’t Let Sellers Discount the Winter Months

It’s a commonly held opinion – home owners don’t sell during the holiday/winter months. But is it valid?

If you look at certain data then yes but according to an article published by REALTOR Magazine there is money to be made when winter comes a knocking….

Sorting the number of homes that sold above list price by season shows:

Spring: 18.7%
Winter: 17.5%
Summer: 15.1%
Fall: 14.7%

The article adds:

“You may have fewer people looking to buy, but those who are looking are serious,” says Michelle Leader, a Redfin real estate professional in Oklahoma City. “Buyers that time of year often need to move, so they’re much less likely to make a lowball offer and they’ll often want to close quickly — two things that can make the sale much smoother.”

Also, sellers will often find less competition in the winter, allowing their home to stand out more, Leader says.”

Sourcing from a Redfin blog post they also break things down by city:

11_29_redfin

For the entire article click here.