Today's Headlines - Realty Times
Posted On Friday, 07 June 2024 15:57
Posted On Friday, 07 June 2024 12:15

Millennials, Gen Xers and baby boomers all ranked the overall economy as the top issue in their presidential pick. Preserving democracy was more likely than housing affordability to weigh on Gen Xers’ and boomers’ minds

More than nine in 10 (91%) adult Gen Zers say housing affordability is important when considering who they will vote for in the upcoming presidential election, making it the top issue for that generation, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

Gen Zers were more likely to rate housing affordability as an important factor in their vote than any other issue they were asked about, including the economy, abortion and gun rights, preserving democracy and foreign wars. This is according to a Redfin-commissioned survey of roughly 3,000 U.S. homeowners and renters conducted by Qualtrics in February 2024.

Millennials, Gen Xers and baby boomers were all more likely to say the strength of the overall economy was an important factor in their presidential pick than any other issue. Gen Xers and baby boomers also ranked preserving democracy above housing affordability. Still, at least 80% of every generation said housing affordability is an important factor.

All generations were more likely to rate housing affordability as an important factor in their presidential vote than abortion rights or student debt.

Redfin survey question: Please indicate how important each of the following issues are when considering how you’ll vote in the next presidential election

Gen Z

Millennials

Gen Xers

Baby Boomers

Housing affordability (91%)

Strength of the overall economy (89%)

Strength of the overall economy (94%)

Strength of the overall economy (95%)

Strength of the overall economy (82%)

Education (88%)

Preserving democracy (85%)

Preserving democracy (92%)

Education (82%)

Housing affordability (87%)

Education (84%)

Immigration (90%)

Gun rights (75%)

Immigration (79%)

Housing affordability (83%)

Foreign wars and/or geopolitical conflicts (88%)

Abortion rights (75%)

Preserving democracy (78%)

Immigration (82%)

Gun rights (81%)

Preserving democracy (73%)

Gun rights (77%)

Foreign wars and/or geopolitical conflicts (81%)

Housing affordability (80%)

Immigration (73%)

Foreign wars and/or geopolitical conflicts (77%)

Gun rights (79%)

Education (79%)

Student debt (73%)

Abortion rights (73%)

Abortion rights (72%)

Abortion rights (70%)

Foreign wars and/or geopolitical conflicts (72%)

Student debt (65%)

Student debt (49%)

Student debt (42%)

Housing affordability is important to American voters because homebuying—and renting, for that matter—have become increasingly costly over the last several years. Home prices have soared more than 40% since before the pandemic homebuying frenzy, and elevated mortgage rates are exacerbating high prices: 2023 was the least affordable year on record.

The issue is particularly important to young Americans because they are aging into homeownership; only 26% of adult Gen Zers already own a home. It’s more difficult for first-time buyers to break into today’s expensive market because they don’t have equity from a previous home sale to put toward their down payment and mortgage payments. Renting a home has also become much more expensive over the last several years, largely because demand for rentals surged during the pandemic: The median U.S. asking rent has increased more than 20% since 2019.

“Housing affordability is a cornerstone of this year’s presidential election because even though the economy is fairly strong, unemployment is low and wages are rising, buying a home feels impossible for many Americans,” said Redfin Senior Economist Elijah de la Campa. “This is particularly the case for young people, who have seen the cost of starter homes increase twice as fast as incomes. Young people care about other political issues, like immigration and abortion rights, but they’re more likely to cite housing affordability as a factor in their vote because it directly impacts the roof over their head, their lifestyle and their ability to build wealth.”

President Biden has released a plan to lower housing costs. Donald Trump has said he has a strategy to combat the expensive housing market.

To view the full report, including methodology, please visit: https://www.redfin.com/news/gen-z-housing-affordability-important-vote/

Posted On Friday, 07 June 2024 11:22 Written by

One of the major pitfalls of business and organizations today is believing that what they have done in the past will continue to work into the future.

I understand even hearing that may bother you, but it is a fact.

It is human nature to find comfort in what we know, in resisting change because that which is known is safe. While some may call this complacency, I refer to it as legacy thinking. No matter what it pertains to, legacy thinking keeps us firmly planted in the past and incapable of moving forward.

You may want everything to stay the same, but it doesn’t. As you try to cling to what has worked, you tend to forget that the world will continue to change around you. All that really results from legacy thinking is a stress-ridden protect-and-defend mindset. All of your energy and, in many cases, money goes toward desperately protecting the status quo.

If you are a business leader, putting out fires becomes your job as disruptions from the outside hit you hard.

Why Worry About Legacy Thinking?

As I have stated in the past, legacy thinking represents the strategies, thought processes, and actions that are becoming outdated. This can be defined as a mindset not suitable for providing you with the same growth you are used to in the modern market.

Tied closely to legacy thinking in today’s world is legacy technology. This type of technology you employ that no longer operates efficiently, effectively, or safely too often acts as a great reinforcer of a legacy mindset. It works, so why replace it?

The price you pay with legacy thinking and legacy technology can be astronomical — that’s why!

How Legacy Thinking Is Costing the Banking Industry

A legacy mindset connected to legacy technology creates a threat to your internal operations, leading to a large financial loss. How so? Let’s take a look at this recent example regarding financial institutions.

In 2023, the company Zelle faced multiple technological glitches that locked out thousands of clients and stopped the flow of funds. In total, this cost JPMorgan Chase millions of dollars.

Today, banks rely heavily on banking systems that were instituted decades ago. These applications have older programming languages that are rigid and difficult to accommodate for flexibility and scalability. Outages, glitches, and even security risks due to improper IT systems are running rampant with these different types of software.

According to IDC Financial Insights, legacy technology cost global financial institutions $37 billion in 2020, and that number is expected to rise to $57 billion by 2028! That is an incredible amount of loss that is already being predicted. But this is a Soft Trend that can be changed!

Legacy Technology and the Auto Industry

Legacy technology hurts more than just financial institutions. In the wake of the COVID-19 pandemic and natural disasters like the Texas ice storm, the United States faced a shortage of semiconductor chips for automotive vehicles, and we are still not at capacity in 2024.

One automobile can use upward of 3,000 chips. The auto industry is currently researching how to increase chip electrical capability to reduce this number, but we are still years away from a breakthrough. In real time, we are seeing the detrimental effect of the auto industry’s reliance on legacy technology with regard to these semiconductor chips. Trying to find a more efficient technology while behind the curve leaves many companies ripe for disruption that they could have prevented!

It is never enough to protect and defend the status quo. We should be learning from the past in this modern age of digital transformation and technological disruption. Organizations need to move past their old way of thinking and strategically look toward the future.

Change Your Mindset

Always remember: I do not disparage developments from the past. There is so much to be said about the usefulness of what we have implemented in industries thus far. This is why I swear by my Both/And Principle.

Do not completely scrap your old ways of doing things. What you need to consider as a business leader is being Anticipatory in how you address the changing market. Choose to embrace innovative technology to pre-solve disruptions before they disrupt and inhibit your growth.

It is important to take time to conduct an in-depth review of the systems and thought processes you have in place at your business or organization. Do not be afraid as a leader to ask the questions that need to be asked.

•  How long have you had this same system in place?
•  Are there glitches or malfunctions, no matter how minor?
•  Have your costs of maintenance increased throughout the years?
•  Are you keeping up with your need for increased data storage, your customer base, and the higher demand by customers?

Next, I encourage you to take an exponential look at recent innovations in the market. For instance, would cloud computing improve your operations or increase security for your customers? Are there systems in place that would better accommodate 5G speeds? Could the use of AI streamline some of your processes?

Legacy thinking and legacy technology may be comforting, but that comfort will not last. Having a reactionary approach will only inhibit your growth. It is time for business leaders to shift away from a legacy mindset to an Anticipatory one instead, transforming the future into an advantage instead of trying to hide from it.

Posted On Tuesday, 11 June 2024 00:00 Written by

Nothing helps perpetuate success as much as sharing the stories behind the success! People LOVE a great success story. People want to be inspired to try, and nothing is more inspirational than someone seeing a success story about people like themselves accomplishing something they would also like to accomplish!

Sharing success stories about HOW your clients succeeded in getting into the house of their dreams, how they overcame the challenges by following a specific plan and not giving up enabled them to cross the finish line a WINNER!

It doesn’t matter how ordinary or complicated. It doesn’t matter if they had closed in fifteen days or in fifteen months, the story behind each closed loan is an opportunity to share in the success of those around you. And it’s not just about the client; it’s about the referral partners, the agents, your team, and all the support services that may have played a role in helping that client WIN! 

My clients have been using YouTube®, LinkedIn®, Facebook Live®, and other social media platforms to share the real journey of each closing. Sometimes they use a video of the actual client and have them share their story, or they talk to the agent involved to help create the picture. In cases where people don’t wish to be recorded, the loan officer can simply share the generic story of the situation and how things came together to close the deal. It all depends on the comfort level of those involved. The important part is, to be sure you relate the story and how anyone can become a homeowner if they are prepared to do the work, execute the plan, and not give up on their dream, because as I have shared before, the journey only ends if you quit, or you WIN!

Economic news this week will be important to follow. ADP numbers were a bit weaker than expected. Today we get weekly jobless and continuing claims; and Friday we will see the May jobs report. We have been on a pretty good run the last week and if this data is weaker than expected or as expected, we could see continuing improvement in the rate markets. As always, know what is happening and when information has a chance to impact the rate market. Also, don’t gamble with rates, make sure your client has all the information and that THEY are making an informed choice. Questions or comments: This email address is being protected from spambots. You need JavaScript enabled to view it.

Posted On Monday, 10 June 2024 00:00 Written by
Posted On Thursday, 06 June 2024 09:09 Written by

Nationwide, price drops are at their highest level since November 2022, suggesting more metros may soon see sale prices decline

Home-sale prices are declining year over year in four major U.S. metros, three of them in Texas: Austin (-2.9%), San Antonio (-1.2%), Fort Worth (-1.2%) and Portland, OR (-0.9%). The last time prices fell in four or more metros was in January, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

Nationwide, prices rose 4.4% from a year earlier to an all-time high during the four weeks ending June 2. But there are early indicators that national price growth could soften soon: 6.4% of U.S. home sellers cut their asking price, on average, the highest share since November 2022. And the typical active listing has been on the market for 46 days, up 2.3% year over year–the biggest increase in nine months, suggesting home listings are growing stale faster than they were a year ago.

Some listings are growing stale because high mortgage rates and housing costs are causing would-be buyers to back off. The weekly average mortgage rate rose back above 7% last week, pushing the median U.S. monthly housing payment to a near-record-high of $2,838. (It’s worth noting that daily average rates are declining this week after U.S. job openings fell to their lowest level in more than three years.) Pending home sales fell 3.8% year over year, the biggest decline in three months, and mortgage-purchase applications declined 4% week over week. Inventory is losing momentum, too, which is another reason sales are falling. New listings posted one of their smallest year-over-year increases (6.9%) since February, with high mortgage rates discouraging homeowners from selling because it would mean giving up their low rate and trying to offload their home in a relatively slow market.

“There’s no getting around the fact that it’s expensive to buy a home right now, but some people are having luck negotiating with sellers,” said Bonnie Phillips, a Redfin Premier agent in Cleveland. “I've seen buyers get a home under asking price when it has been on the market for a few weeks. That's especially true when their agent presents market data that supports a lower market value, like comps of similar homes nearby that have sold for less, or fewer than usual online views or tours. Other buyers are finding creative ways to afford a home, like buying a duplex, living in one unit and renting out the other.”

For Redfin economists’ takes on the housing market, including more on how current financial events are impacting mortgage rates, please visit Redfin’s “From Our Economists” page.

Leading indicators

Indicators of homebuying demand and activity

 

Value (if applicable)

Recent change

Year-over-year change

Source

Daily average 30-year fixed mortgage rate

7.03% (June 5)

Up slightly from 6.99% 2 weeks earlier, but down from a 5-month high of 7.52% 5 weeks earlier

Up from 6.95%

Mortgage News Daily

Weekly average 30-year fixed mortgage rate

7.03% (week ending May 30)

Up from 6.94% a week earlier, but down from 5-month high of 7.22% a month earlier

Up from 6.79%

Freddie Mac

Mortgage-purchase applications (seasonally adjusted)

 

Declined 4% from a week earlier (as of week ending May 31)

Down 13%

Mortgage Bankers Association

Redfin Homebuyer Demand Index (seasonally adjusted)

 

Essentially unchanged from a month earlier (as of week ending June 2)

Down 13%

Redfin Homebuyer Demand Index, a measure of requests for tours and other homebuying services from Redfin agents

Touring activity

 

Up 23% from the start of the year (as of June 2)

At this time last year, it was up 10% from the start of 2023

ShowingTime, a home touring technology company

Google searches for “home for sale”

 

Unchanged from a month earlier (as of June 3)

Down 18%

Google Trends

Key housing-market data

U.S. highlights: Four weeks ending June 2, 2024

Redfin’s national metrics include data from 400+ U.S. metro areas, and is based on homes listed and/or sold during the period. Weekly housing-market data goes back through 2015. Subject to revision.

 

Four weeks ending June 2, 2024

Year-over-year change

Notes

Median sale price

$392,200

4.4%

All-time high

Median asking price

$417,274

5.9%

 

Median monthly mortgage payment

$2,836 at a 7.03% mortgage rate

8.7%

$26 below all-time high set during the 4 weeks ending April 28

Pending sales

86,464

-3.8%

Biggest decline in over 3 months

New listings

98,467

6.9%

Smallest increase in over 4 months (with the exception of the 4 weeks ending May 5)

Active listings

923,747

15.8%

 

Months of supply

3.2

+0.6 pts.

4 to 5 months of supply is considered balanced, with a lower number indicating seller’s market conditions.

Share of homes off market in two weeks

43.4%

Down from 48%

 

Median days on market

32

+3 days

 

Share of homes sold above list price

32%

Down from 34%

 

Share of homes with a price drop

6.4%

+2 pts.

Highest level since Nov. 2022

Average sale-to-list price ratio

99.6%

-0.2 pts.

 

Metro-level highlights: Four weeks ending June 2, 2024

Redfin’s metro-level data includes the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy.

 

Metros with biggest year-over-year increases

Metros with biggest year-over-year decreases

Notes

Median sale price

Anaheim, CA (17.3%)

Nassau County, NY (15.8%)

Newark, NJ (13.9%)

Cleveland, OH (13.9%)

Oakland, CA (13.8%)

Austin, TX (-2.9%)

San Antonio (-1.2%)

Fort Worth, TX (-1.2%)

Portland, OR (-0.9%)

Decreased in 4 metros

Pending sales

San Jose, CA (10.5%)

Anaheim, CA (7.1%)

Columbus, OH (7%)

San Diego (6.7%)

San Francisco (4.1%)

Houston (-15.5%)

West Palm Beach, FL (-14.6%)

Atlanta (-13.9%)

Fort Lauderdale, FL (-12%)

Virginia Beach, VA (-11.3%)

Increased in 14 metros

New listings

San Jose, CA (39.8%)

Phoenix (22.4%)

San Diego (21.2%)

Denver (18.4%)

Las Vegas (18%)

Atlanta (-9.3%)

Chicago (-5.5%)

Minneapolis (-3.6%)

Newark, NJ (-3.2%)

Portland, OR (-2.7%)

Decreased in 10 metros

To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-home-prices-decline-austin

Posted On Thursday, 06 June 2024 06:48 Written by
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