Today's Headlines - Realty Times
Posted On Thursday, 13 June 2024 10:58

Daily average mortgage rates dropped to their lowest level in three months on Wednesday, after the May CPI report showed that inflation is continuing to cool. That could bring back some demand; for now, home sales are still declining.

The median U.S. home-sale price hit an all-time high of $394,000 during the four weeks ending June 9, up 4.4% year over year—the biggest increase in about three months. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

There are signs that home-price growth could ease soon. Asking prices have leveled off, and 6.5% of home sellers are cutting their asking price, on average, the highest share since November 2022. Prices are already declining in four U.S. metros: Austin, TX, Fort Worth, TX, San Antonio, TX and Portland, OR.

Meanwhile, the typical homebuyer’s monthly housing payment dipped to $2,829, which is $30 below April’s record high. Median housing payments have fallen slightly since April despite record sale prices because weekly average mortgage rates have declined to 6.99%.

Mortgage rates are likely to decline further over the summer, which would keep monthly housing costs from spiraling up again. Daily average mortgage rates dropped to their lowest level in three months on June 12 after the latest CPI report showed that inflation is continuing to cool. And although the Fed forecast just one interest-rate cut this year at its June 12 meeting, it’s possible the Fed wasn’t able to fully consider the fresh inflation data in time for the meeting; they may revise their projection at the next meeting. (It’s worth noting that daily rates have been volatile for the last several days; they soared after last Friday’s hot jobs report before dropping back down.)

“The latest inflation report is good for homebuyers because it has already sent mortgage rates down, though this week’s Fed meeting will temper mortgage-rate declines,” said Chen Zhao, Redfin’s economic research lead. “But on the other side of the coin, if lower mortgage rates bring back more demand than supply, that could erase the possibility that home-price growth softens, and push prices up even further. Lower rates and higher prices may ultimately cancel each other out when it comes to homebuyers’ monthly payments.”

For now, high costs are keeping some prospective homebuyers on the sidelines. Pending home sales are down 3.5% year over year, the biggest decline in three months, and Redfin’s Homebuyer Demand Index—a measure of requests for tours and other buying services from Redfin agents—is down 18%, sitting at its lowest level since February. But there is one encouraging sign for demand: Mortgage-purchase applications are up 9% week over week. On the selling side, new listings are up 7.8% year over year, but they’re below typical springtime levels, which is why home prices keep rising despite tepid demand.

For more on Redfin economists’ takes on the housing market, 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

6.98% (June 12)

Up from 7.03% a week earlier, but down from a 5-month high of 7.52% 5 weeks earlier

Up from 6.94%

Mortgage News Daily

Weekly average 30-year fixed mortgage rate

6.99% (week ending June 6)

Down slightly from 7.03% a week earlier; down from a 5-month high of 7.22% a month earlier

Up from 6.71%

Freddie Mac

Mortgage-purchase applications (seasonally adjusted)

 

Increased 9% from a week earlier (as of week ending June 7)

Down 12%

Mortgage Bankers Association

Redfin Homebuyer Demand Index (seasonally adjusted)

 

Down 2% from a month earlier (as of week ending June 9)

Down 18%

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

Touring activity

 

Up 28% from the start of the year (as of June 9)

At this time last year, it was up 22% 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 10)

Down 16%

Google Trends

Key housing-market data

U.S. highlights: Four weeks ending June 9, 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 9, 2024

Year-over-year change

Notes

Median sale price

$393,627

4.4%

All-time high; biggest increase in about 3 months (tied with increase during 4 weeks ending April 21)

Median asking price

$417,475

6%

 

Median monthly mortgage payment

$2,829 at a 6.99% mortgage rate

8.6%

$30 below all-time high set during the 4 weeks ending April 28

Pending sales

86,604

-3.5%

Biggest decline in 3 months

New listings

100,411

7.8%

 

Active listings

939,839

16.7%

 

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

42.4%

Down from 48%

 

Median days on market

31

+3 days

 

Share of homes sold above list price

32.1%

Down from 35%

 

Share of homes with a price drop

6.5%

+2 pts.

Highest level since Nov. 2022

Average sale-to-list price ratio

99.6%

-0.3 pts.

 

Metro-level highlights: Four weeks ending June 9, 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 (16.8%)

Newark, NJ (16.4%)

New Brunswick, NJ (15.5%)

Nassau County, NY (14.6%)

San Jose, CA (13%)

Austin, TX (-3.5%)

Fort Worth, TX (-2.5%)

San Antonio (-1.1%)

Portland, OR (-0.9%)

Declined in 4 metros

Pending sales

San Jose, CA (12.2%)

Columbus, OH (5.8%)

Pittsburgh (5.4%)

Milwaukee (4%)

Seattle (3.6%)

Houston (-16.2%)

West Palm Beach, FL (-13.4%)

Fort Lauderdale, FL (-11.5%)

Atlanta (-10%)

Tampa, FL (-9.9%)

Increased in 13 metros

New listings

San Jose, CA (39.9%)

Phoenix (26.1%)

San Diego (23.2%)

Miami (20.9%)

Denver (17.7%)

Atlanta (-7.9%)

Chicago (-5.1%)

Newark, NJ (-3.2%)

Indianapolis (-2.8%)

Minneapolis (-2.1%)

Declined in 7 metros

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

Posted On Thursday, 13 June 2024 06:04 Written by
Posted On Wednesday, 12 June 2024 13:56
Posted On Wednesday, 12 June 2024 11:09

More homes are sitting on the market for at least 30 days without going under contract, as homebuying demand falters in the face of high housing costs

More than three in five (61.9%) homes that were on the market in May had been listed for at least 30 days without going under contract, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That’s up from 60% one year earlier and roughly 50% two years earlier.

The share of homes sitting on the market for at least one month has been increasing year over year since March, when growth in new listings accelerated but demand from buyers remained tepid, as it has been since mortgage rates started rising in 2022. More homes for sale paired with slow demand means that less-desirable listings are piling up, leaving some of them without a buyer.

This is according to an analysis of Redfin’s housing-market data, which goes back through 2012. The inventory data in Redfin’s report includes homes that were on the market for at least 30 days, or at least 60 days, without going under contract and were actively listed on the final day of the month.

Stubbornly high mortgage rates and record-high home prices have priced out many homebuyers, tempering demand even at a time of year when the housing market is typically warming up. The average 30-year fixed mortgage rate is 6.99%, more than double the pandemic-era low and just slightly below October 2023’s two-decade high of 7.8%. The median U.S. monthly housing payment is just about $30 shy of its record high.

Redfin agents report that move-in ready homes in desirable neighborhoods are still selling quickly, but listings that don’t fit that bill are starting to pile up in some parts of the country.

Two in five listings are sitting on the market for 60 days or more

Two in five (40.1%) homes that were on the market in May had been listed for at least two months without going under contract. That’s unchanged from a year earlier and up from 27.8% two years earlier.

The share of homes sitting on the market for at least 60 days was essentially flat year over year in both April and May. Before that, the metric had posted annual declines since last September. The share of homes sitting for at least 60 days is likely to start increasing next month so long as mortgage rates stay high, according to Redfin economists.

Metro-level highlights: Unsold inventory, May 2024

The share of inventory sitting on the market for 30-plus days is growing fastest in Dallas. Just over 60% of Dallas listings that were on the market in May had been listed for at least 30 days, up from 53% a year earlier. Next come three Florida metros: Fort Lauderdale (75.5%, up from 68.2%), Tampa (68.7%, up from 61.9%) and Jacksonville (69.2%, up from 62.9%). Inventory is growing stale fast in Texas and Florida largely because those states are building far more homes than anywhere else in the country, contributing to rising supply, and because some homebuyers are nervous about the increasing prevalence of natural disasters.

On the other end of the spectrum, the share of homes sitting on the market for at least 30 days has declined most in Seattle (41.2%, down from 50.5%), Las Vegas (55.9%, down from 63.9%) and San Jose, CA (34.4%, down from 42.2%).

To view the full report, including charts and additional metro-level data, please visit: https://www.redfin.com/news/stale-inventory-may-2024

Posted On Wednesday, 12 June 2024 06:46 Written by
Posted On Thursday, 13 June 2024 00:00 Written by
Posted On Tuesday, 11 June 2024 10:25

Median asking rent fell -0.7% in May, with declines across all unit sizes and pockets of increases in certain Midwest and Northeast markets

Rents dropped in May for the tenth consecutive month, though the pace of the decline has slowed since earlier this year, suggesting potential challenges for further reductions in overall inflation, according to the Realtor.com® Rental Report released today. This could potentially complicate the Fed’s policy decisions and also underscores the need for more housing construction, particularly in some markets where a lack of rental supply is contributing to higher prices.

The median asking rent nationally for 0-2 bedroom units fell by -0.7% ($13) from May of last year to $1,732, and declined across all size categories. That’s just $24 (-1.4%) below its August 2022 peak. Median asking rents have risen by 21.5% over the past five years. 

“Slowing rent growth preceded slower shelter inflation, and falling market rents – as we’ve seen in the last 10 months of Realtor.com® data – have furthered that deceleration in shelter prices,” said Danielle Hale, Chief Economist at Realtor.com®. “As a significant driver of overall inflation, shelter costs need to slow further and are expected to do so. However, waning market rent declines foreshadow smaller Consumer Price Index shelter declines ahead and put a question mark on whether we’ve seen enough to rein in overall inflation, complicating the Fed’s policymaking.”

CPI shelter index is “stickier”

Shelter costs have been a big driver of overall consumer cost increases. The Consumer Price Index for shelter, which includes rent of primary residence and the owners’ equivalent rent of residences, was up 5.5% year over year in April after rising 5.7% in March, and is down from a peak of 8.2% in March 2023. That government index typically lags behind market-based rent measures, like Realtor.com rent data, but recently that gap has widened, creating a “stickier” shelter index. It’s expected to drop further, but the pace of that decline has slowed since February, making it potentially more difficult for the overall inflation picture to improve. For renters, an uptick in housing construction to alleviate short supplies could help lower costs.

Rents drop in South and West, increase in Midwest and Northeast

The biggest year-over-year declines in median asking rent were seen in the South, led by Austin (-9.3%), Nashville (-8.3%) and San Antonio (-8.2%). There were also declines in the West, led by Phoenix (-4.5%), San Francisco (-4.3%) and Las Vegas (-4.1%). In other markets, strong labor markets stoked demand while the increase in supply of new units didn’t keep pace, pushing up rents. In the Midwest, rents rose in markets including Indianapolis (+4.4%), Milwaukee (+4.3%) and Minneapolis (+2.9%). In the Northeast, Pittsburgh (+2.4%) and New York (+2.2%) were among the markets showing an increase.

Rents decline across all size categories

Median rents for units of all sizes continued to fall in May. The median asking rent for studios nationwide fell by -1.9% on a year-over-year basis, to $1,449. That’s down -2.8% from the October 2022 peak but 17.3% higher than five years ago. Median rent for one-bedroom units fell -1.1%, the twelfth year-over-year decline in a row, to $1,612, which is still 20.3% higher than five years ago. And the median rent for two-bedroom units fell by -0.7%, the same rate of decline as last month, to $1,925. That was also the twelfth consecutive annual drop. Still, while two-bedroom rents were -1.4% below their August 2022 peak, they have risen by 23.3% over the past five years, a higher growth rate than seen in smaller units.

National Rental Data – May 2024

Unit Size

Median Rent

Rent YoY

Rent Change – 5 years

Overall

$1,732

-0.7%

21.5%

Studio

$1,449

-1.9%

17.3%

1-bed

$1,612

-1.1%

20.3%

2-bed

$1,925

-0.7%

23.3%

Rental Data – 50 Largest Metropolitan Areas – May 2024

Metro

Median Rent (0-2 Bedrooms)

YOY (0-2 Bedrooms)

Atlanta-Sandy Springs-Alpharetta, GA

$1,600

-5.8%

Austin-Round Rock, TX

$1,484

-9.3%

Baltimore-Columbia-Towson, MD

$1,769

-5.5%

Birmingham-Hoover, AL

$1,308

1.6%

Boston-Cambridge-Newton, MA-NH

$2,950

-1.5%

Buffalo-Cheektowaga, NY

NA

NA

Charlotte-Concord-Gastonia, NC-SC

$1,523

-5.0%

Chicago-Naperville-Elgin, IL-IN-WI

$1,839

0.7%

Cincinnati, OH-KY-IN

$1,367

1.9%

Cleveland-Elyria, OH

$1,224

2.7%

Columbus, OH

$1,184

-2.3%

Dallas-Fort Worth-Arlington, TX

$1,485

-3.7%

Denver-Aurora-Lakewood, CO

$1,928

-0.7%

Detroit-Warren-Dearborn, MI

$1,301

0.5%

Hartford-West Hartford-East Hartford, CT

NA

NA

Houston-The Woodlands-Sugar Land, TX

$1,385

-3.2%

Indianapolis-Carmel-Anderson, IN

$1,342

4.4%

Jacksonville, FL

$1,534

-4.1%

Kansas City, MO-KS

$1,310

-2.5%

Las Vegas-Henderson-Paradise, NV

$1,475

-4.1%

Los Angeles-Long Beach-Anaheim, CA

$2,775

-2.5%

Louisville/Jefferson County, KY-IN

$1,236

-2.5%

Memphis, TN-MS-AR

$1,224

-3.8%

Miami-Fort Lauderdale-West Palm Beach, FL

$2,393

-4.4%

Milwaukee-Waukesha, WI

$1,690

4.3%

Minneapolis-St. Paul-Bloomington, MN-WI

$1,533

2.9%

Nashville-Davidson–Murfreesboro–Franklin, TN

$1,517

-8.3%

New Orleans-Metairie, LA

NA

NA

New York-Newark-Jersey City, NY-NJ-PA

$2,857

2.2%

Oklahoma City, OK

$1,009

0.0%

Orlando-Kissimmee-Sanford,  FL

$1,672

-6.4%

Philadelphia-Camden-Wilmington, PA-NJ-DE-MD

$1,800

-0.4%

Phoenix-Mesa-Scottsdale, AZ

$1,538

-4.5%

Pittsburgh, PA

$1,484

2.4%

Portland-Vancouver-Hillsboro, OR-WA

$1,729

2.7%

Providence-Warwick,RI-MA

NA

NA

Raleigh, NC

$1,528

-3.4%

Richmond, VA

$1,487

-3.3%

Riverside-San Bernardino-Ontario, CA

$2,153

-1.7%

Rochester, NY

NA

NA

Sacramento-Roseville-Folsom, CA

$1,982

4.8%

San Antonio-New Braunfels, TX

$1,232

-8.2%

San Diego-Chula Vista-Carlsbad, CA

$2,886

-1.8%

San Francisco-Oakland-Berkeley, CA

$2,779

-4.3%

San Jose-Sunnyvale-Santa Clara, CA

$3,341

3.7%

Seattle-Tacoma-Bellevue, WA

$2,042

1.0%

St. Louis, MO-IL

$1,330

-1.8%

Tampa-St. Petersburg-Clearwater, FL

$1,742

-2.8%

Virginia Beach-Norfolk-Newport News, VA-NC

$1,533

3.2%

Washington-Arlington-Alexandria,DC-VA-MD-WV

$2,256

1.5%

Methodology 

Rental data as of May 2024 for studio, 1-bedroom, or 2-bedroom units advertised as for-rent on Realtor.com®. Rental units include apartments as well as private rentals (condos, townhomes, single-family homes). We use rental sources that reliably report data each month within the top 50 largest metropolitan areas. Realtor.com® began publishing regular monthly rental trends reports in October 2020 with data history stretching back to March 2019.

Posted On Tuesday, 11 June 2024 06:44 Written by

 

Does balance even exist in business …?

Balancing long hours in real estate with personal demands can be challenging. Focusing on high-impact tasks can drive your business forward and spend your time wisely. Time blocking also works well. By scheduling specific blocks of time for client meetings, property showings and administrative work, realtors gain back personal time.

Back to the question…

I ask the question, “Does work-life balance even exist?” because most high achievers swear by long hours and being obsessed with their goal until they reach it. In other words, they are extremists. Balance doesn’t exist in their world because they DON’T want it to. Perhaps it exists in those who remain “mediocre” or “comfortable” which is where the majority of people are. High achievers are obsessed with details, and surpassing their numbers. A great measure of success is taking a snapshot of where you are today, where you were last year and years prior to then. If you remain in the same spot than some behavior has to change.  

First, achieving work-life balance may be of no concern to high achievers in real estate. High achievers expect to win. They have high standards which can lead them to work longer. Second, their drive for perfection can lead to overworking. Instead of giving up on high standards, learning to delegate tasks will be crucial.

I believe there are good aspects of NOT achieving work-life balance just because of the unique drive and excitement for what one does everyday. What balances one person may NOT do the same for the next. We are all different. If you fall into the small percentage that stand out from the norm, that could be a good thing. Conversely, it would make sense to know your own limits and set your own boundaries. Recognize where you are and act accordingly. Downtime can be scheduled if needed.

This is what my time out looks like:

https://www.youtube.com/shorts/JKP48B7fcJE

 

Posted On Tuesday, 11 June 2024 06:26 Written by
Posted On Monday, 10 June 2024 15:36
Posted On Monday, 10 June 2024 13:14
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