Today's Headlines - Realty Times
Posted On Monday, 05 February 2024 10:41
Posted On Monday, 05 February 2024 09:07 Written by
Posted On Saturday, 03 February 2024 21:00

Homebuyer Demand Index is ticking up as the spring home-selling season draws nearer. That hasn’t yet converted to a meaningful improvement in pending sales–but Redfin agents expect it will in the next few months.

Redfin’s Homebuyer Demand Index—a measure of requests for tours and other buying services from Redfin agents—rose 6% from a week earlier during the week ending January 28, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. An additional measure of showings also signals tours have ticked up over the last week.

More buyers are touring homes because mortgage rates are holding steady below 7%, down from 8% this past October, and some buyers are worried prices will increase more if they wait longer. Sale prices rose 5.5% year over year during the four weeks ending January 28, the biggest increase in over a year.

But that earliest-stage demand hasn’t yet translated into home sales. Mortgage-purchase applications declined from a week earlier and pending sales posted their biggest year-over-year decline in four months, likely reflecting tepid early-stage demand during the middle of January. Home tours and other actions buyers typically take before applying for a mortgage was lower than expected in mid-January as daily average mortgage rates inched up from their December low point and severe weather kept many would-be buyers at home.

Redfin agents expect the increase in tours to convert into an improvement in pending sales over the next few months. That’s partly because of typical seasonality: Home listings and sales usually pick up as spring approaches.

“I thought declining mortgage rates and more inventory would cause the market to take off right at the start of the new year. But even though demand has picked up some, I’m not wowed,” said Hal Bennett, a Redfin Premier agent in the Seattle area. “Now I believe this year’s market will launch in the spring, once 6% rates are even more entrenched in buyers’ psyches and more homeowners list their houses.”

This week’s economic news suggests that mortgage rates are unlikely to meaningfully fall in the next few months. At its press conference on January 31, the Fed signaled they’re unlikely to cut interest rates in March, which will probably keep mortgage rates elevated near their current level into the spring, though Redfin economists still expect them to gradually decline by the end of the year.

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

6.75% (Jan. 31)

Down from 6.95% a week earlier

Up from 6.17%

Mortgage News Daily

Weekly average 30-year fixed mortgage rate

6.69% (week ending Jan. 25)

Up from 6.6% a week earlier, but near lowest level since May

Up from 6.13%

Freddie Mac

Mortgage-purchase applications (seasonally adjusted)

 

Down 11% from a week earlier; up 10% from a month earlier (as of week ending Jan. 26)

Down 20%

Mortgage Bankers Association

Redfin Homebuyer Demand Index (seasonally adjusted)

 

Down 3% from a month earlier (as of week ending Jan. 28)

Down 17%

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

Google searches for “home for sale”

 

Up 25% from a month earlier (as of Jan. 27)

Down 16%

Google Trends

Touring activity

 

Up 9% from the start of the year (as of Jan. 30)

At this time last year, it was up 5% from the start of 2023

ShowingTime, a home touring technology company

Key housing-market data

U.S. highlights: Four weeks ending January 28, 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
January 28, 2024

Year-over-year
change

Notes

Median sale price

$361,245

5.5%

Biggest increase since Oct. 2022

Median asking price

$392,349

7%

Biggest increase since Sept. 2022

Median monthly mortgage payment

$2,595 at a 6.69% mortgage rate

12.3%

Down roughly $120 from all-time high set in October 2023, but up roughly $250 from the four weeks ending Dec. 31

Pending sales

62,501

-8.5%

Biggest decline since October 2023

New listings

65,722

4.9%

 

Active listings

743,508

-3.8%

 

Months of supply

4.8 months

+0.2 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

30%

Up from 29%

 

Median days on market

47

-2 days

 

Share of homes sold above list price

22.8%

Up from 21%

 

Share of homes with a price drop

5.2%

+0.3 pts.

 

Average sale-to-list price ratio

98.2%

+0.5 pts.

 

Metro-level highlights: Four weeks ending January 28, 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 (15.6%)

Miami (14.7%)

New Brunswick, NJ (13.3%)

West Palm Beach, FL (12.9%)

Detroit (11.8%)

Austin, TX (-5.6%)

San Antonio, TX (-2.1%)

Declined in 2 metros

Pending sales

San Francisco (11.5%)

San Jose, CA (10.9%)

Anaheim, CA (1.7%)

Portland, OR (-31.2%)

San Antonio, TX (-31%)

Denver (-30.6%)

Nashville, TN (-18.7%)

New Brunswick, NJ (-17.6%)

Increased in 3 metros

New listings

Fort Lauderdale, FL (26.5%)

Phoenix (23.1%)

San Diego, CA (22.6%)

Miami (22.3%)

Minneapolis, MN (19.9%)

Denver (-20.8%)

Chicago (-18.7%)

Atlanta (-15.9%)

Portland, OR (-10.5%)

Nashville, TN (-9.8%)

Declined in 16 metros

To view the full report, including charts, please visit:
https://www.redfin.com/news/housing-market-update-more-house-hunters-touring-homes

 

Posted On Sunday, 04 February 2024 09:53 Written by
Posted On Friday, 02 February 2024 12:25
Posted On Friday, 02 February 2024 11:52
Posted On Friday, 02 February 2024 11:41
Posted On Friday, 02 February 2024 11:05
Posted On Friday, 02 February 2024 10:33

New construction has taken up a growing share of the for-sale housing pie because homebuilding has increased and the number of individual homeowners selling has decreased

Nationwide, 31.8% of U.S. single-family homes for sale in the fourth quarter were new construction, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That’s comparable with 31.9% a year earlier, which is the highest level of any fourth quarter on record.

Newly built homes are taking up a growing share of the for-sale housing pie for two primary reasons:

  1. Homebuilding has increased. Homebuilding has been on an upward trajectory since 2009 as builders have slowly climbed their way out of the hole caused by the Great Recession. Construction also jumped during the pandemic as builders responded to surging homebuyer demand fueled by record-low mortgage rates.
  2. The number of homeowners putting their houses on the market has decreased over the last year and a half. That’s because mortgage rates started rising in 2022 and jumped to a 23-year high in 2023, prompting many homeowners to stay put instead of selling and losing the rock-bottom rate they scored during the pandemic. While mortgage rates have fallen a bit in the last few months, this “lock-in effect” continues to hamper listings, which are higher than they were a year ago but remain far below pre-pandemic levels.

Homebuilders have been offering sizable concessions, including money for mortgage rate buydowns, to attract bidders and offload inventory. That has made it hard for some individual sellers of existing homes to compete for buyers.

“Newly built homes are selling quickly right now because builders are offering such good discounts,” said Heather Mahmood-Corley, a Redfin Premier real estate agent in Phoenix. “I recently had a buyer who wasn’t interested in a new construction home, but the builder offered such a good rate–5.25%–that they couldn’t afford not to take it. Another one of my buyers got a $10,000 credit for closing costs from a builder.”

While builders are offering discounts, they’ve also boosted prices, according to Christine Kooiker, a Redfin Premier real estate agent in Grand Rapids, MI.

“One of the builders in Grand Rapids that focuses on entry-level homes now has prices in the mid $300,000 range,” Kooiker said. “Not long ago, buyers could get a new construction home here for $250,000 or $300,000.”

Roughly two of every five (42%) new single-family homes that sold in 2022 went for $500,000 or more, up from under one-third (30%) in 2021 and 18% in 2020.

To view the full report, including a chart, please visit: https://www.redfin.com/news/new-construction-q4-2023

Posted On Friday, 02 February 2024 07:22 Written by

The two most important days in your life are the day you were born and the day you find out why you were born. Personally, I know I was put on this Earth to teach other business leaders and working professionals. 

Life is about purpose —finding your purpose and living your purpose both in your professional life and your personal life. Purpose is what gives us motivation and makes our working lives enjoyable. And as we spend a large chunk of our adult lives at work, purpose in work is fundamental. But as many Baby Boomers are starting to realize, when hitting retirement age, what fills that gap left behind?

Many individuals spend the last few years of their work life just waiting for retirement, for the day when they no longer have to go into the office, sign on, or report to a manufacturing floor, and can finally pursue their other interests. But when that day comes, many are at a loss. I have seen many retirees walking around nonchalantly as if they have nowhere to go and no excitement.

When asked, “What are your interests? What are your hobbies?” The answer is typically “I don’t know.”

When you spend your time constantly busy, your world becomes very small, and it can be a struggle to open your horizons again to look forward to the future. Many retirees say they have been too busy and do not know what they are interested in. This is a rear-view-mirror type of perspective and not a forward view of the future that lies in front of them. The big question is: How do you correct this mindset?

Be of Service to Others

Many individuals spend their lives chasing the definition of “success,” whether that means having a lot of money, getting a promotion, owning their own business, or raising a family. But success is not a stagnant entity. Is what you thought success would be in your 20s still valid in your 40s? Will it be the same in your 70s and your 80s? Absolutely not. Revisit and redefine your view of success.

But even more important than success is significance, as I have mentioned to the many readers of this blog on more than one occasion. Success is something we chase for ourselves, but significance is what we do for others. I have spoken about success versus significance a lot in the past, and how service to others will bring longevity in business and profits. However, this principle applies directly to our personal lives and retirement as well.

When you encroach upon retirement age, you have lived a full life and have an endless supply of wisdom to show for it. Every one of us has talents and skills that we can share with others, and by serving others, we achieve a sense of purpose with our lives. Aim to live not just a successful life at the time of retirement but a significant one as well, in which you continue to serve others and better the world.

My Guide to a Prosperous Retirement

You may not think your future looks bright because you are older, you have no hobbies, and feel the “best days are behind you.” That belief is a Soft Trend based on an assumption about the future, and not a certain fact.

The beauty of Soft Trends is that they can be changed. By changing how you think about the future and what is possible, you can design a better one for yourself. Below are some tips to help you change your Futureview® and leverage that aforementioned Soft Trend to your advantage, designing a significant and successful retirement:

Learn Something New

Back in my 20s, I realized that many people do not know all of what type of drive is inside them, even by the time they hit retirement. We all have unique talents and gifts internally that we will not find if we do not look for them. Therefore, I made a commitment to myself to learn one new thing every year. One year I learned to cook, another I learned to scuba dive, and another I learned the art of filmmaking.

I did not have a list of everything I wanted to learn, just that I wanted to learn something new every year. So, how did I find each thing I wanted to learn? I kept an opportunity antenna up in the back of my head, in similar ways that I teach business leaders to keep up in everyday operation. If I saw a notice for guitar lessons and it stuck with me for a while, I knew that was what I would learn the next year.

I fully believe that we all have drive inside of us; you just have to find it. So, I encourage you to make a commitment to yourself to learn one new thing every year and uncover what may be fulfilling to you in ways you never expected.

Experiment in Life

In addition to learning something new every year, I believe that you also need to experiment and play with the world around you. Read something new that you typically would not like, such as philosophy or astronomy. Read articles about the world and how things work in areas you do not understand. Limit your television entertainment or watch something different once in a while to see what happens. Get into interesting conversations — not about people, places, and things, but about concepts, ideas, insights, and foresights. These will be some of the most stimulating conversations you will ever have.

The key to never stopping learning is to experiment with new ideas. You have nothing to lose, and for many, nothing but time in front of you!

Remember That Everything Is a ‘Yet’

Many retirees think in absolutes. They speak about how things are instead of how they could be. “I don’t have hobbies.” “I don’t know what interests me.” When you think in absolutes, you are speaking of the past, and your mind is closed off to the future.

Instead, always add the word “yet” at the end. “I don’t have hobbies yet.” “I don’t know what my interests are yet.” Stop closing your mind to the future and, instead, open the door to endless opportunity with a positive Futureview.

Live with Significance

Serving others is a fulfilling endeavor that gives purpose to our lives, so share those aforementioned years of wisdom you have developed throughout the course of your life, and apply them.

Consider volunteering to provide meaningful service to business, organizations, or individuals who need it most. Remember: This is all about elevating the significance of your retirement. When you elevate your significance, success and a brighter outlook on the future is guaranteed to follow.

Anticipate the Future

Because several people look forward to retirement as a time they can finally relax and enjoy their life after what is perceived to be a lifetime of work, they can be shocked at the reality that retirement does not necessarily feel like a permanent vacation. Going from a day filled with meetings and labor to a day of nothing can be a difficult transition and lead to a bleak outlook on the future.

But you are going to spend the rest of your life in the future, so you have to plan for it. We all start saving and investing early for financial stability in retirement, so do the same for your mental and personal future. 

Ready to embrace a future filled with purpose and innovation? Stay ahead of the curve by exploring Daniel Burrus’ Top 25 Tech Trends List for 2024. Don’t miss out on the insights that could reshape your retirement and the world around you. Download the list now at www.burrus.com/seethefuture and embark on a journey to anticipate, adapt, and thrive in the ever-evolving landscape of possibilities!

Posted On Tuesday, 06 February 2024 00:00 Written by
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