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Posted On Friday, 31 May 2024 11:07
Posted On Friday, 31 May 2024 10:47

U.S. renters are less likely to move than they were a decade ago, as soaring housing costs have priced many out of homeownership

One in six (16.6%) U.S. renters stayed in their home for 10 years or more in 2022, up from 13.9% a decade earlier. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

Redfin also analyzed renter tenure by other timeframes:

  • 5-9 years: One in six (16.4%) lived in their home for five to nine years in 2022, up from 14% a decade earlier.
  • 1-4 years: The lion’s share of renters stay put for one to four years. Just over two in five (41.8%) stayed in their home for one to four years in 2022, up from 39.9% a decade earlier.
  • 12 months or less: One-quarter (25.2%) of renters stayed in their home for 12 months or less before moving in 2022. That’s down from 32.2% in 2012.

“The uptick in tenure is beneficial for renters and their landlords,” said Redfin Senior Economist Sheharyar Bokhari. “While the fact that people are staying longer in their rentals may mean they can’t afford to buy a home in today’s market, staying put also means they’re saving some money that could eventually go toward a down payment if they do have a goal of homeownership. Staying in the same home means they’re likely to face smaller rent increases, and they’re saving money on moving costs and application fees. Landlords typically prefer long-term tenants because they don’t have to spend money on cleaning and marketing vacant units.”

There are a few main reasons renters are staying put in their homes longer than they used to:

  • Renters are priced out of homeownership. The median U.S. home-sale price has more than doubled since 2012, and it has risen more than 40% since 2019 alone, and mortgage rates are elevated near two-decade highs. That makes it difficult for renters to save for down payments and monthly mortgage payments, and encourages them to stay put.
  • Rental prices have risen, too. Asking rental prices have also soared, increasing more than 20% since 2019, discouraging people from moving from one rental to another.
  • Renting as a lifestyle has risen, too. The pandemic-driven rise in remote work encouraged some Americans to be renters rather than homeowners so they could easily relocate for jobs or lifestyle without being tied down to a home they own. Some renters also choose to invest their money in places other than real estate. That increases renter tenure because those are the people who may have otherwise moved out of a rental into a home they purchased.
  • One thing that hasn’t risen enough: supply of homes for sale. There are far fewer homes for sale in the U.S. than there were a decade ago. Even the renters who can afford to become homeowners—and want to—may not be able to find a home to buy.

Renters move less often than they did a decade ago, but they move much more often than homeowners. Just one in five (20.8%) renters nationwide moved in 2022, down from 28.9% in 2012. Just 7.6% of homeowners moved in 2022, up slightly from 6.4% in 2012.

Bokhari noted that it’s possible we could start to see renter tenure decline soon. There was an apartment-building boom in 2023, giving renters more options for places to move and cooling rental-price growth.

Young renters more likely to move often than older renters

Gen Z renters are much more likely than renters of other generations to move within one year, while baby boomers are much more likely to live in their rental for 10-plus years.

  • Gen Z: More than half (55.5%) of Gen Z renters stayed in their home for 12 months or less as of 2022, and another 40.6% stayed for one to four years. Just under 4% of Gen Z renters have lived in the same place for five-plus years.
  • Millennial: 28.8% have lived in their home for 12 months or less, and 50.7% have lived there for one to four years. Roughly 20% stayed for five-plus years.
  • Gen X: The lion’s share of Gen X renters (39.5%) stayed in their home between one and four years, while just 17.1% stayed for 12 months or less. Roughly 22% stay for 5 to 9 years, and another 22% stay for 10 years or longer.
  • Baby boomers: Roughly one-third (32.9%) of baby-boomer renters have lived in their home for 10-plus years, and another one-third (32.2%) have lived there for one to four years. Just over one in five (21.5%) have lived in their home for 5 to 9 years, and 13.3% have lived there for 12 months or less.

There are several reasons young renters move a lot. Many adult Gen Zers are in college or in the early stages of their career, life stages that often beget moves. They also have more flexibility because they’re less likely than millennials and Gen Xers to have children living at home. Additionally, many Gen Zers and millennials move out of rentals into the first home they purchase.

Metro-level highlights: Where renters stay in their homes longer

The 50 most populous U.S. metros are included in this section

  • Renters move most often in Austin, TX, where 38.2% of renters stayed put for 12 months or less in 2022. That’s the highest share of the 50 most populous U.S. metros. Next come Denver (34.4%) and Nashville, TN (34.4%).
  • Renters stay put longest in New York, where just 15.8% of renters moved in 12 months or less in 2022. Next come Riverside, CA (16.5%) and Los Angeles (17.5%). That’s partly because it’s expensive to buy a home or sign a new lease in those metros, discouraging renters from moving; staying put allows renters to stay in areas where there’s opportunity for jobs and desirable schools even if they cannot afford to buy a home.
  • Renters move less often than a decade ago in all but one of the metros in this analysis (San Jose, CA is the exception). Roughly one-quarter (24.8%) of Las Vegas renters stayed in their home for 12 months or less in 2022, down from 42.4% in 2012, the biggest decline. Next come Riverside, CA (16.5%, down from 32.8%), and Atlanta (25.8%, down from 37.8%).
  • Renters in San Jose, CA, San Francisco and Boston are just about as likely to move within a year as they were a decade ago. In San Jose, 30.3% of renters moved in 12 months or less in 2022, up slightly from 29.1% in 2012. In San Francisco, it’s 23.8%, down slightly from 24.6%. And in Boston, it’s 26.5%, down from 27.3%.

To view the full report, including charts, metro-level summaries and methodology, please visit:
https://www.redfin.com/news/renters-staying-put-longer

Posted On Friday, 31 May 2024 07:56 Written by

--  Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing the 30-year fixed-rate mortgage (FRM) averaged 7.03 percent.

“Following several weeks of decline, mortgage rates changed course this week,” said Sam Khater, Freddie Mac’s Chief Economist. “More hawkish commentary about inflation and tepid demand for longer-dated Treasury auctions caused market yields to rise across the board. This reality, as well as economic signals that have moved sideways over the last few weeks, have resulted in mortgage rates drifting higher as markets continue to dial back expectations of interest rate cuts.”

News Facts

  • The 30-year FRM averaged 7.03 percent as of May 30, 2024, up from last week when it averaged 6.94 percent. A year ago at this time, the 30-year FRM averaged 6.79 percent.
  • The 15-year FRM averaged 6.36 percent, up from last week when it averaged 6.24 percent. A year ago at this time, the 15-year FRM averaged 6.18 percent.

The PMMS® is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit. For more information, view our Frequently Asked Questions.

Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More: Website |

Posted On Friday, 31 May 2024 06:16 Written by
Posted On Friday, 31 May 2024 01:29 Written by
Posted On Thursday, 30 May 2024 10:08

More home sellers are cutting their asking price, suggesting sale-price growth could soften in the coming months. But this week, the median sale price rose to another record high, pricing out some buyers.

Nationwide, 6.4% of home sellers cut their asking price during the four weeks ending May 26, on average, the highest share since November 2022. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

The median asking price dropped roughly $3,000 to $416,623 in the last week, the first decline in six months. Additionally, for-sale supply is growing more stale: Age of inventory (the typical number of days active listings have been on the market) started rising year over year in May for the first time in eight months, hitting a median of 46 days. Together, those metrics suggest sale-price growth could soften in the coming months as persistently high mortgage rates turn off homebuyers. For now, the median-home sale price is up 4.3% year over year to another record high, though sale prices are a lagging indicator because they’re typically negotiated at least a month before a deal closes.

Buyers did get a modicum of relief on housing costs this week. The typical U.S. homebuyer’s monthly housing payment dropped to $2,812, its lowest level in six weeks. Payments are declining because even though sale prices remain at all-time highs, mortgage rates have come down from their peak: The weekly average mortgage rate is 6.94%, the first time it has dipped below 7% since early April. (It’s worth noting that the reprieve in rates may be short-lived; daily average rates started increasing this week after a string of disappointing treasury auctions.)

High costs are dampening demand. Pending sales are down 3.4% year over year, on par with declines over the last month, and mortgage-purchase applications are sitting near their lowest level in six months. Low inventory is another factor pushing down sales. Even though 7.8% more new listings hit the market than during the same period last year, listing growth has been losing momentum for the last few months, leaving buyers with fewer homes to choose from than there typically are in May.

“The market is slower than usual, but well-maintained properties listed for under a million dollars still get multiple offers,” said Christine Chang, a Redfin Premier agent in the Bay Area. “People who are buying right now are typically doing so because they’re having a baby or looking for a more family friendly home. My advice for those buyers is to be open-minded: Consider single-family homes that are a bit outdated but don’t need major renovations, and/or homes in lesser-known, non-trendy neighborhoods. That type of home tends to sit on the market longer, and buyers may be able to avoid competition and get a home for asking price instead of engaging in a bidding war. Buyers who can get by with less space should consider a condo; they’re relatively unpopular right now and many are going under asking price.”

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

7.34% (May 29)

Up 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

6.94% (week ending May 23)

Down from 5-month high of 7.22% 3 weeks earlier

Up from 6.57%

Freddie Mac

Mortgage-purchase applications (seasonally adjusted)

 

Declined 1% from a week earlier (as of week ending May 24)

Down 10%

Mortgage Bankers Association

Redfin Homebuyer Demand Index (seasonally adjusted)

 

Down 7% from a month earlier to lowest level in 3 months (as of week ending May 23)

Down 12%

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

Touring activity

 

Up 10% from the start of the year (as of May 27)

At this time last year, it was up 12% from the start of 2023

ShowingTime, a home touring technology company

Google searches for “home for sale”

 

Unchanged from a month earlier (as of May 28)

Down 14%

Google Trends

Key housing-market data

U.S. highlights: Four weeks ending May 26, 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 May 26, 2024

Year-over-year change

Notes

Median sale price

$390,613

4.3%

All-time high

Median asking price

$416,623

6%

 

Median monthly mortgage payment

$2,812 at a 6.94% mortgage rate

7.3%

$58 below all-time high set during the 4 weeks ending April 28

Pending sales

89,218

-3.4%

 

New listings

101,172

7.8%

 

Active listings

912,320

15.2%

Highest level since Dec. 2022

Months of supply

3.2

+0.5 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

44.7%

Down from 49%

 

Median days on market

32

+3 days

 

Share of homes sold above list price

31.8%

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

99.5%

-0.2 pts.

 

Metro-level highlights: Four weeks ending May 26, 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 (19.3%)

Detroit (16.4%)

Nassau County, NY (12.5%)

San Jose, CA (12.4%)

West Palm Beach, FL (12.4%)

Fort Worth, TX (-0.4%)

San Antonio, TX (-0.3%)

Decreased in 2 metros

Pending sales

San Jose, CA (13.7%)

San Francisco (7.2%)

Columbus, OH (6.5%)

San Diego (5.3%)

Anaheim, CA (4.2%)

Houston (-15.1%)

West Palm Beach, FL (-14.4%)

Atlanta (-14.1%)

Fort Lauderdale, FL (-12.5%)

Orlando (-11.5%)

Increased in 13 metros

New listings

San Jose, CA (34.5%)

Phoenix (24.7%)

San Diego (21%)

Oakland, CA (20.1%)

Montgomery County, PA (19.5%)

Chicago (-10%)

Atlanta (-9.4%)

Newark, NJ (-6.4%)

Detroit (-3.4%)

Warren, MI (-1.9%)

Decreased in 8 metros

To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-sellers-drop-asking-prices

Posted On Thursday, 30 May 2024 07:24 Written by

Pending home sales in April fell 7.7%, according to the National Association of Realtors®. All four U.S. regions registered month-over-month and year-over-year decreases.

The Pending Home Sales Index (PHSI)* – a forward-looking indicator of home sales based on contract signings – decreased to 72.3 in April. Year over year, pending transactions were down 7.4%. An index of 100 is equal to the level of contract activity in 2001.

“The impact of escalating interest rates throughout April dampened home buying, even with more inventory in the market,” said NAR Chief Economist Lawrence Yun. “But the Federal Reserve’s anticipated rate cut later this year should lead to better conditions, with improved affordability and more supply.”

Pending Home Sales Regional Breakdown
The Northeast PHSI fell 3.5% from last month to 62.9, a decline of 3.1% from April 2023. The Midwest index dropped 9.5% to 70.7 in April, down 8.7% from one year ago.

The South PHSI lowered 7.6% to 88.6 in April, dropping 8.2% from the prior year. The West index decreased 8.5% in April to 55.9, down 7.3% from April 2023.

“Home prices are hitting record highs, but the pace of gains should decelerate with more supply,” said Yun. “However, the prospect of measurable home price declines appears minimal. The few markets experiencing price declines will be viewed as second-chance opportunities for buyers to enter the market if those regions continue to add jobs.”

Posted On Thursday, 30 May 2024 07:04 Written by
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