Today's Headlines - Realty Times

There are more homes for sale as spring approaches, and house hunters are hitting the pavement. Home touring activity is rising, and mortgage-purchase applications are up 11% this week.

New listings rose 13% from a year earlier nationwide during the four weeks ending March 3, the biggest increase in nearly three years, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

The boost in new listings helped bring the total number of homes for sale up 1.7%. Following eight months of declines, February is the first month the number of homes for sale has increased on an annual basis.

This week’s pricing data also brings a few glimmers of hope for house hunters. Asking prices of new listings posted their smallest increase in roughly two months; additionally, 5.5% of home sellers dropped their asking price, on average, the highest share of any February since at least 2015. High mortgage rates pushed the median monthly housing payment to $2,694 this week, just $23 shy of the all-time high. But final sale prices, which rose 5.3% year over year, one of the biggest increases in a year and a half, should start declining soon as price growth for new listings loses some momentum.

House hunters are looking at homes and applying for mortgages as we approach spring. Touring activity is up 23% from the start of the year, compared to a 14% increase during the same period last year, and mortgage-purchase applications are up 11% week over week. That early-stage buying activity hasn’t yet translated to a boost in sales, with pending sales down 6% year over year.

“There have been two major obstacles for homebuyers over the last year: Low inventory and high housing costs,” said Redfin Economic Research Lead Chen Zhao. “Now, the first barrier is starting to come down as more supply comes on the market. Housing costs are still high, but they’re likely to come down a bit as mortgage rates gradually decline through the year and price growth loses some steam. Buyers who can afford today’s mortgage rates may have better luck finding a home now than they have in the past several months, and they also may be less likely to face competition because inventory is improving.”

For more of Redfin economists’ takes on the housing market, including how current financial events are impacting mortgage rates, please visit our “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

6.97% (March 6)

Down from 7.15% a week earlier

Essentially flat

Mortgage News Daily

Weekly average 30-year fixed mortgage rate

6.94% (week ending Feb. 29)

Up from 6.9% a week earlier; 4th straight week of increases

Up from 6.65%

Freddie Mac

Mortgage-purchase applications (seasonally adjusted)

 

Up 11% from a week earlier (as of week ending March 1)

Down 8%

Mortgage Bankers Association

Redfin Homebuyer Demand Index (seasonally adjusted)

 

Up 4% from a month earlier (as of week ending March 3)

Down 7%

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

Google searches for “home for sale”

 

Up 4% from a month earlier (as of March 2)

Down 11%

Google Trends

Touring activity

 

Up 23% from the start of the year (as of March 1)

At this time last year, it was up 14% from the start of 2023

ShowingTime, a home touring technology company

Key housing-market data

U.S. highlights: Four weeks ending March 3, 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 March 3, 2024

Year-over-year change

Notes

Median sale price

$368,588

5.3%

 

Median asking price

$399,223

5.1%

Smallest increase since 4 weeks ending Jan. 14

Median monthly mortgage payment

$2,694 at a 6.94% mortgage rate

6.9%

Down just $23 from all-time high set in October 2023

Pending sales

77,925

-6.4%

 

New listings

81,971

12.8%

Biggest increase since June 2021 (there was also a 12.8% increase during the prior 4-week period)

Active listings

773,048

1.7%

Largest increase since the four weeks ending June 4, 2023. Based on revised data, active listings began increasing for the first time since June during the 4 weeks ending Feb. 11.

Months of supply

3.7 months

+0.3 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

39.1%

Up from 37%

 

Median days on market

47

-2 days

 

Share of homes sold above list price

24.3%

Up from 23%

 

Share of homes with a price drop

5.5%

+1.3 pts.

 

Average sale-to-list price ratio

98.5%

+0.4 pts.

 

Metro-level highlights: Four weeks ending March 3, 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

Newark, NJ (14.7%)

Montgomery County, PA (14.6%)

Anaheim, CA (14%)

Fort Lauderdale, FL (13.9%)

New Brunswick, NJ (13.8%)

San Antonio, TX (-3.2%)

Declined in just 1 metro

Pending sales

Cincinnati (9.2%)

Milwaukee (6%)

Pittsburgh (5%)

Minneapolis (5%)

Austin, TX (4.6%)

San Francisco (2.8%)

Seattle (0.7%)

Cleveland (0.2%)

San Antonio, TX (-23.8%)

Warren, MI (-15.7%)

New Brunswick, NJ (-15.6%)

Atlanta (-15.1%)

Nassau County, NY (-14.1%)

Increased in 8 metros

New listings

Fort Worth, TX (27%)

Fort Lauderdale, FL (25.4%)

Houston (24.4%)

Jacksonville, FL (24.1%)

Miami (24.1%)

Atlanta (-5.9%)

Newark, NJ (-2.1%)

Chicago (-0.4%)

Declined in 3 metros

To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-supply-increases-first-time-eight-months

Posted On Sunday, 10 March 2024 07:23 Written by
Posted On Saturday, 09 March 2024 08:44 Written by
Posted On Thursday, 14 March 2024 00:00 Written by

The National Association of Realtors® thanked President Biden on Thursday for raising awareness of the affordable housing crisis during his State of the Union address.

The following is a statement from 2024 NAR President Kevin Sears:

“The lack of affordable housing supply is hurting the middle class and depriving first-generation and first-time homebuyers of the financial security that homeownership and the American Dream provide.

NAR first sounded the alarm on this issue with original research showing a nationwide shortage of 5.5 million affordable housing units. We commend President Biden’s commitment to an all-of-government approach to solve this problem. NAR has proposed and advocated for many of these proposals, which together would make serious headway toward fixing this crisis. 

Tax incentives can help close the affordable housing gap, and we are especially grateful for the President’s willingness to explore new tax measures. NAR also supports an all-of-the-above approach to this crisis--from tax incentives to zoning reforms to expanded financing. 

NAR shares concerns of other housing industry groups that other Administration measures, especially in the area of rental housing, run the risk of reducing the supply of affordable rental housing if onerous regulations drive small property owners from the market and discourage future investment. The Administration’s increasing focus on housing production, however, signals a positive turn, as the housing shortage is the root of our affordability crisis. 

NAR http://www.flyin.realtor/">compiled and endorsed a suite of policy and legislative proposals to help increase housing supply, including support for the More Homes on the Market Act and the Neighborhood Homes Investment Act, among others.

Our 1.5 million members stand ready to assist the President and Congress in any way possible to bring this relief to the American people.”

Read NAR’s full policy proposals to address housing supply at FlyIn.Realtor.

FlyIn.Realtor.

  

 

Posted On Friday, 08 March 2024 15:24 Written by
Posted On Friday, 08 March 2024 10:51
Posted On Friday, 08 March 2024 10:09

When you talk options, be sure your clients know the true cost of their choices. I have had a number of conversations recently where my clients have won deals because they put the client in a position to succeed by sharing the true cost of their choices. We spoke a few months ago as we approached the end of the year and I suggested you drive the conversation around getting into a home prior to the beginning of the year, and the increase in demand that often creates. Some shared, others didn’t. Those that did are seeing their clients in homes that they secured at prices that are significantly lower than they would be right now, as well as the cost of that home a few more months from now. It’s simple, supply/demand is in favor of the seller. When sellers are in control, the cost to buy is higher and the competition is greater. As we approach the spring market, the demand will only grow higher, and so will prices. If we just use 5% appreciation rates, a $300K home costs $1,250 more in a month from now. A $400K house costs almost $1,700 more each month. How much has waiting cost someone that chose to wait from November until now? $5,000? $10,000? More?

The same case can be made for looking at the choices people have made when it comes to their outstanding debts. The largest overlook people make is the cost of that car they just had to buy! Maybe it’s the cost of two cars? But does the client realize the true cost of that choice? Do they know that at a 7% interest rate that every $100 in car payment reduces the amount of mortgage you can qualify for by more than $15,000? So, when we look at $500, $600, $700 a month or more in car payments, is that choice worth $75,000, $90,000, or over $100,000 in mortgage value? The same holds true for boats, RV’s, campers, credit cards, and other installment debt. Knowing the true cost can be life changing. Providing that information allows your client to understand their choices and how one choice can impact another. It also shows that as a true professional, you are sharing information that allows your client to make informed choices.

While people might not always make the best choices, they tend to make better choices when they are aware of all their options and how those choices impact other opportunities! As always, if you have questions or comments, it’sThis email address is being protected from spambots. You need JavaScript enabled to view it.

Posted On Monday, 11 March 2024 00:00 Written by
Posted On Thursday, 07 March 2024 12:46
Posted On Thursday, 07 March 2024 11:23
Posted On Thursday, 07 March 2024 11:04
Posted On Thursday, 07 March 2024 10:09

Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing the 30-year fixed-rate mortgage (FRM) averaged 6.88 percent.

“Evidence that purchase demand remains sensitive to interest rate changes was on display this week, as applications rose for the first time in six weeks in response to lower rates,” said Sam Khater, Freddie Mac’s Chief Economist. “Mortgage rates continue to be one of the biggest hurdles for potential homebuyers looking to enter the market. It’s important to remember that rates can vary widely between mortgage lenders so shopping around is essential.”

News Facts

  • The 30-year FRM averaged 6.88 percent as of March 7, 2024, down from last week when it averaged 6.94 percent. A year ago at this time, the 30-year FRM averaged 6.73 percent.
  • The 15-year FRM averaged 6.22 percent, down from last week when it averaged 6.26 percent. A year ago at this time, the 15-year FRM averaged 5.95 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 Thursday, 07 March 2024 09:02 Written by
Posted On Wednesday, 06 March 2024 10:30
Posted On Wednesday, 06 March 2024 10:24
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