The median U.S. home sale price hit a record high in May as demand continued to outpace supply, with the number of homes for sale roughly 25% below pre-pandemic levels

Home sales fell 1.7% month over month in May on a seasonally adjusted basis and dropped 2.9% from a year earlier, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. There have been just two months in the past decade with fewer home sales: October 2023, when mortgage rates jumped to a 23-year high, and May 2020, when the onset of the pandemic brought the housing market to a halt and home sales to a record low.

“Buyers today are facing many of the realities of a hot market even though few homes are changing hands,” said Redfin Senior Economist Elijah de la Campa. “Sales are sluggish because high homebuying costs are making both house hunters and prospective sellers skittish. And with so few homes for sale, buyers in some markets are getting into bidding wars, which is helping push home prices to record highs.”

Sales may pick up later this year if mortgage rates slowly tick down as expected.

May 2024 Highlights: United States

 

May 2024

Month-over-month change

Year-over-year change

Median sale price

$439,716

1.6%

5.1%

Homes sold, seasonally adjusted

407,959

-1.7%

-2.9%

New listings, seasonally adjusted

527,785

0.3%

8.8%

All homes for sale, seasonally adjusted (active listings)

1,634,420

0.4%

11.1%

Months of supply

2.3

-0.1

0.4

Median days on market

32

-3

0

Share of for-sale homes with a price drop

19.2%

2.4 ppts

6 ppts

Share of homes sold above final list price

35.0%

1.4 ppts

-2.4 ppts

Average sale-to-final-list-price ratio

99.9%

0.2 ppts

-0.1 ppts

Average 30-year fixed mortgage rate

7.06%

0.07 ppts

0.63 ppts

Note: Data is subject to revision

     

Home Prices Hit Another Record High in May, and Mortgage Rates Kept Climbing

The median home sale price rose 5.1% year over year in May to a record $439,716. The average 30-year-fixed mortgage rate hit 7.06%. That’s up from 6.99% one month earlier and 6.43% one year earlier, and is more than double the all-time low of 2.68% during the pandemic. Daily average mortgage rates did drop to their lowest level in about three months this week after the latest CPI report showed that inflation is continuing to cool.

Even though homes are selling for more than ever before, many sellers are still having to lower their list prices after putting their homes on the market—one silver lining for buyers.

Nearly One of Every Five Homes for Sale Faced a Price Cut

Nearly one in five (19.2%) homes for sale in May had a price cut, up from 13.2% a year earlier and just shy of the 21.7% record high set in October 2022.

Some sellers are reducing their prices because they listed their home for too much initially and it ended up sitting on the market. The typical home for sale in May spent 32 days on the market. While that’s comparable with a year earlier, it’s the highest level for any May since the start of the pandemic.

Price drops are particularly common in areas where housing supply has been rising quickly, like Florida and Texas. In these areas, individual home sellers have been facing strong competition from homebuilders.

The Housing Shortage Is Improving, But Remains Severe

New listings rose 0.3% month over month in May on a seasonally adjusted basis and climbed 8.8% from a year earlier. Still, they were roughly 20% below pre-pandemic (May 2019) levels. That’s largely because many homeowners don’t want to sell, as they feel “locked in” by the low mortgage rate they scored during the pandemic.

Active listings, or the total number of homes for sale, rose 0.4% month over month on a seasonally adjusted basis and jumped 11.1% from a year earlier—the largest annual gain since the start of 2023. Still, active listings were about 25% below pre-pandemic levels.

While new listings represent the number of homes that were listed for sale during a given month, active listings represent the total number of homes that were for sale during a given month. That means that the latter metric includes homes that aren’t selling. One reason active listings have risen so much is that in some areas, homes are lingering on the market and getting stale.

Active listings are also soaring along Florida’s southwest Gulf Coast. In North Port, they surged 51.1% year over year on an unadjusted basis—the largest increase in the nation. Next came Tampa (46%) and Cape Coral (45.1%). Those housing markets are cooling faster than anywhere else in the country amid a new-construction boom, intensifying natural disasters and soaring insurance costs, a separate Redfin report found.

Meanwhile, many of the markets that are holding up best and seeing price increases—like Rochester, NY—are relatively affordable and have near-record-low supply.

Metro-Level Highlights: May 2024

  • Prices: Median sale prices rose most from a year earlier in Anaheim, CA (17.6%) Cleveland (15.1%) and Nassau County, NY (14.2%). They fell most in Cape Coral, FL (-2.7%), Honolulu (-2.1%) and Austin, TX (-1.1%).
  • Price cuts: In Indianapolis, 48.1% of listings had a price drop—a higher share than any other metro Redfin analyzed. Next came Tampa, FL (45.2%) and Denver (44.8%). The lowest shares were in Newark, NJ (13.4%), Lake County, IL (15%) and Milwaukee (15.2%).
    Note: Three of the 10 metros with the highest shares of price drops are in Florida and three are in Texas.
  • New listings: New listings rose most in San Jose, CA (32.7%), Seattle (31.2%) and Denver (31.1%). They fell most in Atlanta (-7.7%), New Orleans (-4.4%) and Greensboro, NC (-4.3%).
  • Active listings: Active listings rose most in North Port, FL (51.1%), Tampa (46%) and Cape Coral (45.1%). They fell most in New Brunswick, NJ (-8.1%), Chicago (-7.3%) and Raleigh, NC (-5.5%).
  • Closed home sales: Home sales rose most in San Jose (16.6%), Minneapolis (11.7%) and San Francisco (10.5%). They fell most in Stockton, CA (-15.4%), Buffalo, NY (-15.3%) and San Antonio (-14.3%).
  • Sold above list price: In Rochester, NY, 77.1% of homes sold above their final list price, the highest share among the metros Redfin analyzed. Next came San Jose (76.1%) and Oakland, CA (68.4%). The shares were lowest in North Port (5.9%), West Palm Beach, FL (8.1%) and Cape Coral (8.6%).

To view the full report, including charts, please visit: https://www.redfin.com/news/home-sales-fall-to-near-record-low

Posted On Friday, 14 June 2024 05:48 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 6.95 percent.

“Mortgage rates continued to fall back this week as incoming data suggests the economy is cooling to a more sustainable level of growth,” said Sam Khater, Freddie Mac’s Chief Economist. “Top-line inflation numbers were flat but shelter inflation, which measures rent and homeownership costs, increased showing that housing affordability continues to be an ongoing impediment for buyers on the house hunt.”

News Facts

  • The 30-year FRM averaged 6.95 percent as of June 13, 2024, down from last week when it averaged 6.99 percent. A year ago at this time, the 30-year FRM averaged 6.69 percent.
  • The 15-year FRM averaged 6.17 percent, down from last week when it averaged 6.29 percent. A year ago at this time, the 15-year FRM averaged 6.10 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, 13 June 2024 12:41 Written by

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

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

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

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

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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