On a recent episode of CNBC’s Power Lunch, real estate reporter Diana Olick discusses the increased demand for housing in the suburbs from what she calls “pandemic induced urban flight” and the impact it’s having on home prices across the nation. Interestingly, she points out that in Denver, Colorado an influx of new buyers from across the country has pushed up new sales 80% year over year. Click here to watch on CNBC.com.
Author: Brad Beckett
Brad Beckett
Director of Education & Outreach, National Real Estate Investors Association
According to the latest S&P CoreLogic Case-Shiller Indices, covering all nine U.S. census divisions, the rate of home price increases reported a 4.3% annual gain in June. Their 10-City Composite annual increase came in at 2.8% and the 20-City Composite posted a 3.5% year-over-year gain. The S&P CoreLogic Case-Shiller Home Price Indices are one of the leading measures of U.S. residential real estate prices, tracking changes in the value of residential real estate both nationally as well as in 20 metropolitan regions. “Housing prices were stable in June,” says Craig J. Lazzara, Managing Director and Global Head of Index Investment…
According to the Mortgage Banker Association’s latest National Delinquency Survey, mortgage delinquencies spiked 386 basis points from Q1 to Q2, coming in at a seasonally adjusted rate of 8.22% – which they say is the highest overall delinquency rate in nine years. The MBA says that the pandemic’s effects on some homeowners’ ability to make mortgage payments could not be more apparent. Indeed… Click here to read more at the Mortgage Bankers Association.
Where are the hottest real estate markets in this crazy year of 2020? Realtor.com tells us to follow the zip codes as they recently released their annual market report. We have seen a lot of positive news about how real estate is leading the economic recovery as we (hopefully) emerge from the pandemic. To come up with their hot markets list, they analyzed over 16k zip codes based on time on the market and searches by zip code on realtor.com. They point out that pent up demand is driving buyers to these markets. Indeed…. “The hottest zip codes have…
The Tax Foundation says property taxes are an important tool to help finance state & local government. Interestingly, they point out that property taxes accounted for 72.1% of local tax collections nationwide and 31.9% of total U.S. state and local tax collections – which they say is a greater portion than any other source of tax revenue. It is also worth noting that the median property taxes vary widely among the U.S. 50 states. Indeed… “Because property taxes are assessed as a percentage of home values, it follows that higher property taxes are paid in places with higher housing prices.”…
We have been hearing about this from several sources and now Redfin says they have concrete evidence that rural and suburban neighborhoods are becoming more desirable to homebuyers than cities. According to their data, at the beginning of August, home prices in rural areas were up 11.3% (year-over-year) while homes in urban areas only experienced a 6.7% increase. Redfin said this trend of higher price growth in the rural areas has been happening since April. In addition, they say there’s simply more demand (and less supply) for rural and suburban neighborhoods than cities as the pandemic influences homebuyer preferences. Indeed……
The National Association of Realtors is reporting that existing home sales jumped 24.7% in July to a seasonally-adjusted annual rate of 5.86 million (8.7% higher than one year ago). Total housing inventory at the end of July was 1.5 million units, down 2.6% from June and down 21.1% from one year ago. Total unsold inventory was at a 3.1-month supply at the current sales pace with properties remaining on the market for around 22 days. The median existing-home price for all housing types was $304,100, up 8.5% from July, 2019. “The housing market is well past the recovery phase and…
Just last month we posted about mortgage interest rates hitting an all-time low. Today’s infographic from Keeping Current Matters puts interest rates into perspective over the last 50 years. They remind us that “it helps to see the dollars and cents you’ll save when you purchase a home while mortgage rates are low.” Indeed…It’s almost hard to fathom buying a home at 12%. Stay safe and have a Happy Friday!!! Hat tip to Keeping Current Matters.
What are the top metros in the country where apartments are being built? According to RentCafé, the Dallas-Fort Worth metroplex is set to complete nearly 20k apartments by the end of the year – topping their chart for 3 years in a row. While they report that overall apartment construction is down 12% from 2019, they point out that nearly 283k units will hit the market nationwide this year. Indeed… “With the Covid-19 pandemic further complicating an already visible slowdown in apartment construction since its 2018 peak, new completions across the country are starting to mirror the downward trend following…
Local Market Monitor, a National REIA preferred vendor, recently released their monthly National Economic Outlook where they share their thoughts on developments taking place in the U.S. economy. National Economic Outlook By Ingo Winzer August 18, 2020 – As we get more actual data about the economy it’s possible to see where real estate markets may be headed. It now looks to me that we’re in a holding pattern that can easily persist for the next year. The main consequences of this pattern are that home prices will hold steady while demand for rentals increases. That’s a delicate balancing act…
