Daily Real Estate News

Rising Rental Costs Squeeze College Grads

NAR Daily News Magazine - 16 hours 5 min ago

The median apartment rent has jumped more than 16%, and college grads are struggling to afford the rising costs.

The Most Popular Spaces to Remodel and Their Costs

NAR Daily News Magazine - 16 hours 5 min ago

Homeowners are increasing their home improvement budgets to enhance the following areas around a home.

Building Materials Press Even Higher

NAR Daily News Magazine - 16 hours 5 min ago

Material costs for building a new home are up 19% over a year ago, continuing to pressure builders’ and new-home buyers’ budgets.

Top 10 Places With Highest Share of ‘Equity Rich’ Homes

NAR Daily News Magazine - 16 hours 5 min ago

Find out where buyers are striking it big in real estate.

The Case for Wildfire Risk Ratings at Realtor.com®

NAR Daily News Magazine - 16 hours 5 min ago

Giving buyers a window into fire risk adds transparency and enables owners to plan with fire safety in mind.

Rent Is at an All-Time High, but Renters Still Have Opportunities to Save

RisMedia Consumer News - May 13, 2022 - 3:02pm

The U.S. rental market is as competitive as it’s been in decades, and renters are facing a variety of challenges. High demand is keeping vacancy rates near all-time lows and pushing rents up almost as quickly as home prices.

Recent reports show rent prices shot up nearly 17% in the past year, with the typical U.S. rent now at $1,904 per month. Amid the current red hot rental market, Zillow is sharing the following four tips to help renters save, and even gain a competitive edge.

  1. Set a budget and understand rental market trends

Most renters (81%) say finding a rental within their initial budget is the most important factor in choosing a home, according to a recent Zillow Consumer Housing Trends Report. Before starting their search, renters should know what they can afford and arm themselves with information to feel confident they are getting a fair deal.

  1. Search smarter with tech

Next, renters should nail down their must-haves as well as the features on which they are willing to compromise. Think about price, home type, bed and bath preferences, specific pet requirements, in-unit laundry and several other amenity options.

If possible, have them review floorplans to narrow down the properties they want to see in person, or help ease their hesitation if applying for a place sight unseen. These features are increasingly important to renters. Forty-three percent of renters surveyed in 2021 agreed they wasted time during their home search visiting properties they would have skipped had they understood the floor plan before visiting the home.

  1. Save time and money with a single application

Many renters live in highly competitive markets and are on tight timelines—of those renters surveyed who had moved from a previous rental, more than half said they knew less than three months beforehand that they would be moving out. In 2021, 61% of all renters applied for two or more properties. Black and Latinx renters typically submit three applications and are almost twice as likely as white renters to submit five or more applications during their search. With a median rental application fee of $50, the cost and time spent filling out applications can add up quickly.

To learn more about some tools available to help renters with these challenges and more, visit Zillow.com.

The post Rent Is at an All-Time High, but Renters Still Have Opportunities to Save appeared first on RISMedia.

Multifamily Rents Record Another Significant Jump

RisMedia Consumer News - May 13, 2022 - 3:01pm

The average U.S. asking rent rose $15 in April to an all-time record $1,659, with year-over-year growth moderating by 50 basis points but remaining high at 14.3%, according to the latest Yardi® Matrix Multifamily Report released this week.

“Although there are a few weak spots, multifamily demand and rent growth remain incredibly strong throughout the country,” state Matrix analysts in the new report. “Of our top 30 metros, rent growth was up at least 8.8% over the last year in all but one.”

Rent growth was also positive in all 30 metros over the last one-month, three-month and 12-month periods. Markets in Florida and the Southwest maintained the top spots in year-over-year rankings, but more recently Boston, New York, San Jose and Philadelphia have been the top performers.

Additionally, the average single-family asking rent in the U.S. reached an all-time high of $2,018 in last month. Year-over-year growth for single-family homes dropped 110 basis points to 13.2%.

Deceleration is anticipated any month now, due to economic contraction, surging inflation, interest rate hikes and ongoing supply-chain issues.

View the full report here.

The post Multifamily Rents Record Another Significant Jump appeared first on RISMedia.

Commercial/Multifamily Borrowing Jumped 72% in the First Quarter of 2022

RisMedia Consumer News - May 13, 2022 - 3:00pm

Commercial and multifamily mortgage loan originations increased 72% in the first quarter of 2022 compared to the same period last year, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.

In line with seasonality trends, originations during the first three months of 2022 year were 39% lower than the fourth quarter of 2021, the report stated.

“The strong momentum in commercial and multifamily borrowing and lending at the end of 2021 carried into the first quarter,” said Jamie Woodwell, MBA’s vice president of Commercial Real Estate Research. “The continued growth in lending activity is the result of the ongoing strong demand for certain property types like industrial and multifamily, as well as renewed interest in other property types that saw more dramatic declines during the early stages of the pandemic, such as hotel and retail.”

Woodwell continued, “It’s likely that the rise in interest rates will take some wind out of the sails of borrowing in upcoming quarters, but strong market fundamentals, property values and investor interest should continue to support the market.”

First-quarter 2022 originations increased 72% compared to first-quarter 2021

Compared to a year earlier, a rise in originations for hotel, industrial, and retail properties led the overall increase in commercial/multifamily lending volumes. By property type, hotels increased by 359%, industrial increased by 145%, retail increased by 88%, health care properties increased by 81%, multifamily increased by 57%, and office increased 30%.

Among investor types, the dollar volume of loans originated for depositories increased by 194 %year-over-year. Life insurance company portfolios increased 81%, investor-driven lenders increased 77%, Commercial Mortgage-Backed Securities (CMBS) increased 56%, and Government Sponsored Enterprises (GSEs – Fannie Mae and Freddie Mac) increased 1%.

First-quarter 2022 originations down 39% from fourth-quarter 2021

As is typical in the first quarter, originations decreased in comparison to the prior year’s fourth quarter, with total activity falling 39%, according to the report. Among property types, declines were seen in office (48%), multifamily (41%), hotel (38%), retail (32%), and industrial (29%). Health care properties increased 17%.

Among investor types, the dollar volume of loans for CMBS decreased 61%, loans for depositories decreased 41%, originations for GSEs decreased 39%, investor-driven lenders decreased 30%, and life insurance company loans decreased 23 percent.

To view the report, click here.

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52% of Homes Sold Above List Price in April

NAR Daily News Magazine - May 13, 2022 - 1:00am

Homes in April sold for an average of $13,655 above the list price. Find out where homes fetched the highest premiums.

Buyers Have Doubled Their Down Payments

NAR Daily News Magazine - May 13, 2022 - 1:00am

With rising home prices, home buyers are bringing higher down payments to make their offers more attractive to sellers.

Cities With the Most Older, Newer Homes

NAR Daily News Magazine - May 13, 2022 - 1:00am

Buyers may have a preference for an older or newer home, but the market they live in may dictate what they’ll likely to find.

Realogy Rebrands: Why It Wants to Be ‘Anywhere’

NAR Daily News Magazine - May 13, 2022 - 1:00am

“The Anywhere name and identity serve as both our aspiration and commitment to changing the transaction experience for consumers,” company execs say about the name change.

Buyers Resilient Against Rising Rates

NAR Daily News Magazine - May 13, 2022 - 1:00am

The monthly mortgage payment has increased by about $520 since the first week of January.

Home Builders Warn of Significant Affordability Declines

RisMedia Consumer News - May 12, 2022 - 3:00pm

Housing affordability posted a modest gain for average conditions in the first quarter of 2022, as a strong jump in national median income helped to offset a gradual rise in interest rates. However, home builders warn of current deteriorating conditions as a sharp jump in mortgage rates in March and April coupled with ongoing building material supply chain disruptions, labor shortages and high inflation drive up housing costs.

According to the National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index (HOI), 56.9% of new and existing homes sold between the beginning of January and end of March were affordable to families earning the U.S. median income of $90,000. While this is up from the 54.2% of homes sold in the fourth quarter of 2021, current market indicators point to worsening affordability conditions.

The first quarter HOI was calculated based on the following key factors:

  • An average quarterly interest rate of 3.86%, up 70 basis points from the previous quarter
  • A 2022 median income of $90,000, up from last year’s $79,900
  • A national median home price of $365,000, up $5,000 from the fourth quarter of 2021 and a whopping $45,000 from the first quarter of 2021

Affordability dips below 50% based on recent mortgage rates 

Keeping all other factors the same and calculating nationwide affordability conditions based on end of April mortgage rates of 5.11% instead of the first quarter average of 3.86%, the HOI would have fallen from 54.2 in the fourth quarter of 2021 to 48.7 today, NAHB reports.

This means that based on where the housing market stands today, just 48.7% of homes sold in the first quarter were affordable to median-income families, the lowest affordability level recorded on the HOI since the beginning of the revised series in the first quarter of 2012.

“The first quarter reading is a backward gauge, as surging interest rates, ongoing building material supply chain constraints and labor shortages continue to raise construction costs and put upward pressure on home prices,” said NAHB Chairman Jerry Konter, a home builder and developer from Savannah, Georgia.

Every quarter-point hike in mortgage rates means that 1.3 million households are priced out of the market for a nationwide median priced home, NAHB says. And with the Federal Reserve moving aggressively to raise short-term interest rates and reduce its holding of mortgage-backed securities to combat inflation that is running at a 40-year high, mortgage rates are expected to rise even further.

“Looking at current market conditions, affordability woes continue to mount as rising interest rates and home building material costs that are up 20% year-over-year are causing housing costs to rise much faster than wages,” said NAHB Chief Economist Robert Dietz. “The HOI falling below 50 using these real-time estimates is an indication of significant housing affordability burdens, particularly for frustrated, prospective first-time buyers. The best way to ease growing affordability challenges is for policymakers to address ongoing supply chain disruptions that will allow builders to construct more affordable homes.”

The most and least affordable markets in the first quarter

Lansing-East Lansing, Michigan, was the nation’s most affordable major housing market, defined as a metro with a population of at least 500,000. There, 92.3% of all new and existing homes sold in the first quarter were affordable to families earning the area’s median income of $89,500.

Top five affordable major housing markets:

  1. Lansing-East Lansing, Michigan
  2. Indianapolis-Carmel-Anderson, Indiana
  3. ScrantonWilkes-Barre, Pennsylvania
  4. Rochester, New York
  5. Dayton-Kettering, Ohio

Meanwhile, Wheeling, West Virginia-Ohio, was rated the nation’s most affordable small market, with 97.3% of homes sold in the first quarter being affordable to families earning the median income of $75,400.

Top five affordable small housing markets:

  1. Wheeling, West Virginia-Ohio
  2. Cumberland, Maryland- West Virginia
  3. Elmira, New York
  4. Utica-Rome, New York – Davenport-Moline-Rock Island, Iowa-Illinois

For the sixth straight quarter, Los Angeles-Long Beach-Glendale, California, remained the nation’s least affordable major housing market. There, just 8.3% of the homes sold during the first quarter were affordable to families earning the area’s median income of $90,100.

Top five least affordable major housing markets—all located in California:

  1. Los Angeles-Long Beach-Glendale, California
  2. Anaheim-Santa Ana-Irvine, California
  3. San Francisco-San Mateo-Redwood City, California
  4. San Diego-Chula Vista-Carlsbad, California
  5. Stockton, California

The top five least affordable small housing markets were also in the Golden State. At the very bottom of the affordability chart was Salinas, California, where 9.2% of all new and existing homes sold in the first quarter were affordable to families earning the area’s median income of $90,100.

Top five least affordable small housing markets—all located in California:

  1. Salinas, California
  2. Santa Maria-Santa Barbara, California
  3. San Luis Obispo-Paso Robles, California
  4. Napa-Santa Cruz-Watsonville, California

Visit nahb.org/hoi for tables, historic data and details.

The post Home Builders Warn of Significant Affordability Declines appeared first on RISMedia.

New Google Map Feature Offers ‘Immersive View’ of Streets

NAR Daily News Magazine - May 12, 2022 - 1:00am

A new feature rolling out may help house hunters get an aerial view of the surrounding area before they visit.

30 Percent of Americans Cite Climate Change as Motivation to Move 

NAR Daily News Magazine - May 12, 2022 - 1:00am

Adults ages 26 to 41 and over 77 are the most likely to move because of climate change, a new study finds.

ARM Demand Hits 14-Year High

NAR Daily News Magazine - May 12, 2022 - 1:00am

The rapid rise in mortgage rates is prompting more buyers to seek out adjustable-rate mortgages for lower initial costs.

Nearly Half of US Homeowners Considered ‘Equity Rich’

NAR Daily News Magazine - May 12, 2022 - 1:00am

Record levels of home equity are providing financial security to millions of households.

Shame Brews for Homes That Linger on Market

NAR Daily News Magazine - May 12, 2022 - 1:00am

Some home sellers are getting their egos bruised when their home doesn’t sell right away or for above asking price.

Mortgage Credit Availability Decreased in April

RisMedia Consumer News - May 11, 2022 - 5:02am

Mortgage credit availability decreased in April according to the Mortgage Credit Availability Index (MCAI), a report from the Mortgage Bankers Association (MBA) that analyzes data from ICE Mortgage Technology.

Key stats:

  • The MCAI fell by 3.2% to 121.1 in April. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit. The index was benchmarked to 100 in March 2012.
  • The Conventional MCAI increased 0.7%, while the Government MCAI decreased by 6.5%. Of the component indices of the Conventional MCAI, the Jumbo MCAI increased by 0.3%, and the Conforming MCAI rose by 1.2%.

What does it mean?

“Mortgage credit availability fell for the second month in a row, as lenders reacted to the jump in mortgage rates over the past two months,” said Joel Kan, MBA’s associate vice president of Economic and Industry Forecasting. “With the rate/term refinance business drying up, lenders have reduced the availability of government streamline refinancing programs, which are no longer as relevant of an option for many borrowers. The conventional index slightly increased, as lenders added more ARM programs to help borrowers overcome higher rates and home prices. The ARM share in MBA’s Weekly Applications Survey has also increased this year, but it is still low when compared to the mid-2000s. Furthermore, credit availability is much tighter than it was then, both in terms of credit requirements and the types of loans offered.”

Added Kan, “Jumbo lenders are somewhat loosening credit criteria, and jumbo rates have increased less than conforming rates this year, offering more opportunities for jumbo borrowers looking to purchase a home.”

The post Mortgage Credit Availability Decreased in April appeared first on RISMedia.

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