2024 – Page 52

ServiceLink survey reveals Gen Z and millennials are ready to make their move

by admin
Comment Off
749 views

The 2024 ServiceLink State of Homebuying Report highlights generational preferences and trends from today’s homebuyers Gen Z and millennials are optimistic, eager and ready to buy a home. Relatively high mortgage rates and lower income levels aren’t stopping their plans to become homeowners in 2024. A new report released from ServiceLink, the nation’s premier provider of tech-enabled mortgage services, analyzes generational trends among today’s homebuyers, revealing their sentiment about the current housing market and their intentions to purchase, refinance and leverage home equity this year. Now in its fourth year, the 2024 ServiceLink State of Homebuying Report (SOHBR) features insights from homeowners who either purchased a home or tried to purchase a home within the past four years and focuses on yearly trends that provide valuable insights for lenders, servicers, investors and buyers alike. “This is an interesting and pivotal moment in the housing and mortgage industries as the younger generations are not only determined to buy but are seemingly undeterred by the higher price tags and interest rates,” said Dave Steinmetz, president of origination services, ServiceLink. “Our study suggests that Gen Z and millennials are poised to impact the market in several ways including purchase, refi and home equity, which is an opportunity for lenders to educate and usher these younger buyers through the process.” Key findings of the report include: Eagerness to buy: Younger generations plan to purchase a home in 2024 Tolerance for higher rates: There is a strong correlation between generations and the highest interest rate they would accept for a new 30-year mortgage Reasons to refinance: Many homeowners are looking to reduce their current rate Equity is rising: But fewer people plan to tap into it this year Auction is having its moment: Gen Z and millennials are interested in this alternative route to homeownership Market complexities: Some ‘would be’ homebuyers abandoned the process in the last year, but plan to try again Mortgage technology: Popular among all generations Read the full report here. CONTACT: Stephanie Hacke, 412-377-6629, Stephanie.hacke@svclnk.com

by admin
Comment Off
273 views

Highest Potential SFR Returns around Vero Beach, St. Louis, Brownsville, Rochester and Augusta; Rental Margins Increasing in About Two-thirds of Nation ATTOM, a leading curator of land, property, and real estate data, released its Q1 2024 Single-Family Rental Market report, which ranks the best U.S. markets for buying single-family rental properties in 2024. The report analyzed single-family rental returns in 341 U.S. counties with a population of at least 100,000 and sufficient rental and home price data. The analysis for this report incorporated median rents and median home prices collected from ATTOM’s nationwide property database, as well as publicly recorded sales deed data licensed by ATTOM. View interactive map displaying SFR returns in all 341 counties analyzed The report shows that the average annual three-bedroom gross rental yield (annualized gross rent income divided by median purchase price) among the 341 counties analyzed is projected to be 7.55 percent in 2024. That is up slightly from an average of 7.39 percent in those same markets a year ago, marking the second year of rising projections after three years of declines. Investment returns for landlords continue to increase as rents are going up slightly faster than home prices across a majority of the country. From 2023 to 2024, median three-bedroom rents rose more than median single-family home prices in 216, or 63 percent, of the markets analyzed. The gaps were small – usually less than one percentage point – but enough to push rental yields upward. That has happened amid a combination of market forces spurring demand for rentals. They include a historically tight supply of homes for sale and home-price increases that have slowed but not enough to make buying widely affordable for average wage earners. “The U.S. home sales market cooled off a good bit last year, with some of the weakest gains over the past decade. But that wasn’t enough to make home prices affordable for most workers, which likely fed enough demand to push up rents and yields for investors who lease out single-family properties,” said Rob Barber, CEO at ATTOM. “The fact that so few homes are available for sale in many markets clearly further helped increase rental demand for landlords and boost their bottom lines.” Top rental returns in Indian River, St. Lous, Cameron, Monroe and Richmond counties, as well as other parts of Midwest, Northeast and South Counties with the highest potential annual gross rental yields on three-bedroom properties for 2024 are Indian River County, FL, in the Sebastian-Vero Beach metro area (14.6 percent); St. Lous City, MO, (14.6 percent); Cameron County, TX, in the Brownsville-Harlingen metro area (13.2 percent); Monroe County, NY, in the Rochester metro area (12.8 percent) and Richmond County, GA, in the Augusta-Richmond County metro area (12.7 percent). The highest potential annual three-bedroom gross rental yields in 2024 among counties with a population of at least 1 million are in Wayne County (Detroit), MI (12 percent); Allegheny County (Pittsburgh), PA (11.2 percent); Cuyahoga County (Cleveland), OH (10.2 percent); Cook County (Chicago), IL (10.1 percent) and Riverside County, CA (9.7 percent). Rental returns increase across majority of nation Potential annual three-bedroom gross rental yields for 2024 have increased compared to 2023 in 216 of the 341 counties analyzed in the report (63 percent). They are led by Taylor County (Abilene), TX (yield up from 7.6 percent in 2023 to 11.3 percent in 2024); Jefferson County (Birmingham), AL (up from 8.5 percent to 12.1 percent); Richmond County (Augusta), GA (up from 9.6 percent to 12.7 percent); Midland County, TX (up from 8.7 percent to 11.7 percent) and Aiken County, SC (outside Augusta, GA) (up from 8.4 percent to 11.1 percent). The biggest increases in potential annual gross rental yields from 2023 to 2024 among counties with a population of at least 1 million are in Riverside County, CA (yield up from 7.4 percent in 2023 to 9.7 percent in 2024); Los Angeles County, CA (up from 5.6 percent to 7.1 percent); Fulton County (Atlanta), GA (up from 6 percent to 6.8 percent); Montgomery County, MD (outside Washington, DC) (up from 4.4 percent to 5.2 percent) and Dallas County, TX (up from 7.4 percent to 8.1 percent). Metro areas with a population of 1 million of more showing decreases in potential gross three-bedroom rental yields from 2023 to 2024 are led by Kings County, Brooklyn, NY (yield down from 8 percent to 4.4 percent); Cook County (Chicago), IL (down from 11 percent to 10.1 percent); Wayne County (Detroit), MI (down from 12.8 percent to 12 percent); Miami-Dade County, FL (down from 7.9 percent to 7.3 percent) and Nassau County, NY (outside New York City) (down from 7.1 percent to 6.8 percent). Lowest rental returns in San Francisco, San Jose, Nashville and Washington, D.C., metro areas, along with other western markets Counties with the lowest potential annual gross returns for 2024 on three-bedroom rentals are Santa Clara County, CA, in the San Jose metro area (3 percent); San Mateo County, CA, in the San Francisco metro area (3.4 percent); Arlington County, VA, in the Washington, DC, metro area (3.8 percent); Williamson County, TN, in the Nashville metro area (3.9 percent) and San Francisco County, CA (3.9 percent). Aside from Santa Clara County, the lowest potential annual gross three-bedroom rental yields in 2024 among counties with a population of at least 1 million are in Honolulu County, HI (4.1 percent); Fairfax County, VA (outside Washington, D.C.) (4.2 percent); Kings County (Brooklyn), NY (4.4 percent) and Alameda County (Oakland), CA (4.4 percent). Rents rising faster than wages in majority of counties measured Median three-bedroom rents are rising faster than average wages in 197 of the 341 counties analyzed (58 percent), including Los Angeles County, CA; Harris County (Houston), TX; Maricopa County (Phoenix), AZ); San Diego County, CA, and Orange County, CA (outside Los Angeles). Average wages are increasing faster than median three-bedroom rents in 144 of the 341 counties analyzed (42 percent), including Cook County (Chicago), IL; Miami-Dade County, FL; Kings County (Brooklyn), NY; Queens County, NY,

by admin
Comment Off
235 views

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, 2024Redfin’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. To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-supply-increases-first-time-eight-months

by admin
Comment Off
268 views

HPSI Inches Upward Again, Now at Highest Level in Nearly 2 Years The Fannie Mae Home Purchase Sentiment Index® (HPSI) increased 2.1 points in February to 72.8, inching higher for the third consecutive month, due primarily to increased optimism around home-selling conditions. In February, 65% of consumers said it’s a good time to sell a home, up from 60% last month. The share of those who believe it’s a good time to buy a home ticked up slightly this month but remains at an extremely pessimistic 19%. Additionally, a plurality of consumers continues to believe that mortgage rates will go down over the next 12 months, although on net that component fell slightly this month. Overall, the full index is up 14.8 points year over year. “The HPSI increased for the third straight month, continuing its slow but steady rise from the low-level plateau observed through much of 2023; and consumer sentiment toward housing now rests firmly above where it was this time last year,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. “Consumer attitudes toward home-selling conditions increased markedly in February, with current homeowners, in particular, expressing greater optimism that it’s a ‘good time to sell,’ a development that may foreshadow an upcoming increase in existing home listings. Additionally, despite the recent uptick in rates, consumers remain relatively optimistic that mortgage rates will decrease over the next 12 months. If their expectations come true and rates move closer to the 6-percent mark by the end of 2024, as we currently expect, then it’s likely that consumer sentiment on both sides of the transaction will improve, perhaps leading to a further thawing of the housing market. A decline in mortgage rates – and the resulting uptick in sentiment – would obviously bode well for the upcoming spring homebuying season, although affordability will likely remain a significant challenge for buyers, at least until there’s a meaningful addition to net supply.” Home Purchase Sentiment Index – Component Highlights Fannie Mae’s Home Purchase Sentiment Index (HPSI) increased in February by 2.1 points to 72.8. The HPSI is up 14.8 points compared to the same time last year. Read the full research report for additional information. Detailed HPSI & NHS FindingsFor detailed findings from the Home Purchase Sentiment Index and National Housing Survey, as well as a brief HPSI overview and detailed white paper, technical notes on the NHS methodology, and questions asked of respondents associated with each monthly indicator, please visit the Surveys page on fanniemae.com. Also available on the site are in-depth special topic studies, which provide a detailed assessment of combined data results from three monthly studies of NHS results. To receive e-mail updates with other housing market research from Fannie Mae’s Economic & Strategic Research Group, please click here. SOURCE Fannie Mae

by admin
Comment Off
207 views

During the State of the Union address, President Biden announced that the administration was moving forward with a previously rejected pilot program that would waive the requirement for lender’s title insurance on certain refinances. This misguided effort should only be seen as a purely political gesture that offers a false promise of savings for homeowners when in fact all it will do is expose consumers, lenders, and taxpayers to greater financial risk. In his speech, the president touted this program as a cost-saving measure for would-be homeowners. In reality, the pilot only covers refinancings – which would exclusively benefit existing high-income homeowners and would not affect first-time homebuyers at all. The purposeful mischaracterization of the pilot is frustrating not only because it is a hollow promise, but it also diminishes the value and crucial role of an entire industry that contributes to the American economy. In an independent analysis conducted by EY Quest and released earlier this week, researchers found that the title industry employs 155,000 jobs across the country and directly contributes $30 billion annually to the GDP. Ninety percent of title companies are small businesses, many of them women-owned, and these businesses operate in every county in the country. The Biden administration fails to understand just how many working American families are going to be directly affected by this ill-conceived pilot program; nor do they understand the broader long-term impact on the national economy and the safety and soundness of the housing finance system. The title industry also believes that the independent regulatory process is a crucial part of the system of economic checks and balances. With this approval, the Biden administration has effectively overridden and politicized this process. They have ignored the decision that was made by FHFA Director, Sandra Thompson, just as recently as last summer, as well as the members of Congress who have expressed serious concerns about a repeat of the 2008 crisis and GSEs moving beyond their mission and charter into the primary market. In addition, the Administration is unnecessarily targeting closing costs. The Consumer Financial Protection Bureau (CFPB) posted a blog that says closing costs “all too often are full of junk fees.” Apparently, the current leadership at the Bureau isn’t aware of its TILA-RESPA Integrated Disclosures (TRID) rule, which the industry implemented in 2015. Under this federal rule that the CFPB overseas, closing costs must be provided and disclosed to a consumer on the Loan Estimate within three days of receiving a completed loan application. The same fees must also be provided on the Closing Disclosure, which homebuyers receive three days prior to closing. Most fees can’t change. The Bureau created the disclosures with the purpose of helping consumers shop around and understand the closings costs. CFPB’s own research shows these disclosures are working to educate consumers. The CFPB report praised its own rule for improving “consumers ability to locate key information, compare terms and costs between initial disclosures and final disclosures, and compare terms and costs across mortgage offers.” Reform of mortgage closing costs is unnecessary. The contradictory use of the term “junk fee” conflicts with the White House’s own definition, which cites the lack of disclosure of the fee being charged. The American Land Title Association (ALTA) is committed to working with policymakers to thoughtfully address housing affordability and opportunity while also protecting consumers and their most important investments. To read ALTA’s previous statement on the White House announcement of the waiver pilot program click here: ALTA Says White House Attack on Title Insurance Offers False Promise of Savings SOURCE American Land Title Association CONTACT: Jeremy Yohe, 1-202-590-8361, jyohe@alta.org

by admin
Comment Off
185 views

Home sellers were more active this February, with 11.3% more homes newly listed on the market compared to last year According to Realtor.com®‘s February housing report, the Spring housing market is shaping up to be an active one for prospective homebuyers. In fact, there were 14.8% more homes actively for sale on a typical day in February compared to the same time in 2023, which marks the fourth consecutive month of annual inventory growth. “The first couple of months of 2024 have proven to be positive for inventory levels, as the number of homes actively for sale was at its highest level since 2020,” said Danielle Hale, Chief Economist of Realtor.com®. “While the country is still well below pre-pandemic levels, the South is leading the charge, moving faster than other parts of the country, largely driving the increase in availability of homes priced between $200,000 and $350,000, a price category that saw the most year-over-year growth nationally.” February 2024 Housing Metrics – National Metric Change over Feb 2023 Change over Feb 2019 Median listing price +0.3% (to $415,500) +40.4 % Active listings +14.8 % -39.7 % New listings +11.3 % -17.2 % Median days on market – 4 days (to 61 days) -14 days Share of active listings withprice reductions +1.4 percentage points(to 14.6%) -1.1 percentage points Affordable Home Inventory GrowsHomes in the $200,000 to $350,000 price range grew by 20.6% compared to last year, outpacing all other price categories. For home shoppers looking for affordable options, this may lead to particularly favorable home buying conditions. And, though the market is still a ways away from pre-pandemic levels, homebuyers may anticipate more options to choose from, compared to recent years, heading into the hot spring homebuying season especially in this category. Southern Metros See the Most Inventory GrowthThe inventory of homes actively for sale increased in 29 out of 50 of the largest metros compared to last year. Orlando (+38.5%), Miami (37.4%) and Tampa (36.3%) experienced the most inventory growth. While most metros are still seeing lower inventory levels when compared to pre-pandemic years, three metros actually saw higher levels of inventory in February compared to typical 2017 to 2019 levels. The top three were in the South, particularly in Texas: San Antonio (+26.6%), Austin (+10.8%), and Dallas (+2.2%). Mortgage Rates Remain in Flux, but Sellers are Ready to MoveAs mortgage rates continue to shift, home sales have been sensitive to the fluctuations. While rates declined abruptly in November and December they steadied around 6.6% in January and early February, before climbing higher following a hot inflation report, most recently hitting 6.94%. Additionally, the percentage of homes with price reductions increased from 13.2% in February of last year to 14.6% this year, marking the first time the share of price reductions had increased over the previous year since May of 2023. In fact, newly listed homes were 11.3% above last year’s levels for the fourth month of increasing-listing activity after a 17-month streak of decline. Additional details and full analysis of the market inventory levels, price fluctuations and stabilization, as well as days on market tallies can be found in the Realtor.com® February Monthly Housing Report. SOURCE Realtor.com