However, new homes don't much help with the affordability problem - the national median price of an existing single family home was 245,500 in the first quarter, while the median cost of a brand new single-family home was 331,700 over the same period. The two aren't directly comparable, of course, but it's not as though a potential homebuyer can suddenly come up with another 15,000 in annual income to cover the larger mortgage needed to purchase a new home. Perhaps as important, it also means that a seller of an existing home that wants to trade up needs to demand a price high enough as to make the leap to this new price tier more palatable. As has been the case, there's little for homebuyers to buy, and what housing stock is available is commanding higher and higher prices. Given current conditions, it's not likely that mortgage rates will decline significantly, providing relief, or that factors currently limiting supply of homes to buy will suddenly shift. In fact, and as we noted in the marketTrends back on April 13, ".it might be that much higher interest rates may be the only immediate solution for quelling demand, as this would tend to knock more marginal borrowers out of the market.
Wall Street journal: Multiple bids Stunning
In fact, just one market of the top 50 showed a year-over-year decline in the median price of a home sold in the first quarter of 2018, and this may have more to do with lousy weather and a change in the mix of homes. In fact, the opposite is quite true: home price continue steady (and sometimes spectacular) increases, challenging affordability in both expected and unexpected places. While it has been widely reported that hot markets continue to drive home prices in places like the seattle, denver and Los Angeles metro areas, an eyebrow or two might be raised when news that metro areas bfg like las Vegas, salt lake city, jacksonville, minneapolis. With only the Philadelphia metro area seeing a price reduction.79 percent, the counterbalance at the other end of the price increase spectrum was the san Jose metro area, where tech-fueled home values posted.32 year-over-year increase. Even with a 20 down payment, a potential homebuyer in this market will need to carry a mortgage history in excess of a million dollars. This leads the next most expensive market (the san Francisco metropolitan area) by a wide margin, and is more than ten times the amount of mortgage needed in the most affordable market (the pittsburgh metro area). Higher home costs are also coming at a time when mortgage rates have continued to move materially higher. Thirty-year fixed mortgage rates were up by more than a third of a percentage point on average during the period, so the affordability pinch would still have been evident even absent rising home costs. National Association or realtors Chief Economist Lawrence yun noted that Rapid price gains and the quick hike in mortgage rates are essentially eliminating any meaningful gains buyers may be seeing from the combination of improving wage growth and larger paychecks following this years tax cuts. Its simple: homebuilders need to start constructing more single-family homes and condominiums to overcome the rampant supply shortages that are hampering affordability.". Builders are adding more homes, but continue to do so at a measured pace.
Advertising open shelving, dual flush and mid-century features also shortened the time spent on market among all homes sold in the last two years by more than 10 days — as did subway tile, as pictured in this high-end kitchen: Just like with price premiums. Noting open shelving in a bottom-third listing led to a sale 14 days faster than entry-level listings that didnt mention that feature. Having and advertising a shed/garage studio shaved 15 days off the sale time for mid-market sellers, while dual flush features helped high-end sellers, err finish their business 14 days quicker. 1, this analysis measured how listing keywords associated with different home kites features can impact the sale price and time on market of a home, holding constant other factors. We analyzed.6 million home sales between 20 to identify which home attributes found in listing descriptions are associated with a higher sale price and less time on market. Multiple regression was used to control for the age and size of the property, the year and quarter of sale, zip-code-level zhvi at time of list (local market cost msa-level zhvi growth compared to national growth at time of list (local market hotness and county. Wondering what the latest move by the federal Reserve means for mortgage rates? See below exactly how much salary you would need to earn in order to afford the principal, interest, taxes and insurance payments on a median-priced home in the 50 most populous metropolitan areas. Key takeaways: Although there were again a sizable number of metropolitan areas where home prices declined on a quarter-to-quarter basis, it would be wrong to think buying a home is getting more affordable this spring.
Pizza oven came in essay third, netting sellers a 26 percent premium. Thats a lot of extra dough. Of course, all homes arent created equal, and sellers looking at different price points are attracted to and willing to pay extra for different amenities. Among just those homes priced in the bottom one-third of all homes, solar panel was the most lucrative feature to advertise in listing descriptions, netting sellers of these homes an extra 40 percent over other, more entry-level listings that did not advertise them. Among more typical homes priced in the middle segment of the market, a shed /garage studio was the biggest draw, helping net sellers a 24 percent premium. Among only higher-end homes priced in the top-third of the market, a sub-zero fridge proved a valuable investment, netting a 38 percent premium over otherwise high-end listings with more run-of-the-mill refrigerators. But some home sellers arent necessarily trying to maximize profit, and instead aim to minimize the time their home spends on the market. For those with a need for speed, noting exposed brick in their listing (assuming their home has it) can put some pep in their sales step listings mentioning the term sold a full two weeks faster in than those that did not.
The accolades we continue to get just bring people here without jobs. But there is sufficient job growth, along with a wide diversity of employment — which includes universities, government and the service industry — and investment in downtowns like raleighs and Durhams to make analysts confident the rise in housing prices is a steady climb, not. Theres no indication 2018 will bring setbacks in the real estate industry, based on current conditions, wood said. Nobody is forecasting 2018 to be a slow year. A slice of the Triangle housing market Closings in 2017 compared to 2016: Triangle.6 percent wake.2 percent Orange -2.8 percent Durham.7 percent Johnston 12 percent average sales price: Triangle 287,792 wake 324,682 Orange 366,187 Durham 255,514 Johnston 217,450 source: Triangle mls. Of all homes listed for sale on Zillow between 20, those mentioning steam shower in their listing descriptions earned their sellers a 29 percent higher sale price than listings that didnt mention it, one of the highest premiums among more than 100 listing terms analyzed. A steam shower is good for a lot more than helping relieve stress after a long day homeowners that note this humid home feature in their online listing description can also expect it to help them net a heftier sum when it comes time. 1, professional appliance also ranks high, helping sellers cook up a 29 percent premium over listings that didnt advertise that feature.
Nationwide 's health of housing Markets, report
The number of new homes sold increased about 5 percent. But construction has resume not reached its 2006 level when more than 16,000 homes were bought and sold in the Triangle, she says. That period led up to the nationwide crash in home prices, mortgage delinquencies and foreclosures caused in part because loans were made to people who couldnt make the payments. It drove building speculators into bankruptcy, and resounded over the next decade. Mortgage underwriting has been reformed since then. Whats driving all this demand?
A lot of new people with a lot of new money, anfindsen said. Wake county is attracting an average of 67 new residents a day. Considering that people also move out every day, wake is growing by a daily average of 47 people, including children, according to the county. As long as the region keeps making national best-of lists and can boast of good public relations like making the list of 20 potential sites for a new Amazon headquarters, people will move here, wood said. We continue to be, still, an area of growth, he said.
We are seeing buyers be very aggressive in their offers. The Triangle has about a two-month supply of houses. Wake county has slightly less than that. Five months is considered a healthy number. There is more competition for older houses in some areas where investors and developers looking to tear down and renovate houses are outbidding traditional home buyers.
A national trend seen locally is increased competition from buyers 36 and younger who are no longer renting. The national Association of realtors reports millennials and Gen Yers have comprised the largest generational share of buyers for the past four years, and 66 percent of them are first-time buyers. More of them are buying in the suburbs, too. Fewer homes are being built, in part because builders dont want to get too far ahead of the market and have to leave houses vacant, says Amanda hoyle, regional director for the research firm Metrostudy. The problem is exacerbated by not having enough workers in the construction trades, which hampers developers efforts to stay on schedule. Construction outlook promising, still, hoyle says, the outlook is promising. New home construction starts in the Triangle last year were up 9 percent, which put more than 12,000 new homes on the market.
Pre-purchase counseling Helps First-Time
Nationally, home sales have dipped, although December saw record prices, quick sales and low inventory. Why inventory is filsafat low, many factors are combining to keep housing inventory low: Houses are spending less time on the market. In some cases, sellers are taking longer to move because they havent found the house they want. Houses were on average 26 days on the market in wake county last year, down from warming 30 days, hitting another record. Those are crazy numbers. Theres a buying frenzy out there. Those are crazy numbers, said wood, who is a re/max agent, noting that just a couple years ago the average was 80 days on the market. Theres a buying frenzy out there, wood said. Spring markets start earlier every year and it is starting now.
that trend, he said. There were many high points in the Triangle market last year, Anfindsen said, with record numbers of showings, pending and closed sales, and median sale prices. Although an affordability index shows housing is increasingly out of reach for many, that is offset by other factors, such as wage growth, investments and home equity. The higher-end homes that builders are putting up dont help the first-time homebuyers and others who a decade ago could find something closer to 100,000. Thats not a possibility at all, wood says. Its a pretty rare event. Most new construction is about 300,000 and many are 400,000. Adding to the pressure on some buyers who havent closed a deal is deciding whether to sign up for a one-year lease or take a chance on finding the home of their dreams soon. With a strong rental market, few landlords do short-term rentals.
Across the writing Triangle, the average sale price was.5 percent. Sales that closed were.6 percent in the Triangle and.2 percent in wake, according to Triangle multiple listing Services data, which covers 16 counties. Johnston county, where construction started on nearly 2,000 homes last year, had an increase in new listings.5 percent and a 12 percent increase in closings. The average sale price was 217,450. More homes are selling in the upper ranges, which Stacey anfindsen, a cary appraiser who writes the. Triangle Area residential realty market report, finds notable. Thats been the red-headed stepchild of the market. Theres a lot more activity in the upper-end price range than there had been.
First Time vero beach, homebuyers, disappearing - vero
Prospective homebuyers in the Triangle are facing higher-than-ever prices on houses that are selling faster than ever, making the process far more jangling than it was just a few years ago. We lost three houses, all of which we made offers above list price, said Greg Thomas, who short along with his veterinarian wife, adele, in november bought their first home, in wake forest. To walk in a place and see it in 20 minutes and then make a decision: do you want to buy this house? If you do you better put an offer on the table, and even then you still may not get. Were it not for a patient real estate agent, colleen Lawrence, thomas said, i would have lost my mind. There has been a shortage of houses for sale across the Triangle for the past several years, and that demand is pushing the price of homes that are on the market through the roof. Subscribe today, buyers are stressed, longtime raleigh agent John wood said. The emotional roller coaster is enormous. The average sale price of a home in wake county last year reached 324,682, a record high and an increase.5 percent over 2016.