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NAR Identifies Best Purchase Markets for Aspiring Millennial Homebuyers

July 25, 2014 Comments off

NAR Identifies Best Purchase Markets for Aspiring Millennial Homebuyers
Source: National Association of REALTORS®

First-time homebuyers have been largely absent from the housing market in the current economic recovery, but some metropolitan areas – particularly in the Midwest and West – are well positioned to see increases in home-buying from the Millennial generation in upcoming years, according to new research by the National Association of Realtors®.

NAR analyzed current housing conditions, job creation and population trends in metropolitan statistical areas1 across the U.S. to determine the best markets for aspiring, leading edge Millennial2 homebuyers. Austin, Texas and Salt Lake City were identified as top standouts for Millennials for having a young adult population with solid job growth rates and still relatively affordable home prices. Seven of the 10 metro areas recognized are in the Midwest and West.

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REALTORS® in the American Workforce, by State

June 20, 2014 Comments off

REALTORS® in the American Workforce, by State
Source: National Association of REALTORS®

The interactive map below allows you to look at the share of REALTOR® members by state and, by using the slider in the top left corner of the map, through time.

What stands out in the map, regardless of the year’s data that you look at, is that there is geographic variation in the ratio of REALTOR® members to employed persons by state. If you take a look at this variation over time, you find that there is also some consistency in the shares by state.

Hawaii is a perennial leader, coming in with the highest share of REALTOR® members per employed persons in 19 of 34 years. Arizona is a close second, coming in with the highest ratio in 15 of 34 years. These two states are the only two to rank number one in this metric from 1980 through 2013. In that time, the highest share of REALTOR® members per employed persons ranged from 0.9 to 2.3 percent.

By contrast, the state with the lowest share of REALTOR® members per employed persons has been more variable. In the 34 years observed, Mississippi, Maine, West Virginia, South Dakota, and North Dakota have all rotated in and out of this position. In every year, the state with the lowest share of REALTOR® members per employed persons has ranged between 0.2 and 0.4 percent.

State-by-State Economic Impact of Real Estate Activity

April 24, 2014 Comments off

State-by-State Economic Impact of Real Estate Activity
Source: National Association of REALTORS®

How is the housing market in your state affecting the local economy? These reports outline the total economic impact of real estate related industries on the state economy, as well as the expenditures that result from a single home sale, including aspects like home construction costs, real estate brokerage, mortgage lending and title insurance. Find out how much the real estate industry is affecting the gross state product for your area.

National Association of REALTORS® Generational Trends Study Shows Confidence in Market, Some Challenges

March 12, 2014 Comments off

NAR Generational Trends Study Shows Confidence in Market, Some Challenges
Source: National Association of REALTORS®

Young home buyers remain optimistic and see their home as a good investment, while older buyers are more likely to trade down to a smaller property to match changing lifestyles, according to the 2014 National Association of Realtors® Home Buyer and Seller Generational Trends study, which evaluates the generational differences of recent home buyers and sellers.

Eight out of 10 recent buyers considered their home purchase a good financial investment, ranging from 87 percent for buyers age 33 and younger, to 74 percent for buyers 68 and older.

Foreclosure Rates and Changes: Q4 2013 vs. Q4 2012

March 10, 2014 Comments off

Foreclosure Rates and Changes: Q4 2013 vs. Q4 2012
Source: National Association of REALTORS®

Rising home values and an improved economy changed the foreclosure picture dramatically over the last two years. The decline in foreclosures and distressed sales resulted in less downward pressure on prices and more buyer confidence. To find out how your market performed, see the 4th quarter 2013 Local Market Reports.

Commercial Real Estate Investors “Cautiously Optimistic” As the Future Unfolds, According to New Outlook Report

February 20, 2014 Comments off

Commercial Real Estate Investors “Cautiously Optimistic” As the Future Unfolds, According to New Outlook Report
Source: National Association of REALTORS®

Commercial real estate investments are expected to produce generally solid returns in 2014, according to the authors of Expectations & Market Realities in Real Estate 2014—The Future Unfolds, an annual forecast report released by Real Estate Research Corporation (RERC), Deloitte, and the National Association of Realtors®(NAR).

The three organizations have drawn on their respective capabilities to examine the economy, capital markets, and commercial real estate property markets; thoroughly assess and analyze existing research; and offer an objective outlook for commercial real estate for 2014 and beyond. Findings indicate that although uncertainties remain, the economy is expected to continue to grow slowly and improve modestly in 2014. Capital is flush, and commercial real estate investment has expanded to the secondary and tertiary markets. In addition, the report carefully analyzes and offers a research-based assessment of the office, industrial, apartment, retail, and hotel property sectors. The report also provides an outlook for the three mostly likely economic and investment scenarios for 2014 and beyond.

December Existing-Home Sales Rise, 2013 Strongest in Seven Years

February 4, 2014 Comments off

December Existing-Home Sales Rise, 2013 Strongest in Seven Years
Source: National Association of REALTORS®

Existing-home sales edged up in December, sales for all of 2013 were the highest since 2006, and median prices maintained strong growth, according to the National Association of Realtors®.

Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 1.0 percent to a seasonally adjusted annual rate of 4.87 million in December from a downwardly revised 4.82 million in November, but are 0.6 percent below the 4.90 million-unit level in December 2012.

For all of 2013, there were 5.09 million sales, which is 9.1 percent higher than 2012. It was the strongest performance since 2006 when sales reached an unsustainably high 6.48 million at the close of the housing boom.

NAR 2013 Community Preference Survey; Americans Prefer to Live in Mixed-Use, Walkable Communities

November 26, 2013 Comments off

NAR 2013 Community Preference Survey; Americans Prefer to Live in Mixed-Use, Walkable Communities
Source: National Association of REALTORS®

According to the National Association of REALTORS® 2013 Community Preference Survey, 60 percent of respondents favor a neighborhood with a mix of houses, stores, and other businesses that are within walking distance, rather than neighborhoods requiring driving between home, work, and recreation. Respondents indicated that while the size of a home or yard does matter, most are willing to compromise size for a preferred neighborhood and less commuting.

Profile of International Home Buying Activity

August 9, 2013 Comments off

Profile of International Home Buying Activity
Source: National Association of Realtors

We live in a global marketplace. While all real estate is local, not all property buyers are. A significant share of home purchases are made by people whose primary residence is outside of the U.S. Find out which are the top five countries of origin for foreign buyers of U.S. homes, and how these buyers are using the services of REALTORS®. This year’s Profile examines purchases of real estate in the United States by international clients for the twelve-month period ending in March 2013.

Home Buyer and Seller Generational Trends

July 9, 2013 Comments off

Home Buyer and Seller Generational Trends
Source: National Association of Realtors

Highlights

  • Among the generations, Gen X comprises the largest group of recent home buyers, followed by Gen Y, and then younger Baby Boomers, older Baby Boomers, and the Silent Generation. The G.I. Generation represented less than 1 percent of recent buyers.
  • At least 80 percent of buyers who are aged 57 and younger bought a detached single-family home, while it is increasingly common for buyers over the age of 57 to purchase townhouses and condos.
  • Among all generations of home buyers the first step in the home buying process is looking online for properties for sale.
  • Buyers gain many benefits from working with a real estate professional. Among age groups, younger buyers are more likely to want the agent to help them understand the process as they are more likely to have never purchased a home before.
  • Older buyers are less likely to finance their home purchase in comparison to younger buyers; when they do finance, the share of the home they financed is typically smaller.
  • Among the generations, Gen X is the largest group who are recent home sellers followed by both younger Baby Boomers and older Baby Boomers, the Silent Generation, and Gen Y. The G.I. Generation represented less than 1 percent of recent buyers.
  • Younger sellers are more likely to use the same real estate agent or broker for their home purchase than older sellers.

Real Estate — Where are Global Buyers Searching in the United States?

April 19, 2013 Comments off

Where are Global Buyers Searching in the United States?

Source: National Association of Realtors

Realtor.com® recently released data regarding the top countries (outside the U.S.) where consumers are the most engaged on Realtor.com® & Realtor.com® International. The data highlights the markets within the U.S. that are most popular amongst these global consumers throughout March 2013.

• Canada: Las Vegas, Fort Lauderdale, Orlando, Detroit, Naples

• U.K.: Los Angeles, Orlando, Miami, Houston, Las Vegas

• Germany: San Antonio, Los Angeles, Cape Coral, Miami, Las Vegas

• Australia: New York, Los Angeles, Las Vegas, Houston, Detroit,

• Japan: San Diego, Alpharetta, Las Vegas, San Diego, San Antonio

• Mexico: San Diego, El Paso, Laredo, San Antonio, Las Vegas

• India: Los Angeles, Orlando, Chicago, Dallas, Houston

• Brazil: Orlando, Miami, Boca Raton, Fort Lauderdale, Miami Beach

• China: Detroit, Los Angeles, Irvine, Las Vegas, Orlando

• France: Chicago, Miami, Los Angeles, Miami Beach, San Diego

• Russian Federation: Los Angeles, Miami, Orlando, New York, Detroit

• South Korea: Las Vegas, Irvine, Los Angeles, San Antonio, Columbus

• Italy: Miami, Los Angeles, Miami Beach, New York, San Diego

• Netherlands: Los Angeles, Miami, New York, Houston, Las Vegas

• Switzerland: Miami, Las Vegas, Los Angeles, San Diego, Raleigh

• Spain: Miami, Los Angeles, New York, Las Vegas, San Diego

• Ireland: Los Angeles, New York, Orlando, Chicago, Miami

• Sweden: Los Angeles, Detroit, Parkland (FL), Miami, Fort Lauderdale

• Belgium: Los Angeles, Miami, Las Vegas, Naperville (IL), Orlando

The New Real Estate Mantra: Location Near Public Transportation

April 3, 2013 Comments off

The New Real Estate Mantra: Location Near Public Transportation (PDF)
Source: National Association of Realtors, American Public Transportation Association, Center for Neighborhood Technology

Fueled by demographic change and concerns over quality of life, there has been a growing interest in communities with active transportation modes. The recession added another dimension to these discussions by emphasizing the economic impli cations of transportation choices. Housing and transportation, the two economic sectors mostly closely tied to the built environment, were both severely impacted by the economic downturn. There has been a growing effort among planners, real estate professionals, and economists to identify not only the economic benefits of alternative transportation modes in and of themselves, but also the impact that they have on housing prices and value retention. The real estate mantra of “location, location, location” is more important than ever. Moving beyond the traditional arguments that good schools and neighborhood amenities impact housing prices, emerging research has indicated that urban form and transportation options have played a key role in the ability of residential properties to maintain their value since the onset of the recession.

tudies have shown that consumers are willing to pay more for housing located in areas that exemplify new urbanist principles or are “traditional neighborhood developments.” These neighborhoods are walkable, higher density, and have a mix of uses as well as access to jobs and amenities such as transit.

This analysis investigates how well residential properties located in proximity to fixed-guideway transit have maintained their value as compared to residential properties without transit access between 2006 and 2011 in five regions: Boston, Chicago, Minneapolis-St. Paul, Phoenix, and San Francisco. The selection of these places for the study regions provides not only a geographic distribution, but also an illustrative sample of the types of fixed-guideway transit systems in the US. Minneapolis-St. Paul and Phoenix have newer light rail systems, while Boston, Chicago, and San Francisco are mature systems dominated by heavy and commuter rail. Additionally, Boston is also home to one of the earlier BRT lines.

National Association of Realtors 2013 Home Features Survey

March 13, 2013 Comments off

National Association of Realtors 2013 Home Features Survey (PDF)

Source: National Association of Realtors

From press release:

Geography and demography strongly influence what buyers value in a home. The typical recently purchased home was 1,860 square feet and was built in 1996. Repeat buyers, buyers of new homes, married couples and families with children typically purchased larger homes. First-time buyers and single women tended to buy older homes. The typical buyer purchased a home with three bedrooms and two full bathrooms. Slightly over half of the homes purchased were on a single level.

Southerners tend to buy newer homes; they were more likely to want a home less than five years old and in a wooded lot with trees when compared to other regions. Not surprisingly, buyers in the South also placed a higher importance on central air conditioning.

While more than three-fourths – 78 percent – of all buyers purchased a home with a garage, garages were more popular among new-home buyers, Midwesterners, and suburbanites. Forty-one percent of homes purchased had a basement, but this feature was more popular among buyers in the Midwest and Northeast. Northeastern buyers also value hardwood floors more than people in other regions. Southerners typically bought the largest home at 2,000 square feet. Those in the Northeast followed closely behind with a typical home purchase of 1,850 square feet.

Among buyers 55 and older, 42 percent considered finding a single-level home very important, compared to just 11 percent of buyers under age 35. Single women also placed higher importance on single-level homes, while single men wanted finished basements. Both single men and married couples placed higher importance on new kitchen appliances.

International Sales Continue to Climb in U.S. Market, Realtors® Report

July 14, 2012 Comments off

International Sales Continue to Climb in U.S. Market, Realtors® Report
Source: National Association of Realtors®

Due to low prices and the relative weakness of the dollar, international buyers continue to identify the U.S. as a desirable place to own property and make a profitable investment.

According to the National Association of Realtors® 2012 Profile of International Home Buying Activity, total residential international sales in the U.S. for the past year ending March 2012 equaled $82.5 billion, up from $66.4 billion in 2011. Total international sales were evenly split between non-resident foreigners and recent immigrants.

All Commercial Real Estate Sectors Continue to Improve, Multifamily Strong

May 31, 2012 Comments off

All Commercial Real Estate Sectors Continue to Improve, Multifamily Strong
Source: National Association of Realtors

Shaking off a prolonged impact from the recession, fundamentals are gradually improving in all of the major commercial real estate sectors, according to the National Association of Realtors® quarterly commercial real estate forecast. The apartment rental sector has fully recovered and is growing.

The findings also are confirmed in NAR’s recent quarterly Commercial Real Estate Market Survey, which collects data from members about market activity.

Lawrence Yun, NAR chief economist, said new jobs are the key. “Ongoing job creation, which is at a higher level this year, is fueling an underlying demand for commercial real estate space, assisted by a steady increase in consumer spending,” he said. “The pattern shows gradually declining commercial vacancy rates, with consequential but generally modest rent growth.”

Yun expects the economy to add 2 to 2.5 million jobs both this year and in 2013, on the heels of 1.7 million new jobs in 2011, assuming a new federal budget is passed before the end of the year. “Although we need even stronger job growth, by far the greatest impact of job creation is in multifamily housing, where newly formed households striking out on their own have increased demand for apartment rentals – this is the sector with the lowest vacancy rates and strongest rent growth, which is attracting many investors.”

Rising apartment rents also are having a positive impact on home sales because many long-time renters now view homeownership as a better long-term option, Yun noted.

Profile of International Home Buying Activity 2011

December 21, 2011 Comments off
Source:  National Association of Realtors
This year’s Profile examines purchases of real estate in the United States by international clients for the twelve-month period ending in March 2011.
Highlights
  • Of the approximately $1.07 trillion in existing-home sales between March 2010 and March 2011, approximate $41 billion dollars-worth were purchased by foreign buyers.
  • Recent immigrants—those who have moved to the U.S. within the past 2 years—and individuals with visas for more than 6 months, purchased an additional $41 billion.
  • Therefore, total purchases by foreign or foreign-born buyers were $82 billion, up from $66 billion reported in 2010.

Survey Shows Opposition to Down Payment Requirements and Elimination of Mortgage Interest Deduction

July 14, 2011 Comments off

Survey Shows Opposition to Down Payment Requirements and Elimination of Mortgage Interest Deduction
Source: National Association of REALTORS®

NAR’s ninth housing pulse survey reflects that, as the housing market continues to struggle, Americans worry that policy proposals coming out of Washington could drag the market down further or deter potential new homeowners.

There is particular concern surrounding calls for a required down payment of 20 percent on home purchases. Seven-in-ten Americans say requiring a down payment of 20 percent on the cost of a home would have a negative impact on the housing market. The survey also shows strong concern about the possible elimination of the home mortgage interest deduction. Two in every three Americans, 67 precent, oppose eliminating the home mortgage interest deduction as part of a plan to reduce the federal deficit. A majority of Americans (51 percent) strongly oppose eliminating it. Americans believe that either action would have severe consequences for the housing market.

The survey, which measures how affordable housing issues affect consumers, also found job security concerns remain high, with 61 percent of Americans saying that job layoffs and unemployment are a big problem in their area; eight in 10 cite these issues as a barrier to homeownership.

+ Executive Summary (PDF)

2011 Commercial Real Estate Lending Survey

June 27, 2011 Comments off

2011 Commercial Real Estate Lending Survey
Source: National Association of REALTORS®

We invited a random sample of 56,000 REALTORS® with an interest in commercial real estate to fill out an on-line survey consisting of 12 questions. A total of 525 responses were received for an overall response rate of 0.9 percent.

Report Highlights

  • More than 70 percent of REALTORS® name lack of available financing as a major obstacle for commercial real estate this year.
  • Some 87 percent of the practitioners surveyed said it has impacted clients’ decisions in 2011.
  • 59 percent of respondents reported a failed transaction in the last year due to financing difficulties.

+ Full Report (PDF)

2011 NAR Profile of International Home Buying Activity

June 2, 2011 Comments off

2011 NAR Profile of International Home Buying Activity (PDF)
Source: National Association of Realtors
From press release:

The U.S. continues to remain a top destination for foreign buyers as international purchases surged by $16 billion this year, one of the highest increases in recent years.

This is according to the National Association of Realtors®’ 2011 Profile of International Home Buying Activity. According to the survey, total residential international sales in the U.S. for the past year ending March 2011 equaled $82 billion, up from $66 billion in 2010. Total international sales were split evenly between non-resident foreigners and recent immigrants, while combined total domestic and international existing-home sales in the U.S. were $1.07 trillion.

Inflation Watch: April 2011

April 20, 2011 Comments off

Inflation Watch: April 2011
Source: National Association of REALTORS®

Inflation, or price-level growth, is important for REALTORS® because it ultimately affects mortgage rates and the ability of home buyers to purchase a home. If the Federal Open Market Committee (FOMC) lowers interest rates to stimulate the economy, you may see more home buyers in the market; however, lowering rates can also lead to inflation. So, to combat inflation, the central bank increases interest rates—which may dampen economic growth and demand for home buying.

During the recent financial crisis, fears of deflation (price-level decline) were rampant. With financial markets now stable, some fear that inflation is around the corner. There is also the possibility of stagflation, characterized by high unemployment and high inflation. In stagflation, it is difficult for the central bank to raise interest rates to combat inflation due fear of further job market deterioration if demand is hurt by the increased interest rates.

+ Full Presentation (ppt)

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