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REALTORSĀ® Expect Home Prices to Increase by 4% in the Next 12 Months

In a monthly survey of REALTORS®, respondents are asked “In the neighborhood(s) or area(s) where you make the most sales, what are your expectations for residential property prices over the next year?

Among the respondents, the median expected price change is four percent. The chart below shows median expected price change by state based on survey responses collected during February–April 2018[1], according to the  April 2018 REALTORS® Confidence Index Survey

Respondents from the states of Washington, Oregon, Idaho, Nevada, California, Utah, Wyoming, Colorado, and Wisconsin expect the highest price growth in the next 12 months, with the expected median price growth at more than five to nearly eight percent.

Owing to tight lack of construction, house prices have increased steeply since 2012 compared to the growth in income. Nationally, the median price of U.S. existing homes sold was 68 percent higher than the level in January 2012, the year the housing market started to recover solidly.  Meanwhile, wages have increased only 15 percent since then.

Based on the FHFA House Price Index at the state level, the strongest price growths from 2012 through 2017 were in the West region such as Nevada (102 percent), California (85 percent), Arizona (76 percent), Oregon (74 percent), Idaho (70 percent), Washington (68 percent), Colorado (68 percent), Utah (65 percent). Home prices have also increased steeply in Florida (73 percent), Michigan (71 percent), and Texas (47 percent).

Use the data visualization below to view median listing prices in April 2018. Red areas are areas where prices are higher than the U.S. median home price growth. Hover on the map to view the historical median listing prices of properties listed on Realtor.com from June 2012 through April 2018.[2]

MedianPrice_DB3

[1] Because each month’s survey asks about the outlook in the next months, the responses collected from January-March 2018 covers the outlook for January 2018-March 2019.

[2] Realtor.com data is freely available and can be download from https://www.realtor.com/research

Older Boomers: Most Satisfied Buyers Purchasing Forever Homes

Older Boomers, buyers aged 63 to 71 years, made up 14 percent of all home buyers in 2017. The median age for this group was 66 years old and they were born between 1946 and 1954. Within this group, they had the second largest share of single female buyers at 22 percent. Their primary reasons for purchasing a home, more than other generations, were the desire to live closer to friends and family (25 percent), followed by retirement (15 percent).

Combined, Older Boomers owned the highest share of investment (nine percent) and vacation (seven percent) properties. Equal to the Silent Generation, Older Boomers were the most likely to purchase homes in a small town (27 percent) and in a rural area (11 percent).

Compared to other buyers, they moved the greatest distances at a median of 30 miles. Older Boomers were the least likely to purchase homes for the quality of school districts or convenience to schools. Rather, they purchased homes for the quality of the neighborhood and for convenience to friends and family. This age group found commuting costs as well as windows, doors, and siding installation equally important. Overall, Older Boomers were very likely not to make compromises on the home when they purchased (47 percent), citing that they were never moving and it was their forever home (27 percent).

In their home search process, Older Boomers were very likely to drive by homes and neighborhoods and they were the least likely to find the paperwork a difficult step. Older Boomers were the most satisfied with the home buying process at 93 percent.

Older Boomers’ income was below the median income of all buyers ($88,800) at just $80,700 and they purchased homes at a median price of $239,200. Older Boomers were the most likely to use the proceeds from the sale of a primary residence as the source of their downpayment (56 percent) and from an IRA account (five percent). They were the largest group of home buyers to save for a downpayment for more than two years (30 percent).

Older Boomers were the third largest share of home sellers at 22 percent in 2017. The median age for an Older Boomer seller was 67 years. They had the second lowest median income at $80,700. They were the most likely to sell to be closer to friends and family (28 percent) and for retirement (19 percent), and at a median distance of 39 miles from the home they recently purchased. They were also very likely to sell when they wanted to (94 percent). They receive the highest equity at 46 percent and second highest dollar value at $86,000.

April 2018 Housing Affordability Index

At the national level, housing affordability is down from last month and down from a year ago. Mortgage rates rose to 4.66 percent this April, up 13.4 percent compared to 4.11 percent a year ago.

  • Housing affordability declined from a year ago in April moving the index down 8.8 percent from 159.8 to 145.8. The median sales price for a single family home sold in April in the US was $259,900 up 5.5 percent from a year ago.
  • Nationally, mortgage rates were up 55 basis point from one year ago (one percentage point equals 100 basis points), while median family incomes rose 2.8 percent.

  • Regionally, the West recorded the biggest increase in home prices at 6.4 percent. The South had an increase of 5.0 percent while the Midwest had a gain of 4.1 percent. The Northeast had the smallest incline in price of 2.5 percent.
  • Regionally, all four regions saw a decline in affordability from a year ago. The West had the biggest drop in affordability of 9.4 percent. The South and the Midwest both had a decline of 8.0 percent. The Northeast had the smallest drop of 5.4 percent.
  • On a monthly basis, affordability is down from last month in all four regions. The West had a decline of 0.8 percent followed by the Northeast with a dip of 2.0 percent. The South had a drop of 2.6 percent followed by the Midwest, which had the biggest; dip in affordability of 6.0 percent.
  • Despite month-to-month changes, the most affordable region was the Midwest, with an index value of 183.6. The least affordable region remained the West where the index was 104.6. For comparison, the index was 147.9 in the South, and 160.2 in the Northeast.

  • Mortgage applications are currently up 4.1 percent. Consumer confidence remains strong. Home prices are up 5.5 percent while median family incomes are only growing 2.8 percent. New home construction is being held back by increased material cost and labor shortage.
  • What does housing affordability look like in your market? View the full data release here.
  • The Housing Affordability Index calculation assumes a 20 percent down payment and a 25 percent qualifying ratio (principal and interest payment to income). See further details on the methodology and assumptions behind the calculation here.

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"HANK"  
Henry Sudol
NYS Licensed Associate 
Real Estate Broker


Direct
Phone/text: 845-800-7856  
Email: hanksudol@gmail.com



2274 Route 300,
P O Box 839
Wallkill, NY 12589



 

Testimonials Page

"My house would still be on the market had it not been for Hank. Hank found me when my listing agreement expired. His plans to sell my house were professional, thorough,and appropriate for the changing market. His dedication, understanding ,people skills, photos and on line presentation were critical to attracting buyers" M. Arlotta
"Choosing Hank was our best selling decision. Our agreement had expired after six months of no offers and limited interest. We interviewed 4 agents. Listed with Hank we were under agreement in three weeks choosing 1 of 3 offers." J. Thompson
Dear Hankā€¦ It's a pleasure to write this letter to thank you for all your hard work in selling our house. Thank you, in your case, certainly is not enough! We hope this letter explains our belief that you are an exemplary Realtor. In May we found ourselves trying to sell a one hundred year old house that was in need of many repairs in a challenging selling market. From the time of our first meeting, you were honest and direct. You explained to us how the process would unfold so we wouldn't be surprised, and you recommended things that we could do to help with the sale. When it came to setting an asking price and later when we wanted to adjust and lower the price, you always listened to our thoughts and recommended we keep the asking price, be patient and wait for the right buyer. In those discussions it quickly became obvious that you knew your market and the players in local real estate. Unlike many of your contemporaries you communicated frequently and effectively with us. To your credit we were never blindsided or in the dark at any time. You were proactive and kept us looking ahead of the present. Your advertisement and numerous tours of our house were comprehensive and beneficial in making a difficult sale happen. No one knew how much real estate values were going to fall but they certainly did. During these challenging real estate market other agents would focus more on quick easy sales but you did not. It was during these difficult times when we needed your best, and that was what we got. By this time we had grown accustomed to your great work ethic, your flexibility, creativity, and persistence in making the sale. It is no exaggeration that closing and selling a house is a stressful endeavor both emotionally and fiscally. You provided that support and confidence we needed to know things would work out. Through it all you were a Realtor who was clearly a partner and a friend. For all of these reasons this is why we can unconditionally recommend you to our friends and acquaintances. It is without hesitation we would seek you out with any future real estate needs. Sincerely, Ed and Nereida Castillo Ed and Nereida Castillo
"We had an accepted offer for our asking price in under a week. We don't believe this would have happened without your advice and suggestions on ways to ready the house for the market... you priced and marketed our house perfectly." Matt and Sarah Messing
"We sold in 8 days. Hank listened to our needs and wants. I would definitely recommend Hank" B. Redder
"We thought we might never sell our 1870's home. We had been listed with another agent for a year with minimal results. In contrast, Hank posted great photos, marketing the house effectively on the web creating an amazing amount of activity and appointments." [7 offers] K. Hernandez
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Rita Levine Real EstateRita Levine Real Estate
New York State Licensed Real Estate Broker
2274 Route 300 P.O. Box 839, Wallkill, New York 12589

Phone845-895-00 Emailritalevine@aol.com
 www.ritalevinerealestate.com