More States Break Previous Home Price Peaks

More States Break Previous Home Price Peaks. Image courtesy of David Castillo Dominici / FreeDigitalPhotos.net

Home prices are rising as inventories of homes for-sale remains limited. The National Association of REALTORS® recently reported that the median existing-home price for all housing types reached $236,400 in June – 6.5 percent above year-ago levels, surpassing the last peak median sales price set in July 2006 by more than $6,000.

Corelogic’s latest Home Price Index names 15 states and the District of Columbia that soared to new highs in home prices in June:

• Alaska
• Arkansas
• Colorado
• Hawaii
• Iowa
• Kentucky
• Nebraska
• New York
• North Carolina
• North Dakota
• Oklahoma
• South Dakota
• Tennessee
• Texas
• Wyoming

That brings the number of states at or within 10 percent of their peak home prices to 35.

“The current cycle of home price appreciation is closing in on its fourth year with no apparent end in sight,” says Anand Nallathambi, president and CEO of CoreLogic. “Pent-up buying demand and affordability, together with higher consumer confidence buoyed by a more robust labor market, are a potent mix fueling a 6.5 percent jump in home prices through June with more increases likely to come.”

The only two states that have shown year-over-year depreciation in June were Massachusetts, where prices have fallen 1.5 percent, and Louisiana, which had a 0.1 percent drop.

CoreLogic’s data excludes distressed sales in the index, and projects that this group of home prices will increase 4.2 percent year-over-year.

Source: CoreLogic

Make Yourself More Persuasive

Make Yourself More Persuasive. Image courtesy of Flare / FreeDigitalPhotos.net

In real estate, persuasion can take you far, whether it’s finding ways to save your clients money in a negotiation or trying to court new business.

Scott Yancey, CEO of the startup CloudWords, offers some tips on how to become more persuasive, taking from his experience of being an entrepreneur in pitching a new business idea to influential investors. He says the keys to becoming more persuasive are:

• Use data. Back up your point with research, facts, and evidence. Cite credible resources so your information is shown as reliable. Have this information available with you so you can cite it, when you need it.
• Become the “devil’s advocate.” Consider what the opposing argument will be and consider the other side’s priorities. You’ll then be more prepared to respond to arguments and you’ll be able to craft your messages more effectively to resonate and engage with your audience.
• Don’t gloss over objections. Listen to the other side’s objections and criticisms and don’t dismiss them – “as it shows you’re not defensive and gives confidence in the person you’re persuading that you genuinely want their feedback and are seeking the best resolution – not just your resolution,” notes Yancey. Talk about their objections so they feel heard and see where you can reach a consensus.

Source: “How to Get What You Want: 5 Ways to Be More Persuasive,” Forbes.com (July 31, 2015)

Mortgage Rates Dip Back Below 4%

Mortgage Rates Dip Back Below 4%. Image courtesy of Stuart Miles / FreeDigitalPhotos.net

Average fixed mortgage rates continue to fluctuate week-to-week, with the 30-year fixed-rate mortgage dropping below 4 percent this week, offering temporary relief to home buyers and refinancers after hitting its highest average for the year earlier this month, Freddie Mac reports in its weekly mortgage market survey.

“The mortgage rate has bounced between 3.98 and 4.09 percent since the first full week of June, falling a bit when events overseas take a turn for the worse and rising when the clouds appear ready to part,” says Sean Becketti, Freddie Mac’s chief economist. “With no clear direction coming from the Fed [this week], we expect more of the same in coming weeks.”

Freddie Mac reports the following national averages for the week ending July 30:

• 30-year fixed-rate mortgages: averaged 3.98 percent, with an average 0.6 point, dropping from last week’s 4.04 percent average. A year ago, 30-year rates averaged 4.12 percent. Earlier this month, 30-year rates reached the highest average for the year at 4.09 percent.
• 15-year fixed-rate mortgages: averaged 3.17 percent, with an average 0.6 point, dropping below its 3.21 percent average last week. A year ago, 15-year rates averaged 3.23 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 2.95 percent, with an average 0.4 point, dropping from last week’s 2.97 percent average. Last year at this time, 5-year ARMs averaged 3.01 percent.
• 1-year ARMs: averaged 2.52 percent, with an average 0.3 point, decreasing from 2.54 percent the prior week. A year ago, 1-year ARMs averaged 2.38 percent.

Source: Freddie Mac

More Young Adults Living at Home

More Young Adults Living at Home. Image courtesy of imagerymajestic / FreeDigitalPhotos.net

The job market is rebounding and wages are increasing, yet a higher number of millennials—people born after 1981—are still living with their parents or other adults.

A new Pew Research Center study of U.S. Census Bureau data showed that in the first part of 2015, 26 percent of millennials lived with their parents, which is up from 22 percent in 2007 at the height of the recession, and 24 percent in 2010, at the start of the economic recovery.

There’s also an increase in young people living in “doubled-up” households, Pew reports. A doubled-up household is one in which there is an extra adult who is not the spouse or unmarried partner, often a parent, relative or a roommate. In the first four months of 2015, 48 percent of millennials were living in this type of living situation.

This is despite an improving job climate for young people. The national unemployment rate for millennials was 7.7 percent in the first part of 2015, a sizeable recovery from the 12.4 percent of millennials unemployed in 2010. Wages also increased slightly, with median weekly earnings up $574 this year from $547 in 2010.

“This may have important consequences for the nation’s housing market recovery, as the growing young adult population has not fueled demand for housing units and the furnishings, telecom and cable installations and other ancillary purchases that accompany newly formed households,” says Richard Fry, senior economist at Pew Research Center.

Rising rents across the country may be to blame for keeping young adults from heading out on their own. Recent research from NAR showed that the gap between rental costs and income is widening to unsustainable levels in many parts of the country, and rents throughout the country are showing no sign of slowing down.

Additionally, many millennials are still saddled with student loan debt, making it hard for them to qualify for a mortgage.

The increase of millennials living at home impacts the entire economy. “The decline in the rate at which young adults are forming households from 2007 to 2015 has had a negative impact on the demand for the nation’s housing and, in turn, residential construction,” says Fry. …”In other words, young adults have been a key demographic in the nation’s housing bust.”

Source: “More Millennials Living With Family Despite Improved Job Market,” Pew Research Center (July 29, 2015)

47% of Homes Are Selling in Less Than a Month

47% of Homes Are Selling in Less Than a Month. Image courtesy of Stuart Miles / FreeDigitalPhotos.net

In some cities across the country, homes are selling faster than ever.

Nationally, properties typically stayed on the market for 34 days in June, the shortest number of days since the National Association of REALTORS® began tracking in May 2011. Short sales spent the most time on the market with a median of 129 days, foreclosures sold in 39 days, and non-distressed homes were on the market for 33 days. NAR reports that 47 percent of homes sold in less than a month in June.

The real estate brokerage Redfin’s barometer is showing the median time on the market dropped to just 26 days in June, the shortest time on record. In some hot housing markets, homes were falling under contract in 11 days or less.

Denver homes sold in six days or fewer in June; Seattle’s median was nine days; Portland was 10 days; and Boston was 11 days, according to Redfin.

But some cities are seeing longer selling times. For example, the median time on the market for homes in Brownsville, Texas was 122 days; Myrtle Beach, S.C., was 105 days; Miami was 75 days; and metro New York 68 days, according to June data from realtor.com®, which is based off of information from local MLSs nationwide.

The strength of the local economy, employment and income growth, and low inventories of homes for sale compared to demand are all factors that lead to faster selling times, according to economists.

Source: “Selling Times Reaching New Lows,” The Seattle Times (July 28, 2015) and “Home Prices Reach an All-Time High,” REALTOR® Magazine Daily News (July 23, 2015)