Category: Uncategorized

By swheeler@housingwire.com The appointment of Anthony Scaramucci adds another Goldman Sachs alum to the Trump team. Steven Mnuchin, Treasury Secretary, Gary Cohn, head of the National Economic Council, and Dina Powell, deputy national security advisor, are all former Goldman partners, while Steve Bannon, the president’s top strategist, was a vice president at Goldman Sachs in the 1980s. …read more

From:: Real Estate Wire

By Susanne Dwyer

The national median home value has careened to over $200,000 for the first time, with a 7.4 percent annual gain rocketing it to a new high of $200,400, according to the Zillow Home Value Index (ZHVI) in the June Zillow® Real Estate Market Reports. Values in 10 of the 35 major metropolitan areas assessed by Zillow are now within the $200,000 range.

Values are on a swift upswing due to low levels of supply and spiking demand. There are now 11 percent fewer homes for sale compared to one year ago, the Reports show.

“The national housing market remains red hot and shows no signs of slowing, even as some local markets like the Bay Area have noticeably cooled,” says Dr. Svenja Gudell, chief economist at Zillow. “But even in areas where the housing market has slowed, home values are at or very near peak levels, selection is limited, demand is high and competition is fierce.”

Of the markets assessed, values in 13 are still below the national median: Cleveland, Ohio ($134,600); Pittsburgh, Pa. ($137,400); Indianapolis, Ind. ($138,100); Detroit, Mich. ($141,000); St. Louis, Mo. ($148,600); Cincinnati, Ohio ($152,600); Kansas City, Mo. ($159,400); Columbus, Ohio ($162,500); San Antonio, Texas ($162,700); Charlotte, N.C. ($174,800); Houston, Texas ($178,400); Atlanta, Ga. ($179,900); and Tampa, Fla. ($185,700).

Twelve of the markets assessed, however, are far removed, with some sustaining values at least three times higher than the national median: San Jose, Calif. ($1,013,700); San Francisco, Calif., ($854,300); Los-Angeles-Long Beach-Anaheim, Calif. ($609,800); San Diego, Calif. ($548,000); Seattle, Wash. ($447,100); Boston, Mass. ($427,700); New York, N.Y. ($422,300); Washington, D.C. ($382,600); Denver, Colo. ($370,000); Sacramento, Calif. ($369,200); Portland, Ore. ($367,400); and Riverside, Calif. ($328,800).

The national median rent in the Zillow Rent Index (ZRI), meanwhile, has posted an annual gain of 1.1 percent, with the median rent totaling $1,422.

“Given these high costs and high competition, the most important thing you can do is get your finances in order so you know what you can comfortably afford, and find an agent who has experience with bidding wars and will help you stand out in a competitive market, especially if you’re buying for the first time,” Gudell says.

For more information, please visit www.zillow.com.

Suzanne De Vita is RISMedia’s online news editor. Email her your real estate news ideas at sdevita@rismedia.com.

For the latest real estate news and trends, bookmark RISMedia.com.

The post Homes Have Never Been More Valuable Than They Are Now appeared first on RISMedia.

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From:: Finance and Economy

By Susanne Dwyer

The national median home value has careened to over $200,000 for the first time, with a 7.4 percent annual gain rocketing it to a new high of $200,400, according to the Zillow Home Value Index (ZHVI) in the June Zillow® Real Estate Market Reports. Values in 10 of the 35 major metropolitan areas assessed by Zillow are now within the $200,000 range.

Values are on a swift upswing due to low levels of supply and spiking demand. There are now 11 percent fewer homes for sale compared to one year ago, the Reports show.

“The national housing market remains red hot and shows no signs of slowing, even as some local markets like the Bay Area have noticeably cooled,” says Dr. Svenja Gudell, chief economist at Zillow. “But even in areas where the housing market has slowed, home values are at or very near peak levels, selection is limited, demand is high and competition is fierce.”

Of the markets assessed, values in 13 are still below the national median: Cleveland, Ohio ($134,600); Pittsburgh, Pa. ($137,400); Indianapolis, Ind. ($138,100); Detroit, Mich. ($141,000); St. Louis, Mo. ($148,600); Cincinnati, Ohio ($152,600); Kansas City, Mo. ($159,400); Columbus, Ohio ($162,500); San Antonio, Texas ($162,700); Charlotte, N.C. ($174,800); Houston, Texas ($178,400); Atlanta, Ga. ($179,900); and Tampa, Fla. ($185,700).

Twelve of the markets assessed, however, are far removed, with some sustaining values at least three times higher than the national median: San Jose, Calif. ($1,013,700); San Francisco, Calif., ($854,300); Los-Angeles-Long Beach-Anaheim, Calif. ($609,800); San Diego, Calif. ($548,000); Seattle, Wash. ($447,100); Boston, Mass. ($427,700); New York, N.Y. ($422,300); Washington, D.C. ($382,600); Denver, Colo. ($370,000); Sacramento, Calif. ($369,200); Portland, Ore. ($367,400); and Riverside, Calif. ($328,800).

The national median rent in the Zillow Rent Index (ZRI), meanwhile, has posted an annual gain of 1.1 percent, with the median rent totaling $1,422.

“Given these high costs and high competition, the most important thing you can do is get your finances in order so you know what you can comfortably afford, and find an agent who has experience with bidding wars and will help you stand out in a competitive market, especially if you’re buying for the first time,” Gudell says.

For more information, please visit www.zillow.com.

Suzanne De Vita is RISMedia’s online news editor. Email her your real estate news ideas at sdevita@rismedia.com.

For the latest real estate news and trends, bookmark RISMedia.com.

The post Homes Have Never Been More Valuable Than They Are Now appeared first on RISMedia.

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From:: Real Estate News

By Susanne Dwyer

The National Association of REALTORS® (NAR) Power Broker Roundtable this month discusses the advantages of and caveats about real estate agent teams.

Moderator:
Robert Bailey, Broker/Owner, Bailey Properties, Santa Cruz, Calif.; Liaison for Large Residential Firm Relations, NAR

Panelists:
Alex Milshteyn, Team Leader, Real Estate Associates, Coldwell Banker Weir Manuel Real Estate, Ann Arbor, Mich.
Mike McCann, Team Leader, Berkshire Hathaway HomeServices Fox & Roach, REALTORS®, Devon, Pa.
Tom Skiffington, President/CEO, RE/MAX 440, Quakertown, Pa.

Robert Bailey: Whoever first noted that “two heads are better than one” recognized that people working together can accomplish far more than a go-getter working alone. That’s the guiding principal behind the practice of agent teaming, a growing trend that’s taking root in our real estate industry dynamic. It was also a lively panel discussion at the recent NAR Broker Idea Exchange, attracting agents and brokers from all over the country for whom the concept held interest and promise—and so, today, we’ve invited two of the panel’s experienced speakers, and a third pioneer in agent teaming strategies, to share their views and tips. Alex, let’s begin with you. Are agent teams the future of real estate?

Alex Milshteyn: I don’t know if they’re the future for everyone, but for agents with more business than they can handle by themselves, teaming is a great strategy. I jumped into it 17 years ago, but my first hire wasn’t another agent, but an administrative assistant to manage the operations and paperwork so that I could be out seeing clients. Today, I have four assistants and five agents who helped us produce $76 million in business last year, but I didn’t hire my first agent until I simply had more leads and more clients than I could possibly serve alone.

Mike McCann: I’ll second that. Forming a team is a slow, steady process—kind of like building a family because, in a sense, you do become family, growing together, having each other’s backs, everyone pulling their load. Our team of 16 agents and six full-time assistants closed more than 700 transactions last year—and even some 450 during the worst of the last downturn—but only because we’re fully committed, not just to our clients and our brokerage, but to each other.

Tom Skiffington: Glad you mentioned the brokerage, Mike, because the brokerage plays a big part in the success of every team. I like the team approach because teams bring together people with varying strengths that help us better serve our customers. I have several times encouraged agents to team up, but not everyone is ready to work with a team, much less to lead one. I like to be involved in the hiring of team members, for example, because of possible liabilities to the brokerage. And you have to have the policies and contracts in place to support your teams and help them grow.

AM: I understand that because, in some ways, the future of teams depends on how well brokers and states can work together to create laws that protect consumers but allow teams to work most effectively.

TS: Amen to …read more

From:: Real Estate News

By Susanne Dwyer

Affording a mortgage payment is possible for many prospective homeowners. Why then, by all accounts, is unaffordability plaguing the market?

Researchers at Freddie Mac offered several takes on the answer in its latest Insight, suggesting that homebuyers having a hard time finding reasonably-priced listings are perceiving homes as unaffordable—a view that appears largely based in reality, if their only options to date have been out-of-reach stock. Moreover, the high likelihood for competition (i.e., bidding wars) is off-putting, both for first-time homebuyers and for sellers again entering the market. The latter’s hesitation, notedly, is tamping down already tight inventory.

“Thanks to very low mortgage rates, monthly mortgage payments are affordable for the average household despite currently high house prices,” says Sean Becketti, chief economist at Freddie Mac. “Nevertheless, hurdles to homeownership arise from the difficulty of finding a house. The supply of homes for sale is very tight, especially starter homes, and underwriting requirements are more rigorous than they were in the past.”

Would-be homeowners are also not confident about their prospects because their incomes have stayed relatively flat compared to home prices—more evidence making the case for unaffordability, according to the researchers. Incomes have grown by an average 2.4 percent annually since 2012; prices, however, have grown an average 6 percent.

Both incomes and prices, as well, contrast sharply depending on market. In the Kansas City, Mo., metropolitan area, for instance, the current median income is enough to afford a median-priced house in almost every zip code; in the San Francisco metropolitan area, the current median income is not enough to afford a median-priced house in any zip code.

First-time homebuyers are facing additional hurdles: a lack of awareness when it comes to costs beyond a mortgage payment (e.g., homeowners insurance, property taxes), and of savings for a down payment. Obtaining a mortgage, however, is their primary roadblock, especially for those who may not have the credit scores and/or on-paper, stable earnings needed to qualify. Student loan debt obligations, too, can adversely affect their debt-to-income (DTI) ratio. One or all obstacles are—or seem—insurmountable, further fueling a sense of unaffordability.

“Many potential first-time borrowers are stymied by variable employment and income histories and the challenge of accumulating a down payment while simultaneously paying down their student loans,” Becketti says. “In fact, a high level of household debt, particularly student debt, poses perhaps the largest obstacle to first-time homebuyers.”

Homeownership—stripped down to just the mortgage payment—is affordable, the researchers concluded, but challenged by barriers that play a hefty role in the home-buying process.

Perception, after all, is reality.

Source: Freddie Mac

Suzanne De Vita is RISMedia’s online news editor. Email her your real estate news ideas at sdevita@rismedia.com.

For the latest real estate news and trends, bookmark RISMedia.com.

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From:: Real Estate News