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Bedford Corners NY Real Estate

Northeast home sales soar 31% | Bedford Corners Real Estate

Proof that the local home sales market is very strong despite the COVID pandemic can be found in the latest statistics released today by the National Association of Realtors. NAR reports that existing-home sales in the Northeast rose by a record 30.6% in the month of July.

NAR reported that nationwide home sales continued on a strong, upward trajectory in July, marking two consecutive months of significant sales gains. Each of the four major regions attained double-digit, month-over-month increases, although the Northeast was the only region to show a year-over-year decline.

Total existing-home sales, completed transactions that include single-family homes, townhomes, condominiums and co-ops, jumped 24.7% from June to a seasonally-adjusted annual rate of 5.86 million in July. The previous record monthly increase in sales was 20.7% in June of this year. Sales as a whole rose year-over-year, up 8.7% from a year ago (5.39 million in July 2019).

“The housing market is well past the recovery phase and is now booming with higher home sales compared to the pre-pandemic days,” said Lawrence Yun, NAR’s chief economist. “With the sizable shift in remote work, current homeowners are looking for larger homes and this will lead to a secondary level of demand even into 2021.”

The median existing-home price for all housing types in July was $304,100, up 8.5% from July 2019 ($280,400), as prices rose in every region. July’s national price increase marks 101 straight months of year-over-year gains. For the first time ever, national median home prices breached the $300,000 level.

Total housing inventory at the end of July totaled 1.50 million units, down from both 2.6% in June and 21.1% from one year ago (1.90 million). Unsold inventory sits at a 3.1-month supply at the current sales pace, down from 3.9 months in June and down from the 4.2-month figure recorded in July 2019.

Yun notes these dire inventory totals have a substantial effect on sales.

“The number of new listings is increasing, but they are quickly taken out of the market from heavy buyer competition,” he said. “More homes need to be built.”

Last week, NAR released its latest data for metro home prices, which found that in 2020’s second quarter, median single-family home prices saw a 96% increase when compared to a year earlier.

Properties typically remained on the market for 22 days in July, seasonally down from 24 days in June and from 29 days in July 2019. Sixty-eight percent of homes sold in July 2020 were on the market for less than a month.

First-time buyers were responsible for 34% of sales in July, down from 35% in June 2020 and up from 32% in July 2019. NAR’s 2019 Profile of Home Buyers and Sellers, released in late 2019, revealed that the annual share of first-time buyers was 33%.

Individual investors or second-home buyers, who account for many cash sales, purchased 15% of homes in July, up from both 9% in June 2020 and from 11% in July 2019. All-cash sales accounted for 16% of transactions in July, equal to the percentage in June 2020 and down from 19% in July 2019.

Distressed sales—foreclosures and short sales—represented less than 1% of sales in July, down from 3% in June up from 2% in June 2019.

“Homebuyers’ eagerness to secure housing has helped rejuvenate our nation’s economy despite incredibly difficult circumstances,” said NAR President Vince Malta, broker at Malta & Co., Inc., in San Francisco. “Admittedly, we have a way to go toward full recovery, but I have faith in our communities, the real estate industry and in NAR’s 1.4 million members, and I know collectively we will continue to mount an impressive recovery.”

Realtor.com’s Market Hotness Index, measuring time-on-the-market data and listing views per property, revealed that the hottest metro areas in July were Topeka, KA; Rochester, NY; Burlington, NC; Columbus, OH and Reading, PA.

According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage decreased to 3.02% in July, down from 3.16% in June. The average commitment rate across all of 2019 was 3.94%.

Single-family and Condo/Co-op Sales

Single-family home sales sat at a seasonally-adjusted annual rate of 5.28 million in July, up 23.9% from 4.26 million in June, and up 9.8% from one year ago. The median existing single-family home price was $307,800 in July, up 8.5% from July 2019.

Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 580,000 units in July, up 31.8% from June and equal to a year ago. The median existing condo price was $270,100 in July, an increase of 6.4% from a year ago.

“Luxury homes in the suburbs are attracting buyers after having lagged the broader market for the past couple of years,” Yun said. “Single-family homes are continuing to outperform condominium units, suggesting a preference shift for a larger home, including an extra room for a home office.”

Regional Breakdown

For the second consecutive month, sales for July increased in every region and median home prices grew in each of the four major regions from one year ago.

July 2020 existing-home sales in the Northeast rocketed 30.6%, recording an annual rate of 640,000, a 5.9% decrease from a year ago. The median price in the Northeast was $317,800, up 4.0% from July 2019.

Existing-home sales jumped 27.5% in the Midwest to an annual rate of 1,390,000 in July, up 10.3% from a year ago. The median price in the Midwest was $244,500, an 8.0% increase from July 2019.

Existing-home sales in the South shot up 19.4% to an annual rate of 2.59 million in July, up 12.6% from the same time one year ago. The median price in the South was $268,500, a 9.9% increase from a year ago.

Existing-home sales in the West ascended 30.5% to an annual rate of 1,240,000 in July, a 7.8% increase from a year ago. The median price in the West was $453,800, up 11.3% from July 2019.

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June construction prices rise | Bedford Corners Real Estate

Prices paid for goods used in residential construction increased 1.9% in June (not seasonally adjusted) according to the latest Producer Price Index (PPI) report released by the Bureau of Labor Statistics. It is the second consecutive monthly increase since the index declined three months straight by a total 5.4%.

The index has decreased 3.0% year-to-date (YTD), five times the magnitude of the prior record for a June YTD decrease (-0.6% in 2009). Prices paid for goods used in residential construction have only fallen four times between January and June since 2000.Well when buying real estate it also includes important parts like garage door.Price of garage door may vary,So you might get confused which garage door to buy! Don’t worry check over here and you will able to clear all your doubts here.

The increase in prices paid for goods used in residential construction was led by a 12.9% increase in softwood lumber prices. Since decreasing 10.8% in April, softwood lumber prices have risen 16.5% and are now at the highest level since July 2018—the peak of the early- to mid-2018 runup. Although the YTD percentage increase in prices paid for softwood lumber is roughly two-thirds of the increase seen over the same period in 2018, timing of PPI data collection suggests that a recent, sharp advance in prices will be captured in the July PPI report.

Prices paid for gypsum products climbed 0.6% in June after increasing 1.5% in May (seasonally adjusted). The price index for gypsum products has risen 0.8% over the past 12 months and is 7.7% lower than the most recent peak reached in March 2018.

Even after the monthly increase, gypsum product prices have declined 2.5% YTD. Prices fell by 3.9% over the same period in 2019 and are just 4.4% higher than they were to start 2017.

Nationally, prices paid for ready-mix concrete (RMC) advanced 0.1% in June (seasonally adjusted) after no change in May.

Prices rose in the Northeast and West regions by 0.6% and 4.5%, respectively, while prices paid in the Midwest (-0.4%) and South (-2.3%) decreased month-over-month.

Other changes in indexes relevant to home building and infrastructure are shown below.

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Housing hot with economy cold | Bedford Corners Real Estate

Housing Is Hot With the Economy in the Deep Freeze
Housing Is Hot With the Economy in the Deep Freeze

(Bloomberg Opinion) — No matter how you look at it, the economic fallout from the coronavirus is going to be brutal, with a projected 6.5% decline in real gross domestic product in 2020 and an unemployment rate of 9.3% at year-end, according to the Federal Reserve. In ordinary times, and without any policy response from government, a blow of this magnitude should weaken the housing market.Yet, what we’re starting to see is the very opposite. For various reasons, the supply of homes on the market continues to fall to record lows and home prices are, if anything, accelerating. For many homeowners stressed about the value of their biggest investment, it’s a welcome relief. But this signals one more hurdle for would-be millennial homebuyers as they age into their family-forming years.

The biggest reason we’re seeing home-price growth accelerating in the middle of a pandemic is that the disruption to the supply of housing is persisting longer than the disruption to demand — that is, would-be buyers. Wednesday’s weekly mortgage data showed that purchase applications rose for the eighth consecutive week and are approaching an 11-year high on a seasonally adjusted basis. Part of the reason for the quick rebound in demand is surely the decline in interest rates on mortgages to all-time lows, with few signs they are likely to rise for the foreseeable future.

But as is always the case in the housing market, supply doesn’t respond as quickly as demand. Single-family housing starts plunged in March and April, with the most recent report showing a 25% year-over-year tumble. Part of this decline is because construction in some states shutdown, and much more so in some regions than others. Single-family starts fell 73% in the Northeast but only 13% in the South. Even where construction continued, the pace slowed as builders adopted social distancing and other health measures to prevent the spread of the coronavirus.

Even as demand rebounds, homebuilders may be slow to acquire new construction lots and might hold back on increasing production after getting the scare they did in March and April. They may prefer to wait a while to make sure these revived levels of demand are sustainable, while they also shore up their balance sheets before beginning to build at the same pace as earlier this year.

Beyond the impact on construction, a little discussed factor leading to fewer homes on the market is mortgage forbearance programs put in place by banks, states and Fannie Mae and Freddie Mac. From a policy standpoint it’s great that banks and governments are helping to prevent a deluge of foreclosure as millions of people lose their livelihoods because of the pandemic. But a consequence of that policy change is that it deprives the housing market of the supply of foreclosed properties that occurs even in strong economies and solid job markets; this amounted to almost 500,000 houses in 2019.

Some homeowners may also be delaying the listing of their homes for sale because they’re sheltering-in-place, or have lost their jobs and can no longer provide income verification to buy a different home. They may also not be comfortable having potential buyers, who could be carrying the virus, walking into their homes for sales showings.

Put it all together and housing supply continues to fall. Mike Simonsen of Altos Research, who tracks real-time housing data, notes that there are only 700,000 single-family homes for sale in  U.S. compared to more than 900,000 at this time last year. Normally at this time of year the housing supply has been rising for a few months amid the traditional spring buying season, only to fall later in the year as activity slows. But that’s not what we’ve seen during the past few months, as supply continues to contract. As a result, the percentage of homes for sale with price reductions is the lowest he’s seen in his database, a leading indicator suggesting faster home-price growth in coming months.

Presumably, at some point the coronavirus crisis will pass, foreclosures will move forward again and all participants in the housing market from would-be buyers, sellers and homebuilders resume normal behavior. To the extent home prices rose too high because of supply distortions, we should see home prices leveling off or even declining. But it’s not clear that this will be a 2020 story. And in the meantime, steadily rising home prices may join steadily rising stock-market prices in the middle of a pandemic as a phenomenon that continues to flummox everyone.

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bloomberg.com

Cuomo extends halt on NYS evictions | Bedford Corners Real Estate

An aerial view of trees and buildings in New York City for an article discussing the eviction moratorium.

Faced with mounting pressure from tenant advocates, Gov. Andrew Cuomo has extended New York’s eviction moratorium another two months until August.

The measure builds on a March 20 order that prohibits residential and commercial evictions statewide through June. Now, that moratorium is in place through August 20 along with a ban on fees for late or missed rent payments during that same period.

“I hope it gives families a deep breath,” Cuomo said at a press conference announcing the extension. “Nothing can happen until August 20 and then we’ll figure out between now and August 20 what the situation is.”

Under the new executive order, a landlord cannot legally evict a tenant until the measure expires, preventing renters who are suffering a sudden financial hardship from being forced into the streets during a pandemic. The moratorium does not cancel rent payments, and tenants are still on the hook to pay back their landlords for any missed payments.

Renters who are struggling to make ends meet as a result of the COVID-19 pandemic also now have the option to put their security deposit toward paying rent—a measure New Jersey and Connecticut already allow and one that Mayor Bill de Blasio and other New York elected officials have advocated for since early April.

But there’s a catch: Those deposits must be repaid within 90 days of their usage. And if the amount of the deposit is less than a full month of rent, tenants still owe the remaining rent due that month, according to the executive order.

Cea Weaver, the campaign coordinator with Housing Justice For All, which is spearheading the push to cancel rent statewide, called the governor’s eviction moratorium extension and security deposit payments “half measures” that fail to truly protect tenants.

“It’s continuing to not face the problem,” says Weaver. “He’s ignoring the real issue—that tenants can’t pay—and just postponing the date of when there will be mass evictions.”

When asked about relief for landlords who may have difficulty making mortgage payments without rent revenue, Cuomo noted that the state is working on “relief from the banks for landlords also.” Landlord groups are not thrilled with Cuomo’s lack of details on support.

James Whelan, president of the Real Estate Board of New York, acknowledged that tenants and small retailers impacted by the pandemic “will need more time to pay their bills and more help from the federal government to do so” but those who have the ability to pay “should not get away with not paying rent.”

But paying—or not paying—rent may not be much of a choice for those who aren’t earning an income. The eviction moratorium keeps New Yorkers in their homes during a public health crisis, but crucially, it does not address the months of back rent tenants must eventually repay. Lawmakers and housing attorneys argue that there will be a “tidal wave” of eviction cases filed in the courts—potentiallyleading to mass homelessness—once that moratorium is lifted. And with COVID-19 hobbling New York’s economy, renters have few options to make up what’s owed.

Many in the state are still struggling to access unemployment benefits. And while federal stimulus checks of $1,200 have offered some relief, the one-time payment is woefully inadequate for the long-term financial burdens New York renters, homeowners, and small property owners face. (Others still, such as undocumented immigrants, don’t qualify for this aid.)

Cuomo has maintained that the eviction moratorium “solves” New York renters’ woes, and this week he doubled down on that assessment, saying that the extension and new security deposit mechanism “takes this issue off the table until August 20.” While the moratorium is a piece of the rent relief jigsaw puzzle, housing attorneys note that is it not a fullsolution.

“The governor must go farther,” says Ellen Davidson, a staff attorney with the Legal Aid Society. “We welcome the extension of the eviction moratorium, but make no mistake, it doesn’t stop tenants from being at risk.”

In March, New York Chief Administrative Judge Lawrence Marks announced a suspension on eviction proceedings in the courts, but a loophole of sorts briefly allowed landlords to file new eviction cases. Cuomo ultimately blocked those new cases by pausing the statue of limitations until May 7. That block has now been extended to June 6, according to Office of Court Administration spokesperson Lucian Chalfen.

In his latest executive order, Cuomo has banned the “initiation of a proceeding or enforcement” of evictions or a foreclosure, but only for those who are “eligible for unemployment insurance or benefits under state or federal law or otherwise facing financial hardship due to the COVID-19 pandemic for a period of sixty days beginning on June 20.” Davidson fears the language of that provision leaves undocumented immigrants, and others who don’t qualify for unemployment aid, in a vulnerable position.

“Are they supposed to out themselves as undocumented to their landlords to be protected under this provision?” Davidson questioned, who has dealt with instances of landlords calling U.S. Immigration and Customs Enforcement on undocumented tenants. “It would seem this is putting undocumented New Yorkers in danger. It’s not clear to me how I would advise a client about what to do about this provision.”

The governor’s office did not immediately clarify the provision.

In the meantime, Jay Martin, the executive director of the Community Housing Improvement Program (CHIP), says greater federal support, such as additional stimulus aid and emergency housing vouchers, are sorely needed to help renters and landlords alike.

“New York State leaders are doing what they can and must to avoid a housing crisis in New York,” said Martin. “But it is past time for the federal government to step up and provide renters and building owners with the relief they need. If they do not millions of New Yorkers will suffer.”

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ny.curbed.com

Cuomo taxes lead to NYS flight | Bedford Corners Real Estate

The mass exodus of New Yorkers leaving the Empire State has reached a new fevered pitch, with nearly 80,000 choosing to move out to cheaper pastures, according to a new study.

But where are they going?

Whether it’s the high costs of living, a lack of well-paying jobs, or poor Northeastern weather, the population in New York State dropped by 76,790 between 2018 and 2019, according to the latest data from the U.S. Census Bureau.

The number represents a 0.4 percent drop in the state’s population year-to-year, which has dropped by nearly 1.5 million in the past decade.

According to the website Zippia , which used data from the Census to determine where New Yorkers are landing, the most popular destinations are New Jersey, Pennsylvania, Florida, California, Connecticut, and North Carolina.

“New York, New York, what a wonderful place, except for the people who left the Big Apple last year that is. New York may be a cultural and economic hub in the United States,” Zippia stated. “However, it comes at a steep price. No doubt those high prices are partially to blame for New York being the most quickly shrinking state in the United States.”

According to reports, the population drop may cause New York to lose up to two congressional seats by 2022, dropping it from 27 to 25 members in office.

Last year, President Donald Trump was questioned about comments he made in 2017 stating that upstate New York residents should consider moving out of the state. The commander-in-chief doubled down on those statements.

“If New York isn’t gonna treat them better, I would recommend they go to another state where they can get a great job,” Trump said on Wednesday. “I love those people. Those people are my voters. They’ve been treated very badly.”

According to New York Gov. Andrew Cuomo’s Office, the combined state/local tax rate for high-income New Yorkers is the second-highest in the country. The top one percent of taxpayer accounts for nearly half (46 percent) of State Income Tax liability. More than 95 percent of the tax increase from SALT falls on the top 20 percent of taxpayers – these taxpayers pay 87 percent of New York income taxes.

The governor said that the tax reforms encourage New York’s wealthiest to move to other states, “and even if a small number of high-income taxpayers leave the state, it would harm state revenues” and impact funding for education, healthcare, infrastructure, and a planned middle-class tax cut.

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www.dailyvoice.com/new-york/mtkisco/news

Remodeling market rising | Bedford Corners Real Estate

The National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI) posted a reading of 58 in the fourth quarter of 2019, up three points from the previous quarter (Figure 1). The RMI has been consistently above 50—indicating that more remodelers report market activity is higher compared to the prior quarter than report it is lower—since the second quarter of 2013. The overall RMI averages current remodeling activity and future indicators.

Current market conditions increased two points to 56 in the fourth quarter of 2019 (Figure 2). Among its three major components, major additions and alterations gained four points to 56, minor additions and alterations increased by one point to 54 and the home maintenance and repair component rose one point to 58.

The future market indicators gained three points to 60 in the fourth quarter (Figure 3). Calls for bids increased by three to 58, amount of work committed for the next three months gained three points to 57, the backlog of remodeling jobs jumped five points 64 and appointments for proposals increased by two points to 62.

The fourth quarter RMI reading reflects solid demand for remodeling, supported by a strong overall economy and low interest rates. Remodelers still face challenges in the market, including skilled labor shortages, making it harder to work off a backlog quickly.

For the full RMI tables, please visit www.nahb.org/rmi. For more information about remodeling, visit www.nahb.org/remodel.

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Manhattan prices drop 7.5% | Bedford Corners Homes

A report from Douglas Elliman and Miller Samuel says that the average sales price for Manhattan real estate fell 7.5% in the fourth quarter of 2019.

The average sales price fell to $1.8 million, while the median sales price fell below $1 million.

Sales of apartments priced at $5 million or more fell 38% in Q4, leaving behind a two-year supply of luxury apartments on the market.

Now, CNBC says there is an eight-month supply of unsold apartments. Out of the previous nine quarters, eight have seen a drop in real estate sales in Manhattan, a considerably pricey market.

Tax pressures and rising inventory are what brokers say may keep buyers at bay.

“I think we’ll see more of the same,” Jonathan Miller, CEO of Miller Samuel, said to CNBC. “The problem with saying that 2020 will mark the bottom is that it suggests it will go up after that. And I think we still have another couple of years of moving sideways.”

Last summer, a new mansion tax hit the multimillion-dollar apartment market in New York.

Buyers were rushing to close before the new state taxes kicked in on July 1.

The new taxes boost the previous 1% fee on sales of $1 million and above – known as a “mansion tax,” though it applies to all types of homes, not just townhouses – to 1.25% for sales priced above $2 million and 3.9% for a sale of $25 million or more. The transfer tax increases from 0.4% to 0.65%.

This means that the mansion tax makes already high-tax states, like New York, more expensive.

CNBC said there is an expected 2,000 new condos to come onto the market this year, but buyers are steering to the rental market, even in luxury.

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Home builder confidence at 10-year high | Bedford Corners Real Estate

Homebuilder confidence grew in December thanks to the nation’s low-interest rates and strong job market, according to this month’s Housing Market Index.

The National Association of Home Builders and Wells Fargo, which publish the monthly report,  revealed sentiment increased by 5 points to 75, markingthe highest reading since June of 1999.

 “Builders are continuing to see the housing rebound that began in the spring, supported by a low supply of existing homes, low mortgage rates, and a strong labor market,” said NAHB Chairman Greg Ugalde.

In December, the index measuring current sales conditions rose to 84 points, while buyer traffic grew to 58 points and sales expectations over the next six months inched forward to 79 points.

The three-month moving averages for regional HMI scores show the South grew to 76 points, the West increased to 84 points and the Midwest climbed to 63 points. However, the report indicates the Northeast declined to 61 points.

Although sentiment improved in a majority of the nation’s regions, NAHB Chief Economist Robert Dietz warns homebuilders across the country continue to grapple with affordability concerns.

“While we are seeing near-term positive market conditions with a 50-year low for the unemployment rate and increased wage growth, we are still underbuilding due to supply-side constraints like labor and land availability,” Dietz said.  “Higher development costs are hurting affordability and dampening more robust construction growth.”

NOTE: The NAHB/Wells Fargo Housing Market Index gauges builder opinions of single-family home sales and expectations, asking for a rating of good, fair or poor. Builders are also asked to rate prospective buyer traffic from very low to very high. The scores are used to calculate a seasonally adjusted index with a rating of 50 or over indicating positive sentiment.

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The rents are too damn high | Bedford Corners Real estate

The cost of rent in the U.S., particularly in certain metro areas, is too darn high.

Nearly half of U.S. rental households are spending more than the recommended 30% of their income on rent, according to a report from Apartment List. (The national rate went from 49.5% in 2017 to 49.7% in 2018.)

And according to Apartment List, “in 19 of the nation’s 25 largest metros, a household earning the median renter income would be cost-burdened by the median rent. Of the 100 largest metros, the median renter would be burdened in 64 metros.”

Among the biggest metros in the U.S., Miami has the highest cost burden rate at 62.7% — this means that 62.7% of its renters are spending more than the recommended 30% on rent. Not far behind is New Orleans at 60.1% The two largest metros in the U.S. by population, New York and Los Angeles, are at 52.2% and 56.9% respectively. Given their size, NYC and LA house the highest number of cost-burdened individuals.

Miami has the highest cost burden among the biggest metros, but California has the most cost-burdened households. (Graphic: David Foster/Yahoo Finance)
Miami has the highest cost burden among the biggest metros, but California has the most cost-burdened households. (Graphic: David Foster/Yahoo Finance)

“Certainly, the worst offenders — places like Los Angeles, Boston, San Diego, Miami — these are places where it’s not always easy to build as many houses as you’d like, but also their economies have been very strong, so the increases in rental [costs] become an unfortunate byproduct of that,” Igor Popov, chief economist at Apartment List, told Yahoo Finance.

By state, Florida has the highest cost burden rate at 56.5%. Other high cost-burdened states include New York, New Jersey, California, Colorado, Louisiana, and Connecticut — notably places along the coasts.

“We’re seeing that especially coastal cities — where adding new housing is difficult but economies are booming — those are the places where affordability issues are stacking up the most,” Popov said. “With that said, it is a national problem so even cities that aren’t necessarily in the housing affordability debate every day still have a lot of renters who are struggling.”

A building with residential apartments stands in the newly developed and exclusive Hudson Yards neighborhood in Manhattan on September 13, 2019 in New York City. (Photo: Spencer Platt/Getty Images)
A building with residential apartments stands in the newly developed and exclusive Hudson Yards neighborhood in Manhattan on September 13, 2019 in New York City. (Photo: Spencer Platt/Getty Images)

Supply and demand

Then there is San Francisco, which has a cost burden rate below the national average — despite the fact that the city has the highest rent in the country. This is because of rent control, Popov explained.

“A lot of the people who are able to live and rent in San Francisco are ones that have been in rent-controlled apartments for some time,” he said. “And so a good chunk of the city is covered by rent control. When you look at who’s actually able to rent in the market, a lot of families are able to afford it because they are basically paying below market rates.”

He continued: “The market rates in San Francisco are essentially the highest in the country. If you’re just moving to San Francisco and looking for an apartment, the prices are very high. But formally, the majority of people that are able to comfortably add rent are the ones who aren’t paying the market rate, but are usually in a rent-controlled apartment. Rent control often plays a role in these affordability numbers, often driving a wedge between the market rate that a new resident would pay, versus the rent-controlled rate the existing residents pay.”

Vineland, New Jersey, has the highest cost burden rate. (Graphic: David Foster/Yahoo Finance)
Vineland, New Jersey, has the highest cost burden rate. (Graphic: David Foster/Yahoo Finance)

Because of high rents in many of these cities, residents often turn to surrounding areas to reside for more financially feasible places to live. This is the case of Riverside, Calif., a city near Los Angeles, where the median rent accounts for approximately 36% of a person’s income.

“Riverside is actually seeing a lot of people who are migrating from the LA metro in search of more affordable options, but that demand is, in turn, driving up the price there as well,” Popov said.

‘I guess we went in the wrong direction’

Supply and demand wasn’t the only factor that affected the increase in rent-burdened households last year. Rental increases also outpaced wage growth in 2018, the first time since 2011.

“There’s a lot of factors for why that might be but on a very macro level, I think this economic expansion has been one that hasn’t [benefited] low-income households very well,” Popov said. “That shift was a bit surprising especially given that … we’ve seen a lot of high-income renters flooding in the rental market. In some ways, they’ve been padding the stats, so to speak, because they’ve come in and they’ve typically been able to afford their rentals, so they’ve made it look like things are getting better but this year, I guess we went in the wrong direction.”

From 2017 to 2018, there were nearly 300,000 more cost-burdened rental households throughout the U.S., which Popov described as “a big change in the number of people that have gone from being able to afford their housing to technically living in a place that they’re unable to afford.”

“You risk them moving away and that could both affect the economy and the economic diversity of a city when the renters move away, and you risk not being able to attract talent to grow the economy, and you risk not having basically that next generation being able to come and move to the city to keep it vibrant,” Popov said. “I think of this on a city-by-city basis and on that level, there are a lot of markets where maybe the flag isn’t being raised for the first time — maybe it’s been raised for a while.”

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https://money.yahoo.com/rent-high-america-housing-133403276.html

New homes sales up 7.2% | Bedford Corners Real Estate

Contracts for new, single-family home sales inched down 0.7% in September to a 701,000 seasonally adjusted annual rate according to estimates from the joint release of HUD and the Census Bureau. The decline came off a downwardly revised August estimate, which was decreased from an initial reading of 713,000 to a new estimate of 706,000. Year-over-year, the September estimate is 15.5% higher. Sales in September continue strength supported by lower mortgage rates. Are you looking for an Online conveyancing quote? then try My conveyancing specialist, because moving home can be a very exciting experience. It can however, also be a stressful and expensive.

Total sales for the first nine months of 2019 (527,000) were 7.2% higher than the comparable total for 2018 (491,000). We expect sales volume to continue to trend up slightly in the coming months as more new homes are built.

For the first nine months of 2019 (and relative to the first nine months of 2018), new home sales were up 12.8% in the South, 7.3% in the West, and down 10.3% in the Northeast and 10.6% in the Midwest, due to some tax reform related effects and affordability.

Compared to last month, inventory of new homes for sale declined 0.6% to 321,000 in September. It is the fourth straight decline since June 2019. The current months’ supply stands at a balanced level of 5.5.

Median new home sales price (price of a home in the middle of the distribution) dropped 7.9% in September to $299,400 compared to August ($325,200) and 8.8% lower than a year ago ($328,300). Median new home sales price dipped below $300,000 for the first time since May 2016.

About 15% of newly built home sales are priced under $200,000 in September, compared to 10% last month and 9% one year ago. While more affordable entry-level homes were sold in September, the number of new homes priced above $400,000 decreased.

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