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North Salem NY Homes

NYC rental apartment vacancies hit record high | North Salem Real Estate

  • The number of apartments for rent, or listing inventory, more than doubled over last year and set a record for the 14 years since data started being collected, according to a report from Douglas Elliman and Miller Samuel.
  • While hundreds of thousands of residents left the city in March and April in the beginning of the coronavirus pandemic, brokers and landlords hoped many would start returning in July and August.
  • July’s weakness, and what brokers say is already a slow August, suggests that Manhattan’s real estate and economic troubles could extend well into the fall or beyond.

NYC apartment vacancies hit a new all-time high as renters leave the city amid the pandemic

The number of empty apartments for rent in Manhattan soared to their highest level in recent history, topping 13,000, as residents fled the city and landlords struggled to find new tenants.

The number of apartments for rent, or listing inventory, more than doubled over last year and set a record for the 14 years since data started being collected, according to a report from Douglas Elliman and Miller Samuel. As the number of apartments listed for rent hit 13,117, the number of new leases signed fell by 23%.

July also saw the largest fall in rental rates in nearly a decade, dropping 10%. Landlords are now offering an average of 1.7 months of free rent to try to lure tenants, according to the report, which is also a recent high. The top moments in business and politics – wrapped with exclusive color and context – right in your ears

While hundreds of thousands of residents left the city in March and April in the beginning of the coronavirus pandemic, brokers and landlords hoped many would start returning in July and August, as the city’s lockdown eased and brokers could start showing apartments again. July and August are usually the busiest rental months of the year, as families get ready for school. But July’s weakness, and what brokers say is already a slow August, suggests that Manhattan’s real estate and economic troubles could extend well into the fall or beyond.

“The outbound migration is higher than the inbound migration right now,” said Jonathan Miller, CEO of Miller Samuel, the appraisal and research company. 

Manhattan apartment rentals are still far from cheap. The average rental price for a two-bedroom apartment is $4,620. Yet the so-called effective median rent — what people pay with concessions — fell 10% over last year, according to Miller. Aside from offering free rent, brokers are offering to pay broker fees, adding gift cards to Home Depot and other retailers, and offering initial cleaning services, brokers say.

All segments of the market, from the high end to the low end, saw declines. And all areas of Manhattan had a sharp drop in new leases. But the Upper East Side was hit hardest, with a 39% fall in new leases.

The surge in empty apartments in the nation’s largest rental market is likely to have ripple effects throughout the economy. Housing experts estimate that about half of Manhattan’s apartment rentals are owned by small business owners, rather than large publicly traded companies or the big, well-funded real estate families. As the small landlords lose income, they may be unable to pay property taxes, which is New York City’s largest source of revenue. A drop in property taxes could result in cuts to services, which could make New York less attractive to new residents.

“This could be a difficult couple of years for landlords,” Miller said.

read more…

https://www.cnbc.com/2020/08/13/empty-apartments-in-manhattan-reach-record-high-topping-13000.html

Mortgage rate hits record low 3.07% | North Salem Real Estate

Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing that the 30-year fixed-rate mortgage (FRM) averaged 3.07 percent, the lowest rate in the survey’s history dating back to 1971.

“Mortgage rates continue to slowly drift downward with a distinct possibility that the average 30-year fixed-rate mortgage could dip below 3 percent later this year,” said Sam Khater, Freddie Mac’s Chief Economist. “On the economic front, incoming data suggest the rebound in economic activity has paused in the last couple of weeks with modest declines in consumer spending and a pullback in purchase activity.”

News Facts

  • 30-year fixed-rate mortgage averaged 3.07 percent with an average 0.8 point for the week ending July 2, 2020, down from 3.13 percent. A year ago at this time, the 30-year FRM averaged 3.75 percent.  
  • 15-year fixed-rate mortgage averaged 2.56 percent with an average 0.8 point, down slightly from last week when it averaged 2.59 percent. A year ago at this time, the 15-year FRM averaged 3.18 percent.  
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.00 percent with an average 0.3 point, down slightly from last week when it averaged 3.08 percent. A year ago at this time, the 5-year ARM averaged 3.45 percent.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, investors and taxpayers.

CoreLogic prices up 5.8% | North Salem Real Estate

The CoreLogic Home Price Insights report features an interactive view of our Home Price Index product with analysis through  April 2020 with forecasts from May 2020 and April 2021.

CoreLogic HPI™ is designed to provide an early indication of home price trends. The indexes are fully revised with each release and employ techniques to signal turning points sooner. CoreLogic HPI Forecasts™ (with a 30-year forecast horizon), project CoreLogic HPI levels for two tiers—Single-Family Combined (both Attached and Detached) and Single-Family Combined excluding distressed sales.

The report is published monthly with coverage at the national, state and Core Based Statistical Area (CBSA)/Metro level and includes home price indices (including distressed sale); home price forecast and market condition indicators. The data incorporates more than 40 years of repeat-sales transactions for analyzing home price trends.

HPI National Change

April 2020 National Home Prices

Home prices nationwide, including distressed sales, increased year over year by 5.4% in April 2020 compared with April 2019 and increased month over month by 1.4% in April 2020 compared with March 2020 (revisions with public records data are standard, and to ensure accuracy, CoreLogic incorporates the newly released public data to provide updated results).

Forecast Prices Nationally

The CoreLogic HPI Forecast indicates that home prices will increase on a month-over-month basis by 0.3% from April 2020 to May 2020, and decline 1.3% on a year-over-year basic from April 2020 to April 2021. 2021 will mark the first year home prices are expected to decline in more than nine years

HPI National Change

“The very low inventory of homes for sale, coupled with homebuyers’ spur of record-low mortgage rates, will likely continue to support home price growth during the spring. If unemployment remains elevated in early 2021, then we can expect home prices to soften. Our forecast has home prices down in 12 months across 41 states.”

– Dr. Frank Nothaft 
Chief Economist for CoreLogic

HPI & Case-Shiller Trends

This graph shows a comparison of the national year-over-year percent change for the CoreLogic HPI and CoreLogic Case-Shiller Index from 2000 to present month with forecasts one year into the future. We note that both the CoreLogic HPI Single Family Combined tier and the CoreLogic Case-Shiller Index are posting positive, but moderating year-over-year percent changes, and forecasting gains for the next year.

HPI Case Shiller

COVID-19 Impact on
Home Prices

The home price acceleration in the April HPI was supported by increased homes sales in the first quarter of the year. Home price growth is expected to decelerate somewhat in May, with the CoreLogic HPI Forecast calling for a month-over-month increase of 0.3% compared with April 2020. Looking ahead, the CoreLogic HPI Forecast predicts an annual price decline of 1.3% from April 2020 to April 2021. In 2021, home prices are expected to decline for the first time in more than nine years. 

Home-purchase activity slowed over March and April compared to last year as shelter-in-place orders, and an unprecedented spike in unemployment, dented home-buying activity fueled by millennials. Nationally, the for-sale inventory of entry-level homes plummeted on average 25% in April. Should this trend continue, we may see an adverse effect on home sales in the near term.

HPI Coronavirus

http://stage.corelogic.com/insights-download/home-price-index.aspx

“Tight supply and pent-up demand, particularly among millennials, provides optimism for a bounce-back in the housing market purchase activity and home prices over the medium term. The next 12 to 18 months are going to be very tough times for the broader economy. As employment and economic activity begin to pick up, as it will surely do, we expect housing to be a driver in a national recovery.”

-Frank Martell
President and CEO of CoreLogic

HPI National and State Maps – April 2020

The CoreLogic HPI provides measures for multiple market segments, referred to as tiers, based on property type, price, time between sales, loan type (conforming vs. non-conforming) and distressed sales. Broad national coverage is available from the national level down to ZIP Code, including non-disclosure states.

Nationally, the year-over-year home price changed by 5.4%. No states posted an annual decline in home prices in April 2020.

The states with the highest increases year-over-year were Idaho (12%, Arizona (8.3%), Indiana (8%) and Missouri (8%).

Top Us Metro Areas HPI

HPI Top 10 Metros Change

The CoreLogic HPI provides measures for multiple market segments, referred to as tiers, based on property type, price, time between sales, loan type (conforming vs. non-conforming) and distressed sales. Broad national coverage is available from the national level down to ZIP Code, including non-disclosure states.

These large cities continue to experience price increases, with Washington D.C. leading the way at 5.7% year over year.

Market Risk Indicators

Markets to Watch: Top Markets at Risk of Home Price Decline

The Market Risk Indicator (MRI), a monthly update of the overall health of housing markets across the country, predicts a very high probability (above 60%) of a decline in home prices in Prescott, Arizona; Huntington, West Virginia; Cape Coral-Fort Myers, Florida and College Station-Bryan, Texas, over the next 12 months. It also predicts a moderate probability of a price decline (40-60%) in North Port-Sarasota-Bradenton, Florida. Huntington, West Virginia, was hit particularly hard by the recent downturn in the oil and gas industry. Typical vacation spots, like Cape Coral-Fort Myers and North Port-Sarasota-Bradenton in Florida, as well as Prescott, Arizona, are also expected to experience a decline in home property value as visitors stay home and vacation rentals are sold.

Market Conditions Indicators (MCI) Metro Area Maps – April 2020

The first map displayed is the HPI by CBSA for  April 2020.

According to the CoreLogic Market Condition Indicators (MCI), an analysis of housing values in the country’s 50 largest metropolitan areas based on housing stock, 40% of metropolitan areas had an overvalued housing market in April 2020, while 18% were undervalued and 42% were at value. The MCI analysis categorizes home prices in individual markets as undervalued, at value or overvalued by comparing home prices to their long-run, sustainable levels, which are supported by local market fundamentals such as disposable income. The MCI analysis defines an overvalued housing market as one in which home prices are at least 10% higher than the long-term, sustainable level, while an undervalued housing market is one in which home prices are at least 10% below the sustainable level.

Market Conditions Indicators (MCI) Metro Area Maps - April 2020

Summary

CoreLogic HPI features deep, broad coverage, including non-disclosure state data. The index is built from industry-leading real-estate public record, servicing, and securities databases—including more than 40 years of repeat-sales transaction data—and all undergo strict pre-boarding assessment and normalization processes.

CoreLogic HPI and HPI Forecasts both provide multi-tier market evaluations based on price, time between sales, property type, loan type (conforming vs. non-conforming) and distressed sales, helping clients hone in on price movements in specific market segments.

Updated monthly, the index is the fastest home-price valuation information in the industry—complete home-price index datasets five weeks after month’s end. The Index is completely refreshed each month—all pricing history from 1976 to the current month—to provide the most up-to-date, accurate indication of home-price movements available.

Methodology

The CoreLogic HPI is built on industry-leading public record, servicing and securities real-estate databases and incorporates more than 40 years of repeat-sales transactions for analyzing home price trends. Generally released on the first Tuesday of each month with an average five-week lag, the CoreLogic HPI is designed to provide an early indication of home price trends by market segment and for the “Single-Family Combined” tier, representing the most comprehensive set of properties, including all sales for single-family attached and single-family detached properties. The indices are fully revised with each release and employ techniques to signal turning points sooner. The CoreLogic HPI provides measures for multiple market segments, referred to as tiers, based on property type, price, time between sales, loan type (conforming vs. non-conforming) and distressed sales. Broad national coverage is available from the national level down to ZIP Code, including non-disclosure states.

CoreLogic HPI Forecasts are based on a two-stage, error-correction econometric model that combines the equilibrium home price—as a function of real disposable income per capita—with short-run fluctuations caused by market momentum, mean-reversion, and exogenous economic shocks like changes in the unemployment rate. With a 30-year forecast horizon, CoreLogic HPI Forecasts project CoreLogic HPI levels for two tiers — “Single-Family Combined” (both attached and detached) and “Single-Family Combined Excluding Distressed Sales.” As a companion to the CoreLogic HPI Forecasts, Stress-Testing Scenarios align with Comprehensive Capital Analysis and Review (CCAR) national scenarios to project five years of home prices under baseline, adverse and severely adverse scenarios at state, metropolitan areas and ZIP Code levels. The forecast accuracy represents a 95% statistical confidence interval with a +/- 2% margin of error for the index.

About Market Risk Indicator

Market Risk Indicators are a subscription-based analytics solution that provide monthly updates on the overall “health” of housing markets across the country. CoreLogic data scientists combine world-class analytics with detailed economic and housing data to help determine the likelihood of a housing bubble burst in 392 major metros and all 50 states. Market Risk Indicators is a multi-phase regression model that provides a probability score (from 1 to 100) on the likelihood of two scenarios per metro: a >10% price reduction and a ≤ 10% price reduction. The higher the score, the higher the risk of a price reduction. 

About the Market Condition Indicators

As part of the CoreLogic HPI and HPI Forecasts offerings, Market Condition Indicators are available for all metropolitan areas and identify individual markets as “overvalued”, “at value”, or “undervalued.” These indicators are derived from the long-term fundamental values, which are a function of real disposable income per capita. Markets are labeled as overvalued if the current home price indexes exceed their long-term values by greater than 10%, and undervalued where the long-term values exceed the index levels by greater than 10%.

Source: CoreLogic

The data provided are for use only by the primary recipient or the primary recipient’s publication or broadcast. This data may not be resold, republished or licensed to any other source, including publications and sources owned by the primary recipient’s parent company without prior written permission from CoreLogic. Any CoreLogic data used for publication or broadcast, in whole or in part, must be sourced as coming from CoreLogic, a data and analytics company. For use with broadcast or web content, the citation must directly accompany first reference of the data. If the data are illustrated with maps, charts, graphs or other visual elements, the CoreLogic logo must be included on screen or website.

For questions, analysis or interpretation of the data, contact Allyse Sanchez at corelogic@ink-co.com. Data provided may not be modified without the prior written permission of CoreLogic. Do not use the data in any unlawful manner. The data are compiled from public records, contributory databases and proprietary analytics, and its accuracy is dependent upon these sources.


About CoreLogic

CoreLogic (NYSE: CLGX), the leading provider of property insights and solutions, promotes a healthy housing market and thriving communities. Through its enhanced property data solutions, services and technologies, CoreLogic enables real estate professionals, financial institutions, insurance carriers, government agencies and other housing market participants to help millions of people find, acquire and protect their homes. For more information, please visit www.corelogic.com.

CORELOGIC, the CoreLogic logo, CoreLogic HPI, CoreLogic HPI Forecast and HPI are trademarks of CoreLogic, Inc. and/or its subsidiaries.

Mortgage rates average 3.36% | North Salem Real Estate

Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing that the 30-year fixed-rate mortgage (FRM) averaged 3.26 percent.

“Mortgage rates stayed at or near record lows for the fifth straight week and homeowners are taking advantage with refinance activity remaining high,” said Sam Khater, Freddie Mac’s Chief Economist. “Although purchase demand declined thirty-five percent year-over-year in mid-April, demand has improved modestly over the last three weeks.”

News Facts

  • 30-year fixed-rate mortgage averaged 3.26 percent with an average 0.7 point for the week ending May 7, 2020, up from last week when it averaged 3.23 percent. A year ago at this time, the 30-year FRM averaged 4.10 percent.  
  • 15-year fixed-rate mortgage averaged 2.73 percent with an average 0.7 point, down from last week when it averaged 2.77 percent. A year ago at this time, the 15-year FRM averaged 3.57 percent.  
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.17 percent with an average 0.3 point, up from last week when it averaged 3.14 percent. A year ago at this time, the 5-year ARM averaged 3.63 percent.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.

Mortgage rates rise to 3.88% | North Salem Real Estate

 Here’s how mortgage rates have changed this week The benchmark 30-year fixed-rate mortgage rose this week to 3.88 percent from 3.77 percent, according to Bankrate’s weekly survey of large lenders. The rise in rates may be partly due to constrained capacity at the nation’s mortgage lenders, which are coping with a more than four-fold increase in applications as rates have plunged during the coronavirus pandemic.

The rates that Bankrate collects each week are national averages from larger lenders in big cities. You will probably be able to find rates lower than these averages by shopping a variety of lenders and being persistent when your phone calls to lenders take longer to be answered. Need a loan ? read the information of GTRwallet.com, you can find everything regarding loans and lenders.

Keep in mind that mortgage closings are being extended as all phases of the process are overwhelmed with additional work. For a new mortgage, it’s wise to request an interest rate lock of at least 45 days and preferably 60 days. Locks aren’t free–the longer the lock, the higher the rate you will be quoted.

These are extraordinary times for homeowners, homebuyers and lenders, so please be patient. Bankrate is here to help, with news, data and information about all aspects of mortgages and real estate, just visit <!–td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}–>
SoFi to get further information!
read more…

www.bankrate.com

New home sales surge | North Salem Real Estate

Contracts for new, single-family home sales increased 7.9% in January to a 764,000 seasonally adjusted annual rate according to estimates from the joint release of HUD and the Census Bureau. The increase came off an upwardly revised December estimate, which was revised from an initial reading of 694,000 to a new estimate of 708,000. Year-over-year, the January estimate is 18.6% higher than the same period in 2019. The three-month moving average for new home sales reached 721,000 in January, the strongest since September 2007. Sales were strong in January, supported by lower mortgage rates and historically low unemployment.

Regionally, new home sales were up 4.8% in the Northeast, 30.3% in Midwest, and 23.5% in the West, and down 4.4% in the South.

Compared to last month, inventory of new homes for sale increased 0.3% to 324,000 in January. Year-over-year, inventory of new homes for sale was 6.6% lower than a year ago (347,000). The current months’ supply fell to 5.1 in January, pointing to additional production gains.

Median new home sales price (price of a home in the middle of the distribution) rose 7.4% in January to $348,200 compared to December ($324,100) and 14.0% higher than a year ago ($305,400).

About 9% of newly built home sales are priced under $200,000 in January, compared to 11% last month and 9% one year ago. The number of new homes priced above $400,000 increased.

read more…

Low mortgage rates are clearly helping the market | North Salem Real Estate

The cheapest financing in more than three years is making it easier for first-time buyers to afford a home. A tiny bit easier.

Instead of having just enough income needed to buy a median-priced starter home at current mortgage rates, they now have a small buffer, according to Lawrence Yun, chief economist of the National Association of Realtors. Other than this, The best vacuum for pet owners, the Miele Cat & Dog Upright vacuum . I’d wish to explain a couple of features of this vacuum to assist out those that need an honest vacuum for his or her home they share with pets – a bit like me! Many folks here have a cat or dog. Immune-D, our liquid dog supplement is filled with nutrients, vitamins and minerals that dogs need to live a longer and more vibrant life. They’re cute and cuddly but leave plenty of fur everywhere the house! That’s why Miele has an upright vacuum that’s designed to wash up all that hair left by our furry friends! I’d wish to allow you to know why it’s meant for pet owners. Search here for automatic vacuum cleaner for dog hair.

In 2019’s second quarter, first-timers had 100% of the median household income to buy a home, as measured by NAR’s First-Time Homebuyer Affordability Index that crunches income, financing rates and home prices. By the third quarter, the index showed they had 105% of the income they needed.

“The low mortgage rates are clearly helping the market conditions,” Yun said in an interview with HousingWire. “Home prices consistently rising at a faster pace than people’s income growth has hurt, but because of the historically low rates, it’s providing marginal opportunities for first-time buyers.”

Lower mortgage rates compensate for higher home prices and lagging income growth because the cheaper financing lowers a buyer’s monthly payments. A Mortgage Cаlсulаtоr wіll nоt аlwауѕ ѕhоw уоu hоw much Compound іntеrеѕt рlауѕ a huge role іn сrеаtіng рауmеnt ѕсhеdulеѕ that соntrоl how muсh borrowers have to рау еасh mоnth, but іt wіll keep уоu on trасk tо undеrѕtаndіng hоw you can соntrоl your own fіnаnсіng. A mortgage has an interest rate whісh dесіdеѕ hоw much іntеrеѕt you muѕt рау in addition tо уоur principal balance. It also dеtеrmіnеѕ how muсh рrоfіt уоur lender will еаrn. Yоu MUST аlѕо think аbоut Hоw Often уоur rаtе gеtѕ applied to thе mortgage principal. Yоu саn оftеn lower уоur interest рауmеntѕ bу controlling compounding реrіоd, Click here mortgage right | moreira team for more details.

The average U.S. rate for a 30-year fixed mortgage was 3.94% in 2019, according to Freddie Mac. That’s the lowest annual average since 2016 when it was 3.65%. The average for 2020 and 2021 probably will be 3.8%, the mortgage financier said in a forecast last month.

Home prices grew 3.2% in 2019, according to the forecast. That’s a slower pace than in 2018 when the growth rate was 5.1%.

However, income growth has been lethargic. The median household income was $66,043 in November, a gain of 1.9% higher than a year ago, adjusted for inflation, according to Sentier Research.

read more…

10 Cities Where It’s Becoming More Affordable to Buy a Home | North Salem Real Estate

more-affordable-less-affordable
Allentown, PA: Ultima_Gaina/iStock; Tulsa, OK: Sean Pavone/iStock

After nearly a decade of ever-escalating home prices and frenzied bidding wars, many buyers are wondering if finding an affordable piece of real estate has become about as likely as discovering a mint condition Honus Wagner baseball card in your stuff drawer, a double eagle coin on your dresser, or a unicorn in your driveway.

But wait! The list of markets where folks can score a home without shattering  the bank is, in fact, growing. About 81% of housing markets have become more affordable since the beginning of the year, according to a realtor.com® report.

Reality check: This doesn’t necessarily mean that it’s suddenly a cinch to become a homeowner in these areas, only that it’s getting a little better for tapped-out buyers. And in a hot market, every little bit helps.

So we decided to take a deep dive into where home affordability is increasing—and decreasing—the most. To figure this out, we looked at home prices as well as local household income in the 100 largest metropolitan areas in the third quarter of the year.* (Metros include the main city and the surrounding towns, suburbs, and smaller cities.)

So what’s driving the more affordable side of the equation?

“Mortgage rates are much lower than they were, and incomes have actually grown this year for most Americans,” says George Ratiu, realtor.com®’s senior economist. “Those two things combined have led to an improvement in affordability for home buyers.”

Nationally, affordability rose the most in predominantly midsized cities, many in the Midwest and South. These places tend to have strong economies and job markets and a larger supply of available homes for sale.

With the potential to make good money, more buyers in these areas are positioned to become homeowners or to trade up to nicer residences.

In most of these markets, millennials looking for homes where they can raise growing families are still competing with Generation Xers searching for move-up residences, and baby boomers wanting to find their forever abodes.

But in most cases, inventory’s not plunging by the double digits, which leads to insane price increases. (The one exception on our list was Jackson, MS, No. 8, where the number of homes for sale was down a steep 14.5% in October compared to a year ago.)

The inventory situation is trending in a whole different direction, however, in markets where homes are becoming less affordable.

Affordability primarily dropped in smaller cities with good job markets—places that are growing in popularity with cost-conscious buyers from other parts of the country. These cities tend to be far from the bigger, more expensive metros.

The influx of new residents is putting the squeeze on inventory, meaning that the number of homes for sale plummets and that prices spike.

“Before the recession, a lot of young professionals flocked to coastal cities looking for better-paying jobs and an urban lifestyle,” says Ratiu. “What we’re seeing now is a lot of the same professionals, approaching 40, with families and kids, are returning to their hometowns in the Midwest and South, looking for a better quality of life and a more affordable housing market.”

OK, so let’s take a deeper look—first at the places where buying a house is getting a bit easier.

Where has it become more affordable to buy a home?

More affordable metros
More affordable metrosTony Frenzel
Metropolitan areaMedian home list price**Percentage of homes available at the median incomeAnnual change in affordability score*
1. Allentown, PA$224,95059%0.14
2.Des Moines, IA$262,35056%0.13
3. Atlanta $321,10041%0.12
4. Minneapolis $339,95046%0.11
5. San Francisco$940,00018%0.11
6. Omaha, NE $279,30041%0.10
7. Charlotte, NC $335,30032%0.10
8. Jackson, MS $251,55042%0.09
9. Spokane, WA$349,75023%0.09
10. Las Vegas $320,00025%0.09

Where should buyers on a more limited budget go? They might want to head to the heart of the Rust Belt, to Allentown, PA, a one-time industrial powerhouse that fell on hard times, inspired a catchy-but-depressing Billy Joel song, and is now staging a strong comeback. Affordability in the rebounding area improved the most compared to the rest of the nation.

Already-low real estate prices in the former steel town slipped almost 1% in October compared to the previous year, according to realtor.com data.

The median price was $224,950—38.7% less than the national median of $312,000. The low prices meant that middle-income buyers in Allentown could afford 59% of the properties in the metro.

“Lately more than ever, I’ve been working with people relocating to our area,” says Allentown real estate agent Faith Brenneisen of Keller Williams Real Estate.

About a third of her clients are professionals, either starting out their careers or beginning to contemplate retirement and coming from pricier New Jersey or the Washington, DC, area suburbs.

“They come here, and they can get similar jobs with less of a commute, a better quality of life, and a more distinguished home—for a much more affordable price tag.”

She noted Allentown’s convenient location, about 90 miles west of New York City and 60 miles north of Philadelphia. The area also boasts plenty of outdoor activities, such as fishing, hiking, and skiing. New businesses are moving into Allentown’s downtown area, helping to revitalize the city.

“You can live in a three-bedroom Cape Cod home in a cute West End neighborhood in Allentown for $200,000,” says Brenneisen. “And you can walk to restaurants and shopping and theater.”

In Des Moines, which placed just behind Allentown in affordability gains, median-income buyers could afford 56% of homes on the market. That’s because a current surge of available homes, thanks to heavy sales activity, resulted in an 8.1% annual drop in prices.

Add in the metro’s booming job market, and the result is that more folks can finally get into the housing market. (The financial firm Principal Financial Group is headquartered in Des Moines, and the companies Nationwide Insurance, UPS, and John Deere have operations there.)

With 5.7% more homes for sale year over year, they don’t have to bid up the prices to score the keys to a new abode.

“More people are at a point where they’re comfortable selling,” says Paul Walter, a Des Moines-based real estate agent at Re/Max Real Estate Group.

Walter works with a lot of millennial buyers moving out of their apartments and into single-family homes as they begin to start families.

“A lot of people have enough [home] equity, and they’re comfortable enough with the economy to move up [into nicer houses]—or, if they’re retirees, to downsize.”

There were a few surprises on our list. For example, it’s getting more affordable to buy a home in—wait for it—the nation’s most notoriously expensive market, San Francisco!

But take that with a shaker full of salt. The median price in that metro is still an astronomical $940,000—well out of reach of the vast majority of those who are not millionaires. If they’re earning the median household income for the Bay Area, buyers can only afford 18% of the listings available.

In San Francisco, lower mortgage rates have played a role in boosting the area’s affordability, says Patrick Carlisle, chief market analyst in the Bay Area for the real estate brokerage Compass.

Plus, after years of sky-high annual price rises, the market has flattened, he says. Even in the United States’ tech and startup capital, home prices can’t go up forever.

“People bumped their heads up against the ceiling of what they could (or were willing to) pay,” Carlisle says,

Sorry to put a damper on things—now it’s time to zero in on places where it’s becoming harder to make that big down payment.

Where has it become less affordable to buy a home?

Less affordable metros
Less affordable metrosTony Frenzel
Metropolitan areaMedian home list price**Percentage of homes available at the median incomeAnnual change in affordability score*
1. Tulsa, OK$246,70043%-0.07
2. El Paso, TX$191,26024%-0.06
3. Winston-Salem, NC$281,00034%-0.04
4. Rochester, NY$202,55048%-0.03
5. Philadelphia$299,05044%-0.03
6. Oxnard, CA$782,0506%-0.02
7. Birmingham, AL $255,55046% -0.01
8. Bakersfield, CA$259,95034% -0.01
9. Colorado Springs, CO$427,42516%-0.01
10. Knoxville, TN$285,00031%0

Just because it’s getting a little easier to buy a home in many parts of the country, it doesn’t mean the real estate market is finally hunky-dory for aspiring homeowners who aren’t raking in high six-figure salaries.

Only 18% of markets are truly affordable for the folks who live there, according to the report. Even in metros showing signs of improvement, home prices are still well out of reach for many regular folks.

Metros where it’s becoming even harder for locals to purchase a home are more often than not seeing big inventory decreases. That lack of supply leads to surging prices—which effectively puts the kibosh on any dreams of homeownership.

“Demand has been so strong, it’s pushing demand up,” says realtor.com’s Ratiu. “More people want to buy homes than there are homes for sale.”

Tulsa‘s affordability dropped the most in the nation, as its home inventory plummeted. It nose-dived roughly 26% in October compared to the previous year, according to realtor.com data. That’s thanks to a rush of opportunistic buyers entering the market when mortgage interest rates fell.

First-time buyers and investors gobbled up whatever they could find, leading prices to shoot up by nearly 15% in October compared to the previous year. Tulsa’s median list price was $246,700 in October, according to realtor.com data.

The scarcity of available homes leads to bidding wars. Tulsa real estate agent Suzanne Rentz is now getting up to nine or 10 offers within 72 hours on properties in the most desirable areas.

“That wasn’t happening until the last 18 months,” she says. The sweet spot for local and out-of-state buyers are four-bedroom, three-bathroom, single-family homes in the suburbs (often with a pristine backyard) for $250,000.

In the rest of the metros on this list, the number of homes for sale also fell by the double digits. While that’s great for sellers who may not have to make all those needed repairs, or knock down the price, it’s bad news for buyers as they compete against one another.

The number of homes for sale also fell in all of the metros where affordability worsened the most. Inventory was down nearly 20% in El Paso, TX; 13.7% in Winston-Salem, NC; 20.1% in Rochester, NY; and 19.4% in Philadelphia in October compared to the previous year.

It also decreased 18.4% in Oxnard, CA; 13.6% in Birmingham, AL; nearly 14% in Bakersfield, CA; 17.6% in Colorado Springs, CO; and 17.1% in Knoxville, TN.

read more…

https://www.realtor.com/news/trends/its-becoming-more-and-less-affordable-to-buy-a-home-in-these-cities/

Mortgage rates average 3.75% | North Salem Real Estate

Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing that the 30-year fixed-rate mortgage (FRM) averaged 3.75 percent.

“The modest uptick in mortgage rates over the last two months reflects declining recession fears and a more sanguine outlook for the global economy,” said Sam Khater, Freddie Mac’s Chief Economist. “Due to the improved economic outlook, purchase mortgage applications rose fifteen percent over the same week a year ago, the second highest weekly increase in the last two years. Given the important role residential real estate plays in the economy, the steady improvement of the housing market is a reassuring sign that the economy is on solid ground heading into next year.”

News Facts

  • 30-year fixed-rate mortgage averaged 3.75 percent with an average 0.6 point for the week ending November 14, 2019, up from last week when it averaged 3.69 percent. A year ago at this time, the 30-year FRM averaged 4.94 percent. 
  • 15-year fixed-rate mortgage averaged 3.2 percent with an average 0.5 point, up from last week when it averaged 3.13 percent. A year ago at this time, the 15-year FRM averaged 4.36 percent. 
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.44 percent with an average 0.4 point, up from last week when it averaged 3.39 percent. A year ago at this time, the 5-year ARM averaged 4.14 percent.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.

Home prices rise to new high | North Salem Real Estate

Home prices rose to a new high in the third quarter, according to a new report from ATTOM Data Solutions, curator of a property database and property data provider of Data-as-a-Service.

Home prices rise to new high | North Salem Real Estate Single-family homes and condos sold for a median price of $270,000 in the third quarter.

Homeowners are also getting more profit than ever on the sale of their home. Homeowners who sold their home in the third quarter earned a median profit that ticked up to a post-recession high of 34.5%, up from 34.4% in the second quarter of 2019 and 34.3% in the third quarter of 2018, according to the report.

And homeowners are getting more profit on their homes not only because of rising home prices, but also they are seeing their equity rise as the average homeownership tenure hit a new high of 8.19 years in the third quarter. This is up 3% from the previous quarter and previous year, according to the report. For reference, homeownership tenure averaged 4.2 years between the first quarter of 2000 and the third quarter of 2007.

“The seven-year U.S. housing boom is back in high gear,” said Todd Teta, ATTOM Data Solutions chief product officer. “After a series of relatively small price increase quarters, home prices saw quite the uptick, seller profits rose and the problem of distressed sales continued to fade, helping to make the third quarter the strongest in four years.”

“That all happened as mortgage rates sank back to near-historic lows, which clearly powered the market upward along with stock market surges and a continued strong economy,” Teta said. “There had been signs before the latest surge of a cooling market, but they seem to have diminished, at least for now.”

But while these rising home prices are great for homeowners and sellers, it is also creating an affordability crisis for homebuyers, especially at the lower end of the market.

As housing affordability continues to be a cause of concern for the nation’s homeowners, a report from the National Association of Homebuilders indicates that many Americans now perceive the problem to be a crisis.