Housing in crisis or not?
Home sales are up, inventory levels are tight, mortgage rates are low, housing starts and permits are up, and three in four major metros are considered improving markets, and various indicators imply that housing is improving as the crisis has come to an end and the nation is trying to catch its breath before it begins walking again.
Although signs point to the housing crisis being over, according to the MacArthur Foundation, 58 percent of Americans believe we’re “still in the middle” of the housing crisis and roughly one in five people believe that the worst is yet to come.
Additionally, 45 percent of current homeowners said they can see themselves renting in the future – not exactly a ringing endorsement for the housing sector. Fully 59 percent of homeowners and 67 percent of renters think “renters can be just as successful as owners at achieving the American Dream.” Three in five said “the focus of our housing policy should be fairly equally split on rental housing and housing for people to own.”
Ask an economist if the housing crisis is over, and most will tell you that it is, but consumers are not yet feeling the impact of the gains made in housing.
But is another real estate bubble on its way?
Researchers at Redfin say that the most common question their agents in the field are being asked is, “Is this another bubble?”
The company says that for now, it is not, but that there are “mini bubbles” brewing in San Francisco, Los Angeles, San Diego and Washington DC, while Las Vegas, Dallas, Chicago, and Atlanta are the least likely cities to be “bubbly.”
“Overall, the housing market this spring is hot, way hotter than any normal spring,” Redfin reports. “For the most part, this is just the natural result of supply that is at record lows thanks to the price declines of the last few years.”
What’s next for housing?
Much uncertainty remains not only because the nation is still reeling from an economic crisis, but because political theater continues to threaten gains made in the industry. While some cities may be slightly “bubbly,” according to Redfin, most of the nation is showing signs of a recovery, and while improvements have been slight, the overall health of housing is steadily getting better.
Austin tops the list of best places to buy a home
When looking to buy a home, taking the long view is important before making such a huge investment – where are the best places to make that commitment?
Looking at the bigger picture
(REALUOSO.COM) – Let us first express that although we are completely biased about Texas (we’re headquartered here, I personally grew up here), the data is not – Texas is the best. That’s a scientific fact. There’s a running joke in Austin that if there is a list of “best places to [anything],” we’re on it, and the joke causes eye rolls instead of humility (we’re sore winners and sore losers in this town).
That said, SelfStorage.com dug into the data and determined that the top 12 places to buy a home are currently Texas and North Carolina (and Portland, I guess you’re okay too or whatever).
They examined the nerdiest of numbers from the compound annual growth rate in inflation-adjusted GDP to cost premium, affordability, taxes, job growth, and housing availability.
“Buying a house is a big decision and a big commitment,” the company notes. “Although U.S. home prices have risen in the long term, the last decade has shown that path is sometimes full of twists, turns, dizzying heights and steep, abrupt falls. Today, home prices are stabilizing and increasing in most areas of the U.S.”
Average age of houses on the rise, so is it now better or worse to buy new?
With aging housing in America, are first-time buyers better off buying new or existing homes? The average age of a home is rising, as is the price of new housing, so a shift could be upon us.
The average home age is higher than ever
(REALUOSO.COM) – In a survey from the Department of Housing and Urban Development American Housing Survey (AHS), the median age of homes in the United States was 35 years old. In Texas, homes are a bit younger with the median age between 19 – 29 years. The northeast has the oldest homes, with the median age between 50 – 61 years. In 1985, the median age of a home was only 23 years.
With more houses around 40 years old, the National Association of Realtors asserts that homeowners will have to undertake remodeling and renovation projects before selling unless the home is sold as-is, in which case the buyer will be responsible to update their new residence. Even homeowners who aren’t selling will need to consider remodeling for structural and aesthetic reasons.
Prices of new homes on the rise
Newer homes cost more than they used to. The price differential between new homes and older homes has increased from 10 percent traditionally to around 37 percent in 2014. This is due to rising construction costs, scarcity of lots, and a low inventory of new homes that doesn’t meet the demand.
Are Realtors the real loser in the fight between Zillow Group and Move, Inc.?
The last year has been one of dramatic and rapid change in the real estate tech sector, but Realtors are vulnerable, and we’re worried.
Why Realtors are vulnerable to these rapid changes
(REALUOSO.COM) – Corporate warfare demands headlines in every industry, but in the real estate tech sector, a storm has been brewing for years, which in the last year has come to a head. Zillow Group and Move, Inc. (which is owned by News Corp. and operates ListHub, Realtor.com, TopProducer, and other brands) have been competing for a decade now, and the race has appeared to be an aggressive yet polite boxing match. Last year, the gloves came off, and now, they’ve drawn swords and appear to want blood.
Note: We’ll let you decide which company plays which role in the image above.
So how then, does any of this make Realtors the victims of this sword fight? Let’s get everyone up to speed, and then we’ll discuss.
1. Zillow poaches top talent, Move/NAR sues
It all started last year when the gloves came off – Move’s Chief Strategy Officer (who was also Realtor.com’s President), Errol Samuelson jumped ship and joined Zillow on the same day he phoned in his resignation without notice. He left under questionable circumstances, which has led to a lengthy legal battle (wherein Move and NAR have sued Zillow and Samuelson over allegations of breach of contract, breach of fiduciary duty, and misappropriation of trade secrets), with the most recent motion being for contempt, which a judge granted to Move/NAR after the mysterious “Samuelson Memo” surfaced.
Salt was added to the wound when Move awarded Samuelson’s job to Move veteran, Curt Beardsley, who days after Samuelson left, also defected to Zillow. This too led to a lawsuit, with allegations including breach of contract, violation of corporations code, illegal dumping of stocks, and Move has sought restitution. These charges are extremely serious, but demanded slightly less attention than the ongoing lawsuit against Samuelson.
2. Two major media brands emerge
Opinion Editorials4 days ago
The actual reasons people choose to work at startups
Business Marketing2 weeks ago
Why you must nix MLM experience from your resume
Opinion Editorials2 weeks ago
Online dating is evolving and maybe networking will too
Business Finance2 weeks ago
Bitcoins worth $300K recovered from an old zip file
Business Entrepreneur2 weeks ago
Kanception simplifies your project management with nested tasks
Business News1 week ago
2020 Black Friday shopping may break the mold
Business News2 weeks ago
Fake news? Well, what about fake reviews?
Opinion Editorials1 week ago
Work from home – are we over it?