Housing News
New home sales round out a complex news week in real estate
In the rollercoaster that is housing news this week, home prices reach new lows in nine cities and are down to their lowest levels since March. housing starts are down and permits are up and builder confidence rates are stable.
Today, the US Commerce Department announced a jump in new home sales of 17.5%, the best month the new home sector has had since April (although sales are down 7% from this time last year). Some speculate the rise occurred due to buyers attempting to lock in rates given their rise (the average 30 year mortgage rate was 4.93% in December, up from 4.44% in November).
New home sales weren’t strong in all regions, however the West performed well (ironically in the same region where there is an inventory glut). Builders also finally caught a break after two straight years of getting pummelled in that the median price rose 8.5% from last year.
Some day we’ll be able to look back and point at the exact move that caused the proverbial house of cards to topple, but for now, we continue the long bounce at the bottom.
Austin
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?
Housing News
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.
Click here to continue reading this story…
Housing News
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
Last fall, the News Corp. acquisition of Move, Inc. was given the green light by the feds, and this month, Zillow finalized their acquisition of Trulia.
…Click here to continue reading this story…
-
Business Marketing2 weeks agoFree shipping is everywhere… how can small businesses keep up?
-
Business Marketing2 weeks agoWhy you must nix MLM experience from your resume
-
Business Marketing2 weeks agoHow many hours of the work week are actually efficient?
-
Opinion Editorials2 weeks agoThe truth about unemployment from someone who’s been through it
-
Tech News2 weeks agoStar Citizen: A cautionary tale of Kickstarter and crowdfunding
-
Business Entrepreneur20 hours agoHow can a small business beat a large competitor moving in next door?
-
Opinion Editorials5 days agoWays to socialize safely during quarantine
-
Business Finance7 days agoIs the convenience of payment apps worth the risk of fraud?
Dave Kinkade
January 27, 2011 at 7:54 am
If people continue to sit out the market before buying, they are crazy. With rates hovering this low for a brief moment in time, this real estate fire sale should have people buying. That many aren’t is troubling. Obviously the economy is a huge factor but people cannot afford to sit out any longer. When mortgage rates head up (and they certainly will) the price of the house will only be part of the consideration. The actual monthly cost of the mortgage is going to have a lot of people feeling that it is 1979 all over again.
Agent for Movoto
January 27, 2011 at 7:11 pm
You know, i’ve been seeing the # 17.5% a lot in the real estate blog world today, and it’s weird . . . . it’s the % by which new home sales are supposed to have increased, and it’s also cited as the % by which new foreclosures are supposed to have dropped (in CA, anyway). That’s according to the L.A. Times real estate page….. coincidence?
Lani Rosales
January 28, 2011 at 1:09 am
OOOH that IS an interesting coincidence….