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Real Estate Big Data

Just how concerned is your state with safety? Here are the top 10

(BIG DATA) Safety can be a broker’s biggest selling point, knowing where you stand would help with that. These are the top 10 safest states per WalletHub’s findings.

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Selling point

As realtors, it never hurts to have some more intel on why people would want to move to the state in which you do business. Thankfully, WalletHub has got you covered!

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The site put together a study outlining the safest states in America by comparing each US state across “37 key safety indicators grouped into five different categories.”

Safety first

According to this study, here are the top ten safest states in America:

10. Hawaii
9. Utah
8. Rhode Island
7. Connecticut
6. Washington
5. New Hampshire
4. Minnesota
3. Massachusetts
2. Maine
1. Vermont

Each category contains a certain number of points based on the number of safety indicators within the category and the weights of each indicator. These indicators can half full weights or double weights, and the study is set up to let you filter the rank order by each category, so you can understand how your state performs on a deeper level. Here are the study’s categories and a sample of the indicators within each one:

Personal and Residential Safety

This category gives the most weight to per-capita rates of murders, rapes, and assaults.

They also heavily weight the number of sex offenders per capita.

Other factors considered include the number of employed law-enforcement agents and firefighters, as well as the suicide rate. With 40 total points (other categories have 15 total points), personal and residential safety is the most important category in the study

Road Safety

This includes rates of road dangers, such as fatalities (including those involving pedestrians and cyclists), and DUIs. It also takes into account ratings for road quality and driving laws

Workplace Safety

This category tracks fatal and non-fatal occupational injuries and illnesses, with fatal injuries being weighed the most. Other factors include the days lost to those injuries and illnesses, and the presence of OSHA plans in the workplace.

Financial safety

Unemployment rate is the heaviest-weighted factor in this category.

However, it also includes indicators like underemployment rates, poverty rates, job security, unemployment claims and employment growth.

Other factors revolve around personal finance, such as personal bankruptcy filings, share of adults with rainy day funds, debt per income and median credit score.

Emergency Preparedness

This category includes the number of climate disasters that caused over a billion dollars in damages over the last decade, and how the total losses for those disasters are spread out across a per-capita basis

Take a look

It’s a huge study, and there’s even more data available. So, do yourself and favor and comb through it yourself to get a better idea of your state’s strengths when it comes to safety.

Where you see safety deficiencies for your state, ask yourself how getting involved with local politics or local organizations might improve those issues. Make your market a better sell and improve your brand at the same time!

#Safetyfirst

Born in Boston and raised in California, Connor arrived in Texas for college and was (lovingly) ensnared by southern hospitality and copious helpings of queso. As an SEO professional, he lives and breathes online marketing and its impact on businesses. His loves include disc-related sports, a pint of a top-notch craft beer, historical non-fiction novels, and Austin's live music scene.

Real Estate Big Data

Home sales dive 10% in May – when is a sales rebound expected?

(REAL ESTATE) Home sales plummet in May, which we all expected, but when will sales begin to recover in light of this pandemic?

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As you would expect, May marks the third consecutive month of home sales declines amidst a global pandemic. According to the National Association of Realtors (NAR), existing home sales fell 9.7% in May compared to April, down a whopping 26.6% compared to this time last year.

The silver lining is that values continue to improve, with a median existing home price of $284,600 nationally, up 2.3% from May 2019, marking the 99th month of year-over-year gains.

Inventory levels rose 6.2% from April, and are down 18.8% from May 2019. Average days on market didn’t move much, at 26 days being equal to May 2019, and down from 27 days in April.

“Sales completed in May reflect contract signings in March and April – during the strictest times of the pandemic lockdown and hence the cyclical low point,” said Dr. Lawrence Yun, NAR’s chief economist.

He added, “Home sales will surely rise in the upcoming months with the economy reopening, and could even surpass one-year-ago figures in the second half of the year.”

Sales also reflected an uptick in suburban sales over urban home sales. Dr. Yun cited work from home demands, however, anecdotally we would add some people moving away from densely populated areas in response to recent unrest.

What will ease housing conditions?

As he has observed repeatedly in recent years, Dr. Yun points to home builders. “New home construction needs to robustly ramp up in order to meet rising housing demand. Otherwise, home prices will rise too fast and hinder first-time buyers, even at a time of record-low mortgage rates.”

Mortgage Banker’s Association’s (MBA’s) SVP and Chief Economist, Dr. Mike Fratantoni’s insight pointed to inventory challenges as well: “As buyers are returning to the market, as evidenced by the strong, nine-week rebound in MBA’s purchase application data, the lack of homes for sale will be a real constraint. Although demand certainly dropped in March and April due to the crisis, supply dropped even more, and has thus far kept home prices from declining. We expect that home-price growth will pick up over the summer due to insufficient supply levels.”

Dr. Fratantoni noted, “The market is supported by strong demand from first-time homebuyers, who represented 34% of home purchases in May. Millennial-driven demand will be a tailwind for the market for the next several years.”

“Although the real estate industry faced some very challenging circumstances over the last several months, we’re seeing signs of improvement and growth, and I’m hopeful the worst is behind us,” said NAR President Vince Malta, broker at Malta & Co., Inc.

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Real Estate Big Data

Mortgage rates are still falling, demand still rising

(REAL ESTATE BIG DATA) Mortgage rates are low, so people should buy or refinance before they go up. And although inventory is low, demand is up as well.

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Mortgage rates have dropped to another record low with the fourth reduction this year and buyers are taking notice. According to Mortgage Bankers Association (MBA) economist Joel Kan, “The housing market continues to experience the release of unrealized pent-up demand from earlier this spring, as well as a gradual improvement in consumer confidence.” Mortgage applications rose 4% last week from the previous week and were 21% higher than last year, according to the MBA’s seasonally adjusted index. Nine straight weeks of gains and the highest volume in more than 11 years is significant.

A year ago the 30-year home loan averaged 3.84%, but for the week ending June 18th, the 30-year fixed-rate mortgage averaged 3.13%, down eight basis points from a week earlier. The previous record low was 3.15% at the end of last month. 15-year fixed-rate mortgages have also seen a drop. Four basis points down to an average 2.58% rate.

With numbers like this, Americans may not want to wait too much longer before locking rates in.

Lower rates have also encouraged an increase in applications for refinancing, with applications up 10% for the week and 106% higher than a year ago. “Refinancing continues to support households’ finances, as homeowners who refinance are able to gain savings on their monthly mortgage payments in a still-uncertain period of the economic recovery,” Kan said.

There is no certainty how long rates will remain this low, however. Matthew Speakman, an economist with Zillow said “Upticks in coronavirus cases across the country left market participants skeptical of the economic recovery’s sustainability. More bad news regarding the uptick in coronavirus cases would likely send rates back downward, possibly to new lows. However, rates could just as easily begin to trend upward again, particularly if key economic data or measures to contain or treat the virus show meaningful improvements.”

The housing market is seeing a rebound. COVID-19 stay at home orders mean more people are wanting to invest in their homes and buyers are ready to capitalize on low rates before they increase. Unsold inventory remains at a low, however, and until there are more houses up for sale there is a limit on how high sales activity will increase.

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Real Estate Big Data

Chinese investments in America dipped 90% in 48 months

(REAL ESTATE BIG DATA) It might have been obvious to some but as a result of our recent relationship with them, Chinese investments in American real estate are down.

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Chinese investment

Since 2016, American eyes have been on China and their investment–or lack thereof–in American real estate. According to Insight 24/7 News, Chinese investment in America has dropped from $46.5 billion to a mere $5 billion in the past four years–roughly a 90 percent decrease. Believe it or not, though, this doesn’t exactly spell doom for the future.

So how did we get here?

We’ve written at length about foreign investment in American real estate, a process from which China is not exempt. In mid-2016, Chinese investment peaked; with the election of President Trump and the ensuing trade war, these investments came under fire, leading to the rapid decrease in standing investments culminating in what we see today.

It would be easy for someone to glance at these numbers, note the disparity, and panic. After all, don’t rapid drops in real estate investment signal impending disaster?

In this case, no–though it is emblematic of a current problem. The removal of Chinese ownership of properties in the U.S. simply addresses a larger issue–that the relationship between these two countries is tenuous, and increasingly stiff regulations on foreign investment coupled with a reluctance on the Chinese government’s behalf to invest is the very recipe for declining numbers.

When one looks at the fact that many of these property grabs were illicit or based on loose regulation–especially through the optic of Chinese markets emerging as competitors rather than partners–the investments themselves begin to look problematic, making their decline seem like more of a side-effect of a system at work than a symptom of a greater illness.

However, in an age of generalizations and hot tempers, it’s important to take a minute to remember that this is not a “Chinese” issue–far from it. The people of China have about as much say in their government’s illicit affairs as we have in the caloric count of a McMuffin–often less, in fact–and while the current political climate has led to some demonization of Chinese values and investments, let’s not forget that there can be a fine line between regulation and racism.

As Insight 24/7 News points out, America has become an “inhospitable” place for Chinese investment–a byproduct of the aforementioned regulation and tariff war. This kind of hostility may be warranted, but directing it at Chinese residents or citizens never will be.

It’s also worth keeping in mind that Chinese investment in American property is likely to continue decreasing, at least for the near future. Consumer attitudes toward a Chinese market aren’t great in the wake of COVID-19, and the trade war doesn’t show any signs of stopping any time soon.

Simply put, until the U.S. government and the Chinese government can learn to trust each other again, the likelihood that either will invest in the other isn’t optimistic.

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