Investors banking on growing home and rental prices for high returns bought 18.2% of all homes purchased in Q3 2021, up from 16.1% in Q2 and 11.2% year-over-year (YOY), according to a new Redfin report. Real-estate investors purchased a record 90,215 homes, totaling nearly $64 billion and up 80.2% YOY, the second-largest increase on record. Single-family homes made up nearly three-quarters of those purchases, an all-time high, while low-priced properties accounted for only 36%. The typical home purchased by investors cost $438,770. More than 75% of homes purchased by investors were paid for completely in cash. “Increasing home prices fueled by an intense housing shortage have created opportunities for investors to reap big profits,” said Redfin Senior Economist Sheharyar Bokhari.…
Houses are going from listing to contract faster, at a time in the selling cycle when they are usually slowing down. According to Redfin’s newest Housing Market Update, one-third of homes that sold in the past four weeks went under contract within seven days of hitting the market. The time it takes for a home to go under contract has been dropping for the past six weeks, despite the fact that the market usually begins to slow in the fall. Thirty-three percent of homes sold had an accepted offer within one week of listing, a 30% increase year-over-year (YOY) and up 20% from 2019. Forty-five percent of homes sold had an accepted offer within two weeks, up 3% from the…
A Redfin report found the number of new listings in September fell 9% year-over-year (YOY). Closed home sales and active listings also dropped — by 5% and 19% YOY — respectively. September marked the fourteenth month of consecutive double-digit price increases, with the median price of homes sold at $376,800, up 14% from the previous year. It was the slowest growth rate since December 2020. “The severe lack of inventory is restricting home sales,” said Redfin Chief Economist Daryl Fairweather. “Even though plenty of people bought homes last year, many homebuyers waited while the pandemic went from bad to worse and remote-work policies were finalized. The homebuyers who are just beginning their search are finding that the well has run…
Monthly mortgage payments for the average homebuyer rose $50 over the last six weeks. Redfin’s Housing Market Update reported that, despite concerns about affordability and price, homes are still selling fast, with about half being sold within two weeks. The $50 increase is a result of prices increasing 12% year-over-year. Homes are on average selling about 1% above asking price, though listings with price drops are increasing slightly. The number of homes sold above list price was up 13% year-over-year to 47%, but the smallest share since April. “Mortgage rates and asking prices are both on the rise, which translates to higher housing costs,” said Redfin Chief Economist Daryl Fairweather. “For now, mortgage rates are still hovering near 3%, and…
More than half of respondents to a Realtor.com survey said they considered natural disasters when deciding where to live. Millennials and Gen Z were particularly wary of potential disasters when choosing a home. Disaster fears have grown over the last five years, with 47% of homeowners becoming more concerned over time. Of current homeowners, 62% expressed fears about the threat of natural disasters to their homes. The most concerned demographics were recent buyers, Millennials, Gen X, and urban homeowners. These groups also reported the most growth in their fears over the last five years. Baby Boomers, the Silent Generation, and rural homeowners weren’t as worried overall; half said they weren’t concerned at all. More than half of Millennial and Gen…
Home sales dropped 6% year-over-year in August, down 1.4% from July, a Redfin report found. It’s the first annual decline in home sales in 15 months. But prices are still high, up 16% year-to-year. Median prices increased in almost all of the largest metros tracked by Redfin, though Milwaukee, WI, and Bridgeport, CT both declined. The median price nationally for homes sold was $380,271. Austin, Phoenix, and Salt Lake City saw the largest spikes in their median prices, up 36%, 25%, and 24%, respectively. “When it comes to home prices in this market, what goes up stays up. That’s especially true in the Sun Belt; home prices are up more than 20% from last year in Austin and Phoenix,” Redfin…
Good Morning! Today is Monday, September 13. Democratic Senators returning from a week long break are considering a compromise on the $3.5 trillion spending bill. The Federal Reserve said continuing inflation comes from unusually high prices for goods like electronics and cars. Supreme Court Judge Amy Coney Barrett said she’s worried the public sees the Court as a partisan body, while refusing to comment on the unsigned Texas abortion ruling. And in mortgage and housing news… Bidding-War Rates Hit New Low: A Redfin analysis found 58.8% of home offers faced competition, the lowest rate in 2021. Forbearances Down: After dropping last week, the total number of mortgages in active forbearance declined another 2% this week, according to Black Knight. Love Letters: Prospective homebuyers are writing “love letters” to get an…
In another sign that the red-hot housing market may be returning to earth, the number of houses caught up in buyers’ bidding wars has fallen to a 2021 low. According to a Redfin analysis, 58.8% of home offers generated a competition among buyers. That’s down from April’s peak of 74.3 percent. Redfin found that more than half of its agents still face challenges from other bidders on home offers, but that number is inching down. In July, 62.1% of offers written had competition for the home. Though it’s down, the number remains high, rivaling August 2020’s 59.4% bidding-war rate. Home prices are cooling as potential buyers back away from soaring prices and more inventory arrives on the market. Forbearance expirations…
The national median for monthly mortgage payments increased faster than rents in 25 out of 50 major U.S. metro areas, but rents are speeding up as mortgage hikes begin to slow, a Redfin report found. Average monthly rents increased 9% over the past year, reaching $1,836 in August, but median mortgage payments rose 67% faster. August’s numbers represent the seventh month in a row mortgages outpaced rents. But August also saw a dip in mortgage payment growth, dropping to $1,494, while rents continued to climb. Rent prices have exploded as would-be homeowners struggled to find affordable houses and battled cash-rich investors in bidding wars. “Record high home price growth has priced many renters out of buying, leaving many facing higher…
The pandemic – and the adoption of remote work – is driving an increased number of relocations, with the most people leaving the biggest metropolitan areas such as New York, San Francisco and Los Angeles. A Redfin analysis found that 29.4 percent of its users looked to move to another city or town in October and November, up from 25.4 percent the year before. Redfin said it’s the highest share of people looking to relocate since it started tracking the data in 2017. RankMetroNet OutflowNet OutflowLast YearPortion ofLocal UsersSearchingElsewherePortion ofLocal UsersSearchingElsewhereLast YearTop DestinationTop Out-of-StateDestination 1New York,NY37,30524,40235.2%37.1%Boston, MABoston, MA2SanFrancisco, CA33,52025,35624.0%23.0%Sacramento,CASeattle, WA3Los Angeles,CA20,82114,28318.0%16.5%San Diego,CALas Vegas,NV4Washington,DC10,2285,24613.0%10.8%Salisbury,MDSalisbury,MD5Chicago, IL5,4142,97612.3%10.2%South Bend,INSouth Bend,IN6Denver, CO4,4082,26427.7%23.1%Seattle, WASeattle, WA7Seattle, WA2,495-2,90714.1%11.2%Los Angeles, CALos Angeles,CA8Milwaukee,WI2,39579642.0%38.4%Chicago, ILChicago, IL9San Diego,CA2,256-2,11425.7%18.7%Los Angeles,CAPhoenix, AZ10Indianapolis,IN1,41635439.5%30.6%Chicago, ILChicago, IL Meanwhile, more people are…
