The HomeArea.com Real Estate Market Monitor
Key Metrics and News for the Housing Industry in One Place

Market Indexes for August 2018

House Price Index

+6.08% YoY

At 266.04 (+0.26% MoM)
Historical

List Price

+7.27% YoY

At $295,000 (-1.34% MoM)
Historical

List Price Per Sqft

+6.77% YoY

At $142 (-0.70% MoM)
Historical

30yr-Fixed Mortgage

+13.52% YoY

At 4.87% (-0.20% MoM)
Historical

Active Listings

-1.91% YoY

At 1,552,420 (+1.60% MoM)
Historical

New Listings

+0.72% YoY

At 488,426 (-7.08% MoM)
Historical

Days on Market

-7.58% YoY

At 61 (+3.39% MoM)
Historical

New Construction

-4.26% YoY

At 116,900 (+3.45% MoM)
Historical

Headlines

Yardi: Rent prices fall for second month in a row

Nov 16, 2018 via housingwire.com Rent prices fell by just a dollar in October, marking a decrease in prices for the second month in a row, according to new data from Yardi Matrix. Is the colder weather to blame for the dip in prices?

Cramer says 'the housing sector's a disaster,' knocks the Fed as ignoring the data

Nov 16, 2018 via cnbc.com Jim Cramer warns that the housing sector is under pressure and says Federal Reserve officials are all but ignoring the damage.

Ginnie Mae issues new rules for servicers and issuers

Nov 16, 2018 via housingwire.com Aiming to provide more stability and integrity to the mortgage-backed securities market, Ginnie Mae on Friday released a number of new rules for mortgage servicers and issues of Ginnie Mae securities. Click through for the full details.

Homebuilder stocks are getting crushed, but one analyst says the chart looks so bad -- it's good

Nov 16, 2018 via cnbc.com While some investors are avoiding homebuilders amid rising interest rates that traditionally serve as a headwind for the economically sensitive group of stocks, others say evidence is mounting for a bounce.

Redfin: Homes keep getting cheaper

Nov 16, 2018 via housingwire.com In October, home-sale prices climbed 4.5%, however the percentage of listings that experienced a price drop of more than 1% reached an 8-year high, according to new data from Redfin. Redfin Chief Economist Daryl Fairweather said home sellers are realizing buyer demand isn't what it used to be and are lowering their prices.

Freddie Mac launches new, "green" mortgage

Nov 16, 2018 via housingwire.com Freddie Mac announced Friday that it is now offering what it calls GreenCHOICE mortgages. These mortgages will help homeowners finance home improvements for greater energy efficiency, the company explained.

Amazon's HQ2 in Queens will be 'square in the danger zone for frequent flooding'

Nov 16, 2018 via cnbc.com New research from Climate Central and Zillow shows the area could see significant coastal flooding by 2020. By 2050, extreme projections of sea level rise have low-lying buildings under water.

This building material could've saved California houses from fires, but it's rarely used in the US

Nov 16, 2018 via cnbc.com A building material known as a 3D cementitious sandwich panel can withstand flames for up to two hours.

Nearly One in Three Homes For Sale in October had a Price Drop--Highest Level Since at Least 2010

Nov 16, 2018 via redfin.com Home Inventory Continues to Grow as Sales Decline 6% Year over Year U.S. home-sale prices increased 4.5 percent in October compared to a year ago, to a median of $297,200. October’s year-over-year price increase marks a return to an overall healthy level of price growth after posting a 6.5-year low level of growth in September. […] The post Nearly One in Three Homes For Sale in October had a Price Drop--Highest Level Since at Least 2010 appeared first on Redfin Real-Time.

Almost Half of Seattle-Area Homes for Sale Dropped their Price in October, but by How Much?

Nov 16, 2018 via redfin.com The average price cut was $27,500, down from over $30,000 a year earlier On a percentage basis, price drops were the smallest we’ve ever recorded in Seattle at 3.6% Here’s another sign that the housing market in the Seattle area is rapidly cooling off: The portion of home sellers who dropped their list price hit […] The post Almost Half of Seattle-Area Homes for Sale Dropped their Price in October, but by How Much? appeared first on Redfin Real-Time.

Be wary of bargain home listings; many are too good to be true

Nov 16, 2018 via themortgagereports.com Seeing the word "bargain" in a listing doesn't make it true. In fact, according to a new analysis, in more than a third of the nation's largest housing markets, most "bargain" home listings offer little or no savings at all.

Billionaire Stephen Ross: Condos in big cities are 'overbuilt' and higher rates aren't helping

Nov 15, 2018 via cnbc.com There's an oversupply of luxury condominiums in most major cities and rising interest rates are making it harder for buyers to make deals, the developer says.

Billionaire developer Stephen Ross: Housing markets are 'overbuilt' in most parts of the country

Nov 15, 2018 via cnbc.com "It could [get worse] because there is a lot of supply," the New York developer warns.

LoanScorecard launches new solution

Nov 15, 2018 via housingwire.com LoanScorecard announced it launched a new solution designed to provide loan-level analyses for current expected credit loss provisioning reserves. The company explained SimpleCECL will replace the current "incurred loss" model and goes into effect in 2020 for SEC-filing institutions and 2021 for all other financial institutions.

Wells Fargo eliminating 900 mortgage jobs

Nov 15, 2018 via housingwire.com A few months ago, Wells Fargo revealed that it is planning to cut as many as 26,500 of its employees over the next few years as the bank works to reorganize itself amid the shifting landscape surrounding the financial services industry. And now, the first of those cuts are hitting home, right in the mortgage division. Click the headline for the full story.

FHA: No PLF changes for reverse mortgages

Nov 15, 2018 via housingwire.com The Federal Housing Administration released its 2018 Report to Congress on Thursday, revealing that the HECM program continues to be a drain on its flagship Mutual Mortgage Insurance Fund to the tune of $13.63 billion in the last fiscal year. But FHA Commissioner Brian Montgomery said the program is benefiting from policy changes made last year, and that the agency remains "optimistic that the quality of the book will continue to improve." Click the headline to read more.

Fannie Mae expands post-disaster relief services

Nov 15, 2018 via housingwire.com Natural disasters have been extremely tumultuous for many homeowners across the country, navigating a year full of hurricanes, fires and tornadoes. In response to these threats, Fannie Mae has now teamed up with Clearpoint Credit Counseling Solutions to expand its current relief options for homeowners.

FHA will not cut mortgage insurance premiums

Nov 15, 2018 via housingwire.com The Federal Housing Administration released details on the health of its flagship Mutual Mortgage Insurance Fund on Thursday, revealing a positive economic net worth of $34.86 billion and an acceptable ratio of capital reserves at 2.76%. The numbers are markedly better than last year, but FHA Commissioner Brian Montgomery said that doesn't mean the agency will be reducing mortgage insurance premiums any time soon. Click the headline to read more.

KB Home shares crater toward worst day since 1992

Nov 15, 2018 via cnbc.com KB Home shares fell 19 percent on Thursday, headed for its worst day of trading since August 1992.

Freddie Mac: Mortgage rates gradually increase

Nov 15, 2018 via housingwire.com Mortgage rates held steady this week, moderately increasing, according to Freddie Mac's latest Primary Mortgage Market Survey. Freddie Mac Chief Economist Sam Khater said despite recent market volatility, mortgage rates remained steady this week.

Student Debt Pushes More Homes Out of Reach for Renters

Nov 15, 2018 via zillow.com Based on today's values, the highest priced home a renting household with student debt could afford is $269,400. A renting household without student debt could go as high as $361,800. The post Student Debt Pushes More Homes Out of Reach for Renters appeared first on Zillow Research.

Many homeowners -- parents included -- are unprepared for an emergency

Nov 15, 2018 via themortgagereports.com Thinking of renovating in 2019? You might want to add a few basic safety features to your tick list. According to a new study, a large number of homeowners are woefully underprepared for emergencies -- especially house fires.

Figure Technologies debuts sale lease-back product

Nov 14, 2018 via housingwire.com Figure Technologies, led by former SoFi Founder and CEO Mike Cagney, just launched a sale lease-back product to give homeowners another way to access their home equity. The company said the Figure Home Advantage, which it calls an alternative to reverse mortgages, is ideal for those looking to bolster finances in retirement.

Mortgage Rates Flat Amid Oil Price Declines

Nov 14, 2018 via zillow.com Mortgage rates remained flat this week, as a relatively light week of economic news and data releases, teamed with a collapse in oil prices and continued stock market volatility, resulted in modest rate movements. The post Mortgage Rates Flat Amid Oil Price Declines appeared first on Zillow Research.

Goldman Sachs: Fed still has 5 rate hikes to go

Nov 14, 2018 via housingwire.com The Federal Reserve elected to raise the federal funds rate three times so far in 2018, three times in 2017 and once in 2016, but Goldman Sachs says it still has five rate hikes to go. The company noted that the Fed is unlikely to conclude the hiking cycle unless it is reassured that the labor market overshoot doesn't grow much further.

As Macy's shrinks its stores, CEO Jeff Gennette says this is what he will do with the extra space

Nov 14, 2018 via cnbc.com Macy's is testing smaller stores to save money, leaving it with room to bring in other retailers or mini fulfillment centers, according to CEO Jeff Gennette.

More housing markets pass the $1 million mark; San Jose sees the biggest jump in million-dollar homes

Nov 14, 2018 via themortgagereports.com Million-dollar homes are on the rise. According to new data, over 100 new neighborhoods joined the $1 million housing market this year, and in one city? Million-dollar houses now make up 81 percent of all housing in the area.

Mortgage applications can't stay afloat

Nov 14, 2018 via housingwire.com Mortgage applications fell 3.2% for the week ending November 9, 2018, according to new data from the Mortgage Bankers Association's weekly Mortgage Applications Survey. MBA Director of Economic and Industry Forecasts Joel Kan said recent volatility in the financial markets and increasing rates continue to adversely impact mortgage application activity.

Weekly mortgage applications drop 3.2%, hit by tanking stocks and rising rates

Nov 14, 2018 via cnbc.com While tight supply of homes for sale had been plaguing buyers for much of this year, listings are increasing, but so are prices and interest rates, weakening affordability.

Harvard: The average homeowner keeps getting older, and that's a problem

Nov 13, 2018 via housingwire.com According to a report by the Harvard Joint Center for Housing Studies, the number of households in their 70s, 80s, and 90s is "set to soar," meaning that the housing issues facing this demographic will likely present serious challenges in the years to come.

Amazon's New HQs: What We Know and What We Can Assume

Nov 13, 2018 via zillow.com Amazon has chosen Arlington, Va., and Long Island City, N.Y., to host its next headquarters. Here's what Zillow knows and expects to happen next. The post Amazon's New HQs: What We Know and What We Can Assume appeared first on Zillow Research.

Has inflation reached its peak?

Nov 13, 2018 via housingwire.com A new note from analysts at Capital Economics says that core inflation has already peaked. The analysts posit that because labor costs and dollar appreciation have only grown modestly, core inflation is "unlikely to rise much further."

Citi will move 1,100 workers earlier than planned to make way for Amazon in NYC

Nov 13, 2018 via cnbc.com The banking giant said it would move workers from its office tower in Long Island City to other locations in the first half of next year "to make room for Amazon."

Setting the 2019 budget for your mortgage business?

Nov 13, 2018 via housingwire.com In the midst of significant economic headwinds, lenders are developing their 2019 budgets, and top concerns include increasing production and decreasing turn-times. The prime driver for the next year has to be efficiency, which makes choosing the right technology partner especially important. Lenders using FirstClose are seeing efficiencies in two areas that will be critical for success in the next year: home equity fulfillment process and vendor management.

Amazon brings life to HQ2 housing markets

Nov 13, 2018 via housingwire.com Amazon has selected Long Island City, New York, and Crystal City, Virginia, as the split locations for its HQ2, and data suggest that even as early as last week, the real estate markets in these areas have boomed.

Amazon breathes life into HQ2 housing markets

Nov 13, 2018 via housingwire.com Amazon has selected Long Island City, New York, and Crystal City, Virginia, as the split locations for its HQ2, and data suggest that even as early as last week, the real estate markets in these areas have boomed.

More than 386,000 Homes at Risk of Coastal Flooding by 2050

Nov 13, 2018 via zillow.com By 2050, more than 386,000 existing homes in U.S. coastal areas are likely to be at risk of permanent inundation from sea level rise alone, or of chronic flooding from a combination of sea level rise and tides and storm surges, if greenhouse gas emissions climb unchecked. Moderate emissions cuts, roughly in line with the Paris agreement on climate, could reduce the number to a little more than 348,000, according to a new analysis and maps that pair Zillow's housing data with Climate Central's climate-science expertise. The post More than 386,000 Homes at Risk of Coastal Flooding by 2050 appeared first on Zillow Research.

Fintech Rundown: Factom, LoanLogics and more

Nov 13, 2018 via housingwire.com Another week and more tech integrations! As the industry shifts ever-closer to a truly digital mortgage experience, we present some of the integrations and program selections companies in the mortgage lending space are making.

Hip hop's favorite mansion is for sale. Live the rap mogul life for only $12.9M

Nov 13, 2018 via themortgagereports.com When you're a rap mogul, why not shoot your music videos at this waterfront mansion where the pool is almost an extension of the Miami Skyline? Get ready to see one of rap music's favorite locations.

Single women homebuyers: These are the best housing markets for you

Nov 13, 2018 via themortgagereports.com The Northeast is a great place for single, career-focused women, apparently. According to new data, all of the nation's top three markets for single female homebuyers are in this region.

The most expensive home ever sold at auction comes onto the block

Nov 13, 2018 via cnbc.com Real-estate auctions, once used for foreclosures and distressed sellers, is now moving upmarket. The number of multimillion-dollar homes being sold at auction have nearly doubled over the past year.

Bidding is on for the most expensive home ever to hit the auction block

Nov 13, 2018 via cnbc.com Real estate auctions, once used for foreclosures and distressed sellers, is now moving upmarket. The number of multimillion-dollar homes being sold at auction has nearly doubled in the past year.

Americans are unprepared for home repair costs

Nov 12, 2018 via housingwire.com As affordability concerns continue to haunt homeowners across the country, many are choosing to remain in their homes, prompting a surge in the home renovation market. However, NerdWallet's latest Home Improvement Report discovered that more than 30% of Americans have not set aside funds for these renovations.

Reverse mortgage securities continue decline

Nov 12, 2018 via housingwire.com The latest data on HECM-backed securities shows issuance continued its decline in October, and while HMBS float last month was up slightly to $55.5 billion, most of that can be attributed to highly seasoned collateral and not to new production. This means that it's only a matter of time before HMBS float falls below the $55 billion mark - a vector that indicates less liquidity for investors.

Fannie Mae plans $145 million investment in LIHTC funds

Nov 12, 2018 via housingwire.com After re-entering the Low Income Housing Tax Credit market just over a year ago, Fannie Mae is continuing its focus on affordable rental housing in underserved markets by committing $145 million in new investments in LIHTC funds. Here's a breakdown on where the money is going.

CoStar buying Cozy to turbocharge Apartments.com

Nov 12, 2018 via housingwire.com Apartments.com is already one of the top consumer websites for multifamily real estate, but the website's parent company is not comfortable resting on its laurels. CoStar Group, which owns Apartments.com along with several other prominent online rental platforms, announced recently that it is buying Cozy Services for $68 million and plans to integrate the company's online rental solutions into its websites.

HECM margins stabilize at 2%

Nov 12, 2018 via housingwire.com Margins on adjustable-rate reverse mortgage loans averaged 2% in September, according to HECM analytics provider Baseline. The average margin rate is up slightly from 1.99% in August, indicating that it is remaining relatively stable now that the industry has adapted to reverse mortgage program changes that went into effect in October 2017.

Take the 800 # customer service challenge

Nov 12, 2018 via housingwire.com Go on. Call your subservicer. Are they answering in 60 seconds or less? Or, did they leave you on hold for 10, 20, or even 45 minutes?

Attention, Real Estate Agents: Stop Worrying About Job Disruption and Start Investing NOW

Nov 11, 2018 via biggerpockets.com I'm hoping this is a wake-up call for all the real estate agents out there. It's only a matter of time before technology disrupts the real estate industry. That's why NOW is the time to invest and create multiple income streams. View the full article: Attention, Real Estate Agents: Stop Worrying About Job Disruption and Start Investing NOW on The BiggerPockets Blog. This content is Copyright (C) 2017 BiggerPockets, Inc. All Rights Reserved.

Good deed by homeless veteran leads to $350K

Nov 11, 2018 via themortgagereports.com Military veteran’s good deed doesn’t go unnoticed Kate McClure had no idea how she was going to get gas. Parked off an exit, past midnight she sat in her car. […]

Housing Prices

Monthly House Price Index

A weighted, repeat-sales index which measures average price changes on the same properties for single-family homes whose mortgages go through Fannie Mae or Freddie Mac.

Latest: 266.04 (August 2018), MoM change: +0.26%, YoY change: +6.08%

Source: Federal Housing Finance Agency

List Prices

Median List Price Latest: $295,000 (October 2018), MoM change: 0.00%, YoY change: +7.29%

Average List Price Latest: $486,000 (October 2018), MoM change: +0.54%, YoY change: +4.75%

Source: Realtor.com

Median List Price Per Square Foot

Latest: $143 (October 2018), MoM change: 0.00%, YoY change: +7.52%

Source: Realtor.com

Mortgage Rates

30-Year Fixed-Rate Loans

Only includes single-family, non-jumbo loans. For the past several decades, more than half of consumers choose 30-year, fixed-rate mortgages.

Mortgage Effective Rate Latest: 4.87% (August 2018), MoM change: -0.20%, YoY change: +13.52%

Mortgage Contract Rate Latest: 4.78% (August 2018), MoM change: +0.21%, YoY change: +14.08%

Mortgage Initial Fees Latest: 1.15% (August 2018), MoM change: 0.00%, YoY change: -10.16%

Source: Federal Housing Finance Agency

Listings

Active and New Listings

Active Listings Latest: 1,558,442 (October 2018), MoM change: -0.15%, YoY change: +1.63%

New Listings Latest: 444,032 (October 2018), MoM change: -4.14%, YoY change: +3.69%

Source: Realtor.com

Median Days on Market

Latest: 68 (October 2018), MoM change: +4.62%, YoY change: -6.85%

Source: Realtor.com

Price Changes

Price Decreases Latest: 396,998 (October 2018), MoM change: +0.19%, YoY change: +20.05%

Price Increases Latest: 23,658 (October 2018), MoM change: -5.70%, YoY change: -12.78%

Source: Realtor.com

New Construction

Housing Units Authorized by Building Permits

Only includes new, privately owned housing units in roughly 20,000 permit issuing places in the U.S. According to the Census Bureau, permit issuing places account for 98% of new construction. The data is not seasonally adjusted.

Latest: 99,400 (September 2018), MoM change: -14.97%, YoY change: -3.78%

Source: U.S. Census Bureau

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