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

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.

Commercial brokers made more money than ever last year

Nov 15, 2018 via housingwire.com Agents, brokers and appraisers working in commercial real estate made more money last year than ever before, despite the fact that tight inventories have slowed transactions. According to a survey by the National Association of Realtors, professionals working in the commercial real estate market last year raked in an average of $150,700 - about $30,000 more than they made the year before.

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.

Cloudvirga appoints new chief customer success officer

Nov 15, 2018 via housingwire.com Cloudvirga announced that Jesse Decker has joined the company as its chief customer success officer. Decker comes to the company with more than two decades of experience overseeing enterprise technology transformations and customer success programs.

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.

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. […]

Views of Homes in Crystal City and Long Island City Spike After Amazon HQ2 News Reports

Nov 9, 2018 via redfin.com Potential Investors Are Looking for Homes to Rent to Amazon Employees The post Views of Homes in Crystal City and Long Island City Spike After Amazon HQ2 News Reports appeared first on Redfin Real-Time.

The 'Best House on the Block' Could be Yours!

Nov 9, 2018 via redfin.com A typical 1950s rambler was completely overhauled by designer Lauren Liess for new show, 'Best House on the Block' The post The ‘Best House on the Block’ Could be Yours! appeared first on Redfin Real-Time.

With Markets Shifting, Should You Invest in Real Estate Now--Or Wait to Buy?

Nov 9, 2018 via biggerpockets.com If you want to make the best decision, you have to consider all the facts. Before I make a black or white suggestion, let's take a second to consider several market factors, strategies, and possibilities. There just may be a way to invest now and still be primed to take advantage if the market crashes later. View the full article: With Markets Shifting, Should You Invest in Real Estate Now--Or Wait to Buy? on The BiggerPockets Blog. This content is Copyright (C) 2017 BiggerPockets, Inc. All Rights Reserved.

Redfin: These inland real estate markets are heating up

Nov 9, 2018 via housingwire.com Affordable inland real estate markets are heating up as prospective buyers turn away from expensive coastal markets. Redfin lists which cities are outperforming the rest. Take a look here.

Homebuilders are facing a make-or-break level, according to charts

Nov 9, 2018 via cnbc.com The homebuilders are getting crushed this year. They now face a make-or-break level, says Todd Gordon, founder of TradingAnalysis.com.

Appraisal experts: Here's how you can best prepare your borrower

Nov 9, 2018 via housingwire.com Borrowers often have considerable expectations when it comes to their home's estimated value, and navigating these can be tough for both the loan officer and the appraiser. Experts from two appraisal management companies recently discussed how to best prepare a borrower for an appraisal the National Reverse Mortgage Lenders Association conference in San Diego, and here's what they said.

Akron, Richmond and Buffalo Among the Eight Inland Housing Markets that are Heating Up as the Coasts Cool

Nov 9, 2018 via redfin.com While expensive coastal markets on the coasts like Seattle and San Jose are cooling off, with homes lingering on the market longer than this time last year as bidding wars become less common, some smaller, affordable inland metro areas are heating up. Atlanta, Akron, Ohio and Rochester, New York are a few of the metro […] The post Akron, Richmond and Buffalo Among the Eight Inland Housing Markets that are Heating Up as the Coasts Cool appeared first on Redfin Real-Time.

Can't afford college? Want help paying off those student loans? Move to one of these 5 cities

Nov 9, 2018 via themortgagereports.com Having trouble affording that college education or paying off your student loans? Apparently, five American cities will help you do it.

Will Real Estate Agents Be Made Obsolete by 2025?

Nov 9, 2018 via biggerpockets.com Once upon a time, there was no internet. Brokers had exclusive access to listing data. Everything was offline. Things are completely different now. View the full article: Will Real Estate Agents Be Made Obsolete by 2025? on The BiggerPockets Blog. This content is Copyright (C) 2017 BiggerPockets, Inc. All Rights Reserved.

Manafort was in default on Trump Tower condo when he forfeited it in plea -- now bank wants a piece

Nov 8, 2018 via cnbc.com UBS Bank is asking a federal judge for a hearing to recognize and adjudicate that bank's interest in Paul Manafort's condo in the landmark building owned by President Donald Trump on Fifth Avenue in New York.

This map shows where Sears is closing stores next

Nov 8, 2018 via cnbc.com The 40 Sears and Kmart locations are set to close in February of next year, with liquidation sales starting late next week.

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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