Top Housing Markets for 2021

Realtor.com’s top 10 housing markets for 2021 have substantial momentum from 2020 which they will carry into 2021. Still low mortgage rates throughout most of the year help these markets see price and sales growth on top of 2020’s high levels. Economic momentum from the thriving tech industry, coupled with healthier levels of supply, will position these markets for growth in 2021. This past year, we’ve all become more reliant on technology to work, learn, and maintain personal connections. The technology hubs that make this possible are thriving, as are their housing markets. Additionally, the relative stability of government jobs in the past year has driven home prices and sales in several state capitals to the top. Home buyers, particularly younger first-time buyers, looking in one of these markets should expect rising prices and heavy competition. Meanwhile, sellers will remain in a position of power, but will find themselves on the other side of the bargaining table when buying their next home.

Top 10 Housing Markets Positioned for Growth in 2021
Rank*Metro2021 Sales Growth % y/y2021 Price Growth % y/yCombined Growth
1Sacramento–Roseville–Arden-Arcade, Calif.17.2%7.4%24.6%
2San Jose-Sunnyvale-Santa Clara, Calif.10.8%10.8%21.6%
3Charlotte-Concord-Gastonia, N.C.-S.C.13.8%5.2%19.0%
4Boise City, Idaho9.8%9.1%18.9%
5Seattle-Tacoma-Bellevue, Wash.8.9%9.7%18.6%
6Phoenix-Mesa-Scottsdale, Ariz.11.4%7.0%18.4%
7Harrisburg-Carlisle, Pa.14.4%3.8%18.2%
8Oxnard-Thousand Oaks-Ventura, Calif.12.5%5.5%18.0%
9Denver-Aurora-Lakewood, Colo.12.5%5.4%17.9%
10Riverside-San Bernardino-Ontario, Calif.12.4%5.5%17.9%
United States7.0%5.7%12.7%

Ranking is based on the combined yearly percentage growth in both home sales and prices expected in 2021 among the top 100 largest markets in the country per realtor.com’s metro level housing forecast. In cases of a tie, Sales Growth y/y was used as a tiebreaker.

top housing markets 2021
Tech Titans 

A common driver of this year’s top markets is the prevalence of high paying tech jobs. Tech salaries in Sacramento, San Jose, Boise, Denver, and Seattle have driven home prices through the roof over the last several years and this trend is expected to continue in 2021. Additionally, areas such as Charlotte and Phoenix are quickly establishing themselves as rising tech hubs with a plethora of jobs in technology, as well as education, government and healthcare. In fact, the projected unemployment rate for 2021’s top markets is 7.9% compared to the national average of 8.2%. Tech-related jobs make up an average of 8.7% of the workforce in this year’s top markets list compared to 6.4% of the U.S. as a whole. 

Relative Affordability

The top markets in 2021 aren’t cheap. In fact, home prices in eight of the top 10 markets are more expensive than the average of the top 100 markets. But many are relatively affordable when compared to their nearby counterparts or offer significantly more square footage for a similar price. For example, buyers priced out of New York ($216 per sq.ft.) can find increased space and affordability in Harrisburg ($122 per sq.ft.), while buyers in Sacramento ($284 per sq.ft.) can get more bang for their buck than nearby San Francisco ($679 per sq.ft.). This is also true when comparing Oxnard ($413 per sq.ft.) and Riverside ($247 per sq.ft.) with Los Angeles ($556 per sq.ft.).  

Home to Younger Households 

On average, the top 10 markets have a larger share of younger households, aged 25 to 34, (14.1%) than the U.S. as a whole (13.5%). A market’s ability to lure millennials is a good indicator of the livability of the area including: job opportunities, dining, and entertainment. However, when it comes to millennials purchasing homes in the top 10, two trends are emerging. In half of this year’s top markets, including: Charlotte, Boise, Phoenix, Harrisburg and Riverside, millennials are already homeowners and expected to make the majority of the home purchases that drive home price growth and sales. In the other group of markets, such as San Jose, Seattle, and Denver, the high cost of living has made homeownership a difficult accomplishment, not only for millennials but for all generations. The high number of millennials in the market shows how popular these markets have become, but older, more financially established generations will be the ones purchasing the majority of the homes next year. 

State Capitals 

Half of the top markets are state capitals, including: Sacramento, Boise, Phoenix, Harrisburg and Denver. The strong government presence in these areas offers stability for their local economy and jobs markets. This is especially important after a year when a global pandemic has significantly disrupted local economies across the nation. On top of the government jobs, these areas also have strong job diversity in both the public and private sectors, including education, healthcare, technology, manufacturing and military, which is positioning them for solid growth in the future. The average GDP growth rate for the top markets is forecasted to be 5.34% in 2021, versus 4.85% for the top 100 metros. 

Key Stats for Top 10 Housing Markets in 2021 
Top 10 Markets (Avg)Largest 100 Markets (Avg)
Sales % Change YoY 2021 (projected)+13.1%+6.8%
Price % Change YoY 2021 (projected)+6.9%+4.7%
Median List Price 2020$586,200$371,500
Median List Price YoY 2019+7.6%+4.3%
Households YoY 2021 (projected)+0.98%+0.53%

2021 Top 10 Housing Markets 

1. Sacramento, CA

Median home price: $554,050
Home price change: +7.4 percent
Sales change: +17.2 percent
Combined sales and price growth: +24.6 percent

Sacramento takes first place on this year’s top markets list. Due to the increased freedom to work remotely, buyers from the San Francisco Bay Area are flocking to California’s state capital for the increased affordability, without having to completely uproot their lives in Northern California. The area draws a diverse crowd ranging from first time homebuyers to empty nesters looking to downsize. Many young families are also drawn to Sacramento for the area’s strong school system, including West Campus high school which has a 99% graduation rate and received a 10/10 on greatschools.org. When residents want a change of scenery, it’s a short trip to Lake Tahoe, wine country or San Francisco. 

2. San Jose, CA

Median home price: $1,199,050
Home price change: +10.8 percent
Sales change: +10.8 percent
Combined sales and price growth: +21.6 percent

Also located in Northern California, San Jose is the largest city in Silicon Valley. Apple, Google, Facebook, Linkedin and even realtor.com® are all within commuting distance of San Jose. Unsurprisingly, the area’s strong economy and top notch school system, including Lynbrook High School (10/10 greatschools.org), lure top tech talent from all over the country. Those looking for a change of scenery can easily drive to San Francisco or the nearby mountains. Without a ton of room for new construction, inventory in the area is tight, so serious buyers should expect to pay above asking price.  

3. Charlotte, NC

Median home price: $368,819
Home price change: +5.2 percent
Sales change: +13.8 percent
Combined sales and price growth: +19.0 percent

Rounding out the top three on this year’s top markets list is Charlotte. The area’s high quality of life, great weather, strong school system including Providence High (10/10 greatschools.org) and rich history draw a diverse mix of both young and old buyers. Millennials are beginning to transition from the downtown city center toward the suburbs as they raise families and take advantage of the increased affordability and extra space. With access to both the beach and mountains, Charlotte has something for everyone, including kayaking along the Catawba River and hiking the Carolina Thread Trail. Housing supply has been tight, but new construction is booming as builders try to meet current demand. Charlotte was No. 7 on 2018’s top markets list. 

4. Boise, ID

Median home price: $445,000
Home price change: +9.1 percent
Sales change: +9.8 percent
Combined sales and price growth: +18.9 percent

Idaho’s capital city is firmly establishing itself as a rising tech hub in the U.S. The area’s high quality of life and strong economy draw people from all over the country, with the biggest influx coming from Washington, Oregon and California. This trend has accelerated as the ability to work remotely has drawn many young workers looking for a slower pace of life, increased affordability, and access to the area’s many outdoor amenities. Boise offers residents a mild four season climate, a vibrant revitalized downtown with plenty of entertainment, as well as a plethora of restaurants and boutique shopping. Outdoor enthusiasts are drawn to the area’s adrenaline pumping outdoor activities such as white water rafting and four different ski resorts. New construction has been booming in Boise over the past few years as builders scramble to keep up with rising demand. Boise is no stranger to realtor.com®‘s Top Markets list, it was No. 1 in 2020 and No. 8 in 2019. 

5. Seattle, WA

Median home price: $629,050
Home price change: +9.7 percent
Sales change: +8.9 percent
Combined sales and price growth: +18.6 percent

Coming in fifth is Seattle, which is home to some of America’s largest and most well known companies including: Amazon, Starbucks, Costco, Microsoft and Nordstrom. The area’s booming tech scene, high quality of life, and access to both the water and mountains draws a crowd from all over the country. New and growing families will find a strong school system, including Greenwood Elementary School which scored a perfect 10/10 on greatschools.org, as well as four other schools which received scores of 9/10. Driven by high home prices and the desire for more space, buyers are beginning to search for homes further from the downtown center. This is especially true for first time homebuyers. 

6. Phoenix, AZ

Median home price: $412,260
Home price change: +7.0 percent
Sales change: +11.4 percent
Combined sales and price growth: +18.4 percent

Arizona’s state capital has become a magnet for both younger buyers looking to take advantage of the affordable cost of living, as well as retirees who want to soak up the sun. Recently, the area has seen a large influx of people from pricey West Coast markets — San Francisco, Seattle and Portland. While builders have struggled to meet the rising demand for housing, Phoenix set a record for new home permits in March, April and May, so new inventory is on the way. Phoenix offers residents all the big city amenities of shopping, dining and entertainment, without the traffic of larger metropolitan cities. Additionally, those who want to get out and hit the golf course have over 400 courses to choose from. Phoenix is a business friendly city and has a diverse list of large employers in both the public and private sectors from education, government and healthcare to technology, manufacturing and military. Phoenix was No. 5 on 2019’s top markets list. 

7. Harrisburg, PA

Median home price: $262,000
Home price change: +3.8 percent
Sales change: +14.4 percent
Combined sales and price growth: +18.2 percent

The state capital of Pennsylvania has become a hot spot for buyers looking for the quiet suburban lifestyle, more space, and increased affordability. Harrisburg is centrally located near New York, Baltimore, Washington D.C., Pittsburgh and Philadelphia. Millennials in particular have been drawn to the area as both first time homebuyers and move-up buyers looking for more space for their growing families. Harrisburg boasts a strong job market not only for government employees working at the state capital, but those in healthcare and shipping industries as well. One of the biggest draws to the area is the ability to go from downtown, to the suburbs, to more rural areas, in under 15 minutes.  

8. Oxnard, CA

Median home price: $824,000
Home price change: +5.5 percent
Sales change: +12.5 percent
Combined sales and price growth: +18.0 percent

Located north of Los Angeles on the Pacific Coast is Oxnard, Calif. The area is a mix of farmland and Pacific Coast beaches, such as Hollywood Beach — a second home market for wealthy Angelanos looking for a break from the hustle and bustle of city life. Farmers in the area grow strawberries and lima beans and the annual Strawberry Festival is a big draw for Southern California locals. Thanks to its affordability, the area has seen a boost in demand from buyers seeking relief from Los Angeles and Orange County home prices. Beach homes in the area are significantly more affordable than those in Malibu or Santa Monica, making this a popular alternative for buyers hoping to get more bang for their buck. 

9. Denver, CO

Median home price: $520,000
Home price change: +5.4 percent
Sales change: +12.5 percent
Combined sales and price growth: +17.9 percent

Colorado’s state capitol is located just outside of the Rocky Mountains. The area’s housing market has been red-hot for the last several years and builders have struggled to keep up with the high demand for housing. Though the city is rapidly expanding, it still holds much of its Old West charm, and its cost of living remains relatively affordable compared to other Western markets. Many of Denver’s residents are outdoor enthusiasts who love to take advantage of the area’s easy access to mountains, rivers and lakes. No matter the season, there is an outdoor activity closeby. Denver’s high quality of life is a major draw for many residents, as well as all the amenities of downtown. With boutique shopping, dining, and endless entertainment, the area has been supremely popular with millennials. Due to the area’s spike in demand, home prices have grown rapidly, causing many first time home buyers to search further out from the downtown center. 

10. Riverside, CA

Median home price: $475,050
Home price change: +5.5 percent
Sales change: +12.2 percent
Combined sales and price growth: +17.9 percent

Located in the Inland Empire, Riverside, Calif., is named for its location along the Santa Ana River. Riverside draws many people who want to take advantage of Southern California’s temperate weather, but don’t want to pay Los Angeles or Orange County home prices. Riverside is centrally located, just 30 minutes to the beach, mountains or desert, making it a great location for anyone that loves to be outdoors. Additionally, it’s in close proximity to Southern California’s attractions of Disneyland in Anaheim, skiing in the San Bernardino Mountains, wine tasting in Temecula or the endless entertainment in Los Angeles. Due to Southern California’s high cost of living, Riverside’s relative affordability and strong school system including Riverside Stem Academy(9/10 greatschools.org), have made it a popular destination for first time homebuyers, growing families, and retirees.   


2021 Top Housing Markets Ranked

Rank*Metro2021 Sales Growth % y/y2021 Price Growth % y/yCombined Growth
1Sacramento–Roseville–Arden-Arcade, Calif.17.2%7.4%24.6%
2San Jose-Sunnyvale-Santa Clara, Calif.10.8%10.8%21.6%
3Charlotte-Concord-Gastonia, N.C.-S.C.13.8%5.2%19.0%
4Boise City, Idaho9.8%9.1%18.9%
5Seattle-Tacoma-Bellevue, Wash.8.9%9.7%18.6%
6Phoenix-Mesa-Scottsdale, Ariz.11.4%7.0%18.4%
7Harrisburg-Carlisle, Pa.14.4%3.8%18.2%
8Oxnard-Thousand Oaks-Ventura, Calif.12.5%5.5%18.0%
9Denver-Aurora-Lakewood, Colo.12.5%5.4%17.9%
10Riverside-San Bernardino-Ontario, Calif.12.4%5.5%17.9%
11Columbus, Ohio10.3%7.6%17.9%
12Bridgeport-Stamford-Norwalk, Conn.9.7%7.8%17.5%
13Fresno, Calif.8.9%8.5%17.4%
14Los Angeles-Long Beach-Anaheim, Calif.10.0%7.3%17.3%
15Las Vegas-Henderson-Paradise, Nev.12.0%5.2%17.2%
16El Paso, Texas10.6%6.4%17.0%
17North Port-Sarasota-Bradenton, Fla.10.3%6.6%16.9%
18San Diego-Carlsbad, Calif.11.3%5.5%16.8%
19Palm Bay-Melbourne-Titusville, Fla.11.6%4.7%16.3%
20Tampa-St. Petersburg-Clearwater, Fla.8.7%7.5%16.2%
21Orlando-Kissimmee-Sanford, Fla.10.1%5.8%15.9%
22Dallas-Fort Worth-Arlington, Texas11.3%4.4%15.7%
23Kansas City, Mo.-Kan.12.1%3.5%15.6%
24Hartford-West Hartford-East Hartford, Conn.12.1%3.4%15.5%
25Jacksonville, Fla.9.4%5.0%14.4%
26Stockton-Lodi, Calif.8.2%6.1%14.3%
27Portland-Vancouver-Hillsboro, Ore.-Wash.8.1%6.2%14.3%
28Bakersfield, Calif.10.5%3.7%14.2%
29Memphis, Tenn.-Miss.-Ark.9.1%4.8%13.9%
30Charleston-North Charleston, S.C.9.5%4.3%13.8%
31McAllen-Edinburg-Mission, Texas10.0%3.6%13.6%
32Knoxville, Tenn.7.9%5.7%13.6%
33Rochester, N.Y.8.4%5.1%13.5%
34Columbia, S.C.8.1%5.4%13.5%
35Pittsburgh, Pa.9.2%4.1%13.3%
36Salt Lake City, Utah7.5%5.7%13.2%
37Austin-Round Rock, Texas8.4%4.6%13.0%
38Grand Rapids-Wyoming, Mich9.1%3.6%12.7%
39Springfield, Mass.8.1%4.2%12.3%
40Milwaukee-Waukesha-West Allis, Wis.6.3%6.0%12.3%
41Washington-Arlington-Alexandria, DC-Va.-Md.-W. Va.5.2%6.7%11.9%
42Chicago-Naperville-Elgin, Ill.-Ind.-Wis.8.3%3.5%11.8%
43New Haven-Milford, Conn.8.6%3.1%11.7%
44Deltona-Daytona Beach-Ormond Beach, Fla.5.4%6.3%11.7%
45Colorado Springs, Colo.5.4%6.2%11.6%
46Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.7.0%4.5%11.5%
47San Antonio-New Braunfels, Texas7.2%4.3%11.5%
48Louisville/Jefferson County, Ky.-Ind.7.0%4.2%11.2%
49Boston-Cambridge-Newton, Mass.-N.H.5.4%5.7%11.1%
50Baltimore-Columbia-Towson, Md.4.8%6.2%11.0%
51Greensboro-High Point, N.C.6.8%4.1%10.9%
52Albany-Schenectady-Troy, N.Y.7.1%3.7%10.8%
53Miami-Fort Lauderdale-West Palm Beach, Fla.3.7%7.1%10.8%
54Richmond, Va.6.2%4.5%10.7%
55Youngstown-Warren-Boardman, Ohio-Pa.6.1%4.5%10.6%
56Buffalo-Cheektowaga-Niagara Falls, N.Y.6.3%4.0%10.3%
57Lakeland-Winter Haven, Fla.5.1%4.9%10.0%
58Providence-Warwick, R.I.-Mass.4.5%5.5%10.0%
59Virginia Beach-Norfolk-Newport News, Va.-N.C.8.1%1.8%9.9%
60Raleigh, N.C.6.0%3.9%9.9%
61Houston-The Woodlands-Sugar Land, Texas5.3%4.6%9.9%
62Atlanta-Sandy Springs-Roswell, Ga.3.6%6.2%9.8%
63Des Moines-West Des Moines, Iowa6.9%2.8%9.7%
64San Francisco-Oakland-Hayward, Calif.1.3%8.4%9.7%
65Akron, Ohio5.3%4.2%9.5%
66New Orleans-Metairie, La.5.3%4.2%9.5%
67Cleveland-Elyria, Ohio6.7%2.7%9.4%
68Spokane-Spokane Valley, Wash.3.8%5.6%9.4%
69Baton Rouge, La.6.5%2.6%9.1%
70Durham-Chapel Hill, N.C.4.8%4.3%9.1%
71Oklahoma City, Okla.5.8%3.0%8.8%
72Syracuse, N.Y.4.2%4.6%8.8%
73Cincinnati, Ohio-Ky.-Ind.4.9%3.8%8.7%
74Chattanooga, Tenn.-Ga.4.9%3.5%8.4%
75Portland-South Portland, Maine2.0%6.4%8.4%
76Augusta-Richmond County, Ga.-S.C.5.1%3.2%8.3%
77Worcester, Mass.-Conn.3.5%4.5%8.0%
78Tucson, Ariz.3.4%4.5%7.9%
79Nashville-Davidson–Murfreesboro–Franklin, Tenn.3.1%4.8%7.9%
80Scranton–Wilkes-Barre–Hazleton, Pa.6.7%1.1%7.8%
81Albuquerque, N.M.4.5%3.2%7.7%
82Toledo, Ohio3.9%3.3%7.2%
83St. Louis, Mo.-Ill.3.4%3.8%7.2%
84Jackson, Miss.5.3%1.9%7.2%
85Madison, Wis.5.1%2.1%7.2%
86Winston-Salem, N.C.2.6%4.4%7.0%
87Birmingham-Hoover, Ala.3.7%3.2%6.9%
88Urban Honolulu, Hawaii5.2%1.6%6.8%
89Indianapolis-Carmel-Anderson, Ind.4.1%2.3%6.4%
90Omaha-Council Bluffs, Neb.-Iowa1.4%4.9%6.3%
91Wichita, Kan.2.4%3.4%5.8%
92Cape Coral-Fort Myers, Fla.1.5%4.3%5.8%
93Greenville-Anderson-Mauldin, S.C.4.3%1.3%5.6%
94Minneapolis-St. Paul-Bloomington, Minn.-Wis.0.5%4.8%5.3%
95Allentown-Bethlehem-Easton, Pa.-N.J.0.3%4.9%5.2%
96Tulsa, Okla.2.7%2.0%4.7%
97Little Rock-North Little Rock-Conway, Ark.1.9%1.5%3.4%
98Dayton, Ohio0.7%1.7%2.4%
99Detroit-Warren-Dearborn, Mich-2.8%4.9%2.1%
100New York-Newark-Jersey City, N.Y.-N.J.-Pa.-3.8%0.5%-3.3%

*Ranked by Combined Growth. In cases of a tie, Sales Growth y/y was used as a tiebreaker.

Why Rental Properties Are a Great Investment in 2021

There’s no doubt that 2020 was a tough year for many investors in just about every sector, but with the uncertainty of the election behind us and in light of the news of numerous vaccines on the way, there’s a renewed sense of optimism out there. I know I am very excited about the opportunities 2021 will bring. Here’s the way I see it…

The economic transformation was already happening. COVID-19 just kicked it into overdrive. In many markets, particularly here in my backyard, South Florida, people are abandoning their high-rise apartments and condominiums because of the pandemic. Even though the vaccines may be on their way, the migration has begun and there’s no stopping the trend now. Renters want to trade in their confined surroundings for the open-space living that comes with the kind of multifamily properties that I invest in. Not even the fact that landlords have significantly lowered rents of those apartments has been able to stop the exodus. This means that while the value of large apartment buildings goes down the value of multifamily communities is projected to rise, possibly by double digits.

Also, the trend of people working from home is going to be permanent in a lot of cases. People who used to live in small apartments in the city just to be close to work are now telecommuting from bigger and more comfortable residences in communities that offer more luxury and more amenities at much lower rents than you find in New York, Los Angeles, Atlanta, Chicago and the other major markets.

Another factor that’s going to have a lot to do with the shifting real estate investment landscape is the concentration of new jobs in certain up-and-coming markets. 30 markets containing 40 percent of the country’s population benefitted from a 60 percent job creation influx since 2015. People go where the jobs go. That means a growing demand for housing and it will continue for years because the nature of jobs is changing. Most jobs are found in companies that provide some type of service or in offices. Demand for IT support, support personnel, and healthcare workers in particular has grown considerably. When demand like this occurs, businesses in the same industry tend to cluster in markets where these services already exist. This stimulates the job market which attracts potential renters. See where this is going?

What it boils down to is that demand for housing in these markets will continue to grow at a quicker rate than developers can build new residences. This is good news for investors like me and those who invest with me because demand will keep going up…and so will rents.

Last year showed us how vulnerable local economies in smaller markets were. Unemployment went through the roof while home prices skyrocketed as people left the cities. Thankfully the unemployment rate is down. This means that more people will be in the position to rent a unit in a multifamily property in one the many markets that have benefited from people leaving the crowded urban areas.

Many of these up-and-coming markets present interesting opportunities, especially for entry-level investors. These units are tangible assets, which almost always increase in value and are by far the best and safest way to generate passive income.

Cardone Capital is constantly watching these areas for new opportunities and already has some deals in the works so anyone interested in this type of investment should definitely consider investing with us as we do all the work. Cardone Capital has nearly $2 billion in assets under management and currently pays out nearly $2 million a month in distributions.

https://thinkrealty.com/why-rental-properties-are-a-great-investment-in-2021/?inf_contact_key=ac21a577ce2c77af2686587d9a74d10a680f8914173f9191b1c0223e68310bb1

Weekly Housing Trends View — Data Week November 7, 2020

Our research team releases regular monthly housing trends reports. These reports break down inventory metrics like the number of active listings and the pace of the market. In light of the developing COVID-19 situation affecting the industry, we want to give readers more timely weekly updates. You can look forward to a Weekly Housing Trends View near the end of each week along with weekly coverage from our Housing Market Recovery Index and a weekly video update from our economists. Here’s what the housing market looked like last week.

Weekly Housing Trends Key Findings

Key Findings:

  • Median listing prices continue to grow at 12.9 percent over last year, marking the 13th consecutive week of double-digit price growth. Economists, market watchers, and most especially buyers have been looking for signs of a slowdown in the housing market that has been red hot since its post-pandemic recovery. So far, at least, the median listing price continues to defy gravity. 
  • New listings were down 12 percent. The new listings trend took another step back this week. Earlier in the year, new listings growth was tied closely to the prevalence of coronavirus spread in various housing markets. The second week of larger declines in new sellers could be related to rising new coronavirus cases.  New listings are a necessary ingredient for further home sales, so additional improvement here will be important for home buyers and sustaining home sales activity. 
  • Total inventory was down 39 percent. After five steady weeks at 38 percent, the total number of homes available for sale shrank by a slightly larger amount this week. Fewer new sellers coming to market while a greater than usual number of buyers continue to search for a home causes inventory to continue to evaporate.
  • Time on market is still 13 days faster than last year. With limited homes available for sale, those that are on the market are selling quickly–roughly 2 weeks faster than a year ago. For 7 weeks now, we’ve seen homes sell 13 or 14 days faster than last year. We typically see a big increase in time on market before the end of November. If this indicator remains steady in the weeks ahead, that points to a seasonal slowdown, but if time on market shrinks by a greater amount, that’s a signal that this year’s housing market is not taking the holidays off.

Data Summary

First Two Weeks MarchWeek ending Oct 24Week ending Oct 31Week ending Nov 7
Median Listing Prices+4.5% YOY12.2+% YOY+12.9% YOY+12.9% YOY
New Listings +5% YOY-2% YOY-9% YOY-12% YOY
Total Listings -16% YOY-38% YOY-38% YOY-39% YOY
Time on Market4 days faster YOY14 days faster YOY13 days faster YOY13 days faster YOY

10 simple upgrades that can transform an outdated home

We all crave the creature comforts of a cozy, well-designed home. While there are a lot of do-it-yourselfer’s out there who work tirelessly on their homes and seem to be updating or renovating on a constant basis— this is not possible for those of us who don’t know the difference between a table saw and a drill.Of course, the latter-mentioned group of people could just hire someone to renovate their homes for them, but then that comes with messy and costly renovations. Anyone who has done a major renovation can attest to the unexpected costs and immense mess that it creates.How can we update our homes while bypassing major renovations? We want updates that all of us can do, not just those handy do-it-yourselfers. Here is your answer — 10 of them, in fact.

Let’s look at 10 imaginative ways to update your home without tearing down walls or breaking the bank.

1) Create Open Space In Your Home

According to a Bankrate Study, open floor plans are on the top of the list when it comes to home buying and home ownership. Homeowners want an open floor plan where the kitchen, family room and dining room share one vast open space. Also, formal dining rooms seem to be going out of style.Here is your opportunity to create space in your home, making  it more appealing to you and to your visitors. How can you do this without tearing out walls, you ask? Actually, making your home seem open and airy can be easier than you think. Sometimes it’s as simple as getting rid of bigger, bulkier furnishings, or moving furnishings around the room to see what placement gives the most open space. If you are attached to the huge armoire, cabinet or other bulky furnishing that is taking up a lot of space, then consider painting it a warm off-white color— this will help it “disappear” into the room, tricking the eye to think the space is more airy and open.Another trick of the eye that gives the illusion of open space, is mirrors. Mirrors when placed opposite windows reflect light into the room and make the room seem more open. If you have a formal dining room that you really don’t use, then consider turning it into a cozy den, home office, crafting room or library with a reading nook. This will make the current space you have more usable, and creates a whole new room in your home that you never had before (without any messy renovations!).

2) Add New Lighting To Your Home

Proper lighting can truly bring a room to life.  A poorly lit room looks small, dark and cramped, while a brightly lit room appears open, airy and welcoming. There are numerous ways to brighten up your home with lights. Some of the easier methods are as simple as buying table lamps and floor lamps for your home.Strategically place a couple tall floor lamps in dark corners and watch your room come alive. Layer this lighting with lamps on side tables, making the room feel welcoming and cozy.  Then, if you want to get adventurous, you can replace all those out-dated ceiling fixtures with the stunning modern masterpieces that are available on the market.Of course, this last part may require you to hire an electrician for installation, but if you’re handy, replacing a ceiling fixture is something that is not too complicated.  Whether you keep it simple with floor lamps, or go all out and replace all your ceiling fixtures —modernize your home with plenty of bright lights.

3) Cabinetry: Update Drawer Pulls and Door Handles

Nothing dates your kitchen and bathrooms more than old-fashioned, worn and dirty handle pulls and knobs. There is no excuse not to update all your cabinet and door handles when it is really so simple to do, and there are so many ways to update your cabinetry.There are numerous finishes to choose from such as bronze, brushed nickel, aged copper, and shiny stainless.  With so many modern choices on the market it may be hard to decide what best suits your home. Don’t stress too much about the plethora of options, after all, you could always buy one or two different styles to see what works best in the room.Plus, there are not really any steadfast rules to choosing cabinet pulls and knobs. Essentially, a country kitchen can look chic and updated with very modern stainless knobs, while a modern kitchen can look cool and eclectic with more vintage-style knobs. The design choice is up to you, so get out there and start updating your kitchen and bathroom cupboards today.

4) Update Window Treatments

Windows seem to be overlooked a lot of the time. Homeowners struggle to decide what style would suit the room best, leading them to give up and leave the windows bare or just install simple blinds for privacy.Here’s the thing— windows beg to be dressed! By leaving your windows bare, you are missing out on a whole spectacular layer of decorating.  While those who are lucky enough to enjoy ocean or mountain views may argue this fact, but even the best of views could be framed by stylish window panels. Windows can be dressed to perfectly suit your style and taste.You can go bold and graphic with geometric curtain panels, or beachy with gauzy white sheers, or minimalist with bamboo shades—-the options are endless. If you are stressing about all the possibilities, then take a cue from the color schemes that you already have in place. Sometimes the easiest option is to simply match curtain panels to the color of your walls— doing this creates a look that goes with any style.

5) Create An Outdoor Room

Sometimes we forget to look outside our very own doors for unused space. Even if your home doesn’t have a large front porch or amazing backyard patio—there is still space to be used. You just need to be inventive.You can create an amazing outdoor space by starting with an outdoor rug to define a “room” outdoors. Then add a couple comfortable outdoor chairs and throw cushions, a small fire pit, some dangling string lights — Voila! You have a added a new “room” to your home.If you want to get fancier you could put down some brick pavers or flagstones, then layer it with the outdoor rugs, chairs etc… Or you could go all out and install a large pergola, drape the sides with privacy curtains, add an outdoor heater, some music, some wine….yes, this sounds like a great outdoor escape. The pergola install may take the weekend to accomplish, but it would be worth it come Sunday evening when you unwind outdoors with your glass of wine.

6) Landscape Your Yard

Landscaping is too often overlooked.  We plant one or two trees and assume we are done. However, curb appeal is greatly affected by  the design of your landscaping. While not all of us have a green thumb, it can be easy to make a couple raised garden beds, or plant more trees and flowering shrubs.Begin with a visit to your local greenhouse. Staff at these stores are full of advice and knowledge about local plant life. Ask them what plants thrive best in your area and, more importantly, what plants are the easiest to care for. Most of these garden centers have a landscape architect on staff who can design a landscaping plan for you, as well.It is best to start slowly by adding a couple flowering shrubs to your front yard, and then add a small raised bed around a walkway or front door. Remember to layer the heights of plants with the tallest in back, and read the planting directions for spacing and projected heights. With time and patience, you will have a beautifully landscaped yard.

7) Add Easy to Install (And Remove) Wallpaper

This is not your Grandmother’s wallpaper. No, we are talking about all of the amazing new removable wallpapers that are currently hitting the market. We are also not talking about those tacky wall decals that say, “Always Kiss me Goodnight”.Rather, the new lines of removable wallpaper come in amazing patterns and graphics that will make your room look like you hired an interior designer (and spent a fortune). These wallpapers are easily removed by simply peeling them off (without harm to the wall underneath) and most can be reused.For an easy weekend project, consider covering the main wall of your bedroom with a peaceful pattern, or consider a living room update by covering one wall with a funky geometric patterned paper. There are numerous online stores where this wonderful wallpaper can be purchased. Just be sure to read the fine print and buy the brands that are top-of-the-line and remove easily.

8) Spruce-Up Your Bathroom

Bathrooms get dirty and dingy quite quickly. Begin a bathroom overhaul with a thorough cleaning. Yes, not a lot of fun, but the shiny result will give you new motivation to spruce-up the rest of the bathroom.Once the room is clean, look to the outdated knobs, light fixtures, vanity, faucets, and shower curtains. By simply changing out one or two of the most outdated items, you can make your bathroom look modern and new. A coat of paint can really go far in a bathroom, as well.Look to the bathroom below and notice all the shiny white painted trim and blue walls; the modern cabinet pulls; the cool lantern light fixture; the modern faucet; the plush towels, and  the pretty plants—-these all add up to a brand-new bathroom, without  tearing out cabinets, walls or sinks.

9) Make a Man Cave

Men are uniting everywhere— in their man caves. While some of us girls don’t get it, men really like to have a man-cave to escape in, a room to call their own, a room to drink with the guys and watch the game in peace. Who can blame them? It really does sound like a great escape.Men, here are some tips to creating the ultimate man-cave. First, find a space in your home that you can use, whether it is the basement, the garage, or an outdoor room or outbuilding such as a shed. Then you need to decorate it and make it  your ultimate escape. Add a TV, a pool table, a fridge, a bar, some darts, comfortable chairs, rugs, pillows, music…etc Getting the picture? Make it home.There are a lot of companies that customize garages into amazing man-caves. They install flooring, wall units, and sound systems, essentially turning the garage into a new room in your home. Ladies, maybe we can do the same with a craft room?

10) When In Doubt Just Clean and Paint

Does this list have you exhausted? Is your home overwhelming you? Maybe you should just start by simply cleaning-up your main living space. A deep-clean can enhance our mood and make our home more livable (and more importantly inspire us to do more).It seems obvious but a clean coat of paint can take a room from drab to fab. Consider adding a punch of color on a accent wall, or just touch up  your trim with a clean coat of white paint. If your home already has a fresh coat of paint, then look to other things that could use a touch-up.  Maybe paint your ceiling a cool blue, or bring new life to an outdated piece of furniture with a new coat of paint.A deep clean and a new coat of paint can go a long way when it comes to revamping our rooms without major renovations.

As you can see, there are a lot of ways to update your home without the messy overhaul or huge expense of remodeling. Study this list and the rooms in your home , then ask yourself what is the most outdated feature(s) in your home? Then it’s time to get to work!Change out old cabinetry knobs, light fixtures, faucets, window treatments and faded paint. Or look outside the typical rooms in your home by creating an amazing outdoor landscape, outdoor room, or garage man-cave. All of these small updates go a long way to renewing your home, your spirit and your sense of well-being.What recent updates have you done to your home? Or what items in this list do you plan to do first?

Checkpoints Before Buying a Single Tenant Property

Having the knowledge rather than just an understanding of a subject means you have become an expert. So, when it comes to single tenant net lease(STNL) properties, wouldn’t you want to know as much as possible before investing?

This type of lease that’s executed between the developer/landlord and the tenant of the build to suit location solidifies the use prior to development. As a potential buyer of said property, here are a few items you’ll want to review in the build to suit lease before signing the Purchase and Sale Agreement.

Tenant Profile

First and foremost, the tenant concept and credit profile should be taken into consideration. This will impact the overall terms drawn up in the lease. As a future landlord, your lowest risk option would be to choose the single tenant properties with an investment-grade or national tenant.

National creditworthy tenants with a rating of at least BBB- (S&P) are the standard for premium net lease properties. Also, regional or franchise-type credits contribute to the overall value of the property because it is dependent on the tenant.

Dollar General is a good example of a relatively safer real estate investment as it has over 15,000 locations across 44 states — and counting!

CURRENT DOLLAR GENERAL NET LEASE OPPORTUNITIES

In today’s market, sub-investment grade product can provide the investor with greater flexibility in lease variation and ability to capture greater yield. The consistency of a freestanding long-term net lease is more uncertain than in the previous decade. So, risk tolerance is a driver of accomplishing a higher yield.

For example, in a SimonCRE-developed regional quick service restaurant (QSR) location in Phoenix, Filiberto’s Mexican Food, there was high demand as this type of concept is both value-oriented and ecommerce-proof. The property was recently sold and the investor was able to achieve a better cash-on-cash return relative to a newly constructed national QSR lease.

In the same vein, in the SimonCRE-developed medical office project in Florence, AZ, it was a smaller operator so there was a higher discount on the exit purchase price for the investor. It is also immune to the effect of ecommerce as it provides an improved quality of healthcare for the community through its new exam rooms, laboratory, and drive-thru pharmacy. Because it is not located within a major metropolitan city, this traditional market highly benefited from this type of concept.

Lease Type

One could argue that single tenant property is the most “liquid” asset class in commercial real estate due to its consistent lease structures and abundance of comparable data. Although, being an expert in how net leases are drafted first involves the knowledge of the different types of build to suit leases.

For example, in an Absolute Net Lease or a bondable lease, the tenant is fully responsible for all building expenses including the roof and structure. Whereas in a Single Net (N) Lease, the landlord covers all building expenses and the tenant pays a pro-rata share of the property tax, utilities and janitorial. Then in a Double Net (NN) Lease, the taxes and insurance premiums are paid by the tenant while the landlord maintains all the exterior and common areas.

Triple Net (NNN) is likely the industry catch phrase you’ll hear most, especially for a retail single tenant net lease; however, it could also vary in terms of tenant versus landlord responsibilities as it is less rigid than an Absolute Net Lease.

The length of the actual lease term and time left are also important deciding factors. Typically, build to suit leases will have terms ranging from 10-25 years. Although, non-national tenants may follow a trend of shorter term leases.

Keep in mind, the cap rate is calculated using the tenant’s Net Operating Income (NOI), so less time left on the lease means a lower risk of failing to renew. Traditionally, cap rates move in lockstep with the 10-Year Treasury. So, when exploring an investment property, evaluate the value of the building plus the raw land to determine if the price is fair or not.

Rent Increases

Another point to check when combing through the lease is if there are any periodic rent bumps in place. When do they occur? From a developer’s perspective, having the periodic increases will add to the property’s value. It also serves as a safeguard that ensures the rent will likely keep up with the market rate.

Rent escalators tend to drive more demand from investors seeking long-term passive investments. Consequently, it can also create challenges for redevelopment. Rent increases are meant to account for appreciation and inflation. However, in times of market stagnation, it can lead to operator defaults or even situations where the developer is unable to replace rents. So, this all should be taken into consideration.

At this point in the market cycle, S&P-rated investment-grade tenants are structuring flat leases. But without these rent increases in place, an investor could end up with a long-term tenant paying lower than market rate. It’s critical to consider any economic factors that may affect your income down the line.

Renewal Options

A final checkpoint on a single tenant property is to ensure there are multiple lease renewal options drafted. While a property can change hands at any time, it’s always an important selling point.

Having these options protects the tenant but are also crucial for a landlord. Economic factors can impact your income if you’re not prepared for them. For example, during times of a seller’s market where an owner/landlord of a property in an especially competitive area, flexibility in increasing the rate later helps capitalize on the prosperous times.

During recessionary times, even a national tenant like Macy’s could face hardship and need to either negotiate a lower rate to stay, relocate, or close that store altogether.

Six Key Underwriting Guidelines that Lenders Use to Qualify You

A Short History of Underwriting Guidelines

Borrower underwriting guidelines have changed dramatically in recent years. Back in the good old days, prior to the Great Recession, lenders did a very cursory job of underwriting the borrower. They typically asked the borrower to provide a simple financial statement with a credit check, and that was the extent of the credit items required.

Back then, they focused almost exclusively on the pros and cons of the property. And if they liked the risks associated with the property, it was very likely the loan would be approved with only a cursory look at the borrower.

Ah, the good old days.  But as you know that all changed in recent years.  In today’s environment, lenders have upped their borrower documentation considerably requiring an extensive amount of information on the borrower.

Under today’s lender guidelines the borrower would do themselves a favor if they were proactive about providing their personal documentation at the same time as the property documentation. Doing so strongly suggests that you, the borrower, are a professional, seasoned investor.  Instead of slowly dripping the required documents over a couple of weeks or so, have it all prepared to give to them right from the get go.

Six underwriting guidelines lenders use to qualify you:

  1. Minimum Net Worth to Loan Ratio – Provide the lender with a complete, professional looking personal financial statement. Each lender has different requirements but they typically require the borrower’s net worth to be equal to or greater than the loan amount. Some require a borrower’s net worth to be as much as two times the proposed loan amount.  Ask the lender before you send him your financial statement what is the minimum net worth to loan ratio.  If your net worth exceeds this ratio then proceed with sending him all your personal documentation.
  2. Minimum Number of Months of Debt Service Required of Liquid Assets – Again each lender is different but they typically require liquid assets showing on the borrower’s balance sheet equal to 6 to 12 months of debt service. Find out what your lender requires before signing the application.
  3. Complete the REO Schedule with all the Details Filled In – Most lenders now create a global cash flow spreadsheet on the borrower. They want to see if the prospective borrower is generating a positive cash flow or slowly draining himself of all his cash.  Much of the detail required to determine his global cash flow comes from the real estate owned schedule.  Prepare the REO schedule before you begin talking to lenders so that when they ask for it, it’s ready for them.  If you need a copy of a REO schedule contact me and I’ll email you one.
  4. Credit Rating & Explanations of 30 Day Late Payments – Run a credit report on yourself before you start looking for a lender. Find out your credit score.  Most lenders require that your credit score be a minimum of 680.  If yours is not that high, you better have a good explanation.  Also you need to explain every payment that is 30 days late or more.  Put it in writing before they ask.
  5. Explain Past Tax Liens, Judgments, Litigation – Have written explanations with back up documentation already prepared before you sign the application. Give the prospective lender your explanations and have him verify in advance of signing your application that your explanations are satisfactory and will not impact loan approval.  Do it before you sign the application when you have the most negotiating power, not after when you have little or none.
  6. Tax Returns, not just Schedule 1040s, signed and dated including all K-1s – Lenders want all of your federal tax returns, not parts of them. This includes providing all of you K-1s.  To speed up the process get it done correctly the first time.

Time Kills Deals

One of the truest statements ever uttered about commercial real estate is, “Time kills deals.”  A lengthy, drawn out loan underwriting process will at the very least move your deal to the bottom of the pile.

It has the potential of killing the deal altogether.  These borrower underwriting guidelines can be verified quickly if the borrower is proactive and anticipates what the lender is going to require.  A borrower should work towards making the lender’s process as easy as possible to avoid ever hearing the words, “I’m sorry to inform you, your loan has been turned down.”

Those are my thoughts, I welcome yours.  What underwriting guidelines do you think are most important for qualifying a borrower?

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Fed lowers minimum loan size on small business loans to Main Street

The Federal Reserve on Friday lowered the minimum loan size on its loans to small- and medium-sized businesses, in an effort to drive higher uptake of its Main Street Lending Program.

The smallest loan that businesses can get through the program is now $100,000, a significant reduction from the $250,000 minimum that the Fed had established in June.

The Fed says it has made almost 400 loans totaling $3.7 billion under the program. But the central bank’s facility can support up to $600 billion in total loans, raising questions about whether or not the Fed made the loan terms too restrictive.

In a statement, the Fed said the changes were designed “to better target support to smaller businesses that employ millions of workers and are facing continued revenue shortfalls due to the pandemic.”

FILE - In this March 25, 2020 file photo, the dining section is closed off at East Side Pockets, a small restaurant near Brown University,  in Providence, R.I.  The Federal Reserve is taking additional steps to provide up to $2.3 trillion in loans to suport American households and businesses as well as local governments as they deal with the coronavirus. The Fed said Thursday, April 9,  among the actions it is taking is the activation of a Main Street Lending Program that was authorized by the $2.3 trillion economic relief bill pass by Congress last month. (AP Photo/David Goldman, File)
The dining section is closed off at East Side Pockets, a small restaurant near Brown University, in Providence, R.I. The Federal Reserve is taking additional steps to provide up to $2.3 trillion in loans to suport American households and businesses as well as local governments as they deal with the coronavirus. (AP Photo/David Goldman, File)

The Fed will also adjust the fee structure for the new Main Street loans under $250,000. Lenders of the small loans will pay no transaction fee to the Fed’s facility, but will be allowed to charge the borrower up to 200 basis points to originate the loan.

For comparison, lenders of loans larger than $250,000 will pay up to 100 basis points in transaction fees to the Fed’s facility. Those lenders will be allowed to charge the borrower up to 100 basis points to originate the loan.

The Fed will also continue to offer incentives to continue servicing the loans, which remain five years in maturity. The Fed’s facility will pay lenders 50 basis points per year for servicing loans smaller than $250,000 and 25 basis points per year for loans larger than $250,000.

Large loans — those above $10 million — originated under the “expanded” version of the Main Street Lending Program have a separate fee structure, which remains unchanged under the announcement Friday.

The facility will be open for eligible loans for only another two months, through December 31, 2020. The Fed and the U.S. Treasury could extend the facility if needed.

No changes were made to the EBITDA requirements, despite calls from some members of Congress to use an asset-based standard.

Since announcing the novel Main Street facility in March, the Fed has regularly tweaked the terms and structure of the program — with varying degrees of success. In July, the Fed expanded the facility to cover nonprofits but as of September 30, not a single nonprofit had tapped the program.

U.S. Treasury Secretary Steven Mnuchin hinted weeks ago that the Fed could lower the minimum loan threshold as it did on Friday, telling the House Financial Services Committeeon September 22 that he would “be fine” lowering it to $100,000.

Fed Chairman Jerome Powell at the time had said there was little demand for loans below $1 million, suggesting that loans in “those small quantities would require a facility built from the ground.”

https://finance.yahoo.com/news/fed-lowers-minimum-loan-size-on-main-street-lending-program-150016390.html

62% of homeowners support low-income housing in their neighborhood

Thirty-eight percent of homebuyers and sellers don’t want to see low-income housing in their neighborhood, according to an August Redfin survey of more than 1,400 U.S. residents who plan to buy or sell a home in the next 12 months. That’s roughly the same share as in November 2019, when 39% of respondents said the same thing. 

More people oppose low-income housing—which the survey question defines as “affordable housing in the form of mid-grade townhomes, apartments or similar”—in their neighborhood than any other type of building. Shopping centers, which 34% of all respondents oppose, and office buildings (32%) come next. 

President Trump suggested that people who live in the suburbs are opposed to low-income housing when his administration rescinded a 2015 federal rule called Affirmatively Furthering Fair Housing, meant to combat discrimination by requiring local governments to proactively ensure fair housing to receive federal housing funding. Joe Biden has pledged to reinstate the rule if he is elected. The Washington Post reportedthat in a town hall meeting aimed at Wisconsin voters, President Trump said Democrats would “eliminate single-family zoning, bringing who knows into your suburbs, so your communities will be unsafe and your housing values will go down.”

In addition to reinstating the rule discussed above, Biden’s $640 billion housing plan would combat discriminatory housing practices and support building more low-income housing and single-family homes in urban, suburban and rural areas. 

We broke out the survey results by respondents’ neighborhood type to see if rural and suburban dwellers are more likely than city residents to oppose low-income housing in their neighborhoods. 

While people who live in rural and suburban areas are more likely to oppose low-income housing in their neighborhood than city dwellers, less than half of people from each neighborhood type are opposed: Forty-five percent of rural residents and 44% of suburban residents oppose low-income housing, versus 31% of people who live in the city. Rural and suburban residents are also more likely than city residents to oppose nearly every other building type in their neighborhood. 

“Although research indicates that low-income housing doesn’t increase crime or substantially reduce nearby property values, there’s still a misconception that housing for low-income people degrades a neighborhood,” said Redfin chief economist Daryl Fairweather. “People who live in urban areas are less likely to harbor the misconception, likely because they already live among a more economically diverse population.”

“Building different types of housing in suburban, urban and rural neighborhoods alike helps to desegregate communities, which is one of the first steps in combating systemic racism and other inequalities,” Fairweather continued. “Passing national zoning reform and requiring all neighborhood types to allow affordable housing could help close the gaps in education, homeownership and wealth.” 

Residents of all three neighborhood types are more likely to oppose low-income housing than any other building type. But for rural residents specifically, nearly as many are opposed to shopping centers (43%) and office buildings (42%) as low-income housing. Rural residents were also most likely to say they wouldn’t mind any of the building types listed in their neighborhood, with 24% selecting that option. 

People who live in swing states are most likely to oppose low-income housing in their neighborhood

Forty-three percent of swing-state residents don’t want to see low-income housing in their neighborhood, versus 41% of people in red states and 33% of people in blue states.* 

“Biden has focused his housing policies on supporting low-income Americans who have been excluded from certain neighborhoods because they can’t afford housing,” Fairweather said. “In contrast, President Trump is responding to the anxiety some people feel about low-income housing entering their neighborhoods, which may be a bigger issue in red states and the collection of swing states that matter most in this year’s election, according to the survey results.”

White people are most likely to oppose low-income housing in their neighborhood

When broken down by race, white respondents are most likely to oppose low-income housing in their neighborhood and Black respondents are least likely. Forty-one percent of white people are opposed, followed by 35% of Asian people, 33% of Hispanic people and 26% of Black people. 

Thirty percent of Asian respondents said they wouldn’t oppose any building types in their neighborhood, more than any other race, followed closely by 29% of Black respondents.

https://www.redfin.com/news/suburban-urban-low-income-housing-survey/

Weekly Housing Trends View — Data Week October 3, 2020

Our research team releases regular monthly housing trends reports. These reports break down inventory metrics like the number of active listings and the pace of the market. In light of the developing COVID-19 situation affecting the industry, we want to give readers more timely weekly updates. You can look forward to a Weekly Housing Trends View near the end of each week along with weekly coverage from our Housing Market Recovery Index and a weekly video update from our economists. Here’s what the housing market looked like last week.

Weekly Housing Trends Key Findings

  • Median listing prices grew at 12.9 percent over last year, marking the 21st week of accelerating prices and a new high-mark for price growth in our weekly data which goes back to 2017. During a normal year, asking prices begin to dip going into the fall as the types of homes for sale shift and sellers have to do more to attract a buyer from a smaller pool of shoppers, but 2020 is not following this usual seasonal trend, and the typical September asking price remained at $350,000, on par with peak summer home prices. 
  • New listings were down 7 percent. The number of sellers deciding to put their home on the market remains limited, but the drop in new sellers is not as large as the overall decline in inventory, which means new listings are a growing share of total listings–providing some small relief for option-starved buyers.
  • Total inventory was down 38 percent. With high interest from buyers and limited flow of new listings, the total number of homes available for sale continues to shrink. For the third week in a row the pace of decline was even or improving. We’re a long way from a buyer’s market, but this is a buyer-friendly shift. 
  • Time on market is now 13 days faster than last year. With low inventory and a large pool of buyers, homes sell much faster than a year ago. The rapid turnover reflects the unseasonable excess of buyers in the housing market this fall, and will likely persist until sellers come back in a bigger way.

Data Summary

First Two Weeks MarchWeek ending Sep 19Week ending Sep 26Week ending Oct 3
Median Listing Prices+4.5% YOY+11.1% YOY+12.4% YOY+12.9% YOY
New Listings +5% YOY-15% YOY-6% YOY-7% YOY
Total Listings -16% YOY-39% YOY-39% YOY-38% YOY
Time on Market4 days faster YOY12 days faster YOY13 days faster YOY13 days faster YOY

You can download weekly housing market data from our data page.



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Weekly Housing Trends View — Data Week September 19, 2020

Our research team releases regular monthly housing trends reports. These reports break down inventory metrics like the number of active listings and the pace of the market. In light of the developing COVID-19 situation affecting the industry, we want to give readers more timely weekly updates. You can look forward to a Weekly Housing Trends View near the end of each week along with weekly coverage from our Housing Market Recovery Index and a weekly video update from our economists. Here’s what the housing market looked like last week.

Our latest inventory data shows sellers have yet to find their confidence given the uncertainty over the economy and the pandemic environment. Buyers on the other hand, especially hungry first timers, remain largely unfazed by the challenges, and are motivated by low mortgage rates and the fear of missing out on the right home. The majority of sellers are also buyers, so even as new listings hit the market, another buyer is also added. Adding to the inventory issues, thousands of previously vacant homes, such as second homes and rentals, have been reoccupied by their owners during the pandemic, effectively taking them off the market.

Weekly Housing Trends Key Findings

  • Median listing prices grew at 11.1 percent over last year, matching the fastest pace of growth in more than two years, and the 19th consecutive week of increasing price growth momentum. The rate at which asking prices are growing is more than double the pace set at the beginning of the year. Low mortgage rates are helping offset this increased cost for buyers, allowing them to take on a bigger loan amount.  
  • New listings were down 15 percent. The new listings trend made up some of the ground lost last week, likely a result of the fuller week post Labor Day as well as easing from fires in the West and storms in the South. The number of sellers deciding to put their home on the market remains limited even for this time of the year. Seller confidence is improving but at a much slower pace than buyer confidence.
  • Total inventory was down 39 percent. With high interest from buyers and limited flow of new listings, the total number of homes available for sale continues to shrink rapidly. The added competition means existing sellers in many markets have the upper hand over buyers.
  • Time on market is now 12 days faster than last year. With low inventory and a growing pool of buyers, homes are spending less time to sell. The rapid turnover continues to fuel home sales, but it’s also depleting the amount of options dangerously fast.

Data Summary

First Two Weeks MarchWeek ending Sep 5Week ending Sep 12Week ending Sep 19
Median Listing Prices+4.5% YOY+10.8% YOY+11.1% YOY+11.1% YOY
New Listings +5% YOY-12% YOY-17% YOY-15% YOY
Total Listings -16% YOY-39% YOY-39% YOY-39% YOY
Time on Market4 days faster YOY12 days faster YOY11 days faster YOY12 days faster YOY

You can download weekly housing market data from our data page.



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