Real Estate News

Latest Realty News from NAR

Home Buyer Households: Valentine’s Day 2019

Using data from the 2018 Profile of Home Buyers and Sellers we can break down household composition, and the relationship it has to home purchasing choices.

  • Among all recent home buyers, 63 percent were married couples, 18 percent were single females, nine percent were single males, and eight percent were unmarried couples.
  • Four percent of recent buyers identified as gay or lesbian, and one percent identified as bisexual.
  • Among first-time buyers, 54 percent were married couples, and 67 percent of repeat buyers were married couples.
  • Among first-time buyers, 16 percent were unmarried couples, and five percent of repeat buyers were married couples.
  • Among all home buyers, 82 percent purchased a detached single-family home, eight percent purchased a townhouse/row house, four percent purchased an apartment or condo.
  • Eighty-seven percent of married couples, and 83 percent of unmarried couples purchased a detached single-family home.
  • Married couples were typically 45 years old with a household income of $106,300. They typically purchased a home that was a median of 2,070 sq. ft., for $289,000.
  • Unmarried couples were typically 34 years old with a household income of $88,800. They typically purchased a home that was a median of 1,630 sq. ft., for $219,000.
  • Single females were typically 54 years old with a household income of $61,400. They typically purchased a home that was a median of 1,550 sq. ft., for $189,000.
  • Single males were typically 52 years old with a household income of $73,200. They typically purchased homes that were a median of 1,590 sq. ft., for $215,000.
  • Fifteen percent of all buyers were influenced to choose their neighborhood based on the convenience to a vet or outdoor space for their pet. 20 percent of unmarried couples chose their neighborhood based on the convenience to a vet or outdoor space for their pet.

For more information on how relationship status and household composition affects homeownership choices, check out the 2018 Profile of Home Buyers and Sellers and the Valentine’s Day infographic.

December 2018 Housing Affordability Index

At the national level, housing affordability is up from last month but down from a year ago. Mortgage rates were unchanged from last month at 4.99 percent this December, and up 18.2 percent compared to 4.22 percent a year ago.

  • Housing affordability declined from a year ago in December moving the index down 8.4 percent from 161.2 to 147.6. The median sales price for a single family home sold in December in the US was $256,400 up 3.4 percent from a year ago.
  • Nationally, mortgage rates were up 77 basis point from one year ago (one percentage point equals 100 basis points).
  • The payment as a percentage of income was down from last month at 16.9 percent this December and up from 15.5 percent from a year ago. Regionally, the West has the highest payment at 23.4 percent of income. The South had the second highest payment at 16.7 percent followed by the Northeast at 16.5 percent. The Midwest had the lowest payment as a percentage of income at 13.1 percent.

  • Regionally, the Northeast recorded the biggest increase in home prices at 9.2 percent. The South had an increase of 2.7 percent while the West had a gain of 2.3 percent. The Midwest had a modest decline in price of 0.1 percent.
  • Regionally, all four regions saw a decline in affordability from a year ago. The Northeast had the biggest drop in affordability of 14.3 percent. The South had a decline of 8.2 percent followed by the Midwest that fell 5.8 percent. The West had the smallest drop of 5.6 percent.
  • On a monthly basis, affordability is up from last month in all of the four regions. The Midwest region had the biggest increase of 4.7 percent. The Northeast had a decline of 3.1 percent followed by the West with a dip of 2.3 percent. The South had the smallest gain in affordability of 0.3 percent.
  • Despite month-to-month changes, the most affordable region was the Midwest, with an index value of 191.5. The least affordable region remained the West where the index was 106.9. For comparison, the index was 149.3 in the South, and 151.8 in the Northeast.

  • Mortgage applications are currently down while credit availability is up. Home prices are up 3.4 percent while median family incomes are growing 3.6 percent. Sales declined this year due to affordability issues, which has been more impactful than a healthy job market. Gains in affordability in all four regions are a good sign in the current market. Rate changes have an impact on the housing sector so small hikes can influence the effect on finances for potential homebuyers.

  • What does housing affordability look like in your market? View the full data release here.
  • The Housing Affordability Index calculation assumes a 20 percent down payment and a 25 percent qualifying ratio (principal and interest payment to income). See further details on the methodology and assumptions behind the calculation here.

December 2018 Pending Home Sales

  • NAR released a summary of pending home sales data showing that December’s pending home sales pace was down 2.2 percent last month and fell 9.8 percent from a year ago.
  • Pending sales represent homes that have a signed contract to purchase on them but have yet to close. They tend to lead existing-home sales data by 1 to 2 months.
  • All four regions showed declines from a year ago. The South had the biggest drop in sales of 13.5 percent. The West fell 10.8 percent followed by the Midwest with a decline of 7.2 percent. The Northeast had the smallest dip in sales of 2.5 percent.
  • From last month, three of the four regions showed declines in contract signings. The South region had the biggest drop of 5.0 percent. The Northeast fell 2.0 percent followed by the Midwest with a dip of 0.6 percent. The only region with an incline in contract signings was the West, which had a gain of 1.7 percent.
  • The U.S. pending home sales index level for the month was 99.0. November’s data was revised up to 101.2.

  • December’s decline was the the pending index’s first drop below the 100 mark after 55 consecutive months over the 100 level.
  • The 100 level is based on a 2001 benchmark and is consistent with a healthy market and existing home sales above the 5 million mark.

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The Roskelly Team
Jessica Hood, REALTOR®
1166 Route 3 South #106
Gambrills, MD  21045
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Jessica was excellent selling our Piney Orchard townhouse and helping us find and purchase our dream home! From the beginning, her marketing plan was impressive, her professional staging and the professional photos were so good, we almost didn't want to sell! When we were uneasy, she calmed our fears. She found us the absolutely perfect new home and helped us negotiate to get exactly what we wanted. She is extremely knowledgeable with many years of experience to draw from. Her team was great to work with as well, especially Darby who kept us up to date and was very responsive, taking care of all of the details! We are thankful to Jessica and her team for such great work! The Dupee Family - Piney Orchard
We wanted to let you know how thrilled we were with your service in selling our house! From the very first meeting to the very end, both of you made the whole experience painless. Your professionalism and knowledge of the market in our area gave us confidence that we would be able to sell our house quickly and you delivered! With your track record of selling at least two other homes in our neighborhood each within 7 - 10 days, we had all the confidence and firm belief you could add our house as #3 on your record. You informed us that it would be hard work, but together we met our goal date of putting the house on the market 45 days after we met and you selling it in two weeks. ↵↵We count our blessings every day and firmly believe that you and Jessica are the miracle workers in the real estate industry. You continued to do an outstanding job with the final negotiations and guiding us in the right direction. As a result of listening to you, we were able to sell our house for a fairprice which enabled us to enjoy the next chapter of our lives in Texas. Thank you again for your hel and most of all just being good and honest people in helping others sell there homes. Roger & Susan - Piney Orchard Home Sellers
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