Urban Dwellers Are Choosing To Move To The Suburbs

Urban Dwellers Are Choosing To Move To The Suburbs

Urban Dwellers are Choosing To Move To The Suburbs – Urban trends of the last 50 years are showing signs of being reversed. A combination of the coronavirus pandemic, economic uncertainty, and social unrest is prompting folks to move from large cities and permanently relocate to more sparsely populated areas.

Metropolitan areas across the U.S. are experiencing residents of all ages and incomes moving in record numbers to suburban areas and small towns – places where social distancing is more of a built-in part of everyday life. The trend has been accelerated by shifting attitudes and technology that makes it easier than ever to work remotely.  

According to data from a recent Harris Poll survey, nearly a third of Americans are considering moving to less densely populated areas as a result of the pandemic. “Space now means something more than square feet,” Harris Poll CEO John Gerzema said. “Already beset by high rents and clogged streets, the virus is now forcing urbanites to consider social distancing as a lifestyle.”

Urbanites (43%) were twice as likely than suburban (26%) and rural (21%) dwellers to have recently browsed a real estate website for homes and apartments to rent or buy, the survey showed.  

The shifts happening during this pandemic are not only challenging and far-reaching, but they could continue long after a vaccine or treatment is found. “People will be much more cautious about living in high-density areas with so many people nearby,” predicts Lawrence Yun, chief economist at the National Association of Realtors.  

More than half of the nation’s 100 largest metropolitan areas are seeing increased interest in the suburbs.  Recent data from Realtor.com suggests people are interested in moving and there seems to be an increasing appeal in properties outside of cities. 

Realtor.com figures, which compared this June to June of 2019, found that homes in rural and suburban zip codes saw the biggest jump in average views per property. Homes in urban zip codes had a 19% increase in views compared to last year. But homes in suburban zip codes had a much larger 30%  jump. Homes in rural zip codes saw a 34% increase in views.

Although property views are not sales, these numbers do reflect at least an interest in getting out of the most densely packed areas and into communities that are more spread out. The demand for homes is fuelled not only by fears that coronavirus infections in densely populated urban areas could rise again next winter but also by fundamental shifts in demand from in-office to remote workers. 

Many experts say that It’s not yet clear how the pandemic will reshape cities in the long run, but it has definitely accelerated trends that were already underway before the coronavirus outbreak. If the allure of cities declines further due to the risk of disease, an uncertain economy, and a future of telework, the flight to suburbia and rural safety will continue well after a coronavirus vaccine or treatment becomes available.

Partner with Top-rated Farmington Hills MI REALTOR® – Tom Gilliam 

2020 Best of Farmington Hills REALTOR - Tom GilliamA top-rated Farmington Hills and Oakland County MI real estate agent like Tom Gilliam can show you more properties and save you thousands of dollars when buying a home. You need an agent who knows the area, processes a vast network of local connections, and has the skills to negotiate like a pro.

From first-time homebuyers to multi-million dollar investors, Tom continually strives to provide top quality service for his clients. With access to the most up-to-date MLS listings for Farmington Hills and Oakland County MI properties, Tom is able to match his clients’ lifestyle needs with the perfect home.

If you are ready to list your current property, Tom has the experience and skills necessary to handle the marketing and sale of your home. Tom employs the latest technology to deliver massive exposure that will drive mega-response from qualified buyers.   

Search the MLS for Properties in Farmington Hills MI

With over 25 years of local real estate experience, Tom will protect your interests and work hard for you in order to ensure a smooth and successful transaction. If you or someone you know is interested in buying or selling Farmington Hills MI real estate, please give top-rated Farmington Hills MI REALTOR® Tom Gilliam a call today at 248-790-5594 or you can get in touch here.

Tom Gilliam, REALTOR®
RE/MAX Classic
29630 Orchard Lake Rd.
Farmington Hills 48334
Call: 248-790-5594
Office: 248-737-6800
Email: Tom @ Homes2MoveYou.com
License #314578

Article sources:

The Residential Real Estate Market is Bouncing Back – July 2020

The Residential Real Estate Market is Bouncing Back – July 2020

The Residential Real Estate Market is Bouncing Back – July 2020 – Even with the coronavirus pandemic, a recession, protests, and record unemployment, the residential real estate market is staging a rebound. So, what is the big reason for a bounce-back in real estate sales?  “The number of buyers in the market far outstrips the number of homes available,” says Realtor.com Economist George Ratiu.  After months on hold, Americans are beginning to feel more confident about the idea of buying or selling a home.

Buyer demand has been incredibly strong since mid-May after the coronavirus shut down most housing activity in April. The only thing standing in the way of more sales is the record-low supply of homes for sale. According to realtor.com data, median home prices went up 6.2% year over year in the week ending June 27, and homes are selling faster than they did in 2019 before anyone had ever heard of COVID-19. 

Redfin reported that more than half of its offers faced competition in June. Specifically, 54% of home offers placed by the real estate agency’s representatives faced bidding wars. Redfin Economist Taylor Marr commented on this almost surreal state that the housing industry now finds itself in:

“Bidding wars continue to be fueled by historically low mortgage rates and fewer homes up for sale than almost any time in the last two decades. It’s like a game of musical chairs where only the best bidders get a seat. Both renters and move-up buyers who have held onto their jobs are vying for the small number of single-family homes on the market as they realize they need more space for their families,” stated Marr.

Ali Wolf, the chief economist of Meyers Research (a national real estate consulting firm) stated that “The housing recovery has been nothing short of remarkable. The expectation was that housing would be crushed. It was—for about two months—and then it came roaring back.”  Nearly two-thirds of consumers (61%) said it was a good time to buy a home in June, based on a Fannie Mae housing survey of 1,000 participants – a 9 percentage point increase from May. Roughly 41% of respondents said it was a good time to sell, also an increase of 9 percentage points from the previous month.  

“The second month of improvement in June allowed the HPSI (Fannie Mae Home Purchase Sentiment Index®) to regain some of the sharp losses in optimism observed in March and April,” said Doug Duncan, Senior Vice, and Chief Economist. “The share of renters who say it’s a good time to buy a home is now at its highest level in five years, suggesting favorable conditions for first-time homebuying, consistent with the recent rebound in home purchase activity.” 

Buyers shouldn’t expect deep discounts, at least not yet. Unlike the Great Recession, a flood of foreclosures isn’t expected to hit the market, bringing prices down.

Another major reason for the housing market’s rebound is the record-low mortgage interest rates which have created a surge of mortgage applications for home purchases. After a short pullback at the end of June, homebuyers lunged back into the mortgage market to take advantage of record-low mortgage rates. Mortgage applications to purchase a home rose 5% for the week and were a remarkable 33% higher than a year ago, according to the Mortgage Bankers Association’s index, which was seasonally adjusted, including for the Fourth of July holiday.

Information released by the Mortgage Bankers Association showed that the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of up to $510,400 dropped to 3.26% from 3.29%. Points, including the origination fee, for loans with a 20% down payment decreased to 0.35 from 0.36.

More optimism that came earlier this month was when Black Knight announced that active forbearance plans fell an additional 435,000 weekly, which is the largest drop since the onset of the pandemic. As of July 7, 4.14 million homeowners were in forbearance plans, which represents 7.8% of all active mortgages—down from the prior week’s 8.6%. This represents around $900 billion in unpaid principal. 

Partner with Top-rated Farmington Hills MI REALTOR® – Tom Gilliam 

2020 Best of Farmington Hills REALTOR - Tom GilliamA top-rated Farmington Hills and Oakland County MI real estate agent like Tom Gilliam can show you more properties and save you thousands of dollars when buying a home. You need an agent who knows the area, processes a vast network of local connections, and has the skills to negotiate like a pro.

From first-time homebuyers to multi-million dollar investors, Tom continually strives to provide top quality service for his clients. With access to the most up-to-date MLS listings for Farmington Hills and Oakland County MI properties, Tom is able to match his clients’ lifestyle needs with the perfect home.

If you are ready to list your current property, Tom has the experience and skills necessary to handle the marketing and sale of your home. He employs the latest technology to deliver massive exposure that will drive responses from qualified buyers. Tom also partners with the most talented home stagers to ensure that your home is thoughtfully staged to showcase its features and amenities.

Search the MLS for Properties in Farmington Hills MI

With over 25 years of local real estate experience, Tom will protect your interests, advocate for you, and go the extra mile to ensure a smooth and successful transaction. If you or someone you know is interested in buying or selling real estate in Farmington Hills, MI, or in the Oakland County area, please give top-rated Farmington Hills MI REALTOR® – Tom Gilliam a call today at 248-790-5594 or you can get in touch here.

Tom Gilliam, REALTOR®
RE/MAX Classic
29630 Orchard Lake Rd.
Farmington Hills 48334
Call: 248-790-5594
Office: 248-737-6800
Email: Tom @ Homes2MoveYou.com
License #314578

Article Sources:

https://www.fanniemae.com/portal/research-insights/surveys/national-housing-survey.html
https://www.realtor.com/news/trends/housing-market-rebounds/
https://www.floridarealtors.org/news-media/news-articles/2020/07/pandemic-recession-and-protests-havent-hurt-housing
https://www.redfin.com/blog/june-2020-real-estate-bidding-wars-increase/
https://www.blackknightinc.com/blog-posts/forbearances-see-largest-weekly-drop-yet/

NAR’s 5-Point Plan To Help Increase African-American Homeownership

NAR’s 5-Point Plan To Help Increase African-American Homeownership

NAR’s 5-Point Plan To Help Increase African-American Homeownership – Even with the COVID-19 pandemic, interest in home buying is strong as reflected in the surge in mortgage applications to buy a home. According to the Mortgage Bankers Association, mortgage applications to buy a home spiked 4% last week to an 11-year high. 

The jump in demand was likely fueled by falling mortgage rates. The fixed 30-year rate fell to 3.3%, the lowest in the MBA survey’s history. That being said, however, there isn’t enough supply to meet demand and significant growth in new home construction is needed.

Before the pandemic hit, the U.S. faced a housing shortage due to multiple years of underproduction of new homes. The housing shortage has intensified as we enter into the second half of 2020.

As a result, home prices are likely to rise, making ownership opportunities for first-time buyers, including minorities, that much more challenging. More homes need to built to offset demand and keep home prices from escalating.   

The homeownership rate for African-American households is now at 44% – compared with an overall U.S. rate of 65.3%. A year ago, it fell to 40.6%, which was the smallest share recorded for Black households since the 1950 decennial Census when it was at 34.5%.

With much of the nation’s attention currently focused on fighting for racial equality, particularly as it relates to African-Americans, the following five-point plan outlined by the National Association of REALTORs® would increase the number of Black homeowners. 

NAR Chief Economist Lawrence Yun stated that “given the events of the recent weeks, it highlighted the progress, or lack of progress, among the African-American community,” adding that the access to homeownership is a critical source for building financial wealth. 

NAR’s five-point plan to help increase minority homeownership, especially for African Americans, includes: 

1). Build more homes to increase supply: The lack of housing supply makes converting from renting to owning very difficult. The lack of viable purchase options and resulting competition rapidly push up home prices, precluding some potential first-time buyers from entering the market. 

Yun stated that since the pool of potential first-time buyers is higher in the minority population if the industry can increase supply, it could help minority households lock in a home. 

2). Build more homes in Opportunity Zones:  NAR strongly supports Opportunity Zones as a means by which to invest in the revitalization of economically-distressed areas. Yun posed the question: “Since the industry needs to build so many homes, why not build or sell homes in the Opportunity Zones to help revive some of those areas?”

He added that there is even a tax break in certain geographically defined opportunity zones for developers to go in and build homes, helping the revitalization of economically-distressed areas. 

3). Increase access to down payment assistance: Saving for a down payment can be the biggest hurdle for renters wanting to become homeowners. In recent years, a growing number of first-time buyers received help from family members with their down payments. 

However, due to historical gaps in accessing and accumulating wealth, it’s much more difficult for African-Americans to obtain substantial financial assistance from family members. Therefore, increased access to federal down payment assistance based on a certain income threshold is vital, particularly for African-Americans. 

4). Strengthen FHA’s loan program: FHA loans have been an important source of financing for first-time buyers and minority households. Shifting federal dollars to strengthen the FHA program could lower mortgage insurance premiums and monthly mortgage payments. 

Yun explained that many minority households are able to become first-time buyers primarily due to FHA mortgages, making the product an important source of financing. 

5). Expand alternative credit scoring models: NAR outlined that expanding credit scoring models to include rent and utility payments would help Black Americans boost their credit score. Yun also shared an estimate from the National Association of Real Estate Brokers that alternative credit scoring would open up buying to around 115,000 Black Americans per year.

Yun added that the industry needs to make sure that it doesn’t make the same mistakes it did in the past, especially 10 years ago with the subprime lending debacle.

The homeownership rate for African-American households fell more than seven percentage points from 47.8% at the start of the financial crisis to last summer’s record low after some predatory lenders focused on minority communities.

“We need to ensure successful homeownership, not just temporary homeownership,” said Yun.

Partner with Top-rated Farmington Hills MI REALTOR® -Tom Gilliam  

A top-rated Farmington Hills and Oakland County MI real estate agent like Tom Gilliam can show you more properties and save you thousands of dollars when buying a home. You need an agent who knows the area, processes a vast network of local connections, and has the skills to negotiate like a pro. From first-time homebuyers to multi-million dollar investors, Tom continually strives to provide top quality service for his clients. With access to the most up-to-date MLS listings for Oakland county MI properties, Tom is able to match your lifestyle needs with the perfect home.

If you are ready to list your current property, Tom has the experience and skills necessary to handle the sale and marketing of your home for the optimum results. Tom employs the latest technology to deliver massive exposure that will drive mega-response from qualified buyers. Tom also partners with the most talented home stagers to ensure that your home is thoughtfully staged to best showcase its features and amenities.

With over 25 years of local real estate experience, Tom will protect your interests, advocate for you, and go above and beyond your expectations to ensure a smooth and successful transaction. If you or someone you know is interested in buying or selling Farmington Hills MI real estate, please give Tom a call today at 248-790-5594 or you can get in touch here.

Tom Gilliam, REALTOR®
RE/MAX Classic
29630 Orchard Lake Rd.
Farmington Hills 48334
Call: 248-790-5594
Office: 248-737-6800
Email: Tom @ Homes2MoveYou.com
License #314578

Latest Update On The Current Housing Market – May 21, 2020

Latest Update On The Current Housing Market – May 21, 2020

Latest Update On The Current Housing Market – May 21, 2020Since the onset of COVID-19, forecasts on the housing market run the gamut from optimistic to pessimistic as things continue to change from week-to-week.  

In the early stages of the outbreak in February of this year, the market was cruising along at a steady pace with sellers continuing to gain leverage, and buyers benefiting from lower mortgage rates. The month of February showed some early signs of coronavirus outbreak, especially in those markets that were hit early and hard. 

 

Days on The Market – 15 Days Longer

Now, with states just beginning to open up, days on market is a half a month longer than this time last year, according to REALTOR.com’s current weekly housing trends report. This is the biggest increase in time on the market since 2013.

“Days on the market” is the number of days that a property has been listed on the local multiple listing services (MLS) until a seller has accepted an offer and signed a contract. It can also be referred to as “time on market” or “market time.”

New listings were also down 28% with declines continuing nationwide. This trend is visible in local data as well as the national figures, with 69 of the largest 100 metros showing similar double-digit percent increases in time on market from one year ago.

“Mid-May is normally the time of year when homes sell the fastest,” as it’s in the thick of the busy spring home-buying season, says realtor.com Chief Economist Danielle Hale. 

Median listing prices are still growing at a slower pace than before the COVID-19 situation, but according to REALTOR.com, it’s expected that time on market figures will improve in late summer, especially as buyers try to make up for the missed spring season.

 

Home Prices Still Remain Strong

Although home sales have declined due to social distancing & economic unpredictability, home prices are still strong across the nation.

According to the National Association of Realtors® the median existing-home price for all housing types in March was $280,600 – up 8.0% from March 2019 ($259,700), as prices increased in every region.

The median home price gains mark 97 straight months of year-over-year gains (nationally). In March, the unsold inventory was equal to a 3.4-month supply at the current sales pace, up from three months in February and down from the 3.8-month figure (from a year ago).

According to Realtor.com, in April 2020, the median national listing price grew by only 0.6 percent year-over-year, to $320,000. 

Of the largest 50 metros, now only 30 still saw year-over-year gains in median listing prices, down from 45 last month. Forty-seven of the 50 largest metros saw their year-over-year listing price growth decrease compared to last month.

 

Market Data Summary 

Week ending

May 16

Week ending May 9 Week ending May 2 First Two Weeks March
Time on Market 15 days slower YOY 13 days slower YOY 11 days slower YOY 4 days faster

YOY

New Listings  -28% YOY -29% YOY -39% YOY +5% YOY
Total Listings  -20% YOY -19% YOY -19% YOY -16% YOY
Median Listing Prices 1.5% YOY 1.4% YOY 1.6% YOY 4% YOY

 

Partner with Top-rated Farmington Hills and Oakland County MI REALTOR® -Tom Gilliam

 2020 Best of Farmington Hills REALTOR - Tom GilliamA top-rated Farmington Hill and Oakland County MI real estate agent like Tom Gilliam can show you more properties and save you thousands when you buy a home. You need an agent who knows the area, processes a vast network of local connections, and has the skills to negotiate like a pro.

From first-time homebuyers to multi-million dollar investors, Tom continually strives to provide top quality service for his clients. With access to the most up-to-date MLS listings for Oakland county MI properties, Tom is able to match your lifestyle needs with the perfect home.

If you are ready to list your current property, Tom has the experience and skills necessary to handle the sale and marketing of your home for the best possible results. Tom employs the latest technology to deliver massive exposure for your home to drive responses from buyers.

Tom also partners with the most talented home stagers to ensure that your home is thoughtfully staged to showcase its features and amenities in the best possible light.

With over 25 years of local real estate experience, Tom will always protect your interests, advocate for you, and go above and beyond your expectations to ensure a smooth and successful transaction.

If you or someone you know is interested in buying or selling Farmington Hills or Oakland County real estate, please give Tom Gilliam a call today at 248-790-5594 or you can get in touch here.

Tom Gilliam, REALTOR®
RE/MAX Classic
29630 Orchard Lake Rd.
Farmington Hills 48334
Call: 248-790-5594
Office: 248-737-6800
Email: Tom @ Homes2MoveYou.com
License #314578

What Oakland County Home Buyers & Sellers Can Expect in 2020 Due To COVID-19 

What Oakland County Home Buyers & Sellers Can Expect in 2020 Due To COVID-19 

What Oakland County Home Buyers & Sellers Can Expect in 2020 Due to COVID-19Before the pandemic hit this year, we were heading toward a busy spring season with strong economic indicators and buyers vying for a limited supply of homes. But with the pandemic sweeping across the country, we are now forced to reassess the year ahead.

According to realtor.com’s Chief Economist Danielle Hale, “COVID-19 has really dramatically changed the way the housing market is going to perform this year. We started off with the potential for the best year in more than a decade for sales. But we’re going to see ups and downs as the market grapples with an unsteady economy. This will affect buyers and sellers across the board.”

The amount of home sales has fallen over the past couple of months as the pandemic has caused many people to reevaluate their original plans to buy, sell, or potentially even move with the threat of COVID-19 looming over their heads. 

That being said, a revised forecast for 2020 by realtor.com® economists says home sales will rebound in the late summer and fall due largely to millennials eager to own a home of their own.

Real estate experts are also predicting that smaller markets, more affordable cities, and surrounding suburbs could be particularly active as people reconsider their attraction to city life during a pandemic. 

Those following stay-in-place orders while stuck in small-confined living spaces in pricey cities may seek out smaller cities and suburbs where they can get more bang for their buck such as more square footage and possibly even a backyard.

What Oakland County Home Buyers & Sellers Can Expect in 2020 Due to COVID-19

“The experience of being at home for a long period of time has everyone rethinking their priorities,” says Hale. “People are recognizing space is more important, so they’re looking for more affordable areas where they can have more space at the same price.”

The market will experience another downturn toward the end of 2020, according to Realtor.com. Sales of existing homes are expected to drop by around 15% this year compared with the previous year.

Realtor.com is anticipating 4.5 million sales this year, compared with 5.34 million the previous year. Their economic team had originally forecast in the latter part of 2019, that 5.25 million sales would take place in 2020.

For home sellers, there is one statistic that should give some comfort – home prices still appear to be on the rise according to recent data from Realtor.com. In the week ending April 25, the median home list price increased by 1.6% annually – compared to the previous year.

The data comes from the country’s largest metro areas. Given the turmoil in other segments of the economy, this is a positive sign and could provide reassurance regarding the stability of the housing market for those considering buying or selling real estate.

While many buyers have been eagerly anticipating massive falling prices due to the pandemic, and unlike anything we’ve seen since the Great Recession, history isn’t likely to repeat itself this time around.

The reason for this is the number of homes on the market has fallen by about 45% in April along with the demand from buyers. The current market is not experiencing an excessively abundant supply of homes for sale driving prices down, as sellers have been pulling their homes off the market. “Sellers don’t like to reduce their prices. So they decide not to sell,” says Hale.  

Home construction is also expected to slow – fueling the housing shortage. The number of homes on which construction has begun is expected to drop by 11% in 2020. Before COVID-19 stalled construction sites in certain states, realtor.com had expected starts to increase by 10% in 2020.

Partner with Top-rated Oakland County MI REALTOR® – Tom Gilliam

A top-rated Oakland County MI real estate agent like Tom Gilliam can show you more properties and save you thousands when you buy a home. You need an agent who knows the area, processes a vast network of local connections, and has the skills to negotiate like a pro. 

From first-time homebuyers to multi-million dollar investors, Tom continually strives to provide top quality service for his clients. With access to the most up-to-date MLS listings for Oakland county MI properties, Tom is able to match your lifestyle needs with the perfect home.

If you are ready to list your current property, Tom has the experience and skills necessary to handle the sale and marketing of your home for the best possible results. Tom employs the latest technology to deliver massive exposure for your home to drive responses from buyers.

He also partners with the most talented home stagers to ensure that your home is thoughtfully staged to showcase its features and amenities in the best possible light.

With over 25 years of local real estate experience, Tom will always protect your interests, advocate for you, and go above and beyond to ensure a smooth and successful transaction. 

If you or someone you know is interested in buying or selling Oakland County MI real estate, please give Tom a call today at 248-790-5594 or you can get in touch here.

Tom Gilliam, REALTOR®
RE/MAX Classic
29630 Orchard Lake Rd.
Farmington Hills 48334
Call: 248-790-5594
Office: 248-737-6800
Email: Tom @ Homes2MoveYou.com
License #314578

Pin It on Pinterest