The Real Estate Show

Radio Show Notes 2/26/20 Wednesday:

March 5th, 2020 3:33 AM by Eric Willner

Radio Show Notes 2/26/20 Wednesday:  The Real Estate Show Midweek Report Still Reveals A Strong Market Despite The Winter Season

 

The Real Estate discussed the recent news article released by the Nartional Association of Realtors (NAR) featured below. Radio Show Host Eric Willner shared the article and his perspective on where the market is and where it is going,

 

Read a summary of the show below or

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WASHINGTON (February 21, 2020) – Existing-home sales declined in January, continuing a fluctuating pattern of monthly increases and declines, according to the National Association of Realtors®. Significant declines in the West region dragged down nationwide numbers, with the other three major U.S. regions reporting marginal – or no – changes last month.

Total existing-home sales,1 https://www.nar.realtor/existing-home-sales, completed transactions that include single-family homes, townhomes, condominiums and co-ops, decreased 1.3% from December to a seasonally-adjusted annual rate of 5.46 million in January. However, for the second straight month, overall sales substantially increased year-over-year, up 9.6% from a year ago (4.98 million in January 2019).

Lawrence Yun, NAR’s chief economist, finds the outlook for 2020 home sales promising despite the drop in January. “Existing-home sales are off to a strong start at 5.46 million.” Yun said. “The trend line for housing starts is increasing and showing steady improvement, which should ultimately lead to more home sales.”

See and share this infographic.

The median existing-home price2 for all housing types in January was $266,300, up 6.8% from January 2019 ($249,400), as prices increased in every region. January’s price increase marks 95 straight months of year-over-year gains. “Mortgage rates have helped with affordability, but it is supply conditions that are driving price growth,” Yun said.

Total housing inventory3 at the end of January totaled 1.42 million units, up 2.2% from December, but down 10.7% from one year ago (1.59 million). The housing inventory level for January is the lowest level since 1999. Unsold inventory sits at a 3.1-month supply at the current sales pace, up from the 3.0-month figure recorded in December and down from the 3.8-month figure recorded in January 2019.

NAR’s latest quarterly report found that an overwhelming majority of metro areas experienced price gains while witnessing very minor increases in inventory in the final quarter of 2019.

Properties typically remained on the market for 43 days in January, seasonally up from 41 days in December, but down from 49 days in January 2019. Forty-two percent of homes sold in January 2020 were on the market for less than a month.

First-time buyers were responsible for 32% of sales in January, up from 31% in December and up from 29% in January 2019. NAR’s 2019 Profile of Home Buyers and Sellers – released in late 20194 – revealed that the annual share of first-time buyers was 33%.

“It is good to see first-time buyers slowly stepping into the market,” Yun said. “The rise in the homeownership rate among the younger adults, under 35, and minority households means an increasing number of Americans can build wealth by owning real estate. Still, in order to further expand opportunities, significantly more inventory and home construction are needed at the affordable price points.”

Individual investors or second-home buyers, who account for many cash sales, purchased 17% of homes in January, equal to December 2019 and up slightly from 16% in January 2019. All-cash sales accounted for 21% of transactions in January, up from 20% in December but down from 23% in January 2019.

Distressed sales3 – foreclosures and short sales – represented 2% of sales in January, unchanged from December 2019 and down from January 2019.

Realtor.com®’s Market Hotness Index, measuring time-on-the-market data and listing views per property, revealed that the hottest metro areas in January were Fort Wayne, Ind.; San Francisco-Oakland-Hayward, Calif.; Sacramento-Roseville-Arden-Arcade, Calif.; Lafayette-West Lafayette, Ind.; and San Jose-Sunnyvale-Santa Clara, Calif.

According to Freddie Mac, the average commitment rate(link is external) for a 30-year, conventional, fixed-rate mortgage decreased to 3.62% in January, down from 3.72% in December. One year ago, the commitment rate was 4.46%.

“We are hopeful and also confident that home sales will improve this year,” said NAR President Vince Malta, broker at Malta & Co., Inc., in San Francisco, Calif. “NAR has and will continue to do its part in the industry, reiterating the social and economic benefits of homeownership and advancing conversations surrounding housing affordability concerns.”

Single-family and Condo/Co-op Sales

Single-family home sales sat at a seasonally-adjusted annual rate of 4.85 million in January, down from 4.91 million in December, but up 9.7% from a year ago. The median existing single-family home price was $268,600 in January 2020, up 6.9% from January 2019.

Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 610,000 units in January, down 1.6% from December but 8.9% higher than a year ago. The median existing condo price was $248,100 in January, an increase of 5.7% from a year ago.

Regional Breakdown

Compared to last month, January sales increased in the Midwest and the South, while year-over-year sales are up in each of the four regions. Median home prices in all regions increased from one year ago, with the Northeast region showing the strongest price gain.

January 2020 existing-home sales in the Northeast saw no movement, recording an annual rate of 730,000, which is up 7.4% from a year ago. The median price in the Northeast was $312,100, up 11.5% from January 2019.

Existing-home sales increased 2.4% in the Midwest to an annual rate of 1.29 million, which is up 8.4% from a year ago. The median price in the Midwest was $200,000, a 5.4% increase from last January.

Existing-home sales in the South grew 0.4% to an annual rate of 2.38 million in January, up 11.7% from a year ago. The median price in the South was $229,900, a 6.3% increase from this time last year.

Existing-home sales in the West fell 9.4% to an annual rate of 1.06 million in January, an 8.2% increase from a year ago. The median price in the West was $393,800, up 5.2% from January 2019.

The National Association of Realtors® is America’s largest trade association, representing more than 1.4 million members involved in all aspects of the residential and commercial real estate industries.

# # #

On another newsworthy topic related to the theme of Clean It Up To Take It Up, The Real Estate Show spotlighted the importance of your credit score with some noteworthy statistics. According to a recent article by CNBC, a good credit score could potentially help you save up to $45,000. Alternatively, a bad credit score could cost you the same amount in expenses. It’s important to Clean It Up To Take It Up,(your credit score) in order to set up a successful year ahead.

Want to “Clean It Up To Take It Up”? 

Here are some Important and General Credit Score Statistics:

1.    More than 50 million adults had no credit score at all in 2015 [Source: Consumer Finance]

2.    Roughly 26 million Americans are credit invisible, meaning they have no credit history with a nationwide consumer reporting agency [Source: Consumer Finance]

3.    19 million Americans have credit history that has gone stale or is insufficient to produce a score under the most common scoring models [Source: Consumer Finance]

4.    76% of adults ages 18 to 24 say they never check their credit scores [Source: Financial Maintenance]

5.    47% of employers check an applicant’s credit score and history during the interview process [Source: Demos]

6.    54% of Americans say they never check their credit scores [Source: Financial Maintenance]

7.    Credit scores weren’t invented until 1950 when Bill Fair and Earl Isaac founded FICO [Source: The Street]

8.    Your credit score may predict how long you’ll be married – the Federal Reserve conducted a study that concluded that the closer the match of two partners’ credit scores at the beginning of the relationship, the more likely they are to stay together [Source: Federal Reserve]

9.    It’s possible to get a mortgage with a credit score of zero through a process called manual underwriting [Source: The Balance]

10.                Education level, savings account balance, stock portfolio, employment status, and salary are all not factored into your credit score [Source: MyFICO]

11.                More than half a million Credit Karma members achieved an average first score of 639 after not having an initial TransUnion score when they checked their credit scores for the first time [Source: Credit Karma]

12.                If you check your credit for the first time and don’t see an initial score, it may take an average of five months before you see a score [Source: Nerd Wallet]

13.                Closed credit card accounts can continue to appear on your credit report, affecting your scores for up to ten years [Source: Points Guy]

14.                Hard inquiries into your credit report, like those done by creditors, can remain on your report for up to two years [Source: Investopedia]

FICO statistics

15.                The average FICO score hit 700 for the first time in April of 2017 [Source: FICO]

16.                Less than 1% of the U.S. population has a perfect FICO score of 850 [Source: CreditDonkey]

17.                A credit score of anything above 810 is considered “perfect,” because improving your score further is unlikely to be significantly beneficial [Source: WalletHub]

18.                12% of the U.S. population has a FICO score below 550 [Source: CreditDonkey]

19.                There’s a 3.5% year-over-year decrease in the recent serious delinquency rate between 2016 and 2017 [Source: FICO]

VantageScore statistics

20.                The average VantageScore credit score in 2017 was a 673 [Source: ValuePenguin]

21.                Minnesota had the highest average VantageScore credit score in 2017 with a score of 709 [Source: FICO]

22.                Adults ages 22 to 35 have an average VantageScore credit score of 634 [Source: CreditDonkey]

23.                Adults age 70 and older have an average VantageScore credit score of 730 [Source: CreditDonkey]

24.                Average VantageScore credit score for each of the ten most populous states in 2017 [Source: Census Bureau]

o    California: 680

o    Texas: 656

o    Florida: 668

o    New York: 688

o    Pennsylvania: 687

o    Illinois: 683

o    Ohio: 678

o    Georgia: 654

o    North Carolina: 666

o    Michigan: 677

25.                0.1% of individuals with VantageScore credit scores of 800 or above have tax liens and civil judgements on their credit reports [Source: VantageScore]

26.                People with a credit score of 800 or above have credit card limits totaling $46,700 on average, of which they generally use less than 5% [Source:VantageScore]

Average credit score statistics

27.                Average credit score per age group, as of April 2017 [Source: Time]

o    18–29 years old: 652

o    30–39 years old: 671

o    40–49 years old: 685

o    50–59 years old: 709

o    60+ years old: 743

28.                Average credit score per income bracket [Source: ValuePenguin]

o    Low Income: 664

o    Moderate Income: 716

o    Middle Income: 753

o    Upper Income: 775

29.                Average credit score over the last decade [Source: ValuePenguin]

o    2017: 700

o    2016: 699

o    2015: 695

o    2014: 693

o    2013: 691

o    2012: 690

o    2011: 690

o    2010: 687

o    2009: 690

o    2008: 690

o    2007: 690

Credit scores aren’t as complicated as they may seem. You can Clean It Up To Take It Up. Maintaining a strong credit score is crucial to financial stability and can help you get approved for loans and credit cards. Not sure how to look at or take care of your credit score? There are many great resources available to help you view and build credit, including credit repair sites and other financial assistance. You can also visit www,TimeToFixMyCredit.com to 

Click the link at the top of the articles to hear today's live show recorded in full and On-Demand.

 

Interested in making real estate investing a business? Then just log onto www.automaticlandlord.com  and transform your business into the income source you dreamed of. Find out more on today’s episode and learn more about Real Estate Investing and learn HOW by listening to The Real Estate Show with Eric Willner , Live every weekday evening at 8 o’clock (EST) on Florida’s Money Talk Radio station WWNN AM1470,  FM 95.3, FM 96.9, and FM 103.9. You can also hear us on the free apps: iHeart Radio and TuneIn. Recorded Rebroadcasts are available 24/7 on Facebook. Please share our Facebook updates.

 

Rebroadcasts are available 24/7 on Facebook. Please share our Facebook updates.

 

Meanwhile, I can give more details in a special FREE strategy session available by appointment online our website at www.automaticlandlord.com

 

Please share our Facebook updates and listen to the rebroadcasts on demand on Facebook.com/TheRealEstateShow 

Our other websites:

AutomaticLandlord.com 

MackBuysHouses.com                   To sell real estate fast for cash

MackSellsHouses.com                   To buy great investment properties

MackBargainHouseHunters.com To partner on real estate deals you find 

TimeToFixMyCredit.com                To build, fix or grow your credit and more!

90DayFreshStart.com                     To buy a home when the Banks say No!


Also listen to the rebroadcasts on demand on Facebook.com/TheRealEstateShow 

 

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Posted by Eric Willner on March 5th, 2020 3:33 AM

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