Record number of renters believe renting is more affordable than owning


A recent report from CoreLogic showed that home prices increased 4% year over year in December, and projected the U.S. price index will rise by 5.2% by December 2020.

As home prices continue to rise nationally, it’s little wonder that Freddie Mac’s latest “Profile of Today’s Renter and Owner” found that the majority of current renters believe renting is more affordable than owning.

However, the percentage of renters who hold that belief has increased dramatically in the past year.

A whopping 84% of renters said they believe renting is more affordable than owning – an all-time high for the survey. For comparison, this number is up 17 percentage points from February 2018.

The survey also found that affordability issues affect the average renter more than a homeowner. Freddie Mac said there are 42% of renters who paid more than a third of their household income on rent.

This is compared to only 24% of homeowners who spend that amount on mortgage payments.

But there is good news for renters looking to own. Given current low interest rates, 40% of renters said they plan to purchase a home.

“The housing market is strong and, based on our survey, the low mortgage rate environment may inspire both renters and owners to make an educated move this spring,” said David Brickman, Freddie Mac CEO. “While Baby Boomers tend to be satisfied with their current housing situation, younger generations are still struggling to determine whether to rent or purchase a home, largely due to lack of supply and affordability constraints.”

And that lack of supply stretches beyond single-family housing. Last year saw record-high occupancy rates in multifamily housing with a shortage of supply. Naturally, this drove rent growth. Many of the renters surveyed by Freddie Mac voiced their worry in this area.

Almost 70% of renters said they are growing more concerned about their rent going up in the next 12 months, while 68% are concerned about not being able to afford their larger expenses. Even so, according to the majority surveyed, renting is still the more affordable option.



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Realogy unveils new CRM and app for agents


Realogy, the largest owner of U.S. real estate brokerages, this week unveiled a new suite of tools for its agents it’s calling a “productivity hub.”

It includes a customer relationship management (CRM) program as well as an app that allows agents to instant message with customers.

Other features still in development that will be included in the productivity hub in the future include a transaction management program, a lead management tool and a program for analytics and reporting data, Realogy said in a statement.

“It’s all about making agents productive, deepening agents’ relationships with existing clients and expand their network with new clients,” Dave Gordon, Realogy’s chief technology officer, said in an interview with HousingWire. “These tools enable them to do that, making them more productive and more efficient.”

Realogy is the owner of NRT, the nation’s largest brokerage measured by two key metrics: the total dollar volume of transactions and the number of real estate agents. In addition to NRT, Realogy brands include Better Homes and Gardens Real Estate, Century 21, Coldwell Banker, Corcoran, ERA, Sotheby’s International Realty.

In July, Realogy announced a partnership with Amazon, the world’s largest retailer, to match homebuyers with real estate agents through a program called TurnKey.

Potential buyers will be able to go through their Amazon account, click on TurnKey, put in details about the size, price and location of the home they want to buy, and then be matched with one of Realogy’s agents.

In return, customers get up to $5,000 of Amazon products and assistance called a “Move-In Benefit,” which includes help with chores and product installation through a division of the retailer called Amazon Home Services.



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RE/MAX: The December housing market broke records


By one measure, December 2019 was the strongest close to the year of any year in the last decade.

RE/MAX released its National Housing Report for December 2019 last week, which revealed that the month posted a record finish to a year and the decade.

December finished with a year-over-year increase in home sales of 13.5% in the 54 metros it covers. This is the highest increase of any month in 2019, the report said.

It’s also the highest for the month of December since 2009.

And as sales increased, inventory fell. According to RE/MAX’s report, December saw a 14.5% year-over-year decline in inventory.

Consequently, there was a significant drop in the months supply of inventory. According to the report, there was only 3.3 months of available inventory on the market as of December 2019, compared to 4.8 months in December 2018.

“It was good to see the year-over-year spike in December home sales, indicating robust homebuyer interest,” said Adam Contos, CEO of RE/MAX.

“The strong December capped a solid second half of 2019, with year-over-year sales increases in four of the final six months,” Contos added. “The gains were largely attributable to low interest rates and high demand, and with those factors still in place, we expect sales to continue at a solid pace into the first part of this year.”

Interestingly, housing inventory grew year over year in the first six months of 2019, but shrank for the last six months of 2019, the report said.

The median sale price of a home was $266,000 in December, 11.1% higher than in December 2018. It also represented the highest year-over-year increase for any month of 2019.

Leaders of the year-over-year sales percentage increase were Birmingham, Alabama, up 34.3%; Burlington, Vermont, up 26.7% and Los Angeles, up 26.2%.

Average days on the market remained near the same level as the previous year, with days on the market in December 2019 for 54.

That’s up five days from November’s average but down one day from December 2018’s average.

The metro with the lowest days on the market were Omaha, Nebraska at 24. Homes in Des Moines, Iowa spent the most time on the market, at 110 days.



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