The Best Places to Live in Georgia in 2021

Georgia, also known as the Peach State, features everything from fun city amenities like a thriving nightlife and the latest art openings to outdoor opportunities right in your suburban backyard.

It’s no surprise that Georgia has plenty of options for great places to live.

Atlanta’s growing economy with Coca-Cola, Home Depot and Delta Air Lines at the helm entice any visitor to move to the city. Farther south in Macon and Savannah, you can enjoy a growing music scene and fresh seafood, respectively, too.

Georgia provides a full spectrum of experiences for those visiting and considering moving here. Seriously, there are more than 100, just in Atlanta.

To help your search for your next home, here are the best places to live in Georgia, arranged in alphabetical order:

Alpharetta, Georgia.

  • Population: 67,213
  • Median household income: $113,802
  • Average commute time: 29 minutes
  • Walk score: 30
  • Studio average rent: N/A
  • One-bedroom average rent: $1,635
  • Two-bedroom average rent: $2,052

The Atlanta suburb of Alpharetta continues to make the best places to live lists, thanks to its vibrant culinary spots, shopping districts like Avalon, thriving tech and manufacturing industries and of course, education.

The city offers easy access to the airport, only 35 miles south via GA-400. You can head on your way to your next business trip or vacation in no time.

If you’re looking for the outdoors, you’re also less than 45 minutes from the North Georgia Mountains and cabin towns like Blue Ridge and Ellijay.

Downtown Alpharetta offers a walkable experience with boutiques, breweries and fine dining establishments lining the streets. Every weekend, the city comes down to stock up on local offerings at the Alpharetta Farmer’s Market.

With a one-bedroom average rent of under $1,700, you can find an affordable place with good schools nearby in Alpharetta.

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Athens, Georgia.

  • Population: 126,913
  • Median household income: $38,311
  • Average commute time: 19.4 minutes
  • Walk score: 35
  • Studio average rent: $712
  • One-bedroom average rent: $739
  • Two-bedroom average rent: $1,259

Sure, when you hear Athens, you think of the University of Georgia and the accompanying football tailgating. However, the city has more to offer than college fun.

While Athens is a small city, it does come with a great perk — affordability. You can rent a one-bedroom for $739 a month on average.

You also have access to arts and entertainment, thanks to Athens’ thriving music scene. Check out your favorite entertainer at the Georgia Theatre or discover a new one at the intimate 40 Watt Club.

The State Botanical Garden of Georgia and Sandy Creek Park offer opportunities to enjoy the mild Georgia weather and nature. End your weekend with a pint from local brewery Creature Comforts — yes, the one you saw in Thor’s hand during the last “Avengers” movie.

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Atlanta, GA.

  • Population: 506,811
  • Median household income: $59,948
  • Average commute time: 27.2 minutes
  • Walk score: 55
  • Studio average rent: $1,605
  • One-bedroom average rent: $1,655
  • Two-bedroom average rent: $2,140

From Fortune 500 companies to good music and food, Atlanta has plenty to offer as one of the best cities to live in Georgia. With more than half a million residents, the city has a diverse community that provides everything from an indie clothing store to large coffee chains.

Atlanta’s 45 neighborhoods all have their unique personality. You can find a luxury condo in Midtown or a charming craftsman home in Grant Park — just minutes from each other. Depending on the neighborhood, your walk score may improve, but you’ll have access to city parks and local dining options that range from Mexican to Italian and Ethiopian.

With those city amenities come high rent prices — you can find a studio on average for $1,605 a month. Keep in mind that easy access to MARTA rail and the bus line can help you skip long commutes at the end of the day.

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Augusta, Georgia.

  • Population: 197,888
  • Median household income: $42,592
  • Average commute time: 21.1 minutes
  • Walk score: 33
  • Studio average rent: $1,000
  • One-bedroom average rent: $1,013
  • Two-bedroom average rent: $1,153

While many know Augusta for the annual Masters golf tournament, its residents enjoy a rich history, a charming downtown and a growing economy year-round. The walk along the Savannah River in downtown Augusta indeed shows the beauty of the city.

The Gertrude Herbert Institute of Art and the Augusta Museum of History give you a glimpse of this Southern city’s history. The Summerville neighborhood has some of the most beautiful historic homes, preserved thanks to a local ordinance, with large columns and manicured lawns.

On the weekends, you can explore Broad Street and its small boutiques and restaurants on foot. During the warm months, the Augusta Market brings local artisans to the Savannah River’s River Walk park.

From tapas to nightlife, you can find it all here.

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Columbus, Georgia.

  • Population: 195,769
  • Median household income: $46,408
  • Average commute time: 20.6 minutes
  • Walk score: 35
  • Studio average rent: $553
  • One-bedroom average rent: $833
  • Two-bedroom average rent: $983

For those looking into affordable living, Columbus tops our list of best places to live in Georgia. You can get a two-bedroom apartment in the city for under $1,000 per month on average.

Only 90 minutes from Atlanta, Columbus is an outdoor lover’s paradise with the Chattahoochee River flowing nearby. The river provides incredible opportunities to whitewater one of the country’s longest courses and even zipline across it.

Elsewhere in the city, you can find a farmers market, artists market and free concert series set up in the downtown area.

The Springer Opera House features some of the best talents throughout annual performances and leads one of the most prominent theatre programs in the Southeast.

The city is also home to Fort Benning and the National Infantry Museum, the only one of its kind in the U.S.

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Decatur, Georgia.

Photo source: Agnes Scott College
  • Population: 25,696
  • Median household income: $106,088
  • Average commute time: 27.3 minutes
  • Walk score: 39
  • Studio average rent: $1,323
  • One-bedroom average rent: $1,403
  • Two-bedroom average rent: $1,587

The city of Decatur is only about five square miles, but it packs a lot of goodness. With three MARTA rail stations and a robust bike lane program, you can easily navigate the city without a car.

Agnes Scott College, an acclaimed women-only liberal arts college, provides interesting arts programming for residents to enjoy.

Only a few miles from downtown Atlanta and high-quality schools, Decatur’s housing is highly sought out. You can find a two-bedroom on average for $1,587 per month.

However, you’ll have access to some of the best restaurants in Georgia, like Kimball House, Leon’s Full Service and Brush Izakaya, along with regular community events in the square.

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Macon, Georgia.

  • Population: 153,159
  • Median household income: $41,334
  • Average commute time: 21.3 minutes
  • Walk score: 35
  • Studio average rent: $610
  • One-bedroom average rent: $1,050
  • Two-bedroom average rent: $1,172

Right at the heart of the Peach State and only two hours from Atlanta, Macon is a hub of job opportunities, higher education options like Mercer University and, of course, entertainment on the weekends.

Warner Robins, 20 miles away, offers job opportunities at the Robins Air Force Base as one of the state’s largest employers. Plus, your average commute time hovers around 20 minutes.

Downtown Macon features new, cool boutiques as well as iconic places that have regulars. Listen to the latest tunes at Fresh Produce Records and then hop to the Tubman Museum, an essential visit.

To learn more about Macon’s music history, The Little Richard House and Otis Redding Museum are both must-see stops for music lovers.

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Marietta, Georgia.

  • Population: 60,867
  • Median household income: $57,452
  • Average commute time: 28.5 minutes
  • Walk score: 31
  • Studio average rent: $1,018
  • One-bedroom average rent: $1,162
  • Two-bedroom average rent: $1,426

One of Cobb County’s gems, Marietta, offers good schools, a tight-knit community and rich history. Marietta City Schools hosts a diverse student body with high rankings in the state.

Near Marietta Square, a hub for most community events, you can find the Marietta Museum of History in a preserved 1845 warehouse building. There are a few other historical sites within the city center like the William Root House Museum & Garden and Kennesaw Mountain.

Not too far, at Truist Park, you can cheer on the Atlanta Braves and enjoy a meal at The Battery.

While Atlanta’s infamous traffic can keep you on I-75 for longer than you want, the average person commutes nearly 30 minutes to work.

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Sandy Springs, Georgia.

  • Population: 109,452
  • Median household income: $78,613
  • Average commute time: 26.1 minutes
  • Walk score: 44
  • Studio average rent: N/A
  • One-bedroom average rent: $1,630
  • Two-bedroom average rent: $2,007

Sandy Springs’ proximity to downtown Atlanta, Buckhead’s business district and the outdoors makes it one of the best places to live in Georgia. You’ll also have to the public transportation via the MARTA rail to avoid the 26-minute average commute.

The Chattahoochee River National Recreation Area and 16 city parks offer plenty of opportunities to get outside, explore new trails and even go on a kayak or two. You can also find Vickery Creek Falls nearby in Roswell.

For those into nightlife, you can check out Battle & Brew as well as plays at the City Springs Theatre Company and Act 3 Productions.

You can find a one-bedroom in the area for $1,630 a month on average.

If you’re looking for close proximity to the action while keeping a little quiet at home, this is the place for you.

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Savannah, Georgia.

  • Population: 144,464
  • Median household income: $43,307
  • Average commute time: 20.5 minutes
  • Walk score: 46
  • Studio average rent: $1,244
  • One-bedroom average rent: $1,197
  • Two-bedroom average rent: $1,346

Home to River Street and the Savannah College of Art and Design, Savannah’s Spanish moss-lined streets take you back to the past. The city’s downtown grid street system makes it incredibly walkable and easily enjoyable.

Despite all of the ghost stories and dark past, the city has plenty to offer delicious dining options, museums and outdoor opportunities. You can both enjoy fresh oysters on River Street next to the water and not too far, walk around the area that inspired the “Midnight in the Garden of Good and Evil” book.

The Port of Savannah played an essential role in local cotton and tobacco industries following its opening in 1744. These days, the port is a historic landmark and one of the fastest-growing ports in the country.

If you want a hop and a skip from Tybee Island, you can find a two-bedroom apartment for $1,346 a month on average.

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Find your own best place to live in Georgia

Georgia’s four seasons, affordability and growing economy have attracted people from all over. It’s no surprise that the Peach State has several great cities to pick from.

Whether you’re looking to relocate with your job or just looking for a new city to love, Georgia’s Southern charm and delicious food will reel you in.

Rent prices are based on a rolling weighted average from Apartment Guide and Rent.com’s multifamily rental property inventory of one-bedroom apartments in March 2021. Our team uses a weighted average formula that more accurately represents price availability for each individual unit type and reduces the influence of seasonality on rent prices in specific markets.
Other demographic data comes from the U.S. Census Bureau.
The rent information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.

Source: rent.com

10 Cities Near Seattle To Live in 2021

With its natural beauty and laid-back culture, there are many excellent reasons to move to the Seattle area. But the city has seen rapid population growth in recent years, along with an increased cost of living — causing a drawback for some. Fortunately, there are plenty of cities near Seattle that offer fantastic alternatives for every lifestyle.

Whether you’re looking for a safe suburb to raise a family in, a home base for outdoor excursions or a hip neighborhood with a thriving nightlife, there’s a city that offers what you’re looking for, all without traveling more than 30 minutes or so outside downtown Seattle. Consider adding the following places to your list.

Kirkland, WA. Kirkland, WA.

  • Distance from downtown Seattle: 11.1 miles
  • One-bedroom average rent: $2,069 (down 3.1 percent since last year)
  • Two-bedroom average rent: $2,521 (up 5.8 percent since last year)

Located on the Northeastern shore of Lake Washington, Kirkland offers easy proximity to downtown Seattle combined with a wooded, suburban feel. Many families find Kirkland appealing as an alternative to Seattle. They can find more space, excellent schools and the opportunity to live close to an urban center.

The city of Kirkland is on the waterfront. Its popular public parks on the lake offer opportunities for boating, swimming and beach volleyball. It also showcases a picturesque collection of restaurants and shops, perfect for an evening out.

Commuters to Seattle will enjoy a short drive into downtown, or you can choose the excellent public transit connections.

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Redmond, WA. Redmond, WA.

  • Distance from downtown Seattle: 15.3 miles
  • One-bedroom average rent: $2,141 (down 7.3 percent since last year)
  • Two-bedroom average rent: $2,712 (down 5.8 percent since last year)

Redmond is perhaps best known as the home of Microsoft. A resulting concentration of tech talent has attracted other tech companies as well as their employees, creating a diverse community of young professionals and families.

Redmond is sprawling and spacious, with wide sidewalks and plenty of trees. Many streets have bike lanes and paved bike paths connect to other nearby cities.

The city is in a beautiful natural setting and is home to Marymoor Park, which hosts outdoor concerts and features dozens of sports fields and a climbing wall.

Redmond also has excellent schools and a pleasant, walkable downtown core with many shops and restaurants.

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Des Moines, WA. Des Moines, WA.

  • Distance from downtown Seattle: 14.9 miles
  • One-bedroom average rent: $1,425 (down 1.4 percent since last year)
  • Two-bedroom average rent: $1,767 (down 1.8 percent since last year)

Des Moines is a quiet, affordable waterfront city located midway between Seattle and Tacoma along the Interstate 5 corridor. The municipality stretches along the water, with many options for stunning views of Puget Sound.

The small downtown includes some great restaurants and waterfront walks, with plenty of nearby trails and parks that offer hiking, biking and even camping.

Des Moines is on a rapid transit line that makes it easy to access nearby SeaTac and the Seattle-Tacoma International Airport or commute south to Federal Way or Tacoma.

The city will appeal to families and young professionals seeking an affordable option without sacrificing livability.

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Issaquah, WA. Issaquah, WA.

  • Distance from downtown Seattle: 17.2 miles
  • One-bedroom average rent: $2,013 (down 13.0 percent since last year)
  • Two-bedroom average rent: $2,389 (down 14.7 percent since last year)

The city of Issaquah spreads from the Sammamish Highlands down across the valley and into the hills known as the Issaquah Alps. Homes on these hills have beautiful views of the valley, while those in the lowlands are close to the quaint downtown core, which offers restaurants, cafes and many shopping options.

A dispersed, suburban city with an excellent school system, Issaquah has long been a popular choice for families. Recent development has also added housing choices for young, single professionals seeking an option outside the city.

There are plenty of outdoor recreation opportunities in the area, including hiking and mountain biking trails at the popular Tiger Mountain. Close enough to the wilderness for the occasional cougar sighting, Issaquah is also near enough to Seattle for an easy commute along Interstate 90.

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Sammamish, WA. Sammamish, WA.

  • Distance from downtown Seattle: 21 miles
  • One-bedroom average rent: $1,665 (up 1.0 percent since last year)
  • Two-bedroom average rent: $1,945 (down 2.5 percent since last year)

The Sammamish Plateau is known for world-class golf courses, but that’s not all it has to offer. This city to the east of Seattle frequently appears on best-of lists for livability, yet it is still more affordable than many similar cities nearby.

Some areas of Sammamish have an almost rural feel, while others are much denser. It’s possible to find a home that feels tucked in among the woods or an urban apartment, all in the same city.

In addition to golf, outdoor enthusiasts will enjoy the bike path around nearby Lake Sammamish and the proximity to wooded trails in the mountains.

Families will appreciate the above-average schools and quiet, safe streets.

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Snoqualmie, WA. Snoqualmie, WA.

  • Distance from downtown Seattle: 28.5 miles
  • One-bedroom average rent: N/A
  • Two-bedroom average rent: $1,699

If you’ve chosen to live in the Pacific Northwest for the outdoor adventure opportunities, Snoqualmie has a lot to offer. Just under 30 miles east of Seattle along I-90, Snoqualmie is perhaps best known for the iconic Snoqualmie Falls, which are not only a scenic tourist attraction but also power generators that provide electricity to the town.

Natural beauty surrounds Snoqualmie, with plenty of opportunities to get out and explore the surrounding Cascade foothills in all seasons.

While it has become increasingly popular as a bedroom community for Seattle, Snoqualmie retains its own identity and small-town feel. It has a vibrant arts community, restaurants and shopping options.

In 2019, it was rated the safest city in Washington.

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Everett, WA. Everett, WA.

  • Distance from downtown Seattle: 28.6 miles
  • One-bedroom average rent: $1,570 (down 6.1 percent since last year)
  • Two-bedroom average rent: $1,758 (up 3.6 percent since last year)

For those looking for an urban feel at an affordable price, Everett offers a great alternative to Seattle.

With an economy historically based on manufacturing for companies such as Boeing, Everett retains a blue-collar sensibility that does not prevent it from offering a vibrant art and culture scene, as well as many interesting restaurants and bars.

Sports fans can cheer on the Everett Aquasox, the local minor league baseball team, and for hockey enthusiasts, there is the Everett Silvertips. The Angel of the Winds Arena is one of the major sports and concert venues in the region, offering plenty of entertainment options.

With Puget Sound to the west and the Snohomish River to the East, Everett, like many nearby cities, has a deep, natural beauty that adds to the appeal.

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North Bend, WA. North Bend, WA.

  • Distance from downtown Seattle: 29.3 miles
  • One-bedroom average rent: N/A
  • Two-bedroom average rent: $3,014 (up 12.9 percent since last year)

North Bend is the ultimate destination for outdoor enthusiasts. Its location amid the Cascade mountains’ foothills puts you close to hiking trails, mountain biking and winter skiing opportunities.

Popular local hikes, such as Mount Si and Rattlesnake Ridge, are just minutes away. Even for those who are less inclined to search for adventure, picturesque peaks provide a gorgeous backdrop for everyday life.

Famous as the filming location of the TV show Twin Peaks, North Bend has a genuine small-town feel, with a quaint downtown featuring cafes, restaurants, boutiques and breweries.

North Bend has grown rapidly in recent years, with many of its 7,423 residents choosing it for its rural location. Despite the remote vibe, it is just over 30 minutes from Seattle along I-90, making it a popular choice for commuters.

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Tacoma, WA. Tacoma, WA.

  • Distance from downtown Seattle: 33.9 miles
  • One-bedroom average rent: $1,734 (up 11.2 percent since last year)
  • Two-bedroom average rent: $1,978 (up 13.1 percent since last year)

Tacoma is a city with a lot to offer at an affordable price.

The historic downtown faces Puget Sound, with gorgeous waterfront views. You’ll find great restaurants and shopping options. The downtown area is compact and walkable, but you can also get around easily by bus and rapid transit.

In the downtown core, you’ll encounter young professionals and students from the University of Washington Tacoma campus.

Up the hill, you’ll find residential neighborhoods, each with its own unique feel. Families enjoy good schools and quiet neighborhood streets.

Anyone who has driven through the city will have seen the Tacoma Dome, an event space that hosts events from car shows to concerts. Those in search of culture will also enjoy the Tacoma Art Museum and the Museum of Glass.

On the waterfront, Point Defiance Park is a popular destination for hiking, boating or picnicking with a view.

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Lake Stevens, WA. Lake Stevens, WA.

Photo source: City of Lake Stevens, WA / Facebook
  • Distance from downtown Seattle: 36.6 miles
  • One-bedroom average rent: $1,500 (up 22.5 percent since last year)
  • Two-bedroom average rent: N/A

Located on the lake for which it’s named, Lake Stevens is a growing community that is particularly popular among families with children.

With more affordable prices than many surrounding cities due to its slightly longer drive time to Seattle, Lake Stevens has a small-town feel with an emphasis on community. The city is a good option for those looking for a calm, quiet location well outside of Seattle.

Lake Stevens is a popular boating destination in the summer, and the town and its surroundings are full of natural beauty.

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Make one of these cities near Seattle your next home

Find a home that’s right for you in one of these Pacific Northwest cities. Your next apartment near Seattle awaits.

Rent prices are based on a rolling weighted average from Apartment Guide and Rent.com’s multifamily rental property inventory pulled in April 2021. Our team uses a weighted average formula that more accurately represents price availability for each individual unit type and reduces the influence of seasonality on rent prices in specific markets.
The rent information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.

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Source: apartmentguide.com

When Will the Next Housing Market Crash Take Place?

I’ve noticed a trend lately. Everyone’s a real estate expert.

It seems the most recent crisis and recovery has turned just about every single person into a guru on all things to do with home buying and selling.

I suppose part of it has to do with the fact that the massive housing bubble that formed a decade ago swept the nation and was front page news.

It also directly affected millions of Americans, many who serially refinanced their mortgages, then found themselves underwater, then eventually short sold, were foreclosed upon, or held on for the ride back up to new heights.

It’s a common conversation piece these days to talk about your local housing market.

Thanks to greater access to information, folks are scouring Redfin and Zillow and coming up with theories about what that home should sell for, or what they should have listed it for.

Neighbors are getting upset when nearby listings are not to their liking for one reason or another. What were they thinking?!

A New Housing Bubble Mentality

  • Real estate is red-hot again thanks to limited supply and intense demand
  • It can feel like an ominous sign that we’re headed down a dark road again
  • But that alone isn’t reason enough for the housing market to crash again
  • There have to be clear catalysts and financial stress for another major downturn

All of this chatter portends some kind of new bubble mentality in my mind, though it seems everyone is just basing their hypotheses on the most recent housing bust, instead of perhaps considering a longer timeline.

One could look at the recent run-up in home prices as yet another bubble, less than a decade since home prices bottomed around 2012.

After all, many housing markets have now surged well beyond their previous lofty levels seen about 15 years ago when home prices peaked.

For example, Denver area home prices are about 86% higher than they were in 2006. And back then, everyone felt home prices were completely out of control.

In other words, home prices were haywire, and are now nearly double that.

Meanwhile, the typical U.S. home is currently valued around $273,000, per Zillow, which is about 27% higher than the peak of $215,000 seen in early 2007.

It’s also nearly 70% higher than the typical home price of $162,000 back in early 2012, when home prices more or less bottomed.

So if want to look at home prices alone, you could start to worry (though you also have to factor in inflation which will naturally raise prices over time).

But they say bubbles are financially driven, and we’ve yet to see a return to shoddy underwriting.

I will say that there’s been a recent return of near-zero down financing, with many lenders taking Fannie and Freddie’s 97% LTV program a step further by throwing a grant on top of it.

This means borrowers can buy homes today with just 1% down payment, and even that tiny contribution can be gifted from someone else.

So things might be getting a little murky, especially if you consider the increase in prices over the past four or five years.

One could also argue that affordability is being supported by artificially low mortgage rates, which history tells us won’t be around forever.

There’s also a general sense of greed in the air, along with a feeling amongst homeowners that they’re getting richer and richer by the day.

That type of attitude sometimes breeds complacency and unnecessary risk-taking.

But When Will Home Prices Crash Again?!

real estate cycle

  • If you believe in cycles, which seem to be pretty evident in real estate and elsewhere
  • We will see another housing crash at some point relatively soon
  • There appears to be an 18-year cycle that has been observed for the past 200 years
  • This means the next home price peak (and then bust) might begin in 2024

All of those recent home price gains might make one wonder when the next housing market crash will take place.

After all, home prices can only go up for so long before they drop again, right?

Well, the answer to that age-old question might not be as elusive as you think.

The real estate market apparently moves in cycles that some economists think can be predicted to a relatively high degree.

While not a perfect science, there seems to be “a steady 18-year rhythm” that has been observed since around the year 1800.

Yes, for over 200 years we’ve seen the real estate market follow a familiar boom and bust path, and there’s really no reason to think that will stop now.

It puts the next home price peak around the year 2024, followed by perhaps a recession in 2026 and a march down from there.

How much home prices will fall is an entirely different question, but given how much they’ve risen (and can rise still), it could be a long, long way down.

And we might not have super low mortgage rates at our disposal to save us this time, which is a scary thought.

You’ll Never Get Back Into the Housing Market…

  • There are four main phases in a real estate cycle
  • A recovery period and an expansion period
  • Followed by hypersupply and an eventual downturn
  • Don’t believe the hype that if you don’t buy today, you’ll never get the chance!

Another housing bust in inevitable, despite folks telling us we’ll never get back in again if we sell our home today, or don’t buy one tomorrow.

There are four phases to this predictable cycle, including a recovery phase, which we’ve clearly experienced, followed by an expansion phase, where new inventory is created to satisfy demand. This is happening now.

At the moment, home builders are ratcheting up supply to meet the intense demand in the market, with some 45 million expected to hit the average first-time home buyer age this decade.

The problem is like anything else in life, when demand is hot, producers have a tendency to overdo it, creating more supply than is necessary.

That brings us to the next phase, a hypersupply period where builders overshoot the mark and wind up with too much new construction, at which point prices plummet and a recession sets in.

The good news (for existing homeowners) is that according to this theory, we won’t see another home price peak until around 2024.

That means another three years of appreciation, give or take, or at least no major losses for the real estate market as a whole.

So even if you purchased a home recently and spent more than you would have liked, it could very well look cheap relative to prices a few years down the line.

The bad news is that the real estate market is destined to stall again in just three short years, meaning the upside is going to diminish quite a bit over the next few years.

This might be especially true in some markets that are already priced a little bit ahead of themselves, which may be running out of room to go much higher.

But perhaps more important is the fact that home prices tend to move higher and higher over time, even if they do experience temporary booms and busts.

So if you don’t attempt to time the market you can profit handsomely over the long term, assuming you can afford the underlying mortgage.

And remember, there’s more to homeownership than just the investment.

Source: thetruthaboutmortgage.com

The Best Places to Live in Illinois in 2021

There is more to Illinois than Chicago, although the largest city in the state is home to almost three million people.

When thinking about some of the best places to live in Illinois, you probably immediately consider Chicago and its densely populated suburbs. While these are all great places to live, there are hidden gems all throughout Illinois that you should consider.

So, whether you’re seeking an affordable apartment in Chicago or a quiet tree-lined city downstate, you have a number of great options from which to choose.

Here are the best places to live in Illinois.

Aurora, IL, one of the best places to live in illinois

  • Population: 199,687
  • Average age: 37
  • Median household income: $71,749
  • Average commute time: 35.9 minutes
  • Walk score: 45
  • Studio average rent: $1,142
  • One-bedroom average rent: $1,344
  • Two-bedroom average rent: $1,590

The second-largest city in Illinois with almost 200,000 residents, Aurora offers a mix of options that appeal to everyone from young and single professionals to families.

During the first Friday of each month, food trucks serve up dishes along Benton Street Bridge. In addition, the revitalized downtown district has a great range of restaurants, from steakhouses to coffeehouses, and the area also has destination shopping outposts.

Plus, Aurora is nestled along Fox River, so nature-lovers will appreciate the opportunity to kayak and explore other activities nearby.

Bloomington, IL.

  • Population: 78,023
  • Average age: 39.8
  • Median household income: $67,507
  • Average commute time: 20.3 minutes
  • Walk score: 47
  • Studio average rent: N/A
  • One-bedroom average rent: $827
  • Two-bedroom average rent: $865

Bloomington often shares the limelight with its neighboring city, Normal, since it’s the home of Illinois State University.

While Bloomington lies in the heart of Illinois, at the junction of Interstates 55, 39 and 74, and within a few hours from Chicago and St. Louis, there is plenty to do in Bloomington.

Residents enjoy great restaurants, shopping and visiting attractions such as the historic Ewing Manor, named Sunset Hill by the Ewing family, or the David Davis Mansion which delights history buffs and garden lovers alike.

Bloomington is also the headquarters for State Farm Insurance and COUNTRY Financial.

Champaign, IL, one of the best places to live in illinois

Photo source: Visit Champaign County / Facebook
  • Population: 85,008
  • Average age: 36.5
  • Median household income: $48,415
  • Average commute time: 19.9 minutes
  • Walk score: 61
  • Studio average rent: $435
  • One-bedroom average rent: $629
  • Two-bedroom average rent: $947

Like Bloomington, Champaign is often associated with its neighboring city, Urbana, since the cities share the University of Illinois at Urbana-Champaign campus.

Champaign has a thriving arts scene, award-winning restaurants and great outdoor spaces. It’s a mix of rural and urban, giving residents options, whether they want a more quiet rural setting or a bustling urban environment.

Chicago, IL, one of the best places to live in illinois

  • Population: 2,721,615
  • Average age: 40.2
  • Median household income: $58,247
  • Average commute time: 43.4 minutes
  • Walk score: 84
  • Studio average rent: $1,796
  • One-bedroom average rent: $2,287
  • Two-bedroom average rent: $3,150

There is no shortage of things to do in the largest city in Illinois. Chicago is a city of neighborhoods and like any major metropolitan city in the country, it’s home to award-winning restaurants, world-class museums and Cloud Gate, the bean-like sculpture in Millennium Park also known as “The Bean” among locals.

In addition, the lakefront and the many parks throughout the city offer its residents a place to rest and enjoy their surroundings.

Rental rates vary based on the neighborhood but, in general, the closer to the downtown district and Lake Michigan, the higher the rental rates. Also, depending on where you live, it’s entirely possible to live in Chicago without needing a car since public transportation is pretty robust and accessible.

Evanston, IL.

Photo source: City of Evanston Illinois / Facebook
  • Population: 75,574
  • Average age: 41.4
  • Median household income: $78,904
  • Average commute time: 39.1 minutes
  • Walk score: 82
  • Studio average rent: $1,720
  • One-bedroom average rent: $2,141
  • Two-bedroom average rent: $2,974

Evanston borders the northern part of Chicago and while it’s a northern suburb, parts of it feel very much like a busy metropolitan city.

Northwestern University calls Evanston home so part of the north and east part of Evanston is home to students as well as established families who live in older and grand single-family homes.

Residents love their tree-lined and quiet streets and easy access to the beaches along Lake Michigan.

The city is large enough to have a few distinct shopping districts, including downtown Evanston, which has been completely transformed over the past decade with a large movie theater and larger retail establishments, while Central Street has more independent boutiques.

Naperville, IL, one of the best places to live in illinois

  • Population: 144,752
  • Average age: 41.3
  • Median household income: $125,926
  • Average commute time: 41.6 minutes
  • Walk score: 46
  • Studio average rent: $1,286
  • One-bedroom average rent: $1,483
  • Two-bedroom average rent: $1,828

The original home of the fictional Byrde family before they moved to the Ozarks, Naperville is a picturesque western suburb of Chicago.

The Naperville Riverwalk curves along the banks of the DuPage River and features independent boutiques, restaurants, bars and hotels with river views.

The DuPage Children’s Museum has fun hands-on exhibits that attract both residents and visitors to the area. In addition, the Naper Settlement is a family-friendly, 13-acre outdoor history museum that traces the history of Naperville.

Oak Park, IL.

  • Population: 52,227
  • Average age: 42.1
  • Median household income: $94,646
  • Average commute time: 43.1 minutes
  • Walk score: 84
  • Studio average rent: $1,427
  • One-bedroom average rent: $1,651
  • Two-bedroom average rent: $2,707

Oak Park is a tree-lined suburb just west of Chicago.

The Chicago Transit Authority (CTA) Green Line includes several Oak Park stops, making it particularly convenient for those who want to live in a suburb but still have easy access to Chicago.

Even so, Oak Park is a bustling city with an active downtown full of restaurants and independent boutiques, strong schools and active community members. It’s also home to the Frank Lloyd Wright Home and Studio, which attracts thousands from around the world to see the architect’s prairie-style home.

Peoria, IL, one of the best places to live in illinois

  • Population: 114,615
  • Average age: 40.8
  • Median household income: $51,771
  • Average commute time: 22 minutes
  • Walk score: 44
  • Studio average rent: $678
  • One-bedroom average rent: $771
  • Two-bedroom average rent: $954

Peoria is a laid-back city and most residents work for one of the major employers: Caterpillar (which still employees thousands despite its corporate move to Chicago), OSF Healthcare Saint Francis Medical Center or the school district.

Nestled along the Illinois River, it’s located between St. Louis and Chicago, which is approximately a two-and-a-half-hour drive. There is a mix of things to do in the city, from hiking outdoors to enjoying a cocktail at one of the many restaurants, bars or casinos.

In mid-2014, Peoria began offering bus route service on Sundays, something it hadn’t been offering since 1970, making it easier to get around town for those without a car.

Rockford, IL.

  • Population: 148,485
  • Average age: 41.9
  • Median household income: $44,252
  • Average commute time: 25.6 minutes
  • Walk score: 46
  • Studio average rent: N/A
  • One-bedroom average rent: $714
  • Two-bedroom average rent: $1,070

There is no shortage of outdoor entertainment options for those living of visiting Rockford. There are pools to swim, a river to kayak and nature preserves to hike.

The Klehm Arboretum and Botanic Garden as well as the Anderson Japanese Garden attract thousands of garden lovers.

Residents can choose between downtown lofts to quieter tree-lined streets in historic neighborhoods. Each Rockford community is active in its own way, with great restaurants, museums and shops located throughout the fifth-largest city in the state.

Springfield, IL, one of the best places to live in illinois

  • Population: 115,968
  • Average age: 43.2
  • Median household income: $54,648
  • Average commute time: 22.2 minutes
  • Walk score: 47
  • Studio average rent: N/A
  • One-bedroom average rent: $665
  • Two-bedroom average rent: $749

Home to the Illinois State Capitol, Springfield is a mix of those who serve the legislative and executive branches of the government during sessions as well as residents who live in the city full-time.

It’s also home to the Abraham Lincoln Presidential Library and Museum which honors and documents the life and work of the 16th U.S. President, Abraham Lincoln so the area gets a lot of tourists year-round.

Springfield feels a bit like living in a suburban setting but also has plenty of bars, restaurants and parks to keep locals and visitors entertained.

Choose among the best cities in Illinois

With world-class attractions, sprawling rural towns to fast-paced urban cities, Illinois has something for everyone. If you’re thinking about moving to the Land of Lincoln, we hope this list of the best places to live in Illinois helpful.

Rent prices are based on a rolling weighted average from Apartment Guide and Rent.com’s multifamily rental property inventory of one-bedroom apartments in March 2021. Our team uses a weighted average formula that more accurately represents price availability for each individual unit type and reduces the influence of seasonality on rent prices in specific markets.
Other demographic data comes from the U.S. Census Bureau.
The rent information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.

Source: rent.com

Why You Should Live in Your Home Until It Sells

Last updated on October 23rd, 2019

A new study from Redfin proved what we probably all assumed was the case; vacant homes sell for less than those filled with stuff.

There’s something slightly unappetizing about a vacant home, whether it’s the emptiness of it all, or the desperation knowing someone is losing money each month it sits on the market.

Homes are also simply more exposed when there aren’t area rugs, couches, tables, and beds covering up minor (or major) defects.

Vacant Homes Sell for Less and Take Longer to Sell

  • Empty homes sold for 3.6% less than occupied ones in 2018
  • That’s about $11,000 less on average
  • They also took an extra six days to sell
  • So you may want to stick around (or at least make it appear that way)

As suspected, vacant homes often sit on the market longer than their occupied counterparts and fetch lower prices.

On average, such properties spent an additional six days on the market and went for $11,306 less when they finally did sell.

This is according to a survey of homes listed and sold in 2018, conducted by real estate brokerage (and mortgage lender and iBuyer) Redfin.

The biggest discounts were seen in Omaha, Nebraska and Greenville, South Carolina, where vacant properties sold for 7.2% less than occupied homes on average, a haircut of about $15,000.

Similar discounts were seen in El Paso, Texas, where the average vacant home sold for 6.6% less, or roughly $10,000, compared with occupied homes.

Discounts were smaller in more in-demand metros, including San Jose (just 0.9% less), Las Vegas (-1.5%), and Orange County (-2.3%).

[Why You Should Buy a Home Next to Trader Joe’s or Whole Foods]

How Many Homes Sales Are Vacant Properties?

  • Over a third of home sales in 2018 were vacant properties
  • But share of unoccupied homes varied widely by region
  • 67% of sold homes in El Paso, TX were unoccupied
  • While just 13% were empty in Kansas City, MO

Interestingly, Redfin found that 35.5% of all properties that sold in 2018 were empty at the time of sale.

That’s a lot more than I expected it to be. The share must have been really high during the housing crisis a few years back.

But this varied tremendously from one metro to the next.

For example, 67% of homes in El Paso, Texas were empty when they were listed for sale, whereas only 13% of Kansas City, Missouri homes were unoccupied.

There were a lot of empty homes in Arizona too, with both Tucson (54%) and Phoenix (50%) having large shares of vacant home sales.

Similar numbers were seen in Austin, TX (52%), Tacoma, WA (51%), and Las Vegas, NV (49%).

Meanwhile, empty homes were more of a rarity in Fort Lauderdale, FL (14%), Hampton Roads, VA (17%), and Greenville, SC (20%).

[Homes Next to Starbucks Are Worth More]

Make the Home Look Lived In, But Have Good Taste

  • Not all occupied homes are created equal
  • A poorly decorated home could actually hurt its chances
  • Expect to do some cleaning/renovating/staging if you sell your home
  • Many real estate agents now provide some of these services

While vacant homes mostly sold for less than the occupied ones, results may vary based on how the house itself looks and how it’s decorated.

Redfin agent Billie Jean Hemerson notes that a home seller’s furnishings can have a big impact on sale price.

If the home isn’t empty, but all the furniture looks like it’s from 1980 (in a bad way), or there’s lots of clutter, it’s probably going to do more harm than good.

Conversely, if the home seller has good taste that fits with what today’s home buyer is looking for, it could result in a price increase and perhaps a bidding war.

So just having an occupied home isn’t enough. There’s a good chance you’ll need to put some work into it if and when you list.

Fortunately, many real estate agents these days include some level of home staging in their listing package.

And Redfin themselves offer a so-called “concierge service” for a 2% listing fee (instead of 1%) that includes cleaning, staging, and a custom home improvement plan.

The company also recently partnered with a virtual staging company called roOomy to help decorate vacant properties, ideally so they sell for more in a shorter period of time.

Ultimately, when a home buyer checks out your property, they’ll want to get a sense of what it will be like when they live there.

If it’s empty, or poorly decorated, some prospective home buyers may not be able to look beyond that, even if the home itself is just fine.

Of course, if you’re a savvy home buyer with an eye for design, you might be able to snag a discount on a home that needs just a little bit of TLC to get back to its prime.

As a buyer, you should take note of the fact that vacant properties often sell for less, and use it as a negotiating tool.

While the staged homes will undoubtedly look more appealing, there’s a good chance they’ll sell at the higher end of the market.

And all those beautiful furnishings will be gone once it’s time for you to move in…

Read more: 12 home selling tips for 2019

Source: thetruthaboutmortgage.com

Higher Mortgage Rates May Exacerbate Already White-Hot Housing Market

Posted on March 25th, 2021

You’ve seen the headlines – mortgage rates have jumped from recent all-time lows. And they’re seemingly on an upward spiral that can’t be stopped.

Except, they’ve actually seen some improvement over the past few days, thanks in part to the recent stock market rout, coupled with an easing in the 10-year bond yield.

Still, the 30-year fixed is pricing about .50% higher than it did at the start of 2021, when it was closer to 2.65%.

Today, your quoted rate might be closer to 3%, though some lenders are back to offering sub-3% rates too with limited or no lender fees.

Higher Mortgage Rates May Just Make Matters Worse

  • There’s already a record low supply of homes for sale
  • And intense bidding wars are becoming all too common these days
  • The threat of even higher mortgage rates may just compel more buyers to enter the fray
  • That could result in even higher home prices as more buyers clamor over what’s out there

Let’s face it, there aren’t many available homes on the market at the moment. This has been the case for a while now, and hasn’t improved one bit lately.

Meanwhile, home prices are on a tear and record home purchase activity is expected in 2021 despite higher rates.

The median home price has already increased 17% year over year to $330,250, an all-time high, per Redfin.

That also happens to be the biggest increase on record, which goes back through 2016.

On top of that, asking prices of newly-listed properties hit an all-time high of $350,972, up 10% from the same period a year ago.

Oh, and new listings haven fallen 17% from a year earlier. Good luck.

In other words, if you thought homes were expensive last year, don’t look now! And if you thought competition was intense in 2020, well, hmm…yeah.

The good news is mortgage rates are still lower today than they were a year ago, with the 30-year fixed averaging 3.17% at last glance, down from 3.50% during the same week in 2020.

The bad news is that the threat of increasing rates may actually be pushing more prospective buyers off the fence and into the mix.

If more folks think the end of the low mortgage rate era is upon us, they might finally take action.

In the past when this type of thing has happened, the housing market has held up just fine.

Don’t buy into the idea that home prices and mortgage rates have an inverse relationship. In many cases, both can rise or fall in tandem.

Ultimately, you want to pay attention to the economy to determine the direction of the mortgage rates, not home prices.

What Happens When Mortgage Rates Go Higher?

  • Home prices may also increase because there’s no inverse relationship
  • Bidding wars may become even more intense as urgency rises among buyers
  • Mortgage lenders may loosen underwriting guidelines to facilitate home sales
  • Home builders may build smaller homes and/or cheaper ones to maintain some sense of affordability

If and when mortgage rates do increase, and actually stay elevated for a sustained period of time, a variety of things may happen.

For one, home prices may increase, for a couple different reasons. For one, there will be more urgency to lock in that low mortgage rate before they worsen even further.

Compounding that will be even more bidders on each home out there, which will further drive up the final sales price.

Additionally, higher interest rates are a sign of an improving economy, so if things are looking up, so too might home prices.

At the same time, mortgage lenders may ease up and loosen underwriting guidelines to ensure borrowers can obtain a home loan.

And home builders may take notice and make adjustments to the new homes they build by making them smaller and/or cheaper.

They might also ramp up their volume to satisfy the intense demand from prospective buyers. This is usually where things go wrong and we overshoot the mark.

Why It Might Be Good to Wait for a Pullback

While there’s a sense mortgage rates may never revisit their recent all-time lows, it’s also foolish to believe that.

Why can’t they go back to where they were just a few months ago? I liken it to the stock market, where human psychology plays a big role.

One day, stocks are flying high and everyone is piling in. The next day, it’s doom and gloom and everyone’s thinking about selling.

This mentality is exactly how/why many retail investors get burned, assuming they attempt to time the market.

With the recent rise in mortgage rates, you might think it’s best just to accept the higher rate before things get even worse.

And while that’s not imprudent, it’s time like these where we often see reversals. When all hope is gone, things suddenly improve.

Of course, this won’t do the hot housing market any favors. Either way, it’s not going to get any easier to submit a winning bid on a home, whether mortgage rates go up or down.

Read more: 2021 Home Buying Tips to Help You Win

Source: thetruthaboutmortgage.com

Prospective Buyers Are Beginning to Walk Away from Home Purchases

Last updated on August 29th, 2018

Over the past few years, the term “walking away” was synonymous with strategic default. In short, homeowners who were underwater on their mortgages had very little hope of turning things around.

As a result, they would simply walk away from the property (and the mortgage), accepting whatever consequences came with that. Typically, a big fat credit hit and the need to find a new place to dwell.

Interestingly, some of these same borrowers now qualify for mortgages again because so many years have passed since that phenomenon began.

And those able to prove extenuating circumstances, such as a temporary job loss that led to a short sale or foreclosure (or even bankruptcy) can now get an FHA loan just one year later.

So despite many calling the mortgage market too conservative, there are ample opportunities for those with checkered pasts to obtain financing.

The New Walk Away Is an Affordability Thing

I cautioned a while back that affordability was set to fall off a cliff, given the dramatic rise in mortgage rates, coupled with higher asking prices.

And now it’s causing would-be home buyers to walk away from deals. A new Bloomberg report cites several examples where prospective buyers are backing out because of affordability concerns.

One couple in Seattle thought they could afford a $400,000 home because that’s what the math told them back in February when their home search began.

Today, their housing payment is roughly $300 higher than it would have been had they closed before rates surged. As a result, they’re looking at a smaller home instead.

Another family in Portland tried to back out of a home purchase because rates have both increased their proposed housing payment and made it more difficult to sell their existing home. Talk about a double whammy.

This is apparently a trend, according to a Redfin economist cited in the article, who said a lot of agents are dealing with buyers who were in escrow that can no longer afford to buy. All the more reason to make sure your buyer is qualified, even if rates go up.

One Redfin agent said his client is waiting to buy in fall once competition dies down, though there’s the risk that interest rates could be even higher then. And prices.

[First Sign of Mortgage Rate Impact as New Home Sales Disappoint]

Just How Bad Are the Higher Mortgage Rates?

You’d think that a couple hundred dollars wouldn’t derail someone’s ability to qualify for a loan, but apparently it does.

When it comes down to it, DTI ratios limit how much a prospective homeowner can afford, so those on the cusp can easily run into trouble if they don’t lock their rate at the outset when they may have been originally pre-approved.

I created some mortgage payment charts to quickly eyeball interest rate changes and their impact on monthly payments.

For smaller loan amounts, the difference in payment is still pretty minimal. On a $200,000 loan amount, the monthly mortgage payment on a 30-year fixed at 4.5% versus 3.5% is only about $115 more.

On a $500,000 loan, the difference jumps to nearly $300, which is a bit more devastating to the old wallet.

This probably explains why homeowners are either looking for smaller and/or cheaper homes, or considering the use of hybrid ARMs, such as the 5/1 or 10/1 to keep payments at bay.

About the Author: Colin Robertson

Before creating this blog, Colin worked as an account executive for a wholesale mortgage lender in Los Angeles. He has been writing passionately about mortgages for nearly 15 years.

Source: thetruthaboutmortgage.com

RedfinNow Temporarily Halts Offers as Housing Market Takes Turn for the Worse

Posted on March 18th, 2020

We’re now getting our first indication of how the coronavirus may affect the once booming housing market, thanks to a blog post from Redfin boss Glenn Kelman.

It’s not good news, as indicated by the title of this post.

RedfinNow Hits the Brakes

  • The real estate brokerage is no longer buying homes for cash
  • Unclear how long they will pause their iBuyer business
  • Doesn’t bode well for housing market sentiment
  • But understandable given the uncertainty surrounding coronavirus

First and foremost, the company’s iBuyer unit RedfinNow is halting offers it makes on homes, per a separate 8-K filing.

On the surface, the company isn’t interested in buying your home for cash anymore, at least not at the moment.

This doesn’t necessarily mean they think the housing market is going to tank, but it does seem to signal some uncertainty on their part.

So that’s a little bit unsettling, though perfectly understandable for a large, publicly-traded business to disclose that material event.

By the way, Redfin stock has fallen from around $33 per share a month ago to just over $10 today.

It fell nearly 25% on Wednesday as the coronavirus continues to ravage the economy.

The company did not indicate when they’d relaunch RedfinNow, but for now, it appears to be on hold.

Home Buying Demand Has Taken a Hit from Coronavirus

  • Home buying demand was up roughly 27% in both January and February compared to last year
  • Last week year-over-year growth fell to just 1%
  • And in the past few days it has turned negative
  • Probably a taste of what’s to come as social distancing and self-quarantines take effect

Now onto that post from Redfin CEO Glenn Kelman. He opens by stating that “home-buying demand took a big hit.”

By that, he means year-over-year growth dropped from nearly 27% in January and February to just 1% growth over the past week.

And in the past three days, there has been a contraction in home buyer demand.

In other words, the spring housing boom we were all waiting for, spurred on by those new all-time mortgage rates, is toast.

In short, we’re all basically quarantined in our own homes or apartments, so virtually nobody is even thinking about touring someone else’s house.

However, while Kelman said most open houses have been canceled, including all of Redfin’s own open houses, some real estate agents are still out there trying.

He mentioned one showing in Hoboken, New Jersey, where Redfin agent Noah Goldberg said six groups of potential buyers were being staggered like a Disneyland ride.

Goldberg added that his activity was down by half now that the coronavirus is here in the United States, and not just some far away land.

Home Purchases Are Still Closing, But…

  • Some Redfin agents say it’s business as usual
  • But home purchases just days from funding will probably still go through
  • Need to worry about homes that just went pending and new listings
  • Might see fallout as outbreak worsens, and there may be disruptions as ancillary services close

That pessimism aside, a Redfin manager out of Jacksonville, FL said it was “business as usual,” with closings taking place all week.

Of course, those who are near the finish line probably have a much smaller likelihood of pulling out versus those just under contract, or those who have yet to find a home.

Meanwhile, a Washington D.C.-based listing agent said two of three listings that hit the market just last week were already pending.

Sadly, last week is a lot different than THIS week. So my expectation is for a lot of these positive outcomes to change pretty rapidly.

Some of those offers may also fall out of escrow depending on how bad things get.

Kelman added that the number of listings activated on the MLS over the past week was still up 0.5% year-over-year.

Once again, a caveat. Most of these listings debuted before the weekend, and a lot has changed in just a few days this week.

He was surprised to see an increase in new listings in some of the cities hardest-hit by the coronavirus, with volume up 9% YoY in Seattle and 6% in the Bay Area.

There have also been rumors that with courthouses closed, sales wouldn’t be able to be recorded. But Kelman notes that most counties nationwide support electronic recordings.

Redfin Has Stopped Buying Ads

  • Company halted both mass-media advertising and digital ad buys
  • Will continue to advertise on behalf of their home sellers
  • Appears they are uncertain about direction of the housing market
  • If everyday Americans feel the same way it could be a rough year for the real estate industry

In one final ominous sign for the housing market, Kelman said his company has stopped purchasing advertising to promote its brokerage.

The only ads they’re buying are custom digital campaigns they create for each listing customer, so they’re still supporting their home sellers.

Redfin ceased the purchase of mass-media advertising on March 9th, and halted digital ad buys a week later.

In other words, they don’t sound very bullish on the housing market right now. However, they might just be taking a wait-and-see approach to see how everything pans out, instead of throwing caution to the wind.

Unfortunately, if prospective home buyers do the same thing, it’s going to be awfully hard to sell a home right now.

The silver lining, if there is one, is that mortgage lenders can better manage their refinance pipeline instead of worrying about home purchase applications.

And maybe that will allow them to finally lower mortgage rates again once volume slows.

Source: thetruthaboutmortgage.com

Real Estate Delistings Increase 148% From a Year Ago as COVID-19 Impact Grows

Posted on April 2nd, 2020

Housing supply was bad before the coronavirus epidemic reared its ugly head, and now it has gotten even worse, per new data from real estate brokerage Redfin.

Homes Flying Off the Market

delist

  • 28,140 homes were taken off the market before selling in the past week
  • That represents a 148% year-over-year increase in delistings
  • Even worse in cities of Chicago, Los Angeles, and Philadelphia
  • Some cities not yet impacted as stay at home orders finally go into effect this Friday

The company noted that home delistings, where home sellers pull their properties off the market, increased 148% during the week of March 29th, compared to a year earlier.

And during that seven-day period, nearly 4% of active listings were taken off the market, which is roughly twice the typical rate.

It was even worse in the cities of Chicago, Los Angeles, and Philadelphia, where 6% of listings were pulled.

All of those hard-hit cities have a shelter in place mandate, so it’s clearly not the best time to sell a home.

Conversely, Atlanta only saw 2% of active homes delisted, which might be related to their lack of stay at home orders until this Friday.

Once implemented, the delisting trend will likely catch up to homes in Georgia as well.

New Real Estate Listings Have Also Declined

  • Just 58,366 new for-sale listings nationwide last week
  • Down 33% from the same week in 2019
  • Comes as traditional spring home buying season kicks into gear
  • Detroit and Philadelphia saw worst of it with new listings in both cities down 63%

New listings are also taking a hit, with home sellers reluctant to get the ball rolling, for obvious reasons.

There were just 58,366 new listings during the week of March 29th, a big 33% decline from the same week in 2019.

And it seemed to hit just as the traditional spring home buying season was beginning to heat up. Talk about bad timing.

Detroit and Philadelphia saw the worst impact, with new listings in both cities down 63% year-over-year last week.

Similar declines were seen in Chicago (-47%), Dallas (-36%), and Los Angeles (-49%), and it happened across all home price levels.

Inventory Down and So Are Prices…

home price drop

  • Usually we see prices go up when supply goes down
  • At the moment both supply and list prices are falling in tandem
  • Median list price fell from $330k two weeks ago $309k
  • Will likely continue to drop as prospective buyers put purchases on hold

Now here’s the scary part. Usually when inventory, or supply goes down, prices go up. That’s not the case in this unique pandemic-impacted real estate market.

Redfin has also seen the median list price fall after steadily rising moving into spring.

It was as high as $330,000 two weeks ago, but has since fallen to $309,000, a $21,000 decline. And it’s a sign prices will continue to fall, either via price cuts or lowball offers, or perhaps both.

Meanwhile, pending home sales plummeted 42% from the same period a year earlier, with the biggest declines seen in Dallas (-66%), Atlanta (-57%), and Detroit (-55%).

Similar losses were seen in Los Angeles (-49%), Chicago (-45%), Philadelphia (-42%), Phoenix (-38%), and Denver (-35%).

Those stories you heard last week that real estate agents were still closing homes probably reflected the time lag related to the epidemic, and the relatively long escrow period that likely began well before things took a turn.

But now that most states are in a veritable lockdown, we’re going to see the true impact of coronavirus on the housing market.

To make matters worse, a lot of prospective home buyers are likely going to lose interest in buying a home this year, even if things improve health-wise.

And those that are still interested might fall out simply because they no longer qualify for a mortgage, due to unemployment, loss of income, loss of assets, and so on.

The question is how bad will it get, and when will things turn around?

Read more: CARES Act grants 12 months mortgage forbearance to homeowners.

About the Author: Colin Robertson

Before creating this blog, Colin worked as an account executive for a wholesale mortgage lender in Los Angeles. He has been writing passionately about mortgages for nearly 15 years.

Source: thetruthaboutmortgage.com