Home prices are going up across the country after slowing for more than a year, according to a new report from data and analytics companyBlack Knight.
The report found that nationally, home prices in June rose by 0.67% month-over-month on a seasonally adjusted basis. Meanwhile, the annual home price increase was 0.8% in June, up from just 0.2% in May.
Calling the June price increase an inflection point, Black Knight Vice President of Enterprise Research Andy Walden said the rate of home price increases would have a “lagging, but significant impact on the annual rate of appreciation.”
Month-over-month, home prices increased in more than 60% of markets, with notable exceptions in Austin and San Antonio, where prices declined month to month in June on a seasonally adjusted basis. The strongest price growth was in Hartford (+1.2%), Seattle (+1.2%) and San Jose (+1.2%).
“At the national level, home prices have now fully erased their 2022 corrections hitting new all-time highs in June on both seasonally adjusted and non-seasonally adjusted bases,” the report said.
Annual growth was strongest in the Midwest and Northeast markets, while West Coast and pandemic boom markets continue to see prices run below last year’s levels. Milwaukee (+6.4%), Cincinnati (+5.7%), and Philadelphia (+5.6%) are more than 5% above last year’s price peaks, with a handful of Midwest and Northeast markets, including Kansas City, Virginia Beach, Richmond, Baltimore, Providence, St. Louis and Chicago up more than 4%.
Rising home prices also boosted homeowner equity levels. The average mortgage holder now has $199,000 in equity, up from $185,000 in the first quarter, but down from $207,000 at the same time last year. Strong equity positions are one element of today’s historically strong mortgage performance, the report said.
The June report also quantifies the savings during the last big wave of refinance activity. Existing homeowners who have benefitted from $42 billion in cumulative savings through refinancing in the past three years are now also benefiting from strong income growth, according to Black Knight. Existing homeowners need 21% of the median household income to make the average monthly principal and interest payment, compared to more than 36% for prospective homebuyers in today’s market.
Low interest rates locked in during the pandemic are keeping payments down for existing homeowners and contributing to low delinquency levels. Meanwhile, owing to high interest rates, affordability for prospective homebuyers is at near 37-year lows.
For existing homeowners, the relatively low share of income required to meet mortgage obligations along with the strong credit quality are contributing to a 16-year low in seriously delinquent mortgages, the report said.
Nestled in the heart of Virginia, Richmond serves as a living testament to America’s past, with its well-preserved architecture and historic landmarks. From its role in the American Revolution and the Civil War to its thriving arts and cultural scene, Richmond has a rich heritage while embracing the present. But what else is Richmond known for? In this Redfin article, we will guide you through the ins and outs of the city according to the locals. Whether you’ve lived in the city for years or you’re looking for homes for sale or apartments in Richmond, read on to learn more about this vibrant city.
1. Low cost of living
Richmond, VA is gaining attention for its attractive and affordable lifestyle, with reasonable housing costs, a median sale price of $385,000, and lower rental rates than neighboring cities. The cost of living in Richmond is 3% lower than the national average and 13% lower than in Alexandria, making everyday expenses, dining, and entertainment more manageable. Richmond’s affordability and diverse amenities attract individuals and families seeking a high quality of life without breaking the bank.
2. Bustling neighborhoods
Richmond, VA is known for its charming cityscape with bustling neighborhoods that blend history, culture, and modernity. Each neighborhood has its distinct charm, creating a diverse and engaging urban experience.
“Weekends are so fun in Scott’s Addition neighborhood,” shares local family photographer Jacqueline Burns. “Bouncing between breweries, wineries, and arcade bars, I always enjoy taking in live entertainment at the city’s many live music venues. I especially love visiting Maymont Park in spring to enjoy nature and wildlife. The area offers big-city entertainment with a small-town vibe and is a great place to raise your family.”
3. Virginia State Capitol
Richmond, VA, proudly holds the distinguished title of the state’s capital, a position it has held since 1780. As Virginia’s political and administrative center, the city plays a vital role in shaping the state’s governance, legislation, and history. The Virginia State Capitol, designed by Thomas Jefferson, stands as a symbol of Richmond’s significance in American democracy and history, having witnessed key events such as Patrick Henry’s famous “Give me liberty or give me death” speech during the American Revolution.
4. Vibrant downtown
Steeped in history, the downtown area seamlessly blends the old with the new, offering a captivating mix of architectural marvels, modern high-rises, charming cobblestone streets, and plenty of things to do.
Tony Greene, a local portrait and landscape photographer, adds, “You can enjoy your day in Richmond driving around looking at murals painted by local artists, grabbing lunch in any one of our fantastic local restaurants, enjoying freshly brewed craft beer, and finishing the day off watching the sunset over the James River from just about any perch in the city.”
5. Delicious cuisine
From mouthwatering barbecue joints to trendy farm-to-table restaurants and international eateries, Richmond’s food offerings cater to every palate, making it a food lover’s paradise.
Xiaoqi Li, a local wedding photographer, says, “Richmond has such a vibrant food scene. A recent favorite of mine is Jubilee. You can’t go wrong with anything they offer, whether shrimp and grits at brunch or scallops and roasted chicken at dinner. The bartender also makes the best mocktails and cocktails alike, so everyone at the table will love every part of their meal.”
6. Thriving art scene
The city’s passion for the arts fosters a vibrant and inspiring atmosphere that attracts artists and art enthusiasts from all over, from a diverse array of galleries and street murals to art festivals and community events.
Sara O’Connor, a Richmond artist, shares their perspective of the art community, “Richmond is well-known for creating and supporting thriving artists through direct-to-consumer sales and boutique shops like Pop of Confetti.”
7. Great location
Richmond, VA is known for its exceptional location, strategically positioned in the heart of Virginia, making it a convenient hub for travel and commerce.
“Not only are we rich in history, but we are perfectly central to all the surrounding hot spots,” shares Nicki Metcalf, a wedding, engagement, and portrait photographer. “DC is two hours away, the Blue Ridge Mountains are 1 hour away for a hike, and want to swim in the ocean? Virginia Beach is 2.5 hours away. You can’t go wrong; this city has everything.”
8. Renowned museums
Richmond, VA is renowned for its wealth of history, art, and culture. The city’s museums offer a deep dive into various facets of American and Virginian heritage, making it a cultural hub for residents and tourists.
“In the museum district lives the Virginia Museum of Fine Art, which has tons of permanent collections – which are free to see,” says Tina Thomas, a local brand and headshot photographer of Tina Take My Photo. “Richmond also has “RVA First Fridays,” a monthly celebration of art, community, and culture along the arts district downtown. In the West End, the Glen Allen Cultural Arts Center is another place to celebrate visual and performing arts.”
9. James River
The James River flows gracefully through downtown, offering a picturesque backdrop for residents. The river’s presence provides abundant outdoor activities, from kayaking and paddleboarding to hiking and cycling along its scenic trails. Belle Isle, a natural oasis within the river, allures adventurers with its rocky terrain and serene beauty. Furthermore, the James River Park System, a collection of parks lining the riverbanks, offers a sanctuary for nature enthusiasts and urban explorers seeking tranquility amidst the city’s hustle and bustle.
10. Richmond International Raceway
The Richmond International Raceway, widely known as RIR, holds a prominent place in the world of motorsports and entertainment. As one of the premier NASCAR venues, RIR attracts racing enthusiasts from all over the country. Thrilling short-track racing, where drivers navigate the high-banked turns and exhilarating straightaways, creates an electrifying atmosphere that captivates fans and drivers alike.
With the news this month that the housing market hit a milestone by showing the first year-over-year price decline in recent memory, homeowners who’d considered finally selling their home this year are finding themselves discouraged yet again.
What happened, they might wonder, to the not-so-distant glory days of frantic bidding wars and over-ask offers? Plenty of frustrated owners seem worried that the window for a fast and lucrative home sale might be shutting fast.
But here’s the reality: The U.S. housing market is no monolith. Although it’s true that many of the hottest markets of the past few years have seen prices fall in the wake of higher mortgage interest rates that broadly dampened home shoppers’ buying power, there are still cities where buyers continue to snatch up homes quickly and where sellers are getting their full asking price—or more.
This is why the Realtor.com® data team dug in to find the U.S. real estate markets that most favor sellers. (Sorry, buyers!)
The best places for sellers generally have persistently low housing inventory, strong demand from buyers, and often—but not always—lower prices that have room to swell. These are generally affordable metropolitan areas in the Northeast with a few in the Midwest.
Three of the metros on our list—Hartford, CT, Worcester, MA, and Providence, RI—are so close, you could tour homes in all of them in a single day. Our ranking also has one spot in the South and a somewhat bizarre outlier in California—more on that later.
To figure out if an area is a buyer’s or seller’s market, Pamela Ermen likes to track the change in the number of closed sales per month, compared with the change in the number of new listings per month.
“When sales are going up and inventory is going down, that’s a real seller’s market,” says Ermen, a Virginia Beach–based Realtor® at Re/Max and a speaker and coach at Real Estate Guidance.
Still, sellers who focus solely on low inventory can wrongly conclude that they can list their home at a higher price than an agent might advise. That can lead to their property languishing on the market not receiving strong offers. Meanwhile, buyers who focus only on the number of sales going down might wrongly think there’s less competition. That might result in heartache when they find out the hard way that many homes are still getting multiple offers.
To find true seller-friendly places, the Realtor.com data team looked at the May 2023 listing data for the 100 largest metropolitan areas. Then we ranked each based on the number of days that the median listing is on the market, combined with the portion of listings that have had the price reduced. These metrics tell us where homes are selling faster than average and with fewer sellers having to reduce their price to make the sale.
We selected just one metro area per state to ensure geographical diversity. (Metros include the main city and surrounding towns, suburbs, and smaller urban areas.)
Here’s where sellers can expect the market to be most tilted in their favor this summer.
Median list price: $265,000 Median days on the market: 13 Listings with a price reduction: 1 in 17
Rochester, on the western edge of New York along the southern shore of Lake Ontario, not only is at the top of our seller’s saviors list—it’s also in a class of its own. Rochester had both the lowest number of days on the market and the lowest portion of listings with a price reduction. But this is nothing new for the so-called Flower City.
The metro area has become a mainstay of the Realtor.com hottest real estate markets list. It’s also where sellers are usually still getting their asking price, and where buyers can find one of the largest selections of homes for less than $200,000. Plus, home prices are well below the national median list price of $441,500 in May.
These affordable homes have made the area appealing to locals, out-of-towners, and investors.
“If you’re priced right in our market, you can expect to still sell in about one week,” says Jenna May, a local real estate agent at Keller Williams Realty.
When the market was at its pandemic peak in 2022, and even before anyone had heard of COVID-19, Rochester was still leading the nation in the low number of days on the market. Demand here for homes is high and seems destined to stay that way.
“There are people who are offering $80,000 over listing price and not getting the home,” says May. “It’s that competitive.”
Median list price: $424,925 Median days on the market: 19 Listings with a price reduction: 1 in 14
The capital city of Connecticut is also no stranger to the Realtor.com list of the nation’s hottest real estate markets. Hartford is the largest population hub in the state, with 1.2 million residents.
It also boasts home prices that are about 5% below the national median.
“The Northeast has been well undervalued compared with other markets—and not just for years, but for decades,” says Lisa Barrall-Matt, a senior broker at Berkshire Hathaway in West Hartford.
Homes in the Hartford area have been priced $100,000 less than comparable homes in other markets, Barrall-Matt says, for so long that she began to take it for granted.
Now, she’s feeling vindicated: “I used to say, ‘Why aren’t prices higher?’ Now I’m saying, ‘Where’s the ceiling?’”
Median list price: $622,500 Median days on the market: 24 Listings with a price reduction: 1 in 13
Portland became a popular pandemic destination for Northeasterners looking for a scenic, coastal city with some great restaurants, entertainment, and a brewery scene. The area has a rich history, having a Native American presence dating more than 10,000 years before becoming an early Colonial settlement.
The above-average prices in this artsy city on Casco Bay aren’t keeping sellers from enjoying quick sales. In fact, few listings are getting marked down. The demand for housing here is just so strong. Portland has been featured on our list of the best places to retire in 2022, and it has one of the last year’s hottest neighborhoods: Windham, just on the northwestern edge of Portland proper.
Prices in Portland have grown significantly faster during the pandemic—from May 2019 to now—than they did in most of the country. Where prices rose about 40% nationally, prices in Portland have grown by about 62%. Just since this time last year, prices rose 17%.
A newer four-bedroom home in South Portland that’s within walking distance of Fore River is listed for $650,000, close to the area average.
Median list price: $517,450 Median days on the market: 19 Listings with a price reduction: 1 in 10
Worcester, about 40 miles west of Boston, was nicknamed the “Heart of the Commonwealth” because of its central location in Massachusetts.
This medium-sized metro has a name that’s fun to say, like “rooster” but with a W. But it simply doesn’t have enough homes to match the high interest from potential buyers, according to Nick McNeil, a local Realtor with the Lux Group.
“The amount of demand and the absolute lack of inventory is nuts,” he says. “And there’s not much room for new construction in this area, with tight regulations on what can be built.”
Until there’s some kind of change in the supply and demand dynamic in the area, McNeil says, it’s going to be hard for buyers, and relatively easy for sellers—as long as they’re not also trying to buy.
“The best situation you can be in is if you can sell now,” he says.
Median list price: $384,250 Median days on the market: 25 Listings with a price reduction: 1 in 10
Amid the rolling hills of Eastern Pennsylvania’s Lehigh Valley, about 60 miles northwest of Philadelphia, Allentown has a few things going for sellers right now. The portion of homes with a price reduction is about half the national average, and homes are selling about 40% faster.
Like some other places on this list, the homes in this historic steel town are priced below the national average. But local incomes are a bit higher than average, offering buyers more affordability. That’s helping the real estate market to remain competitive as buyers seek out deals.
Allentown offers a mix of urban, suburban, and rural lifestyles, making it broadly attractive for buyers.
What’s especially notable about the area is the price growth over the past several years. Allentown metro prices have risen by 78% since before the pandemic, ahead of all the other places on this list.
For about the local median price in Allentown, buyers can find a five-bedroom bungalow in the Hamilton Park neighborhood west of downtown Allentown.
Median list price: $374,950 Median days on the market: 29 Listings with a price reduction: 1 in 11
Perched on the western shore of Lake Michigan in southeastern Wisconsin, Milwaukee is known for its breweries, including Miller and Pabst. It’s also where Harley-Davidson was founded. And it’s been a staple of housing affordability for some time.
However, prices have been rising in Milwaukee’s metro area: They rose by around 11% compared with this time last year.
The median number of days on the market is below the average now, just like it was before the pandemic. The same goes for the portion of listings with a price reduction. This is all very good news for home sellers hoping for a quick, profitable sale.
For $375,000, a buyer can get a large, four-bedroom home just 5 minutes from hiking trails, a golf course, and a dog park, all along the shoreline.
Median list price: $386,973 Median days on the market: 29 Listings with a price reduction: 1 in 9
The Virginia Beach metro area, a popular vacation spot for beach, maritime history, and seafood lovers, is another place where incomes are higher than average and home prices are lower.
Last year, sellers could count on getting multiple offers, usually leading to potential buyers bidding up the price, says Virginia Beach–based Realtor Ermen. Now, it’s not as easy to figure out that pricing sweet spot. If the home is listed too high, that’s when there’s eventually pressure to reduce the price.
In the month of May, even with a low number of price reductions, Erman says, “90% of price reductions were made before the listing hit the average time on market.”
That indicates sellers are getting antsy, and probably would have been better off pricing the home lower to begin with. But homes that are priced to sell are still moving briskly.
Median list price: $1,530,000 Median days on the market: 25 Listings with a price reduction: 1 in 9
San Jose is the oddball on this list.
Nestled in the heart of Silicon Valley, it is one of the most expensive real estate markets in the nation. Homes in this San Francisco Bay Area hot spot cost more than triple the national average, which means real estate attracts a very specific buyer.
Because San Jose is a global technology hub, its population is very diverse, and not just racially or ethnically. Roughly 40% of residents were born outside of the U.S., according to the U.S. Census Bureau. Most significantly, many residents have tons of money to spend, whether they’re high-salaried tech employees or they have had an entrepreneurial startup windfall.
Local real estate agents will tell you that San Jose is simply insulated from many of the market dynamics because the clientele is so wealthy. If they’re making an all-cash purchase, they don’t have to worry about higher mortgage rates. And that’s a big boon for sellers.
Median list price: $539,950 Median days on the market: 31 Listings with a price reduction: 1 in 10
Providence, home to Brown University and the Rhode Island School of Design, is a bustling town filled with older homes. About 50 miles southwest of Boston, it’s one of the medium-sized, Northeastern metros on our list that are enjoying especially strong housing markets right now.
Providence prices are significantly above the national average, but compared with nearby Boston, where the median list price is north of $850,000, Providence is a downright bargain.
Plus, it’s got a lot going for it. It boasts beautiful scenery along the Seekonk River, a thriving arts scene, and good jobs. The headquarters for CVS is located in nearby Woonsocket.
In Providence, for $550,000, a little above the local average, buyers can find a midcentury two-bedroom home with classic brick construction about 15 minutes from downtown.
Median list price: $229,950 Median days on the market: 31 Listings with a price reduction: 1 in 9
Home prices in this Rust Belt city, which has struggled in more recent years, are still dramatically lower than the national average—about 45% less expensive. And with the focus of buyers on affordability, it’s no wonder that Toledo has taken off.
In the past year, median list prices in Toledo have risen by 25% (10% per square foot), which is quite a bit higher than before the pandemic.
For less than the median list price in Toledo, buyers can get a massive, six-bedroom home in Toledo’s Old West End neighborhood, just northwest of downtown.
With its location along the Chesapeake Bay and Atlantic Ocean, Virginia has a plethora of stunning beaches and coastal towns. With magnificent waves and sandy coves, boating and fishing, these idyllic Virginia beach towns are some of the best you’ll find. Whether you’re looking to move to Virginia or want to relocate to a quaint coastal city, there are plenty of options to check out in the state.
But if you’re not sure where to start on your hunt for the best Virginia beach town, we’re here to help. From Norfolk to Virginia Beach, Redfin has put together a list of 10 amazing Virginia coastal towns. Let’s explore some of the state’s top beaches, listed in alphabetical order, and you might just be tempted to move there.
#1: Cape Charles
Median home price: $437,000 Cape Charles, VA homes for sale Cape Charles, VA apartments for rent
Kicking off our list is Cape Charles, home to beaches like Cape Charles Beachfront. There are only about 1,200 people who live in this coastal Virginia town, making it a quaint getaway. Living in Cape Charles, you can explore the Cape Charles Natural Area Preserve, check out the Cape Charles Historic District, and dine along the waterfront.
#2: Chincoteague
Median home price: $500,000 Chincoteague, VA homes for sale Chincoteague, VA apartments for rent
Another one of Virginia’s great beach towns to consider buying a home in is Chincoteague, where there are 3,300 residents. There are plenty of beaches to visit like Assateague Beach, Bow Beach, and Chincoteague Beach. If you’re exploring the town make sure to stroll along the Island Nature Trail, tour the Captain Timothy House, and check out the local restaurants and cafes.
#3: Colonial Beach
Median home price: $340,000 Colonial Beach, VA homes for sale Colonial Beach, VA apartments for rent
About 3,900 residents live in Colonial Beach, located along the Potomac River. There are lots of beaches to explore on a sunny Virginia day like Colonial Beach and South Colonial Beach. If you find yourself moving to Colonial Beach, grab a meal or drink at one of the waterfront restaurants or breweries.
#4: Hampton
Median home price: $256,000 Hampton, VA homes for sale Hampton, VA apartments for rent
Home to beautiful beaches like Buckroe Beach, Factory Point, Grandview Beach, Sea Point Beach, Lookout Beach, and Outlook Beach, there are countless places to spend a beach day in the city of Hampton. Just south of Newport News, there are about 137,700 residents in Hampton. Other than a beach day, you can visit Fort Monroe where you’ll find the Old Point Comfort Lighthouse, explore the Virginia Air and Space Center, and check out downtown Hampton.
#5: Newport News
Median home price: $259,500 Average rent for a one-bedroom apartment: $1,190 Newport News, VA homes for sale Newport News, VA apartments for rent
The picturesque beach town of Newport News has about 184,600 residents, making it another great place to add to your list. You’ll find stunning beaches such as Huntington Beach and Riverside Beach. In Newport News, you can tour some of the museums like Mariners’ Museum and Park or Virginia Living Museum, explore the Newport News Park, and check out the shops, parks, and restaurants downtown.
#6: Norfolk
Median home price: $282,500 Norfolk, VA homes for sale Norfolk, VA apartments for rent
With just about 235,100 people living in Norfolk, it’s a great beach town to consider moving to. Some beaches you can visit include East Beach, Ocean View Beach, Sarah Constant Beach Park, Whitehurst Beach Park, and Willoughby Beach. Whether you check out one of the museums like Nauticus or the MacArthur Museum, see a show at Chrysler Hall, or explore the Virginia Zoo, there’s many activities to do and see in this beach town.
#7: Onancock
Median home price: $276,000 Onancock, VA homes for sale Onancock, VA apartments for rent
With a population of close to 1,200, Onancock is a quaint and charming coastal town to live in. This town has lots of cozy spots to check out the water views. If you’re going to call Onacock home, plan time to explore the downtown area where you’ll find local restaurants, shops, and parks.
#8: Tangier Island
Median home price: $188,000 Tangier Island, VA homes for sale Tangier Island, VA apartments for rent
Accessible only by boat or airplane, Tangier Island is located in the middle of Chesapeake Bay. This island has beautiful beaches such as Tangier Island Beach, perfect for a picnic or enjoying the scenery. Once moving to Tangier Island, you’ll want to visit the Tangier History Museum or have some fresh seafood.
#9: Virginia Beach
Median home price: $370,000 Virginia Beach, VA homes for sale Virginia Beach, VA apartments for rent
Just about 457,700 people live in Virginia Beach where you’ll find beaches like Chesapeake Beach, Croatan Beach, First Landing Beach, North End Beaches, Sandbridge Beach, and Virginia Beach. Other attractions in Virginia Beach include exploring the Back Bay National Wildlife Refuge and False Cape State Park, stopping by the Virginia Beach Fishing Pier, and checking out the downtown Virginia Beach area.
#10: Wachapreague
Median home price: $220,000 Wachapreague, VA homes for sale Wachapreague, VA apartments for rent
The waterfront city of Wachapreague has a population of only about 250, but there are lots of beaches to enjoy a picnic at, like Wachapreague Seaside Park. You’ll also have plenty of activities to do during your free time, like exploring the charming downtown area.
Note, this list is not comprehensive of all the beach towns in Virginia. Median home sale price data from the Redfin Data Center during June 2023. Average rental data from Rent.com June 2023. Population data sourced from the United States Census Bureau.
A new report from Redfin revealed 2012 was an absolutely fantastic time to purchase a home.
Collectively, that crop of home buyers earned $203 billion in equity since their well-timed purchases, with the median homeowner having gained 261%, or $141,000.
The average home sold in 2012 has increased by a whopping $110,000, from a median sale price of $210,000 to an estimated value of $320,000 today.
And these lucky buyers typically started off with just $54,000 in home equity that ballooned into $195,000.
Biggest Home Equity Gainers by City
In terms of most home equity gained, it was San Francisco leading the way with $741,000 median dollars, followed by San Jose ($669,000) and Oakland ($461,000).
Rounding out the top five were Seattle ($364,000) and Los Angeles ($318,000).
Home equity has grown a staggering $15 billion in the Los Angeles metro alone thanks to rising home prices since the fairly recent housing bottom.
They’ve also gone up more than $8 billion in Seattle and $7.9 billion in Oakland.
On a percentage basis, Tacoma, Washington (1453%) and Virginia Beach, VA (1333%) led the way, thanks in part to their proximity to major U.S. military bases.
Median home equity growth in Tacoma is $218,000 through September, and $80,000 in Virginia Beach.
This means sellers might be able to pocket six figures when unloading their properties, despite owning them little more than half a decade.
The numbers are based on about 1.4 million home sales across 138 housing markets nationwide during 2012, the year we hit bottom post-Great Recession.
They determined the homeowner’s 2012 equity based on the down payment used to purchase the property via county records.
For homes that are still owned today, current home equity is calculated as the difference between the homeowner’s outstanding loan balance and the property’s Redfin Estimate.
For homes that have been sold since 2012, calculated equity was the difference between the homeowner’s outstanding loan balance and the home’s sale price.
Homeowner Equity Hits All Time High
Meanwhile, aggregate home equity in mortgaged real estate increased by nearly $427 billion (4.8%) year-over-year from the second quarter of 2018 to a new all-time high, per CoreLogic.
However, the second quarter increase in home equity was the lowest annual gain in equity since the fourth quarter of 2012, a reflection of slowing home price growth.
As you can see from the map above, many homeowners have only seen home equity gains between one and five thousand dollars over the past year.
And in North Dakota, this number is down $5,000. Idaho is a standout with home equity up $22,100 on average, followed by Wyoming (+20k) and Nevada (+$17k).
Since the end of 2011, when home equity stopped its decline, borrowers have gained a massive $5.9 trillion in equity.
But it appears we are beginning to peak or at least plateau. And with for-sale home prices equally expensive, it’s tough for an existing homeowner to cash out and move somewhere cheap.
Homeowners are also sitting on a ton of untapped equity, with cash-out refinancing a shadow of its former self.
Whether this changes in light of these massive equity gains, coupled with the ultra-low mortgage rates on offer, remains to be seen.
The good news is today’s homeowner seems to be in pretty good shape relative to the homeowners of a decade ago.
They’ve got tons of home equity, a very low mortgage rate, and they probably truly qualified for their home loan at the time of origination, something that couldn’t be said in 2006.
Negative Equity Is Still a Thing
Somewhat amazingly, two million homes were still in a negative equity position, aka underwater, in the second quarter.
That represented 3.8% of all homes with a mortgage.
While it’s the lowest share since CoreLogic began tracking in the third quarter of 2009, several states are still feeling the effects of the worst housing crisis in modern history.
Negative equity levels remain highest in Louisiana, Connecticut, Illinois, Iowa, and New Jersey.
Step into a realm of unparalleled vacation rental mastery, where insider secrets await to catapult your property to five-star excellence. In this Redfin article, we explore these closely guarded secrets that will elevate your guests’ experience during their stay at your vacation rental
Whether you’ve already established your venture on Airbnb and VRBO, or are beginning to enter the industry in unique destinations, like the beautiful shores of Virginia Beach or the charming community of Katy, Texas, our guide will equip you with distinct strategies to unlock your property’s true potential. Ready to transform your vacation rental into an enchanting sanctuary where guests revel in unforgettable moments and glowing reviews naturally follow?
1. Become an informed and successful host in the travel and hospitality industry
Heather Bayer from Vacation Rental Formula states, “The moment you exchange your accommodation for money, you have entered the travel, tourism, and hospitality industry. It is not a passive business. Gain comprehensive knowledge through continuous learning: engage in networking, read industry-related materials, listen to informative podcasts, attend conferences, and enroll in relevant courses. Being the best-educated host on the block will be the key to your success.”
2. Set the stage for a memorable stay in the first 10 minutes
“The first 10 minutes of your guests’ stay is pivotal to their overall experience,” says Heather. “Ensure entry is easy, the temperature is right, it looks just like the photos, it smells fresh, the Wi-Fi code is prominently displayed, and there is a welcome message.”
3. Leverage the pre-stay period by sharing your local knowledge and expertise
“Don’t leave your guests wandering in tumbleweed time,” says Heather. “This is the period between booking and the stay when travelers are eagerly anticipating their vacation, yet most hosts and managers ignore this opportunity to share their local knowledge and expertise. Share your best recommendations for restaurants, tours, activities, and events way before your guests arrive. They will be able to plan and make reservations and avoid the disappointment of finding the things they want to do are sold out.
4. Make a direct booking website for your vacation rental
“Savvy owners and managers are creating content-rich websites that serve as a showcase for their location,” shares Heather. “They no longer rely on the big platforms to deliver their guests – instead, guests are being encouraged to book directly for the best value and experience.”
6. Control the guest experience by owning the entire rental stack
“In our experience, the key to maintaining a five-star rental property lies in a balanced blend of hospitality, high-quality amenities, and efficient communication. Our motto is ‘Strive not just to meet, but exceed guest expectations,’” says Murat Gocmen from MG Vacation Rentals.
“Owning the entire stack, from the cleaning company to the hot tub cleaning and snow plowing businesses, is a cornerstone of our vacation rental management strategy. It allows us to ensure an exceptional level of service and quality that’s consistent across all aspects of a guest’s experience.
Our hot tub cleaning company makes sure that this popular amenity is always in top condition, while our snow plowing company ensures clear and safe access to the property regardless of the weather, and our in-house professional cleaning service is employed after each stay to ensure a thoroughly cleaned and comfortable experience for the next guest.
By controlling these critical services, we have the ability to directly address any potential issues swiftly, maintain high standards, and uphold our promise of a pristine environment for every guest.”
In Courtesy of MG Vacation Rentals – North Lake Tahoe Vacation Rental Management Company
7. Address guest’s needs promptly
“Our most successful strategy for ensuring guest satisfaction and positive reviews has always been proactive communication,” insists Murat. “We believe in the power of listening to our guests’ needs and promptly addressing any concerns. This creates a trust-based relationship that often results in repeat bookings and glowing reviews.”
8. Personalize your amenities
“We’ve found that offering personalized amenities, like local coffee or guidebooks for local attractions, adds a special touch that enhances the guest experience. These thoughtful extras show guests that we care about their stay and are invested in making it memorable,” recommends Murat.
9. Provide feedback-driven improvements
“The main focus of creating a five-star rental experience lies in continuous improvement based on valuable guest feedback. While meticulous upkeep and personalized service are crucial, understanding guests’ unspoken needs and consistently enhancing your property based on their input is key,” shares Lotus West Properties.
“By prioritizing immaculate cleanliness and providing amenities that offer a true ‘home-away-from-home’ experience, you establish a strong foundation for guest satisfaction. Moreover, incorporating a personal touch, maintaining open communication, and actively implementing improvements based on feedback become the pillars of a rewarding and unforgettable rental experience for your guests.”
10. Deliver impeccable cleanliness
“As a frequent traveler and hospitality industry professional, I leverage specific elements to create a wow factor that ensures an exceptional experience for my guests. Anyone can provide basic accommodation, but to maintain a five-star experience, I always want to ensure immaculate cleanliness,” says ResortCleaning. “Guests should have peace of mind that your rental is cleaned to the highest standards.”
11. Shift your focus from ratings to guest care and unique experiences
“My first advice is to stop pursuing five-star ratings. It makes you one-dimensional. Instead, make it clear that your top priority is to genuinely welcome and care for your guests,” insists founding member Alan Colley of Host2Host and co-owner of Summit Prairie. “Caring is the secret sauce of superior hosts. Do your honest best to ‘sell the sizzle’ that makes your place one where a guest feels comfortable and enthusiastic about telling others why they chose you.”
12. Build a top-notch management team for the unexpected
“In my opinion, to maintain a five-star rental managed by a property management team, it is essential to uphold the highest cleaning standards, incorporate pre-checks between cleaning crews and guest check-ins, hire experienced reservationists for top-notch guest communication, and ensure the amenities are delivered as advertised,” recommends Reservation Specialists.
“Setting accurate expectations is critical. In case of unexpected circumstances, maintaining upbeat and positive communication is essential, along with providing alternative options if advertised amenities are unavailable.”
13. Have a single, dedicated point of contact for guests that can streamline communication between all channels
“The key to maintaining a five-star rental property goes well beyond mere upkeep and starts with having a dedicated point of contact for seamless communication,” suggests Jim Lagan from Home Realty LLC. “From there, having a mindset for meticulous maintenance, an unwavering focus on cleanliness, and a commitment to providing swift resolutions is what creates an exceptional experience for every guest or resident.”
14. Creating unforgettable stays goes beyond cleanliness with thoughtful details
“When it comes to running a five-star rental, it’s the details that make the difference. Immaculate cleanliness, combined with thoughtful touches like curated amenities, crafts an unforgettable guest experience,” explains Soda Stays. “It’s more than just maintaining high cleaning standards. It’s about putting your heart and soul into creating an environment where guests don’t just stay, they feel valued and appreciated. This unwavering dedication not only ensures an exceptional stay but also engraves an unforgettable experience.”
15. Manage your guest’s expectations
“I’ve managed everything from mansions in Malibu to cabins in the woods, but the best thing you can do for five-star ratings is manage guest expectations,” recommends Jeff Iloulian, CEO of HostGPO. “You should take great photos and your place should look like the photos. Is there anything guests should know about your place? Send them a message to let them know in advance. Share the amenities you provide in your listing so guests know what will be there for their stay.”
16. Provide the guests with a guidebook and all essential information about their stay
“I’ve found that answering all guests’ questions before they even have a chance to ask them through the use of a digital guidebook such as Touchstay, is essential,” says Avery Carl from The Short Term Shop. “Many guests are traveling in the evening to an area they are unfamiliar with, and having a resource prior to arrival that provides them with all the necessary information, such as the nearest grocery store and the type of coffee maker in the rental, can really take the stress off of guests after a long day of travel.”
17. The importance of high-quality products in vacation rental properties
“High-quality and durable products are crucial in a vacation rental property as they enhance the guest experience and reduce operational hassles. By providing reliable appliances, comfortable and well-kept furniture, and durable fixtures, vacation rental owners can ensure guest satisfaction, receive positive reviews, and minimize the need for frequent repairs or replacements,” insists Minoan Experience. “This not only leads to repeat bookings but also contributes to the long-term success and profitability of the vacation rental property.”
18. Positively set the ground rules
“One of the biggest keys to keeping any rental – as in not getting banned – is ensuring your guests behave respectfully in your community,” says Alexa Nota, Co-Founder and COO of Rent Responsibly. “Frame your house rules positively but clearly before guests arrive so they know what to expect. For example, for noise hours, you can say, ‘We love our neighbors and our neighborhood, so we kindly ask all guests to honor local quiet hours of 10 AM to 7 AM.’
Another tip is to offer an alternative. If you can’t accommodate many cars, for example, recommend a great parking area nearby so guests don’t park where it disrupts nearby homes.”
19. Quick tips for managing your vacation rental listing
Lifty Life provides a straightforward list of tips and tricks with managing rental vacation properties “to enhance the guest experience and satisfaction”:
Clear and accurate property descriptions: Provide detailed and accurate information about your vacation rental in your listings. Highlight the unique features, amenities, and any restrictions or limitations. Use high-quality photos that showcase the property’s best aspects.
Transparent communication: Be transparent about your rental policies, pricing, and any additional fees. Clear communication helps build trust and ensures guests have the necessary information before booking.
Thoughtful welcome pack: Create a welcome pack or basket that includes small but meaningful items such as bottled water, snacks, local maps, and guides. You can also leave a handwritten note to greet guests upon arrival. These small gestures make guests feel welcomed and appreciated.
Guest feedback and reviews: Encourage guests to leave feedback and reviews after their stay. Positive reviews can attract more guests, while constructive feedback helps you identify areas for improvement. Respond to reviews promptly and professionally, addressing any concerns or issues raised.
Flexibility and personalization: Whenever possible, try to accommodate special requests or preferences from your guests. This could include flexible check-in/check-out times, arranging transportation, or offering additional services like grocery shopping before their arrival. Personalized touches can leave a lasting impression.
24/7 support: Provide a reliable point of contact for guests in case of emergencies or any issues that may arise during their stay. Make sure they have access to a phone number or email address they can use to reach you at any time.
20. Invest in your vacation rental
“The number one trick to keeping your property rated as a five-star rental is understanding that, as owners, we must be willing to invest each year in the upkeep and maintenance of our properties,” suggests Norman Block from Block & Associates Realty. “Everyone who buys a car knows and expects that they will spend money annually to maintain the vehicle and protect their investment in that car. Yet, when it comes to rental homes, I am always amazed that landlords are reluctant to do the same.
Every property owner should expect to spend somewhere around a fourth to a half percent of the property value annually for repairs, fix-ups, and improvements. Real estate properties are most people’s biggest assets and these properties often carry our largest debts.”
One of the many historic states, Virginia has a rich history mixed with vibrant cities and gorgeous natural landscapes. From cities like Richmond and Alexandria to coastal towns like Virginia Beach, there are plenty of areas to look at if you’re considering moving to or buying a home in Virginia. From iconic Federal-style homes to Queen Anne and Georgian-style houses, there are lots of Virginia-style homes to choose from.
To help you find a starting point, we at Redfin have put together a list of 11 Virginia home styles you’re likely to find, whether you’re looking to buy a home in Virginia Beach or in Woodbridge. Let’s jump in and see some of the best Virginia-style homes.
1) American Foursquare
Commonly found in Virginia and other parts of the East Coast, American Foursquare homes were most popular from the late 1800s to the early 1900s. These homes are defined by their square or rectangular shape with a hipped roof and wide front porch. American Foursquare houses often have a simple, functional layout with a central hallway and rooms arranged around it, as well as classic finishes like built-in cabinetry, hardwood floors, and decorative moldings.
2) Bungalow
With their design inspired by the Craftsman style of architecture, bungalow houses are single-story homes with open concept living spaces and two-to-three bedrooms on the same level. The steepness of the gabled roof determines whether you’ll find an additional attic space. Other common features of bungalow homes include raised foundations and covered front porches. This home style is a popular choice due to their smaller size and affordability.
3) Colonial
If you’re a fan of traditional architecture, you can’t go wrong with a Colonial home. These homes have been around since the 1600s and come in a variety of styles, from Georgian to Federal to Dutch Colonial. Regardless of the style, most Colonial homes share certain design features, such as a two-story layout, a steep gable or gambrel roof, and symmetrical windows on the exterior. You’ll also find that these homes are typically made from durable materials like stone, wood, or brick, and often feature formal living and dining rooms on the main floor with bedrooms located on the second floor.
4) Contemporary
Contemporary homes offer a sleek and modern design that is becoming increasingly popular in Virginia. These homes have an emphasis on functionality and clean lines, making them perfect for those who appreciate minimalist design. Inside, contemporary homes feature an open-concept layout with ample natural light. Expect to see a mix of materials like concrete, glass, and steel that give the homes an edgy and sophisticated look.
5) Craftsman
Craftsman homes in Virginia typically feature a charming and cozy aesthetic that emphasizes warmth and comfort. These homes have a combination of natural materials such as wood and stone, as well as distinctive details like exposed beams and decorative brackets. Craftsman homes usually have an open floor plan, a cozy fireplace, and built-in cabinetry, all of which create an inviting feel of the space. These Virginia homes also often include outdoor living spaces such as porches or patios, perfect for enjoying the mild climate and scenic surroundings.
6) Federal
The Federal style emerged during the late 1700s and early 1800s, making them one of the older architectural styles in the US. Federal style homes in Virginia are typically two to three stories with symmetrical façades and rectangular shapes. They often feature brick or stone exteriors, with decorative elements such as columns, cornices, and pediments. Inside, they have high ceilings, intricate moldings, and grand central staircases.
7) Georgian
Another prominent architectural style in Virginia is the Georgian style. Popular in the 18th century, you can find Georgian homes in historic districts throughout the state. These homes have a symmetrical façade with evenly spaced windows, typically five on the first and second floors. The entrance is typically adorned with a decorative pediment, while the roofline is flat with a modillion cornice. Inside, these homes feature a central hallway with rooms on either side, high ceilings, and wood paneling.
8) Neo-colonial
Neo-colonial style homes in Virginia are a modern take on the traditional colonial design. They typically feature two-to-three stories, symmetrically placed windows and doors, and a central front entrance. Neo-colonial homes also tend to have pitched roofs with dormer windows and a brick or wood exterior. Inside, they often have traditional details like crown molding and wainscoting. Additionally, there are often modern upgrades like open floor plans and updated kitchens and bathrooms.
9) New construction
New construction homes are typically designed with a blend of traditional and modern architectural styles. Open floor plans, ample natural light, and energy-efficient features are common in new homes. Expect to see a range of building materials, including brick, stone, and fiber cement siding. Many new construction homes in Virginia also feature luxurious suites and large kitchens with high-end appliances. There are often outdoor living spaces such as decks or patios, completing the home.
10) Rambler
Rambler homes, also known as ranch-style homes, are single-story homes characterized by a long, low profile with a horizontal layout and typically have an open-concept floor plan. They often have a simple design with a low-pitched roof, large windows, and a minimalistic aesthetic. In Virginia, rambler homes are popular in suburban and rural areas. You can find them on large lots with expansive outdoor spaces. They offer convenient, single-level living with a focus on indoor-outdoor connectivity.
11) Queen Anne
The final Virginia home style is the Queen Anne house, known for its ornate and elaborate features. Queen Anne homes are typically two or three stories tall with steeply pitched roofs, asymmetrical facades, and multiple gables. The exteriors of these houses are often made of wood or brick and feature intricate details such as stained glass windows, decorative shingles, and ornamental brackets.
Inside, these homes have high ceilings, large windows, and elaborate woodwork, including crown molding and carved staircases. Many Queen Anne homes also feature large front porches with intricate woodwork and decorative railings, as well as spacious rooms with multiple fireplaces.
It’s getting tougher for house hunters to find a home to buy, particularly in large cities, as the housing industry faces a dearth of inventory.
The number of homes for sale in 2023 decreased in 21 of the 50 largest metropolitan areas compared to this time last year, according to a new report from Realtor.com. San Jose, California, saw the steepest decline, with 35% fewer homes listed for sale this year. Sacramento, California, ranked second highest, with a decline of 27%; followed by Hartford, Connecticut, where listings were down 26%.
Real estate agents in those cities told CBS MoneyWatch that in addition to inventory declines, elevated home prices and mortgage rates have changed the way buyers shop and quelled sellers’ eagerness to sell.
“In Sacramento, homes under $500,000 are moving very quickly because buyers in that price range don’t have a lot of options,” said David Orr, an agent for Redfin in Sacramento. “The inventory is really tight because sellers are hesitant to list their current home when they have such a low interest rate.”
according to Realtor.com.
While competition for houses is intense in California’s capital city, Orr said buyers are being cautious about their bids and asking sellers to help with closing costs or to pay for a lowered interest rate.
“I am seeing multiple offers, but it’s not like last year, when everyone was like ‘Hey I’m going to give you a first-born child along with this offer,'” he said “Now, people are making offers a bit above or below the asking price.”
Bidding wars are new norm
Braxton Warren, a real estate agent at Compass, said Sacramento homes are priced lower than nearby Seattle and San Francisco, which is also fueling hot competition there.
“House hunters have acknowledged the shortage of options but have come to accept the reality of the situation,” Warren told CBS MoneyWatch. “Homes are under a bidding war with 20-30 buyers all in line for the same home.”
Meanwhile, in Connecticut, the Hartford area “has witnessed a significant decrease in inventory, resulting in a transformative market shift,” said David Krasnoff, a realtor at Compass.
“Bidding wars have become the norm as every reasonably priced home brings in multiple offers, often exceeding the listing price,” Krasnoff said.
Other cities that saw year-over-year inventory declines are:
San Diego (26%)
Milwaukee (23%)
Cincinnati (23%)
San Francisco (20%)
Chicago (18%)
Washington, D.C. (16%)
Rochester, New York (13%)
Seattle (11%)
Providence, Rhode Island (11%)
New York City (10%)
Los Angeles (10%)
Baltimore (8%)
Philadelphia (6%)
Detroit (5%)
Boston (4%)
Virginia Beach, Virginia (2.5%)
Minneapolis (2%)
Riverside, California (1%)
Cleveland (.5%)
Cities where the number of homes for sale increased were mainly in the South, including Austin, Texas; Birmingham, Alabama; Jacksonville, Florida; Nashville; and San Antonio.
A nationwide lack of inventory has become a major headline in the housing market with homebuyers now facing a triple whammy of higher mortgage rates, elevated asking prices and few options from which to choose.
Inventory overall grew in May when compared to a year ago but the rate of growth has slowed over the past three months, according to Realtor.com. A shortage of skilled workers in the construction industry is partly to blame for the decline in new homes for sale, the National Association of Home Builders has said.
Despite higher prices, more than 4.2 million people bought houses in April, according to the National Association of Realtors.
“The good news for sellers is that buyers are still out there and this month’s slower growth in the active inventory of homes for sale indicates that shoppers are in the market and actively searching for homes that fit their needs and budget,” Danielle Hale, Realtor.com’s chief economist, said in a statement.
Khristopher J. Brooks
Khristopher J. Brooks is a reporter for CBS MoneyWatch covering business, consumer and financial stories that range from economic inequality and housing issues to bankruptcies and the business of sports.
Considering a move to a larger apartment? Wondering if you can afford a second bedroom?
We wondered the same thing and decided to look at our data to see what metro areas had the biggest percentage rent increase from one bedroom to two bedrooms.
In metros with at least 50 apartment listings, we looked at the lowest-price one bedroom and two bedroom apartment units to determine the average percentage increase between the two inside the same community. We included only apartment listings for which there were both one and two bedroom offerings located on the same property.
The Top Ten
1 Dallas-Fort Worth-Arlington, TX
34%
2 San Antonio-New Braunfels, TX
32%
3 Houston-Sugar Land-Baytown, TX
32%
4 Austin-Round Rock-San Marcos, TX
30%
5 New Orleans-Metairie-Kenner, LA
29%
6 Tulsa, OK
28%
7 New York-Newark-Jersey City, NY-NJ-PA
28%
8 Los Angeles-Long Beach-Anaheim, CA
28%
9 Denver-Aurora-Broomfield, CO
26%
10 Chicago-Naperville-Joliet, IL-IN-WI
26%
They say everything’s bigger in Texas…
If you live in one of four major metros in Texas, there’s a premium on that extra bedroom. In fact, they were the top four on our list. These four Texas areas are the only ones on our list with 30% or greater increases between average one and two bedroom apartment rental rates.
The CBS affiliate in Dallas/Fort Worth recently attributed the booming rental market to high-paying jobs for younger people. According to national market analysis manager for MPF Research, Jay Parsons, “the apartment market key segment is the folks between the ages of 20 to 34-year-olds, and that segment has grown in DFW (Dallas and Fort Worth) by about 8-percent in the past five years,” helping the rental market there reach a more than 94-percent occupancy rate.
This growth in apartment demand may help explain why Dallas/Fort Worth tops our list. On average, it costs 34% more to rent a two bedroom apartment than a one bedroom in this rental market.
Where you might opt to move up
What about the other end of the spectrum?
It is least expensive, on average, to make the same move in these spots:
Birmingham-Hoover, AL
16%
Reno-Sparks, NV
16%
Columbus, GA-AL
16%
Akron, OH
16%
Charleston-North Charleston-Summerville, SC
16%
Pensacola-Ferry Pass-Brent, FL
16%
Virginia Beach-Norfolk-Newport News, VA-NC
15%
Des Moines-West Des Moines, IA
15%
Fayetteville, NC
13%
Fresno, CA
12%
In Reno, renting a two bedroom apartment is less of a gamble!
Metros that fall somewhere in the middle
Several major markets fall more to the middle range, in our look at the data.
Portland, Oregon – arguably as hip a city as Austin – costs less on average to make the switch from one to two bedrooms.
For a time last year, Nashville, Tennessee, had the highest percentage rent growth in the nation. But renting a two bedroom apartment in the city is only, on average, 22% more expensive than renting a one bedroom – a more reasonable difference than in about 25 other metro areas on our list.
Major metros like Los Angeles, San Francisco, Seattle and the Washington, D.C., area are not at the top of this list, despite their popularity — and relatively high rent rates.
Methodology: In 2014, in CBSAs (Core Based Statistical Areas, also commonly referred to as metros) with at least 50 apartment listings on ApartmentGuide.com, we looked at the lowest-price one bedroom and two bedroom apartment units to determine the average percentage increase between the two inside the same community. We included only apartment listings for which there were both one and two bedroom offerings located on the same property.
Should we worry? Home sellers are hitting it out of the park, a potentially ominous sign we’ve gotten a little too house happy again, this according to a new report from RealtyTrac.
The company’s data revealed that U.S. home sellers chalked an average gain of 17% in March, the highest of any month since December 2007.
Back then, home prices were quite lofty and it wasn’t long before the market nosedived. Yes, things are a lot different this time around, thanks mainly to a cleaner stable of mortgages, but it’s still somewhat worrisome.
I don’t think this housing rally is over yet, but we might be getting closer to the end of the positive portion of the current cycle.
RealtyTrac noted that home sellers on average sold their homes for $30,500 more than what they purchased them for. The largest gains were seen in San Francisco (72%); San Jose (60%); Boulder (53%); Prescott (51%); and Los Angeles (48%).
Many other markets saw gains at twice the national average, including Denver (42%); Portland (40%); Austin (40%); Seattle (38%); Baltimore (38%); Riverside-San Bernardino (37%); San Diego (36%); and Sacramento (35%).
More Than a Third of Housing Markets Have Hit New All-Time Highs
RealtyTrac senior vice president Daren Blomquist said home sellers in many parts of the country are seeing average gains “close to or above” those experienced in the prior boom.
And the median sales price has reached a new all-time high in 36% of markets nationwide, including Boulder, Denver, Portland, Fort Collins, Austin, Greeley, and Cincinnati. Four of those markets are in the state of Colorado.
Nationwide, the median sales price was $210,000 in March, a nine percent increase from February and an 11% rise from a year earlier. March was also the 49th consecutive month of year-over-year home price increases. I’m guessing we’ll hit 50 next month…
After all, we are still eight percent below the $228,000 peak seen in July 2005, and chances are we’ll pass that and then some. Factor in inflation and maybe home prices aren’t as high as they appear.
The biggest year-over-year winners included Philadelphia (+29%); Rockford, Illinois (+22%); Jacksonville (+22); Cincinnati (+19%); and Deltona-Daytona Beach-Ormond Beach, Florida (+18%).
It’s Not All Rosy
Despite an overall uptrend in much of the nation, some 17% of housing markets from coast to coast actually lost value in the past 12 months.
This bad list includes Washington, D.C. (down 7%); San Francisco (-2%); Baltimore, Maryland (-6%); Pittsburgh (-4%); Virginia Beach (-2%); Birmingham, Alabama (-5%); and Tulsa, Oklahoma (-1%).
In San Francisco, a 47-month winning streak has been broken, and in Pittsburgh a 21-month streak has come to an end. You can blame affordability concerns for that, along with an increase in distressed sales.
Sellers were cutting their losses in another 15% of housing markets, with Rockford, Illinois (11% average loss relative to purchase price) the leader in that department. Interestingly, homeowners there have seen some of the biggest gains in the nation over the past year. But sellers still decided to move on.
Other losers included Winston-Salem, North Carolina (10% loss); Cleveland, Ohio (8% loss); Columbia, South Carolina (7% loss); and Wilmington, North Carolina (5% loss).
Smaller losses were seen in bigger metros such as Milwaukee, Chicago, Cincinnati, Birmingham, and Flint.
Those who sold last month had owned their properties for an average of 7.67 years, up four percent from the 7.37-year average seen a year earlier.
Remember, most folks don’t hold onto their homes very long so you can make an argument for a 7/1 ARM instead of a fixed product. Of course, everyone always thinks they’ll stay longer.
Where We’re At Now
It appears as if a lot of homeowners are happy to either break even or sell for a small loss after so many years of being underwater on the mortgage.
There are probably lots of investors cashing out as well after holding for just a few years. And of course we’ve got the flippers buying, renovating, and cashing in.
But I don’t think we’re at another market peak just yet. Yes, there are affordability concerns and hearing about new all-time highs gives me shivers down my spine.
Just because we’re hitting new highs doesn’t mean prices can’t go any higher. And as mentioned, you have to factor in inflation to the numbers. If they’re adjusted for inflation they’re still far off the real all-time highs.
Of course, you could argue that the previous all-time highs were absurd, driven by crappy mortgages, and completely unsustainable.
So where does that leave us? Well, my personal opinion is that with rents so high and unattractive, and many would-be homeowners still getting back on their feet (and Millennials beginning to believe in housing again), we’ve got more home price growth to come.
However, the bulk of the gains have already been realized. I think the gains will continue to defy estimates for a little while, kind of like how mortgage rates continue to stay low despite wrong forecast after wrong forecast.
But like rates, there will come a time soon when things finally shift. Even if home prices do kind of plateau, as some have said, buying is still a better deal than renting in many areas of the country. That tells me there’s more upside for a while, though as the data shows, it will vary widely by market.