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Do You Work in One of the Worst Housing Markets for 2020?

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This time of year you can expect to see lots of articles about the best housing markets across the country, the places where the experts think home prices will appreciate and the sales volume will grow. Realtor.com has one set of rankings. The National Association of Realtors has their own top 10. So we thought it would be worthwhile to take a look at the worst housing markets for 2020.

Now, what exactly do we mean by worst??

By worst housing markets, we mean most challenging. If you work in one of these markets, there?s no reason to panic. These are just predictions. A little elbow grease is almost always enough for agents and lenders to overcome slumps in volume.

That being said, these predictions about the worst housing markets are based on real data including GDP, monetary policy, employment numbers, consumer confidence, as well as local market conditions like supply, demand and affordability.

Based on that information, the cities and metro areas below are expected to see the most home sales volume decreases in 2020:

  1. Des Moines, Iowa – 10.5%
  2. Palm Bay-Melbourne-Titusville, Florida – 9.8%
  3. Las Vegas-Henderson-Paradise, Nevada – 9.5%
  4. Richmond, Virginia – 7.7%
  5. Riverside-San Bernardino-Ontario, California – 7.6%

Las Vegas and the markets in South Florida and Riverside have been among the hottest in recent years, and their appearance on a list of the worst housing markets represents a healthy pullback.?

Supply problems are likely to get worse nationwide, but particularly in big cities, like New York City and San Francisco, which are also projected to see above-average decreases in sales volume.

View the complete analysis and the other 95 markets here: 2020 Housing Market Predictions ? Realtor.com

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Learn more about the Acuity Difference or Contact Us to work with us on your next transaction.?

Expert Predictions for the Housing Market in the Second Half of 2019

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All in all, 2019 has been good for real estate buyers so far. Home prices stopped soaring, and mortgage rates dipped. Although there is less competition for buyers, CoreLogic told Forbes the market remains a sellers? market. Despite this slant, buyers can still enter the market. Here are the experts’ predictions for the housing market in the second half of 2019.

The Persuasion of Millennials

According to Forbes, last year, over 50% of all Fannie Mae and Freddie Mac mortgages were first-time buyers.? Millennials are now at the ideal age for buying their first home.?

The National Association of Realtors reported millennials represented 37% of all homebuyers last year. Since 2017, millennials accounted for 20% of all sellers. They are also the country’s largest mortgage originators, holding 45% of 2018 mortgage originations.?

Some Inventory Improvements

Inventory is rising for starter homes and trade-up properties. However, it?s not likely to fulfill demand. Starter home inventory was up 3.5% last quarter, with a rise in trade-up options of 4.8%. However, this came with a 12.4% and 8.3% increase in price, respectively.

Forbes also reported that there have been inventory increases, but they remain low according to LendingTree?s chief economist Tendayi Kapfidze. That is especially true of homes available at lower prices?

Odeta Kushi, deputy chief economist for First American, told Forbes that total housing stock is quite a bit lower than the nation?s pre-recession average. Higher markets are the most likely to benefit from any upward trend in starter-home inventory, especially in areas like the West Coast?s San Jose and Seattle areas.

Increasing Home Prices

Although the increase in prices has slowed, it hasn?t reversed. This is helping make homes more affordable when you consider that there has been an acceleration in wage growth. Caution is required as prices are still on the rise, but where homebuyers can win is with the lower mortgage rates. It?s the low inventory that will keep prices rising according to Kushi, and CoreLogic predicts a 5.6% increase by May 2020.

Low Mortgage Rates

Mortgage rates are the lowest since late 2016. The average, according to Freddie Mac, is 3.6%. This led to a surge of refinancing in late June. In fact, more than half the mortgages just before July of this year were refinances.

There?s a chance that mortgage rates might drop even more. Doug Duncan, chief economist at Fannie Mae, told Forbes that he feels they could decrease “if the Fed acts to lower rates as insurance for economic growth.??

Forbes reports that mortgage experts, including Fannie Mae, Freddie Mac, and the Mortgage Bankers Association, are predicting a 3.9% to 4.1% 30-year, fixed-rate mortgage rate by the end of the year. Last year?s full-year average was 4.54%.

No Rush for Buyers

Buyers don?t need to rush to get into the market as prices are moderated and mortgage rates aren?t expected to rise significantly. The prices will vary by market, so first-time buyers should speak to our experts to see how their area is performing. We can let you know how supply and demand are looking to help determine affordability.?

Experience the Acuity Difference?

Acuity National Real Estate Solutions offers clients a 24-hour portal to access, upload, and download files at any time. Even as we continue to redefine what a?title agency can be, Acuity National Real Estate Solutions is committed to staying true to its guiding principle: providing individualized service without sacrificing efficiency.?

For more information, visit our homepage?today.

What Housing Market Slowdown?

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Though the news is full of dire warnings about the housing market, real estate agents can feel secure moving forward as more buyers are expected to enter the market in the coming months. Even though the market may not bounce back to early 2018 levels, lowered interest rates are appealing to many buyers. Some markets are performing better than others, but the overall outlook is more favorable than it was?earlier this year. Here?s what you need to know.

Interest Rates & Declining Supply

Due to the slowing market, interest rates have been dropped quite low, below 4%. According to?realtor.com?rates have been as low as 3.75%. This is no small amount in a buyer?s eyes, saving them thousands over the life of their mortgage. Many buyers, especially those who are already homeowners, see this as an advantageous time to buy a new, larger home.

However, those buyers who are looking to enter the market may find they have limited options, as supply continues to decline. This is compounded as more millennials reach home-buying age and start to look for entry-level homes. Supply of these homes is lower than supply for those who are looking to upgrade their housing situation. Millennials still face the financial challenges that have pushed back their average first-time home-buying age.

For real estate agents, this often means it will take longer to find each client their new home, and it will cost that client more. Investing in ways to save time on each client, without reducing your quality of service, will benefit you moving forward.

Areas Where the Market is Hot

Some areas that were affected by the slow down are seeing a huge boost from lowered interest rates. For example, San Jose, San Francisco, and Seattle are all seeing increased sales and prices. Across the nation, the median home listing price reached an all-time high of $316,000. Your market may be heading for a busier season than you expect.

What to Expect Moving Forward

Still, some things have changed. Noticeably, few buyers are willing to enter bidding wars in the current climate. That being said, there should be many of these buyers.

?There?s still plenty of pent-up demand from years of underbuilding and more millennials coming of age,? says realtor.com Chief Economist Danielle Hale. ?This year?s buyers seem a little more patient. They?re more willing to wait for a good property.?

For real estate agents, using strategies to save time wherever you can will help you take on fewer indecisive clients and keep your overall revenue up. Don?t just save time when looking for properties and bringing on new clients, try to save time with the transaction. Acuity National Real Estate Solutions can?help.

Work With Acuity National Real Estate Solutions

Acuity National Real Estate Solutions offers clients a 24-hour portal to access, upload, and download files at any time. Even as we continue to redefine what a?title agency?can be, Acuity National Real Estate Solutions is committed to staying true to its guiding principle: providing individualized service without sacrificing efficiency.

For more information, visit our?homepage?today.

HIGHLIGHTS FROM THE CENSUS BUREAU?S NEW HOUSING REPORT

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The U.S. Census Bureau has released its 2018 Characteristics of New Housing report, and it has literally everything real estate pros need to know about new single-family housing on the national and regional levels.
If it feels like construction is happening everywhere, that the sound of cranes and bulldozers is constantly drifting in your windows, here?s why: 2018 saw 840,000 single-family homes completed, the most since the end of the previous housing boom in 2007.
90 percent of those homes had three bedrooms or more, and 60 percent were between 1,800 to 2,999 square feet.
Of the 840,000 single family homes constructed last year, 783,000 had air conditioning, 306,000 had three or more bathrooms, 778,000 were framed in wood, 270,000 had a patio and a porch.

How are people buying homes?

Consistent with other years since 2009, 2018 saw 65 percent of sales financed using conventional loans. This is significantly lower than the 80 percent norm from 1999 until the end of the last boom. The difference has been made up since the crash by all-cash and FHA buyers

What about multi-family units?

In 2018, 345,000 multi-family units were completed, 44,000 of which were built specifically to be rentals. The number of rental-dedicated multi-family units has been on the rise since 2013, the first year the category was tracked.

What information can I find in the report?

Anything and everything, and beware: it?s extremely easy to get sucked into this report and spend an hour or more perusing the numbers.

You will find 2018 new housing numbers as well as the data going back to 1973 for:

  • Bathrooms
  • Bedrooms
  • Building material ? brick, stucco, vinyl, wood or other?
  • Construction Method
  • Fireplaces
  • Air-Conditioning
  • Laundry
  • Parking
  • Much more!

Here?s the complete report from the Census Bureau.

Experience the Acuity Difference

Acuity National Real Estate Solutions offers clients a 24-hour portal to access, upload, and download files at any time.
Even as we continue to redefine what a title agency can be, Acuity National Real Estate Solutions is committed to staying true to its guiding principle: providing individualized service without sacrificing efficiency.
For more information, visit our homepage today.

HOW MORTGAGE ORIGINATORS THRIVE IN STAGNANT MARKETS

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This year is likely to be a watershed for the mortgage industry. Mortgage originators must be prepared for change, especially those that have little or no experience working in a slowing or stagnant housing market.

As margins compress, executives will have to make tough decisions regarding staffing and commissions. Whether mortgage originators have a profitable year or just break even will depend on two things: whether they can build relationships with borrowers and whether they can stay disciplined.

The mortgage industry is defined by peaks and valleys. Even if 2019 doesn?t bring a slowing market, the next valley is always right around the corner. These are skills you need to have no matter the direction of the housing market.

Build Relationships

One trait that sets successful mortgage originators apart from unsuccessful ones is their natural ability to build strong relationships with borrowers. Borrower satisfaction is their ultimate measure of success.

After a decade of extremely low rates, many originators have developed sizeable operations based on a high volume of refinance loans. But as rates normalize, this business channel is starting to dry up.

Originators who have thrived by getting borrowers in and out the door quickly are likely to experience a significant slowdown. Those that have taken the time to educate and engage borrowers will continue to see business during downturns, and for years to come, thanks to repeat business and referrals.

Be Disciplined

A key to long-term success in the mortgage industry is never having just one iron in the fire. Establish a process that ensures you are always working on something new. Below are just a few ways you can do that.

Finish the most critical items first, even if they?re the most time-consuming and difficult. It?s human nature to take care of easy tasks first. Work against your human nature! When you finish your most pressing items at the beginning of the day, it?s easier to budget your time and have real, meaningful connections with the borrowers that come into your office.

Help at least one person a day. It doesn?t have to be anything big. The mortgage industry is more than numbers. It?s about people. By serving others, you?ll better understand the community you?re working in and build relationships outside of work that could ? though this isn?t the primary motive ? come back to you in the form of business.

Learn something new each day. This is especially important if you?ve been working in the mortgage industry for a long time. You know practically all there is to know about the mortgage business, but what about other areas of real estate? Expand your areas of interest and expertise by trying to figure out something new each day. Real estate is full of niche areas of specialization. Add a few more to your repertoire. They may come in handy in the future.

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Housing Market Forecast for 2019: What to Expect

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Could the housing market see positive changes in 2019? Rising mortgage rates, low housing inventory, and steep prices have all been significant issues recently. While mortgage rates and prices are not expected to improve anytime soon, there are some positive changes expected to come in the new year. In our housing market forecast for 2019 below, we discuss what experts predict to remain the same and what is expected to change, for better or worse.

A (Much Needed) Increase in Inventory

Just a little over a year ago, in the winter of 2017, the housing inventory dropped to a record low. Since then, it has not been able to successfully rise to favorable levels. The low inventory of homes has been a common issue in the housing market for the last couple of years. Thankfully, experts anticipate the rise of home inventory in 2019. This is great news for anyone who has been struggling to find a home that effectively meets all of their needs. It is also a slight relief for people who have felt overwhelmed by the competitiveness of the housing market.

Larger Variety of Homes

If you are a prospective first-time homebuyer, you may want to consider moving into a townhouse or a mobile home. Both of these types of homes are growing in popularity because of their prime location and better affordability.
A mobile home is a manufactured house that costs much less than a regular single-family home, and the volume of shipments is expected to rise from 93,000 to 100,000.
A townhouse is similar to an apartment, in that it is attached to other housing units and exists in a housing community. However, they provide the occupant with more of a ?home? feel, since they typically come with multiple floors, a private entrance, and a private garage.

Affordability Will Continue to Be Problematic

Affording a home, unfortunately, will not become any easier in 2019 – according to experts. Home prices aren?t predicted to rise as harshly as they did in 2018; Lawrence Yun from the National Association of Realtors expects modest price growth of 2 to 3 percent. Furthermore, by the end of 2019, mortgage rates are expected to rise to 5.5 percent.

Home Buyers & Sellers May Sit the Year Out

Due to the rising prices, there is a good chance that prospective homebuyers may decide to sit this year out. This will give them an opportunity to save up additional money or to wait for prices to fall. The rising mortgage rates are going to make some homeowners stay put, rather than move out. This way, they will not have to sacrifice their current mortgage rate for a higher one.

Consider Acuity for Title Services when Home Buying or Working with Home Buyers

When you select Acuity National Real Estate Solutions, you?ll work with a national title agency offering cutting-edge tools to streamline your closing so it takes place on time. If you?re a home buyer, lender or real estate agent who would like more information, please contact us today!

The Difference Between Fixtures and Chattels

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When transferring property from a seller to a buyer, the items included in the purchase are not always clear. This is why every piece of property is deemed as either a fixture or a chattel. A property lawyer should explain the difference between these two, since they are commonly listed in the terms of the agreement and buying/selling documents. If this isn?t clear, the buyer may be very disappointed to find that an item they expected to be included in the home is missing. Let?s take a look at the difference between fixtures and chattels:

Fixtures

In simplest terms, fixtures are items that are attached to the land or property a buyer is purchasing. These are immobile and cannot be removed from the property without causing damage. As a result, they would be included in the purchase of a property. While it may sound like it would be obvious to tell which items are fixtures and which are not, you?d be surprised. Sometimes, courts can consider something a chattel, even though it appeared to be a fixture to the buyer or seller. To illustrate, the seats in a home theater, despite being securely bolted to the basement floor, can be labeled as a chattel by a court. This can be confusing since it contradicts the definition of a fixture.

Chattels

On the other hand, chattels are items that are not attached to a land or property and can be moved around. These items include such things as small appliances, furniture, and electronics. These items cannot be built-in to the home. Otherwise, they would be considered fixtures, since they would require professional assistance to be removed and could be damage the home upon removal. Basically, they are the personal belongings of the owner, so they would not be included in the buyer?s purchase of the home.
The best way to prevent any surprise exclusions of items in the purchase of a home is to find out the exact items that the seller has agreed to sell. In the home buying process, it is best to not assume anything.

Consider Acuity for Title Services when Home Buying or Working with Home Buyers


When you select Acuity National Real Estate Solutions, you?ll work with a national title agency offering cutting-edge tools to streamline your closing so it takes place on time. If you?re a home buyer, lender or real estate agent who would like more information, please contact us today!

The Different Types of Property Liens

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A property lien is issued when there is debt that hasn?t been paid on a property. It gives the homeowner a legal notice that this third party they owe money to has a claim on a portion of their property. These liens will prevent the transfer of clear and free title to the property. Curious about the different types of property liens? Here are the three main categories that liens fall into:
Mechanical/Contractor Lien: This type of property lien occurs when a homeowner uses a contractor for any form of home renovation or improvement, but doesn?t pay them appropriately. This could be a case where the homeowners didn?t pay the full amount for a project, or simply neglected to pay for the service at all. Sometimes, the contractor will foreclose on the lien they are placing.
Tax Lien: These liens are placed on a property by the county in which the home resides if property taxes are evaded. Tax liens will also be filed by the IRS if the homeowner failed to pay federal taxes. These liens will continue to gain interest until they are paid off in full.
Judgment Lien: A judgment lien will be placed on your property by a plaintiff should you fail to pay any money you owe to another party as a result of a court ruling. Examples of settlements can include any outstanding credit card debt, medical bills, or child support.

How to Find Out If You Have a Lien on Your Property

Title searches can uncover any liens that may exist on a property. You can also find out for yourself by checking through public records. Hiring a professional to do this work for you is smarter, however, since you can trust them to find anything you may miss when searching on your own. If a lien is found, you will have to sort it out before you can move forward in a sale.

Consider Acuity for Title Services when Home Buying or Working with Home Buyers

When you select Acuity National Real Estate Solutions, you?ll work with a national title agency offering cutting-edge tools to streamline your closing so it takes place on time. If you?re a home buyer, lender or real estate agent who would like more information, please contact us today!

The 10 Most Expensive Places to Live in the US

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Everyone dreams of one day living in a rich area like Beverly Hills, California. While it is easy to find out the average monthly rent of properties in this area, it is important to also factor in things like the average mortgage in that area, healthcare costs, utilities, and day-to-day expenses such as food and transportation. The personal finance site GOBankingRates went ahead and combined all of these expenses, allowing them to figure out which places in the US would require the highest annual salary.
Below we count down the 10 most expensive places to live in America and the total annual income needed to live there:

10.) Honolulu, Hawaii

Total Income Needed: About $288,000
This paradise city actually has the highest cost of living compared to the rest of the US, due to inflated prices for daily items like groceries and transportation. It is also home to multiple high-end spots for dining, nightlife, and shopping.

9.) Sullivan?s Island, South Carolina

Total Income Needed: About $296,350
This tiny island is a suburb of Charleston and is famous for its beautiful wide beaches and majestic mansions. This island also played an important role in history, serving as the location of the battle at Fort Sullivan in 1776.

8.) Nantucket, Massachusetts

Total Income Needed: About $331,560
People looking for an exquisite summer getaway, look no further. Nantucket is a small island near Cape Cod filled with fancy restaurants and upscale boutiques. Its high price-tag will give you access to stunning beaches and water views.

7.) Greenwich, Connecticut

Total Income Needed: About $343,130
Nestled right between New York and Connecticut, Greenwich is the location of multiple hedge funds and finance companies. It makes an ideal spot to host wealthy individuals, as 12 of the world?s billionaires call this place home.

6.) Sea Island, Georgia

Total Income Needed: About $354,370
This is another small island, but one with a population of only roughly 400 people. It is a prime vacation spot containing two high-rated resorts called the ?Sea Island Beach Club? and ?The Cloister.?

5.) Aspen, Colorado

Total Income Needed: About $380,590
Aspen is a popular vacation spot for anyone who enjoys skiing or scenic views of mountains. It is located in the center of the White River National Forest, with a median home value of roughly $1.4 million. Many celebrities and rich businessmen have decided to call this place home.

4.) Fisher Island, Florida

Total Income Needed: About $452,630
Nestled right below South Beach, Miami lies Fisher Island. It is home to only about 700 individuals, with the highest per capita income of any area in the United States. As if it wasn?t exclusive enough, the island is only accessible by boat.

3.) Alpine, New Jersey

Total Income Needed: About $499,240
For wealthy people working in New York City, Alpine is in a prime location. Located almost right across the Hudson River, it is home to celebrities and thriving businessmen who desire a luxurious home in a convenient and quiet location.

2.) Beverly Hills, California

Total Income Needed: About $692,390
As you?d expect, your dream home in Beverly Hills is going to cost you. For the high price-tag though, you?ll bask in the sunshine in a beautiful home near all of the Hollywood elites.

1.) Sagaponack, New York

Total Income Needed: About $853,740
Taking the crown for the most expensive town in the United States is Sagaponack. It is located in Southampton, part of Eastern Long Island. In 2016, the median price of a home was $5.5 million. Vacation homes are occupied by high-profile celebrities like Billy Joel and Jimmy Fallon as well as former Goldman Sachs bankers.
Consider Acuity for Title Services when Home Buying or Working with Home Buyers
When you select Acuity National Real Estate Solutions, you?ll work with a national title agency offering cutting-edge tools to streamline your closing so it takes place on time. If you?re a home buyer, lender or real estate agent who would like more information, please contact us today!

Housing Markets with the Highest Percentage of Upside-Down Homeowners

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In 2008, when the housing market crashed, over 30% of homeowners were upside-down on mortgages. Fast-forward 10 years, and the housing market has made significant progress in its recovery. The national percentage of homeowners who are upside-down has fallen below 10%, according to a recent report from Zillow. This is the lowest it has been since the crash occurred, which is great news for those who have been struggling to free themselves from negative equity. However, there are still certain housing markets across the United States with a large number of upside-down homeowners.?

What does it mean to be upside-down?

When a homeowner is ?upside-down? (or ?underwater?) on their mortgage, they have negative equity. This means that they owe more money for their mortgage than the actual value of their house. To illustrate, let?s say the value of your home fell from $90,000 to $65,000 and the mortgage on your home is $75,000. You would now owe more money to pay off your mortgage than the amount of money you could make selling it.

How does this happen?

Any mild or severe recession can cause homeowners to turn upside-down. However, the housing market crisis of 2008 is largely to blame since it caused most homes to lose more than a quarter of their value. This resulted in millions of homeowners sinking into negative equity. Today, national home values are continuing to increase, saving many people who have been suffering from negative equity.

What markets have the highest percentage of upside-down homeowners?

Market Location:? ? ? ?Negative Equity Rate:

 

Virginia Beach, VA 16.7%
Chicago, IL 15.5%
Baltimore, MD 14.2%
Cleveland, OH 13.0%
St. Louis, MO 12.0%
Philadelphia, PA 11.6%
Washington, DC 11.3%
Detroit, MI 10.8%
Las Vegas, NV 9.9%
Atlanta, GA 9.9%

Despite the positive progress made, roughly 4.5 million homeowners in the United States are still upside-down on their mortgages. With a negative equity rate of 16.7%, Virginia Beach takes the crown for having the most upside-down homes in America. Falling only shortly behind is Chicago, with a negative equity rate of 15.5%.
Rather than selling their home for a loss, Americans in the above housing markets are instead holding onto their homes for as long as possible. ?Their struggles mean there are fewer homes on the market for homebuyers today,? says Aaron Terrazas, the senior economist at Zillow. ?In corners of the country where home values have been stagnant in recent years, recent homebuyers can easily fall underwater, particularly those who buy with small down payments.?

Looking Ahead

Upside-down homeowners need to be patient if they wish to obtain positive equity.
Despite the high percentage of negative equity in select housing markets, we have seen significant progress made to lower the national average. Hopefully, this number will continue to decline, and struggling homeowners can break-free from the chains of having negative equity.