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35% of sellers said WFH was the reason they sold

35% of sellers said WFH was the reason they sold
by Brad Cartier, posted in Newsletter

New Zumper data shows that similar to housing prices, rents continue to rise with no signs of slowing. Median one-bedroom rent now sits at $1,352, and $1,663 for two-bedrooms.

National rent price growth - Zumper

Source: Zumper

National rent growth continues to accelerate at an alarming pace. While prices were generally static during 2020, they’ve risen dramatically in 2021. Relative to March 2020, the median one-bedroom rent nationally is up 10.7 percent, while two-bedrooms are up even more at 13.1 percent.

Here are the most expensive markets for one-bedroom rentals according to Zumper:

  1. New York, NY— $2,950 (YoY +13.5%)
  2. San Francisco, CA — $2,800(YoY -1.1%)
  3. Boston, MA — $2,410 (YoY +4.8%)
  4. Washington, DC — $2,210 (YoY +11.1%)
  5. San Jose, CA— $2,200 (YoY -1.3%
  6. Los Angeles, CA — $2,100 (YoY +4%)
  7. San Diego, CA — $2,100 (YoY +16.70%)
  8. Oakland, CA — $2,000 (YoY -6.10%)
  9. Miami, FL — $1,970(YoY +12.60%)
  10. Scottsdale, AZ — $1,850 (YoY +23.3%)

Jennifer A. Kingson of Axios reports on this topic, noting that rents increased 9.6% nationwide so far in 2021, rental activity is up 13% year-over-year in the first half of 2021, and every one of the top 100 rental markets have seen month-over-month rent growth over the last five months.

Most expensive cities by median monthly rent - Axios

Source: Axios

Housing materials

Lydia O’Neal of The Wall Street Journal reports that the shortage of building materials are forcing developers to look for alternative solutions. Housing starts have increased dramatically since their lows and 2020, and builders are willing to explore all options in order to fulfil demand on a timely basis.

Housing permits - WSJ

Source: WSJ

More than 90% of builders reported shortages of appliances, framing lumber and a type of engineered wood known as oriented strand board, according to a May survey by the National Association of Home Builders. Another 90% said they faced shortages of plywood, and 87% cited shortages of windows and doors. reports on the shortages, stating that year-over-year flat glass has increased 7.1%, concrete 6%, insulation 17.2%, plastic construction products 29.6%, aluminium mill products 35.1%, steel mill products 123.1%, and gypsum 22.9%.

Harry Wilmerding of The Free Press reported last week on this story, noting that global semiconductor shortages have made the matter worse, creating a shortage of home appliances and increasing prices.

CalculatedRISK reported last week that even after a massive drop in lumber prices, the cost of framing lumber per thousand board feet is still up 15% year-over-year.

In a new study from the University of Tokyo, researchers found that “A new kind of concrete could reduce emissions from the construction industry. Calcium carbonate concrete is made from waste concrete and carbon dioxide from the air or industrial exhaust gases. It shows promise as a future construction material, especially in places where natural resources are limited.”

Seller data and update

Zillow released new data last week on seller demographics, here are the highlights:

  • 35% of sellers cited working from home as the motivation to sell.
  • 70% of sellers sold a single-family detached house, 11% were townhomes, and 9% were condos.
  • The average seller is 45 years old.
  • 24% of sellers are aged 60 or older.
  • 40% of sellers cited low mortgage interest rates as an influence for selling.

Here is a breakdown of selling by U.S. region:

Share of sellers by region

Source: Zillow

Rising digital options like remote viewings, 3D tours, and instant offers appear to complement the services that real estate agents offer, not replace them. The share of sellers that use a real estate agent has remained unchanged over the last three years. When it comes to resources they use to sell their home, sellers are more likely to use a real estate agent (82%) than a website on a computer (66%), mobile website (55%), app (48%), friend/relative/neighbor/colleague (42%), print ad (26%) or direct mail (24%). 

A new ATTOM Data Solutions report shows the best time to buy and sell a home. The data indicates that homebuyers are achieving lower premiums in the month of October, as well as winter months, compared to the spring and summer seasons. “The study of more than 33 million single family home and condo sales over the past eight years found that while the premium is still above market value, homebuyers that close in October are only dealing with a 2.9% premium, compared to the month of May, when homebuyers are experiencing an 11.5% premium.”

Best time to buy a house - ATTOM

Source: ATTOM Data Solutions

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