SAN JOSE, Calif., Sept. 29, 2014 /PRNewswire/ -- Half of all
millennials viewed real estate websites last monthi, but
fewer homes on the market, increasing prices and tight lending
standards have made it difficult for them to become home owners.
The realtor.com® Top 10 Fall Markets for Millennial
Home Buyers list released today shows that despite trends shown
in the realtor.com® August National Housing Trend Report
of strong prices and limited inventory, some markets are primed and
ready for millennial home buyers this fall. Move, Inc. (NASDAQ:
MOVE) operates realtor.com®.
"Millennials are a critical component of the first-time home
buyer market segment, and getting this segment functioning again is
an absolute necessity for bringing the housing ecosystem back to
full health," said Jonathan Smoke,
chief economist for realtor.com®. "Decreased first-time
home buyer sales have lessened the demand for new construction, and
limited housing's contribution to overall economic growth –
perpetuating a cycle of limited job and income growth."
Realtor.com® national data shows the housing market
slowly improving with strong prices, limited inventory and steady
demand. In August, homes were listed at prices 7.50 percent higher
than last year, but remained consistent month-over-month. The total
number of homes on the market in August decreased slightly when
compared to last year and last month. Properties spent 86 days on
the market in August – six days less than last year, but four days
longer than July.
Top 10 Fall Markets for Millennial Home
Buyers
(Listed in alphabetical order)
MSA
|
Median Listing
Price
|
%
YY
|
Total
Listings
|
%
YY
|
%
MM
|
Median Age of
Inventory
|
%
YY
|
NARii Affordability
Index
|
Akron, OH
|
$119,900
|
0.00%
|
4,070
|
-6.18%
|
0.99%
|
76 days
|
-11.63%
|
340.53
|
Buffalo-Niagara
Falls, NY
|
$144,900
|
3.57%
|
3,892
|
-5.94%
|
4.06%
|
67 days
|
-6.94%
|
304.84
|
Charleston,
WV
|
$146,450
|
-1.71%
|
1,358
|
7.18%
|
3.35%
|
83 days
|
-8.79%
|
240.79
|
Grand
Rapids-Muskegon-Holland, MI
|
$159,900
|
6.67%
|
5,679
|
-9.60%
|
3.20%
|
61 days
|
-10.29%
|
240.48
|
Harrisburg-Lebanon-Carlisle, PA
|
$174,900
|
2.94%
|
5,186
|
0.89%
|
-1.52%
|
103 days
|
1.98%
|
265.94
|
Indianapolis,
IN
|
$149,000
|
8.36%
|
11,963
|
-2.46%
|
0.66%
|
72 days
|
0.00%
|
260.60
|
Melbourne-Titusville-Palm Bay, FL
|
$165,000
|
3.45%
|
5,389
|
39.76%
|
1.62%
|
68 days
|
-6.85%
|
259.32
|
Memphis,
TN-AR-MS(TN)
|
$154,900
|
0.00%
|
6,129
|
17.75%
|
-3.69%
|
86 days
|
10.26%
|
236.93
|
Peoria-Pekin,
IL
|
$129,900
|
0.31%
|
2,264
|
-3.70%
|
1.34%
|
76 days
|
4.11%
|
291.78
|
Syracuse,
NY
|
$149,000
|
-3.87%
|
4,622
|
2.89%
|
2.48%
|
87 days
|
-7.45%
|
301.55
|
National Key Market Indicators for
August 2014
|
August
2014
|
Year-over-Year
Percentage Change
|
Month-over-Month Percentage
Change
|
Median List
Price
|
$214,900
|
7.50%
|
0.00%
|
Number of
Listings
|
1,930,569
|
-1.13%
|
-2.47%
|
Median Age of
Inventory
|
86 days
|
-6.52%
|
4.88%
|
"Millennials were hit the hardest by recession layoffs and job
shortages, and many are still facing the financial aftermath of the
downturn including reduced wages and depleted savings," Smoke said.
"Monthly mortgage affordability and 20 percent down payments have
become especially difficult as home prices increase. The
neighborhoods on our list offer plenty of opportunity for
millennials looking to get into the market in the next few months.
Not only are first timers more likely to be able to afford homes in
these areas, less competition in these markets means they are more
likely to have their offers accepted."
All the markets included on the realtor.com® Top
10 Fall Markets for Millennial Home Buyers list have
demonstrated strength in two key areas: housing affordability and
increases in inventory. To be included on the listiii,
local areas had to report a Housing Affordability Index over 240
and a month-over-month or year-over-year increase in inventory. The
National Association of REALTORS® Housing Affordability
Indexiv evaluates home prices based on the median
household income for each respective area. Leading the
realtor.com® Top 10 Fall Markets for Millennial Home
Buyers list in affordability is Akron, OH. Families making the median
household income in Akron can
afford to buy a home that is 3.4 times the price of the median home
in their area. The second most affordable locale is Buffalo-Niagara
Falls, NY, where people can afford homes 3.0 times the
median. In third place is Charleston,
WV, where residents earning the median wage in their area
can afford a home that is 2.40 times the median.
Each area also had to experience an increase in the number of
homes on the market. The market with largest increase in inventory
included on the realtor.com® list was Melbourne, FL, with a 39 percent increase in
inventory compared to last year. The second largest lift in
inventory was demonstrated by Memphis,
TN, with an increase of 17 percent year-over-year and was
followed by Charleston, WV, which
increased 7 percent in listings compared to last year.
"Another advantage for millennials trying to close on a home
this fall is investors are becoming less of a presence in the
current housing market," said Lawrence
Yun, chief economist and senior vice president of research
for the National Association of REALTORS®. "In August,
sales to investors fell to 12 percent, which is the lowest we've
seen in nearly five years. For first-time home buyers this means
reduced competition and less all-cash offers in the
marketplace."
For the complete realtor.com® August National Housing
Trend Report, please visit:
http://www.realtor.com/data-portal/realestatestatistics
How Data Is Collected
Realtor.com® regularly tracks real estate data and
develops monthly reports featuring the number of listings, median
age of inventory, and median list price across the U.S. and in
specific markets, as well as provides year-over-year and
month-over-month changes. These reports are the only ones pulled
directly from the realtor.com® database, where 90
percent of listings are updated every 15 minutes from more than 800
multiple listing services (MLS). We regularly review and update
historical data to provide the most accurate and comprehensive
market information. As a result, some markets may be subject to
periodic adjustments in data.
For more information about Move, visit www.move.com or one of
its many online real estate properties including
realtor.com®.
Supporting Resources
- Read more about realtor.com®
- Follow @realtordotcom on Twitter
- Like realtor.com® on Facebook
- Download realtor.com® mobile apps
*"Most accurate" claim(s) pertain to the accuracy of home
listings, are based on comparison with other national listing
portals, and are based on the greater frequency of listings
updating on realtor.com®.
About Move, Inc. and realtor.com®
Move,
Inc. (NASDAQ: MOVE), a leading provider of online real estate
services, operates realtor.com®, which connects people
to the essential, accurate information needed to identify their
perfect home and to the REALTORS® whose expertise guides
consumers through buying and selling. As the official website for
the National Association of REALTORS®,
realtor.com® empowers consumers to make smart home
buying, selling and renting decisions by leveraging its direct,
real-time connections with more than 800 multiple listing services
(MLS) via all types of computers, tablets and smart telephones.
Realtor.com® is where home happens. Move's network of
websites provides consumers a wealth of innovative tools and
accurate information including Doorsteps®,
HomeInsightSM, SocialBiosSM, Moving.com™,
SeniorHousingNetSM, homefairSM and
Relocation.com. Move supports real estate agents and brokerages by
providing many services to grow their businesses, including
ListHub™, the nation's leading listing syndicator and centralized
intelligence platform for the real estate industry;
TigerLead®; Top Producer® Systems; and
FiveStreetSM; as well as many free services. Move is
based in the heart of the Silicon Valley — San Jose, CA.
REALTOR® and REALTOR.COM® are trademarks
of the National Association of REALTORS® and are used
with its permission. Move, Move.com, Moving.com, Top
Producer®, TigerLead®, ListHub™,
Doorsteps® and SeniorHousingNet™ are trademarks of Move,
Inc. These and all other trademarks used in this work are the
property of their respective owners.
Media Contact: Lexie
Puckett, +1 805-557-3151, Lexie.Puckett@move.com
Forward-Looking Statements
This news release may
contain forward-looking statements, including information about
management's view of Move's future expectations, plans and
prospects, within the safe harbor provisions under The Private
Securities Litigation Reform Act of 1995. These statements involve
known and unknown risks, uncertainties and other factors, which may
cause the results of Move, its subsidiaries, divisions and concepts
to be materially different from those expressed or implied in such
statements. These risk factors and others are included from time to
time in documents Move files with the Securities and Exchange
Commission, including but not limited to, its Form 10-Ks, Form
10-Qs and Form 8-Ks. Other unknown or unpredictable factors also
could have material adverse effects on Move's future results. The
forward-looking statements included in this press release are made
only as of the date hereof. Move cannot guarantee future results,
levels of activity, performance or achievements. Accordingly, you
should not place undue reliance on these forward-looking
statements. Finally, Move expressly disclaims any intent or
obligation to update any forward-looking statements to reflect
subsequent events or circumstances.
i According to comScore June-August 2014 data
ii Data pulled from the National Association of REALTORS
and Moody's Analytics
http://www.realtor.org/topics/housing-affordability-index
iii Data pulled from the National Association of
REALTORS and Moody's Analytics
iv National Association of REALTORS® Housing
Affordability Index June 2014
http://www.realtor.org/topics/housing-affordability-index
SOURCE realtor.com