Discussing how fast homes are selling and why you need to use a local Realtor when buying or selling, housing costs continue to increase, the middle class is falling behind but not shrinking, several very positive economic reports…
How Fast Homes Are Selling
Amid strong demand compared to homes for sale, REALTORS® reported that properties were typically on the market for 27 days, a shorter time compared to one year ago (30 days) and about the same level during the prior month (26 days), according to the July 2018 REALTORS® Confidence Index Survey.
Before you freak out because your home has been on the market for longer, remember this is talking about the entire country. Let’s look at what happened in the Anderson SC area to see the difference.
For example, the homes reported sold during July 2018 in the WUAR MLS were on the market for an average of 105 days. But this is all types of homes in all price ranges in ALL of Anderson County.
If you narrow it down, homes that sold for between $100,000 and $150,000 were on the market for 95 days. Or if we only look at homes with 3 bedrooms and 2 baths, homes were on the market for an average of 83 days in Anderson County.
That is just the tip of the iceberg since there are many different types of homes in Anderson County…
You will always see differences from what is happening in your local market compared to national reports. This is one of the reasons why buyers and sellers need to rely upon the experience of a local Realtor:
As always, if you have any questions about real estate in the Anderson SC area, Contact Me!
Income Needed for Housing Continues to Increase
How much of your income is need to own or rent a home continues to increase according to Zillow:
The combination of rising home prices and interest rates creates a doubly challenging environment for would-be home buyers, making monthly mortgage payments on even modestly priced homes more of a financial burden.
A monthly mortgage payment for the typical U.S. home requires 17.5 percent of the median income, up from 15.4 percent a year earlier.
The typical rent now requires 28.4 percent of the median income, slightly lower than it did a year ago as rent growth has slowed below the pace of income growth. Although rent affordability remains worse today than it was in the 1980s and 1990s, it has gradually improved after peaking in late 2010.
Things are even worse for lower-income renters as they are paying almost 2/3 of their income for a modest apartment. According to Zillow:
In all of the 35 largest housing markets, the typical rent for a more affordable rental requires at least 40 percent of the median bottom-third income.
This makes it much harder for these renters to become home owners…
The Middle Class Is Falling Behind But Not Shrinking
From Pew Research:
About half (52%) of American adults lived in middle-class households in 2016. This is virtually unchanged from the 51% who were middle class in 2011. But while the size of the nation’s middle class remained relatively stable, financial gains for middle-income Americans during this period were modest compared with those of higher-income households, causing the income disparity between the groups to grow.
Income inequality is a hot button topic for many but according to Pew, middle-class Americans were better off in 2016 compared to 2010. The key for anyone isn’t how much you make BUT how much you spend AND what you are spending your money on IMHO.
Which is why I firmly believe in the wealth building effect of owning a home AND not spending money frivolously.
Service Sector Booming
According to the latest Non-Manufacturing ISM Report On Business, economic activity in the non-manufacturing sector grew in August for the 103rd consecutive month. Which is pretty freaking impressive!
Very Impressive Jobs Report
From the BLS:
Total nonfarm payroll employment increased by 201,000 in August, and the unemployment rate was unchanged at 3.9%. Over the year, average hourly earnings have increased by 77 cents, or 2.9%.
This is very good because wage growth hit it’s strongest Year-over-Year pace since 2009. We are still hearing many reports about employers having a tough time finding qualified workers.
Check out the chart showing the unemployment rate:
One of the numbers I like to watch is the U-6 and it improved from the previous month and compared to last August. The U-6 measures total unemployed PLUS people working part-time that want full time work and those that are not counted as unemployed because they have given up on finding a job.
Check out the chart:
The U-6 hit the lowest level since 2001! Overall, this is pretty good report and a very good sing for the economy!
Well that is all for today! Be sure to hit those share buttons and subscribe so you never miss another post!