Interesting article by Cliff Kuang in FastCompany.com, dated October 25, 2011, about Men and Women in Real Estate Sales. His article uses data from Trulia.com. To summarize: Men put up more homes to sell, and women list more expensive homes.
Men list more homes:
Women list expensive homes:
I previously summarized the Center for Housing Policy’s Paycheck to Paycheck report which reviewed housing affordability across 200 markets, with 1 being the most expensive and 200 being the least expensive. My original post can be found here.
The Center for Housing Policy collected data points from the National Homebuilders Association, US Department of Housing and Urban Development, and Salary.com
Below summarizes Boise, Idaho specific data:
Here are a couple of additional graphics that I was able to extract from the website.
This Chart compares the income of seasonal retail jobs to the annual income needed to purchase a median priced home:
This Chart compares the income of five pre-selected occupations (out of a list of 74) to the annual income needed to purchase a median priced home:
One other tool that I haven’t shown allows you to select an occupation, and compare the median salary across three markets. The report provides median home price, income needed to purchase a home, and the median salary for the occupation across all three markets. The site can be found here.
The Center for Housing Policy just released their 2011 Paycheck to Paycheck Report. In the report, they detail:
They also provide some templates on how certain occupations match up with the needed income to achieve the median home price in each MSA. The data points were collected from the National Homebuilders Association, US Department of Housing and Urban Development, and Salary.com
The Most to Least Expensive Homeownership Markets can be found here.
The Top 10 Most Expensive Homeownership Markets with Q3 2011 Prices are:
1. San Francisco, CA: $585,000
2. New York, NY: $450,000
3. San Jose, CA: $443,000
4. Honolulu, HI: $425,000
5. Santa Ana, CA: $405,000
6. Santa Cruz, CA: $395,000
7. Bridgeport, CT: $390,000
8. Suffolk-Nassau, NY: $378,000
9. Cambridge, MA: $370,000
10. Ocean City, NJ: $353,000
The Least 10 Expensive Homeownership Markets with Q3 2011 Prices are:
200. Battle Creek, MI: $85,000
200. Flint, MI: $85,000
202. Wheeling, WV: $84,000
203. Lima, OH: $83,000
203. Saginaw, MI: $83,000
203. Springfield, OH: $83,000
206. Bay City, MI: $82,000
207. Ocala, FL: $80,000
207. Toledo, OH: $80,000
209. Youngstown, OH: $77,000
The Center for Housing Policy also reviewed data for rental affordability. They compared 2 Bedroom rentals across all markets. The Most to Least Expensive Rental Markets can be found here.
Obviously, their are some market overlaps when you compare affordability of rentals to affordability of homeownership.
Here are the Top 10 Most Expensive Rental markets (Cities in BOLD are also in the Top 10 Most Expensive Homeownership Markets):
1. San Francisco, CA: $1,833
2. Santa Cruz, CA: $1,730
3. Honolulu, HI: $1,702
3. San Jose, CA: $1,702
5. Suffolk-Nassau, NY: $1,661
6. Santa Ana, CA: $1,584
7. Oxnard, CA: $1,527
8. Los Angeles, CA: $1,465
9. Bethesda, MD: $1,461
9. Washington, DC: $1,461
Where does your dollar go farthest when buying a home? CNBC compiled a slide show based on data Zillow.com
The data is summarized below:
1. Ocala, FL. Value per sq. ft.: $50. Average home size: 1,615 sq. ft. Zillow Home Value Index: $85,200
2. Lakeland, FL. Value per sq. ft.: $52. Average home size: 1,666 sq. ft. Zillow Home Value Index: $89,100
3. Spartanburg, SC. Value per sq. ft.: $56. Average home size: 1,678 sq. ft. Zillow Home Value Index: $98,800
4. Mobile, AL. Value per sq. ft.: $57. Average home size: 1,803 sq. ft. Zillow Home Value Index: $78,200
5. Detroit, MI. Value per sq. ft.: $59. Average home size: 1,604 sq. ft. Zillow Home Value Index: $72,900
6. (Tied) Atlanta, GA. Value per sq. ft.: $60. Average home size: 2,128 sq. ft. Zillow Home Value Index: $109,700
6. (Tied) Memphis, TN. Value per sq. ft.: $60. Average home size: 1,882 sq. ft. Zillow Home Value Index: $95,400
8. (Tied) Canton, OH. Value per sq. ft.: $61. Average home size: 1,634 sq. ft. Zillow Home Value Index: $88,900
8. (Tied) Augusta, GA. Value per sq. ft.: $61. Average home size: 1756 sq. ft. Zillow Home Value Index: $84,600
10. Toledo, OH. Value per sq. ft.: $62. Average home size: 1,652 sq. ft. Zillow Home Value Index: $86,700
I’m sure you’ve since this, but I thought it was an interesting idea … Made In America.
ABC did a story about a homebuilder in Bozeman, Montana. He only used US made materials as a demonstration to create more jobs. According to ABC’s article, if every builder only used 5% more US made materials, there would be an increase of 220,000 jobs.
Great idea to grow jobs.
This week, I saw several articles that identified some current trends in Real Estate.
Article No. 1: In an article by Wendell Cox, NewGeography.com, Domestic Migration: Returning to Normalcy?, he reviewed the American Community Survey data, and Census Data. In summary, in 2010:
Stock up: Texas, Florida, North Carolina and Arizona
Stock Down: California, New York and Illinois
The best quote of the article: “It is premature to suggest any long-term judgments on these early data. However, it would not be surprising to see the states with the highest costs of living (driven by high housing costs) and the least friendly business climates to lose domestic migrants to states with lower costs of living and more friendly business environments.”
Article No. 2: In an article in 247WallStreet.com, they author’s highlight 10 markets with new, significant foreclosures. Skyrocketing Foreclosures (Rank, City, Q3 11 increase in Foreclosures).
Article No. 3: Home prices Weigh down 75% of housing markets. In an Alan Zibel article in WSJ.com, he extrapolated 3Q 2011 data showing that housing prices had fallen in 111 of 150 Metro Areas; a less flattering way to put it: Values down in 75% of the markets. Not a very good data point.
Stock Up: Grand Rapids, Mich. (23.7%), South Bend, Ind. (19.8%), Palm Bay-Melbourne, Fla. (17.7%) and Youngstown, Ohio. (13.1%).
Stock Down: Mobile, Ala. (-17.7%), Phoenix, Ariz. (-17.6%), Allentown, Pa. (-17.5%) and Salt Lake City (-15.3%)
One final commentary … In Q3 2011 Melbourne, Florida, saw a 44% increase in Foreclosures, and a 17.7% increase in housing values. This seems like a very unlikely scenario. At the very least, I would opine that if future foreclosures continue to rise or remain similar to Q3 2011, Melbourne will see a dip in future home values.
Just think of this article as a comparison on the Good and the Bad. In two articles in 24/7 Wall Street, writers Charles Stockdale and Michael Sauter respectively look at the housing markets poised to recover and those that will continue to struggle.
Both articles based their research from Fiserv data. Please note that these are their projections of what will happen over the next 18 months.
Here’s a comparison map of both Recovery and Struggle:
Road to Recovery – Charles Stockdale. These are ranked by the expected percentage change in housing prices from 2011 Q2 to 2012 Q2
Struggles Persist – Michael Sauter
Florida continues to look bleak, and California is a mixed bag.
Having lived in Florida, and been part of the process to create a CDD (Community Development District), this article from bondbuyer.com on Sept. 1, 2011, regarding a bankruptcy proceeding in Florida is quite interesting.
Ruling May Hurt CDD Investors in Florida
The skinny:
Also, here is a cool graphic of CDD debt issued in Florida compared to the rest of the United States. Chilling statistic: $5.1B or 70% of CDD Debt in Florida is in Default.
Boom to Bust
This is worth following to see how it will play out in Florida.
In his article Why Property Managers Have Panic in their Eyes, Gene Marks of forbes.com does a very good job of identifying how technological advances have reduced the reliance on physical office space. This will continue to put pressure on the office vacancies.
In addition, unemployment continues to hover around 9.2%. New hires won’t be happening anytime soon.
However, another major impediment to filling vacant office, industrial and commercial space will be the Federal Government. (I am not making a political statement. I’ll save that for a different forum). I will however, note that the White House has a goal to shed $3.5 Billion in real estate by the end of 2012 (see the White House’s Blog For Sale: Cutting Waste by Getting Rid of Excess Real Estate).
Of the 14,000 buildings and structures, we don’t know:
Here’s another link to the White House’s Map:
What impact will this have on commercial vacancies?
Just a few things to consider when the Federal Government talks about saving $3.5 Billion in Real Estate disposal.
I recently read this article Top 10 College Towns … for Buying Foreclosures, by Joel Cone, Foreclosure News Report. Based on their data, they found that the following College Towns were also good places to buy foreclosures. The list is as follows:
The article went on to say that foreclosures in these towns offered a 44% discount, and provided buyers with an endless pool of renters.
