TheMReport

MReport February 2018

TheMReport — News and strategies for the evolving mortgage marketplace.

Issue link: http://digital.themreport.com/i/933792

Contents of this Issue

Navigation

Page 49 of 67

48 | TH E M R EP O RT O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST DATA Going, Going, Gone— Home Sales to Increase in 2018 2018 will continue to be a seller's market in more than 70 percent of suburban markets across the U.S. W ill the housing market smile on homebuyers or sellers in 2018? Ac - cording to a report released by real estate portal We Buy Houses.com, 2018 will continue to be a seller's market in more than 70 percent of suburban markets across the U.S. The report, which was released last month, indicated that nation - ally, home prices are expected to rise again in more than 60 percent of U.S. markets, and are expected to stay the same in about 34 percent. Home prices are expected to rise 4 percent to 8 percent in major suburban markets with a median increase of 5.5 percent, even as home prices are predicted to rise from a median of $248,000 in December 2017 to $262,000 by the end of this year. In terms of inventory, the report expects lower inventory in over 31 percent of local markets, with in - ventory increasing in only about 22 percent of the housing market this year. While the cost of labor is ex- pected to rise in around 48 percent of the markets, the availability of contractors is expected to remain tight. Cost of materials, however, will remain the same in about 51.2 percent of the markets. The report expects the south - ern U.S. to emerge as the hottest region with local market experts expecting home prices to rise along with the cost of labor and materials, in part due to the re - sidual effects of Hurricane Harvey in 2017. Inventory is expected to remain about the same as 2017, a year in which housing inventory in the South was very tight. On the other hand, the western U.S. continues to remain the most competitive region with prices in prime suburban markets of San Diego, California, and Colorado Springs, Colorado, expected to continue their rising streak as inventories remain constrained in these areas. Households Doubling Up to Save Costs More millennials are finding they need a roommate to afford the cost of renting. T here's two ways of coun- tering the increasing cost of rent, especially in big metroplexes: Relocate or find someone to share the increas - ing rent that consumes a growing share of household incomes in many big cities. According to a report by Zillow, most adults in the working age population seem to prefer the second option, with 30 percent of adults aged 23 to 65 living in doubled-up households, up from a low of 21 percent in 2005 and 23 percent in 1990. The report defines doubled-up households as ones in which at least two working-age, unmar - ried, or unpartnered adults live together and includes adults living with their parents or with a roommate. The Zillow report suggests that while some people might choose to live with others for companionship or convenience, the trend towards doubling up is often driven by financial con - cerns, especially in metro areas where rent drains a larger share of household income. Some of the most extreme examples of adults choosing to live with family members or roommates were found in Los Angeles where 46 percent working-age adults doubled up, followed by Miami at 41 percent, and San Francisco with 38 percent adults living with family or roommates. According to the report, the median individual income of an employed adult in a doubled-up household is $30,000 compared to $45,000 earned by a non-doubled- up adult, suggesting that in many places, employed people who cur - rently live in doubled-up house- holds would not be able to afford rent if they lived by themselves. The report says that one of the age groups that has seen the high - est rise of doubled-up households is adults between 23-29 years of age, where living in doubled-up households has increased from 39 percent to 54 percent in 11 years, indicating that despite high educa - tion levels, many 20-somethings work in relatively low-wage jobs where they might be unable to af- ford escalating rents on their own. The report expects the southern U.S. to emerge as the hottest region with local market experts expecting home prices to rise along with the cost of labor and materials, in part due to the residual effects of Hurricane Harvey in 2017.

Articles in this issue

Links on this page

Archives of this issue

view archives of TheMReport - MReport February 2018