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Real Estate Big Data

Is now the time for home-buying? Survey says…

(REAL ESTATE DATA) With new home ownership on the decline, there is still some hope worth examining.




Home-buying sound like a good idea?

We’ve written extensively about the difficulty of first time home-buying in 2017. It appears that these issues haven’t gotten better in the last three months, but there is hope on the horizon for homeowners.

According to the National Association of Realtor’s (NAR’s) Housing Opportunities and Market Experience survey, “71 percent of homeowners think now is a good time to sell a home,” up from 61 percent this time from last year and 69 percent last quarter.

Furthermore, the Midwest is leading the charge, with 76 percent feeling like now is a good time to sell their home.

Hopeful guessing

While the data is a good sign, it’s not perfectly reflective of intent.

In the press release for the survey, NAR Chief Economist, Dr. Lawrence Yun said, “there are just not enough homeowners deciding to sell because they’re either content where they are, holding off until they build more equity, or hesitant seeing as it will be difficult to find an affordable house to buy.”

The hope is that this uptick will lead to an increase in the number of houses on the market, which should offset supply issues in the current real estate market.

That’s also a welcome sign to potential buyers, who don’t have a lot of optimism about buying a home.

Renters on the fence

According to the same survey, only 52 percent of renters believe that now is a good time to buy a home. That number has gone down from last quarter (54 percent) and last year (62 percent).

In fact, that confidence number is the lowest it’s been since March 2015, when the survey began asking this question.

In short, potential customers are wary of the process.

There are a few reasons for this lack of confidence. For starters, a lack of inventory continues to impact affordability.

According to the press release, “under half of respondents (42 percent) believe homes are affordable for most buyers.”

Furthermore, one in five buyers would consider moving to a more affordable real estate market, and this is especially true for younger folks earning less than $50,000 annually.

Finally, this whole issue is exacerbated by rising rent prices, especially in East Coast and West Coast metro areas.

Financial insecurity kind of a deal breaker

There’s also a less-than-positive outlook among folks about their financial futures. Only 54 percent of those surveyed feel like the economy as a whole is improving.

That’s down from 62 percent last quarter, a rather drastic drop.

So, as you court potential buyers, especially younger, first-time buyers, they’ll need a lot of coaching and optimism to go through this process. Also, be looking out for an increase in inventory as the right time to court these types of buyers.


Born in Boston and raised in California, Connor arrived in Texas for college and was (lovingly) ensnared by southern hospitality and copious helpings of queso. As an SEO professional, he lives and breathes online marketing and its impact on businesses. His loves include disc-related sports, a pint of a top-notch craft beer, historical non-fiction novels, and Austin's live music scene.


Why it’s about to get more expensive to get a mortgage

(FINANCE) Borrowing money is getting more expensive, especially for those looking to get a mortgage. But why?



bonds and mortgages

Although there have been some blips, bonds have grown substantially in value since the 1980s. They’ve performed extremely well for a number of reasons, not least of which is the big slowdown in inflation over that time period.

The result, for investors, has been that anything “bond-lik,e” i.e. capable of paying a regular income – like a high-dividend stock or even a property like your home – has shot up in value. A reversal of bond prices would mean less support for such investments.

That’s what the economy is currently experiencing. According to Financial Times, American worker wage growth is hastening the sell-off of bonds by the US government, which is decreasing the overall price of bonds. As bond prices go down, the interest rates that they offer new investors go up. That rate jumped to 2.85 percent last Friday, the highest level since 2014.

Since the rates at which banks lend their money are largely based on the interest rates offered by bonds, regular folks looking to take out a mortgage or a loan are facing higher costs.

How does this work?

If we’re talkin’ bond prices, we’re talkin’ yield. When the price of a bond goes up, the yield of that bond goes down! Let’s say you’re getting paid $5 each year. If you pay $50 for that right, then you’re making a 10% “yield” (5/50 = 10%). But if you pay $100 for that right, then you’re making a 5% “yield” (5/100 = 5%).

It’s the same thing with the price of a bond because the amount a bond investor gets paid (usually) is fixed. And so, when the bond goes up in value, the “yield” goes down – and vice versa.

For realtors, its important to help clients shop for the best rates to improve their confidence in this market. Leveraging the right online and local financing resources can help potential buyers get the best deal. Explaining broader market context is also critical. Historically, a three percent interest rate is still very low.

According to Investopedia, mortgage rates averaged 7.81% in 1996 and 10.19% in 1986. Instilling confidence with information will put buyers and sellers in the right place to make moves.

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Real Estate Big Data

Murdoch wants FB to pay for content – should RE search sites pay for listing data?

(DATA NEWS) Rupert Murdoch argues that Facebook should pay to feature trusted news. Sounds like a familiar argument that real estate practitioners have made for over a decade.



rupert murdoch

There’s an old argument in the real estate industry that you’ve probably heard – listing data is aggregated by real estate search sites like Zillow, which makes big bucks on that free firehose of data, but doesn’t send a cut of said profits back to the content providers (and should).

This conversation is being revisited after Facebook’s announcement that they’re going to restructure how data flows. Just as publishers are asking why Facebook doesn’t pay for content, the real estate industry is again asking – why is the data real estate professionals produce aggregated for someone else’s financial benefit?

Media mogul and Executive Chairman of News Corp, Rupert Murdoch, issued a press release outlining his urgent belief that Facebook and other media giants should pay publishers for their content, rather than benefiting from the content, keeping the profit to themselves, and padding their stock prices. This comes at a rather interesting time, given many media giants are changing they way the game is played: YouTube is causing a bit of a stir with their top contributors, Facebook has vowed to get back to their roots, and it won’t be long before other social media and marketing sites follow suit.

Amidst these changes, though, where are the benefits for the content creators?

There are influencers on YouTube that promote new products; Facebook and Twitter users who supply endless amounts of content from which other companies/brands benefit, and to apply this to real estate, Zillow, Trulia, and others who aggregate brokers’ content into their platforms and benefit tremendously. It’s shrewd business.

This is especially frustrating when you consider, as Murdoch points out, “publishers are obviously enhancing the value and integrity [of the platform] through their news and content but are not being adequately rewarded for those services.” Realtors® create data for aggregators by listing properties in the MLS, then, they are charged to be showcased on the very platforms already utilizing and profiting from the information that has been provided for free.

While Realtors® may have been paid for their listing by their client, they have not been provided a percentage of any search site’s profits, which is the primary argument Murdoch makes to Facebook.

Murdoch proposes a fee structure to remedy this issue, much in the same way cable is structured, whereby publishers would be compensated for their contributions, but it isn’t clear how this would work long-term, although it is food for thought about who really owns data.

According to Murdoch, “The time has come to consider a different route. If Facebook [or any other media giant] wants to recognize ‘trusted’ publishers, then it should pay those publishers a carriage fee similar to the model adopted by cable companies. The publishers are obviously enhancing the value and integrity of Facebook through their news and content but are not being adequately rewarded for those services. Carriage payments would have a minor impact on Facebook’s profits but a major impact on the prospects for publishers and journalists.”

In other words, real estate search sites should be paying broker for using the data they provide, instead of charging for extra bells and whistles in the name of marketing. Even if the real estate search site is one of Murdoch’s own…

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Real Estate Big Data

Housing optimism cools – what will it take to heat back up?

(REAL ESTATE NEWS) Despite economic gains and a hot housing market, optimism is cooling. Why is this happening and what’s the cure?



fair home prices existing home sales housing

Housing is a complex creature – the market can be on fire, but optimism can wane nonetheless. The National Association of Realtors (NAR) is reporting that despite solid job creation, the strength of the economy, and increased economic growth, many households are less keen on believing now is a good time for buying or selling, and are overall less confident about the economy.

This comes as a result of the fourth quarter HOME (Housing Opportunities and Market Experience) survey, which samples US households by a random digit-dial and was conducted by TehcnoMetrica Market Intelligence that gathered 2,705 households. The HOME survey collects data on a monthly basis and is focused on identifying real estate trends.

Despite an improving economy, more hiring, and low mortgage rates, optimism in home sales was not as expected, according to Lawrence Yun, Chief Economist for the NAR.

In general, most prospective home buyers had to deal with a lack of inventory – less construction, fewer sellers, and a lack of affordability.

Reduced economic confidence in the face of the economy’s improvements persisted, with more households feeling less secure about their financial situation, and less people believing the economy is improving. Simply put – they aren’t feeling it.

Renters are less engaged to buy, as demonstrated by a two percent decrease in renters believing now is a good time to go get that home.

Overall – the people most excited to purchase homes are current homeowners, households with income above $100,000, and those living in the Midwest and South. If you live in the West, it is likely that you believe yourself to be in a good market for selling a home.

Overall, people more firmly believe it is a good time to sell their home over last year, which can spell some good news for potential buyers in 2018, as more people may be comfortable putting their homes on the market.

The key is that housing supply must increase. New builds and more sellers placing homes on the market will improve confidence about the housing supply and can work in tandem with a better job market and improved economy to make households feel more optimistic about their #future.

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