Lending Giant to Offer In-House Appraisal Option

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September 10, 2021

United Wholesale Mortgage has announced that it will offer an option to work directly with appraisers, a change from the typical use of an independent appraisal management company.

UWM is rolling out the program, called Appraisal Direct, nationwide on Oct. 1. Appraisal Direct will oversee the entire appraisal process, from scheduling the appraisal to its execution and delivery.

Lenders can choose whether they use Appraisal Direct or order an appraisal through an appraisal management company.

AMCs “have a lot of value in our industry, but we are offering new options,” said Mat Ishbia, CEO and president of UWM.

UWM will hire more than 100 people to work on the new program. Appraisers will be selected for an appraisal based on a scorecard that reflects their knowledge of a geographic area and past performance, Housingwire reported.

The appraisal industry has grappled with concerns over appraiser shortages in many areas of the country. With a booming housing market, some lenders have complained of delays in getting appraisals returned promptly.

However, Kimber White, president of the National Association of Mortgage Brokers, said she doesn’t think UWM’s program is the solution to the appraisal shortage. “I think it’s okay for them right away, but I think it’s better for us all to work together to find a solution for the entire industry,” White said. “Is this really the way we want to go and allow all wholesalers to enter the appraisal business?” White said many lenders have increased their use of AMCs as an intermediary between appraisers and mortgage brokers to avoid past evaluation issues that were blamed for triggering the housing crisis.Source: “United Wholesale Mortgage to Offer In-House Appraisal Option,” National Mortgage News (Sept. 9, 2021); “United Wholesale Mortgage to Offer In-House Appraisal Option,” Anandmarket.in (Sept. 10, 2021); and “UWM Launches AMC-Free Appraisal Program,” Housingwire (Sept. 9, 2021)

Aspiring first-time home buyers may not want to give up on that competitive house hunt: In many markets, they could save money by owning.
Buying a starter home is more affordable than renting in nearly half of the largest U.S. metros, according to a new study released by realtor.com®.
The U.S. median rental price has climbed nearly 10% year over year to $1,607. That is 15.5% higher than the monthly payments for a starter home, the lower-priced tier of homes for sale in a market. Low mortgage rates are helping to offset recent jumps in home prices.
Continue… https://magazine.realtor/daily-news/2021/08/27/starter-homes-still-cheaper-than-renting-in-many-areas

Will bidding wars continue? Will home prices stay elevated? Will home buyer demand remain strong? Heading into the fall season, economists are optimistic about the market’s direction considering its unpredictability since the beginning of the pandemic.
For the most part, they agree it won’t be a return to the usual slowing pace of sales in the fall—nor will prices slide to the extent typical of the season as families settle into a new school year.
The fast-spreading delta variant of COVID-19, however, remains a wild card for the housing market.
But at the moment, “I expect an unusually busy fall season,” said George Ratiu, realtor.com®’s chief economist. “Sellers are putting homes on the market. Normally, this activity happens early in the spring.”
Continue…https://magazine.realtor/daily-news/2021/08/25/economists-sales-momentum-will-carry-into-fall

The 30-year fixed-rate mortgage held near last week’s average and continues to average near historical lows and under 3%.
“Mortgage rates stayed relatively flat this week,” says Sam Khater, Freddie Mac’s chief economist. “Housing is in a similar phase of the economic cycle as many other consumer goods. While there is strong latent demand, low supply has caused prices to rise as shortages restrict the amount of sales activity that otherwise would occur.”
Continue… https://magazine.realtor/daily-news/2021/08/20/mortgage-rates-barely-budge-remain-below-3

Press print for a home. More consumers are warming up to that idea. Sixty-six percent of more than 3,000 consumers—and 75% of millennials, in particular—say they’d consider living in a 3D printed home, according to a new survey released by realtor.com®.
3D printed homes have been touted for offering greater affordability, energy efficiency, and better resistance to natural disasters over the past year. They also make it much faster to build a new home.
Continue…https://magazine.realtor/daily-news/2021/08/20/3d-printed-homes-are-gaining-consumer-interest

5 Emerging Home Design Trends to Watch

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August 18, 2021

With more time spent on activities in the home, flexible design is becoming increasingly important to homeowners. Also, they want to bring more outdoor elements inside. These are among the latest home trends, according to Houzz, a home design and remodeling resource. Houzz researchers identified the top emerging home design trends based on search insights from homeowners and home professionals at its site.

Here’s an overview of the five emerging trends Houzz identified in its report, 2021 Houzz Emerging Home Design Trends:

Dedicated activity spaces

Homes are being used for a greater number of activities as well as for entertainment. As such, Houzz identified growing interest for art studios, an increase of nearly 10 times over the past year, as well as home bars and wine cellars, home theaters, gyms, and offices.

The outdoors head indoors

More homeowners are seeking to tie their indoor spaces to the outside with more greenery and nature. Site searches for artificial plants and trees as well as indoor pots and planters are up significantly over the past year, according to Houzz. Also, the color green is offering that nod to nature, with a significant uptick in searches for green kitchen cabinets, bathroom tile, accent chairs, and bedrooms. One in five homeowners recently surveyed are opening up their kitchen spaces more to the outdoors, such as with slide-away panels.

Living room updates

As more people sheltered in, they gave their living rooms a refresh. Searches for living rooms are up 52% compared to a year ago. Accent pillows and home accents have seen the biggest increase, along with abstract paintings, display shelves, and slip or chair covers.

Flexible design

Homeowners are seeking flexibility in how they use their space. As such, TV armoires with pocket doors, queen-sized Murphy beds, and nesting side tables, which all can increase the uses for a room, have jumped in popularity. Swivel accent chairs and daybed sets are also being used to create flexible rooms. (Read more: Designing the Perfect Pop-Up Office)

Home staging and design tips: Styled, Staged & Sold blog

Luxury fabrics, materials, and colors
The Houzz survey identified that fabrics, materials, and colors are going “glam” with more searches for velvet, gold, and crystal.

Swimming pools in all shapes and sizes

Interest in swimming pools has surged during the pandemic. Searches for swimming pools and pool houses more than doubled in the second quarter of 2021 compared to a year earlier, according to Houzz. Homeowners are showing an interest in a variety of pool styles, shapes, and designs. For example, searches for pools with water features are up the most, as well as rectangle, lap, infinity, plunge, and geometric pools.Source: “2021 Houzz Emerging Home Design Trends Report,” Houzz (Aug. 18, 2021)

Sellers Rethink Their Asks as Listings Begin to Linger

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August 16, 2021

Even in this ultra-hot competitive market, there’s a limit to what home buyers are willing to pay. Some home sellers are starting to see their listings linger on the market, and those sellers may face the prospect of a price cut.

Realtor.com®’s July housing data showed that about 45 cities of the country’s 300 largest had an increasing number of homes with price cuts. “For buyers, these trends hold the promise of a less frenzied market, with more choice and better prices,” says George Ratiu, realtor.com®’s senior economist.

Still, home prices are still rising by double-digit margins in many cities—even those posting more price cuts. Price cuts occur in even the healthiest of housing markets, realtor.com® notes.

“Price cuts could signal a turning point in the market, but they may also just be a sign of sellers getting ahead of buyers in pricing,” Danielle Hale, realtor.com®’s chief economist, said. “There seems to be some markets where it’s a local custom to price real estate that way.”

Realtor.com®’s researchers reviewed monthly listing data to identify the markets with the highest percentage of markets with price reductions. For geographic diversity, they limited their list to one city per state. The following cities topped their list with the highest share of price cuts:

1. Des Moines, Iowa

• Median list price in July: $193,050
• Percentage of home listings with price cuts: 32%

2. Midland, Texas

• Median list price in July: $330,050
• Percentage of home listings with price cuts: 28%

3. Toledo, Ohio

• Median list price in July: $117,050
• Percentage of home listings with price cuts: 26%

4. Metairie, La.

• Median list price in July: $359,050
• Percentage of home listings with price cuts: 24%

5. Philadelphia

• Median list price in July: $289,050
• Percentage of home listings with price cuts: 22%

6. Portland, Ore.

• Median list price in July: $550,050
• Percentage of home listings with price cuts: 20%

7. Anchorage, Alaska

• Median list price in July: $315,050
• Percentage of home listings with price cuts: 19%

View the full list at realtor.com®.Source: “Boon for Buyers: 10 Cities Where Sellers Are Slashing Home Prices,” realtor.com® (Aug. 16, 2021)Comment

Most kids are heading back to school in person this year, but many parents are still coveting the virtual classroom spaces they created at the start of the pandemic. Many real estate pros believe they’re still a selling point, too.
Real estate pros continue to market and stage such spaces to attract potential home buyers.
“The family’s priorities have changed. People want these learning centers,” Fredrik Eklund, a real estate professional with Douglas Elliman in New York, told The Wall Street Journal.
Continue…https://magazine.realtor/daily-news/2021/08/09/at-home-learning-spaces-remain-selling-point-pros-say

Home renovations have been surging during the pandemic, and homeowners aren’t shying away from major redos either. More than half—55%—of more than 2,000 U.S. homeowners recently surveyed reported making substantial improvements to their homes that they believe will boost their home’s value, according to a July survey commissioned by Selective Insurance and conducted by The Harris Poll. That marks a 25% increase in large-scale home improvement projects reported by homeowners compared to its December 2020 survey results.
The South leads the nation in home improvement projects, the survey found.
Respondents reported the following three “major” home improvement projects since the beginning of the pandemic:
Continue… https://magazine.realtor/daily-news/2021/08/06/popular-renovations-focus-on-adding-entertainment-space

MLS Finds That Listed Homes Sell for 17% More

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August 3, 2021

In a two-year analysis, homes on a mid-Atlantic MLS sold for more money than similar homes that sold off of it. Bright MLS, a multiple listing service that supports more than 95,000 real estate professionals from Pennsylvania to Virginia, conducted the study of 442,829 records for home sales transactions completed between January 2019 and December 2020.

The median sold on the MLS was about 17% higher than homes sold off of the MLS, the study found.

“We have always known the power of the MLS network, and past studies have shown that homes shared cooperatively on the MLS sold for more,” said Brian Donnelley, Bright MLS president and CEO. “We’re proud to be able to confirm with our extensive data that promoting homes through our MLS delivers significant value over other methods.”

The study also analyzed properties that were labeled as “office exclusive” listings and marketed solely within one brokerage. The majority of those listings were ultimately marketed through the MLS before they were sold. Homes that Bright MLS promoted from the beginning were under contract faster than properties that started as office exclusives. Also, comparable homes that were marketed through the MLS sold for more than those marketed otherwise through exclusive arrangements, the study found.

“There is a perception that selling outside the multiple listing service, either with an agent or as a For Sale By Owner, can save time and money for the consumer,” said Elliot Eisenberg, a real estate economist and a former senior economist for the National Association of Home Builders and also an author on the study. But Eisenberg said the study shows otherwise and that the fastest sales for the most money use the MLS to market the homes for sale.Source: Bright MLS

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