This Week in Real Estate: June 18, 2018

According to¬†the Financial Accounts of the United States, published by the Board of Governors of the Federal Reserve System, the value of owners’ equity in real estate reached $15 trillion in the first quarter of 2018.¬†Below are a few¬†highlights from the second¬†week of June that influence our business:
*¬†Homeowners’ Equity Reaches a New High.¬†Over the first quarter of 2018, the value of owners‚Äô equity in real estate expended and hit a new high on a nominal and not seasonally adjusted basis, according to the Financial Accounts of the United States for the first quarter of 2018. This data is published by the Board of Governors of the Federal Reserve System.¬†On a nominal and not seasonally adjusted basis, households‚Äô owner-occupied real estate increased to $25.1 trillion totally in the first quarter of 2018, $544 billion more than the fourth quarter of 2017 and $1,674 billion more than the first quarter of 2017. The value of owners‚Äô equity in real estate, the difference between the value of owner-occupied real estate and home mortgage debt, rose by $1.4 trillion over the past four quarters and reached $15.0 trillion in the first quarter of 2018.

*¬†These Are The 5 Issues Impacting Real Estate Right Now.¬†The Counselors of Real Estate, an advisory organization that monitors real estate, released its latest report detailing the top 10 issues affecting the real estate industry. This year, the organization divided its annual list to focus on five issues currently impacting the industry and five issues to watch for potential¬†long-term impact over the next three to seven years.¬†Leading the list of current issues to watch is interest rates and the economy. While interest rates continue to climb, both the commercial and residential real estate markets are feeling changes.¬†Leading the list of long-term issues impacting real estate is infrastructure ‚Ästand what the organization says is a lack of effort by the U.S. to address deterioration. The five issues impacting real estate right now are: rising rates and the economy, politics and political uncertainty, housing affordability, generational change and demographics and e-commerce and logistics. The five issues to look out for in the future are: infrastructure, disruptive technology, natural disasters and climate change, immigration and energy and water.

* The Number of Days Homes Spend on the Market Hits Post-Recession Low. In yet another sign of the ultra-competitive housing market buyers now face, the time homes spend on the market has never been shorter since the recession began. List to sale time has dropped by more than 50% since 2010. The median list-to-sale time, which is the period of time between when a listing is officially posted and when the home is officially sold, was just 64 days, down from 77 a year ago, according to real-estate website Trulia. This figure has consistently dropped every year since 2010. The figure set this month now represents an all-time low, according to Trulia’s calculations. The fastest moving markets are all located in the West: The median period for Seattle, San Francisco and San Jose, Calif., is just 36 days.

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