Hundreds of families lost their homes in the tornado that tore through Selma last year. If housing was an issue before, it became an urgent need following Jan. 12, 2023.
As a result, leaders in Selma are now rethinking how they can build smooth paths to homeownership for their neighbors. This comes in the way of restoring over 100 homes to a healthy, livable condition through the housing authority, educating residents on how to get a mortgages and even giving away the occasional home for free.
The last came to fruition on April 21.
Members of several organizations gathered in front of a house off of Broad Street that day to announce that one Selma family would receive the new-build home free of charge. With 3-bedrooms, 2-bathrooms, a front porch and wind-resistant architecture, the home was valued around $169,500.
“The City of Selma is grateful to partner with NACA, the Selma Housing Authority and the Black Belt Community Foundation to provide this extraordinary opportunity,” Selma Mayor James Perkins said in a statement. “We cannot wait to share our excitement with the winner.”
Meet the winning family
Drawn in a random lottery that Sunday, the winner is Tamicka Newberry, a 44-year-old Selma native and mother of three. The 2023 tornado displaced Newberry, her husband and her kids, and since then, they have been living in a North Selma apartment complex.
“We lost everything and then had to adjust,” Newberry said. “We just truly thank God because God made all this possible for us. We’re just truly blessed.”
In the last few weeks, the good news came in threes: Newberry got a new job, her daughter got married and they won the new home.
“It’s a brand new start,” she said.
Since the BBCF and the Selma Housing Authority are fully furnishing the place for Newberry, it’s not quite move-in ready yet, but the family is planning to move as soon as they can. Newberry is also taking a financial management class so that she can maximize the benefits of her new, free house.
“Unfortunately, systemic racism has left us with a biased way of attaining wealth in our communities, and so by having Ms. Newberry to own a home, right off the block, she has equity,” BBCF President Felecia Lucky said. “That’s how you begin to build wealth and communities, so that’s the goal.”
Other houses coming soon
Newberry’s home is one of 100 new, affordable homes that NACA is constructing in Selma. Four other homes are completed too, though their new owners will take on affordable mortgages through a partnership with NACA and Bank of America.
The rest of the houses will be doled out to Selma locals through a NACA housing lottery where selected buyers will pay an adjusted mortgage that is approximately 30% of their gross income with no down payments, closing costs or additional fees.
Selma Housing Authority CEO Kennard Randolph said his organization has provided 27 plots of land to NACA for the project, and it has purchased about 73 more to rehabilitate alone.
“This is unprecedented for housing authorities. Housing authorities typically don’t do community revitalization,” Randolph said. “We are becoming private landlords. We were already in the multifamily, but now, we are buying houses throughout the community, and the Black Belt Community Foundation is helping with those initiatives.”
Randolph also sits on the board for the BBCF, so when the foundation decided to get support post-tornado housing initiatives, he was the resident expert. After some discussions, the board committed about $700,000 to support the affordable housing efforts in Selma.
“We know that housing has forever been an issue here in the Black Belt region,” Lucky. “if you want to do good and leave a legacy for the work that you’re doing, this is a place to do it.”
Lucky asked that anyone who wants to help continue BBCF initiatives donate to the foundation online.
How to apply for a NACA home
While the first NACA home in Selma has already been given away, about 99 more will be coming available for purchase through the housing lottery.
In order to be eligible to purchase a home through NACA, potential buyers must first attend a workshop on homeownership. They are offered both in person and online. To find the most convenient workshop for you, visit NACA.com and sign up.
With more questions or concerns, potential buyers can contact NACA at services@naca.com or 425-602-6222.
Hadley Hitson covers children’s health, education and welfare for the Montgomery Advertiser. She can be reached at hhitson@gannett.com. To support her work,subscribe to the Advertiser.
LANSING — Jan Munk was drawn to her eastside neighborhood more than four decades ago by its diversity and affordability.
The neighborhood, just a mile and a half from the heart of downtown, isn’t as nice as it once was, she says, but she’s hoping that a new initiative to rehab nine older homes bought for possible expansion by Sparrow Hospital but recently donated to nonprofits will help revitalize streets around her home.
Habitat for Humanity Capital Region and the Ingham County Land Bank will renovate the homes.
“Houses in our neighborhood are over $200,000, that’s never happened here,” Munk said. “I know I could sell our house. But what kind of place could you move to? My kids grew up here and I’d like to stay.”
Michigan’s population is stagnant, and that isn’t likely to change unless the state’s housing crisis is addressed, experts say. In the Lansing region alone, officials estimate 7,500 housing units need to be built soon just to keep up with the demand. The pace of rehabilitation of the region’s older housing stock needs to quicken as well.
The lack of housing stock has sent home prices spiraling upward, at time when inflation has made rehabbing older homes expensive and, in some cases, nearly cost prohibitive.
It’s a real-world problem officials are grappling with now. With several major employers set to open in the next year — including an Ultium battery plant and Amazon fulfillment center in Delta Township — the Lansing area is expecting to get more new jobs in a shorter time period than it has in years.
But where those new workers will live could be a big problem, said Ken Fletcher, Delta Township’s supervisor.
There are just over 100 homes on the market with price points under $100,000, largely in Lansing, but experts caution many of those homes could need significant, expensive repairs. There’s another 111 priced between $100,000 and $200,000, and more than 80 of those are in Ingham County, primarily in Lansing. For residents wanting to buy homes in Eaton and Clinton counties, or the more affluent areas of Ingham County, the vast majority of homes will be priced between $200,000 and $400,000 or more.
The Amazon and Ultium developments are expected to create more than 2,200 jobs by the end of 2025.
There aren’t enough homes
Like the rest of Michigan, the low supply of quality housing is a big driver of increased housing costs, said Hillary Doe, Michigan’s chief growth officer.
She cited Federal Reserve Bank data, from Chicago’s branch, showing that Michigan needs to figure out housing before it can grow. That’s going to take fixing up old homes, building new single family homes and standing up new apartment buildings, Doe said. The downtown Lansing area added at least 600 housing units in the last two and a half years with hundreds more that are under construction.
There simply aren’t enough housing units, and that lack of options causes housing costs to rise, said Amy Hovey, CEO and executive director of the Michigan State Housing Development Authority, which offers programs for renters, owners and developers.
“The big issue we have in our state is supply, we don’t have enough housing to meet our needs and we can’t just build our way out of it without some incentives or subsidies,” she said.
State housing leaders announced earlier this month a new statewide grant program with $60 million to fix dilapidated homes or build new ones.
Doe came to Lansing a few days later, for a separate housing announcement for new apartments units at the REO Gateway Apartments, at Washington Avenue and Malcolm X Street, beside Interstate 496.
A fourth building at REO Gateway, that will rely on state funding, was announced. It will have two dozen new units, in addition to the complex’s 72 existing units, which started opening for lease last year.
The apartments took about a decade to build from the concept, said developer Brett Forsberg.
That timeline needs to be dramatically compressed, he said, if Michigan wants to build more housing.
How many houses do we need?
State data puts the number of new homes that need to be built at around 7,500 in Greater Lansing.
Alan Fox, Ingham County’s treasurer and a board member of the Ingham County Land Bank, said the number may be closer to 10,000, but coming anywhere close to either number would take many years and plenty of effort.
Fletcher said Delta Township has gotten serious, and creative, about opening up housing options in preparation for the township’s new employers.
The township has recently changed its ordinances to allow for more variety of homes — like smaller cottage homes and more permissive multi-family projects — and is working to expand sewer access to open development in the western parts, Fletcher said.
The township recently approved an expansion that would nearly double one of the area’s larger apartment complexes, adding another 354 units in 11 new buildings.
Developers have been more interested in apartments and multi-family units than neighborhoods of single-family homes, potentially because of the current interest and construction costs, he said.
Some of that may be changing soon.
Even as costs remain high, the number of new home permits in February was 38% higher than February 2023. That may be, in part, a one-time statistical blip because of potential new state regulations and a mild winter, said Bob Filka, CEO of the Home Builders Association of Michigan.
“There are too few housing options available and we’ve had a mild winter,” Filka said. “This, along with the potential of significant new housing costs being imposed by LARA (Michigan Department of Licensing and Regulatory Affairs) later this year, with new costly proposed code requirements, explains the acceleration we’re seeing.”
He said builders worry that sprinklers and other potential code requirements could increase costs for a single home by $20,000 or more.
Filka said regulatory and construction costs already make it “usually impossible to build a home for less than $350,000 or $400,000 and make money in the mid-Michigan market.”
Not even $15 billion would fix it
Fox said the housing shortage is a $15 billion problem, assuming 7,500 homes could be built for a likely unrealistic $200,000 each. But it would still be difficult, if not impossible, to find the people, the material and the land to do it in a reasonable time period.
The county doesn’t have billions. It does have $9 million remaining in pandemic money dedicated toward housing and county commissioners are starting to float a proposal to add a county millage to support housing.
The existing money won’t go far if the county builds homes; it’d be a few dozen houses.
So instead, Fox and county officials are planning to use it to fund educational programs, attract private investment and otherwise try to stretch the money.
Encouraging homeowners to keep up with repairs, connecting investors with local real estate options and helping renters to save up money are some of the ways the area’s housing situation will get better, he said.
And nonprofits will play a role.
It will take several years for the homes Sparrow Health System once bought for possible expansion of health facilities to be rehabbed, said Brent Taylor, executive director of Habitat for Humanity Capital Region, adding that his organization is about six months into that process. They are working on about half of the homes.
For the Sparrow homes, Taylor said it was important to renovate those as single-family homes. Having a broad mix of housing — rentals, single-family homes and others — is important, although one of the gaps in the market now is single-family homes, he said. Many of the homes Sparrow donated were split over the years into duplexes and will be converted back into large single-family homes.
The homes tick all the boxes for Josh Hamilton, who lives in the neighborhood and works for University of Michigan Health-Sparrow. As he waited for the school bus to drop off kids Monday, Hamilton said he wanted the vacant homes to be fixed up and owner-occupied so he’ll have some new neighbors soon.
“I’m excited to see it happen,” Hamilton said.
‘We can’t just build our way out of it’
The state has been in a housing crisis for years, Hovey said.
“We can’t just build our way out of it without some incentives or subsidies because of what it costs for people to build,” Hovey said. “Because what it costs to build, the average Michigander can’t afford to pay.”
The incentives and subsidies would come from a variety of state and federal programs, along with municipal and county-level programs. There are so many options that working with a local housing agency can help people find programs, Hovey said.
She said the state’s efforts at attracting jobs are running into problems because potential recruits can’t always find housing. That means companies sometimes pull out of Michigan plans or don’t consider the state due to a lack of housing.
“You cannot imagine how frustrating it is for an employee to have to pull out of a job, and say they can’t find housing so they can’t take that job,” Hovey said. “That happens across our state, including in Lansing.”
Rawley Van Fossen, Lansing’s director of economic development and planning, said the Capital Area Housing Partnership, Habitat for Humanity Capital Region, the Ingham County Land Bank and Eastside Community Action Center are four of the groups doing the work on the former Sparrow homes. Together they can probably do dozens a year, welcome relief for some but it doesn’t go far enough.
Fixing up those homes — and others like them in Lansing, which has many homes 75 years old or older — will often cost more than they will be valued at afterward, said Van Fossen, who until recently was the executive director of the Capital Area Housing Partnership.
Van Fossen said it can cost a homeowner or a property developer a few hundred thousand dollars to buy a Lansing property, get the professional planning work necessary for the renovation, get permits, hire a contractor and pay for the renovation. At the end, the home may appraise for $170,000, on a good day, he said.
“There’s a gap,” he said, acknowledging a major factor that can keep people from improving homes in Lansing. “A private developer or someone who is not mission based, they’re not going to do that. We can’t rely on our nonprofits.”
Most people will need more financial support.
He said some of the city’s best tools are education and connections to a wide variety of financial supports: Teaching real estate and financial literacy at community centers and being able to walk people through the permitting and construction process. The state offers several programs to help fund repairs, renovations, new homeowners, early-stage developers and large-scale developments.
Utility companies can also offer incentives for appliances and modernizations, Van Fossen said.
Anyone who wants to do significant renovations for themselves, or even get into developing houses or flipping them, can go to Lansing’s offices and get some help with the wide variety of programs, Van Fossen said.
To get more affordable housing, Filka suggests density like smaller lots and multi-family options like townhomes or duplexes, as well as taking advantage of state subsidies like tax credits and construction subsidies.
Contact Mike Ellis at mellis@lsj.com or 517-267-0415
HILLSDALE — Hillsdale’s leaders joined with representatives from Portage-based Allen Edwin Homes Monday for a groundbreaking ceremony on Hidden Meadows Drive where middle-income housing for the workforce will be built.
Allen Edwin Homes first came to the city in the fall of 2023 with their plan to build three duplex-style residential units that will ultimately house six families with occupancy available in early 2025.
The project is the first in Hillsdale to take advantage of new state legislation which allows developers to seek payment in lieu of taxes agreements with municipalities in order to entice housing development.
The council approved a 10-percent PILOT payment over 15 years for Allen Edwin Homes’ project in Hillsdale, which came under scrutiny of Councilman Joshua Paladino when the council took up the issue on Nov. 20, 2023.
Paladino, who opposed the concept of the PILOT payments, ultimately voted no on the resolution to allow the project to proceed while the rest of the council voted aye.
“Hillsdale is experiencing a surge of energy as investment in the community continues to grow,” Brian Farkas, director of workforce housing for Allen Edwin Homes, said. “Allen Edwin Homes is thrilled to be part of this momentum by bringing more housing to Hillsdale.”
Previously, the PILOT incentive only applied to developments qualifying for low-income housing tax credits, which typically involve large apartment complexes. By contrast, this new tool can be applied to smaller apartment developments and single-family homes, city officials said.
The agreement with the city requires Allen Edwin to keep rents affordable to families earning up to 120% of the median household income for 15 years.
“We are excited to be working with Allen Edwin Homes to bring additional housing options to Hillsdale,” Hillsdale Mayor Adam Stockford said. “Housing is a need, not only in Hillsdale but across the entire state. This project builds on the recent growth we’ve been seeing as investors realize the opportunity our community has to offer.”
A state housing report published in 2022 found approximately 47% of the state’s housing units are more than 50 years old and that Michigan needs 190,000 more units to meet current housing needs. The report also found, as of 2019, about 26% of Michigan residents were considered “housing-cost burdened” because they spent more than 30 percent of their income on housing.
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“Preserving our aging housing stock and developing new units are both critically important to tackle our housing shortage and grow our local economy,” Hillsdale City Manager David Mackie said. “These new homes will help address the need for affordable housing for working class families, young professionals, or retiring residents who are looking to downsize. This project is a significant step forward.”
The developer has proposed for the second phase a mix of “for sale” and rental single-family homes on the remaining acreage in the Three Meadows Subdivision they currently have under exclusive option.
— Contact Reporter Corey Murray atcmurray@hillsdale.net or follow him on X, formerly Twitter: @cmurrayHDN.
Coastal Georgia’s boom in new industries, coupled with its population increase, has forced local authorities to pause and take into account where the influx of newcomers holding these new gigs will lay their head at night. Chatham County alone, for example, has a housing deficit of 9,300-10,000 units, especially to support workforce housing for those making 60% to 120%. of area median income.
The Savannah Economic Development Authority (SEDA) is teaming up with Georgia Tech for a Comprehensive Coastal Georgia Housing study, which was introduced during SEDA’s monthly meeting Tuesday. The research will take inventory of the housing stock in Bryan, Bulloch, Chatham and Effingham counties, as well as the city of Savannah to determine the best areas for housing growth.
What does a housing study do?
Each county and the City of Savannah will pay $20,000 for the study. A state grant worth $100,000 will go toward the project.
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Betsy McGriff of the Center for Economic Development Research at Georgia Tech said this kind of research is imperative to ensure communities are built to grow over time.
“We do this to make sure your infrastructure can handle the development you propose,” said McGriff. “What we are doing will be a community engaged process.”
Can laborers afford to live here?
There is one major issue looming regarding the housing boom that is expected to occur. Many of the homes in the area are out of reach financially.
“You look at wages and if there’s a mismatch between wages on the market and the cost of homes, that might be considered in terms of what you try to drive as far as construction,” said McGriff. “If the demographic shows a certain area has a one-person household, you may consider smaller homes. The government can issue a request for proposal and work with the development authority to drive the kind of development they want to public property [that they own]. The big piece is, time is money. The more you can streamline that process – you can drive down the cost of development.”
According to the real estate website Redfin, the average home prices in each county are:
- Bryan County: $430,000
- Bulloch County: $265,000
- Chatham County: $352,000
- Effingham County: $318,000
According to the U.S. Census Bureau, however, the average median household income across the four-county region is shy of $75,000, which means most households could not afford a home above $245,000 without being cost burdened.
Georgia Congressman Buddy Carter said during a previous interview that the state has been “addressing” the need for funding to go towards workforce housing.
“That’s extremely important,” said Carter. “Federal funds have been flowing through the state to address that. We are going to make sure they have what they need.”
Carter did not provide a dollar amount.
While some counties allow the market to determine the price of homes, McGriff said there are ways to mitigate the cost. She said it is important to attract developments that “the CEO and the security guard can afford.”
McGriff said she grew up in a rural community and understands the hardships that come with change and said that community character will be considered as Georgia Tech conducts its research.
She added that because Georgia is a property rights state, owners, for the most part, have control over their land.
“You can’t shut the gate and tell people not to come. What you can do is drive development to the places where services are appropriate and preserve green spaces. We are cognizant of that but we also want to be welcoming of people that are investing in the community. You have to balance that out.”
The study is slated to be complete by October.
Latrice Williams is a general assignment reporter covering Bryan and Effingham County. She can be reached at lwilliams6@gannett.com.
One of my favorite “Modern Family” episodes depicts the hilarity and nonsense of a real estate agent’s daily life as Phil Dunphy rattles off deed restrictions and the proper pronunciation of the word “Realtor” (real-TOR).
A registered trademark of its originator, Realtor is a title only real estate agents who pay membership to the National Association of Realtors (NAR) are allowed to boast.
Today, after more than 10 years as one myself, the “Realtor” prestige has lost its allure.
Just when it felt like NAR was bouncing back after a sexual harassment scandal in 2023, we real estate agents and brokers now find ourselves in the aftermath of this month’s multimillion dollar NAR settlement.
While I am nervous about what these NAR settlement changes mean for my residential real estate business and community, I am pleased that we’re all turning our eyes and ears to a company whose pockets have gotten too big and too dark for too long.
But enough about NAR.
Brokers, their agents and our local associations are scrambling to decide how to restructure serving residential buyers fairly without undervaluing our work. It feels a bit like a bomb just went off, and we’re running up to each other screaming, “Can you hear me talking? Are you talking? What are we going to do about this?!”
We have only until mid-July to figure it out.
Here’s what we know now: Buyer broker compensation is no longer allowed to be included on the Multiple Listing Service (MLS). And buyers are now required to sign a Buyer Representation Agreement, which includes the buyer broker’s compensation.
Real estate agents are worth it. So how do we get paid?
Buyer services are harder and more unpredictable, I think, than seller services (even in a buyer’s market!). Some buyer clients take years to find a property, while others take only a few weeks.
The stories we agents could tell would make anyone roll with laughter or cry – probably both. Being a real estate agent is like a reality TV show. How will we divide our whole job into billable hours? Billable tasks?
As an agent, I’m not only giving advice about market data and negotiating terms for sale. I’m also an on-call therapist, a babysitter, an interior designer, a cleaner, an exterminator … agents gladly do an endless list of tasks for our clients. Just ask your favorite agent what she keeps in her car for emergencies!
One thing I can predict with much certainty: Buyers will have to do more work to buy a property in the future. Private tours will be less common and replaced by 3D tours, video tours and open houses. Buyers might also have to meet with their inspectors, contractors and others without their agent.
Maybe buyers really will do it all themselves without losing money.
Buying a house?Don’t go it alone. A real estate agent can make all the difference.
If you’re hoping to buy in the next three months, my recommendation would be to close by July 1. Most first-time homebuyers have no idea what has happened or how it will affect their ability to negotiate.
In the past week, I’ve had to explain the NAR settlement to every friend, neighbor and client outside the industry. I can only tell you that we’re all racing to get it figured out by the time it does affect everyone.
NAR settlement explained: How will this impact home sellers and real estate prices?
Seller-paid buyer broker commissions were created with equitable rights to good representation in mind. Specifically, so that first-time buyers could afford to have a fair negotiation, instead of being swept under the rug by a seller’s agent signed to protect the seller (a law in most states).
My heart breaks for those sellers who were swindled into commissions. As much as I’d like to blame NAR, this error is also on agents, brokers and local boards who clearly violated our ethical code. It’s maddening to watch agents and brokers feed right into the stereotype that real estate agents are lazy and just in it for the biggest paychecks.
So, who will pay the buyer’s agent now, and how will this affect home prices?
Real estate prices:Will home prices fall after Realtor lawsuit settlement? You shouldn’t count on it.
It’s commonly acknowledged that the 5-6% sales commission was “baked into” the sales price. Investor agents and builders have been using low-to-zero percent buyer broker commissions as leverage for years.
While I do think that 5-6% sales commissions will be a thing of the past, there is a chance that sellers will find a way to simply advertise buyer broker commissions through a different medium. This compromise walks a fine line with the new restriction.
Seller-paid “buyer credits” is my favorite idea bumping around. Buyer credits would be offered on the listing, and could be distributed as the buyer sees fit at the closing table. The buyer could use the funds for themselves, their broker or both.
If buyers are responsible for the buyer broker commission on top of other purchasing costs, the sales prices will have to come down. Lower sales prices should not affect the sellers’ net proceeds in this instance, since the sales price deficit should roughly mirror the now absent buyer broker’s commission.
In short, even though most sellers think they should be celebrating now, these new rules probably won’t affect sellers much, if at all, once the dust settles.
What does the NAR settlement mean for buyers?
Gone are the “Let’s go tour this house for fun!” days.
A signed Buyer Representation Agreement is now required before a property showing. This has always been best practice. For some states this will be a big change.
For example, I usually complete a buyer consultation and one or two property tours before requiring a buyer’s agreement. I do this to be sure we’re a good match for each other. A successful client-agent squad requires a lot of trust and a common communication style.
Take the tours off the table, and I think things will get awkward. Now I spend one hour with a potential buyer and then prompt, “So do you trust me to guide you through your biggest life purchase? Sign here.” I’m sure thankful many of my clients are referrals.
How will the commission change impact real estate agents in 2024?
The part-time agents and small brokerages will likely diminish over time, which will either be great or horrible for the industry. Agents will have to do more with less, and our 60 to 70 hour work week will feel impossible without high sales volume.
Once in escrow, the brunt of the work usually lands on the buyer’s agent, too. If there are more transactions without buyer’s agents, then the seller’s agent will have to pick up the slack.
I often joke that as a 1099 real estate agent, I’m either overpaid or underpaid on each property. Still, my annual income mashes up into a worthwhile sum despite the work-life balance.
Without that 2-3% buyer’s commission propping up half my income, I am not sure the 11:30 p.m. phone calls, 6 a.m. texts, missing my daughter’s basketball game for an impromptu showing, and never having paid time off or maternity leave will be worth it.
Maybe I ought to go back to copywriting.
It feels like most brokers and Realtor associations are strategizing how to make the buyer agent obsolete with new technologies. I think they’re focusing on the wrong solution, but that’s a story for another day.
Emily Ross has been a real estate agent in Austin, Texas, for 10 years and a writer for much longer. Her background is in copywriting and editing, and she holds a master’s degree from Arizona State University’s Walter Cronkite School of Journalism.
We’re officially in the thick of the spring housing market, and we’ve already seen an increase in real estate activity across the country. But there’s always one week that’s expected to stand out the most for homeowners looking to sell their property.
This year, Realtor.com has deemed the week of April 14-20 as the best week to sell nationwide. This week is expected to combine higher buyer demand, lower competition from other sellers and fewer price reductions than what is seen during a typical week.
“We looked at six different metrics that all kind of captured inventory on the market, time on the market and prices,” said Hannah Jones, senior economic research analyst at Realtor.com. “So, we looked at all six of those metrics and we looked at how those metrics move both nationally and within a metro area over the course of a year. We weighted all of those equally and looked at where that perfect sweet spot is where you’re bringing together all of those metrics.”
What makes the third week of April the best time to sell nationwide?
The third week of April is expected to have a favorable balance of market conditions for sellers, including elevated prices, increase buyer demand and lower competition from other sellers, Jones said.
“We kind of found that optimization point where you’re seeing prices that are over the average price for the year but time on market that’s faster and less competition from other sellers,” Jones said. “You can expect to see good demand for you home because there aren’t too many sellers in the market quite yet, and you can see your home sell quickly.”
In terms of home prices, media listing prices are expected to be about 1.1% higher — or $7,400 more — than the average week, and home costs could be about 10.4% higher — or $34,000 more — than they were at the start of 2024.
While active inventory was 7.9% higher at the start of 2024 compared to 2023, the highest beginning-of-year inventory since 2020, inventory was still 39.7% lower than pre-pandemic levels, according to the report. As a result, it is predicted that there will be 13.7% fewer homes on the market during the best week compared to the average week.
Home listings are also expected to receive about 18.4% more views during the best week than the rest of the year. According to the report, this week in 2023 had 22.8% more views per listing. So, if mortgage rates see a significant drop this spring, we could see a greater surge in buyer demand sooner.
Homes are also expected to sit on the market for as few as nine days, or about 17% faster than during an average week.
When is the best week to sell in North Jersey?
While the week of April 14-20 may be the best time to sell nationally, March 31 to April 6 is the best week to sell in the New York metropolitan area.
In our region, median listing prices are expected to be 5.2% more — or $38,000 — during this week than they were at the start of 2024, according to the report. There are also expected to be 16.7% fewer price reductions during this week than there are during the average week.
This week is also anticipated to yield 7.1% fewer active listings than during an average week, resulting in 16% more views per property. And, active listings are expected to stay on the market for 11 fewer days than during an average week.
“While we did determine that this is the optimal week, the weeks surrounding it are also really good weeks to sell. This may bring together a tiny bit of favorability either on price or other seller competition, whatever it may be, to make it really the best week. But, in general, if you’re not ready to sell that week, that’s okay,” Jones said. “It’s still a good time of year to start thinking about putting your home on the market, being on the early side of spring and the busy season, so you can get in there and get buyer attention before there are a ton of other sellers in the market who are also vying for that same attention.
Sellers should start preparing their homes to sell now
There’s just about a month until the national best week to sell arrives, and even less time until the best week to sell in the New York metropolitan area. So, if you’d like to take advantage of this time, you better start preparing now.
“Even though it is the best time to sell — it’s the selling season and there are going to be buyers looking for a home — buyers are still probably going to be a little bit picky because they’re paying a lot for a home right now. So, the best way to prepare is to have realistic expectations,” Jones said.
Preparation not only involves doing things like finding a real estate agent and ensuring that your home is priced attractively, but also making any repairs, deep cleaning the interior and adding a fresh coat of paint to the inside of the home. You can also take some time to improve your home’s curb appeal by adding plants and colorful flowers to the front of your home, as well as repainting things like your garage door, fences and railings.
“I think that, in general, the consistency of it is a little bit comforting because even though mortgage rates are moving around and all of this stuff feels very out of control, those typical seasonal housing dynamics do continue and they do persist,” Jones said.
Maddie McGay is the real estate reporter for NorthJersey.com and The Record, covering all things worth celebrating about living in North Jersey. Find her on Instagram @maddiemcgay, on X @maddiemcgayy, and sign up for her North Jersey Living newsletter. Do you have a tip, trend or terrific house she should know about? Email her at MMcGay@gannett.com.
A landmark settlement in an antitrust challenge to the National Association of Realtors’ standards for real estate agent commissions has understandably been celebrated as a victory for homebuyers. At around 5.5%, average commissions in the United States are some of the highest in the world, and if the NAR settlement results in lower commissions (and if sellers, who typically pay the fees, incorporate the savings into their listing price), prospective homebuyers could save thousands of dollars.
Any such savings would be welcomed, and for good reason. But homebuyers shouldn’t expect fundamental changes to the brutal U.S. housing market.
First, it’s unclear just how much they’ll benefit from the settlement because it doesn’t address the other, and arguably bigger, anticompetitive facet of the U.S. real estate agent market: occupational licensing regulations.
All states require real estate brokers to obtain a license, and 44 states license real estate salespeople (who must work for a licensed broker). In many states, this system creates a high barrier to entry into the profession and severely limits competition.
Colorado, for example, demands 168 hours of education from a state-approved real estate school (or college equivalent), passage of the state licensing exam, fingerprinting and background check, a sponsoring broker, errors and omissions insurance and $485 broker licensing fee. All told, the process can take more than a year to complete and cost more than $1,000. Once licensed, brokers must annually complete another 24 hours of continuing education at a substantial additional expense.
Licensing leads to higher costs for consumers
Research has consistently found that by limiting competition, occupational licenses like these increase consumer costs while providing few, if any, benefits in terms of quality, health or safety. For home buyers and sellers, this probably means paying higher commissions for no good reason.
Consider, for example, the United Kingdom, which doesn’t license real estate agents and enjoys average commissions of just 1.3%. Even after this month’s settlement, U.S. homebuyers can only dream of such rates.
In a free market, providers should be able to offer any service at whatever price they want, and if consumers don’t like it, a competing provider can – and almost certainly will – offer it for less. But this is no free market. And until state laws that create local real estate cartels are reformed or eliminated, we should expect commissions to remain higher than they’d otherwise be.
How much should it cost to sell a house?Your real estate agent may be charging too much.
Even then, however, homebuyers wouldn’t be spared from the most important problem in the U.S. real estate market today: home prices and rents increasing at a pace that far exceeds overall inflation. That trend has nothing to do with cartels or commissions and almost everything to do with the limited supply of housing, particularly in high-growth metro areas.
Building more homes will slow price increases
Research has repeatedly shown that the most effective check on skyrocketing home prices is simply to build more homes. One survey of the literature found that new construction of market-rate units in several U.S. cities moderated the prices of all typesof nearby housing, both high- and low-priced.
Housing shortage squeezes budgets:Rising home prices create an enormous burden. So why aren’t we building more houses?
Recent experience shows much the same: places that have seen housing construction at rates above national or regional averages – Austin, Phoenix, Atlanta, Raleigh, Minneapolis and more – have enjoyed slower rent and home price appreciation.
Unfortunately, regulation is a big problem here too, severely restricting the construction of market-rate housing across the country and thus boosting prices. The biggest impediments, studies show, are local zoning and land use regulations that dictate home sizes, yard sizes, parking and more, while giving politicians and residents an effective veto over anything that might deviate from these strict terms.
The restrictions’ effect on prices is significant: One recent study examined 24 different metropolitan areas and calculated a “zoning tax” of up to $500,000 per quarter-acre in cities with onerous land-use regimes – a finding consistent with previous research.
In case after case, in the U.S. and abroad, the lesson is always the same: new housing supply lowers prices; land use regulation discourages new supply; and homebuyers suffer as a result.
Other policies do further damage. Federal tariffs on construction materials, hard caps on immigration, high local permitting and building fees, and property and other taxes increase American homebuilders’ costs and thus discourage the construction of smaller starter homes with lower profit margins. National housing subsidies and city building codes preference traditional, “stick-built” homes over less expensive manufactured housing. And the U.S. government’s ownership of large amounts of land, particularly in the West, makes it unavailable for development and acts as hard barrier to the expansion of neighboring localities.
Combine state-sanctioned Realtor cartels with a witches’ brew of federal, state and local regulation, and it’s no surprise that home prices are skyrocketing today. Unfortunately, there’s no settlement amount that will change this troubling reality.
Scott Lincicome is vice president of general economics and trade at the Cato Institute.
For sale: Columbus apartment complex, 392 apartments, 15 stories high, great views, in need of maintenance. Vacant. Sold as is.
The Columbus real-estate firm The Robert Weiler Co. is soliciting proposals from investors to buy and renovate Latitude Five25, the troubled Near East Side housing towers that were evacuated after being deemed uninhabitable.
“It’s a signature, high-profile property,” said Skip Weiler, whose firm was hired by New Perspective Asset Management, the Dublin company appointed receiver for the property.
The Robert Weiler Co. has listed the property and is sending requests for proposals to prospective buyers, who have until May 31st to respond.
“I think it will be a pretty big pool,” Weiler said. “We’re getting the word out. We know all the players in central Ohio and we’re getting the word out nationally.”
Dana Milligan, one of the founders of New Perspective Asset Management, said she expects a lot of interest in the property.
“We had 13 calls within the first few hours of it being posted,” she said.
Milligan and Weiler said any buyer must have a track record in multifamily housing, including rehabbing properties.
“There’s going to be very strict requirements of the new owner due to the fact that we don’t want to be in this position five years from now,” Milligan said.
The city has made it clear they would like the property to remain affordable housing, but Milligan said callers have expressed other potential uses for the property such as student or senior housing.
“Everyone has to be looked at,” she said.
Local housing news:Last residents forced to vacate troubled Galloway Village Apartments in Prairie Township
The listing describes the property as a “rehab or redevelopment opportunity” and notes that the property’s amenities “include basketball court, media room and cyber café. Beautiful city views close to downtown Columbus, near the King Lincoln District, Franklin University and Columbus State Community College. Plenty of parking.”
Weiler points out that the property is in a federal opportunity zone, offering significant tax advantages for investors.
But Weiler also knows the property needs a full rehab.
“It’s a total renovation,” he said. “The shell’s fine, but you’ve go to do everything from the floor to the roof.”
Latitude Five25’s troubled past
The sale is the latest chapter in the troubled history of the low-income apartment complex, which has towered over Interstate 670 for nearly 60 years.
The property, which has gone by several names, declined for years before being acquired in 2021 by Paxe Latitude, an arm of a New Jersey-based real-estate investment firm.
Under the firm’s ownership, the property continued to deteriorate, with tenants complaining of a lack of heat and air, no hot water, power outages, regular breakdowns of elevators, along with rats, roaches and other issues. Maintenance problems were compounded by crime, which led Columbus Police to respond to about 1,000 calls to the property in recent years.
Within months of Paxe Latitude acquiring the property, the city obtained a court order requiring the owner to beef up security and promptly respond to maintenance issues at the property.
After a lack of response from owners, the Columbus City Attorney’s office filed a contempt action against the owner of the complex, asking the court to appoint a receiver and ordering the owner to pay for repairs and relocation costs for residents.
Residents gradually left the complex until December 2022, when, over the Christmas holiday, the final 152 occupied apartments were vacated.
Two months later, Franklin County Environmental Judge Stephanie Mingo levied $4.3 million in fines after holding Paxe Latitude in contempt. The property was placed in the hands of New Perspective Asset Management, which hired The Robert Weiler Co. to find a buyer.
“I’m expecting that it will probably change hands in six to nine months,” said Milligan, with New Perspective. “This will be a nice thing to have off the city’s plate.”
jweiker@dispatch.com
@JimWeiker
Real estate news:What new Realtor ruling means for Columbus home buyers, sellers
California is one of the largest and most populous states in the U.S. – it’s also one of the most expensive places to live. According to data from the Census Bureau’s American Communities Survey, the median monthly mortgage cost in California is $2,673. It’s not just housing that adds up – health care, taxes, food and transportation all contribute to California’s growing cost of living.
California has one of the most pricey housing markets in country
Last year, the California Community Poll found that 4 in 10 Californians were considering moving out of state, with the majority saying it’s too expensive to live there. Although the poll found a majority of Californians love living in the state, increasing costs of living is the main driver for people moving.
About 64% of counties in the Golden State having median homes values above the national median of $389,800. Four of the top five most expensive U.S. counties by median housing price were located in California.
County level data of housing statistics from the the American Community Survey shows how much homes are valued at across California.
Outside of California, Massachusetts rounds out the top five counties with the highest median home prices:
- Santa Clara County, CA: $1,583,130
- San Mateo County, CA: $1,573,470
- Marin County, CA: $1,454,450
- San Francisco County, CA: $1,332,660
- Nantucket County, MA: $1,313,450
Logan Mohtashami, lead analyst for HousingWire, a trade publication for mortgage, real estate, and housing professionals told USA TODAY that California has been ineffective in lowering the cost of living because not enough homes are being built. That means there is more demand for homes than supply.
Mohtashami called the housing market unhealthy, ” We still have too many people chasing too few homes” he said. “California is going to be a tug of war. Can they keep enough people here? Or do more people just keep moving away?”
Cost of living:Nearly half of California residents are considering leaving the state, a poll finds.
California to Texas:A move from California to Texas could save a million dollars. Many Americans are opting in
See how much homes are valued in your county
For the roughly two-thirds of Americans who do own homes, location is a major determinate of their home’s value. Home ownership is a major financial asset to many households and knowing the worth of a home can help families decide to buy or sell.
See the median value of homes in each U.S. county:
How was the data collected?
The National Association of Realtors analyzed data from the Census Bureau’s American Community Survey of median housing prices for 3,112 counties and county equivalents across the U.S. Home values reflect the overall worth of all homes in a given area rather than solely home sales data, according to the association.
The median home value by county is a less biased statistic than the mean or average price. Median is not as heavily influenced by a small number of highly priced homes and is a more accurate representation of housing prices across the U.S.
Itzel Luna contributed to this reporting
Five years ago, when a real estate agent advised my wife and me to make an offer on a house we had seen only once − at night − and were unsure about, I thought she was being ridiculous. Today, I concede that she was being pragmatic because buyers significantly outnumbered sellers.
We bought another home before it was listed, happening to spot the “Coming Soon” sign out front. That was my preview of the housing shortage. Then COVID-19 supercharged the national housing crisis.
You may know the rule of thumb not to spend more than 30% of your income on housing. Redfin calculated that only 15.5% of homes bought last year would have a mortgage costing less than 30% of local median income, a record well below the pre-pandemic norm.
A new report from Harvard’s Joint Center for Housing Studies found that in 2022, a record half of U.S. renters were “cost burdened,” spending more than 30% of their income on rent and utilities. About 27% of renter households spent more than half of their income on housing.
The root cause of this financial hardship is a shortage of homes, although some housing advocates question or deny that reality. But the housing shortage is a literal shortage. We can see it from various pieces of evidence.
We can fix homelessness:California knows the way to end homelessness. It’s time to find the will.
Housing price index is at near record high
America built far fewer homes in recent years. U.S. private home construction crashed before the 2008 mortgage crisis (measured in total units). Only in late 2021 did it climb back up to its pre-Great Recession peak.
Homebuilding is rebounding, but we have a lot of catching up to do. The Case-Shiller housing price index sits near an all-time high.
The median age of first-time homebuyers also is near a record high, at 35.
Can Gen Z, millennials buy homes?Buying a home was a dream for millennials like me. For many, it won’t be possible.
Investment firms have owned many multifamily buildings for decades. They now are buying a significant number of houses because they expect a continued shortage to boost those properties’ values.
Economists argue about inflation and minimum wage laws, but they overwhelmingly agree we have a housing shortage. “Place the Blame Where It Belongs,” declared a recent Urban Institute report on the shortage. Economists are still figuring out how to measure it, but various estimates place the national shortage of homes in a broad range, from 4 million to 20 million.
Rising rents trigger increase in people without stable housing
It was a moment, not a number, that finally convinced me of the housing shortage. I started an all-volunteer housing advocacy group in 2021 and about a year later was invited to tour a homeless shelter. A staff member explained that rising rents had increased the local population without stable housing, and that the shelter struggled to find available homes to place its clients in.
I have since heard the same thing from staff at other shelters in my state. I have also heard chilling stories about residents of my city living in unsafe, overcrowded conditions.
Low supply lets landlords jack up rents. It prevents people from leaving abusive partners. It forces California college students to sleep in their cars.
The housing shortage is all too real. Only building many more homes will make housing affordable again.
Luca Gattoni-Celli is a Young Voices contributor and the founder of YIMBYs of Northern Virginia. Follow him on X @TheGattoniCelli