“Furious 7,” the latest installment in the “Fast and Furious” franchise, inspired our reading of the residential real estate market in April, as inventory is moving fast among furious and growing demand. So my latest playlist for real estate comes from my favorite tunes in the “Furious 7″ soundtrack.
‘Get Low,’ DJ Snake & Dillon Francis
The spring whistle blew, and what’s getting low? Days on market. The median age of listings nationwide is now 10 fewer days than in April last year. Inventory is moving fast.
‘GDFR,’ Flo Rida featuring Sage the Gemini and Lookas
Yes, I know I already featured “GDFR” in my March real estate party playlist, but this is the Noodles remix. And it gives me another chance to sound the alarm about the impending decline in affordability. Thanks to higher prices resulting from tight supply and growing demand, affordability is indeed going down for real. The National Association of Realtors® reported that the affordability index already declined 1% in February, and when mortgage rates begin rising, affordability will decline even more.
‘How Bad Do You Want It (Oh Yeah),’ Sevyn Streeter
Oh yeah, I had to pick this track. Over half of home searches start on the Web, and 90% of buyers use the Internet at some point during the search and buying process, so what we observe happening in real time on realtor.com® is a great gauge of what is happening in real estate.
Our preliminary review of April activity on realtor.com shows that traffic, searches, and listing views are up more than 35% over last year. With 3 million jobs created and close to 1.5 million new households formed in the past 12 months, many more people want a new home of their own, and they want it bad. Their patience will be tested with tight supply—indeed, the No. 1 impediment of active shoppers in April was not being able to find a home that meets their needs.
‘See You Again,’ Wiz Khalifa featuring Charlie Puth
This sentimental tribute to actor Paul Walker, who died in a car crash in 2013, is No. 1 on the Billboard Hot 100. The song is filled with great messages, but I love the line in the chorus, “How could we not talk about family when family’s all we got?”
A home plays a central role in every family. And now that the recession is over, we’re seeing more events in the lives of families, including weddings, births, new jobs, promotions, graduations, retirements, separations, and the loss of loved ones. These events are naturally leading to thoughts that it’s time to find a new home.
Perhaps that’s why we’re seeing a furious increase in single-family, condo, co-op, and townhome listing views. The average listing in April had 40% more views than in April 2014.
Amid all the talk about price trends and interest rates, let’s not lose sight that ultimately the decision to buy a home is more than a financial one—it’s about family.