Today’s homebuyers are learning that finding a move-in ready home in a good location that they can comfortably afford is about as rare as a winning Powerball ticket.
A dire housing shortage has kept prices strong and competition fierce among buyers despite high mortgage interest rates. That’s left less than a quarter of the roughly 1.1 million home listings within financial reach of the typical American household, according to a recent joint report from the National Association of Realtors® and Realtor.com®.
The housing market is short about 320,000 listings within the price range of buyers earning the median household income of $75,000 a year. These buyers can generally afford homes up to $256,000. (Listings for single-family homes, condos, townhomes, row homes, and co-ops included only existing homes and did not encompass new construction.)
“The country has the largest shortage of homes in the price range that middle-income buyers can afford,” says NAR Senior Economist Nadia Evangelou. “That can explain why the competition is strongest for these homes.
“We hear again and again that in order to address the housing affordability issue we need to add more housing to the market,” she adds. “We need to add more homes that middle-income buyers can afford.”
Even those making $100,000 can afford only about 38.6% of the homes on the market. And those needing mortgages are faced with rates nearing 7% for 30-year fixed loans, pushing monthly mortgage payments up into the stratosphere.
The problem has worsened significantly over the past five years. In 2018, there were about 810,000 homes on the market that middle-income buyers could afford. That’s compared with nearly 263,000 in April of this year.
The affordability crunch is even worse for people of color. About two-thirds of Black Americans and 59% of Hispanic Americans have household incomes below $75,000. That’s compared with 48% of white Americans and 37% of Asian Americans.
“Our country needs to add at least two affordable homes for middle-income buyers for every home listed for upper-income buyers,” Evangelou says.
Where middle-income buyers can find the fewest affordable homes for sale
Not surprisingly, the nation’s most expensive metropolitan areas had the fewest homes priced for middle-income buyers. In the whole state of California, just 3.7% of all home listings in April were affordable for buyers earning $75,000 or less.
The issue was the most acute in Silicon Valley’s San Jose, where there was just one home listing priced for buyers earning $75,000 in the entire metropolitan area. (NAR and Realtor.com looked at the 100 largest metros for their analysis. Metros include the main city and surrounding towns, suburbs, and smaller urban areas.)
The lack of affordable homes isn’t surprising as the median price in the metro was $1.53 million in May, according to Realtor.com data, which includes new construction.
In Oxnard, CA, 0.2% of homes were affordable for middle-income buyers. It was 0.6% in San Diego, 1% in San Francisco, and 1.2% in Los Angeles.
However, residents in these more expensive areas generally make more money to keep up with the higher cost of living. The median household income in these areas is typically more than $100,000, says Evangelou.
Even in less expensive, yet still pricey areas, there was a dearth of real estate priced for middle-income buyers: just 1.2% of homes in Seattle; 1.3% of homes in Austin, TX; 2% of homes in Boise, ID, and Salt Lake City; and 2.6% of homes in Sacramento, CA.
“In these very expensive areas, especially middle-income buyers can afford to buy very few listings,” says Evangelou. “It’s very difficult.”
Where middle-income buyers can find the most homes for sale
Buyers on a budget will find the greatest selection of affordable homes in the cheaper parts of the country, such as the Rust Belt and Deep South.
In West Virginia and Ohio, more than half of the homes for sale in April were affordable for middle-income buyers. About 59.3% and 55.6% of listings were priced right respectively in those states.
“Some of these areas have an oversupply of housing,” says Evangelou.
In the Youngstown, OH, metro, nearly three-quarters of the homes for sale, about 72%, were within reach of middle-income buyers. In May, the median home price in the metro was $162,450—about a third of the national median price tag of $441,445 in May, according to Realtor.com data.
The metro was followed by Akron, OH, at 61.4%; Toledo, OH, at 60.7%; Cleveland, at 58.6%; and Syracuse, NY, at 54.4%. Rounding out the top 10 were Scranton, PA, at 53.5%; Dayton, OH, at 53%; Pittsburgh, at 52.2%; Rochester, NY, at 51%; and Detroit, at 49.3%.
“Ongoing high housing costs and the scarcity of available homes continues to present budget challenges for many prospective buyers, and it’s likely keeping some buyers in the rental market or on the sidelines,” Realtor.com Chief Economist Danielle Hale said in a statement.
“Those who are able to overcome affordability constraints may be increasingly drawn to newly constructed homes or to the suburbs and beyond, both of which may offer buyers more realistic opportunities for homeownership.”
At the end of April, Moderne Ventures announced their 2021 Passport Class. Over the next 6 months, each company in the class will receive an industry emersion experience led by Moderne’s team. Geek Estate is about celebrating entrepreneurship, focused on real estate tech (both residential and commercial) and Moderne Venture’s involvement is significant in establishing a global prop-tech ecosystem. This newly announced class has raised over $32 million and has valuations of over $230 Million.
The seven companies selected for the program include:
JoyHub – Culver City, CA: An AI-driven platform providing data aggregation and actionable business intelligence to professional rental property owners and operators.
Kaiyo – New York, NY: A full-service marketplace for gently-used furniture committed to great design, exceptional customer care, and a more sustainable planet.
Peek – New York, NY: An end-to-end solution for virtual-first leasing. The Peek platform combines advanced analytics, content management, integration, and marketing tools.
Piñata – New York, NY: A rent payment platform that allows residents to earn rewards for on-time payments while also increasing their credit.
MotoRefi – Arlington, VA: Transparent autorefinancing. MotoRefi helps car owners save up to $100 per month on their car payments.
Tailorbird – Princeton, New Jersey: Tailorbird saves property owners time and money by using technology to generate instant construction quotes and bid out jobs to preferred contractors.
Trash Butler – Tampa, FL: Doorstep trash & recycling, powered by customer service for property owners and operators.
Please join us in congratulating the 2021 Moderne Ventures Passport Class!
While you may have not heard of “McGlone Mortgage” before, they’re making waves with their superior customer service, something that can often be elusive in the mortgage biz.
The Appleton, Wisconsin-based direct lender has some of the highest marks in the industry when it comes to borrower satisfaction, and says it’s able to offer low rates and fees at the same time thanks to technology.
Their philosophy is “Customers for Life,” with referrals from past customers and local real estate agents having delivered the majority of the company’s business.
In other words, they want to make you happy so you tell your friends and family to use them too, which could save them money on advertising dollars and keep more money in your own pocket.
In case you’re wondering, the surname McGlone is of Irish descent, and almost sounds like “loan.” So perhaps the individual that started the company was destined to dish out home loans.
McGlone Mortgage Fast Facts
Direct mortgage lender that offers refis and home purchase loans
Founded in 1999, headquartered in Appleton, Wisconsin
A dba of parent company Homestead Funding Corp.
Licensed to do business in 44 states and the District of Columbia
Excels in customer satisfaction with near-perfect ratings
McGlone Mortgage is a direct-to-consumer retail mortgage lender headquartered in Appleton, Wisconsin that offers home purchase financing and refinance loans.
They’ve been doing business since 1999, which is a lifetime for a mortgage lender.
The company operates as a dba of its parent Homestead Funding Corp., which is based out of Albany, NY.
Homestead funded about $2 billion in home loans last year, but it’s unclear how big McGlone Mortgage.
While their parent company mostly lends in its home state of New York, McGlone is licensed to do business in 44 states and the District of Columbia.
They don’t appear to be available in Alaska, Arkansas, Hawaii, Missouri, Nevada, or Ohio at the moment.
How to Apply with McGlone Mortgage
They offer a digital home loan process powered by SimpleNexus
It allows you to complete the loan application electronically from any device
You can also download their free mortgage app to take advantage of mobile document scanning
After submission, you can get updates as you go and message your loan officer instantly if you have questions
McGlone Mortgage prides itself on customer service and to that end makes it super simple to apply for a home loan.
You’ve got the option of applying from their website or via their free smartphone app, or by simply calling them up on the phone directly.
Those who prefer to work with someone specific can peruse their online loan officer directory first, then get in touch via their displayed contact information.
It’s also possible to fill out a short lead form on their website, at which point a loan officer will reach out to you.
Regardless of how you proceed, you’ll eventually land in their digital mortgage application powered by SimpleNexus that lets you complete most tasks electronically.
For example, you’ll be able to scan/upload paperwork, eSign disclosures, digitally verify income/assets, and receive real-time updates as your loan progresses.
All of it can be accessed via the online borrower portal 24/7 for maximum convenience.
Additionally, prospective home buyers can generate pre-approval letters on the fly that can be shared with real estate agents from a mobile device.
Loan Programs Offered by McGlone Mortgage
Home purchase loans
Refinance loans: rate and term, cash out, streamline
Home renovation loans: FHA 203k or Fannie Mae HomeStyle
Conforming loans backed by Fannie Mae and Freddie Mac
Government-backed loans: FHA/USDA/VA
High balance / super conforming loans
Jumbo home loans
Energy Efficient Mortgages
HomeReady (Fannie’s 3% down loan program)
State Bond Programs for first-time buyers
Fixed-rate and adjustable-rate options available in a variety of loan terms
Aside from excelling in customer satisfaction, McGlone Mortgage also offers an impressive menu of loan programs.
And they lend on all major property types and occupancies, including condos/townhomes, second homes, investment properties, and multi-unit properties.
You can get a conventional loan backed by Fannie or Freddie, a jumbo loan that exceeds the conforming loan limit, or a government loan including an FHA loan, VA loan, or USDA loan.
Those who already own a property can apply for a rate and term refinance, a cash out refinance, a streamline refinance, or a home improvement loan, including the FHA 203k or the Fannie Mae HomeStyle Renovation.
They also offer Energy Efficient Mortgages (EEMs), along with a jumbo mortgage up to 85% LTV that doesn’t require private mortgage insurance.
Lastly, state bond programs are available in select states that allow first-time home buyers to apply for a grant to help with down payment and/or closing costs.
In terms of specific loan programs, you can get a fixed-rate mortgage such as a 30-year, 15-year, 20-year, or 10-year fixed, or an adjustable-rate mortgage, such as a 5/1 or 7/1 ARM.
McGlone Mortgage Rates
McGlone Mortgage recently upped their game when it comes to pricing transparency. You can now find daily mortgage rates on their website for a variety of loan products.
At last glance, they displayed daily rates for the 30-year fixed and 15-year fixed for both a home purchase transaction and a refinance.
You’ll also see an FHA and VA mortgage rate, which gives us a good idea of pricing across their product menu.
From what I saw, their rates were pretty strong, especially since the fees listed (discount points) were reasonable.
You may also come across their interest rates in mortgage comparison tables on websites such as Bankrate, so keep an eye out when shopping your rate.
At the same time, lender fees don’t appear to be mentioned on their website. So it’s unclear if they charge underwriting or processing fees, or a loan origination fee.
Although I have seen them advertise on Bankrate and list what appeared to be a flat origination fee of $1,895.
As always, take the time to shop around and obtain several mortgage rate quotes before deciding on a lender. Otherwise you’re doing yourself and your wallet a disservice.
McGlone Mortgage Reviews
On Bankrate, McGlone Mortgage has a pretty amazing 5-star rating out of a possible 5 from nearly 1,300 customer reviews.
And on top of that, 100% of customers who reviewed the lender would recommend them to others.
It’s the same story over at Zillow, where the company enjoys a 4.98-star rating from over 1,000 customer reviews.
A whole lot of those reviews indicate that both the interest rate and fees/closing costs were both lower than expected. That might explain the high level of satisfaction.
Additionally, they’ve got a 4.8-star rating from about 200 customer reviews on Google, and a 4.5-star rating from 30 reviews on Yelp.
One of the reviews even mentions a customer receiving a gift package containing Wisconsin’s finest cheese. Sounds pretty above the beyond if you ask me.
The mortgage company is also an accredited business with the Better Business Bureau (since 2015) and currently boasts an ‘A+’ rating based on complaint history.
They even have a perfect 5-star rating on the BBB website, which is relatively unheard of since most people generally go there just to complain.
In summary, McGlone Mortgage could be a good choice for both home buyers and existing homeowners looking to refinance thanks to their exceptional customer satisfaction and perceived low rates/fees.
While they might not be a household name, they’re certainly legit if you take the time to read their thousands of highly positive customer reviews.
McGlone Mortgage Pros and Cons
The Pros
Can apply online via their digital mortgage platform
Also offer a free smartphone app
Tons of home loan programs to choose from
Near-perfect customer reviews across all major ratings websites
Between 2006 and 2011, the U.S. Census Bureau tracked where the wealthiest five percent of Americans are living. Defining high-income households as those that earn about $200,000 a year and above, the Census Bureau determined that the greatest concentration of wealth is in three main areas. These three areas are located near, but not directly in, large metropolitan areas along both coasts.
New York suburbs According to Forbes, while New York City, NY, boasts the largest amount of wealthy residents of any city in the country, the concentration of wealth is higher in the surrounding suburbs of Bridgeport, Norwalk, and Stamford, Connecticut. These areas are located along Long Island Sound about 60 miles away from the city. Here, nearly 20% of residents are considered wealthy.
What draws so many rich people to this area? For one thing, there’s proximity to the city. The Fiscal Times also notes that it’s a lower-tax region.
Silicon Valley California boasts the nation’s largest population of billionaires, so it should come as no surprise that you’ll also find plenty of wealthy people living in the Sunnyvale-Santa Clara area outside of San Francisco, CA. This area is also known as Silicon Valley and is home to many of the world’s technology giants like Apple, Google and Hewlett-Packard — plus thousands of start-ups.
Unfortunately for the wealthy, it’s also home to some rather steep tax rates. The rich in Northern California can expect to pay about 12.3% in taxes versus the 6.7% rate that wealthy residents pay in Connecticut.
Washington, D.C. suburbs Back on the East Coast, the third-largest concentration of wealthy Americans is settled around the Washington, D.C., metro area in the Virginia suburbs of Alexandria and Arlington. In these northern Virginia suburbs, 14% of households represent the country’s highest earners. The economy here has been shaped by proximity to the nation’s capital, and the majority of residents either work for the government, the military or for private companies that contract to the federal government. In Alexandria, for instance, the biggest employer is the U.S. Department of Defense.
Curious about the opposite end of the spectrum, as well? The southeastern states of Alabama, Mississippi and Louisiana reported the lowest concentrations of wealthy residents.
For more details, check out the Census Bureau’s complete report.
Of all the housing market bugaboos that haunt and frustrate wannabe buyers in this stressed, prime-time selling season of 2023 (Sky-high prices! Rising mortgage rates! Inflation and economic uncertainty!), one challenge still sits at the center of everything: finding a good home to purchase.
America’s been in a severe housing shortage since at least the earliest days of the COVID-19 pandemic, and it affects just about all else. A shortage of inventory leads to frenzied bidding wars, out-of-reach price tags, and market paralysis.
But the situation is changing, at least in some markets. And Realtor.com® decided to find out where. When it comes to home inventory levels in America, it’s both the best of times and the worst of times—it all depends on where you live.
To gain some insight into where things stand going into the crucial summer season, the data team at Realtor.com crunched the numbers to determine the metropolitan areas with the largest increases—and most substantial decreases—in available home inventory.
You can see for yourself in the table below the change in housing inventory in the 100 largest metros.
So what did we find? Well, across the country, inventory is up year over year, by a little more than 20%. But this is largely a function of the incredibly low inventory levels of the past couple of years. There aren’t more sellers coming onto the market. Instead, homes are sitting longer. And even the current bump in year-over-year inventory still puts this year below pre-pandemic levels. Nationally, the number of new listings was down 22.7% in May compared with the previous year
And the data underscores a truth that has become increasingly evident: There’s no single, monolithic housing market. Instead, real estate has become a tapestry of regional markets, each with unique patterns.
In certain regions, particularly in the more affordable pockets of the Midwest and Northeast, inventory remains tight. Despite higher mortgage rates casting a shadow over buyers and sellers alike, homes are selling at a brisk pace, prices continue to rise, and inventory remains relatively low compared with previous years.
Compare that to the West and South, where hot markets like Austin, TX, Nashville, TN, and Sarasota, FL, have seen inventory more than double compared with this time last year. These pandemic-era boomtowns have been on a roller coaster when it comes to pricing, inventory, and demand.
Nick Libert, a real estate agent with EXIT Strategy Realty in Chicago, calls this a “balanced-stagnant market.”
Elevated rates have put the brakes on the overall housing market activity, from the perspective of buyers and sellers, but a bridled demand is still very much present.
“Not a lot of people are moving,” Libert says. “Part of the reason is there’s very little to look at.”
So let’s take a look at the biggest markets to see what’s what in different parts of the country.
We found where inventory is up and down the most in the 100 largest U.S. metros by going through the Realtor.com monthly housing market data to compare inventory in May 2023 with May 2022. We selected just one per state to ensure geographic diversity. (Metros include the main city and surrounding towns, suburbs, and smaller urban areas.)
Where inventory has risen the most
1. Sarasota, FL
May 2023 year-over-year active listings change: +128.1% May 2023 median list price: $549,900
What a difference a year makes.
Located on the southwestern coast of Florida, known for picturesque white-sand beaches and barrier islands along its Gulf of Mexico shoreline, the Sarasota metro experienced the biggest year-over-year jump in inventory. There were nearly 2.3 times the number of active listings, at just shy of 4,600, this May compared with last.
Unsurprisingly, homes are sitting on the market almost twice as long, now taking about 7.5 weeks to sell.
This midsized metro, which serves as the spring training destination for the Baltimore Orioles, is relatively expensive compared with much of Florida. Median list prices are about 9% above the median state price—only Miami is priced higher.
Carissa Pelczynski, a real estate agent at Preferred Shore in Sarasota, says the attitude of many of the out-of-town buyers who were driving prices up during the pandemic has shifted in the past several months.
“People are just more hesitant now,” Pelczynski says.
Also adding to the inventory glut, according to Pelcynski: Too many sellers are pricing their homes as if the market were still as hot as it was a year or two ago. (It’s not.)
2. Nashville, TN
May 2023 year-over-year active listings change: +124.7% May 2023 median list price: $580,000
Music City is the next stop on our list, with a jump in inventory almost as large as Sarasota’s. This icon of the South is home to the Grand Ole Opry and the Country Music Hall of Fame, and it’s an increasingly popular destination for buyers.
What’s especially notable about Nashville right now is that even as inventory is more than double what it was this time last year, in May the price per square foot hit an all-time high. It surpassed the previous high mark in June 2022.
Homes in Nashville are generally larger than average, with a median size of almost 2,200 square feet. It’s also about 15% more expensive than the national median price per square foot.
A recently listed, 500-square-foot condo just southeast of downtown Nashville and within walking distance of the Cumberland River is around $515,000.This newly constructed, four-bedroom townhome is on the market for about $600,000.
Watch: The Best Cities in the U.S. for Home Sellers Right Now
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3. Austin, TX
May 2023 year-over-year active listings change: +112.5% May 2023 median list price: $583,751
It seems no list of real estate superlatives is complete without Austin. The Lone Star State’s capital city had become one of the hottest markets in the country during the pandemic, with demand—and as a result, prices—exploding. Builders raced to put up homes in the area.
But when mortgage rates rose in 2022, the Austin market was one that cooled the most, with list prices falling 15% from May 2022 to January of this year. Since then, prices have been creeping back up, now at 9% below last year’s peak.
Even as prices are back on the rise, the typical Austin home is on the market for eight long weeks before selling, compared with just two weeks during the spring 2022 pandemic pump peak.
No place on our list has a larger portion of listings that have had a price reduction, with more than 1 in 3 listings having been discounted by the seller.
The number of homes available in the Austin metro is back to pre-pandemic levels, thanks in part to the boom in new construction.
4. New Orleans, LA
May 2023 year-over-year active listings change: +81.0% May 2023 median list price: $345,000
The number of homes available in the Big Easy has earned it a place on our list, with an 81% increase.
Worth noting: By this same time last year, New Orleans inventory was already back on the rise. Measuring from the inventory low point, New Orleans has also seen the number of available homes more than double.
The inventory increase hasn’t quite put it back to pre-pandemic levels, but if the upward trajectory continues, New Orleans should reach that milestone in the coming months.
And although list prices in New Orleans haven’t been as swingy as they’ve been in a place like Austin, they have crept back up—and are now less than 1 percentage point shy of the all-time high set in March 2022.
A newly listed, midcentury boathouse on New Orlean’s iconic Lake Pontchartrain can be found for about $375,000.
5. Tulsa, OK
May 2023 year-over-year active listings change: +74.1% May 2023 median list price: $369,450
There are plenty of homes for sale in Tulsa—they just aren’t the more affordably priced properties that buyers are seeking.
“We have so much more inventory right now, and we just have less buyers,” says local real estate agent Tiffany Johnson, of Tiffany Johnson Homes.
It’s a price point game, she says. “You can’t find anything under $150,000, and anything under $300,000 is selling quickly.”
The market has shifted a lot since last year, especially for sellers who now face more competition.
“The buyers who are in the market are very serious. They will make a move quick, but they have so many houses to choose from, so [sellers and agents ] have to be almost perfect,” Johnson says. “They have to find ways to actually market these homes now.”
Rounding out the top 10 metros where the number of homes for sale has increased the most is Raleigh, NC, at 72.7%; Wichita, KS, at 59.8%; Las Vegas, at 57.5%; Greenville, SC, at 57.1%; and Omaha, NE, at 54.4%.
Where inventory is down the most
1. San Jose, CA
May 2023 year-over-year active listings change: -35.3% May 2023 median list price: $1,530,000
Topping the list of places where inventory is tightest is Silicon Valley’s San Jose. The tech hub is one of the most expensive metros in the nation, with a median price tag of $1.5 million.
Posing another hurdle for buyers: The number of homes for sale is still near record lows. The metro area, with more than 2 million people, had fewer than 1,000 homes for sale in May.
Tuan Tran, a Realtor® at Home Page Real Estate in San Jose, sees changes in this unique and wealthy home market amid turbulence in the tech business.
“Now I see a lot of investors holding back,” Tran says, adding that they are waiting to see whether a tech recession runs deeper. “Inflation is still high. Paychecks haven’t gotten much bigger.”
2. Hartford, CT
May 2023 year-over-year active listings change: -26.0% May 2023 median list price: $424,925
Hartford topped our list of markets that will dominate in 2023, and the low home inventory seems to be proving us right.
Buyers from around the Northeast have poured into the “Insurance Capital of the World,” about 90 minutes southwest of Boston and 2.5 hours northeast of New York City, due to the reasonably priced homes for sale and good jobs available.
The city has the fewest price reductions of any city, with only 1 in 14 listings with a markdown.
In another sign of the market’s strength, Hartford boasts the fastest-selling homes of any place on our list, with the typical home spending just 19 days on the market. That’s less than half the national median time of 43 days in May.
3. Milwaukee, WI
May 2023 year-over-year active listings change: -23.4% May 2023 median list price: $374,950
The housing markets in many traditionally affordable, Midwestern cities, like Milwaukee, have continued to chug along, while other pricier markets have sputtered or stalled.
In May, there were 23% fewer homes for sale than the year before. And the median home in Milwaukee is selling in 29 days, just four days more than the all-time low of 25 days in May 2022.
Another indicator of the overall strength of the Milwaukee market: The relatively small portion of homes that have had a price reduction. Only 1 in 10 is marked down.
For those considering selling in Milwaukee, the metrics suggest a quick sale, likely without a price drop, is still the norm right now. Buyers might want to consider this updated, three-bedroom, two-bathroom Cape Cod for about $225,000.
4. Dayton, OH
May 2023 year-over-year active listings change: -20.3% May 2023 median list price: $234,950
Dayton, a Rust Belt city bout an hour northeast of Cincinnati, is the most affordable of all the cities on our list, with prices 45% below the national median. The “Gem City” is home to the National Museum of the U.S. Air Force.
In contrast to what we’ve seen in the markets that got hot during the pandemic pump, prices in Dayton have been steady: no big swings up or down, but a rather steady and slight incline.
Dayton’s median listing price per square foot in May was up 6.7% year over year.
Buyers can find big deals in Dayton. This four-bedroom, 2.5-bathroom house on a third of an acre is for sale for $219,000.
5. Chicago, IL
May 2023 year-over-year active listings change: -18.5% May 2023 median list price: $376,000
The Windy City features near-record low inventory right now.
The number of available homes crept up by about 2% from April to May. But aside from the February 2022 nadir in inventory, there haven’t been this few homes on the market in Chicago in recent history. (Realtor.com listing data goes back to mid-2016.)
“Currently, what my buyers are seeing—and my sellers are experiencing—is that the north side of Chicago, along the lakefront, has, by far, the most pronounced drop,” says Libert of EXIT Strategy Realty in Chicago.
The rest of the top 10 metros with the largest decrease in inventory were Washington, DC, at -15.6%; Bakersfield, CA, at -13.2%; Albany, NY, at -13.1%; Allentown, PA, at -12.5%; and Seattle, at -10.8%.
Shaun Donovan, the former secretary of the U.S. Department of Housing and Urban Development (HUD) and former director of the U.S. Office of Management and Budget (OMB), has been appointed CEO of Enterprise Community Partners, a national housing nonprofit that aggregates housing investments, advocates for housing policies and builds and manages communities.
Donovan, who served during the full eight years of the Barack Obama administration, bring to the role nearly three decades of housing policy and community development initiative experience. Prior to serving as HUD Secretary from 2009 to 2014, Donovan served as the New York City Department of Housing Preservation and Development commissioner under Mayor Michael Bloomberg.
“Coming to Enterprise is, in a way, coming home for me,” Donovan said in a statement. “Housing touches everything in a person’s life. A good education, a good job, a healthy, prosperous life – all of it revolves around having a safe, stable place to live. Unlike any other time in my life, housing affordability is on the national radar. It’s a moment I’ve been preparing for throughout my whole career. I am honored to work with my new colleagues, our partners, developers, and investors to achieve our shared vision of a country where home and community are stepping stones to so much more.”
In 2020, Donovan launched a campaign to run for mayor of New York City. He raised significant amounts of money early in the process, but ultimately lost to current incumbent Eric Adams.
Donovan later joined the Ford Foundation as a senior fellow in the summer of 2022. He currently serves as a trustee of the Urban Institute, Regional Plan Association, Greater NY and Rethink Food and sits on the advisory board for Opportunity Insights.
“Enterprise has in Shaun a leader who understands how to use the runway this organization has built as a catalyst for solving some of the toughest challenges this country has ever faced,” said Phyllis Caldwell, the Enterprise board vice-chair. “Drawing from his experience, Shaun understands the complex way promoting an affordable home intersects with transportation, workforce training, health, and the environment. He’s able to view the full picture of how these factors come together – and will bring that to bear at Enterprise.”
Donovan will assume his new position in September. The organization’s interim co-CEOs Lori Chatman and Drew Warshaw will continue to serve in their roles as president of Enterprise’s Capital division and chief operating officer, respectively.
Enterprise says it has invested $64 billion since 1982 and has created roughly 1 million homes across all 50 states, Puerto Rico and the U.S. Virgin Islands.
If you follow us on TikTok or Instagram (@mortgageeasier), our Employee Spotlight may look familiar. Kristen Karam works in our Marketing department as one of our Social Media Strategists creating the fun content you’ve all come to know and love. We sat down with Kristen to learn more about her; take a look below.
Where are you from originally? I’m originally from upstate NY. I went to college in LI at Stony Brook University before ending up in CT.
What brought you to Total Mortgage? I joined total mortgage because I love the work environment. Before my 1st interview, I could tell that Total Mortgage truly cares about its employees. I have never felt more supported than I do here at Total Mortgage. I am so grateful to be a part of the team and to be able to work with such incredible people.
What was your first job? My first job was working as a Lifeguard in HS at the Corning YMCA in upstate NY.
What’s a fun fact about you? I’m a stand-up comedian in NYC!
Do you have any nicknames? Everyone calls me “Krick” which is short for “Kricket”. When I was like 7 I ate a cricket because some kids dared me to and since then the name stuck.
What do you enjoy doing in your free time? I love practicing guitar, writing jokes, hiking, reading, and playing call of duty.
What’s one thing you’re proud of? Buying my first house/ investment property at age 25 with my girlfriend Annie. You can read about that here.
What is the first thing you would do if you won the lottery? I would use it to invest in Real Estate and go on vacation to the Maldives.
What’s on your road trip playlist?
Earth, Wind, and Fire
Peter Frampton
Hootie & the Blowfish
Kendrick Lamar
Stevie Nicks
Tyga
SZA
Tch N9ne
ODESZA
Red Hot Chili Peppers
The Eagles
If someone were to come to your town, what is one local spot you would send them to & why? I was born in Elmira, NY. Unfortunately, there isn’t much left there now. I would recommend my favorite pizza place, Pudgies! They have the best pizza I have ever had in my life.
It looks like Rock & Roll Hall of Famer Billy Joel isn’t in such a New York state of mind these days.
The New York native recently listed his trophy property on the very posh Oyster Bay Harbor for a hefty $49 million.
The 26-acre estate, known as Middlesea, comprises the original 14-acre property the musician bought for $22.5 million in 2002 and the adjoining parcels he’s picked up over the years, according to the Wall Street Journal. It comes with more than 2,000 feet of frontage on Centre Island.
The highlight of the estate is an elegant, 20,000-square-foot main house with spectacular water views.
There are five bedrooms, six full baths, two half-baths, a playroom, a spa and hair salon, a bowling alley, and a wine cellar. There’s also an indoor pool, which Joel has covered up so he could use the space as a music room, because of its excellent acoustics, according to listing agent Bonnie Williamson, of Daniel Gale Sotheby’s International Realty.
Parts of the main house are being renovated and are expected to be completed within the next several months.
The estate also features a three-bedroom beach house, a three-bedroom guest apartment, and a four-bedroom gatehouse.
Other luxe amenities include a floating dock and boat ramp, two outdoor pools, and a helicopter pad.
You might be wondering why, after spending more than 20 years developing this trophy property so close to his hometown of Hicksville, also on Oyster Bay, the musician would let it go. The Journal reports that Joel, wife Alexis Roderick, and their two young children are spending more time in Florida.
Joel purchased a $22 million Florida estate in 2015 and reportedly owns a Sag Harbor, NY, property. So it appears the music titan will not be moving out of New York completely.
Joel, 74, is a multiple-Grammy winner and one of the world’s bestselling artists of all time.
While it’s hard to compare the current possible housing crisis to the very real one experienced about a decade ago, there are fears of negative market impact due to COVID-19.
We’ve already seen listing prices fall, along with a big jump in delistings, where home sellers pull their properties off the market.
And home purchase mortgage applications continue to plummet, especially in large metros like LA, NY, and Seattle, per the MBA.
Meanwhile, real estate brokerage Redfin revealed via an SEC filing that it was laying off 7% of its workforce, which could result in roughly 236 job losses.
Then we have Wells Fargo curtailing its mortgage menu, and ARMs pricing higher than fixed-rate mortgages.
The number of mortgages in forbearance has also surged 1000%, and is likely to get a lot worse the longer this goes on.
The real estate and mortgage industry certainly isn’t operating as usual, and it’s even reminiscent of times back in the early 2000s.
Temporary Inability to Pay the Mortgage?
The housing crisis a decade ago was driven by shoddy financing
Such as stated income, option ARMs, interest-only loans, and so on
This potential crisis is being driven mostly just by loss of income due to COVID-19
As long as it’s temporary it shouldn’t create too many problems for the housing market
This time around, the number one issue is inability to make mortgage payments due to loss of income or unemployment as a result of coronavirus.
Either companies have laid off staff due to a loss of business, or small business owners have taken a hit because they’ve had to close up shop.
Others might just be experiencing a temporary loss of income or a pay cut while companies navigate the uncertain waters ahead.
Whatever the situation, the problem seems to center around capacity to pay, as opposed to being overleveraged, or holding a home loan with some creative financing terms like interest only or an exploding ARM.
Homeowners could mostly afford their monthly mortgage payments before this unforeseen event took place, unlike the crisis that took place in the early 2000s.
Back then, borrowers took out mortgages they couldn’t afford, and serially refinanced them as their inflated home values grew.
Today, many homeowners have a sizable equity cushion, partially because cash out refinance volume has been very low, and also because home prices have risen a ton over the past decade.
This puts them in a much better position than those homeowners from 2006 who purchased a property with zero down financing and stated their income on the application.
That’s the good news. The bad news is many housing markets were already vulnerable before COVID-19 hit, and thus could see some an uptick in foreclosures if this plays out for a long period of time.
Almost Half of the 50 Most Vulnerable Counties Are in Florida and New Jersey
14 of the highest risk counties can be found in New Jersey
Several are also located in the NYC suburban area
Another 10 are in Florida, mostly in the central and north part of the state
Others are scattered along the Mideast coast
So where are the potential foreclosure hotspots, once any coronavirus-related moratoria disappear?
Well, a new “Special Coronavirus Market Impact Report” released by ATTOM Data Solutions found that half of the most vulnerable counties reside in Florida and New Jersey.
They rank market risk by looking at three main factors:
– Percentage of housing units receiving a foreclosure notice in Q4 2019 – Percentage of homes underwater (LTV 100 or greater) in Q4 2019 – Percentage of local wages required to pay for major homeownership expenses
As we know from the prior mortgage crisis, payment default was driven by homeowner equity to some degree, with underwater borrowers often throwing in the towel because they had nothing to lose.
This was further exacerbated if they didn’t have the money to make mortgage payments, or if they were simply overextended.
Finally, if a foreclosure notice was already received before the coronavirus pandemic took place, it’s clearly a bad sign for a situation that likely just got worse.
As for which counties are on alert, there are 14 in New Jersey, such as Camden and Ocean, along with five in the New York City suburban area: Bergen, Essex, Passaic, Middlesex, and Union counties.
And there are 10 counties in Florida, mostly in the northern and central portions of the state, including Clay, Flagler, Hernando, Lake, and Osceola counties.
Additional New York counties include Orange, Rensselaer, Rockland, and Ulster.
There are also a handful of counties in the top 50 in Delaware, Louisiana, Maryland, North Carolina, South Carolina, and Virginia.
Only Seven Risky Housing Markets in the Midwest and West
The housing markets in the Midwest and West appear to be stronger overall
The only high-risk markets are in Illinois, mostly the Chicago metro
Along with Shasta County, CA, which is just south of Oregon
And Navajo County, AZ, in the northeast part of the state
Things appear to be a lot better in the Midwest and West, with just seven counties total landing in the top-50 most vulnerable list.
Every single Midwestern county can be found in Illinois, including Kane, Lake, McHenry, Tazewell, and Will.
Most are in the Chicago metropolitan area, a region that has never really seen massive amounts of home price appreciation since the crisis.
In terms of the West, only two counties made the top-50, including Shasta County, CA and Navajo County, AZ. Both aren’t major metros.
The report also revealed that counties where median home prices range from $160,000 to $300,000 account for 36 of the most vulnerable counties.
Meanwhile, counties with median home prices below $160,000 or above $300,000 made up just 14.
This is because those with median prices below $160,000 are among the most affordable, while those priced above $300,000 have some of the highest home equity amounts, and thus the lowest foreclosure rates.
The takeaway here is that most of the country looks pretty good overall with regard to housing market risk.
That could change depending on how long things play out, but there are plenty of mortgage relief programs available, including a 6-12 month forbearance via the CARES Act.
As long as this is somewhat temporary, and most homeowners get back to work, it should be a momentary blip.
A country house built in 1690 in Old Lyme, CT, is the oldest home on the market this week on Realtor.com®.
Offering “peek-a-boo” views of the Connecticut River, this charmer boasts period details like wide-plank flooring, wood paneling, and built-in bookshelves.
Other vintage gems to hit the market this week include a property with history in New Hampshire, an affordable Colonial in Connecticut, and a pre-Revolutionary War farmhouse in New York.
Scroll down for a full look at this week’s 10 oldest homes.
Price: $615,000 Year built: 1690 Country charmer: This 2,802-square-foot dwelling has been thoughtfully updated.
The cozy family room has a fireplace and lots of built-ins. The dining room features wood-paneled walls, an exposed-beam ceiling, and wide-plank flooring. The bedrooms are upstairs, with the primary featuring windows that overlook the backyard.
The 3-acre property comes with two barn-style garages, including one with a sauna, and the stone patio is equipped with a pizza oven.
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Price: $629,000 Year built: 1700 Charter Sycamore Farm: This restored, stone farmhouse offers built-in cabinets, a wood-burning stove with a wood mantel, and detailed millwork.
The four-bedroom home has a living room with wide-plank flooring and a fireplace. The dining room features a wood-burning stove, wainscoting, and built-in cabinetry. The family room has a wood-beamed cathedral ceiling with skylights, an exposed brick wall, a wood-burning stove, and a built-in bar. The updated kitchen features French doors that open to a multilevel deck.
The oversized primary bedroom upstairs boasts a cathedral ceiling, a walk-in closet, and a sitting area.
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Price: $699,000 Year built: 1702 Stoney Croft Farm: This four-bedroom Cape has been updated over the years and offers 2,640 square feet of living space.
It features “wide-plank chestnut floors, exposed wooded beams, a center chimney, beehive oven, and five fireplaces,” according to the listing.
The kitchen has custom cabinets, soapstone countertops, and stainless-steel appliances. A modern, two-story addition offers a bright and airy den, which opens to an oversized patio designed for entertaining. Two primary bedrooms have their own private bathroom.
The 69-acre lot comes with a stable with a hayloft, and a carriage garage with storage space.
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Price: $1,998,000 Year built: 1714 Cedar Hill Farm: This 75-acre parcel is anchored by a sprawling farmhouse with four bedrooms and 3.5 bathrooms.
The original brickwork and woodworking, as well as wide-plank flooring, run throughout the 3,500 square feet of living space. A guest suite with a separate entrance can be found at the back of the house.
“This land was originally settled by John Bigger and the property was known as Bigger Plantation,” the listing notes.
The property also comes with a one-bedroom guesthouse and a one-bedroom cottage. There are two wooden bridges and multiple outbuildings, including a carriage barn, a six-stall horse stable, and an indoor riding arena.
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Price: $895,000 Year built: 1720 Bartlett Homestead: This four-bedroom beauty is the former home of Mary Bartlett, wife of Josiah Bartlett, the second person to sign the Declaration of Independence.
The 3,644-square-foot space features period highlights, including exposed-beam ceilings, three fireplaces, wide-plank flooring, and built-in cabinetry.
The updated kitchen offers high-end appliances, custom cabinets, and a large center island with seating. The sunroom is surrounded by windows and opens up to a roomy patio. The former root cellar nearby has been transformed into a stunning wine cellar.
The 4.7-acre property includes a skating pond and a barn with stables.
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Price: $1,100,000 Year built: 1720 Sweet stone home: This adorable abode on 33 acres comes with lots of charm and character.
A look back at the three-bedroom home’s history can be found throughout the 3,610 square feet of living space. There are preserved, wide-plank floors, a built-in window seat, arched ceilings, and wood-paneled walls.
Restored to its original grandeur, the dwelling also features a living room with an original fireplace. Another fireplace can be found in the dining room.
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Price: $925,000 Year built: 1725 Expanded antique: This three-bedroom home offers exposed beams, wide-plank floors, and three fireplaces.
The 3,946 square feet of living space includes a modernized kitchen with skylights, a wood stove, custom cabinets, and stainless-steel appliances. The cozy living room has a stand-alone fireplace, and the two-story addition offers extra space for entertaining.
The primary suite comes with a gas fireplace, built-in shelves, a soaking tub, and access to a private terrace.
The home has an attached four-car garage, and there’s a chicken coop on the 1-acre parcel.
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Price: $1,795,000 Year built: 1726 Hidden Pond: Offering views of the Delaware River Valley, this three-bedroom farmhouse has been thoughtfully preserved.
The beamed family room features wide-plank flooring and built-in bookcases. The formal living room has a fireplace, and the first-floor office comes with a private entrance. The newly renovated kitchen has a large center island, Mexican terra-cotta flooring, and French doors, which open to the terrace. The bedrooms are upstairs.
The 73-acre property includes a one-bedroom stone cottage, two barns, a tack room, and other outbuildings. The grounds feature beautiful landscaping, and there’s also a pond, stream, and pool.
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Price: $399,900 Year built: 1730 Three-bedroom Colonial: This affordable abode is one of the oldest homes in town. It comes with wide-board chestnut flooring and three fireplaces.
The structure will need some restoration work. The cozy living room has a walk-in fireplace, the library features built-in bookcases, and the bedrooms have arched ceilings.
The 5-acre property is surrounded by a nature preserve, the listing notes.
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Price: $2,395,000 Year built: 1759 Nord Farm: This stunning, pre-Revolutionary War farmhouse features historic details and luxurious amenities.
The New England-style, 3,360-square-foot home comes with restored chestnut flooring, original wood-beam ceilings, an original staircase, and five fireplaces. Luxury appointments include stone flooring, a built-in dog bed, and a chef’s kitchen with a marble-top island and high-end appliances.
The primary suite is upstairs and has original beams and flooring, and the family room could be used as an additional bedroom.
The 11-acre property includes an original barn, which is being used as a gardening shed that features a full-size golf simulator.