Morning Briefing: Most sellers get a discount from real estate agents

by Steve Randall11 Aug 2016
Most sellers get a discount from real estate agents
Real estate agents are discounting their fees for sellers in most cases according to a new report from Redfin.

The data shows that 60 per cent of those who sold their home in the past year received a discount with almost half receiving a refund or closing cost contribution of at least $100, the average being $3,693.

"While market forces are driving home prices up, innovation is helping to drive commissions and fees down," said Redfin chief economist Nela Richardson. "The fact that savings are so widespread indicates that agents and brokers are adapting by using technology to work more efficiently and charge less money."

A quarter of those who sold in the past year did so without an agent while 16 per cent of home buyers did so.

More people (57 per cent) who used an agent said they would recommend them compared with 49 per cent last year.
 
Home prices remain strong says NAR
Home prices in most metros surveyed by the National Association of Realtors have held up well according to new figures.

The median existing single-family home price increased in 83 per cent of measured markets, with 148 out of 178 metropolitan statistical areas; but affordability declined slightly despite the low mortgage rates.

“Steadily improving local job markets and mortgage rates teetering close to all-time lows brought buyers out in force in many large and middle-tier cities,” said NAR chief economist Lawrence Yun. “However, with homebuilding activity still failing to keep up with demand and not enough current homeowners putting their home up for sale, prices continued their strong ascent – and in many markets at a rate well above income growth.”

The national median single-family house price was $240,700 in the second quarter of 2016, up 4.9 per cent from the same period of 2015.
 
Mortgage apps up 7 per cent
There was a rise in mortgage applications last week. The Mortgage Bankers’ Association’s Market Composite Index was up 7.1 per cent on an adjusted basis and 7 per cent on an unadjusted basis.

The refinance index was up 10 per cent while the purchase index increased 3 per cent on an adjusted basis and 2 per cent on an unadjusted basis. The refinance share of mortgage activity increased to 62.4 percent of total applications from 60.7 percent the previous week.
 

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