More U.S. homes are selling for less than their asking price

Plus: Zillow, Redfin face privacy lawsuits over user tracking

July 02, 2024

🌟 Good morning. Happy Tuesday and welcome to today's edition!

Today's newsletter is 660 words — a 3-minute read.

1. NAR says pending home sales hit record low

In May, contract signings for homes hit a record low, dropping 2.1% from April, according to the NAR.

The pending home sales index fell to 70.8, marking a 30% decrease from 2001 levels, the year NAR began collecting this data, and a nearly 7% annual decline.

Despite this, home prices reached an all-time high of $419,300, up 6% from 2023.

Contract signings fell to an all-time low in May, according to an index measuring pending home sales.

2. Texans are spending big money on home renovations

Dallas and Houston rank in the top 10 cities for home renovation spending, according to a Pro Tool Reviews report.

The professional tool review site analyzed home renovation spending across the U.S. and determined that Texas is the No. 2 state in the country for such expenditures, with residents spending $56 billion in the past two years.

Across the country, remodelers spent more than $641 billion on home renovations in the past two years, with the most common projects relating to water heating, HVAC, flooring, plumbing, windows, and doors.

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3. Catch up quick

🤨 The housing market is ‘stuck’ until at least 2026, Bank of America warns. (CNN)

🛣️ Here's how far Houston's robust population of 'super commuters' drive to and from work every day. (InnovationMap)

🏠 Johnson Development is planning a 1,000-home master-planned community in Hockley. (CHRON)

⏱️ How long does it take minimum-wage workers to afford a home down payment? (badcredit.org)

📉 Douglas Elliman's challenges continue with mounting losses and sinking stocks. (Yahoo)

4. More U.S. homes are selling for less than their asking price

In late June 2024, U.S. homes sold for 0.3% less than their asking price, a first for this time of year since the pandemic began. One-third of homes sold above asking price, the lowest share since 2020.

New listings rose by 8.2% year-over-year while pending sales dropped by 4.3%. Over 60% of homes remained on the market for at least a month.

High costs and near-record mortgage rates deter buyers, but inflation cooling might soon reduce rates. LINK

5. Zillow, Redfin hit with video privacy lawsuits over website user tracking

Zillow and Redfin are facing data privacy lawsuits alleging that they tracked users' video content and shared this data with third parties like Reddit, Meta, and Google.

The lawsuits, filed on June 25, claim that tracking pixels were used to monitor users' interactions with video walkthroughs without their consent, violating the Video Privacy Protection Act.

The cases could become class actions involving all U.S. users who have viewed video content on these platforms. Zillow has denied the allegations, asserting that the claims are unfounded.

6. 282-acre Bosque Mountain Ranch near Clifton to hit the market

The 282-acre Bosque Mountain Ranch, or Round Mountain Ranch, is coming to market soon.

Located near Clifton, Texas, the property offers 15,000 sq ft of living space, including a 6,900 sq ft main house, a 4,200 sq ft pool house, and a large entertainment area above a barn.

Owned by Dallas real estate executive Randy Cooper, the ranch features a sports shack and fishing cabin. It was last appraised at over $2.4 million.

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