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March 2024 » thefivestar.com 75 March 2024 J O U R N A L According to the report, the percentage of Black homeowners in each of the 50 big- gest metro areas in the country is dispro- portionately low given their population. Numerous possible explanations exist for this. For instance, the most recent figures from the U.S. Census Bureau show that the median income for households led by Black people is $51,374. That rep- resents over $29,000 less than the $79,933 median income for households led by white people. Black Americans also: » (Typically) have less household wealth » Are more likely to be unbanked » Experience higher mortgage denial rates The persistent effects of practices like "redlining," which were intended to deny Black homebuyers their rights, continue to contribute to the disproportionately low rates of homeownership among Black people in modern times. However, it's crucial to remember that while these instances may help explain why Black people's homeownership rates are generally low, they do not account for every reason why a person of Black identi- ty could find it difficult to buy a home. In the end, many socioeconomic issues still contribute to this unfortunate tendency. EXPENSIVE COASTAL MARKETS HEATING UP AS SPRING APPROACHES T his spring's home shopping season will be competitive, according to Zil- low's latest market report, meaning both buyers and sellers should prepare for potential bidding wars. The report showed that affordable homes are selling quickly and that the asking prices of those that remain on the market are being lowered. "Some of the homes loitering on the market may just need the right buyer and digital curb appeal to cast a wider net, but many may be overpriced. There are slightly more homes for sale than this time last year, and there is still plenty of compe- tition for well-priced houses," said Skylar Olsen, Zillow's Chief Economist. Home Values This month, the typical home in the United States was $344,159, while the typical monthly mortgage payment—as- suming 20% down—was $1,760. » Home values are up from year-ago levels in 47 of the 50 largest metro areas. Annual price gains are highest in Hartford (12.2%), San Diego (9.6%), Providence (8.3%), Boston (8%), and Los Angeles (7.4%). » Home values are down from year-ago levels in three major metro areas. The drops were in New Orleans (-8.2%), Aus- tin (-6.2%), and San Antonio (-3.2%). The least growth was in Jacksonville, Florida (0.4%), and Dallas (0.5%). » Home values climbed month over month in 4 of the 50 largest metro areas in January. Gains were biggest in Riverside (0.2%), San Diego (0.1%), New York (0.1%), Las Vegas (0.1%), and Miami (0%). » Home values fell on a monthly basis, in 45 major metro areas. The largest monthly drops were in New Orleans (-1.1%), Minneapolis (-0.8%), Buffalo (-0.7%), Cleveland (-0.7%), and Pitts- burgh (-0.6%). » The typical mortgage payment is up 7.2% from last year and has increased by 103.1% since pre-pandemic. What trends are homebuyers seeing in 2024's market? January experienced price drops for slightly over 1 in 5 Zillow homes, about the same as the previous year but more frequent than any of the five years before. The average sold home stayed on the market for 29 days before going pending, but other homes lingered on the market for months, increasing the average age of listings on Zillow to 72 days. These decreases are putting seller expectations more in line with the current market conditions. New Listings New listings increased by 43.5% month over month in January. But even that massive jump up is relatively small com- pared to pre-pandemic January norms; new listings rose 66% monthly in 2019 and 63.4% in 2020. » New listings are up by 5.8% compared to last year. » New listings are -24.9% lower than pre-pandemic levels. The pandem- ic-era shortfall in new listings has lessened compared to the 35% deficit in April, but gains made late last year have been lost. » Metros where sellers are showing up much stronger than last year are San Diego, where new listings are up 27.7% annually, Miami (21.9%), and Riverside (20.1%). Buyers who are now taking virtual and in-person tours may be able to work out an affordable price on a home that has been waiting for them. In places where the median time on market for sold properties has decreased the most since last year; however, that is probably not the case in Las Vegas (down 32 days), Phoenix (30), and Seattle (28). So, where are the "deals" plentiful, and where are they diminishing? In affluent Western metros like Seattle, Las Vegas, Austin, and San Jose, price drops are far less frequent than they were a year ago. Markets in Florida, Texas, and Phoe- nix are where price reductions are most common. These are regions with either very minor inventory drops or overall inventories that are larger than they were prior to the epidemic, including Austin and San Antonio. Compared to previous years, there are a few more options available in today's market. While the number of new listings coming onto the market has increased by almost 6%, the overall inventory is up more than 3% from a year ago. New inventory usually increases significantly in January compared to December; this year, the monthly increase was 43%. Unfortunately, that was only a slight improvement, consistent with Januarys that haven't been very strong over the previous few years. What trends are home sellers seeing in 2024's market? According to the report, sellers con-