About Zillow:

Zillow, Inc. Z, +1.77% operates the largest home-related marketplaces on mobile and the Web, with a complementary portfolio of brands and products that help people find vital information about homes, and connect with the best local professionals. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow’s Chief Economist Dr. Stan Humphries. Dr. Humphries and his team of economists and data analysts produce extensive housing data and research covering more than 450 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. The Zillow, Inc. portfolio includes Zillow.com®, Zillow Mobile, Zillow Mortgages, Zillow Rentals, Zillow Digs®, Postlets®, Diverse Solutions®, Mortech®, HotPads™, StreetEasy® and Retsly™. The company is headquartered in Seattle.

Zillow.com, Zillow, Postlets, Mortech, Diverse Solutions, StreetEasy and Digs are registered trademarks of Zillow, Inc. HotPads and Retsly are a trademarks of Zillow, Inc.

i Total rent paid is calculated by first estimating the number of renter households in 2014 in each metro based on 2013 metro-level data and 2014 national data. We then take the sum of all the monthly Zillow Rent Indices in 2014 and multiply it by the estimated number of households. Forecasting was used to calculate value change during December 2014. Lastly, results are then scaled by a rental stock adjustment factor which controls for differences in the footprint between the rental stock and the total housing stock.
ii Zillow based this analysis in part on data available at the local and national level from the American Community Survey (ACS) and the Current Population Survey (CPS). Full local and national data was available on number of renters from the ACS for 2013, but was unavailable for 2014 at the time this analysis was conducted. Zillow used the 2014 CPS to determine overall growth in number of renters between 2013 and 2014, but this data was only available on the national level. For purposes of this analysis, we assumed the total number of renters in each local market grew at the same pace as the nation as a whole, or 1.9 percent year-over-year.
iii Monthly payment change per household accounts for additional renter households added in 2014.

          The aggregate value of all homes nationwide is expected to be approximately $27.5 trillion by year’s end, up more than $1.7 trillion (6.7 percent) year-over-year and the third consecutive annual increase. It is a testament to just how huge and important the housing sector is to the overall economy that gains of more than a trillion dollars in one year represents only single-digit percentages of the total market. Humphries says.

          Still, as massive as the current overall value of housing is in the U.S., the aggregate value of all homes remains 6.1 percent below the Q3 2006 peak of almost $29.3 trillion. This makes sense, as the median home value nationwide is still down almost 10 percent from its pre-recession high.

          But just as median home values in several local markets across the country – including Denver, Pittsburgh and a handful of Texas metros – have exceeded their prior peaks, so too have aggregate home values in a few large markets. In nine of 35 largest metro areas covered by Zillow, the total value of all homes in the area is at or above prior peak. Many of the same areas where median home values are above peak are also the same as where aggregate values are at peak, including Denver and a collection of Texas markets (Dallas, Houston and Austin).

          Although home values to continue to grow, they are rising much more slowly than earlier in the year, currently at a pace last seen in mid-2013. Over the next 12 months, from November 2014 to November 2015, home values are predicted to rise 2.4 percent, to slightly less than $182,000.

          Slowing home value appreciation has been driven in large part by more for-sale inventory coming on line in recent months, which is helping to bring the supply of homes in line with demand. This has been welcome news for buyers that were previously competing with each other and with cash-rich investors for a very limited number of homes. However, inventory has been drifting downward on a monthly basis for the past two months.

          The November Zillow Real Estate Market Reports cover 522 metropolitan and micropolitan areas. In November, 392 (75 percent) of the 522 markets showed monthly home value appreciation, and 434 (83 percent) saw annual home value appreciation. Among the 35 largest metro areas covered by Zillow, 34 experienced annual home value appreciation. Overall, national home values remain 9.6 percent below the market’s April 2007 peak.

          Areas with the largest annual gains in home values in November included Miami (13.6 percent), Atlanta (12.8 percent), Houston (11.9 percent), Orlando (11.9 percent) and Las Vegas (11.5 percent).

          Currently, U.S. rents are up 3.4 percent year-over-year, according to the Zillow Rent Index (ZRI), which covers 864 metropolitan and micropolitan areas and the nation as a whole. Rents rose year-over-year in 654 markets (75.7 percent). Large markets that saw extremely strong annual rent appreciation include San Francisco (15.5 percent), San Jose (15.2 percent), Denver (10.1 percent), Kansas City (8.3 percent) and Austin (7.7 percent).

           As rents continue to rise, rental affordability will continue to suffer. In the third quarter, renters making the national median income could expect to pay 29.9 percent of their monthly income to rent the typical U.S. property, well above the 24.9 percent they would have paid in the pre-bubble period from 1985-1999. Continuously rising rents nationwide could drive more people into the home-buying market, attracted by stable monthly payments and cheap financing because of low mortgage rates, but they also make it more difficult for potential first-time buyers (and current renters) to save for a down payment.

           In general, national for-sale inventory levels remain below peak levels, though they have been higher in 2014 compared to 2013. In November, U.S. inventory of for-sale homes grew year-over-year by 11.8 percent. Inventory rose on an annual basis in 464 of 641 metro areas (72 percent). But inventory has drifted downwards on a monthly basis for the last two months, falling 1.7 percent nationwide in November from October.

          Of the largest 35 metro areas covered by Zillow, 25 of 35 saw annual gains in for-sale inventory, while 30 of 35 saw monthly declines. In 20 of the largest 35 metro areas, inventory both rose annually and fell on a monthly basis. The metro areas seeing the largest annual changes in inventory were Riverside (42.6 percent), Orlando (40.2 percent), Sacramento (37.4 percent), Washington (35.4 percent) and San Diego (33.2 percent). Areas with the largest monthly declines in inventory were San Jose (down 11.8 percent), Denver (down 9.8 percent), San Francisco (down 7.9 percent) and Seattle (down 5.5 percent).

          The rate of homes foreclosed continued to decline in November, with 4.2 out of every 10,000 homes in the country being liquidated. This number is down from 5.2 homes one year ago. Nationally, foreclosure re-sales rose slightly, making up 8 percent of all sales in November, compared to 7.6 percent in October and 7.4 percent in November 2013. We expect the percentage of foreclosure re-sales to continue to increase slightly throughout the winter months, mainly due to overall seasonal declines in inventory.

          The housing market continues to recover and home values are predicted to continue to rise, but at a slower pace. Our forecast calls for another 2.4 percent appreciation from November 2014 to November 2015 for the nation, less than half the appreciation rate seen between November 2013 and November 2014.

          This slower pace will help bring more balance to the market, as more previously sidelined sellers decide to list their homes, and more buyers enter the market – particularly younger buyers. These buyers will find themselves with more leverage in the market, after years in which sellers largely held the upper hand in negotiations.

          Out of the 35 largest metro areas covered by Zillow, we expect to see home values rise the most in Riverside (6.2 percent), Las Vegas (5.9 percent), Dallas (5.1 percent) and Seattle (5.0 percent). Both Las Vegas and Riverside are still over 30 percent down from peak home values, and have lots of room for home values to grow. Dallas is currently the most expensive it has ever been (nominally), while Seattle home values are down 11 percent from their August 2007 peak.

By Shobhana Chandra

Prices paid by American consumers dropped in November by the most in almost six years, providing a boost to buying power that will propel economic growth.

The cost of living fell 0.3 percent, the most since December 2008, after being little changed the prior month, according to Labor Department figures issued today in Washington. The retreat was led by a plunge in fuel that is continuing to unfold.

The cheapest gasoline since 2009 and a strengthening job market lifted weekly paychecks in November by the most in six years, one reason why companies such as Delta Air Lines Inc. (DAL) are enjoying a cheerful holiday season. A stronger economy combined with inflation that is lower than the Federal Reserve intends represents a challenge for policy makers who are trying to determine whether and when to raise interest rates.

“The consumer is getting a well-deserved break,” said Stuart Hoffman, chief economist at PNC Financial Services Group Inc. in Pittsburgh, who is among the most accurate CPI forecasters over the past two years, according to data compiled by Bloomberg. “We’re seeing a little more wage growth, more jobs, better confidence and finally a price break at the pump. It adds up to a very strong holiday season.”

Stocks rose as energy shares rebounded a second day and investors speculated Fed policy will continue to support economic growth. The Standard & Poor’s 500 Index climbed 0.9 percent to 1,989.95 at 11:22 a.m. in New York.
Annual Gain
Consumer prices rose 1.3 percent over the past year, the smallest gain since February and down from a 1.7 percent annual advance the prior month, according to the Labor Department.

The median forecast of 84 economists surveyed by Bloomberg projected the CPI index would drop 0.1 percent. Estimates ranged from little change to a 0.3 percent decrease.

Energy costs decreased 3.8 percent from a month earlier, led by a 6.6 percent plunge in gasoline that was the biggest drop since December 2008. Food prices rose 0.2 percent.

Excluding volatile food and fuel, the so-called core measure rose 0.1 percent in November, bringing the advance over the past year down to 1.7 percent from 1.8 percent in October. The gain matched the median forecast of economists surveyed by Bloomberg and followed a 0.2 percent increase the prior month.

Rising rents, medical care and airline fares were almost completely offset by the biggest drop in clothing costs in 16 years and the largest fall in prices for used cars and trucks since September 2012.

Fuel Bills
Households’ fuel bills continue to fall this month. The average cost of regular gasoline at the pump dropped to $2.51 a gallon on Dec. 16, the cheapest since 2009 and down from this year’s high of $3.70 reached in April, according to AAA, the biggest U.S. auto group.

Those lower prices mean Americans can spend more elsewhere. Retail sales rose 0.7 percent in November, the most in eight months, as consumers snapped up electronics, clothing and furniture, Commerce Department figures showed. Industry data also indicate demand for vehicles remains robust.

The decline in the cost of living helped boost paychecks. Hourly earnings adjusted for inflation rose 0.6 percent on average after a 0.1 percent increase the prior month, a separate report from the Labor Department showed. On a weekly basis, they were up 0.9 percent, the biggest advance since November 2008.

Some of the nation’s trading partners are also seeing improvement. U.K. unemployment fell in the three months through October and basic pay grew faster than inflation for the first time since 2009, data showed in London today.

Air Fares
Atlanta-based Delta is among companies benefiting from both the drop in fuel costs and gains in spending.
“We continue to price to demand,” Edward Bastian, the carrier’s president, said in a Dec. 11 teleconference with investors. “Demand is very solid.”

That means that the airline will “be able to secure as much if not all of that fuel savings directly to the bottom line for 2015,” he said. Delta’s shares were up 65 percent so far this year through yesterday.
The Fed’s preferred price gauge, which is issued by the Commerce Department and is linked to consumer spending, rose 1.4 percent in October compared with the same month last year and hasn’t been above the central bank’s 2 percent goal since March 2012.

Fed Chair Janet Yellen and her colleagues, weighing when to raise rates, are likely to focus on a jobless rate that’s fast approaching their goal for full employment, even as declining oil prices hold inflation below their target, economists said.

Fed Meeting
Policy makers, at their meeting yesterday and today, will look past low inflation and drop a pledge to keep interest rates near zero for a “considerable time” as the Fed seeks an exit from the loosest monetary policy in its 100-year history, analysts said. The Federal Open Market Committee will adopt a word such as “patient” to describe its approach to policy, according to 68 percent of economists surveyed by Bloomberg.

“Yellen has the support of strengthening real economic activity behind her to transition to a more flexible stance,” said Laura Rosner, a U.S. economist at BNP Paribas in New York and a former New York Fed researcher. “Yet the inflation data remain soft and require continued emphasis that the Fed will take a patient approach, that rate hikes aren’t imminent.”

By: Tim Logan

The loans, unveiled Monday, reverse a trend of tighter lending standards by the government-sponsored mortgage giants since their taxpayer-financed bailouts. The programs allow only fixed-rate loans on single-family homes used as a primary residence. “We are hoping to broaden the pool of home buyers and boost the real estate market, Fannie Mae and Freddie Mac are launching mortgage programs with down payments as low as 3%.

The move, targeting buyers with good credit but little cash, has drawn fire for encouraging the kind of risky lending that caused the mortgage meltdown and financial crisis. But Fannie and Freddie executives said the programs contain proper safeguards.

The loans, unveiled Monday, reverse a trend of tighter lending standards by the government-sponsored mortgage giants since their taxpayer-financed bailouts. The programs allow only fixed-rate loans on single-family homes used as a primary residence.

We are confident that these loans can be good business for lenders, safe and sound for Fannie Mae and an affordable, responsible option for qualified borrowers. – Andrew Bon Salle, an executive vice president at Fannie Mae

“We are confident that these loans can be good business for lenders, safe and sound for Fannie Mae and an affordable, responsible option for qualified borrowers,” said Andrew Bon Salle, executive vice president for single-family underwriting, pricing and capital markets at Fannie Mae.

The programs could give a boost to first-time home buyers, who have largely stayed on the sidelines of the housing market rebound. First-time buyers this year made up the smallest share of the housing market in 27 years, according to the National Assn. of Realtors.

“First-time home buyers have had trouble, and a lower down payment always helps,” said Mark Goldman, a mortgage broker who teaches real estate at San Diego State University.

A Federal Reserve survey released in August found that 45% of renters delayed buying a home because they couldn’t afford a down payment.

Sam Khater, deputy chief economist for housing data firm CoreLogic, predicted that the new loans would inject a bit of fuel into a housing recovery that’s stalling out. But the main problem facing buyers is sluggish growth in their wages, not down-payment requirements, he said.

Fannie and Freddie purchase about half of all new home loans from banks and package them into securities for investors. But lenders still have to make the loans, and some remain skeptical of any 3% down-payment program.

“The idea that you can get a mortgage with just 3% down is something that can get us back into bubble territory,” Russell Goldsmith, chairman of City National Corp. in Los Angeles, said in a recent interview.

Bank of America Chief Executive Brian Moynihan told a conference recently that his bank was unlikely to participate.

“I don’t think there’s a big incentive for us to start to try to create more mortgage availability where the customers are susceptible to default,” Moynihan said last month.

The Federal Housing Finance Agency, which regulates Fannie and Freddie, announced its intent to launch the programs in October. Director Melvin Watt said Monday that the 3% down-payment programs come with strong underwriting standards that ensure sound lending practices.

Borrowers can already tap a variety of low-down-payment mortgage programs, including those backed by the Federal Housing Administration and Veterans Administration, along with those from various state housing finance agencies, including California’s.

But some of those loans carry higher fees or mortgage insurance premiums that can make them costlier than conventional mortgages. The new programs from Fannie and Freddie would enable more creditworthy borrowers, even those with lower incomes, to avoid high fees and pay less for private mortgage insurance.

Since 2011, Freddie Mac has required at least a 5% down payment on loans it guarantees.

Fannie Mae, starting late last year, required a 5% down payment for most mortgages it backed, but still offered to back loans with a 3% down payment made through some state housing finance agencies.

The Federal Housing Finance Agency said the 3% down payment loans would be a small portion of the firms’ portfolios.

Fannie Mae and Freddie Mac will offer somewhat different programs.

Fannie Mae’s program, which begins Saturday, will be available to anyone who has not owned a primary residence for three years. Private mortgage insurance will be required.

Borrowers with Fannie Mae mortgages will be able to refinance under the program and can take out up to $2,000 to cover closing costs but will not be allowed to remove equity from their home.

Freddie Mac’s program, called Home Possible Advantage, will begin in March. It is open to anyone who meets certain requirements, but first-time home buyers must participate in a homeownership education and counseling program.

Homeowners with Freddie Mac mortgages could also refinance under the program, but would not be able to take any cash out as part of the process.

Fannie Mae and Freddie Mac were seized by the government in 2008 as they teetered near bankruptcy because of bad mortgages they backed.

Taxpayers pumped $187.5 billion into the companies to keep them afloat. But as the housing market has rebounded, Fannie Mae and Freddie Mac have returned to profitability.

This year, the firms finished repaying all the bailout money through quarterly dividend payments to the government. They have continued making billions of dollars in dividend payments, helping reduce the government’s overall budget deficit.

By: Trey Garrison

TransUnion forecasts that the national mortgage delinquency rate will be 2.51% in 2015 – the lowest level since the start of the recession in the third quarter of 2007.

They expect the rate to decline to 3.21% by the close of 2014.

The study also found that the credit card delinquency rate is expected to remain well below the average historical levels throughout 2015.

From a mortgage perspective, the current reduced delinquency, low interest rates and steadily improving unemployment bodes well for the housing industry and can fuel home sales, according to TransUnion.

National mortgage delinquency peaked at 6.93% in the first quarter of 2010. Since that peak, the delinquency rate has dropped almost every quarter, with minor bumps occurring in the third and fourth quarters of 2011.

“We expect the national mortgage loan delinquency rate to continue its decline throughout 2015, marking four consecutive years of quarterly decreases,” said Steve Chaouki, head of financial services for TransUnion. “We anticipate interest rates to remain relatively low next year and unemployment rates to continue their decline, both of which should help fuel home sales and improve consumers’ ability to pay. Foreclosures are also expected to continue to funnel through the legal system in 2015, which will reduce delinquencies that have been lingering for some time. All of these factors will contribute to a further decline in mortgage delinquencies.

“While we project that delinquencies will approach prerecession levels, it should be noted that they will likely remain above the historic norm of 1.5 – 2%; mortgage delinquency was rising even before the official ‘start’ of the recession. It is also important to note that the housing environment is far different now than it was when we last observed rates this low,” Chaouki said. “Regulatory requirements and scrutiny, recent home value appreciation and consumers’ prioritization of payments have all changed the landscape of consumer mortgage lending.”

TransUnion has also found that while the mortgage crisis has largely passed, lenders continue to take a conservative approach.

In fact, in the last year alone, nearly half a million fewer subprime mortgage accounts were recorded, while the total number of accounts rose by nearly half a million.

From a consumer credit perspective, debt and delinquency levels are expected to remain well below historic norms, even among subprime borrowers.

TransUnion predicts a 1.52% delinquency rate in the fourth quarter of 2014 with a rise to 1.53% by the fourth quarter of 2015.

At the same time, the average debt per borrower is expected to rise slightly from $5,363 in this quarter to $5,396 in fourth quarter 2015.

By most measures, the housing market these days is a bit sluggish. Prices are flat. Sales are drooping. A lot of people are priced out..

But not everyone. The high end is hopping.

Luxury home sales in Southern California are hitting levels not seen in decades. The number of homes bought for $2 million or more in recent months is the highest on record. Sales worth $10 million or more are on pace this year to double their number from the heights of the housing bubble.

“It’s pretty mind-blowing, to be honest,” said Cindy Ambuehl, an agent with the Partners Trust in Brentwood. “The luxury market has been completely on fire.”

Low interest rates, a strong stock market and waves of cash sloshing in from overseas are boosting demand for high-dollar homes. A record 1,436 homes worth $2 million or more were sold in the six-county Southland in the second quarter, according to CoreLogic DataQuick.

In the more recent third quarter, 1,431 were sold. That was up 14% from the third quarter of 2013, and well ahead of any three-month period in the housing bubble years of the mid-2000s. This comes even as the broader market has plateaued, with prices in the Southland still about one-fifth below their pre-crash highs and sales at less than two-thirds their 2005 pace.

It reflects a housing market that is now moving at two speeds, said Selma Hepp, senior economist for the California Assn. of Realtors. Fast for the high end, sluggish for the rest.

“It’s just a completely different story between the two segments of the market,” she said. “Those who are doing well are doing really well.”

The biggest difference in the luxury market between now and a decade ago is that the world is smaller, said Drew Fenton, an agent who specializes in high-end homes at Hilton & Hyland in Beverly Hills. Wealthy international buyers are scooping up second homes, investment properties and safe havens for their cash. And it’s easier for them to scout — and travel — the world to do so.

“Everything’s just more global now,” he said. Ten years ago “it was much harder to reach those people and they didn’t travel as much.”

Now they are, and so are the agents who cater to them. Sandra Miller, a broker at Volker & Engels in Santa Monica, last week was jet-lagged from a trip to London, where she met with nearly two dozen brokerages that represent high-end buyers. At the end of the month, she’s off to Kuwait. Every week, she has a conference call with international agents.

The Southland scores points with these buyers for its weather, its glamour and a population diverse enough that nearly any transplant can feel at home. And despite its reputation as one of the nation’s least-affordable housing markets, Los Angeles can look like a steal compared with other high-end havens.

Should have taken advantage of the “first time buyer program” for a 3.5% down. I did this in 2009 when I was 25 and put $8,500 down on a 280K fixer property in North east LA. (Between Glendale and Pasadena) Now its worth 675K with all the work I did and neighborhood appreciation….

“We talk to private wealth managers around the world who think California is a very good market right now,” Miller said. “Compared to New York or London, L.A. real estate is a bargain.”

But it’s not just foreign money that’s heating up the high end.

A surging stock market has boosted portfolios for domestic buyers in recent years, especially for those who have money to invest. Low interest rates have made mortgages cheap. And banks — still risk-averse — are offering lower rates and better terms to deep-pocketed borrowers than to cash-strapped first-time buyers. Meanwhile, wealthier households have seen their incomes grow faster than average in recent years.

Builders are recognizing this. Aliso Viejo-based home builder New Home Co. has several developments underway in Orange County targeting high-end buyers, including 6,700 square-foot five-bedroom homes in Irvine and ocean-view condos in Newport Beach.

Sales have been brisk, said Joan Marcus Colvin, New Home’s senior vice president of sales, marketing and design, especially at that Newport condo building, the Meridian, where 34 units have sold since February, at an average price of nearly $3 million. That’s without even having a model home to show customers — the site is still under heavy construction. Renderings and drone shots of the views are all that’s offered.

“It’s quite a testament to the strength of the high end of the market,” Colvin said. “These were bought sight unseen. We couldn’t even stand people there and show them it.”

But it’s the first new home development in Newport Center in a quarter-century, Colvin said, so there’s demand. And income growth has been strong in coastal Orange County, minting new buyers for high-dollar homes. The same trend is happening in places less associated with luxury than Fashion Island.

High-end home sales are surging in “Silicon Beach,” too, with tech entrepreneurs and Bay Area transplants scooping up multimillion-dollar homes in Santa Monica, Venice and Marina del Rey. Many of the buyers work in the area, said Miller, and prefer walkable neighborhoods, relatively close to work, to the traditional hubs of Westside glitz.

“These people don’t want to commute an hour and a half to Beverly Hills, which is a whole 13 miles away,” Miller said.

Then there’s the formerly sleepy South Bay. The average sales price in Manhattan Beach through the first nine months of the year topped $2.2 million, said Barry Sulpor at Shorewood Realtors. That’s up from $1.85 million in the same period last year. Even empty lots in the beach town’s “Tree Section” are going for $1.3 million.

“That’s just lot value,” Sulpor said. “And as you get closer to the beach it goes up from there.”

Prices have been climbing so fast that even fairly recent buyers say they’re lucky they got in when they did. About 18 months ago, Ray Ahn and his wife bought a place half a block from the beach, a pocket listing that was never widely marketed. Before the purchase even closed, the house’s appraised value started climbing. And of the eight or so houses that neighbor Ahn’s, three have gotten high-end remodels since he moved in.

“I probably wouldn’t be able to buy here today,” said Ahn, who works for an investment firm in downtown Los Angeles.

But to live by the beach, he said, it’s worth it. So did Daphna Oyserman. She and her husband — professors who relocated from the University of Michigan to USC — spent $2.2 million in January for a house just a few blocks from the sand. They expected to pay a premium to live in a nice beach town, Oyserman said, and they did. But, although their house is “half the size at three times the price” of what they owned in Ann Arbor, Mich., Manhattan Beach offers amenities Michigan can’t.

“We thought, if we’re moving to L.A., we’d like to enjoy it,” she said. “In the morning I go for a run on the beach. When we go to sleep we can hear the ocean.”

These well-heeled professionals have played a big part in the South Bay’s surge, said Sulpor, along with those in the tech industry who prefer a more laid-back scene than Santa Monica and a growing cadre of professional athletes. Then there are young buyers who walk in with trust funds or family money.

“A lot of folks in their 20s and 30s are coming in and taking properties off the table at $3 million or $4 million,” Sulpor said. “Sometimes all-cash.”

Ambuehl said her luxury buyers also are starting to skew younger. Among her clients, tech entrepreneurs and other wealthy shoppers in their 20s and 30s are gradually replacing baby boomers, who often weren’t as young when they earned enough to afford a big-ticket house. They’re looking for different kinds of homes — often with more outdoor space — and in different neighborhoods. And, she predicts, they’ll be driving up the high end of the market for a long time.

“You’ve got 70 million baby boomers. You also have 70 million Gen Yers. They are a huge part of our buyer pool,” she said. “It’s a market we have to pay attention to.”