Posts Tagged ‘affordability’

Home Affordability Hits Lowest Level in a Decade

Posted on July 11, 2017 by Laura Lam

Affordability dropped in the second quarter, sinking to its lowest level since 2008, according to the Q2 2017 U.S. Home Affordability Index by ATTOM Data Solutions.  The median national home price came in at $253,000 in the second quarter, hitting a 9-year low in affordability at the lowest level since the third quarter of 2008, the report shows. This is up 7.7% from last year, the largest annual increase since the first quarter of 2014. As home prices increased, the average weekly wage nationwide dropped to $1,067 in the fourth quarter, down 1.4% from last year. This represents the largest annual…

New Home Sales Less Than Half of Historical Norms

Posted on June 13, 2017 by Laura Lam

The current level makes up 88.3% of the 50-year average, according to a report from Trulia. However, new home sales are unable to keep up with the rate of total sales.  How many new home sales do we need for the market to look normal?  According to Trulia Chief Economist Ralph McLaughlin, if we compare the share of new home sales to total sales, that share needs to more than double.  “In April, new home sales made up about 11.9% of all home sales, which is less than half of the historical average of 23.6%,” McLaughlin said. However other experts explain…

Home Prices Not Back To Pre-Crisis Levels

Posted on June 05, 2017 by Laura Lam

Home prices increase a little more each month, even hitting new peaks in many markets, yet experts insist they are not back at bubble-era levels.  The most recent Case-Shiller results show home prices rose 5.8% from last year to the highest pace in 33 months.  Black Knight also released its Home Price Index Report, showing home prices rose to a median $272,000 in March. This represents a new peak in home prices, and a rise of 2.3% from the start of the year. In fact, the chart from Calculated Risks shows home prices are nearing, if not level with, pre-crisis peaks, according to different measures of home…

Subprime Student Loans Resemble Pre-Crisis Mortgage Loans

Posted on April 28, 2017 by Laura Lam

Millions of U.S. parents have taken out loans from the government to help their children pay for college … now a crushing bill is coming due.  Hundreds of thousands have tumbled into delinquency and default. In the process, many have delayed retirement, put off health expenses and lost portions of Social Security checks and tax refunds to their lender, the federal government. Student loans made through parents come from an Education Department program called Parent Plus, which has loans outstanding to more than 3 million Americans. These loan applications ask almost nothing about its borrowers’ incomes, existing debts, savings, credit…

Millennials Warm Up to Homeownership

Posted on April 27, 2017 by Laura Lam

For the second year in a row, Bank of America has conducted its Homebuyer Insights Report, which explores the attitudes, behaviors and preferences of current homebuyers. This year, a major focus was on millennials who are beginning to change their perspective on home buying.  According to Steve Boland, head of consumer lending for Bank of America, they surveyed young adults who had pulled the trigger and that it was the right decision.  “They are telling their millennial counterparts who are sitting on the sideline … this is going to be a great decision, it will help with your personal and…

Millennials Locked Out of Housing Market Again

Posted on March 14, 2017 by Laura Lam

For quite some time, we’ve heard that Millennials have put off buying a home.  These reasons include student debt load, tighter lending standards, and simply not wanting to sacrifice everything for a chance to own the “American Dream.”  Whether Millennials actually want to buy a home or not, there has to be homes available to purchase.  Currently, young home shoppers have a very shallow pool of options – and the current inventory shortage is predicted to stick around through 2017. Daren Blomquist, senior vice president at ATTOM Data Solutions, identified 3 key factors keeping housing inventory in a drought, barring entrance for aspiring…

Home Sales Close Out 2016 on High Note

Posted on February 15, 2017 by Laura Lam

Hopes are high for this year as 2016 closed out pending home sales on a high note, however low inventory continues to dampen the high spirits.  Pending home sales increased in December by 1.6% to 109, up from 107.3 in November, according to a new report from the National Association of Realtors. That is an increase of 0.3% from December 2015. “Pending sales rebounded last month as enough buyers fended off rising mortgage rates and alarmingly low inventory levels to sign a contract,” NAR Chief Economist Lawrence Yun said.  “The main storyline in the early months of 2017 will be if…

It Will Be Harder to Find a Home This Year

Posted on February 07, 2017 by Laura Lam

According to several recent industry reports, the amount of residential housing available for sale is low. In fact, according to Pro Teck Valuation Services’ Home Value Forecast for December 2016, residential housing supply has declined by 125% in two years. “The drop in housing starts post-crisis made inventory scarce, which as a result led to low Months of Remaining Inventory (MRI) and fierce competition for homes on the market,” said Tom O’Grady, CEO of Pro Teck Valuation Services.  This is most notable in metros like Dallas and Fort Worth, TX. MRI is defined as the current number of active listings divided by…

Rising Interest Rates Take Toll on Home Affordability

Posted on February 02, 2017 by Laura Lam

November brought a reversal to the growing home affordability with a sudden drop, according to First American Financial Corp.’s Real House Price Index.  What the company calls “real house prices” increased 4.4% from October to November, reversing the decreasing trend. “Real purchasing-power adjusted house prices jumped 4.4% month-over-month, reversing a 6-month trend of decreases,” said First American Chief Economist Mark Fleming.  “Year-over-year, real house prices have increased 2%.”  “The shift in real house prices signals a decrease in affordability, driven primarily by rising mortgage rates,” he added.  “However, while rates are increasing, they remain very low from a historical standpoint.” The RHPI…

Affordability Falls to Worst Level in 8 Years

Posted on January 12, 2017 by Laura Lam

Affordability in the housing market declined to its lowest level since the fourth quarter of 2008, according to the latest Home Affordability Index from ATTOM Data Solutions.  In the fourth quarter, 29% of U.S. county housing markets were less affordable than their historic affordability averages, an increase from last quarter’s 24%, and more than double last year’s 13%. In fact, this increase marks the highest share of unaffordable markets since the third quarter of 2009, when 47% of markets were less affordable than their historic average. Home prices increased once again in November by 6.8% as housing inventory dropped 8%, making affordability that…