Posts Tagged ‘home buyer’

Home Flipping Volume Rises to 9-Year High

Posted on June 19, 2017 by Laura Lam

ATTOM Data Solutions’ Q1 2017 U.S. Home Flipping Report revealed that 43,615 single family homes and condos were flipped during Q1 2017, which was an 8% decrease from the previous quarter and a 6% decrease from a year ago. Home flips in Q1 2017 accounted for 6.7% of all single family home and condo sales during the quarter, up from 5.8% in the previous quarter and unchanged from a year ago. A home flip is defined as a property that is sold in an arms-length sale for the second time within a 12-month period.  One-third (33.3%) of all single family…

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…

Younger Homeowners Opt for HELOCs

Posted on April 18, 2017 by Laura Lam

As interest rates increase, hovering higher than rates last year, buyers have little incentive to refinance their mortgages.  But as refis drop, a whole new loan type rises to take its place – home equity lines of credit (HELOC). While mortgage rates may be high, so are home prices, creating a wealth of new equity for homeowners. Thus, the increase in HELOCs, according to a recent CNBC article by Diana Olick.  More than any other generation, Millennials are utilizing this cash-out mortgage loan.  According to the article, “The last time interest rates rose as much as they have over the…

Most Markets Hit Record Housing Prices in 2016

Posted on March 02, 2017 by Laura Lam

The fourth quarter of 2016 saw the best quarterly sales pace of the year – but also pushed housing inventory to record lows, and many markets to home prices with record highs, according to the latest quarterly report from the National Association of Realtors (NAR).  Home prices in over half of measured markets either hit or surpassed their previous peak level, according to the report. The median existing single-family home price increased in 89% of measured markets. While 158 of metro areas saw gains from the fourth quarter of 2015, the remaining 20 metros recorded lower home prices than the year…

Underwater Home Loans Sink to New Low

Posted on February 20, 2017 by Laura Lam

At the end of the year, 2016 held 1 million less seriously underwater properties than the year before, according to the Year-End 2016 U.S. Home Equity and Underwater Report from ATTOM Data Solutions, a fused property database.  Rising home prices and low inventory prices caused home buyers to struggle, however current homeowners reaped the benefits of the increased equity. At the end of 2016, 5.4 million properties were seriously underwater, the combined loan amount secured by the property was at least 25% higher than the property’s estimated market value, according to the report. “Since home prices bottomed out nationwide in the first…

Consumers’ Attitude on Housing Brightens

Posted on February 16, 2017 by Laura Lam

The Fannie Mae Home Purchase Sentiment Index rose 2 percentage points to 82.7 in January, reflecting the more positive consumer outlook following November’s presidential election.  The index is based on the results of 6 questions from Fannie Mae’s National Housing Survey – 4 of the 6 components improved in January from the month prior. “Three months after the presidential election, measures of consumer optimism regarding personal financial prospects and the economy are at or near the highest levels we’ve seen in the nearly 7-year history of the National Housing Survey,” said Doug Duncan, senior vice president and chief economist at Fannie…

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…

Down Payments Eat Up Large Chunk of Income

Posted on January 31, 2017 by Laura Lam

To meet a 20% down payment, homebuyers on average have to spend more than two-thirds of the average annual income, according to a report from Zillow.  A 20% down payment for a median-price home valued at $192,500 will cost $38,500. In some of the larger and more expensive markets, including the San Francisco and Los Angeles metropolitan areas, buyers may need to pay more than 180% of the average annual income to afford a 20% down payment on a median-priced home. “Saving enough cash for a down payment is a major barrier to homeownership, especially in expensive markets, where a…

Existing Home Sales Hit 9-Year High in October

Posted on December 07, 2016 by Laura Lam

Sales of previously owned homes unexpectedly climbed in October to the highest level since February 2007, a sign of momentum in the housing market a month before a jump in borrowing costs, according to the National Association of Realtors. Contract closings rose 2% to a 5.6 million annual rate (the forecast was 5.44 million). Sales increased 0.5% from October 2015 before seasonal adjustment. The median sales price rose 6% from October 2015 to $232,200, while inventory of available properties fell 4.3% from October 2015 to 2.02 million, marking the 17th straight year-over-year decline. Steady hiring, a pickup in incomes, and…

How Will Trump’s Win Affect the 2017 Mortgage Industry?

Posted on November 14, 2016 by Laura Lam

Rising interest rates will trigger a downturn in refinance activity in 2017, while purchase originations will rise, according to the Mortgage Bankers Association’s most recent industry forecast. But those projections, released in late October, assumed a continuation of housing and economic policies that would have come with a Hillary Clinton win. According to MBA Chief Economist Michael Fratantoni, it would be been easier to predict Clinton’s policies.  However given the high-level nature of Trump’s campaign proposals, he said it’s more difficult to gauge what the specific impact will be.  “We’ll learn a lot more about that in the coming weeks,”…