Posts Tagged ‘home price’

Are Some Cities Close to a Housing Bubble?

Posted on November 07, 2017 by Laura Lam

According to a recent report released by the Urban Institute, with home prices on the rise, some cities are inching closer to a housing bubble.  The Urban Institute explained that in order to determine if the U.S. is in a housing bubble, knowing the reason for the price growth is critical. In order to determine the reason for the price growth, Urban Institute utilized its housing affordability index.  Overall, housing in the U.S. remains very much in the affordable range. The median household can afford a house that is $70,000 more expensive than the median home price today. In 2006,…

Consumers Still Overly Optimistic of Home Values

Posted on September 20, 2017 by Laura Lam

Homeowners continue to overestimate their home values, however the gap continues to narrow, according to the latest National Home Price Perception Index (HPPI) from Quicken Loans.  The index, which compares homeowners estimates and the appraised home values, showed appraised home values came in 1.35% lower than homeowner estimates in August. This gap is smaller than July’s gap of 1.55%.  This closing gap is due, in part, by the increase in appraised values which ticked up 0.19% in August. This is up 2.64% from August of last year. “As the sun sets on the summer, some of the intense competition for housing also…

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,”…

Consumer Delinquencies Hit New Low

Posted on October 24, 2016 by Laura Lam

Consumer delinquencies fell last quarter to their lowest point in at least 15 years, according to quarterly data released by the American Bankers Association (ABA).  The percentage of overdue closed-end loans was 1.35% in the second quarter, down three basis points from the first quarter. The ABA’s so-called composite ratio tracks delinquencies in 8 closed-end installment loan categories including personal, home equity and direct auto loans. It defines a delinquency as a payment that is 30 days or more overdue. The latest figure was the lowest since at least 2001, and it marked nearly 4 years of delinquencies below the…

24% of Housing Markets Less Affordable Than Norm

Posted on October 13, 2016 by Laura Lam

Homes were less affordable than their historic averages in 24% of U.S. markets as prices rose and wage growth slowed, Attom Data Solutions found in its third-quarter affordability index.  Attom reported that affordability worsened compared with the second quarter and a year ago when the share of markets that were less affordable than normal was 22% and 19%, respectively. In total, 101 of 414 counties had an affordability index below 100 for the quarter, which indicates that a median-price home was less affordable than the average based on data going back to 2005.  Additionally, in 89% of markets home price…

Longest Time to Break Even on a Home?

Posted on June 21, 2016 by Laura Lam

It takes nearly 4 years to get to the point where it makes more sense to buy than rent a home in San Diego County, the longest time of any metro area in the nation, according to a recent Zillow study.  The real estate website ranked the top 35 metro areas for the time it takes to hit a break-even point – the number of years you need to own and live in a home until it becomes more financially advantageous than renting the same house. The average for the nation, in the first quarter of this year, was 1…