Posts Tagged ‘home prices’

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…

Housing Confidence Reaches All-Time High

Posted on March 08, 2017 by Laura Lam

The Fannie Mae Home Purchase Sentiment Index (HPSI)  increased by 5.6 percentage points in February to 88.3, a new all-time high. The report found that 5 of the 6 components that comprise the HPSI were up, and 3 hit record highs. The net share of Americans who reported that now is a good time to buy rose 11 percentage points, while the net share who believe that now is a good time to sell rose 7 percentage points. Consumers also demonstrated greater confidence about not losing their jobs, with the net share rising 9 percentage points. “The latest post-election surge…

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…

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…

Higher Interest Rates Could Hit Some Homeowners Hard

Posted on January 26, 2017 by Laura Lam

Mortgage rates, while down over the past two weeks, have trended higher since the election of President-elect Donald Trump.  In December, the Federal Reserve made its first and last interest rate hike for 2016, but left the industry with the notion that 3 more could be on the way for 2017. For some, the rise in interest rates means higher profits for the first quarter of 2017, but for those looking to buy a home, it could mean higher payments or smaller homes. MarketWatch used data gathered from the National Association of Realtors (NAR) to show the top 5 counties where homebuyers will see the greatest change if…

Will These Mortgage Trends Make a Comeback in ’17?

Posted on January 05, 2017 by Laura Lam

The boom-bust cycle of refinancing and a host of other mortgage trends and strategies tend to come and go and come again depending on varying factors.  “It is a cyclical business,” said David Kittle, president of The Mortgage Collaborative.  It’s been a while since the cycle has turned, but it’s finally expected to this year due to the new administration and Congress and the recent rise in rates. Some mortgage-related ideas and market conditions from the past are likely to be back as a result.  Not all of the following retro industry market trends or proposals may become realities in…

5 Housing Predictions for 2017

Posted on December 22, 2016 by Laura Lam

The housing market in 2016 was largely defined by two main trends: rising home prices nationwide and falling interest rates due to political events such as the Brexit vote and the U.S. presidential election. While certain features of the housing market this year are expected to remain the same in 2017, such as the popularity of Western metropolitan areas, others are expected to change. From the rising influence of millennials to shifting trends in home prices and housing inventory, here’s a look at the top housing market trends for 2017, according to Joe Kirchner, senior economist at Realtor.com. Millennials and…

Consumer Become Pessimistic on Economy/Housing

Posted on November 09, 2016 by Laura Lam

Home purchase sentiment fell for the third straight month in October, reflecting the uncertainty consumers face, according to Fannie Mae.  Fannie Mae reported that its Home Purchase Sentiment Index dropped 1.1 points to 81.7 from the month prior. Four of the index’s six components decreased, including the share of consumers expecting home prices to go up and the share of consumers reporting significantly higher income from last year. “The HPSI fell in October for the third straight month from its record high in July, reaching the lowest level since March,” said Doug Duncan, senior vice president and chief economist at…