Posts Tagged ‘housing inventory’

Housing Affordability May Plummet in 2018

Posted on November 21, 2017 by Laura Lam

During the recent CoreLogic and the Urban Institute’s Housing Finance, Affordability and Supply in the Digital Age conference, CoreLogic Chief Economist Frank Nothaft predicted rising interest rates will cause home prices to rise.  Mortgage interest rates are expected to continue rising over the next couple years as experts predict the Federal Reserve will raise the Federal Funds rate in once more this year in December and up to 4 more times in 2018. As the chart shows, CoreLogic forecasted it will rise to 4.7% by December 2018. Nothaft explained as mortgage interest rates increase throughout 2018, less current homeowners will be motivated…

Homes Prices and Competition Hit Record High

Posted on July 19, 2017 by Laura Lam

The U.S. housing market continued to accelerate in June, with both the median prices and speed of home sales hitting all-time highs, according to a recent Redfin report.  Nationwide, the median sales price rose 7.3% year-to-year to $298,000 in June, the highest price on record since the firm began tracking in 2010. Homes typically sold within 36 days of when they were listed, marking the fastest pace in 7 years, according to Redfin. The tightening of the housing market reflects the imbalance between a long-standing inventory shortage and surging demand.  “Month after month, new records are set for the pace at…

Home Sellers See Biggest Profits in a Decade

Posted on May 01, 2017 by Laura Lam

Homeowners who sold their property in the first quarter realized an average price gain of $44,000 since purchase, representing an average 24% return on the purchase price – the highest average price gain for home sellers in terms of both dollars and% returns since the third quarter of 2007. According to new statistics from ATTOM Data Solutions, homeowners who sold in the first quarter had their property for an average of 7.97 years, down slightly from a record-high average homeownership tenure of eight years in the fourth quarter of 2016 but still up from 7.68 years in the first quarter…

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…

Landlords Take Over the Housing Market

Posted on March 13, 2017 by Laura Lam

As rising home prices, slow new home construction, and demographic shifts push homeownership rates to 50-year lows, the U.S. is increasingly a country of renters – and landlords.  Last year, 37% of homes sold were acquired by buyers who didn’t live in them, according to a new report published by Attom Data Solutions and ClearCapital.com Inc. That number may include second homes, or properties acquired by investors who seek to fix up old homes and resell them at a profit. But it’s also a strong indication that landlords are playing a larger role in the U.S. housing market.  In the years following the foreclosure…

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…

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…

Will Higher Interest Rates Lead Buyers to Cheaper Homes?

Posted on January 18, 2017 by Laura Lam

Homebuyers haven’t had it easy lately. Prices were up nearly 8% in November compared to last year while inventory declined.  Add rising mortgage rates to the mix and the outlook starts to appear pretty grim. But, despite rising rates and falling inventory, real estate agents report homebuyers remain optimistic. In a recent Redfin survey, real estate agents were asked to describe the general attitude of today’s homebuyer in one word. More than one in three agents described buyers as being “hopeful,” which outranked other choices such as “fatigued,” “disappointed” and “rushed.” When asked if now is a good time to…