Posts Tagged ‘housing supply’

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…

Sales to First-Time Home Buyers Fell 34% in 2017

Posted on November 16, 2017 by Laura Lam

First time homebuyers continue to struggle to enter the housing market amidst limited housing inventory, falling to the fourth lowest level since 1981, according to the National Association of Realtors’ 2017 Profile of Home Buyers and Sellers report.  The share of first time homebuyers in the housing market decreased from 35% in 2016 to 34% in 2017. In the 36-year history of NAR’s report, the long-term average of first-time homebuyers rests at 39%. “The dreams of many aspiring first-time buyers were unfortunately dimmed over the past year by persistent inventory shortages, which undercut their ability to become homeowners,” stated NAR…

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…

Homeownership Obstacles Vary by Ethnicity

Posted on July 20, 2016 by Laura Lam

While all prospective homebuyers may face challenges to buying a home, the perception of what those obstacles are can take different forms based one’s race or ethnicity, according to the results of a survey by the Futures Company in partnership with the California Association of Realtors Center (CAR) for California Real Estate. The obstacle cited most among all respondents was saving enough for a down payment at 29%. Next was housing supply constraints at 27%, followed by access to credit and financing at 22% and personal debt at 19%. Among African-Americans and Asians a similar trend played out. The highest…