Coos Bay Oregon Real Estate

Americans View Of Economic Conditions Continues To Improve

Jan Delimont, Principal Broker (Prudential Seaboard Properties) — Mon, 14 May 2012 21:22:14 -0700

According to a Gallup poll tracking daily economic confidence, Americans’ view of the economy is increasingly positive and is now within one point of the highest level recorded since Gallup began daily tracking of economic confidence in 2008. Nearly half of respondents to the survey, which polled 3,426 adults across all 50 states and the District of Columbia, said they feel the economy is headed in the right direction and the percentage who feel things are getting worse has fallen more than 30 percent since October 2008, at the height of the financial crisis. But, despite reaching levels equal to the highest ratings of last year, Americans’ economic confidence is still historically low when compared, for example, to levels seen in the late 1990s. More here.

Government Scorecard Finds Progress In Recent Housing Data

Jan Delimont, Principal Broker (Prudential Seaboard Properties) — Mon, 07 May 2012 21:43:42 -0700

The U.S. Department of Housing and Urban Development and the U.S. Department of the Treasury’s monthly Housing Scorecard collects key market data and tracks the administration’s recovery efforts. The April report cites progress made in home sales and mortgage delinquencies but says there is continued fragility in the housing market. Mortgage delinquencies have declined for four straight months and existing-home sales are up more than five percent from last year’s level. Home prices, while still fragile, are beginning to show signs of stabilization and, in some markets, improvement. Also, inventory is at its lowest level in years, having fallen to levels typically associated with a healthy, balanced market. More here and here.

Economy, Housing Market On Track For Growth

Jan Delimont, Principal Broker (Prudential Seaboard Properties) — Tue, 01 May 2012 12:18:24 -0700

Freddie Mac’s most recent U.S. Economic and Housing Market Outlook says the labor market is on track for an increase in job growth this year and the economy and housing market continue to make progress. According to Freddie Mac’s outlook, unemployment should fall to 8.0 percent by the fourth quarter and major economic indicators such as retail sales and payroll performance should show continued improvement. Frank Nothaft, Freddie Mac’s vice president and chief economist, points to the fact that the unseasonably warm winter months are likely responsible for the volatility in current housing data and the pattern isn’t likely to continue through the summer. Nothaft says, since 1959, single-family housing starts have moved an average of 9 percent between winter months but, during successive summer months, the average is just 4 percent. More here.

Builder Confidence Slips For First Time In Seven Months

Jan Delimont, Principal Broker (Prudential Seaboard Properties) — Mon, 16 Apr 2012 21:54:30 -0700

According to the National Association of Home Builders’ Housing Market Index, builder confidence slipped three points to 25 in April, the first decline after seven consecutive months of gains. The index measures builders’ perception of the market for newly built, single-family homes on a scale where any number below 50 indicates more builders view conditions as poor than good. David Crowe, NAHB’s chief economist, said the decline is a pause in what has been a fairly rapid build-up in confidence since last September. According to Crowe, despite increased interest from potential buyers, builders have yet to see that interest translate into sales activity. Still, regional results show that most of the decline was felt in the Midwest, where confidence was down eight points. The Northeast posted a four point gain and reached its highest level since May 2010. The West was unchanged at 32 and the south dropped three points to 24.

Rising Rents Make Buying A Better Deal

Jan Delimont, Principal Broker (Prudential Seaboard Properties) — Mon, 09 Apr 2012 20:39:37 -0700

This year’s selling season comes with an added dose of optimism due, in part, to the increasing cost of renting a home or apartment. A survey by research firm Reis, found the average apartment’s rent rose 2.7 percent last year and, in some markets, was up more than five percent. And, though historically renting has been 10 percent cheaper than buying a home, an analysis from Deutsche Bank found that the gap began closing in 2010 and, by the end of last year, renting was nearly 15 percent more expensive than buying. This, along with high affordability and low mortgage rates, has industry analysts optimistic that 2012 could be the first year since 2005 that the number of renters entering the housing market increases from the previous year. It is also one of the chief reasons for an increase in optimism as the housing market enters the spring-selling season. More here.

Housing Analysis Says Many Markets Bottomed In 2009

Jan Delimont, Principal Broker (Prudential Seaboard Properties) — Mon, 02 Apr 2012 21:24:44 -0700

According to data released by Pro Teck Valuation Services, many housing markets across the country bottomed in 2009, despite industry analysts saying prices had further to fall. The data shows that many markets are already stabilizing or rebounding. Tom O’Grady, Pro Teck’s chief executive, said their data indicates that prices should be gradually increasing over the next few years, though the rate at which they increase will depend on the specifics of each individual market. The evaluation divided the number of non-distressed property sales by the total housing stock in each region as an indicator of future price performance. In addition, Pro Teck listed the top 200 markets and found that states, such as Texas and Oklahoma, that experienced a boom from the oil industry are among the best performing markets for single-family homes. More here.

Pending Home Sales Up 9.2 Percent From 2011

Jan Delimont, Principal Broker (Prudential Seaboard Properties) — Mon, 26 Mar 2012 21:14:51 -0700

According to the National Association of Realtors’ Pending Home Sales Index, contract signings were relatively flat in February, down 0.5 percent from January. But despite a slow month, pending home sales were 9.2 percent above February 2011. Lawrence Yun, NAR’s chief economist, said the spring home buying season looks bright due to elevated contract offers so far this year. According to Yun, if the level of current activity is sustained throughout the year, existing-home sales would reach their highest level in nearly five years. Regionally, the Midwest spiked 6.5 percent and is up nearly 20 percent over last year, though all other regions suffered decreases. Pending home sales are a forward-looking indicator that reflect contract signings but not closings. More here.

Builder Confidence At Highest Level Since 2007

Jan Delimont, Principal Broker (Prudential Seaboard Properties) — Mon, 19 Mar 2012 18:44:59 -0700

Builder confidence in the market for new single-family homes is twice as strong as it was six months ago and at its highest level since 2007. The latest National Association of Home Builders Housing Market Index, which measures builders’ expectations and perceptions, was unchanged from last month. Barry Rutenberg, chairman of the NAHB, said builders are still cautious but there’s a sense that many local housing markets have started to move in the right direction and that prospects for future sales are improving. The component gauging builders expectations for sales over the next six months was up for the six consecutive month, rising two points from the month before. Regionally, the Index was up in the Northeast, South, and Midwest but down in the West. More here.

Continued Jobs Gains Offer More Hope For Housing

Jan Delimont, Principal Broker (Prudential Seaboard Properties) — Mon, 12 Mar 2012 21:18:37 -0700

The economy added 227,000 jobs in February and surpassed economists’ expectations, according to the U.S. Bureau of Labor Statistics. Employment improved in professional and business services, health care and social assistance, leisure and hospitality, manufacturing, and mining. The official unemployment rate was unchanged at 8.3 percent. The gains make it seven-straight months with at least 100,000 jobs added, which is the longest streak since 2005. Continued improvement in the labor market, combined with high affordability and increasing consumer confidence, is key to a significant and sustained housing-market recovery. More here and here.

Housing Inventory At Lowest Level Since 2006

Jan Delimont, Principal Broker (Prudential Seaboard Properties) — Mon, 05 Mar 2012 20:21:00 -0800

The U.S. Department of Housing and Urban Development and U.S. Department of the Treasury released their February 2012 Housing Scorecard, which compiles key market data and the results of the administration’s recovery efforts through the end of January. According to the report, the supply of existing homes currently for sale would take 6.1 months to sell and the number of new homes on the market represents a 5.6 month supply, the lowest level since 2006. In addition to falling inventory levels, existing-home sales rose to their highest pace since May 2010 and home prices dipped during the month. Also, recent enhancements to the Home Affordable Refinance Program resulted in another 300,000 families beginning the process of refinancing their homes. More here and here.

Housing Starts, Permits Increase In January

Jan Delimont, Principal Broker (Prudential Seaboard Properties) — Mon, 20 Feb 2012 19:15:33 -0800

The U.S. Census Bureau and the Department of Housing and Urban Development’s new residential construction statistics for January show privately-owned housing starts rose to a seasonally adjusted annual rate of 699,000, exceeding economists’ expectations. The increase put starts 1.5 percent above December and 9.9 percent above the year before, when the annual rate was 636,000. Permits to build rose 0.7 percent over December and are 19.0 percent above January 2011. More here.

Americans Increasingly Optimistic, Confident In Economy

Jan Delimont, Principal Broker (Prudential Seaboard Properties) — Tue, 14 Feb 2012 00:47:18 -0800

According to Gallup, Americans’ economic confidence and sense of well being both rose in January. Gallup’s Life Evaluation Index, which asks Americans to rate their current and future lives on a scale from 0 to 10, climbed to its highest level in 11 months, increasing to 50.1 from 48.4 in December. The number of respondents classified as thriving as opposed to struggling or suffering increased to 53.4 percent from 51.9 percent the month before. Americans’ improving sense of well being is tied to gains in economic confidence. According to Gallup’s Economic Confidence Index, which has been rising since August of last year, the country’s confidence in the economy is at its highest level since May 2011, though it isn’t as high as it was a year ago. More here and here.

Refinancing Homeowners Reduced Debt In Fourth Quarter

Jan Delimont, Principal Broker (Prudential Seaboard Properties) — Tue, 07 Feb 2012 00:23:34 -0800

Freddie Mac recently released their fourth-quarter refinance analysis and it shows that 85 percent of homeowners who refinanced their mortgages during the fourth quarter of 2011 maintained or reduced their principal balance by paying-in additional money at the closing table. Frank Nothaft, Freddie Mac’s vice president and chief economist, said savvy homeowners are taking advantage of some of the lowest fixed-rates in more than 60 years to lock in interest savings. According to Nothaft, the typical borrower who refinanced during the fourth quarter reduced their interest rate by approximately 1.4 percentage points. During the fourth quarter, 37 percent of homeowners who refinanced their mortgage maintained about the same loan amount and 49 percent reduced their principal balance. The percentage of cash-in borrowers was the highest in the 26-year history of the analysis. More here.

Consumer Sentiment Rises Again, Hits 11-Month High

Jan Delimont, Principal Broker (Prudential Seaboard Properties) — Tue, 31 Jan 2012 00:02:41 -0800

According to the Thomson Reuters/University of Michigan consumer sentiment index, Americans’ confidence in the economy rose again in January. The overall reading for the month rose to 75.0 from 69.9 in December. It was the highest reading since February 2011 and a better-than-expected improvement. Richard Curtin, the survey’s director, said the recent gains in confidence are dependent on continued gains in employment and, as long as the job market continues to improve, real consumer spending should post a 2.1 percent gain in 2012. The component of the index measuring current economic conditions rose nearly five points and the gauge of consumer expectations was at its highest level since May 2011. More here and here.

Mortgage Demand Surges 23.1 Percent

Jan Delimont, Principal Broker (Prudential Seaboard Properties) — Wed, 18 Jan 2012 23:22:59 -0800

According to the Mortgage Bankers Association’s Weekly Applications Survey, the Market Composite Index, which measures total mortgage loan application volume, surged 23.1 percent last week from the week before. Refinance activity was up 26.4 percent and reached its highest level since August of last year. The Purchase Index also saw improvements, rising 10.3 percent from the week before. Michael Fratantoni, MBA’s vice president of research and economics, said interest rates dropped due to continued anxiety regarding the economic situation in Europe. The drop in rates led to the spike in refinance activity and brought buyers back to the market following the holiday season, according to Fratantoni. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances fell to 4.06 percent from 4.11 percent the week before. It was the lowest 30-year rate in the history of the survey. More here.

Americans’ View Of Economy, Housing Takes Positive Turn

Jan Delimont, Principal Broker (Prudential Seaboard Properties) — Tue, 10 Jan 2012 00:17:12 -0800

For the first time in nearly a year, more Americans say they expect their financial situation to improve over the next 12 months than say it’ll stay the same. Fannie Mae’s Monthly National Housing Survey shows an increasingly positive attitude toward the housing market and the broader economy among surveyed Americans. The results of the survey found a six percent jump in the number of people who say the economy is on the right track and a four percent spike in the number of participants who expect home prices to increase in the next year. Doug Duncan, vice president and chief economist at Fannie Mae, said there’s been a marked improvement in consumer sentiment regarding the direction of the economy, personal finances, and future home price expectations following the fourth-quarter pickup in the economy. On average, Americans say they expect home prices to rise by 0.8 percent in the next 12 months, up from 0.2 percent in November. Also, 71 percent of Americans say it is a good time to buy a home, which is a 3 percent increase from the month before. More here and here.

New Home Sales Up 10 Percent From 2010

Jan Delimont, Principal Broker (Prudential Seaboard Properties) — Tue, 27 Dec 2011 21:45:26 -0800

The U.S. Census Bureau and the Department of Housing and Urban Development’s New Residential Sales report for November shows sales of new single-family homes rose 1.6 percent over October’s pace to a seasonally adjusted annual rate of 315,000. The improvement puts new-home sales 9.8 percent above last year’s estimate of 287,000. There were 158,000 new homes for sale at the end of the month, which represents a six-month supply at the current sales pace. The median price for a new house in November was $214,000; the average price was $242,900. More here.

Analysts, Experts Say Rate Of Recovery Varies By Location

Jan Delimont, Principal Broker (Prudential Seaboard Properties) — Tue, 06 Dec 2011 22:37:28 -0800

A panel of industry analysts, insiders, and experts brought together for a recent mortgage-banking conference expressed hope for the housing market but cautioned that the rate of recovery will vary greatly depending on location. Eric Fox, vice president of statistical and economic modeling for Veros Real Estate Solutions, said price-to-rent ratios, demographic trends, and affordability combined with other variables such as schools and neighborhoods will determine the pace of recovery for local real estate. But, despite the number of factors affecting individual markets, the gathered analysts said now is a great time to buy a home due to high affordability and mortgage rates near record lows. More here.

Home Values Hold Steady in Third Quarter

Jan Delimont, Principal Broker (Prudential Seaboard Properties) — Tue, 29 Nov 2011 23:47:08 -0800

The S&P/Case-Shiller Home Price Indices shows the U.S. National Home Price Index up just 0.1 percent from the second quarter. But, though the national index registered a drop of 3.9 percent from the third quarter of last year, the rate of decline improved over the year-over-year decrease seen in the second quarter. In September, the annual rate of change improved from August in 14 of the 20 cities covered by the index. David Blitzer, chairman of the index committee at S&P Indices, said the plunging collapse of prices seen in 2007-2009 seems to be over, though a stronger economy would be needed for any sustained recovery. The Federal Housing Finance Agency also found prices relatively flat in the third quarter. Their index recorded a 0.2 percent increase. Andrew Leventis, FHFA’s principal economist, said most regions of the country saw relatively stable home values during the third quarter. More here and here.

Improvement Forecast for Housing Market in 2012

Jan Delimont, Principal Broker (Prudential Seaboard Properties) — Mon, 14 Nov 2011 22:25:41 -0800

According to Lawrence Yun, chief economist for the National Association of Realtors, the best affordability conditions since 1970 combined with a significant level of pent-up demand will lead to an improvement in home sales and the overall housing market in 2012. Yun believes existing-home sales will rise nearly five percent next year and new-home sales, which have been hurt by excess inventory of previously owned homes, will increase 23 percent. Increasing sales and falling inventory should positively effect home prices, which Yun believes will rise in 2012. Yun said home prices have shown a definitive stabilization pattern in most areas which should lead to moderate appreciation next year. More here.

Census Says Homeownership Rate on the Rise

Jan Delimont, Principal Broker (Prudential Seaboard Properties) — Thu, 03 Nov 2011 23:12:16 -0700

Data released by the U.S. Census Bureau shows homeownership rose between the second and third quarter of this year, increasing to 66.3 percent from 65.9 percent the previous quarter. Homeownership peaked in 2004 at nearly 70 percent, though it stayed between 64 and 65 percent for much of the 40 years prior to the housing boom. The new data finds the homeownership rate for adults under the age of 35 at 38 percent, down from 42 percent in 2007. The rate for people between the ages of 35 and 44 was also down, dipping from 65.2 percent last year to 63.4 percent now. John McIlwain, a senior fellow for housing at the Urban Land Institute, said the data suggests there is still a desire to own, though future buyers may wait until they’re in their mid to late 30s before purchasing a home. The Midwest had the highest rate of homeownership at 70.3 percent, followed by the South and Northeast. Homeownership was lowest in the West. More here.

Program Changes Hope to Help Underwater Homeowners

Jan Delimont, Principal Broker (Prudential Seaboard Properties) — Mon, 24 Oct 2011 22:30:34 -0700

The Federal Housing Finance Agency is easing the terms of the Home Affordable Refinance Program in order to help the estimated 11 million homeowners who have been making their mortgage payments but are unable to refinance because their loans are worth more than their homes. The HARP program has helped more than 890,000 homeowners since its launch but has been criticized for inefficiency. The changes hope to streamline the program and include allowing homeowners that owe more than 125 percent of the market value of their home to get new loans. Edward DeMarco, acting director of the FHFA, said the goal is to create refinancing opportunities for borrowers while bringing some stability to the housing market. More here and here.

Senators Urge Administration To Adopt Changes To Refi Plan

Jan Delimont, Principal Broker (Prudential Seaboard Properties) — Mon, 17 Oct 2011 22:53:35 -0700

With mortgage rates hovering near all-time lows, a bipartisan group of senators has sent a letter urging the Obama administration to make changes to the Home Affordable Refinance Program in order to help more homeowners take advantage of the historically low rates. More than 13 million homeowners have refinanced their mortgages since 2009, saving nearly $20 billion. But federal programs put in place to boost the number of homeowners able to refinance their mortgages have been slow moving and received criticism for inefficiency. The senators’ letter said time is of the essence and urged the administration to act quickly and aggressively to ensure responsible homeowners receive the full benefit of the lower rates. More here.

Survey Tracks Attitudes Toward Economy, Housing

Jan Delimont, Principal Broker (Prudential Seaboard Properties) — Mon, 10 Oct 2011 22:22:47 -0700

Fannie Mae’s September National Housing Survey polled 1,002 Americans to assess their attitudes toward homeownership, renting a home, mortgage rates, the economy, and their household finances. The September survey found Americans continue to link their personal finances with the state of the overall economy. But despite a generally pessimistic view of the economy, the number of Americans who expect their personal financial situation to worsen in the next year decreased for the first time in four months. A majority of respondents expressed a preference for buying a home rather than renting. Among participants, 63 percent said they’d buy their next home if they were going to move and 68 percent said now was a good time to buy a home. Americans also believe home rental prices will go up, with 43 percent expecting an increase in the next 12 months. More here and here.

New Home Sales Up 6.1 Percent Over August 2010

Jan Delimont, Principal Broker (Prudential Seaboard Properties) — Mon, 26 Sep 2011 23:47:31 -0700

Estimates released by the U.S. Census Bureau and the Department of Housing and Urban Development show sales of new single-family houses were at a seasonally adjusted annual rate of 295,000, 2.3 percent below July’s rate but 6.1 percent above August of last year. The median sales price of new homes sold in August was $209,100; the average sales price was $246,000. The estimate of new houses for sale at the end of August was 162,000, a 6.6-month supply at the current sales rate. A six-month supply of single-family homes is considered healthy for the housing market. More here and here.