us housing market: Job Market Spurs US Housing Market Forward - 03/25/16 02:27 AM

Job growth in 2015 certainly helped spur the housing market forward. Most experts believe 2016 will follow the pattern, with job creation leading to increased activity in the United States Housing Market. Most believe the two sectors are linked and that as people find new, higher paying jobs, home values and activity will both rise with it.
The job market created 2.6 million new jobs in 2015. Unemployment hit 5% in 2015, down from 5.8% in 2014. Urban centers and high tech hubs experienced the most growth in both job creation and housing activity. Places like San Francisco, Denver and Seatlle all … (1 comments)

us housing market: Foreign Investments on Record Pace in US Real Estate Market - 09/25/15 08:09 AM
Foreign investors have taken on the United States Real Estate Market in full force in 2015 thanks to an improving US economy and low interest rates.
According to the real estate services firm JLL, foreign investments totaled 24.1 billion dollars at mid-year compared to 23.6 billion for all of 2014. JLL only keeps track of transactions greater than 5 million dollars so some hotels and multi-family developments were excluded. The CoStar group, another commercial firm, has the total spent at nearly 39 billion.
Chinese investors have taken a large portion of the investor market. They accounted for 1.9 billion dollars in the second … (0 comments)

us housing market: Trending Back to Buyer’s Market? - 09/24/15 04:30 AM
Although the US housing market is certainly still a seller’s market, their advantage might be slipping. Right now, low home inventory allows many sellers in markets across the US to negotiate much harder, knowing they have another potential buyer waiting in the wings. However, as more homes continue to come on the market and stay on the market for longer, buyers will see their bargaining power increase.
Normally towards August, both inventory and demand reach their peak. Then, once the school year starts, near-term buyers disappear as they look for solidity and routine in their daily lives. Most people don’t want to … (12 comments)

us housing market: 91% of US Homes Have Equity - 09/23/15 08:29 AM
After 759,000 properties regained equity in the second quarter, almost 45.9 million homes now have a higher property value than the remaining balance on their mortgage. In essence, 91% of US homes with mortgages now have equity—great news for the recovering US Housing Market.
At the end of 2014, 89% of US homes had equity, totaling 44.5 million homes.
Ninety five percent of mortgaged homes valued at 200k or more currently have equity. At the end of 2014, that number was at 94 percent of mortgaged homes.
Homeowners with lower home values struggled to get over the equity hump in comparison to those buying … (3 comments)

us housing market: Delinquent Mortgages Falling Across United States - 09/08/15 08:49 AM
Delinquent mortgages continue to fall across the United States, providing great news to a recovering housing market. Delinquent mortgages are mortgages with an outstanding bill for payments due. Delinquent mortgages are a great way to gauge the housing market’s health as well as the financial health of current homeowners.  Having less delinquent mortgages implies that a stronger economy has formed or is forming—helping those with mortgages pay of current debts and giving buyers the sense (whether true or not), that they are taking less financial risk by taking out a mortgage.
According to a report by the Mortgage Banker’s Association, delinquency rates … (0 comments)

us housing market: Mid and Low Tier Rentals Scarce as Prices Grow - 08/27/15 04:21 AM
Mid-tier and low-tier apartments for rent have grown more and more scarce as developers continue to build a higher percentage of luxury rental apartments across the United States.
Despite the multi-family construction rate maintaining its high levels, most of these homes, 80% in fact, have been built in the luxury sector, while mid and low tier apartments have become increasingly scarce.
Based on construction costs for apartments across the United States, any developer would prefer to build luxury rentals, particularly over mid-tier rentals. According to, one company, AvalonBay Communities, on average spends $340,000 per unit, requiring a monthly rent of $2,900 to … (2 comments)

us housing market: Building Across US Still Strong - 08/26/15 08:13 AM
Building across the US remained strong with single family housing starts increasing, while multi family starts leveled off from a an exceptional month of June.
Single-family start-ups increased 13% from June and have now topped an annualized rate last seen in January 2008. The total number of single-family housing starts has increased over a three month moving average for every period since 2011.
Due to the unusually high level of multi-family start-ups seen in June, July housing starts fell slightly. In June, housing starts went up 28.6% compared to May and hit an annualized rate of 476k homes per year. July fell back … (1 comments)

us housing market: US Home Prices Reach All-Time High, Inventory Low - 08/13/15 04:24 AM
Home Prices in the United States have reached an all time high according to the National Association of Realtors. The median sale price in June for all real estate housing types reached $236,400, up 6.5% from June 2014. Not only that, that figure hit above the 2006 record of $230,400 and is an all time high.
Limited inventory and high demand have been leading to the higher prices. Home sales increased by 3.2% in June to the highest level of sale activity seen since February 2007. Steady job growth and an improving economy have been pegged as the leading cause for the … (1 comments)

us housing market: June Home Sales Beating Prerecession Numbers - 08/11/15 07:09 AM
Existing home sales in June passed the highs for all of 2006 and hit the highest level it has been at since February of 2007. Home sales increased in June by 3.2% to a seasonally adjusted rate of 5.49 million units sold. Existing home sales made notable increases in February and March as well. Having these sales numbers outshining prerecession totals adds more evidence to the narrative that the housing market has returned to form.
The United States Housing market is moving quickly and at high volume. Forty seven percent of the homes sold in June had been on the market for … (0 comments)

us housing market: Jumbo Loan Market Still Booming in 2015 - 08/06/15 09:31 AM
The US Jumbo Loan market continues to perform extremely well in 2015 after an already wonderful 2015. A jumbo loan is any loan where more than $417,000 is borrowed for a home purchase. In high priced markets, jumbo loans are not counted until someone borrows $625,000.
In 2014, jumbo loans took 19% of the total mortgage market, which had not been seen since 2002. In 2015, that number has risen to 20%. Even more enlightening, after only taking 1% more market share for total mortgages, jumbo loans took 36% more dollar volume than in 2014, reaching 160 billion in the first half … (1 comments)

us housing market: Job Growth Bounces Back in April - 05/14/15 04:54 AM
The US continued to add jobs in April—great news for the economy overall as well as the housing industry specifically. The Bureau of Labor Statistics reported payroll employment expanded by 223,000 in April.
After a stagnant March, when only 85,000 jobs were added over the month, experts were worried that job growth had slowed. However, 266,000 jobs were also added in February 2015, suggesting that March may just have been a small blip on the job growth radar.
The unemployment rate fell from 5.5% in March down to 5.4% in April. In total, about 26,000 unemployed Americans found work in April.
The Federal Reserve … (1 comments)

us housing market: New Construction Too Expensive? - 05/13/15 09:25 AM
According to a new analysis by economist Tom Lawler, new construction homes are far more expensive than they should be. Lawler compared prices for new construction in 2015 compared to new construction costs in 1970. Right now, new construction costs double what they sold for in 1970 and here’s the bad news—inflation is included.
Right now, new construction sells for an average of $343,000. Lawler believes home price growth should have only risen by 23 percent since 1970 to now. According to his line of thinking, current new homes on the market should be selling for around $199,000.
What is causing the rise … (2 comments)

us housing market: Housing Start-Ups Up, Permits Down in March - 04/30/15 04:38 AM
March gave some mixed results regarding the health of newly constructed homes in 2015. New permits shrank by 5.7% from February to March, yet housing start-ups rose by 2.9 percent.  Both directly affect the number of homes available on the market. How home inventory will be affected is yet to be seen.
Building permits and housing start ups are the leading indicator for the health of the new construction industry. On the positive side, single-family start-ups increased by 4.4% in March. Another positive note, the lack of building permits in March may be just a small dip because housing permits have increased … (0 comments)

us housing market: Housing Sales, Inventory, Values, All Up in March - 04/27/15 08:37 AM
Existing home sales hit their highest annual rate since September 2013, good news for the overall housing market. Existing home sales rose to 6.1% in March to an annual rate of 5.19 million. That figure is 10.4% higher than a year ago. Low mortgage rates and a strengthening job outlook locally and nationally have fueled the increased sale activity. As home buying and selling activity increases, the overall market will deepen and be more immune to shifting conditions—again, positive news.
Home values are still rising—generally good news for sellers. Across the nation, a median priced existing home sold for $212,000, up 7.8% … (0 comments)

us housing market: 2015 May Bring Millennials to Home Buying Table - 04/01/15 07:19 AM
Realtor Magazine believes that this year will be the year when millennials, or Generation Y buyers, come out of the weeds and take a seat at the housing market table. The magazine has pointed to rising rent prices, a strengthening job market, and the impending Federal Reserve decision to raise interest rates.
Last year, the number of first time homebuyer purchases sank to its lowest level in 30 years. However, millennials comprised 32% of the U.S. housing market, suggesting they have not been shifting into home ownership as expected. Many experts have pointed to 2015 as the year that trend shifts.
Rent prices … (3 comments)

us housing market: Home Inventory Down in Early 2015 - 03/18/15 07:01 AM
 Home inventories have fallen in early 2015 as markets have struggled to find a balance between homes for sale and qualified buyers. Home inventory fell in January by 6.7% month over month and 8.7% year over year.
Although obvious on the surface, the major problem causing a lack of homes for sale is that sellers have yet to put their homes up for sale. Many home owners have watched their markets increase, with the expectation that their home will sell higher the longer they wait. In many cases this will be true. However, in markets like Bozeman, Montana, where there are many … (0 comments)

us housing market: Pending Home Sales Rise in January - 03/10/15 09:05 AM
According to the National Association of Realtors, pending home sales hit their highest level since August 2013—a great sign for the United States Housing Market. Pending sales have improved for 5 consecutive months.
Homes can only be marked as pending once all the contingencies in their purchase contract have been met.
The pending home sales index rose 1.7% in January to a total score of 104.2. This January’s pending sale numbers were 8.4% higher than those seen in 2014, showing growth over the past year.
For the Western region, the index climbed by 2.2% in January to 96.4. 11.4% more homes were pending in … (0 comments)

us housing market: More Buyers Returning to Home Search - 02/06/15 02:20 AM

Reports from builders and real estate agents have suggested that buyer demand should see a sizeable increase for this year. According to Redfin, home tour demand reached an all time high last week, up 62% from 2014.  Redfin real estate agents also reported that accepted contracts rose 58% compared to last year.
Low mortgage rates and low down payments may be what is getting home buyers to start their home search. Many millenials who had not been as financially “ready” to buy a home or were waiting to be able to afford the type of home they wanted, have seen … (0 comments)

us housing market: Rental Vacancy at 20-Year Low in US - 02/05/15 04:17 AM

The nation is still looking for room to rent. The national vacancy rate for rented units has dropped to a 20 year low. The rate has not been this low since the Fourth Quarter of 1993.
Bozeman, Montana has seen these lack of vacancies first hand, thanks to a growing town and surrounding area, schools and university. Bozeman has preemptively added additional housing and even built new subdivisions to better address the rental needs in the area, though it is yet to be seen whether these changes will improve the vacancy rate compared to 2014.
In the US in general, … (0 comments)

us housing market: Total Home Values Up in the US - 01/08/15 08:33 AM

The total value of all homes in the United States grew for a third straight year according to The total value of all homes in 2014 reached 27.5 trillion dollars, up 1.8 trillion from 2013.
In 2013, home values had grown up to 25.7 trillion, up 1.9 trillion from 2012. From 2012 to 2013, home values rose by 7.9 percent. From 2013 to 2014, home values rose by 6.7 percent.
Between 2007 and 2011, home values had lost nearly 6.3 trillion. The attached graph indicates the new growth in comparison with the recession (updated through 2013). With 2014’s continued … (0 comments)