housing market update: If You Are Thinking of Selling, Now Is The Time
- 04/17/16 10:09 PM
If you thought about selling your house this year, now may be the time to do it. The inventory of homes for sale is well below historic norms and buyer demand is skyrocketing. We were still in high school when we learned the concept of supply and demand: the best time to sell something is when supply of that item is low and demand for that item is high. That defines today’s real estate market. Jonathan Smoke, the Chief Economist of realtor.com, in a recent article revealed that: “Would-be buyers face a dilemma: There will be more homes on the market over each week of the next three … (1 comments)
housing market update: Over Half of Americans Planning on Buying in the Next 5 Years
- 04/13/16 11:00 PM
According to the BMO Harris Bank Home Buying Report, 52% of Americans say they are likely to buy a home in the next five years. Americans surveyed for the report said that they would be willing to pay an average of $296,000 for a home and would average a 21% down payment. The report also included other interesting revelations. Those Looking to Buy 74% of those looking to buy a new home will consult with a real estate agent 59% said they will visit online real estate websites 37% will seek recommendations from friends and family 78% plan to get pre-approved before seriously … (1 comments)
housing market update: Real Estate: 2016 Will Be the Best Year in a Decade
- 04/05/16 10:54 PM
A few weeks ago, Jonathan Smoke, the Chief Economist at realtor.com, exclaimed: “All indicators point to this spring being the busiest since 2006.” Now, Freddie Mac has doubled down on that claim and is saying that 2016 will be the best year that the real estate industry has seen in a decade. In their March Housing Outlook Report, Freddie Mac explained: “Despite the challenges facing the housing market, we expect this to be the best year for housing in a decade. Home sales, housing starts, and house prices will reach their highest level since 2006 according to our latest forecast…Challenges remain, with low housing supply and declining affordability being a … (2 comments)
housing market update: 2016 Home Sales Doing Just Fine!!
- 03/30/16 10:19 PM
Some of the housing headlines are causing concern for some consumers who are in the process of either buying or selling a home. Pundits are concerned over the lack of new construction or the month-over-month sales numbers. Let’s set the record straight; 2015 was a good year for residential real estate in the United States and 2016 is starting out stronger. Here is a graph of total homes sold (new construction and existing homes) in the first two months in 2016 compared to last year: Will this momentum continue?If we look at foot traffic (the number of purchasers currently out looking at homes), … (1 comments)
housing market update: Past, Present & Future Home Values
- 03/29/16 10:09 PM
In CoreLogic’s latest Home Price Index, they revealed home appreciation in three categories: percentage appreciation over the last year, over the last month, and projected appreciation over the next twelve months. Here are state maps for each category: The Past – home appreciation over the last 12 months The Present – home appreciation over the last month The Future – home appreciation projected over the next 12 months Bottom Line Homes across the country are appreciating at different rates. As we have mentionedbefore, the rate of home price appreciation across the country is due to a stronghousing market reacting to supply and demand, and not a new housing … (1 comments)
housing market update: Sales Contracts Hit Highest Level in Months
- 03/28/16 10:17 PM
The National Association of Realtors (NAR) just announced that the February Pending Home Sales Index reached it’s highest reading since July 2015. What is the Pending Home Sales Index (PHSI)?NAR’s PHSI is “a forward-looking indicator based on contract signings”. The higher thePending Home Sales Index number, the more contracts have been signed by buyers that will soon translate to sales. February’s Index rose 3.5% month-over-month to 109.1. What does this mean for the market?Lawrence Yun, NAR’s Chief Economist explained: "After some volatility this winter, the latest data is encouraging in that a decent number of buyers signed contracts last month, lured by mortgage rates dipping to their lowest levels in nearly a year … (1 comments)
housing market update: Further Proof This Isn’t a Housing Bubble
- 03/23/16 10:31 PM
Two weeks ago, we posted a blog which explained that current increases in home prices were the result of the well-known concept of supply & demand and should not lead to conversations of a new housing bubble. Today, we want to look at home prices as compared to current incomes. Here is a graph showing the monthly mortgage payment on a median priced home in the U.S. over the last 25 years: Mortgage payments are currently well below the historic average over that time period. Purchasers are not overextending themselves to buy a home like they did on the run-up to the housing crash. Lawrence Yun, … (2 comments)
housing market update: 3 Charts That Scream ‘List Your Home Today’
- 03/21/16 10:15 PM
In school we all learned the Theory of Supply and Demand. When the demand for an item is greater than the supply of that item, the price will surely rise. SUPPLYThe National Association of Realtors (NAR) recently reported that the inventory of homes for sale stands at a 4.4-month supply. This is considerably lower than the 6-month inventory necessary for a normal market. Many buyers are being confronted with a very competitive market in which they must compete with other buyers for their dream home (if they even are able to find a home they wish to purchase). Listing your house for sale now will allow you to capitalize … (1 comments)
Going into the 2016 spring market, the biggest challenge the real estate industry has is the lack of available housing inventory for sale. Here are a few experts and their thoughts on the subject: David Crowe, Chief Economist for the National Association of Home Builders:“Many sellers may not have an absolute decision as to whether to buy an existing home or a new home. So the low inventory of existing homes is locking them in place.” Ralph McLaughlin, Chief Economist with Trulia:“We are in a time of short supply, which is great news for sellers because they will likely be faced with multiple … (1 comments)
housing market update: Housing Market To “Spring Forward” This Year
- 03/11/16 01:35 AM
Just like our clocks this weekend in the majority of the country, the housing market will soon “spring forward!” Similar to tension in a spring, the lack of inventory available for sale in the market right now is what is holding back the market. Many potential sellers believe that waiting until Spring is in their best interest, and traditionally they would have been right. Buyer demand has seasonality to it, which usually falls off in the winter months, especially in areas of the country impacted by arctic temperatures and conditions. That hasn’t happened this year.Demand for housing has remained strong as mortgage rates have … (1 comments)
housing market update: Study Again Finds Homeownership to be a Better Way of Producing Wealth
- 03/11/16 01:30 AM
According to the latest Beracha, Hardin & Johnson Buy vs. Rent (BH&J) Indexhomeownership is a better way to produce greater wealth, on average, than renting. The BH&J Index is a quarterly report that attempts to answer the question: Is it better to rent or buy a home in today’s housing market?The index examines the entire US housing market and then isolates 23 major markets for comparison. The researchers use a “'horse race' comparison between an individual that is buying a home and an individual that rents a similar quality home and reinvests all monies otherwise invested in homeownership.” Ken Johnson Ph.D., Real Estate Economist & Professor at Florida Atlantic … (0 comments)
housing market update: Yes, Home Prices Are Rising. No, a New Housing Bubble is NOT Forming
- 03/11/16 01:26 AM
We recently reported that home prices are continuing to rise across most of the nation. This has created concern in some pundits that a housing bubble, like we saw ten years ago, is forming again. We want to explain why these concerns are unfounded. The current increase in home values can be easily explained by the theory of supply and demand. Right now, the number of families looking to purchase a home is greater than the supply of homes on the market. Here is a chart that explains how the months’ supply of housing inventory impacts home values: According to the latest Existing Home Sales Report from … (1 comments)
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