Freddie Mac: Rising Mortgage Rates 'Will Not Derail the Recovery'
Wednesday, June 19, 2013
Freddie Mac: Rising Mortgage Rates 'Will Not Derail the Recovery'
Courtesy of REALTOR®Mag/National Association of REALTORS®
Daily Real Estate News | June 19, 20113
Freddie Mac: Rising Mortgage Rates 'Will Not Derail the Recovery'
Freddie Mac: Rising Mortgage Rates 'Will Not Derail the Recovery'
Loan Demand Falls as Rates Continue to Edge Up
Courtesy of REALTOR®Mag/National Association of REALTORS®
Daily Real Estate News | June 19, 20113
Loan Demand Falls as Rates Continue to Edge Up
Loan Demand Falls as Rates Continue to Edge Up
Wednesday, June 12, 2013
Phoenix Home Prices Up 30%... but, NOT Headed for Another Housing Bust
Jun 10, 2013
Low supply pushes Phoenix-area home prices up 30 percent in past year
"Limited supply, waning investor interest and a nosedive in foreclosure activity once again pushed metro Phoenix home prices higher in April, according to the latest housing report by Arizona State University."
June 11, 2013
Monday, June 10, 2013
Metro Phoenix median home-sales price up 60% from market low
The Republic | azcentral.com
Mon Jun 10, 2013
Metro Phoenix’s median home-sales price climbed to $181,399, an almost 60 percent increase from the real estate crash’s low price in August 2011.
Despite the increase in sales prices, Arizona State University real estate analyst Mike Orr doesn’t project another housing bubble in the Phoenix area anytime soon.
“We predicted prices would rise significantly during the strong annual buying season that lasts until June,” said Orr, director of the Center for Real Estate and Practice at ASU’s W.P. Carey School of Business.
The main reason for higher home sales prices is the chronic shortage of available houses for sale in the Phoenix area, he said. The number of houses listed for sale in the region fell 7.3 percent in April.
Because of rapidly rising home prices, some market watchers are concerned that many investors who bought inexpensive short sale and foreclosure homes and turned them into rentals during the past few years, will try to resell those homes now and create a bubble of oversupply.
“Some commentators talk ominously of a bubble bursting when these homes come back onto the market,” Orr said. “Such talk gets a lot of attention because we are over-sensitized to bubble talk after the disruptive events of 2004 to 2006.”
He said even if all the big investors put their homes on the market next month, that would only add 10,000 to 11,000 houses to the number of listings, and the Valley’s market would still be undersupplied based on demand.
Rising mortgage interest rates are another concern for some housing analysts and prospective buyers.
Orr said sometimes higher interest rates create a greater sense of urgency for homebuyers, which works to increase to demand instead of reducing it.
His forecast is for metro Phoenix home sales prices to continue to climb in coming months, but at a slower pace.
Despite the increase in sales prices, Arizona State University real estate analyst Mike Orr doesn’t project another housing bubble in the Phoenix area anytime soon.
“We predicted prices would rise significantly during the strong annual buying season that lasts until June,” said Orr, director of the Center for Real Estate and Practice at ASU’s W.P. Carey School of Business.
The main reason for higher home sales prices is the chronic shortage of available houses for sale in the Phoenix area, he said. The number of houses listed for sale in the region fell 7.3 percent in April.
Because of rapidly rising home prices, some market watchers are concerned that many investors who bought inexpensive short sale and foreclosure homes and turned them into rentals during the past few years, will try to resell those homes now and create a bubble of oversupply.
“Some commentators talk ominously of a bubble bursting when these homes come back onto the market,” Orr said. “Such talk gets a lot of attention because we are over-sensitized to bubble talk after the disruptive events of 2004 to 2006.”
He said even if all the big investors put their homes on the market next month, that would only add 10,000 to 11,000 houses to the number of listings, and the Valley’s market would still be undersupplied based on demand.
Rising mortgage interest rates are another concern for some housing analysts and prospective buyers.
Orr said sometimes higher interest rates create a greater sense of urgency for homebuyers, which works to increase to demand instead of reducing it.
His forecast is for metro Phoenix home sales prices to continue to climb in coming months, but at a slower pace.
Friday, June 7, 2013
Home Repairs-The Price of Ignoring Them
Courtesy of Keeping Current Matters/The KCM Blog
Posted: 07 Jun 2013
Thursday, June 6, 2013
Home Prices Rising Fastest in the Sand States: Arizona, California, Nevada
Source: Home Buying Institute
The harder they fall, the faster they rise. That seems to be the
case with home prices in Arizona, California and Nevada, the so-called
‘Sand States.’ In those states, homeowners enjoyed unbelievable property
value gains during the housing boom. As it turned out, they really were unbelievable. The housing collapsed pushed those overinflated home prices off a cliff.
But now, Arizona, California and Nevada are outpacing the rest of the country in terms of home prices. Consider the evidence.
Home prices in Phoenix, Arizona rose by 22.5% between March 2012 and March 2013. Prices in San Francisco climbed by 22.2% during the same period, while Las Vegas experienced an annual gain of 20.6%.
For several months in a row, Phoenix has posted the largest annual increase among metro areas in the Case-Shiller 20-city index.
According to the CoreLogic report, home prices in Nevada rose by 24.6% over the last year, the largest annual gain of any U.S. state. Rounding out the top three were California (+19.4%) and Arizona (+17.3%).
Inventory reduction is a major factor here. All of the Sand States accumulated huge housing surpluses after the crash. Too many properties on the market, and not enough buyers to absorb them all. Cities like Las Vegas, Phoenix and Sacramento also had a high concentration of distressed properties (foreclosures), as a percentage of total listings. This created a double whammy for home prices, shifting the supply-and-demand balance while saturating the market with low-priced homes.
But the inventory situation has changed for the better. Most of the major metro areas in California have experienced inventory reductions of 30% or higher. According to Realtor.com, the total number of listings in San Francisco has dropped by 31% over the last year. In San Diego, listings have declined by 35%. Orange County has seen a whopping 52% reduction in listings over the last year.
The major metros in Nevada have also experienced inventory declines, though not as sharp as those in California. The total number of homes listed for sale in Las Vegas dropped by 23% over the last year.
Phoenix is an exception to this rule. The inventory situation in Phoenix is actually leveling off right now, following a sharp period of decline that was largely the result of investors. Property listings in Phoenix have only declines by 4.6% over the last year, according to Realtor.com.
Las Vegas’s unemployment rate peaked at 14.6% in 2010, but fell to 9.6% in April of this year. The jobless rate in the Phoenix metro area dropped from 10.5% to 6.6% over the last three years.
Granted, unemployment rates are still historically high in places like Las Vegas, San Francisco and Los Angeles. But they have all dropped significantly from their recession peaks. This bodes well for home prices because it helps fuel demand. When the employment rate rises, so does the level of housing demand. This puts upward pressure on home prices, especially at a time when inventories are shrinking.
The Sand States – Arizona, California, Nevada and Florida – still have a long way to go, in terms of housing and economic recovery. But they seem to be in a hurry to get there.
But now, Arizona, California and Nevada are outpacing the rest of the country in terms of home prices. Consider the evidence.
Case-Shiller: Biggest Home Price Gains in the Sand States
According to the most recent S&P/Case-Shiller Home Price Index, which was published on May 28, some of the largest annual home price gains have occurred within the Sand States.Home prices in Phoenix, Arizona rose by 22.5% between March 2012 and March 2013. Prices in San Francisco climbed by 22.2% during the same period, while Las Vegas experienced an annual gain of 20.6%.
For several months in a row, Phoenix has posted the largest annual increase among metro areas in the Case-Shiller 20-city index.
CoreLogic: Nevada, California and Arizona Leading the Nation
CoreLogic, a real estate data provider, recently published a report that showed cities with the highest returns in home prices. Here again, the Sand States were well represented.According to the CoreLogic report, home prices in Nevada rose by 24.6% over the last year, the largest annual gain of any U.S. state. Rounding out the top three were California (+19.4%) and Arizona (+17.3%).
Realtor.com: Major Inventory Reduction in California and Southwest
Each month, Realtor.com publishes a housing summary with pricing, listing and inventory data for 146 metro areas in the United States. When you sort the most recent data based on median list price increases, it becomes a who’s who of metro areas within the Sand States. The biggest gains were seen in a dozen of California cities, along with Phoenix, Las Vegas and Reno.Inventory reduction is a major factor here. All of the Sand States accumulated huge housing surpluses after the crash. Too many properties on the market, and not enough buyers to absorb them all. Cities like Las Vegas, Phoenix and Sacramento also had a high concentration of distressed properties (foreclosures), as a percentage of total listings. This created a double whammy for home prices, shifting the supply-and-demand balance while saturating the market with low-priced homes.
But the inventory situation has changed for the better. Most of the major metro areas in California have experienced inventory reductions of 30% or higher. According to Realtor.com, the total number of listings in San Francisco has dropped by 31% over the last year. In San Diego, listings have declined by 35%. Orange County has seen a whopping 52% reduction in listings over the last year.
The major metros in Nevada have also experienced inventory declines, though not as sharp as those in California. The total number of homes listed for sale in Las Vegas dropped by 23% over the last year.
Phoenix is an exception to this rule. The inventory situation in Phoenix is actually leveling off right now, following a sharp period of decline that was largely the result of investors. Property listings in Phoenix have only declines by 4.6% over the last year, according to Realtor.com.
Job Growth Has Increased Housing Demand
Arizona, California and Nevada have also experienced significant improvements in their local job markets. During the first quarter of 2012, these states were actually leading the nation in terms of job growth. Collectively, they added 222,100 jobs from August to December of 2011. That accounted for 28% of US employment gains during that period, according to the Department of Labor.Las Vegas’s unemployment rate peaked at 14.6% in 2010, but fell to 9.6% in April of this year. The jobless rate in the Phoenix metro area dropped from 10.5% to 6.6% over the last three years.
Granted, unemployment rates are still historically high in places like Las Vegas, San Francisco and Los Angeles. But they have all dropped significantly from their recession peaks. This bodes well for home prices because it helps fuel demand. When the employment rate rises, so does the level of housing demand. This puts upward pressure on home prices, especially at a time when inventories are shrinking.
The Sand States – Arizona, California, Nevada and Florida – still have a long way to go, in terms of housing and economic recovery. But they seem to be in a hurry to get there.
Monday, June 3, 2013
When To Buy a House? RIGHT NOW!
Courtesy of Keeping Current Matters/TheKCM Blog
Posted: 03 Jun 2013
After
witnessing the housing bubble ‘pop’ just a few years ago, many would be
buyers may be hesitant to pull the trigger. Today, we want to explain
that the greatest risk a buyer can take right now is actually waiting to
buy a home.
We realize that every purchaser wants to be able to get the best deal. They want a great price and the lowest mortgage interest rate possible because those to items together will determine the monthly cost their family will pay. Let’s look at each one:
If you were waiting for the absolute bottom of the home price declines, you already missed it.
If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.
Posted: 03 Jun 2013
After
witnessing the housing bubble ‘pop’ just a few years ago, many would be
buyers may be hesitant to pull the trigger. Today, we want to explain
that the greatest risk a buyer can take right now is actually waiting to
buy a home.We realize that every purchaser wants to be able to get the best deal. They want a great price and the lowest mortgage interest rate possible because those to items together will determine the monthly cost their family will pay. Let’s look at each one:
Are home prices rising?
Just last week, the Case Shiller Pricing Index was released. The index revealed that U.S. home prices increased by 10.2% over the last twelve months. Last month, the Home Price Expectation Survey was released predicting that home values would increase by at least an additional 3.5% for each of the next five years.
If you were waiting for the absolute bottom of the home price declines, you already missed it.
Are interest rates rising?
According to Freddie Mac’s Weekly Primary Mortgage Market Survey, the 30 year mortgage rate shot up to 3.81% last week – the highest level in over a year. This is an increase of a half of a percentage point in the last six months. And the Mortgage Bankers Association, Fannie Mae and the National Association of Realtors all predict that rates will continue rise over the next eighteen months.
Conclusion:
If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.
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