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Shrinking Inventory and Rising List Prices: Continuing Signs of a Recovering Housing Market
Article written by Ted C. Jones on May 15, 2012
According to Ted Jones, Senior Vice President and Chief Economist for Stewart Title,Ted Jones, Senior Vice President and Chief Economist for Stewart Title, there are positive signs spanning the spectrum indicating a turning real estate market despite some weak spots across the country.
Just a few days ago, USA Today reported that the number of existing homes for sales had dropped 22 percent from a year ago and now totals just 2.37 million units. This is down 41 percent from the peak reached in mid 2007. That said, the National Association of Realtors ® reported rising prices in 74 of the 146 markets they track in the first quarter of 2012 versus declines in 72 locales. Even more significant is the dramatic decline in some of the hardest hit markets:
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March inventory in Phoenix declined 64 percent from a year ago according to Arizona State University real estate expert.
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NAR reports very tight inventories in Phoenix, Orange County, California, Naples, Florida, Seattle, suburban Washington, DC and North Dakota (driven by the energy boom being experienced in that state).
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While mortgage delinquency rates remain above average (with average being 2 percent), they dropped from 6.19 percent in Q4 2011 to 5.78 percent in Q1 2012 according to TransUnion (based on a sample of 10 percent of US mortgage holders) and are down from a 7 percent peak in Q4 2009
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All-cash transactions in Q1 2012 made up 31 of all sales—and I doubt these people would be buying and paying cash if they thought property values would decline further
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22 percent of all buyers were investors
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Condominium prices rose 3.4 percent when compared to Q1 2011
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Q1 2012 existing home sales were up 5.3 percent from the same period in 2011 and are now running at annualized rate of 4.57 million
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Total existing home sales in Q1 2012 were at the highest level since 2007
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Move.com reports that many of the hardest hit markets are now among the top recovering markets
Article Source: Stewart Title Blog
More Sources: Pro Teck Valuation Services |
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Saturday, 05 May 2012 06:26 |
Pimco Housing Bear Kiesel Says It’s Time to Start Buying
By John Gittelsohn
Mark Kiesel, the Pacific Investment Management Co. managing director who sold his home in 2006 when he deemed the market a bubble, says it’s time to buy.
“I was one of the most negative on housing,” Kiesel said in a telephone interview. “I finally came to the conclusion housing is looking pretty decent.”
Kiesel said he bought a house in Newport Beach, California, where Pimco is based. Today he published a credit market note titled “Back In” on the firm’s website in which he writes, “I’m not sure U.S. housing prices have bottomed -- only time will tell -- but there are many more positives today than there were six years ago when I sold my house.”
Home prices that have fallen 35 percent from their mid-2006 peak and mortgage rates of less than 4 percent are helping make it a good time to buy, said Kiesel, who is global head of the corporate bond portfolio management group at Pimco. Other signs the housing market is turning around include foreclosure filings dropping to levels last seen in 2007 and sales of new and existing homes that have begun to increase as rising rents boost the relative affordability of purchasing, he said.
“For those of you renting or on the sidelines, I recommend you at least consider getting ‘back in’ and buying a house,” he wrote in the note. “The future is hard to predict, but U.S. housing is healing and is probably close to a bottom.”
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Thursday, 03 May 2012 08:03 |
Mortgage Rates Hit All-Time Low
By Justin T. Hilley
Fixed mortgage rates hit new all-time lows this week as anemic economic growth and inflation took rates to unheard depths.
The Freddie Mac survey showed the 30-year, FRM averaged 3.84% for the week ending Thursday — the lowest rate ever recorded — inching down from the prior week's average of 3.88%. Last year at this time, the 30-year FRM averaged 4.71%.
The rate’s previous all-time record was 3.87%, registering on February 9.
The 15-year FRM, a popular refinancing choice, averaged 3.07%, slightly falling from last week when it averaged 3.12%. A year ago, the average rate for a 15-year FRM was 3.89%.
This rate’s former all-time low was 3.11%, registering on April 12.
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Real Estate Investment Outlook
Written by: David Lereah Fri, March 23, 2012
It is becoming increasingly clear that the U.S. economy is improving, creating a more favorable backdrop for residential real estate investment. Our nation’s economy is kicking into second gear; monthly job gains have exceeded 200,000 for three consecutive months, providing the necessary fuel to create modest economic growth. An improving economy translates into positive wage growth, boosting consumer confidence which in turn, boosts home buying.
Sales of existing homes registered 4.59 million annualized units in February, reflecting a housing recovery that began in mid-2011. Similarly, sales of new homes registered 313,000 annualized units in February, compared to 295,000 annualized units in July of last year. Home sales are firming as job growth has stepped up over the past half year. In addition, housing affordability remains high due to historic low mortgage rates, creating pent-up demand for homes. This provides a favorable long term outlook for future property values, creating opportunities for investors.
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Sunday, 18 March 2012 11:42 |
March NSDCAR HomeDex Report
According North San Diego County Association of Realtors (NSDCAR) - The median price for all North County home sales – attached and detached – increased to $357,500 in February 2012 compared to $344,500 in January 2012. Detached homes in North County increased 3.75 percent to $415,000 in February 2012 compared to $400,000 in January 2012. Year-over median price in North San Diego County was stable with a small 0.6 percent fall compared to $417,500 in February 2011.
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