Provo Utah 2nd Turnaround Housing Markets

Provo Utah 2nd Turnaround Housing Markets
Kiplinger Personal Finance recently singled out 12 metro areas’ housing markets as faring the best in 2012. Kiplinger attributed strengthening economies, below-average unemployment rates, and increasing buyer confidence as turning these metros into seller’s markets.  Big Milestone in Homebuilder Confidence is at its highest level in seven years

Sales Spike in 19 Major Metros in May

Sales Spike in 19 Major Metros in May
Home Prices: Gains in home prices and sales surged in May, while inventory increased for the second straight month, according to Redfin’s most recent housing market report based on 19 markets across the country.

In May, home prices surged 17.4 percent year-over-year, while prices in all 19 markets tracked showed yearly gains, the brokerage found. From April to May, prices increased 4.3 percent. 

National housing indicators are being led by strong regional markets experiencing key growth, as seller supply begins to respond to consumer demand mirroring on a micro scale, indicating a slower but steady national trend towards sustainable market recovery. As the spring homebuying season transitions into summer, some regions across the nation are seeing month-over-month inventories replenishing above usual seasonal patterns as sellers begin to respond to pent up demand. Utah rank 7th in the fastest growing economies by State.

Are Mortgage Rates Too Low ?

Are Mortgage Rates Too Low ?
To Threaten the Recovery: The recent rise in mortgage rates is not enough to pose any real threat to the housing recovery, but that’s not to say the increase doesn’t come with any risk, according to a recent analysis from Capital Economics.

 Freddie Mac’s most recent survey showed the 30-year fixed rate is almost back at 4 percent, while the Mortgage Banker Association reported the 30-year was up to 4.15 percent, the highest since March 2012. Foreclosure Sales in West Down in May Likely to Increase in June

30-Year Mortgage Rates Climb Near 4% Range

850K Borrowers Rise Out of Negative Equity in Q1

Significant improvements in home values helped lift 850,000 borrowers out of negative equity in the first quarter, CoreLogic reported. 

'The negative equity burden continues to recede across the country thanks largely to rising home prices,' says Anand Nallathambi, president and CEO of CoreLogic.

“The impressive home price gains of 2012 and the beginning of 2013 have had a big impact on the distribution of residential home equity,” said Dr. Mark Fleming, chief economist for CoreLogic. “During the past year, 1.7 million borrowers have regained positive equity. 

30-Year Mortgage Rates Climb Near 4% Range. Are 4 percent mortgage rates the new norm?

Inventory Situation Improves in June

Inventory Situation Improves in June

Compared to Start of 2013: While the number of for-sale listings nationwide remains down from last year, June saw a promising lift compared to the start of this year, Zillow revealed in a new report.

The overall number of listings on Zillow was down 12.2 percent year-over-year at the start of June, an improvement from the 17.5 percent shortfall recorded in January—in other words, Zillow explained, the inventory of for-sale homes has improved 5.3 percentage points year-to-date (controlling for seasonality).

Monthly Increase in REOs Drives Up Foreclosure Activity in May

Long-Lost Equity

Long-Lost Equity

More Home Owners Regain: 

Rising home prices are helping to propel more home owners back into positive equity. About 850,000 residential properties returned to positive equity during the first quarter of 2013, according to new data released by CoreLogic. That brings the total to 1.7 million borrowers who have regained positive equity in the past year. 

In total, 39 million residential properties now have positive equity.  You Should Own, Not Rent: 

Builders Don't Fear Housing Bubble

Builders Don't Fear Housing Bubble
Home prices are rising rapidly in many markets, but Pacific Coast Builders Confidence attendees name two main factors that should quell fears of a new bubble.

“The ultimate reality check is affordability,” Ara Hovnanian, chief executive of homebuilding giant K. Hovnanian Enterprises, told The Wall Street Journal.

Home prices soared during the housing boom, making homes less affordable for families earning the median income. The National Association of REALTORS®’ affordability index fell to 107.6 in 2006—often considered the height of the housing bubble. But following the housing crash, housing affordability rose (the higher the index, the greater the affordability). In 2008, the index climbed to 137.8, and reached a high of 193.2 in 2012, according to NAR.  Inventory on the Rise as Sellers Gain Confidence

Forecast Decrease in Mortgage Rates

Forecast Decrease in Mortgage Rates

Firm Forecasts 8% Increase in Prices: The pace at which home prices are rising should moderate later this year, with home prices forecast to rise by 8 percent this year then increase by another 4 percent in 2014, according to an analysis from Capital Economics.

Although the research firm agrees with analysts who have warned recent home price gains are not sustainable, housing bubble concerns were described as “premature.”

In the firm’s housing report for Q2, economists Ed Stansfield and Paul Diggle wrote, “[t]he bottom line is that valuation and affordability metrics suggest that house prices can rise considerably further before we need to begin worrying about another housing bubble forming.” See Why more Sellers Could Test Favorable Market!

Housing Markets Rises to 263 Metros in June

Housing Markets Rises to 263 Metros in June
More than 70 percent of U.S. metros’ housing markets are showing signs of strengthening, according to the June release of the National Association of Home Builders/First American Improving Markets Index.

The number of improving housing markets totaled 263 in June, with metros from 49 states and the District of Columbia included. The index identifies metro areas that have shown improvement in housing permits, employment, and housing prices for at least six consecutive months. 
For June, 29 metros were added to the list while 24 dropped off. Among the new metros added in June: Salinas, Calif.; Sioux City, Iowa; Chicago; Topeka, Kan.; Baton Rouge, La.; Laredo, Texas; and Philadelphia. How are Home Buyers Faring?

Most Renters Plan to Buy

Most Renters Plan to Buy
But Fear Lending Standards: Ninety percent of renters say they expect to buy a home in the future, but the majority are fearful of their ability to qualify for a mortgage at today’s stringent underwriting standards, according to a new survey conducted by Fannie Mae. In fact, 42 percent of those who intend to buy a home one day say they don’t think they’ll be able to do so for at least five years.  'Younger renters who prefer to own are much more likely than their older counterparts to say that they are renting mainly to make themselves financially ready to own,' according to the survey. 
Read More ....

Rising Rates Won't Put Housing Out of Reach

Rising Rates Won't Put Housing Out of Reach

Rising mortgage rates are not yet jeopardizing housing affordability, according to a new report by Goldman Sachs that found affordability still far above past average levels. 

“For a mortgage interest rate of 3.81 percent, the average home buyer can afford to buy a house worth $279,000—45 percent above the current median sales price of existing homes,” according to the Goldman Sachs report. “Even if mortgage rates continue to increase from here, the median home will still be affordable to the median borrower, based on the conventional 25 percent debt-to-income threshold.” Goldman Sachs researchers say that from 2014 to 2016, they expect housing prices will increase about 4 to 5 percent each year.                                     Watch our Video....

HUD & VA Team up

HUD & VA Team up To Help 9,000 Homeless Vets Find Homes: The U.S. Housing and Urban Development and Veterans Affairs have teamed up to provide housing for about 9,000 homeless veterans nationwide who live on the streets or in shelters.

HUD and the VA will provide $60 million to local public housing agencies to distribute the grants to homeless vets that will provide rental assistance. The vets participating will be able to rent privately owned housing and will contribute no more than 30 percent of their income toward rent.

These grants make it possible to help more veterans obtain housing, bringing us steps closer to our goal of ending veteran homelessness by 2015.” Read more ....

Downsizing Trend Reverses,

Downsizing Trend Reverses, Generation Y Homebuyers Favor: As National Homeownership Month kicks off, the National Association of Home Builders (NAHB) is taking a look at the features today’s young homebuyers want most and how builders are adapting to those needs.

“As the economy recovers and young people who had to live at home with their parents move forward with their lives and achieve their dreams of homeownership, home builders are delivering homes that cater to the floor plans, features and affordability that this generation desires,” said NAHB chairman Rick Judson, a homebuilder and developer from Charlotte, North Carolina. According to the association’s 2012 consumer preference survey, more than 80 percent of Generation Y homebuyers (people born in 1977 or later) prefer a highly energy-efficient home over a lower-priced home without energy-efficient features, preferring to save instead on utility costs.Home Prices Post 12.1% Annual Gain in April

Report Warns Shadow Inventory Threat Remains

Report Warns Shadow Inventory Threat Remains
It's Not Over: Foreclosures have been falling in recent months, but two government watchdogs warn that the foreclosure crisis isn’t over yet.

About 1.7 million borrowers have missed more than one payment on their government-backed mortgages, according to a newly released report by the inspectors general of the Federal Housing Finance Agency and Department of Housing and Urban Development.  

The shadow inventory is made up of loans that have been delinquent for at least 90 days. If these delinquent loans become foreclosures, they could pose significant financial challenges to mortgage giants Fannie Mae, Freddie Mac, or other federal housing agencies, the report notes.  Read more ...

Buyers won't rush to beat rising mortgage rates

Buyers won't rush to beat rising mortgage rates

Will housing heat up as buyers race to beat rising rates? The media loves this concept. A reminder how foolish so much media 'analysis.'

No new data, no new Fed talk, blow out the 10-year T-note’s February-March 2.05 percent high to 2.15 percent on Tuesday, and 2.19 percent today. Mortgages are above 4 percent for the first time in more than a year, and for lower-down, middling-credit borrowers, 4.25 percent-plus.

Enough to slow housing? No. Payments versus prices are still far into all-time-low territory.

Will housing heat up as buyers race to beat rising rates? The media loves this concept. A reminder how foolish so much media “analysis.” In a long working life I’ve never once met a “not-buying” client converted into “buying-now” because rates are rising. Read more ....

Housing Bubble Concerns Brew in Key Markets

Housing Bubble Concerns Brew in Key Markets

Skyrocketing home prices in a few markets have some analysts concerned that prices are on the rise too fast and could ultimately hamper the housing recovery. 

'In many markets, fundamentals are improving as unemployment rates continue declining, while low prices and low interest rates have affordability high,' according to analysts for Fitch Ratings, a credit rating agency. 'However, especially in cities that never fully unwound the mid-2000s bubble, rapidly increasing price levels are a potential cause for concern.'  Read more ....