Recent Price Gains May Not Be Here to Stay

Recent Price Gains May Not Be Here to Stay
Fitch: While some might be rejoicing at the recent rising home prices and rising home sales seen across the nation, Fitch Ratings “still views these gains cautiously.” In fact, the agency predicts price gains will slow and perhaps even reverse over the next year.

Fitch expects a price “trough in the middle of 2014” but suggests inflation will keep prices from falling more than 3.5 percent.
“While rising prices and sales volumes suggest a recovery, they are not moving in sync with key economic indicators that would otherwise support a sustainable price level,”
Fitch stated in its most recent quarterly report.Fitch chalks it up to pent-up demand. Persistent low interest rates, For Third Week, Mortgage Rates Sink Lower: Read more .....

Top Regrets Among Buyers, Renters Survey Reveals

Top Regrets Among Buyers, Renters Survey Reveals
Slightly more than half of Americans harbor at least one regret about their current home, according to Trulia’s Real Estate Regrets survey. In today’s seller’s market,Trulia says buyers are especially vulnerable to making decisions they may regret in the future.

“Faced with limited inventory, many buyers will feel pressure to act fast—but snap decisions often end in regrets,” said Jed Kolko, chief economist at Trulia.
One of the common missteps of new homeowners, according to Kolko, is buying before reaching financial stability. “Many buyers would have fewer regrets if they waited until they were in strong enough financial shape to afford a house that really meets their needs,” he said. The top regret listed among homeowners is not choosing a larger home. Thirty-four percent of homeowners cited this regret in Trulia’s survey. Read more ...

Fannie: Housing Recovery 'More Robust'

Fannie: Housing Recovery 'More Robust'

Fannie Mae economists say that “the broadening housing recovery could very well be more robust” than they anticipated, according to the mortgage giant’s lately monthly economic outlook report.

Low inventories of homes for sale are contributing to rapid price increases all across the country, which are expected to continue throughout this year.

Fannie Mae economists predict that existing-home prices will rise 5.1 percent in 2013, reaching a median $186,000. They also predict home prices will increase another 3.8 percent in 2014, reaching $193,000.

New-home prices are expected to rise 4.1 percent in 2013 to a median of $254,000, followed by a 3.5 percent rise in 2014 to $263,000, according to Fannie Mae’s report. Read more ...

Builders Step Up Construction

Builders Step Up Construction

Due to Rising Demand: Homebuilders broke ground on homes in March at the fastest pace since June 2008, mostly fueled by a surge in apartment construction, the Commerce Department reports. 
Housing starts rose 7 percent in March from February, reaching the seasonally adjusted rate of 1.04 million. Homebuilders have ramped up production as buyers rush to take advantage of continued housing affordability due to low mortgage rates. 

Visit our website to see: Home Ownership Matters Bus Tour                                                    

Downsizing Baby Boomers Head to Urban Areas

Downsizing Baby Boomers Head to Urban Areas

Home prices in urban areas have not fallen by as much the last few years as they have in the suburbs. And prices in urban areas are recovering much faster too, according to John McLain of the Urban Land Institute.

Why? Some say it’s because of new moving patterns among the baby-boomer generation. 

An increasing number of baby boomers are reportedly leaving their big homes in the suburbs and heading to urban areas for retirement, drawn by walkability, proximity to public transportation, diversity, and being closer to their children. Read more ..

Home Sales See Seasonal Surge

Home Sales See Seasonal Surge  Listings Fall

The seasonal surge in home sales combined with another drop in listings to further drive up prices in March, Redfin observed in its latest Real-Time Price Tracker.

According to the brokerage, home sales rose 25 percent month-over-month in March, reflecting the normal spring spike that occurs every year. On a year-over-year basis, however, sales were up just 0.9 percent—the smallest gain in 14 months.
Ten of the 19 markets tracked by Redfin saw sales increase year-over-year, one fewer than February. All 19 markets posted month-over-month improvements.
Home prices also saw a nice boost, growing 6.2 percent from February and 15 percent from March 2012. Eighteen of the 19 markets measured reported monthly and yearly increases, with Long Island being the only exception. Read more ....

Land Prices Rise as Builders Scramble for Lots

Land Prices Rise as Builders Scramble for Lots

An improving housing market is creating a sharp increase in land prices and “creating big profits for land investors but putting pressure on builders to further increase the price of new homes,” The Wall Street Journal reports. 

Land values across the country increased 13 percent last year — the first gain since 2005, according to a report by Zelman & Associates. The increase has been mostly sparked by growing demand among builders for finished lots. 

'There's no question the land market has gotten heated of late,' says Richard Dugas, chief executive of PulteGroup Inc. 'In some markets, it's a real challenge to get l and deals to pencil.'

The land shortage could equate to higher new-home prices for consumers. The cost of land is about 21.7 percent of the final sales price of a new home and usually the land cost gets 100 percent passed down to the buyer, according to the National Association of Home Builders. 
Some analysts predict new-home prices will rise 10 percent to 15 percent this year, mostly due to the rising cost of land.  Watch the Video ...