On September 25, 2013, in Economic Updates,
Wednesday, September 25, 2013
Monday, September 9, 2013
Thursday, September 5, 2013
Mortgage originations defy interest rate hikes
inmanNEWS
http://www.inman.com/wire/mortgage-originations-defy-interest-rate-hikes/
http://www.inman.com/wire/mortgage-originations-defy-interest-rate-hikes/
Mortgage originations rose 12.7% (year over year).
This Indicates stability despite increases in interest rates.
Prepayment activity driving origination volume. (Good indicator of mortgage refinances)
"Prepayment speeds have been impacted by the sharp increase in mortgage interest rates... For the year to date, 2013 has produced the lowest level of foreclosure starts since 2007. Given that nearly 50 percent of these are repeat foreclosures means that the picture is even more positive than a surface reading of the numbers might suggest."
Herb Blecher
LPS Data & Analytics Senior Vice President
Higher Lot Prices = Higher New Home Prices
Julie Schmit, USA TODAY
Higher lot prices may boost new home prices
http://www.usatoday.com/story/money/business/2013/09/03/finished-lot-prices-new-homes/2736655/
1.) Home builders are paying higher prices for construction ready lots in many major markets.
2.) New homes could get more expensive in the coming months as a shortage of suitable lots drives up builders costs.
3.) Construction spending rises to four year high.
4.) Finished lot prices represent almost 22% of a new home's price.
5.) Builders expect future homes prices will cover their higher lot costs.
"Don't expect lot prices to keep growing at their current pace. As developers and builders refill the pipeline, price gains will slow."
David Crowe
Chief Economist for the National Association of Home Builders.
Higher lot prices may boost new home prices
http://www.usatoday.com/story/money/business/2013/09/03/finished-lot-prices-new-homes/2736655/
1.) Home builders are paying higher prices for construction ready lots in many major markets.
2.) New homes could get more expensive in the coming months as a shortage of suitable lots drives up builders costs.
3.) Construction spending rises to four year high.
4.) Finished lot prices represent almost 22% of a new home's price.
5.) Builders expect future homes prices will cover their higher lot costs.
"Don't expect lot prices to keep growing at their current pace. As developers and builders refill the pipeline, price gains will slow."
David Crowe
Chief Economist for the National Association of Home Builders.
Friday, August 30, 2013
Realtor Confidence Index, Report & Market Outlook: June 2013
FULL DETAILED REPORT:
http://economistsoutlook.blogs.realtor.org/2013/08/30/rising-rents-for-residential-properties/
http://economistsoutlook.blogs.realtor.org/2013/08/30/rising-rents-for-residential-properties/
Single Family homes: “strong” at 71.
Townhouses: 51.
Condominiums approaching 50.
The survey was sent to a random sample of about 50,000 REALTORS®.
The Index is calculated as a weighted average of the responses, evaluated at
0-Weak, 50-Moderate, and 100-Strong.
Thursday, August 29, 2013
USA Today: Home equity loans make a comeback.
Susan Tompor, USA TODAY
Full Article:
Home Prices Rise and Stabilize:
1.) Lenders are more willing to lend.
2.) Borrowers feel more secure about tapping into their equity.
Potential Requirements:
20% equity retention
720 credit score or higher
An appraisal
Verify Employment
Proof of income
A loan minimum. 20K or more.
2-4 week time frame for the loan.
The average rate on a home equity loan is 6.14%.
The average rate on a home equity line of credit is 4.99%
Bankrate.com.
The Recent Effect Of Rising Interest Rates
Media Contact: Walter Molony
National Association of Realtors chief economist Lawrence Yun:
Rising interest rates caused an initial surge in closed sales then a slight pause in pending sales. Closed sales have not decreased at this point.
Overall:
Recent months of pending contracts are “still the highest activity level since 2006.”
The real estate market “momentum is still solid”
Interest Rates are still close to a 60 year low.
Affordability is at an all time high, which is why there is a strong demand for more housing.
There is a housing shortage which puts pressure on builders to meet this demand in the market. “the current inventory is at a historic low point”
Wednesday, August 28, 2013
Largest decline in Shadow Inventory since the housing crisis began.
35% drop (annualized basis).
23% drop (year over year)
[Compass Point Research & Trading]
Fewer Homes In The Foreclosure Pipeline Has Resulted From:
A decline in 90+ past due loans.
An increase in prices, which has motivated people to repair their situation.
An improvement in mortgage credit quality.
The decline is expected to continue as servicers push to resolve delinquent inventory.
Key market Trends: Dave Liniger (RE/MAX Co-Founder & Chairman)
By Teresa Walsh
“New Construction Will Experience Robust Growth For The Next Decade…”
“The Beginning Of A New Homes Boom!”
Factors:
1.) High demand, low inventory: Resales are not enough.
2.) New household formation: Historically lows are now picking up.
3.) Population Growth: Specifically Immigration.
“Builders need to pick up the pace...and deliver"
Areas:
1.) More housing
2.) Numerous styles.
3.) Multiple price points.
Wednesday, August 21, 2013
Monday, August 19, 2013
Thursday, August 15, 2013
Wednesday, August 14, 2013
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RE/MAX Performance in National Surveys
The results of the 2013 RISMedia Power Broker Report, the REAL Trends 500 and "The Thousand" all show that RE/MAX agents continue to outperform the competition, helping more home buyers and sellers realize their dreams.
Tuesday, August 13, 2013
Where Is the World's Most Expensive Real Estate?
It the world's second smallest country with the most billionaires per capita, where a 4-bedroom property will cost you about $26 million. Bloomberg takes a look at why Monaco has the world's most expensive property. (Source: Bloomberg)
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