Aa
Slow, steady recovery of economy not another bubble
http://realestate.msn.com/2014-housing-outlook-home-prices-head-higher
Good news for the majority of Americans whose largest asset is thrir home.
'2014 housing outlook: Home prices head higher'
After a surge in home values in most cities in the past year, prices will increase more slowly in 2014.
"Home prices will rise in 2014 but at a slower, more steady pace compared with historical trends.
The housing recovery has pushed up home prices nearly everywhere. In the past year, home prices rose in 225 of the 276 cities tracked by Clear Capital, a provider of real estate data and analysis.....
Prices nationwide increased by 10.9 percent, pushing the median price for existing homes up by $30,000, to $215,000. For people who have waited to sell their home or refinance their mortgage, that's good news......
What's ahead
In 2013, a sense of urgency drove traditional buyers hoping to take advantage of still-affordable home prices and historically low mortgage rates. Buyers found selection limited and were often forced into bidding wars with investors and other buyers who paid cash. Sellers reaped the rewards in terms of quick sales, often above the asking price.
Almost half of the cities tracked by Clear Capital experienced double-digit increases in home prices, led by Las Vegas, with a gain of 32 percent. Such spikes reflected a continuing "correction to the overcorrection," says Alex Villacorta, vice-president of research and analytics for Clear Capital. Buyers and investors rushed in to snap up homes with prices that had fallen too far. Homes continue to be affordable, despite recent run-ups — on average, prices are still 31.5 percent below their 2006 peak. The percentage of monthly family income consumed by a mortgage payment (assuming a mortgage rate of 4.1 percent) is just 15.6 percent, on average, compared with 23.5 percent in mid 2006.
"Houses are very cheap," says David Stiff, principal economist at CoreLogic, a property and mortgage-data analytics company.
Market observers agree that home prices will rise in 2014, but at a slower, more steady pace compared with historical trends. Clear Capital forecasts that home prices nationally will rise by 3 percent to 5 percent in 2014, about the historical average. Kiplinger expects an increase of 4 percent.
"The most notable thing about 2014 will be how un-notable 2014 is," Villacorta says.
Meanwhile, the Conference Board, a nonprofit association of businesses, found that the percentage of consumers who intend to buy a home in the next six months was the highest since 2000. Adding to the push: pent-up demand among young people who, hampered by lack of jobs or insufficient income, have been living in their parents' basements or sharing apartments with roommates. Celia Chen, a housing analyst with Moody's Analytics, says Moody's expects the economy to expand enough in the coming year to enable young people to begin moving out. They'll probably rent first, but low vacancy rates and higher rents will prompt some renters to move on to homeownership.
As home prices continue to rise, more owners who had been underwater — meaning that they owed more on their mortgage than their home was worth — will emerge from the sidelines and start selling and buying homes. CoreLogic reports that almost 3.5 million homeowners were lifted out of negative equity between the end of 2012 and mid 2013. Nevada, Florida, Arizona, Michigan and Georgia have the highest shares of underwater homeowners......"
Always nice to see the hard facts and figures showing our President's policies starting to repair some of the damage done by the previous administration.
Good news for the majority of Americans whose largest asset is thrir home.
'2014 housing outlook: Home prices head higher'
After a surge in home values in most cities in the past year, prices will increase more slowly in 2014.
"Home prices will rise in 2014 but at a slower, more steady pace compared with historical trends.
The housing recovery has pushed up home prices nearly everywhere. In the past year, home prices rose in 225 of the 276 cities tracked by Clear Capital, a provider of real estate data and analysis.....
Prices nationwide increased by 10.9 percent, pushing the median price for existing homes up by $30,000, to $215,000. For people who have waited to sell their home or refinance their mortgage, that's good news......
What's ahead
In 2013, a sense of urgency drove traditional buyers hoping to take advantage of still-affordable home prices and historically low mortgage rates. Buyers found selection limited and were often forced into bidding wars with investors and other buyers who paid cash. Sellers reaped the rewards in terms of quick sales, often above the asking price.
Almost half of the cities tracked by Clear Capital experienced double-digit increases in home prices, led by Las Vegas, with a gain of 32 percent. Such spikes reflected a continuing "correction to the overcorrection," says Alex Villacorta, vice-president of research and analytics for Clear Capital. Buyers and investors rushed in to snap up homes with prices that had fallen too far. Homes continue to be affordable, despite recent run-ups — on average, prices are still 31.5 percent below their 2006 peak. The percentage of monthly family income consumed by a mortgage payment (assuming a mortgage rate of 4.1 percent) is just 15.6 percent, on average, compared with 23.5 percent in mid 2006.
"Houses are very cheap," says David Stiff, principal economist at CoreLogic, a property and mortgage-data analytics company.
Market observers agree that home prices will rise in 2014, but at a slower, more steady pace compared with historical trends. Clear Capital forecasts that home prices nationally will rise by 3 percent to 5 percent in 2014, about the historical average. Kiplinger expects an increase of 4 percent.
"The most notable thing about 2014 will be how un-notable 2014 is," Villacorta says.
Meanwhile, the Conference Board, a nonprofit association of businesses, found that the percentage of consumers who intend to buy a home in the next six months was the highest since 2000. Adding to the push: pent-up demand among young people who, hampered by lack of jobs or insufficient income, have been living in their parents' basements or sharing apartments with roommates. Celia Chen, a housing analyst with Moody's Analytics, says Moody's expects the economy to expand enough in the coming year to enable young people to begin moving out. They'll probably rent first, but low vacancy rates and higher rents will prompt some renters to move on to homeownership.
As home prices continue to rise, more owners who had been underwater — meaning that they owed more on their mortgage than their home was worth — will emerge from the sidelines and start selling and buying homes. CoreLogic reports that almost 3.5 million homeowners were lifted out of negative equity between the end of 2012 and mid 2013. Nevada, Florida, Arizona, Michigan and Georgia have the highest shares of underwater homeowners......"
Always nice to see the hard facts and figures showing our President's policies starting to repair some of the damage done by the previous administration.
I think your faith is misplaced.
Discloser: I own some Z
Discloser: I own some Z
I place more faith in Kiplinger's opinion than Zillow's but it'll be an interesting year regardless.
Homeownership rate slips to 19-year low while rental market tightens
Rent prices are rising as homeownership continues to decline.
A sign twirler advertises apartments for rent in downtown Los Angeles. (Ken Hively / Los Angeles Times)
TIM LOGAN contact the reporter Housing and Urban Planning
A 'rentership' society? Homeownership hits 19-year low, the Census Bureau says
The nation's homeownership rate slipped to its lowest level in 19 years in the first quarter as more households rented and home sales remained low.
That's according to the Census Bureau, which said 64.8% of homes in the U.S. are owner-occupied, the lowest share since the second quarter of 1995. Homeownership rates topped 69% at various times in 2004 and 2005 before the foreclosure crisis and housing crash pushed millions of Americans back to renting.
Rapid home price gains make renting more attractive, study says
Rapid home price gains make renting more attractive, study says
Andrew Khouri
Meanwhile, the census said the rental vacancy rate stayed near record lows at 8.3%, and the median rent for available units nationwide hit an all-time high of $766 per month.
Housing economists say there are a number of factors at work. Tight credit and higher-than-they-have-been home prices are keeping some would-be buyers out of the market. Others are sidelined by high student debt or concern about the soft job market. And there's at least some evidence that young adults are postponing homeownership, either by choice or through economic necessity.
"I think a lot of households will be renting instead of buying for some time," said Stan Humphries, chief economist at real estate website Zillow.
Just 36.2% of households headed by someone younger than 35 owned their home in the first quarter, down from 41.3% in 2008 -- though the homeownership rate has fallen across every age group except for senior citizens.
Homeownership is lowest in the West, at 59.4%.
http://www.latimes.com/business/la-fi-mo-homeownership-rate-slips-20140429-story.html
Rent prices are rising as homeownership continues to decline.
A sign twirler advertises apartments for rent in downtown Los Angeles. (Ken Hively / Los Angeles Times)
TIM LOGAN contact the reporter Housing and Urban Planning
A 'rentership' society? Homeownership hits 19-year low, the Census Bureau says
The nation's homeownership rate slipped to its lowest level in 19 years in the first quarter as more households rented and home sales remained low.
That's according to the Census Bureau, which said 64.8% of homes in the U.S. are owner-occupied, the lowest share since the second quarter of 1995. Homeownership rates topped 69% at various times in 2004 and 2005 before the foreclosure crisis and housing crash pushed millions of Americans back to renting.
Rapid home price gains make renting more attractive, study says
Rapid home price gains make renting more attractive, study says
Andrew Khouri
Meanwhile, the census said the rental vacancy rate stayed near record lows at 8.3%, and the median rent for available units nationwide hit an all-time high of $766 per month.
Housing economists say there are a number of factors at work. Tight credit and higher-than-they-have-been home prices are keeping some would-be buyers out of the market. Others are sidelined by high student debt or concern about the soft job market. And there's at least some evidence that young adults are postponing homeownership, either by choice or through economic necessity.
"I think a lot of households will be renting instead of buying for some time," said Stan Humphries, chief economist at real estate website Zillow.
Just 36.2% of households headed by someone younger than 35 owned their home in the first quarter, down from 41.3% in 2008 -- though the homeownership rate has fallen across every age group except for senior citizens.
Homeownership is lowest in the West, at 59.4%.
http://www.latimes.com/business/la-fi-mo-homeownership-rate-slips-20140429-story.html
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