Housing Scorecard Shows Big Gains in ‘Fragile’ Recovery

April 8, 2013 By EmmanuelFonte Leave a Comment

The housing market is making key progress in home prices and sales, but officials warn that the overall recovery remains “fragile” in the Obama administration’s Housing Scorecard for March.

“Despite the positive news, we have important work ahead since there are so many families and individuals still struggling,” says Kurt Usowski, HUD deputy assistant secretary for economic affairs.

In 2012, home owner equity grew by more than $1.64 trillion. Rising home values have lifted 1.7 million home owners above water again, the Housing Scorecard notes.

Home prices and home sales have shown large gains in the past year. Existing-home sales in February were up 10 percent year-over-year, the highest since November 2009. New-home sales were up 12 percent year-over-year in February, which is the second highest level since April 2010, the administration’s report noted.

More home owners are taking advantage of foreclosure mitigation programs. For example, more than 1.5 million home owner assistance actions–including loan modifications and early delinquency interventions–have taken place through the Making Home Affordable Program. More than 1.1 million home owners have received a permanent loan modification through the HAMP program, saving about $546 on their mortgage payments each month.

Source: Obama Administration Housing Scorecard for March

Filed Under: Blog, Economy, Housing Market, Real Estate Updates

Real Estate Update: Expecting the Healthiest Spring Season Since 2007

March 29, 2013 By EmmanuelFonte Leave a Comment

Freddie Mac recently released its U.S. Economic and Housing Market Outlook through March showing that as we head into the spring home buying season, continued low mortgage rates, increasing house prices, and gradually improving consumer confidence will help support increased home sales. A short preview video and the complete March 2013 U.S. Economic and Housing Market Outlook are available here.

Outlook Highlights

• Compared to 2012, expect home sales to be up 8 to 10 percent for 2013.

• Expect housing starts to increase to 950,000 units for 2013, compared to 780,000 in 2012.

• In 2012, real estate added $1.5 trillion to balance sheets, and residential mortgage debt outstanding increased by 0.1 percent in the fourth quarter of 2012, indicating household deleveraging might be drawing to a close.

• Because of sequestration spending reductions, expect the unemployment rate in 2013 to average about 7.8 percent, essentially flat for the year or about 0.25 percentage points higher than it otherwise would have been.

• Regardless, the housing wealth effect is taking hold in the broader market which should translate into the healthiest spring home buying season since 2007.

“History shows us not all economic recoveries are created equal and consumer confidence mirrors this fact,” says Frank Nothaft, Freddie Mac vice president and chief economist.

“With the spring home buying season upon us, the recent highs in the stock market are a welcome signal of better times ahead. But it will be the gradually declining unemployment rate and steadily improving housing market that will deliver broad-based economic benefits for Americans and, in turn, support the overall recovery.”

For more information, visit www.FreddieMac.com

Filed Under: Blog, Economy, Housing Market, real estate financing, Real Estate Investment, Real Estate Updates

Greater Seattle: Where You’ll Want to Be In 2016

March 23, 2013 By EmmanuelFonte Leave a Comment

The Seattle metro area continues to attract migrants from other states, boosting residential and commercial development. Real estate experts offer their top picks on the next hot spots for sub(urban) growth in 2016, reports Seattle Met.

Sammamish, a suburban city located on the East side, could boast a European-inspired centralized plaza complete with a town hall, retail, and small-unit homes by 2016. Sammamish has easy access to 520 and I-90, making it an attractive location for young families who want solid schools, a relatively shorter commute, and proximity to both Bellevue and Seattle. CNN Money Magazine named Sammamish one of the best places to live in 2011.

The Central District, located on the southern edge of Capitol Hill, appeals to young families who want a house and proximity to Seattle and Bellevue. A mostly residential area, the Central District is located east of Cherry Hill, west of Madrona and Leschi, south of Capitol Hill, and north of Rainier Valley. Historically, the Central District has been one of Seattle’s most racially and ethnically diverse neighborhoods.

South Lake Union is the headquarters of Amazon and home to Denny Park, Seattle’s oldest public park. This urban and walkable community touts the beautiful Lake Union, new and emerging condominium units, and amenities. For professionals who work in the SLU region, the options to live there are becoming increasingly abundant.

Columbia City is a newly revitalized part of the Rainer Valley, a mulitcultural community located southeast of downtown Seattle. Expansion of mass transit makes the Rainer Valley area communities attractive to those who want to stay close to downtown. The Valley includes the historic district of Columbia City and immediate neighbors, Genesee, Lakewood, Seward Park, Beacon Hill, Mt. Baker, and Hilman City, which rounds out Seattle Met’s top 5 best places to live in 2016.

Filed Under: Blog, Economy, Real Estate Updates

Homebuilding Soars to Highest Level in 4 Years

March 20, 2013 By EmmanuelFonte Leave a Comment

Housing starts surged in February as well as future permits for future construction to the highest levels since 2008 — a sign that the new-home market is picking up steam just in time for the spring buying season, the Commerce Department reported Tuesday.

Overall housing starts rose 0.8 percent in February to a 917,000 annual rate. Single-family housing starts, which make up the biggest bulk of that total, reached their highest level since June 2008. Meanwhile, multifamily starts rose 1.4 percent in February to 299,000 units.

“Demand for new homes and apartments is definitely rising as the spring buying season approaches and more young people move out on their own,” said Rick Judson, chairman of the National Association of Home Builders. “Builders are responding to this improved demand by putting more crews back to work and pulling more permits for future construction, though this positive activity is being constrained by continuing issues with appraisals and credit availability for both builders and buyers, and also by newly arising challenges such as lot shortages and increased costs for labor and materials.”

While housing starts have shown a big improvement in the past year, economists say that homebuilding is still less than half of what it was during its prerecession peak and is near levels in the early 1990s.

Source: National Association of Home Builders and “Housing Starts at Highest Level Since 2008,” Reuters

Filed Under: Blog, Economy, Housing Market, Real Estate Updates

1.7 Million Home Owners Regain Equity in 2012

March 19, 2013 By EmmanuelFonte Leave a Comment

Rising home prices have helped more home owners make their way above water again, with 1.7 million residential properties regaining equity in 2012, according to the latest figures from CoreLogic. The number of mortgaged home owners with equity now stands at 38.1 million.

More home owners are expected to soon join them: About 1.8 million homes will regain equity if home prices rise by another 5 percent—which most economists have forecast for this year.

“In the fourth quarter we again saw an improvement in the equity position of households,” says Mark Fleming, chief economist for CoreLogic. “Housing market improvements, particularly in the hardest hit states, are the catalyst for households to regain equity and become participants in 2013’s housing market.”

While the numbers are improving, many home owners are still underwater: About 21.5 percent—or 10.4 million—of all residential properties with a mortgage still retained negative equity at the end of the fourth quarter of 2012. That number is down 22 percent, year-over-year.

Nevada has the highest percentage of homes with negative equity (at 52.4%), followed by Florida (40.2%), Arizona (34.9%), Georgia (33.8%), and Michigan (31.9%). These five states alone account for 32.7 percent of the total amount of negative home equity in the U.S., according to CoreLogic.

Some additional findings from CoreLogic’s latest report:

The majority of homes that have equity tend to be on the higher end of the real estate market. Eighty-six percent of homes valued at more than $200,000 have equity, compared to 72 percent of home less than $200,000.
About 3.9 million home owners with negative equity have both first and second liens. Their average mortgage balance is $296,000 and their average underwater amount is $80,000.

Source: CoreLogic

Filed Under: Blog, Economy, real estate financing, Real Estate Updates

Money Magazine: The Real Estate Market is Back

March 19, 2013 By EmmanuelFonte Leave a Comment

Last week, I posted a Market Update that showed that the real estate market was coming back. Some may feel that the information was from a survey of industry players that may have a natural bias. For the doubters, here is the cover of the latest edition of Money Magazine released this past weekend.

The magazine supported their case by explaining:

In the last year, home prices increased in 92 of the country’s 100 largest metropolitan areas
Homes are more affordable than they’ve been in 40 years
The number of houses for sale is at the lowest level in a decade
Price increases are projected for most of the country this year

It seems that even the unbiased realize that Housing is Back!

Filed Under: Blog, Economy, Housing Market, Real Estate Updates

Survey: Americans Dream Big About Home Ownership

March 18, 2013 By EmmanuelFonte Leave a Comment

Eighty-seven percent of Americans recently surveyed say that owning a home is something they dream about, according to a survey by JPMorgan Chase.

“Owning a home is at the heart of most Americans’ dreams,” says Kevin Watters, CEO of mortgage banking at JPMorgan Chase. “And people are saving as much as possible to achieve home ownership.”

Sixty-six percent of Americans surveyed say that they believe home ownership is a good financial investment. Seventy-five percent say it’s a crucial part of raising a family.

First-time home buyers are getting more optimistic about being able to achieve home ownership too. The number of potential first-time home buyers who say they are optimistic about being able to put money down on a home over the next six months doubled in the last six months, compared to previous survey results.

“First-time home buyers are crucial to the housing market and the overall economy—and to their communities,” says Watters. “As families buy their first home, they are investing in their communities and enable other families to move up. That will eventually spur more new construction, generating additional jobs.”

Source: “Survey shows homeownership is still the American Dream,” HousingWire

Filed Under: Blog, Economy, Housing Market, Real Estate Investment, Real Estate Updates

The 10 Priciest Real Estate Markets in the World

March 16, 2013 By EmmanuelFonte Leave a Comment

New York is the lone U.S. city to land in the top 10 most expensive residential real estate markets in the world, according to a new report from Knight Frank.

But with luxury homes in New York costing anywhere from $2,030 to $2,240 per square foot, it’s only about half as expensive as the most expensive housing market in the world: Monaco. There, luxury homes can cost $5,350 to $5,920 per square foot.

The following are the top 10 priciest housing markets in the world and the average cost per square foot in U.S. dollars, according to the report:

Monaco: $5,350 to $5,920
Hong Kong: $4,570 to $5,050
London: $3,890 to $4,300
Geneva: $2,720 to $3,010
Paris: $2,350 to $2,600
Singapore: $2,340 to $2,580
Moscow: $2,040 to $2,260
New York: $2,030 to $2,240
Sydney: $2,020 to $2,230
Shanghai: $1,820 to 2,020

Other U.S. cities rounding out the top 20 list were Miami at number 13 (priced between $1,300 to $1,440 per square foot) and Los Angeles at number 15 (priced between$1,210 to $1,340 per square foot).

Source: “Here Are the World’s Most Expensive Real Estate Markets,” The Business Insider