Showing posts with label AZ. Show all posts
Showing posts with label AZ. Show all posts

Monday, February 16, 2015

Successful Cities Invest in Technology, Energy

DAILY REAL ESTATE NEWS | THURSDAY, FEBRUARY 12, 2015
Smart investments in energy and innovation earn San Francisco, CA and Austin, TX the distiction of being named the Best-Performing Cities in America by the Milken Institute.
Dynamic Cities
The Milken Insitute ranked 379 metro areas to help businesses, investors, government officials, and public-policy groups track and evaluate the performance of metros where they do business relative to the rest of the country. In the 2014 index, the they weighed nine factors, including  job, wage, and technology trends, with a heavy emphasis on growth in jobs creation and retention and the overall quality of new jobs.
What made these cities better equipped to weather the recent economic downturn was their ability to "offset high costs, an unfavorable tax structure, and a burdensome regulatory environment thanks to the clustering of talent and technology in an entrepreneurial ecosystem. The two main factors driving the success of these metros is technology and shale energy production.
"Technological advances in horizontal drilling and hydraulic fracturing are altering the energy landscape of the United States," according to the study. "Few experts had anticipated the magnitude of the boom in shale oil and gas exploration and production occurring since 2007. Energy investment has claimed the largest share of GDP since the early 1980s."
Study Highlights
  • San Franciso, CA, earned the top spot among large metros, accounting for 45 percent of all jobs created over the five years ending in 2013.
  • Five Texas metro areas were ranked in the top 10 list of best-performing cites, due to a combination of tech, energy strength, and a favorable business climate.
  • California and Colorado each had four metro areas in the Top 25.
  • Technology centers, made up of creative and scientific-based industries represented 13 of the Top 25.
  • Seven metros made the Top 25 due to large gains in shale oil and gas exploration, associated infrastructure investment, and related activities.
  • Fargo, ND, was No. 1 among small metros, benefitting from the shale oil boom and a diverse makeup of industries.
  • West Palm Beach, FL, increased 93 spots and was the city with the overall biggest increase.
Sources: "America's Best Performing Cities Are Invested In Technology And Energy,"  Fast Company (Jan 15, 2015), and "Best Performing Cities," Milken Institute, (Janaury, 2015)


Posted by at No comments:
Labels: , , , , , , , , , , , , ,

Wednesday, January 21, 2015

4 Things You Don’t Know About Outdoor Kitchens

DAILY REAL ESTATE NEWS | WEDNESDAY, JANUARY 21, 2015
Now that the 2015 International Builders’ Show has partnered with the Kitchen & Bath Industry Show, there are plenty of examples of beautiful cooking spaces, indoors and out. But what about the numbers? The results of a new survey released at the show attempt to define what consumers want when it comes to outdoor kitchens.
The Great Outdoors
Dave Brown, a partner with Chicago-based ad firm HY Connect, surveyed consumers who have or would like to have outdoor kitchens in their homes. The study, which surveyed households making $150,000 or more in household income across the United States, was conducted in December 2014. He discussed the results of the survey at the first day of IBS/KBIS in Las Vegas on Tuesday.
A Growing Market
While only 4 percent of affluent households have outdoor kitchens today, 13.6 percent say they are planning on adding one in 2014. Brown says that the largest age group who don’t have these amenities but are hoping to incorporate them in their living space is between the ages of 45 and 54. He also adds that those who are interested in this particular amenity are more likely to have children in the home, noting, “These are active households. They’re doing stuff.”
The Difference Between Indoor and Outdoor
The needs and wants associated with an indoor kitchen don’t necessarily translate to that of an outdoor cooking space. “Outdoors is all about socializing… it is all about having fun and a great experience,” Brown says, noting that adequate seating space is one place where home owners tend to underestimate. Also, he adds that “storage in the indoor kitchen is huge [but] in terms of the outdoors, food prep becomes more important.”
Unexpected Features Top Favorites Lists
It may not seem that surprising that survey respondents consistently rated the outdoor kitchen their favorite room in the whole house. However, their favorite features weren’t the traditional items seen in most outdoor entertainment areas. The No. 1 item that current owners of outdoor kitchen regretted leaving out was a pizza oven. “What’s loved the most is what’s unique. Fountains, fireplaces, pools,” Brown says. He adds that his backyard pizza oven serves as a gathering place for guests to participate in the food prep process. “It’s what I call ‘kitchen karaoke.’”
Integration Is Key
Brown says that many home owners start small with the intention of adding on features later. But he notes that the most successful, best-loved outdoor kitchens tend to occur when the design process is holistic: “It feels like an entire outdoor room where I can have an event and not just a bunch of stuff stuck outside.”
—Meg White, REALTOR® Magazine


Posted by at No comments:
Labels: , , , , , , , , , , , ,

Tuesday, October 28, 2014

Pending Home Sales Up, But Credit an Issue

DAILY REAL ESTATE NEWS | TUESDAY, OCTOBER 28, 2014
Pending home sales inched up slightly in September, and for the first time in 11 months, they were above year-ago levels, according to the National Association of REALTORS®' Pending Home Sales Index. However, tight credit conditions continue to be a barrier for many borrowers, NAR notes.
The Pending Home Sales Index rose 0.3 percent in September to 105. That's 1 percent above the September 2013 reading and the second-highest level since that time.
Opening the Credit Box
But sales are being held back because of potential buyers who are still unable to qualify for a mortgage. About 15 percent of REALTORS® in September indicated that the main reason for not closing on a deal was because their clients could not obtain financing.
Lawrence Yun, NAR's chief economist, says the final qualified residential mortgage rule will likely improve access to credit next year.
"The rule provides clarity for lenders and is a win for creditworthy consumers by ensuring they continue to have access to safe and affordable loan products without overly burdensome down payment requirements," Yun says.
Also, low mortgage rates, moderating price growth, and sustained inventory levels should help more buyers enter the market, Yun says.
"Housing supply for existing homes was up in September by 6 percent from a year ago, which is preventing prices from rising at the accelerated clip seen earlier this year," Yun notes.
In September, the Pending Home Sales Index rose in the South and Northeast but decreased in the Midwest and West.
Pending home sales were up by the highest percentage in the South — 1.4 percent month-over-month to a reading of 118.5. That was 1.7 percent above September 2013. Pending home sales also rose in the Northeast by 1.2 percent to 87.5 and are 2.9 percent above year-ago levels.
Meanwhile, pending home sales fell 1.2 percent in the Midwest to 101.2 in September and are now 4 percent below year-over-year levels for that region. Pending sales also fell in the West, dropping 0.8 percent last month to 101.3 but are still 3.6 percent above a year ago.


Posted by at No comments:
Labels: , , , , , , , , , , , , , ,

New-Home Sales Inch to 6-Year High

DAILY REAL ESTATE NEWS | MONDAY, OCTOBER 27, 2014
For the third consecutive month, sales of newly built single-family homes edged up, “demonstrating steady growth in the housing market,” says Kevin Kelly, chairman of the National Association of Home Builders. However, housing analysts caution that the sector remains fragile.
New-home sales inched up slightly by 0.2 percent in September to a seasonally adjusted annual rate of 467,000 units—the highest level since June 2008, according to new data from the U.S. Department of Housing and Urban Development and U.S. Census Bureau. The median price of new homes in September was $259,000, a 4 percent drop year-over-year.
"We expect the housing market recovery to remain relatively gradual over the coming months," Gennadiy Goldberg, an economist at TD Securities in New York, told Reuters.
In September, the inventory of new homes rose to 207,000—a 5.3-month supply at the current sales pace. Most economists consider 6 months a healthy balance between supply and demand. The slow-growing inventory of new homes points to builders gaining confidence in the market, says NAHB Chief Economist David Crowe.
Regionally, new-home sales rose the most in the Midwest, posting a 12.3 percent gain month-over-month, followed by a 2 percent rise in the South. Sales stayed flat in the Northeast and fell 8.9 percent in the West.
The government revised August’s reported new-home sales figures, reflecting the fact that sales actually posted a sharp decline last month, as opposed to what had been originally reported. August’s sales numbers were revised down to 466,000 units from the originally reported 504,000 units.


Posted by at No comments:
Labels: , , , , , , , , , ,

Wednesday, October 15, 2014

Major Incentives for Home Buyers This Fall

DAILY REAL ESTATE NEWS | TUESDAY, OCTOBER 14, 2014
Homebuilders are throwing in some extras to lure home buyers back this fall. For example, 10 homebuilders in a new suburban Phoenix community called Bridges at Gilbert are offering swimming pools, built-in barbecues, and subsidized mortgages.
Unique Incentives
Joseph Beben, a home buyer in the Phoenix area, says he chose to have a house built by Woodside Homes, which agreed to cover up to $10,000 of his closing costs as well as the price of a swimming pool. Beben will pay $332,000 for a 3,000-square-foot house. 
"Builders in volatile housing markets, such as Phoenix, Sacramento, Las Vegas, and Orlando, are sweetening offers as sales slow," Bloomberg Business reports.
The large increases in home prices last year have discouraged some buyers. The number of new-home communities in Phoenix rose by a third in the past year to 457, but sales per community dropped 45 percent last month from a year prior, according to Jim Belfiore, president of Belfiore Real Estate Consulting.
Builders in Nevada also saw a big drop in sales this year. In Las Vegas, new-home sales surged 32 percent in 2013 — but in the first eight months of this year, they have fallen 26 percent from the previous year, says Dennis Smith, president of Home Builders Research, a Las Vegas-based consulting company. A similar trend is taking hold in Sacramento, Calif., where new-home sales plunged 16 percent last month year-over-year.
Builders are beginning to discount homes and look for ways to boost sales. Orlando builders, for example, reportedly are advertising discounts and appliance packages, as well as offering to cover closing costs, after new-home sales dropped 19 percent year-over-year in June.
Buyers are enjoying being the drivers at the moment in some of these markets. Bob Berg, a retiree from Chicago, was looking for homes in the Phoenix area. "A couple of builders said to me, 'What will it take for you to buy this home?'" Berg says. "That's kind of drastic when they say something like that. It tells me they want to move that home."
Source: "Homebuilders Offer Goodies as Sales Slow," Bloomberg BusinessWeek  (Oct. 9, 2014)


Posted by at No comments:
Labels: , , , , , , , , , , , ,

10 Best College Towns for House Flippers

DAILY REAL ESTATE NEWS | TUESDAY, OCTOBER 14, 2014
College towns have long been known as havens for investors looking to cash in on rentals or turn a profit on a home flip. RealtyTrac recently ranked the best college towns for flippers in 2014.
Want to Flip? Know This
RealtyTrac analyzed public four-year universities that had enrollment of 20,000 or more as of 2012 and also were located in counties that had unemployment rates below the national average of 6.2 percent. The top 10 college towns for flipping were ranked based on the average gross return on investment (ROI) percentage for single-family home flips there during the first eight months of 2014. (Note: Some college towns did not have sufficient sales or flipping data to be included in the rankings).
Here are the college towns that topped RealtyTrac's 2014 list:
  1. University of Minnesota (Minneapolis)
    Average gross flip profit: $105,292
    ROI: 65.59%
  2. University of Washington (Seattle)
    Average gross flip profit: $168,247
    ROI: 61.88%
  3. University of Nebraska (Lincoln, Neb.)
    Average gross flip profit: $53,763
    ROI: 55.01%
  4. San Francisco State (San Francisco)
    Average gross flip profit: $402,790
    ROI: 54.16%
  5. Thomas Edison State College (Trenton, N.J.)
    Average gross flip profit: $40,497
    ROI: 48.06%
  6. University of Florida (Gainesville, Fla.)
    Average gross flip profit: $41,235
    ROI: 47.95%
  7. University of Colorado (Denver)
    Average gross flip profit: $103,658
    ROI: 45.86%
  8. University of Cincinnati
    Average gross flip profit: $45,929
    ROI: 44.88%
  9. University of Akron (Akron, Ohio)
    Average gross flip profit: $35,909
    ROI: 42.95%
  10. North Carolina State (Raleigh, N.C.)
    Average gross flip profit: $61,028
    ROI: 38.52%
Source: RealtyTrac


Posted by at No comments:
Labels: , , , , , , , , , , , ,

Thursday, September 11, 2014

More Singles Than Ever: How It Affects Real Estate

DAILY REAL ESTATE NEWS | THURSDAY, SEPTEMBER 11, 2014
In the age of "selfies," the majority of adults are sticking to themselves. Single Americans now make up more than half of the adult population, the first time the number of singles has passed the 50 percent mark since the government began tracking such data in 1976.
A Force to Be Reckoned With
About 124.6 million Americans indicated they were single in August; 50.2 percent were age 16 or older, according to new data from the Bureau of Labor Statistics. The percentage has been gradually trending upward since the beginning of 2013.
The rise of single households has "implications for our economy, society, and politics," writes Edward Yardeni, president of Yardeni Research Inc., in a report called "Selfies." He called the proportion of singles today "remarkable."
What are the implications for real estate? Singles, particularly younger professionals, are more likely to rent than own a home. They are less likely to have children, and the growth in single households likely will exaggerate income inequality, Yardeni notes.
"While they have less household earnings than married people, they also have fewer expenses, especially if there are no children in their households," Yardeni writes in his report.
The number of never-married adult Americans has been on the rise, too, increasing to 30.4 percent from 22.1 percent in 1976. The number of divorced, separated, or widowed adults also has risen up to 19.8 percent from 15.3 percent.
Some real estate analysts are expecting an increase in singles heading into home ownership in the coming years. For example, single women make up the second largest segment of home purchases, with one out of every five homes purchased by a single woman, according to National Association of REALTORS® data. More than 25 million single women over the age of 45 — who may be either divorced, widowed, or never married — are also making up a growing number of home owners, real estate professionals report.
Some builders are even catering to this growing segment, reportedly adding two master bedrooms to appeal to the 40 percent of single women who choose to have non-romantic roommates, according to AARP surveys. 

Posted by at No comments:
Labels: , , , , , , , , , ,

Wednesday, September 3, 2014

Sluggish Housing Market Blamed for Drop in Title Insurance Volume

DAILY REAL ESTATE NEWS | WEDNESDAY, SEPTEMBER 03, 2014
Title insurance premium volume has fallen 16.6 percent during the second quarter of this year compared to last year, according to the American Land Title Association.
“A lackluster spring homebuying season that was weaker than anticipated, coupled with a substantial decline in refinance activity, resulted in the drop in title insurance premium volume,” says Michelle Korsmo, ALTA’s CEO. “Despite the lull in the housing market, the title insurance industry remains in a strong financial position posting more than $90 million in net income this quarter. … For more than a century, title insurance companies have protected the interests of home buyers through a process that has given Americans a sense of security in what is almost always their most significant investment – their homes.”
Capitalizing on Titles
During the second quarter of 2014, the title insurance industry generated $2.7 billion in title insurance premiums, compared with $3.3 billion during the second quarter of 2013, according to ALTA.
The title insurance companies that have the largest market share in the industry are Fidelity Family (34%); First American Family (27%), and Old Republic Family (14%).
Meanwhile, the following states generated the most title insurance premiums in the second quarter of 2014:
  • Texas: $430 million, down 1.5% from the second quarter of 2013
  • California: $354 million, down 21.5%
  • Florida: $264 million, down 10%
  • New York: $225 million, down 0.6%
  • Illinois: $101 million, up 2.9%


Posted by at No comments:
Labels: , , , , , , , , , , , ,

Monday, July 28, 2014

New-Home Sales Post Biggest Drop in a Year



DAILY REAL ESTATE NEWS | FRIDAY, JULY 25, 2014
Sales of newly built, single-family homes dropped 8.1 percent in June, the largest decline since July 2013, the Commerce Department reported Thursday. New-home sales were at a seasonally adjusted annual rate of 406,000 units in June. May’s sales pace was also revised from a previously reported 504,000 units to 442,000 units.
"The numbers are a little disappointing, but May was unusually high and some pull back isn't completely unexpected," says Kevin Kelly, chairman of the National Association of Home Builders. "Our surveys show that builders are confident about the future and we are still seeing a gradual upward trajectory in housing demand."
Recovery or Not?
Across the country, new-home sales were down, falling by the largest amount – 20 percent – in the Northeast. New-home sales were also down by 9.5 percent in the South; by 8.2 percent in the Midwest; and by 1.9 percent in the West.
Inventories of new homes for-sale rose 3.1 percent in June to the highest number since October 2010, reaching a 5.8-month supply at the current pace.
Builders are still optimistic that the new-home sector will see improvement later this year.
"With continued job creation and economic growth, we are cautiously optimistic about the home building industry in the second half of 2014," says David Crowe, NAHB chief economist. "The increase in existing home sales also bodes well for builders, as it is a signal that trade-up buyers can move up to new construction."
The National Association of REALTORS® reported this week that existing-home sales gained momentum in June, reaching an annual pace of 5 million sales for the first time since October 2013.

Posted by at No comments:
Labels: , , , , , , , , , , ,

Thursday, July 24, 2014

The 7 Most Energy-Efficient States

DAILY REAL ESTATE NEWS | WEDNESDAY, JULY 23, 2014
Massachusetts overtook California this year as the top state for energy efficiency, according to the American Council for an Energy-Efficient Economy’s state scorecard. California had been the leader for the past four years, but Massachusetts’ “Green Communities Act,” which has powered up investments in energy efficiency throughout the state since 2008, helped push the state to the No. 1 spot this year.
Energetic Improvements
“The legislation requires electric utilities in Massachusetts to purchase all available energy-efficiency improvements that cost less than it does to generate power,” Thomas Bourgeois, the co-director of the U.S. Department of Energy Northeast Clean Energy Application Center, told Forbes. “It has been a major boon to energy efficiency in Massachusetts over the past three years.”
Here’s how the states stacked up for energy efficiency, according to ACEEE’s scorecard:
1. Massachusetts
2. California
3. New York
4. Oregon
5. (tie) Vermont
5. (tie) Washington
5. (tie) Rhode Island
Source: “The Most Energy-Efficient States in America,” Forbes (July 2014)


Posted by at No comments:
Labels: , , , , , , , , , , , ,

3 Challenges Still Facing the Housing Market

DAILY REAL ESTATE NEWS | WEDNESDAY, JULY 23, 2014
Existing-home sales gained momentum in June, reaching an annual pace of 5 million sales for the first time since October 2013, according to the National Association of REALTORS®’ latest housing report. Rising inventories also are pushing the overall supply of homes for sale toward a more balanced market, with unsold inventories 6.5 percent higher than a year ago, NAR notes.
“Inventories are at their highest level in over a year and price gains have slowed to much more welcoming levels in many parts of the country,” says Lawrence Yun, NAR’s chief economist. “This bodes well for rising home sales in the upcoming months as consumers are provided with more choices.”
Growing Optimism?
Still, the market is facing several headwinds that continue to subdue a more robust recovery. NAR noted three in its most recent housing report:
1. Sluggish new-home construction: While overall housing inventories showed improvement in June, inventory problems continue to weigh on the market and could become more problematic if new-home construction doesn’t increase in more markets, NAR notes. “New-home construction needs to rise by at least 50 percent for a complete return to a balanced market because supply shortages — particularly in the West — are still putting upward pressure on prices,” Yun notes.
2. Stagnant wage growth: Yun also noted that stagnant wage growth is holding back what should be a stronger pace of sales. “Hiring has been a bright spot in the economy this year, adding an average of 230,000 jobs each month,” Yun notes. “However, the lack of wage increases is leaving a large pool of potential home buyers on the sidelines who otherwise would be taking advantage of low interest rates. Income growth below price appreciation will hurt affordability.”
3. Dwindling first-time home buyers: The percentage of first-time buyers continues to be low by historical standards. First-time home buyers made up 28 percent of the market in June, down from a typical 40 percent of the market historically.
NAR President Steve Brown says that some prospective buyers who have above average credit scores but low down payments are being deterred from home ownership by the high cost of FHA mortgage insurance.
“Access to affordable credit continues to hamper young, prospective first-time buyers,” says Brown. “NAR recommends that the FHA reduce high annual mortgage insurance premiums for all qualified homebuyers and eliminate the insurance requirement for the life of the loan. The FHA’s HAWK program is a good start, but it should offer further reductions for participating home buyers.”
Housing Snapshot for June
Here are some more housing indicators from NAR’s most recent report.
Home prices: Median existing-home prices for all housing types in June was $223,300, 4.3 percent higher than year-ago levels. This was the 28th consecutive month for year-over-year price gains.
Distressed homes: Foreclosures and short sales accounted for 11 percent of June sales, a 15 percent drop from year-ago levels. On average, foreclosures sold for a discount of 20 percent below market value, while short sales were discounted 11 percent in June.    
Time on market: The median time on market for all homes was 44 days in June, up from 37 days on market in June 2013. Forty-two percent of homes sold in June were on the market for less than a month.
All-cash sales: All-cash sales made up 32 percent of transactions in June, up slightly from 31 percent in June 2013. Individual investors, who account for the majority of cash sales, purchased 16 percent of homes in June, down from 17 percent in June 2013.
Regional Snapshot
Take a closer look at how existing-home sales fared in your area.
  • Northeast: Existing-home sales increased 3.2 percent, but remain 3 percent below year-ago levels. Median price: $269,800, an 0.1 percent decrease from June 2013.
  • Midwest: Existing-home sales surged 6.2 percent, but remain 2.4 percent below June 2013. Median price: $177,900, up 4.6 percent from a year ago.
  • South: Existing-home sales rose slightly by 0.5 percent, up 1 percent from June 2013. Median price: $192,600, up 3.4 percent from a year ago.
  • West: Existing-home sales increased 2.7 percent, but remain 7.3 percent below a year ago. Median price: $301,000, up 7.2 percent from a year ago.


Posted by at No comments:
Labels: , , , , , , , , , ,

Wednesday, July 23, 2014

What Consumers Want Smart Homes to Do

DAILY REAL ESTATE NEWS | TUESDAY, JULY 22, 2014
When it comes to smart homes, consumers are more interested in their security features than the gadgets that control the homes' appliances. New research by Icontrol Networks, a home technology company, shows that 90 percent of 932 respondents recently surveyed say that security is one of the most important reasons for using a smart-home system. In fact, 67 percent rank it the No.1 reason, and the majority of consumers say security is a must-have in any home automation, according to Icontrol's 2014 State of the Smart Home Report.
Fire and carbon monoxide alarms, as well as gas leak alarms, were listed as top security features, according to the survey.
Smarter Homes
"For now, safety and security are driving initial mass market adoption," says Jim Johnson, executive vice president of Icontrol Networks. "But the convenience associated with a connected home will likely play a greater role as consumers realize how much easier automation makes their lives."
Seventy-eight percent of respondents also ranked energy management as one of the top features that matter most to them in a smart home. HVAC heating and cooling management was cited as the most important feature in helping to reduce utility bills. Nearly 43 percent of respondents say they'd be interested in replacing their thermostat with a "smart thermostat," one that automatically adjusts when the home is occupied.
Would home owners be willing to pay for the extra costs in making their homes smarter and more connected? The survey found that 51 percent of respondents would be willing to pay up to $500 for a fully equipped smart home; 32 percent say they'd pay $500 to $3,000.
Source: “What Consumers Want in Home Automation,” Builder (July 17, 2014)


Posted by at No comments:
Labels: , , , , , , , , , , , ,

Thursday, July 17, 2014

10 Cities Where Wages Stretch the Farthest

DAILY REAL ESTATE NEWS | THURSDAY, JULY 17, 2014
The cost of living can have a big impact on how your income actually stretches. Therefore, adjusting wages for living costs can provide a better glimpse at how much people actually make, suggests a study by Jose Lobo of Arizona State University. Lobo crunched data from the U.S. Bureau of Economic Analysis to find the "real average wage per job," taking into account cost of living and real per-capita personal incomes.
Jobs = Real Estate
"Knowledge hubs and energy centers — those that have both very high wages and generally fair high costs of living, especially along the coasts — dominate the list," The Atlantic CityLab reports. Also, energy metros rose to the top due to a natural gas boom that is rapidly increasing wages in some areas of the country, while cost of living has remained lower than their big-city counterparts, the study notes.
Workers in higher-cost places still tend to do better than most, even when taking into account the higher costs for housing and other expenses, the study suggests. "Their higher wages more than compensate," the article notes. "This takes some of the wind out of the sails of the arguments that people are better off moving from higher-cost to lower-cost places. The underlying factors that improve productivity and increase wages in the first place help workers do better in these high-cost metros."
According to Lobo's study, the following are the metros with the highest real average wages:
  1. San Jose-Sunnyvale-Santa Clara, Calif.: $75,288
  2. Bridgeport-Stamford-Norwalk, Conn.: $64,321
  3. San Francisco-Oakland-Hayward, Calif.: $60,562
  4. California-Lexington Park, Md.: $59,130
  5. Durham-Chapel Hill, N.C.: $58,166
  6. Midland, Texas: $58,153
  7. Houston-The Woodlands-Sugar Land, Texas: $57,461
  8. Midland, Mich.: $57,328
  9. Trenton, N.J.: $55,317
  10. Boston-Cambridge-Newton, Mass.-N.H.: $55,306
Source: “Where Americans Really Earn the Most From Their Paychecks,” The Atlantic CityLab (July 14, 2014)

Posted by at No comments:
Labels: , , , , , , , , , , ,

Tuesday, July 15, 2014

Why Low Rates Aren't Always Good for Housing

DAILY REAL ESTATE NEWS | MONDAY, JULY 14, 2014
Mortgage rates are near historic lows, which is great news for home owners and buyers. But the situation could prove to be a big thorn in the side of the recovery.
More than one-third of homes with a mortgage have a mortgage rate below 4 percent, according to estimates provided by CoreLogic, a real estate data provider. Many home owners have taken advantage of low rates recently, fueling a refinance boom. Some home buyers were able to snag a record low of 3.3 percent interest in 2012.
As such, many home owners may be more inclined to stay put, unwilling to swap out a low mortgage rate for a new mortgage that could carry a rate up to one percentage point higher or more in the coming months. Those who can't stay put may decide to keep their home and rent it out. In any case, the number of homes for-sale could continue to be low and contribute to slower home sales, housing analysts note.
Mark Fleming, chief economist at CoreLogic, estimates that up to 3.6 million home owners will be unlikely to sell this year because they do not want to give up a lower mortgage rate.
"They got the deal of the century," Glenn Kelman, CEO of Redfin, a real estate brokerage, told The Associated Press. "I don't think in 100 years anyone will be lending money at 3.5 percent. How do you walk away from a deal like that?"
Indeed, The Associated Press reports that this marks a significant shift from the way the housing market has worked in the past three decades. “For most of that time, whenever a home owner decided to trade up to a better home, mortgage rates usually were lower than the last time they had bought,” The Associated Press reports. “That helped make a new purchase seem more attractive.”
Economists say “rate lock-in” is a contributing factor for why so few homes are for sale. The housing market has faced a shortage of homes since late 2012. For every $1,000 increase in a home owner’s annual mortgage payment, the likelihood that the home owner would sell dropped as much as 16 percent, according to a 2011 study by the Federal Reserve Bank of New York.
Source: “Record-Low Mortgage Rates Now Haunt the Housing Market,” The Associated Press (July 11, 2014)



Posted by at No comments:
Labels: , , , , , , , , , , , , ,
Subscribe to: Posts (Atom)