The Kallhoff Team

Thursday, May 2, 2013

Loan Demand Rises as Rates Fall

DAILY REAL ESTATE NEWS | THURSDAY, MAY 02, 2013

Mortgage applications climbed 2 percent last week as several key interest rates dropped, the Mortgage Bankers Association reports.

Mortgage applications for refinancings, which make up the biggest bulk of MBA’s index, rose 3 percent for the week ending April 26, reaching its highest level since January. Meanwhile, mortgage applications for home purchases fell last week by 1.4 percent compared to a week earlier.

“Low interest rates have attracted new buyers and persuaded many home owners to refinance their mortgages,” Dow Jones reports. “However, tightened credit restrictions still bar many borrowers from filing loan applications.”

The 30-year fixed-rate mortgage averaged 3.6 percent last week, its lowest rate since December, MBA reports.

Source: “U.S. Mortgage Applications Up 2%,” Dow Jones Newswires (May 1, 2013)

http://realtormag.realtor.org/daily-news/2013/05/02/loan-demand-rises-rates-fall

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Wednesday, May 1, 2013

Home Ownership Rate Drops to Lowest Point in 18 Years

DAILY REAL ESTATE NEWS | WEDNESDAY, MAY 01, 2013

The U.S. home ownership rate has fallen to its lowest point since 1995, the Census Bureau reports.

The home ownership rate dropped to 65 percent in the first quarter, down slightly from 65.4 percent a year earlier.

Housing analysts say tight credit conditions, constrained inventories of for-sale homes, and an increase in single-family rental homes have caused the home ownership rate to fall.

Paul Diggle, a property economist for Capital Economics, says he predicts the home ownership rate will likely fall for the remainder of the year.

The home ownership rate peaked in June 2004 when it stood at 69.2 percent.

Source: “U.S. Homeownership Rate Falls to Lowest Since 1995,” Bloomberg News (April 30, 2013)

http://realtormag.realtor.org/daily-news/2013/05/01/home-ownership-rate-drops-lowest-point-in-18-years

Friday, April 26, 2013

Best Time to Sell? More Americans Say 'Yes'

DAILY REAL ESTATE NEWS | FRIDAY, APRIL 26, 2013

Seller confidence is surging: The number of home sellers who say now is a good time to sell doubled in the second quarter, according to a new survey of nearly 2,000 owners conducted by real estate brokerage Redfin. In the first quarter of 2013, 22 percent surveyed said it was a good time to sell compared to 45 percent in the second quarter.

The percentage of respondents who say now is a good time to buy dropped by 10 percent in that time frame. Forty-four percent of home owners say it's a good time to buy, compared to 54 percent in the first quarter.

"More folks who bought before the bubble burst are now above water and listing their homes," says Chad Dierickx, a real estate practitioner with Redfin. "When sellers see their neighbors' homes selling quickly and for prices they never would have imagined a couple of years ago, they can't help but be optimistic about the market."

Nearly 32 percent of home owners surveyed said they have no concerns about selling right now. Eighty-five percent of sellers say they believe home prices will rise in their area for the next year — up from 81 percent in the first quarter, according to the survey.

Source: Redfin

http://realtormag.realtor.org/daily-news/2013/04/26/best-time-sell-more-americans-say-yes

Thursday, April 25, 2013

Tight Housing Supplies Plague Spring Market

DAILY REAL ESTATE NEWS | THURSDAY, APRIL 25, 2013

Home sales are “stuck” this spring due to the limited number of homes available to buy, says Lawrence Yun, chief economist for the National Association of REALTORS®.

The supply of homes for sale is 17 percent below year-ago levels, according to NAR data.

For-sale inventories are most constrained on the low-end of the housing market, where investors had moved in floods to purchase distressed homes and hold them as single-family rentals, housing experts note. About a four-month supply of homes is available under $100,000. As such, sales of low-end homes have dropped 16 percent from year ago because there just isn’t enough inventory, according to NAR.

Some home owners are still hesitant to sell, noticing the recent price increases and hoping for more, notes Richard Smith, CEO of Realogy Holdings. "If I am underwater in my equity and now suddenly I'm not, but I'm up 5 percent and the market around me is appreciating 6,7,8,9, 10 percent, why don't I wait and perhaps get a 10 percent return on my investment, not a 5 percent return?" Smith explains.

"The housing shortage is going to continue," Yun told CNBC. He says that home builders will need to ramp up their housing starts by 50 percent to help meet demand, but he says that is unlikely due to constraints such as land and labor shortages.

Source: “Housing's Spring Bloom 'Stuck' Due to Short Supply,” CNBC (April 22, 2013)

http://realtormag.realtor.org/daily-news/2013/04/25/tight-housing-supplies-plague-spring-market

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Wednesday, April 24, 2013

More Americans Become 'Rent-burdened'

DAILY REAL ESTATE NEWS | WEDNESDAY, APRIL 24, 2013

Rental costs have been on the rise, outpacing stagnant salaries and widening the affordability gap, according to a new study by DePaul University.

"After the housing crisis, households shifted to renting for a number of reasons," says Geoff Smith, co-author of a study on the affordability gap and executive director of DePaul University’s Institute for Housing Studies. "The weak economy, homes lost to foreclosure, increased difficulty receiving a mortgage, a lack of confidence in the housing market and flexibility with renting all contributed to a boom in the rental housing market."

Households that spend more than 30 percent of their monthly income on rent are often considered “rent burdened.”

But with rental prices and home prices on the rise, how are families supposed to be able to save up for a down payment on a home?

"In strong markets, keeping housing affordable is the challenge, while in weaker markets the focus is on community development and rebuilding demand,” Smith says. “In transitional markets, understanding whether the increase in rental demand is short- or long-term will inform the appropriate policy response.”

Source: “Rising rental rates and Stagnant Salaries Widen Affordability Gap,” HousingWire (April 23, 2013)

http://realtormag.realtor.org/daily-news/2013/04/24/more-americans-become-rent-burdened

Tuesday, April 23, 2013

6 Ways to 'Green' a Home

DAILY REAL ESTATE NEWS | TUESDAY, APRIL 23, 2013

More home owners and buyers are ranking energy-efficient and environmentally friendly home features high in surveys.

AOL Real Estate recently highlighted a few easy steps home owners can take to make their homes more “green”:

Swap out the light bulbs: LED light bulbs are known as being 80 percent more energy efficient and lasting as much as 25 times longer than incandescent bulbs.
Have a programmable thermostat: These devices that allow you more easily to adjust the temperature can save a home owner about $180 a year in energy costs, according to Energy Star.
Trade in the old water heater: A heat pump hot water heater is known to be more than twice as efficient as standard electric resistance tanks, according to the AOL Real Estate article.
Add aerators to faucets and showerheads: These devices can limit the amount of water that is used.
Add ceiling fans: “Energy Star-qualified fans are 50 percent more efficient than conventional units and can save up to $15 per year on utility bills,” according to AOL Real Estate.
Use Energy Star appliances: For example, replacing a dishwasher that was made before 1994 with an Energy Star-certified one can save $40 on utility bills by using less water. Energy Star-rated refrigerators can save home owners from $200 to $1,100 over the life of the appliance.