- Inventory Levels are still below the 6.0 month level necessary for a normal market
- Home Prices have experienced year-over-year gains for 38 straight months
- Home sold faster than any time since June 2013, in just 39 days
There are 14 blog entries for May 2015.
Today, many real estate conversations center on housing prices and where they may be headed. That is why we like the Home Price Expectation Survey.
Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts and investment & market strategists about where prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.
In the latest Rent vs. Buy Report from Trulia, they explained that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage throughout the 100 largest metro areas in the United States.
The updated numbers actually show that the range is from an average of 16% in Honolulu (HI), all the way to 55% in Sarasota (FL), and 35% Nationwide!
Earlier this week, the National Association of Realtors (NAR) released their latest quarterly report. The report covered three important aspects of the housing market:
Today, we want to break down the highlights of the report along with several quotes from Lawrence Yun, the Chief Economist at NAR.
Total existing-home sales (which include single family and condo) were at an annual rate of 4.97 million in the first quarter of 2015. This represents a number which is 6.2 percent higher than the pace during the first quarter of 2014.
Yun: "Sales activity to start the year was notably higher than a year ago, as steady hiring and low interest…
We recently reported that investment purchases in 2014 fell 7.4% for the year, that combined with a diminished supply of distressed inventory allowing for big profits, has real estate investors looking for a new way to make more money in 2015.
So if they don’t have new properties to buy… how would they make more money? Easy… they are going to raise your rent!
A recent article from Bloomberg Business gave insight into exactly what the CEO’s of major investment firms are thinking.
“We are focusing aggressively on rent bumps,” American Residential Properties CEO Stephen Schmitz said during a panel discussion. “There’s a supply imbalance in some markets. The same thing that keeps occupancy high also drives rents.”
The National Association of Realtors (NAR) recently released a report revealing that the growing wealth gap in this country has been impacted by the recent increases in real estate values coupled with the drop in homeownership rates. The report discloses:
“Over 90 percent of metro areas have experienced declining homeownership rates at a time when home values have risen and incomes have remained flat.”
Increasing home values in many regions of the country have helped homeowners build housing wealth in recent years. However, the continued decline in homeownership means this increase in wealth is shared by fewer people and likely leading to worsening inequality in the U.S.
Here is a chart showing the aforementioned increasing gap between…
We have reported many times that the American Dream of homeownership is alive and well. The personal reasons to own differ for each buyer, with many basic similarities.
Eric Belsky, the Managing Director of the Joint Center of Housing Studies at Harvard University expanded on the top 5 financial benefits of homeownership his paper - The Dream Lives On: the Future of Homeownership in America.
Here are the five reasons, each followed by an excerpt from the study:
“Few households are interested in borrowing money to buy stocks and bonds and few lenders are willing to lend them the money. As a result, homeownership allows households to amplify any appreciation on the value of…
Four recent news articles confirmed that most Americans still see real estate as a great long term investment. The Gallup organization polled the American people and discovered that they believe that real estate is a better long term investment than stocks/mutual funds, gold, savings or bonds:
A second survey was done by Edelman Berland which showed that:
At the same time, Tim Rood, chairman of the business advisory firm The Collingwood Group, explained that real estate is:
“…one of the last legitimate wealth creation opportunities…The leveraged return if you put down 10 percent on a house, the trajectory of appreciation lately is you’re going to get your money back inside of a year and then after that 5 to 10 percent appreciation…