Hello my name is Skip. I am with Weichert, Realtors and I am inviting you to a Realtor Open house Thursday 5th at 1159 Forest Hill Road from 1:00-4:00pm. This is a brand new listing. I would like to see you there. Thanks and I will talk to you later. V/R Skip
Daily Real Estate News | Tuesday, April 08, 2014
Consumer attitudes are reflecting greater optimism in the housing market heading into real estate's traditionally strong spring selling season, according to Fannie Mae's March 2014 National Housing Survey.
In the poll of 1,000 people, 38 percent say it's a good time to sell a home, up from 26 percent a year ago. The poll also shows that 69 percent of those surveyed say it's a good time to buy, and 52 percent say it's easier today to get financing for a home.
Americans also feel more confident about their personal finances: An all-time survey high of 40 percent say their personal financial situation has improved during the past year.
"The housing recovery continues to proceed in fits and starts," says Doug Duncan, Fannie Mae’s chief economist. "Rising mortgage rates and a lack of supply have dampened housing market momentum. However, we see several positive signs going into this year's spring home-buying season, compared with last year. For example, consumers are less pessimistic about their personal finances and more optimistic about the current selling environment and their ability to get a mortgage. Still, those who are pessimistic about buying or selling a home today tend to point to economic conditions as the primary issue, and most consumers continue to say the economy is on the wrong track. Looking forward, we expect to see a pickup in economic growth later in the year, and this may boost the confidence of prospective buyers and sellers."
However, consumers' home-price expectations softened a bit in the latest survey. The average 12-month home-price-change expectation fell from last month, reaching 2.7 percent, the survey shows. Also, slightly fewer respondents — 48 percent — said they thought home prices would rise in the next 12 months.
Source: Fannie Mae
Daily Real Estate News | Monday, April 07, 2014
As apartment demand continues to rise, landlords are projected to increase their rents for the fifth consecutive year. A rise in apartment construction isn’t likely to offer relief to tenants anytime soon either, USA Today reports.
Between 2000 and 2012, apartment rents have risen 6 percent while incomes among renters have fallen 13 percent in that time period, according to a report from Apartment List, a rental housing website that adjusts for inflation.
"That's what we call the affordability gap," says John Kobs, Apartment List's chief executive. "I don't see that improving in the near future."
The vacancy rate for apartments has dropped from 8 percent to 4.1 percent from 2009 to 2013, according to Reis, a commercial real estate data provider. Meanwhile, the average national effective rent has increased 12 percent to $1,083 from 2009 to 2013, according to Reis, which data reflects apartments in buildings with 40 or more units.
During that same time period, the median price of an existing home has risen about 14 percent, according to the National Association of REALTORS®. Many renters – which surveys show want to buy a home – are unable to purchase a home due to tight credit conditions that are preventing them from obtaining financing.
Rents rose the most in 2013 in Seattle, increasing 7.1 percent in the past year, followed by San Francisco, which has risen 5.6 percent, Reis reports.
More apartment buildings are under construction nationwide to respond to rising demand. Reis experts expect a stronger job market will push more people out of living with their parents or being roommates and increase rental demand. Reis predicts the effective apartments will rise 3.3 percent this year to an average $1,118 nationwide.
Source: “Growing Demand for Apartments Pushes up Rents,” The Associated Press (April 5, 2014)
Daily Real Estate News | Monday, April 07, 2014
As the spring market heats up, more buyers are finding higher home prices than they may have expected, CNBC reports.
“People quite frankly came out and got sticker shock … they picked up the price sheet and saw, ‘Wow, that’s way more than I thought’ because home prices had gone up so much in 2013,” Brad Hunter, chief economist at Metrostudy, told CNBC.
Existing-home prices were up 9.1 percent in February above year ago levels, according to the National Association of REALTORS®. Meanwhile, incomes are up just 2.1 percent from a year ago, according to the Bureau of Labor Statistics.
Home builders also have been raising their prices over the past year. For example, D.R. Horton, one of the nation’s largest builders, announced earlier this year that it planned to raise home prices in some of its markets this spring. In January, the builder said the average price of its homes under contract was up 10 percent in the past year.
Buyers also are facing rising mortgage rates and tighter credit conditions.
Still, while prices have been on the rise, home prices are well off their peak from the housing boom in 2006, housing experts note. Inventories remain constrained in many markets as some home owners wait for higher home prices before they list.
"I think buyers are extremely fickle, and what's weird about it is the market is in a funk on both sides, it's like trying to get pandas to mate at the zoo," Glenn Kelman, CEO of Redfin, told CNBC. “Sellers feel like, 'I can rent it out. I've got a very low mortgage rate on this place, and when I sell the house I'm also giving up a 30-year mortgage on it at 3.5 percent.'"
Source: “Homebuyers Face Spring Sticker Shock,” CNBC.com (April 4, 2014)
Monika B. Newman, CRB, MRE
Pikes Peak Group
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