Barclays Capital predicts that home prices will not fall much more with prices then remaining virtually flat for a few years.
Don Grafues
Resource: REALTOR.org
Resource: REALTOR.org
March 9, 2010
February 27, 2010
Mortgage Applications Down
Mortgage applications fell last week by 8.5 percent from the prior week. Contributing factors would have been the storms on the east coast and a slight uptick in rates.
Don Grafues
Resource: REALTOR.org
Resource: REALTOR.org
February 19, 2010
New Home Construction Up
The Commerce Department reports that new home construction improved in January.
- January’s build was at an annualized rate of 591,000.
- This is up 2.8% from December’ annualized rate (revised) of 575,000.
- And up 21.1% from January’s 2009 rate of 488,000.
Don Grafues
Resource: REALTOR.org, The Wall Street Journal & CNNMoney.com
Resource: REALTOR.org, The Wall Street Journal & CNNMoney.com
February 18, 2010
New Home Construction Improving?
REALTOR.org ran a news article on the 16th with the headline “Analyst Predicts Improvement in Home Building” which appears to be positive news. But then the article goes on to list several factors that may impact the degree to which new home construction will recover.
- The tax credits will soon come to an end removing this inducement for buyers.
- Mortgage rates are expected to go up.
- More foreclosures (see yesterday’s article “Continued Pressure On Home Sales”).
- FHA has tightened their requirements (see our post “FHA Changes Rules”).
- Timing of recovery of the jobs market.
So tell me what you think; will new home construction recover? Give your opinion by clicking on “comments” below.
Don Grafues
Resource: REALTOR.org
Resource: REALTOR.org
February 17, 2010
Continued Pressure On Home Sales
James Hagerty reports in The Wall Street Journal on two studies on the housing market.
His article looks at the impact the foreclosed properties will have on home pricing. There are 7.7 million home owners who are behind on payments. It is estimated that 5 million of these will go into foreclosure over the next few years. These properties represent on average across the US 10 months of sales. Arizona is in worse shape than the national average. The expectation is that foreclosed properties in Phoenix will represent 15 months of sales.
One thing that will help reduce the impact of these foreclosures on market pricing will be stepped up activity by investors.
You can read the entire article here.
Don Grafues
Resource: The Wall Street Journal & REALTOR.org
Resource: The Wall Street Journal & REALTOR.org
February 16, 2010
Move Up Buyers Facing Obstacles
Move up buyers trying to capitalize on the extended 1st Time Home Buyer Tax Credit are having a difficult time. The difficulties include not being able to sell their current home and obtaining financing for a purchase. The move up buyer has played a major role in the real estate market with 53% of sales in 2009 coming from buyers moving up. You can read more here.
Don Grafues
Resource: REALTOR.org
Resource: REALTOR.org
February 15, 2010
Commercial Loan Risk
Elizabeth Warren of the Congressional Oversight Panel discusses the commercial loan risks.
4th Quarter Existing-Home Sales Up
Nationally, 4th quarter existing-home sales (units) jumped 13.9% from the 3rd quarter. Arizona rose 1.6%. Nationally, 32% of the sales were distressed sales. Data by state is available here.
Don Grafues
Resource: REALTOR.org
Resource: REALTOR.org
February 11, 2010
Home Values Fall
Zillow.com published a report on home values in December and Q4 of 2009. Two key findings;
- The change in the percentage of single family homes with negative equity was virtually unchanged going from 21 percent in Q3 to 21.4 percent in Q4.
- The number of homeowners losing their homes to foreclosure peaked in December with more than one in every thousand homes being foreclosed, the highest since records were kept starting 2000.
Don Grafues
Resource: Zillow.com & REALTOR.org
Resource: Zillow.com & REALTOR.org
February 4, 2010
Home Ownership Falling
Home ownership is declining. From a high of 69 percent in 2004 the percentage of American home owners fell to 67.3 at the end of 2009. I would expect the percentage will continue to decline in 2010 as home owners who are underwater turn to renting.
Don Grafues
Resource: REALTOR.org
Resource: REALTOR.org
Comments Off
