Tag Archives: markets price

The Comeback Continues: U.S. Housing Market on the Rise

Source: RISMedia

The U.S. housing market continues to improve as Florida and Arizona enter
their outer range of stable housing activity, according to a recently released
Freddie Mac Multi-Indicator Market Index® (MiMi®). The MiMi purchase applications
indicator improved by nine percent in 2015, its best showing since September 2013.

The national MiMi value stands at 82.7, indicating a housing market that is on
its outer range of stable housing activity, while showing an improvement of
+.51 percent from November to December and a three-month improvement of +1.70
percent. On a year-over-year basis, the national MiMi value has improved +7.65
percent. Since its all-time low in October 2010, the national MiMi has rebounded
40 percent, but remains significantly off its high of 121.7

The most improving states month-over-month were Oregon (+1.66 percent),
New Jersey (+1.62), Arizona (+1.39 percent), Florida (+1.39 percent) and
Missouri (+1.25 percent). On a year-over-year basis, the most improving states
were Florida (+16.59 percent), Oregon (+15.64 percent), Colorado (+14.09 percent),
Washington (+12.58 percent) and Nevada (+12.54 percent).

Job Creation Slows, Home Prices Rise

Source: Michelle Wickett

“Should I stay or should I go now?” The Clash. Investors asked that question all week as they considered in which markets they may have overstayed their welcome. Economic data sent mixed messages as to whether Stocks or Bonds would be more gracious hosts to investment dollars.

Case in point: After a whirlwind of job creation in October, November and December, the January Jobs Report showed a bit of a slowdown, according to the Labor Department. Payrolls rose by 151,000 in January. While still strong, the number is dwarfed by year-end leaps that helped make 2015 the second-best year for job creation since the late 1990s. The report also noted the Unemployment Rate dropped to 4.9 percent while wages increased, which is great news.

In other events, inflation remained tame, manufacturing data was weak and personal spending was unchanged from the prior month.

So, what does all this have to do with buying or refinancing a home?

When investors move dollars from Stocks to Bonds, Mortgage Backed Securities and other Bonds improve. Because home loan rates are directly tied to Mortgage Bonds, home loan rates can improve as well. Last week’s trading illustrated this, pushing home loan rates to lows not seen since April 2015.

On the housing front, home prices, including distressed sales, rose 6.3 percent from December 2014 to December 2015, according to CoreLogic, a leading global property information, analytics and data services provider. From November to December, prices were up 0.8 percent. CoreLogic cited strong demand and tight supply for the gains.

Looking ahead, home prices are expected to rise 5.4 percent from December 2015 to December 2016.

At this time, home loan rates are quite attractive. If you or someone you know has any questions about the housing market, current rates or home loan products, please don’t hesitate to contact me.

Michelle Wickett
Senior Loan Originator
Axia Home Loans | NMLS 27830
Phone: (360) 791-0513
Fax: 360-459-1212
License:: NMLS 62804

2016 Forecasted to Bring Modest Increase in Home Sales

Source: RISMedia

Following the housing market’s best year in nearly a decade, existing-home sales are forecasted to expand
in 2016 at a more moderate pace as pent-up buyer demand combats affordability pressures and meager economic growth,
according to National Association of REALTORS® Chief Economist Lawrence Yun in a newly-released video on his 2016
housing market expectations.

In the NAR-published video, Yun discusses his expectations for the U.S. economy and housing market in 2016 and points
to pent-up demand, sustained job growth, and improving inventory conditions as his reasons for an expected gain (from 2015)
in new and existing home sales.

Despite his forecasted increase in sales, Yun cites rising mortgage rates, home prices still outpacing wages and shaky global
economic conditions as headwinds that will likely hold back a stronger pace of sales.

“This year the housing market may only squeak out 1 to 3 percent growth in sales because of slower economic expansion and rising
mortgage rates,” Yun says in the video. “Furthermore, the continued rise in home prices will occur due to the fact that we will
again encounter housing shortages in many markets because of the cunulative effect of homebuilders under producing for multiple
years. Once the spring buying season begins, we’ll begin to feel that again.”

New Year’s Pledge: Automatic Wealth Through Rental Real Estate

By Mark Ford, founder,
The Palm Beach Research Group

Do you invest in real estate?

I’m not talking about your home. Owning a home has more to do with security (emotional and personal) than it has to do with
building wealth.

I’m talking about rental real estate.

I love real estate. It’s not without its problems, but it’s the best way I’ve found to accumulate a good deal of wealth on a part-
time basis.

In the many years I’ve been actively investing in real estate, it has given me returns much better than the stock market. In fact,
my average return has been between 5% and 8%, without leverage. When I use bank financing, those numbers are in the 12%-15% range.

I’ve tried all sorts of real estate investing. But I’ve gotten the best results by sticking to this plan: direct investments in
income-producing properties… either residential or commercial.

You receive something with rental properties you don’t get with many other real estate deals: guaranteed income. Sure, you get
appreciation, too. But I’ve come to see that as secondary to having dozens of extra, ongoing income streams. (And did I mention
it’s money cost of borrowing, the maintenance, and the theoretical loss of income by charging a modest rent.

I netted something like $10,000 per year on a condo I bought for $65,000. That was a return of roughly 15%, cash on cash. (Cash-on-
cash return = annual dollar income / total dollar investment.)

Had I used bank financing, I would’ve made more – without any significant increase in risk.

I own dozens of individual properties like this. They send me checks – usually thousands of dollars – on the first of every month.
That’s a nice way to begin your month.

Mark on his favorite day of the month: the first.

On the credenza are 24 small red binders. Each represents a separate real estate investment I’m involved in.

Some are individual properties I own myself. Some are properties I own with friends. Some are direct investments. Some are in
partnerships or corporations. Some are rental plays. Some are build-and-sells.

If you decide this is the year to begin a real estate portfolio, start slowly.

My first real estate investment was a bad one. I’ve written about it before. It was a rental unit in Washington, D.C. (It was
overpriced and occupied by a prostitute who would neither pay me rent nor do her business elsewhere.)

It took me years to dig myself out of that mistake. I emerged a smarter (but not-yet-smart-enough) real estate investor.

Take your time. Be selective. Educate yourself. Some of what’s on the bookshelves is full of misguided advice.

My best advice is to subscribe to our rental real estate program. It’s part of the Palm Beach Research Group’s Wealth Builders
Club. That, you can trust.

You can also take adult education classes… if you can find them. Be leery of free seminars –they’re likely to be selling
traps.

Here’s a promise: If you start investing in rental real estate this year, you’ll be glad you did. If you keep investing – buying at
least one new property per year (which will be easy once you get going) – you will be a real estate multimillionaire in no
time (not counting your other assets).

And you’ll be well on your way to retiring as a multimillionaire.

When you look back on all the wealth you acquired, you may feel the way I do now: that real estate was the easiest and – next to
your personal business – most lucrative wealth-building activity you ever got involved in.

Regards,

Mark Ford

House Price Index Rises .5 Percent

Source: RISMedia

U.S. house prices rose in October, up 0.5 percent on a seasonally adjusted basis from the previous month,
according to the Federal Housing Finance Agency (FHFA) monthly House Price Index (HPI).
The previously reported 0.8 percent increase in September was revised downward to reflect a 0.7 percent increase.

The FHFA HPI is calculated using home sales price information from mortgages sold to, or guaranteed by,
Fannie Mae and Freddie Mac. From October 2014 to October 2015, house prices were up 6.1 percent.

For the nine census divisions, seasonally adjusted monthly price changes from September 2015 to
October 2015 ranged from -0.5 percent in the New England division to +1.2 percent in the East
South Central division. The 12 month changes were all positive, ranging from +2.9 percent in the
New England division to +8.9 percent in the Mountain division.

To download the complete historical data, click here

Home Prices Continue To Rise, Led By Western States

Source: RISMedia

Among the nation’s top 300 markets, a total of 170 or 57 percent have now
achieved full price recovery, according to Homes.com®’s September 2015
Local Market Index, a price performance summary of repeat sales in the top 100 markets,
and the companion Midsize Markets Report for the next 200 largest markets.

By September, 53 out of thr top 100 markets showed a complete
price recovery – two more than reported in August – with an additional
117 out of 200 midsize markets continuing to see recovery above pre-
recession levels.

San Francisco-Oakland-Hayward, Calif. led the nation in September
for the largest annual percentage change in pricing at 7.97 percent.
Denver-Aurora-Lakewood, Colo. came in second with a 7.73 percent
annual increase, and Portland Vancouver-Hillsboro, Ore.-Wash. was
third at 7.29 percent.

Home Prices Continue To Rise

Source: RISMedia

Home prices continued their rise across the country over the last 12 months, with yet another increase in September, according to recently released S&P/Case-Shiller Home Price Indices.

Covering all nine U.S. census divisions, the S&P/Case-Shiller U.S. National Home Price Index recorded a slightly higher year-over-year gain with a 4.9 percent annual increase in September 2015 versus a 4.6 percent increase in August 2015. The 10-City Composite increased 5.0 percent in the year to September compared to 4.7 percent previously. The 20-City Composite’s year-over-year gain was 5.5 percent versus 5.1 percent in the year to September. After adjusting for the CPI core rate of inflation, the S&P/Case Shiller National Hoe Price Index rose 3 percent from September 2014 to September 2015.

“Home prices and housing continue to show strength with home prices rising at more than double the rate of inflation,” says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices.

Strong Prices Push Housing Recovery Into High Gear

Source: RISmedia

Among the nation’s top 300 markets, a total of 168 or 56 percent have achieved full price recovery—two more than the 166 markets reported in June. This data is according to the recently released Homes.com® August 2015 Local Market Index. By August, 51 of the top 100 markets had made a complete recovery–one more than in July.

The number of markets declining on a 3-month average basis decreased to 10 of the top 100 in August compared to 16 for the prior month. Measured year-over-year, all 100 markets are still positive by a healthy margin.

“Strong sales and appreciating prices in many markets continue to fuel a period of significant progress in the housing recovery across the country. Millions of homeowners in
the 168 fully recovered markets, along with the remaining markets, along with the remaining markets that are still below peak prices, have seen their equity increase significantly, restoring strength to the econonmy and financial security to families,” says David Mele, president of Homes.com

Americans Think Homeownership Is A Sound Investment

Source: RISmedia

A vast majority of Americans believe that buying a home is a solid financial decision, and most believe they could sell their home for at least its initial purchase price, according to a new survey from the National Association of REALTORS®. The 2015 National Housing Pulse Survey also found that a preponderance of Americans think that now is a good time to buy a home.

The survey, which measures consumers’ attitudes and concerns about housing issues in the nation’s 50 largest
metropolitan statistical areas, found that more than 8 in 10 Americans believe that purchasing a home is a good financial
decision, and 68% believe that now is a good time to buy a home. Seventy-one percent believe they could sell their house for what they paid for it, a jump of 16 percentage points from 2013.

When asked for reasons about why homeownership matters to them, respondents’ answers did not change significantly from past years. Building equity, wanting a stable and safe environment, and having the freedom to choose their neighborhood remain the top 3 reasons to own a home.

“Homeownership is part of the Americand Dream, and this survey proves that dream is alive and thriving in our communities,” says NAR President Chris Polychron. “Realtors believe that anyone who is able and willing to assume the responsiblities of owning a home should have the opportunity to pursue that dream in a safe, responsible way, which is why NAR advocates homeownership issues and educating potential buyers about achieving their property investment goals.”

Why U.S. House Prices STILL Have Significant Upside

By Dr. Steve Sjuggerud
Tuesday, October 6, 2015

 

 

You’re right… House prices have gone up – A LOT – in your area.

I know it. You don’t have to tell me. I see it, too.

Heck, I live in Florida… House prices in Miami and Tampa are up 40%-plus since the beginning of 2012. That is an incredible gain.

Conventional wisdom is that house prices should not be able to soar like this for long periods of time.

House prices have a few limiting factors. For example, the population only grows so fast… and people’s incomes only grow so fast. Over the long run, house prices nationwide shouldn’t be able to grow a whole lot faster than those two things.

So you might think that the move higher in U.S. house prices is over. I get it. I see your points.

However, I strongly disagree… I believe we still have YEARS of house price appreciation ahead of u
The three main reasons are:

1.   With mortgage rates near record lows, housing is extremely affordable.
  
2.   In our zero-percent world, people will have to take their money out of the bank (that’s earning nothing) and do SOMETHING with it. Some of that money will go into rentable single-family homes.
  
3.   We’re still a long way from “normal.”


This next chart is one way to show No. 3…

It shows what’s happening in mortgages on U.S. houses. In the housing bust, for the first time in recorded history, the dollar amount of mortgages outstanding actually FELL. The annual change in mortgage dollars went NEGATIVE. Take a look:

 


As you can see, things are getting LESS BAD.

Today, for the first time since 2008, the mortgage debt outstanding on U.S. homes is actually rising. (You can see it just crossed above the 0% line in the chart.)

The important thing for you to realize is that this is nowhere near “normal” yet…

Since the mid-1950s, mortgage debt outstanding has grown at 8.8% a year, on average. Today – even after incredible home-price appreciation – we’re just getting back to “flat.”

This tells me that most Americans are not on board – yet.

I expect they will get on board. I have my money where my mouth is on this one… I have more of my personal financial assets in U.S. real estate than in any other category… by a wide margin… and that includes the stock market.

Housing is a great asset to own now. It’s affordable (with mortgage rates so low). You control it. You can rent it out for much more than you can make in interest at the bank. And there’s plenty of upside in it today (as the chart helps to show). Basically, nobody is in the market – yet.

You still have time to beat ’em to it!

Get on it…

Good investing,

Steve