Home buyer sentiment index weakens | Mt Kisco Real Estate

A home-buying sentiment index from Fannie Mae weakened for the third straight month in October, a sign the market’s momentum may be faltering.

Fannie’s home purchase sentiment index fell 1.1 percentage points to 81.7. After climbing as high as 86.5 in July, the index has fallen every month since then. It’s now 1.5 percentage points below its level from a year ago.

“Since July, more consumers, on net, have steadily expected mortgage rates to rise and home price appreciation to moderate,” said Fannie chief economist Doug Duncan in a statement. “Furthermore, consumers’ perception of their income over the past year deteriorated sharply in October to the worst showing since early 2013.”

The index includes six components from a monthly survey the mortgage buyer FNMA, +0.80%   conducts of 1,000 Americans on owning and renting a home, home and rental price changes, homeownership distress, the economy, household finances, and overall consumer confidence.

Slightly more respondents said mortgage rates would rise in the next 12 months – 50% versus 49% in September. While most economists expect the Federal Reserve to raise interest rates at its December meeting, it’s not clear how much of an impact that will have on mortgage rates, which remain near all-time lows.

And while the share of respondents expecting home prices to increase fell to 41% in October from 43%, prices seem to be defying gravity.

Respondents in Fannie’s survey expect home purchase prices to appreciate 1.9% over the next 12 months. Data provider CoreLogic forecasts home prices will rise 5.2% over the next 12 years, and many analysts and industry participants believe prices are increasing too quickly for most would-be buyers to keep up.

 

read more…

 

http://www.marketwatch.com/story/housing-market-becoming-more-pessimistic-fannie-mae-survey-finds-2016-11-07?siteid=yhoof2&yptr=yahoo

Home price index reaches all-time high | Armonk Real Estate

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index for September blew past the peak set in July 2006, with the national index posting a 5.5% annual gain in September, up from 5.1% last month, S&P reported Tuesday morning. The 10-City Composite posted a 4.3% annual increase, up from 4.2% the previous month. The 20-City Composite reported a year- over-year gain of 5.1%, unchanged from August.

Before seasonal adjustment, the National Index posted a month-over-month gain of 0.4% in September. Both the 10-City Composite and the 20-City Composite posted a 0.1% increase in September. After seasonal adjustment, the National Index recorded a 0.8% month-over-month increase, the 10-City Composite posted a 0.2% month-over-month increase, and the 20-City Composite reported a 0.4% month-over-month increase. 15 of 20 cities reported increases in September before seasonal adjustment; after seasonal adjustment, all 20 cities saw prices rise.


Seattle, Portland, and Denver reported the highest year-over-year gains among the 20 cities over each of the last eight months. In September, Seattle led the way with an 11.0% year-over-year price increase, followed by Portland with 10.9%, and Denver with an 8.7% increase. 12 cities reported greater price increases in the year ending September 2016 versus the year ending August 2016.

“The new peak set by the S&P Case-Shiller CoreLogic National Index will be seen as marking a shift from the housing recovery to the hoped-for start of a new advance,” said David M. Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices. “ While seven of the 20 cities previously reached new post-recession peaks, those that experienced the biggest booms — Miami, Tampa, Phoenix and Las Vegas — remain well below their all-time highs. Other housing indicators are also giving positive signals: sales of existing and new homes are rising and housing starts at an annual rate of 1.3 million units are at a post-recession peak.


Housing bubble is probably more myth than reality | North Salem Real Estate

 

If you own a home and you’ve visited real estate information websites Zillow, Trulia, Redfin, or any of the like recently, you’ve probably noticed an interesting trend: Your home is increasing in value at a rate that’s far and away higher than the national rate of inflation.

Is housing bubble 2.0 around the corner?

According to the S&P Case-Shiller Home Price Index, which tracks residential real estate prices nationally, as well as within 20 large metropolitan regions, residential real estate prices rose 5.3% between Aug. 2015 and Aug. 2016. By comparison, the national measure of inflation, the Consumer Price Index, has moved higher by a little more than 1% over the trailing 12-month period.

If we back the data out a bit further, the outperformance of housing prices becomes even more apparent. Real housing prices — essentially home price increases with inflation backed out — have risen by 25% just since 2012, and are now sitting at their highest point since the Great Recession. This is noteworthy considering that in the 107 years between 1890 and 1997, housing prices generally tracked the national inflation rate very closely, at least based on data from Robert Shiller in the book Irrational Exuberance. Only over the past two decades have we witnessed a diversion from the mean, with the first diversion leading to a massive housing bubble that’s still fresh in the minds of many homeowners.

This latest outperformance in housing prices, as well as the fresh memory of the recent housing collapse less than one decade prior, has some pundits predicting that housing bubble 2.0 could be right around the corner. A Dec. 2015 interview with 66 industry experts conducted by Zillow found that more than 10 believed the Boston, Los Angeles, and Miami markets were at risk of entering a bubble, while even more pundits believed New York and San Francisco were already there.

Images

IMAGE SOURCE: ARMCHAIRBUILDER.COM VIA FLICKR.

Home prices can continue to soar

However, it’s possible these industry experts could be completely wrong. Based on the evidence available at the moment, I’d contend that we’re not even close to a bubble in housing prices, and that home prices could very well outpace the national rate of inflation for many years to come.

Let’s have a closer look at why home prices could keep soaring.

1. Supply constraints

The biggest factor that could push home prices continuously higher is the trade-off between homebuilder supply and homeowner demand. According to Jesse Edgerton, an economist at J.P. Morgan, most national markets simply don’t have the homebuilder supply to meet demand, and that’s unlikely to change anytime soon.

In an interview with Yahoo! Finance, Edgerton had this to say:

One might wonder if these high prices reflect growing demand that could soon elicit a wave of construction that would prove our forecasts wrong. We find, however, that high prices are concentrated in markets where supply is constrained by geography or regulation, suggesting there may be little room for additional construction.

Data from J.P. Morgan indicates that while housing prices are rebounding rapidly from their recessionary lows, homebuilders appear content in increasing their supply at only a modest pace. Furthermore, the areas where an expansion of construction would appear to be beneficial — San Jose, Los Angeles, San Francisco, and so on — are also the areas that are the most limited in their ability to respond to an increase in demand.

It’s tough to predict how homebuilders will respond if prices continue to climb. For some builders, the allure of profits may be too great to ignore. However, if homebuilders can prudently manage their supply growth, they’ll likely encourage home prices to head higher at a rate that handily outpaces inflation.

 

2. A continuation of the low-lending-rate environment

Secondly, the ongoing low-lending-rate environment should continue to spur demand for new homes.

A home is arguably the largest purchase Americans will make during their lifetimes, and historically low mortgage rates could be the catalyst that coerces prospective homeowners to pull the trigger. Even more appealing is the fact that many Americans have far better FICO credit scores than they had a decade prior, meaning they’d probably qualify for sweeter deals from lenders.

Based on data released by FICO last year, the national average FICO score of 695 was an all-time high. Comparatively, the national average FICO score in Oct. 2005 was 688. FICO’s data showed a 3% increase in the number of consumers with a FICO score above 800 compared to the prior decade (FICO scores max out at 850), with a 2.1% decline in consumers with a FICO score under 550. Long story short, Americans appear to be in better shape than ever when it comes to getting a mortgage.

Though the Federal Reserve is the “X factor” here, and it can be completely unpredictable, the case for raising the federal funds target rate isn’t that strong. Inflation remains below the Fed’s target level, job creation has been up and down in 2016, and external factors, such as Brexit and China’s slowing GDP growth, could weigh on the growth outlook in the United States. After aiming for four interest-rate hikes in 2016, it’s quite possible the Fed ends the year without making a single move, which favors the continuation of a low-lending-rate environment.

 

3. The “rent” vs. “buy” trade-off

Over the longer term, the trade-off between renting and buying a home would also seem to favor rising housing prices.

If interest rates do normalize over the long term and head back to around 3%, it would presumably work in favor of the rental market. Higher interest rates mean higher mortgage rates, which in turn should push on-the-fence homebuyers back into renting. When this happens, landlords become privy to significant rental pricing power and are able to increase rental rates well above the national rate of inflation. Just the expectation of rising interest rates at some point soon has been pushing rental prices around the country higher, at a pace that’s well above the national inflation rate.

However, there comes a tipping point in the renting vs. buying trade-off where rental prices increase enough that buying a home actually becomes the cheaper option on a monthly basis. It happened to me in 2007, and it could very well happen to millions of Americans as rental inflation increases.

 

read more…

 

http://www.fool.com/mortgages/2016/11/07/no-were-not-in-a-housing-bubble-and-yes-home-price.aspx

2017 conforming loan limits rise across the country | Lewisboro Real Estate

For the first time since the housing crisis, the Federal Housing Finance Agency is increasing the maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2017.

For much of the country, the Fannie Mae and Freddie Mac loan limit remained at $417,000 for one-unit properties (or single-family homes) in 2016, just as it had for the previous 10 years.

The FHFA announced Wednesday that for 2017, it is increasing the loan limit from $417,000 to $424,100 for single-family homes.

The conforming loan limits for Fannie and Freddie are determined by the Housing and Economic Recovery Act of 2008, which established the baseline loan limit at $417,000 and mandated that, after a period of price declines, the baseline loan limit cannot rise again until home prices return to pre-decline levels.

The FHFA noted that until this year, the average U.S. home price remained below the level achieved in the third quarter of 2007, which it designates as the pre-decline price level, and therefore the baseline loan limit had not been increased.

But as the FHFA noted earlier Wednesday, its Home Price Index for the third quarter of 2016 makes it “clear” that average home prices are now above the level of the third quarter of 2007, which means that the conforming loan limits can be increased.

According to the FHFA, the expanded-data HPI value for the third quarter of 2016 was approximately 1.7% above the value for the third quarter of 2007, meaning the baseline loan limit will increase by that same percentage.

As noted above, the conforming loan limits for much of the country will increase from $417,000 to $424,100.

Loan limits will also be increasing in what the FHFA calls “high-cost areas,” where 115% of the local median home value exceeds the baseline loan limit.

As the FHFA notes, median home values generally rose in high-cost areas during this year.

According to the FHFA, the new ceiling loan limit, which applies in areas with the most expensive homes, will be $636,150 (which is 150% of $424,100) for one-unit properties in the contiguous U.S.

According to the FHFA, there are special statutory provisions that establish different loan limit calculations for Alaska, Hawaii, Guam and the U.S. Virgin Islands.

In these areas, the baseline loan limit will be $636,150 for one-unit properties, but actual loan limits may be higher in some specific locations.

For a full list of the conforming loan limits by county, click here.

The increase in conforming loan limits is a long time coming, according to William Brown, the president of the National Association of Realtors.

 

read more…

 

http://www.housingwire.com/articles/38593-fhfa-increases-conforming-loan-limits-for-first-time-since-2006?eid=311691494&bid=1597527

Mortgage questions answered | Katonah Real Estate

The common questions many first-time buyers ask are now answered.

Purchasing a home and conquering financial responsibility is a goal for many people. But making this leap to homeownership is a big step, and it’s one that should be taken with careful consideration. Let’s face it, finding a home and securing a mortgage isn’t a walk in the park — and certainly nothing like signing a simple rental agreement. You’ve probably encountered confusing jargon such as “points,” “preapproval,” and “prequalification,” and funny names like Fannie Mae. Making sense of everything can leave you on the verge of frustration, but don’t worry — this is a completely normal feeling.

To help you demystify the process and get the most out of your first mortgage, we’ve asked some finance experts about things to consider before applying, some common points of confusion, and a few handy tips to help you understand the basics of mortgages.

What’s your best advice to a first-time homebuyer?

“Be prepared; do your homework. Check out reputable lenders in your area. Get prequalified so that you know the price range in which you should be shopping.” — Cathy Blocker, EVP, Production Operations of Guild Mortgage Company

“Talk to a local mortgage banker that you’re comfortable with! There are some great mortgage bankers willing to help, so you shouldn’t waste your time with someone who doesn’t make you feel comfortable with the process. Explain what you’re looking to do and what your ideal home-buying situation is. The right mortgage banker will customize your home loan to your specific scenario. Make sure they explain all the costs ahead of time, so that you know exactly what to expect once you get a purchase contract and start the mortgage process.” — Nick Magiera of Magiera Team of LeaderOne Financial

What should buyers be prepared for when applying for a loan?

“Every mortgage situation is different, so there’s really not a one-size-fits-all list of requirements. I recommend that you contact a mortgage banker that you know, like, and trust. If you don’t know any mortgage bankers, then I recommend that you choose a mortgage banker that your real estate agent suggests you work with. Your real estate agent wants you to have a smooth transaction, so they will only send you to mortgage bankers that they trust. A great mortgage banker will then walk you through the process and customize the mortgage around your specific scenario.” — Nick Magiera of Magiera Team of LeaderOne Financial

“There are a few things to get squared away before applying for a loan: 1. Cash for a down payment. Save money/acquire money for a down payment and closing costs. 2. A good working knowledge of your personal finances. Create a budget of your future expenses, as if you own the house, and make sure you can afford it. A good rule of thumb is that your mortgage should not exceed 30% of your take-home income. 3. A general idea of the price range of homes you are interested in. Research potential homes through a local Realtor or at Trulia.com. Compare by looking at real estate taxes, neighborhood statistics, and other criteria. Take your time! Your house may be the largest purchase in your life.” — Scott Bilker of DebtSmart

What is the value in getting preapproved or prequalified for a mortgage?

“It gives homebuyers an edge against competing offers. If a seller sees two offers and one has already been approved, then that is often the one that they go with, as there is less risk for them.” — Tracie Fobes, Penny Pinchin’ Mom

“First off, there is a difference between preapproved and prequalified. Prequalifying means you have done an initial lender screening. However, preapproval is the next step in the process. You have to give the bank many more documents like you’re applying for the mortgage. It’s worth doing because you will get a preapproval letter from the bank, and this will show sellers and real estate agents that you’re a serious buyer. It will also give you a better idea of which homes you can afford. Additionally, you will be able to act quickly once you find that perfect place without having to then seek out financing.” — Scott Bilker of DebtSmart

What range of rates should a first-time homebuyer expect with either a poor credit score or a strong credit score?

“On a conventional loan (Fannie Mae or Freddie Mac), the difference in price between a poor credit score (620) and a strong credit score (740-plus) could be as much as 3.0 points in fees, or 0.75 to 1.25% in interest rate. On an FHA or VA loan, the price difference may be up to 0.75 in points in fees or 0.125 to 0.250% in interest rate.” — Cathy Blocker, EVP, Production Operations of Guild Mortgage Company

“There is not a single universal standard. Lenders determine what kind of risk premium it will add to a loan based on your credit history and other information presented in a loan application. You can’t take a lender’s advertised interest rate for its best-qualified borrowers and tack on a set premium because you’re a C credit instead of an A credit (A credit being the least amount of risk).” — Nick Magiera of Magiera Team of LeaderOne Financial

What are some tips for paying off your mortgage faster?

“There are only two ways to pay off your mortgage fast: 1. Refinance at a lower rate. 2. Pay more toward the mortgage. That’s it. Don’t be fooled by biweekly mortgages because all they do is make you pay more. If you are not in a position to get a lower rate, then simply increase your monthly mortgage payment to an amount that is comfortable, keeping in mind that this is money you cannot easily get back. Conversely, if you pay more on your credit cards, you can always use the card again for cash or to buy things you need.” — Scott Bilker of DebtSmart

What does it mean when “the Fed raises the rates,” and how does it apply to mortgages?

“[The] Federal Reserve sets the interest rate that banks pay to borrow overnight funds from other banks holding deposits with the Federal Reserve. If the cost of overnight borrowing to a bank increases, this typically causes banks to increase the interest rates they charge on all other loans they make, to continue to earn their targeted return on assets. As banks increase their interest rates, other lenders or financial firms also tend to increase their rates. An increase in the federal funds rate does not directly correlate to a direct increase in mortgage rates but is viewed as a general signal to the market that the Federal Reserve views that the economy is growing and that interest rates will be increasing in the future.” — Cathy Blocker, EVP, Production Operations of Guild Mortgage Company

What are points?

“Points are fees the borrower pays the lender at the time the loan is closed, expressed as a percent of the loan. On a $200,000 loan, 2 points means a payment of $4,000 to the lender. Points are part of the cost of credit to the borrower, and in turn are part of the investment return to the lender. That said, points are not always required to obtain a home loan, but a ‘no point’ loan may have a higher interest rate.” — Nick Magiera of Magiera Team of LeaderOne Financial

“‘Discount points’ refers to a fee, usually expressed as a percentage of the loan amount, paid by the buyer or seller to lower the buyer’s interest rate.” — Cathy Blocker, EVP, Production Operations of Guild Mortgage Company

read more…

https://www.trulia.com/blog/mortgage-101-breaking-down-basics/?ecampaign=con_cnews_digest&eurl=www.trulia.com%2Fblog%2Fmortgage-101-breaking-down-basics%2F

Rents Cooled in the Third Quarter | Armonk Real Estate

Record levels of new multi-family construction are meeting demand in the nation’s hottest market, cutting in half the pace of rent increases nationwide and driving down median rents in more markets during the third quarter, according to rental analytics firm Axiometrics.

Nationally, rents rose only 3% for the third quarter of 2016, more than 2 percentage points below the robust 5.2% rent growth of one year ago. This marked the fourth straight quarter in which the annual rent growth rate decreased.  The average effective rent nationwide was $1,289 per unit per month, compared to $1,251 in the third quarter of 2015.

“While the national apartment market is still performing above the long-term average, the moderation from the unsustainable levels of 2014 and 2015 has come, as Axiometrics predicted,” said Jay Denton, Axiometrics Senior Vice President of Analytics. “In particular, rent growth has declined precipitously in markets with the highest rents in the country, such as New York and the San Francisco Bay Area.”

Rent levels declined year over year in the three major markets with the highest rents — San Francisco, New York and San Jose — and increased by less than 2% in the fourth highest rent-growth metro, Oakland. Although Houston isn’t a high-rent market, its -2.8% rent growth in the third quarter also helped weigh down the national rate.  Hartford, Birmingham and Oklahoma City also experienced negative annual rent growth.

Third-Quarter 2016 Rent, Rent Growth in Highest-Priced Markets

Market

Average Effective Rent

Annual Effective Rent Growth

San Francisco

$3,292

-0.5%

New York

$3,036

-0.2%

San Jose

$2,817

-0.8%

Oakland

$2,413

1.8%

 

“Urban cores in general are showing slowing performance,” Denton said. “The market is feeling the effects of the concentrated new supply in these submarkets. Nationwide, however, supply is just keeping up with the demand.”

The slower performance of high-priced markets is somewhat counteracted by robust fundamentals in secondary markets. For example, annual effective rent growth in Sacramento; Riverside, CA; Salt Lake City; Las Vegas; Fort Worth; Tampa-St. Petersburg; and Nashville are among the 10 highest in major markets.

Other Third-Quarter Highlights

•             Effective rents increased 1.2% in the third quarter over the second quarter. The rent-growth rates for the past four quarters have been lower than the previous corresponding quarters.

•             Occupancy was 95.1% in the third quarter, compared to 95.2% in the second quarter and 95.4% in the third quarter of 2015.

 

  • 95.4% in the third quarter of 2015.

Top 25 Markets for Rent Growth and Occupancy

The top 25 Metropolitan Statistical Areas or Metropolitan Divisions — among Axiometrics’ top 50 markets with the most apartments — in various third-quarter 2016 categories:

Top 25 Markets by Annual Effective Rent Growth for 3Q16

MSA/Metropolitan Division

Annual Effective Rent Growth

Sacramento-Roseville-Arden-Arcade, CA

11.9%

Riverside-San Bernardino-Ontario, CA

7.9%

Seattle-Bellevue-Everett, WA

6.7%

Salt Lake City, UT

6.7%

Phoenix-Mesa-Scottsdale, AZ

6.4%

Las Vegas-Henderson-Paradise, NV

5.7%

Fort Worth-Arlington, TX

5.6%

Tampa-St. Petersburg-Clearwater, FL

5.5%

Nashville-Davidson-Murfreesboro-Franklin, TN

5.4%

Atlanta-Sandy Springs-Roswell, GA

5.4%

San Diego-Carlsbad, CA

5.3%

Anaheim-Santa Ana-Irvine, CA

4.9%

Orlando-Kissimmee-Sanford, FL

4.9%

Dallas-Plano-Irving, TX

4.6%

Charleston-North Charleston, SC

4.4%

Memphis, TN-MS-AR

4.3%

Warren-Troy-Farmington Hills, MI

4.2%

Portland-Vancouver-Hillsboro, OR-WA

4.1%

Los Angeles-Long Beach-Glendale, CA

4.0%

Charlotte-Concord-Gastonia, NC-SC

4.0%

Raleigh, NC

3.7%

Minneapolis-St. Paul-Bloomington, MN-WI

3.7%

Indianapolis-Carmel-Anderson, IN

3.5%

Boston-Cambridge-Newton, MA-NH

3.5%

West Palm Beach-Boca Raton-Delray Beach, FL

3.3%

National

3.0%

Top 25 Markets by Quarterly Effective Rent Growth for 3Q16

MSA/Metropolitan Division

Quarterly Effective Rent Growth

Sacramento-Roseville-Arden-Arcade, CA

4.2%

Salt Lake City, UT

3.0%

San Francisco-Redwood City-South San Francisco, CA

2.6%

Boston-Cambridge-Newton, MA-NH

2.5%

Atlanta-Sandy Springs-Roswell, GA

2.4%

San Diego-Carlsbad, CA

2.3%

Seattle-Bellevue-Everett, WA

2.1%

Orlando-Kissimmee-Sanford, FL

2.0%

Warren-Troy-Farmington Hills, MI

2.0%

Charleston-North Charleston, SC

2.0%

Los Angeles-Long Beach-Glendale, CA

1.9%

Raleigh, NC

1.9%

San Antonio-New Braunfels, TX

1.9%

Portland-Vancouver-Hillsboro, OR-WA

1.9%

Riverside-San Bernardino-Ontario, CA

1.8%

Silver Spring-Frederick-Rockville, MD

1.8%

Fort Worth-Arlington, TX

1.7%

Anaheim-Santa Ana-Irvine, CA

1.7%

Denver-Aurora-Lakewood, CO

1.5%

Charlotte-Concord-Gastonia, NC-SC

1.5%

Nashville-Davidson-Murfreesboro-Franklin, TN

1.4%

Dallas-Plano-Irving, TX

1.4%

Tampa-St. Petersburg-Clearwater, FL

1.3%

Memphis, TN-MS-AR

1.2%

Washington-Arlington-Alexandria, DC-VA-MD-WV

1.2%

National

1.2%

 

 

read more…

 

http://www.realestateeconomywatch.com/2016/09/rents-cooled-in-the-third-quarter/

FHA increases loan limits going into 2017 | North Salem Real Estate

house sun

Home prices force loan limits higher

The Federal Housing Administration announced plans on Thursday to increase loan limits in 2017, announcing a significant jump in counties set to increase compared to last year.

Due to home price increases, the FHA said that most areas in the country will see a slight increase in loan limits in 2017.

These loan limits are effective for case numbers assigned on or after Jan. 1, 2017, and will remain in effect through the end of the year.

The FHA recalculates its national loan limit on a yearly basis. The limits are based on a percentage calculation of the nation conforming loan limit.

Here are the upcoming changes. In high-cost areas, the FHA national loan limit “ceiling” will increase to $636,150 from $625,500.  FHA will also increase its “floor” to $275,665 from $271,050.

Additionally, the maximum claim amount for FHA-insured Home Equity Conversion Mortgages (HECMs), or reverse mortgages, will increase to $636,150.

The FHA noted that this amount is 150% of the national conforming limit of $424,100.

The maximum loan limits for forward mortgages increased in 2,948 counties, which is attributed to changes in housing prices and the resulting change to FHA’s “floor” and “ceiling” limits.

There were no areas with a decrease in the maximum loan limits for forward mortgages though they remain unchanged in 286 counties.

This is compared to last year, which increased the loan limits in 188 counties due to changes in housing prices.

As an added note, FHA’s minimum national loan limit “floor” is set at 65% of the national conforming loan limit of $424,100. The FHA said the floor applies to those areas where 115% of the median home price is less than 65% of the national conforming loan limit.

For any area that doesn’t fit this and the loan limit exceeds the “floor,” it’s considered a high cost area. The maximum FHA loan limit “ceiling” for high-cost areas is 150% of the national conforming limit.

Check here for a complete list of FHA loan limits.

read more…

http://www.housingwire.com/articles/38657-fha-increases-loan-limits-going-into-2017?eid=311691494&bid=1602929

Mortgage rates up to 4.08% | Bedford Hills Real Estate

Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates moving higher for the fifth consecutive week.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 4.08 percent with an average 0.5 point for the week ending December 1, 2016, up from last week when it averaged 4.03 percent. A year ago at this time, the 30-year FRM averaged 3.93 percent.
  • 15-year FRM this week averaged 3.34 percent with an average 0.5 point, up from last week when it averaged 3.25 percent. A year ago at this time, the 15-year FRM averaged 3.16 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.15 percent this week with an average 0.4 point, up from last week when it averaged 3.12 percent. A year ago, the 5-year ARM averaged 2.99 percent.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.

Quote
Attributed to Sean Becketti, chief economist, Freddie Mac.

“The 10-year Treasury yield remained flat despite an upward revision to third quarter GDP. The 30-year mortgage rate rose 5 basis points to 4.08 percent, rising a total of 51 basis points in three short weeks. With mortgage rates at the highest we’ve seen this year, borrowers are now backpedaling on refinance opportunities. The latest Weekly Applications Survey results from the Mortgage Bankers Association show refinance activity down 16 percent week over week.”

Overlooked real estate markets | South Salem Real Estate

Every month, we tell you exactly where the country’s hottest real estate markets are: the regions where insane bidding wars have become the new normal, where people pay $5.5 million for a teardown, and buyers write desperate/sad “Please, please, please, let me buy your house!” letters. With tight inventory throughout the country having pushed up home prices 8% in the past year, we are starting to see more markets acting, well, crazy.

But it made us wonder: What about the (polar) opposite? What are the United States’ coldest markets?  You know, the ones where there’s plenty of inventory, and shopping for a home doesn’t resemble the final round of the Hunger Games?

Of course, plenty of markets see minimal real estate activity because no one actually wants to live there—they’re economically depressed, with few jobs or anything else of note to draw residents. We didn’t want those. Instead, we focused on the nation’s 100 largest metropolitan areas, and identified the top 10 where homes don’t fly off the market at head-spinning speeds, and there isn’t crazy competition from other buyers.

And to make certain that these markets aren’t just good bargains, but also good places to live, we filtered out markets where the unemployment rate ranks in the bottom 20% of major U.S. metros.

Markets that are cold, but not frosty

The result is this list of our top 10 overlooked real estate markets in the United States, the places that offer excellent value in less hectic home-buying environments. Bargain hunters, rejoice!

“This year has been great for the real estate market nationally, and we’re seeing widespread health and strong demand,” says our chief economist, Jonathan Smoke. “These 10 markets are no exception. They are all healthy, they just aren’t as frenetic as other markets. In each of these areas, we’ve seen improved buying interest and faster sales compared to previous years.”

Sorry, West Coast: You didn’t make the cut.

But each of the following markets have some special attractions for home buyers, including some you probably aren’t aware of. So read on, for the chillest of the chill!

cold-01

1. El Paso, TX

Median home price: $160,000

Median days on market: 91

Tucked between the U.S. and Mexico, El Paso’s fate is tied to two countries. It’s positioned for tourism and trade opportunities, but the recent strength of the U.S. dollar has discouraged Mexican shoppers, who are spending less. Growth in employment in El Paso was slow after the recession that began in 2008, but the metro area outperformed the rest of the state in 2015, according to the Dallas Federal Reserve.

Housing prices are going up, but the market has yet to take off.

“New construction picked up, and homes that haven’t been sold in the previous years piled up,” says Realtor® Rudy Montoya. “We are in a buyer’s market.”

Bonus: The area’s warm climate and diverse culture makes it an attractive retirement community.

Special lures: The cost of living is low, the margaritas are fine (El Paso claims to have invented ’em) and the green chile enchiladas con arroz y frijoles are awesome.

2. Albany, NY

Median home price: $239,000

Median days on market: 96

Albany’s housing market may offer affordability, but buying a home here can still be a daunting task. Homeowners in Albany County pay a median of $4,166 in property tax, one of the highest in the country. Although it’s the capital of New York state, the number of government jobs has been shrinking since the recession.

However, after the city started marketing itself as a tech hub, new corporate sectors have been starting to take hold. Companies like IBM and GlobalFoundries have set up research centers and plants here, and the city is expected to fill 1,180 new jobs in software and Web development through 2020, according to the New York Department of Labor.

Special lure: Yeah, it’s freezing. But this place comes to life in the winter, with more sledding, ice skating, snowmobiling, and tubing per capita than just about any metro in the U.S. Invest in long johns.

3. Virginia Beach, VA

Median home price: $259,300

Median days on market: 73

The rolling waves and soft sand not only make Virginia Beach a beautiful place to call home, but also a pretty darn nice place to visit—which is why tourism accounted for $1.4 billion in revenue, and plenty of job growth in 2015, according to the U.S. Travel Association.

So how come it shows up as a “cold” market? Well, summer may be gorgeous, but Virginia Beach isn’t quite as appealing in winter. Home sales slow precipitously, from 64 days on the market to 96 days. The city is also vulnerable to hurricanes, most recently Hurricane Matthew.

Special lure: Do you consider fishing to be a sport? Then this is the city for you.

4. Winston-Salem, NC

Median home price: $176,900

Median days on market: 96

Strolling the neighborhoods of Winston-Salem, you can’t help notice the quaint historical architecture and tall oaks. It feels as if time has slowed down. So, too, has the pace of home sales. Winston-Salem homes typically take 19 days longer to sell than the national median.

But that doesn’t worry the locals.”These communities have long-standing history—we don’t have a huge influx of people moving in, so there’s no quick housing turnaround,” says Samuel Aubrey, CEO of Winston-Salem Regional Association of Realtors®. The upside: The market sees fewer price fluctuations, even during recessionary periods.

Special lure: Birthplace of Krispy Kreme donuts.

5. Augusta, GA

Median home price: $194,700

Median days on market: 102

“People are attracted to Augusta because of the low cost of living,” says local Realtor Drew May. “And we’re just two hours from Atlanta and two hours from the coast.”

The Masters Golf Tournament enlivens the city once a year, with fans and tourists, but the rest of the year, it’s definitely … quiet. It’s a 9-to-5 city filled with blue-collar jobs manufacturing golf cars, medical supplies, and paperboard. The current unemployment rate of 5.8%  is slightly higher than the national average. Still, it has tons of historic charm going for it, and an epic mountain-bike trail system.

Special lure: It was the home town of James Brown, the godfather of soul!

6. Columbia, SC

Median home price: $183,400

Median days on market: 75

The second-largest metropolitan area in South Carolina, Columbia is a melting pot of global companies, students and educators, and a strong military presence. BlueCross BlueShield, and the University of South Carolina bolster the economy, with more than 10,000 jobs.

Yet one thing that makes home buyers hesitate about Columbia is the crime rate: Violent crime affects 65 in every 1 million people, 73% more than the national average. Some of the safest neighborhoods, however, include LexingtonBlythewood, and Lake Murray.

Special lure: This is a place in love with historical preservation.

7. Allentown, PA

Median home price: $192,500

Median days on market: 87

Want to avoid getting punched in this city? Avoid playing Billy Joel’s 1982 song “Allentown” on a jukebox (if you can find it, that is). That ode to the sad decline of this blue-collar town still stings. When Joel sang, “Out in Bethlehem they’re killing time,” he meant nearby Bethlehem Steel, once the nation’s second-largest steel producer, which finally went bankrupt in 2003.

But after decades of struggle, Allentown is quietly finding its way along the comeback trail. Although the region’s economy is now a far cry from its heyday, manufacturing jobs are gaining ground, slowly but steadily. The region’s GDP now ranks 73rd out of the 382 largest metropolitan areas in the U.S., up two spots from 2014. Its gains translate into a 5% year-over-year gain in home prices.

Special lure: The Lehigh Valley IronPigs are one of the most beloved Triple-A minor league baseball teams in the nation. Go Pigs!

8. Greensboro, NC

Median home price: $167,500

Median days on market: 94

Greensboro, like many cities and children, has nicknames—some good, and some not so good. It’s called “GREENsboro” because it’s green and lush; it’s called “GreensBORING” because its downtown is abandoned after 5 p.m., though a major face-lift has given the neighborhood new life.

The typical cycle of selling a home is longer than three months, putting the market among the “underachievers.” Local Realtor Jim Wilhoit attributes slow sales to the high-end market, but says the market is healthy overall.

“Sales of homes that are above $400,000 are very slow,” Wilhoit says. “It’s more expensive than most people here can afford. And people who own a home in that price range are not actively looking to sell.”

Special lure: Greensboro has 33,000 active students, which makes this one of America’s true college towns.

9. Birmingham, AL

Median home price: $184,500

Median days on market: 86 days

Young people are leaving Birmingham: The city’s craft beer scene, growing green spaces, and a roster of talented chefs are not enough to keep the millennials. Between 2011 and 2015, the metro lost 3% of its population between the ages of 25 and 34, while nationally, the age group grew by 6%. The reason? Job scarcity drove many to nearby Nashville and Atlanta, for better employment and higher salaries.

Apart from creating new jobs, much of the city’s effort goes into reinventing downtown, with a luxury “rooftop residential” market—namely lofts and high-end condos. Will the real estate market make a comeback? Let’s give it some time.

Special lure: Half Moon cookies and gourmet popsicles.

read more…

 

http://www.realtor.com/news/trends/top-10-most-overlooked-real-estate-markets/?identityID=563634a60b124c77df02b110&MID=2016_1028_WeeklyNL-9&RID=3397440202&cid=eml-2016-1028-WeeklyNL-blog_1_mostoverlookedmarkets-blogs_trends

 

Miami luxury condo prices plunge | Lewisboro Real Estate

According to a new report from Douglas Elliman and Miller Samuel, the average sale price for luxury condos in Miami and Miami Beach plunged 30 percent year over year in the third quarter, to $948,700 and $2.6 million respectively.

The number of luxury condo sales also plunged, by 25 percent in Miami and 17 percent in Miami Beach.

The declines mark another step down for high-end real estate in the area, which had experienced a boom after the financial crisis. It comes as buyers from Latin America are slowing to a trickle and uncertainty around the presidential election is causing wealthy Americans to pull back.

At the same time, luxury buildings that were started during the boom years of 2013 and 2014 are now starting to come online, creating a glut of high-priced homes and condos.

Miami’s results echo those from other cities in the U.S., where the highest priced real estate is faring the worst.

Luxury “is becoming a smaller part of the market due to the reduced emphasis at the top,” said Miller Samuel’s Jonathan Miller.

Inventory of luxury condos in Miami Beach jumped 30 percent in the quarter compared with a year ago, to 1,235. These properties are now sitting on the market for an average 126 days, more than double last year’s number.

In broader Miami, inventory rose 11 percent, resulting in a 40-month supply of luxury condos. Inventories for single-family homes in both areas are also higher.

Given these broad-based increases, Miller said the luxury real estate market in Miami is likely to get worse before it gets better.

 

read more…

 

http://www.cnbc.com/2016/10/19/miami-luxury-condo-prices-take-a-plunge.html?__source=newsletter%7Ceveningbrief