Daily Archives: July 7, 2014

Here’s where Realtors expect home prices to grow the most | Pound Ridge Real Estate

 

Home price appreciation is slowing markedly, and a survey of members of the National Association of Realtors shows they generally expect home prices to increase in all states and the District of Columbia over the next 12 months, with most of the heavy growth in Florida, Texas, and California, among other states.

That’s the consensus from the May 2014 Realtors Confidence Index.

The median expected price increase is 4%.

Expected price movements depend on local conditions relating to housing demand and supply, demographics, and job growth, the survey says.

Click the map to enlarge.

The difficulty in accessing mortgage financing and modest expectations about overall economic and job prospects are factors underpinning the modest price expectation.

The expected price growth was highest (red) in states with low inventory levels, strong cash sales, and strong growth sectors (e.g., technology, oil).

 

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http://www.housingwire.com/articles/30552-heres-where-realtors-expect-home-prices-to-grow-the-most

The greatest threat to the housing industry | Bedford Corners Real Estate

 

Monday Morning Cup of Coffee takes a look at news crossing HousingWire’s weekend desk, with more coverage to come on bigger issues.

As Independence Day festivities slide into the rearview mirror, it’s time for a sobering look a the housing industry, and Sober Look takes just that, looking at why home price gains have slowed.

One of the reasons cited is the continuing weakness in wage growth. As they note, the latest data seem to indicate that in spite of the overall improvements in job creation, wage growth remains subdued – hovering around 2% per year over the past three years or so.

Click the graph below to enlarge.

“And wage growth is a key determinant in home price valuation. Merrill Lynch for example shows that current home prices may already be above where they should be, based on Merrill’s fair value index that is driven to a large extent by wages,” the report says.

 

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http://www.housingwire.com/blogs/1-rewired/post/30553-monday-morning-cup-of-coffee-the-greatest-threat-to-the-housing-industry