Tag Archives: North Salem Luxury Homes

Home prices will not fully recover until 2025 | North Salem Real Estate

Check out any one of the many national home price reports, and headlines scream of new peaks and growing gains each month. Home prices are rising faster than inflation, faster than incomes and faster than some potential buyers can bear. Those reports are heavily weighted toward large metropolitan housing markets.

In fact, most of the U.S. housing market has not recovered from the epic crash of the last decade.

Only about one-third of homes have surpassed their pre-recession peak value, according to a new report from Trulia, a real estate listing and analytics company. Price growth in most markets is so slow that it will take about eight years for the national housing market to fully recover — that is, for all home values either reaching or surpassing their previous peaks.

Huge price gains during the last housing boom were juiced almost entirely by an incredibly loose mortgage lending market that no longer exists.

To say that the housing recovery has been uneven is an understatement. Some markets that have seen huge employment and population growth in the last decade, such as Denver, Seattle and San Francisco, lead the news with bubble-worthy headlines.

Not only have home prices there surpassed their recent peaks, they continue to rise at double-digit paces. Nearly all the homes in Denver and San Francisco (98 percent) have exceeded their pre-recession peak, according to Trulia. Other less obvious markets, like Oklahoma City and Nashville, Tennessee, have also seen the prices of most homes surpass their peak.

In areas hit hardest by the foreclosure crisis, fewer than 4 percent of homes have recovered to pre-recession price peaks. These include Las Vegas; Tucson, Arizona; Camden, New Jersey; Fort Lauderdale, Florida; and New Haven, Connecticut.

Rising incomes are the leading cause of home price growth, according to Trulia, which looked at four factors: job growth, income growth, population growth and post-recession housing vacancy rates. Income growth showed the greatest correlation to home price growth.

The intuition here is this: “Housing is what economists call a ‘normal good,’ so when incomes rise, households tend to spend more on housing, which pushes up prices,” wrote Ralph McLaughlin, Trulia’s chief economist, in the report.

Job growth didn’t correlate at all because more jobs don’t necessarily mean higher incomes. Of course job growth does matter tangentially, as more jobs often mean a growing population.

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http://www.cnbc.com/2017/05/03/home-prices-will-not-fully-recover-until-2025.html?__source=newsletter%7Ceveningbrief

Mortgage rates average 4.20% | North Salem Real Estate

 

Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates moving lower for the first time in ten weeks.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 4.20 percent with an average 0.5 point for the week ending January 5, 2017, down from last week when it averaged 4.32 percent. A year ago at this time, the 30-year FRM averaged 3.97 percent.
  • 15-year FRM this week averaged 3.44 percent with an average 0.5 point, down from last week when it averaged 3.55 percent. A year ago at this time, the 15-year FRM averaged 3.26 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.33 percent this week with an average 0.4 point, up from last week when it averaged 3.30 percent. A year ago, the 5-year ARM averaged 3.09 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 30-year mortgage rate fell this week for the first time since the presidential election, dropping 12 basis points to 4.20 percent. This marks the first time since 2014 that mortgage rates opened the year above 4 percent. Despite this week’s breather, the 66-basis point increase in the mortgage rate since November 3 is taking its toll — the MBA’s refinance index plunged 22 percent this week.”

September Housing Starts Decline on Multifamily Weakness | North Salem Real Estate

The September pace of total housing starts decreased 9% due a substantial decline in multifamily production. Single-family construction continues, as expected, along a positive trend.

According to estimates from the Census Bureau and the Department of Housing and Urban Development, single-family starts increased 8.1% to a 783,000 seasonally adjusted annual rate in September. Year-to-date, single-family housing starts are running almost 10% higher than the year-to-date total for September of 2015.

Single-family permit growth points to additional growth. On a year-to-date basis, single-family permits from January to September of 2016 are more than 8% higher than this time in 2015.

Multifamily starts (units in 2+ properties) posted a large decline in September after a few months of strength. Apartment construction starts declined 38% in September to a seasonally adjusted annual rate of 264,000. Multifamily permits on a year-to-date basis are about 11% lower than this time in 2015.

Taken together, these trends are consistent with the NAHB forecast, which sees gathering strength for single-family construction and a leveling off of multifamily production as the market finds a balance between housing demand and supply.

sf-starts

Regionally, single-family starts showed strength in the Northeast, increasing 20%% on a monthly basis. Gains for single-family starts were also realized in the South (12%) and Midwest (6%). The West posted a slight drop of 2% after a strong August.

On a year-to-date basis, however, all regions have posted gains. Single-family starts are up 12% in the Northeast, 12% in the Midwest, 8% in the South and 6% in the West when comparing the September 2016 year-to-date total relative to the comparable September 2015 year-to-date totals.

construction

Taking the long view, an examination of the count of homes currently under construction provides the degree of market mix and momentum of the recovery in home construction. As of September, 58% of units under construction in the nation were multifamily (605,000). The count of 605,000 is a 13% gain over a year earlier.

 

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http://eyeonhousing.org/2016/10/september-housing-starts-decline-on-multifamily-weakness/

Foreclosures nearing decade low | North Salem Real Estate

The number of homes in some stage of foreclosure and the number of seriously delinquent mortgages continued to decline in May, falling to the lowest level since October 2007, according to the latest data from CoreLogic.

CoreLogic’s May 2016 National Foreclosure Report shows the national foreclosure inventory, which is the total number of homes at some stage of the foreclosure process and completed foreclosures, hovers around 390,000 homes.

In April, the national foreclosure inventory was roughly406,000 homes, and in March, that figure was 427,000 homes.

According CoreLogic’s report, May’s foreclosure inventory hit the lowest level in nearly nine years.

CoreLogic’s report also showed that in May, the foreclosure inventory declined by 24.5% and completed foreclosures declined by 6.9% compared with May 2015.

The number of completed foreclosures nationwide decreased year over year from 41,000 in May 2015 to 38,000 in May 2016, which represents a decline of 67.9% from the peak of 117,813 in September 2010.

CoreLogic’s report also showed the sustained improvement in the number of mortgages in serious delinquency, defined as loans that are 90 days or more past due, and loans in foreclosure or Real Estate Owned.

According to CoreLogic’s report, the number of mortgages in serious delinquency fell by 21.6% from May 2015 to May 2016, with 1.1 million mortgages, or 2.8% of all mortgages, in this category.

The May 2016 serious delinquency rate is also the lowest in nearly nine years, reaching the lowest level since October 2007.

“The foreclosure rate fell to 1% in May, which is twice the long-term average of 0.5%. However, this masks the underlying progress at the state level,” said Frank Nothaft, chief economist for CoreLogic. “Twenty-nine states had foreclosure rates below the national average, and all but North Dakota experienced declines in their foreclosure rate compared to the prior year.”

 

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http://www.housingwire.com/articles/37502-foreclosures-serious-delinquencies-nearing-decade-low?eid=311691494&bid=1460292

New homes surge in April | North Salem Real Estate

New homes surged in April, a sign that builders are stepping up as demand for housing remains robust.

Sales soared 16.6% to a seasonally adjusted annual rate of 619,000, the Commerce Department said Tuesday. That was the biggest monthly jump in 24 years and trounced estimates of a 525,000 pace.

The median price also jumped, rising 9.7% from 12 months ago to $321,100.

The big increase in sales took supply sharply lower. At the current pace, it would take 4.7 months to exhaust all inventory.

March numbers were revised up to a 531,000 annual pace. The April figures were 23.8% higher compared to a year ago.

Regional performance was mixed, from a 52.8% surge in the Northeast to a 4.8% decline in the Midwest. The South saw a 15.8% increase, while in the West sales were up 18.8%.

Demand for housing has run much hotter than supply for the past few years, in part because home builders have been reluctant to ramp up to the brisk level of activity they enjoyed before the recession.

 

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http://www.marketwatch.com/story/new-home-sales-roar-back-crushing-forecasts-with-a-619000-annual-pace-in-april-2016-05-24

Construction spending up | North Salem Real Estate

United States Construction Spending 1964-2015 

Total construction activity in the United States increased by 0.7 percent month-over-month to $1,086.2 billion in August of 2015 from $1,079.1 billion in the previous month. It was the highest level since 2008, boosted by a surge in outlays for residential projects. Construction Spending in the United States averaged 0.45 percent from 1964 until 2015, reaching an all time high of 5.90 percent in April of 1978 and a record low of -4.80 percent in February of 1975. Construction Spending in the United States is reported by the U.S. Census Bureau.

United States Construction Spending

 

Actual Previous Highest Lowest Dates Unit Frequency
0.70 0.40 5.90 -4.80 1964 – 2015 percent Monthly
Current Prices, SA
Construction Spending refers to monthly estimates of the total dollar value of construction work done on new structures or improvements to existing structures for private and public sectors each month in the United States. This page provides the latest reported value for – United States Construction Spending – plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Content for – United States Construction Spending – was last refreshed on Thursday, October 1, 2015.
http://www.tradingeconomics.com/united-states/construction-spending

US Homebuilding slows in August | North Salem Real Estate

Builders broke ground on fewer houses and apartment complexes in August, a possible sign that the housing market may be levelling off after accelerating for much of the year.

Housing starts last month fell 3 percent to a seasonally adjusted annual rate of 1.13 million homes, the Commerce Department said Thursday. Construction activity slowed sharply in the Northeast and Midwest last month, edged downward in the West and climbed in the South.

Still, homebuilding appears much stronger than a year ago, despite figures that can be highly volatile on a monthly basis.

“This is a mere blip on the radar,” said Tom Wind, executive vice president of home lending at EverBank. “The housing market’s underlying fundamentals remain on pace for continued recovery.”

Housing starts have climbed a solid 11.3 percent this year to date. Steady job gains of 2.9 million in the past 12 months are contributing to increased demand from buyers and renters. And as the recovery from the Great Recession has entered its seventh year, residential construction has stated to both reflect and fuel broader economic growth.

Developers see favorable demographics helping to sustain demand, as approved permits rose 3.5 percent in August to an annual rate of 1.17 million.

Confidence among builders is also improving.

The National Association of Home Builders/Wells Fargo builder sentiment index released Wednesday rose this month to 62, up from 61 in August. The last time the reading was higher was October 2005 at 68.

New construction has yet to fully satisfy demand, a sign that further building will likely remain profitable.

Only 5.2 months’ supply of new homes is listed for sale, well below the standard level of six months usually seen in a healthy market. This shortage has led to rising prices for new and existing homes.

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http://hosted.ap.org/dynamic/stories/U/US_HOME_CONSTRUCTION?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2015-09-17-08-40-14

Buying a North Salem FSBO | North Salem Real Estate

Selling your home without an agent is entirely possible and, in some ways, easier today than in the past. Going for sale by owner (FSBO) could be a huge cost savings, since the real estate commission is the largest expense of any home sale. But FSBO is not for everyone.

If you go this route, you must be deliberate each step of the way. You’ll have to do your research and learn your market to discover what works and what doesn’t. Are homes staged? Do people price low for multiple offers or price high and wait? Is it a strong buyers’ market, or do sellers rule? Sometimes it can be hard to know, as markets can shift by neighborhood — or even by block.

In real estate today, sometimes you only get one chance to make a first impression. If you make a mistake your first time out, the market may punish you later on. Here are some other FSBO considerations for the next-generation home seller.

Online access to pricing makes going FSBO easier today

One of the biggest hurdles for sellers is pricing their home correctly and knowing the comparable home sales. It’s easier to understand pricing today, given how much information is online — particularly for someone who lives in a home where the recent comparable home sales are cut and dry. An example of this is a newer suburban development where the floor plans, layouts, fixtures and finishes are all similar.

Research your market offline, too

Learning a real estate market doesn’t take a huge amount of effort, but it does take time. Go to open houses and see what is for sale. Start this process early, and do it often.

Monitor a few nearby homes from listing to close. Real estate agents do it day in and day out, which makes them uniquely qualified to understand a market.

Be prepared to detach emotionally

Selling a home has both financial and emotional implications, whether you sell it yourself or through an agent. Knowing that complete strangers will be running through and potentially criticizing your home is enough to make any home seller feel like a wreck.

Imagine dealing with these strangers directly. If you go the FSBO route, you are front and center from start to finish. You can’t let your emotions get the best of you, and you must focus on the investment aspect of your home.

Sometimes sellers who can’t emotionally detach find themselves leaving money on the table, alienating perfectly good buyers, or both. But if you think you can see your home objectively, as a third-party product, then you might be good to go with FSBO.

It can become a part-time job

Remember the last time you sold a car or some furniture on Craigslist? It probably required time and energy to photograph your goods, post the listings, field calls, and show the items before you finally made the sale. With real estate, you can amplify that effort 10-fold.

Going FSBO can be excellent for someone with a flexible schedule or who works from home. But getting the home ready to sell means doing all of the standard sale prep work that you would do as a seller — and then taking it a step further. You need to be ready to show the home at a moment’s notice, do follow-ups, and manage the open houses and scheduling, not to mention negotiate and see the sale through firsthand.

 

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http://www.zillow.com/blog/is-for-sale-by-owner-right-for-you-176805/

Mortgage Rates Little Changed | North Salem Real Estate

Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates largely calm amid mixed economic and housing data and ahead of the Friday employment report for March.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 3.70 percent with an average 0.6 point for the week ending April 2, 2015, up from last week when it averaged 3.69 percent. A year ago at this time, the 30-year FRM averaged 4.41 percent.
  • 15-year FRM this week averaged 2.98 percent with an average 0.6 point, up from last week when it averaged 2.97 percent. A year ago at this time, the 15-year FRM averaged 3.47 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.92 percent this week with an average 0.5 point, unchanged from last week. A year ago, the 5-year ARM averaged 3.12 percent.
  • 1-year Treasury-indexed ARM averaged 2.46 percent this week with an average 0.4 point, unchanged from last week. At this time last year, the 1-year ARM averaged 2.45 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 links for theRegional and National Mortgage Rate Details and Definitions. Borrowers may still pay closing costs which are not included in the survey.

Quotes
Attributed to Len Kiefer, deputy chief economist, Freddie Mac.

“Mortgage rates were little changed this week entering April about where we started the year. The final estimate of real GDP growth for the fourth quarter of 2014 was unchanged from the prior estimate of a 2.2 percent annualized rate. Meanwhile, the National Association of Realtors reported that pending home sales rose 3.1 percent in February, beating expectations. The pending home sales index was at the highest level since June of 2013 when 30-year fixed mortgage rates averaged 4.07 percent, 0.37 percentage points higher than this week’s survey.”

Mortgage Rates Move Down Again | North Salem Real Estate

Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates moving down again across the board. Average fixed rates that continue to run below four percent will help keep affordability high for those in the market to buy a home as we head into the spring homebuying season.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 3.69 percent with an average 0.6 point for the week ending March 26, 2015, down from last week when it averaged 3.78 percent. A year ago at this time, the 30-year FRM averaged 4.40 percent.
  • 15-year FRM this week averaged 2.97 percent with an average 0.6 point, down from last week when it averaged 3.06 percent. A year ago at this time, the 15-year FRM averaged 3.42 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.92 percent this week with an average 0.4 point, down from last week when it averaged 2.97 percent. A year ago, the 5-year ARM averaged 3.10 percent.
  • 1-year Treasury-indexed ARM averaged 2.46 percent this week with an average 0.4 point, unchanged from last week. At this time last year, the 1-year ARM averaged 2.44 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 links for theRegional and National Mortgage Rate Details and Definitions. Borrowers may still pay closing costs which are not included in the survey.

Quotes
Attributed to Len Kiefer, deputy chief economist, Freddie Mac.

“The average 30-year fixed mortgage rate fell to 3.69 percent this week following a decline in 10-year Treasury yields. Low mortgage rates are a welcome sign for those in the market to buy a home this spring season and will help to support homebuyer affordability. Existing home sales in February increased slightly, but less than expected, to a seasonally adjusted annual rate of 4.88 million units. Meanwhile, new home sales outperformed expectations and surged 7.8 percent to an annual pace of 539,000 units.”