Tag Archives: Waccabuc Real Estate

Garages in New Homes: 2015 Data | Waccabuc Real Estate

A majority of new homes that completed construction in 2015 included two-car garages, according to NAHB analysis of Census Bureau Survey of Construction data.

For new single-family completions in 2015, 61% of homes offered a two-car garage. Another 24% of homes possessed a garage large enough to hold three or more cars. Just 6% of newly-built homes had a one-car garage, and only 1% possessed a carport. Another 9% of new homes had no garage or carport.

parking1

Over the last two decades, there has been a shift in parking options. As home size has grown, the share of homes with a three or more car garage has grown as well. In 1992, 11% of homes had a garage for three or more cars. That share rose to a peak of 20% in 2005, before falling to 16% in 2010.

In contrast, the market share of homes with no garage or carport has been on the decline. In 1992, 15% of new single-family homes had no parking facility. That share fell to 8% in 2005, before rising slightly to 13% in 2010.

There are also clear regional differences for parking options in new homes. In the Northeast, no garage or carport is available in 18% of homes, the highest such share. In the West, that is true in only 3% of homes, the lowest Census region. The Midwest had the highest share of three or more car garages, at 42% of new homes. The Northeast had the lowest market share of three-plus car garages, with just 12% homes completed. The Northeast in contrast leads the share in one-car garages, with 16% of completed single-family homes.

 

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http://eyeonhousing.org/2016/10/garages-in-new-homes-2015-data/

Schiller: Always reason to worry about housing prices | Waccabuc Real Estate

US home price gains slowed slighting in July, as many on Wall Street are speculating that the Federal Reserve will raise rates before the end of the year. The S&P/Case-Shiller 20-City Composite Index rose 5.0% year-over-year, missing analysts’ expectations of a 5.1% increase but still above the 4.8% pace of the prior two years.

The recent surge in real estate demand has pushed home prices near their pre-crisis peak in 2006, which is making it increasingly difficult for new home buyers to enter the market. Home sales fell 0.9% in August from the previous month, according to the National Association of Realtors. That’s the second straight month of declines.

Higher home prices have begged the question by many as to whether the current pace is sustainable, or if there’s reason to fear another massive collapse in real estate.

“There’s always reason to worry [about a coming collapse],” Robert Shiller, Nobel Prize–winning economist and co-creator of the S&P/Case Shiller Index, told Yahoo Finance’s Seana Smith in the video above. But he is quick to point out one stark difference between today’s housing market and that of 2006. “We’re in a holding pattern right now … People are less excited about buying because they themselves don’t believe [home prices] will be going up a lot. Back in 2006, when the homeownership rate was setting records, people had extravagant expectations.”

His comments on Americans’ hesitation to buy echo the findings of a recent study byPulsenomics, which found that just 38% of renters surveyed think now is a good time to buy. Today, home values have reached or surpassed peak levels in about a quarter of US markets.

How rising rates could impact the housing market

While prospective buyers continue to benefit from relatively low borrowing costs, the big question is whether a series of rate hikes will increase mortgage rates and prompt a fallout in the housing sector. Fed funds futures suggests a roughly 57% chance of higher US interest rates by December, according to data from CME Group.

Shiller says it’s very difficult to forecast how the housing market will react to rising rates but is quick to point out that even in an uncertain environment, rate hikes shouldn’t be a factor for potential buyers.

“The Fed raised [rates] in December just a quarter of one percent, and plausibly they’ll raise [rates] by another quarter or a half percent, and it may not be a big deal,” said Shiller. “On the other hand, it might be a big deal because we’re in this strange period of near zero interest rates, and if people see it as a major turning point, it could affect home prices … My opinion is if you want a house, go out and buy it. It’s not an extremely unusual time. There are always risks.

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http://finance.yahoo.com/news/robert-shiller-theres-always-reason-to-worry-about-a-coming-collapse-in-housing-124331739.html

Mortgage rates average 3.52% | Waccabuc 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 second week in a row and marking the first time the 30-year fixed-rate mortgage has risen above 3.5 percent since June.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 3.52 percent with an average 0.5 point for the week ending October 20, 2016, up from last week when they averaged 3.47 percent. A year ago at this time, the 30-year FRM averaged 3.79 percent.
  • 15-year FRM this week averaged 2.79 percent with an average 0.5 point, up from last week when they averaged 2.76 percent. A year ago at this time, the 15-year FRM averaged 2.98 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.85 percent this week with an average 0.4 point, up from last week when it averaged 2.82 percent. A year ago, the 5-year ARM averaged 2.89 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 fixed-rate mortgage moved a solid 5 basis points to 3.52 percent while the 10-year Treasury yield remained relatively flat. This is the first week in over 4 months that rates have risen above 3.50 percent. This month, mortgage rates seem to be catching up to Treasury yields and returning to pre-Brexit levels.”

U.S. housing starts fall 9% | Waccabuc Real Estate

Housing starts in the United States tumbled 9 percent to a seasonally adjusted annualized rate of 1047 thousand in September from August of 2016, below market expectations of 1175 thousand. It is the lowest figure since March of 2015, due to a fall in construction of multifamily homes. In contrast, building permits rose 6.3 percent to 1225 thousand, beating expectations of 1165 thousand. Housing Starts in the United States averaged 1439.56 Thousand from 1959 until 2016, reaching an all time high of 2494 Thousand in January of 1972 and a record low of 478 Thousand in April of 2009. Housing Starts in the United States is reported by the U.S. Census Bureau.

United States Housing Starts

 

 

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http://www.tradingeconomics.com/united-states/housing-starts

 

Home prices rise slightly less than forecast | Waccabuc Real Estate

U.S. single-family home prices rose slightly less than expected on an annual basis in July, and the year-over-year gain was smaller than in the prior month, a survey showed on Tuesday.

The S&P CoreLogic Case-Shiller composite index of 20 metropolitan areas rose 5 percent in July on a year-over-year basis, retreating from the 5.1 percent climb in June and short of the estimate calling for a 5.1 percent increase from a Reuters poll of economists.

“Both the housing sector and the economy continue to expand with home prices continuing to rise at about a 5 percent annual rate,” said David M. Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices.

“There is no reason to fear that another massive collapse is around the corner.”

Prices in the 20 cities were flat in July from June on a seasonally adjusted basis, the survey showed, matching expectations.

On a non-seasonally adjusted basis, prices increased 0.6 percent from June.

Home prices in three U.S. cities, Denver, Seattle and Portland, Oregon, showed the highest year-over-year gains, the survey showed.

 

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http://www.marketbeat.com/stories.aspx?story=http%3a%2f%2ffeeds.reuters.com%2f~r%2freuters%2fbusinessNews%2f~3%2fKc7Pyl6Zl3o%2fus-usa-economy-homes-index-idUSKCN11X1FO

Home building group unveils tiny home designer series | Waccabuc Real Estate

Architect Jeffrey Dungan said it was important to keep the tiny home's dimensions between 12-feet-tall and 12 ½-feet-wide so that it could be transported by road and under bridges. The "Low Country" model pictured here at Cashiers Designer Showcase in Cashiers, North Carolina in August, is the first in a series of tiny homes that Dungan designed for Clayton Homes. (Submitted/Special to the Knoxville News Sentinel)

Architect Jeffrey Dungan said it was important to keep the tiny home’s dimensions between 12-feet-tall and 12 ½-feet-wide so that it could be transported by road and under bridges. The “Low Country” model pictured here at Cashiers Designer Showcase in Cashiers, North Carolina in August, is the first in a series of tiny homes that Dungan designed for Clayton Homes.

Vaulted ceilings give the impression of spaciousness and offer additional wall space for mounting storage and lofted sleeping areas, according to architect Jeffrey Dungan. Pictured here is the interior of the "Low Country" model designed as part of Jeffrey Dungan Collection for Clayton Homes. (Submitted/Special to the Knoxville News Sentinel)

Vaulted ceilings give the impression of spaciousness and offer additional wall space for mounting storage and lofted sleeping areas, according to architect Jeffrey Dungan. Pictured here is the interior of the “Low Country” model designed as part of Jeffrey Dungan Collection for Clayton Homes. (Submitted/Special to the Knoxville News Sentinel)

"It's more about designing much more meticulously, design by the cubic inch instead of by the square foot," said Jeffrey Dungan of his thoughtful use of the limited space in a tiny home. (Submitted/Special to the Knoxville News Sentinel)

“It’s more about designing much more meticulously, design by the cubic inch instead of by the square foot,” said Jeffrey Dungan of his thoughtful use of the limited space in a tiny home. (Submitted/Special to the Knoxville News Sentinel)

Lofty 12-foot ceilings leave plenty of space for bunk beds in the "Low Country" tiny home model, built by Clayton Homes. (Submitted/Special to the Knoxville News Sentinel)

Lofty 12-foot ceilings leave plenty of space for bunk beds in the “Low Country” tiny home model, built by Clayton Homes. (Submitted/Special to the Knoxville News Sentinel)

Every square inch of Clayton Homes Designer Series Tiny Homes has been carefully considered to accommodate high-end amenities, such as this full bathroom in the "Low Country" model home. (Supplied/Special to the Knoxville News Sentinel)

Every square inch of Clayton Homes Designer Series Tiny Homes has been carefully considered to accommodate high-end amenities, such as this full bathroom in the “Low Country” model home. (Supplied/Special to the Knoxville News Sentinel)

Last week, the Clayton home building group took their “Low Country” tiny home prototype to the Cashiers Designer Showcase in North Carolina. The event attracted interior designers and builders from around the region to explore new trends.

“People were very excited,” said Jeffrey Dungan, whose company designed the prototype. “It was almost like a childlike response, even with people who are 70 years old. I don’t know quite what it is, there’s this youthful exuberance when you talk about tiny homes and when they get to actually stand in one.”

Most people were surprised it did not feel like a “playhouse” and that it was actually really comfortable, said Dungan

“I could have sold it 15 times. People pulled out their checkbooks and offered money on the spot,” said Dungan of the response to the low country-inspired tiny house.

Dungan, a renowned Birmingham, Ala.-based architect, has partnered with Clayton building group, a division of Clayton Homes and one of America’s largest homebuilders, to bring luxury tiny homes to the housing market that the architect would not ordinarily reach.

The “Low Country” model tiny home, which was showcased in Cashiers, is 396 square feet and retails for $96,000.

“Clayton approached us to design a series of five homes and this is the first one that they’ve actually constructed,” he said. “Instead of me designing all of them, I have a talented crew that works with me, so everybody took a day to sit around and sketch, look at inspiration and share ideas. We took the best of the bunch and pursued those.”

In addition to the “Low Country” there are four different models in the series: Adirondak, Saltbox, Marseille and Cloudbreak. They range in size from 386-399 square feet.

The designers looked at different styles of architecture across the country and in Europe. “We looked at the low country in South Carolina, the Saltbox in New England, the Adirondacks in upstate New York, the French countryside, and beach huts in the Bahamas, Cape Cod or Malibu.”

“We really loved the whole attitude of being at the beach and escaping and that’s what little houses are about,” said Dungan. “Cloudbreak was inspired by beach style, surf shacks and places that sell beer and Jerk chicken in the Bahamas.”

“It’s more about designing much more meticulously, designing by the cubic inch rather than by the square foot,” said Dungan, who is more accustomed to designing high-end residences with a minimum of 7,000-8,000 square feet.

Planning and then manufacturing a small home off-site comes with its unique set of challenges according to Dungan. “Everything was a little different,” he said. “There were the restraints of working within 400 square feet — it couldn’t be more than 12 ½ feet wide to get them down the road or more than 12 feet tall to go under bridges.” This led to the modification of roof pitch in some cases.

Dungan admits to never watching shows like “Tiny House Nation”.

“When I started this study, what I reacted to was how DIY they looked,” he said. “There was a lack of overall elegance and sophistication in a lot of what I saw.”

Dungan hoped to bring the elegance and sophistication of his firm’s work into a tiny place. “I wanted the quality of the Faberge egg with details and wonderful materials,” he said. “Because you are doing something small you can afford to work with better materials. I was very impressed with Clayton’s joinery, the craftsmanship and just the materials themselves I didn’t feel like I was in a less nice space than I was accustomed to.”

Inside the prototype they opted for reclaimed materials such as the ceiling beams and the hardwood floors, and used for wood for the ceilings and vertical ship lap for the walls so there is no Sheetrock at all.

The exterior is clad in poplar bark siding with cedar shake on the roof.

Dungan said it is economical to heat and cool and the windows have the highest insulation value.

“In all of the designs we were very mindful of the 3-D space,” said Dungan. “The vaulted ceiling created wall space for additional storage and sleeping space. It can sleep up to six or eight people and that totally blows my mind.”

They may be small in stature, but do not lack for amenities. The “Low Country” accommodates eight — two in the bedroom, two in the loft area, two on a fold-out couch and two bunks. There are large French doors that open out onto a covered front porch, a full-height pantry, as well as a dishwasher and stack washer and dryer.

The architect likened the production of the “Low Country” prototype to making pancakes.

“When you are cooking your pancakes if you don’t get the heat and batter right for the first one, you adjust it,” he said. “For our first pancake, it was a heck of a good one and I’m hoping that our second and third ones will be even better.”

And Dungan said a website is in the works, where buyers can customize their home. Choosing from a myriad colors, materials and exterior options. “It will give people the flexibility to personalize their tiny home,” he added.

 

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http://www.knoxnews.com/business/clayton-home-building-group-unveils-tiny-home-designer-series-3b61819a-47c6-5e09-e053-0100007f9ad8-391938021.html

Mortgage rates average 3.48% | Waccabuc Real Estate

Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates ticking down slightly from last week’s post-Brexit high.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 3.48 percent with an average 0.6 point for the week ending September 22, 2016, down from last week when it averaged 3.50 percent. A year ago at this time, the 30-year FRM averaged 3.86 percent.
  • 15-year FRM this week averaged 2.76 percent with an average 0.5 point, down from last week when it averaged 2.77 percent. A year ago at this time, the 15-year FRM averaged 3.08 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.80 percent this week with an average 0.5 point, down from last week when it averaged 2.82 percent. A year ago, the 5-year ARM averaged 2.91 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 declined after last week’s post-Brexit high in anticipation of the Fed’s September policy meeting. The 30-year fixed-rate mortgage followed Treasury yields, falling 2 basis points and settling at 3.48 percent. Despite the decrease in rates, the Refinance Index plunged 8 percent to its lowest level since June.

Texas real estate market sizzles | Waccabuc Real Estate

1122 Gunter St 78702 East Austin house front 2015

The median home price in Texas grew to $215,000, an all-time high for the state’s housing market. 

The housing market in Texas is as hot as this summer heat. The latest quarterly housing report from Texas Association of Realtors (TAR) shows home sales have continued to increase across the Lone Star State for the hottest season to date.

Looking at the second quarter of 2016, the median home price in Texas grew to $215,000, a 7.5 percent increase from Q2 2015, and an all-time high for the state. In addition, active listings rose by 4.1 percent, while the number of closed sales hit 91,418 (up 4.4 percent) — the highest volume of Texas home sales ever.

“The last few months have been one of the strongest starts to the summer selling season in the history of Texas real estate,” says Leslie Rouda Smith, chairman of the Texas Association of Realtors, in a release.

“Texas homes of all types and price classes are in high demand. This is especially true for homes priced under $200,000, which are often preferred by first-time homebuyers but also in shortest supply across the state.”

Statewide, 45 percent of homes on the market during Q2 were affordably priced at less than $200,000. Forty-seven percent fell in the $200,000-$499,999 range and 8 percent were $500,000 or more.

In the Austin metro area, the median home price increased by 6.6 percent year-over-year, to $286,700. Active listings grew by 5.1 percent and closed sales grew by 8 percent. While these surges are making sellers happy, it’s becoming increasingly difficult for Austinites to find affordable properties.

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http://austin.culturemap.com/news/real-estate/08-02-16-texas-real-estate-report-summer-2016/

Freddie Mac: Brexit to push housing market forward in 2016 | Waccabuc Real Estate

International concerns such as slowing growth in Chinaand the Brexit vote in the U.K. played a major role in driving down mortgage rates in the U.S., according toFreddie Mac’s monthly Outlook for July.

In fact, after the U.K’s vote to leave the European Union, mortgage rates continue to lower, closing the gap even more to all-time lows at 3.41%.

This is likely to result in a boost in housing activity, particularly refinance, as homeowners take advantage of the current low rates, according to Freddie Mac’s report.

“With the U.K.’s decision to exit from the European Union, global risks increased substantially leading us to revise our views for the remainder of 2016 and all of 2017,” Freddie Mac Chief Economist Sean Becketti said.

“Nonetheless, the turbulence abroad should continue to create demand for U.S. Treasuries and keep mortgage rates near historic lows,” Becketti said. “Thereby, allowing home sales to have their best year in a decade, along with a boost in refinance activity.”

The remaining quarters of 2016 should show an increase in Gross Domestic Product at 1.9% and 2.2% in 2016 and 2017.

Due to these recent global pressures, Freddie Mac revised the 30-year fixed-rate mortgage forecast down by 30 basis points for 2016 and by 50 basis points for 2017 to 3.6% and 4% respectively.

With this new drop in mortgage rates, the refinance share of originations will rise by 49% in 2016, an increase of 8% from last month’s forecast. That will be an increase of $100 billion in originations, bringing the total to $1,825 billion.

 

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http://www.housingwire.com/articles/37499-freddie-mac-brexit-to-push-housing-market-forward-in-2016?eid=311691494&bid=1460292

Demand for home loans increasing | Waccabuc Real Estate

Even before Brexit hit, mortgage rates were at historical lows, igniting a surge in demand for home equity loans this year.

According to new results from the American Bankers Association’s Consumer Credit Delinquency Bulletin, consumers are handling the loan responsibility well, with home-related delinquencies down in two out of three categories compared to the previous quarter.

“As the housing market continues its slow and steady recovery, consumers have more valuable equity at stake, which makes their loan payments even more of a top priority,” said James Chessen, ABA’s chief economist.

“Growing equity also makes new home equity loans a viable option for qualified home owners. The market for home equity loans and lines will likely continue to grow as a larger pool of qualified borrowers looks to take advantage of low rates to make property improvements or pay off higher-interest debt,” he continued.

Home equity line delinquencies dropped 3 basis points to 1.15% of all accounts. Meanwhile, home equity loan delinquencies increased 6 basis points to 2.74% of all accounts after falling 23 basis points in the previous quarter.

It’s important to note that the first quarter marks the first time since 2008 that both home equity loan and line delinquencies are at or below their 15-year averages.

As far as the third category, property improvement loan delinquencies fell 3 basis points to 0.89% of all accounts.

For background, Bankrate explains that there are two types of home equity loans: term, or closed-end loans, and lines of credit.

A home equity loan comes in one-time lump sum that is paid off over a set amount of time, with a fixed interest rate and the same payments each month.

On the other hand, a HELOC is more comparable to a credit card.

At the start of this year, Black Knight reported that HELOCs started to surge in 2015 and was only predicted to maintain its upward trajectory into 2016.

At the time, Black Knight Data and Analytics Senior Vice President Ben Graboske said, “In total, we’re looking at over 37 million borrowers with current CLTVs below 80% that have an average of $112,000 equity available to tap in their homes, an increase of 3.1 million from just a year ago.”

The growing potential of borrowers who could capitalize on low interest rates paired with lenders trying to find new sources of business created a new surge in home equity loans.

After the financial crisis, home equity lines of credit fell to the wayside as lenders scaled back on giving out second liens and many cut existing credit lines to avoid new defaults, an article in The Wall Street Journal by Annamaria Andriotis said.

But this all started to change due to increasing property values, the growing number of homeowners who have equity available for withdrawal and lenders needing to offset faltering mortgage originations.

 

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http://www.housingwire.com/articles/37470-aba-heres-proof-rising-home-equity-levels-are-good-for-consumers?eid=311691494&bid=1454682