Daily Archives: January 28, 2014

Should You Rent or Sell Your Home? | North Salem Real Estate

 

Ryan Severino liked the location of his family’s home in Scotch Plains, N.J., but he also thought they needed more space. So in the summer of 2011, they decided to buy a bigger house. Mortgage interest rates were down, and so were home prices. “We were outgrowing our house,” Severino says. “We didn’t want to wait for prices to go back up.”

But one thing he didn’t realize was exactly how long it would take to sell the first house or to rent it, if that turned out to be the better option. “It comes down to more than pure economics,” says Severino, senior economist and associate director of research at Reis, Inc., a real estate research firm.

Finally, in the spring of 2012, eight or nine months later, Severino found a buyer for the first house. In the interim, Severino weighed the pros and cons of renting versus selling, and he reflected on the decision he ultimately made. “It was tough to sell it in that market,” Severino says. “We had the house on the market for sale while we were getting inquiries for renting it.” But Severino knew he didn’t want to be a landlord, and “didn’t want the money tied up in the house.”

Determining whether a property is a good investment takes research and analysis, and it’s wise to take your time in making the decision because it’s a major one, real estate experts say.

 

 

http://news.yahoo.com/rent-sell-home-204651328.html

Drop in New Home Sales | Cross River Real Estate

 

Monthly data out this morning show sales of new homes fell 7 percent in December, to an annualized rate of 414,000, which was below the estimates of all 75 economists surveyed by Bloomberg News. Sales are up 35 percent since the bottom of the market in 2011, but as Calculated Risk notes, they are still basically at or below the levels seen during the bottom of every previous recession. New homes sales are just one piece of the market. And as Trulia’s Jed Kolko points out on Twitter (TWTR), they’re a historically small piece right now.

More broadly, there are signs of “remarkable resilience” in the recovery, according to a Campbell/Inside Mortgage Finance HousingPulse Tracking Survey released last week. It found that nondistressed homes spent an average of 9.7 weeks on the market in December, or 20 percent less time than in December 2012. Also, homes are selling closer to their asking prices. In December, homes sold for 97.1 percent of their list prices, on average, up from 95.5 percent a year earlier.

 

http://www.businessweek.com/articles/2014-01-27/the-housing-recovery-continues-despite-a-drop-in-new-home-sales?campaign_id=yhoo

Home prices fall back slightly in November, soar from a year earlier | Cross River Real Estate

 

Home prices in the nation’s largest cities declined slightly in November from  October, as the market showed signs of cooling during the slower fall season,  according to a closely watched index.

The S&P/Case-Shiller  index of 20 large U.S. metropolitan areas, released Tuesday, fell 0.1% from  October–the first decline since November 2012. But prices soared compared to a  year earlier, rising 13.7%.

David M. Blitzer, chairman of the index committee at S&P Dow Jones  Indices, called November a “good month for home prices,” noting strong  year-over-year price appreciation.

“Prices typically weaken as we move closer to the winter,” he said in a  statement.

Western metros continue to lead the recovery. Prices in Las Vegas rose 27.3%  compared to November 2012; San Francisco 23.2%; and Los Angeles 21.6%.

The Case-Shiller index, created by economists Karl E. Case and Robert J.  Shiller, is widely considered the most reliable read on home values.

The housing index compares the latest sales of detached houses with previous  sales, and accounts for factors such as remodeling that might affect a house’s  sale price over time.

Nine cities posted price gains from October. Los Angeles, Las Vegas, Phoenix,  Miami and Tampa,  Fla., have seen 12 or more straight monthly increases.

http://www.latimes.com/business/money/la-fi-mo-case-shiller-20140128,0,5908610.story#ixzz2rhqtcUVQ

Home prices show signs of topping out | Katonah NY Real Estate

 

Home prices are showing signs of topping out: The S&P/Case-Shiller index posted its first month-over-month decline in 10 months on Tuesday.

The annual measure of home prices still increased 13.7% in November, but that was only narrowly better than the rise posted in October.

The housing recovery was one of the stronger aspects of the economy last year, boosting household wealth and home construction.

But with mortgage rates climbing steadily since hitting record lows in May, it’s clear the housing recovery is starting to lose some steam.

“While housing will make further contributions to the economy in 2014, the pace of price gains is likely to slow during the year,” said David Blitzer, chairman of the index committee at S&P Dow Jones Indices.

But housing experts say that more modest price increases are probably a good thing for the housing market. The rapid increases of the last year are not sustainable, they said.

“Sellers used to seeing huge price gains month after month may feel some whiplash as that slows down,” said Stan Humphries, chief economist for sales tracker Zillow. But more modest price increases mean “the housing market is still a long way from normal, but it’s getting there.”

Case-Shiller: Home prices dipped in November | Bedford Hills NY Real Estate

 

Home prices in November fell slightly for the first time since November 2012, as the combination of price gains earlier in 2013 and higher mortgage rates caused prices to reach a plateau, according to a leading index of housing-market activity.

The Standard & Poor’s Case-Shiller index of home prices in 20 top cities fell 0.1% in November. A separate 10-city index also fell by 0.1%, Standard & Poor’s/Dow Jones Indices said in a statement. The 20-city index showed prices 13.8% higher than a year earlier, while the 10-city index rose 13.7%.

The company said the dip is not a reversal of the housing recovery. Prices typically dip in November and this performance was the best for any November since 2005.

“Beginning June 2012, we saw a steady rise in year-over-year increases, (and) November continued that trend,” said David Blitzer, head of the index committee at S&P/Dow Jones Indices.  “The Sun Belt continues to push ahead with Atlanta, Las Vegas, Los Angeles, Miami, Phoenix, San Diego, San Francisco and Tampa taking eight of the top nine spots.”

Home prices are still rising despite last May’s jump in mortgage interest rates, Blitzer said. Mortgage applications for purchase were up in recent weeks, confirming home builders’ optimism shown in surveys by the National Association  of Home Builders, he added.

 

http://www.usatoday.com/story/money/business/2014/01/28/case-shiller-housing/4957633/

 

Home Prices in 20 U.S. Cities Rise Most Since February 2006 | Pound Ridge NY Real Estate

 

Home prices in 20 U.S. cities rose in November from a year ago by the most in almost eight years, providing a boost to household wealth.

The S&P/Case-Shiller index of property prices in 20 cities climbed 13.7 percent from November 2012, the biggest 12-month gain since February 2006, after a 13.6 percent increase in the year ended in October, a report from the group showed today in New York. The median projection of 31 economists surveyed by Bloomberg called for a 13.8 percent advance.

A limited number of available properties is helping to sustain home price appreciation even as higher mortgage rates cool demand and leave purchases out of reach for some Americans. Further strides in the housing market this year would be made easier by a pickup in job and income growth.

 

http://www.bloomberg.com/news/2014-01-28/home-prices-in-20-u-s-cities-rise-by-most-in-almost-eight-years.html