Category Archives: South Salem

Freddie Mac September 2015 Insight & Outlook | South Salem Real Estate

Leave a reply

Freddie Mac (OTCQB: FMCC) released today its monthly Insight & Outlook for September looking at the challenges faced by three types of student loan borrowers, and how loan down payment mortgage loans could help, or not help, make homeownership possible. A video preview, along with the complete monthly Insight & Outlook commentary is available here.

Insight Highlights

  • Is the student debt overhang holding back home ownership among Millennials?
  • While the home ownership rate has been declining for all age groups, the rate among Millennials is particularly low.
  • Student debt tripled over the past 10 years, reaching $1.2 trillion in the fourth quarter of 2014. Aggregate student debt expanded for all age groups, however the balances are concentrated among those under 30 years old and those between 30 and 39 years old.
  • Before the crisis, homeownership rates of 27-to-30-year-olds with student loans (evidence of at least some college education) were 2 to 3 percent higher than homeownership rates of those with no student loans. That gap began to close during the recession and reversed in 2011. By 2014 the homeownership rate of borrowers was about one percentage point lower than the rate of non-borrowers.
  • Recent findings suggest that it may be useful to think of student loan borrowers as being divided into three groups: Successful investors, Disappointed earners, and At-risk borrowers.
  • The At-risk Borrowers group is a particular focus for Freddie Mac’s efforts to support prudent, affordable lending to low-and-moderate income borrowers. The impact on credit scores of poor repayment performance may make it particularly difficult to assist some members of this group.
  • For the Disappointed Earners — and even some of the Successful Investors — Freddie Mac’s Home Possible Advantage(SM) program, with its option to pay as little as 3 percent down, may provide help in purchasing that first home.

Outlook Highlights

  • At the current pace, home sales this year are expected to be the highest since 2007. Existing home sales in August fell a little short of expectations, but the inventory of existing homes for sale remained below the 6-month mark.
  • The faster-than-expected decline in the unemployment rate is boosting demand for homes. However, a more significant contributor is likely the continued low level of mortgage rates, which has kept affordability high despite impressive gains in house prices. The interest rate on 30-year fixed rate mortgages averaged 3.90 percent in August, and the rate on 15-year fixed rate mortgages averaged 3.12 percent.
  • Based on upward revisions of the 2014 Home Mortgage Disclosure Act (HMDA) data on mortgage origination, and stronger-than-expected housing activity in the first half of 2015, Freddie Mac has increased its estimate of 2015 mortgage originations to $1.53 trillion and 2016 originations to $1.40 trillion.

Quote: Attributed to Sean Becketti, Chief Economist, Freddie Mac.

“The low homeownership rate among Millennials is still something of a puzzle — it cannot be explained solely by the increase in student loan debt. However student debt plays a role — higher balances are associated with a lower probability of homeownership at every level of college and graduate education. And recent data has confirmed that not all student debt is created equal. Students who attended schools with less-certain educational benefits have not fared well. Borrowers who did not complete their studies have fared worst of all. These groups are likely to continue to affect the pattern of homeownership among Millennials. Moreover, a change just this month in Federal Housing Administration policy will make it more difficult for some student loan borrowers to qualify for a mortgage.”

“Our Outlook this month shows the economy has not kicked into gear yet, and the Fed’s recent decision to defer increasing short-term interest rates suggests they share this view. At the same time, the housing market is on its way to having the best year since the recovery began. Keep in mind. Though. that the housing sector is coming back from rock bottom and housing activity remains weak compared to historical norms. At the same time, Fed watchers must feel they are watching a revival of Waiting for Godot. Approaching every meeting of the Federal Open Market Committee, the market braces itself for a Fed tightening, only to watch the Committee delay any action for at least one more meeting.”

Mortgage rates average 3.90% | South Salem Real Estate

Leave a reply

Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates largely unchanged following a shortened week and mixed economic signals prior to the Fed’s meeting next week.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 3.90 percent with an average 0.6 point for the week ending September 10, 2015, up from last week when it averaged 3.89 percent. A year ago at this time, the 30-year FRM averaged 4.12 percent.
  • 15-year FRM this week averaged 3.10 percent with an average 0.7 point, up from last week when it averaged 3.09 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 2.91 percent this week with an average 0.5 point, down from last week when it averaged 2.93 percent. A year ago, the 5-year ARM averaged 2.99 percent.
  • 1-year Treasury-indexed ARM averaged 2.63 percent this week with an average 0.3 point, up from last week when it averaged 2.62 percent. 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.

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

“Following a shortened week, mortgage rates were virtually unchanged, inching up 1 basis point to 3.90 percent. The employment report released last Friday provided mixed signals, adding one more note of uncertainty prior to the Fed’s September meeting. The unemployment rate dropped to 5.1 percent in August, the lowest rate since April 2008, but only 173,000 jobs were added, well below expectations. Wages grew 2.2 percent, a neutral indication at best.

Homes for $350,000 | South Salem Real Estate

Leave a reply

What does a $350,000 home look like? The image that pops into your head likely depends on where you live.

A San Franciscan may be hard-pressed to imagine even the smallest condo being sold for that price. But an Atlanta resident might have a variety of homes in mind, from the impeccably decorated bungalow down the street to the ritzy condo downtown.

Whether you’re searching for a smaller space in a big city or a bigger space in a quiet neighborhood, you have some great options. Check out the following 10 listings, all located in metropolitan locales across the country and priced at approximately $350,000.

Oakland, CA

2757 Parker Ave, Oakland, CA
For sale: $340,000

Oakland, CA

Featuring a kitchen worthy of any culinary adventure, this remodeled 2-bedroom, 1-bathroom home is ready for cocktail parties and holiday dinners.

See more homes for sale in Oakland.

Memphis, TN

2344 Wood Bridge Cv, Memphis, TN
For sale: $345,000

Memphis, TN

Boasting major curb appeal with its storybook façade and setting, this 5-bedroom, 3-bathroom home is a sight to behold.

See more Memphis homes for sale.

Philadelphia, PA

605 N 12th St, Philadelphia, PA
For sale: $335,000

Philadelphia, PAA modern kitchen, hardwood floors, and patio/garden area make this elegant, 2-bedroom, 2.5-bathroom townhouse a prime spot for entertaining guests.

See more homes listed in Philadelphia.

Minneapolis, MN

4745 Blaisdell Ave, Minneapolis, MN
For sale: $349,900

Minneapolis, MN

In addition to boasting a stunning interior, this fully renovated, 3-bedroom, 2-bathroom home has a large, fenced backyard — perfect for kiddos and/or pets.

See more homes listed in Minneapolis.

Boston, MA

143 Forest Hills St UNIT 2, Boston, MA
For sale: $339,000

Boston, MA

French doors open to a sunlit living room, flowing seamlessly into a bright dining room. This 2-bedroom, 1-bathroom condo also boasts a large kitchen, hardwood floors, and two porches.

See more Boston homes for sale.

Fort Lauderdale, FL

732 SW 13th Ave, Fort Lauderdale, FL
For sale: $350,000

Fort Lauderdale, FL

Nestled in a historic neighborhood, this 3-bedroom, 2-bathroom home offers desirable, tranquil living with tile floors, a modern kitchen, and a huge backyard.

See more homes for sale in Fort Lauderdale.

 

read more…

 

http://www.zillow.com/blog/how-much-home-for-350000-182373/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+ZillowBlog+%28Zillow+Blog%29

Foreclosure Rates, Inventory Continue to Drop: CoreLogic | South Salem Real Estate

Leave a reply

Foreclosure inventory and completed foreclosures declined drastically during June, real estate analytics firm CoreLogic found in its monthly survey.

Foreclosure inventory declined 28.9% on a year-over-year basis in June to 472,000 homes. Completed foreclosures also declined year-over-year, down 14.8% to 43,000. Likewise, the number of homes in “serious delinquency,” which the firm defined as 90 days or more past due on mortgage payments, declined 23.3%.

“The foreclosure rate for the U.S. has dropped to its lowest level since 2007, supported by a continuing decline in loans made before 2009, gains in employment and higher housing prices,” said CoreLogic chief economist Frank Nothaft in a release.

“The decline has not been uniform geographically, as the foreclosure rate varies across metropolitan areas,” he said, adding that Tampa, Fla., and Nassau and Suffolk counties in New York have seen increased foreclosure rates.

“Serious delinquency is at the lowest level in seven and a half years reflecting the benefits of slow but steady improvements in the economy and rising home prices,” said CoreLogic president and chief executive Anand Nallathambi in the release. “We are also seeing the positive impact of more stringent underwriting criteria for loans originated since 2009 which has helped to lower the national seriously delinquent rate.”

 

read more…

 

http://www.nationalmortgagenews.com/news/distressed/foreclosure-rates-inventory-continue-to-drop-corelogic-1058484-1.html

Nearly Half of Homes in Top Markets are Losing Value | South Salem Real Estate

Leave a reply

Despite market reports of strong median home price appreciation this spring, gains are very uneven and nearly half of homes in ten of the nation’s largest markets actually lost value in May. On a house-by-house basis, about one-third fewer homes in the largest markets gained value during the heart of the spring buying season this year compared to last, according to Weiss Residential Research’s Indexes.

Only 54 percent of homes in the markets appreciated during May compared to 81 percent in May 2014, a sign that the downward trend may continue in the coming months.  In Denver, the hottest market in the nation, 84 percent of houses appreciated in May compared to 95 percent last year.  In the Washington, DC market, weakest of the top ten, only 34 percent of houses gained value in May compared to 57 percent in May 2014.

“Don’t be fooled by averages,” said Allan Weiss, founder and CEO of Weiss Residential Research.  ‘All of the largest metro indexes are rising more slowly than they were a year ago though market reports give the impression that values are rising across the board.  However people don’t own the entire market, they own one house.”

Larger homes are having a harder time than smaller homes with two bedrooms or less.  In Denver, larger homes appreciated 5.8 percent on a year over year basis in May compared to smaller homes.  In Washington, DC, larger homes actually fell -0.7 percent.  Smaller homes declined less, -0.2 percent year over year.

 

Same Pattern as the Housing Crash

In a metro like DC with a median price increase of 1.2 percent in the past year according to Case-Shiller, 60 percent of the houses are rising and the other 40 percent are stagnant or falling.  Since the ones that are appreciating outnumber the ones falling the average is a low positive number, Weiss said.

“The same pattern occurred before the great housing meltdown ten years ago.  The percent of houses rising in DC declined from 100 percent to 60 percent while the metro index showed a slowdown but did not go negative.  Once the population of houses that had been rising fell below 50 percent, the index began its descent,” Weiss said.

 

read more…

 

http://www.realestateeconomywatch.com/2015/07/nearly-half-of-homes-in-top-markets-are-losing-value/

Homeownership Falls, Household Formations Rise | South Salem Real Estate

Leave a reply

According to the Census Bureau’s Housing Vacancy Survey (HVS), the nation’s homeownership rate in the second quarter of 2015 fell to a post-1967 low point of 63.4%. The homeownership rate decreased by 130 basis points on a nonseasonally adjusted basis from the second quarter of 2014 to the second quarter of 2015.

Compared to the peak at the end of 2004, the homeownership rate has steadily decreased by 5.8 percentage points and remains far below the 25-year average rate of 66.3%.

Slide1

Homeownership rates decreased for all age groups on a year-over-year basis. The homeownership rate for household heads younger than 35 years old (34.8%) decreased by 110 basis points from the second quarter of last year. The largest decline, however, was for those aged 35-44 (58%), with an annual drop of 220 basis points.

Slide2

The nonseasonally adjusted homeowner vacancy rate continues to drop after the Great Recession. The current homeowner vacancy rate is 1.8%, 10 basis points lower than last quarter and the second quarter of 2014.

The national rental vacancy rate remains relatively low and declined by 30 basis points to a 6.8% rate for the second quarter on a nonseasonally adjusted basis. The rental vacancy rate was 7.5% for the second quarter of 2014.

Slide3

The HVS also provides a timely measure on household formations – the key driver of housing demand. Although it is not perfectly consistent with other Census Bureau surveys (Current Population Survey’s March ASEC, American Community Survey, and Decennial Census), the HVS remains a useful source of relatively real-time data.

 

read more…

 

http://eyeonhousing.org/2015/07/homeownership-falls-household-formations-rise/

US housing market is on fire | South Salem Real Estate

Leave a reply

We just got another sign the housing market is on fire.

On Wednesday, we learned that existing home sales jumped to the fastest pace since February 2007.

Sales rose 3.2% month-over-month to an annualized pace of 5.49 million.

Economists had forecast a rise of 0.9% to an annualized pace of 5.40 million.

In the release from the National Association of Realtors, Lawrence Yun noted that the past two months were the strongest for sales since early 2007.

“This wave of demand is being fueled by a year-plus of steady job growth and an improving economy that’s giving more households the financial wherewithal and incentive to buy,” Yun said.

Ian Shepherdson, chief US economist at Pantheon Macroeconomics, said in a note out after the report, “In one line: strong across the board.”

But this isn’t the first sign the housing market is roaring back. On Friday we got housing data that posted eight-year highs from the Census Bureau, showing that housing starts rose 9.8% to an annualized pace of 1.174 million, the highest since July 2007.

Building permits, which point to the pace of future construction, rose 7.4% to an annualized pace of 1.343 million.

In Wednesday’s release, NAR president Chris Polychron said that even with the uptick in home prices, demand is still solid across the board.

“The demand for buying has really heated up this summer,” Polychron said, “leading to multiple bidders and homes selling at or above asking price. Furthermore, tight inventory conditions are being exacerbated by the fact that some homeowners are hesitant to sell because they’re not optimistic they’ll have adequate time to find an affordable property to move into.”

fredgraphconstrution spendingFRED

And as we highlighted over the weekend, the housing market is reflecting a bigger macroeconomic story of a US economy that is picking up steam.

Deutsche Bank’s Joe LaVorgna spelled this out in a note to clients on Tuesday, writing:

“We remain positive on the housing outlook. The economy has created nearly 3 million jobs over the past year, the unemployment rate is almost a percentage point lower, and consumers have saved well over $100 billion in energy costs over the last 12 months. Moreover, as we highlighted in the latest US Economics Weekly, commercial banks continue to ease lending standards for mortgages …”

LaVorgna continued:

In short, there are several positive tailwinds for the housing sector that should result in a more pronounced pickup in activity over the next several quarters. If this is the case, policymakers should become more confident that consumer spending, which accounts for roughly 70% of GDP, is on firm footing.

And it’s not just economists who are bullish on housing. The Federal Reserve’s latest beige book noted an uptick in real-estate activity in several of its 12 districts. The bullish signs are everywhere.

Read more: http://www.businessinsider.com/existing-home-sales-july-22-2015-7#ixzz3gdhXWob8

 

 

Apartment construction drives US homebuilding surge in June | South Salem Real Estate

Leave a reply

U.S. builders broke ground on apartment complexes last month at the fastest pace in nearly 28 years, as developers anticipate that recent jobs gains will launch a wave of renters

The Commerce Department said Friday that housing starts in June climbed 9.8 percent to a seasonally adjusted annual rate of 1.17 million homes. All of that growth came from a 28.6 percent surge in multi-family housing that put apartment construction at its highest rate since November 1987. Starts for single-family houses slipped 0.9 percent last month.

The gains show that what had been a sluggish construction sector is now running on economic adrenaline. Strong job growth and a rebounding economy have increased the numbers of buyers and renters searching for homes, while gradually rising mortgage rates have spurred homeowners to finalize deals.

Housing starts jumped 35.3 percent in the Northeast because of apartments, while climbing 13.5 percent in the South. Home construction slumped in the Midwest and West in June.

Nationwide, housing starts have risen 10.9 percent year-to-date.

Over the past 12 months, employers have added 2.9 million jobs, meaning that there are that many more people with paychecks to spend across the broader economy. The impact of those job gains and the unemployment rate dropping to 5.3 percent has surfaced in housing, where demand is outpacing the supply of homes and creating more pressure to build houses and apartments.

The market for new homes for sale had just 4.5 months of supply in May, compared to 6 months in a healthy market.

Approved building permits rose increased 7.4 percent to an annual rate of 1.34 million in June, the highest level since July 2007. The bulk of that increase came for apartment complexes, while permits for houses last month rose just 0.9 percent.

There are other signs that builders are increasingly optimistic.

The National Association of Home Builders/Wells Fargo builder sentiment index released Thursday climbed to 60 this month, a level last reached in November 2005 — shortly before the housing boom gave way to the mortgage crisis that triggered the Great Recession. Readings above 50 indicate more builders view sales conditions as good rather than poor.

Mortgage rates have started to rise, although they remain low by historic standards.

The average 30-year, fixed mortgage rate was 4.09 percent last week, according to the mortgage firm Freddie Mac. That is up from a 52-week low of 3.59 percent.

 

read more…

 

http://hosted.ap.org/dynamic/stories/U/US_HOME_CONSTRUCTION?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2015-07-17-09-17-04

A Recovery Tipping Point for Housing | South Salem Real Estate

Leave a reply

It’s official. It took six grueling years since the Great Recession ended, but now, the housing recovery enters the second half of 2015 as a fundamentals-driven rebound.

What does it mean now that housing—and its infinite mosaic of geographical fiefdoms down to the submarket and lot-line level—has healed its gravest wounds? What does it mean to developers and builders that buyers and sellers of home properties are people to people, not desperate people to institutions? What does it mean when we say that a housing cycle’s trajectory has moved decisively from a focus on investors’ resources to an exchange of values from owner-occupier to someone who wants to be an owner-occupier of a primary residence?

As we note from RealtyTrac’s latest U.S. Home & Foreclosure Sales Report for May, all of the benchmarks for abnormal residential real estate behavior—cash sales, distressed sales, bank-owned sales, and in-foreclosure sales—dramatically subsided in the past month and, even more dramatically so in the past 12 months.

Here are a few of the highlights of the RealtyTrac May Foreclosure report, noted by Daren Blomquist, vice president at RealtyTrac.

As distressed and cash sales declines, normalized housing transactions represent a larger share of the market.
  • 24.6 percent of all single family home and condo sales in May were all-cash purchases, down from 28.5 percent in the previous month and down from 30.4 percent a year ago to the lowest level since November 2009
  • The share of distressed sales dropped to a new low of 10.5 percent in May, down from 15.4 percent in April and down from 18.3 percent a year ago
  • Bank-owned sales accounted for 3.9 percent of all residential property sales in May, down from 6.9 percent in the previous month and down from 9.0 percent a year ago

Properties that sold while in the foreclosure process — but not yet bank-owned — accounted for 6.6 percent of all residential property sales in May, down from 8.5 percent the previous month and down from 9.2 percent a year ago

The market has spoken. It’s no longer rewarding investor opportunism, short-term gains for cash-flush buyers, nor quick flippers, nor even global “safe-haven” buyers who buoyed the marketplace as deterioration switched to resilience three years ago.

 

read more…

 

http://www.builderonline.com/builder-100/strategy/a-recovery-tipping-point_o?utm_source=newsletter&utm_content=Opinion&utm_medium=email&utm_campaign=BP_070215%20(1)&he=bd1fdc24fd8e2adb3989dffba484790dcdb46483

Realtor.com, Airbnb partner to let homebuyers test-drive the neighborhood | South Salem Homes

Leave a reply

Realtor.com and Airbnb have teamed up to allow potential homebuyers to “live like a local” by experiencing a specific neighborhood before purchasing.

Visitors to realtor.com will be able to book accommodations nationwide on Airbnb ranging from single-family homes to condos, lofts and other properties located near their desired neighborhood.

“This collaboration with Airbnb reinforces our commitment to giving consumers unparalleled insight to make informed real estate decisions,” said Ryan O’Hara, chief executive officer of Move. “Our relationship with Airbnb—a company that helps millions of people feel at home in communities around the world—allows us to reduce some of the unknown factors associated with relocating to a new community. It is what we mean when we say realtor.com puts the ‘real’ in real estate.”

“We’re pleased to team up with realtor.com to encourage and support the home buying process,” said Chip Conley, head of global hospitality & strategy at Airbnb. “As we offer a variety of unique accommodations in neighborhoods across the country, we’ll be able to allow potential homeowners the special opportunity to experience those neighborhoods as if they already live there – before making the decision to buy.”

Consumers who visit realtor.com to look at homes in new neighborhoods can select the option to “Airbnb before buying.”

 

read more….

 

http://www.housingwire.com/articles/34291-realtorcom-airbnb-partner-to-let-homebuyers-test-drive-the-neighborhood