condo management Archives

Home Size Shrinks For First Time Since 2009

For many years now, the average size of a newly built home has been going up. In fact, by 2015, the typical new home was 2,689 square feet â€“ by comparison, the average was 1,660 square feet in 1974. That longtime trend took a step back last year, however. In 2016, the average new home fell 55 square feet. And, though that doesnâ€™t sound like much, it is the first time in eight years new homes were smaller than the year before, according to Rose Quint, the National Association of Home Builders assistant vice president for survey research. â€œThe data on new home characteristics show a pattern,â€ Quint said. â€œ2016 marked the end of an era that began in 2009 when homes got bigger and bigger with more amenities. I expect the size of homes to continue to decline as demand increases from first-time buyers.â€ But though Quint believes home size will continue to fall as more first-time buyers enter the market, she doesnâ€™t expect added features and amenities to become less popular. In fact, Quint says a majority of home buyers would prefer amenities and features over square footage. â€œMore than two-thirds are willing to trade size for high quality products and features,â€ Quint said. Among the most coveted home features, a separate laundry room, energy-efficient windows and appliances, outdoor living space, exterior lighting, and a full bath on the main floor rank high. MoreÂ here.

Market Movement Sends Mortgage Rates Down

According to the Mortgage Bankers Associationâ€™s Weekly Applications Survey, average mortgage rates fell last week across all loan categories, including 30-year fixed-rate mortgages with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. The drop marks the second-straight week-over-week decline and follows a period, after the election, when mortgage rates rose for several consecutive weeks. Lynn Fisher, MBAâ€™s vice president of research and economics, says markets are still adjusting. â€œTen-year Treasury yields fell the week following New Yearâ€™s Day as markets continue to adjust their expectations about the incoming administration and Federal Reserve policy,â€ Fisher told CNBC. Typically, mortgage rates follow the yield on the U.S. 10-year Treasury. Despite the recent volatility, though, mortgage rates are still just slightly higher than they were at the same time last year. Also in the report, as a result of mortgage rates moving lower, both refinance and purchase activity was up from one week earlier â€“ with the Purchase Index up 6 percent from the previous week. The MBAâ€™s weekly applications survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. MoreÂ Â here.

Survey Finds Americans In The Mood To Buy

There are an endless number of reasons you might decide to buy a home at any particular time in your life. Whether you just got a new job on the other side of town or are looking for a place closer to family, the motivation behind a move is usually very personal. But there are economic factors at play, as well. Your financial situation, optimism about the future, and perception of the market can also influence a decision to stay where you are or pack your belongings. Fannie Maeâ€™s monthly Home Purchase Sentiment Index looks at how Americans are feeling about buying a home, the real estate market, and their personal economic outlook. In December, the overall index fell slightly from the month before, though the number of Americans who said they thought it was a good time to buy a house was up from November. Doug Duncan, Fannie Maeâ€™s senior vice president and chief economist, says thereâ€™s been an increase in economic optimism recently but whether it carries through the rest of the year is uncertain. â€œA spike in economic optimism in the immediate aftermath of an election is typical,â€ Duncan said. â€œWhether consumers will sustain this level of optimism into 2017 remains unclear â€¦ If this optimism comes to fruition, it should translate into stronger income growth and increased job security for consumers â€“ the two HPSI components that could help support housing sentiment this year.â€ MoreÂ here.

The Top Spots For Buying A Second Home

Buying a second home is a common dream. Whether you want a place at your favorite vacation spot or a getaway close to home, itâ€™s fun to imagine the possibilities. And, according to recent estimates from the National Association of Home Builders, millions of Americans are doing more than imagining them. There are 7.5 million houses that are being used as second homes across the country. Thatâ€™s 5.6 percent of the nationâ€™s housing stock. But where are the most popular locations for people looking to buy a second home? Well, not surprisingly, the counties that contain the largest share of second homes are mostly rural and scenic with low populations. Hamilton County, NY topped the list with 79.3 percent of homes classified as second residences. Forest County, PA, Rich County, UT, Alpine County, CA, and Daggett County, UT rounded out the five counties with the highest share of second homes. However, when you break down the data based on the number of second homes in any given county â€“ rather than the percentage â€“ the top 10 follows a less rugged path. In fact, warm weather counties near metro areas lead the list, which includes Maricopa County, AZ, Palm Beach County, FL, Lee County, FL, Los Angeles County, CA, Broward County, FL, and Riverside County, CA among the top 10. MoreÂ here.

What Are The Country’s Hottest Markets?

Buying a home is a major financial transaction that involves piles of paperwork, years of savings, and the weight of new responsibilities. Itâ€™s also about your dreams, though. Thatâ€™s why, no matter where you live, it can be fun to think about packing up and moving somewhere new. But where would you go, if you were to move away? Well, according to Freddie Macâ€™s most recent Multi-Indicator Market Index, the hottest housing market in the country right now is Dallas. The index â€“ which compares current data to historical norms in all 50 states and the top 100 metropolitan areas â€“ looks at things like home purchase applications, payment-to-income ratios, proportion of on-time mortgage payments, and the local job market in an effort to gauge how quickly individual housing markets have rebounded from their post-crash lows. Based on those factors, Dallas leads a list that includes Nashville, Honolulu, Ogden, UT, and Los Angeles among the cities that have the healthiest housing markets. But, despite booming markets in some areas of the country, there are others that are still climbing upward. â€œWhile we see strong house price growth in markets like Dallas, Houston, Orlando, Phoenix and others, most are still well below their pre-2008 peak and still have significant room for improvement,â€ Len Kiefer, Freddie Macâ€™s deputy chief economist, said. That means, whether you fantasize about a good deal in a far-off state or are looking to move to a hot spot closer to home, youâ€™re only limited by your imagination. MoreÂ here.

Pending Home Sales Down In November

When an offer is accepted on a house, the closing process begins. During this time, the sale of that home is considered pending because it is under contract but not yet sold. The National Association of Realtorsâ€™ Pending Home Sales Index tracks these transactions because they are a good indicator of future sales of existing homes. In November, the index fell 2.5 percent from the month before. Lawrence Yun, NARâ€™s chief economist, says low inventory and higher rates affected sales during the month. â€œThe budget of many prospective buyers last month was dealt an abrupt hit by the quick ascension of rates immediately after the election,â€ Yun said. â€œAlready faced with climbing home prices and minimal listings in the affordable price range, fewer home shoppers in most of the country were successfully able to sign a contract.â€ So what does this mean for affordability conditions in 2017? Well, according to Yun, the effects of increasing mortgage rates should be subdued a bit by growing wages and a healthy job market. The more Americans feel secure with their jobs and income, the more likely theyâ€™ll be to enter the market regardless of interest rate increases. More new home construction could also help relieve affordability pressure by adding for-sale inventory to markets where there are more buyers than available homes, which would help slow price increases. MoreÂ here.

Home Price Increases Show Signs Of Slowing

Among the many different indexes tracking home prices across the country, the S&P Case-Shiller U.S. National Home Price Indices is considered the leading measure. Its nearly three decades of historical data make it a trusted source for gauging home price trends. According to the most recent release, the national index â€“ which covers all nine U.S. census divisions â€“ found home prices up 5.6 percent from where they were last year at the same time. But despite the annual gains, month-over-month results show values relatively flat from one month earlier. In fact, compared to the month before, national home prices rose less than 1 percent in October. That suggests home price increases are beginning to slow, which could be good news for buyers who are concerned about the recent upswing in mortgage rates. But, though prices may be showing signs of slowing, David M. Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices, says theyâ€™re still rising faster than incomes. â€œHome prices and the economy are both enjoying robust numbers,â€ Blitzer says. â€œHowever, mortgage interest rates rose in November and are expected to rise further as home prices continue to outpace gains in wages and personal incomes.â€ MoreÂ here.

Home Sales Hit Fastest Pace Since 2007

Sales of previously owned homes rose for the third consecutive month in November, reaching their highest sales pace since February 2007. The 0.7 percent gain in November put home sales 15.4 percent above where they were at the same time last year. Lawrence Yun, NARâ€™s chief economist, says the housing market has been helped by a healthy job market and the expectation that mortgage rates would rise. â€œThe healthiest job market since the Great Recession and the anticipation of some buyers to close on a home before mortgage rates accurately rose from their historically low level have combined to drive sales higher in recent months,â€ Yun said. â€œFurthermore, itâ€™s no coincidence that home shoppers in the Northeast â€“ where price growth has been tame all year â€“ had the most success last month.â€ In fact, regional results show the Northeast saw an 8 percent improvement in November, while the South, Midwest, and West were relatively flat from the previous month. Also in the report, the typical home for sale last month was on the market 43 days, which is considerably faster than last year when homes stayed on the market an average of 54 days. MoreÂ here.

Home Buyers Come Out Despite Higher Rates

According to the Mortgage Bankers Associationâ€™s Weekly Applications Survey, average mortgage rates rose yet again last week. In fact, rates were up across all loan categories, including 30-year fixed-rate mortgages with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. But despite higher rates, the number of Americans requesting applications for home loans rose from the week before. Michael Fratantoni, MBAâ€™s chief economist, told CNBC that application demand may have bumped up in anticipation of the Fed raising interest rates last week. â€œMortgage rates increased at least partially as a result of the Federal Reserveâ€™s rate hike and move to a slightly more hawkish stance,â€ Fratantoni said. â€œBorrowers may have gotten applications into their lender in advance of the FOMC announcement, as most observers anticipated an increase in the Fedâ€™s rate target at the December meeting.â€ Still, though the Fed did raise rates, average mortgage rates are still well below their historical norm â€“ meaning there are still opportunities for homeowners looking to refinance or buyers hoping to lock in a low rate. The MBAâ€™s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications.

Will Low Inventory Affect Your Home Search?

If youâ€™ve followed the housing market at all this year, youâ€™ve likely heard something about inventory. Inventory refers to the number of homes available for sale. This year, itâ€™s been lower than usual. And, when for-sale inventory is low and buyer demand is high â€“ as itâ€™s been this year â€“ prices rise and sellers hold most of the negotiating power. In many markets, that has been the story this year. However, according to a new analysis from Trulia, whether or not low inventory will affect a buyerâ€™s home search depends on where that buyer is looking and what kind of home theyâ€™re looking to buy. For example, starter homes had the largest drop in inventory last year, falling 10.7 percent. On the opposite end of the spectrum, the number of high-end homes for sale only fell 3.7 percent. Naturally, that means a first-time buyer looking for an affordable home may have fewer homes to choose from than a luxury home buyer. However, it also depends on where you live. According to Truliaâ€™s analysis, markets in the Southwest and Southeast have generally been adding enough homes for sale to keep up with buyer demand. In fact, Truliaâ€™s research shows double-digit increases in the number of homes for sale in some markets, especially in states like Florida and California. That could be an indication that weâ€™ll see inventory begin to improve in more markets next year. MoreÂ here.