property management Bronx Archives

Luxury Home Market Continues To Heat Up

When it comes to real estate, most people know that location is key. Market conditions can differ from one neighborhood to the next. But location isn’t the only thing affecting the conditions you’ll encounter when shopping for a house to buy. Your price range will also have something to do with it. For example, the National Association of Realtors’ consumer website recently released its 2018 Luxury Home Index and the results show luxury home buyers face a far different market than buyers who are looking for a more affordable home. That’s because, while overall home price increases are showing signs of slowing down, in the luxury market they’re gaining speed. In fact, according to the index, there are a rising number of areas with double-digit price growth from the same time last year. In Sarasota, the nation’s fastest-growing luxury market, prices are up 21 percent from last year. Another difference between the overall market and the top 5 percent of all residential sales is the fact that luxury homes stay on the market longer. Luxury homes in the 90 counties analyzed were on the market a median of 121 days. More here.

Inventory And Home Sales Flat In August

Sales of previously owned homes were unchanged from the month before in August, according to new data from the National Association of Realtors. The number of available homes for sale was also flat, with unsold inventory at a 4.3-month supply at the current sales pace. But, though there was little change in the numbers, Lawrence Yun, NAR’s chief economist, says buyers may be getting ready to move. “Strong gains in the Northeast and a moderate uptick in the Midwest helped to balance out any losses in the South and West, halting months of downward momentum,” Yun said. “With inventory stabilizing and modestly rising, buyers appear ready to step back into the market.” In other words, though there hasn’t been a significant change in conditions, there is a sense that price increases and low inventory are beginning to move in the right direction. This can be seen in the regional results, which show that some areas are improving at a quicker pace than others. Another indicator that relief may be on the way is how long the typical property stayed on the market in August. That’s because, the number of days homes were available before selling moved up for the first time in months. But, despite the improvement, properties are still selling quickly. In fact, the typical home sold in just 29 days in August. More here.

Lumber Prices And Demand Keep Builders Confident

The new home market is an important indicator for anyone interested in making a move in the near future. Mostly, this is because the number of new homes being built and put on the market has an affect on home prices across the board. And so, keeping an eye on how confident builders feel can be a good way of gauging upcoming affordability conditions. For this reason, the National Association of Home Builders conducts a monthly survey of builders and scores their perceptions on a scale where any number above 50 indicates more of them view conditions as good than poor. In September, their Housing Market Index was unchanged from the month before but still high at 67. Randy Noel, NAHB’s chairman, says builders are feeling optimistic due to a high level of demand and lower lumber prices. “Despite rising affordability concerns, builders continue to report firm demand for housing, especially as millennials and other newcomers enter the market,” Noel said. “The recent decline in lumber prices from record-high levels earlier this summer is also welcome relief, although builders still need to manage construction costs to keep homes competitively priced.” More here.

Housing Forecast Has Good News For Buyers

In large part, home prices are a simple calculation of supply and demand. When there are more homes than interested buyers, home prices fall. When the opposite is true, home prices rise. In recent years, demand from potential home buyers has risen and the number of available homes for sale has not, which is why prices have gone up. To some extent, that’s because builders have been building fewer new homes. There are a number of reasons for this, including the recession that followed the financial crisis, rising labor and material costs, and a lack of available lots to build on. But, since building more homes is the fastest way to improve inventory levels and moderate price increases, this has caused affordability conditions to suffer and made finding a home to buy challenging for buyers in some markets. But a recent forecast from Freedonia Focus Reports may be good news for Americans interested in buying a home in the near future. According to the forecast, the number of new homes built will grow 2.4 percent annually through 2022 due to “rising levels of employment and strengthening consumer finances.” If true, that should help slow increasing prices and bring more choices for buyers of both new and existing homes. More here.

Stronger Economy Continues To Drive Mortgage Rates

Mortgage rates, to some extent, are reactionary. And so, as the economy grows stronger, rates increase. That’s been the story so far this year and, according to the latest results from the Mortgage Bankers Association’s Weekly Applications Survey, last week was no exception. That’s because, 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. Joel Kan, MBA’s associate vice president of economic and industry forecasting, told CNBC the increase was a response to improved economic data. “Treasury rates increased through the week, mainly in response to stronger data on the manufacturing sector, unemployment claims and signs of faster wage growth,” Kan said. In other words, the economy is stronger, people feel more secure in their jobs and are making more money, which caused rates to move to a five-week high. But, though mortgage rates moved up, they are still low when compared to what is historically typical and demand from home buyers remains undeterred. In fact, though affordability concerns persist, the MBA’s measure of demand for home purchase loans moved up last week and is now four percent higher than at the same time last year. More here.

Few Buyers Research Their Prospective Neighborhood

Choosing a house to buy is an important decision. After all, you’re committing a lot of money and several years of your life to a particular property. And so, home buyers tend to know what they want, whether it be a large kitchen, an appealing outdoor space, or an ample amount of storage. But surprisingly, large majorities of home buyers spend too little time paying attention to the neighborhood surrounding the home they’re considering. And, make no mistake, the neighborhood you move to will play an important role in how much you enjoy your new home. Surrounding amenities, schools, and safety are just a few of the factors that can lead to a case of buyer’s remorse. And, according to a recent survey, there are lot of buyers who’ve experienced just that. In fact, 36 percent of respondents said they’d have chosen a different neighborhood had they known more about the one they moved to. One reason this is so common is the number of buyers who do very little neighborhood research before buying. For example, less than half of recent home buyers searched photos of different parts of the neighborhood, visited hot spots, researched police reports, or took a trip to the area after dark. If you want to be certain you’re making a smart choice, do your homework and consider the area outside your potential new house just as much as you do the inside. More here.

Is Debt Holding Millennial Buyers Back?

These days, just about everyone has some debt. It’s almost more remarkable not to carry a balance of one type or another. In fact, a report last year found that 73 percent of consumers died with unpaid debts and, among them, the average owed was $62,000. That’s a lot. But accruing debt over a lifetime is different than starting one already in the hole. And, unfortunately, many young Americans today find themselves in that situation. For the most part, student loans are responsible for the money millennials owe, but credit cards and auto loans can also add to the mix. And, unsurprisingly, this is a factor when it comes time to decide whether or not to buy a house. But just how much debt are potential first-time home buyers facing? Well, according to a new study, in the top 10 cities where millennials owe the most, half of them have an outstanding balance of $25,000 or more, while about 25 percent of them owe more than $50,000. To what extent this has caused fewer young Americans to pursue homeownership, it’s hard to know. However, having some debt won’t necessarily prevent you from buying a house. And, since there are many financial factors at play, you won’t know for sure whether you might qualify for a home loan until you sit down with a mortgage professional and go over your numbers. More here.

Americans’ Financial Security Boosts Housing Sentiment

It’s said that there are two sides to every story. But there are also two sides to the calculations potential home buyers undergo when deciding whether or not it’s a good time for them to look for a new house. After all, buyers have to take into consideration the cost of homes in the areas they’re looking to live but also their own financial security. That’s why Fannie Mae’s most recent Home Purchase Sentiment Index is encouraging. Because, though Americans have concerns about housing affordability, they are feeling confident financially and secure in their jobs. In fact, the number of survey respondents who said they aren’t concerned about losing their job rose 15 percent over the month before and those reporting that their income is higher than it was 12 months earlier hit a new survey high. Doug Duncan, Fannie Mae’s chief economist, says Americans are feeling the effects of a stronger economy. “Consumers are attuned to the divergence between the slowing housing market and strong macro economy,” Duncan said. “Consumers were less optimistic this month about both home buying and home selling conditions, while perceptions of income growth and confidence about job security are at survey highs.” More here.

Fall Forecast Sees Improvement On The Horizon

There are many different factors that play a role in the housing market’s health. When home buyers and sellers decide that its time for them to make a move everything from their job security to the global economy has an effect. For example, economic instability half way around the world can move mortgage rates, which will affect how much house you can afford. But what you can afford is also affected by how much you earn and how secure you feel in your job. In short, there’s a lot to keep an eye on. That’s why it can be helpful to tune into expert forecasts and opinions, since most of us don’t have the time or inclination to weigh all of the moving parts that determine what it’ll cost to buy the home of our dreams. So what are the experts saying about the upcoming fall market? Well, according to Freddie Mac’s most recent outlook, there may be reason for optimism. That’s because, though they say fall buyers will face many of the same challenges that held summer sales back, Freddie Mac chief economist Sam Khater says there is good news to be found. “The good news is that the economy and labor market are very healthy right now, and mortgage rates, after surging earlier this year, have stabilized in recent months,” Khater says. “These factors should continue to create solid buyer demand, and ultimately an uptick in sales, in most parts of the country in the months ahead.” More here.

When Will The Buyer’s Market Return?

Housing market conditions are always in flux. One year, there will be more homes for sale than there are interested buyers. And the next, there will be more buyers than available homes. If you’re thinking about entering the market, it’s good to know where things currently stand and what’s likely to happen in the coming months. That’s because it’ll determine what price you pay and for what. These days, buyer demand is outpacing inventory and, because sellers may have more than one offer to choose from, they can expect to get a higher price for their home. But, since the market is ever-changing, eventually the tide will turn. Because of this, a recent analysis asked 100 real estate economists and experts for their best guess as to when the market will once again favor buyers. Their answers varied. Mostly because where you’re looking will determine the exact conditions you encounter. For example, buyers in the Midwest may already be seeing signs of a shift, with home price increases beginning to slow due to a higher number of available homes than there are in other areas. Overall, however, respondents saw buyers regaining some leverage sometime in the next year and a half, depending on where they’re looking and what they’re looking to buy. More here.