Wednesday, September 28, 2016

Market Matters

High Rents May Force Buyers into the MarketSource: DSNews.com
One in four home buyers reported that it was the high cost of rent that prompted them to go hunting for a house—a substantial increase from the share reported last summer, according to a survey by Redfin. First time buyers drove the increase, with more than 50 percent of them citing high rents as the reason they were looking to buy a home—more than double the 25 percent reported in August. Rents have been on the rise for several months now as demand for rental housing has increased due to a short supply of homes for sale. Redfin Chief Economist Nela Richardson commented, “Though enticed by high rents and low mortgage rates to begin a home search, first-time buyers [still] face a number of obstacles in today’s competitive market. In many cities, starter homes have seen the largest price increases because the supply of affordable homes on the market is so low and the demand for these homes is so high.”
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The Newlyweds’ Guide to Buying a Home
Source: realtor.com
 
Thirty-five percent of married Americans purchased their first home together within two years of tying the knot, according to a study by Coldwell Banker, but there are a lot of factors that come into play when a couple pursues their first home together. A couple will have to discuss the unpleasant topic of credit scores, because if one person’s credit score is substantially lower than the other person’s, that could hinder the couple’s ability to qualify for a loan, or at least get an attractive interest rate. Considering future goals will also affect which type of home—and loan—is right for a couple, such as whether they will stay in a home short-term or plan to have kids soon.
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U.S. consumer spending increase strongest in over six years
Source: Reuters
 
U.S. consumer spending recorded its biggest increase in more than six years in April, and spending is likely to remain supported by strong gains in house prices, as well as a strengthening labor market, which is steadily pushing up wages. The Commerce Department said consumer spending, which accounts for more than two-thirds of U.S. economic activity, surged 1.0 percent last month as households bought a range of goods and services. The strong consumer spending report joined data on goods exports, industrial production, housing starts, and home sales in suggesting the economy was regaining momentum after growing at a lackluster 0.8 percent annualized rate in the first quarter.
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US Home Prices Rise in March as Spring Buying Season Begins
Source: ABC
 
The Standard & Poor's/Case-Shiller 20-city home price index increased 5.4 percent in March compared with a year earlier, according to a report released this week. National home prices kept climbing in March as the spring home buying season began, but so far the higher costs haven't thwarted sales. Solid job growth, modest increases in wages and salaries, and low mortgage rates are fueling Americans' willingness to buy homes. Yet there is also a limited supply of homes on the market, which pushes up prices. Reportedly, the number of homes on the market is equal to less than 2 percent of U.S. households, the lowest percentage since the mid-1980s. Still, sales of existing homes rose 1.7 percent in April – the second straight increase – to an annual rate of 5.45 million.
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Wednesday, September 14, 2016

Market Matters


5 things to know about Governor Brown’s proposed housing plan
Source: KPCC
A $122 billion state budget was approved by Californian legislators this week and housing proved to be an unresolved issue that still lingers due to the potential for $400 million to go toward low-income housing projects. The main snag is that Governor Brown tied those funds to the Streamlining Affordable Housing Bill, which will allow developers to bypass much of the approval process for building new homes. Lawmakers would need to accept this proposal for the $400 million in funds to be made available. But those opposed to the proposal say the governor’s streamlining process threatens to cut residents and neighbors out of the development process.
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Homebuilders finally feel more positive
Source: CNBC
 
Confidence among U.S. homebuilders improved in June after a period of stagnancy for four straight months, according to a monthly survey of builder sentiment from the National Association of Home Builders. NAHB Chairman Ed Brady commented, “Builders in many markets across the nation are reporting higher traffic and more committed buyers at their job sites. However, our members are also relating ongoing concerns regarding the shortage of buildable lots and labor and noting pockets of softness in scattered markets.” June's reading is the highest since January of this year but the same as June of 2015. Of the index's three components, all posted gains.
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Mortgages and Buyers with Blemished Credit Records
Source: Bloomberg
 
First-quarter numbers from the Federal Reserve Bank of New York's consumer credit panel reveal that the U.S. mortgage finance market today is tough for those without pristine credit. Some 58 percent of the $389 billion in mortgages originated went to people with an Equifax Risk Score of 760 or higher (scores range from 280 to 850). Counting by the number of loans, instead of dollars, the share was 51 percent, the New York Fed said. That means borrowers with a score in the range of 620 to 659, which many lenders view as below-prime credit, received just 4.6 percent of the dollar volume of mortgages in the quarter. While surveys say credit is loosening for some types of loans, standards are still far tighter than they were pre-crisis.
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Student loan debt is hurting the housing market, survey finds
Source: Washington Post
 
Nearly three-quarters of people who are repaying student loans say their debt is hindering them from buying a home. The survey found that many would-be homeowners are increasingly burdened by student debt, according to the survey conducted by the National Association of REALTORS® and the nonprofit American Student Assistance. Seventy-one percent of those surveyed said their student loan debt is delaying them from buying a home. More than half said they expect that delay to last longer than five years. Because of their student debt, 69 percent said they don’t feel financially secure enough to buy a home, while 80 percent said they can’t save for a down payment.
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Wednesday, September 7, 2016

Video: Here's What Living in a

There's growing hype about tiny homes and micro-apartments. But what's it really like to live in one? ANew York Times reporter recently spent the night in a 302-square-foot micro-apartment. Read his in-depth account and watch a video here to understand the benefits and the drawbacks of this niche.

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