Wednesday, May 25, 2016

There Are Plenty of New Apartments Being Built—Just Not Affordable Ones

Source: The Atlantic
Rental prices have been skyrocketing in just about every American city. Since the ranks of renters are growing without a corresponding increase in construction, rents are rising across the board. Nationwide, rental prices increased by 3.7 percent from September 2014 to September 2015, according to Zillow. But new analysis shows that the price of housing is increasing a whole lot more for those at the bottom of the economic ladder than for those at the top. A lot more construction is happening at the top of the market, where developers and builders are quickly getting luxury apartments to market. Meanwhile, construction has been slow for cheaper apartments.

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Wednesday, May 18, 2016

A Record Share of Young Women Are Living at Home

New analysis from the Pew Research Center shows that a larger share of young American women are living with family now than at any time since the 1940s, as more of them forgo early marriage for higher education. While the Great Recession nudged many millennials back to their parents’ homes, the shift is particularly apparent among women. In 1940, 36.2 percent of women age 18 to 34 lived with their parents or other relatives, and by 2014, the share of women living with family had climbed back up to 36.4 percent. Women today are five times as likely to be enrolled in college than in 1940, when only 5 percent of 18-to-34-year-olds were pursuing a degree.
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Wednesday, May 4, 2016

Real Home Prices Could Take 17 Years to Return to Peak

Source: Wall St. Journal
New analysis by real-estate information firm CoreLogic finds that when adjusted for inflation, home prices are years away from hitting the lofty heights of the housing boom. Indeed, economists there say that prices are unlikely to surpass 2006 levels until 2023 or beyond, some 17 years past the peak. The rise and fall in prices without adjusting for inflation matter for existing homeowners because they determine whether or not they are underwater on their mortgages. The rapid run-up in prices in recent years has made it easier for people to sell their homes because they no longer owe more on their mortgage than the home is worth.

Monday, May 2, 2016

Interest Rate Update

Interest rates are still looking good. Even with the .25% hike in the Federal Funds Rate long term interest rates remain at historic lows.

30 Year Fixed up to $417,000 3.50% to 3.75%
30 Year Fixed “Agency” up to $625,500 3.625% to 3.875%
30 Year Fixed FHA up to $417,000 3.25% to 3.50%
30 Year Fixed FHA “Jumbo” up to $729,500 3.25% to 3.50%

Freddie Mac Makes “Bold” Prediction

Officials from residential giant Freddie Mac are predicting that housing starts and home prices will reach their highest levels since 2006. That is a nationwide prediction. Low interest rates, an improving job market, and a gradual increase in housing supply will fuel a strong 2016. The chief economist for Freddie Mac stated “housing markets are poised for their best year in a decade”. The prediction also states that the housing markets should sustain their momentum through 2017 which is always good news.

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