Home Prices Rise in 38 States in Q4

Author: Krista Franks-Brock February 26, 2014 

Home prices rose 7.7 percent year-over-year in the fourth quarter, while prices for other goods and services ticked up 0.7 percent, according to the Federal Housing Finance Agency (FHFA) House Price Index, which calculates home prices among mortgages held by Fannie Mae and Freddie Mac. A total of 38 states reported rising prices in the fourth quarter of the year, a significant showing but fewer than the 48 from the previous quarter, according to the FHFA.
On a quarterly basis, prices rose 1.2 percent, marking the tenth consecutive quarter of price increases, according to the FHFA. On a seasonally-adjusted monthly basis, prices rose 0.8 percent in December, according to the agency’s index.
The price appreciation that took place in the fourth quarter was "considerable, but more modest than in recent periods," according to Andrew Leventis, principal economist for the FHFA.
"It is too early to know whether the lower quarterly growth rate represents the beginning of more normalized price appreciation patterns or a more significant slowdown," Leventis added.
Prices rose most over the year in Nevada (24.32 percent), California (19.50 percent), Arizona (15.22 percent), Oregon (12.87 percent), and Florida (12.63 percent), according to FHFA's seasonally-adjusted, purchase-only index.
The five states with the lowest home price appreciation over the year were West Virginia (-1.78 percent), Delaware (0.12 percent), Arkansas (0.50 percent), Connecticut (1.15 percent), and Rhode Island (1.16 percent).
Among the 100 metros with the highest populations in the United States, those with the highest price appreciation over the year were largely based in the West, according to FHFA's all-transaction index, which includes data from both purchases and refinances. In fact, 15 of top 20 are located in California, according to the FHFA. Modesto, California, topped the list with prices rising 28.50 percent over the year. Other states with metros on the top 20 list were Nevada, Oregon, Arizona, and Florida.
Many of the metros ranking lowest for price appreciation over the year are located in the Midwest and the South. Rockford, Illinois experienced the greatest price depreciation over the year with a 6.46 percent drop, according to the FHFA.
Based on the nine Census divisions, prices rose most over the year ending in December in the Pacific region, where they jumped 14.9 percent. The Mountain division posted the second-greatest increase with a 12.6 percent rise in prices, according to the FHFA purchase-only index.

10 Things That Make a House a Good Home

You know what makes a good home, right? As long as it has a pretty front door and there are flowers planted in front, it's probably a good one, right? Wrong. While curb appeal is important, there are other, more serious considerations you should make. Here are 10 things to look for in a good house:

1. Location, location, location
Perhaps nothing is more important than the three L's. Is it close to your work? Is it too close to the highway? Is it located in a nice neighborhood?
2. Schools
Even though you might not have children, buying a home in a good school district is always smart. If the schools are good, homes tend to hold their value.
3. Situated on the lot
Is it nicely situated on the lot? Will it get much-desired Southern exposure (e.g., sunshine)? Can you see your neighbors, or can they see you once inside? Is it too close to the road?
4. Crime
It's always a good idea to check latest crime figures for a neighborhood. It can give you a good snapshot about the number and severity of crimes over a time period.
5. Walkability
Many people value the ability to walk to a store or school or work. Plus, being in a safe, walkable neighborhood is highly desirable.

6. The neighborhood’s character

You may have found the absolute most perfect home, on the best block, in the best school district and on a great lot. But there could be circumstances outside your control that may give you pause — specifically, the character of the surrounding neighborhood.
Check out the area late at night, early morning and in the middle of the day. See if there are any odd weather or traffic patterns and try to observe some of the neighbors. You may even go so far as talking to some neighbors. It’s important to walk around, open your eyes and ears and make sure there isn’t anything you’re overlooking. That next-door neighbor practicing drums in the garage at 9 p.m. could be a source of immediate neighbor conflict. Go into it with eyes wide open.

7. Don’t buy the best house on the block

Simply put, avoid buying the best house on the block because there may not be any room for your investment to grow (unless you physically have the house moved to a better neighborhood). It’s better to buy the worst house on the best block, because you can improve the house to add value to an already great location.

8. Is it a fixer-upper?

If you’re buying a fixer-upper, make sure you understand what you’re getting into.  Did you set out to buy a home that needed work? Or does the home just happen to be in the most desirable neighborhood, the block of your dreams?
Do your homework upfront. If you want to build an extension or add another story to the property, make sure it is within local zoning or building codes. Have the property inspected so that you know exactly what you’re getting yourself into. Sometimes, what appears to be a simple kitchen needing cosmetic work turns out to be a huge project. Ask yourself repeatedly if your life can support a home renovation. Not only does a renovation take money, it takes time, energy and emotional stress.

9. Will the home hold its value?

A good real estate agent who’s been working the neighborhood for some time can vouch for the long-term value or investment potential of the property. But be sure to find ways to add value, or at least be certain the home will hold its value.
The market may be strong when you purchase, but ask yourself, “Am I in a seller’s market?” “What would happen to this property if the market changed tomorrow”?

10. Taxes, dues and fees

Many people overlook the monthly fees associated with homeownership. Nearly every property will have taxes, and any sort of planned community or homeowners association (HOA) will have regular assessments.
Be sure that the amount of property tax and assessments are clear from the get-go. If in doubt, go to city hall or do research online. If you’d be buying into a condo complex, be sure to get your hands on the meeting minutes, financials of the HOA and the condo documents. Any mention of changes coming down the pike? Does the HOA seem well funded? It could take one quick $10K assessment to immediately affect property values if you need to turn around and sell your new home. And any uncertainty about the building, its integrity or the financials could scare off buyers when it’s time to sell.

Home price gains slowing

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Feb 25, 2014

Home prices declined for the second consecutive month in December, dropping 0.1 percent month over month, according to the S&P/Case-Shiller 20-City Composite Index.
“The S&P/Case-Shiller Home Price Index ended its best year since 2005,” says David M. Blitzer, chairman of the index committee at S&P Dow Jones Indices. “However, gains are slowing from
month-to-month and the strongest part of the recovery in home values may be over.”
On an annual basis, home prices were up 13.4 percent year over year.
Source: S&P/Case-Shiller Home Price Indices

- See more at: http://www.inman.com/wire/home-price-gains-slowing/#sthash.wIG5T5ZB.dpuf

Home price gains slowing

share this

Feb 25, 2014

Home prices declined for the second consecutive month in December, dropping 0.1 percent month over month, according to the S&P/Case-Shiller 20-City Composite Index.
“The S&P/Case-Shiller Home Price Index ended its best year since 2005,” says David M. Blitzer, chairman of the index committee at S&P Dow Jones Indices. “However, gains are slowing from
month-to-month and the strongest part of the recovery in home values may be over.”
On an annual basis, home prices were up 13.4 percent year over year.
Source: S&P/Case-Shiller Home Price Indices

- See more at: http://www.inman.com/wire/home-price-gains-slowing/#sthash.wIG5T5ZB.dpuf

Multiple Factors Slow Home Sales Activity in January

Author: Tory Barringer February 21, 2014 

Existing-home sales slowed last month to a seasonally adjusted annual rate of 4.62 million—their lowest level in a year and a half—as ongoing inventory constraint lifted prices, the National Association of Realtors(NAR) reported Friday. The drop represents a 5.1 percent decline compared to both December and January last year.
On just the single-family side, sales were down to a rate of 4.05 million, a decline of 5.8 percent month-to-month and 6.0 percent year-over-year.
According to NAR, last month's sales activity was the slowest since July 2012, when transactions stood at a rate of 4.59 million.
"Disruptive and prolonged winter weather patterns across the country are impacting a wide range of economic activity, and housing is no exception," said NAR chief economist Lawrence Yun.
At the same time, Yun noted "we can't ignore the ongoing headwinds of tight credit, limited inventory, higher prices and higher mortgage interest rates."
"These issues will hinder home sales activity," he said, "until the positive factors of job growth and new supply from higher housing starts begin to make an impact."
NAR president Steve Brown, meanwhile, pointed to the impact of elevated flood insurance rates in certain impacted markets.
"Thirty percent of transactions in flood zones were cancelled or delayed in January as a result of sharply higher flood insurance rates," Brown said. "Since going into effect on October 1, 2013, about 40,000 home sales were either delayed or canceled because of increases and confusion over significantly higher flood insurance rates. The volume could accelerate as the market picks up this spring."
Congress is currently considering legislation to put a hold on new flood insurance rates while emergency agencies review their potential impact on housing affordability.
All-cash sales made up one-third of January transactions, up from 32 percent in December and 28 percent last year. Individual investors purchased 20 percent of homes last month, falling between last month’s 21 percent and January 2013’s 19 percent.
Meanwhile, first-time buyers accounted for only 26 percent of purchases, the lowest market share since NAR began monthly measurements in October 2008. First-time buyers should normally make up about 40 percent of sales, according to the group.
Existing-home sales decreased in all four regions as prices continued to rise. In the Northeast, sales were down 3.1 percent to an annual rate of 620,000 as the median price climbed to $241,100. In the Midwest, transactions fell 7.1 percent to a pace of 1.04 million, while the median price was up more than 7 percent to $140,300.
Sales were down 3.5 percent in the South to an annual level of 1.95 million, with the median price coming up nearly 10 percent to $161,500. Sales in the West dropped 7.3 percent to a rate of 1.01 million; the median price there was up 14.6 percent to $273,500.
Nationally, NAR puts the median existing-home price at $188,900 last month; the median price for just single-family existing homes was the same.

Increased Home Listings Signal Positive 2014

Author: Colin Robins February 20, 2014 

Realtor.com released Thursday its National Housing Trend Report for January. Despite severe weather conditions, the report notes positive trends in the number of listings and median list prices of homes.
The number of listings rose to 3.1 percent from January, 2013, and the median list price of homes is up 8.3 percent year-over-year to $195,000.
"In January 2013, just 8 markets registered increases in inventory. This January, 83 markets (58 percent) of the 143 markets tracked by realtor.com showed increases in inventory, year-over-year," the report said.
The median age of inventory is unchanged at 115 days, indicating a potential shift to a more stable market in 2014.
"January's start compared to year-ago levels is an encouraging sign of sellers' interest, particularly given the adverse conditions brought on by the polar vortex," said Errol Samuelson, president of realtor.com.
"We saw the tight-supply market of last fall carry all the way into November—later than is typically expected—and this early rise in inventory is a welcome trend. The sustained median list price growth supports the gains we saw last year, and sellers are responding with confidence in that consistency," Samuelson said.
The National Association of Realtors (NAR) projects home prices to rise by 5 to 6 percent, in 2014. Job growth and pent-up demand are cited as motivating factors of the positive outlook from NAR.

January Storms Push Home Sales Down

Author: Krista Franks-Brock February 19, 2014 

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Winter storms in many parts of the country caused delays in appraisals and closings, leading January home sales to plummet 26.9 percent over the month, according to the RE/MAX National Housing Report for January. Meanwhile, tight inventory continues to drive up home prices, and homes continue to fly off the market rather quickly.

While home sales were down nearly 27 percent over the month, they were down 7.1 percent from January last year, according to the RE/MAX report, which includes data from 52 metros across the nation.

"We usually expect to see fewer home sales in the winter months, but January experienced particularly severe storms in large parts of the country, which disrupted appraisals, inspections and closings," said Margaret Kelly, CEO of RE/MAX.

She added, however, that "the real story for home sales in 2014 will begin to unfold in the coming spring and summer months."

The median home price declined over the month – falling 6.3 percent to $173,475. However, January's median price continued a 24-month trend of year-over-year increases, rising 11.6 percent since January 2013. Forty-five of the 52 markets observed reported year-over-year home price gains in January.

The year-over-year rise in home prices is a reflection of the tight inventory that has persisted into this year, according to RE/MAX. As of January, the market holds 5.3 months' supply of homes, which is lower than the inventory reported a month ago and a year ago.

A few markets are experiencing inventories far below the national average. RE/MAX found the lowest inventories in Denver, Colorado (1.1 month); San Francisco, California (1.4 months); Los Angeles, California (2.5 months); Boston, Massachusetts (2.7 months); San Diego, California (2.7 months); Houston, Texas (2.7 months); and Seattle, Washington (2.7 months).

Metros with the greatest yearly home price gains in January include: Detroit, Michigan (35.2 percent); Atlanta, Georgia (28.6 percent); Las Vegas, Nevada (23.5 percent); San Francisco, California (22.3 percent); Los Angeles, California (20.2 percent); and Miami, Florida (18.7 percent).

For homes sold in January, the average number of days on market was 75. "The low Days on Market average is associated with continued high demand and a reduced inventory of homes for sale," according to RE/MAX.

Zillow Marks Upward Trend in Mortgage Rates

Author: Colin Robins February 18, 2014 

Zilllow Mortgage Marketplace, a lending marketplace operated by the home listing website Zillow, announced new mortgage rates Tuesday. Currently, the mortgage rate for a 30-year fixed mortgage is 4.18 percent, according to the release.
The rate hovered between 4.17 and 4.21 percent before spiking on Wednesday to 4.27 percent. Mortgage rates eventually came down, dropping to the reported 4.18 percent on Thursday.
The 4.18 percent mortgage rate reported by Zillow is an increase from previous week's rate of 4.14 percent.
"Last week, rates rose briefly when comments by Janet Yellen, the new Federal Reserve Chair, ended speculation that the Fed might delay the winding down of its stimulus program due to recent weak economic data," said Erin Lantz, director of mortgages at Zillow. "During this holiday-shortened week with limited economic data scheduled for release, we expect rates will continue to follow the gradual upward path of the past two weeks."
The rate for a 15-year fixed home loan is currently 3.14 percent, while the rate for a 5/1 adjustable-rate mortgage (ARM) is 2.71 percent.

December Existing-Home Sales Rise, 2013 

Strongest in Seven Years

Media Contact: Walter Molony 

WASHINGTON (January 23, 2014) – Existing-home sales edged up in December, sales for all of 2013 were the highest since 2006, and median prices maintained strong growth, according to the National Association of Realtors®.

Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 1.0 percent to a seasonally adjusted annual rate of 4.87 million in December from a downwardly revised 4.82 million in November, but are 0.6 percent below the 4.90 million-unit level in December 2012.

For all of 2013, there were 5.09 million sales, which is 9.1 percent higher than 2012. It was the strongest performance since 2006 when sales reached an unsustainably high 6.48 million at the close of the housing boom.

Lawrence Yun, NAR chief economist, said housing has experienced a healthy recovery over the past two years. “Existing-home sales have risen nearly 20 percent since 2011, with job growth, record low mortgage interest rates and a large pent-up demand driving the market,” he said. “We lost some momentum toward the end of 2013 from disappointing job growth and limited inventory, but we ended with a year that was close to normal given the size of our population.”

The national median existing-home price for all of 2013 was $197,100, which is 11.5 percent above the 2012 median of $176,800, and was the strongest gain since 2005 when it rose 12.4 percent.

The median existing-home price for all housing types in December was $198,000, up 9.9 percent from December 2012. Distressed homes – foreclosures and short sales – accounted for 14 percent of December sales, unchanged from November; they were 24 percent in December 2012. The shrinking share of distressed sales accounts for some of the price growth.

Ten percent of December sales were foreclosures, and 4 percent were short sales. Foreclosures sold for an average discount of 18 percent below market value in December, while short sales were discounted 13 percent.

Total housing inventory at the end of December fell 9.3 percent to 1.86 million existing homes available for sale, which represents a 4.6-month supply at the current sales pace, down from 5.1 months in November. Unsold inventory is 1.6 percent above a year ago, when there was a 4.5-month supply.

The median time on market for all homes was 72 days in December, up sharply from 56 days in November, but slightly below the 73 days on market in December 2012. Adverse weather reportedly delayed closings in many areas. Twenty-eight percent of homes sold in December were on the market for less than a month, down from 35 percent in November, which appears to be a weather impact.

Short sales were on the market for a median of 122 days in December, while foreclosures typically sold in 67 days and non-distressed homes took 70 days.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 4.46 percent in December from 4.26 percent in November; the rate was 3.35 percent in December 2012.

NAR President Steve Brown, co-owner of Irongate, Inc., Realtors® in Dayton, Ohio, said that with jobs expected to improve this year, sales should hold even despite rising home prices and higher mortgage interest rates. “The only factors holding us back from a stronger recovery are the ongoing issues of restrictive mortgage credit and constrained inventory,” he said. “With strict new mortgage rules in place, we will be monitoring the lending environment to ensure that financially qualified buyers can access the credit they need to purchase a home.”

First-time buyers accounted for 27 percent of purchases in December, down from 28 percent in November and 30 percent in December 2012.

All-cash sales comprised 32 percent of transactions in December, unchanged from November; they were 29 percent in December 2012. Individual investors, who account for many cash sales, purchased 21 percent of homes in December, up from 19 percent in November, but are unchanged from December 2012.

Single-family home sales rose 1.9 percent to a seasonally adjusted annual rate of 4.30 million in December from 4.22 million in November, but are 0.7 percent below the 4.33 million-unit pace in December 2012. The median existing single-family home price was $197,900 in December, up 9.8 percent from a year ago.

Existing condominium and co-op sales fell 5.0 percent to an annual rate of 570,000 units in December from 600,000 units in November, and are unchanged a year ago. The median existing condo price was $198,600 in December, which is 10.9 percent above December 2012.

Regionally, existing-home sales in the Northeast slipped 1.5 percent to an annual rate of 640,000 in December, but are 3.2 percent higher than December 2012. The median price in the Northeast was $239,300, up 3.6 percent from a year ago.

Existing-home sales in the Midwest fell 4.3 percent in December to a pace of 1.11 million, and are 0.9 percent below a year ago. The median price in the Midwest was $150,700, which is 7.0 percent higher than December 2012.

In the South, existing-home sales increased 3.0 percent to an annual level of 2.03 million in December, and are 4.6 percent above December 2012. The median price in the South was $173,200, up 8.9 percent from a year ago.

Existing-home sales in the West rose 4.8 percent to a pace of 1.09 million in December, but are 10.7 percent below a year ago. Inventory is tightest in the West, which is holding down sales in many markets, and multiple bidding is causing it to experience the strongest price gains in the U.S. The median price in the West was $285,000, up 16.0 percent from December 2012.