Here comes a millennial housing boom
The housing market has leaped head first into recovery mode. March’s housing numbers show that the S&P Case-Shiller Index is rising more quickly on an annual basis than it has since 2006, existing-home sales have experienced 12 months of year-over-year price increases and new home sales are 29% higher than they were a year ago.
A new survey by PulteGroup shows that the housing market will continue its upward trend. The study interviewed renters between the ages of 18 and 34 (otherwise known as generation Y or millennials) and found that 65% of respondent’s intentions to buy homes had increased over the past year. 52% of millennials indicated a desire to own and build equity. Read More.
5 housing and mortgage trends to get ready for this spring
Homeowners who endured years of declining home values will discover that the game has changed in their favor.
With low mortgage rates and home prices gaining momentum, an increasing number of buyers are expected to shop for homes this spring. The good news for sellers: The inventory of homes for sale is shrinking, so they have less competition and more control of the situation.
Loan mods: As more distressed homeowners regain equity in coming months, many with high-interest loans will be able to refinance and perhaps cash out some equity. If you fell behind on your mortgage payments, you might get a second chance to modify your loan.
Homebuyers are losing bargaining power as the market shifts in favor of sellers. But home prices remain attractive for the most part, and low mortgage rates should stay on their side for a little longer. Read More.
CoreLogic scoops up Case-Shiller
CoreLogic announced the acquisition of Case-Shiller from Fiserv in conjunction with its first-quarter 2013 earnings report.
The acquisition, which closed on March 20, comes with the rights to publish one of the most well-known home price indices—the S&P/Case-Shiller.
Before the sale, Case-Shiller was owned by Fiserv and published the regarded S&P/Case-Shiller report while maintaining a licensing agreement with S&P, sources tell HousingWire. CoreLogic’s acquisition of Case-Shiller essentially transfers all Fiserv publishing rights and agreements to CoreLogic. Read More.
The great senior sell-off could cause the next housing crisis
Demographers often describe the baby boom generation as if it were an indigestible mammal – maybe a pig, or a rabbit, or a really big rat – slowly moving through the python that is America’s population. As this generation has aged, the baby boom bulge has remade society in its image, first as a massive class of toddlers, later as rabble-rousers in the 1960s, then as solidly middle-class heads of household and, soon, as the largest class of retirees the country has ever seen. Read More.
Senators try to extend access to rural housing programs
Population growth in rural communities has challenged homeownership for countless moderate and low-income families.
And with some of the cities nearing or already outside the parameters to qualify for U.S. Department of Agriculture rural housing programs, lawmakers are stepping in to preserve lending to those areas.
Sen. Tim Johnson, D-SD, and Sen. Pat Roberts, R-KS, are introducing a bill to raise the population cap from 25,000 to 35,000 through 2020.
As part of the bill, lawmakers agreed to grandfather all existing communities in the USDA rural housing programs, allowing them to maintain access to USDA’s Rural Housing Service. Read More.
Student debt stalling housing market
Isaac and Stephanie Adams live in Richmond, Va. and are expecting a baby in June; last year they decided to buy a house. With home prices and mortgage rates both at historic lows, it seemed the perfect time. Unfortunately, student loans stood in their way.
“We were looking at the market going, ‘oh my gosh, the market is awesome right now. We can get some great house that our payments will be, our loan will be great to set us up financially well for our growing family,’ and we just weren’t able to do it, take advantage of that,” Stephanie said.
Between the two of them, the Adams’ student loan debt tops $100,000. They pay $1100 a month for the loans, and that, coupled with the fact that Isaac was working a contract job, was enough to disqualify them from getting a mortgage. Read More.
Freddie Mac shares optimistic outlook for 2013
Freddie Ma
c, one of the key mortgage lenders, has issued its outlook for the real estate market and it is coming up roses. Now every increased percentage point of property value removes a huge amount of risk to their mortgage portfolio, so every bit of positive spin needs to be recognized as slightly self serving, the news is still great. Read More.
Could you be in violation of fair housing laws?
As we all well know, the Fair Housing Act prohibits any type of discrimination from Real Estate Professionals when choosing who to rent their property or unit to in regards to race, gender, sexual orientation, disability, family status or national origin, and in some counties: section 8 voucher status (tenantsunion.org). But what about disparate impact?
Are you setting yourself up for a successful buying season?
Disparate impact is the legal theory that people of certain races and ethnicities are disproportionately represented in the criminal justice system. Read More.
3 projects you should and shouldn’t tackle
Are you trying to sell your home, but you’re worried that the pink tile in the bathroom will turn buyers off? Maybe it’s the shag carpet in your living room that’s got you worried?
Well, it might be time to make some small updates. But be warned: Some remodeling projects could not only be huge money suckers, but they might also fail to add resale value to your home.
When deciding which projects are worth completing, you don’t want to over-invest your time and money. Expensive projects are rarely worth it if your goal is simply to sell the house.
“Beware of projects that could run into delays,” says Ben Bowen, a third-generation landscaper in Portland, OR. “You don’t want to end up in a situation where you have to either put off listing the house or trying to sell it with an unfinished project going on.”
So, which projects are worth it and which aren’t? Here are three renovations to tackle and three to avoid before you put your house on the market. Read More.
Fannie Mae predicts 2 year outlook for housing
Mortgage giant Fannie Mae recently offered some predictions of what the housing market’s “normal” will look like in the next two years.
In its report, “Transition to ‘Normal’?”, Fannie says while the housing market has shown improvement, uncertainty remains over both the economy and the real estate market.
“Our forecast is that 2013 and 2014 will exhibit below-potential economic growth,” according to the white paper. “This is despite the fact that we expect the housing rebound will continue and that the economy will benefit from the gradual increased growth of U.S.-based manufacturing, as well as the expansion of domestic energy production.” Read More.
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