View South Carolina Real Estate

  • Topics
    • Real Estate News
    • Market Reports
    • Selling
    • Buying
    • Around the Home
    • One Man Struggles
  • Silver Star Listings
  • About / Contact
    • About Mark Brian
    • Contact

You are here: Home / News / Ugly But Honest News 12-1-2017

Ugly But Honest News 12-1-2017

real estate housing economic news December 1 2017

Discussing home prices and why they are increasing, financing for residential development, consumer confidence, conforming loan limits and more!

 

Case-Shiller Reports Home Prices Continue to Increase

 

From S&P Dow Jones:

 

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 6.2% annual gain in September, up from 5.9% in the previous month. The 10-City Composite annual increase came in at 5.7%, up from 5.2% the previous month. The 20-City Composite posted a 6.2% year-over-year gain, up from 5.8% the previous month.

 

David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices said:

 

Most economic indicators suggest that home prices can see further gains. Rental rates and home prices are climbing, the rent-to-buy ratio remains stable, the average rate on a 30-year mortgage is still under 4%, and at a 3.8-month supply, the inventory of homes for sale is still low. The overall economy is growing with the unemployment rate at 4.1%, inflation at 2% and wages rising at 3% or more. One dark cloud for housing is affordability – rising prices mean that some people will be squeezed out of the market.

 

First, while the Case-Shiller Home Price Index is one of the big boys in tracking home prices, it is still a national report. Home buyers and sellers must rely upon local real estate market expertise when making decisions…

 

Looking at Anderson County SC:

 

September 2017 September 2016
Average Home Price $162,937 $158,012

Median Home Price

$142,950 $140,000

 

 

I must caution you that these prices are for all homes and only shows the general direction of homes prices in Anderson County. More in depth analysis is needed to determine the market value for a specific home.

 

Blitzer said we can expect home prices to continue increasing and that this could squeeze some people out of the market. I think we should see home prices continue increasing both nationally and right here in the Anderson SC area.

 

 

AD&C Financing Conditions Ease At A Slower Pace

 

From Eye On Housing:

 

Builders and developers responding to NAHB’s AD&C Financing Survey continue to report easing credit conditions for acquisition, development, and single-family construction loans. In the third quarter of 2017, the overall net tightening index based on the AD&C survey was -7.7, indicating net easing. All major categories of AD&C financing also recorded net easing, with lending standards on land acquisition loans being easier than standards on land development loans, and net lending standards on single-family construction loans easing the least.

 

Excellent news considering the low inventory of homes for sale in many areas. However, the factors for a healthy housing market and economy go far beyond just an increase in AD&C financing.

 

 

Only 35% Think Country Headed in Right Direction

 

From Rasmussen:

 

Thirty-five percent (35%) of Likely U.S. Voters now think the country is heading in the right direction, according to a new Rasmussen Reports national telephone and online survey for the Thanksgiving-shortened week ending November 21.

 

This is from last week and probably will change. With the ongoing tax reform and today’s news about Trump’s former national security advisor pleading guilty for lying to the FBI, we can expect this to decrease…

 

I read that the stock market started going down and gold started increasing with the news about Flynn.

 

However, none of this changes the fact that people always have and always will need a place to live. Whether or not people will have the confidence to buy a home with this kind of crap happening is the big question…

 

 

Majority of Millennials Want a Third Political Party

 

From NBC News:

 

A strong majority of millennials — 71 percent — say the Republican and Democratic parties do such a poor job of representing the American people that a third major party is needed. Sixty-three percent of millennials disapprove of the way President Donald Trump is handling his job as president. But millennials also hold a variety of political institutions in poor regard, and 65 percent think the country is on the wrong track overall.

 

I sense a recurring theme here…

 

 

Consumer Confidence at 17 Year High

 

Speaking of consumer confidence, Lynn Franco, Director of Economic Indicators at The Conference Board just said:

 

Consumer confidence increased for a fifth consecutive month and remains at a 17-year high (Nov. 2000, 132.6). Consumers’ assessment of current conditions improved moderately, while their expectations regarding the short-term outlook improved more so, driven primarily by optimism of further improvements in the labor market. Consumers are entering the holiday season in very high spirits and foresee the economy expanding at a healthy pace into the early months of 2018.

 

Somewhat puzzling that so many people think the country is headed in the wrong the direction yet consumer confidence is high.

 

 

Conforming Loan Limits to Increase in 2018

 

From FHFA:

 

The Federal Housing Finance Agency (FHFA) today announced the maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2018. In most of the U.S., the 2018 maximum conforming loan limit for one-unit properties will be $453,100, an increase from $424,100 in 2017.

 

The maximum conforming loan limit for Anderson County will be $453,100. You can find an interactive map showing the loan limits for the entire US here

 

 

Pending Home Sales Increase

 

NAR just reported that pending home sales in October increased from the level in September. However, pending home sales are still down compared to one year ago. The increase was mainly due to the increase in the South that was due to bouncing back after the hurricanes.

 

Again, we heard that tight inventory is an issue. If someone was thinking about selling their home, it is a seller’s market in many areas. I strongly suggest reaching out to a local Realtor to discuss what is happening in your local market!

 

 

Unsustainable Boom in Home Prices?

 

From Edward Pinto, codirector of the American Enterprise Institute’s Center on Housing Markets and Finance:

 

The home price boom that started in mid-2012 is accelerating, with year-over-year increases now running at 6-7 percent. With prices of entry-level homes increasing 10–11% year-over-year, FTBs are taking on even greater levels of risk to chase this ultimately unsustainable boom in home prices.

 

While we must always remember the painful lesson that home prices can decrease, I am not quite as pessimistic as Pinto. Unless something happens to really screw up the economy, I don’t see home prices falling so much as the rate of appreciation slowing.

 

So why are home prices increasing so rapidly?

 

 

Lack of Inventory and Home Prices

 

The rise in home prices is simply due to the limited inventory. This is just basic supply & demand. If there’s a low supply of something that has strong demand, the prices normally increase.

 

In real estate, if there is 6 month supply of homes for sale, prices will stay stable. When there is less than 6 months of inventory, house values will increase. If there is more than 7 months of inventory, home prices could start to fall. Check out the chart:

 

Impact of Inventory on Home Prices

impact of inventory on home prices chart

 

Based on the NAR Existing Home Sales Report, the monthly supply of houses for sale has been below 6 months for 4 years!

 

Months Supply Inventory End of October

months supply inventory at end of October chart

 

Nationally, we have been firmly in a seller’s market for quite some time. Again, if you are thinking about selling, it is a great time to contact a local Realtor to discuss what is possible. If you have questions about real estate in the Anderson SC area, shoot me an email!

 

Stick a Fork In It!

That is all I have time for today but be sure to check back or subscribe so you never miss another post!

You May Also Like

Ugly But Honest News 10-24-2018 Looking at the latest data on new home sales and prices, Realtor confidence, how long it takes to save a down payment, 2 economic reports and more! ...
Ugly But Honest News 10-20-2018 Looking at this week's reports on mortgage rates, why getting Pre-Approved is one of the first steps to take when buying a home and more! &nb...
Ugly But Honest News 10-19-2018 Looking at the latest NAR Existing Home Sales Report, interesting mortgage statistics, several reports on the economy including another recession pr...
Ugly But Honest News 10-18-2018 Discussing housing starts and building permits, the Fed raises their benchmark rate again, home builder confidence, affordability, higher home price...

About Mark

Not perfect, just awesome. Animal Lover yet Meat Eater, Coffee drinking Heavy Metal Loving Realtor in Anderson South Carolina

Mark Brian Realtor Anderson South Carolina
Mark Brian Anderson SC Realtor South Carolina

Anderson County South Carolina real estate market reports

real estate news

Anderson County South Carolina home selling articles

Anderson County South Carolina home buying articles

Anderson County South Carolina home improvement repair renovation articles

One Man Struggles

 

Latest Posts

Anderson County SC Market Report 2-10-2019 Anderson County South Carolina real estate market report for the week ending 2-10-2019... (more…)
Anderson County SC Market Report 2-3-2019 Anderson County South Carolina real estate market report for the week ending February 3 2019... (more…)
Anderson County SC Market Report 1-27-2019 Anderson County South Carolina real estate market report for the week ending 1-27-2019... (more…)
Anderson County SC Market Report 1-20-2019 Anderson County South Carolina real estate market report for the week ending January 20 2019... (more…)
equal housing opportunity
Realtor
subscribe

Get Notified by Email Of New Posts!

share
contact Mark Brian Realtor Anderson South Carolina
equal housing opportunity
Realtor

We use cookies to and you consent to our cookies if you continue to use our website!

See our Legal Notice and Privacy Policy Copyright 2018 Mark Brian