Talking about the latest UofM Consumer Survey, what will affect the housing market in 2017, growth in the Southeast and much more…
From the UofM Survey of Consumers:
Consumer confidence retreated from the decade-peak recorded in January, with the decline centered in the Expectations Index. To be sure, confidence remains quite favorable, with only five higher readings in the past decade. Importantly, the data do not reflect any closing of the partisan divide.
Good news that despite the decrease from last month, confidence remains strong. Looking at the YoY improvements, I am very optimistic about 2017. The only thing that worries me is what happens in D.C. at this point.
Increasing mortgage rates and their impact on affordability will be the most significant force driving the 2017 housing market, according to more than 100 housing experts and economists in the latest Zillow Home Price Expectations Survey. More than half of panelists selected rising mortgage rates and their impact on affordability as the factors would have the greatest impact on housing in 2017.
Coming in as the next factor, was low inventory and shifting demographics. We are all well aware that inventory is tight in many areas and price ranges.
They are thinking that millennials buying more homes and the changing needs of aging Baby Boomers will also affect the housing market. It is hard to say whether or not either of these this will have a big impact on housing.
Due to rapid growth, the Southeast is emerging as an economic powerhouse with a diversifying base.
With two international gateway markets in Atlanta and Miami—together accounting for more than 50 percent of the region’s international commercial real estate investment—and strong growth and educated workforces in smaller cities such as Charlotte, Tampa and Nashville, the Southeast region would form the sixth largest country in the world with a growth rate that would exceed any in the top five.
With Anderson sitting almost directly between Atlanta and Charlotte, we should see excellent growth in the coming years. This should help to keep property values increasing.
The surge in home values is good news for homeowners looking to tap the equity in their homes to pay down debt or make big purchases, but consumer advocates worry that it may be setting the stage for a spike in loan defaults. Consumers have plenty of reasons to tap into their home equity, such as paying off credit card debt or financing long-delayed home-improvement projects. The problem is that a cash-out refi is much riskier than a credit card loan.
Using our homes as ATMs is just one of the painful lessons from the housing market crash. I hope we are not going to repeat the mistakes of the not too distant past.
There’s a widening gap between real estate listings and searches that underscores the difficulty homebuyers face in finding the right house at the right price, according to Trulia’s latest research published Wednesday.
Here’s the crux of the mismatch: Most buyers were looking for starter and trade-up homes in Q4, but most listings they saw were for premium-priced homes.
Yet another article about the tight inventory. The best thing that a truly serious home buyer can do is find an experienced local buyers agent. Relying on websites such as Trulia or Zillow means you find out about homes too late.
Americans Moving at Record-Low Rates
The U.S. experienced its lowest ever mover rate between 2015 and 2016, according to the U.S. Census Bureau’s recent population survey. That’s the lowest one-year mover rate ever reported by the bureau, which began tracking migration in 1948. At that time, moving was more common, as demonstrated by an annual mover rate of 20.2 percent.
Despite some of the more positive news I shared earlier, the decrease in people moving is disturbing. As is the decrease in home ownership. I fear we are seeing the beginning of a dramatic shift in society in many aspects. Home ownership, jobs being automated, income and wealth inequality and more.
Today’s ugly but honest truth:
In the U.S., between 1978 and 2015, the income share of the bottom 50% fell to 12% from 20%. Total real income for that group fell 1% during that time period.
This could lead to civil unrest if the bottom 50% gets tired of seeing all the gains in wealth and income going to the rich. Remember, those that forget the past are doomed to repeat it.
That’s all for today!