Discussing the latest Case-Shiller Home Price Indices, foreclosures, home sales, good news on the economy and manufacturing, important court case involving MLS access, how consumers feel about buying or selling a home plus much more
Home Prices Increase 6.2%
In yesterday’s post, I shared the latest from Clear Capital and the FHFA on home prices. But today, I share the latest from the biggest report on home prices: Case-Shiller!
The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index reported a 6.2% annual gain in January. The 10-City Composite annual increase came in at 6.0%. The 20-City Composite posted a 6.4% year-over-year gain.
David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices, said:
The home price surge continues. Since the market bottom in December 2012, the S&P Corelogic Case-Shiller National Home Price index has climbed at a 4.7% real –inflation adjusted –annual rate. That is twice the rate of economic growth as measured by the GDP. While price gains vary from city to city, there are few, if any, really weak spots.
Two factors supporting price increases are the low inventory of homes for sale and the low vacancy rate among owner-occupied housing. The current months-supply — how many months at the current sales rate would be needed to absorb homes currently for sale — is 3.4; the average since 2000 is 6.0 months, and the high in July 2010 was 11.9. Currently, the homeowner vacancy rate is 1.6% compared to an average of 2.1% since 2000; it peaked in 2010 at 2.7%. Despite limited supplies, rising prices, and higher mortgage rates, affordability is not a concern. Affordability measures published by the National Association of Realtors show that a family with a median income could comfortably afford a mortgage for a median priced home.
I am glad that Blitzer pointed out that homes are STILL affordable. Remember this is a national report and does not reflect what is happening in every local market.
For example, if we look at Anderson County, in January 2018 the average price of sold homes was $181,638 compared to the average of $169,330 in January 2017. This is a 7.3% increase!
But even this does not tell you everything you need to know..
That is for all of the homes sold during one month in ALL of Anderson County. This does not tell you what homes similar to your have sold for.
Or what similar homes are on the market right now.
Or what homes like yours were on the market but were withdrawn after they failed to sell.
If you have questions about selling a home in Anderson County SC, please Contact Me!
Over 4 Million Foreclosures Prevented
The Federal Housing Finance Agency (FHFA) today released its fourth quarter Foreclosure Prevention Report, which shows that Fannie Mae and Freddie Mac (the Enterprises) completed 67,569 foreclosure prevention actions in the fourth quarter of 2017, bringing the total number of homeowners helped to 4,040,258 since the start of the conservatorships in September 2008. Of these actions, 3,357,722 have helped troubled homeowners stay in their homes, including 2,150,946 permanent loan modifications.
The percentage of 60+ days delinquent loans rose from 1.32 percent to 1.65 percent at the end of the fourth quarter primarily as result of the impact of Hurricanes Harvey, Irma and Maria in Texas, Florida and Puerto Rico. A variety of mortgage relief options are available for those affected by natural disasters, including these hurricanes.
Great news but we must work to ensure the mistakes of the past are not repeated.
Home Sales Continue to Improve
The national home purchase market continued its rally in 2017:Q4. Sales transactions increased 5.4% in the fourth quarter compared to a year ago, marking the 13th consecutive quarter of such increases.
This rally came despite a 6.7% jump in national house prices during that period.
More great news for the national housing market! While home prices are increasing and inventory is low in many areas of the country, it appears that things are not that bad…
While it could always be better, remember it could be much worse.
Chicago Fed Says Economy Picked Up
Led by improvements in production-related indicators, the Chicago Fed National Activity Index (CFNAI) rose to +0.88 in February from +0.02 in January. All four broad categories of indicators that make up the index increased from January, and three of the four categories made positive contributions to the index in February. The index’s three-month moving average, CFNAI-MA3, increased to +0.37 in February from +0.16 in January.
Excellent news for the economy! Which will give the Fed more motivation to continue raising their benchmark rate…
Court Rules REALTOR®-Owned MLS Can Limit Access
From Realtor Magazine:
A federal court last week ruled there’s nothing anti-competitive about a REALTOR® association–owned MLS requiring association membership as a condition of MLS access. The decision was a big win for REALTORS®, says Ralph Holmen, deputy general counsel at the National Association of REALTORS®.
“This decision upholds the notion that it’s reasonable to limit MLS participation to members of the association that own and operate the MLS,” Holmen says. “It’s a membership benefit, and it’s OK to require membership to enjoy that membership benefit.”
I am glad to see this as some people think they should be allowed to use the MLS like a member without paying for it. You can see the properties for sale on Realtor websites such as this one and if a home sells, you will be able to find out how much by checking with the county.
However, there is a difference between having that information and having the experience to correctly interpret the information.
Good News About Manufacturing
The pace of durable goods shipments from American factory floors exceeded inventory growth for a second month in February, indicating production will stay strong. The government’s durable goods report on Friday showed the inventory-to-sales ratio slipped to 1.64 months, the lowest in more than three years. Recent data from the Federal Reserve show output at the nation’s factories advanced 1.2 percent in February, the most in four months.
Short but sweet! This means that factories should see plenty of demand in the coming months!
Remember, we need a strong economy for a healthy housing market and a healthy housing market for a strong economy!
68% Think Now Is a Good Time to Buy a Home
Highlights from NAR’s latest Home Survey:
- In the first quarter of 2018, 68% believe that now is a good time to buy a home
- Only 30% believe that now is not a good time to buy a home
- 74% of people believe that now is a good time to sell a home
- 26% believe that now is not a good time to sell a home
- 63% believe that prices have gone up within their communities in the last 12 months
- 42% believe that prices will stay the same in their communities in the next six months
- 53% believe prices will increase in the next six months
- 60% believe the U.S. economy is improving
Interesting results, especially that 42% think home prices will stay the same. The home price projections I have shared recently all show home prices increasing but at slower pace than in the past several years.
The key thing is IF buying a home makes sense for you, I suggest talking to a lender ASAP. Increasing home prices and mortgage rates make waiting an expensive proposition!
The Shortage of Affordable Rental Homes
From the National Low Income Housing Coalition:
One of the biggest barriers to economic stability for families in the United States struggling to make ends meet is the severe shortage of affordable rental homes. The housing crisis is most severe for extremely low income renters, whose household incomes are at or below the poverty level or 30% of their area median income. Facing a shortage of more than 7.2 million affordable and available rental homes, extremely low income households account for nearly 73% of the nation’s severely cost-burdened renters, who spend more than half of their income on housing.
If America is the land of opportunity and the American Dream is owning a home, we need to somehow address the shortage of affordable rental homes.
If people are paying too much for their housing, it means they will never be able to get ahead in life. This means the possibility of owning a home is very limited.
Why the Middle Class Matters
There was a time when many regarded being in the middle of the distribution – socially, politically, and in the business world – as a favorable, stabilizing, and desirable outcome. From the anchoring role in society of the middle class to the agility and resilience of mid-size firms, the middle was seen as consistent with both individual and collective wellbeing. Yet, in recent years, the middle has become less stable, less predictable, and more elusive, and its primacy – in economics, politics, business, asset management, and even sports – has become increasingly unsustainable.
Driven by structural changes, as well as lagging business and policy responses, the middle has been eroded – or is at risk – almost everywhere you look. Should this trend continue – which is subject to some debate – the implications would be far-reaching.
Another hard to solve problem that must be solved if we want a better tomorrow for future generations of Americans. What is actually being done to make the lives of the average American better by our elected officials?
Sure they talk and make promises, but when all is said and done, do they ever actually do anything to help the average person? The truth is YOU must work to make your life better and you cannot rely upon the government to help.
It may be tough at times but you must keep on working to make your life better. Every day, do what you can to reach your goals. Save every penny you can and don’t spend money on useless crap you don’t need.
That is all for today! Be sure to hit the share buttons and subscribe so you never miss another post!