New Home Sales Are Still Climbing

 The New Year started off right when it came to new home sales as they rose 7.2% from December 2022 according to the US Census Bureau and the Department of Housing and Urban Development. This makes the seasonally adjusted annual pace at 670,000 homes. This is great news but is still down 19.4% on a year-over-year basis.

“January marked a surge of people signing contracts to buy new homes. The increase in contract signings can be attributed to a decline in mortgage rates in January after a run-up in rates in October and November. Rates have bounced higher since January, which likely is acting as a drag on new home sales in the meantime,” according to Holden Lewis with NerdWallet.

“The backlog of new construction homes continues to emerge into the market just in time for the spring shopping season. Many home builders are offering incentives to buyers sweetening the deal just enough to bump sales from the month prior,” said Nicole Bachaud, Zillow’s senior economist.

This caused a price drop which landed the median new home sales price to drop to $427,000 in January 2023. As far as the different regions, the sales price on a month-over-month basis was down 25,000 homes in the Northeast, 67,000 homes in the Midwest and 127,000 homes in the West. The South had jumped 17.1% to 451,000 on a monthly basis and the West was the largest drop at 46.9%

“There is still a large chunk of new construction homes currently under construction, and when those homes hit the market, especially over the next few months, we will see spring home buyers – those who can afford the higher new construction price tags- having more options and opportunities to break into homeownership,” says Bachaud.

Click Here For the Source of the Information.

The Market Is Seeing a Decline in Home Prices

 For two years we have seen a boom in the housing market when it comes to price appreciation. We have finally seen the peak, as the prices are now declining.

Prices will keep declining in the near future but will not drop as far as they did during the recession. From the peak in 2006 all the way through to 2012 there was a 27% decrease in home prices.

“It was different in 2008, 2009 because that drop in prices was because of a push from sellers,” said Jeff Tucker, senior economist at Zillow. “Because of foreclosures and short sales there were a lot of extremely motivated sellers who were willing to take a loss on their homes.”

“I would be surprised to see prices anywhere drop below where they were in 2019,” said Tucker. “There was some overheating in the housing market in 2021 through this spring that pushed prices higher than what the fundamentals would support. Now they are coming down.”

With the soaring mortgage rates along with elevated home prices and slow increases in wages, home buying is not in most potential buyers’ future. According to Goldman Sachs we should see a decline of around 5% to 10% from the peak, Wells Fargo predicts a 5.5% decrease. This means the median home price will fall to $364,000.

“The primary driver behind the housing market correction thus far has been sharply higher mortgage rates,” the Wells Fargo researchers wrote. “If our forecast for Fed rate cuts is realized, mortgage rates are likely to fall slightly just as cooling inflation pressures boost real income growth. A modest improvement in sales activity should then follow, which will reignite home price appreciation heading into 2024.”

Click Here For the Source of the Information.

New Home Sales Are Bouncing Back This Fall

New Home Sales Are Bouncing Back This Fall  1

 Even with the rising home prices and mortgage rates, new home sales have bounced back.  The US Department of Housing and Urban Development along with the US Census Bureau reports that the sales of newly constructed homes have risen 28.8% from this summer.  It was reported that 685,000 new homes were sold in August 2022 which was up from July’s report of 532,000 and down slightly from a year ago with 686,000 newly constructed homes.

The median home price for a new home did slip to $436,800 from $439,400 the previous month.  Prospective buyers are not happy with the huge stretch in their budget, the long construction wait times and the rising mortgage rates.  The average interest rate for a 30-year fixed rate did dip just below 5% in August but is still high compared to the 3.22% we saw in January.

“New homes blew through estimates for August, but it’s likely an aberration caused by a dip in mortgage rates earlier in the summer. The good news is price increases for new homes continue to cool which points to a more reasonably-priced housing market starting as soon as next year,” said Robert Frick, corporate economist at Navy Federal Credit Union.

Click Here For the Source of the Information.

Post settings Labels home prices, prices, price, Urban, US Census, houses Published on 10/29/22 8:00 PM Permalink Location Options Creating new post...

Today’s Home Prices in the Current Market

Whether it’s your home or a commercial building, Fond du Lac Natural Stone has the right natural building stone to fit your vision. Our stone holds a reputation of quality and durability with highly sought after expressive beauty. Our statewide quarry sites are environmentally focused and offer a unique array of colors and textures – only found in Wisconsin. Fond du Lac is a classic grey tone castle rock style real stone veneer. The pieces are cut from

 There has been a lot of activity in the housing market when it comes to home prices. It seems that there is a trend of home price appreciation but with this same bit of news comes the fact the sellers are still reducing the price of their homes. So what is really happening with today’s home prices?

Industry leaders explain the differences between the terms used by the industry. Appreciation means when the home price increases, depreciation reflects a decrease in the home price and deceleration is when home prices continue to appreciate but at a slower and moderate pace. Today’s housing market industry leaders are seeing a deceleration. The home prices are still appreciating but not at a record-breaking pace as they have been in the past two years.

According to CoreLogic, in 2021 home prices appreciated by an average of 15% nationwide and at the beginning of 2022 appreciation was at 20%. Currently, it is predicted that prices will increase on average10% to 11%. On a year-over-year basis, home prices appreciated between 19% -20% from January to March of this year. The last few months, home prices have decelerated to 18%. They are still climbing but at a slower pace than compared to the same time last year.

“Annual home price growth dropped by nearly two percentage points….- the greatest single-moth slowdown on record since at least the early 1970s… While June’s slowdown was record-breaking, home price growth would need to decelerate at this pace for six more months to drive annual appreciation back to 5%, a rate more in line with long-run averages,” says Black Knight’s Monthly Mortgage Monitor.

So today’s home prices are not falling or depreciating, but decelerating or moderating nationwide. There are some pocket markets that are seeing declines because they are overheated. When looking at the country as a whole, prices will not depreciate or fall but will keep appreciating.

When you are in the market for a home and want to know about what the current market is doing, the best way to go about this is to hire a trusted real estate profession. A real estate professional can help you navigate the current market making sure you make the best decisions when it comes to your home.

Click Here For the Source of the Information.

natural Wisconsin quarried dolomitic limestone known for its durability. The neutral colored stone and large pieces lend themselves to large scale projects as this stately stone does not look busy on large walls. Each individual piece of stone that makes up Fond du Lac has been split with a hydraulic press on all four sides to create the clean rectangles. The split or cracked edges retain a rustic or natural element to the finished look as opposed to our sawed height or dimensional style stone.

A Golden Opportunity For Sellers This Spring

 The current housing market is booming for sellers. Timing is crucial with the sale of your current home and the purchase of a new one. As a seller, you will want to get the best of both worlds. Listed are four reasons why this is the best time for you to sell your home.

1. The Number of Homes on the Market Is Still Low

The past year and currently the housing inventory is low, low, low. This is great news if you are a home seller. Buyers are fighting for what little is currently on the market. Buyers are waiting for homes to go on the market in order to get to them first. Your home will be the center of attention when it comes on the market. Realtors will price your home according to the market value and will get your home sold quickly.

2. Your Equity Is Growing in Record Amounts

CoreLogic's Homeowner Equity Insight reports that current  homeowners are sitting on record amounts of equity thanks to recent home price appreciation. The report finds that the average homeowner has gained $55,300 in equity over the past year. With this amount of equity, you will be able to make a move in this hot market.

3. Mortgage Rates Are Increasing

While mortgage rates have been slightly rising this year, they are still lower than they have been. Freddie Mac shows that the current 30-year fixed mortgage rate is at 3.85%. “For homebuyers, we believe that borrowing costs will likely rise with the increase in mortgage rates,” according to Doug Duncan, Senior Vice President and Chief Economist at Fannie Mae.

4. Home Prices Are Climbing Too

With the demand from buyers and lack of inventory, home prices are skyrocketing. It is predicted they will keep rising if this imbalance continues. If you are thinking of selling, now is the time to sell. Get ahead of the curve by selling and purchasing now before the prices climb even higher.

Remember if you are thinking of selling, contact your local Realtor. A local Realtor can help you price your home right and get it sold in no time.

Click Here For the Source of the Information.

The 2022 Housing Market and How Interest Rates Will Change It

 For the past few years, the housing market has seen historically low-interest rates but this might change. Sources report that we will be faced with rising interest rates throughout 2022. Here are some tips that professionals in the industry look at when determining the change housing market.

This year the market is starting to slow down on refinancing and pick back up with purchasing housing. The 30-year loan average interest rate jumped from 3.5% to 3.64% in just two weeks int the beginning of the year. Home prices also increased close to 8% due to the fear rates will start to rise.

Fortunately, we no longer have stay-at-home orders and the unemployment rates are down 2.8% from this time last year. More homes are being built so the low inventory problem is resolving. Data shows that there is a 34% increase in new homes being built across the country. Job security and more inventory should encourage hopeful homebuyers.

The shift in remove work has also changed what homebuyers deem important in a home. As of September 2021, 45% of full-time employees worked remotely. More people are looking for a single-family home with more bedrooms and a finished basement.

The 2022 market is looking good. Just because interest rates are rising, doesn't mean now is not a good time to purchase a home. There are many factors that come into play that help balance the housing market event with high home prices and rising interest rates.

Click Here For the Source of the Information.

Will the Fall Bring a Cooler Housing Market?

The National Association of Realtors says the housing market is hinting at cooling off this fall. This doesn't mean the market still will not be viable, it just will not be as hot as we have seen in the first half of 2021.

"There has been a turn in the market from superheated to still very strong," said Lawrence Yun, NAR's chief economist.

High home prices have detoured many from purchasing but this scenario is improving a little according to Yun. Unsold homes increased 7.3% from June 2021 to July 2021 and unsold inventory is up at a 2.6 month supply at the current sales pace. There is a balanced market currently at around a 6 month supply of homes.

"We see inventory beginning to tick up, which will lessen the intensity of multiple offers," said Yun. "Much of the home sales growth is still occurring in the upper-end markets, while the mid-to lower-tier areas aren't seeing as much growth because there are still too few starter homes available."

As of July 2021, the median home price for existing homes was up 17.8% from a year ago to $359,900. The year-over-year gains have increased for the past 113 months in a row. Cash purchases have remained strong with all-cash sales making up 23% of home sale transactions in July. This was up 16% from July 2020. Low mortgage rates are still helping the current market and homebuyers.

"Despite the ongoing challenges of today's housing market, including limited inventory, lightning-fast home sales and competition from investors with deep pockets, many buyers are finding ways to persist until they find and close on a home," said Danielle Hale, Realtor.com chief economist.

Click Here for the Source of the Information.

2021 Will See Another 7% Surge In US Home Prices

 

Home prices are rising the fastest we have seen in 15 years. According to Goldman Sachs, US home prices will rise another 7% in 2021. In fact, Goldman upgraded its 2021 house-price appreciation forecast to 6.8% from 4.7% previously.

January 2021 saw the fastest rate since 2006 stemming from the low-interest rates and low inventory. The S&P CoreLogic Case-Shriller house price index increased 11.2% in January 2021 year on year. James Orlando, senior economist at TD Economics gives credit to the pandemic. Since spending more time at home during the pandemic, people want to improve on their living situations. Now more than ever, we are seeing more buyers entering the market.

“Underwhelming supply appears to be the primary driver of continued high levels of house price appreciation,” noted Apurva Gundaria and Marty Young who lead Goldman Sachs.

“In our view, this supply crunch is driving another leg up in home prices,” the analysts said. “Though mortgage rates have backed up in recent weeks, they still remain below their pre-pandemic tights and the backdrop for housing demand remains supportive.”

If you are in the market for a new home, now is the time to take advantage of the low-interest rates. Be sure to purchase through a local sales agent who can help you navigate this aggressive current market.

Click Here For the Source of the Information.

Home Prices Soaring the Fastest Seen In Over Six Years

 Cnbc.com reports that U.S. home prices rose the most the country has seen in more than six years October 2020. The price jump is stemmed from a pandemic-fueled buying rush that drives the number of available properties for sale to record lows.

The S&P CoreLogic Case-Shiller 20-city home price index showed that home prices jumped 7.9% in October 2020 from the same time in October 2019. The strong demand for housing and limited housing inventory caused the largest annual increase seen since June 2014.

As has been the case for the last 10 months the pandemic caused a great deal of Americans to work from home. People are not going out to eat, or socializing outside of the home. This has put more value on the size and design of the home. Many Americans are now looking for bigger rooms or more rooms such as a home office or space to workout.

The 19 cities that were mentioned in the report all had larger year-over-year price spikes in October 2020. Phoenix had the largest gain by 12.7% in October, this was the 17th straight month of gains for the city.

“The data from the last several months are consistent with the view that COVID has encouraged potential buyers to move from urban apartments to suburban homes,” said Craig Lazzara, Managing Director at S&P Dow Jones Indices.

Click Here For the Source of the Information.