Tag Archives: housing prices

Money Monday: Renters have affordability challenges when buying a home

Renters value homeownership but face affordability challenges when it comes to buying a home, C.A.R. survey finds.

upside-downCurrent renters value homeownership and want to buy a home, but many are encountering affordability and financial obstacles that prevent them from buying, according to the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) “2016 Renter Survey. Making sense of the story:

  • Nearly half of renters (48 percent) plan to buy a home in the future, with 10 percent saying that they plan to buy within a year.
  • For those not planning to buy, an improvement in finances, lower housing prices, and saving enough for a down payment would motivate them to buy now.
  • Of the 28 percent of renters who don’t plan to buy in the future, 50 percent said they can’t afford to buy, 20 percent will not buy because they prefer to rent, 19 percent said they can’t qualify for a mortgage, and 15 percent lack a down payment.
  • Job uncertainty (9 percent), economic uncertainty (12 percent), and housing market uncertainty (6 percent) were among other reasons renters cited for not buying a home.
    Homeownership remains important to renters, with nearly half (45 percent) rating it 8 or higher in importance on a scale of 1-10, with 10 being extremely important. The average was 6.8.
  • Nearly all renters (95 percent) see advantages to homeownership; freedom to do what you want with your home, building equity, and having permanence and stability were the top benefits mentioned by renters.
  • One of the surprising findings of this survey is that more than one in four millennial renters said they plan to purchase a home that will accommodate their parents, and about one in five millennials indicated they plan to pool funds with family members to buy a home.

Read the full story from KPCC: www.scpr.org/news/2016/06/08/61459/homeownership-is-valued-but-remains-expensive-and/

Home sellers are feeling good about real estate prices

Up from the previous year, sellers in 2013 are feeling pretty good about the current level of home prices.

43% of sellers think that real estate prices will move up in a year (while in 2012 only 9% thought that way). With time, home sellers tend to think that home prices are even more likely to rise; 58% of sellers in 2013 Continue reading

Urban Real-Estate Prices Are Booming, but Most People Live in Suburbs

urban real estate prices, most live in suburbsDuring the past year, urban real estate prices have increased faster than suburban prices, leading some to speculate there has been a Renaissance in city living. However, the suburbs continue to outpace cities in population growth in light of the fact that there is more room to build and grow in the suburbs than a dense city. Continue reading

San Diego home prices up

housing market trend“San Diego County housing prices rose again in October, but the pace of growth continued to slow.

“The S&P/Case-Shiller Home Price Index showed Tuesday that from September to October, the index grew 0.3 percent. That’s down from the 0.9 percent gain from August to September, and the 1.8 percent boost from July to August… Continue reading

No rise in US real estate prices before 2014?

Two prominent home-price indices continued to show declines in September and October, with one outlook indicating no more than flat growth in the next two years.

A home-price index report from loan data aggregator Lender Processing Services showed the national average sales price for single-family homes fell 4.4 percent year over year and 1.2 percent month to month in September, to $202,000.

LPS’ Home Price Index, launched in July, tracks monthly sales in more than 13,500 ZIP codes. Within each ZIP code, the index shows historical price changes for five home-price levels, including entry-level, middle-market and high-end homes.

Prices declined on a monthly basis in all ZIP codes covered by LPS. The top 20 percent of homes (selling for more than $317,000) saw a slightly smaller monthly decline, 1.2 percent, than the lowest 20 percent (selling for less than $102,000), which saw a 1.4 percent drop.

“Home prices in September were consistent with the seasonal pattern that has been occurring since 2009,” said Kyle Lundstedt, LPS Applied Analytics’ managing director, in a statement.Real estate prediction for 2012

“Each year, prices have risen in the spring, but revert in autumn to a downward trend that has not only erased the gains, but has led to an average 3.7 percent annual drop in prices to date. The partial data available for October suggests a further approximate decline of 1.1 percent.”

A report released by property data firm CoreLogic bears out the monthly decline in October. For the third straight month, nationwide single-family home prices fell on both a monthly and yearly basis, dropping 1.3 percent from September and 3.9 percent from October 2010. Excluding distressed sales (short sales and real estate owned home sales, also known as REOs), October’s index fell 0.5 percent from a year ago.

“Home prices continue to decline in response to the weak demand for housing. While many housing statistics are basically moving sideways, prices continue to correct for a supply and demand imbalance. Looking forward, our forecasts indicate flat growth through 2013,” said Mark Fleming, chief economist for CoreLogic, in a statement.

The index was down 32 percent in October from an April 2006 peak. Excluding distressed sales, the drop was 22.4 percent. CoreLogic’s index is based on 30 years of data for repeat sales transactions, and “price, time between sales, property type, loan type and distressed sales.”

Among the 10 most populous metropolitan areas in the country, six saw index declines in October. Only Washington, D.C., and New York-White Plains-Wayne, N.Y.-N.J., saw index increases above 1 percent. When distressed sales were excluded, six experienced index increases.

Most states, 34, experienced year-over-year index drops in October. Ten states and Washington, D.C., saw index rises of more than 1 percent. West Virginia led the way with a 4.8 percent annual rise.

At the other end of the spectrum, Nevada was the only state to see a double-digit index drop in October, down 12.1 percent. When distressed sales were excluded, 28 states and Washington, D.C., saw flat or rising home prices. South Carolina posted the biggest increase, up 4.6 percent.