September 23, 2013
Market: Phoenix, AZ
According to separate reports from Arizona State University and CoreLogic, single-family home prices in Phoenix are on the rise and foreclosures are declining. The median home prices jumped 30% year-over-year in July to $194,150. Foreclosures fell 56% during the same time span.
However, negative equity continues to plague the MSA. In Q2 2013, 231,000 homeowners found themselves underwater on their houses. That figure represents 26% of the state’s mortgage owners, nearly double the national rate of 14.5%.
Read more at Phoenix Business Journal.
September 18, 2013
Market: Portland, OR
Average home prices in Portland rose 14% year-over-year to $321,900 in August, sustaining the city’s streak of double-digit annual price increases, according to the Regional Multiple Listing Service. Prices remain 17% behind 2007 levels, when the housing market was at its peak.
New listings and pending sales also saw increases of 10.3% and 9.5% in August, respectively. Experts estimate it would take 3.1 months to clear the market of its unsold inventory, well below the 6-month level considered characteristic of a healthy market.
Read more at the Portland Business Journal.
September 16, 2013
Continued recovery in the housing market is benefiting just about everyone – especially seniors, who throughout the country are selling their homes to move into multifamily housing facilities. As reported by CoStar, senior multifamily properties (including assisted living facilities) have seen a 35% annual increase in sales volume, from $1.18 billion last year to $1.59 billion in 2013. Per-unit sales prices, meanwhile, have seen dramatic decreases, falling from $88,000 in 2011 to $58,000 now.
So what does this all mean? Demand for senior housing facilities has seldom been higher, and investment companies are jumping on the trend. If multifamily demand in the 65+ demographic can keep up with growth forecasts, investment companies across the country stand to profit.
Read more at CoStar.com.
September 12, 2013
Economists expect the U.S. to continue its recovery, forecasting a healthy growth of 3% by the second quarter of 2013, highlighted by increases in employment and low levels of inflation. As reported by the National Association of Business Economics, the improving economy will provide incentive for the Federal Reserve to reduce its purchases of treasury bills and mortgage bonds, which currently total $85 billion every month. According to a NABE survey of 43 top economists, 80% believe this cutback will occur by next year and 43% think it could happen as soon as this year.
The economists surveyed forecast year-over-year GDP growth of 2.3% in the third quarter of 2013 and 2.6% in the fourth quarter, both down slightly from earlier expectations. Second quarter annual GDP growth came in at 2.5%. The U.S. economy hasn’t seen year-over-year growth hit 3% since 2005.
Read more at USAToday.com.
September 10, 2013
Market: Las Vegas, NV
Single-family home prices in Las Vegas made another double-digit, year-over-year leap, increasing 31.9% to a median home price of $182,000 last month, according to the Greater Las Vegas Association of Realtors. Prices for condos and townhomes increased 33.6% to $65,000, making August the 19th straight month that prices have increased over the prior year.
Traditional single-family home sales (those that do not involve foreclosure or a short sale) also increased in August, jumping to 67% of all sales. Short sales with a median home price of $148,000 and median foreclosure price of $157,000 stayed at around 25% and 8%, respectively, of all sales.
Read more at the Las Vegas Review-Journal.
September 6, 2013
Overall confidence in the apartment market, as measured by the National Association of Home Builders (NAHB), rose to an all-time high in the second quarter. The NAHB index came in at 61, its highest level since the agency began tracking confidence among builders and developers in 2003. A rating of 50 is considered neutral. NAHB Chief Economist David Crowe explains: ”Much of the consumer demand that we are now seeing is coming from a large generation of young people who are able to find jobs and establish their own households as the economy continues to improve.”
Read more at RealtorMag.org.
September 4, 2013
According to the U.S. Census Bureau, Utah’s homeownership rate hit its lowest level in 18 years in 2013, reflecting the damage suffered by state’s housing market during the 2008 recession. Between 2008 and 2012, homeownership fell from 76.2% to 71.1%, and nearly 60,000 Utah households turned from owning to renting. Over 90,000 jobs were also lost during that span. The homeownership rate is expected to remain relatively flat for the remainder of the year, although new home sales fell markedly from June to July. Sales fell 13.4% month-over-month to an annual pace of 394,000, well below the 700,000 that experts consider to be a benchmark of a healthy market.
Read more at The Salt Lake Tribune.