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Market Analysis

Rates Scrape Bottom on the way out

barrel

  On the second to last week of the year, mortgage rates closed at their lowest levels since May 2013, proving once again the fallacy of expert predictions that rates would end the year at 5t percent or above.  A 30-year fixed-rate mortgage averaged 3.80 percent with an average 0.6 point for the week ending December 18, 2014, down from ... Read More »

Apartment Rents Soar Even HIgher

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Annualized effective rent growth rose to 4.7 percent in November, the biggest increase of the year and the highest since August 2011 when the rate measured 5.0 percent. According to research from Axiometrics, November’s rent-growth rate was a 38-basis-point increase from the 4.3 percent recorded in October and the largest growth margin since the 39-bps increase from February-March 2011 (4.6 percent ... Read More »

Rents Will Rise Faster than Home Values

Real Rent Reform

Zillow predicts a big year for home buyers in 2015, with more millennials entering the market amid rising rents. Zillow’s annual housing predictions also identify the five best housing markets for first-time homebuyers this coming year. 2015 Predictions U.S. rents will outpace home values by the end of the year Builders will begin constructing more, less expensive homes Millennials will ... Read More »

Can Traditional Buyers Save the Recovery?

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  The recovery is at a tipping point because traditional buyers are not making up for the decline in sales to investors, who cannot find enough houses to buy profitably.  Cash buyers competing for distressed and low-tier inventory who helped to jump start the overall recovery now are fading from the market.  They have fallen to just 16.8% of all sales, suggesting ... Read More »

Housing Costs Plunge for Owners, Soar for Renters

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  A much higher proportion of renters than homeowners are cost burdened by their housing expenses and the number is growing quickly due to rising rents and affordable home prices. Last year, 39.6 million households spent more than 30 percent of their income on housing, down from 40.9 million in 2012 and a peak of 42.7 million in 2010.  Still, ... Read More »

Is the Recovery Coming to a Screeching Halt?

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  After slowly winding down over the summer months, the third and fourth quarter data now being released shows that price appreciation is no longer slowing.  It is now within inches of a total screeching halt that could presage a shift in the recovery’s momentum as real estate markets don their pajamas for the winter hibernation. The September 2014 index ... Read More »

Starter Homes are Still Scarce

Starter homes

  National web sites report inventory remains tight, especially among lower priced starter homes popular with first-time buyers and investors. The realtor.com October National Housing Trend Report shows that inventory remains tight as total listings have decreased 2.9 percent month over month and 4.8 percent year over year. In October, homes spent approximately 92 days on the market, which is ... Read More »

Rents Rose for Eight Straight Months

Rents rise

The national annual effective rent growth reached 4.33% in October, a 2 basis point (bps) increase from September’s 4.31% and the highest point of the year to date, according to the latest data from Axiometrics.. October marked the eighth straight month in which effective rent growth has increased. The continued strong effective rent growth indicates that the national apartment market is ... Read More »

Multigenerational Living Loses Luster

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Is the three generational household leaving 21st Century America and returning to life on Walton’s Mountain? For several years housing experts have watched with concern as American families adopted a very old way of living that includes grandparents, adult children and even their offspring living under the same roof.  The phenomenon of “Boomerang Kids” who bounce back home when the ... Read More »

Median Income Americans Can’t Afford Median Homes in Most Metros

american dream

A median-income household can only afford a median-priced home in 10 of the 25 largest U.S. metropolitan areas, which is actually an improvement over last year despite the fact that home values are rising faster than income levels in most markets.  In 2013, the median-income household fell short in all but eight of the 25 metros. Baltimore was the biggest ... Read More »