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Market Trends

Housing Momentum is Grinding to a Halt

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The U.S. housing market is struggling to maintain momentum as housing prices continue to moderate and purchase applications fall. The latest reading of Freddie Mac’s newly updated Multi-Indicator Market Index® (MiMi®) shows a slight decline in the national value through July. The national MiMi value stands at 73.4, indicating a weak housing market overall and showing a slight decline (-0.45%) ... Read More »

August Sales Took a Dip

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Nothing like a plunge in the pool to bring the housing recovery back to reality. Each sales report and forecast paints a picture of a declining market as the spring/summer market faded away.  Now there’s a growing consensus that existing home sales will fall below the magic 5 million number for only the second time in the past eight years. ... Read More »

Are Inventories nearing the Danger Zone?

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Prompted by two years of steadily rising prices, inventories are reaching levels higher than they have been in two and a half years according Zillow. Inventory shortages have plagued real estate markets for much of that time, but the latest data suggests that the pendulum may have swung too far in the other direction.  Zillow reported that national for-sale inventory ... Read More »

Homeownership Decay Fuels Multifamily Demand

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The multifamily sector, especially apartment buildings for rent, are rebounding at a record pace at the expensive of moribund homeownership rates, especially among young adults. Construction of buildings with at least five apartments hit the highest monthly construction pace since the beginning of 2006, according to the latest economic forecast from Fannie Mae. The latest absorption rates for unsubsidized, unfurnished ... Read More »

Summer’s End Cools Luxury Sales

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Luxury home sales peaked in late June but by the first of September the market crossed over into a buyers’ market for the first time since early spring, though not strongly so. Median luxury prices also have been falling since the end of June, according to weekly market reports from the Institute for Luxury Home Marketing. Last week ILHM’s Market ... Read More »

Are You Ready for the HELOC Crisis?

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  At least 2.5 million home equity lines of credit (HELOCs) will reset over the next three years, increasing borrowers’ monthly payments by an average of $250 per month and resulting in a surge of defaults, according to Black Knight Services’ September Mortgage Monitor report. According to Kostya Gradushy, Black Knight’s manager of Research and Analytics, this average is based ... Read More »

Clear Capital: Welcome Back to 2004

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  National home prices have been nominally unchanged for a lost decade and we’re back to 2004 levels without even accounting for inflation, leaving many homeowners with no more equity than when they bought.  That’s the grim assessment by Clear Capitol in its September market report. If national home price growth continues to diminish, the lost decade will drag out. August home price ... Read More »

Were July Sales Up or Down?

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  Two major market reports left real estate professionals shaking their heads this week over the latest sales data.  RealtyTrac and NAR reported July sales headed in opposite directions as the buying season closed up shop for the duration. Sales of residential properties were down 3 percent from June and down 12 percent from a year ago — the third ... Read More »

Economists in Reuters Poll See Stronger Sales, Weaker Prices in 2015

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The annual pace of existing home sales will likely rise to 5.25 million units in the first three months of 2015 from 5.09 million in the current quarter, according to a Reuters poll of economists But prices next year will be weaker than this year. The S&P/Case-Shiller gauge of property values in 20 metropolitan areas was seen rising just 5.0 ... Read More »

Lag in New Households Retards Recovery

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  Household formation over the past 12 months is less than half of predictions, slowing demand for housing even though it’s increasingly cheaper to buy than rent.  The near term outlook for home sales remains gloomy, according to the latest from Freddie Mac’s chief economist. Household formation still remains very slow and the Census Bureau reports that over the past ... Read More »