Tag Archives: housing market

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4 Trends in the Year Ahead

Front Door 2

In a mortgage industry that has spent a lot of time looking back at the turbulence, tumult and tension of a few short years ago, it is refreshing to see industry professionals focusing on the future with a renewed sense of optimism and resolve.

With 2014 drawing to a close, it is time to look ahead to the next 12 months and examine the ongoing and emerging trends that will shape the industry in the year to come. From regulatory pressures to potential consolidation, and from new players to old principles, 2015 promises to be an eventful and intriguing year for mortgage professionals.

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5 Real Estate Predictions for 2015

Expect the home-purchase market to strengthen along with the economy in 2015, according to Freddie Mac’s U.S. Economic and Housing Market Outlook for November.

“The good news for 2015 is that the U.S. economy appears well-poised to sustain about a 3 percent growth rate in 2015 — only the second year in the past decade with growth at that pace or better,” says Frank Nothaft, Freddie Mac’s chief economist. “Governmental fiscal drag has turned into fiscal stimulus; lower energy costs support consumer spending and business investment; further easing of credit conditions for business and real estate lending support commerce and development; and consumers are more upbeat and businesses are more confident, all of which portend faster economic growth in 2015. And with that, the economy will produce more and better-paying jobs, providing the financial wherewithal to support household formations and housing activity.”

Freddie Mac economists have made the following projections in housing for the new year…

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What’s Housing’s Big Game Changer?

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Marriage and real estate often go hand-in-hand. But a drastic decline in the number of married young adults is emerging as “one of the biggest game changers in the housing industry,” according to John Burns Real Estate Consulting.

The share of 25 to 29 year olds who are married has plunged by nearly 48 percent for men and 43 percent for women since 1970.

“The housing market is unquestionably fueled by life stage changes, particularly the change of marital status and the addition (and subtraction) of children,” John Burns Real Estate Consulting notes in a recent blog post. “These changes significantly affect where consumers want to live and what kind of home and community they will choose.”

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Signs Suggest Looming Opportunity for First-time Buyers

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CoreLogic recently reported that the number of underwater homes, properties worth less than what is owed on them, fell from 6.3 million to 5.3 million between the 1st and 2nd quarters of 2014. This change is large and important for the health of the housing market.

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A Confluence of Positive Trends

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After a slow start this year, partly due to the frigidly cold winter, home sales are picking up steam. Existing-home sales have risen for four straight months and in July were at the highest pace of the year, 5.15 million. Pending contracts point to more gains, too.

Jobs are always important for home sales, and in the last 12 months they’ve grown by 2.6 million. North Dakota, Texas, Utah, and parts of California are good examples of job growth leading to healthy real estate activity. Amazingly, mortgage rates refuse to rise, even after the Federal Reserve has started talking about tightening its monetary policy, keeping the recovery intact.

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10 Hot Spots for Seniors by 2019

On the verge of retirement, where will those aged 55 and over choose to live? Realtor.com® recently analyzed Nielsen Demographics data to find the metro markets that will see the largest percentage of growth in residents aged 55 and over within the next five years.

The list may surprise you!

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Fannie Mae More Cautious On Housing Outlook

Fannie Mae economists have downgraded their housing outlook after a weak end to the second quarter, and they say that near-term indicators are suggesting only a minor improvement in the second half of the year.

“The impact on mortgage rates from the market’s expectation that the Federal Reserve would soon start tapering their securities purchases, combined to some degree with the weather effect in the first half of 2014, led to very little seasonal growth in housing,” says Doug Duncan, Fannie Mae’s chief economist. “In the first six months of the year, total sales have run below last year’s pace.”

Also, Duncan notes that “on the demand side, there appears to be a conservatism among consumers and their willingness to take on big-ticket purchases, such as homes.”

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10 Hottest Markets for Millennial Buyers and Sellers

Seattle

When it comes to building a booming real estate business, you’ve got to know where the next hot group of buyers and sellers may be focusing their home seeking-attentions. Popular beliefs tell us that millennials—those between the age of 18 and 34—just aren’t buying homes. Right?

Not so fast. The official homeownership rate published by the Census gives a misleading picture of homeownership trends. In fact, homeownership among young adults is not too far off from where demographics say it should be.

And, as it turns out, young adult homeownership is actually on the rise. Is your market poised to become the next hotbed of young homeowners?

Recent Census Bureau findings show that millennials are flocking to big-city suburbs and lower-density cities. Check out these 10 cities, which made the list of the top 10 metros for millennial population growth—they may just be the next hottest real estate for millennial home buyers and sellers!

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Recovery Broadens as More Markets See Price Increases

Home prices were on the rise again last month, but in a stark contrast to last year, price increases were more generalized and less concentrated to just a few metro pockets, according to realtor.com’s May 2014 National Housing Trend Report.

In May, the median list price of homes was $214,900 nationwide, an 8 percent increase year-over-year. All but eight of the 146 markets that realtor.com tracks reported year-over-year price increases in May. “This broad increase in price suggests a more evenly distributed recovery and a healthier national housing market,” reads a realtor.com statement on the findings.

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4 Trends in Real Estate Right Now

The 48th annual conference for the National Association of Real Estate Editors, held recently in Houston, provided a snapshot of emerging trends in the real estate market.

  1. With obesity an ever-growing problem in the United States, access to fitness facilities and outdoor recreation is taking on increasing importance. According to Will Holder of Trendmaker Homes, buyers now favor communities that have trails winding through them over golf-course developments.
  2. In the multifamily niche, more and more projects are accommodating occupants’ desire for parks, grooming, and sitting services for their pets.
  3. There’s a growing tendency for young people discouraged by tight underwriting standards to stick with renting instead of buying.
  4. Current home owners are increasingly keeping and renting out properties with ultra-low mortgage rates rather than put them up for sale when they are ready to buy another house.

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