Blog – Page 770 of 833 – Mike Pfefferman

25

Feb

Market Outlook

Case-Shiller: Rising Home Prices Boost Inflation

Case Shiller Rising Home Prices Boost Inflation

December home prices rose by 0.10 percent according to the Case-Shiller 20-City Home Price Index. The composite report tracks home prices in 20 U.S. cities. December’s results boosted home prices by 4.50 percent year-over-year, which is approximately double the inflation rate for 2014. Analysts note that the overall reading was less significant than individual readings for the 20 cities included in the report.

Regional Home Prices Suggest Disparity in Housing Recovery

The top three month-to-month home price increases for cities surveyed were led by Miami, Florida with an increase of 0.70 percent, Home prices rose by 0.50 percent in Denver, Colorado, and by 0.50 percent in San Francisco, California.

Chicago, Illinois posted a month-to-month loss of -0.90 percent; Cleveland, Ohio followed with a loss of -0.50 percent, and Las Vegas, Nevada and Minneapolis, Minnesota were tied with monthly losses of -0.30 percent for home prices.

Winter weather conditions and the holidays can dampen demand for homes; it’s worthwhile to note that three of the cities posting the largest month-to-month losses are located in cold winter climates.

Month-to-month readings for home prices are typically more volatile; the corresponding year-over-year readings provide a more accurate reading of real estate trends in specific cities. Nine cities posted month-to-month gains for home prices, while six cities posted lower home prices from November to December.

San Francisco Leads Year-over-Year Home Price Growth

San Francisco, California led year-over-year home price growth with a reading of 9.30 percent. Home prices grew by 8.40 percent in Miami, Florida. Denver, Colorado home prices grew by 8.10 percent year-over-year in December.

The three cities showing the least amount of home price growth year-over-year were Chicago, Illinois with a reading of 1.30 percent, Cleveland, Ohio and Washington, D.C. were tied with year-over-year readings of 1.30 percent growth in home prices year-over-year.

Home prices are growing more slowly in the North and Midwest regions, while home prices continue to grow fastest in the Southeast and Western regions.

Home prices in the cities surveyed have increased by 29 percent since the March 2012 low, but remain 16 percent below their July 2006 peak. The Case-Shiller Home Price Index measures home prices using a three-month rolling average, while other home price reports base their readings on monthly sales. Case-Shiller’s year-over-year reading of 4.50 percent for December of 2015 closely approached CoreLogic’s reading of 5.00 percent home price growth year-over-year.

While increasing home prices are good news for homeowners, higher home prices represent an obstacle for moderate income and first time home buyers, who are also impacted by strict mortgage credit standards. As the peak home buying season approaches, increased demand for homes could drive home prices higher.

23

Feb

By support

Market Outlook

What’s Ahead For Mortgage Rates This Week – February 23, 2015

What's Ahead For Mortgage Rates This Week Feburary 23 2015

Last week’s housing related reports included the National Association of Home Builders (NAHB) Housing Market Index for February, The Commerce Department’s report on Housing Starts for January and Freddie Mac’s weekly report on average mortgage rates. The Federal Reserve released the minutes of January’s FOMC meeting, which indicated that FOMC members are in no hurry to raise the target federal funds rate. The details:

Home Builder Confidence, Housing Starts Impacted by Winter Weather

The NAHB Housing Market Index for February fell from January’s reading of 57 to 55. Analysts expected a reading of 59. This was the lowest reading since October, but February’s reading remains above the benchmark of 50. Readings exceeding 50 indicate that more home builders are confident about housing market conditions than not.

According to the NAHB, harsh weather contributed to lower builder confidence in February. NAHB Chief Economist David Crowe said that low mortgage rates, increasing affordability and improving job markets are helping home buyers.

The NAHB Housing Market Index is calculated based on three components. Builder confidence dropped by one point to a reading of 61 for current housing market conditions. Not surprisingly, the winter weather caused buyer foot traffic to drop five points to a reading of 39. A gauge of housing market conditions in the next six months was unchanged.

Regional readings showed declines in three of four regions: The Northeast saw a one-point drop to 46; the Midwest and South dropped by two points to readings of 54 and 57. The Western region gained two points for a reading of 68.

The U.S. Commerce Department reported that January’s Housing Starts dropped from 1.09 million in December to 1.07 million in January; the reading for January matched analysts’ expectations.

Weekly jobless claims provided some good news; they dropped from the prior week’s reading of 304,000 new claims to 283,000 new claims. The expected reading was 290,000 new jobless claims.

Mortgage Rates Rise, Points Unchanged

Freddie Mac reported that average mortgage rates rose last week. The rate for a 30-year fixed rate mortgage rose by seven basis points to 3.76 percent; the average rate for a 15-year fixed rate mortgage increased by six basis points to 3.05 percent and the average rate for a 5/1 adjustable rate mortgage was unchanged at 2.97 percent. Discount points were unchanged at 0.6 percent for fixed rate mortgages and 0.50 percent for 5/1 adjustable rate mortgages.

What’s Ahead

Next week’s scheduled economic news includes several reports related to housing. New and existing home sales reports will be released along with the Case-Shiller Composite Housing Market reports. FHFA will release its House Price Index Report and Fed Chair Janet Yellen is set to testify before Congress. Reports on Consumer Sentiment and Consumer Confidence are also scheduled along with weekly reports on jobless claims and mortgage rates.

20

Feb

By support

Home Seller Tips

Selling Your Home in 2015? Boost Your Resale Value with These Three Inexpensive Renovations

Selling Your Home in 2015? Boost Your Resale Value with These Three Inexpensive Renovations To get top dollar for your home, renovations may be necessary. However, some renovations can prove costly and they don’t always add value to your home. Here are three inexpensive renovations that are sure to improve the resale value of your home.

First Impressions Matter

Your home needs to have curb appeal. If the potential buyer doesn’t see that, it will be difficult to get the price you want. Spend money and time landscaping your yard. Pressure wash your driveway. Paint your front door. Make your porch look welcoming. If you do all of this yourself or with the help of family and friends, the costs will be reasonable.

After a prospective buyer is impressed by your nicely kept lawn, you will want to continue impressing him/her with your interior design. Buyers know what they want when it comes to the number of bedrooms and baths. You have something they want or they wouldn’t be looking at your home. Now, you need to keep their attention.

Freshening Up the Interior

Each room needs to be freshly painted in a neutral color. Old wallpaper and borders should be stripped and walls repainted. Make each room look larger by clearing any clutter. If possible, remove any unnecessary furniture and store it somewhere else. Have any carpets professionally cleaned, and be sure to polish any hardwood flooring. In the bedrooms, de-clutter your closets. Your kitchen and bathrooms should be sparkling. Clean and organize counters and cabinets. Again, most of these suggestions cost little but add great value to your home.

Upgrades

When you think of upgrades, you many automatically assume major costs with little return. However, many upgrades may be within your budget. Consider making some of these affordable upgrades to your home.

Living Areas/Family Rooms – If you’re going for a more elegant touch, add some crown molding. For a more rustic feel, add box beams. Improving the ceilings of main rooms will add value to your home.

Hardware and Fixtures – Painting and changing the hardware on your cabinet doors can change the look of a room dramatically. Add new fixtures such as lighting and doorknobs for a more updated look.

Selling your home may require you to spend a little money, but you’ll likely get the full value of your home.