August - 2018

Pending Home Sales Stumble as Housing Market Momentum Wanes

Pending home sales stepped back in July and have now fallen on an annual basis for seven straight months, according to the National Association of Realtors®. The Pending Home Sales Index, a forward-looking indicator based on contract signings, decreased 0.7 percent to 106.2 in July from 107.0 in June. With last month’s decline, contract signings are now down 2.3 percent year-over-year. Lawrence Yun, NAR chief economist, says the housing market’s summer slowdown continued in J

Housing in 2020: Construction Costs Grow, Mortgage Rates Slow

Where will housing be in 2020? According to the latest Metrostudy predictions, if all continues on its current track, construction costs could continue to increase, and mortgage rates could reel in. While rates have increased in the last six months, impacting affordability, the rise is not significant according to historical trends, says Mark Bound, chief economist and senior vice president at Metrostudy, a provider of primary and secondary market information to the housing a

Is the Housing Market Normalizing? One Sign the Tide’s Turning

With demand strong and supply weak, the housing market is overwhelmingly partial to sellers. The average homeowner is profiting $40,000 at resale (with decade-high returns in 2017), and higher in the hottest markets, where they’re attracting multiple offers in record time. Now, there’s an early indicator that the market may shift. At the start of summer, 14.2 percent of listings nationwide had their prices reduced, according to a new report by Zillow. At the beginning of the

Appraisals Catch Up to Homeowner Opinions

Appraisers and homeowners are on similar wavelengths, with appraisals coming in only 0.28 percent under what homeowners expected in July, according to the Quicken Loans National Home Price Perception Index (HPPI). Appraised home values rose 4.86 percent year-over-year, according to the Quicken Loans National Home Value Index (HVI). “The story the HPPI is currently telling is one of an ever-strengthening housing market,” says Bill Banfield, executive vice president of Capital

Affordability Challenges Keep Millennials on the Sidelines

Affordability is fading fast—and although millennials are eager to enter the market, and succeeding, they’re bearing the brunt of the challenge, according to recent research. Sixty-three percent of millennials under 29 are challenged by the cost of homeownership, according to a CoreLogic and RTi Research study. The expense, in fact, is their No. 1 reason for remaining a renter. “One-third of millennial renters reported feeling they cannot afford a down payment to buy a home,”

Inventory: Is the Drought Easing?

When it comes to the housing market, the conversation has been dominated by pricey properties and short supply—but, under the radar, there has been an improvement in inventory, according to realtor.com®’s recently released July 2018 Monthly Housing Trend Report. The easing, however, is not at the entry level, but in the high-priced tier. In July, the inventory of listings priced $350,000-plus was up 5.7 percent, but inverted in the lower segment—dropping 15.6 percent at $200,

Building Momentum for Mortgage Rates

There is a building momentum in mortgage rates, with the average 30-year, fixed rate up for the second straight week, according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS®). The average 30-year fixed increased to 4.6 percent, up from 4.54 percent the prior week. The average 15-year, fixed, meanwhile, rose to 4.08 percent, up from 4.02 percent, and the average five-year, Treasury-indexed hybrid adjustable rose to 3.93 percent, up from 3.87 percent. “The higher rate

Half of Homes Past Pre-Recession Values

Half of the homes—50.4 percent—in the nation are past their peaks prior to the recession, with 21 of the 35 largest markets at the milestone value, according to the June Zillow® Real Estate Market Report. Based on the Zillow Home Value Index (ZHVI), in June, home prices were up 8.3 percent year-over-year, to a median nationally of $217,300. Despite half of markets rebounding, the recovery has been uneven, says Aaron Terrazas, senior economist at Zillow. “Even a decade after t

Contracts Flicker in June, but Pending Sales Still Underwhelm Year-Over-Year

With an 0.9 percent gain month-over-month, June pending sales slightly sparked, according to the National Association of REALTORS® (NAR) Pending Home Sales Index (PHSI)—but, on an annual basis, contracts still underwhelmed, down 2.5 percent. From May to June, activity increased in all of the regions in the U.S.: 0.5 percent in the Midwest; 1.4 percent in the Northeast; 1.1 percent in the South; and 0.7 percent in the West. However—in line with the nation’s overall trend—activ