Monday, November 25, 2013
Wednesday, November 20, 2013
The Real Estate Report 11/20/2013
Maybe It's Not a Fluke
Two weeks ago we published a column entitled "Words of Optimism." Last week a surprisingly strong employment report was released. Was this a coincidence or was it an accurate prognostication? We do know that the jobs data can be tricky. What looks strong one month can be reversed the next month as the new month's data is always accompanied by revisions of previous numbers. Thus, we would need to see two or three months of strong jobs reports before we declare a turnaround and a great prediction (or a lucky guess). On the other hand, the words of optimism were based in fact and those facts included the important numbers regarding increased household formulation. As a matter of fact, household formulation and jobs data are clearly linked.
As more jobs are created, more households are created as children move out on their own. This demand for housing -- both rental and purchase -- creates more jobs. This relationship created a vicious cycle during the recession. Today it could influence the start of a virtuous cycle in which the economy is buoyed by both factors working together. Again, our thoughts are not just the result of rampant speculation. A recent report by the Federal Reserve Board indicated that the employment rate was set to fall in the coming months -- "Across the board, these indicators show the pace of the labor market recovery has increased compared with a year ago," wrote Mary Daly, the San Francisco Fed's deputy research director, and colleagues Bart Hobijn and Benjamin Bradshaw. "We take this as evidence that the recovery in the labor market is robust, broad-based, and likely to continue, if not accelerate, over the coming months." (Reuters). So, perhaps the surprising jobs report was not a fluke. But we still need to see a few more months of data to really determine if this is the case.
Americans don’t care to get to know the neighbor renting next door, according to a survey of more than 3,000 adults conducted by Harris Interactive on behalf of Trulia. Home owners dismiss neighbors who are renters more than any other group living in their neighborhood, the survey finds. Thirty-five percent of respondents say it’s most important to them that their neighbors be home owners, and 51 percent of home owners say they prefer to have other home owners as neighbors. That compares to 33 percent who say they prefer neighbors who speak the same language as them, 16 percent who say they prefer neighbors with the same family structure, and 10 percent who say they prefer the same race and ethnicity. At a time when more single-family homes have been turned into rentals, other surveys have found a prejudice against renter neighbors, too. Nearly 75 percent of home owners say that renters are bad neighbors, according to a survey by NeighborsFromHell.com. “Renters are less likely to adapt to local customs concerning noise, trash, parking, and lawn upkeep,” says Robert Borzotta, founder of NeighborsFromHell.com. “Home owners are perceived to care more about their property, its appearance, safety of the community, and property values.” Source: Trulia
More than 70 percent of the U.S. housing stock was built prior to 1990, and an aging housing stock may present more opportunities for buyers searching for a bargain, according to RealtyTrac’s Aging Homes Analysis. "The high percentage of homes that are at least 20 years old and likely in need of some major repairs is eye-opening," says Jake Adger, chief economist at RealtyTrac. "However, given the low inventory of homes available for sale in today's market, this challenge of aging U.S. housing supply can also be an opportunity for buyers looking for a bargain and home owners looking to update their living space and improve the value of their homes." Older homes often need upgrades for energy efficiency and may lack floor plans or amenities that home buyers desire today, according to RealtyTrac’s analysis. On average, homes built prior to 1990 sold for $233,211 this year, compared to $256,292 for newer homes. "The lower price point on older homes is not surprising given many are in need of some rehab and are more likely to have maintenance issues," Adger says. "But this also presents an opportunity for buyers willing to take on that older inventory. Those buyers can purchase at lower price points and face less competition from institutional investors," who tend to buy newer homes. Source: Mortgage News Daily
Key House and Senate members have reached a bipartisan deal to delay changes to the federal flood insurance program that are raising premiums for many homeowners. The bill would require regulators to address affordability of the coverage before implementing rate hikes. Rep. Maxine Waters, D-Calif., ranking member of the House Financial Services Committee, announced the bipartisan legislative fix for the National Flood Insurance Program (NFIP) that she said will assure that “changes are implemented affordably.” Senators Mary L. Landrieu, D-La., Johnny Isakson, R-Ga., Robert Menendez, D-N.J., Jeff Merkley, D-Ore., Thad Cochran, R-Miss., Heidi Heitkamp, D-N.D., David Vitter, R-La., and John Hoeven, R-N.D., are among those sponsoring the legislation in the Senate. Senate and House leaders who are involved now in budget talks have not indicated if or when there might be a vote on any proposals to delay Biggert-Waters. Waters was a chief architect of the bipartisan Biggert-Waters Flood Insurance Reform Act that ordered an end to many premium subsidies for property owners and a remapping of communities along with other changes that are resulting in many homeowners facing big premium hikes and more property owners being told they must buy flood coverage. In some areas, the premiums hikes are beginning to affect home sales. Source: Insurance Journal
Wednesday, November 6, 2013
Interesting November Facts...
|
INTERESTING FACTS...
|
|
|
|
|
Enjoy the beauty of November!
|
Subscribe to:
Posts (Atom)