Each day the Research staff takes a look at recently released economic indicators, addressing what these indicators mean for REALTORS® and their clients. Today’s update highlights jobless claims and factory orders.
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The national housing market slumped in the 3rd quarter of 2010 following the end of the Federal tax credit. This pattern persisted in the 4th quarter, but the dynamics at the local level were different. A slim majority of the 152 markets monitored in the 4th quarter saw an increase in the median home price relative to the same period in 2009, but more important was a shift toward slower rates of price decline and toward modest growth. Sales, though down from the 4th quarter of 2009, moved toward a bottom, while employment expanded in a majority of markets. Foreclosures remain a widespread problem with signs that the 3rd quarter slowdown will spawn a resurgence of fresh foreclosures in the future. In the absence of government intervention, the market is acting as it should to heal itself.
Connection to the community is also shown by the fact that homeowners are engaged in nearly all community activities more frequently than renters. For example, 86 percent of homeowners vote in national elections often or always compared with 68 percent of renters. Homeowners also more frequently read or listen to local and national news, vote in local elections, attend religious services and volunteer their time for a charitable organization.
Homeownership is also correlated with a better self-assessment of health. Forty-four percent of homeowners rate their health as excellent or very good compared with 29 percent of renters.
View results from the “American Attitudes about Homeownership” survey as well as charts and graphs here: http://bit.ly/hh0eYG
Each day the Research staff takes a look at recently released economic indicators, addressing what these indicators mean for REALTORS® and their clients. Today’s update highlights mortgage purchase applications.
Region 11: Though down from the 1st half of 2010, the share of distressed sales in Region 11 (Arizona, Colorado, Nevada, New Mexico, Utah, and Wyoming) rose from 39% in the 3rd quarter to 43% in the 4th quarter. The shares for both short-sales and foreclosures rose over this time period.
Region 12: A 51% majority of agents surveyed in Region 12 (Montana, Idaho, Washington, Oregon, and Alaska) felt that prices would decline over the next year. However, roughly 49% expect prices to rise over this same period and with 3% anticipate an increase of 5% to 10%. This discrepancy likely reflects disparate local economic conditions within Region 12.
Region 13: Only 30% of homes purchased in Region 13 (California, Hawaii, and Guam) during the 4th quarter involved a down payment of 10% or more. The largest share of buyers at 25% put down 1% to 2%, while 15% of buyers put down no money at all.
To see all reports, please click here: http://www.realtor.org/research/research/srs_rvpr
- The median household income for Pacific homebuyers in 2009 was $78,400.
- Over half of all buyers in Pacific region were first-time home buyers.
- 82 percent of buyers in Pacific region purchased their home through an agent.
- 86 percent of recent buyers in the region purchased an existing home.
- For more information, detailed interactive maps, and downloadable PowerPoint presentations on home buyers by region, go here:http://realtors.org/research/research/home_buyers_sellers_maps
Each day the Research staff takes a look at recently released economic indicators, addressing what these indicators mean for REALTORS® and their clients. Today’s update highlights the Case-Shiller Home Price Index and consumer confidence.
Continue reading »
There has been persistent discussion of the housing inventory overhang and oncoming shadow distressed inventory that is projected to be reaching the marketplace in upcoming months. The number of existing homes available for sale, including foreclosed properties that show up in multiple listing services and those homes requiring short-sale approvals, was 3.49 million at the end of February. The inventory is expected to climb further, affected by the normal seasonal factors of more homes getting listed through the spring and summer months, to around 4 million by September.
However, one aspect of the housing inventory that is rarely discussed is the 50 year low on newly built home inventory. Homebuilders have greatly cut back on production in the past 4 years. As a result the number of new home inventory is quite low, as the chart below illustrates. There is always a subset of consumers who insist on buying only new products. If or when the housing recovery momentum picks up then there could be a real dearth of newly constructed homes to choose from.
Region 7: While a majority of agents, 53%, in Region 7 (Indiana, Illinois, and Wisconsin) expect home prices to rise over the coming year, roughly 46% expect a decline. Expectations in this area are heavily split and likely reflect submarket differences.
Region 8: The price discount for short sales fell steadily in Region 8 (Minnesota, Iowa, North Dakota, South Dakota, and Nebraska) in 2010 before tumbling by nearly 75% from the 3rd quarter to the 4th. The discount on foreclosures also fell over this same period, but remains large at 19%.
To see all reports, please click here: http://www.realtor.org/research/research/srs_rvpr
