Real Estate Information Archive

Blog

Displaying blog entries 1-4 of 4

New Chapter In Housing Market Recovery

by Tim Hart
 

The nation experienced a 5.24% decline in housing inventory this July. At the same time, the national median listing price increased by 5.27%.

“The recovery is entering a new phase where inventory shortfalls are no longer the driving force behind changes inhousing prices in many markets. Larger inventories, especially in the hotter markets that experienced rapid price increases in the spring, are expanding buyers’ choices and helping to moderate price increases,” said Steve Berkowitz, CEO of Move, Inc. “This month’s report also underscores the uneven nature of the housing recovery and its dependence on the strength of the local economy.”  

This new trend boasts the following highlights:

  • No More Year-Over-Year Inventory Declines

  • Local Markets Inventory Declines Decrease Leading to Slower Price Growth

  • Mortgage Rates Rise/Plateau

 

Source: http://www.realtor.com/news/housing-inventory-declines-are-easing/

Real Estate: A Beacon of the Economy

by Tim Hart
More and more economic analysts are calling the housing market the bright light in the overall economic recovery. Home sales for existing homes ($100,000+) have risen since this time last year in nearly every region in the country. In addition, inventories have dropped nearly 26%. These two trends have done wonders to stabilize and improving market conditions.

“The housing market is clearly superior this year compared with the past four years,” says Lawrence Yun, NAR’s chief economist. “The latest increase in home contract signings marks 13 consecutive months of year-over-year gains.”

Consumer confidence, a number economists look at to predict the vitality of the future market, is greatly impacted by the improving housing market as home equity still accounts for over 16% of household net worth.

 

Source: “Will Housing Lead A U.S. Recovery?” Forbes (Aug. 27, 2012)

Tim Hart

 

At Home In Bozeman--Tim Hart

 

Two Highest Impact Age Groups: Seniors & Young Adults

by Tim Hart

Baby Boomers” and Echo Boomers” are the two demographics of the population that are foreseen to have the greatest impact on real estate trends over the next 20 years. In a new report released by the Bipartisan Policy Center, “Demographic Challenges and Opportunities for U.S. Housing Markets,” researchers at the National Association of REALTORS®, The Urban Institute, and the University of Southern California analyze key demographic trends and their likely influence on housing and homeownership in the United States. 

Why you may ask? Baby Boomers are increasing the nation’s senior population by 30 million. This shift will increase the supply of housing on the market due to the elderly selling homes more than they tend to buy.

Contrasting that trend, the “Echo Boomers” include 65 million people born from 1981 to 1995 who will increase their demand for housing inversely to the “Baby Boomers” decline.

“The Northeast and Midwest are most likely to see a large number of older home owners selling their homes to younger home owners as the baby boomers age,” says NAR Chief Economist Lawrence Yun. “This increased supply could mean additional buying opportunities for Echo Boomers. That generation will absorb 75-80 percent of the available inventory of owner-occupied housing by 2020.”

To Read More Click HERE

 

9.3% Raise in New-Home Construction!

by Tim Hart

New Home Construction

Indicators used to gauge the incline or decline of construction, new-homes and building permits, surged last month. Builders started more home projects in November increasing above October 9.3%.  The last time levels were this high was in April of 2010.

While home construction rates are seasonally adjusted at an annual rate of 685,000 homes, this rate is still below the 1.2 million home pace economists consider being ‘healthy’ for the new-home sector.

Multi-family homes carried the bulk of the increase with a jump of 25.3%, single family homes rose 2.3%, and building permits 5.7%.

“While builder confidence remains low, the consistent gains registered over the past several months are an indication that pockets of recovery are slowly starting to emerge in scattered housing markets," Bob Nielsen, chairman of the National Association of Home Builders, said in a statement. "However, the difficulties that both builders and buyers continue to experience in accessing credit for new homes are holding back potential sales even in areas where economic conditions are improving." 


Source: “Apartment Construction Spurs 9.3% Jump in Housing Starts, But Level Remains Low,” Associated Press (Dec. 20, 2011); “U.S. Nov. Housing Starts +9.3% to 685K; Consensus +0.3%,” Dow Jones International News (Dec. 20, 2011); and National Association of Home Builders

Displaying blog entries 1-4 of 4

406-570-5730 | Contact Tim Here | Bozman Brokers