Experts Predict 3.1% Home Prices Increase in 2013

Experts Predict 3.1% Home Prices Increase in 2013

Home prices will increase by 3.1 percent in 2013 and top off 2012 with a 4.6 percent gain, according to Zillow’sDecember Home Price Expectations Survey.

The survey, which was conducted by Pulsenomics LLC, was based on responses from 105 economists and industry experts.
In September, survey panelists projected more modest gains and predicted prices would rise by 2.4 percent in 2013 and increase overall by 2.3 percent in 2012.

Through 2017, panelists expect prices to increase by more than 3 percent annually. Read more ...

New-Home Sales Jump to Fastest Pace in Years

New-Home Sales Jump to Fastest Pace in Years

New single-family home sales soared to its fastest pace in 2 1/2 years, jumping 4.4 percent over last month, as median prices also rose, the Commerce Department reported Thursday. 

The sales pace in November for new-home sales was the highest since April 2010, the same time when the federal home-buyer tax credit had expired, the Commerce Department reported. 

The median home price of new homes jumped 14.9 percent year-over-year, reaching $246,200. Read more ....

Mortgage Rates End Year Near Record Lows

Mortgage Rates End Year Near Record Lows

Fixed-rate mortgages ended the year by hovering near record-breaking lows and keeping home buyer affordability high, Freddie Mac reports in its weekly mortgage market survey. 

“The 30-year fixed-rate mortgage averaged 3.66 percent for 2012, the lowest annual average in at least 65 years,” says Frank Nothaft, Freddie Mac’s chief economist. “Rates on 30-year fixed mortgages were nearly 0.6 percentage points below that of the beginning of the year, which translates into an interest payment savings of nearly $98,600 over the life of a $200,000 loan. Moreover, opting for a 15-year fixed mortgage at today's rates, a home owner could save an additional $138,400 in interest payments.'

Freddie Mac reported the following national averages for mortgages for the week ending Dec. 27: See current rates ...

Low Inventory Levels Lift Home Prices

Low Inventory Levels Lift Home Prices

The large inventory drops have been attributed to home owners waiting out the market for price increases, investors snagging up houses, fewer bank foreclosures, and builders curbing production.

But the low inventories are helping home prices to rebound. “Large drops in inventories have whittled away the discount at which foreclosures sell in many markets, which has further contributed to big price gains,” The Wall Street Journal reports. Read more...

4 Housing Issues to Watch in 2013

4 Housing Issues to Watch in 2013

What does 2013 have in store for the housing market? With marked gains this year, housing experts expect the housing market to continue to gain momentum in the new year. 

The Wall Street Journal recently offered up some chief housing issues likely to be important in the New Year.

These include: 

• Inventories rise: To meet the increased demand, home builders are increasing production and more sellers may be more willing to test the market as housing prices increase. 
• Home prices spur demand: More buyers have urgency with home purchases as rents rise, housing values gain momentum, and mortgage rates remain low. 
• Credit remains tight: “While rising prices could serve as a tailwind, new regulations may lock in some of the defensive underwriting posture while impeding capital rules may lead banks to pare their lending footprint,” The Wall Street Journal predicts. Read more ....

Price Gains Driven by Composition Changes

Price Gains Driven by Composition Changes

 Not Appreciation, After tracking home price trends in 25 metropolitan statistical areas (MSAs), Radar Logic found prices in October are now 6.9 percent higher than a year ago, according to the company’s RPX Composite price.

“However, this increase was driven by a change in the composition of sales rather than price appreciation,” Radar Logic stated in a recent report.
Upon closer scrutiny, the analytics company explained the price increase is mainly the result of a decrease in distressed sales, or “motivated sales,” and the actual price increase for “non-motivated sales” is much smaller than the overall yearly gain. Read more ...

How 'Normal' Is the Housing Market?

How 'Normal' Is the Housing Market?

The housing market is expected to make big strides to getting closer to more normal levels, due mostly to a rise in home prices and household formation that is adding to demand, the NAHB reports. 

Single-family housing starts are forecasted to reach 534,000 units this year, up 23 percent this year from 2011. For 2013, single-family housing starts is expected to jump 21 percent in 2013 and another 29 percent gain in 2014 to 837,000 units. 

Multifamily production is forecast to jump 31 percent this year to 233,000, and gain another 16 percent in 2013 to 270,000. 

New single-family home sales are forecast to post a 20 percent jump this year to 367,000 and to rise another 22 percent in 2013, and reach 607,000 by 2014. Read more...