Posts Tagged ‘housing prices’

Freddie Mac Forecasts Best Year in Ten for Housing Industry

April 1st, 2016 Comments off

crystal ball foto searchAccording to what Freddie Mac tells MHPrpNews in nationalmortgagenews, despite low wage growth this year, the housing market will reach its highest level in sales, housing starts and housing prices since 2006. It will be largely driven by interest rates that remain below four percent for a 30-year fixed rate, even given the Fed’s rate hike.

Wage growth is “’anemic, barely keeping pace with inflation,” says Freddie, and labor force participation has fallen. (MHProNews adds: In the one day since this article was published, 215,000 more jobs were added in March, and the unemployment rate rose from 4.9 percent to five percent, indicating more people were out looking to rejoin the work force.)

Freddie cautions: “If wages and incomes do not start rising, then rising interest rates, home prices and rents will squeeze households and ultimately slow housing markets.” However, a slowdown in site-built homes could be a spur for the manufactured housing industry. ##

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matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily business News-MHProNews.

Home Prices Notch Double Digit Growth

November 26th, 2013 Comments off

In yet another measure of the housing market recovery, the S&P/Case Shiller Home Price Index reveals home prices rose 11 percent from a year ago, the first year-over-year double digit gain since early 2006, before the housing bubble hit its high. The gain over last quarter was three percent, following a seven percent increase from Q2 2013. David Blitzer, of S&P Dow Jones, says, “The data suggest a market beginning to shift to slower growth rather than one about to accelerate,” in response to others’ concerns that the housing market is beginning to form another bubble. As CNNMoney tells MHProNews, mortgage rates remain at historically low rates, although they have risen in recent months; but the rebound in home prices also means fewer borrowers are in underwater loans, freeing them up to sell their homes and perhaps buy another one, which also spurs the return of the housing market. This Case Shiller index examines single-family home prices across nine Census Bureau divisions.

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Report: U.S. Home Prices Flat

December 12th, 2011 Comments off

A new report from Clear Capital find that quarter-over-quarter home prices remained flat, posting a slight a 0.3 percent increase, down from the 0.6 percent quarterly increase reported last month. Moreover, quarterly price movements have become more aligned across the four regions within the U.S., with only 2.0 percentage points separating the highest performing region (Midwest at 1.2 percent) and the lowest performing region (West at -0.8 percent). Concerning metro areas, the report found the Atlanta MSA bucked the nationwide trend of stability, posting a -9.7 percent drop in prices quarter-over-quarter. “The overall market stability in this month’s report gives me hope that housing markets are settling after a very turbulent two years,” says Dr. Alex Villacorta, Director of Research and Analytics at Clear Capital. “With only a one percent drop in national home prices since January and virtually no change in prices over the last six months, strong evidence suggests the big swings that many market participants are accustomed to could become a thing of the past.

(Image Credit: Clear Capital)

Housing Market in Volatile Times

June 8th, 2011 1 comment

Altos Research says the housing market is undergoing ‘The Catfish Recovery,” meaning housing prices will stabilize near the bottom, and stay there awhile, much like a catfish is a bottom feeder swimming around somewhat randomly, yet sustained.  In noting the relative constancy of the median price of housing over time, despite the peaks and valleys that are the exception, all markets experience volatility, and housing is no exception.  Volatility is normal, and the housing boom from the mid-1990’s to 2007 was itself an exception.  There are opportunities for traders to profit with the right information and appropriate cautions.