For most people the housing question is either to rent or buy. Buying is not for everyone, however. It has material transactions costs, typically requires a down payment, pre-requisite for relatively good credit and an income net of existing debt service to pay the monthly principle and interest along with property taxes, insurance, homeowner or …Read more
Closing costs are intrinsic to the transaction process of real estate. These costs, however, vary from property to property, state to state and city to city. As usual, I invoke the TINSTAANREM axiom — There Is No Such Thing As A National Real Estate Market (or a National Economy). The same is true regarding transaction …Read more
While existing home sales rose 2.5 percent from April to May 2019 on a seasonally adjusted annualized basis (SAAR), they were down 1.1 percent when compared to May 2018 according to the National Association of Realtors® (NAR). Sales totaled 5.34 million in May (SAAR) versus 5.40 million a year ago. Total sales (raw, not seasonally …Read more
Millennials remain the largest homebuying segment for the fourth consecutive year in the U.S. As the largest population demographic ever in the country, where Millennials locate, live and work will impact the economic landscape of the country for decades to come. With a median age of 29, Millennials are not at the peak age of …Read more
New single family residential (SFR) home sales of 631,000 on seasonally adjusted annualized rate (SAAR) were up 2.2 percent versus a year ago but down 5.3 percent sequentially from May. Year-to-date new home sales (not seasonally adjusted) of 345,000 units were up 5.8 percent compared to the same period a year ago. There were …Read more
New single family residential (SFR) home sales of 689,000 on seasonally adjusted annualized rate (SAAR) were up 14.1 percent versus a year ago and 6.7 percent sequentially from April. Other than the 712,000 SAAR rate posted in November 2017, this is the greatest level seen since October 2007. Year-to-date new home sales are up 8.8 …Read more
Tight inventories of listings for sale and rising residential mortgage interest rates and home values continued to deflect existing home sales in May 2018 as reported by the National Association of Realtors® (NAR). Actual sales in May 2018 of 536,000 compared to 555,000 a year ago were down 3.4 percent, but sales year-to-date dipped just …Read more
We economists have a secret rule when making forecasts on interest rates: give a rate or give a date, but never give both at the same time because you are going to be wrong. Fortunately, Fannie Mae, Freddie Mac and the MBA update their quarterly and annual forecasts monthly for residential lending volumes – …Read more
Home prices are a pure function of the interaction of supply and demand. Strong job growth, rising wages (the average hourly wage in the U.S. is up 2.6 percent in the prior 12-months), rising rents and lack of supply is propelling prices upwards in most markets. In the latest 12-months the U.S. added 2.281 million …Read more
As we economists say, “forecasting is difficult, especially the future.” Fortunately, Fannie Mae, Freddie Mac and the MBA update their quarterly and annual forecasts monthly for residential lending volumes – both refinance and purchase transactions. Driving these lending forecasts is the expectation of future interest rates. As the following table shows, there is not perfect …Read more