For those who live near the East or Gulf Coasts in the U.S. long enough, a hurricane or tropical depression will likely enter your life at some stage. Since I moved to Houston in 1997, the city has experienced three major storms in the Gulf of Mexico: Tropical Depression Allison, Hurricane Ike and the now-infamous …Read more
This may be the most timely report you read this quarter regarding Commercial Real Estate — Dr. Glenn Mueller’s Real Estate Cycles Q2 2017 report from Black Creek Group – Black Creek Research. The report contains a critical mass of valuable data spanning major commercial real estate markets across the country. Dr. Mueller’s analysis of …Read more
As stated last month: 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. The forecasts typically span a three-year period, currently from 2016 to 2018. The lagging year (2016 …Read more
New home sales unexpectedly fell 8.9 percent on a year-over-year basis in July 2017, now at an estimated 571,000 unit sales pace on a seasonally adjusted annualized rate (SAAR). Sales dropped 9.4 percent sequentially from June’s 630,000 pace (SAAR). Median new-home price was $313,700, up 6.3 percent versus the same month a year ago while …Read more
Congress has encouraged homeownership by allowing the deduction of home mortgage interest payments and property taxes on primary and second homes owned by individuals. For full details on home mortgage interest deductibility as it currently stands, read the IRS publication with all of the particulars at https://www.irs.gov/publications/p936/ar02.html Naturally to qualify for a deduction, the minimums …Read more
The definition of the American Dream, no doubt, varies from individual to individual. To one person it might be a small home with a front porch and quaint neighborhood, while the next person may define it as high-paying readily available jobs or a great place to raise a family. As usual, I invoke the TINSTAANREM …Read more
Just like some stocks outperform others, the same is true for housing markets. While most housing markets have seen home value increases since 2009, some markets have skyrocketed and others just chugged along. As usual, I invoke the TINSTAANREM axiom — There Is No Such Thing As A National Real Estate Market. Nor is there …Read more
RealtyTrac, a subsidiary of ATTOM Data Solutions, reports that home flipping is now at the greatest rate seen since 2007. In 2016, the median acquisition cost of a flip was $127,276 and the resale price $189,900 resulting in a gross flipping profit of $62,624 or 49.2 percent. From that gross amount any and all renovation …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. The forecasts typically span a three-year period, currently from 2016 to 2018. The lagging year (2016 at this time) often …Read more
Each month Fannie Mae, Freddie Mac and the MBA forecast housing sales and price appreciation rates for coming years. As you will see, there is neither a consensus nor even agreement in how the data are reported. Fannie Mae and the MBA individually forecast existing home sales and new single family home sales along with …Read more