This Week in Real Estate

Good Morning!

Home values received significant attention nationally This Week in Real Estate. Many outlets reporting that home values have now eclipsed the peak values reached during the mid-2000 boom. Below are a few of the highlights from the last week in October that influence the real estate market:

Home Values Climb Beyond Last Decade’s Best, Then Keep Going. After 8 years, home values hit new record. U.S. home values rose through the summer months and have now eclipsed the nation’s peak home valuations, set in early 2007. The Home Price Index, which is published by the Federal Housing Finance Agency (FHFA), shows U.S. property values up another 0.3 percent in August, adding to consecutive month win-streak which has now reached 21 months nationwide. Home values are up 5.5% from last year and market fundamentals remain strong. In August 2015, the Home Price Index climbed to 224.9, the highest published reading of all-time, eclipsing last decade’s peak of 224.0 set in April 2007. Full Story… http://themortgagereports.com/18387/fhfa-home-values-hpi-mortages

U.S. Home Values and Rents Defying Global Slowdown. Home values and rental prices are steadily rising, fueled by strong demand and a tight supply of available properties, a pair of reports Tuesday showed. The Standard & Poor’s/Case-Shiller 20-city home price index climbed 5.1 percent in the 12 months that ended in August – a level many economists view as more sustainable than the sharp double-digit gains at the start of 2014. For now, homes in tech hubs with a high concentration of good-paying jobs appear to be the main beneficiaries of rising prices. S&P reported that San Francisco and Denver both enjoyed a 10.7 percent year-over-year jump in home values, the largest of any city. Portland, Oregon’s annual gain of 9.4 percent was the third-largest. “Prices are rising the fastest in markets where job growth and net migration are the strongest and inventories are the tightest,” said Mark Vitner, an economist at Wells Fargo Securities. Full Story… http://abcnews.go.com/Business/wireStory/strong-sales-lift-us-home-prices-51-percent-34759996

* Housing Recovery to Pick Up Steam in 2016, but Challenges Remain. Steady employment and economic growth, pent-up demand, affordable home prices and attractive mortgage rates will keep the housing market on a gradual upward trend in 2016. However, persistent headwinds related to shortages and availability of lots and labor, along with rising material prices are impeding a more robust recovery. “This recovery is all about jobs,” said NAHB Chief Economist David Crowe. The good news, Crowe added, is that total U.S. employment of 142 million is now well above the previous peak of 138 million that occurred in 2008. Meanwhile, home equity has nearly doubled since 2011 and now stands at $12.5 trillion. The NAHB is projecting 719,000 single-family starts in 2015, up 11 percent from 647,000 units produced last year. Single-family production is projected to increase an additional 27 percent in 2016 to 914,000 units. Full Story… http://www.nahb.org/en/news-and-publications/Press-Releases/2015/october/housing-recovery-to-pick-up-steam-in-2016-but-challenges-remain.aspx

* Revised 2015 Origination Totals Equal Good News For Mortgage Lender. The mortgage market is still showing subtle signs of strength, beating original expectations for the year. For starters, the $253 billion in purchase originations in the second quarter of this year represents the strongest single quarter for industry originations since 3Q07. The Mortgage Bankers Association (MBA) recently forecasted a 7% increase in mortgage originations in 2015, growing to $1.19 trillion, with purchase originations rising 15% to $731 billion in 2015, and refinance originations decreasing 3% to $457 billion. As for next year, during a press conference at its annual meeting in San Diego, the MBA said it expects a 10% increase in purchase mortgage originations next year compared to 2015. Full Story… http://www.housingwire.com/articles/35494-revised-2015-origination-totals-equal-good-news-for-lenders

If you want to have a conversation about the local market contact us at mmarlahan@bhhsnw.com or 360-907-7707.

Michelle Marlahan & Heidi Gowing

http://www.bellacasateam.com

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About clarkcountyhousetalk

Bella Casa Team is a Real Estate group that specializes in Residential Real Estate. They want home buyers and sellers to be informed so they can make the best choice. It is so important to educate the public, especially during this unstable and unprecedented time in the Real Estate!
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