Showing posts with label Housing Trends. Show all posts
Showing posts with label Housing Trends. Show all posts
Saturday, November 9, 2013
Sunday, August 11, 2013
Experts Predict Annual Home Value Appreciation to Exceed 6 Percent in 2013
More than 100 real estate and economic experts predict home values
will end 2013 up 6.7 percent from the end of 2012, as the housing market
recovery continues to widen and accelerate, according to the latest
Zillow Home Price Expectations Survey. A majority of the panel also said
that while rising mortgage rates don’t pose a threat if they stay
within the 4 to 5 percent range, they could derail the recovery if they
reach 6 percent or higher.
The survey of 106 economists, real estate experts and investment and market strategists was sponsored by leading real estate information marketplace Zillow, Inc. and is conducted quarterly by Pulsenomics LLC. Panelists said they expected median U.S. home values to rise to $167,490 by the end of this year, up from $156,900 at the end of 2012 and $161,100 currently. Based on current expectations for home value appreciation over the next five years, the panelists on average predicted that U.S. home values could approach new record highs by the end of 2017, coming very close to the previous peak level of $194,600 set in May 2007.
The expectations for a 6.7 percent year-over-year increase in home values was up significantly from expectations of a 5.4 percent bump predicted the last time the survey was conducted.
Panelists expect annual home value appreciation rates this year to end on a strong note, before slowing considerably from 2014 through 2017. Panelists said they expected appreciation rates to slow to roughly 4.4 percent in 2014, on average, unchanged from the previous survey. This rate is expected to slow further to 3.6 percent, 3.5 percent and 3.4 percent in 2015, 2016 and 2017, respectively. Cumulatively, survey respondents predicted home values to rise 23.7 percent through 2017, on average, up from 22.3 percent in the last survey.
“Short-term expectations for home value appreciation through the end
of this year are consistent with a nationwide housing market recovery
that is both strengthening and widening, but still coping with high
levels of negative equity, high demand and low inventory. Combined,
these factors will continue putting upward pressure on home values for
the next few months,” said Zillow Senior Economist Dr. Svenja Gudell.
“But the days are numbered for these kinds of market dynamics, as
investors begin to pull out of some markets, mortgage interest rates
rise and more inventory becomes available. Over the next few years,
these trends will help the market stabilize and will bring home value
appreciation more in line with historic norms. As long as mortgage
interest rates don’t rise too far and too fast, most markets should be
able to absorb these changing dynamics while still remaining healthy.”
Panelists were also asked if recent increases in mortgage rates presented a significant threat to the ongoing housing market recovery. Among those expressing an opinion, 88 percent said no. Those panelists who responded “no” or “not sure” were then asked what minimum mortgage interest rate (on a 30-year, fixed-rate mortgage) would pose a significant threat to the housing recovery. Among these respondents, 61 percent said interest rates would have to rise to at least 6 percent to create a significant threat.
For full survey results and graphics, please visit Zillow Real Estate Research or www.pulsenomics.com.
The survey of 106 economists, real estate experts and investment and market strategists was sponsored by leading real estate information marketplace Zillow, Inc. and is conducted quarterly by Pulsenomics LLC. Panelists said they expected median U.S. home values to rise to $167,490 by the end of this year, up from $156,900 at the end of 2012 and $161,100 currently. Based on current expectations for home value appreciation over the next five years, the panelists on average predicted that U.S. home values could approach new record highs by the end of 2017, coming very close to the previous peak level of $194,600 set in May 2007.
The expectations for a 6.7 percent year-over-year increase in home values was up significantly from expectations of a 5.4 percent bump predicted the last time the survey was conducted.
Panelists expect annual home value appreciation rates this year to end on a strong note, before slowing considerably from 2014 through 2017. Panelists said they expected appreciation rates to slow to roughly 4.4 percent in 2014, on average, unchanged from the previous survey. This rate is expected to slow further to 3.6 percent, 3.5 percent and 3.4 percent in 2015, 2016 and 2017, respectively. Cumulatively, survey respondents predicted home values to rise 23.7 percent through 2017, on average, up from 22.3 percent in the last survey.
“Short-term expectations for home value appreciation through the end
of this year are consistent with a nationwide housing market recovery
that is both strengthening and widening, but still coping with high
levels of negative equity, high demand and low inventory. Combined,
these factors will continue putting upward pressure on home values for
the next few months,” said Zillow Senior Economist Dr. Svenja Gudell.
“But the days are numbered for these kinds of market dynamics, as
investors begin to pull out of some markets, mortgage interest rates
rise and more inventory becomes available. Over the next few years,
these trends will help the market stabilize and will bring home value
appreciation more in line with historic norms. As long as mortgage
interest rates don’t rise too far and too fast, most markets should be
able to absorb these changing dynamics while still remaining healthy.”Panelists were also asked if recent increases in mortgage rates presented a significant threat to the ongoing housing market recovery. Among those expressing an opinion, 88 percent said no. Those panelists who responded “no” or “not sure” were then asked what minimum mortgage interest rate (on a 30-year, fixed-rate mortgage) would pose a significant threat to the housing recovery. Among these respondents, 61 percent said interest rates would have to rise to at least 6 percent to create a significant threat.
For full survey results and graphics, please visit Zillow Real Estate Research or www.pulsenomics.com.
Saturday, July 20, 2013
Home remodeling: A slightly better value in 2013
Remodeling for some its like a pastime, and for others it strictly a way to increase the value of their property….no matter what the reason, 2013 is a better year to be doing it….
Friday, July 12, 2013
Listing of the Week: Howard Hughes' Tahoe retreat
Nevada is full of some really interesting pieces of real estate. This one is certainly at the top of the lists. Another interesting fact or person people often forget is Howard Hughes. He had a major impact on the development of the northwest section of Las Vegas more commonly known as Summerlin. Trivia time: Where did the name Summerlin come from?
Give up? Howard Hughes mothers name.....
Sunday, June 30, 2013
Saturday, June 29, 2013
Thursday, May 23, 2013
The Las Vegas Housing Market 2013; A More Cautious Market Rebound?
This is an interesting article via the Real Estate website Trulia. Will the market, in its recovery, be more cautious or will there be a lot of speculators?
http://trends.truliablog.com/2013/05/trulia-bubble-watch/
Monday, May 20, 2013
The Las Vegas Housing Market 2013
We’ve all seen the dramatic real
estate bubble roller coaster and its specific effects on the Las Vegas housing
market, which grew exponentially during the boom, and came crashing down
equally hard throughout the bust. But
where are property values now and where might they be headed in the
future? Let’s first examine some data
for the national big picture, before zeroing back in on the Las Vegas housing
market.
Experts Believe Real Estate has Reached a Major Turning Point
Beginning with the 3rd
and 4th quarter of 2011, a modest but distinct increase in property
prices and sales foreshadowed a continuing upward momentum. Since October 2012 the real estate market has
shown steady progress. According to the Wall Street Journal in April 2012, the Real Estate market showed all the signs
of healthy recovery including:
- Increased housing starts
- Rebounding sales for existing homes
- Renewed interest in home-builders from Wall St investors
Real Estate Investment Outlook Highly Favorable in 2013
All the upward trends as of 4th quarter 2012 continued into 2013. In the Las Vegas housing market, the strong
upsurge in sales has significantly impacted the number of vacant homes
available, increasing tenants’ demand for rental homes, which in turn triggers
greater interest from investors looking for income property.
Top Housing Markets Trending Upward
From February 2013 to February
2013 home values across the U.S. rose 5.1% according to Zillow data. In 10 of the 30 largest housing markets with
Zillow data records, home prices rose over 13%, and in five of those markets
prices actually rose more than 20%! In
many of these markets unemployment levels have decreased and construction
employment has risen – both indicators of an improved economy.
The Las Vegas Housing Market is Second on Hot Housing Markets List
In the most recent quarter
alone, home values here rose over 7%.
Given the deep plunge (59%!) that prices took between the peak in 1st
quarter 2006 to the bottom in 3rd quarter 2012, values have
not returned to pre-recession levels.
This means there is ample affordability in the market, where current
average home value is $138,800. With
growth of 7.5% expected from 1st quarter 2013 to 1st
quarter 2014 the home or income property you purchase today makes a smart
investment for the future. Retreating
unemployment rates in the market also bode well for the outlook on real estate.
The
Las Vegas housing market, while full of new bright spots, can prove challenging
for both Buyers and Sellers. The amount
of activity requires expert guidance from an experienced Realtor in order to
navigate bidding wars, appraisal obstacles, proper pricing guidelines and many
other key components for successful transactions. With the right guidance and assistance,
however, there is every reason to move forward in marketing or purchasing in
the current market.
Whether you’re thinking of buying or selling a Las Vegas
home, now is the time to stop sitting on the sidelines. After reviewing,
the case is clear that the positive signs outweigh the negatives.
Call or email
Eric D'Richards today and receive a free customized Market Analysis of your
home and Always Look for the Silver
Lining!!
Tuesday, May 14, 2013
Foreclosure activity for Las Vegas Homes sends mixed signals
In April 2013 national foreclosure activity fell to its lowest level since 2007! But before breaking out the champagne, lets
consider other indicators in the Las Vegas homes market, as well as the nation
and see if this good news could be a “false positive” reading of conditions
overall.
In 26 states where foreclosures go through the
courts, the activity in foreclosures actually increased. States where the push for new laws to protect
homeowners dramatically slowed foreclosures now see lender processes coming
back up to speed, resulting in a fresh increase of foreclosure activity.
But is the inevitable continuation of the
foreclosure cycle all bad? Not
necessarily. According to RealtyTrac, Las Vegas home foreclosures as of March 2013 still ranked in the top
ten for the nation. However, the same report also cited, foreclosure rates down
59% from the year prior for the state of Nevada.
·
For buyers, foreclosure properties
often come in poor condition, making risky as well as costly investments for
new homeowners
·
For sellers, the advantage of no
longer competing against a glut of homes on the market is clear.
·
For buyers, the more favorable
conditions for sellers as well as continued release of foreclosure properties
provides new inventories to choose from.
·
For sellers, many Las Vegas homes
remain underwater, making short sale the best
option. On the bright side, as banks see less
dramatic losses as their foreclosure sale prices rise, they become more willing
to negotiate with homeowners on short sales
For those buyers waiting for the right time to buy,
that moment has arrived. For sellers,
there is certainly less reason to hesitate in deciding to put their home on the
market. The proverbial stars have moved
into alignment.
You needn’t (and shouldn’t) take
the plunge alone. Your realtor has the
most up to date listing information, and sales tools for navigating current
market conditions. The Las Vegas homes
market has seen a 30% increase in pricing over the past year, making it more
important than ever to have an expert help price your home for sale or
negotiate your purchase successfully.
According to the Greater Las Vegas
Association of Realtors the
median price of a single family home is still half of what it was at the peak
in 2006. The prevailing wisdom also
advises not to expect a glut of bank-owned shadow inventory to flood the market
and deflate prices. Instead, banks are
expected to implement a strategic release cycle that allows pricing to remain
stable.
Whether
you’re thinking of buying or selling a Las Vegas home, now is the time to stop
sitting on the sidelines. After
reviewing, the case is clear that the positive signs outweigh the negatives.
Call or email Eric D'Richards today and receive a free customized Market Analysis of your home and Always Look for the Silver Lining!!
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