Feb 25, 2016 | Financial Reports
Home prices rose slightly in December according to S&P Case-Shiller Home Price Indices released Tuesday. According to the S&P Case-Shiller 20-City Home Price Index, which covers cities representing all nine US Census divisions, home prices rose 5.40 percent year-over-year in December as compared to November’s reading of 5.20 percent.
December’s year-over-year home price increases were led by Portland Oregon at 11.40 percent, San Francisco, California at 10.30 percent and Denver, Colorado with a year-over-year reading of 10.20 percent. 10 cities reported higher home prices while eight cities reported lower home prices and year-over-year home prices were unchanged for two cities.
Year-over-year national home prices equaled winter 2007 home price levels, The S&P Case-Shiller 20-City Home Price Index has recovered by 36.30 percent since March 2012. Phoenix, Arizona posted its 12th consecutive month of home price gains for the longest streak of price gains in 2015.
Home Price Growth Surpasses Core Inflation Rate
David M. Blitzer, chairman of the Index Committee at S&P Dow Jones Indices, said that while home prices continue to rise, they are rising at a slower pace. All but one city (Washington, D.C.) posted home price gains higher than the core inflation rate of 2.20 percent. Home prices rising faster than inflation is positive for home sellers, but would-be-buyers may sit on the sidelines due to concerns about affordability. On the plus side, job markets are strong and mortgage rates remain low, which will likely encourage more first-time and moderate income buyers to enter the market.
S&P Case-Shiller Month-to-Month Readings
After seasonal adjustments, both the Case-Shiller 10 and 20 City home price indices posted a month-to-month gain of 0.80 percent. 19 of 20 cities posted month-to-month gains after seasonal adjustments. Factors contributing to higher home prices include high demand for homes coupled with a short supply of available homes. Home builders are ramping up construction, which should ease demand and help stabilize prices.
In related news, The National Association of Realtors reported that January sales of existing homes rose to 5.47 million sales on an annual basis as compared to expectations of 5.30 million sales and December’s reading of 5.45 million sales. January’s reading was 11 percent higher year-over-year and indicated that homes are selling in spite of rapidly rising prices in many areas.
Analysts said that the shortage of homes is causing an imbalance in market conditions; currently there is a four month supply of available homes as compared to an average six month supply of available homes. There have been only three instances when home supplies were lower in the past 16 years.
Feb 24, 2016 | Home Financing Tips
Many homeowners are struggling to keep up with their mortgage payments on a monthly basis, and it can often seem like there are limited options for remedying the situation. If you haven’t heard of HARP refinancing and you’re a homeowner who’s looking for a lower interest rate, this may be the right solution to your payment woes. Instead of letting the opportunity blow by, here’s all you need to know before this option ends in 2016.
The Details On HARP Refinancing
Known as HARP, the Home Affordable Refinance Program was created in 2009 following the economic crash that was brought on by the housing crisis. In the wake of hard economic times, the program was devised as a means of streamlining the process for those who couldn’t refinance their mortgage. Instead of reliable homeowners being stuck with a rate because they don’t qualify for refinancing, HARP enables them to acquire lower interest rates.
Some Of The Requirements For HARP
In order for you to be able to apply for a HARP refinancing, you must have a mortgage owned by Fannie Mae or Freddie Mac that was provided to you on or before May 21, 2009. While you’ll want to check with your mortgage holder to determine if you are eligible for this refinancing option, you’ll have to be up-to-date on your mortgage payments with a loan-to-value ratio that is above 80%. For more information on a HARP refinancing, you can visit their website for all the details.
Carefully Consider The Closing Costs
While refinancing your mortgage and acquiring a lower interest rate may sound like instant money savings, it’s important to find a lender that can offer HARP without any closing costs, or at least costs low enough they’ll balance out in your favor. HARP refinancing can certainly be an option worth serious consideration, but if you have lowered interest rates and a high closing cost, it’s possible that you will not be able to re-coup the extra money you’re paying.
HARP refinancing is set to end in 2016, but if you’re a homeowner who is looking to refinance you may want to look into this program for saving money on your mortgage. By familiarizing yourself with the requirements and determining if the closing costs balance out, you may have an easier monthly payment on your hands. If you are paying off your home but are interested in what’s available on the market, you may want to contact your local mortgage professional for more information.
Feb 24, 2016 | Around The Home
The home is a private space that most people want to protect and keep secure, but the cost of a security system can come with a considerable price tag. If you’re interested in keeping your home safe without contacting the security companies, here are a few ways you can ensure its sanctity.
Keep Your Property Maintained
Straight from a burglar’s mouth, the exterior appearance of a home can say a lot about whether or not a house is a sure bet for a break in. A house where there is clutter and overgrown trees may equate to an unaware owner, but if the home’s exterior is well-maintained and the grass is cut, there’s a good chance a burglar may move on to a more obvious target.
Purchase Some Long Rods
While it might seem like a long rod is something you use on someone who has already breached your property, these devices can actually be used for securing the access points of your home. If you have sliding doors or windows, insert the long rod into their track to prevent a possible intruder from tampering with them and gaining access from outside
Use A Lighting Timer
The use of a lighting timer to scare away a potential thief might seem like the oldest trick in the book, but most intruders who want to get into a home will look for the easiest option so it can actually do the trick. By using a timer that will turn your exterior lights on and off at different times of the day, they can easily safeguard your home when you’re not there to do so.
Get A Guard Dog
A furry friend is enough of a treat on its own, but a barking dog can also serve as one of the biggest detractors when it comes to a criminal who’s casing a home. There are few things that will alarm an otherwise quiet community like a barking dog, so an animal that can protect your turf may be an ideal security system without any required installation.
A security system can be pricy to install and a burden to maintain, but there are some simple solutions to keeping your home secure, from purchasing a family pet to property maintenance. If you’re considering the costs of a home and are looking into a purchasing one in the near future, you may want to contact our local real estate professionals for more information.
Feb 23, 2016 | Home Buyer Tips
With the excitement involved in moving into a new home and all of the things that need to be done, it can be easy to forget a few important things before you load up the moving van. If the day of departure is drawing closer and you’re mulling over the final details, here are some items you may want to check off the list first.
Install A New Lock
One of the most important aspects of home ownership is the feeling of security it automatically provides, so you’ll want to change out the locks on the doors before you embark on the big move. As soon as you’ve received the keys to your new home, contact a locksmith who will be able to do the dirty work for you or, if time permits, you may want to take on this task on your own and save a little bit of money in the process.
Do A Quick Clean
With so many boxes to unpack and items to organize, the concept of cleaning the house you’ve just moved into might not be very appealing; however, this can be a necessary step in making you and your family feel more at home. It doesn’t have to be the kind of cleanup that will take 10 hours, but a quick dusting and wiping of cabinets and appliances, as well as a quick sweep and vacuum of the floor, may change the way you feel about your new home.
If Time Permits, Paint!
If the walls of your new house happen to be in immaculate shape, you can probably avoid paint; however, a prime up of the walls can add a lot to the sparkle of your new home and may make it feel like yours much sooner. Instead of going for boldness or deciding on a decorating scheme right away, choose a neutral color that will instantly brighten your room. If the walls are in particularly bad shape, you may even want to contact a professional who will be happy to sand and spackle away.
Moving into a new home is undoubtedly a time of great excitement, but there are some things you should do before you make yourself comfortable in your new place. If you’re curious about what’s available on the market and would like to know your options, you may want to contact one of our local real estate professionals for more information.
Feb 22, 2016 | Financial Reports
Last week’s economic news included the NAHB Housing Market Index, Commerce Department releases on housing starts and building permits and minutes of the most recent meeting of the Fed’s FOMC meeting.
Home Builder Confidence Falls in February
According to the National Association of Home Builders (NAHB), home builders had less confidence in market conditions for newly built homes. The reading for February was three points lower at 58 than the upwardly adjusted reading for January. Analysts had expected a reading of 59; any reading over 50 indicates that more builders are confident about conditions than those who are not.
Builder confidence was mixed for the three components used to calculate the NAHB Wells Fargo Housing Market Index reading. Confidence in current market conditions was lower by three points to 65, but builder confidence in future market conditions rose one point to 65. The reading for buyer foot traffic in new housing developments hasn’t topped the benchmark of 50 since the peak of the housing bubble; in February, the reading for buyer foot traffic dropped five points to 39.
NAHB Chief Economist David Crowe said that builder confidence is likely to improve in 2016 due to low mortgage rates, stable job markets and pent-up demand for homes. Mr. Crowe also said that shortages of available land and labor were concerns for builders.
Housing Starts,Building Permits Issued Lower
Commerce Department reports on housing starts and building permits issued also showed lower readings for January than for December. Housing starts reached 1.099 million starts in January as compared to an expected reading of 1.165 million starts and December’s reading of 1.145 million starts. Winter weather likely contributed to fewer housing starts.
Fewer building permits were issued in January than in December. January’s reading was 1.202 million permits issued as compared to December’s reading of 1.143 million building permits issued. Building permits issued for single family homes dropped by 1.60 percent to 731,000 permits issued. While lower month-to-month readings for current conditions may seem discouraging, the pace of single-family home building grew steadily during 2015 and is expected to do likewise in 2016.
FOMC Minutes: Policy Makers Eye Economic Developments
Minutes of January’s Federal Open Market Committee meeting indicate that members will closely monitor developing economic conditions as part of any future decision to raise the target federal funds rate from its current range of 0.250 to 0.500 percent. The Fed raised this rate in December, but did not increase the federal funds rate at its January meeting. Fed Chair Janet Yellen emphasized that decisions to raise the federal funds rate were not on a pre-determined course and that developing economic trends would continue to inform FOMC decisions.
Mortgage Rates and Weekly Jobless Claims
Average rates for fixed rate mortgages were unchanged last week according to Freddie Mac. The average rate for a 30-year fixed rate mortgage was 3.65 percent and the average rate for a 15-year fixed rate mortgage was 2.95 percent with Discount points averaged 0.50 percent for both types of fixed rate mortgages. The average rate for a 5/1 adjustable rate mortgage rose by two basis points to 2.85 percent with average discount points at 0.40 percent.
Analysts have consistently cited stronger labor markets as a factor driving U.S. housing markets. New weekly jobless claims dropped last week and added evidence of expanding job markets. 262,000 new jobless claims were filed last week; the reading was lower than expectations of 275,000 new claims and the prior week’s reading of 269,000 new jobless claims. Stable job markets are important to would-be home buyers; as labor conditions improve more buyers are likely to enter the housing market.
What‘s Ahead
This week’s scheduled economic news includes reports on sales of new and pre-owned homes and the Case-Shiller 10 and 20 City Home Price Indices. Reports on consumer sentiment and inflation will also be released.
