Where Are House Prices Headed?

by The KCM Crew on November 5, 2012

 

We are often asked where we think home prices are headed over the next year. Recently, several groups have stepped forward and given their projections as to what level of appreciation we can expect by the end of 2013. Here is what they said:

Demand Institute Study: 1.75% appreciation

Urban Land Institute: 2%

Home Price Expectation Survey: 2.44%

National Assoc of Business Economists: 2.8%

Wall Street Journal’s Survey of Economists: 3.25%

All five groups are calling for home values to rise through the end of next year. However, none are projecting that we will hit historic annual appreciation levels (3.6%) that existed prior to the housing bubble.

If you are thinking of buying a home in Westport MA visit www.DistinctiveHomes-NE.com for a free list of homes for sale in Westport MA.

If you are thinking of selling your home contact me for a FREE Current Market Analysis and to learn about our Market Plan to get your home SOLD!

Noemi Cardoso
Local Office. Local Agents. Local Knowledge.
William Raveis Real Estate
911 Main Rd - Westport MA 02790
Cell: 508-558-1945
www.DistinctiveHomes-NE.com
Noemi.Cardoso@raveis.com

KCM’s Harney Quoted by U.S. News and World Report

Posted: 22 Oct 2012 04:00 AM PDT

U.S. News & World Report last week ran an article on housing in the United States titled, Is the Housing Market Finally Rebounding? In the article, KCM‘s founder and cheif content creator, Steve Harney, was quoted extensively. As we have been reporting, the housing recovery will come in two stages:

 

1.    Sales will increase absorbing the excess inventory available.

2.    Prices will recover once inventory levels decrease

U.S. News & World Report quoted Steve on both issues.

SALES

“The first phase of the sales recovery is just beginning, he says. Houses are relatively cheap and people are feeling better about their economic prospects. They’re consuming excess supply that has weighed down the market for years.

"In a down market, there’s an overabundance of supply and there’s not enough demand. The recovery means that the demand and supply are getting toward more normal numbers,” Harney says. “In the past few years, the demand was down because there were so many questions about the economy.”

PRICES 

“Most of the country is doing very well, but the Northeast still has to work through some shadow inventory,” Harney says.”
 

If you are thinking of buying a home in Westport MA visit www.DistinctiveHomes-NE.com for a free list of homes for sale in Westport MA.

If you are thinking of selling your home contact me for a FREE Current Market Analysis and to learn about our Market Plan to get your home SOLD!

Noemi Cardoso

RE/MAX Welcome Home

Cell: 508-558-1945
Home Office (Westport) 774-264-9085
www.DistinctiveHomes-NE.com
noemi@DistinctiveHomes-NE.com

House Prices: Looking for the Bottom? We May Be There

by The KCM Crew on October 15, 2012

With sales and prices increasing in most regions of the country, it looks as though housing recovery is in full swing. There are more and more housing analysts declaring that we have turned the corner. A recent article on money-rates.com explains that now may be the time to act if you are thinking of purchasing a home.

“Right now, conditions for buyers are exceptionally good, because current mortgage rates are at record low levels, and housing prices are still well off their peaks.Already though, recent numbers indicate that housing prices are starting to move. If this continues, mortgage rates might follow. In particular, if lower-end housing prices are now making the strongest gains, people looking to enter the housing market for the first time should prepare to act.”

Others Are Also Calling a Bottom

In a Chicago Sun Times article, co-creator of the Case-Shiller home price index Robert Shiller agreed saying that, even though there are still questions in the overall economy, “it’s a good time to buy a house”.

Ivy Zelman, chief executive at research firm Zelman & Associates, has also said:

“[Housing] is turning positive and we see the data reflecting that.”

Writing in the Financial Times, Roger Altman, former deputy Treasury secretary, said: 

“A turn in the [housing] market is occurring now and it should become a boom by 2015.”

And Jamie Dimon says the U..S housing market has “turned the corner” as JPMorgan Chase and Wells Fargo, the two biggest US Banks have seen a surge in mortgage demand. He also warned that interest rates would “probably” rise “sometime in 2013”.

What Does That Mean to You?

If you have been waiting for the bottom in real estate prices, it seems your time may have arrived. As the Money-Rate article concluded:

“The housing market may be better off than people know. As many found out during the housing boom, waiting until everyone knows the market is healthy before you buy can be an expensive proposition.”

If you are thinking of buying a home in Westport MA visit www.DistinctiveHomes-NE.com for a free list of homes for sale in Westport MA.

If you are thinking of selling your home contact me for a FREE Current Market Analysis and to learn about our Market Plan to get your home SOLD!

Noemi Cardoso

RE/MAX Welcome Home

Cell: 508-558-1945
Home Office (Westport) 774-264-9085
www.DistinctiveHomes-NE.com
noemi@DistinctiveHomes-NE.com

 

News Flash: Lenders Are Busy

by Dean Hartman on June 14, 2012

As an industry, we are short appraisers, loan officers, processors, underwriters and closers and things are getting backed up.

With rates at (or near) all-time lows and some of the government initiatives kicking into gear (HARP 2.0 and FHA Streamline, as examples) refinances are plentiful. At the same time, sellers have become more realistic in pricing expectations and buyers are jumping off the fence. What sounds like great news is truly not-so-great.

Normal turnaround times are being strained. Appraisals are delayed. The number of files has processing and underwriting unable to keep up. Answers about getting project approvals are being set aside.

What does a lender do?

•  Do you hire more people with the notion that you can just lay them off if rates go up?
• What about the time, energy and expense involved in training them if this need is short-lived?
• Do you work the current staff so hard that they burn out or can’t deliver the customer attention you would like?

Or do you come clean and reset customer and referral partner expectations? While we all do value our clients, we need them to understand that volume is exceeding capacity. At the same time, many things are just plain outside the direct control of your lender.

My advice is to gather as much of the required documentation as you possibly can before your mortgage application. Make your file an “easy” one to get through. Talk to your loan officer about expectations and the best way to communicate so disappointments are minor. Buying/selling a home is emotional and pressure-filled for sure. And now, we have time constraints to add to that.

Preparation and planning (along with some patience) can go a long way.

Noemi Cardoso
RE/MAX Welcome Home
Serving Westport, Dartmouth, Fall River, MA
Little Compton,Tiverton, RI and surrounding towns.
www.DistinctiveHomes-NE.com