Skip to main content

Will Home Sales to Hit Highest Level Since 2006? Team Thayer Real Estate Advice #EugeneOrRealtor

Existing homes sales this year are expected to hit levels not seen since just after the peak, in 2006, driven by strong job growth, low interest rates and a gradual loosening of lending standards, according to the National Association of Realtors.
Lawrence Yun, chief economist at the realtor association, said in his mid-year forecast on Thursday that he expects home sales to end up around 5.3 million in 2015, a significant pick-up from 4.9 million sales in 2014.
Last year, economists also anticipated robust growth in the home sales, but were disappointed when a spike in interest rates early in the year and poor wage growth dampened the market.
Mr. Yun said that early results this year point to a pick-up in home sales, including sales in the first few months, foot traffic at homes on the market and strong job growth. Buyers who have been kept out of the market by low wages and strict lending standards are likely to start coming back.
“There is sizeable pent-up demand,” he said in an interview.
To be sure, the volume of sales Mr. Yun is anticipating remains well below recent high in 2005 when more than 7 million homes were sold. Mr. Yun said the market is likely a decade off from hitting those levels again. In 2006, sales fell to 6.5 million and since then have hovered around 5 million sales or fewer.
If interest rates or prices rise, making houses less affordable, that could hold back the volume of sales, which Mr. Yun said shows the need for more new-home construction.
Robert Dietz, vice president of tax and market analysis at the National Association of Home Builders, said that he anticipates that 2015 will be the first time during the recovery that the growth of single-family home starts will exceed apartment starts. That would be a significant shift for a recovery that has been driven by a boom in rental construction while single-family home construction has grown less robustly.
Still, Mr. Dietz said, new home construction will remain about half  of normal production levels. Homebuilders are being held back by the shortage of construction laborers, the difficulty of obtaining construction loans and the elusiveness of first-time home buyers, he said.

Popular posts from this blog

Grass Seed Video

When Will Bank Foreclosurews ‘Normalize’? Team Thayer #realestate #investor #housing #market #news #oregon

With much of the talk surrounding the housing market centered on “normalization” or returning to its pre-crisis state, one metric which the market is watching is the distressed sales share—the share of REO and short sales that comprise total residential home sales. For February 2016, the distressed sales share declined by 2.9 percentage points over-the-year (and 0.4 percentage points over-the month) down to 11 percent, according to  data released by CoreLogic  on Thursday. At their peak in January 2009, distressed sales accounted for nearly one-third of all residential home sales (32.4 percent) but has been declining steadily since then. By comparison, the pre-crisis share of distressed sales was typically around 2 percent; CoreLogic estimates that if the current rate of year-over-year decline continues, the distressed sales share will reach the “normal” pre-crisis level in slightly more than two years. “Prior to the housing crash, the distressed share of total...

Reverse Mortgage Foreclosure May Be At Increased Risk. Team Thayer #realestate #housing #market #foreclosure #Mortgage #news #oregon

San Francisco-based advocacy group  California Reinvestment Coalition  (CRC) has asked  HUD  to impose a moratorium on home equity conversion mortgage (HECM, or reverse mortgage) foreclosures by  CIT Group  and its subsidiary, Financial Freedom. CRC requested the moratorium based on new data it obtained from HUD in  the form of a fact sheet which shows that CIT Group/Financial Freedom were responsible for 39 percent of the 41,237 reverse mortgage foreclosures in the United States since April 2009 despite having an estimated market share of only 17 percent in the reverse mortgage market. Many of the reverse mortgage foreclosures that have occurred are “widow foreclosures,” or foreclosures that occur after the death of a non-borrowing spouse. These foreclosures are allowed to happen because some reverse mortgage originators name only the borrower on the reverse mortgage, which later allows the servicers to foreclose on the non-borrowing spouse. M...