Skip to main content

Tight Supply Driving Home Prices Up but Don’t Expect Another Boom unboxing-houseThe low housing inventory cont

unboxing-houseThe low housing inventory continues to drive developments in the market, which will ultimately lead to more house price appreciation, according to the Q4 Housing Market Analyst released by Capital Economics on Thursday.
The tight housing supply amid recovering demand has constrained sales and put upward pressure on housing prices. But don’t expect another house price boom, the report said.
“With the months’ supply of homes having been under five since May of this year, it is not surprising that house price growth is picking up,” Capital stated in the report. “But there are a sizeable number of vacant homes being held off the market. As these are gradually listed for sale or rent, that will ease supply conditions to some extent. And with banks not set to repeat the rapid credit loosening of the mid-2000s, another house price boom will be avoided.”
The lack of inventory is holding back existing home sales, and Capital Economics said it does not expect those conditions to improve in the next couple of years. But slow existing home sales will mean good news for new home sales, since builders are able to complete their homes and sell them more quickly—and as a result, they are increasing production of new homes. In November, housing starts for single-family homes increased to their highest level in seven years, and as a result of the increase in production, new home sales are expected to increase substantially.
The expected Fed rate hike occurred on Wednesday up to a range of 1/4 to 1/2 amid a positive jobs report that showed an average monthly job gain of about 218,000 for the three-month period from September to November. Despite the Fed raising the federal funds target rate, housing affordability is expected to remain favorable for some time, according to Capital.
“For one, mortgage interest rates will stay sub-5 percent until at least early-to-mid 2017,” the report stated. “Moreover, earnings growth is also finally set to rise. So although mortgage payments as a share of income will go up, they will remain under the historically normal level of 20 percent over the forecast horizon. An increase in earnings will also ensure that homes do not become overvalued.”



Popular posts from this blog

4 Financing Tips For Your Rental Property! Team Thayer #realestate #realestateinvestor #investor #housing #market #rentals #mortgage #news #oregon

With the  spring real estate market  firing on all cylinders, it’s no wonder we are seeing investors come out in record numbers.  Real estate exit strategies  ranging from  wholesale deals  to full rehabs  have become incredibly attractive in today’s housing industry. However, one strategy in particular looks to be in a great place: buy and hold  rental property . Cash flow opportunities are through the roof, as rents are soaring in nearly every city from  San Diego  to  New York . Now may be one of the best times ever to acquire a rental property. However, those that have yet to do so should mind due diligence and consider what they are getting into before they make the jump. While there are a myriad of things potential landlords should consider before financing their first rental property, I highly recommend starting with the following four: Rental Property Consideration 1: The Numbers Prospective rental property buyers must run the numbers to see how much they can afford
Read more

Team Thayer Real Estate House Flipping Traps! #flippinghouses #eugeneoregon #oregon #housing #market #realestate

If you’ve got several leads waiting to turn into potential deals, you can’t wait for one to suddenly come knocking at your door. Successful real estate house flippers have one trait in common: they place an emphasis on proper planning. Once you’ve secured a deal, you must decide what kind of rehab you will perform. Will you conduct a few simple cosmetic upgrades (like these  10 rehab projects you finish in one weekend )? Or, is the home nice enough to sell after  an easy prehab ? Are there structural damages that will require you to carry out more major renovations? Will you focus on implementing environmentally friendly renovations  – also known as “greenhabbing” – so that you  qualify for certain tax benefits ? Once you’ve determined your strategy, it is important to ask yourself these specific questions before diving into the construction action: What are the current market conditions in my area? What does my ideal buyer look like? Does my marketing campaign target my ide
Read more

UFC 227 play-by-play and live results #UFC #MMA #UFC227

LOS ANGELES – MMAjunkie is on scene and reporting live from today’s UFC 227 event, and you can join us for live play-by-play and official results beginning at 6:30 p.m. ET (3:30 p.m. PT). The event takes place at Staples Center in Los Angeles. The main card airs on pay-per-view following preliminary-card bouts on FX and UFC Fight Pass. In the main event, bantamweight champion T.J. Dillashaw (15-3 MMA, 11-3 UFC) rematches former champ and ex-teammate Cody Garbrandt (11-1 MMA, 6-1 UFC) for the title. In the co-feature, flyweight champion Demetrious Johnson (27-2-1 MMA, 15-1-1 UFC) has a rematch with Olympic gold medalist and former title challenger Henry Cejudo (12-2 MMA, 6-2 UFC). Follow along with our round-by-round updates and official results beginning at approximately 6:30 p.m. ET for the UFC Fight Pass prelims, 8 p.m. ET for the prelims on FX, and 10 p.m. ET for the main card on pay-per-view. To discuss the show, be sure to check out our  UFC 227 discussion thread . You can als
Read more