Tuesday, June 12, 2012
South Florida cities among top U.S. home rental markets: report
Fort Lauderdale, West Palm Beach and Miami are among the top 50 markets for expected returns on rental properties, according to a survey from HomeVestors of America and Local Market Monitor. Fort Lauderdale ranked 12th on the list, followed by West Palm Beach at 19 and Miami at 28. “We think this is the best opportunity for investors to accumulate rentals in the last 30 years,” said HomeVestors Co-President David Hicks. The rental data was gathered in the second quarter of 2012, examining future relative returns of single-family homes. While Florida tied with Texas for the most cities of any state on the list, Local Market Monitor urged caution on the Sunshine State. “Overall, the Florida markets will be slow to recover because so many homes were sold as ‘investments’ and now sit empty,” Local Market Monitor President Ingo Winzer said. Miami’s rental market has seen a stark turnaround in years since the downturn, reaching 93 percent occupancy in March, according to the Downtown Development Authority. — Alexander Britell
Home prices going up???
More Americans are optimistic that home prices will inch up over the next year, with expectations that prices will rise at least 1.4 percent in that timeframe. That marks the highest amount ever recorded in Fannie Mae’s monthly National Housing Survey.
Thirty-four percent — also the highest ever recorded — of the 1,000 respondents in the May housing survey say they expect to see a boost in home prices in the next year. Forty-one percent say they think mortgage rates also will rise over the next year.
“Both indicators suggest the potential that consumers may consider moving off the sidelines to purchase a home,” according to the survey.
Survey respondents also say they expect rental prices to continue to edge up over next year, projecting a 4.1 percent increase in that period.
Still, a slowdown in the pace of new jobs and income growth is creating a plateau in consumer sentiment that might delay a full recovery in the housing market, according to Fannie Mae’s survey. Fifteen percent of those surveyed reported that their household income is significantly lower than it was 12 months ago, which marks a record low in the annual survey.
"Our May consumer data show that Americans are taking a 'wait and see' approach about buying or selling a home,” says Doug Duncan, Fannie Mae’s chief economist. “This is not surprising given their assessment that their income during the past 12 months and their personal financial expectation for the next 12 have leveled off. ... Current jobs data are reminiscent of the spring slowdown that continued into the summer months during the last two years. If this pattern continues, we do not expect to see any significant upturn in consumer sentiment during the summer and a meaningful housing recovery likely will be delayed once again."
Thirty-four percent — also the highest ever recorded — of the 1,000 respondents in the May housing survey say they expect to see a boost in home prices in the next year. Forty-one percent say they think mortgage rates also will rise over the next year.
“Both indicators suggest the potential that consumers may consider moving off the sidelines to purchase a home,” according to the survey.
Survey respondents also say they expect rental prices to continue to edge up over next year, projecting a 4.1 percent increase in that period.
Still, a slowdown in the pace of new jobs and income growth is creating a plateau in consumer sentiment that might delay a full recovery in the housing market, according to Fannie Mae’s survey. Fifteen percent of those surveyed reported that their household income is significantly lower than it was 12 months ago, which marks a record low in the annual survey.
"Our May consumer data show that Americans are taking a 'wait and see' approach about buying or selling a home,” says Doug Duncan, Fannie Mae’s chief economist. “This is not surprising given their assessment that their income during the past 12 months and their personal financial expectation for the next 12 have leveled off. ... Current jobs data are reminiscent of the spring slowdown that continued into the summer months during the last two years. If this pattern continues, we do not expect to see any significant upturn in consumer sentiment during the summer and a meaningful housing recovery likely will be delayed once again."
Sunday, June 10, 2012
Home prices up for 2nd straight month in April 2012
U.S. home prices rose on both an annual and monthly basis for the second month in a row in April, according to a home-price index compiled by data aggregator CoreLogic.
Prices increased 1.1 percent in April compared to April 2011 and 2.2 percent compared to revised figures for March. When distressed sales -- short sales and real estate owned (REO) properties -- are excluded, prices jumped 1.9 percent year over year and 2.6 percent month to month.
With this report, CoreLogic also introduced a pending home price index based on recent prices changes gleaned from multiple listing service data. That index forecasts that home prices rose another 2 percent between April and May, CoreLogic said.
Anand Nallathambi, CoreLogic's president and CEO, said in a statement that the increases are a sign "the housing market is stabilizing."
"Home prices are responding to a restricted supply that will likely exist for some time to come -- an optimistic sign for the future of our industry."
Mark Fleming, CoreLogic's chief economist, said in a statement that, when distressed sales are excluded, home prices in March and April improved at a rate not seen since late 2006 and faster than in 2010, when a federal tax credit program boosted sales.
"Nationally, the supply of homes in current inventory is down to 6.5 months, a level not seen in more than five years, in part driven by the 'locked in' position of so many homeowners in negative equity," he said.
Of the 100 most populous metro areas in the country, 44 saw year-over-year price declines in April, down 10 from March, CoreLogic said. Six of the 10 largest markets saw price increases with the Phoenix metro leading the pack.
10 most populous metro markets, ranked by percent price change in April:
Core-based statistical area (CBSA)
Single-family change from year ago
Excluding distressed
Chicago-Joliet-Naperville, Ill.
-7.3%
-1.1%
Atlanta-Sandy Springs-Marietta, Ga.
-5.3%
1.9%
Riverside-San Bernardino-Ontario, Calif.
-1.4%
0.3%
Los Angeles-Long Beach-Glendale, Calif.
-0.5%
1.2%
New York-White Plains-Wayne, N.Y.-N.J.
1.3%
1.7%
Philadelphia, Pa.
1.7%
3.0%
Houston-Sugar Land-Baytown, Texas
2.0%
3.6%
Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.Va.
2.8%
3.1%
Dallas-Plano-Irving, Texas
3.5%
5.4%
Phoenix-Mesa-Glendale, Ariz.
11.3%
7.0%
Prices increased 1.1 percent in April compared to April 2011 and 2.2 percent compared to revised figures for March. When distressed sales -- short sales and real estate owned (REO) properties -- are excluded, prices jumped 1.9 percent year over year and 2.6 percent month to month.
With this report, CoreLogic also introduced a pending home price index based on recent prices changes gleaned from multiple listing service data. That index forecasts that home prices rose another 2 percent between April and May, CoreLogic said.
Anand Nallathambi, CoreLogic's president and CEO, said in a statement that the increases are a sign "the housing market is stabilizing."
"Home prices are responding to a restricted supply that will likely exist for some time to come -- an optimistic sign for the future of our industry."
Mark Fleming, CoreLogic's chief economist, said in a statement that, when distressed sales are excluded, home prices in March and April improved at a rate not seen since late 2006 and faster than in 2010, when a federal tax credit program boosted sales.
"Nationally, the supply of homes in current inventory is down to 6.5 months, a level not seen in more than five years, in part driven by the 'locked in' position of so many homeowners in negative equity," he said.
Of the 100 most populous metro areas in the country, 44 saw year-over-year price declines in April, down 10 from March, CoreLogic said. Six of the 10 largest markets saw price increases with the Phoenix metro leading the pack.
10 most populous metro markets, ranked by percent price change in April:
Core-based statistical area (CBSA)
Single-family change from year ago
Excluding distressed
Chicago-Joliet-Naperville, Ill.
-7.3%
-1.1%
Atlanta-Sandy Springs-Marietta, Ga.
-5.3%
1.9%
Riverside-San Bernardino-Ontario, Calif.
-1.4%
0.3%
Los Angeles-Long Beach-Glendale, Calif.
-0.5%
1.2%
New York-White Plains-Wayne, N.Y.-N.J.
1.3%
1.7%
Philadelphia, Pa.
1.7%
3.0%
Houston-Sugar Land-Baytown, Texas
2.0%
3.6%
Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.Va.
2.8%
3.1%
Dallas-Plano-Irving, Texas
3.5%
5.4%
Phoenix-Mesa-Glendale, Ariz.
11.3%
7.0%
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