August Home Builder Sentiment Highest in More Than Five Years: NAHB
Reuters and National Association of Home Builders, August 15, 2012
The homebuilder sentiment index rose in August to its highest level since February 2007. It has gone up 20 points since last summer and is a fresh sign that the housing market is turning around.
* Resource : http://www.reuters.com/
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U.S. Government Home Price Index Edges Higher
Fox Business News & Dow Jones Newswires, September 25, 2012
According to the Federal Housing Finance Agency's monthly home-price index, home prices rose .2% from a month earlier, on a seasonally adjusted basis. Home prices are also up 3.7% from a year earlier. Also, according to the S&P/Case-Schiller indexes home prices for the first 7 months of the year have risen by a larger amount than any year since 2005. The Index found that prices in 20 large US metro areas are up 1.6% in July from the previous month and 1.2% year over year. The National Association of Realtors also found that existing home sales in August increased by 7.8% month over month to their highest level since May of 2010. The National Association of Realtors also said that single family home construction was at its highest level since April 2010.
* Resource : http://www.foxbusiness.com/
US Home Prices Jumped in August by the Most in 6 Years as Housing Market Steadily Recovers
Washington Post and the Associated Press, October 2, 2012
According to Core Logic, a private real estate data provider, US home prices in August were up 4.6% from a year ago. This is the largest year over year increase in more than 6 years. Home prices were also up .3% from a month ago, which is the sixth straight monthly gain. According to Core Logic Steady price increases, combined with greater home sales and rising builder confidence, suggest the housing recovery may be sustainable." Core Logic shows that the recovery is geographically diverse. Only 20 of the 100 large cities tracked showed year over year declines.
* Resource : http://www.washingtonpost.com/
How the Housing Recovery Will Take Shape in Coming Months
Morgan Brennan, Forbes Magazine, September 26, 2012
According to the National Association of Realtors Chief Economist, Lawrence Yun, "The housing market is steadily recovering with consistent increases in both home sales and median prices." August Single family home starts rose 29% year over year. Also, Companies like Lennar, the second-largest home builder in the U.S., have been reporting surprisingly positive quarterly earnings due to a rise in orders and selling prices. Fannie Mae economists, estimate that for the first time since 2005, residential investments will positively contribute to GDP. John Canally, investment strategist at LPL financial said, We got to the point where housing couldn't fall any farther." Lauren Pressman, director of real estate at Aspiriant believes that the housing market is making a U shaped rebound. She does not expect to see anymore depreciation in most markets. Stan Humphries, chief economist at Zillow.com expects to see home prices increase 1-3% over the next couple years. Zillow's formal projection is a 1.1% rate of appreciation from June of this year until June of next year. Humphries believes a healthy rate of appreciation of 2.5-5% will return somewhere between 2014 and 2016.
* Resource : http://www.forbes.com/
Single-Family Rentals: The Next Big Thing? Capital Economics
NASDAQ and FXstreet.com, October 1, 2012
British based, Capital Economics, economists Roger Bootle, Ed Stansfield and Paul Diggle believe the housing crisis has created a once in a lifetime investment opportunity. They feel that the shifting structure in the US housing market has created an opportunity to take advantage of the single family rental housing market. They believe single family rentals will be an important new asset class for the next few years.
* Resource : http://community.nasdaq.com/
Big Money Gets Into Landlord Game
Robbie Whelan, Wall Street Journal, August 4, 2011
H funds, private-equity firms, pension funds, and university endowments are entering the single family rental market. They are attracted to the market due to double-digit returns, at a time when most bonds and other income investments yield very little. As of May 2011 home ownership had fallen to 65.9% from a peak of 69.2%. Many families have been foreclosed on that do not fit into an apartment, and therefore end up renting houses. A report stated, In Arizona, Florida and Nevada, states hard-hit by the foreclosure crisis, the number of families renting a single-family home increased 48% from 2005 to 2010."
* Resource : http://online.wsj.com
Investors Get Creative with Hot Rental Market
Diana Olick, CNBC, June 20, 2012
Such high investor demand has caused the S&P to look into creating a new housing related security. Investors have been buying foreclosed properties in bulk and sometimes creating REITS to acquire more properties. The new proposal would create a new security backed by pools of previously foreclosed rental properties. It would be similar to a mortgage backed security, but instead of mortgage payments providing cash flow to investors the rent would provide the cash flow. The properties could be owned by banks, investors, or even the federal government.
* Resource : http://www.cnbc.com
Fiserv Case-Shiller Home Price Insights: U.S. Housing Markets Stabilizing, Affordability Reaches 40-Year High
Press release from Market Watcher Fiserv, May 8, 2012
Fiserv predicted home prices to increase 3.9% a year for next five years. Fiserv also found housing affordability to be at a 40 year high. When home prices finally hit bottom, later this year, they will be 35 percent lower than their peak level in the first quarter of 2006. Fiserv went on to say nearly all non-price metrics existing home sales, rising home order volumes, increased spending on home improvement, a jump in multi-family construction indicate that the housing sector hit bottom last year and has started along a path of slow recovery."
* Resource :
Homeownership Rate in U.S. Falls to Lowest Since 1997
John Gittelsohn, Bloomberg, April 30, 2012
Homeownership is down to 65.4%, off from 66% in the 4th quarter 2011 and 69.2% in June, 2004. About 6 million borrowers will lose their properties in the next five years because of inability to pay, creating 4 million new rental households. Homeownership rate may drop below 64 percent by the end of 2015 and stay there for years according to Scott Simon of Pacific Investment Company. Mr. Simon expects homeowner ship to drop more by 2017 and even more by 2020.
* Resource : http://www.bloomberg.com/
Home Rentals the New American Dream?
Julie Schmit, USA TODAY, June 6, 2012
According to US Census Bureau Data, parents that lost their jobs and had their homes foreclosed have created a new demographic of renters that rent single family homes. John Burns, CEO of John Burns Real Estate Consulting says. The foreclosure crisis will drive 3 million former homeowners to rent single-family homes between 2010 and 2015. The single-family home rental was the fastest-growing part of the rental market from 2005 to 2010, Fannie Mae says. Justin Chang, principal of colony capital believes that over the next five to ten years tens of billions if not hundreds of billions of dollars of private equity money will be invested in single family real estate. The typical new tenants are "a family, two kids, a dog and a fish bowl," says Gregor Watson, managing director of 643 Capital Management, which has 400 single-family rentals, most in the San Francisco Bay Area. Paul Willen, a senior economist in the Federal Reserve Bank of Boston says The end game for investors is to sell these homes profitably in three to five years, to owners. Mr. Burns expects that 70% of those who lose homes to mortgage distress will eventually own again. This could create an opportunity when the market turns around for the investors to sell to that demographic (former owners looking to own again) at a profit.
* Resource : http://usatoday30.usatoday.com/
Promising Economic Outlook Bolsters Predictions for Housing Sector
Kerri Ann Panchuk, Housingwire, March 28, 2012
The Urban Land Institute interviewed 38 economist and market analysts to obtain findings about the current and future housing market. The institute found that housing starts will rise from 428,600 in 2011 to 500,000 in 2012. Starts will jump to 660,000 in 2013 and 800,000 in 2014. Findings also show that average home prices will be flat this year, rise 2% in 2013, and rise 3.5% in 2014. Finally, the report predicted that private equity REIT's future returns will rise to 10% in 2012 and remain pretty high, with a 9% return in 2013 and an 8.5% return in 2014.
* Resource : http://www.housingwire.com/