This Week in Real Estate: March 12, 2018

Favorable news released This Week in Real Estate by the FDIC and NAHB with respect to the easing of credit and a growing AD&C loan base resulting in the expansion of residential construction activity. Below are a few highlights from the first week of March that influence our business:

* U.S. Home Flipping Increases to 11-Year High in 2017 With More Than 200,000 Homes Flipped. ATTOM Data Solutions released its Q4 and 2017 U.S. Home Flipping Report on Thursday, which shows that 207,088 U.S. single family homes and condos were flipped in 2017, up 1 percent from 204,167 home flips in 2016 to the highest level since 2006 – an 11-year high. The 207,088 homes flipped in 2017 represented 5.9 percent of all single family home and condo sales during the year, up from 5.7 percent of all sales in 2016 to the highest level since 2013. “The surge in home flipping in the last three years is built on a more fundamentally sound foundation than the flipping frenzy that we witnessed a little more than a decade ago,” said Daren Blomquist, senior vice president at ATTOM Data Solutions. “Flippers are behaving more rationally, as evidenced by average gross flipping returns of 50 percent over the last three years compared to average gross flipping returns of just 31 percent between 2004 and 2006 — the last time we saw more than 200,000 home flips in consecutive years. And while financing for flippers has become more readily available in recent years, 65 percent of flippers still used cash to buy homes flipped in 2017, nearly the reverse of 2004 to 2006, when 63 percent of flippers were leveraging financing to buy.” The total dollar volume of financed home flip purchases was $16.1 billion for homes flipped in 2017, up 27 percent from $12.7 billion in 2016 to the highest level since 2007 — a 10-year high. Completed home flips in 2017 yielded an average gross profit of $68,143 (difference between median purchase price and median flipped sale price), up 5 percent from an average gross flipping profit of $64,900 in 2016 to a new all-time high for as far back as data is available (2000). Homes flipped in 2017 took an average of 182 days to complete the flip, tied with 2016 for the highest average days to flip since 2006 — an 11-year high.
* AD&C Loan Growth Points Toward More Building. The volume of residential construction loans increased by 1.6% during the fourth quarter of 2017, marking 19 consecutive quarters of growth. Furthermore, stabilization for the year-over-year growth rate is an indicator of continued, modest growth for single-family construction. Tight availability of acquisition, development and construction (AD&C) loans has been a limiting factor for home building growth, but easing credit conditions and a growing loan base have helped expand residential construction activity in a thin inventory environment. According to data from the FDIC and NAHB analysis, the outstanding stock of 1-4 unit residential construction loans made by FDIC-insured institutions rose by $1.2 billion during the fourth quarter of 2017, raising the total stock of outstanding loans to $74.4 billion. On a year-over-year basis, the stock of residential construction loans is up 7%. Past quarters of slow growth have reduced the year-over-year growth rate, but it has has stabilized during the third and fourth quarters near the recent expansion rate for single-family construction starts. Since the first quarter of 2013, the stock of outstanding home building construction loans has grown by 83%, an increase of $33.6 billion. However, lending remains much reduced from years past. The current stock of existing residential AD&C loans now stands 64% lower than the peak level of residential construction lending of $203.8 billion reached during the first quarter of 2008.
* Job Growth Surges with Strongest Growth Since Last Summer. Job growth continued its surge in February, this time growing at its strongest rate since July last year, according to the latest release from the U.S. Bureau of Labor Statistics. Total non-farm payroll employment increased by 313,000 in February, according to the report. This is drastically higher than ADP and Moody’s Analytics’ predicted increase of 235,000 jobs and up from the general estimated increase of 205,000 jobs. It is also an increase from January’s growth, which came in at 200,000 jobs. This marks the 89th consecutive month of job growth, and the largest monthly gain since July 2016, according to realtor.com Chief Economist Danielle Hale. “There will be more Fed hikes in 2018, but impact on mortgage rates are uncertain,” Lending Tree Chief Economist Tendayi Kapfidze said. “Labor market growth continues to support the Feds rate hike cycle. However, the Fed hiked three times in 2017 and mortgage rates fell by 33 basis points.” “The February jobs report was as good as it gets, with the establishment survey showing the largest monthly job gain since July 2016, solid upward revisions for the prior two months, a rebound in the average workweek, and most of all, no runaway wage acceleration,” Fannie Mae Chief Economist Doug Duncan said.

Have a productive week.

Jason


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This Week in Real Estate: March 5, 2018

While the Pending Home Sales Index (PHSI) fell in January to its lowest level since October 2014 according to a release from the National Association of Realtors This Week in Real Estate, the amount of homeowner equity has reached a new peak. Below are a few highlights from the last week of February that influence our business:

* CoreLogic: Evaluating the Housing Market Since the Great Recession. This report details the remarkable 11-year economic cycle surrounding the last U.S. housing market downturn, examining the boom and bust years between 2006 and 2011 and the ensuing recovery, with data through December 2017. Residential home prices began to peak in some parts of the country as early as 2005. Home prices collapsed in 2007, when Wall Street began to back out of residential mortgage-backed securities. After falling 33 percent during the recession, prices in most markets have returned to peak levels, growing 51 percent nationally since bottoming out in March 2011. The average home price is now 1 percent higher than it was at the peak in 2006. “Homeowners in the United States experienced a run-up in prices from the early 2000s to 2006, and then saw the trend reverse with steady declines through 2011,” said Dr. Frank Nothaft, chief economist for CoreLogic. “After reaching bottom in 2011, our national price index is up more than 50 percent. West Coast states, such as California, Washington and Oregon are seeing some of largest trough-to-current growth rates in home prices. Greater demand and lower supply ­– as well as booming job markets – have given some of the hardest-hit housing markets a boost in home prices.
* Pending Home Sales Start 2018 Lower. The Pending Home Sales Index decreased 4.7% in January to the lowest level since October 2014. The Pending Home Sales Index (PHSI) is a forward-looking indicator based on signed contracts reported by the National Association of Realtors. The PHSI fell to 104.6 in January from a downwardly revised 109.8 in December. The PHSI decreased in all four regions, ranging from 1.2% in the West to 9.0% in the Northeast. Year-over-year, the PHSI also decreased in all four regions, ranging from 1.1% in the South to 12.1% in the Northeast. NAR reported that listings were 9.5% below the level a year ago. NAR suggested that in addition to new residential construction, relief from the extreme shortage of supply could come from institutional investors dumping single-family homes back into the market and more homeowners deciding to sell. Existing home sales fell 3.2% in January, and new home sales declined 7.8% last month. However, builder confidence remained at a strong level in February. Job growth, increasing homeownership rates and limited inventory will spur continued growth in new residential construction.
* Homeowner Equity Surpasses Previous Peak. As house prices climb, the amount of American homeowner equity continues to grow. As of third quarter 2017, the Federal Reserve estimates owners’ equity — that is, aggregate home value less outstanding mortgage debt — is $14.1 trillion. Home equity has surpassed the previous peak of $13.4 trillion from first quarter 2006 during the past year, recovering from the great price correction that more than halved home equity positions. Home equity holdings were 40 percent higher than the aggregate value of household and non-profit checking and savings accounts in the third quarter, emphasizing its importance on the household balance sheet.

Have a productive week.

Jason


Portland Metro Weekend Events Planner: March 2-4, 2018

PORTLAND METRO WEEKEND EVENTS PLANNER
MARCH 2-4, 2018

FREE ART DAY

THURS  Enjoy our more than 112,000 square feet of galleries reflecting the history of art from ancient times to the present, free the first Thursday of every month.

SE AREA ART WALK

SAT-SUN  A free, self-guided walking tour. Visit the studios, home workspaces, galleries, host homes and businesses within the walkable/bikeable/busable boundaries of SE 9th Ave, SE 41st, SE Powell and SE Hawthorne Blvd.

CHOWDER CHALLENGE

SAT  A blind tasting of a dozen samples of clam chowders by area restaurants and brewpubs. Attendees receive a tray with a dozen numbered two-ounce samples of chowder, then vote for their favorite; the chowder receiving the most votes is named the People’s Choice Winner. 

BLACK OUT BEER FEST

FRI  Featuring two dozen rotating dark beers – including dark lagers, porters, stouts, coffee beers and black IPAs – from Lompoc and more than 20 guest breweries from around the Northwest.  

ANTIQUE & COLLECTIBLES SHOW

FRI-SUN  Hundreds of booths filled with just about anything you need for your collection. Pop collectibles, vintage clothing, glassware, silverware, antique radios, movie memorabilia, collectible toys, porcelain dolls, Star Wars collectibles, and much more!

FIRKIN FEST

SAT  Featuring Firkin beers from 20+ of Oregon’s top breweries. Firkin beers are unpasteurized, unfiltered, naturally carbonated in the cask and served at cellar temperature. Artisan cheeses, chocolates, meats, and snacks will be served alongside the beer.  

COOKIE & WINE PAIRING

FRI-SUN  Pairing 5 wines with 4 delicious cookies

CHINESE NEW YEAR

Through SUN  The most colorful and joyous of all Chinese festivals during Lan Su’s two-week celebration featuring lion dances, cultural performances, martial arts, calligraphy, family-friendly craft activities and much more!

A-WOL DANCE COLLECTIVE

Through SUN  Combining aerial arts and dance to weave a fantastical tale suspended between reverie and reality. Floating sleepers, trickster marionettes and lost travelers inhabit an alternate realm where furniture takes wing and dolls scheme in the shadows.

FOLK CITY: THE MUSICAL

Through SUN  Following the story of six young people who are drawn to Greenwich Village in the early 1960s and find a home at a little restaurant-turned cabaret, Gerdes Folk City, which eventually becomes the historic and iconic epicenter of popular music. 

CASCADE FESTIVAL OF AFRICAN FILMS

Through SAT – Films showing Africa through the eyes of Africans, rather than a vision of Africa packaged for Western viewers. The films celebrate Africa’s achievements, expose its failures, and reveal possibilities for a hopeful future.

80’s VIDEO DANCE ATTACK

Every FRI & SAT – Dig out your neon mesh shirts, crimping iron and striped legwarmers to travel back to the 1980s! Classic music videos projected on giant screens complimented with a thumping sound system and light show, this dance extravaganza is sure to get the blood pumping!

PORTLAND CIDER HOUSE’S CIDER-MOSA SATURDAY

EVERY SAT – Enjoy a liquid brunch and try a variety of delicious and fun cider-mosas.

FLASHBACK DANCE CRUISE
Through SAT – Gather your crew & rock your best retro threads from the 70’s, 80’s and 90’s!

DUELING PIANO SHOW
FRI & SAT (All Month) – The Barrel Room lays claim to the longest running dueling piano shows in Portland. The show, which at times can get a “little cheeky,” isn’t just two players banging on pianos for five hours. They boast a Vegas style, request driven, interactive show complete with bits, games, sing-a-longs, comedy and some of the best players in the U.S.

URBAN SCAVENGER HUNT
ALL MONTH  Smartphone clues lead you on a fun & engaging walking tour of the city. Clues start you in the heart of downtown at Pioneer Courthouse Square and will take you on a scavenger hunt through the Arts District, on a streetcar ride and among the famous food carts.

SHANROCK’S TRIVIOLOGY
ALL MONTH  Various Portland Locations: Triviology pub quizzes are free to play, last a couple of hours, and are composed of seven short rounds, giving teams instant gratification for their efforts. Team size can range from one to five players, with prizes for everyone on the winning team.

GUIDED NATURE HIKES
EVERY DAY – Park guides lead nature hikes to explore the forest, stream ecosystems and natural history of the natural area. Tryon Creek State Park & more.

HAUNTED PUB TOUR
All Month – This spine-tingling ghost tour explores Portland’s historic Old Town District, a vibrant area with beautiful 1800’s buildings, cobblestone streets and a wicked past.

GEEKS WHO DRINK PUB QUIZ
ALL MONTH – Anyone can grab a deck of Trivial Pursuit cards and run a “trivia night.” Geeks Who Drink’s smartass quizmasters run fast-paced, interactive and beer-soaked pub quiz events all over Portland.

PORTLAND ESCAPE ROOMS
All Month THURS-SUN – Cedar Hills/Beaverton Locations: Real-life room escape games are a type of physical adventure game in which people are locked in a room with other participants and have to use elements of the room to solve a series of puzzles, find clues, and escape the room within a set time limit.

 

VANCOUVER METRO EVENTS

 

WASHINGTON STATE HORSE EXPO

FRISUN – Saddle up for the largest show of its kind in the Pacific Northwest! Offering equine enthusiasts the chance to take part in exhibits, stage shows, rider fashions and vendor booths.

FIRST FRIDAYS EVENING MARKET

FRI – Uniting creativity and great art with food and inspiration. Stop by to shop local, network, and meet local business owners. An adventurous retail evening awaits!

FIRST FRIDAYS

FRI – Participating merchants and restaurants stay open late with special programming, live music, and pop-ups. Also, downtown art galleries lead the First Friday Art Walk featuring rotating exhibits from local artists.

CAMAS FIRST FRIDAYS

FRI – Held in charming, historic Downtown Camas and hosted by the DCA and the downtown merchants, Camas First Fridays are monthly themed passport events featuring games, art, dining, and after hours shopping.

OPEN SATURDAY AT PEARSON AIRBASE

SAT – Free educational experience, Flight Simulator lab, vertical wind tunnel, a glider-building station, historic airplanes on-site for viewing, collections on display, and educational programs to propel students of all ages.

NEW MOVIES OUT THIS WEEK
· Red Sparrow
· Death Wish
· Blink
· Goldstone
· Alpha
· Submission
· Souvenir
· Dance Academy: The Comeback
· Don’t Talk to Irene
· Oh Lucy!
· Gnome Alone
· The Faculty: Urban Legend

Click here for movie times and theaters.

CLICK HERE TO VIEW THIS WEEK’S OPEN HOUSES

For a monthly online listing of upcoming Portland metro events, click here.


This Week in Real Estate: February 26, 2018

As available inventory continues to be the subject of most “chatter” throughout the industry, favorable news This Week in Real Estate with respect to the growth of single-family permits in 45 states and the District of Columbia last year. In addition, the demand from first-time homebuyers does exist, as evidenced by the Genworth Mortgage Insurance report, that concluded first-time buyers participation in single-family home purchases in 2017 was the largest share since 2000. Below are a few highlights from the third week of February that influence our business:

* Permits Grow Across Most States in 2017. Over the twelve months ending in December 2017, the total number of single-family permits issued nationwide reached 817,319. This is 9.6% ahead of its level over the first twelve months of 2016, 745,525. The results from the SOC are similar, single-family permits over the first twelve months of 2017, 817,700 are 8.9% ahead of their level over the same period of 2016, 750,800. Between December 2016 to December 2017, 45 states and the District of Columbia saw growth in single-family permits issued. Twenty states recorded a growth above 9.6% but five states had a decline in growth, including Oregon. Hawaii had the highest growth rate during this time at 23.6% while single-family permits in North Dakota declined by 9.8%. Washington state experienced 4% growth.
* First-Time Homebuyers Make Biggest Share of Deals in 17 Years. First-time buyers rushed into the market last year, making 38 percent of all U.S. single-family home purchases, the biggest share since 2000, data released Thursday by Genworth Mortgage Insurance shows. The 2.07 million new or existing homes bought by first-timers was 7 percent more than in 2016, according to the insurer. Millennials, who were putting off purchases because of student-debt burdens and a preference for renting, are becoming a force in the market as the oldest of the group get married and have children, said Tian Liu, chief economist of the insurer. Census Bureau data back that up. The homeownership rate for Americans under age 35 rose in the fourth quarter to 36 percent. It hasn’t been higher since the first quarter of 2014.
* Most House Hunters Have Been Searching For 3 Months or More. Most Americans – 61% – who intend to buy a home in the next 12 months have been searching for a whopping three months.Or more. That finding comes from a recent survey conducted by the National Association of Home Builders, and includes people who are searching for both new and previously-owned homes. What’s making the house-hunt take so long? Some 42% of respondents told NAHB they “can’t find a home at a price I can afford,” while 36% “can’t find a home with the features I want” and 34% “can’t find a home in the neighborhood I want.” And even if would-be buyers can overcome all those obstacles, nearly 30% said they “continue to get outbid whenever I make an offer.” On Wednesday, the National Association of Realtors said that home purchase contracts signed in January had been on the market for only 42 days.                                                                                    Full Story... https://www.marketwatch.com/story/two-thirds-of-house-hunters-have-been-searching-for-3-months-or-more-2018-02-22

http://eyeonhousing.org/2018/02/builder-confidence-stays-at-strong-level-in-february/

Have a productive week.

Jason


Portland Metro Weekend Event Planner: February 23-25, 2018

PORTLAND METRO WEEKEND EVENTS PLANNER
FEBRUARY 23-25, 2018

PDX JAZZ FESTIVAL

Through SAT  A rich and robust Jazz experience with upwards of 100 paid and ticketed events, there are ambitious programs that will warm the heart and swing your soul.

PORTLAND SPRING HOME & GARDEN SHOW

THURS-SUN  Giving homeowners the opportunity to learn about the latest home and garden products and services from more than 300 local companies.

BREWSTILLERY FESTIVAL

SAT  20 breweries & 20 distilleries teaming up to create the perfect pairings.  

RAPTOR ROAD TRIP

SAT  Explore Sauvie Island in search of magnificent eagles, hawks and falcons. Naturalists and hawk experts host activities at four sites around the island. Enjoy guided bird viewing, meet live raptors and see hawk identification displays. 

RUN FOR BEER

SAT  Participants walk, jog, or run approximately 3.1 miles, then drink beer! Everyone is invited to enjoy the day’s entertainment: live music, great food, giveaways and activities with partners and sponsors. Everyone receives a craft brew, and collectors pint glass or seasonal swag item.

CHINESE NEW YEAR

Through March 4  The most colorful and joyous of all Chinese festivals during Lan Su’s two-week celebration featuring lion dances, cultural performances, martial arts, calligraphy, family-friendly craft activities and much more!

A-WOL DANCE COLLECTIVE

Through March 4  Combining aerial arts and dance to weave a fantastical tale suspended between reverie and reality. Floating sleepers, trickster marionettes and lost travelers inhabit an alternate realm where furniture takes wing and dolls scheme in the shadows.

PORTLAND INTERNATIONAL FILM FESTIVAL

Through March 1  An exhibition of nearly 90 feature films and 40+ short films, PIFF audiences across the City of Portland travel the globe in theater seats through our celebration of the world’s filmmakers and cinephiles.

FOLK CITY: THE MUSICAL

Through March 4  Following the story of six young people who are drawn to Greenwich Village in the early 1960s and find a home at a little restaurant-turned cabaret, Gerdes Folk City, which eventually becomes the historic and iconic epicenter of popular music. 

CASCADE FESTIVAL OF AFRICAN FILMS

Through March 3 – Films showing Africa through the eyes of Africans, rather than a vision of Africa packaged for Western viewers. The films celebrate Africa’s achievements, expose its failures, and reveal possibilities for a hopeful future.

80’s VIDEO DANCE ATTACK

Every FRI & SAT – Dig out your neon mesh shirts, crimping iron and striped legwarmers to travel back to the 1980s! Classic music videos projected on giant screens complimented with a thumping sound system and light show, this dance extravaganza is sure to get the blood pumping!

PORTLAND CIDER HOUSE’S CIDER-MOSA SATURDAY

EVERY SAT – Enjoy a liquid brunch and try a variety of delicious and fun cider-mosas.

FLASHBACK DANCE CRUISE
Through SAT – Gather your crew & rock your best retro threads from the 70’s, 80’s and 90’s!

DUELING PIANO SHOW
FRI & SAT (All Month) – The Barrel Room lays claim to the longest running dueling piano shows in Portland. The show, which at times can get a “little cheeky,” isn’t just two players banging on pianos for five hours. They boast a Vegas style, request driven, interactive show complete with bits, games, sing-a-longs, comedy and some of the best players in the U.S.

URBAN SCAVENGER HUNT
ALL MONTH  Smartphone clues lead you on a fun & engaging walking tour of the city. Clues start you in the heart of downtown at Pioneer Courthouse Square and will take you on a scavenger hunt through the Arts District, on a streetcar ride and among the famous food carts.

SHANROCK’S TRIVIOLOGY
ALL MONTH  Various Portland Locations: Triviology pub quizzes are free to play, last a couple of hours, and are composed of seven short rounds, giving teams instant gratification for their efforts. Team size can range from one to five players, with prizes for everyone on the winning team.

GUIDED NATURE HIKES
EVERY DAY – Park guides lead nature hikes to explore the forest, stream ecosystems and natural history of the natural area. Tryon Creek State Park & more.

HAUNTED PUB TOUR
All Month – This spine-tingling ghost tour explores Portland’s historic Old Town District, a vibrant area with beautiful 1800’s buildings, cobblestone streets and a wicked past.

GEEKS WHO DRINK PUB QUIZ
ALL MONTH – Anyone can grab a deck of Trivial Pursuit cards and run a “trivia night.” Geeks Who Drink’s smartass quizmasters run fast-paced, interactive and beer-soaked pub quiz events all over Portland.

PORTLAND ESCAPE ROOMS
All Month THURS-SUN – Cedar Hills/Beaverton Locations: Real-life room escape games are a type of physical adventure game in which people are locked in a room with other participants and have to use elements of the room to solve a series of puzzles, find clues, and escape the room within a set time limit.

 

VANCOUVER METRO EVENTS

WASHINGTON BEER OPEN HOUSE

SAT  Visit some of our state’s many innovative, esteemed, and downright friendly craft brewers. Participating brewers have some tasty treats in store for you, ranging from rare barrel tastings and new seasonal releases, to savory food pairings and other unique surprises.

VANCOUVER LAKE HALF MARATHON

SUN  The course is very flat and begins on Reiger Road in front of the park. Finishers medals will be presented to all half marathon finishers.

JEEVES INTERVENES

Through SAT – 1920s high-society London is once again thrown into chaos by hapless playboy Bertie Wooster, this time in cahoots with his old school chum Eustace Bassington-Bassington. The two hatch a brilliant plan to dupe their meddling relatives in order to save Bertie from an undesired marriage and Eustace from an unwanted job in India. But will the ever-faithful manservant Jeeves be able to rescue these bumbling fools from themselves?

OPEN SATURDAY AT PEARSON AIRBASE

SAT – Free educational experience, Flight Simulator lab, vertical wind tunnel, a glider-building station, historic airplanes on-site for viewing, collections on display, and educational programs to propel students of all ages.

NEW MOVIES OUT THIS WEEK
· Game Night
· Annihilation
· Every Day
· Beast of Burden
· Curvature
· 7 Guardians of the Tomb
· The Lodgers
· The Cured
· Half Magic
· The Chamber
· Death House
· Agenda: Payback

Click here for movie times and theaters.

CLICK HERE TO VIEW THIS WEEK’S OPEN HOUSES

For a monthly online listing of upcoming Portland metro events, click here.


This Week in Real Estate: February 12, 2018

This Week in Real Estate, Fannie Mae released the results of it’s January Home Purchase Sentiment Index, which recorded an all-time survey high. Below are a few highlights from the first week of February that influence our business:

* LMI Indicates Continued Improvement Across the Country. According to the NAHB/First American Leading Markets Index (LMI), 82%, 277 metropolitan statistical areas, recorded growth in their LMI Score over the fourth quarter of 2017 compared to a year ago. The index uses single-family housing permits, employment, and home prices to measure proximity to a normal economic and housing market. The index is calculated for 337 local markets, metropolitan statistical areas (MSAs), as well as the entire country. A value of 1.0 means the three components have achieved a level of recovery that combined averages 1.0. Of the 337 metro areas tracked by the LMI, 195 of them have an LMI Score that exceeds 1.0. House prices continue to be a key driver of the LMI results. Of the 337 markets tracked by the LMI, house prices in 333 areas have normalized or are above 1.0. The LMI Score for the country as a whole reached 1.04. However, at 1.58, only the house price component is above 1.0. Meanwhile, the employment component sits at 0.98 and single-family permits are currently at 0.56. One interpretation of these metrics is that the slower recovery in housing supply coupled with strong demand is contributing to house price appreciation.
* Americans Gain Confidence in Housing as Home Prices Rise. Americans continue to gain confidence in the housing market, not just despite, but even because of rising home prices, according to the latest Home Purchase Sentiment Index from Fannie Mae. Over the past year, home prices have continued to rise, threatening affordability, and housing inventory is falling dangerously low. However, despite these setbacks, Americans continue to hold a positive view of the housing economy. Fannie Mae’s HPSI rose 3.7 points in January to 89.5, reversing the decrease seen the month before and an all-time survey high. This rise is due to increases in five of the six HPSI components. “HPSI rebounded from last month’s dip to a new survey high in January, in large part due to the spike in consumers’ net expectations that home prices will increase over the next year,” said Doug Duncan, Fannie Mae senior vice president and chief economist.
* Housing Affordability Remains Flat in 2017. Data for all four quarters of 2017 show housing affordability remaining essentially flat throughout the year, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index (HOI). In all, 59.6 percent of new and existing homes sold between the beginning of October and end of December were affordable to families earning the U.S. median income of $68,000. This is just slightly up from the 58.3 percent of homes sold that were affordable to median-income earners in the third quarter, and effectively the same rate as in the fourth quarter of 2016, when the HOI stood at 59.9 percent. The national median home price fell to $255,000 in the fourth quarter of 2017 from $260,000 in the previous quarter. Meanwhile, average mortgage rates inched down four basis points in the fourth quarter to 4.06 from 4.1 in the third quarter. Youngstown-Warren-Boardman, Ohio-Pa. and Syracuse, NY tied as the nation’s most affordable major housing market. In both metros, 88.3 percent of all new and existing homes sold in the fourth quarter were affordable to families earning the area’s median income of $54,600 and $68,000, respectively. San Francisco, which had been the nation’s least affordable housing market for 19 straight quarters before being displaced by Los Angeles in the third quarter of 2017, once again assumed the mantle as the least affordable market. There, just 6.3 percent of the homes sold in the last quarter of 2017 were affordable to families earning the area’s median income of $113,100.

Have a productive week.

Jason


This Week in Real Estate: February 4, 2018

 

The fourth quarter of 2017 resulted in sellers realizing a 10-year high of profits and the homeownership rate reaching the highest level in three years as reported This Week in Real Estate by ATTOM Data Solutions and the U.S. Census Bureau respectively. Below are a few highlights from the last week of January that influence our business:

*Average Home Seller Profits at 10-Year High of $54,000 in Q4 2017. ATTOM Data Solutions released its Year-End and Q4 2017 U.S. Home Sales Report Tuesday, which shows that home sellers in Q4 2017 realized an average home price gain since purchase of $54,000, up from $53,732 in the previous quarter and up from $47,133 in Q4 2016 to the highest since Q3 2007 — a more than 10-year high. That $54,000 average home seller profit represented an average 29.7 percent return on investment compared to the original purchase price, up from 28.8 percent in the previous quarter and up from 26.8 percent in Q4 2016 to the highest average home seller ROI since Q3 2007. “It’s the most profitable time to sell a home in more than 10 years yet homeowners are staying put longer than we’ve ever seen,” said Daren Blomquist, senior vice president at ATTOM Data Solutions. “While home sellers on the West Coast are realizing the biggest profits, rapid home price appreciation in red state markets is rivaling that of the high-flying coastal markets and producing sizable profits for home sellers in those middle-American markets as well.” Among 155 metropolitan statistical areas with sufficient historical data, those with the highest average home seller ROI were San Jose, California (90.9 percent ROI); San Francisco, California (73.3 percent); Merced, California (64.6 percent); Seattle, Washington (64.4 percent); and Santa Cruz, California (59.8 percent). The U.S. median home price in 2017 was $235,000, up 8.3 percent from 2016 to a new all-time high. Annual home price appreciation in 2017 slowed slightly compared to the 8.5 percent in 2016.

Full Story… https://www.attomdata.com/news/home-prices-and-sales/2017-home-sales-report/

*Homeownership Rate Reaches Highest Level in Three Years. The national homeownership rate reached its highest level since the fourth quarter of 2014, increasing slightly in the last quarter of 2017, according to the Quarterly Residential Vacancies and Homeownership report from the U.S. Census Bureau. The homeownership rate remained statistically unchanged, inching up to 64.2% in the fourth quarter. This is up from 63.7% the year before and 63.9% in the third quarter. Among Millennials, the homeownership rate ticked up slightly from 35.6% to 36%. Among older generations, the homeownership is significantly higher at 75.3% for those aged 55 to 64 years and 79.2% for those aged 65 years and older. “What’s even more positive news for the housing market is that much of the increase in the homeownership rate over the past year has come from 18 to 44-year olds,” Trulia Chief Economist Ralph McLaughlin said.

Full Story… https://www.housingwire.com/articles/42403-homeownership-rate-reaches-highest-level-in-three-years

*Private Residential Spending Reaches Cycle High. NAHB analysis of Census Construction Spending data shows that total private residential construction spending rose 0.5% in December to a seasonally adjusted annual rate of $526.1 billion, the highest level since March 2007. Total private residential construction spending rose 6.2% last year, after increasing 12.5% in 2016. The monthly gains are largely attributed to the increase in multifamily construction spending. It rebounded strongly 2.6% after a dip of 0.5% in November, reaching a $64.0 billion annual pace in December. Single-family construction spending inched up 0.4%, after surging 2% in November. Remodeling spending slipped slightly 0.2% in December. On a year-over-year basis, spending on home improvements increased by 3.2%.

Full Story… http://eyeonhousing.org/2018/02/private-residential-spending-reaches-cycle-high/

Have a productive week.

Jason


This Week in Real Estate: January 29, 2018

Despite inventory pressure, which in turn has driven continued price appreciation as a result of buyer demand, the National Association of Realtors announced This Week in Real Estate that 2017 existing home sales recorded the best year in 11 years. Below are a few highlights from the fourth week of January that influence our business:

* Cash Sales Tie Post-Recession High. NAHB analysis of the most recent Quarterly Sales by Price and Financing published by the Census Bureau reveals that cash sales accounted for 11,000 new home sales in the fourth quarter of 2017. Cash purchases made up 7.9% of purchases in the fourth quarter, a mark not seen since 2014. Although cash sales make up a small portion of new home sales, they constitute a larger share of existing home sales. Roughly 20% of existing home transactions were all-cash sales in December 2017, according to estimates from the National Association of Realtors. Conventional financing contracted sharply following the Great Recession, but has expanded as the recovery has continued. In 2006, conventional financing accounted for 90% of new home purchases, falling to 59% in 2010. Conventional loans accounted for 72% of new home sales in 2017, on average, the highest annual average since 2008.

 

* Best Year For Home Sales Since 2006, Despite Headwinds. Existing home sales in 2017 increased 1.1 percent for the best year in 11 years. According to the National Association of Realtors® (NAR), the 5.51 million sales of existing single-family homes, townhomes, condos, and cooperative apartments surpassed the 5.45 million sales in 2016 to have the highest number of transactions since 6.48 million were sold in 2006. Lawrence Yun, NAR chief economist, says the housing market performed remarkably well for the U.S. economy in 2017, but wasn’t as good as it might have been.  The year brought substantial wealth gains for homeowners and historically low distressed property sales. “Existing sales concluded the year on a softer note, but they were guided higher these last 12 months by a multi-year streak of exceptional job growth, which ignited buyer demand,” he said. “At the same time, market conditions were far from perfect. New listings struggled to keep up with what was sold very quickly, and buying became less affordable in a large swath of the country. These two factors ultimately muted what should have been a stronger sales pace.” The median existing-home price for all housing types in December was $246,800, a 5.8 percent rate of appreciation for the year and was the 70th straight month of year-over-year gains. The inventory of available homes fell another 11.4 percent in December to 1.48 million and is now 10.3 percent lower than a year ago (1.65 million).  The inventory has declined year-over-year for 31 consecutive months and is currently estimated at a 3.2-month supply, the lowest level since NAR began tracking in 1999. Existing-home sales in the West declined 0.8 percent below a year ago.

 

* Purchase Mortgage Applications Hit 8-Year High. Mortgage applications continue on the tear they started during the first week of 2018. The Mortgage Bankers Association’s (MBA’s) Market Composite Index, a measure of loan application volume, increased 4.5 percent on a seasonally adjusted basis during the week ended January 19. The gain came on the heels of 8.3 percent and 4.1 percent increases in the first two weeks of the year. Both the Refinancing and Purchase Indexes saw gains.  The seasonally adjusted Purchase Index was up 6 percent from the week ended January 12, its fourth straight increase, and was the highest since April 2010.
Have a productive week.

 

Jason


Portland Metro Weekend Events: January 26-28, 2018

PORTLAND METRO WEEKEND EVENTS PLANNER
JANUARY 26-28, 2018

INTERNATIONAL CAT SHOW

FRI-SUN – See dozens of breeds, judging, and one amazing event. There will be rescue cats and kittens available for adoption from West Columbia Gorge Humane Society and Community Cat Coalition. There will also be a large variety of vendors, who will be offering cat items for sale, not found in local stores, including teasers, cat nip toys, fluffy blankets, cat trees and jewelry.

PORTLAND INTERNATIONAL AUTO SHOW

THURS-SUN  Experience the newest automotive technology in the market today plus get a glimpse into what is coming in the future.

GREAT TRAIN SHOW

SAT-SUN – Featuring hundreds of tables of trains, accessories, scale models and collectible toys for sale as well as huge operating exhibits, activities for kids, free seminars and educational opportunities, and much more.

MOCHITSUKI

SUN – Portland’s annual Japanese New Year celebration, entertainment, hands-on activities, ikebana, calligraphy, games, rice pounding, mochi, and Japanese foods

VINTAGE MARKETPLACE

SAT-SUN – A wonderful array of treasures for you and your home.

SPONTANEOUS COMBUSTION NEW MUSIC FESTIVAL

Through February 2 – Featuring concerts by seven talented artists at The Old Church Concert Hall

DOLL & TEDDY BEAR SHOW

SAT – Something for everyone, including more antique and vintage vendors than ever. The finest exhibitors in the West fill the room with dolls, bears, miniatures, supplies, wigs, clothes books and accessories from antique to modern.

REEL MUSIC FESTIVAL

Through January 30 – Whether your passion is jazz, blues, folk, rock, electronic, world, classical—or anything between—we hope you find something to discover and inspire in this eclectic mix of films that celebrate great artists, sound, and image, and connect music and culture. Various locations around Portland.

FERTILE GROUND ARTS FESTIVAL

THURS through January 28  Discover compelling indoor landscapes of many hues and disciplines cultivated in Fertile Ground. This 11-day sampling illuminates the verdant and abundant acts of creation that bubble and catalyze yearlong in Portland.

STRANGER THAN FICTION

Through SUN  Various short pieces performed by a multi-generational cast, combining circus arts, narrative, dance, and physical theater. (Part of the 2018 Fertile Ground Festival) 

80’s VIDEO DANCE ATTACK

Every FRI & SAT – Dig out your neon mesh shirts, crimping iron and striped legwarmers to travel back to the 1980s! Classic music videos projected on giant screens complimented with a thumping sound system and light show, this dance extravaganza is sure to get the blood pumping!

PORTLAND CIDER HOUSE’S CIDER-MOSA SATURDAY

EVERY SAT – Enjoy a liquid brunch and try a variety of delicious and fun cider-mosas.

FLASHBACK DANCE CRUISE
Through SAT – Gather your crew & rock your best retro threads from the 70’s, 80’s and 90’s!

DUELING PIANO SHOW
FRI & SAT (All Month) – The Barrel Room lays claim to the longest running dueling piano shows in Portland. The show, which at times can get a “little cheeky,” isn’t just two players banging on pianos for five hours. They boast a Vegas style, request driven, interactive show complete with bits, games, sing-a-longs, comedy and some of the best players in the U.S.

URBAN SCAVENGER HUNT
ALL MONTH  Smartphone clues lead you on a fun & engaging walking tour of the city. Clues start you in the heart of downtown at Pioneer Courthouse Square and will take you on a scavenger hunt through the Arts District, on a streetcar ride and among the famous food carts.

SHANROCK’S TRIVIOLOGY
ALL MONTH  Various Portland Locations: Triviology pub quizzes are free to play, last a couple of hours, and are composed of seven short rounds, giving teams instant gratification for their efforts. Team size can range from one to five players, with prizes for everyone on the winning team.

GUIDED NATURE HIKES
EVERY DAY – Park guides lead nature hikes to explore the forest, stream ecosystems and natural history of the natural area. Tryon Creek State Park & more.

HAUNTED PUB TOUR
All Month – This spine-tingling ghost tour explores Portland’s historic Old Town District, a vibrant area with beautiful 1800’s buildings, cobblestone streets and a wicked past.

GEEKS WHO DRINK PUB QUIZ
ALL MONTH – Anyone can grab a deck of Trivial Pursuit cards and run a “trivia night.” Geeks Who Drink’s smartass quizmasters run fast-paced, interactive and beer-soaked pub quiz events all over Portland.

PORTLAND ESCAPE ROOMS
All Month THURS-SUN – Cedar Hills/Beaverton Locations: Real-life room escape games are a type of physical adventure game in which people are locked in a room with other participants and have to use elements of the room to solve a series of puzzles, find clues, and escape the room within a set time limit.

 

VANCOUVER METRO EVENTS

RACE FOR WARMTH

SUN – Join the Race for Warmth to support Operation Warm Heart, a Clark Public Utilities customer-funded program to help limited-income families in crisis situations who need help paying their electric bills.

VANCOUVER SYMPHONY ORCHESTRA: MUSICAL JOURNEY 

SAT  Featuring two beloved symphonies, each representing a “spiritual and emotional” journey for the composer.

CLARK COUNTY COLLEGE JAZZ FESTIVAL 

THURS-SAT  Presenting three full days of exhilarating big band jazz. Sixty middle and high school jazz ensembles from throughout Washington and Oregon are scheduled to perform in this year’s competition with trophies presented to the top three jazz ensembles for middle schools and A through AAAA division high schools.

LANTERN TOUR: AN EVENING AT THE FORT 

SAT  A wonderful opportunity to experience the reconstructed Hudson’s Bay Company fort at night. As in past years, each adult attending the program will carry their own candle lantern and tour with a park ranger through the reconstructed fort’s Counting House, Fur Store, Chief Factor’s House, Kitchen, and Bake House.

IMPROV THEATRE

SAT  MIT players assure audiences they are prepared to launch into 2018 with a whole new barrel of laughs in downtown Vancouver. In a world where folks are never sure what life will launch at them next, it’s refreshing to know that MIT is always family friendly! It’s safe to bring the kids and Grandparents! 

OPEN SATURDAY AT PEARSON AIRBASE

SAT – Free educational experience, Flight Simulator lab, vertical wind tunnel, a glider-building station, historic airplanes on-site for viewing, collections on display, and educational programs to propel students of all ages.

NEW MOVIES OUT THIS WEEK
· Please Stand By
· Hostiles
· Maze Runner: The Death Cure
· The Neighbor
· American Folk
· The Clapper
· The Misguided
· Like Me
· Kickboxer: Retaliation

Click here for movie times and theaters.

CLICK HERE TO VIEW THIS WEEK’S OPEN HOUSES

For a monthly online listing of upcoming Portland metro events, click here.


©2016 BHH Affiliates, LLC. An independently operated subsidiary of HomeServices of America, Inc., a Berkshire Hathaway affiliate, and a franchisee of BHH Affiliates, LLC. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc. Equal Housing Opportunity.