This Week in Real Estate: May 9, 2016

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Happy Mother’s Day to all you moms. Thank you for all you do each and every day as a mom. The significance you bring to a child and home is unparalleled.

Price appreciation in the West tops headlines This Week in Real Estate. Below are a few highlights from the first week of May that influence our business:

* West Leads Nation in Home-Price Appreciation. Home prices nationwide, including distressed sales, moved higher year-over-year by 6.7% in March 2016 compared with March 2015 and increased month-over-month by 2.1% in March compared with February 2016, according to the CoreLogic Home Price Index. The CoreLogic HPI Forecast indicates that home prices will increase by 5.3% on a year-over-year basis from March 2016 to March 2017. “Home Prices reached the bottom five years ago, and since then have appreciated almost 40%,” said Anand Nallathambi, president and CEO of CoreLogic. “The highest appreciation was in the West, where prices continue to increase at double-digit rates.” “Demand is starting to weaken in some areas, particularly in the West, where the median home price has risen an astonishing 38% in the past three years,” said Lawrence Yun, NAR chief economist.
Full Story…  http://www.corelogic.com/about-us/news/corelogic-us-home-price-report-shows-home-prices-up-6.7-percent-year-over-year-in-march-2016.aspx

* Distressed Property Sales Continue to Drop. Distressed sales accounted for 11.1% of total market sales in February 2016, down 2.9% annually and 0.4% from January, according to CoreLogic’s most recent report. Within those distressed sales, Real Estate Owned sales accounted for 7.8% and short sales accounted for 3.3% of total home sales for February. These REO sales decreased by 2.9% annually to their lowest level since 2007. Short Sales, on the other hand, hover between 3% and 4%. At their peak in January 2009, distressed sales totaled 32.4% of total market sales with REO’s making up 27.9%.
Full Story…  http://www.housingwire.com/articles/36973-distressed-sales-continue-to-drop?eid=322520585&bid=1397426

* 5 Charts That Reveal The Future of Residential Construction. Despite the lack of surging growth in homebuilding, economists are optimistic about the industry’s future. Len Kiefer, deputy chief economist at Freddie Mac, said he expects 2016 to be housing’s “best year in a decade.” The single-family market is expected to see the strongest growth this year, as Robert Dietz, National Association of Home Builders chief economist, predicts 2016 will be the first year since the crash that single-family construction will outpace multifamily. His forecast includes a 14% rise in the sector this year and a 19% surge in 2017. “We see growth accelerating in 2017 as more workers and more lots are added,” Dietz said. Despite the positive predictions for the industry, economists emphasized the obstacles that continue to hinder new construction. Dietz referred to the three major issues as the “3Ls:” labor, lots and lending.
Full Story…  http://www.constructiondive.com/news/5-charts-that-reveal-the-future-of-residential-construction/418307/

Have a productive week!
Jason

 

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