Multiple third quarter analyses were released This Week in Real Estate by groups like CoreLogic and NAR, highlighted by the continued growth of home equity and home price appreciation. Below are a few highlights from the first week of November that influence our business:
* Home Equity Wealth Doubled in Last 5 Years. Home prices nationwide, including distressed sales, increased year-over-year by 6.3 percent in September compared with September 2015 and increased month-over-month by 1.1 percent in September 2016 compared with August 2016, according to the CoreLogic HPI. “Home equity wealth has doubled during the last five years to $13 trillion, largely because of the recovery in home prices,” CoreLogic Chief Economist Frank Nothaft said. “Nationwide during the past year, the average gain in housing wealth was about $11,000 per homeowner, but with wide geographic variation.” Going into next year, CoreLogic predicts that home prices will only continue to rise, with the company estimating an increase of 5.2% from September 2016 to September 2017. Monthly, home prices are expected to increase 0.3%.
Full Story… http://www.corelogic.com/about-us/news/corelogic-us-home-price-report-shows-prices-up-6.3-percent-in-september-2016.aspx
* Housing Supply Crunch Accelerates Metro Home Price Growth During Third Quarter. Persistent supply shortages throughout the country led to slightly faster home price appreciation during the third quarter, according to the latest quarterly report by the National Association of Realtors. The report also revealed that seven of the ten most expensive housing markets in the U.S. are in the West, including San Jose, California, which had a median single-family home price of $1 million for the second straight quarter. The national median existing single-family home price in the third quarter was $240,900, which is up 5.2% from the third quarter of 2015 ($228,900) and surpasses this year’s second quarter ($240,700) as the current peak quarterly median sales price. Total existing-home sales, including single-family and condos, slid 2.2 percent to a seasonally adjusted annual rate of 5.38 million in the third quarter from 5.50 million in the second quarter of this year, and are 0.4% lower than the 5.40 million pace during the third quarter of 2015. At the end of the third quarter, there were 2.04 million existing homes available for sale, which was 6.8% below the 2.19 million homes for sale at the end of the third quarter in 2015.
Full Story… http://www.realtor.org/news-releases/2016/11/housing-supply-crunch-accelerates-metro-home-price-growth-during-third-quarter
* 2.5 Million Consumers Hit By Financial Crisis Ready to Reenter Housing. The time frame for borrowers who were significantly hit after the financial crisis to improve their credit score is about to happen, opening the door for a lot of consumers to reenter the housing market. According to Experian’s latest analysis, foreclosures, short sales and bankruptcies remain on a credit report for seven years, which means these items are due to fall off credit files of 2.5 million consumers between June 2016 and June 2017. And even better for the housing market, the analysis shows that 68% of these consumers are scoring in the near-prime or higher credit segments, meaning the opportunity for this group to qualify for mortgage loans is growing. “In the coming years, boomerang borrowers will be a critical segment of the real-estate market,” said Michele Raneri, vice president of analytics and new business development at Experian. “While many of these borrowers have gone through a very difficult time, it is encouraging to see them taking control of their finances with better credit scores and all-around better credit management.”
Full Story… http://www.housingwire.com/articles/38405-5-million-consumers-hit-by-financial-crisis-ready-to-reenter-housing?eid=322520585&bid=1572876
Have a productive week.