Market Studies

The number of construction job openings dropped 6,000 and there were 11.5 available workers for open construction job, the Bureau of Labor Statistics reported Thursday in its monthly Job Openings and Labor Turnover Survey report.

First-time claims for unemployment insurance rose 4,000 to 371,000 for the week ended January 5, the Labor Department reported Thursday. Economists expected claims to drop to 362,000 from the prior week.

Out of all U.S. homeowners, 29.3 percent, or 20.6 million, own their home free and clear of a mortgage, according to an analysis from Zillow. Among the 30 largest metro areas, Zillow found Pittsburgh had the highest share of homeowners without mortgage debt--38.6 percent. Zillow chief economist Dr. Stan Humphries explained determining where mortgage-free homeowners are located can also bring insight into potential inventory and demand in certain areas.

The year 2012 is on its way to becoming the most affordable year housing has seen since recordkeeping began in 1970, according to data from the National Association of Realtors (NAR). In November, the NAR's Housing Affordability Index reached 198.2, down 2.5 index points from October, but up 1.5 points from a year ago. Based on data up to November, NAR also projects the index will set a record high of 194 in 2012, beating the high of 186 in 2011.

While the mortgage market continues its slow trod toward recovery--with distressed liquidations and delinquencies on the decline--industry participants await the final word from lawmakers on one key issue affecting the future of their businesses. The Consumer Financial Protection Bureau has expressed its intent to announce its final decision on what constitutes a qualified mortgage this year. This, in turn, will give the industry some insight into what can be expected to define a qualified residential mortgage (QRM), according to Fitch Ratings.

Fewer businesses in the mortgage industry went under in Q4 2012, according to data from Mortgage Daily. The number of mortgage businesses--banks, credit unions, and non-bank mortgage firms--that fell dark in Q4 of this year stood at 13, down from 17 in Q3 and halved from 26 during the same quarter in 2011, Mortgage Daily reported. In 2012 alone, 82 mortgage businesses had to shut their doors, a steep decrease from 137 in 2011 and the lowest number since 2006, when 31 businesses failed.

The National Association of Home Builders reported the First American Improving Markets Index rose for the fifth consecutive month in January. The index reached 242 and once again, achieved a record high. The index measured 201 in December. According to the NAHB, the list of improving markets now includes entrants from 48 states and the District of Columbia. The only states not represented are Kansas and New Mexico.

National home prices finished 2012 with a strong yearly gain, but prices fell flat quarter-over-quarter in December, according to a report from Clear Capital. Prices in December saw a 0.9 percent quarterly increase, remaining mostly unchanged from the 1 percent quarterly improvement in November, Clear Capital reported. Year-over-year, national home prices grew by 4.9 percent. The data provider expects to see continued growth into 2013, but estimates the increase will be slower at 2.1 percent.

Consumers continued to show increased optimism toward home price, rental price, and mortgage rate expectations, a sign that home purchase activity may see a boost in the coming months, according to results from Fannie Mae's latest National Housing Survey. The average 12-month home price change expectation jumped from 1.7 percent in November to 2.6 percent in December, the highest level since the survey's inception in 2010. To compare, the average price change expectation a year earlier was only 0.8 percent. The share of respondents who believe home prices will rise over the next year also reached its highest recorded level, increasing 6 percentage points to 43 percent.

Foreclosure inventory may be decreasing, but certain metros showed high levels of foreclosure activity in 2012, which means they might also be places where foreclosure listings-short sales or REOs--could increase, according to an article from RealtyTrac. After assessing foreclosure activity across the country, the foreclosure data provider released a list of 20 metros where for-sale foreclosures are expected to rise in 2013. Among the list of 20 metros, eight were based in Florida.