Tag Archives: Home Prices

A new analysis released by real estate marketplace Zillow revealed that for most buyers who intend to spend at least three years in a home, buying is a better option than renting. An analysis of the ""breakeven horizon"" in more than 200 metros and 7,500 cities showed that in more than 75 percent of metros examined, a homeowner would break even after owning a home for three years or less.

IHS' US Regional Economic Group released a report on Florida's economy as part of a series cataloguing the economic issues most important to swing states in November's presidential election. According to the report, the Sunshine State's payrolls averaged a 0.1 percent annualized decline during the first half of the year, with weaknesses showing up in the construction sector, as well as in state and local government employment.

While the month-month Case Shiller Home Price Index shot up in May a record high increase (2.2 percent) in the 20-city index and a near-record (2.2 percent increase) in the narrower 10-city index it also suggested employment has less to do with the change in home prices than might otherwise have been thought.

Home prices rose sharply in May cutting the year-year drop in prices to 0.7 percent from 1.8 percent in April, Standard & Poor's reported Tuesday in its Case-Shiller Home Price Index. Prices in the 20 cities surveyed rose 2.2 percent month-month. The 10-city index also improved 2.2 percent in May, shaving the year-year decline in prices to 1.0 percent in May from 2.2 percent in April. The month-month increase fell short of the 2.3 percent gain registered in June 2004. Economists had expected the 20-city index to grow 1.2 percent in May.

After being known as one of the hardest-hit cities, Phoenix has been gaining recognition for its rapidly rising prices. DataQuick reported the median sale price of a home in the Phoenix metro area in June rose for the seventh month in a row to $152,000, the highest level since late 2008. One of the reasons for the upswing in prices is the decline in foreclosure resales, according to DataQuick. Foreclosure resales fell to 21.2 percent of the resale market in June. The figure is the lowest level since January 2008, when foreclosure resales accounted for 18.6 percent of the resale market.

Higher asking prices drove off foreign homebuyers and investors over the last year, with real estate firm citing a 10 percent decline in foreign interest for the U.S. housing market. The housing bust attracted a number of foreign and cash buyers interested in low prices and the safe haven of U.S. real estate investment. The decline in overseas buyer and investor activity ran steep year-over-year.

While younger folks are oftentimes viewed as being more prone to taking risks than more elderly people, a study found that this idea doesn’t ring true when it comes to buying a home during an economic downturn. The study was authored by economists from the Federal Reserve Bank of Boston, Anat Bracha and Julian C. Jamison, and examined how the recession affected attitudes toward homeownership. The study found that people who lived in hardest-hit ZIP codes in 2008 were significantly more likely to be confident about owning a home if they are older (over 58), but are significantly less likely to be confident about owning a home if they are younger.

With foreclosure starts up in the second quarter of 2012, RealtyTrac listed the top 10 metros to buy or invest in foreclosures for the remainder of 2012. Overall, 132 out of 212 metropolitan areas with a population of 200,000 or more posted increases in foreclosure starts from the previous quarter, according to RealtyTrac. The bump in starts marks a 60 percent gain and means more foreclosure inventory for those markets. RealtyTrac's list includes metros where the average foreclosure sales price is increasing on an annual basis, average foreclosure sale discounts are still 15 percent or higher, and the unsold inventory of REOs represents a supply of 20 months or fewer.

Compared to the two-year high for new home sales in May, June's figures were met with disappointment. On Wednesday, the Census Bureau reported new home sales dropped 8.4 percent month-over-month. In an IHS Global Insight commentary, economists Patrick Newport and Michele Valverde pointed out that figures for March, April, and May were all revised up, and that sales were up in the Midwest and West, but down in the Northeast and South.Thus, IHS described the report as mixed. Also, unless June ends up breaking the trend for upward revisions, a Capital Economics report said June's sales would have actually been 383,000 if the adjustments seen in previous months are added.

Data in Barclays' newest Securitization Products Weekly suggests that distressed markets are outperforming others in home appreciation and paving the way for a broad-based housing recovery. Barclays waved off concerns about shadow inventory, saying it is more of a symptom than a cause of depreciation and speculated that the share of distressed homes is a more significant factor keeping home prices down. An increased REO stock should actually be taken as a positive sign for non-distressed prices, Barclays said.