S&P CoreLogic Case-Shiller Home Price Index up 5.7% over Last Year… Reflecting higher prices in both the existing and new home markets, the home price index continues its upward march.
What it means – The gains weren’t evenly dispersed. I expected weakness this year, and it’s happening. Six of the 20 cities in the index showed declines for the second straight month, with Boston, Chicago, and New York looking particularly ugly. Those declines were masked by markets like Seattle, where foreign buyers are chasing deals and driving up prices well beyond what local incomes can support.
But this doesn’t mean that real estate is rolling over. Inventory remains tight. Builders and existing homeowners appear very attuned to the market, and are willing to yank inventory when things get soft. This is unlike years ago, when weak sales would draw sellers anxious not to miss the market. http://ow.ly/i/xdabx
One in four U.S. adults say they are considering buying a home this year, which extrapolates to a whopping 59 million people, according to a recent survey by Bankrate.com. Minorities are expected to be big buyers this year. More than two in five black survey respondents said they were considering buying a home. That is more than double the percentage of potential white buyers. “Black homeowners were harmed in greater numbers by the housing crash and the foreclosure crisis,” says Holden Lewis, a Bankrate.com mortgage analyst. “Now that the economy has improved and time has passed, maybe they’re ready to jump back in and own a home again.”
Also, older millennials and Generation X – which encompasses the ages of 27 to 52 – are showing more willingness to either become homeowners or trade up to a new home, the survey showed. Lewis notes, however, what many people say is not always what they’ll be able to do.
Rising rates and an uptick in home prices could prevent some would-be homebuyers from saving enough for a down payment and limited inventories could delay their efforts in finding a suitable home to buy. About 6 million new and existing homes were sold last year, according to the National Association of Realtors® and U.S. Census data.
Source: Realtor® Magazine Online http://ow.ly/i/sRxUv