Category Archives: Housing Market
Recovery Expected to Enter ‘Middle Innings’ in 2014
Recovery Expected to Enter ‘Middle Innings’ in 2014
Author: Krista Franks-Brock January 24, 2014 0
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While the housing market is still far from “normal,” it is inching that way, according to a report released Thursday from Zillow. Last year’s skyrocketing home price appreciation, frenzied demand from investors, and high tide of negative equity are all expected to subside somewhat this year, according to the real estate company.
Nationally, home prices increased 6.4 percent year-over-year in the fourth quarter, but annual price gains are expected to fall to 4.8 percent by the end of this year.
On a quarterly basis, prices rose 1.4 percent in the fourth quarter, according to Zillow.
“Below the surface of last year’s market, a number of unsettling trends started to emerge as a result of rapid and ultimately unsustainable appreciation, setting up a bit of a mixed bag for 2014,” said Stan Humphries, chief economist at Zillow.
However, some of the markets that posted the highest price gains last year are already slowing, which according to Zillow, is “a welcome sign in markets that risk crossing over into bubble territory as rising mortgage interest rates create affordability issues for homebuyers.”
Markets such as those in California and the Southwest that experienced rapid appreciation this year may stall this year due to affordability issues, leading to “volatility that could potentially cause whiplash for homebuyers and sellers,” according to Zillow.
Nationally, price appreciation is already tapering off, according to Zillow. After reaching a high of a 7.1 percent annual price gain in August, price gains remained below 7 percent for the entire fourth quarter.
However, local markets will vary widely this year with a 16.1 percent anticipated gain in Riverside, California, and a 0.4 percent gain anticipated in Kansas City, according to Zillow.
All but three of the nation’s 35 largest metros experienced price growth in 2013, and all but one are expected to experience price gains again this year, according to Zillow.
After posting a 3.8 percent decline last year, St. Louis, Missouri, is the only metro expected to experience falling prices this year with an anticipated 3.1 percent decline.
In two of the 35 markets Zillow tracks—Denver and Pittsburgh—home prices surpassed the peaks they reached before the housing downturn.
While home prices rose 1.4 percent in the fourth quarter to $169,000, rents rose 0.7 percent to $1,302.
Housing Recovery Unmoved by Rising Interest Rates
Author: Krista Franks-Brock January 23, 2014
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Mortgage rates may be rising, but the housing market doesn’t seem to mind. In fact, several indicators have improved alongside rising rates, according to the HousingPulse Tracking Survey released by Campbell Surveys and Inside Mortgage Finance this week.
The lending atmosphere is becoming friendlier, especially to first-time buyers. Simultaneously, the average time on market for non-distressed properties and the average sales-to-list price ratio both improved year-over-year in December, according to the survey.
“Six months after the May-June 2013 rise in interest rates, the housing market is showing remarkable resilience,” said HousingPulse research director Thomas Popik.
“[U]nderwriting standards are getting a little looser” at Fannie Mae and Freddie Mac, as well, according to Campbell and Inside Mortgage Finance.
The average credit score for GSE loans in the fourth quarter was 743, down from 758 a year earlier. Loan-to-value ratios at the GSEs rose from 75 percent to 76 percent year-over-year in the fourth quarter.
Fannie Mae and Freddie Mac increased their share of the purchase market as well as their share of the first-time homebuyer sector. In fact, the GSEs posted survey highs in both categories, according to the four-year HousingPulse survey. The GSEs accounted to 19.2 percent of purchase loans originated over the last three months of 2013, up from 16.5 percent a year earlier. The GSEs’ share of the first-time buyer market reached 19.5 percent, up from 14.1 percent a year earlier.
Looking at the broader market, time on market over the last three months of the year averaged 9.7 weeks, a decline from 12.4 weeks recorded at the end of 2012. The average sales-to-list price ratio increased from 95.5 percent at the end of 2012 to 97.1 percent at the end of 2013.
“A year-over-year comparison of key metrics points to a housing market that was stronger at the end of 2013 than it was at the end of 2012,” Popik said.
The HousingPulse Tracking Survey relies on input from 2,000 real estate agents each month and calculates its metrics on a three-month moving average.
December Existing-Home Sales Up 1%
Author: Tory Barringer January 23, 2014
Existing-home sales finished 2013 with a slight increase, closing the book on the strongest year for sales since 2006, the National Association of Realtors (NAR) reported Thursday.
Total existing-home sales–including all completed transactions of single-family homes, townhomes, condominiums, and co-ops–increased 1.0 percent month-over-month to a seasonally adjusted annualized rate of 4.87 million last month. November’s sales rate was revised down to 4.82 million.
December’s sales were down year-over-year, coming up 0.6 percent short of December 2012’s pace of 4.90 million.
Removing all other types of sales, sales of existing single-family homes rose 1.9 percent from November to an adjusted annual rate of 4.30 million. Compared to the prior year, single-family sales were down 0.7 percent.
For all of last year, NAR estimates there were 5.09 million existing-home sales, a 9.1 percent improvement from 2012.
“Existing-home sales have risen nearly 20 percent since 2011, with job growth, record low mortgage interest rates and a large pent-up demand driving the market,” said NAR chief economist Lawrence Yun. “We lost some momentum toward the end of 2013 from disappointing job growth and limited inventory, but we ended with a year that was close to normal given the size of our population.”
While sales were up from November, it wasn’t new homeowners driving the increase: First-time buyers accounted for 27 percent of purchases in December, down from 28 percent in November and 30 percent in December 2012. All-cash sales–often reflective of investor activity–made up 32 percent of December transactions, unchanged from November and up from the previous year.
Even with prices and mortgage rates slated to rise, NAR president Steve Brown says sales should hold strong in 2014 as job numbers improve. That doesn’t mean the year won’t be without challenges, though.
“The only factors holding us back from a stronger recovery are the ongoing issues of restrictive mortgage credit and constrained inventory,” Brown said. “With strict new mortgage rules in place, we will be monitoring the lending environment to ensure that financially qualified buyers can access the credit they need to purchase a home.”
The national median existing-home price for all housing types in December was $198,000, up 9.9 percent year-over-year. A comparatively smaller share of distressed sales (14 percent compared with December 2012’s 24 percent) accounted for some of the price growth, NAR reported.
The median existing single-family home price was $197,900, up 9.8 percent from the year prior.
Local Markets Return to ‘Normal’
BY: KRISTA FRANKS BROCK
More than 35 percent of the more than 350 metro markets tracked in the National Association of Home Builders’ and First American’s Leading Markets Index are performing at 90 percent or higher of their pre-housing crisis norms, according to the latest Leading Markets Index.
Previously, NAHB and First American tracked markets based on their rate of growth in the Improving Markets Index. Instead, the Leading Markets Index compares each market to its pre-crisis norms in terms of current permits, prices, and employment.
Currently, 56 markets have turned the corner and returned to normal, up from 54 last month.
“More markets are slowly returning to normal levels and we expect this upward trend to continue as an improving economy and pent-up demand brings more home buyers back into the marketplace,” said Rick Judson, chairman of the NAHB.
A majority of the markets that are back to normal levels are smaller markets with populations of less than 500,000. Forty-eight of the 56 markets that are back to normal fall into this category, with many benefitting from strong energy sectors, which lead to strong employment.
Overall, metro markets across the nation are performing at an average of 86 percent of normal levels in terms of permits, prices, and employment, according to NAHB. Forty-five percent of metros are exceeding this rate.
Among large metros, Baton Rouge, Louisiana, in performing best, 42 percent better than its pre-crisis level. Oklahoma City, Oklahoma, Austin Texas, and Houston, Texas, are also at the top of the list of major metros.
Among smaller metros, two are performing at twice their pre-crisis level—Odessa, Texas, and Midland, Texas.
As markets continue to work their way back to normal and/or surpass their previous norms, Judson says, “Policymakers must be careful to avoid actions that would harm consumer confidence and impede the ongoing recovery.”
Job openings in Warner Robins
Submitted by Jacqueline Harnevious, 13WMAZ Community Web Producer
Thursday, November 21st, 2013, 7:00am
Each Thursday, a Georgia Department of Labor representative joins 13WMAZ toshare several open jobs in the Central Georgia area.
You can watch this on 13WMAZ-TV on Thursday mornings and again at 5 p.m.
The jobs are updated here weekly.
Call the Department of Labor Career Center at (478) 751-6164 and give them the job number of the position that interests you. You can also check out other jobs on the Georgia Department of Labor’s website.
Job Title: CNA
Location: WARNER ROBINS GA
Pay: Depends On Experience
Education: 12 Years
Job Number: GA8137530
Applicant will provide basic patient care under direction of nursing staff to include the following: feeding, bathing dressing, grooming, moving patients or changing linens.
Job Title: Maintenance Technician
Location: Warner Robins GA
Pay: N/A
Education: 12 Years
Job Number: GA8138280
Must have a high school diploma or GED. Must have 24 months maintenance technician, pump maintenance and repair experience, control panel and electronic components and welding experience. Must be proficient in Microsoft Word and Excel.
Three Houston Co. schools named state high-performing reward schools
Submitted by HCBOE
Monday, November 18th, 2013, 5:07pm
Flickr source: dave fayramHOUSTON COUNTY, GA – Kings Chapel Elementary, Linwood Elementary and Shirley Hills Elementary have been named Reward Schools by the Georgia Department of Education (GaDOE). This award is reserved for Title 1 schools with the highest performance or the biggest academic gains by students in the last three years. Houston’s three schools are among 78 schools statewide honored in the Highest Performance category. Ranked in the top five percent of Title I schools, the schools were chosen for this honor because they have the highest performance for the “all students” group over three years.
“These faculties and staffs work very hard to provide the best for their students,” commented Superintendent Dr. Robin Hines. “This state recognition represents years of excellence. I am so proud of these administrators, teachers, students and their families!”
Reward and Alert schools are identified as part of the state’s waiver from the Elementary and Secondary Education Act. This is the second year the GaDOE announced Reward and Alert Schools – Shirley Hills Elementary was also a 2012 Reward School, again in the highest performance category. The 2013 Reward and Alert Schools were released on Nov. 12, 2013.
Kings Chapel Elementary is located at 460 Arena Rd in Perry; Paulette Tompkins serves as principal. Tompkins may be reached at 478-988-6273 or Paulette.Tompkins@hcbe.net. Linwood Elementary is located at 61 Martin Luther King, Jr. Blvd, in Warner Robins where Dr. Amanda Brantley serves as principal. Dr. Brantley may be reached at 478-929-6360 or Amanda.Brantley@hcbe.net. Shirley Hills Elementary is located at 300 Mary Lane in Warner Robins with Dr. Traci Jackson serving as principal. Dr. Jackson may be reached at 478-929-7824 or Traci.Jackson@hcbe.net.
Warner Robins neighborhood plans crematory protest
Submitted by Jake Wade, 13WMAZ News Convergence Coordinator
Monday, November 18th, 2013, 1:19pm
By Claudia Taylor
Residents in a Warner Robins neighborhood are holding out hope that construction will stop on a crematory that’s being built next door to their subdivision.
More than 80 Rose Hill homeowners attended a neighborhood meeting Saturday to discuss plans to protest the Burpee-Scott Memorial Chapel, that’s being built on Highway 41.
Charlie Toole and his neighbors say they’re concerned that their property values will decline after the crematory is built.
They say they also want to avoid hazardous smoke, and fumes that they believe the crematory will produce.
Some people signed petitions, and made plans to attend the next city council meeting to discuss the issue.
Mayoral candidate Randy Toms and City Councilman Tim Thomas were at the meeting.
Thomas says he’s willing to help the Rose Hill community in any way that he can.
The next city council meeting is scheduled for Monday, November 18.
Some Rose Hill residents say they’ll protest at City Hall around 3:45 that afternoon.
Recovering Housing Market to Spur Economic Recovery in New Year
Recovering Housing Market to Spur Economic Recovery in New Year
BY: KRISTA FRANKS BROCK
Next year will likely be the first year since 2000 that home purchases outpace refinances, according to Freddie Mac’s expectations. Furthermore, the rallying housing market should set the broader economy on a brighter path, according to Freddie Mac’s U.S. Economic and Housing Market Outlook for November.
“Led by a resurgent housing sector, 2014 should shape up to be better than 2013,” Freddie Mac stated in its outlook.
Housing starts, which have been slow, should rise to a pace of about 1.15 million in 2014, according to Freddie Mac.
This is more in line with the historical average of 1.1 million per year reported by the Census Bureau. In comparison, the Census Bureau recently reported household formation over the first three quarters of this year at just 380,000.
Freddie Mac expects home sales to increase 5 or 6 percent in the new year, but tight inventory will prevent further increases.
Home values will continue to increase, albeit at a slower pace. Freddie Mac expects home price growth to be about the same as home sales growth—5 or 6 percent.
Rental prices will also continue to rise, but like housing prices, their pace will moderate. Freddie Mac expects rents to rise at a pace of about 5.3 percent next year.
Mortgage rates will reach about 5 percent for 30-year, fixed-rate mortgages by the end of 2014, according to Freddie Mac. While this will not threaten affordability in most markets, it may dampen affordability in a few higher-priced markets, according to the outlook.
Also, Freddie Mac noted there may be “some volatility in the short-term” resulting from uncertainty surrounding fiscal policies, such as the debt ceiling and the Federal Reserve’s tapering of its MBS purchases.
The overall good news for the housing market translates to good news for the broader economy, according to Freddie Mac.
The rise in housing starts should translate to 700,000 new jobs, according to economists at Freddie Mac.
These new jobs will help bring the unemployment rate below 7 percent “perhaps by mid-2014,” Freddie Mac stated.
Economic growth is expected at 2.5 to 3 percent for the year, which is “more than 0.5 percentage points better than is projected for 2013,” according to Freddie Mac.
Report: Homes Selling Faster Than Previous Year
Report: Homes Selling Faster Than Previous Year
11/14/2013BY: ASHLEY R. HARRIS
Nationwide, homes listed for sale on Zillow were selling at a rapid clip, to the tune of a month faster in September than a year ago, according to a new analysis. Zillow measured homes sold on the real estate marketplace, and as a whole homes in September spent a median of 86 days on Zillow, down 30 days from 116 days in September 2012.
Among the 30 largest metro markets covered by Zillow in September, homes moved the fastest and spent the fewest days listed on the site in the Bay Area (48 days); Sacramento, California (59 days); and Dallas, Texas (60 days). Homes sold faster this September compared to last September in 30 of the largest metros. Those metros include Las Vegas (44 days faster), Sacramento (43 days faster), and San Antonio (37 days faster).
Zillow calculated the median number of days listings spent on Zillow, at the national, metro, and county levels, dating to January 2010. In order to correct for homes that are listed, then removed and re-posted with new prices, Zillow considered multiple listings within 40 days at the same address as one listing. Since the beginning of 2010, homes nationwide have spent a median of 119 days on Zillow before being sold or taken off the market.
“The declining inventory of for-sale homes over the past year naturally creates pressure for buyers to more quickly snap up the inventory that is on the market. This demand has been fueled by huge resets in home prices since market peak, historically low mortgage rates and a slowly improving broader economic climate,” said Dr. Stan Humphries, Zillow chief economist.
“Home shoppers in today’s environment need to be prepared to move quickly, with pre-approvals in place and an established sense of what they’re willing to pay for a home,” he continued. “But even though things are moving fast, buyers should resist the urge to enter into bidding wars or pay prices they’re uncomfortable with. We do expect that this need for speed will abate in the near-term as mortgage rates rise and more inventory becomes available because of new construction and declining negative equity.”
D&A Development Website
D&A Development 