Market News: Home Prices Rose in Q1
Home prices rose 1.4 percent in the first quarter of 2017, according to the Federal Housing Finance Agency’s (FHFA) House Price Index (HPI). The HPI year-over-year— based on prices for homes with Fannie Mae- and Freddie Mac-backed mortgages— was up 6.0 percent.
“The steep, multi-year rise in U.S. home prices continued in the first quarter,” said Andrew Leventis, deputy chief economist for the FHFA, in a statement. “Mortgage rates during the quarter remained slightly elevated relative to most of last year, but demand for homes remained very strong. With housing inventories still languishing at extremely low levels, the strong demand led to another exceptionally large quarterly price increase.”
Per the Index, quarterly home price changes ranged from 1.0 percent in the Middle Atlantic Census division to 2.0 percent in the Pacific Census division.
Reprinted with permission from RISMedia. ©2017. All rights reserved.
Yesterday, the National Association of REALTORS® (NAR) released the July Housing Opportunities and Market Experience (HOME) Survey Results.
According to NAR, the HOME report was created to monitor consumer sentiment about the housing market. It covers core topics that will be tracked on a monthly basis such as views on housing as a good financial investment, whether homeownership is part of the American Dream, if now is a good time to buy or sell a home and perception of home price changes.
- In the second quarter of 2016, 74 percent of people believe that now is a good time to buy a home.
- Only 26 percent of people believe that now is not a good time to buy a home.
- Sixty-one percent of people believe that now is a good time to sell a home, up from 56 percent in Q1 2016. Thirty-two percent believe that strongly, up from 28 percent in Q1 2016.
- Forty-seven percent of those 34 years or younger have student loan debt.
Click here to download the full report.
From the PenFed Realty Blog
Virtual Town Hall: HUD Secretary and Realtor.com Chief Economist Discuss Millennials and the Housing Market at GW University
The latest research in urban areas indicates that Millennials are the largest group of homebuyers at 32%. They compose 68% of first time homebuyers, and just under half of them will be looking for a first time home during the next two years.
A recent town hall was held called “Millennials and the Housing Market.” In the following video recap, U.S. Secretary of Housing and Urban Development Julián Castro and two economists discuss millennial housing trends and answer questions before an audience of graduate students from George Washington University and online viewers.
- Millennial mortgages and the popularity of FHA loans
- The impact of student debt on millennial buyers
- The most popular housing markets for millennials
Be sure to watch this informative discussion.
Author: Sue Cushing
From the Prudential Real Estate Outlook Survey:
Slowly but surely, Americans are regaining confidence in the housing market and keeping the American dream of owning a home alive.
The new quarterly Prudential Real Estate Outlook Survey revealed that nearly two-thirds (64%) of respondents had a favorable perception of the U.S. housing market, a 4-point jump from the first-quarter 2012 survey and a 12-point increase from first quarter 2011. As a matter of fact, nearly seven out of 10 Americans surveyed (69%) also indicated that real estate is a good investment – that’s up 6% from first-quarter 2012 survey results and 17% from first quarter 2011.
Homeownership remains at the core of the American dream, with a solid 78% of respondents believing that owning a home is still very important. A full 98% said homeownership was at least somewhat important. In addition to historically low interest rates, one of the factors dominating the desire to own a home is centered on the family. More than financial security, tax benefits and a good investment, respondents prioritized owning a home as a place to raise a family and have control over their space.
Americans are dreaming with both feet on the ground.
Given the challenges and complexity of today’s real estate market, Americans remain cautious about the home-buying process, with 30% strongly agreeing that the housing crisis taught them to assert careful planning when buying or selling a home.
Cautiousness has also brought with it the willingness and openness to seek professional help in the process. A notable 74% of survey respondents think it’s more important than ever to work with a good agent for the best success in buying or selling a home, up from 72% in the first quarter 2012 survey.