Home Prices Still Rising, Inventory Still Dropping

Home Prices Still Rising, Inventory Still Dropping

On Wednesday, at 9 a.m. EST, the Federal Housing Finance Agency (FHFA) will release its House Price Index (HPI) for March. The Index covers single-family housing, using data provided by Fannie Mae and Freddie Mac.

Previously, the FHFA reported in its February HPI that home prices rose 0.8 percent month-over-month. In the report, January’s former unchanged index was revised to a 0.2 percent increase.

On a seasonally adjusted national level, prices are now nearly 10 percent higher than their March 2007 peak. Prices have seen a compound annual growth rate of 3.5 percent since 1991, 3.4 percent since 2000, and 6.2 percent since 2012.

Out of all nine census divisions, the Mountain region saw the…

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Homes are Shrinking Again

Homes are Shrinking Again

New single family homes are have been shrinking, according to the National Association of Homebuilders (NAHB).

According to Q1 2017 data from the Census Quarterly Starts and Completions by Purpose and Design and NAHB analysis, median single-family square floor area was slightly lower at 2,389 square feet. Average (mean) square footage for new single-family homes declined to 2,628 square feet.

According to the data, home sizes reached a plateau in 2015 and 2016 after experiencing a steady rise post-recession, but have started to drop off since. The current average home size is 2,624 square feet, 10 percent higher than the cycle low. The median size is 14 percent higher, at 2,402 square feet.

NAHB

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Falling Housing Inventory Stock is Troubling

Falling Housing Inventory Stock is Troubling

National Association of Realtors, a trend that continued into April.

"The inventory is reaching historic lows. It's never declined faster than it did last month. It's freaking us out—it's affecting our business; it's limiting our sales," said Redfin CEO Glenn Kelman, on CNBC. "We're going to be fine in terms of market share, but I think the overall industry for the first time is seeing sales volume really limited by the inventory crunch."

Data from Redfin shows that homes in April sold the fastest since 2010, and sold 10 days faster than a year previously. Many homes, one in four, sold above their list price. Kelman puts the blame partially on an unwillingness to sell, as many homeowners choose to…

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Household Debt Reaches Recession-Level Highs

Household Debt Reaches Recession-Level Highs

On Wednesday, the New York Federal Reserve released its Q1 report on household debt and credit. According to the report, total household debt totaled $12.73 trillion in Q1 2017. This means that household debt has finally surpassed its $12.68 trillion peak reached during the recession in 2008. This is a $149 billion quarterly increase.

“Almost nine years later, household debt has finally exceeded its 2008 peak but the debt and its borrowers look quite different today. This record debt level is neither a reason to celebrate nor a cause for alarm. But it does provide an opportune moment to consider debt performance,” said Donghoon Lee, Research Officer at the New York Fed. “While most delinquency flows have…

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5 Reasons to Look Up the Address While House Hunting

Be a Detective: Google the Address When House Hunting

It doesn't hurt to be a little curious — especially when you're searching for a new home.

Search-engine sleuthing is worth the effort to unearth the niceties — and perhaps negatives — when searching for your new home.

There’s probably not a day that goes by that you don’t Google something — the weather, a foreign phrase, directions, or news, just to name a few. With all the information Google can provide through its bird’s eye view, not Googling your address is practically a crime — especially when you’re searching for a new home (whether you’re house-hunting for a waterfront home in Fort Lauderdale, FL, or looking for a ranch house in Houston, TX). Here’s what you could find.

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Can You Get A Mortgage With Fair Credit?

Can you get a mortgage with fair credit?

Mortgage With Fair Credit: Yes, It's Possible

Many people with fair credit think they can't get a mortgage. After all, those with fair credit are not among the credit score elite -- those individuals with credit scores of 800 or more.

Instead, fair-credit borrowers are likely to have some late payments and maybe even a missed payment or two.

But there is some good news: You can get a mortgage with fair credit.

In fact, savvy lenders may be very interested in your business.

Click to see today's rates (May 5th, 2017)

Fair Credit Explained

Before you can figure out how to get a mortgage, you must understand what “fair credit” really means. This is a problem because the definition of fair…

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Financial Planning: 4 Reasons to Buy a House Today

Financial Planning: 4 Reasons to Buy a House Today

Homeownership will always be a part of the American Dream. There are advantages to owning your own home (educational, health, social) that far transcend any economic impact. However, we want to look at several of the financial advantages of homeownership in today’s post.

1. Buying is Cheaper Than Renting

The results of the latest Rent vs. Buy Report from Trulia show that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States. The report reveals that:

“Interest rates have remained low, and even though home prices have appreciated around the country, they haven’t greatly outpaced rental…

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3 Little-Known Facts That Help Military Home Buyers

3 Little-Known Facts That Help Military Home Buyers

Veterans Capitalize On Unique VA Loan Features

Home buyers often ask which type of loan is best for them.

FHA loans offer low downpayments, and the HomeReadyTM mortgage allows buyers to qualify based on income from all members of the household.

But for those who have served in the military, the best loan option is usually the VA home loan.

It is the only home loan that offers the unique combination of zero downpayment, no mortgage insurance, and rates that run more than a quarter percent lower than conventional rates.

Because the VA loan is unique, it incorporates features not found in any other loan type. These features are sometimes unfamiliar to home buyers, and that’s okay.…

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The Lowdown On Downpayment Grants

The lowdown on downpayment grants

Downpayment Biggest Obstacle For First Time Buyers

A recent survey by Trulia concluded that the top challenge for would-be homebuyers is the downpayment requirement.

Over half of potential buyers claimed saving a downpayment was a bigger issue than credit scores, income needed or housing prices.

Downpayment grants can help you meet this challenge.

Click to see your low-downpayment loan eligibility (May 5th, 2017)

Downpayment Assistance (DPA) Helps First Time Buyers

Downpayment grants are designed to help eligible buyers bridge the gap between their savings and the required downpayment for a mortgage.

This money doesn’t usually have to be repaid.

If you're in the market for a home and…

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Southeast a Popular Spot for Rental Investors

Southeast a popular spot for rental investors

Rental property investors are shifting their efforts toward the Southeastern U.S., with Florida, Texas, and Georgia making up the bulk of acquisitions, according to an RMBS research report released by Morningstar Credit Ratings on Friday.

According to the report, the shift is due to changing securitization trends—as well as investors being more selective in their purchases.

“In the infancy of securitized single-family rentals, institutional investors could acquire distressed properties at discounts through bulk purchases and auctions,” MorningStar reported. “However, a generally improved housing market, including sustained house price appreciation, has resulted in fewer of these buying opportunities.…

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