Are Investors Changing Rental Housing?

Are Investors Changing Rental Housing?

When large investors such as Blackstone and Colony American Homes began buying up single-family homes in 2011, most observers considered the acquisition a short-term play. Now, although acquisition has slowed, all indicate large investors are in it for a longer haul. How will their business models change the dynamics of the rental marketplace? How large a presence do these mega single-family owners represent in rental markets? At the end of 2013, mega-investors controlled about 200,000 single-family properties. That’s not much in a national market of 13 million single-family home rentals. So Are You Ready to Invest ? read more.

Markets See Moderate Home Prices

Markets See Moderate Home Prices
The median price of residential properties – including both distressed and non-distressed sales. “The nationwide  home price increase, however, masks slowing home price appreciation in the majority of housing markets across the country. This slowing appreciation was expected and provides another sign that the real estate recovery thus far is behaving rationally. The housing market is entering a dicey transition phase where it is becoming much more reliant on first-time home buyers and move-up buyers to sustain the recovery as investor involvement wanes. The median price of U.S. residential properties sold in July — including both distressed and non-distressed sales — was $191,000, up 3 percent from the previous month, read more.

What Matters More to Buyers Price or Rates?

What Matters More to Buyers Price or Rates?

There has long been a saying in the real estate market that potential home buyers don't buy according to the home price or the mortgage rate. Instead, ' they buy the monthly payment.' The monthly payment is, of course, a combination of rate and price, but the weight of each can change dramatically. A dramatic rise in home prices, like we saw last year, can slow home sales even when mortgage rates are low if mortgage availability is tighter. That's what we saw in the first half of this year. Home prices, which jumped by double digits in 2013, are only now beginning to ease. Know Fast forward to today. Mortgage rates are near historic lows, read more.

FHA Revises Prepayments Rules

FHA Revises Prepayments Rules

The Federal Housing Administration announced earlier this week the passing of two new rules – one that prohibits lenders from charging interest on FHA-insured mortgages that are paid in full and one that changes the requirements for lenders with regards to informing borrowers of changes to their FHA-insured adjustable-rate mortgages.The FHA says the new rules will 'provide consistent protections for borrowers with FHA-insured mortgages, while ensuring borrowers have early access to information when making decisions about their FHA mortgages.'  read more.

Is Homes Built for Rent a Market, or a Phase?

Is Homes Built for Rent a Market, or a Phase?
Construction of single-family homes that are built-to-rent is making up a smaller share of new-home construction, according to newly released Commerce Department data. “We’re going back to 2 percent to 3 percent over the long run as first-time buyers come back into the marketplace and the rest of the single-family (for-sale) market expands. "The constant question is if this is a market or a trend,”said John Wojtas, Paxis's president. "I really do think it is a permanent market here to stay." Read more

Are Flipping Houses Fading? As Inventories Rise

Are Flipping Houses Fading? As Inventories Rise

Fewer Investors Are Flipping Houses as Rising Inventories Lift Home Sales, "The number of houses for sale is higher than a year ago and tamer price increases are giving perspective buyers less hesitation about entering the market," says chief economist. More people are buying homes compared to earlier in the year, and this trend should continue with interest rates remaining low and apartment rents on the rise. On homes flipped in the second quarter, Fewer single-family homes were flipped, with the percentage falling to a two-year low, according to U.S. Home Flipping Report. Yun cautions that housing affordability is likely to decline in the upcoming years, even as Mortgage Rates Sink to New Low for 2014

High Rents Prevent Potential Buyers From Owning

High Rents Prevent Potential Buyers From Owning

Home prices rose to $174,800 in July, up 0.2 percent from June and 6.5 percent from this time last year and Fixed Mortgage Rates Sink to Lowest Level of 2014 this week. At the same time, renters signing leases at the end of the second quarter paid 29.5 percent of their income toward rent, compared to 24.9 percent in the pre-bubble period. What does this means for the future of the housing market could it be trouble? Read more.

3 Reasons Single Homeowners are Buying Now

3 Reasons Single Homeowners are Buying Now
Seventy-five percent of single home owners ages 25 to 50 say home ownership is important to them, according to a new survey. These are the top three reasons single home owners say they decided to buy: They viewed home ownership as an investment in their financial future; they were tired of paying rent and they thought it was the right time to purchase a home. We are in the midst of a shift in the home-buying population, home ownership is a major life decision for singles and that it is just as important a part of the American Dream for them as it is for married couples.” But single home buyers say it wasn't easy to achieve home ownership because they had to make several sacrifices in order to buy a home, read more.

Homeowners Create In-Law Suites for Aging Parents

Homeowners Create In-Law Suites for Aging Parents
Demand for in-law suites is on the rise as baby boomers age, and with the cost of care-giving facilities and services soaring, it may be more affordable for parents to move in with their children. More homeowners are remodeling their dwellings to create in-law suites for aging parents. As more generations pile under one roof, the median size of homes has risen by nearly 1,000 square feet in the last 40 years-from 1,525 square feet in 1973 to 2,491 square feet in 2013. In Post-Recession Era, Young Adults Drive Continuing Rise in Multi-Generational Living.  Builders are responding, read more.

Credit Makes Homeowners Insurance Higher

Credit Makes Homeowners Insurance Higher

A lower credit score not only makes it hard to qualify for a loan: Some home owners are finding that after moving in, bad credit can make the costs of homeowners insurance higher. Home owners who have poor credit pay 91 percent more for homeowners insurance than those who have stellar credit. Home owners with a fair or median credit score may pay 29 percent more for homeowners insurance than someone with stellar credit, according to the report. How insurance companies weigh a person's credit score can vary greatly from company to company and even state to state,  watch the video and see the chart  for your state.

All-Cash Decline and Housing Loses Momentum In Q2

All-Cash Decline and Housing Loses Momentum 
The second quarter of 2014 saw fewer all-cash home sales than the first quarter as institutional investors backed off from the market. Cash buyers that kicked off two years ago when U.S. home prices hit bottom is finally showing signs of subsiding. The decline came as the share of sales to institutional investors—defined by the company as those that purchase at least 10 properties in a year—fell to its lowest level since the start of 2012. The good news is that fewer cash buyers should help loosen up inventory of homes for sale and reduce competitive bidding, giving first time homebuyers and other non-cash buyers more opportunities, read more.

Mortgage Rates Roll Back and Home Prices Increase

Mortgage Rates Roll Back and Home Prices Increase

Mortgage rates continue on a low streak this week, with the 30-year fixed-rate mortgage averaging its low for the year, 4.12 percent. It's the same low the 30-year rate mortgage reached in May as well as during a week in July, Freddie Mac reports in its weekly mortgage market survey. Fixed-rate mortgage started the year at 4.5 percent, and have countered many forecasters expectations so far by not rising, but instead dropping. FNC found that despite continued signs of leveling off in home price ppreciation, U.S. home prices were up, read more.

Home Buyers Look to Suburbs for Good Schools,

Home Buyers Look to Suburbs for Good Schools

Young Home Buyers the next generation of home buyers is ready to move to the suburbs if it means good schools. As kids start going back to school across the nation, today revealed the most popular cities and schools viewed using its search-by-school feature, which allows people to explore homes for sale based on specific schools and school districts. In fact, millennials – the generation born between 1980 and 2000 – are less likely than other generations to compromise on school districts when in house-hunting mode, Learn more about Utah Schools.

As Entry-Level Homes Dry Up

As Entry-Level Homes Dry Up

Are First-Time Buyers Stuck? For-sale inventories may be at nearly a two-year high, but first-time home buyers are still finding themselves shut out of the housing market, being outbid and still not finding enough choices in their price range, Reuters reports. A decline among inventories for entry-level homes has worsened during the past year as discount foreclosures have faded and investors have continued to buy up low-priced homes and turn them into rentals through all-cash deals. On the other hand, inventories rose 3 percent in the middle of the market and soared 15 percent at the top, according to the analysis, read more.

Making the Move to Manufactured Homes

Making the Move to Manufactured Homes

Industry executives attribute the change both to downsizing retirees and skyrocketing real-estate prices in certain areas, which are prompting more people to consider trailer living as a (relatively) affordable option.

People want tile floors, hardwood, granite countertops, open kitchens, stainless steel [appliances]—things that weren't even options back in the day. This market also has come to include younger buyers looking for affordable housing in high-price coastal areas. 'We put a lot in higher-end beach communities, Learn more on these types of homes.

Housing Market Flat while Rents Skyrocketing

Housing Market Flat while Rents Skyrocketing

Rental Affordability Crisis Spreads to Middle America continue to plague renters, and the problem is going to only get worse all over the country. “Overall, housing dynamics are currently changing,” CoreLogic’s chief economist, said last month. “Rental demand is rising while supply is dwindling as a result of the declining share of distressed assets relative to all homes on the market. Due to this trend, rent prices will continue to climb.” Along with rents increasing the number of housing markets that have returned to their last normal levels of economy activity remained flat in August, read more.

REO Shrinking “Modest Increase In Price'

REO Shrinking “Modest Increase In Price'

Fannie Mae and Freddie Mac have been working through the REO inventory load they hold on their books. In the second quarter of this year, Fannie Mae’s REO inventory stood at 96,796 compared to 166,787 properties it held in the third quarter of 2010. Freddie Mac is also reporting a large decrease. Fannie Mae says that in the first half of this year it has seen a“modest increase in REO prices”.  REO numbers have been steadily dropping over the last few quarters as foreclosures continue to fall nationwide, read more.

New Formula Could Revamp Credit Scores

New Formula Could Revamp Credit Scores

As Mortgages Tick Up Slightly This Week, Borrowing costs inched up moderately on fixed-rate mortgages, but still remain lower than last year’s averages, Freddie Mac reports. The New Formula model will be available to lenders through the country's various reporting agencies starting in the fall. FICO Score 9 uses a more refined treatment of consumers with a limited credit history. The key difference in the new model is that strikes from medical collections will have a lower impact. The expected boost could make a difference in terms of required down payments or interest rates, read more.

Looming Home Equity Resets

Looming Home Equity Resets

Fears Fading: Millions of customers with home equity lines of credit are expected to see their payments rise in the coming years, but lenders don’t believe these customers pose as much risk to the housing market as they originally feared., The home equity lines of credit, known as Helocs were originated before the housing market collapsed and as home values were still continuing to climb. Many of those lines have a 10-year draw period. But once that period ends – which for many begins next year –borrowers must then begin paying both interest and principal on outstanding balances, read more.

New Mortgage Rules Blamed for Fewer Home Loans

New Mortgage Rules Blamed for Fewer Home Loans

Lenders Blame QM Rule: New mortgage rules enacted this year are prompting banks to issue fewer home loans, according to a Federal Reserve Board report released this week. Qualified Mortgage (QM) is a law about ensuring lenders only make loans to borrowers who have the ability to repay the loan. New QM rules make sense to protect the consumer, but can also give lenders pause. Under the CFPB's rules which went into effect in January, loans must meet certain underwriting criteria to be considered qualified mortgages, Learn more.

Affordable Housing Propels

Affordable Housing Propels

Fastest-Growing Cities and Affordable Housing Draws Middle Class to Inland Cities: Maybe the middle class hasn't disappeared; maybe it's just gone somewhere else. Some of the nation's fastest-growing cities are those where housing costs are lower than the national average, a reversal from the start of the millennium, when looser credit allowed cities to grow without regard to housing costs, The New York Times reports. Prices rose mostly rapidly in the West at 14.0% over the 4-quarter period ending in the first quarter of 2014, read more.

Are Potential HomeOwners Shrinking?

Are Potential HomeOwners Shrinking?

Rising home prices aren’t the only thing that may give buyers sticker shock:

While 'price-out' numbers were high at the national level, NAHB noted the number of households affected varied from area to area depending largely on population, income distribution, and local new home prices.. Mortgage closing costs have soared nearly 6 percent over the past year, according to a new survey by Bankrate. Rising Closing Costs Pinch Buyers' Wallets.

Should We Be Cheering Slower Home Price Gains?

Should We Be Cheering Slower Home Price Gains?
Housing Slowdown Could Be Good for Buyers: The growing signs of a slowdown in the housing market might be good 

news for home buyers. Slowing home prices—after the double-digit increases last year—mixed with still-low interest rates are making homes more affordable. Also, the supply of homes for sale today represents 5.8 months of demand, the most since October 2011. But despite low interest rates and slowing home prices, first-time home buyers have mostly been absent from the housing recovery so far.  'From an individual perspective, the best investment you can make is to buy a primary residence and analysts, for example, expect housing prices to rise, read more.

Rental Payment Gives Better Picture of Credit Risk

Rental Payment Gives Better Picture of Credit Risk

Experian, announced that its latest analysis has uncovered how the addition of rental payment data to credit files can help financially exclude consumers gain access to traditional financial  services. Experian was the first credit reporting agency to incorporate on-time rental payments to its database. To show the value of adding alternative data to credit files. The research also showed that 19 percent of study participants previously considered subprime migrated to at least one higher (less risky) risk segment, read more.

Rental Payment Gives Better Picture of Credit Risk

Rental Payment Gives Better Picture of Credit Risk

Experian, announced that its latest analysis has uncovered how the addition of rental payment data to credit files can help financially exclude consumers gain access to traditional financial  services. Experian was the first credit reporting agency to incorporate on-time rental payments to its database. To show the value of adding alternative data to credit files. The research also showed that 19 percent of study participants previously considered subprime migrated to at least one higher (less risky) risk segment, read more.

Foreclosure Decline 'Not Expected to Last'

Foreclosure Decline 'Not Expected to Last'

Many markets across the country are seeing fewer foreclosures. “Additionally, there is concern over whether or not we can maintain this pace of improvement as the foreclosure inventory becomes more concentrated in judicial states with lengthier, more complex processes and timelines.”  The foreclosure inventory will soon consist of those in judicial states where processes to foreclose are drawn out.  It represents the 32nd consecutive month for year-over-year declines . Completed foreclosures fell 9.9 percent year-over-year, but on a month-to-month basis completed foreclosures ticked up 2.7 percent in June compared to May, read more.

Homeownership Slides to Lowest Level Since 1995

Homeownership Slides to Lowest Level Since 1995

The fallout from the housing crisis continues as the number of Americans who own homes dropped to the lowest level in nearly two decades. Yun notes that there was a higher number of home owners in the latest data than in prior months, but the number of renters grew faster. He says that over the past three months, the number of renting households rose by 312,000 while the number of home owners rose by 54,000.  'The falling home ownership in recent years is partly due to the struggles of first-time buyers, read more.