Renters Need to Brace Themselves

Rent Surge Expected into 2015: Apartment rent is expected to continue to outpace inflation next year. It’s a landlord’s market, which means strong demand continues to give landlords justification to hike rents. Rent growth will likely reach 3.9 percent in 2015, only a slight dip from 4 percent this year, according to a recent forecast released by the National Association of REALTORS®. For at least two more years, vacancy rates for rental apartments are expected to remain low. “Low housing inventory and the sizable demand for rentals will continue to spur multifamily construction as well as keep rents rising above inflation through next year,” says Lawrence Yun, NAR’s chief economist, read more.

Owners Allowed to Purchase Homes Back

Foreclosed Home Owners Allowed to Purchase Homes Back
The Federal Housing Finance Agency announced a new policy that will permit some foreclosed home owners to purchase the homes back that they once had lost at fair market value. To regain ownership, the ex-owners must be able to pay the full current value of the property, and they still must wait at least three years after their foreclosure to regain ownership, which is required to purchase any home using a Freddie Mac or Fannie Mae–guaranteed loan following a foreclosure. The new policy applies only to buyers’ former primary residence. Second homes and investor properties are not eligible. See more at U.S. Home Price Appreciation and Distressed Sales.

Loan Limits Will Rise in 2015

 Where Loan Limits Will Rise in 2015
For mortgages acquired by Fannie Mae and Freddie Mac, the conforming loan limit for a single-family home will remain at $417,000 next year for the majority of the country. In 46 counties, however, jumbo loan limits will rise, reflecting that these areas have seen home values rise by some of the largest amounts in the past year, says the Federal Housing Financing Agency. The loan limits are calculated each year under the Housing and Economic Recovery Act of 2008, which sets a maximum loan limit based on median home values. And the number of home sales to investors rose in October, but a closer look at many markets shows a different investor picture forming, Investor Profile Starting to Shift.

More Efficient Home This Thanksgiving

Happy Thanksgiving
More Efficient Home This Thanksgiving:  Want something to be thankful for? Check out these tips that’ll make your Thanksgiving kitchen clean up faster and easier — and will give you more time to enjoy family and friends. The Pilgrims were on to something when they planned a Thanksgiving potluck; here are other good ideas that’ll simplify your T-Day kitchen cleanup. And don't forget to come and Ski Utahs Greatest Snow on Earth,

Housing Cost Burdens Fell

Cost Burdens Continue to Strain Renters
Housing cost burdens fell for the third consecutive year, according to the U.S. Census' 2013 American Community Survey. Last year, 39.6 million households spent more than 30 percent of their income on housing, which is a decrease from 40.9 million in 2012 and down from the peak of 42.7 million in 2010. However, housing cost burdens are mostly dropping among home owners, while they continue to strain renters, according to a recent analysis. In 2013, 26 percent of home owners were considered burdened by household expenses (i.e.: spending more than 30 percent of their income on housing), compared to half of all renters at 49 percent. Learn the top 10 reasons renters keep renting.

Spread the Word: Mortgage Rates Below 4%

Gauge Heat of the Market and Mortgage Rates Hit 3.99
Spread the Word: Mortgage Rates Below 4%: Fixed-rate mortgages fell back near yearly lows again this week, lowering borrowing costs for home buyers and refinancers. 5 Latest Stats: “Buyers continue to be encouraged by interest rates at lows not seen since last summer, improving levels of inventory, and stabilizing price growth,” says Lawrence Yun, NAR’s chief economist. “Furthermore, the job market has shown continued strength in the past six months. This bodes well for solid demand to close out the year and the likelihood of additional months of year-over-year sales increases.” “If you are planning to buy a home in the next year, it’s better to do it sooner rather than later,” Frank Nothaft, Freddie Mac’s chief economist, said in the video commentary embedded here.

November Is The Best Month To Sell Your Home

Why November Is The Best Month To Sell Your Home
Home owners may be doubtful that the months of November and December will bring about a home sale. After all, aren’t potential buyers sidetracked with the holidays and likelier to postpone their house hunt due to bad weather and shorter days? But sometimes the “off-peak” time to sell can actually be the perfect moment for sellers. On average, homes listed in November and December are more likely to sell, sell more quickly, and more closely approach the asking price.A 2011 study conducted found that real estate professionals advise their sellers to list a home during the holidays because they believe it’s an opportune time to sell. The real estate professionals surveyed said that more serious buyers emerge during the holidays, and say less competition from other properties makes it an ideal time to sell, read more.

5 Real Estate Predictions for 2015

The Good News For Real Estate In  2015
5 Real Estate Predictions for 2015: Expect the home-purchase market to strengthen along with the economy in 2015, according to Freddie Mac's U.S. Economic and Housing Market Outlook for November."The good news for 2015 is that the U.S. economy appears well-poised to sustain about a 3 percent growth rate in 2015 — only the second year in the past decade with growth at that pace or better," says Frank Nothaft, Freddie Mac's chief economist. Multi-family mortgage originations: Mortgage originations for the multi-family sector have surged about 60 percent between 2011 and 2014. Increases are expected to continue in 2015, projected to rise about 14 percent, read more.

Homebuilding Flopped This Year

Homebuilding Flopped This Year
Homebuilding did not get off to a good start in 2014. David Crowe, chief economist for the National Association of Home Builders, blames the harsh winter that plagued many states east of the Rockies for bringing homebuilding to a virtual standstill at the beginning of the year. A sluggish economy didn't help either, he noted. As such, housing production is not making much advancement in 2014 compared to 2013. Housing starts will likely increase 7 percent this year over 2013, which is the slowest growth of the recovery, Still, Crowe projects a turnaround for the new-home sector in 2015, read more.

Credit Unions Step o Fill Lending Void

Credit Unions Step o Fill Lending Void
The number of mortgage originations issued from credit unions in the first half of 2014 has climbed 10 percent year-over-year. This has elevated credit unions to having more than 8 percent share of the home loan market—about triple their share prior to the recession—making them a growing option for home buyers looking for financing, according to data from the Credit Union National Association. “We have a lot of young, first-time buyers, and this is great for someone who’s not eligible for a Veterans Administration loan,” says Katie Miller, the vice president of mortgage lending. Bottom line: If you've overlooked credit unions as a source of financing, look around. You still have to be a member of one to get a loan. Nearly two-thirds of credit unions offer mortgages, read more.

VA Loans Outperform as Loan Demand Stalls

 VA Loans Outperform as Loan Demand Stalls
On the rise this week, however, were loans guaranteed by the Department of Veterans Affairs, which jumped to 11 percent of total applications. VA loans have exceeded the FHA’s share of loan applications for the last three weeks. FHA loans are usually the most popular of loans backed by the government, but FHA loan shares dropped to 9.6 percent share last week.“Higher fees and insurance premiums [with FHA loans] have kept many borrowers away from even this low down-payment loan option,” CNBC reports. “VA loans require no down payment in most cases and do not require mortgage insurance. This may be why they've gained popularity as home prices continue to rise.” Read more

Wedding Gift Idea: Down Payment Registry:

Wedding Gift Idea: Down Payment Registry: 
A new marketing campaign from a home builder is reaching out to engaged renters and showing them how they can start married life as first-time home owners. Keystone Custom Home’s campaign is urging engaged couples to sign up for a Wells Fargo Bank gift registry called the New Home Bridal Registry to help save for a down payment on a home. Family and friends can make deposits into the account as a wedding gift, but they must keep a record of who gave what amount, in order to follow tax rules. The couple can then use the money in the account to buy a home. They’re not obligated to purchase a Keystone home either. However, they are obligated to use Wells Fargo as their mortgage lender, Learn more.

Smart Homes -Living in Shipping Container

 Smart Homes -Living in Shipping Container be the Next Trend?
Home owners are showing a bigger appetite for smart home technology. Nearly half of consumers — 46 percent — say it’s important their current home or the next home they purchase have smart home technology, according to a survey conducted by Real Estate and HGTV of nearly 2,500 consumers who recently participated in an HGTV national focus  group on smart home technology. Home owners and buyers say they see the value in smart home technology for comfort, safety, and cost savings, and 51 percent surveyed say they would consider installing smart home technology in their home to make their home more marketable to future home buyers. Here one more New Trend: Live in a Shipping Container of Your Very Own Have home, will travel? If you have $49,500 to spare and a small plot of land, you could drive to Utah and pick up a sweet shipping container home read more.

Home Sales Stay at Healthy Level

More Americans Ready to Sell
Real Estate Professionals and more Americans are growing optimistic about home-price appreciation and selling, according to Fannie Mae's October 2014 National Housing Survey of 1,000 American adults. Home-price expectations rose significantly in the latest survey, largely reversing a dip over the past four months, says Doug Duncan, Fannie Mae's chief economist. Also, the share of consumers who say now is a good time to sell a home reached another survey high this month. "These results may help drive a healthier housing market in 2015." See Pending Home Sales Stay at Healthy Level

"Demand for Condo Units is Rising"

Is FHA Drafting a Major Condo Proposal for 2015? 
FHA tightened its financing of condo projects after being faced with significant foreclosures during the housing crisis. However, the agency may be considering a change: The Times reports that FHA is drafting a major condo proposal for 2015, which could potentially bring back financing to more buyers and existing unit owners. Demand for condo units is rising in urban areas nationwide, but mortgage financing continues to squeeze out entry-level buyers, Times reports. List prices for condos in major markets are rising faster than prices for single-family detached homes in many areas. Condos are surging in popularity as boomers look to downsize and other owners seek to live closer to urban workplaces and cities, read more.

Renters Face Affordability Crisis:

Rents Are Shooting Up Well Beyond Wages 
With increased competition for units, rents are shooting up, and the increases are biting renters’ wallets as they find themselves increasingly getting priced out of the market, with wages failing to keep pace. Nationwide rents have risen about 6 percent from a year ago,due to rising demand and still-limited supply, CNBC reports. Nationally, the average monthly cost to rent a one-bedroom apartment in August was $939, according to CoStar housing data. "So landlords should still be able to push asking rent increases on to their tenants." Rental demand is strong and likely will remain so for the foreseeable future, analysts note. read more.

Down Payments or Debt?

Drag on Housing: Down Payments or Debt?
Housing attitudes were decidedly more mixed. According to Fannie Mae, 
Americans surveyed last month expect home prices to rise 2.8 percent over the next year, reflecting a bounce after price expectations stagnated throughout the summer. 20% Down Payment Takes 12 Years of Saving. First-time buyers have a whole lot of saving to do — possibly more than a decade of saving for a home purchase. How ever the Federal Housing Administration allows buyers to get a mortgage with a down payment as low as 3.5 percent with a 30-year fixed rate, Learn more.

See The Top Major Market.

Slight Uptick in Markets and Mortgage Rates
Mortgage Rates Push Back Above 4%: For the second consecutive week, average fixed-rate mortgages inched higher, taking the 30-year fixed-rate mortgage back above 4 percent for the first time in three weeks, Freddie Mac reports in its weekly mortgage market survey.The Federal Housing Administration allows buyers to get a mortgage with a down payment as low as 3.5 percent with a 30-year fixed rate. Markets Returning to ‘Normal. "Nearly half of all the markets on the Leading Markets Index are up, See The top major market.

College is paying off for housing markets

College Effect Schooling Housing.
Colleges and universities are having a strong effect on housing across the country, with metros that have heavy university influence outperforming national rates in home price trends, according to latest Home Data Index Market Report. "College towns are just another example of how real estate trends are impacted by local market conditions," says vice president of research and analytics. "It's clear a significant portion of loan dollars are going toward student housing costs, thereby creating a critical demand surge. Market Report finds in a sample of 10 metros that each have a university presence, average price growth has been 32 percent since 2004. In some places, price growth has been even more, Read more. 

Home Prices Rose by 5.6 Percent

Home Prices Rose by 5.6 Percent Year Over Year September's home prices showed year-over-year appreciation in every state, 

but signaled a slowdown as earlier double-digit increases have faded to more modest single-digit increases, according to Home Price Index for the month.  On a national scale, “home prices continue to rise compared with this time last year, but the rate of growth is clearly slowing as we exit 2014,” says Anand Nallathambi. “With more positive macroeconomic trends emerging in the United States, we are forecasting moderate price growth for 2015.” Read more.

More than half of borrowers have 30% or more equity,

Are Owners Losing Out by Not RefinancingRecent reductions in the 30-year fixed-rate mortgage could net the population of 
borrowers big savings if they would refinance, according to Mortgage Monitor Report. "Before the most recent reductions in the average 30-year mortgage interest rate, approximately 6 million borrowers met broad-based 'refinancibility' criteria," says Trey Barnes, Black Knight's senior vice president of Loan Data Products. "More than half of all borrowers have 30 percent or more equity, a level not seen in nearly eight years," This is a relatively conservative assessment, though, as those with current rates of 4.25 percent to 4.5 percent could arguably benefit from refinancing as well, read more.

Could Rents Soaring Be Leading to Rising Evictions?

Rents Soaring Leading to Rising Evictions
Rents have risen 7 percent in the past year while incomes have failed to keep pace, only inching up by an average of 1.8 percent. Many people are finding it more difficult to afford to pay their rent, which has led to a spike in evictions in the past year. The Neighborhood Law Clinic at the University of Wisconsin Law School estimates several million families face eviction each year. Once renters are out, it can be difficult for families to get back into a rental. Many landlords shy away from renting to someone with a previous default on his or her record. Heightening the problem, once-affordable apartments are being converted into million-dollar condos, which has forced more renters out. Read Best Time To Get a Rental Deal?

Housing May Be Starting To Loosen

Pent-Up Housing May Be Starting To Loosen Buyers, Sellers Hopeful for Strong End to 2014: Consumer optimism in the housing 
market may lead to a stronger close to the year for real estate. Also, Americans are getting more optimistic about securing financing for a home purchase. Nearly half of all respondents say they believe it is easier now to secure mortgage financing, up 2 percentage points over the first quarter, according to the survey."Consumers may be shopping for more this holiday season, and homes may likely be on their list," says Earl Lee, CEO of HSF Affiliates LLC. What's more, nearly 70 percent of potential buyers surveyed say the final months of the year are a more ideal time to buy or sell, Learn more. 

Where Housing Faces Big Shortages

Where Housing Faces Big Shortages
The lack of affordable, accessible, and well-located homes is failing to meet the 

needs of an aging population and could be the nation's next housing crisis, a new report suggests. The three main issues: The cost of renting and home ownership is too high; many homes and apartments lack basic accessibility features; and older Americans say they want to "age in place" in their current home but are living in car-dependent suburbs and rural towns that can make it more difficult. But at the current rate of the aging baby boomer population, several cities will be unable to meet the demand, which will likely keep boomers from moving to the location or type of home they want. See what cities.