Saturday, August 30, 2014

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.

Friday, August 29, 2014

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.

Thursday, August 28, 2014

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.

Wednesday, August 27, 2014

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.

Tuesday, August 26, 2014

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

Monday, August 25, 2014

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

Saturday, August 23, 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.