Average Homeowner Gained $16,000 in Home Equity in 1 Year

Report shows equity continued its climb in Q2

money house

As the economy strengthens, home values continue to appreciate, and that means homeowners are raking in the equity.

A report released Thursday by data analytics provider CoreLogic showed that home equity rose 12.3% year-over-year in the second quarter of 2018, meaning that the average homeowner saw their equity increase by $16,153 in one year’s time.

Home equity increased in almost every state, according to the report, with the western states showing the greatest gains.

The report also looked at mortgaged homes with negative equity to determine how many properties in the U.S. are currently underwater, with homeowners owing more than the home is worth.

In the second quarter of 2018, it showed that negative equity fell 9%, so that just 4.3% of all mortgaged properties are upside down. In the fourth quarter of 2009, negative equity peaked at 26%.

CoreLogic Chief Economist Frank Nothaft said Q2’s totals mean aggregate home equity gains now total $1 trillion, and that consumers will likely funnel this money back into the economy.

“This wealth gain will support additional consumption spending and home improvement expenditures in coming years,” Nothaft said.

CoreLogic President and CEO Frank Martell said low inventory is contributing to price appreciation.

“Negative equity levels continue to drop across the U.S. with the biggest declines in areas with strong price appreciation,” Martell said. “Further, the relatively low level of shadow inventory contributes to the chronic shortage of housing supply and price increases in many markets.”

For a state-by-state breakdown, check out the two images below. Click to enlarge.

HE Chart

HE Chart

Posted on September 24, 2018 at 8:35 pm
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Portland-area real estate: 10 places where home prices are falling

By Elliot Njus | The Oregonian/OregonLive | Posted August 09, 2018 at 06:00 AM | Updated August 09, 2018 at 08:19 AM

Posted on August 14, 2018 at 12:00 am
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Pending Home Sales Down

By Steve Murray, President of Real Trends

The National Association of Realtors reported that their Pending Home Sales index reflected the fifth month in a row of declining home sales on an annualized basis. Five months of declining pending home sales indicate more than a seasonal flutter.

As with others, I look around and listen to brokerage firms in the Denver area, as well as in other areas. What I’ve heard is that even sky-high markets like Seattle and Denver are seeing increased inventory and a decrease in the aggressiveness of buyers in mid- to upper-price ranges regarding multi-offer situations. We’ve read about this same situation in other markets as well – declining home sale units and increased inventory. The Real Deal and other publications, for instance, are reporting this about the New York City market.

Posted on August 8, 2018 at 7:13 pm
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What’s Holding Back New Home Construction? There’s No One to Build Them

 | Realtor.com

In this blazing-hot housing market of severe home shortages and rapidly rising prices, many buyers around the country have found themselves left shivering in the cold. But while builders would love to swoop in, construct a bunch of homes, and save the day (while making bucketloads of cash), they can’t. They simply don’t have the manpower.

Construction workers have become an increasingly rare and precious commodity in today’s housing market. The national labor shortage is dramatically slowing down builders—many of whom already have their hands full with remodeling homes for baby boomers planning to age in place, and rebuilding thousands of homes ravaged by last year’s hurricanes and wildfires. Combined with overall rising construction costs, it means an influx of new homes to ease the housing shortage and tame runaway prices isn’t coming anytime soon.

Skilled workers such as home framers, electricians, plumbers, masons, carpenters, and HVAC installers are especially in demand, builders say.

But builders are partly to blame for the crisis, which is helping to drive up home prices across the nation. They were some of the first to lay off workers during the financial crisis as development stalled, and many of those workers have since moved on. The crackdown on immigration and the opioid epidemic have siphoned off laborers. Meanwhile, many potential workers simply don’t want to toil outside in the heat and the cold when they could work in a climate-controlled office.

In other words, it’s a perfect storm for both builders and aspiring home buyers.

“We’ve got rising housing demand at the same time that the residential construction industry lacks workers,” says Robert Dietz, chief economist of the National Association of Home Builders. He predicts about 900,000 single-family houses will be built this year—whereas 1.2 million are needed to keep up with demand from those hoping to purchase a home of their own.

How bad is the labor shortage?

An increasingly common site
An increasingly common site 

To put the problem into perspective, there were 250,000 unfilled construction jobs at the beginning of the year, according to an NAHB analysis. The unemployment rate for the industry, reflecting unfilled positions, was 7.4% in March, according to a government data analysis by the Associated General Contractors of America, a trade group for commercial builders. That’s significantly higher than the national unemployment rate of just 4.1%.

The dearth of construction workers is slowing down all stages of the business, says Jason Scott, owner of North Star Premier Custom Homes in Westlake, OH, and president of the local Home Builders Association.

“It takes me twice as long now to do an estimate as it used to,” he says.

Instead of being able to find workers that day, he now waits eight to 10 weeks. Delays due to overbooked contractors slow the pace of homebuilding, amplifying existing shortages.

The shortage is also inflating costs for buyers and homeowners. Scott has had several subcontractors (siding, roofing, concrete) raise their prices by at least 10% since the new year. He’s paying double what he was 10 years ago for framing.

“I know builders who haven’t factored these [worker pay] increases in, and they’re watching $10,000 to $15,000 come off their bottom line,” Scott says.

With no relief in sight, builders may just have to rely on ingenuity, perhaps by using more prefabricated components.

“We’re going to have to build more with less with the current workforce,” NAHB’s Dietz says. “Builders have to find a way to be more efficient.”

The hangover some never recovered from

The burst of the housing bubble a decade ago was an A-bomb, flattening just about all of the construction work in sight. Residential home construction employment peaked at more than 5 million in 2006, but in postrecovery 2016 it was just 3.8 million, based on the NAHB’s data.

That’s because many workers didn’t have the luxury of waiting out the bad times. With bills still coming in, they were forced to move on to other gigs.

“The recession 10 years ago took a lot of people out of the construction industry,” says Brian Turmail, vice president of public affairs and strategic initiatives for AGCA. “We were the first to lay off and the last to start adding [back].”

The opioid epidemic and immigration policy take a toll on labor force

Some issues that have been in the national spotlight have also had major repercussions for housing business. This includes the opioid crisis.

Construction work is physically tough, and the rate of injury leaves some open to developing an addiction to prescription opioids, an epidemic sweeping the nation. The crisis has also likely kept many potential workers out of the labor pool.

Protestors at a Home Depot store in Cicero, IL, demonstrate against laborers living in the U.S. illegally.
Protestors at a Home Depot store in Cicero, IL, demonstrate against laborers living in the U.S. illegally.

The White House’s harsh stance on illegal immigration is also likely impacting the construction labor supply, housing experts say. About a fourth (24%) of all construction workers are immigrants—and 13% of those are living in the U.S. illegally, according to a Pew Research Center analysis of 2014 U.S. Census Bureau data.

As construction economist Ed Zarenski points out, immigrant laborers not only add to the workforce, but also help increase productivity because they are typically paid less. This may help to keep prices for the final homes down.

Immigration from Mexico, the largest source of U.S. immigrants, has been declining steadily since 2004, according to Pew, thanks to improving conditions south of the border and, more recently, anti-immigrant rhetoric in the U.S. that has made many feel unsafe or unwelcome.

“Some of the slowdown in immigration has affected the labor pool,” NAHB’s Dietz says.

The need to develop the next generation of laborers

So where is the next generation of potential laborers? The short answer: doing other stuff.

“A lot of people who would have gone into construction years ago are now going into computers or the IT field,” says Corey Dean, general manager of Bel Arbor Builders, which puts up about 18 to 20 custom homes annually in the Richmond, VA, area. “[They’re] not outside sweating or freezing.”

Plus, the decline of vocational educations has led to fewer young people today prepared for those skilled trades—and fewer that would be inclined to take the years needed to learn them. Those with bachelor’s degrees typically earn about $17,500 more annually than those who lack them, according to a 2014 report from the Pew Research Center.

So blue-collar workers are retiring, and fewer people are waiting in line to take their place.

“We made these cultural changes the last 30 years for all the right reasons: We wanted kids to go to college, we appreciated the economy was transitioning,” says AGCA’s Turmail. “But like [with] so many things in this country, we over-corrected for one problem and created another problem in its wake.”

Builders step up their outreach

Soldiers leaving the Army are trained to be construction workers through a program at Fort Stewart, GA, funded by the Home Depot Foundation.
Soldiers leaving the Army are trained to be construction workers through a program at Fort Stewart, GA, funded by the Home Depot Foundation.

The construction industry has begun to take action to feed its need for workers. That should give the home buyers of tomorrow a sliver of hope.

For example, the Home Builders Association in Colorado Springs, CO, recently partnered with the local school district to start a vocational program in six schools. Called Careers in Construction, it instructs over 350 kids in carpentry, plumbing, HVAC, and electrical trades.

“We’re giving them a choice because not all of us are meant for college,” says George C. Hess III, CEO of Vantage Homes Corp., a Colorado Springs–based builder, and chairman of the Home Builders Institute, an educational trade group.

On a grander scale, Home Depot recently pledged $50 million for HBI to support a Pre-Apprenticeship Certificate Training program. It provides vocational education not just in schools but also on military bases.

“We know the younger generation is where we start to overcome perception and make the trades cool again, if you will, so we can have that pipeline continue over the next several decades,” says Shannon Gerber, executive director of the Home Depot Foundation.

Women, who make up about 9% of the field, are another potential source of untapped workers. Compared with other fields, there’s relatively less inequality in construction (women make 95% what male construction workers make), but the industry is still 200,000 female workers short of the precrisis peak of 1.13 million, according to U.S. Bureau of Labor Statistics and National Association of Women in Construction data.

“The worker shortage is severe,” says NAHB’s Dietz. “The industry is going to have to recruit the next generation of construction workers—or we’ll continue to underbuild houses, there won’t be enough houses, and home prices will continue to rise faster than incomes.”

Chris Parker is a Cleveland-based writer whose work has appeared in Billboard, The Guardian, and the Hollywood Reporter.
Posted on April 23, 2018 at 8:57 pm
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6 Tax Myths Even Smart Homeowners Believe are True

| Mar 19, 2018 | realtor.com

With all the mayhem and misconceptions flying around, we’re here to set the record straight, by highlighting the top tax myths that might dupe even the financial Einsteins among us—both for this filing year (which is still under the old IRS rules) and next, once the new tax code takes effect.

So whether you want to enter this filing season with clear-eyed confidence or just test what you know, check out this list and ask yourself honestly: How many of these fake tax facts did you believe were true?

Tax myth 1: The mortgage interest deduction is gone

On the contrary: If you bought your home before Dec. 15, 2017, you’re in luck: You are grandfathered in under the old tax laws and can still deduct all of the interest on loans of up to $1 million, says Tom Wheelwright, CPA and CEO of WealthAbility.com. Yes, even when the new tax codes go into effect next year.

And for those who bought a home after Dec. 15, 2017, or plan to in the future, it’s not as bleak as many think. Starting next year, mortgage interest is still deductible; it’s just that the deductible amount is capped at $750,000.

Tax myth 2: Property tax deductions are gone, too

In the past (and for the last time this year), most taxpayers could deduct state, city, and property taxes in their entirety. Under the new tax plan next year, these taxes are still deductible, but there’s a cap—of $10,000 per year, says Mario Costanz of Happy Tax.

In other words, property tax and mortgage interest deductions are far from gone … but one thing to consider is that next year, the standard deduction nearly doubles—to $12,000 for single filers and $24,000 when filing as married. As such, it may not make sense for as many people to itemize their deductions unless it amounts to more than this high new bar. Here’s more info on how to tell whether you should take the itemized vs. standard deduction.

Tax myth 3: If you work at home, you can deduct a home office

Some people mistakenly think that anyone who fires up a laptop at the kitchen island has a “home office.” But to take a home office deduction, that area must not only be used regularly and exclusively for business, it has to be the primary site of the business. So if you turned a spare room into a dedicated work space, you can claim it. But if you occasionally work in the living room, that’s not deductible, says Josh Zimmelman, owner of Westwood Tax & Consulting, a New York-based accounting firm with offices in Manhattan and Long Island.

Plus, things get even stricter under the new tax codes.

In the past, office employees who occasionally worked from home could claim eligible home office deductions that might include, say, business expenses that were not reimbursed by your employer (here’s more about how to take a home office tax deduction this year). But starting in 2018, only self-employed people can deduct their home office in any way. So if you own your own business, you’re fine; if you’re paid by W-2, you can kiss this deduction goodbye when you file next year.

Tax myth 4: You can deduct all of your home renovations

Sorry, DIYers: Home improvements are generally not tax deductible unless the residence also serves as a rental property. But there are a few exceptions where homeowners can cash in.

The first is if modifications were made for medical purposes that don’t increase your property value, which might include installing railings or support bars, building ramps, widening doorways, lowering cabinets or electrical fixtures, and adding stair lifts. Note: You’ll need a letter from your doctor to prove the modifications are medically necessary to claim these deductions. Plus, those expenses must exceed 10% of your adjusted gross income in 2017, which drops to 7.5% in 2018.

The other time you can deduct renovations is if they were made in order to sell your home.  You can deduct those expenses as selling costs, as long as the home improvements were made within 90 days of closing.

Tax myth 5: All home equity interest is deductible

Homeowners can turn to a home equity loan or line of credit (HELOC) for cash to either make home improvements or for more general expenses, like paying for a child’s college tuition or wedding. And in past years, the interest on these loans was tax-deductible.

Not so for next year: While the IRS has not yet issued any formal guidance, it appears that with the new tax law, HELOC interest is only deductible if the loan is used for a “substantial home improvement,” says Professor David Reiss of Brooklyn College. Also keep in mind that next year, your total deductible mortgage and eligible home equity debt must be less than the $750,000 cap.

Tax myth 6: You can always deduct your moving expenses

Up until this year, taxpayers could only deduct a portion of moving expenses when they relocated for a new job that’s at least 50 miles farther from their former home than their old job location. And per the new 2018 tax bill, no moving expenses of any kind are deductible. The only exceptions are for members of the armed forces on active duty.

Posted on March 20, 2018 at 11:29 pm
MJ Steen | Category: Uncategorized | Tagged , , , , , , , , , , , , , ,

Home Equity Hits Record High, and Here’s How Homeowners are Spending It

Home equity hits record high, and here’s how homeowners are spending it

  • Remodeling spending topped $152 billion in 2017, and is forecast to increase in 2018.
  • Homeowners are using home equity cash to pay down other debt in order to lower monthly payments.
  • But homeowners are increasingly taking the cash out to make more cash.

An aerial view of a retirement community in Central Florida

Home equity hits record high  

Homeowners are racking up record amounts of home equity, thanks to fast-rising values in today’s competitive housing market. No surprise, more people are now starting to tap that cash. What are they spending it on? Mostly making their homes even more valuable.

Renovation spending is soaring, and 80 percent of borrowers taking out home equity lines of credit say they would consider using that money to renovate, according to a survey released in December by TD Bank.

“We’re not only seeing more requests for proposals, but more committed projects from home owners,” said Steve Cunningham, a remodeler from Williamsburg, Virginia, in a report from the National Association of Home Builders. “In addition to regular updates and repairs, there’s been an uptick in more ambitious large remodel requests.”

Remodeling spending topped $152 billion in 2017, and renovations for owner-occupied single-family homes will increase 4.9 percent in 2018 over 2017, according to the NAHB. That does not include remodeling done by investors looking to flip or rent properties, both of which are increasing as well.

A home improvement contractor works on a house in Cambridge, Massachusetts.

Suzanne Kreiter | The Boston Globe | Getty Images
A home improvement contractor works on a house in Cambridge, Massachusetts.

“Below-normal rates of home building are creating an aging housing stock,” said Paul Emrath, vice president of survey and housing policy research at the NAHB. “Factors inhibiting stronger growth include the ongoing labor shortage and rising material prices.”

An older housing stock, combined with not enough new homes being built, means more people will choose to renovate.

Homeowners are also using home equity cash for education expenses and to pay down other debt in order to lower monthly payments, but there is a new and increasingly popular use: taking the cash out to make more cash.

“Essentially there is a confidence from some homeowners in the overall market that indicates to them that they can generate a return on their money at a rate greater than the cost of borrowing it,” said Matthew Weaver, vice president of sales at Finance of America Mortgage.

He also said there is now a strong confidence among borrowers that home values will continue to rise, making it less likely that borrowing against their homes even more will not end up putting them underwater on their mortgages in the future.

For some that means investing in the stock market. For others it is buying more real estate. Rental demand is still very high, especially for single-family homes, and a new breed of rental management and investment company is making it much easier to become a landlord.

And of course, “Some are looking to profit from the popularity of cryptocurrencies such as bitcoin,” added Weaver.

Posted on January 17, 2018 at 7:08 pm
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Does a Building’s Age Affect It’s Rent?

Just as a spate of new housing units comes to market in New York City — the newborn sheen and amenities accompanied by premium rents — a study by the website RentHop offers a look at the relationship between a building’s age and the rents charged.

Among newer buildings, it found, rents decreased as a building’s age increased. The drop was particularly obvious in Battery Park City, where the median-age building was constructed in 1998.

Citywide, however, the median age of buildings is about 90 years, and in most older neighborhoods there was a more complicated relationship between the age of a building and the rent.

Location, not surprisingly, often mattered more. And buildings with historic merit were also sometimes more expensive than newer buildings nearby, as were older buildings with elevators.

Focusing on one-bedroom apartments in Manhattan, in buildings with elevators, RentHop produced a list of neighborhoods in which the greatest age-related discounts can be found.

Posted on August 23, 2017 at 5:14 pm
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It’s About to Become Easier to Qualify for a Mortgage – Here’s Why

| Jun 20, 2017
 

We’re living in expensive times—when a bottle of fresh juice can run you $5, rents and home prices are soaring, and the bills never seem to stop piling up. But aspiring homeowners might soon get a break as it becomes a little easier for those with student, credit card, and car loan debt to qualify for a mortgage.

Fannie Mae plans to increase its allowable debt-to-income ratio from 45% to 50% on July 29. This means that more borrowers on the cusp of getting a loan (e.g., millennial, first-time, and lower- to moderate-income borrowers carrying more debt) could potentially qualify for a mortgage backed by Fannie.

The debt-to-income ratio is calculated by taking a potential borrower’s monthly gross income and dividing it by the borrower’s recurring debts such as monthly car payments. Lenders use this ratio to figure out if borrowers can afford to make their mortgage payments each month.

“They’re trying to make more loans available,” says mortgage loan originator Don Frommeyer of Marine Bank, in Indianapolis. “When interest rates go up, the debt ratios go up. And that limits the number of people who can buy a house.”

Fannie, which purchases and guarantees mortgages, was already granting ratios of up to 50% with certain conditions—such as if the borrowers had deeper cash reserves, underwent financial counseling, or had higher incomes. The change opens the door to borrowers with more debt who can’t meet those conditions.

Your bank might have its own debt-to-income ratios

However, not everyone will be benefit from the change. Fannie Mae insures mortgages, but it’s still banks, credit unions, and other financial entities that make the loans—and those lenders have their own criteria.

But the increased debt allowance could encourage more lenders to make changes to their debt-to-income ratios. And that could help more buyers on the brink.

“The best thing the consumer can do is ask the lender if they underwrite to Fannie Mae guidelines,” says longtime mortgage broker Jeff Lazerson, based in Laguna Niguel, CA. If they don’t, “you [might] just have to find another lender. Or maybe you push back on that lender” to see if it’ll raise the limits.

Lower debt-to-income ratios won’t help everyone

A higher debt ratio isn’t a silver bullet for loan seekers, though.

“Mortgage borrowers need to keep in mind, it’s the person’s whole application that will determine whether or not they get approved,” says Eric Tyson, co-author of “Mortgages for Dummies.”

“If you don’t have a good credit score, if you don’t have a sufficiently large down payment, it won’t change the outcome of your application.”

Buyers who can’t qualify, even with the higher ratios, should consider other alternatives.

“Most people are looking to buy at the high end of their budget. They want to qualify for as much house as they can get, partly because homes are so expensive to begin with,” says Lazerson, who is also a mortgage columnist.

“They could look for a smaller-sized property [with a] lower sales price. They could find a co-signer, someone who they trust, usually a family member or a close friend,” Lazerson says. “Or [they could] come up with more down payment money.”

Posted on July 17, 2017 at 8:11 pm
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Home Prices Are Soaring – Here are the 20 Places Where Owners are Reaping the Biggest Profits in 2017

If you’re looking to buy or sell a home this year, you probably know the housing market is booming in virtually every corner of the country.

In fact, homeowners who sold in the first quarter of the year realized an average price gain of $44,000 since purchasing their home, a new ATTOM Data Solutions report shows. That equals an average 24% return on purchase price across the country — the highest average price gain for home sellers in nearly 10 years.

“The first quarter of 2017 was the most profitable time to be a home seller in nearly a decade, and yet homeowners are continuing to stay put in their homes longer before selling,” said Daren Blomquist, senior vice president with ATTOM Data Solutions.

The report showed homeowners are staying in their homes just shy of eight years on average. “This counter-intuitive combination is in part the result of the low inventory of move-up homes available for current homeowners, while also perpetuating the scarcity of starter homes available for first-time homebuyers,” Blomquist added.

Of course, there are still some laggards. Baton Rouge, Louisiana, for example, saw average home prices decline by $15,000 from their previous purchase price. The same is true for Huntsville, Alabama, where average home prices declined by $8,100.

Of the 20 metro areas with the highest percent return on the previous purchase price, 10 were located in California and three were in Colorado. Competition among homebuyers, especially in these areas, is fierce, so it’s particularly important to have your finances locked and loaded before you start your search.

Regardless of where you’re looking, getting pre-approved for a mortgage is key. You’ll also want to be sure your credit is in good shape so you’ll get the best mortgage terms available. You can check your credit scores for free on Credit.com.

These are the top 20 metro areas where home sellers are making the most money when selling their homes.

19. TIE: Port St. Lucie, Florida

19. TIE: Port St. Lucie, Florida

Average return on investment: 39%

Average price gain: $53,000

19. TIE: Austin-Round Rock, Texas

19. TIE: Austin-Round Rock, Texas

Average return on investment: 39%

Average price gain: $81,795

16. TIE: San Diego-Carlsbad, California

16. TIE: San Diego-Carlsbad, California

Average return on investment: 41%

Average price gain: $144,000

16. TIE: Riverside-San Bernardino-Ontario, California

16. TIE: Riverside-San Bernardino-Ontario, California

Average return on investment: 41%

Average price gain: $90,000

16. TIE: Boston-Cambridge-Newton, Massachusetts-New Hampshire

16. TIE: Boston-Cambridge-Newton, Massachusetts-New Hampshire

Average return on investment: 41%

Average price gain: $111,100

13. TIE: Oxnard-Thousand Oaks-Ventura, California

13. TIE: Oxnard-Thousand Oaks-Ventura, California

Average return on investment: 43%

Average price gain: $160,000

13. TIE: Sacramento-Roseville-Arden-Arcade, California

13. TIE: Sacramento-Roseville-Arden-Arcade, California

Average return on investment: 43%

Average price gain: $99,000

13. TIE: Fort Collins, Colorado

13. TIE: Fort Collins, Colorado

Average return on investment: 43%

Average price gain: $97,500

12. Greeley, Colorado

12. Greeley, Colorado

Average return on investment: 44%

Average price gain: $85,050

10. TIE: Urban Honolulu, Hawaii

10. TIE: Urban Honolulu, Hawaii

Average return on investment: 46%

Average price gain: $161,110

10. TIE: Salem, Oregon

10. TIE: Salem, Oregon

Average return on investment: 46%

Average price gain: $70,800

9. Vallejo-Fairfield, California

9. Vallejo-Fairfield, California

Average return on investment: 47%

Average price gain: $115,000

7. TIE: Denver-Aurora-Lakewood, Colorado

7. TIE: Denver-Aurora-Lakewood, Colorado

Average return on investment: 50%

Average price gain: $110,000

7. TIE: Los Angeles-Long Beach-Anaheim, California

7. TIE: Los Angeles-Long Beach-Anaheim, California

Average return on investment: 50%

Average price gain: $187,000

5. TIE: Stockton-Lodi, California

5. TIE: Stockton-Lodi, California

Average return on investment: 51%

Average price gain: $101,000

5. TIE: Modesto, California

5. TIE: Modesto, California


Average return on investment: 51%

Average price gain: $87,500

4. Portland-Vancouver-Hillsboro, Oregon-Washington

4. Portland-Vancouver-Hillsboro, Oregon-Washington

Average return on investment: 52%

Average price gain: $110,799

3. Seattle-Tacoma-Bellevue, Washington

3. Seattle-Tacoma-Bellevue, Washington

Average return on investment: 56%

Average price gain: $139,325

2. San Francisco-Oakland-Hayward, California

2. San Francisco-Oakland-Hayward, California

Average return on investment: 65%

Average price gain: $276,750

1. San Jose-Sunnyvale-Santa Clara, California

1. San Jose-Sunnyvale-Santa Clara, California

Average return on investment: 71%

Average price gain: $356,000

Posted on May 1, 2017 at 11:55 pm
MJ Steen | Category: Uncategorized | Tagged , , , , , , , , , , ,

Portland-area home prices push higher

By Elliot Njus | The Oregonian/OregonLive
on March 28, 2017 at 8:31 AM, updated March 28, 2017 at 11:48 AM

Home prices in the Portland area, already at record levels, pushed higher in January.

Prices climbed 0.1 percent during what is usually a seasonally slow month, according to the S&P CoreLogic Case-Shiller home price index, reaching a level 9.7 percent higher than a year earlier.

That’s second only to Seattle’s 11.3 percent increase, year over year, in the 20-city index.

The median home price in Portland was $350,000 in January, according to the Regional Multiple Listing Service. It climbed to $353,400 in February.

The limited supply of homes on the market has helped push prices higher. In Portland, the end of February saw just 3,109 homes on the market, according to RMLS.

Prices are rising fastest among the lowest-priced homes, where first-time homebuyers and investors are competing for deals, but middle- and high-priced homes are seeing similar increases.

Climbing prices continue to take a toll on affordability. Mortgage rates have stayed relatively low, helping would-be homeowners maintain their buying power.

Future increases, however, could put a damper on homebuying, said David M. Blitzer, chairman of the index committee.

“At some point, this process will force prices to level off and decline,” he said in a statement. “However, we don’t appear to be there yet.”

Despite the eye-popping annual increases, there are signs that Portland-area home prices are losing steam.

For six months, monthly home-price growth on a percentage basis has hovered near the national average.

Portland area puts brakes on rapidly rising home prices

Rapid increases in Portland metro home prices may have run out of steam in the second half of 2016.

— Elliot Njus

 

Posted on April 10, 2017 at 7:31 pm
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