The average American has now lived 13.2 years in their home, up from 2012’s 10.1 years but down from 2020’s 13.5-year record, Redfin reported. The report notes that last year’s high migration rates contributed to the downturn from 2020’s peak, though Americans continue aging in place, keeping the average inflated. One-third of U.S. household heads were at least 65 years old in 2019. Housing analysts are already thinking about the changing face of the market as that number grows. Rising rents, stock shortages, and the number of homeowners who refinanced are also likely keeping people in their homes longer. “Homeowner tenure may have already peaked, or the decline in 2021 could be a blip before it climbs back up,” said…
Mortgage loan application volume fell 0.7% last week, faring slightly better than the prior week’s 13.1% drop but continuing a trend down, the Mortgage Bankers Association’s (MBA) weekly survey shows. The adjusted Market Composite Index, a measure of mortgage loan application volume, dropped 0.7%. The adjusted purchase index fell 2%, while the unadjusted purchase index rose 1% and was 9% lower YOY. The refinance index rose 1% and was down 56% YOY. Refinances made up 49.9% of total applications. Rising mortgage rates continue to impact application activity. Mortgage rates reached 4.15% last week, their highest since 2019, and are driving refinance applications down. “Although there was an increase in government refinance applications, higher rates continue to push potential refinance borrowers…
Good Morning! Today is Wednesday, March 2. President Biden delivered a pro-democracy State of the Union speech that also touched on Covid-19 and his domestic agenda. At least 136 civilians and about 2,000 Russian soldiers have died in Ukraine. Major League Baseball postponed the start of the season because of a labor disagreement. The Mortgage Note Reports Hot Luxury Market: Demand for luxury housing rose 14.5% YOY in 2021 as the number of affluent individuals worldwide skyrocketed. NAHB HBGI: Single-family growth cooled in Q4 2021 while multifamily growth in high-density areas surged as apartment demand rises, according to NAHB’s HBGI. And in other mortgage and housing news… Labor Shortages: The construction industry needs 650,000 more workers to meet demand in 2022, according to an analysis…
Single-family growth cooled in Q4 2021 while multifamily growth in high-density areas surged, according to the National Association of Home Builders (NAHB) Home Building Geography Index (HBGI). The HBGI is a quarterly measurement of building conditions across the country and uses county-level information about single- and multifamily permits to gauge housing construction growth in various urban and rural geographies. “Multifamily production posted strong gains in all regional markets as the demand for apartments increased,” said NAHB Chief Economist Robert Dietz. “Meanwhile, supply-side constraints that include ongoing labor shortages and a lack of key housing products that include garage doors, appliances and windows has delayed single-family construction times across the nation and put upward pressure on home prices.” The price of…
The world’s affluent population– people worth $5 million or more– grew 19.8% in 2021, and with it grew the luxury housing market, according to Coldwell Banker Global Luxury’s 2022 Global Luxury Market Insights report, titled “The Report.” There are now 3,612,730 affluent individuals worldwide, with a combined wealth of over $75 trillion. Wealth growth in the U.S. rose 24.8% in both population and wealth in 2021, up from 8.1% in 2020. At the same time, luxury single-family home sales– the top 10% of any given market– increased 14.5%, with prices jumping 20.3% from 2020. Attached luxury homes saw a 29.6% increase YOY and a 16.6% increase in prices. “Double-digit wealth and affluent population gains have happened concurrently with a once-in-a-generation…
Good Morning! Today is Tuesday, March 1. A convoy of Russian armed forces stretching approximately 40 miles is moving closer to Kyiv. California, Oregon, and Washington will stop requiring masks in schools. President Biden will deliver his State of the Union address tonight. The Mortgage Note Reports The ‘Rent vs. Own’ Debate Heats Up: With both home prices and rents rising at or near record levels, the debate over which makes the most fiscal sense is hotter than ever, these experts say. Broker Confidence Dips: Broker confidence fell for the second straight month in February, though brokers are “cautiously optimistic” about the future. CoreLogic HPI: CoreLogic’s Home Price Index found that home prices rose 19.1% YOY in January and 1.4%…
Broker confidence fell for the second straight month in February, though brokers are “cautiously optimistic” about the future, according to RISMedia’s February Broker Confidence Index (BCI). The index, which is scaled 1 to 10, fell to 7.5 from January’s 7.9 and December 2021’s 8.2. For the 3,000 brokers surveyed, rising interest rates were not a big cause for concern. They felt that rising rates won’t hurt demand considering current market conditions. Brokers’ biggest worries were inflation and inventory, with a nod to the ongoing crisis in Ukraine. “The continued lack of supply has really created a bubble,” Quincy Smith, a broker with ERA Matt Fischer in Yuma, Arizona, told RISMedia. “With the equity market starting what appears to be a…
Home prices grew by 19.1% annually in January 2022 and were up 1.4% from December 2021, according to CoreLogic’s Home Price Index (HPI) and HPI Forecast. The index found that annual appreciation of detached properties was 20.3%, 5.1 percentage points higher than that of attached properties, which saw a 15.2% increase. Naples and Punta Gorda, Florida, had the highest YOY home price growth for the second month straight, at 38.9% and 38.3%, respectively. The Mountain West and Southern regions dominated price growth nationally. Arizona took the number one spot with gains of 28.3%, followed by Florida (27.9%), and Utah (25.2%). But CoreLogic predicts that appreciation will slow to 3.8% annually by January 2023. “In December and January, for-sale inventory continued…
Good Morning! Today is Monday, February 28. Russia’s currency plummeted against the dollar due to sanctions imposed by the U.S. and its allies. More than 350 civilians have died since the invasion began. The Supreme Court will hear arguments in a dispute over the E.P.A.’s power to limit greenhouse gases. The Mortgage Note Reports UWM Teams Up Again With Scandal-Plagued Casa: Despite his misogynistic attacks on the wife of a competitor, it appears Anthony Casa is once again in Mat Ishbia’s fold with his new UMortgage business. Pending Home Sales: Pending home sales continued a three-month streak of declines in January, with contract signings down 5.7% to 109.5 in January and 9.5% YOY. NAREB Exec Named: C. Renee Wilson has…
Pending home sales continued a three-month streak of declines in January, the National Association of Realtors (NAR) reported. NAR’s Pending Home Sales Index (PHSI) found contract signings fell 5.7% to 109.5 in January, down 9.5% year-over-year (YOY). Only the West saw any increases, with contract signings rising 1.5% from December to January, but down 9.7% from a year earlier. The Northeast saw the largest annual drop in contract signings, 16.7%, plus a 12.1% drop in the month-to-month numbers, down to 84.3. The Midwest saw a 5.9% drop both monthly and annually, while signings in the South fell 6.3% from December and 8.7% YOY. “With inventory at an all-time low, buyers are still having a difficult time finding a home,” said…
