It’s The ‘Year Of The Head Fake’ In America’s Housing Market

Photo courtesy of NAREE. By KIMBERLEY HAAS Economists tracking the housing market say it’s still a game of wait and see as mortgage rates and other affordability factors weigh heavily on potential buyers and sellers. Lawrence Yun, chief economist at the National Association of Realtors, said he thought the housing market would recover this year, but that has been delayed. “I think part of the reason is the Federal Reserve indicated publicly in December of last year three or four rate cuts, expect three or four rate cuts in 2024. Now, delay, delay, delay, with the possibility of only one rate cut so mortgage rates remaining elevated may be one of the reasons why home sales are yet to recover,”…

Prices Trend Up, With New England Seeing A Spike

As home prices continue to rise across the country, New England is a hot spot for year-over-year gains. CoreLogic’s national Home Price Index increased for the 139th consecutive month in August, up 3.7% YOY, the biggest gain since February 2023. Prices are now 42% higher than in March of 2020, when the pandemic began. Massachusetts’ top-dollar homes reflect a growing interest in the Northeast. New Hampshire, Maine, Vermont, and Rhode Island sported the largest YOY price gains in August. Strong jobs markets and relative affordability make the Northeast and Mid-Atlantic attractive to cost-sensitive buyers, pulling them away from pricey areas that were hot in the last few years. Not every market saw an appreciation jump. In eight states, prices fell…

Financial Assistance For Homeowners Expands As Interest Rates Continue To Skyrocket

By NICOLE MURRAY There have been 1.3 million cases where loss mitigation options have helped borrowers remain in their homes since the start of the Covid-19 pandemic, according to officials at the U.S. Department of Housing and Urban Development. A few common tools available through these home retention programs include a loan modification, forbearance agreement, or repayment plan. However, some of these resources that once were effective in avoiding foreclosures now result in little to no reductions in monthly mortgage payments due to spiking interest rates. As a result, a new proposal is being offered by the Federal Housing Administration, so borrowers have a potentially more effective option to avoid foreclosure. This tool is called the Payment Supplement Partial Claim.…

Forecasting The Future: When Will People Start Moving Again?

By KIMBERLEY HAAS Although the market is slow now, there will eventually be a point when homeowners let go of their low interest rates and move. Selma Hepp, chief economist at CoreLogic, said it is just a matter of time. Hepp was speaking during an economic forecast panel at the National Association of Real Estate Editors conference in Las Vegas last week. During her presentation, she said although the housing market varies throughout the country, it has been a disappointing spring season. “Most all markets at this point are showing declines in home sales, but some markets are showing much larger declines in home sales than others,” Hepp said. She said part of the reason for that is homeowners feel…

Selma Hepp Named CoreLogic Chief Economist

Selma Hepp has been named chief economist at CoreLogic, the company announced in a press release. “I am honored and thrilled to lead our team as we continue to generate industry-leading, data-driven insights and thought-provoking perspectives on all things housing. Given the challenges of today’s housing market, CoreLogic’s depth, wealth, and consistency of data position us to provide clear and actionable views of the property ecosystem, and bring value to our clients and broader markets,” Hepp said in a statement. Hepp was named interim chief economist in July 2022 and has now cemented the title. In her role, Hepp oversees the economics team that analyzes and forecasts housing and economic trends in real estate, mortgage, and insurance. Before her interim…

Price Appreciation Slows To Half Of April Peak

Home price appreciation is now half of what it was in April, its lowest recorded point since early 2021, according to new data from CoreLogic. October’s CoreLogic Home Price Index recorded a 10.1% increase YOY. Though still elevated, it continues to decrease from record highs earlier this year. The coming months are expected to push growth back into single digits. Month-over-month, prices were down 0.1% from September. Low inventory, waning buyer purchase power, and economic uncertainty are at the heart of the issue, CoreLogic leaders say. Price growth is expected to cool through next spring when the housing market may go negative before slowly rebounding in the latter half of 2023. CoreLogic predicts appreciation will be 4.1% next October. “Following…

Price Growth Cooled Again In September But Remains Strong In Southeastern States

Home price growth cooled again in September, increasing only 11.4%, according to CoreLogic’s Home Price Index. This is the fifth month of lower YOY growth. Two-thirds of American metros saw at least some month-over-month declines as well, contributing to a 0.5% national decrease from August. Southeastern states continued to see higher price appreciation than other areas. Florida topped the list for the eighth straight month with 23% growth, followed by South Carolina (+17.6%) and Tennessee (+17.4%). Washington, D.C. ranked last with only 1.8% appreciation. “The rapid increase in prices during the COVID-19 pandemic caused many U.S. housing markets to reach completely unaffordable levels for potential local homebuyers,” said Selma Hepp, interim Lead of the Office of the Chief Economist at…