Please wait as we prepare your PDF file ....

Mission Chronicle Blog

Search Blog

our goal is to help you stay informed by providing timely and interesting articles.

A month in review: The June housing market

08/01/2017

Download PDF

Every month, economists release a number of indices, reports and analyses of the housing market, and it can be difficult to keep up with them all.

Thankfully, the National Association of Realtors (NAR) recapped the month in its Housing Minute monthly video series, and below is also a recap of the June housing news we covered at Inman.

Although the housing market is recovering, some demographics are still dealing with the impact of the recession. 

Zillow’s Home Equity Report revealed Gen-Xers are struggling to build equity since they bought their homes in the midst of the recession when home values plummeted. “Roughly half of American wealth is held in home equity,” said Zillow Chief Economist Dr. Svenja Gudell of the study results. “Paying off the home mortgage is a key step toward retirement for most Americans, and it’s clear from these results that Generation X is further from that goal than older generations because of the Great Recession.” On average, Gen-Xers (aged 35–50) have a loan-to-value ratio of 70 percent — just six percentage points lower than their millennial counterparts who just entered homebuying age.

June sales are down 1.8 percent month-over-month and up 0.7 percent year-over-year, and June sales prices rose 6.5 percent year-over-year to a new peak median of $263,800.

June existing home sales fell thanks to low inventory and a lull in contract signings over the past three months. The 6.5 percent year-over-year increase in home prices is part of a 64-month trend of rising home prices. “Closings were down in most of the country last month because interested buyers are being tripped up by supply that remains stuck at a meager level and price growth that’s straining their budget,” said National Association of Realtors Chief Economist Lawrence Yun.

Rental construction is booming, keeping would-be buyers from making the leap into homeownership.

Inventory crashers: how top pros got listings in dry markets Not all real estate agents go thirsty during a drought READ MORE

According to RentCafé, rental construction is up 21 percent year-over-year — the highest level of building since 1997. The high level of construction is slowing the growth of monthly rent, making renting more attractive than owning a home, especially when home prices are growing 6.5 percent year-over-year. Renters in San Francisco, New York, Dallas, Houston and Nashville are benefitting the most from the boom in construction. Demographically, millennials and baby boomers are turning to rentals for a “fewer financial strings” lifestyle. “Lifestyle changes, a housing-stock shortage and high homes prices have led to more people than ever — of all ages — choosing to rent an apartment rather than buy a home,” said RentCafé Senior Analyst Doug Ressler.

Signed contracts rose after a three-month decline, increasing 1.5 percent month-over-month to 110.2. But, pending home sales are still 7.1 percent lower than June 2016.

Although there was a slight increase in signed contracts, low inventory is still holding back activity, especially in the starter homes segment of the market. “However, the home search will still likely be a strenuous undertaking in coming months because supply shortages in most areas are most severe at the lower end of the market,” said Yun.

Email Marian McPherson.

Source: click here

Read More

INSPIRED, INTELLIGENT, INSIGHTFULL

STAY INFORMED WITH TIMELY AND INTERESTING ARTICLES FROM OUR BLOG, MISSION CHRONICLE. OUR ASPIRATION IS TO PROVIDE REALTORS AND OTHER REAL ESTATE INDUSTRY PROFESSIONALS WITH EXCEPTIONAL RESOURCES AND SHARE OUR KNOWLEDGE TO PROPEL YOU TO YOUR GOALS.

  • How urban buyers are creating space and redefining how they live

    We’ve all experienced the shift this year: luxury buyers opting for spacious homes in the suburbs ...

  • Realable puts a unique spin on virtual tours

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • Navigating the long-term decentralizing of work (part 2 of 2)

    As interest in urban condos fluctuates and suburban mansions see multiple offers, the shift to decen...

  • Growth-oriented Keap hits most of the CRM high notes

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • What the decentralizing of work means for your market (part 1 of 2)

    Successful professionals in business and finance are some of the leading buyers and sellers of luxur...

  • Part Instagram, part Pinterest, property search gets social with Rila

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • Where do buyers want to retreat to this year?

    For luxury real estate buyers, the search has begun for homes where the nearest neighbors are large ...

  • Manage leads, listings and loans with Townify

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • 3 trending outdoor amenities buyers are looking for

    Easy access to the conveniences consumers once enjoyed outside their homes — from spas to gyms to ...

  • OpenFrame brings new twists to its virtual home tour app

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

October 2020
Mon Tue Wed Thu Fri Sat Sun
 1234
567891011
12131415161718
19202122232425
262728293031  

  • Polls

    What information you are looking for?

    View Results

    Loading ... Loading ...
  • Last month Results

    How Is My Site?

    • Good (100%, 3 Votes)
    • Excellent (0%, 0 Votes)
    • Bad (0%, 0 Votes)
    • Can Be Improved (0%, 0 Votes)
    • No Comments (0%, 0 Votes)

    Total Voters: 3

    Vote

    Loading ... Loading ...