Connect with us

Real eState

I’m the chief economist for a $5 billion real estate data and title company. Here are 5 things you need to know about the housing market now – MarketWatch

Published

 on



Mark Fleming

Housing has become increasingly unaffordable to millions of Americans — with home prices and mortgage rates continuing to rise (see the lowest rates you may qualify for now here). So – as part of our series where we ask prominent economists and real estate pros their take on the housing market now – we talked to Mark Fleming. Fleming – the chief economist for title, settlement, real estate data and risk solutions company First American Financial Corporation – has analyzed and forecast the real estate and mortgage markets for 20 years. Before becoming the chief economist at First American, Fleming developed insights and analytical products for CoreLogic as well as valuation models at Fannie Mae and today his research expertise includes real estate and urban economics and mortgage risk. So we asked Fleming: What do today’s buyers and sellers need to know about the housing market?

.wsj-interactive.generic-iframe-embed[name=”1mortgage070522″]
height: 690px;
margin-bottom: 5px;

.at16units .bleed .wsj-interactive.generic-iframe-embed[name=”1mortgage070522″]
height: 680px;

body.at12units .bleed .wsj-interactive.generic-iframe-embed[name=”1mortgage070522″]
height: 690px;

body .inline .wsj-interactive.generic-iframe-embed[name=”1mortgage070522″],
body .offset .wsj-interactive.generic-iframe-embed[name=”1mortgage070522″],
body .header .wsj-interactive.generic-iframe-embed[name=”1mortgage070522″],
body.at8units .bleed .wsj-interactive.generic-iframe-embed[name=”1mortgage070522″]
height: 690px;

body.at4units .inline .wsj-interactive.generic-iframe-embed[name=”1mortgage070522″],
body.at4units .offset .wsj-interactive.generic-iframe-embed[name=”1mortgage070522″],
body.at4units .header .wsj-interactive.generic-iframe-embed[name=”1mortgage070522″]
height: 680px;

Mortgage rates are higher, but they’re still not high

Though they’re significantly higher than three months ago, which reduces house-buying power, they’re around 6% for a 30-year fixed-rate mortgage, which Fleming says is a far cry from high. “Mortgage rates are higher but by historical standards are not high,” says Fleming. He has a point: This chart from the St. Louis Fed shows the curve of mortgage rates since 1975.  (See the lowest rates you may qualify for here.)

Affordability is increasingly a challenge for buyers

Home price appreciation has been rapid  in the last two years. Indeed, according to data from the National Association of Realtors, the median sales price for an existing home was up 17% from last year. “That’s important because it’s been practically impossible for house-buying power to keep up, and consequently, affordability has been declining,” says Fleming. 

Fleming says house price appreciation, as measured by many of the house price indices reported in the media, have a significant lag, sometimes as much as six months. “It’ll be a few more months before the house price indices reflect how prices have reacted to the rapid increase in mortgage rates in the second quarter,” says Fleming.

Prepare for slower home price growth

But just because affordability is a challenge, doesn’t mean home prices are going to fall. Fleming says his research shows that during rising mortgage rate eras like we’re experiencing now, the number of home sales does tend to decline but house prices generally don’t. “Fewer sales and less price appreciation is the expectation,” says Fleming.

The housing market is cooling

Watch inventory levels and the amount of seller price reductions on listings. “These are the leading indicators of where prices will go and how the increase in mortgage rates have affected demand. More inventory and more seller price reductions signal a cooling market,” says Fleming. For sellers, this means a reset on the expectation of how quickly their home will sell. “Mere days on the market were never normal. In fact, the old adage used to be that sellers should typically expect their home may take up to 3 months on the market to sell. Of course, we’re a long way from that yet, but sellers should expect it to take longer to sell their home. For buyers, expect less fierce competition to buy a home,” says Fleming. (See the lowest rates you may qualify for here.)

Consider an ARM, and be a smart shopper

Given the current market, Fleming says it’s easy to lose focus amid shifts in mortgage rates and other housing dynamics. “The reality is some basic steps remain important and are not much different than any market. Shop around for the best mortgage and in a rising-rate market, investigate adjustable-rate mortgages for the lower rate benefit. Make your choices based on home as shelter, rather than an investment return opportunity and have patience,” says Fleming.

.wsj-interactive.generic-iframe-embed[name=”2mortgage070522″]
height: 690px;
margin-bottom: 5px;

.at16units .bleed .wsj-interactive.generic-iframe-embed[name=”2mortgage070522″]
height: 680px;

body.at12units .bleed .wsj-interactive.generic-iframe-embed[name=”2mortgage070522″]
height: 690px;

body .inline .wsj-interactive.generic-iframe-embed[name=”2mortgage070522″],
body .offset .wsj-interactive.generic-iframe-embed[name=”2mortgage070522″],
body .header .wsj-interactive.generic-iframe-embed[name=”2mortgage070522″],
body.at8units .bleed .wsj-interactive.generic-iframe-embed[name=”2mortgage070522″]
height: 690px;

body.at4units .inline .wsj-interactive.generic-iframe-embed[name=”2mortgage070522″],
body.at4units .offset .wsj-interactive.generic-iframe-embed[name=”2mortgage070522″],
body.at4units .header .wsj-interactive.generic-iframe-embed[name=”2mortgage070522″]
height: 680px;

Adblock test (Why?)



Source link

Continue Reading

Real eState

Local builders still busy as real estate market takes a break – Times Colonist

Published

 on


The real estate market may be taking a breather, but there has been no such break for homebuilders in the region judging by new housing start figures from the Canada Mortgage and Housing Corporation.

The numbers, released Tuesday, show 2,681 new homes were started through the first seven months of this year in Greater Victoria, ahead of last year’s pace when 2,500 new units were started.

It’s a tale of multi-family projects in two parts of the region, said Casey Edge, executive director of the Victoria Residential Builders Association.

Edge said Victoria and Langford are once again doing all of the heavy lifting.

“There are a bunch of municipalities that just fly under the radar every year, like Oak Bay that still doesn’t have zoning for duplex housing,” he said noting Oak Bay has built just 19 new homes this year, while North Saanich has started 16.

“And people question why do we have a housing affordability problem,” he said.

“Well, you have just a handful of municipalities that are really carrying the weight for 13 municipalities.”

The lion’s share has been done by Victoria so far this year.

With a focus on condo and rental apartments, the city has seen 1,219 homes started, well ahead of last year’s 696. Langford has started 663 so far this year, off last year’s pace of 862 through the end of July.

Edge said what’s missing is the missing middle housing — townhomes and houseplexes, rather than the usual condos and single-family homes — that can suit small families and provide more housing options in all parts of the region.

The fact builders in at least two of the region’s centres are busy may help the market catch up a bit, as the number of property sales has slowed considerably. The B.C. Real Estate Association released numbers on Tuesday showing Victoria’s sales dropped 37.5 per cent in July compared with the same time last year, while the Island saw a 40 per cent drop and the province fell 42 per cent.

“High mortgage rates continued to lower sales activity in July,” said BCREA chief economist Brendon Ogmundson.

“Many regions around the province have seen sales slip to levels well below normal for this time of year.”

At the same time, provincial active listings rose 28 per cent year-over-year.

Inventories remain quite low, but the slow pace of sales has tipped some markets into ­balanced or even buyers’ market territory, the association noted.

Year-to-date, residential unit sales were down 29.3 per cent to 56,801 units, while the average residential price was up 13.2 per cent to $1.03 million.

aduffy@timescolonist.com

>>> To comment on this article, write a letter to the editor: letters@timescolonist.com

Adblock test (Why?)



Source link

Continue Reading

Real eState

Podcast: Real estate marketing strategy with Publish Partners | RENX – Real Estate News EXchange

Published

 on


Podcast: Real World of Real Estate with Gerald Tostowaryk

Max Jakubke, principal and founder of Publish Partners, and the firm’s digital marketing director Bianca Elliot discuss numerous strategies for effective online real estate marketing with host Gerald Tostowaryk.

One of the focuses for the episode, the second in a series on real estate marketing, is using data effectively to improve your storytelling ability about a project or development.

As part of the discussion, Jakubke and Elliot share some examples of successful campaigns.

Publish Partners is an international firm based in Vancouver.

Adblock test (Why?)



Source link

Continue Reading

Real eState

Perfect time for sellers in Saskatchewan real estate market – Global News

Published

 on


For people who analyze statistics for a living, interpreting numbers is often about perspective.

For example, take home sales in Saskatchewan last month.

The province saw a 10-per cent reduction in home sales from 2021. However, last year was a record year for home sales in Saskatchewan.

Read more:

Saskatchewan companies see over $3.7 million in total tourism relief funding

“Overall, most regional markets are starting to shift away from the exceptionally tight market conditions seen earlier in the year,” the Saskatchewan Realtors Association said in a press release.

“However, most regional markets still face conditions that are tighter this July then they were last year.”

One of the reasons for the reduction is the spending issues many people are facing as inflation has drove prices of everyday items up. Another reason the market has slowed is the simple fact it’s summer and people aren’t home.

“People are on holidays, they’re out farming and so typically we see a slower market and people are maybe not used to that because during the pandemic we had a market that was very busy throughout the year,” said Chris Guérette, the CEO of Saskatchewan Realtors Association.

“So we are returning to sort of pre-pandemic activity during this time of the year.”

Buyers are more leaning towards more homes priced under $400,000, which as a result means less are available and slowing down sales.

Read more:

Nearly half of Canadians pay more attention to the weather than payday

“Inventory levels trended up in July over previous months, but every region still faced inventory levels that were lower than the previous year and long-term averages,” the press release read.

“Overall, most regional markets are starting to shift away from the exceptionally tight market conditions seen earlier in the year.  However, most regional markets still face conditions that are tighter this July then they were last year.

Guérette said overall, the provinces market it a lot more stable than other places.

“We know that we won’t have the drastic ups & downs that other large municipalities are facing & other provinces are facing at the time right now. So that means places like Ontario and B.C are seeing some really large dips and some swings.”

Guérette said it is a sellers’ market right now, with the average price of a home in Saskatchewan going up to $335,000.


Click to play video: 'How to send your kids off and prepare for university housing.'



4:33
How to send your kids off and prepare for university housing.


How to send your kids off and prepare for university housing.

© 2022 Global News, a division of Corus Entertainment Inc.

Adblock test (Why?)



Source link

Continue Reading

Trending