Different Studies Conclude It’s a Housing Recovery, But…

Let’s take a look at the data and conclusions of a couple of newly-released reports about the housing market and the current status many refer to as a “recovery.” They draw some of the same conclusions, but they’re not necessarily together on the current strength of this recovery.
The State of the Nation’s Housing from the Joint Center for Housing Studies of Harvard University
The overall conclusion of this report stated in one sentence is that “Homebuilding strengthened in 2013, but remains below historical averages. There’s no startling revelation there, but there is some informative data in the report:
• Housing starts in 2013 were up more than 18 percent from 2012, but were down to 925,000 units from the historical average of 1.46 million.

My cheapest house so far...

Just inked a sub2 deal with a distressed seller referred to me by father in law. Older gentleman is 2 months behind and decided to walk away. Has already moved out and moved on. Am getting him caught up on payments and taxes, total of 3200. He is signing it over, has no issue with leaving the financing in his name he only wants the bank to stop calling him and stop sending him mail. Craigslist ads have netted several interested C4D buyers, who I'll be showing it to next week. One of the interested party has 12k to put down. I told him I could work with that.....This is the smallest amount of money I have spent on a house. Net profit should come in at 22k.

This Week’s Short Stories

Mortgage Rates Improve this Week
Mortgage rates dropped this week, preserving a range they’ve been in since May. Rates have remained in a range from 4.125% to 4.25%, and most of the day-to-day movement has been in closing cost adjustments.

Foreclosures up in May
Year-over-year, foreclosures have been falling in most areas. However, in May foreclosures were up compared to the April level. This is according to CoreLogic. Completed foreclosures numbered 47,000 in May, up by 2.8% over April, but down year-over-year by 9.4%.

Millennials to Make Housing Mark … maybe

Mortgage and Housing Outlook for 2014

It may seem a little late to be talking about the real estate industry outlook for this year, as we’re already more than half way through it. However, over at NuwireInvestor.com, there is an interesting article this week doing just that.
It begins by stating that things are certainly getting better, but also predicting that there will be no quick snap back to normal market conditions anytime soon. HSH.com, a mortgage and housing research company provides some data:
• Mid-year analysis shows 30-year fixed mortgage rates could move up to 5% to 5.25% before the year is over.
• That’s a significant factor, as the current rate is around 4.233%.
• With the Fed attempting to keep interest rates down, it is expected that entry level ARM rates will remain low.

When Cash Buyers Move Out of a Market

Real estate is local, and every market is unique. However, certain trends are national in nature, and the law of supply and demand doesn’t change from market to market. Playing out in the Las Vegas, NV market right now is a situation with cash buyers leaving the market. It could be a learning tool for investors in other markets to mitigate risk and even possibly wait for better deals to appear with lower demand.

This Week’s Short Stories

Pending Home Sales Up

Pending home sales rose sharply in May. Low mortgage rates and increasing inventories helped. All four regions of the country saw increases. The Pending Home Sales Index increased by 6.1% in May. This is the largest monthly gain since April, 2010.

Minimum Wage Increases Make the Day for Mobile Home Park Owners

A statistic overlooked by many investors is the relationship between mobile home park values and the minimum wage. With the minimum wage at $7.25, a monthly income of around $1,200 mandates rent of roughly 38%, or $456 per month. While apartment project and single family landlords can rarely get their rents down to this range, it’s common for mobile home parks to provide housing for around $500/month.

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