Brian Ripp ~ Your Bay Area & Fremont Real Estate & Financial Agent » housing market update

Gen X Will Lead Housing Recovery

Brian Ripp — Wed, 13 Apr 2011 20:15:32 +0000

When the housing market does begin to recover, Generation X adults (ages 31 to 45) will likely lead the way, according to a panel of real estate experts who delivered an educational webinar presented by the National Association of Home Builders (NAHB). While Generation X is not the largest generation, it makes up roughly one-third of the home-buying population. They are the most mobile of the generations, they are in the prime of their careers, and they need to accommodate growing families, the panel experts say. While community amenities are important to Generation X buyers, many look for homes on large lots in suburban locations. They also want more storage, an open floor plan and flexibility in the garage. “While Gen X numbers are smaller than the birth cohorts before and after them, their numbers have been enlarged by steady immigration,” says NAHB chief economist David Crowe. “Gen X may wait longer than their predecessors to establish their own household or buy a home because of the recent recession impacts, but the trends are still likely to occur as they have for past generations.”

Most Americans Are Upbeat about Housing Prices

Brian Ripp — Tue, 22 Mar 2011 20:25:32 +0000

A large majority of Americans believe home prices will stabilize over the next 12 months, according to the latest national housing survey from Fannie Mae. Nearly four out of five Americans (78 percent) believe housing prices will hold steady or increase over the next 12 months, up from 73 percent a year ago. But nearly two-thirds (61 percent) still believe that the economy is on the wrong track, which is unchanged from last year.

The survey also finds that younger Americans, Hispanics and African-Americans have more positive views about owning a home than the general population. Almost six out of 10 Americans between the ages of 18 and 34 say buying a home has potential as an investment, while 34 percent of Hispanics and 35 percent of African-Americans say they expect to purchase a home within the next three years, compared to only one in four (23 percent) of all other Americans.

from CRS member connect on-line newsletter

Americans Remain Upbeat About Homeownership

Brian Ripp — Sun, 06 Mar 2011 19:06:31 +0000

Even as many homeowners struggle to make mortgage payments and foreclosures weigh down the housing market, 70 percent of Americans still view homeownership as part of the American Dream, according to a recent Trulia survey. More than three out of four homeowners (78 percent) say their homes are the best investment they ever made. Only 20 percent say they feel trapped in their “underwater” homes, while 14 percent say they would walk away from their homes if they could.

The survey also finds that members of the Millenial generation have gained an appreciation of homeownership. More than one in four (26 percent) of this group say their views of homeownership have become more positive over the past six months, while 15 percent developed more negative views.

Great article from my CRS MemberConnect on-line newsletter

Economists Project Improving Housing Market

Brian Ripp — Thu, 27 May 2010 16:00:00 +0000

Two top housing economists provided some encouraging news about the housing market during an economic session at the NAR Midyear Legislative Meetings and Expo this week. Both NAR chief economist Lawrence Yun and Moody’s Economy.com chief economist Mark Zandi agree that job creation is the key to a sustained economic and housing recovery, with job creation expected later this year, but they differed on their views about how foreclosures will impact home prices.

Yun says the homebuyer tax credit added 1 million buyers, reduced inventory by 1 million units and reduced the housing supply by several months, which corresponded to a positive impact on home prices of 5 percent to 8 percent. “Stabilizing home prices will limit future foreclosures,” says Yun. He predicts slightly stronger demand for housing and a fairly even level of foreclosures entering the pipeline this year before easing in 2011. “We expect distressed sales to account for 30 to 40 percent of transactions for the remainder of this year,” he says.

Zandi also forecasts improved demand for housing, but expects foreclosures to rise later this year before easing in 2011. He also says home prices may weaken further. “There will be no real price growth in 2010 or 2011. Whether home prices weaken is unclear, but it will take two more years to work off excess housing inventory at the current sales pace. Of course, if demand picks up, it would take less time for prices to rise,” Zandi says.

from CRS Member Connect newsletter

C.A.R.’s 2010 Housing Market Forecast

Brian Ripp — Thu, 15 Oct 2009 02:17:23 +0000

The median home price in California will rise 3.3 percent to $280,000 in 2010 compared with a projected median of $271,000 this year, according to C.A.R.’s “2010 California Housing Market Forecast”. Sales for 2010 are projected to decrease 2.3 percent to 527,500 units, compared with 540,000 units (projected) in 2009.

“California’s housing market continued its strong sales rebound this year, resulting from the continued pace of distressed properties coming to market,” said C.A.R. President James Liptak. “This follows two years of double-digit sales declines in 2006 and 2007. Looking ahead, we expect sales to moderate to a more sustainable pace.”

“After experiencing its sharpest decline in history, we expect the median price to rise modestly next year,” Liptak added. “2010 will mark the beginning of the ‘new normal’ for California’s housing market. This ‘new normal’ likely will feature a steady stream of sales driven by distressed properties in the low end of the market, coupled with moderate home-price appreciation.”

“With distressed properties accounting for nearly one-third of the sales in 2010, inventory will be relatively lean, under six months during the off-season months, and a roughly four-month supply during the peak season,” said C.A.R. and Vice President Leslie Appleton-Young. “We expect the median price to decrease slightly through the remainder of 2009 and into next year, then rise before leveling off next summer. For the year as a whole, home prices are forecast to reach $280,000. The wild cards for 2010 include foreclosures, loan resets, the labor market, and the California budget crisis, as well as the actions of the federal government.”

taken from C.A.R. Newsline – e-mail market update.