Monday, August 1, 2022 / by Dave Magua
The forces fueling home price growth for the past two years have been weakening in recent months as the market finds itself in the midst of a multi-month slowdown.
Home prices rose by 1 percent in May after accounting for seasonal patterns, according to the S&P Corelogic Case-Shiller Index numbers released on Tuesday. Prices were up nearly 20 percent year over year.
By normal standards, this still represents a remarkably high rate of growth for the prices of U.S. homes.
“Housing data for May 2022 continued strong, as price gains decelerated slightly from very high levels,” S&P Dow Jones Industrial Managing Director Craig Lazzara said in a statement.
But throughout the COVID-19 pandemic, conditions have been far from normal. Cheap mortgages in the first couple years of the pandemic helped drive up demand for homes — and the prices for which they would sell — to previously unseen levels.
Since the start of the year, howeve; ...
Friday, July 15, 2022 / by Dave Magua
Southern Fidelity Insurance Company is the fourth insurer ordered into liquidation so far this year, leaving an estimated 78,000 policyholders in Florida scrambling to find new coverage in 30 days, just as hurricane season gets underway.
Southern Fidelity Insurance Company is the latest property insurer to shut down in Florida.
"Effective July 15, 2022, all Southern Fidelity policies are going to expire," said Mark Friedlander of the Insurance Information Institute.
This is the fourth insurer ordered into liquidation so far this year, leaving an estimated 78,000 policyholders in Florida scrambling to find new coverage in 30 days, just as hurricane season gets underway.
Because the Florida property insurance market is so unstable right now, it's very difficult to find coverage for your home," Friedlander said.
That's why Friedlander says most of those impacted will likely end up with Citizens, the state-created insurer.
"They have already surpassed 900,000 polici. ...
Thursday, July 14, 2022 / by Dave Magua
Housing costs were one of the biggest drivers of inflation in June, pushing higher at a pace unseen since 1990, according to a report Wednesday from the Bureau of Labor Statistics.
American housing costs rose faster in June than in any month since 1990 — and the change was one of the biggest factors placing an increase strain on family budgets.
The prices of a broad range of consumer goods and services were 9.1 percent higher last month than they were a year ago, and rose 1.3 percent from May to June alone, according to a report Wednesday from the Bureau of Labor Statistics.
Housing costs for homeowners rose 5.5 percent over the past year, and saw a 0.7 percent bump from May to June alone. Over both periods, the bureau reported the fastest escalation in homeownership costs since 1990.
As an input to future reports, housing inflation could get worse before they get better, according to First American Chief Economist Mark Fleming.
“One headwind for the Fed’s fight N ...
Wednesday, July 13, 2022 / by Dave Magua
About 60,000 home-purchase agreements were canceled in June 2022, or about 14.9% of all homes that went under contract throughout the month, according to a new report from Redfin.
Such figures of canceled contracts have not been seen since early pandemic days in March and April 2020, when the number of contracts that fell through hit 17.6 percent and 16.4 percent, respectively. By contrast, 12.7 percent of contracts fell through in May 2022 and 11.2 percent fell through in June 2021.
Redfin’s analysis includes MLS data dating back to early 2017. The brokerage also pointed out in its report that homes that fall out of contract one month may have entered a contract in a different month, i.e., a property whose contract was canceled in June may have initially gone under contract in May.
“The slowdown in housing-market competition is giving homebuyers room to negotiate, which is one reason more of them are backing out of deals,” Redfin Deputy Chief EconomistN ...