Wednesday, November 16, 2022 / by Dave Magua
Home sale prices charted their smallest annual increase since July 2020 during the four weeks ending Nov. 6, according to a new report, released Thursday by the online brokerage Redfin.
Prices increased by 3.2 percent year over year, a drop of 8.4 percent from their all-time high recorded in June, according to the report.
The drop comes as the rate of inflation has begun to show signs of slowing, with the all-time inflation index charting a 7.7 percent annual increase in October, the lowest increase since January’s record-breaking 7.5 percent increase.
“This morning’s report that the overall inflation rate is finally starting to back off makes it even more likely that the Fed will slow their rate increase to 50 basis points next month,” Redfin Deputy Chief Economist Taylor Marr said in a statement on Thursday. “The inflation news is already helping to bring daily mortgage rates down. However, Chair Powell has indicated that inflation ...
Tuesday, November 15, 2022 / by Dave Magua
New Urban Communities Corporation plans to acquire city-owned land in Sunrise Florida for a 28-house development reserved mainly for middle-income buyers.
The Delray Beach-based developer probably will sell the single-family homes at prices “in the $400,000s, which, in this day and age, is pretty reasonably priced,” Tim Hernandez, co-founder of New Urban Communities, told The Real Deal.
“It’s less affordable now than when we started, with interest rates going up,” Hernandez said. “By the time we get it approved, hopefully the mortgage rates will have come down.”
Most of the 28 new houses would have deeds with income-based restrictions on their ownership under a pending development agreement between New Urban and the city of Sunrise.
New Urban agreed to the income-based deed restrictions largely because the city has agreed to sell the development site at 1577 Sunset Strip to New Urban for $410,000 less than it paid s ...
Monday, November 14, 2022 / by Dave Magua
Probably the single most significant number that came out of this earnings season was $928 million. That number — just shy of $1 billion — is the amount that Opendoor lost in the third quarter alone. The company was quick to point out that the losses weren’t purely in cash, but rather were due to adjusting the valuation of the homes the company had in its inventory.
Still, it was a startlingly large loss and it sent Opendoor shares plummeting to a new all-time low of $1.46.
Rival Offerpad reported earnings a day earlier, and revealed that it lost $80 million — a much smaller number but also one that reversed several months of profitability for the second-largest dedicated iBuyer. That news also sent Offerpad’s shares tumbling.
These numbers highlight two issues for the iBuyers. The longer-term issue is whether or not the iBuying model works in a market where home prices are static or falling. The iBuyers think it does, and are also pivoting in vario. ...
Friday, November 4, 2022 / by Dave Magua
As happened during the Great Recession, home prices today are beginning to fall after experiencing an extended period of red-hot price gains.
But unlike those days, most homeowners have a trump card in hand: They’re still swimming in positive equity.
In fact, nearly half of U.S. residential properties with a mortgage in the third quarter of 2022 had equity that was greater than the remaining amount owed on their respective loans, according to a report Wednesday from Attom.
The real estate data provider found that nearly 49 percent of properties were “equity rich” by this standard last quarter. That represents a slight uptick from the previous quarter and a significantly higher share than in the same period in 2021 when 40 percent of homes were considered equity rich.
The amount of equity built up since the Great Recession — including a significant rise over the past three years alone — ensures a softer landing for many homeowneN ...
Wednesday, November 2, 2022 / by Dave Magua
Home prices continued to fall in September as buyer demand cooled, according to data released Tuesday, compiled by the real estate analytics provider CoreLogic.
The data shows that home prices posted a 0.5 percent decline between August and September and were up 11.4 percent from September 2021 — a relaxed rate of annual growth compared to previous months.
The once out-of-control housing market has largely been brought to heel by the steep increase in mortgage rates, which surpassed 7 percent in October,bringing the share of income required to make a typical monthly mortgage payment up to 30 percent.
Price growth is uneven across the country as some markets that saw unprecedented growth during the COVID-19 pandemic have begun price correction while others are still seeing a sustained rate of migration.
“The rapid increase in prices during the COVID-19 pandemic caused many U.S. housing markets to reach completely unaffordable levels for potentia. ...