March 2013 U.S. Economic Fundamentals
- Thread starter Ally
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Home prices in 20 U.S. cities increase by most since 2006
Home prices in 20 U.S. cities rose in December by the most in more than six years, a sign the housing-market recovery is strengthening.
Feb. 26 (Bloomberg) -- Jeremy Siegel, professor of finance at the University of Pennsylvania's Wharton School, talks about the outlook for the U.S. housing market, U.S. stocks and Europe's debt crisis. He speaks with Betty Liu, Sheila Dharmarajan and Julie Hyman on Bloomberg Television's "In the Loop." (Source: Bloomberg)
Read the full article here.
Home prices in 20 U.S. cities rose in December by the most in more than six years, a sign the housing-market recovery is strengthening.
Feb. 26 (Bloomberg) -- Jeremy Siegel, professor of finance at the University of Pennsylvania's Wharton School, talks about the outlook for the U.S. housing market, U.S. stocks and Europe's debt crisis. He speaks with Betty Liu, Sheila Dharmarajan and Julie Hyman on Bloomberg Television's "In the Loop." (Source: Bloomberg)
Read the full article here.
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Is the American housing rebound sustainable
` 2012 was a very good year for the U.S. housing market. Home prices were up almost 8% and housing starts by close to 30%. The gains have prompted questions about whether the market has come too far too fast.
` An examination of long-term fundamentals suggests that housing still has considerable upside potential. Housing starts have only just surpassed the average trough experienced in previous housing cycles over the last fifty years; construction is still well under expected household formation; and, the improvement in housing affordability suggests little downside risk to home prices.
` The growth in construction has been led by multi-family units. In December, the level of multi-family starts surpassed the average over the last cycle running from 1995 to 2007. With continued pressure on the homeownership rate, rental demand is likely to remain strong and support continued gains in the multi-family sector.
Read the full article here.
` 2012 was a very good year for the U.S. housing market. Home prices were up almost 8% and housing starts by close to 30%. The gains have prompted questions about whether the market has come too far too fast.
` An examination of long-term fundamentals suggests that housing still has considerable upside potential. Housing starts have only just surpassed the average trough experienced in previous housing cycles over the last fifty years; construction is still well under expected household formation; and, the improvement in housing affordability suggests little downside risk to home prices.
` The growth in construction has been led by multi-family units. In December, the level of multi-family starts surpassed the average over the last cycle running from 1995 to 2007. With continued pressure on the homeownership rate, rental demand is likely to remain strong and support continued gains in the multi-family sector.
Read the full article here.
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Seasonal pattern for house prices
There has always been a clear seasonal pattern for house prices, but the seasonal differences have been more pronounced in recent years.
Even in normal times house prices tend to be stronger in the spring and early summer than in the fall and winter. Recently there has been a stronger than normal seasonal pattern because conventional sales are following the normal pattern (more sales in the spring and summer), but distressed sales (foreclosures and short sales) happen all year. So distressed sales have had a larger negative impact on prices in the fall and winter.
Read the full article here.
There has always been a clear seasonal pattern for house prices, but the seasonal differences have been more pronounced in recent years.
Even in normal times house prices tend to be stronger in the spring and early summer than in the fall and winter. Recently there has been a stronger than normal seasonal pattern because conventional sales are following the normal pattern (more sales in the spring and summer), but distressed sales (foreclosures and short sales) happen all year. So distressed sales have had a larger negative impact on prices in the fall and winter.
Read the full article here.
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Asking house prices increased in February, inventory not expected to bottom in 2013
Since bottoming 12 months ago, national asking home prices rose 7.0 percent year-over-year (Y-o-Y) in February. Seasonally adjusted, asking prices also increased 1.4 percent month-over-month (M-o-M) and 3.0 percent quarter-over-quarter (Q-o-Q) ` marking two post-recession highs. Asking prices locally are up in 90 of the 100 largest U.S. metros, rising fastest in Phoenix, Las Vegas, and Oakland.
Meanwhile, rent increases are slowing down. In February, rents rose just 3.2 percent Y-o-Y. This is a notable decrease from three months ago, in November, when rents were up 5.4 percent Y-o-Y. Among the 25 largest rental markets, rents rose the most in Houston, Oakland, and Miami, while falling slightly in San Francisco and Las Vegas.
Read the full article here.
Since bottoming 12 months ago, national asking home prices rose 7.0 percent year-over-year (Y-o-Y) in February. Seasonally adjusted, asking prices also increased 1.4 percent month-over-month (M-o-M) and 3.0 percent quarter-over-quarter (Q-o-Q) ` marking two post-recession highs. Asking prices locally are up in 90 of the 100 largest U.S. metros, rising fastest in Phoenix, Las Vegas, and Oakland.
Meanwhile, rent increases are slowing down. In February, rents rose just 3.2 percent Y-o-Y. This is a notable decrease from three months ago, in November, when rents were up 5.4 percent Y-o-Y. Among the 25 largest rental markets, rents rose the most in Houston, Oakland, and Miami, while falling slightly in San Francisco and Las Vegas.
Read the full article here.
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Housing: The two botttoms
Last year when I wrote The Housing Bottom is Here and Housing: The Two Bottoms, I pointed out there are usually two bottoms for housing: the first for new home sales, housing starts and residential investment, and the second bottom is for house prices.
Read the full article here.
Last year when I wrote The Housing Bottom is Here and Housing: The Two Bottoms, I pointed out there are usually two bottoms for housing: the first for new home sales, housing starts and residential investment, and the second bottom is for house prices.
Read the full article here.
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Firm says national home price gains are unstable
While some read recent home price gains as a sign of an improving market, Radar Logic warns the recent gains are `unsustainable` and may actually be dampening market recovery.
Radar Logic attributes recent house price gains to anomalous factors it considers temporary, including low interest rates and elevated investor demand. `None of these drivers are likely to last, particularly as housing prices increase,` RadarLogic stated in its December RPX Monthly Housing Market Report.
The firm calculated an 11.8 percent price increase year-over-year in December, according to its RPX Composite of 25 metropolitan areas.
Read the full article here.
While some read recent home price gains as a sign of an improving market, Radar Logic warns the recent gains are `unsustainable` and may actually be dampening market recovery.
Radar Logic attributes recent house price gains to anomalous factors it considers temporary, including low interest rates and elevated investor demand. `None of these drivers are likely to last, particularly as housing prices increase,` RadarLogic stated in its December RPX Monthly Housing Market Report.
The firm calculated an 11.8 percent price increase year-over-year in December, according to its RPX Composite of 25 metropolitan areas.
Read the full article here.
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The best & worst states for real estate taxes
Being a landlord has many perks, but paying property taxes is not one of them. All states impose property taxes, but the amount collected varies greatly from state to state. While a few tenths of a percentage may not seem like much, it makes a huge difference when comparing taxable values in the hundreds of thousands.
To get an idea of what is at stake, compare Louisiana and Connecticut. Louisiana has one of the lowest state property tax rates in the United States at 0.18%. Conversely, Connecticut has a higher property tax rate of 1.63%. Not a huge difference, right? Think again. For a median home worth around $200,000, Connecticut landlords will pay $3,260 in real estate taxes each year, while Louisiana landlords will pay a lean $340.
Read the full article here.
Being a landlord has many perks, but paying property taxes is not one of them. All states impose property taxes, but the amount collected varies greatly from state to state. While a few tenths of a percentage may not seem like much, it makes a huge difference when comparing taxable values in the hundreds of thousands.
To get an idea of what is at stake, compare Louisiana and Connecticut. Louisiana has one of the lowest state property tax rates in the United States at 0.18%. Conversely, Connecticut has a higher property tax rate of 1.63%. Not a huge difference, right? Think again. For a median home worth around $200,000, Connecticut landlords will pay $3,260 in real estate taxes each year, while Louisiana landlords will pay a lean $340.
Read the full article here.
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Biggest banks see U.S. home prices surging this year
Federal Reserve Chairman Ben Bernanke`s efforts to revive housing are making real estate bulls even more bullish.
JPMorgan Chase & Co. more than doubled its forecast for U.S. home price gains in 2013 to 7% this week, and predicts a more than 14% increase through 2015. Bank of America Corp. said last week property values will jump 8% this year, up from a prior estimate of 4.7% in a report titled `Someone say house party?`
Read the full article here.
Federal Reserve Chairman Ben Bernanke`s efforts to revive housing are making real estate bulls even more bullish.
JPMorgan Chase & Co. more than doubled its forecast for U.S. home price gains in 2013 to 7% this week, and predicts a more than 14% increase through 2015. Bank of America Corp. said last week property values will jump 8% this year, up from a prior estimate of 4.7% in a report titled `Someone say house party?`
Read the full article here.
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Where housing hasn't hit bottom yet - and probably won't all year
We've been hearing lots of good news about the housing market lately. Nationally, we hit a bottom in October 2011, Zillow says, and home values ended 2012 up another 5.9 percent over year-end 2011. The current national median is $158,100.
Of 260 metro areas, 239 have already hit bottom and are climbing out. But that still leaves 21 metro areas that haven't seen their low point yet.
Read the full article here.
We've been hearing lots of good news about the housing market lately. Nationally, we hit a bottom in October 2011, Zillow says, and home values ended 2012 up another 5.9 percent over year-end 2011. The current national median is $158,100.
Of 260 metro areas, 239 have already hit bottom and are climbing out. But that still leaves 21 metro areas that haven't seen their low point yet.
Read the full article here.
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Shadow economy shows joblessness less than meets the eye
When Kevin Kalmes received a foreclosure notice on her home after being unemployed for more than two years, she said she started selling the contents of her basement, figuring that `I can`t fit all this stuff in a Wal- Mart shopping cart.`
Read the full article here.
When Kevin Kalmes received a foreclosure notice on her home after being unemployed for more than two years, she said she started selling the contents of her basement, figuring that `I can`t fit all this stuff in a Wal- Mart shopping cart.`
Read the full article here.
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Goldman: There is no sign of American manufacturing renaissance
One of the big emerging economic stories in the world today is the American manufacturing renaissance. This is the idea that low energy prices, increasing productivity, and rising costs overseas would invigorate the production of goods in the U.S.
Read more: http://www.businessinsider.com/goldman-no-american-manufacturing-renaissance-2013-3#ixzz2OaAoADCa
Read the full article here.
One of the big emerging economic stories in the world today is the American manufacturing renaissance. This is the idea that low energy prices, increasing productivity, and rising costs overseas would invigorate the production of goods in the U.S.
Read more: http://www.businessinsider.com/goldman-no-american-manufacturing-renaissance-2013-3#ixzz2OaAoADCa
Read the full article here.
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The case for optimism
This post is the optimistic counterpart to my post yesterday, Why is everyone so gloomy? Here are 18 charts, in no particular order, that document the economy's ongoing recovery. I think this amounts to a persuasive body of evidence supporting my belief that the economy is recovering, and growing, and likely to continue to do so for the foreseeable future. It's not a robust recovery, to be sure, but it is definitely a recovery and things are indeed getting better.
Read the full article here.
This post is the optimistic counterpart to my post yesterday, Why is everyone so gloomy? Here are 18 charts, in no particular order, that document the economy's ongoing recovery. I think this amounts to a persuasive body of evidence supporting my belief that the economy is recovering, and growing, and likely to continue to do so for the foreseeable future. It's not a robust recovery, to be sure, but it is definitely a recovery and things are indeed getting better.
Read the full article here.
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That's what a housing recovery looks like
This beautiful chart from today's Case-Shiller house price report shows that housing has made a comeback.
Not only were prices around the country up over 8%, but the year-over-year improvement continues to accelerate nicely.
Both the 10 and 20-city composite indices had their highest increases since summer 2006. "This marks the highest increase since the housing bubble burst," according to David Blitzer Chairman of the Index Committee at S&P Dow Jones Indices.
Read the full article here.
This beautiful chart from today's Case-Shiller house price report shows that housing has made a comeback.
Not only were prices around the country up over 8%, but the year-over-year improvement continues to accelerate nicely.
Both the 10 and 20-city composite indices had their highest increases since summer 2006. "This marks the highest increase since the housing bubble burst," according to David Blitzer Chairman of the Index Committee at S&P Dow Jones Indices.
Read the full article here.
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Home values highest since 2007 as U.S. houses make cash
More American homeowners will be able to use their properties as cash machines again after real estate equity jumped last year by the most in 65 years.
Read the full article here.
More American homeowners will be able to use their properties as cash machines again after real estate equity jumped last year by the most in 65 years.
Read the full article here.
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Real estate tip: Buy near transit
Homes close to good transit options made for better real estate investments during the recession, according to a new study from the American Public Transportation Association.
APTA looked at housing market data from Phoenix, Boston, San Francisco, Minneapolis-St. Paul, and Chicago from 2006 to 2011, and compared homes close to transit with homes for the metro region overall. The study found residential property values located near transit performed 41 percent better. Heavy rail, bus rapid transit, and light rail, with more frequent service and transfer options, helped real estate prices even more than commuter rail more typically found in suburbs, according to the study.
Read the full article here.
Homes close to good transit options made for better real estate investments during the recession, according to a new study from the American Public Transportation Association.
APTA looked at housing market data from Phoenix, Boston, San Francisco, Minneapolis-St. Paul, and Chicago from 2006 to 2011, and compared homes close to transit with homes for the metro region overall. The study found residential property values located near transit performed 41 percent better. Heavy rail, bus rapid transit, and light rail, with more frequent service and transfer options, helped real estate prices even more than commuter rail more typically found in suburbs, according to the study.
Read the full article here.