Tag Archive for lows

Americans’ Optimism About Home Prices Grows

April 30, 2014 Housing Market Comments Off on Americans’ Optimism About Home Prices Grows

A majority of Americans believe that home prices in their area will rise over the next year, according to a new survey from Gallup. The survey found 56 percent of Americans say they expect average prices to increase, which is up from an all-time low of 21 percent in 2011. It is also five times the number that say prices will fall. The results of Gallup’s annual Economy and Personal Finance poll are further evidence that optimism about the housing market continues to build after experiencing sharp declines following the housing crash. Americans are confident that prices will keep trending upward and that now is a good time to capitalize by purchasing a home. In fact, 74 percent of respondents said it was a good time to buy a house, which is among the most positive readings in survey history. The number of Americans who think now is the time to buy has been climbing in recent years after dropping to 52 percent in 2006. According to Gallup, Americans’ view of the housing market has mostly recovered from the lows seen during the downturn. People feel the worst is over but prices aren’t yet overvalued. This perception is partly responsible for the expectation that this spring and summer will see an increase in home sales. More here.

Confidence In Economy Hits Five Year High

February 3, 2014 Housing Market Comments Off on Confidence In Economy Hits Five Year High

Americans grew more confident in the economy in 2013, according to recently released data from Gallup. Though their perception of economic conditions and the future direction of the economy experienced some ups-and-downs throughout the year, Americans were more optimistic than in years past, with gains seen across several key indicators. Gallup’s Job Creation Index, for example, gained two points from its year-before level, while economic confidence rose five points and average daily spending increased to $88, a $16 improvement over 2012. Overall, Americans were more confident in the economy than in the previous five years, which is a positive sign that the economy is recovering from the most recent recession. Still, Gallup warns that it is unclear how strong the economic recovery is due in part to the support its received from the Federal Reserve over the past two years. This year, the Fed will begin winding down some of the economic stimulus that has been keeping interest rates at historic lows and helping boost the economy and housing market. Though this has the potential to drive rates up, the Fed has indicated that it will keep short-term rates low until unemployment drops or inflation becomes a concern. More here.

Number of Underwater Homeowners Falls 47.5%

January 14, 2014 Housing Market Comments Off on Number of Underwater Homeowners Falls 47.5%

The number of homeowners who owe more on their mortgage than their home is worth has fallen 47.5 percent since the beginning of 2012. According to the federal government’s most recent Housing Scorecard, released by the U.S. Department of Housing and Urban Development and the U.S. Department of the Treasury, nearly 6 million underwater homeowners have been lifted above water as home prices increased from post-crash lows over the past two years. The improvement has pushed homeowner equity up 55 percent since the end of 2011. In fact, by the third quarter of 2013, homeowner equity was slightly higher than it was at the end of 2003. Despite the progress, officials caution that there is more work to do. Edward J. Szymanoski, HUD’s associate deputy assistant secretary for economic affairs, said there are encouraging signs that the housing market recovery is providing millions of American homeowners with more economic security but there remains work to do in order to address the remaining underwater borrowers. More here.

New Home Construction On The Rise

September 23, 2013 Uncategorized Comments Off on New Home Construction On The Rise

According to the U.S. Census Bureau and the Department of Housing and Urban Development, permits to build new single-family homes rose 3 percent in August, reaching their highest level since 2008. The improvement, combined with a 7 percent jump in single-family housing starts, provides more evidence of a consistent and sustained recovery in the residential housing market. And, in addition to the obvious benefits to housing, gains in new-home construction are closely tied to the broader economy. In fact, economists’ estimate that every new home built leads to the creation of three jobs for a year. Demand for new homes is expected to continue, as household formation numbers recover from historic lows. More here and here.