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Housing "recovery" is faltering. Housing affordability in the near future?
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2014 Jun 22, 11:25am 3,715 views 6 comments
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hrhjuliet
2014 Jun 24, 3:40pm
They probably will, but do you blame them? People selling something are not likely to publish that sales are down. That's bad for business.
Waiting for the Redfin graphs showing prices are up...
I can tell you that in Houston, which I considered to be an affordable market (once upon a time), that prices are up and sales are brisk. The majority of homes appear to be listed for $10K - $20K above the tax appraised value. A LARGE number appear to be under some type of contract (sales contract) within a month of being listed. Of course down here, with high property taxes, many of these folks are in for a nasty shock come next year's taxes. There is a neighbor who's house is listed on the tax rolls for $129K, if the sale goes through at full price (which I suspect it will/has as it is now listed as pending) is for over $190K. I mean, what the heck? Starting to feel like CA. LOL
hrhjuliet
2014 Jun 25, 4:06pm
The article seems to be correct. It isn't really a surprise; this was what most people predicted on this site.
Eman
2014 Jun 25, 4:51pm
Housing recovery is not faltering. It's consolidating its recent gains. If history is any indication, the market will remain stagnant until early next year. The market will go up again in spring 2015 through 2016.
Like Warren Buffett said, you will have 7 good years and 3 bad years when it comes to investing. Those who keep waiting for a prolong bad years, well they will have to wait for a long time.
hrhjuliet
2014 Jun 25, 5:00pm
I doubt it. This is not a normal market, so I don't expect it to follow normal patterns.
If it wasn't so artificially inflated beyond affordability I would consider it less volatile.
tatupu70
2014 Jun 25, 9:16pm
I doubt it. This is not a normal market, so I don't expect it to follow normal patterns.
If it wasn't so artificially inflated beyond affordability I would consider it less volatile.
Are you referencing just the bay area or the US in general?
http://mobile.bloomberg.com/news/2014-06-20/housing-falters-as-forecasters-see-u-s-sales-dropping.html
"The two-year-old U.S. housing recovery is faltering.
The Mortgage Bankers Association yesterday lowered its forecast for combined new and existing home sales in 2014 to 5.28 million -- a decline of 4.1 percent that would be the first annual drop in four years. The group also cut its prediction on mortgage lending volume for purchases to $595 billion, an 8.7 percent decrease and the first retreat in three years.
Bullish forecasts in early 2014 from MBA, Fannie Mae and Freddie Mac have been sideswiped by rising home prices and an economy that isn’t producing higher paying jobs. The share of Americans who said they planned to buy a home in the next six months plunged to 4.9 percent last month from 7.4 percent at the end of 2013, the highest in records going back to 1964, according to the Conference Board, a research firm in New York."
Thoughts?
#housing