Housing economists and experts are raising their price forecasts for the balance of the year as relentlessly low inventories and strong demand continue to drive prices up prices and crippled affordability, especially for entry-level buyers in more active markets. The 2017 Q2 Zillow Home Price Expectations Survey found that the more than 100 participants in its latest survey expect prices … Read More »

For buyers and real estate professionals, the specter of consistently rising rates over the balance of the year is not a pleasant one.  Higher rates raise the total cost of buying a home for the majority of buyers who finance their purchases.  At some point, rising rates will hurt sales. If so, won’t rising rates also dampen the torrid price … Read More »

Last year was not a great one for the housing economists who forecast home sales.  Most, include NAR[1] and Fannie Mae[2], predicted that existing homes sales would end up south of a 3 percent increase over 2015.  In fact, sales did a little better, rising 3.2 percent for the best sales year since 2006.[3] This year, experts are low-balling sales … Read More »

It had to happen. Put too many billions into building new apartment buildings atop subway stops and exurban min-cities and you can bet your bottom dollar the multifamily folks will end up with too much capacity. Not even massive demand from Millennials can deny the forces of supply and demand. Here’s the latest. “Fresh supply is beginning to overwhelm demand. … Read More »

Rising mortgage interest rates and their impact on mortgage affordability beat out inventory shorttagers as the most significant force driving the 2017 housing market, according to the latest Zillow Home Price Expectations Survey. On average, experts said rates on a 30-year, fixed mortgage will need to reach 5.65 percent before significantly impacting home value growth, though a sizable share said … Read More »

Will 2016 be remembered as the peak of the recovery?  It was the best year for sales in more than a decade.  Will sales take a break in 2017, a victim of political uncertainty, rising rates and prices that are outpacing incomes? Even worse, will 2017 herald a multi-year downtrend in sales? Last year, existing-home sales finished 2016 at 5.45 … Read More »

The latest projection from the Joint Center for Housing Studies’ Leading Indicator of Remodeling Activity (LIRA) calls for a slight slowing in annual growth in home improvement and repair expenditures will rise 6.7 percent at $317 billion, a strong but slight slowing of the  6.9 percent growth estimated for 2016. Remodelers are anticipating another year of widespread revenue growth in … Read More »

It’s no secret that inadequate inventories have been stunting the housing recovery.  Through November, total housing inventory has fallen year-over-year for 18 straight months and supplies are now 11.4 percent lower than they were two years ago.[1] As inventories decline, rising income, improved employment, and historically low mortgage rates have given demand a shot in the arm.  Sales in November … Read More »

Top real estate executives’ confidence in the U.S. economy and housing market for 2017 has softened compared to two years ago, and 42 percent have grown less confident in the world economy since January, according to the latest Imprev Thought Leader Real Estate Confidence study. Respondents included nearly 240 broker-owners and top executives at leading franchises and independent brokerage firms, … Read More »

Home price increases will slow next year from this year’s above average pace of 4.75 percent, and in November 2017, values will reach the median price peak set a decade ago, in April 2007, according to the latest quarterly Zillow® Home Price Expectations (ZHPE) Survey sponsored by Zillow and conducted by Pulsenomics LLC. Estimates based on the survey of 111 … Read More »