This summer, home buyer demand has been high while the supply of homes for sale has remained lower than normal. But, if you're a builder, those are perfect conditions. After all, when there are more buyers than homes, building more homes is the quickest way to balance the market. Because of that, the National Association of Home Builders' Housing Market Index – which measures builder confidence on a scale where any score above 50 indicates more builders view conditions as good than poor – has seen an uptick in … [Read more...]

With rental costs and home prices both increasing, it's become more challenging for renters to save for a down payment. How much so? Well, according to one recent analysis, the typical renter will have to save for nearly six and a half years to come up with a 20 percent down payment on a median-priced home. And, since the median home value is currently $216,000, depending on your prospective neighborhood, it could take even longer to save up for a house. Renters who aspire to homeownership shouldn't get … [Read more...]

The vast majority of surveyed Americans say that homeownership is among their retirement goals, according to a recent survey. In fact, 85 percent of non-retiree respondents said they want to own their own home in retirement and believe they can pay off their mortgage before they retire. But, though non-retiree participants feel like they'll have their mortgage paid off in time, more than 25 percent of retired respondents said they're still paying off a mortgage and over half of those had a balance of more than … [Read more...]

The challenge of finding an affordable entry-level home in today's housing market gets a lot of coverage. First-time buyers facing higher rent, difficulty saving for a down payment, and low inventory are an important demographic and their habits have implications for the overall health of the market. But, at the same time as the starter-home market has been hot, demand for luxury homes has also ramped up. In fact, new research shows sales of homes $1 million and higher are up 25 percent over last year – which … [Read more...]

If you've been paying attention to this year's housing market, you already know that there's been a high level of demand and a lower-than-normal number of homes for sale. That lack of balance has led to rising prices and more competition. But, despite the challenging conditions in many markets across the country, home buyer demand has not let up. Mostly, that's due to an improved economy and job market. Mike Fratantoni, the Mortgage Bankers Association's chief economist, recently told CNBC the job market is the … [Read more...]

There are two reasons home buyers typically have to pay more for a house on the water. The first is that people want to live on the water. It's a desirable location. Secondly, there are a limited number of houses with water access. And when you combine high demand and low supply, you usually have a recipe for higher prices. But new research shows that waterfront property isn't selling at as high a premium this year. In fact, waterfront homes in the first quarter sold for a 36 percent premium, which is the lowest … [Read more...]

When it comes to deciding whether or not it's a good time for you to buy a house, your personal finances are a big factor. After all, feeling secure in your job, income, and debts can make taking on a large financial transaction far less stressful. For that reason, Fannie Mae's most recent Home Purchase Sentiment Index may be encouraging news for the housing market. That's because, though confidence in most of the components – including whether this is a good time to buy or sell a home – was flat or down, those … [Read more...]

According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates were down last week for 30-year fixed-rate mortgages with conforming loan balances, loans backed by the Federal Housing Administration, and 15-year fixed rate loans. But despite falling rates, demand for mortgage applications remained flat, with refinance activity dropping 2 percent and purchase activity up just 1 percent from the week before. Michael Fratantoni, MBA's chief economist, told CNBC that, though a … [Read more...]

Perception doesn't always match reality but, when it comes to financial markets, that doesn't necessarily matter. For example, if you've ever invested in the stock market, you know that a company's stock can rise or fall based on the day's news, even if the company's fundamentals and outlook remain the same as the day before. In short, perception matters. And, in today's housing market, there's a perception that there are few affordable homes available to prospective buyers. In fact, according to a recent analysis … [Read more...]

Suburbs sprouted out of a desire to have the conveniences of urban life but also the space and privacy of living outside the city. In other words, the best of both worlds. And for decades, suburban areas, based on that promise, grew at a faster rate than the nation's cities. Americans spread out from city centers and moved further and further away. But, according to a new report from the Urban Land Institute, we may now be starting to move back. In fact, between 2010 and 2015, dense urban locations saw their … [Read more...]