Case-Shiller Indices Up 13.7% Year-on-Year

Even with everything that’s going on in the housing market positive signs still abound! The market was up almost 14% nationally last year! More signs that the market has healed and expect it to pick back up again this spring!

Case-Shiller Indices Up 13.7% Year-on-Year

Author: Tory Barringer January 28, 2014 0

Case-Shiller Indices Up 13.7% Year-on-Year

Despite experiencing a slight downturn—the first monthly decline in a year—home prices still turned in a strong performance in November, according to the S&P/Case-Shiller Home Price Indices released Tuesday.

On a monthly basis, both the 10- and 20-city composite indices saw a 0.1 percent decrease in November, marking the first decline since November 2012 and the breaking a nine-month streak of increases.

Nine of the 20 cities tracked in the indices posted positive monthly changes, while another nine reported declines. Two—Minneapolis and San Diego—were flat for the month.

Dallas, which saw a drop in prices in October, recovered to set a new index high, S&P Dow Jones Indices reported. Denver, which was climbing to new records only a few months ago, ended November 0.6 percent off its peak.

Even with national prices down month-over-month, “November was a good month for home prices,” said David M. Blitzer, chairman of the Index Committee at S&P Dow Jones Indices.

“Despite the slight decline, the 10-City and 20-City Composites showed their best November performance since 2005,” Blitzer said. “Prices typically weaken as we move closer to the winter. Las Vegas, Los Angeles and Phoenix stand out as they have posted 20 or more consecutive monthly gains.”

On a yearly basis, the 10- and 20-city composites were up 13.8 percent and 13.7 percent, respectively. The increases fell in line with the consensus forecast as reported by Bloomberg.

Again, Dallas outperformed with an annual return of 9.9 percent—the highest since its inception in 2000. Also standing out was Chicago, which posted an increase of 11.0 percent, its highest since 1988.

As of November, average home prices nationwide were back to mid-2004 levels, according to the index report. The peak-to-current decline for both composite indices remained at about 20 percent, while the trough-to-current recovery was about 23.0 percent for the 10-city and 23.7 percent for the 20-city composites.

The Case-Shiller release followed Black Knight Financial Services’ (formerly LPS) monthly Home Price Index report, which showed prices rising 0.3 percent month-over-month and 8.5 percent year-over-year in November.

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Don’t Wait! Move Up to the Home You Always Wanted

Once again another great graphic showing the importance that interest rates play when you buy a home! As interest rates start to rise your purchasing power diminishes! Can you afford to wait or will you get caught when rates start to go up? Be proactive and avoid getting caught!

by  on January 28, 2014 in For Sellers

Now that the housing market has stabilized, more and more homeowners are considering moving up to the home they have always dreamed of. Prices are still below those of a few years ago and interest rates are still below 5%.

However, sellers should realize that waiting to make the move while mortgage rates are increasing probably doesn’t make sense. As rates increase, the price of the house you can buy will decrease. Here is a chart detailing this point:

1.28 Blog Visual

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3 Questions to Ask Before Buying a Home

If you are in the process of buying a home or thinking of buying a home here is a great article for you! Enjoy!

by  on January 20, 2014 in For Buyers

 

1.20 Visual

If you are thinking about purchasing a home right now, you are surely getting a lot of advice. Though your friends and family have your best interests at heart, they may not be fully aware of your needs and what is currently happening in real estate. Let’s look at whether or not now is actually a good time for you to buy a home.

There are three questions you should ask before purchasing in today’s market:

1. Why am I buying a home in the first place?

This truly is the most important question to answer. Forget the finances for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with finances. A study by the Joint Center for Housing Studies at Harvard University reveals that the four major reasons people buy a home have nothing to do with money:

  • A good place to raise children and for them to get a good education
  • A place where you and your family feel safe
  • More space for you and your family
  • Control of the space

What non-financial benefits will you and your family derive from owning a home? The answer to that question should be the biggest reason you decide to purchase or not.

2. Where are home values headed?

When looking at future housing values, we like the Home Price Expectation Survey. Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts and investment & market strategists about where prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.

Here is what the experts projected in the latest survey:

  • Home values will appreciate by 4.3% in 2014.
  • The cumulative appreciation will be 28% by 2018.
  • Even the experts making up the most bearish quartile of the survey still are projecting a cumulative appreciation of over 16.8% by 2018.

3. Where are mortgage interest rates headed?

A buyer must be concerned about more than just prices. The ‘long term cost’ of a home can be dramatically impacted by an increase in mortgage rates.

The Mortgage Bankers Association (MBA), the National Association of RealtorsFannie Mae and Freddie Mac have all projected that mortgage interest rates will increase by approximately one full percentage over the next twelve months.

Bottom Line

Only you and your family can know for certain the right time to purchase a home. Answering these questions will help you make that decision.

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The Impact of Increasing Mortgage Rates on Prices

A great graphic showing the correlation between interest rates and property values! It might surprise you!

By  on January 14, 2014 in Interest Rates

 

blue interest rates

Many pundits are warning that there will be a drop in real estate values because mortgage rates are beginning to increase. The logic makes sense. However, history shows that increasing rates have not negatively impacted home values in the past.

Four times over the last 30 years mortgage interest rates have dramatically increased. Here is the impact the increases had on home values at the time:

Dates

Mortgage Rate

Home Values

May ‘83 – July ‘84

12.63 – 14.67

+ 6.6%

March – Oct ‘87

9.04 – 11.26

+ 5.2%

Oct ’93 – Dec ‘94

6.83 – 9.2

+ 1.2%

April ’99 -May 2000

6.92 – 8.52

+ 10.9%

Perhaps the impact of increasing rates on future home prices won’t be as dramatic as some are predicting.

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‘Boomerang’ Buyers Flying Back

We were able to help several families purchase a ew home again last year! Let us help you this year!

Boomerang Buyers InfoGraphic

 

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Online Mortgage Quote Forms – Beware Before Hitting The Submit Button

Great article from Jeremy! Go online and all of a sudden your inbox fills ups and your phone never stops ringing! Another testimonial why to work with a local expert who knows the market and can best service your needs! 

January 21, 2014

Mortgage PreApprovalFilling out an online mortgage quote form can end up being one of the biggest mistakes you make during the home buying or refinancing process.

If you need proof that filling out an online mortgage quote form with companies such as LendingTree, you need not look much further than the comments left for them on their Facebook page.

“*Up* to 5 offers? Try incessant phone calls for 3 days and counting. I’m up to 21 people calling me at this point. An email to your support team asking it to stop has been completely ignored and your “online chat” tells me no one is available during its clearly stated hours of support,” comment by Dawn Theirl.

“NEVER USE THIS SERVICE!!! I don’t have time for all the phone calls and they refuse to stop, pushing 20 calls in 30 minutes!!!! If I wanted to talk in person I would have answered or gone to my local bank. I was expecting an email response,” comment by Tonya Groves.

“PLEASE PLEASE PLEASE make the phone calls stop!!!!” comment by Claire Marie Cosmos.

How To Correctly Shop For A Mortgage

Although shopping around for the best mortgage is the most important thing you should do, contacting local mortgage lenders directly is going to be your best bet.

With the advancement in technology and heightened public awareness, a simple Google, Bing or Yahoo search can easily help you find a reputable and local mortgage lender that is not going to harass you day in and day out.

In my experiences over the years, the mortgage companies who spend thousands of dollars buying leads from companies like LendingTree put extra pressure on their loan officer to contact their leads at a minimum of 3 times a day.

However, a mortgage lender who spends their time and money on marketing the educates consumers are more likely to have a discussion with you and answer any questions you may have rather than try to sell you on a loan that may not be in your best interest.

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Look at the difference 1 year has made! As the market continues to improve prices will climb and interest rates are expected to follow!

Look at the difference 1 year has made! As the market continues to improve prices will climb and interest rates are expected to follow!

Cost of Waiting

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