All the Real Estate News That’s Fit to RE-Print™
Welcome to our weekly edition of Real Estate Investing News This Week. Highlights this week include:
- National Home Price Index Pace Eases
- From Corelogic: The 2015 Housing Outlook
- Existing-Home Sales Lose Momentum
- 3% Down Payment for First-Time Homebuyers
National Home Price Index Pace Eases
Eight Cities Show Faster Gains
The S&P/Case-Shiller Home Price Indices released on Tuesday for October 2014, shows that the pace of home prices across the country continues to decelerate, although eight cities did see prices rise faster.
Both the 10-City and 20-City Composites saw year-over-year declines in October compared to September. The S&P/Case-Shiller U.S. National Home Price Index, which covers all nine U.S. census divisions, recorded a 4.6% annual gain in October 2014 versus 4.8% in September.
Miami and San Francisco saw prices rise 9.5% and 9.1% over the last 12 months.
From Corelogic: The 2015 Housing Outlook
Economic Fundamentals Finally Back in the Driver’s Seat
- The U.S. economy is picking up steam, as strong employment growth is exhibited within the first-time homebuyer age group.
- Home sales will increase by 9 percent in 2015, housing starts are expected to grow 14 percent and home price growth is expected to moderate.
- Markets with the highest home price appreciation reflect fundamental strengths of their economies, particularly technology and energy. However, the drop in oil prices may alter the equation.
- The lower-end home price category is growing faster than the higher-end price category in the top 25 U.S. markets, reflecting tight supply and lack of new construction.
Existing-Home Sales Lose Momentum in November
After hitting their highest level of the year, existing-home sales slid in November as housing supply showed some tightening, according to the National Association of Realtors®.
Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, fell 6.1 percent to a seasonally adjusted annual rate of 4.93 million in November. Sales dropped to their lowest annual pace since May (4.91 million) but are up 2.1 percent from last November.
Fannie Mae/Freddie Mac: 3% Down Payment for First-Time Homebuyers
By Brian Honea
“Following months of talk and speculation, both Fannie Mae and Freddie Mac announced on Monday they will begin allowing qualifying first-time borrowers to purchase homes with just a 3 percent down payment.”
“By lowering the down payment down to 3 percent, leaders from the GSEs and the Federal Housing Finance Administration (FHFA) hope to increase homeownership and particularly household formation by offering loans to those who can afford mortgages but lack resources to make a 20 percent down payment plus closing costs.”
“Those who have pushed for the lower down payment, such as FHFA Director Mel Watt, have endured criticism from lenders due to the perceived risk involved with making a mortgage loan such a high maximum loan-to-value ratio.”