05-10-2019

UP AGAIN

Home prices were up 3.7% year-over-year in March according to the latest CoreLogic Home Price Insights (HPI). Prices were up 1% month-over-month between February and March, but the HPI forecast predicts a significant escalation in the coming year, indicating that home prices will increase by 4.8% on a year-over-year basis from March 2019 to March 2020.

LAGGING LUXURY

Prices for homes priced in the top 5% of the market declined for the first time in three years, as inventory in the luxury category rose by 14% according to Seattle-based real estate firm Redfin. Redfin Chief Economist Daryl Fairweather characterized the inventory increase and 1.6% price drop by saying, “Because homeowners can’t deduct as much mortgage interest as they used to be able to, the calculus has changed when it comes to buying a home, especially an expensive one.”

DOWNWARD DIVERSION

After over thirty days of upward trends, rates for the 30-year fixed rate mortgage have retreated according to Freddie Mac’s Primary Mortgage Market Survey for the week ending May 2. Freddie analysts dubbed this good news for the housing market, saying, “Moving into summer, we expect rates to be about a quarter to half a percentage point lower than where they were last year.”

HOT SUMMER DAYS?

Home sellers make the most money in the summer according to an ATTOM Data Solutions analysis that reviewed 28.3-million sales over an eight-year period. The study identified five days on which sellers earned the highest amount above median market value. From highest to lowest, ATTOM’s report cited June 28 as “summer’s hottest selling day,” with May 31, June 21, June 20 and May 24 following in order. Homeowners who sold on June 28 averaged 10.8% “premium” price above market.

*The views, articles, postings and other information listed on this website are personal and do not necessarily represent the opinion or the position of American Pacific Mortgage Corporation.

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