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Larissa's Blog

By Larissa Brodsky | Broker in 60611
  • the price the buyers have to pay if they wait

    Posted Under: General Area in Chicago, Market Conditions in Chicago, Home Buying in Chicago  |  May 23, 2013 6:41 AM  |  210 views  |  1 comment
  • Barclays: Home Prices to Rise 10% This Year

    Posted Under: General Area, Market Conditions, Home Selling  |  April 25, 2013 12:40 PM  |  164 views  |  No comments
     
    Daily Real Estate News | Thursday, April 25, 2013

    Home prices will likely climb 10 percent in 2013 and 8 percent in 2014, according to Barclays analyst Stephen Kim, who recently upgraded his view of the housing market from neutral to positive.

    Kim told The Wall Street Journal recently that low mortgage rates are helping to make buying more affordable than renting in many markets.

    About “18 months ago, the industry was nothing much to look at: dilapidated foreclosures were flooding the market, home equity had suffered the worst retrenchment in a generation, and housing starts and sentiment were far below historic troughs levels,” Kim notes. “But after stabilizing in 2012, both new and existing home prices are now accelerating much more rapidly than in the 1990s cycle.”

    Source: “The Housing Market: Not Your Analyst’s Oldsmobile?” The Wall Street Journal (April 23, 2013)

  • Are Home Prices Rising Too Fast?

    Posted Under: General Area in Chicago, Market Conditions in Chicago, Home Buying in Chicago  |  April 15, 2013 10:41 AM  |  253 views  |  1 comment
    From National Association of Realtors
    Daily Real Estate News | Monday, April 15, 2013

    Some housing analysts are concerned that the sudden rise in home prices could make homes more unaffordable again if the price increases outpace income growth, The Wall Street Journal reports.

    Average housing costs for home buyers who took out a mortgage were around 22.5 percent of average incomes, according to John Burns Real Estate Consulting. That is down from 38.5 percent in 2006, the peak of the housing bubble. The historical average is about 33 percent.

    But with home prices rising in many markets and, in some, rising at a faster pace than income levels, will more people soon be priced out of the market?

    Housing analysts say that, for now at least, lower mortgage rates are offsetting the higher prices of homes.

    Borrowers have seen their purchasing power rise by around 33 percent over the past four years due to the low interest rates, The Wall Street Journal reports. For example, a borrower can make a $1,000 monthly mortgage payment and qualify for a $222,000 mortgage at today’s low interest rates, compared to 2008 when they’d likely qualify for $165,000 when mortgage rates were around 6.1 percent -- nearly double what they are today.

    Borrowers are able to withstand home-price increases because of the low rates, not because household incomes are growing, The Wall Street Journal reports. If mortgage rates tick back up to the 6 percent or 8 percent range, homes may look overpriced relative to incomes, according to housing analysts.

    Source: “Why Rising Interest Rates Could Eventually Curb Price Gains,” The Wall Street Journal (April 10, 2013)

  • The Housing Horizon

    Posted Under: General Area, Market Conditions, Home Buying  |  April 13, 2013 7:12 AM  |  205 views  |  No comments
    what is ahead in housing market?

    One thing is certain, says Jed Kolko, chief economist and head of analytics for real estate site Trulia.com: “The rebound is real.” After U.S. home prices hit rock bottom in the first quarter of 2012 (plummeting nearly 30 percent since early 2008), they rose over the next nine months, according to the Case-Shiller home price index. The National Association of Realtors recently reported that the median existing home price in February was $173,600, up 11.6 percent from a year ago. And fewer listings are languishing, which means buyers are making choices faster. The median time it took to sell a house in January was 108 days, down from 119 days in January 2012, per Realtor.com.
    “When any housing recession recovers, it goes like gangbusters,” says real estate mogul Barbara Corcoran. “But this is the fastest comeback I’ve seen.”

  • Illinois Foreclosure Activity decreases in first quarter of 2013

    Posted Under: General Area in Chicago, Market Conditions in Chicago, Home Selling in Chicago  |  April 11, 2013 4:59 PM  |  221 views  |  No comments

    From National Association of Realtors

    After four consecutive quarters of rising foreclosure activity, Illinois saw a 2 percent drop in activity in the first quarter of 2013 compared to the fourth quarter of 2012 and was 5 percent lower than a year ago, RealtyTrac reports.

    But Illinois’ foreclosure rate still remains one of the highest and the timeline to complete a foreclosure in Illinois, which is a judicial foreclosure state, can take an average of 720 days, RealtyTrac also reports.

  • 3 Financial Reasons to Buy a Home NOW! (Part I)

    Posted Under: General Area in Chicago, Market Conditions in Chicago, Home Buying in Chicago  |  April 11, 2013 4:39 PM  |  231 views  |  1 comment

    Part I – Prices Are Rising at an Accelerated Rate

    prices upThe price of a home is the major consideration when deciding whether or not it makes financial sense to purchase a house. Experts are not only projecting that house values will increase in 2013. They are also more optomistic in the level of appreciation they are projecting as the market begins to heat up. Here are some examples:

    The Home Price Expectation Survey

    The latest survey of a nationwide panel of 118 economists, real estate experts and investment and market strategists reveals they project home values to end 2013 up an average of 4.6% according to the first quarter. This is after they had projected a 3.1% increase just three months ago.

    Bank of America

    In a report titled, Someone Say House Party?, Bank of America analysts revised their projections upward:

    “Home prices continue to show momentum amid shrinking inventory and record high affordability, prompting us to revise up our original forecast of 4.7% for home prices this year. We now expect national home prices, as defined by the S&P Case Shiller home price index, to increase 8% this year.”

    Capital Economics

    According to a report in DSNews, Capital Economics also upgraded their prediction:

    “Strong demand and tight inventory have brought existing home sales back to ‘normal’ levels, and further gains are possible, according to the latest market report from Capital Economics. Additionally, market conditions may prompt lenders to “loosen the purse strings slightly” and lend a little more freely.

    These conditions, combined with broader economic indicators, lead Capital Economics to revise its previous forecast of a 5% price gain this year up to 8%.”

    Morgan Stanley

    In an article from HousingWire, Morgan Stanley joined the party:

    “Strong momentum in home prices as well as housing activity gave Morgan Stanley analysts enough confidence to upgrade their home price appreciation projections to roughly 7% (from 5%) for 2013, according to its latest global securitized credit report…

    “The momentum in most metrics of housing activity is running well ahead of the pace we had expected,” said James Egan, Jose Cambronero and Vishwanath Tirupattur, analysts for Morgan Stanley.”

    Not only are prices projected to appreciate. Experts are actually revising their projections upward as demand maintains its momentum.
    (KCM)

  • National Association of Realtors: House Sales in the U.S.

    Posted Under: General Area, Market Conditions, Home Selling  |  February 22, 2013 6:25 AM  |  167 views  |  No comments
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