Lower-Priced Homes hit the hardest by economy crisis and housing derivatives
Prices range widely in major markets. Atlanta's low-tier homes are under $122,533, and the high tier starts above $221,679, according to S&P's latest definition based on March data. For San Francisco, S&P's ranges are under $312,546 and over $573,577.
In San Francisco, for instance, low-end homes almost tripled in price before peaking, while high-end homes didn't even double before they peaked, the data show. Before the housing crash, lenders made loans more available to lower-income households, which stoked demand and prices for the less-expensive homes.
Clear Capital, a valuation and analytics firm in Truckee, Calif., analyzed the market in terms of “tiers.” Clear Capital has found that not all those layers fell by the same amount. The average mid-tier house fell in value by 41%, while homes in the low tier fell 46.3%. Homes in the top tier, though, have lost only 26.8% of their value since the crash.
A year after the April 30, 2010, expiration of the federal tax-credit program to stimulate buying, the market in New Jersey is showing widespread weakness in even the most affordable price ranges.
According to a new report by the Otteau Valuation Group, which analyzes multiple listing statistics, the supply of unsold inventory with asking prices under $400,000 was 26 percent greater than at this time last year.
Prices range widely in major markets. Atlanta's low-tier homes are under $122,533, and the high tier starts above $221,679, according to S&P's latest definition based on March data. For San Francisco, S&P's ranges are under $312,546 and over $573,577.
Clear Capital, a valuation and analytics firm in Truckee, Calif., analyzed the market in terms of “tiers.” Clear Capital has found that not all those layers fell by the same amount. The average mid-tier house fell in value by 41%, while homes in the low tier fell 46.3%. Homes in the top tier, though, have lost only 26.8% of their value since the crash.
A year after the April 30, 2010, expiration of the federal tax-credit program to stimulate buying, the market in New Jersey is showing widespread weakness in even the most affordable price ranges.
According to a new report by the Otteau Valuation Group, which analyzes multiple listing statistics, the supply of unsold inventory with asking prices under $400,000 was 26 percent greater than at this time last year.
In absolute terms, the wait for sellers of homes under $400,000 has done nothing but increase. As for homes priced from $400,000 to $600,000, the supply of unsold inventory was 17 percent greater than at this time last year. The picture is virtually unchanged for homes priced from $600,000 to $1 million
High-end homes in some places face price pressure, when Fannie Mae and Freddie Mac lower the size of loans they buy from lenders. Their purchases help finance mortgages by providing a market for lenders to sell the loans they make, instead of holding them. The limits on Fannie and Freddie loan purchases were raised in late 2008 amid the financial crisis to stimulate mortgage lending in high-cost markets.
Low-income areas have also been hit harder by foreclosures, which can pull down prices. The average rate last year for completed foreclosures in low-income neighborhoods was more than twice that of high-income neighborhoods, the Joint Center for Housing Studies estimates.
For example, the median sales price in October for a home in Fernley was $82,100, down 17 percent from the same month in 2010. In Dayton, newly constructed homes are selling for under the $100,000 threshold. “Now is definitely a good time to buy — there are plenty of homes on the market, and so many are great for first-time homebuyers. There are a lot of new builds in Dayton, and with interest rates the way they are it is good time to buy.”
If your payment was $863 a month with everything included, and the same floor plan three doors down was renting for $1,200. Why wouldn’t you buy? When you can purchase for less than you can rent for, it is an amazing time.
Sources:
Moneyland
USATODAY
homebuying
nytimes.com
property24
NNBW.com
jchs.harvard
Otteau
High-end homes in some places face price pressure, when Fannie Mae and Freddie Mac lower the size of loans they buy from lenders. Their purchases help finance mortgages by providing a market for lenders to sell the loans they make, instead of holding them. The limits on Fannie and Freddie loan purchases were raised in late 2008 amid the financial crisis to stimulate mortgage lending in high-cost markets.
Low-income areas have also been hit harder by foreclosures, which can pull down prices. The average rate last year for completed foreclosures in low-income neighborhoods was more than twice that of high-income neighborhoods, the Joint Center for Housing Studies estimates.
For example, the median sales price in October for a home in Fernley was $82,100, down 17 percent from the same month in 2010. In Dayton, newly constructed homes are selling for under the $100,000 threshold. “Now is definitely a good time to buy — there are plenty of homes on the market, and so many are great for first-time homebuyers. There are a lot of new builds in Dayton, and with interest rates the way they are it is good time to buy.”
If your payment was $863 a month with everything included, and the same floor plan three doors down was renting for $1,200. Why wouldn’t you buy? When you can purchase for less than you can rent for, it is an amazing time.
Sources:
Moneyland
USATODAY
homebuying
nytimes.com
property24
NNBW.com
jchs.harvard
Otteau
No comments:
Post a Comment