Redefy housing news 1.9.17
Happy New Year! This week in housing news you can use, the ARM makes a comeback, the market looks up, gaps challenge affordable housing and moving furniture makes small spaces bigger.
5 trends shaping 2017’s housing market
Despite rate hikes, housing market looking up
Although rates are expected to top out at 4.5 to 5 percent by the end of 2017, The Hill reports that the impact could be minimal. Thanks to a stronger economy (7 million more jobs since 2013 and wage growth), the housing market isn’t expected to slow down.
Cost and wage gaps continue to challenge affordable housing
Curbed reports that the gap between wages and starter home prices in the U.S. continues to grow, making affordable housing a concern in 2017. This is based on a study by Attom Data Solutions, which tracked 447 U.S. Counties “on the percentage of average wages needed to make monthly house payments on a median-priced home with a 30-year fixed rate and a 3 percent down payment — including property taxes and insurance.”
The ARM makes a comeback
Once blamed for risky mortgages that led to the 2008 crash, the Adjustable Rate Mortgage (ARM) is making a comeback. Rising rates that may price out some home buyers have created appeal for these loans. Revamped with better standards and principal included with interest payments, new ARM loans include options like 10 years fixed.
“I think you’re going to see more programs focusing on ARMs,” says Joe Tyrrell, executive vice president of corporate strategy at Ellie Mae. “I think you’ll see more flexibility in the terms.” — Realtor Magazine
Existing home sales back to 2007 levels
The boom is back. Existing home sales increased by 0.7% at a seasonally adjusted annual rate of 5.61 million, according to the National Association of REALTORS©, passing the pre-crash numbers of 2007. Rather than something to be feared, Forbes says it’s a good thing. Don’t expect a major boom-and-bust in house prices, rather a boom in new home construction to bolster the growing economy.
The US is indeed likely to have something of a housing boom in the near future. But not, thankfully, a boom in prices as we had that decade ago. — Tim Worstall, Forbes
Please move the furniture
Ori Systems’ movable furniture, designed by MIT and Yves Béhar, expands spaces in use to make a micro apartment so much more comfortable. Might be a nice add-on for a tiny house as well!
Source: Business Insider
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