Redefy Housing News 11-14-2016
This week in housing news you can use, most US housing is still called affordable, new loans don’t need appraisers, home price opinions unify, young buyers capture the market, and the White House gets a price tag.
Homeowners’ opinions closer to appraisers’
The Quicken Loans Home Price Perception Index (HPPI) tracks the difference between appraisers’ and homeowners’ opinions of current home values. The index released Nov. 8 showed the average appraisal was just 1.15 percent lower than what the homeowner estimated.
Despite rising prices, housing considered affordable
More than 60 percent of homes (new and existing) sold in the third quarter of 2016 were considered affordable to families earning the national median income of $65,700, according to the latest Home Opportunity Index (HOI) by The National Association of Home Builders (NAHB)/Wells Fargo. Nationally, the median home price grew to $247,000 in the third quarter.
“Historically-low interest rates and firming job growth are positive indicators that housing markets across the nation will continue to gradually improve,” says NAHB Chairman Ed Brady. “Home prices, however, continue to be affected by the rising costs of construction, both in terms of land and labor.”
The most affordable US markets were Elgin, IL; Youngstown-Warren-Boardman (OH/PA); Scranton-Willkes Barre-Hazelton, PA; Indianapolis-Carmel-Anderson, IN; and Syracuse, NY.
Source: RIS Media
Demographics of buyers and sellers change
According to the latest Consumer Housing Trends Report by Zillow, half of all home buyers are younger than 36. The mostly-Millennial group has taken a practical view of owning a home. Known for saving money, they’ve come to the point where it’s just a better use of their money to own than rent.
The largest demographic of sellers belongs to Generation X (35-49) at 36 percent. The majority of sellers (63 percent) are actually first-time sellers, with a median age of 36. The median age of repeat sellers is 60.
New home loan ditches appraisers
Lending giant Freddie Mac is planning a new mortgage process that won’t include appraisals. The controversial new loan would replace the role of appraisers with a new alternative data-based evaluation system (free for lenders and borrowers), according to the Chicago Tribune. Freddie Mac hopes to introduce the new mortgage as early as next spring.
How much is the White House worth?
Since there’s soon to be a new “homeowner,” you might wonder what the White House would be worth if someone were actually to buy it. CNBC took a playful look at valuating the property with three luxury listing agents. What do you think its worth?
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