Consumer Confidence in Housing Hot This Spring

Consumer Confidence in Housing Hot This Spring. Image courtesy of prozac1 / FreeDigitalPhotos.net

Consumer attitudes are reflecting greater optimism in the housing market heading into real estate’s traditionally strong spring selling season, according to Fannie Mae’s March 2014 National Housing Survey.

In the poll of 1,000 people, 38 percent say it’s a good time to sell a home, up from 26 percent a year ago. The poll also shows that 69 percent of those surveyed say it’s a good time to buy, and 52 percent say it’s easier today to get financing for a home.

Americans also feel more confident about their personal finances: An all-time survey high of 40 percent say their personal financial situation has improved during the past year.

“The housing recovery continues to proceed in fits and starts,” says Doug Duncan, Fannie Mae’s chief economist. “Rising mortgage rates and a lack of supply have dampened housing market momentum. However, we see several positive signs going into this year’s spring home-buying season, compared with last year. For example, consumers are less pessimistic about their personal finances and more optimistic about the current selling environment and their ability to get a mortgage. Still, those who are pessimistic about buying or selling a home today tend to point to economic conditions as the primary issue, and most consumers continue to say the economy is on the wrong track. Looking forward, we expect to see a pickup in economic growth later in the year, and this may boost the confidence of prospective buyers and sellers.”

However, consumers’ home-price expectations softened a bit in the latest survey. The average 12-month home-price-change expectation fell from last month, reaching 2.7 percent, the survey shows. Also, slightly fewer respondents — 48 percent — said they thought home prices would rise in the next 12 months.

Source: Fannie Mae

Cities in Search of More Storm-Proof Trees

Cities in Search of More Storm-Proof Trees. Image courtesy of papaija2008 / FreeDigitalPhotos.net

Following a winter filled with snow and ice storms, more city officials in the Midwest and Northeast are taking a closer look at the stability of their trees and whether some tough choices need to be made to possibly cut damage costs of future storms.

Ice layers on trees can make the weight of a limb 100 times more heavy, causing tree limbs and trunks to snap – a risk to life and property as they topple down. Losses from ice storms regularly exceed $225 million annually, and some researchers and city officials say communities and home owners may need to more carefully consider what trees decorate their landscapes.

Frank Telewski, a Michigan State biology professor and curator of Michigan State’s arboretum, is teaming up with experts in several states to study the types of trees that can withstand severe weather, such as ice storms.

“If we can do something to reduce the potential damage, it’s going to be a great service to the country – make us better prepared to survive these storms,” Telewski told the Associated Press. But communities may be faced with tough decisions on whether to uproot trees that have long been a part of their community in favor of less spectacular trees that could withstand a storm.

For example, following a 2007 ice storm in Norman, Okla., city officials are encouraging less fragile ornamental trees, such as the Bradford pear. They also are telling the community to be leery of the silver maple, a popular tree among housing developers due to its rapid growth but also a tree that has earned a reputation of snapping under pressure from ice.

Instead, the city is favoring lacebark elms, bald cypress, and other types of oaks since they tend to be drought-resistant and are better known to withstanding ice.

But some city officials aren’t as convinced that a tree can be storm-proof. For example, city forester Ed Casey in Springfield, Mass., says “you can have perfectly healthy trees that are structurally sound, have good strength capacity, and they can still be damaged.”

Telewski and his team believe their research will eventually show that tree species selection can make a difference, but Telewski says that pruning can also be key in helping any tree better face a storm.

Source: “Search for Sturdier Trees Could Save Communities Millions,” The Associated Press (April 5, 2014)

Mortgage Rates on the Rise Again This Week

Mortgage Rates Up again. Image courtesy of Stuart Miles / FreeDigitalPhotos.net

Mortgage rates ticked up slightly this week, as the 30-year fixed rate mortgage averaged 4.41 percent – more than a full percentage point higher than it was a year ago at this time, according to Freddie Mac’s Primary Mortgage Market Survey.

Freddie Mac reported the following national averages with mortgage rates for the week ending April 3:

• 30-year fixed-rate mortgages: averaged 4.41 percent, with an average 0.7 point, up slightly from last week’s 4.40 average. Last year at this time, 30-year rates averaged 3.54 percent.
• 15-year fixed-rate mortgages: averaged 3.47 percent, with an average 0.6 point, rising from last week’s 3.42 percent average. A year ago, 15-year rates averaged 2.74 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 3.12 percent, with an average 0.5 point, up from last week’s 3.10 average. Last year at this time, 5-year ARMs averaged 2.65 percent.
• 1-year ARMs: averaged 2.45 percent, with an average 0.4 point, rising from last week’s 2.44 percent average. A year ago, 1-year ARMs averaged 2.63 percent.

Source: Freddie Mac

More People Are Moving South

More People Are Moving South. Image courtesy of ddpavumba / FreeDigitalPhotos.net

The population is shifting to the South. Between 2010 and 2013, 51 percent of the population increase in 52 major metro nationwide was in the South, according to U.S. Census Bureau data.

In comparison, the West accounted for 30 percent of the increase, followed by the Northeast at 11 percent and the North Central (Midwest) area at 8 percent.

What’s more, the Census Bureau data shows that nearly 785,000 more people moved to major metro areas in the South than moved away. That’s far more than the 170,000 domestic migrants who moved to major metro areas in the West. On the other hand, the Northeast lost 485,000 net domestic migrants while the Midwest lost 280,000.

The largest growth in domestic migration was to Texas. The Census data showed the following metros as having the largest domestic migration growth between 2010 and 2013:

• Dallas-Fort Worth, Texas
• Houston
• Austin, Texas
• Phoenix
• Denver
• San Antonio, Texas
• Charlotte, N.C.
• Orlando, Fla.
• Seattle
• Tampa-St. Petersburgh, Fla.

As for population growth, the New York metro area retains its top position in the U.S. with 19,950,000 residents, according to Census data. Los Angeles (13,131,431) and Chicago (9,537,289) retain their second and third positions, but two Texas cities have crept into the top five. Dallas-Fort Worth (6,810,913) overtook Philadelphia (6,034,678) to become the fourth largest metro area, and Houston (6,313,158) ranks number five. The National Conference of Mayors forecasts strong growth for Dallas-Forth Worth and Houston over the next 30 years and predicts that the metro areas could pass Chicago by 2050 in population growth.

Source: “2013 Metropolitan Area Population Estimates,” NewGeography (April 2, 2014)

Survey Reveals 15 Happiest Cities

Survey Reveals 15 Happiest Cities. Image courtesy of imagerymajestic / FreeDigitalPhotos.net

Are you in a happy place? Healthways and Gallup wanted to find out the well-being of cities across the country.

The Gallup-Healthways Well-Being Index measures Americans’ perceptions of physical and emotional health, healthy behaviors, work environment, social and community factors, financial security, and access to necessities such as food, shelter, and healthcare. Gallup conducted 500 telephone interviews daily in 2013 with Americans nationwide to gather their perceptions of well-being.

In the “State of American Well-Being” report, the following cities came out on top for happiness:

1. Provo-Orem, Utah
2. Boulder, Colo.
3. Fort Collins-Loveland, Colo.
4. Honolulu, Hawaii
5. San Jose-Sunnyvale-Santa Clara, Calif.
6. Ann Arbor, Mich.
7. Naples-Marco Island, Fla.
8. San Luis Obispo-Paso Robles, Calif.
9. San Francisco-Oakland-Fremont, Calif.
10. Lincoln, Neb.
11. Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.Va.
12. Bellingham, Wash.
13. Minneapolis-St. Paul-Bloomington, Minn.-Wis.
14. Portland-South Portland-Biddeford, Maine
15. Billings, Mont.

Download the full report to see where your city and state ranks at the Healthways website.

Source: Healthways and “Could You Live in One of the Happiest Communities?” realtor.com (April 1, 2014)

Home Prices Likely to Moderate Soon

Home Prices Likely to Moderate Soon. Image courtesy of Stuart Miles / FreeDigitalPhotos.net

Home owners have been enjoying big home price rises across the country, but those increases – often by double-digit percentages – will likely level off soon, according to CoreLogic’s latest Home Price Index, which reflects February data. The index, which also includes distressed sales, was up 12.2 percent in February compared to year-ago levels. That marked the 24th consecutive month for annual home price increases, according to CoreLogic’s index.

“As the spring home-buying season kicks off, house price appreciation continues to be strong,” says Mark Fleming, CoreLogic’s chief economist. “Although prices should remain strong in the near term due to a short supply of homes on the market, price increases should moderate over the next year as home equity releases pent-up supply.”

The National Association of REALTORS®’ most recent existing-home sales report showed that the median existing-home price for all housing types was $189,000 in February, a 9.1 percent rise over February 2013. “Price gains have translated into an additional $4 trillion of housing wealth recovery over the past three years,” Lawrence Yun, NAR’s chief economist, said in a statement.

According to CoreLogic’s index, no state had posted negative annual appreciation in February. CoreLogic’s index, including distressed sales, shows the following five states posted the highest annual home price appreciation:

• California: +19.8%
• Nevada: +18.5%
• Georgia: +14.2%
• Oregon: +13.8%
• Michigan: +13.5%

Source: CoreLogic and “Home Prices Will Keep Rising, But Level-Off Soon,” Mortgage News Daily (April 1, 2014)

Property Taxes at a 20-Year High

Property Taxes at a 20-Year High. Image courtesy of BimXD / FreeDigitalPhotos.net

Property taxes continue to increase, as the amount collected by state and local governments in 2013 reached the highest level in about two decades, according to U.S. Census Bureau data.

About $488 billion in property taxes were collected last year, a 3 percent increase from 2012 and a 270 percent increase from 1992, the first year for which data is available.

Property-tax collection totals have risen every year since 1992 except for 2010, when it fell by $5 million.

Property taxes remain the largest source of revenue for state and local governments, according to the Census Bureau.

“Although house prices experienced healthy increases over the last two years, one should not expect property tax collections to increase significantly,” according to the National Association of Home Builders. “Instead, lagging assessments and the ability of local jurisdiction to make annual adjustments should lead to only modest increases.”

Source: “Property Taxes Account for 40% of State and Local Revenue Among Major Sources,” National Association of Home Builder’s Eye on Housing Blog (March 26, 2014) and “Property Taxes Hit Highest Level in 20 Years,” HousingWire (March 26, 2014)