Nearly 80% of Housing Markets Are Stabilizing

Thirty-eight of the 50 states, plus the District of Columbia, are now showing an improving three-month trend in housing activity, according to Freddie Mac’s latest Multi-Indicator Market Index. What’s more, 40 of the 50 major metros Freddie Mac tracks are also showing a three-month improving trend.

Yet, Freddie Mac’s national MiMi value stands at 74.9, which still indicates a weak housing market overall. The all-time MiMi high was 121.7, recorded in April 2006; its lowest point was 57.2 in October 2010, when the housing market was at its weakest point. Since its low in 2010, the housing market has rebounded 31 percent.

Freddie Mac’s MiMi index monitors the stability of the nation's housing market by assessing each single-family housing market relative to its long-term stable range. It takes into account such data as home purchase applications, payment-to-income ratios, on-time mortgage payments, and the employment market.

Overall, "housing markets are getting back on track,” says Len Kiefer, Freddie Mac’s deputy chief economist. “The national MiMi improved for the fourth consecutive month. Nearly 80 percent of the state and metro housing markets MiMi tracks are improving or in their stable range of activity. … Low mortgage rates and moderating house price growth are helping to keep payment-to-income ratios favorable for the typical family in most of the country. In fact, Los Angeles is the only metro market with an elevated MiMi payment-to-income indicator whereas most other markets remain quite affordable. And of course, labor markets are generally improving.”

The most improving states on a year-over-year basis, according to the index, were:

• Nevada
• Colorado
• Rhode Island
• Illinois
• Ohio

Meanwhile, the most improving metros year-over-year were:

• Las Vegas
• Denver
• Chicago
• Providence, R.I.
• Columbus, Ohio

Source: “U.S. Housing Stability Improves for Fourth Consecutive Month,” Freddie Mac (Feb. 25, 2015)

 

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Sign of Homebuying Rebound Soon

After several recent drops, mortgage applications reversed course last week, with those for home purchases jumping 5 percent on a seasonally adjusted basis, according to the Mortgage Bankers Association's latest report. The rise, which reflects data from the week ending Feb. 20, also came despite higher mortgage interest rates, MBA notes. (The survey includes adjustments for the President's Day holiday.) Nevertheless, purchase applications still remain 2 percent lower than the same week a year ago.

Meanwhile, applications for refinancings continued to fall last week, dropping 8 percent to its lowest level this year. The drop prompted MBA's overall mortgage application index, which reflects both applications for home purchases and refinancings, to fall 3.5 percent for the week.

"The one exception to this trend was VA refinance volume, which increased 27 percent last week as certain lenders refocused on VA production," says Mike Fratantoni, MBA's chief economist. "The VA share of total applications increased to 9.6 percent from 8 percent the week prior as a result."

The 30-year fixed-rate mortgage averaged 3.99 percent last week, up from 3.93 percent the previous week, MBA reported.

Source: “Mortgage Applications Point to More Buyers,” CNBC (Feb. 25, 2015)

 

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What you need to earn to afford a home in these 27 cities

Slumping home prices and lower interest rates helped drive home ownership costs lower in all but one of the country's 27 largest cities last quarter, according to a ranking by HSH.com.

 

That's good news considering that home prices have outpaced incomes for several years now, making it increasingly difficult for people to earn enough to afford owning a median-priced home, said Keith Gumbinger, vice president of HSH.com.

 

Of course, where you live also makes a huge difference. In Pittsburgh, you can earn just under $32,000 a year and be able to afford a median-priced home, while in San Francisco you need to make more than four times that amount, HSH.com found.

 

     Rank        City            Median home price           Monthly payment          Salary ▲

                        

1.       Pittsburgh         $135,000                        $740                               $31,716
2.       Cleveland         $121,200                        $747                               $32,010
3.       St. Louis           $138,400                        $778                               $33,323
4.       Cincinnati         $138,100                        $781                               $33,485
5.       Detroit              $135,800                        $829                               $35,521
6.       Atlanta             $157,700                         $835                               $35,800
7.       Tampa              $160,000                        $880                               $37,732
8.       Phoenix            $200,300                        $949                               $40,658
9.       Orlando            $180,000                        $983                               $42,143
10.       San Antonio     $185,500                        $1,059                            $45,374
11.       Minneapolis     $210,000                        $1,111                            $47,627
12.       Dallas               $189,600                        $1,138                            $48,787
13.       Houston            $199,300                        $1,166                            $49,983
14.       Philadelphia      $216,300                        $1,188                           $50,914
15.       Baltimore          $233,200                        $1,229                           $52,662
16.       Chicago             $195,100                        $1,268                           $54,347
17.       Sacramento        $268,700                        $1,363                          $58,412
18.       Miami                $265,000                        $1,363                          $58,431
19.       Portland             $288,900                        $1,414                          $60,604
20.       Denver               $314,800                        $1,438                          $61,642
21.       Seattle                $352,000                        $1,706                          $72,844
22.       Washington        $372,800                        $1,806                          $77,395
23.       Boston                $383,200                        $1,868                          $80,050
24.       New York           $390,000                        $2,043                          $87,536
25.       Los Angeles       $450,900                        $2,092                           $89,665
26.       San Diego          $493,100                        $2,227                            $95,433
27.       San Francisco    $742,900                        $3,324                            $142,448  

 

 Notes: HSH.com calculated the annual before-tax earnings needed to cover the cost of a median-priced home in 27 major metro areas. It assumed that the buyer has good or excellent credit, makes a 20% down payment and puts no more than 28% of their gross income goes into housing costs. Median home prices were based on the National Association of Realtors 2014 fourth quarter data. Property tax information was derived from metropolitan-area data from the Tax Foundation, while homeowner insurance costs were determined using statewide data from the Insurance Information Institute. Two cities used pricing data from other groups instead of NAR (Pittsburgh – RealSTATs; Detroit – Realcomp).

 

Source: HSH.comBy: Mark Fahey and Tal Yellin / CNNMoney

 

 

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Builders Target Single, Female Baby Boomers

Single, female Baby Boomers are emerging as a powerful demographic and homebuilders are taking notice.

“They have diverse needs, and it is incumbent on us to develop communities that offer an overall experience that reflects all that they want out of life,” says Ryan Marshall, executive vice president of homebuilding operations for the PulteGroup.

A new survey of more than 1,000 single, female adults ages 50 to 68 by DelWebb, a national brand of homebuilder PulteGroup Inc., finds that single, female Baby Boomers are incredibly confident – and happy. In fact, 74 percent of the Baby Boomer women surveyed say they are as happy – or happier – than they were at age 35.

Some of that confidence stems from the fact that 54 percent of single, female Boomers say they are active – or more active – than they were at age 35. Eighty-one percent of those surveyed rank being physically healthy as “very important” and 68 percent rank a healthy lifestyle as one of their top priorities, after time with family and friends.

Builders are taking note of the activities that Boomers say they like and trying to weave them into future developments. For example, the most popular exercising activities cited in the survey by single, female boomers were weight training, hiking, yoga, biking, and swimming.

Source: PulteGroup Inc.

 

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'Vanilla Ice' Arrested in Foreclosure Theft

Robert Van Winkle, the former rapper known as “Vanilla Ice” who now renovates homes for the DIY Network, faces charges of burglary and grand theft of a Florida property that was in the process of foreclosure. He calls the charges a misunderstanding.

Lantana Police told reporters Wednesday that the charges stem from a burglary that occurred sometime between December 2014 and February 2015 on a $1 million home. Police say several furniture items, a pool heater, bicycles, and other items were taken from the home. Van Winkle was renovating the residence next to the property. The missing items were found at a residence that was under Van Winkle’s control, police say.

"It's a misunderstanding, it was blown out of proportion. It's sad that good news doesn't travel this fast," Van Winkle told reporters as he left the Palm Beach County Jail, shortly after being released on a $6,000 bond Wednesday. "It's just out of proportion and I wish you guys would focus on all the good things I've done. It'll all get cleared up, you'll see."

Van Winkle, well-known rapper in the 1990s, is now the host of the DIY Network’s “The Vanilla Ice Project,” where he renovates homes.

The real estate broker Jim Lovely of the home told reporters he’s not angry, but “whoever it is, why would you jeopardize going to jail for basically junk? It was just worthless furniture and some items so it doesn't make much sense. The house wasn't full of Picassos, so it wasn't a high-dollar heist, so it's just the principal of having to secure the place two and three times.”

The stolen property has since been returned to the family.

Source: “Robert Van Winkle, A.K.A. Vanilla Ice, Arrested in Residential Burglary: Police,” NBC-6 South Florida (Feb. 19, 2015) and “Rap Star Vanilla Ice: Burglary Arrest ‘Blown Out of Proportion,’” CNN (Feb. 19, 2015)

 

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Both Home Prices and Affordability on the Rise

The spring market will likely be a hotter one this year, as low interest rates and a healthier economy lure more home buyers to the marketplace.

“Interest rates below 4 percent, rising rents, and healthier local job markets are convincing more consumers to consider home ownership,” Chris Polychron, National Association of REALTORS® president, said in a recent news release showing fourth-quarter 2014 home prices moving up.

An increase in the national family median income (to $65,782) mixed with low interest rates slightly improved affordability in the fourth quarter compared to the previous quarter, NAR reports. Affordability improved despite the national median single-family home price moving up to $208,700 in the fourth quarter, an increase of 6 percent year-over-year.

“Low interest rates helped preserve affordability last quarter, but it’ll take stronger income gains and more housing supply to help meet the pent-up demand for buying,” says Lawrence Yun, NAR’s chief economist.

To purchase a single-family home at the national median price, a buyer making a 5 percent down payment would need an income of $45,863. A 10 percent down payment would require an income of $43,449, and $38,621 would be needed for a 20 percent down payment.

The following were the five lowest-cost housing markets in the fourth quarter:

1. Youngstown-Warren-Boardman, Ohio: $78,000
2. Rockford, Ill.: $86,800
3. Toledo, Ohio: $87,100
4. Decatur, Ill.: $90,400
5. Cumberland, Md.: $90,500

Source: National Association of REALTORS®

 

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Mortgage Rates Remain Near 2013 Lows

Average fixed-rate mortgages are holding near historical lows, but did inch higher this week amid a stronger employment report, Freddie Mac reports in its weekly mortgage market survey.

The economy added 257,000 new jobs in January, following additional increases in December (329,000) and November (423,000).

Despite this week’s uptick in rates, fixed-rate mortgages remain near lows from May 23, 2013, Freddie Mac reports.

Freddie Mac reports the following national averages with mortgage rates for the week ending Feb. 12:

30-year fixed-rate mortgages: averaged 3.69 percent, with an average 0.6 point up from last week’s 3.59 percent average. A year ago, 30-year rates averaged 4.28 percent.

15-year fixed-rate mortgages: averaged 2.99 percent, with an average 0.6 point, rising from last week’s 2.92 percent average. Last year at this time, 15-year rates averaged 3.33 percent.

5-year hybrid adjustable-rate mortgages: averaged 2.97 percent, with an average 0.5 point, up from last week’s 2.82 percent average. A year ago, 5-year ARMs averaged 3.05 percent.

1-year ARMs: averaged 2.42 percent, with an average 0.4 point, also up from last week’s 2.39 percent average. Last year at this time, 1-year ARMs averaged 2.55 percent.

Source: Freddie Mac

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Your Community Life in Cypress Creek Lakes

 

Cypress Creek Lakes is located in the heart of the Highway 290 corridor and only 24 miles from Downtown Houston. The community is located off Fry Road providing easy access to the new Grand Parkway, I-10 and Highway 290. Visit the Welcome Center in Cypress Creek Lakes to learn more about this amazing new home community.

Local Area Amenities

Other area amenities just minutes away include: local shopping (Kroger, Target, Randalls, HEB, the Houston Premium Outlets mall), restaurants (Chick-fil-A, On the Border, Buffalo Wild Wings, Sonic, Alicia's Mexican Restaurant, Chili's, Luby's, Spring Creek Barbeque). Area medical services include RediClinic, which is located in the HEB at Barker Cypress, the Cypress Medical Center at US-290 at Barker Cypress, Methodist Hospital at Willowbrook Mall and The New Kelsey Seybold Campus at The Vintage which is located at US-249 and Chasewood Park.

BlackHorse Golf Club

Golf enthusiasts enjoy the adjoining Blackhorse Golf Club featuring two 18-hole championship courses, an impeccably maintained practice range and short game and putting area.  Named the “Ultimate Public Course” by the Houston Chronicle, the golf course was designed by PGA Tour Professional Peter Jacobsen and golf course designer Jim Hardy.

The BlackHorse Teaching Center offers instruction for all levels from junior to touring pros in addition to corporate programs. BlackHorse also features a clubhouse, pavilion, restaurant, bar, and pro shop.

For more information on the BlackHorse Golf Club including special events, activities, classes, and to schedule a tee time, visit www.blackhorsegolfclub.com.

Home Owners Association

Cypress Creek Lakes is dedicated to maintaining a vibrant community for each resident to enjoy. Crest Management, a leading management company within residential real estate development, services the Cypress Creek Lakes Homeowner’s Association.

Residents of Cypress Creek Lakes benefit from a low MUD tax rate and reasonable HOA annual dues of $900.

 

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2015's Most Desired Neighborhoods (We have nice neighborhoods in Houston, Sorry we did not make the list!!)

The most sought-after neighborhoods in 2015 won't be the trendiest or the most expensive. Instead, Redfin's recent list of the Hottest Neighborhoods of 2015 reveals that buyers are focused on "neighborhoods of compromise" that offer affordability and convenience and an overall good value, rather than living in a trendy location with a huge mortgage.

This is in contrast to last year's results that listed hip areas like Higland Park, Los Angeles and The Mission District in San Francisco as the most desired neighborhoods, and found that buyers preferred trendy urban areas with high price-tags.

"Many homebuyers have recoiled from the dramatic increase in house prices in urban centers posted over the past three years,” said Redfin Chief Economist Nela Richardson. “They are now searching for more affordable places farther out. Expect the neighborhoods on this list to see high demand in 2015 as rock-bottom mortgage rates and a more lenient mortgage lending environment help make homeownership in expensive cities less costly.”

To compile the list, Redfin looked at the neighborhoods that received the most page views and favorites on their site, analyzed data from their own "Hot Homes" algorithm, and asked local Redfin agents.

The El Cerrito neighborhood in San Diego tops the list of the most desired neighborhood of 2015 due to its mix of good shopping and dining and affordability compared to trendier neighborhoods where home buyers are finding themselves priced out.

Redfin's 10 Hottest Neighborhoods of 2015:

1. El Cerrito (San Diego, CA)
2. Dickinson Narrows (Philadelphia, PA)
3. East Atlanta (Atlanta, GA)
4. Little Neck (Queens, NY)
5. Bohemia (Long Island, NY)
6. Curtis Park (Sacramento, CA)
7. Andersonville (Chicago, IL)
8. Woodridge (Seattle, WA)
9. Crocker (San Francisco, CA)
10. Woodridge (Washington DC)

Source: "Redfin Predicts the Hottest Neighborhoods of 2015," Redfin (Jan. 22, 2015)

 

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