Housing Market Continues To Improve

The housing market has been taking a lot of heat over the last few months as inventory decreased and mortgage rates increased, but many experts say the housing market is on the right track. Home prices jumped 12.8% in August according to Robert Shiller’s S&P/Case-Shiller housing index, the largest increase since early 2006. Shiller did not expect the rebound saying that the housing boom in 2006 was a “fad”. The 20-city composite also increased 1.3% and showed gains in every U.S. metropolitan city. Many experts suggest that home prices will continue to climb in the coming months. More here

Flood Insurance Premiums Force Homeowners To Move

Monthly premiums for approximately 1 million homeowners living in flood zones have increased due to the new flood insurance plan many coastal states require their homeowners to have. According to the Federal Emergency Management Agency, Florida, Louisiana, New Jersey, California, and Texas account for approximately two-thirds of all flood insurance policies causing monthly premiums to skyrocket. Many homeowners can not afford the increase in flood insurance and are being forced to move inland. More here

Home Contracts Drop 5.6%

Existing home sale contracts dropped considerably, falling to the lowest level seen in over three years. Mortgage rates have also continued to increase over the past months, though rates have recently leveled off. According to the National Association of Realtors’ Pending Home Sales Index, contracts dropped 5.6% last month, averaging 101.6. Although experts suggest the housing market may be in a temporary slump, it has shown considerable improvement since the recession of 2007-2009. More here

Many Experts Approve Reverse Mortgage Changes

As the reverse mortgage rules have changed, many older Americans are unsure of what the changes actually mean. The program was initially intended to help senior homeowners keep their homes by turning their mortgages into usable money, although the strategy seemed to backfire for many who used the program improperly. The new rule changes made to the reverse mortgage program will help seniors regulate their up-front and accessible principle through the life of the mortgage. Senior homeowners can now draw more money from a reverse mortgage than available in the past, but over a lengthier amount of time. The changes may seem more complicated for many, but experts say that this change is good and will help many seniors financially over time. More here

Housing Market Expected To Cool Down

Zillow’s Real Estate Market Report showed that home prices have jumped approximately 6% year-over-year. The Home Value Index increased to $163,000 by the end of last quarter, a 6.4% growth from 2012. Although home prices and mortgage rates have grown considerably since last year, economists suggest that the national housing market is beginning to slow down and stabilize. Zillow Chief Economist Dr. Stan Humphries said, “we’re relieved to see more noticeable signs of cooling in the market. If home values continued to rise as they have, relatively unchecked, we would almost certainly be headed into another bubble cycle, and nobody wants that.” More here#img1#

Single-Family Housing Rentals Increase

An increasing number of single family homes are being used as rental properties across the nation. According to USA Today’s analysis of the U.S. Census Bureau data, in 2012 1/5 of all single family homes in many metropolitan cities were rentals. Experts suggest that the rise in single family rentals is due to millions of Americans delaying home-ownership, and homeowners who lost their homes in foreclosures during the housing bust. More here

Mortgage Rates And Prices Take Toll On Sales

U.S. mortgage rates and home prices continue to increase causing existing home sales to fall. Existing home sales in September fell from August and experts have suggested that mortgage rates and rising home prices may play a key role in the decline. According to the National Association of Realtors, existing home sales decreased 1.9% in September averaging 5.29% million. As mortgage rates and prices begin to stabilize, experts expect home sale to improve. More here

Many Baby Boomers Looking To Downsize

New research has found that baby boomers left with empty nests are much more likely to provide their children with financial aid than to invite them back into their homes. The study suggests that boomers are happy with their empty nests, and many are looking to downsize their homes. The vice president of brand marketing for Del Webb, Fred Ehle said, “Once kids leave the home, parents take a close look at their home and often find their large home no longer fits their new lifestyle. Do they need all this space?  Do they want to maintain the large yard?  So, they think about downsizing or moving to a new area.” More here

Housing Market Prevails Through Rough Times

According to Trulia, asking home prices across the nation were not negatively affected by the government shutdown. Experts analyzed the nation’s home prices from October 1st to October 15th and found that home prices actually increased, jumping 1% from September to October. Experts explain how the government shutdown seemed to have no real negative effect on the housing market as of now, but when delayed data such as housing starts and job reports emerge they will be able to accurately measure the effects of the shutdown. More here