Report Shows California Has The Most Expensive Real Estate

Coldwell Banker’s annual home listing report was released showing the most expensive places to buy real estate in the country. According to the report, the state of California has the most expensive real estate, and the prices do not seem to decrease the high demand in that part of the country. On average, the median price for a home in certain areas of California ranged from $300,000 all the way up into the millions. More here

55+ Housing Demand Grows

According to recent data released by the National Association of Home Builders, builder confidence has increased in the 55-and-up housing market. Experts say that the single family housing market demand has grown considerably with the help of senior citizens, jumping 14 points, averaging a level of 50 in the single-family index. The chairman of NAHB’s 50+ Housing Council, Robert Karen said, “we have seen steady improvement in the 55+ housing sector as buyers and renters are attracted to new homes and communities that offer the lifestyle they desire.” More here

Mortgage Rates Expected To Average 5.4% In 2014

According to the National Association of Realtors, home sales and prices are expected to continue to rise over the next year as mortgage rates increase. Many experts are worried that the increase will cause housing affordability to decrease. Home prices have been forecasted to jump 6% next year, and mortgage rates are expected to increase to an average of 5.4% by the close of 2014. Additionally, the NAR says that housing starts need to pick up about 50% in order to satisfy high demands. More here

Home Prices Help Fuel Housing Market

According to the National Association of Realtors report, many metropolitan cities in the U.S. showed exceptionally high year-over-year home price gains. The report also states that the median price posting was the best rates seen in approximately eight years. These rates are all expected to help the housing market grow over the coming months and years. The NAR chief economist, Lawrence Yun said, Rising prices and higher interest rates have taken a bite out of housing affordability, however, we have the ongoing situation of more buyers than sellers in the market, so lower sales will help to take the pressure off home price growth and allow them to rise slowly at a single-digit growth rate in 2014.” More here

Economy Growth Exceeds Expectations

The U.S. economy has exceeded previously estimated rates showing a 0.3% increase from the second quarter of the year to the third quarter, averaging an annual rate of 2.8%. The Bloomberg news had previously said that the annual growth rate of the U.S. economy in the third quarter of this year would be approximately 2%. Many experts are now expecting the increase to eventually end the fiscal drag. Economist for RBS Securities, Guy Berger said, “the fiscal drag will dissipate, but we’re far from takeoff.” More here

More Home-buyers Looking To Stay In Homes Longer

Over the last few years, an increasing number of home-buyers are planning to stay in their houses long-term. According to a recent study conducted by the National Association of Realtors, in 2012, 27% of home-buyers, age 25 to 44, said they plan to live in their current homes for at least 16 years. Experts say this can be due to more people wanting to be a part of their communities and how difficult the home buying process has become over recent years. More here

Mortgage Rates May Be Influencing Home Sales

Home prices in the United States are increasing at a slower rate due to higher mortgage rates according to CoreLogic. Home prices have increased slightly, averaging approximately 0.2% growth from August to September. Prices for homes are considered high compared to last year, but as mortgage rates increase, home prices are expected to level off. Economists say that the rise in home prices and mortgage rates may be slowing home sales across the county. More here

Change In Top-Ten List For Growing Housing Markets

The housing market is speeding up in certain locations faster than others. Recent data shows that housing market recovery can be seen at its best in ten metropolitan cities and is ranked by measuring how many days houses are on the market, supply, and median home prices. The top ten turnaround housing markets have changed drastically with Detroit being number one and Las Vegas taking last place. In the past, California has had the most turnaround towns, but data now shows that California’s ranking has fallen with Santa Barbara-Santa Maria being the only town making the top ten. More here

Homebuilders Enter Peak Season

According to past data, homebuilders are entering their peak season, as November, December and January make up more than 75% of homebuilders’ annual returns. Experts suggest that the jump in supply is due to anticipation for the spring selling season.  Keefe, Bruyette & Woods firm said, “the spring selling season is significant as its strength can drive volume and margin performance for the year based on momentum, pricing, and inventory build.” More here