Chapman University economists forecast Wednesday that Orange County home prices will rise 6.8 percent in 2013, marking the second consecutive year of rising home values here.
This year’s home prices are projected to be up 4.2 percent, according to the 2013 forecast by Chapman’s Anderson Center for Economic Research.
The outlook was contained in a report that foresees mild growth in local hiring and the economy, driven by a recovering housing market and high consumer confidence. But a stronger recovery likely will be held back by expected federal tax hikes and budget cuts, according to Chapman University’s 2013 economic forecast released Wednesday.
Chapman projected California home prices to be up 8.9 percent in 2012, followed by a 6.7
Rising prices and increased sales drove Orange County home sales revenue to the highest level for an October in seven years, a recent report from the California Regional Multiple Listing Service shows.
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The combined sales amount paid by local homebuyers totaled nearly $1.7 billion last month.
That’s $598 million – or 57 percent — more than the total revenue generated in October 2011 and the most home sales revenue for an October since the housing boom ended in 2005, the figures show.
Last month’s total was just 9.6 percent less than the October 2005 total of $1.8 billion. And it was 23.5 percent higher than the October average for the past eight years.
Higher revenues also translated into greater income for real estate
Despite a number of potentially damaging headwinds, the ongoing housing recovery will remain sustainable for the foreseeable future, analysts for Capital Economics say in a recently released report.
The housing industry’s rapid rebound took many experts by surprise—even the researchers who authored the report admit they “have been slightly taken aback” by the recovery’s speed. However, they point to several major indicators that show the current upturn is more than a temporary blip or a false recovery.
Sustained rises in demand, home prices, homebuilding activity, and new and existing-home sales all demonstrate that the market is seeing a lasting recovery, they say. They also forecast further price growth of 5 percent in each of 2013 and 2014.
Home prices are up for the 2nd straight quarter, the biggest year-over-year increase in more than two years.
NEW YORK (CNNMoney) -- In another sign of a housing market rebound, home prices posted the biggest percentage gain in more than two years in the third quarter, according to the closely followed S&P/Case-Shiller index.
The 3.6% increase from a year earlier is more than three times the rise in the previous quarter and was the biggest jump in prices since the second quarter of 2010. But that 2010 rise was much more of a temporary blip caused by a homebuyer's tax credit of up to $8,000 on homes purchased in late 2009 and early 2010.
This latest rise comes as the housing market has shown
Although real estate is local, in general, there are at least five
significant contributors to rising prices: Housing affordability, increasing
housing formation, rising rents, low inventory, and limited supply of distressed
Housing affordability is attractive based on traditional metrics such as
price-to-rent and price-to-income measures, largely because prices have fallen
so far. Housing is even more affordable considering today’s low mortgage
Housing formation is revving up. The U.S. is on track to add 1 million new
households this year, up from 630,000 last year and an average of 570,000 over
the past five years, according to economists at Bank of America Merrill
MORTGAGE lenders do not figure in a household’s likely commuting costs when weighing loan applications, but a recent study suggests that borrowers of moderate means would be smart to calculate these costs themselves before buying.
The study, published in October by the Center for Housing Policy and the Center for Neighborhood Technology, looked at transportation and housing costs in the 25 largest metropolitan areas. It found that transportation costs rose faster than incomes in every area over the last decade.
That has added to the financial burden shouldered by moderate-income homeowners, defined as households earning 50 to 100 percent of a metropolitan area’s median income. Transportation consumes 30 percent of their income,
The Pending Home Sales Index (PHSI) jumped 5.2 percent in October to 104.8, its highest level since March 2007, the National Association of Realtors (NAR) reported Thursday. Economists had expected a smaller increase to 100.5.
The September index was revised up to 99.6 from the originally reported 99.5.
On Wednesday, the Census Bureau and HUD reported jointly new home sales—the equivalent of the PHSI—had declined an ever-so-slight 0.37 percent in October. Both reports measure contracts for the purchase of a home.
The PHSI and new home sales report usually move in the same direction—each has increased in all but three months this year—but the magnitude and timing of the changes can vary. The movement in opposite directions in October suggests the
WASHINGTON — With the House and Senate back on
Capitol Hill for the lame-duck session, preliminary negotiations aimed at
keeping the country from careening off the "fiscal cliff" have begun in
The macro issues — how to reduce federal spending and how to raise federal
revenue — are getting the bulk of the attention. But buried away in the
discussions are bread-and-butter questions that could affect millions of
homeowners and buyers:
•Will the biggest housing-related tax benefits — for mortgage interest,
property taxes and home-sale capital gains exclusions — be on the chopping block
in the coming six weeks? Or will these popular, multibillion-dollar annual
supports for homeownership be deferred for the big game — the "grand bargain"
November 26, 2012— Sales of existing homes increased in October, even with some regional impact from Hurricane Sandy, while home prices continued to rise due to lower levels of inventory supply, according to the National Association of REALTORS®.
Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, rose 2.1 percent to a seasonally adjusted annual rate of 4.79 million in October from a downwardly revised 4.69 million in September, and are 10.9 percent above the 4.32 million-unit level in October 2011.
Lawrence Yun, NAR chief economist, said there was some impact from Hurricane Sandy. "Home sales continue to trend up and most October transactions were completed by the time the storm