Even as Philadelphia moves further away from 2017’s warmer months — traditionally the busiest times of the year in real estate — the city’s housing market has continued to flourish. Home values have appreciated, sales have been strong, and formerly disinvested neighborhoods have seen increasing activity as Philadelphia’s newfound prosperity has spread. The combination has created a local housing market that shows few signs of slowing. According to Drexel economist Kevin Gillen, Philadelphia home values in the third quarter of 2017 jumped 10.6 percent compared with the year before — more than double the city’s average historic appreciation rate of 4.5 percent. During that same July-to-September period, the median price of a Philadelphia home was $159,900. Still, inventory — the number of homes on the market — remains tight, meaning buyers too often are competing for too few homes. As a result, prices are rising, buyers are staying … [Read more...] about Million-dollar homes in West Philly? A new hot neighborhood? The latest on Philadelphia’s housing market
Housing market bubble
A ‘self-fulfilling prophecy’ is making the housing market more hellish for first-time buyers
Akin Oyedele, provided by Published 10:12 pm, Tuesday, May 15, 2018 Drew Angerer/Getty The share of Americans who think now is a good time to buy because home prices won't fall is at a record high, according to the University of Michigan's consumer sentiment survey. This is creating a self-fulfilling prophecy that's making housing more unaffordable for first-time buyers, according to David Rosenberg, Gluskin Sheff's chief economist. Home prices are near record highs in many cities across America, and the belief they'll continue rising is encouraging more people to buy. The result is a higher barrier to entry for people who want to buy their first homes, according to David Rosenberg, the chief economist at Gluskin Sheff. He drew his most recent observations on the housing market from the University of Michigan's monthly survey that checks the consumer's pulse on various parts of the economy. The interesting housing tidbits in the latest survey, released on Friday, … [Read more...] about A ‘self-fulfilling prophecy’ is making the housing market more hellish for first-time buyers
Half of the biggest housing markets in the US are overvalued — and it could spell trouble for homebuyers
Tanza Loudenback, provided by Published 4:42 pm, Wednesday, May 9, 2018 bezikus/Shutterstock The US housing market is tough for buyers right now — low supply has led to high demand and an increase in prices. Nationally, home prices rose by 7% from March 2017 to March 2018. But incomes haven't increased at the same rate, leading to overvaluation in some of the country's biggest housing markets, including Los Angeles, New York City, Denver, and Houston. The US housing market is something of a seller's paradise right now. Aging millennials are itching to become homeowners, but the supply of starter homes is at a historic low. Only 20% of the 1.2 million homes on the market are entry-level, according to Zillow, compared to 51% of for-sale homes priced in the most expensive tier. In turn, prices are appreciating rapidly and incomes aren't keeping pace. This leads to an overvalued market, meaning prices are above sustainable levels — and affordability is shot. The … [Read more...] about Half of the biggest housing markets in the US are overvalued — and it could spell trouble for homebuyers
Hot Las Vegas housing market picking up, but nowhere near 2000s
A construction worker puts a roof on a new home at the Cove at Southern Highlands and St. Rose parkways on Wednesday, April 18, 2018, in Las Vegas. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfayeThe entrance of the Cove at Southern Highlands and St. Rose parkways photographed on Wednesday, April 18, 2018, where one-and two-story new homes are under construction in Las Vegas. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfayeConstruction workers put up new homes at the Cove at Southern Highlands and St. Rose parkways on Wednesday, April 18, 2018, in Las Vegas. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfayeNew homes under construction at the Cove at Southern Highlands and St. Rose parkways on Wednesday, April 18, 2018, in Las Vegas. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfayeNew homes under construction at the Cove at Southern Highlands and St. Rose parkways on Wednesday, April 18, 2018, in Las Vegas. Bizuayehu Tesfaye/Las Vegas Review-Journal … [Read more...] about Hot Las Vegas housing market picking up, but nowhere near 2000s
A new woe for a pricey housing market: Higher mortgage rates
Higher mortgage rates are making the already challenging task of buying an affordable home even tougher for many Americans this spring. In metro areas such as Denver, buyers are rushing to close a deal before mortgage rates get too high. In Dallas, some are embracing longer commutes to find homes they can afford. And in places such as Los Angeles, where the number of homes for sale is down sharply from a year ago, sellers routinely receive multiple offers. While still low by historical standards, long-term mortgage rates have been mostly climbing this year. The average weekly rate on a 30-year fixed-rate mortgage edged up to 4.42 percent last week. It was 3.95 percent at the start of this year. A mere extra half percentage point or so can boost monthly payments and add tens of thousands of dollars extra in interest over the life of the typical 30-year loan. At a time when home prices are rising faster than incomes in many parts of the country, that could be enough to shut out some … [Read more...] about A new woe for a pricey housing market: Higher mortgage rates