Housing Markets Where Home Listings Spiked This Summer
One big change is that, starting in January, lenders must make home loans that meet new federal qualified mortgage standards or face greater liability from borrower lawsuits, should the loans go sour. Some of the risky loans that fed the housing bubble are outside the new standards. Those include interest-only loans and loans that push borrowers’ debt above 43% of their income. Lenders could still make those loans. But borrowers could sue to recoup losses or stop foreclosures if they went into default. The standards put a “set of documented rules” around what lenders are doing today, Corr says.
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Turning Point for Housing Market? Key Drivers Shift from Supply to go to website Demand
The season began with significant inventory shortages creating pent-up demand in local markets with buyers waiting eagerly for homes to come on the market. Sellers who were able to list their homes in April experienced multiple offers and short time on market with little competition from neighbors. As the season closed, significant month-over-month inventory increases added more competition to the April seller’s markets and slowed price acceleration and time on market. “Top 10 Housing Markets Where Homeowners Wish They’d Listed in April” includes the markets with largest increases in inventory from April 2013 to August 2013.
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As the year’s peak home buying season comes to a close, key market indicators point to a shift in the dynamics of the housing market, suggesting that future home value appreciations may likely be driven by market demand, rather than inventory shortages. An analysis of the summer home buying season ending in August shows year-over-year changes now within the single-digits for three key indicators inventory count, median age and median list price, signaling a leveling of the market not seen for some time. The national market was virtually flat month-over-month compared to July for both inventory and median list price, and registered a slight increase in median age of inventory. “Where we have seen significant volatility in many markets, including double-digit declines in inventory as well as increases in median price for both yearly and monthly views, we are now looking at a housing market that is less heated and moving closer to normalcy,” said Steve Berkowitz, CEO of Move. Realtor.com Key National Market Indicators for August 2013 August 2013 0.00% National Highlights: Widespread Inventory Recovery – The inventory recovery is broad and growing. The net number of listings increased even though the summer season is ending. Close to one-third of the 146 markets are within 5 percent of last year’s inventory levels, and more than two-thirds (99) of markets registered a net increase in inventory over last month. Prices Stabilize – Despite the increase in inventories, the national median list price did not change compared to July. Absent a significant weakening in economic conditions or significantly higher rates, prices should continue to slowly rise alongside typical cost of living increases.
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