Lower Rates, Moderating Price Growth Make a Great Environment for Buyers
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Home prices remained stable in August, at least as reported by CoreLogic. The company's Home Price Index (HPI) increased 3.6 percent compared to the HPI in August 2018 and was 0.4 percent higher than in July. These are identical to the rates reported for both annual and monthly changes in July. Rates of appreciation had been steadily declining prior to that and appear to have stabilized due to the impact of lower interest rates.
Read more at Mortgage News Daily.
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Take a Look at the Latest Housing Data from NAR's Housing Minute Report
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Together, Homeowners Who Bought at the Bottom of the Market in 2012 Have Earned $203 Billion in Equity
Philadelphia is up 46%, Montgomery County 23%
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People who purchased homes in 2012, the year prices reached their lowest point following the Great Recession, have earned a total of $203 billion in home equity. Individually, the typical 2012 homebuyer has earned $141,000, or 261 percent, in home equity.
The typical home that sold in 2012 has increased $110,000 in value, from a median sale price of $210,000 in 2012 to an estimated value of $320,000 in September 2019. The typical 2012 homebuyer started off with $54,000 in home equity and has $195,000 today.
Read more from Redfin.
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Housing Prices Are Correcting
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Millennials Moving More Frequently Than Earlier Generations
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When it comes to putting down residential roots, Millennials are more peripatetic than previous generations, according to
new data from Zillow
.
In 1960, 33.8 people of people between 25- and 34-years-old had lived in their home for less than two years. By 2017, however, that share increased to 45.3 percent. The reasons for Millennials moving so frequent are varied: a typical employed Millennial has been with their current employer for 2.8 years, so being close to the workplace is a factor. Others are marrying and/or beginning a family and wish to reside in larger accommodations.
Read more at NMP Magazine.
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Bidding Wars Edge Up Slightly in September, Bucking the Typical Seasonal Trend
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Nationally, just 11 percent of offers written by Redfin agents on behalf of their homebuying customers faced a bidding war in September, down from 41 percent a year earlier, but up slightly from
the eight-year low of 10 percent set in August
.
Over the previous four years, the bidding war rate has averaged a 0.8 point drop from August to September, so even a small uptick is unusual for this time of year.
Read more from Redfin.
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Despite the economic slowdown due to weakening manufacturing and corporate investment, the consumer side of the economy remains on solid ground. The fifty-year low in the unemployment rate combined with low mortgage rates has led to increased homebuyer demand this year. Much of this strength is coming from entry-level buyers – the first-time homebuyer share of the loans Freddie Mac purchased in 2019 is forty-six percent, a two-decade high.
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We hope you enjoyed this week's Market News. For more information about how PMA can help you, please contact us.
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Plymouth Meeting Office: 610.834.8700
Doylestown Office: 215.345.7600
Ocean City, NJ Office: 609.398.8600
Information and analysis is obtained through third parties and is deemed accurate but not guaranteed. Philadelphia Mortgage Advisors is a licensed mortgage lender by the PA Dept. of Banking and Securities, NJ Dept. of Banking & Insurance, the state of DE, the Florida Office of Financial Regulation, MD Mortgage Lender #23004 and VA State Corporation Commission #MC - 6797. NMLS #128570.
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Fun Things To Do In Philly This Weekend!
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PMA Named Best of the Main Line for the Fourth Consecutive Year!
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PMA &
PHFA
/
NJHMFA
can make it easier for first-time buyers to purchase a home!
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are Easier with PMA's
In-House Approvals!
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