homesmillbrae.com » Moving

Investors are moving out of housing. Here’s why

Mon, 22 Jul 2013 21:34:46 +0000

First-time homebuyers could say the same. Usually about 40 to 45 percent of the market, they made up just 29 percent of buyers in June, according to the National Association of Realtors. A lack of supply has made the market far too competitive for these buyers, who usually need financing and have smaller down payments.

(Read more: Map: Tracking the US real estate recovery)

“We can thank investors for that limited inventory, of course, as many entry-level buyers are now going to have no choice but to rent,” said Peter Boockvar of The Lindsey Group.

Even as investors move out, cash is still king in this market. Thirty-one percent of sales were all-cash. That share is usually below 10 percent. June’s home sales were largely unaffected by the recent rise in mortgage rates, as contracts for those sales were signed in April and May.

The Realtors’ group expects higher rates to slow sales in the coming months, and if investors, who drove the market for so long, continue to exit, those sales could be even slower.

(Read more: Go green? Get a bigger mortgage)

—By CNBC’s Diana Olick. Follow her on Twitter @Diana_Olick.

Questions? Comments? facebook.com/DianaOlickCNBC

Article source: http://www.cnbc.com/id/100903814

Why Rising Rates Are Rattling the Mortgage Market

Thu, 16 May 2013 22:08:27 +0000

“Underlying interest rates are moving higher, dragging mortgage rates along with them,” said Keith Gumbinger, vice president of HSH.com, a data and analytics site. “This has come as the result of somewhat better conditions in the labor market, helping investors feel more confident that the recovery will overcome its recent soft patch.”

(Read More: REITs Return Big as Investors Pour In)

The higher rates cause a drop in mortgage applications. Refinance volume fell 8 percent, while mortgage applications to purchase a home fell 4 percent, according to the MBA report.

Article source: http://www.cnbc.com/id/100738799

Why Rising Rates are Rattling the Mortgage Market

Thu, 16 May 2013 03:48:03 +0000

(Read More: REITs Return Big as Investors Pour In)

The higher rates cause a drop in mortgage applications. Refinance volume fell 8 percent, while mortgage applications to purchase a home fell 4 percent, according to the MBA report.

Article source: http://www.cnbc.com/id/100738799

Finally: Supply of Homes for Sale Begins to Rise

Thu, 21 Mar 2013 23:45:43 +0000

So the increase in supply is welcome news, as the severe lack of homes for sale has been pushing home prices higher far faster than anyone expected. That swift jump in prices, along with low supply, have been hampering sales, which were up just 0.8 percent month-to-month in February, missing analysts’ expectations. Single-family home sales were actually weaker, while condo sales jumped nearly 9 percent from January.

“Rapid price appreciation is not good news for home buyers,” said Lawrence Yun, chief economist for the NAR. “Wages are up just 2-3 percent, while prices are rising 4-5 times that.”

(Read More: Home Resales Hit 3-Year High but Miss Forecasts)

With the increase in supplies came a return of all-cash investors, who had been moving out of the market, causing sales of homes on the low end to plummet. Investors made up 22 percent of home buyers in February, according to the Realtors, up from 19 percent in January. All-cash sales hit 32 percent, up from 28 percent, and distressed home sales also increased to 25 percent of all sales, from 23 percent.

Low inventory has kept first-time home buyers, who largely seek lower-priced homes, out of the market. Newlyweds Brian and Ali Earle have been looking for a home in Northern Virginia for almost a year.

“There’s not a lot out there,” Brian said. “It’s actually amazing. We see houses go under contract in a day or two, and so we really have to be on top of the game and be willing to drop everything and run and go check out a house, or it’ll be gone.”

Article source: http://www.cnbc.com/id/100577800