The National Association of Home Builders’ Housing Market Index rose by 7 points to hit 70, which is the highest level since 2005.
According to a number of reports, economists had forecast an unchanged reading of 63; levels higher than 50 signal confidence. In addition, mortgage rates have also hit a two-year high.
As the home builder confidence soared in December they attribute it to a “post-election bounce,” the group said in a statement. “Builders are hopeful that President-elect Trump will follow through on his pledge to cut burdensome regulations that are harming small businesses and housing affordability.”
Two other parts of the index’s sub-gauges gained in December:
The measure of current conditions grew by seven points to 76
Expectations for the upcoming six months increased by nine points to 78.
Both of these indexes came in at the highest levels since 2005.
Prospective Buyer Traffic
The traffic of prospective buyers rose six points to a reading of 53, with any level over 50 being a sign of improvement. What is noteworthy is that December’s reading was the first time the traffic index cracked the neutral 50 line since the bubble’s peak more than a decade ago.
According to the survey respondents, customers who turned out after the election believed the economy will improve. Concomitantly, the 30-year fixed-rate mortgage averaged 4.16% in the week ending December 15th, as reported by Freddie Mac.
The National Association of Home Builders have seen regulatory costs surging 29% in the past 5 years.
The Sentiment Index has averaged a reading of 61 in 2016. The last time that happened, in 2002, builders were breaking ground on an average 1.7 million homes.
The National Association of Realtors published their 2016 Profile of Homebuyers and Sellers
For most home buyers, the purchase of real estate is one of the largest financial transactions they will make. Buyers purchase a home not only for the desire to own a home of their own, but also because of changes in jobs, family situations, and the need for a smaller or larger living area. This annual survey conducted by the NATIONAL ASSOCIATION OF REALTORS® of recent home buyers and sellers provides insight into detailed information about their experiences with this important transaction. Here are highlights from the latest report.
■ At 31%, the primary reason for purchasing a home was the desire to own a home of their own.
■ First-time buyers made up 35% of all home buyers, an increase over last year’s near all-time low of 32 percent.
■ 88% of buyers recently purchased their home through a real estate agent or broker.
■ 88% of buyers would use their agent again or recommend their agent to others.
■ 8% of recent home sales were FSBO sales again this year. For the second year, this is the lowest share recorded since this report started in 1981.
PROFILE OF HOME BUYERS AND SELLERS 2016
In 2016, the share of first-time home buyers was 35%, a three-point increase over last year’s 32%. This figure gravitates back towards the historical norm at 40% of the market. The median household income of buyers increased again this year, likely due to a nationwide increase in home prices caused by a lack of housing inventory. Married and unmarried couples have double the buying power of single home buyers, and may be better able to meet the price increases of this housing market. Tightened inventory is affecting the home search process of buyers. Due to suppressed inventory levels in many areas of the country, buyers are typically purchasing more expensive homes as prices increase. The number of weeks a buyer is searching for a home remained at 10 weeks. Buyers continue to report the most difficult task for them in the home buying process is simply finding the right home to purchase. Tenure in the home has returned to a peak of 10 years again this year. Historically, tenure in the home has been six to seven years. Sellers may now have the equity and buyer demand to sell their home after stalling or delaying their home sale but may be facing reduced affordability to buy a new home.
This content comes from Realtor.com.
CoreLogic 2017 Outlook for U.S. Housing and Mortgage Markets
Economic growth will be a primary factor affecting the housing market in 2017. The latest projections show a consensus that the economy will grow between 2 and 2¼ percent next year. With this as a backdrop, here are five features to look for in next year’s housing market.
First, mortgage rates will be higher, with fixed-rates averaging just over 4 percent for 2017, about one-half percentage point higher than in 2016 for both single-family and multifamily loans.
Second, vacancy rates will likely remain relatively low in the rental market and decline in the homeowner market. The low level of single-family building means that for-sale inventories will remain lean in many markets.
Third, home appreciation in most markets with rent growth also continuing but at a slower pace. In the coming year, we expect the CoreLogic Home Price Index for the U.S. to rise about 5 percent, although some neighborhoods will have double-digit growth and some will experience declines.
Fourth, expect is a drop in refinance originations in 2017.
Fifth, we expect the new loans made to continue to have relatively low credit risk.
Fortune Magazine 5 Non-Traditional Ways to Network Around the Holidays
It’s the most wonderful time of the year to make business connections.
The holiday season may not be the best time to go on a diet or launch a major company-wide project, but it’s a surprisingly great time to network.
The season tends to get people socializing and spreading good cheer, making it the perfect opportunity for making new connections and deepening business relationships.
Here are five ways you can make the most of the holiday season.
1. Take it out of the office…
Link to article: http://fortune.com/2016/12/19/5-non-traditional-ways-to-network-around-t…
According to Forbes, these are the best times for social media posting:.
# Avoid times before 8 a.m. and after 8 p.m.
# The best times are 1–3 p.m. when activity, engagement, and happiness tend to be highest – particularly on Thursday and Fridays. Engagement and activity tends to peak on Friday afternoon. (For brands, Fridays generate 17 percent of all likes and 15 percent of all comments, and 15 percent of shares, according to TruConversion’s research.)
# Avoid times after 8 p.m. on any day.
# The best time for retweets is after 3 p.m., and the best overall time is 5 p.m.
# For businesses posting to consumers, the best times to tweet are on the weekends and on Wednesdays.
# Avoid new posts from 5–6 p.m.
# The best times are noon to 3 p.m. Activity and viewer engagement is shown to rise Thursday and continue through Sunday.
# The best times for activity and engagement are from 8 a.m. to 5 p.m. Monday through Friday, demonstrating that LinkedIn is more of a workday activity.
We will be closed today, Monday, December 26th and will reopen Tuesday, December 27th, at 8:30am.
It is a fact, according to Trulia: more young adults are still living with their parents.
The information provided points out nearly 40% of the 18-to-34-year-old demographic lived with a parent or other family member in 2015. This represents the highest percentage since 1940, as the Great Depression ended.
Facts Affecting The Millennials
+ Unemployment rates are improving, but not at levels prior to the Great Recession.
+ Wages are still significantly lower than they were a decade ago.
+ Debt accumulated from student loans is still high.
+ Many Millennials will be buying homes later than prior geneation.
CoreLogic reported that October 2016 U.S. home prices hit a new high. The S&P/Case-Shiller U.S. National Home Price Index, which measures all nine U.S. census divisions, was also up 5.6% in October from 2015.
The 20-City Composite Home Price Index S&P CoreLogic Case-Shiller also climbed higher by 5.1% in October from 2015. The 20-City Composite Home Price Index is still 7.1% below the July 2006 peak price.
Prices rose the most in Seattle by 10.7%, in Portland by 10.3% but in New York City, prices rose by only 1.7% from 2015 levels.
Home affordability has fallen by 20%-30% since 2012.
The affordability index is based on median incomes, housing prices and mortgage rates.
By most measures, home prices have reached levels only seen during the time preceding the crash back in 2008.
Home sales and prices have benefited from strong demand, which is further supported by very tight supply and still very affordable mortgage rates.
Another reason for the continuing trend in real estate is consumer confidence. The U.S. Consumer Confidence Index surged to 113.7, which is its highest level in 15 years according to the Conference Board.
November Closed Sales Up 26.3%
New Jersey Closed Sales November 2016
It was an incredible 2016. Sales have remained strong in year-over-year comparisons, despite the fact that there are fewer homes on the market. Not only are homes selling, but they are selling faster and receiving a higher percentage of the actual list price.
* Single Family Closed Sales were up 29.7% to 6,050.
* Townhouse-Condo Closed Sales were up 18.4% to 1,721.
* Adult Communities Closed Sales were up 20.7% to 588.
* Single Family Median Sales Price remained flat at $295,000.
* Townhouse-Condo Median Sales Price fell 2.0% to $240,000.
* Adult Communities Median Sales Price were up 3.4% to $180,963.
Single Family 2015 2016 Change
New Listings 829 829 0.0%
Closed Sales 473 637 +34.7%
Days on Market 101 94 -6.9%
Median Sales Px $273K $295K +8.0%
% of Price Recvd 95.8% 96.6% +0.8%
Inventory 5,177 4,164 -19.6%
Months Supply 10.3 6.8 -34%
Single Family 2015 2016 Change
New Listings 678 677 -0.1%
Closed Sales 412 518 +25.7%
Days on Market 81 76 -6.2%
Median Sales Px $375K $401K +6.9%
% of Price Recvd 95.5% 96.7 +1.3%
Inventory 3,815 2,883 -24.4%
Months of Supply 8.6 5.2 -35.8%